This MDA includes information relating to Alliant Energy, and IPL and WPL (collectively, the Utilities), as well as ATC Holdings, AEF and Corporate Services. Where appropriate, information relating to a specific entity has been segregated and labeled as such. The following discussion and analysis should be read in conjunction with the Financial Statements and the Notes included in this report, as well as the financial statements, notes and MDA included in the 2020 Form 10-K . Unless otherwise noted, all "per share" references in MDA refer to earnings per diluted share.



                                           21

--------------------------------------------------------------------------------

Table of Contents


                                2021 HIGHLIGHTS

Key highlights since the filing of the 2020 Form 10-K include the following:

Customer Investments: •In March 2021, WPL filed a Certificate of Authority with the PSCW for approval to acquire, construct, own, and operate up to 414 MW of new solar generation by the end of 2023 in the following Wisconsin counties: Dodge (150 MW), Waushara (99 MW), Rock (65 MW), Grant (50 MW) and Green (50 MW). In April 2021, WPL received an oral decision from the PSCW authorizing WPL to acquire, own and operate 675 MW of new solar generation in various Wisconsin counties, and a written order from the PSCW is currently expected in May 2021. A significant majority of the capital expenditures for these 1,089 MWs of solar generation projects were included in the anticipated construction and acquisition expenditures included in "Liquidity and Capital Resources" in the 2020 Form 10-K . WPL proposes to own and operate the solar generation projects, which are currently expected to qualify for 30% investment tax credits, through a tax equity partnership, with approximately 35% to 45% of the construction costs financed with capital from the tax equity partner. WPL requested to include $355 million and $585 million in rate base for the 414 MW and 675 MW of new solar generation, respectively, which reflects its portion of capital expenditures, less the amounts financed by the tax equity partner. The 1,089 MW of new solar generation would replace energy and capacity being eliminated with the planned retirement of the coal-fired Edgewater Generating Station (414 MW) by the end of 2022, and Columbia Unit 1 by the end of 2023 and Columbia Unit 2 by the end of 2024 (595 MW in aggregate).

Rate Matters: •In May 2021, WPL filed a notice with the PSCW of its intent to enter into a settlement agreement with certain intervenor groups for annual base rate increases of $70 million and $15 million for WPL's retail electric and gas customers, respectively, covering the 2022/2023 forward looking Test Period. The key drivers for the proposed annual base rate increases include lower excess deferred income tax benefits in 2022 and 2023 and revenue requirement impacts of increasing electric and gas rate base, including investments in solar generation. In addition, tentative agreement has been reached proposing WPL maintain its current authorized return on common equity of 10%, implement a 54% common equity component of regulatory capital structure, as well as receive a recovery of and a return on the remaining net book value of Edgewater Unit 5, which is currently expected to be retired by the end of 2022. WPL currently plans to file its related rate review request with the PSCW in the second quarter of 2021 and expects any rate changes granted from this request to be effective on January 1, 2022 and extend through the end of 2023. •In April 2021, the IUB issued an order that new rules are to be adopted, which would establish minimum filing requirements for rate reviews using a forward-looking test period, and the related subsequent proceeding review after the close of the forward-looking test period. The rules provide that in the subsequent proceeding review, a utility's actual costs and revenues shall be presumed to be reasonably consistent with the forward-looking test period if the utility's actual return on common equity falls with a standard of reasonableness of 50 basis points above or 50 basis points below the authorized return on common equity. The new rules are currently expected to be effective later in 2021.

Legislative Matters: •In March 2021, the American Rescue Plan Act of 2021 (Act) was enacted. The most significant provision of the Act for Alliant Energy is reduced minimum pension plan funding requirements, which Alliant Energy is currently evaluating. The Act also provides additional funding to the Low Income Home Energy Assistance Program, which assists certain of Alliant Energy's customers with managing their energy costs, as well as provides financial support for certain of Alliant Energy's residential, small business and non-profit customers. •In April 2021, legislation was enacted in Iowa prohibiting counties and cities from regulating the sale of natural gas and propane.



                             RESULTS OF OPERATIONS

Results of operations include financial information prepared in accordance with GAAP as well as utility electric margins and utility gas margins, which are not measures of financial performance under GAAP. Utility electric margins are defined as electric revenues less electric production fuel, purchased power and electric transmission service expenses. Utility gas margins are defined as gas revenues less cost of gas sold. Utility electric margins and utility gas margins are non-GAAP financial measures because they exclude other utility and non-utility revenues, other operation and maintenance expenses, depreciation and amortization expenses, and taxes other than income tax expense.

Management believes that utility electric and gas margins provide a meaningful basis for evaluating and managing utility operations since electric production fuel, purchased power and electric transmission service expenses and cost of gas sold are generally passed through to customers, and therefore, result in changes to electric and gas revenues that are comparable to changes in such expenses. The presentation of utility electric and gas margins herein is intended to provide supplemental information for investors regarding operating performance. These utility electric and gas margins may not be comparable to how other entities define utility electric and gas margin. Furthermore, these measures are not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance.



                                           22

--------------------------------------------------------------------------------

Table of Contents Additionally, the table below includes EPS for Utilities and Corporate Services, ATC Holdings, and Non-utility and Parent, which are non-GAAP financial measures. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends, and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.

Financial Results Overview - Alliant Energy's net income and EPS attributable to Alliant Energy common shareowners for the three months ended March 31 were as follows (dollars in millions, except per share amounts):

© Edgar Online, source Glimpses