Alliant Energy Corporation · NASDAQ:LNT
Alliant Energy — 2023 AGA Financial Forum
38 slides from Alliant Energy's conference presentation, May 17, 2023
Slide 1: Powering What’s Next
Powering What’s Next Investor Materials – AGA 2023
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, capital expenditures, earnings growth, plant retirements, emission reduction targets, rate base, financing plans, regulatory
Slide 3: Company Overview
COMPANY OVERVIEW Alliant Energy.
Slide 4: Alliant Energy Corporation
Alliant Energy Corporation Serving customers and communities in Iowa and Wisconsin and powering the transition to a cleaner energy future Strong Regulatory Jurisdictions Wisconsin “WPL” 995,000 Forward looking test years Electric customers Large project pre-approval process 425,000 in both states Ga
Slide 5: Investment Considerations
Investment Considerations Alliant Energy provides a compelling investment proposition Leading ESG profile 5-7% Clean energy focused investment plan – Long-Term EPS ~50% of investments in renewables and growth(a) ~8-10% battery storage Total Shareholder ~3% Return Constructive regulatory environments
Slide 6: Consistent earnings growth
Consistent earnings growth Delivered on 5-7% growth for the 13th consecutive year Consistently meeting earnings guidance Consistently achieving 5-7% earnings and dividends growth 2023: $2.82-$2.96 Guidance Range Adjusted EPS ~6% CAGR over the past 10 years 2022: $2.73 Adjusted EPS Dividends ~6% CAGR
Slide 7: Environmental Social Governance
Environmental Social Governance • Net-zero CO2 emissions by 2050 • DE&I initiatives create an • Diverse and experienced environment of belonging board that oversees all ESG • New climate report validates our environmental goals are • Planting over 1 million trees priorities consistent with the Paris
Slide 8: Purpose-focused strategy delivers results
Purpose-focused strategy delivers results Our purpose: To serve customers and build stronger communities IMPROVE INCREASE EXPAND ENABLE SUPPORT Customer experience Operational efficiency Renewable energy Customer growth Electrification and economic and resiliency and distributed development energy 8
Slide 9: Customer Investments
CUSTOMER INVESTMENTS Alliant Energy.
Slide 10: Clean Energy Blueprints
Clean Energy Blueprints Our roadmap to achieve a resilient, affordable and clean energy future ✓ Replacing coal generation with balanced generation mix including renewable and flexible generation ✓ Adding ~1.5 GW of solar 2022-2024 and adding ~350 MW battery storage by 2025 ✓ 250 MW solar in-service
Slide 11: Balanced portfolio of clean, efficient generation
Balanced portfolio of clean, efficient generation MISO seasonal construct drives additional capacity resource investments • A diverse generation portfolio supports continuous reliability and benefits customers in all four seasons ‒ Wind and solar capacity accreditation varies by season under new MIS
Slide 12: Solar and Battery Storage Portfolio Progress
Solar and Battery Storage Portfolio Progress 250 MW solar in-service in 2022, 1.6 GW solar & battery still under development ✓ Regulatory Approval Progress ✓ 1,089 MW solar approved in Wisconsin ✓ Awaiting approval for 275 MW battery storage in Wisconsin ✓ IUB approved advance ratemaking principles
Slide 13: Wind and Solar Renewable Portfolio
Wind and Solar Renewable Portfolio Future wind repowering available when PTC credits end after 10 years in-service Nearly 1,800 MW makes Alliant Energy the 3rd largest owner operator of regulated wind in the USA 2008 2009 2011 2012 2018 2019 2020 Wind Site Owner Size (MW) In-service Cedar Ridge (Fon
Slide 14: Enhancing the resiliency of our distribution grid
Enhancing the resiliency of our distribution grid Investments to improve resiliency, prepare for more electrification and distributed energy Undergrounding •~26% of system currently underground (~24,000 miles remaining to underground our targeted 80% of system) 25 kv Design standard •~5% of lines cu
Slide 15: Financial Information and Regulatory Initiatives
FINANCIAL INFORMATION AND REGULATORY INITIATIVES
Slide 16: Consistent Growth - Projected 2023 Earnings
Consistent Growth - Projected 2023 Earnings 2023 midpoint of $2.89 EPS represents 6% growth from 2022 Adjusted EPS 2023 Earnings Drivers: + Earnings from capital investments $2.89 + Lower utility O&M Expense $2.73 – Higher depreciation expense – Higher interest and dilution 2022 Adjusted EPS of $2.7
Slide 17: Customer-focused investments drive rate base growth
Customer-focused investments drive rate base growth Robust clean energy investments drive rate base growth Flexible, Projected Rate Base Dispatchable (13-Month Average, $ in billions) Generation $16.7 15% $15.6 $14.3 Electric $13.2 Distribution $12.4 26% Renewable Generation and Battery Gas Storage
Slide 18: Strong investment growth path
Strong investment growth path Solid outlook of investment opportunities to replace ~2 GW of retiring coal generation Outlook Investment Opportunities: • Inflation Reduction Act enhances the economics of future investments that support transition to cleaner energy: 2027-2031 o Repowering of wind site
Slide 19: Inflation Reduction Act provides flexibility
Inflation Reduction Act provides flexibility This legislation provides both near and long-term opportunities aligned with our strategy Positive for Customers – Lowers cost ✓ Utility ownership enabled by this legislation is estimated to provide approximately $475 million of net present value savings
Slide 20: 2023 Financing Plans
2023 Financing Plans Mix of debt and common equity to fund updated investment plan and maintain strong balance sheet ($ in Millions) AEC/Parent WPL IPL Long-Term Debt: Issuances Convertible Note issued in March Green Bond issued Expected to be 2023: $575 @ 3.875% in March 2023: issued: Up to $300 $3
Slide 21: Investments to enable customer cost savings
Investments to enable customer cost savings Focus on cost management yields decreasing O&M despite inflationary pressures Technology Generation Electric Distribution Investments in technology to Investing in renewables to enable Investments to move electric grid enhance productivity and efficiency t
Slide 22: Key Regulatory Initiatives
Key Regulatory Initiatives 2023 regulatory initiatives focused on renewable investments and rate reviews In Progress: Customer Investments: ✓ IPL – Advance ratemaking filing for 400 MW of solar and 75 MW of battery storage (RPU-2021-0003) ‒ IUB approved advance ratemaking for 200 MW of build-transfe
Slide 23: WPL Rate Review supports customer value
WPL Rate Review supports customer value Investing in a more sustainable and diverse energy mix delivers greater value, reliability, resiliency, and choice to customers Cleaner, cost-effective and diverse energy portfolio ✓ Adding nearly 1,100 MW of solar generated energy by mid-2024 ✓ Developing nea
Slide 24: Wisconsin Rate Review – Docket 6680-UR-124
Wisconsin Rate Review – Docket 6680-UR-124 Summary of Request for Forward Test Years 2024 2025 Increase in electric revenue requirements $111M $71M Increase in gas revenue requirements $17M -- Maintain ROE 10% 10% Increase in regulatory equity level 56.47% 56.25% Electric rate base $5.5B $5.9B Gas r
Slide 25: IPL’s Advance Ratemaking Request
IPL’s Advance Ratemaking Request Duane Arnold I and II 200 MW solar Creston and Wever self-developed 200 MW solar build-transfer projects and 75 MW battery storage projects ✓ In April 2023, IUB issued an order approving ✓ In January 2023, IPL filed a petition for judicial review advance ratemaking p
Slide 26: ESG Profile
ESG PROFILE Alliant Energy.
Slide 27: ESG Scores & Recognition
ESG Scores & Recognition Top quartile ESG ratings from MSCI and Sustainalytics among utilities LNT Rating Entity Range Score AA MSCI AAA – CCC (Leader) 0 – 100 Sustainalytics 21.5 (Lower score = less unmanaged risk) CDP Climate / Water C/B A-F Questionnaire 27
Slide 28: ESG Profile: Environmental
ESG Profile: Environmental Our Clean Energy Vision By 2030: • Reduce our fossil fuel generation carbon dioxide (CO2) emissions by 50% from 2005 levels • Reduce our electric utility water supply by 75% from 2005 levels • Electrify 100% of our company-owned light-duty fleet vehicles • Partner to plant
Slide 29: Path to Zero Coal Generation by 2040
Path to Zero Coal Generation by 2040 Zero coal in WI by the end of 2026; Out of operated coal in IA by the end of 2035 3500 Highlights 3000 • By 2035, just 6%* of coal generation remaining 2500 • Announced coal-facility retirements: • IA – Lansing facility to be retired 2023 2000 • WI – Edgewater Un
Slide 30: Growing our renewable rate base
Growing our renewable rate base 22% of 2022 rate base was renewable and battery – anticipate ~38% by 2026 Percent Renewable and Battery Investments Percent Revenues from Coal 38% 9% 20% ~38% 13% 20% 1% 2021 2026 2022 2026 forecast forecast 1.5 GW solar energy announced Nearly 1.6 GW coal retired or
Slide 31: ESG Profile: Social
ESG Profile: Social Our values in action Safety Workforce Clean Energy Transition • Board oversight of safety program • Employees and their families have access to • Platinum EnvisionTM recognition on 6 projects comprehensive health and wellness program – Including Wood County Solar • “Good catches”
Slide 32: Customer Value Delivered
Customer Value Delivered Renewable portfolio has generated $1.3 billion customer benefits from fuel and tax credits Reliability Improvements* Driving down customer costs Growing % of Energy ~80% of 2022 outage events were restored Supplied to Customers within two hours or less • ~$1.5 billion fuel a
Slide 33: Economic development strengthens communities
Economic development strengthens communities Nationally recognized for economic development activities for four straight years (Site Selection magazine) In 2022 Recent Successes Cumulative load announced as a result of economic development efforts since 2019 16 Iowa Army Ammunition Plant expansion 3
Slide 34: ESG Profile: Governance
ESG Profile: Governance Strong governance begins with transparency and diversity Board of Directors Executive Compensation • Lead independent director with clearly defined and • Strong linkage of compensation to achievement of financial, robust responsibilities customer focused and ESG-related goals
Slide 35: ESG disclosures
ESG disclosures Corporate Responsibility Report Political Engagement Guidelines New Climate Report Corporate Governance Guidelines Biodiversity Commitment Diversity, Equity and Inclusion Commitments Human Rights Policy Alliant Energy Foundation ESG Data and Reports Code of Conduct Sustainability Sto
Slide 36: Appendix
LEARN MORE APPENDIX Alliant Energy.
Slide 37: Constructive regulatory framework
Constructive regulatory framework We are approved for many risk-reducing riders for items such as fuel, transmission, and pension IPL WPL Revenues and expenses recovered under “Riders” Iowa retail Wisconsin retail Renewable Energy Rider (2019-2020 wind investments)(a) Electric production fuel and en
Slide 38: Reconciliation between GAAP and non-GAAP EPS
Reconciliation between GAAP and non-GAAP EPS 2014 2015 2016 2017 2018 2019 2020 2021 2022 GAAP EPS from continuing operations $1.74 $1.69 $1.65 $1.99 $2.19 $2.33 $2.47 $2.63 $2.73 • Net temperature impacts (0.04) 0.04 0.00 0.06 (0.06) (0.05) (0.01) (0.05) (0.07) Non-GAAP adjustments: • Losses from s