Alliant Energy Corporation · NASDAQ:LNT
Alliant Energy — Wolfe Research Conference 2024
28 slides from Alliant Energy's conference presentation, October 2024
Slide 1: Alliant Energy Corporation – Wolfe Research Conference
Alliant Energy Corporation WOLFE RESEARCH CONFERENCE October 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 Diverse customer base Over 3 GW of r
Slide 5: Consistent Earnings
Consistent Earnings Managing the business to maintain consistency $3.00 $2.00 $1.00 $0.00 Adjusted EPS ~6% CAGR, over the past 10 years 2024 earnings guidance as of August 1, 2024 5
Slide 6: Consistent, Strong Dividend Growth
Consistent, Strong Dividend Growth LNT in S&P’s High Yield Dividend Aristocrats Index $2.00 $1.00 $0.00 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Dividends ~6% CAGR, consistent 60-70% payout ratio Reflects current and expected dividends declared in 2024 6
Slide 7: Alliant Energy is Positioned for Growth
Alliant Energy is Positioned for Growth Competitive advantages Innovative Iowa regulatory construct Flexible resource planning process Progress on economic development with competitive Iowa rate review settlement sets us up to grow Clean Energy Blueprint process and robust advantages including indus
Slide 8: Building Stronger Communities
Building Stronger Communities Creating growth to fuel economies in Iowa & Wisconsin • Announced 32 industrial growth projects in Iowa and Wisconsin in 2024 • Future opportunities: ‒ Executing agreements with multiple data centers ‒ Mega site legislation in Iowa ‒ Wisconsin Biohealth Tech Hub partner
Slide 9: Iowa Utilities Commission retail rate review order advances economic development growth
Iowa Utilities Commission (IUC) retail rate review order advances economic development growth and provides customer base rate stability • Innovative settlement reflects priorities of stakeholder organizations and our commitment to advancing economic development growth while allowing shareowners and
Slide 10: 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 by 2030 clearly defined and robust • Climate repor
Slide 11: Generating 1+ Gigawatt of Solar Energy
Generating 1+ Gigawatt of Solar Energy Alliant Energy largest owner-operator of solar in Wisconsin 11
Slide 12: Iowa Solar Portfolio Progress
Iowa Solar Portfolio Progress 50 MW solar in-service, 350 MW solar under construction Regulatory approvals received • Advance ratemaking principles received for 400 MW of solar • 10.25% authorized ROE for approved costs Development progress • Sites fully acquired and under construction • Engineering
Slide 13: Diversifying our Generation Mix
Diversifying our Generation Mix Investments strengthen our portfolio, improve reliability and help meet customer needs WPL Wood and Grant Energy Storage • 175 MW approved, in-service 2025 • Expected investment: ~$350 million WPL Edgewater Energy Storage • 99 MW approved, in-service 2026 • Expected i
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 system underground – it’s our standard way of working • ~23,000 miles remaining to underground 80% of our system • Proficiency gained through experience –
Slide 15: American Transmission Company
American Transmission Company Alliant Energy’s 16% equity ownership provides additional regulated returns to investors Benefits of Ownership A source of solid future investments, earnings and cashflows Projected Capital • 2023 rate base (13-month avg.): $4.6 billion Expenditures ($ in millions) • Ca
Slide 16: Customer-Focused Investments Drive Rate Base Growth
Customer-Focused Investments Drive Rate Base Growth Dispatchable & clean energy investments drive rate base growth Capital Investment Drivers Capital Expenditure Plan Rate Base $17.9 Renewables and Battery Storage Electric Distribution $13.3 Gas Generation Projects Gas Distribution Other Generation
Slide 17: Strong Customer Focused Investment Growth Path
Strong Customer Focused Investment Growth Path Solid outlook of investment opportunities, $10-14B capex outlook 2028-2032 Resilience and Reliability Generation Transformation Customer Growth and Value • Continue industry-leading undergrounding program • Repower wind assets to lower energy costs, cap
Slide 18: Consistent Growth in Earnings and Dividends
Consistent Growth in Earnings and Dividends Projected 2024 ongoing earnings guidance range: $2.99 - $3.13 $1.92 expected annual common stock dividend target, a 6% increase (a) $3.06 $2.88 2024 Earnings Drivers + Higher earnings from capital investments – Higher depreciation expense – Higher financin
Slide 19: Inflation Reduction Act Provides Flexibility
Inflation Reduction Act Provides Flexibility This legislation provides opportunities aligned 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 for tax credits helps mitigate c
Slide 20: 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 21: Financing Plans
Financing Plans Improving credit metrics in 2024, backed by stronger cash flows and a solid balance sheet 2024 Financing Plans Financing Expectations Raised ~$1,625M in debt financing in 2024 • Maintain 40-45% parent equity structure • $300M 364-day term loan at variable rate at AE Finance • Aim to
Slide 22: Ongoing Regulatory Proceedings
Ongoing Regulatory Proceedings Regulatory initiatives focused on customer focused investments Iowa Recent Activity Estimated Docket Date Approval: Electric and Gas Rate Review Settlement Regulatory Progress in Iowa (RPU-2023-0002) • Anticipated filings for additional flexible, dispatchable resourc
Slide 23: Alliant Energy Disclosures
ALLIANT ENERGY 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 Allian
Slide 24: 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% 24
Slide 25: 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) 25
Slide 26: 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 27: 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 28: Reconciliation Between GAAP and Non-GAAP EPS
Reconciliation Between GAAP and Non-GAAP EPS 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP EPS from continuing operations $1.69 $1.65 $1.99 $2.19 $2.33 $2.47 $2.63 $2.73 $2.78 • Net temperature impacts 0.04 0.00 0.06 (0.06) (0.05) (0.01) (0.05) (0.07) 0.06 Non-GAAP adjustments: • Losses from sal