Alliant Energy Corporation · NASDAQ:LNT
Alliant Energy — EEI Finance Conference 2024
40 slides from Alliant Energy's conference presentation, November 2024
Slide 1: Alliant Energy Corporation EEI Finance Conference
Alliant Energy Corporation EEI Finance Conference November 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that may be considered forward looking statements, such as management’s expectations of financial objectives and projections, earnings guidance, capital expenditures, future investment opportunities, earnings growth, plant retirements, emission reduc
Slide 3: Alliant Energy: At a Glance
Alliant Energy: At a Glance Our purpose: Serve customers and build stronger communities 1 million electric 3,000+ dedicated $13.3 billion >95% earnings customers employees 13-month average From regulated 425,000 gas 2023 rate base operations customers Alliant Energy leads regulated, owned & operated
Slide 4: Alliant Energy: Investment Thesis
Alliant Energy: Investment Thesis Unlocking Growth, Reliability & Customer Value Constructive Consistent financial track record Low risk of catastrophic regulatory 14 consecutive years of events in the states we environments achieving 5-7% earnings growth operate Strong customer base Over 3 GW of re
Slide 5: Consistent Track Record of Shareowner Return
Option 2 Consistent Track Record of Shareowner Return LNT in S&P’s High Yield Dividend Aristocrats Index $3.00 $2.00 $1.00 $0.00 2016 2017 2018 2019 2020 2021 2022 2023 2024E 2025E Ongoing EPS Dividends Ongoing EPS ~6% CAGR over the past 10 years Dividends ~6% CAGR, consistent 60-70% payout ratio 20
Slide 6: Alliant Energy: Well-Positioned for Growth
Alliant Energy: Well-Positioned for Growth Advancing economic development Flexible resource planning Constructive jurisdictions Competitive advantages include: Non-litigated process enabling growth in Regulatory frameworks aligned for growth • Access to land & transmission tandem with our customers:
Slide 7: Advancing Economic Development
ADVANCING ECONOMIC DEVELOPMENT 7
Slide 8: Relentlessly Building for the Future
Relentlessly Building for the Future Flexible planning for growth, driving affordability and rate base growth Planning for Capacity Expansion Opportunities at Additional Sites 3,000 (not in capex plan) Megawatts (MW) 2,500 2,000 Future Phases of 1,500 Big Cedar Site 3-5% (not in capex plan) Electric
Slide 9: Data Centers – Mitigating Risk
Data Centers – Mitigating Risk Ensuring benefits for all customers Individual contract rates • Competitive, cost-based rates • Robust regulatory oversight that ensures no subsidization by other customers Protection for other customers and company • Customer risk sharing to align with company financi
Slide 10: Flexible Resource Planning & Capital Plans
FLEXIBLE RESOURCE PLANNING & CAPITAL PLANS 10
Slide 11: Robust Planning Aligned for the Future
Robust Planning Aligned for the Future Resource plan outlines our evolving diverse energy mix Our Clean Energy Blueprint: • Incorporates flexible, reliable and diverse energy mix of resources and strategies • Adapts easily to transformative market conditions and load growth • Extends the value of ex
Slide 12: Investments Support Growth, Reliability, and Customer Value
Investments Support Growth, Reliability, and Customer Value $1.8B increase in capital expenditures supports 10% investment CAGR Projected Rate Base + Construction Work in Progress Capital Investment Drivers Capital Expenditure Plan 13-month average ($ in billions) $22.2 Renewables and Battery Storag
Slide 13: Generation Investments Support Reliability, Affordability and Sustainability
Generation Investments Support Reliability, Affordability and Sustainability Existing and new resources add flexibility with evolving load growth Scaling up new generation resources to enable energy transition and resurgence ~1,200 MW ~ 500 MW new ~750 MW new wind and solar energy storage gas resour
Slide 14: Enhancing Resiliency of our Distribution Grid
Enhancing Resiliency of our Distribution Grid Among top performers for reliability Undergrounding supports reliability for generations (27% of lines underground) • Proficiency gained through experience – reduces operating expenses throughout the life cycle • Undergrounding fiber enables critical com
Slide 15: American Transmission Company
American Transmission Company Alliant Energy’s 16% equity ownership provides additional regulated returns to investors Benefits of Ownership ATC 10-year capital A source of solid future investments, earnings and cashflows plan $8.9B - $10.9B LNT Share of Projected Capital Expenditures • 2024 rate ba
Slide 16: Strong Customer Focused Investment Growth Creates Future Upside
Strong Customer Focused Investment Growth Creates Future Upside Solid outlook of investment opportunities extend beyond current investment plan Reliability and Resiliency Customer Focused Growth and Value • Replacing coal assets with resources that provide equivalent capacity and • Energy resources
Slide 17: Constructive Jurisdictions
CONSTRUCTIVE JURISDICTIONS 17
Slide 18: IPL Update
IPL Update Constructive regulatory and legislative outcomes propel growth and customer affordability • Innovative settlement approved by the Iowa Utility Commission (IUC) provides ability to retain tax credits, energy margins and capacity revenues from new generation allowing stable base rates throu
Slide 19: WPL Update
WPL Update Federal funding success and execution of renewable projects helps customer affordability • U.S. Department of Energy selection for $30 million grant supports a ~$90 million investment to demonstrate a compressed carbon dioxide long-duration energy storage system • U.S. Department of Energ
Slide 20: Financial Information
FINANCIAL INFORMATION Alliant Energy.
Slide 21: Consistent growth in projected 2025 earnings and dividends
Consistent growth in projected 2025 earnings and dividends 2025 midpoint of $3.20 EPS represents 6% growth from 2024 ongoing guidance 2025 Earnings Drivers: • Higher earnings from capital investments $3.20 • Higher depreciation expense 2024 Ongoing EPS $3.03 Guidance Midpoint • Higher financing cost
Slide 22: Tax Credits and their Transferability Provide Benefits
Tax Credits and their Transferability Provide Benefits Provide customer affordability and financing flexibility which align with our strategy Lowers cost for customers Forecasted generated tax credits (in millions) • Long-term extension of tax credits and expansion of customer resolutions eligible f
Slide 23: Investments to Enable Customer Cost Savings
Investments to Enable Customer Cost Savings Focus on cost management yields decreasing O&M despite inflationary pressures Generation Technology Electric Distribution Investing in renewables and battery Investing to enhance productivity and energy storage to enable the Investing to move electric grid
Slide 24: Balanced Funding Approach for Capital Investment Program
Balanced Funding Approach for Capital Investment Program Backed by a solid balance sheet, strong cash flows and investment-grade credit ratings Sources of Funding Financing Expectations 2025-2028 • Targeting 14-15% FFO/Debt metrics between 2025-2028 • Maintain ~40% parent equity structure and author
Slide 25: 2025 Financing Plans
2025 Financing Plans Improving credit metrics in 2025, backed by stronger cash flows and a solid balance sheet ($ in Millions) AE Finance/Parent IPL WPL Long-Term Debt: Issuances Up to $600 Up to $600 N/A ($50) @ 5.50% in July 2025 Maturities ($300) @ variable rate in March 2025 ($250) @ 3.40% in Au
Slide 26: Environmental, Social and Governance (ESG) Information
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INFORMATION 26
Slide 27: Leader in Corporate Responsibility
Leader in Corporate Responsibility Environmental Social Governance • Aspire to achieve net-zero greenhouse gas • Halfway toward goal of planting 1 million trees • Lead independent director with emissions by 2050 – one tree for each electric customer clearly defined and robust • Climate report valida
Slide 28: Greenhouse Gas Emission Reduction Goals
Greenhouse Gas Emission Reduction Goals Our clean energy vision Achieved and Anticipated Greenhouse Gas Reductions 0% -38% -50% No coal -100% 2005 2023 2030 2040 2050 As our energy mix transitions, our annual CO2 emissions may fluctuate due to various factors – such as electricity production needed
Slide 29: Path to Zero Coal Generation by 2040
Path to Zero Coal Generation by 2040 Zero coal in WI by the end of decade; Out of operated coal in IA by the end of 2034 3,500 Highlights 3,000 • In 2023, 8.5% of revenue was from coal 2,500 • By 2035, just 6%* of coal generation remaining (in MWs) 2,000 1,500 1,000 500 0 2005 2023 2030E 2035E 2040E
Slide 30: Corporate Responsibility Report
Corporate Responsibility Report Our values in action • Partnerships with UW-Madison and Iowa • Inform the public on downed power lines State University for Agrivoltaics research and work zones to prevent harm • Investing and advancing technologies to • Injury case management program to enhance relia
Slide 31: Governance and Compensation
Governance and Compensation Strong governance begins with transparency and diversity Board of Directors Executive Compensation • Separate Chairman and CEO positions • Strong linkage of compensation to achievement of financial, • Lead independent director with clearly defined and robust customer focu
Slide 32: ESG Ratings and Recognition
ESG Ratings and Recognition Top quartile ratings from MSCI and Sustainalytics among utilities Rating Entity LNT Score Range AA MSCI AAA – CCC (Leader) 0 – 100 Sustainalytics 17.1 (Lower score = less unmanaged risk) 32
Slide 33: Alliant Energy ESG Disclosures
ALLIANT ENERGY ESG Disclosures Quick references Corporate Responsibility Report Clean Energy Vision and Goals Climate Report Political Engagement Guidelines Biodiversity Commitment Corporate Governance Guidelines Human Rights Policy Diversity, Equity and Inclusion Commitments ESG Data and Reports Al
Slide 34: Appendix
APPENDIX Alliant Energy.
Slide 35: Growing our Renewable Rate Base
Growing our Renewable Rate Base 27% of 2023 rate base was renewable generation and battery storage Gas Distribution 8% Renewable Generation and Battery Storage 27% Electric Distribution 42% 2023 year-end rate base Coal Generation 9% Gas Generation 12% Retired Plant 2% 35
Slide 36: Rate Base and Construction Work in Progress
Rate Base and Construction Work in Progress 10% investment CAGR fuels long-term sustainable growth IPL Rate Base + Construction Work in Progress WPL Rate Base + Construction Work in Progress Projected 13-month average rate base ($ in billions) Projected 13-month average rate base ($ in billions) $11
Slide 37: Forecasted Generated Tax Credits
Forecasted Generated Tax Credits IPL Forecasted generated tax credits WPL Forecasted Generated Tax Credits ($ in millions) ($ in millions) $300 $300 $200 $200 $100 $100 $0 $0 2024 2025 2026 2027 2028 2024 2025 2026 2027 2028 IPL ITC $10 $40 $90 $115 $15 WPL ITC $5 $100 $70 $90 $45 IPL PTC $110 $140
Slide 38: Constructive Regulatory Framework
Constructive Regulatory Framework We are approved for many risk-reducing riders for items such asIPLfuel and transmission Revenues and expenses recovered under “Riders” WPL Iowa retail Wisconsin retail Ability to retain tax credits and energy margins from new generation until placed in customer rate
Slide 39: IUC Rate Review Settlement and Order
IUC Rate Review Settlement and Order Docket RPU-2023-0002 Summary of electric and gas rate review order: Increase in retail electric revenue requirements (2-year phase-in for customers through a rider) $185 million Increase in retail gas revenue requirements (single year implementation) $10 million
Slide 40: Reconciliation Between GAAP and Non-GAAP EPS
Reconciliation Between GAAP and Non-GAAP EPS 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 Midpoint GAAP EPS from continuing operations $1.69 $1.65 $1.99 $2.19 $2.33 $2.47 $2.63 $2.73 $2.78 $2.80 Non-GAAP adjustments: • Losses from sales of Minnesota distribution assets 0.04 • Voluntary employee