Greetings. Welcome to Ameren Corporation’s Second Quarter 2021 Earnings Call. [Operator Instructions] Please note this conference is being recorded. It is now my pleasure to introduce your host, Andrew Kirk, Director of Investor Relations for Ameren Corporation. Thank you, Mr. Kirk. You may begin.

Thank you and good morning. On the call with me today are Warner Baxter, our Chairman, President and Chief Executive Officer and Michael Moehn, our Executive Vice President and Chief Financial Officer as well as other members of the Ameren management team joining us remotely. Warner and Michael will discuss our earnings results and guidance as well as provide a business update. Then we will open the call for questions. Before we begin, let me cover a few administrative details. This call contains time-sensitive data that is accurate-only as of the date of today’s live broadcast and redistribution of this broadcast is prohibited. To assist with our call this morning, we have posted a presentation on the amereninvestors.com homepage that will be referenced by our speakers. As noted on Page 2 of the presentation, comments made during this conference call may contain statements that are commonly referred to as forward-looking statements. Such statements include those about future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events, conditions and financial performance. We caution you that various factors could cause actual results to differ materially from those anticipated. For additional information concerning these factors, please read the forward-looking statements section in the news release we issued yesterday and the forward-looking statements and risk factors sections in our filings with the SEC. Lastly, all per share earnings amounts discussed during today’s presentation, including earnings guidance, are presented on a diluted basis, unless otherwise noted. Now, here is Warner, who will start on Page 4 of our presentation.

Thanks, Andrew. Good morning, everyone and thank you for joining us. This morning, I will begin with the statement that I have been making for quite some time now. Simply put, our team continues to effectively execute our strategic plan across all of our businesses, which includes making significant investments in our energy infrastructure to enhance the reliability and resiliency of the energy grid as well as transition to a cleaner energy future in a responsible fashion. These investments, coupled with our continued focus on disciplined cost management delivering significant value to our customers, communities and shareholders. Moving now to our second quarter earnings results, yesterday, we announced second quarter 2021 earnings of $0.80 per share. Our earnings were down $0.18 per share from the same time period in 2020, primarily due to a change in the seasonal electric rate design at Ameren Missouri that reduced earnings $0.19 per share. The impact of this change in rate design will reverse in the third quarter of 2021 and is not expected to impact full year results. Michael will discuss the other key drivers of our strong quarter earnings results a bit later. Due to the continued strong execution of our strategy, I am pleased to report that we remain on track to deliver within our 2021 earnings guidance range of $3.65 per share to $3.85 per share. Speaking of the execution of our strategy, let’s move to Page 5, where we reiterate our strategic plan. The first pillar of our strategy stresses investing in and operating our utilities in a manner consistent with existing regulatory frameworks. This has driven our multiyear focus on investing in energy infrastructure with a long-term benefit of our customers. As a result and as you can see on the right side of this page, during the…

Thanks, Warner and good morning everyone. Turning now to Page 15 of our presentation, yesterday, we reported second quarter 2021 earnings of $0.80 per share compared to $0.98 per share for the year-ago quarter. Earnings in Ameren Missouri, our largest segment, decreased $0.18 per share, driven primarily by a change in seasonal electric rate design, resulting from the March 2020 rate order, which provided for winter rates in May and summer rates in September rather than the blended rates used in both months in 2020. The rate design change decrease earnings $0.19 per share and is not expected to impact full year results. Earnings were also impacted by the timing of income tax expense, which decreased earnings $0.03 per share and is not expected to impact full year results. As Warner mentioned, during the quarter, we remain relentlessly focused on continuous improvement and discipline cost management and have been able to largely maintained the level of operations and maintenance savings this quarter that we experienced during the year-ago period, which was significantly affected COVID-19. The increase in other operations and maintenance expenses, which decreased earnings $0.02 per share, was primarily due to more favorable market returns on the cash surrender value of company-owned life insurance in the year-ago period. As you can see, we have worked hard this year to control costs where we can. The amortization of deferred expenses related to the fall 2020 Callaway Energy Center scheduled refueling and maintenance outage and higher interest expense primarily due to higher long-term debt balances outstanding also decreased earnings $0.02 per share. These factors were partially offset by an increase in earnings of $0.05 per share due to increased investments in infrastructure and wind generation, eligible for plant and service accounting and the Renewable Energy Standard Rate Adjustment Mechanism, or RESRAM.…

[Operator Instructions] Our first question is from Jeremy Tonet with JPMorgan. Please proceed with your question.

Good morning.

Good morning. How are you doing, sir?

Good. Good. Thank you. Just want to see how you think about the Missouri securitization legislation as a tool for transitioning the fleet. Just wondering if you – any thoughts you have there? Are there any particular reasons that could be more or less attractive for you to use versus kind of other considerations we should be thinking about?

Excuse me. Thanks, Jeremy. Yes, look, as we’ve said before, we’ve said securitization is a great regulatory tool and one that we don’t see is necessary to execute our integrated resource plan, but certainly a great regulatory tool. So in the big picture, as we go down the path, if we see changes in policies, change in economic conditions or really the overall economics for renewables, perhaps we will look at securitization as a tool to use. But right now, we are very comfortable and like our integrated resource plan and complement Marty Lyons and his team really did a nice job working with stakeholders to get that across the finish line. And so Marty, why don’t you come on in and see if you have any additional comments on the securitization tool that we have available to us.

Yes, Warner. Well, you described it very well. And Jeremy, thanks for the question. We outlined on Slide 25, our transition over time. It’s the integrated resource plan that we filed last fall. And as Warner mentioned, that plan and the execution of that plan were not dependent upon utilization of securitization. Really, what you see there is our plan as it stands today as to use our low-cost, reliable coal fleet as a foundation to bring in more renewables over time and provide reliable power to our customers. But as Warner said, to the extent situations change and require adjustments to this plan, it could be that securitization would be a very good tool to have in our toolbox to perhaps make this transition more swiftly and do it in a way that provides affordable rates to our customers. So, I think a really good tool to have in the toolbox, but again, not needed today as we look at this integrated resource plan.

Great. That’s really helpful color there. Maybe just kind of shifting gears here. Have you seen any developments in MISO as work progresses towards year-end project updates there? Just wondering if you might be able to expand a bit more, I guess, your thoughts there and what that could mean for Ameren?

Sure. Thanks, Jeremy. And look, as we discussed really on our last quarter call and as we talked about in our prepared remarks. We really see transmission investment as being critical for our country’s transition to a clean energy future. And certainly, MISO being right in the middle of the country is going to play an integral role. And obviously, we have a big footprint in MISO. And so as we have looked at it, MISO has really done a fine job from our perspective. And we are really looking out to see what some of those long-range transmission projects might be. No, they are not definitive yet, but they laid out a real nice plan for us to really think about and work with key stakeholders. And that’s exactly what we have been doing working without the key stakeholders and say, okay, what are these projects that we need to move forward with. I would say MISO is still in the middle of that process with us and so many others. And as you know, they will take that long-range plan that we outlined in our slides. And they are going to put that and include aspects of that thinking in MISO’s transmission expansion plan, which is a process that we will, hopefully, see moving forward by the end of this year. So, beyond that, I would say the conversations and analysis continues. The only thing I will say is that we believe we are well positioned to execute many of those projects. And we believe if you look at that Future 1, that some of those projects are going to likely be in this intent that comes out here at the end of this year or perhaps some maybe into early next year, because those are some no regrets projects that are in there that we need to move forward on, not just in the Midwest but for our country. So, we can move forward on this clean energy transition. So, nothing specific yet, but needless to say, there is a lot of work going around with the teams to try and move forward on this important aspect of the clean energy transition. So, stay tuned, more to come.

Got it. That’s very helpful. Thanks for that. I will leave it there.

Thanks. Thanks, Jeremy. Have a good weekend.

You too.

And our next question is from Paul Patterson with Glenrock Associates. Please proceed with your question.

How are you? Good morning Paul.

Good morning. How are you?

Well, good here.

Good to hear. So, just to sort of follow-up on Jeremy’s question there on the MTAP process and the transmission opportunities, which sound pretty exciting. One of the questions, I guess, that sort of comes up here is as you are aware, that in Missouri, there is this clean energy line. I forgot the exact name, but you are familiar with it. It’s the one that’s been held up by challenges to it. It seems like forever. It’s not your line. It’s more like a merchant line. But in general, how should we think about once MISO is sort of identified, etcetera, the – bringing those – assuming that you guys get a good line of sight on opportunities for yourselves, how should we think about siding or permitting, etcetera, with respect to some of these projects in the context of that example that I have mentioned versus some of the add-ons and stuff that don’t seem to have as much in the way of hurdles, do you follow what I am saying?

Paul, a bit complicated. So, let me tell you, its Grain Belt is the name of the line that you are referring to.

Sorry. That slipped my mind.

Yes. And so I will make a couple of comments. And then Marty, you can talk about how the Grain Belt project has been incorporated, in some respects, at least commented upon in our integrated resource plan. But just big picture, whether it’s the Grain Belt or any transmission, obviously, permitting and siding is an important aspect of transmission. I think this is why you are seeing FERC and others, state commissions and others and legislators, take a very careful look at this because we have recognized that that’s an important aspect of getting any of these major transmission projects done. And some significant transmission projects are going to have to be done to – for us to affect the clean energy transition. And so one of the things I will tell you, we work very hard as a company at this, and that is being very thoughtful and reaching out with stakeholders in the communities early and often to talk about the needs for the transmission line, but also how we can work with those stakeholders in those communities, so we can get the permitting and signing done in a timely fashion. Shawn Schukar and his team have done that for years and years now. And this is why you have seen the success that we had in the last multi-valued projects that MISO did almost a decade ago. Now those projects were so successful is because a lot of work was done on the front end, so we could execute on the back end. As we look forward to any future transmission project, that’s exactly what we will continue to do. Now Grain Belt, obviously, as you rightfully said, that is not our project. But certainly it’s something that has received a lot of attention in Missouri and otherwise. And so Marty, I want you to comment a little bit about some of the things that we have been looking at in terms of Grain Belt as part of our integrated resource planning process.

Yes, sure, Warner, and I am happy to comment. So, I mentioned our integrated resource plan we filed last fall. And again, back on that Slide 25, where we depict our plan, that’s really our preferred plan out from the Integrated Resource Plan as we move forward. But as we develop that plan, we looked at a number of scenarios in terms of the path forward to get to what we believe to be the most reliable and affordable path forward. And in these scenarios, certainly, we evaluated utilization of Grain Belt as well as many other kinds of scenarios. And where we stand right now in terms of our integrated resource plan, as you all know, we did put out a request for proposals last year on various resources that might be available to fulfill our needs. Obviously, our ambition is to acquire, 1,200 megawatts of renewables, wind, solar, through 2025. And we do still expect to file later this year with the PSC for certificates of convenience and necessity for a portion of those planned projects. But as we go through broadly, looking at just the next 5 years, but even beyond, certainly, we will continue to consider all options, including utilization of Grain Belt as we think about fulfilling those needs. In terms of your question, Paul, I think you were asking about large-scale transmission, smaller-scale transmission. As we go about looking at the various resources that might fulfill our needs, certainly, we work closely with Shawn and his team and think very much about the transmission investments that will be required to facilitate investment in any of those projects, whether wind or solar. And it’s an important part of our consideration as we think about the resources that will be most affordable for our customers.

Okay. Great. And then just finally on Illinois, I mean you mentioned in your remarks, and I am just sort of – do you have any sense as to whether or not something happens in the next, I guess, couple of months here or I mean you guys are obviously a lot closer to it than I am. I am just sort of wondering if you had any odds on something in Illinois what those odds might be for something getting done.

Sure. Thanks, Paul. I have learned long ago not to make predictions about legislation. And especially in this particular case, it’s a complex piece of legislation. The only thing I can say is what I have said before and I will say again, Richard, Mark and his team, they have been working tirelessly for many months now with key stakeholders to try and forge a path forward. That is a constructive solution that’s going to enable us to make the investments we need to make in the energy grid and earn fair returns in the State of Illinois. And in so doing enhance reliability, create jobs and help really the State of Illinois and our country move towards a clean energy future. So, all of those things are all true. They remain true today, and we continue to be at the table with key stakeholders. But now I am not going to make any prediction in terms of time, weather or any timing, but rest assured, we are working hard at it, and we are at the table with the key stakeholders to try and get the constructive solution done.

Okay, great. Thanks a lot.

[Operator Instructions] Our next question is from Julien Dumoulin-Smith from Bank of America. Please proceed with your question.

Good morning Julien.

Hi. Good morning team. Thank you for this time and the opportunity. I appreciate it.

Absolutely.

So perhaps just let’s kick it off with our favorite subject here. And I want to hear your thoughts and perspectives around this June task force, right? You mentioned FERC and joining forces here. That seems like a fairly potent combination to drive real change, right? So I would be curious, what do you – what is the focus here? And specifically, what key issues are you asking them to address, right? When it comes to utilities, not HVDC lines with their own challenges and prospects, but from your perspective, tangibly, how can they step in and help you all?

You bet. Thanks, Julien. Look, we are encouraged that the Federal regulators and State regulators are not only talking, but they are trying to find a path forward. Because as I have said now several times on this call, the transmission is going to be a critical component of getting these major transmission projects done for our country. And so as we all know, the Federal regulators, FERC and the State regulators, their jurisdictions or lose the issues can sometimes overlap. And so things that are really important all the time is how we can sort through permitting and sighting. And clearly, another issue around transmission projects, especially these regional projects, which we are talking about in large part with these MISO projects, how you allocate the costs fairly and appropriately. And so what I think, Julian, what will happen with some of these conversations and what we hope to have happened is that there is a better understanding of the issues, perhaps a bit of a meeting of the minds, and so we can start moving forward in a more timely fashion than we might have otherwise had. And of course, when we are making the types of investments that we are making that we want to have, let’s say, greater levels of regulatory certainty. And so these things, I think, will be helpful. I am not suggesting that this task force will solve it all. But I think what it will do will provide a great forum for stakeholders, not just regulators, companies like ours and others to come to the table and say, “Okay, here are things that really matter, and here is how we can lean further forward in the transmission space,” which we, needless to say, strongly support the need to lean forward, further, faster in the transmission space.

Got it. Alright. Fair enough. And then if I can, I mean, let’s move it back to your own portfolio there. How are you thinking about transmission interconnect delays, costs, etcetera, just as you think about your own efforts? And then what are you observing regionally? Again, clearly, the need for transmission is principally evidenced by the elevated cost of interconnection costs and that translating to a relatively stagnant trajectory of processing this queue. Are you seeing issues with your own projects? And then more broadly, are you seeing these elevated costs with other developers in and around insurance sectors? If you can elaborate on it.

Yes, lots to unpack in there, and so let me make a few comments. So number one, Marty a moment ago was talking about how we proceed to the integrated resource planning process. And he also said, a key element of the projects that we look at and select really look very hard at transmission, interconnections, where developers may be in the queue, to try and move things forward. And that’s frankly how we were successful in moving in a very thoughtful and timely fashion with our 700 megawatts of wind generation. So, what we are seeing there, this is all part of our due diligence. Are you seeing sort of a backup, yes. Are you seeing now that organizations like MISO are looking beyond just today, looking to the future with this long-term resource planning effort, the answer to that is yes, and that’s why we support it. It will, we believe, help alleviate, in the future, if you look sort of a decade out, which is really when you think about transmission projects, look just for tomorrow, you look, say, a decade out, what are the things that we need to be doing today to position ourselves for success in the future. So, we are encouraged by that. Are we seeing the increases in prices or challenges, well, it’s premature to say that. We are still going through the process, still talking to developers, working with MISO and others. But the only thing I do know is that we have, I would say, unique expertise to provide the analysis, but also unique expertise to execute these important transmission projects, not just for our projects, but frankly, the projects that I will have regional and frankly, countrywide, positive implications to move forward to clean energy transition. So, I don’t know if, Julien, that answered your specific question. This is certainly an important aspect of what we are seeing, but this is not new to us. And I will finish with this, too. The other encouraging thing that we are seeing is that, in particular, in this instance, MISO is working with the other regional transmission organizations, in this particular instance, SPP, to try and coordinate even better some of these transmission projects and needs. So, you don’t have surprises, right, when it comes time to try and move forward with a particular renewal energy project. That, too, is encouraging. And we look forward to the results of that collaborative effort from those two organizations. And I am sure PJM and MISO will be having similar conversations sometime done ago.

Alright. Excellent. Sorry to squeeze in one more. But just obviously, you have identified there are certain renewable opportunities that are excluded from your 5-year outlook. And I know to certainly say that 5-year outlook is also going to be rolled forward here in the next few – in six months. Can you talk about the next data points that we should be watching in terms of more formally, including some of those projects into your plan just time line to have from that?

You bet. You stated it correctly, Julien, that none of these large regional projects that we outlined in our slides are reflected not only in our 5-year plan, but as you know, we look out 10 years, that $40 billion, we say $40 billion plus, while that big plus to that item is the potential for these large regional transmission projects. So, we are excited about that opportunity to be able to execute some of those. So, what’s the next thing to look at, look, I think that the MTAP, the MISO transmission expansion planning process, that will be really sort of your next visible sign. You will probably see – there may be some information out there towards the end of the third quarter into the fourth quarter. But the process itself, which ultimately goes before the Board of Directors of MISO, will be really in the fourth quarter at the earliest, as I said in my prepared remarks. That could go into the first quarter of next year. But that would be probably, I would say, part of the next data point, if you will, but not – but to be clear, as I said before, a lot of work is going on today to try and make sure that, that is gone as smoothly as possible. But that’s what I would be looking for a little bit later. Michael, you have a point there.

Yes, Julien, I think the only other thing with respect to the renewable projects, the data point there, I think Warner maybe even said this in his opening remarks, is it really that regulatory process. So, look for those CCN filings in the back half of this year, that’s really going to get those kick start from the approval standpoint. That’s, again, those are really speaking to the RFP process itself. Warner was really talking about the transmission.

Yes. Well said. Thank you, Michael. That’s exactly right. We said we expect to be filing for sub-CCH still here by the end of this year. So, that would be another important data point to be looking for incremental capital expenditure opportunities.

Got it. We will watch to look at. Excellent. Thank you all very much.

Thanks Julien. Have a good weekend.

And we have reached the end of the question-and-answer session. And I’ll now turn the call over to Andrew Kirk for closing remarks.

Thank you for participating in this call. A replay of this call will be available for 1 year on our website. If you have questions, you may call the contacts listed on our earnings release. Financial analyst inquiries should be directed to me, Andrew Kirk. Media should call Tony Paraino. Again, thank you for your interest in Ameren, and have a great day.

This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.