Ameren Corporation continues to make systematic capital investments
in infrastructure development projects and smart meter
installation, thereby improving service reliability. It also
maintains a stable earnings base. In addition to focusing on
enhancing customer value, the company aims to create shareholder
value through regular payment of dividends. However, extensive
regulations, pending rate cases and stringent environmental
regulations remain major overhangs. The company is also subject to
volatile commodity prices, which could negatively impact its
margins. Therefore, we are maintaining our Neutral recommendation.
St. Louis-based Ameren Corporation (AEE) is a utility company,
which generates and distributes electricity and natural gas to
residential, commercial, industrial and wholesale end markets in
Missouri and Illinois. The company has two business segments Ameren
Missouri and Ameren Illinois.
Ameren Missouri This regulated division is engaged in
electricity generation, transmission and delivery and gas delivery
activities. Ameren Missouri generates electricity through its
coal-fired, nuclear, hydroelectric, natural gas or oil-fired and
Ameren Illinois It is a regulated segment dealing with
electricity and gas delivery and electricity transmission
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