Wunderlich Outlook on Ameren Encompasses Constructive Missouri Regulation

“The final rate order for Sell-rated Ameren's (NYSE: AEE) Missouri electric utility appears largely in line with our expectation,” Wunderlich Securities wrote in a report this morning. “Regulators granted a better-than-expected 10.2% ROE vs. the 10.0% discussed in a Commission meeting a few weeks ago; this was more or less offset by the disallowance of ~$90 million related to Taum Sauk. The headline revenue figure is $172mm.

“Staff testimony for the Illinois cases was filed two weeks ago. While some aspects appeared constructive, Staff's recommended revenue requirements were low, in our view. Our outlook for AEE encompasses constructive Missouri regulation, but reflects continued difficulty in the Illinois regulated and non-regulated merchant businesses.”

Ameren closed Wednesday at $28.89.