Alliant Energy Corporation
CEO : Mr. John O. Larsen
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 14.1% YoY | 20.5% | 22.9% | 2023-02-24 |
Robert Durian says,
2022 Earnings and Adjustments
- 2022 GAAP earnings of $2.73 per share, up from $2.63 per share in 2021
- Adjusted earnings per share increased 6% from 2021, excluding impacts of temperatures and non-recurring adjustments
- Higher earnings from capital investments at Wisconsin utility and higher electric and gas margins drove the 2022 earnings growth, partially offset by higher financing and depreciation expenses
- Lower industrial sales due to temporary plant shutdowns at some of the larger customers
- Nonrecurring adjustments included $0.03 per share related to Iowa state income tax rate change, $0.02 per share related to retirement plan settlement losses, and $0.02 per share related to reserve adjustment for American Transmission Companies base ROE changes
2023 Earnings Guidance
- Affirming 2023 earnings guidance range with a midpoint of $2.89 per share, representing a 6% increase over 2022 adjusted earnings
- 5% to 7% consistent earnings per share growth expected in 2023
- Earnings drivers include earnings on customer investments in core utility business and continued efforts to reduce costs to increase customer value
- Higher depreciation and financing expenses associated with these investments will partially offset positive drivers
- Anticipating growing sales by approximately 0.5% of 1% led by higher sales to commercial and industrial customers
Regulatory Initiatives
- Provided additional testimony and evidence to the Iowa Utilities Board and IPL’s advanced remaking proceeding
- Identified self-developed Creston and Wever projects as the second 200 megawatts of solar products
- Anticipating decisions from the PSCW in 2023 on WPL’s request for 274 megawatts of battery storage
Financing Plans
- Financing plans for 2023 include a mix of new debt supplemented with modest new common equity to finance investments in renewable projects and support refinancing a $400 million debt maturity in 2023
- Launched an At The Market or ATM program as intended approach for raising up to $225 million of new common equity throughout 2023, in addition to $25 million of common equity expected to raise under DRIP finance
- Entered into an interest rate swap to reduce risk of rising interest rates related to a portion of variable-rate debt
Legislation Impact
- Alliant Energy is a strong beneficiary of the Inflation Reduction Act, incorporating its benefits into November 2022 refreshed capital expenditure plan, providing visibility to planned 8% rate base growth through 2026
- Anticipating transfer of up to approximately $150 million of 2023 tax credits, which will positively impact credit metrics and lower customer costs
- Benefiting from new state tax legislation enacted in Iowa in 2022, lowering state corporate tax rates and enabling passing of millions of dollars of annual savings onto customers in Iowa for decades into the future
John Larsen says,
Financial Performance
- Alliant Energy had another successful year of solid operations and financial performance in 2022.
- They delivered results in their 5% to 7% adjusted EPS growth range for the 13th straight year.
- They had their 20th year of consecutive dividend increases.
Clean Energy Blueprint Progress
- Alliant Energy added 250 MW of solar at their Wisconsin sites, making them the largest owner-operator of solar generation in Wisconsin.
- They are on track to bring into service an additional 850 MW of utility-scale solar by the first half of 2024 in Wisconsin.
- Alliant Energy continued to progress their Clean Energy Blueprint in Iowa, advancing renewables and placing electric lines underground to improve system reliability.
- They remain confident in the cost-effectiveness and reasonableness of their solar and storage projects in Iowa.
Partnerships and Economic Development
- Alliant Energy partnered with Transamerica, Aegon, and Mercury Marine to build solar gardens to advance sustainability objectives and provide solar energy to partners like Habitat for Humanity.
- They were named a top utility in economic development by Site Selection magazine for the fourth year in a row and were awarded the Chairman’s Award for Workforce Development Leadership.
Employee Experience
- Alliant Energy was named by the Human Rights Campaign Foundation as the best place to work for the fifth year in a row and to Forbes’ list of America’s best midsized employers for the fifth year in a row.
Well-Executed Strategy
- Alliant Energy’s well-executed forward-thinking and flexible strategy, coupled with constructive regulatory jurisdictions, has been a major part of their success and positioned them as a leader on the path to a clean, reliable, and affordable energy future.
Q & A sessions,
2022 Fuel Costs Validation and Recovery Process
- Separate proceedings will be taken to validate and recover 2022 fuel costs
- Recovery process most likely to start later in the year
Wisconsin Rate Case to be Filed in Q2 2022
- Transparent rate base additions to be filed in early second quarter
- Key drivers to be solar projects and battery projects
- Increases in customers’ bills targeted to be in single-digit percentages in 2024 and 2025
Progress on Solar and Battery Projects
- IUB granted authority to reconsider 200 MW of solar at Duane Arnold sites
- Filing for judicial review to move forward with second 200 MW of solar and 75 MW of battery
- Recent order issued by IUB to allow traditional process to move forward
- Procedural steps to be taken for advanced rate purchases
No bad stock 