Andrew Kadavian

Andrew Kadavian asked about the prescriptive nature of ramp rates and the timing of minimum monthly bills for the new Electric Service Agreements (ESAs). He also inquired about the confidence in industrial demand recovery for 2026, given 2025's weakness, and the proportion of overall industrial load represented by the Panasonic project.

Answer

David Campbell explained that ESAs include specific annual capacity schedules, with minimum bills kicking in from the first year based on contracted capacity, typically modeled at 80% for the first two years. Bryan Buckler expressed confidence in 2026 industrial demand recovery, noting strong early 2026 indications and Panasonic's increasing load, while not disclosing specific megawatt numbers for Panasonic's share of industrial load.

Andrew Kadavian asked about the reasons behind the lag between Ameren's 10.6% rate base CAGR and its 6%-8% EPS CAGR, distinguishing between financing and structural factors, and explored opportunities to narrow this gap to potentially increase EPS growth. He also questioned Ameren's concerns regarding potential data center project cancellations despite signed ESAs and sought clarification on when large load take-or-pay provisions become binding for customers.

Answer

Marty Lyons, Chairman, President, and CEO, attributed the primary difference between rate base and EPS growth to equity issuance dilution, noting that improved sales from hyperscalers could help reduce the differential between allowed and earned ROEs. Michael Moehn, Group President, Ameren Utilities, and Marty Lyons emphasized protective provisions in the tariff and ESAs, such as termination clauses, minimum monthly payments, and security requirements, designed to safeguard existing customers, while expressing no current concerns about cancellations.

Andrew Kadavian inquired about the lag between Ameren's 10.6% rate base CAGR and 6-8% EPS CAGR, asking if it's primarily due to financing or structural issues and if there's an opportunity to narrow this gap. He also asked about concerns regarding data center project cancellations despite signed ESAs in other states and when take-or-pay provisions become binding for customers.

Answer

Marty Lyons, Chairman, President, and CEO, attributed the primary difference to equity issuance dilution and mentioned that clearer sales forecasts from hyperscalers could help reduce the differential between allowed and earned ROEs, acknowledging regulatory lag. Michael Moehn, Group President, Ameren Utilities, added that tariff provisions, including termination clauses, minimum monthly payments, and security requirements, are in place to protect existing customers.