ALLIANT ENERGY CORPORATION Alliant Energy Corporation
Q1 2024 Earnings Call May 3, 2024
Cautionary Statements
Forward-looking Statements
The information regarding forecasted earnings per share, forecasted effective income tax rates, financing plans, and regulatory plans contain forward-looking statements. Actual results could differ materially because the realization of those results is subject to many uncertainties, including: the state of the economy in the service territories of IPL and WPL; state and federal legislation and regulatory actions; weather; and other factors discussed in more detail in Alliant Energy Corporation's earnings release dated May 2, 2024, and in Alliant Energy's SEC filings. Alliant Energy cannot provide any assurance that the assumptions used in the forward-looking statements or otherwise are accurate or will prove to be correct. All forward-looking statements included in this presentation are based upon information presently available, and Alliant Energy assumes no obligation to update any forward-looking statements.
2 | 2024 Q1 Earnings Call |
Alliant Energy: Proven Success
Unlocking Growth, Reliability & Customer Value
Constructive | |||||||||
Consistent financial | Low risk of | ||||||||
regulatory | track record | ||||||||
catastrophic | |||||||||
environments | 14 consecutive years of achieving | ||||||||
5% to 7% earnings growth | events | ||||||||
In the states we operate | |||||||||
Strong Balance Sheet | Over 3 GW of | ||||||||
No material new equity | renewable resources | ||||||||
required | |||||||||
Top tier reliability | Strong economic | ||||||||
development | |||||||||
27% of distribution is | |||||||||
program to attract | |||||||||
underground | customers | ||||||||
3 | 2024 Q1 Earnings Call |
Generating 1 Gigawatt of solar energy
Alliant Energy largest owner-operator of solar in Wisconsin
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Building stronger communities in business-friendly states
Recent economic development announcements include diverse customers, load growth
Why Iowa & Wisconsin are attractive to businesses:
- Top tier clean energy & reliability
- Economically strong
- Skilled workforce
- Enabling incentive rate structures
- Non-litigatedresource planning = flexibility
- Investment incentives in certified sites (Iowa)
- Tax rate expected to drop to 5.5% (Iowa)
- Sales & use tax exemption for data centers (Wisconsin)
Food Products
Healthcare
Services
Manufacturing
5 | 2024 Q1 Earnings Call |
New legislation in Iowa, Wisconsin
Positions states for accelerated economic development
In Iowa:
In Wisconsin:
Major Economic Growth Attraction Program provides incentives to attract large businesses:
- Committed to creating jobs
- Investing in Iowa
- Prepared to locate at growth ready, certified industrial sites
New technologies (energy storage & nuclear) now eligible for advanced ratemaking
Creates greater certainty and transparency on important, future customer investments
Sales and use tax exemption for data centers
Provides another tool for the state and utilities to use when promoting economic development
Electric vehicle bill
gets more fast chargers along major thoroughfares more economically
Increases driver confidence a charge will be available when and where needed
6 | 2024 Q1 Earnings Call |
Financial Highlights: Q1 2024 Results
Q1 2024 earnings $0.62 - includes ($0.08) per share temperature impact on retail sales
Q1 2023 to Q1 2024 GAAP EPS Variances:
Q1 2023 GAAP earnings per share | $0.65 |
Revenue requirements from capital investments at WPL | 0.11 |
Estimated temperature impact on retail electric and gas sales | (0.04) |
Higher financing expense | (0.04) |
Higher depreciation expense | (0.04) |
Other (Timing of income taxes) | (0.02) |
Q1 2024 GAAP earnings per share | $0.62 |
2024 Full Year Guidance:
Reaffirming 2024 estimated EPS guidance range: $2.99 - $3.13
Key Assumptions:
- Ability of IPL and WPL to earn their authorized rates of return
- Normal temperatures in its utility service territories
- Constructive and timely regulatory outcomes from regulatory proceedings
- Stable economy and resulting implications on utility sales
- Execution of capital expenditure and financing plans
- Execution of cost controls
- Consolidated effective tax rate of ~(7%)
~20% of annual
earnings guidance
achieved in Q1
7 | 2024 Q1 Earnings Call |
2024 Financing Plans
Completed $300M WPL green bond issuance, renewed $300M term loan in Q1 2024
($ in Millions) | AE Finance/Parent | IPL | WPL | |
Long-Term Debt: | Remaining | Completed | Remaining | Completed |
Issuances | Up to $400 | Term Loan issued in | Up to $700 | $300 Green Bond |
March 2024: | issued in March | |||
$300 @ variable rate | @ 5.375% | |||
Maturities | ($300) in March 2024 | ($500) in December 2024 | ||
Equity: | ||||
Issuance | ~$25 from our Shareowner Direct Plan | |||
- Anticipate approximately $120 million in proceeds from sale of partial interests in West Riverside in Q2 2024
- More than $200 million of tax credits expected to be generated in 2024 that we intend to transfer as permissible under the Inflation Reduction Act. Executed agreements to sell tax credits to be generated in 2024 and 2025 with counterparties
- Executed of a $300M interest rate swap to fix the interest rate on a portion of variable rate term loan borrowings at 3.93% through January 2026
8 | 2024 Q1 Earnings Call |
Ongoing Regulatory Proceedings
2024 regulatory initiatives focused on customer focused investments and IA rate review
Wisconsin Recent Activity
Regulatory Progress in WI
- Approval: Construction authority for capacity & efficiency improvements at Neenah and Sheboygan Falls Generating Stations (6680-CE-185 and 6680-CE-186)
- Approval: Additional sales (up to 125 MW) of West Riverside to WEC/MGEE (5-BS-273)
Solar costs deferral
Above the construction cost authorizations (6680-AF-107)
Petitions filed in Dane county circuit court for judicial review of PSCW's solar deferral decision and rate review
2023 Electric Fuel Reconciliation
Expect decision in Q3 2024 (6680-FR-2023)
Riverside Enhancements
Expect decision in Q4 2024 (6680-CE-187)
Additional Flexible,
Dispatchable
Resources
Expect requests to be filed in 2024
Iowa
Recent Activity
- Legislation passed that enables future advanced ratemaking for energy storage and nuclear
Regulatory Progress in IA
Electric and Gas rate review
Test period October 2024 to September 2025; expect decision in Q3 2024 (RPU-2023-0002)
Additional Flexible, Dispatchable Resources
Expect requests to be filed in 2024
9 | 2024 Q1 Earnings Call |
Iowa Rate Review - Procedural Schedule
Investing in a diverse energy mix and modernizing the energy grid to deliver a more reliable, sustainable, resilient and secure energy future
5/14 | IPL Rebuttal Testimony | |
5/28 | Surrebuttal Testimony | |
6/18 | Joint Statement of Issues | |
6/18 | Settlement Deadline | |
7/9-12 | Hearing |
10 | 2024 Q1 Earnings Call |
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Disclaimer
Alliant Energy Corporation published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 22:16:47 UTC.
