Alliant Energy Corporation Profile - Corporate Overview
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Alliant Energy Corporation
Profile
Corporate Overview
A lliant Energy Corporation (Alliant Energy) is an electric
and gas utility holding company headquartered in
Madison, Wisconsin. Alliant Energy is a component of
gas distribution system, expansion of wind and solar
generation, and construction of a natural gas-fired electric
generating facility.
the S&P 500. The energy sector is quickly becoming Alliant Energy is a member of the NASDAQ CRD Global
an industry driven by consumer choice and preference. Sustainability index – chosen for their leadership role
Building a cleaner energy infrastructure, focusing on in sustainability reporting. The company is committed
customer affordability, and investing in a seamless and to voluntarily sharing their sustainability strategy and
personalized customer experience are a few of the core governance, environmental footprint and emissions
strategies the company is activating across Wisconsin and reductions, social metrics and community investments.
Iowa each day.
Through its utility Highlights
subsidiaries Interstate
Expanding rate base provides catalyst for long-
Power and Light
term earnings growth – Modernization of the electric
Company (IPL) and
and gas distribution systems, investment in up to 1,150
Wisconsin Power and
MW of wind generation, and construction of a 730 MW
Light Company (WPL),
highly efficient gas-fired electric facility in Wisconsin are
Alliant Energy provides
expected to drive growth in revenues and earnings.
regulated electric and
natural gas service Strong balance sheet and cash flows reduce need
to approximately for equity – Alliant Energy’s 2019 financing plan includes
965,000 electric and issuance of up to $400 million of new common equity,
approximately 415,000 through the Forward Equity Agreement that was executed
natural gas customers in the Midwest. in December 2018 and the Shareowner Direct Plan. IPL
The company also owns 16% of American Transmission and WPL plan to issue up to $600 million and $400 million
Company, LLC (ATC), a transmission only utility operating of long-term debt, respectively. Some of the long-term
in the Midwest. The company also owns a 50% cash debt is needed to refinance maturing WPL debt of $250
equity interest in the 225 megawatt (MW) Great Western million.
Wind Project. In addition, Alliant Energy operates a Attractive common dividend yield – Alliant Energy
relatively small number of non-regulated businesses has a targeted dividend payout of 60%-70% of its
including: Cedar Rapids and Iowa City Railway Company consolidated earnings from continuing operations.
(CRANDIC), a short-line railway operation, and a non- The annual targeted common stock dividend for 2019 is
regulated generating unit, which is leased to WPL. $1.42 per share.
The company believes it is well positioned to grow Favorable regulatory environment – The regulatory
earnings and cash flows with its focus on exceptional environment for utility companies in both Iowa and
service, responsible use of resources and emphasis Wisconsin is considered to be among the most favorable
on providing service at a competitive price. Catalysts in the United States, according to Regulatory Research
expected to drive growth in Alliant Energy’s rate base Associates.
include modernization and expansion of the electric and
Regulated utilities
Minneapolis
and corporate services
IPL generates electricity and distributes
both electricity and natural gas to retail
Milwaukee customers in Iowa. IPL has approximately
Beloit
490,000 retail electric customers and
Chicago
Cedar Rapids
225,000 retail natural gas customers. IPL’s
2018 MISO summer capacity (3,310
MWs) was 40% natural gas or oil, 36%
coal, 12% nuclear purchased power, 1%
wind, 1% wind purchased power and 10%
energy demand management. In 2018,
IPL generated approximately $2.0 billion in
operating revenues.
WPL generates electricity and distributes
both electricity and natural gas in Wisconsin.
WPL has approximately 475,000 retail
electric customers and 190,000 retail natural
gas customers. WPL’s 2018 MISO summer
capacity (2,940 MWs) was 39% natural gas
or oil, 33% coal, 19% purchased power,
4% hydro and wind, and 5% energy demand
management. In 2018, WPL generated
approximately $1.5 billion in operating
revenues.
Purchased Power
Purchased Power
Purchased Power
Electric Electric Nuclear Nuclear Nuclear
*All or some of the
IndustrialIndustrial Industrial Purchased Power
Purchased Power
Purchased Power
renewable energy
85% 85% 85%
Commercial
Commercial
Commercial Coal Coal 11% 11% 11%
Coal Wind 3% Wind 3% Wind 3%
38% 38% 38% 37% 37% 37%
attributes associated
21% 21% 21% with generation from
these sources may be
Operating
Operating
Operating ElectricElectricElectric ElectricElectricElectric used in future years to
sales sales sales power power power* Purchased
* Power
Purchased*Power
revenues
revenues
revenues
mix mix mix sourcessourcessources13% 13% 13%
Other Other
Purchased Power
comply with renewable
Other
energy standards or other
6% *
6% *
6% *
regulatory requirements .
23% 23% 23% Renewables
Renewables
Renewables
13% 13% 13% 18% 18% 18%
Residential
Residential
Residential 30% 30% 30%
Natural Natural Natural Sales Sales Sales
Other Other
Gas Other
Gas Gas for Resalefor Resale for Resale Natural Gas
Natural Gas
Natural Gas
2% 2% 2%
Dividends per share
Stock Data (As of February 28, 2019) Dividends per share
$1.5
Ticker NASDAQ: LNT
$1.2 $1.34 $1.42
Recent Price $45.87 $1.26
$1.10 $1.175
Market Cap $10.8 billion $0.9
Avg. Daily Volume 1,944,932 $0.6
52-Week Range $37.85 - $46.58 $0.3
Dividend Yield 3.1% $0.0
2015 2016
Institutional 2017
Ownership 2018 78.3%
2015 2016 2017 2018 2019*
ve five-year total return
This information, whenyield,
including dividend investing
is current as of February 28, 2019,
**Annual
Annual common stock dividend target. Payment of the 2019 dividends is subject to the actual dividend
declaration common
by the stock dividend target. Payment of the 2019
Board of Directors
and is not an indication of future performance.
013. dividends is subject to the actual dividend declaration by the
Board of Directors.
Regulatory proceedings:
In the first quarter of 2019, IPL made a retail
electric rate filing based on a future forecast
period for both electric and gas rates. The
key drivers of the filing include investments
in cleaner energy through expansion of our
wind resources and environmental controls,
new grid technologies, and the installation
of advanced metering infrastructure.
Any rate changes are expected to be
implemented in two phases with interim
rates effective in April 2019 and final rates
effective after IUB approval. Interim rates
will be based on 2018 historical data and
certain known and measurable changes
occurring in the first quarter of 2019. Renewable resources
In the fourth quarter of 2018, WPL received Alliant Energy owns 623 MW of wind
approval from the PSCW regarding WPL’s nameplate capacity. The company
proposed settlement for its retail electric has plans to invest in and own up
and gas rate review covering the 2019/2020 to an additional 1,150 MW of wind
Test Period. Under the settlement, WPL’s nameplate capacity by the end of 2020.
retail electric and gas base rates will
not change from current levels through
the end of 2020. Retail electric revenue
requirements resulting from increasing
Capital expenditure projections
investments in base rates (including West Alliant Energy expects its capital expenditures to be approximately
Riverside) are offset by lower fuel-related $1.6 billion in 2019, $1.3 billion in 2020, $1 billion in 2021, and
costs and Federal Tax Reform Refunds. $1.3 billion in 2022. The major components of the projected capital
expenditures consist of the following projects:
In the fourth quarter of 2018, The IUB
approved a unanimous settlement Investments in electric and gas distribution systems
agreement between IPL and various Investment in up to 1,150 MW of new wind generation
parties, resulting in an annual retail gas Construction of a 730 MW natural gas-fired electric generating facility
base rate increase of $14 million, effective in Wisconsin
January 17, 2019. The key drivers for the
Generation maintenance and performance improvements
filing included recovery of capital projects,
partially offset by the benefits of Federal
Tax Reform.
In the fourth quarter of 2016 and the Analyst coverage Contact information
first quarter of 2018, the IUB approved
ratemaking principles for up to 1,000 Argus Research Company Susan Gille
MW (500 MW for each filing) of new Bank of America Merrill Lynch Manager, Investor Relations
wind generation. These investments are Barclays Phone: (608) 458-3956
expected to qualify for 100% of the federal Edward Jones susangille@alliantenergy.com
Production Tax Credits. The cost cap for this Guggenheim Securities LLC
Any opinions, estimates or forecasts
wind generation is $1,830 and $1,780 per Macquarie Research regarding Alliant Energy’s performance made
kilowatt, respectively, including allowance Mizuho Securities USA by these analysts are theirs alone and do not
represent opinions, forecasts or predictions
for funds used during construction Scotia Howard Weil
of Alliant Energy or its management. Alliant
and transmission costs. The approved UBS Research Energy does not by its reference to coverage
ratemaking principles include return on Wells Fargo by these analysts imply its endorsement
common equity of 11% with the exception of or concurrence with such information,
Wolfe Research
conclusions or recommendations.
of certain transmission facilities classified
as intangible assets, which should earn the
rate of return on equity authorized by the For more information, including the Annual Report and our Corporate
IUB in a future rate review. Sustainability report please visit alliantenergy.com/investors.
FO RWARD-L OOKING STATEM EN TS any material post-closing adjustments related to
any past asset divestitures, including the sales of
This document includes forward-looking statements. These forward-looking statements can be identified by
IPL’s Minnesota electric and natural gas assets,
words such as “forecast,” “expect,” “guidance,” or other words of similar import. Similarly, statements that
and Whiting Petroleum Corporation, which could
describe future financial performance or plans or strategies are forward-looking statements. Such forward
result from, among other things, indemnification
looking statements are subject to certain risks and uncertainties that could cause actual results to differ
agreements, warranties, parental guarantees or
materially from those expressed in, or implied by, such statements. Actual results could be materially affected by
litigation;
the following factors, among others:
Alliant Energy’s ability to sustain its dividend payout
the ability to defend against environmental claims ratio goal;
IPL’s and WPL’s ability to obtain adequate and timely
rate relief to allow for, among other things, earning brought by state and federal agencies, such as changes to costs of providing benefits and related
a return on rate base additions and the recovery the EPA, state natural resources agencies or third funding requirements of pension and other
of costs, including fuel costs, operating costs, parties, such as the Sierra Club, and the impact on postretirement benefits plans due to the market
transmission costs, environmental compliance and operating expenses of defending and resolving such value of the assets that fund the plans, economic
remediation costs, deferred expenditures, deferred claims; conditions, financial market performance, interest
tax assets, capital expenditures, and remaining costs continued access to the capital markets on rates, life expectancies and demographics;
related to electric generating units (EGUs) that may competitive terms and rates, and the actions of material changes in employee-related benefit and
be permanently closed, earning their authorized credit rating agencies; compensation costs;
rates of return, and the payments to their parent of
inflation and interest rates; risks associated with operation and ownership of
expected levels of dividends;
the impact of the economy in IPL’s and WPL’s service non-utility holdings;
federal and state regulatory or governmental
territories and the resulting impacts on sales changes in technology that alter the channels through
actions, including the impact of energy, tax, financial
volumes, margins and the ability to collect unpaid which customers buy or utilize Alliant Energy’s, IPL’s or
and health care legislation, and regulatory agency
bills; WPL’s products and services;
orders;
changes in the price of delivered natural gas, impacts on equity income from unconsolidated
the impact of customer- and third party-owned
purchased electricity and coal due to shifts in supply investments due to further potential changes to ATC
generation, including alternative electric suppliers,
and demand caused by market conditions and LLC’s authorized return on equity;
in IPL’s and WPL’s service territories on system
regulations; impacts of IPL’s future tax benefits from Iowa rate-
reliability, operating expenses and customers’
demand for electricity; disruptions in the supply and delivery of natural gas, making practices, including deductions for repairs
purchased electricity and coal; expenditures, allocation of mixed service costs
the impact of energy efficiency, franchise retention
changes in the price of transmission services and and state depreciation, and recoverability of the
and customer disconnects on sales volumes and
the ability to recover the cost of transmission associated regulatory assets from customers, when
margins;
services in a timely manner; the differences reverse in future periods;
the impact that price changes may have on IPL’s and
the direct or indirect effects resulting from the impacts of adjustments made to deferred tax
WPL’s customers’ demand for electric, gas and steam
breakdown or failure of equipment in the operation assets and liabilities from changes in the tax laws;
services and their ability to pay their bills;
of electric and gas distribution systems, such as changes to the creditworthiness of counterparties
the ability to utilize tax credits and net operating
mechanical problems and explosions or fires, and with which Alliant Energy, IPL and WPL have
losses generated to date, and those that may be
compliance with electric and gas transmission and contractual arrangements, including participants
generated in the future, before they expire;
distribution safety regulations; in the energy markets and fuel suppliers and
the direct or indirect effects resulting from terrorist transporters;
issues related to the availability and operations of
incidents, including physical attacks and cyber
EGUs, including start-up risks, breakdown or failure current or future litigation, regulatory investigations,
attacks, or responses to such incidents;
of equipment, performance below expected or proceedings or inquiries;
the impact of penalties or third-party claims related contracted levels of output or efficiency, operator reputational damage from negative publicity, protests,
to, or in connection with, a failure to maintain the error, employee safety, transmission constraints, fines, penalties and other negative consequences
security of personally identifiable information, compliance with mandatory reliability standards and resulting in regulatory and/or legal actions;
including associated costs to notify affected persons risks related to recovery of resulting incremental
and to mitigate their information security concerns; the effect of accounting standards issued periodically
costs through rates;
by standard-setting bodies;
employee workforce factors, including changes in impacts that storms or natural disasters in IPL’s
key executives, ability to hire and retain employees the ability to successfully complete tax audits and
and WPL’s service territories may have on their
with specialized skills, ability to create desired changes in tax accounting methods with no material
operations and recovery of costs associated with
corporate culture, collective bargaining agreements impact on earnings and cash flows.
restoration activities;
and negotiations, work stoppages or restructurings;
weather effects on results of utility operations;
Alliant Energy cannot provide assurance that the assumptions referred to in the forward-looking statements or otherwise
issues associated with environmental remediation are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a
and environmental compliance, including compliance material adverse effect on Alliant Energy’s ability to achieve the results included in the forward-looking statements. The
with all environmental and emissions permits, the forward-looking statements included herein are made as of the date hereof and Alliant Energy undertakes no obligations
Coal Combustion Residuals rule, future changes to update publicly such statements to reflect subsequent events or circumstances.
in environmental laws and regulations, including
the EPA’s regulations for carbon dioxide emissions This profile is not a recommendation, an offer or a solicitation of
reductions from new and existing fossil-fueled an offer to buy or sell securities of Alliant Energy. All investment
EGUs, and litigation associated with environmental decisions should be made after considering all of the information
requirements; that Alliant Energy has filed with the Securities and Exchange
Commission, including the risks related to Alliant Energy. Such
information can be found on the SEC’s website, www.sec.gov.
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