Alliant Energy Corporation · NASDAQ:LNT
Alliant Energy — American Gas Association (May 2024)
29 slides from Alliant Energy's conference presentation, May 2024
Slide 1: Alliant Energy Corporation – American Gas Association
Alliant Energy Corporation AMERICAN GAS ASSOCIATION May 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 environments events in the states we achieving 5-7% earnings growth operate Strong Balance Sheet Over 3 GW of re
Slide 5: Consistent Earnings and Dividend Growth
CONSISTENT EARNINGS AND DIVIDEND GROWTH $3.00 $2.00 $1.00 $0.00 Adjusted EPS Dividends Adjusted EPS ~6% CAGR, over the past 10 years Dividends ~6% CAGR, consistent 60-70% payout ratio 2024 earnings guidance as of May 2, 2024 5
Slide 6: Leader in Corporate Responsibility
LEADER IN CORPORATE RESPONSIBILITY Environmental Social Governance • Net-zero greenhouse gas emissions by 2050 • Halfway toward goal of planting 1 million trees • Lead independent director with • Climate report validates our environmental – one tree for each electric customer clearly defined and rob
Slide 7: Building Stronger Communities in Business-Friendly States
BUILDING STRONGER COMMUNITIES IN BUSINESS-FRIENDLY STATES Why Iowa & Wisconsin are Recent economic development announcements include diverse attractive to businesses: customers, load growth • Top tier clean energy & reliability • Economically strong • Skilled workforce • Enabling incentive rate s
Slide 8: New Legislation in Iowa, Wisconsin
NEW LEGISLATION IN IOWA, WISCONSIN Positions states for accelerated economic development In Iowa: In Wisconsin: Major Economic Growth New technologies (energy Sales and use tax Electric vehicle bill gets Attraction Program provides storage & nuclear) now exemption for data more fast chargers along i
Slide 9: Customer Focused Investments
CUSTOMER FOCUSED INVESTMENTS Support Reliability, Resiliency, Security and Sustainability while keeping Customer Affordability top of mind 9
Slide 10: Generating 1 Gigawatt of Solar Energy
GENERATING 1 GIGAWATT OF SOLAR ENERGY Alliant Energy largest owner-operator of solar in Wisconsin 10
Slide 11: Iowa Solar Portfolio Progress
IOWA SOLAR PORTFOLIO PROGRESS 50 MW solar in-service, 350 MW solar under development Regulatory approvals received • Advance ratemaking principles received for 400 MW of solar • At least 10.25% authorized ROE for approved costs Development progress • Sites fully acquired and under construction • Eng
Slide 12: Diversifying Our Generation Mix
DIVERSIFYING OUR GENERATION MIX Investments strengthen our portfolio, improve reliability and help meet customer needs Wood and Grant Energy Storage • 175 MW approved, in-service 2024 and 2025 • Expected investment: ~$350 million Edgewater Energy Storage • 99 MW approved, in-service 2025 • Expected
Slide 13: 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 14: Natural Gas Distribution Growth
NATURAL GAS DISTRIBUTION GROWTH Customer focused investments 3.1% Retail gas 13% Gas revenues customer growth in compared to total last 5 years revenues in 2023 $85 million Investments per year Investments for: 5 projects injecting renewable • Customer growth/new meters natural gas (RNG) into our sy
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 earnings guidance range: $2.99 - $3.13 $1.92 expected annual common stock dividend target, a 6% increase $3.06 $2.88 2024 Earnings Drivers + Higher earnings from capital investments – Higher depreciation expense – Higher financing costs 2023
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 Technology Generation Electric Distribution Investing to enhance productivity and Investing in renewables and battery Investing to move electric grid efficiency through automatio
Slide 21: Financing Plans & Credit Ratings
FINANCING PLANS & CREDIT RATINGS No material new common equity planned 2024 Financing Plans Credit Ratings Raised ~$600M in Long-Term Debt in Q1 2024 • $300M term loan at variable rate at AE Finance S&P Global Moody’s • $300M green bond at 5.375% at WPL Alliant Energy Corporate/Issuer A- Baa2 Remain
Slide 22: Iowa Rate Review – Procedural Schedule
IOWA RATE REVIEW – PROCEDURAL SCHEDULE Investing in a diverse energy mix and modernizing the energy grid to deliver a more reliable, sustainable, resilient and secure energy future 5.14.2024 - IPL Rebuttal Testimony 5.28.2024 - Surrebuttal Testimony 6.18.2024 - Joint Statement of Issues 6.18.2024 -
Slide 23: Ongoing Regulatory Proceedings
ONGOING REGULATORY PROCEEDINGS 2024 regulatory initiatives focused on customer focused investments and IA rate review Wisconsin Recent Activity Regulatory Progress in WI Approval: Construction authority for Solar costs deferral 2023 Electric Fuel Riverside Additional Flexible, capacity & efficienc
Slide 24: Greenhouse Gas Emission Reduction Goals
Our clean energy vision GREENHOUSE GAS EMISSION By 2030: REDUCTION GOALS • Reduce greenhouse gas emissions* from our utility operations by 50% from 2005 levels • Reduce our electric utility water supply by 75% from 2005 levels Achieved and Anticipated • Electrify 100% of our company-owned light-duty
Slide 25: ESG Ratings & Recognition
ESG RATINGS & RECOGNITION Top quartile ratings from MSCI and Sustainalytics among utilities Rating Entity LNT Score Range AA MSCI AAA – CCC (Leader) 0 – 100 Sustainalytics 17.7 (Lower score = less unmanaged risk) 25
Slide 26: 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 27: 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% 27
Slide 28: Constructive Regulatory Framework
CONSTRUCTIVE REGULATORY FRAMEWORK We are approved for many risk-reducing riders for items such as fuel and transmission IPL WPL Revenues and expenses recovered under “Riders” Iowa retail Wisconsin retail Renewable Energy Rider (2019-2020 wind investments)(a) Electric production fuel and energy purch
Slide 29: Reconciliation Between GAAP and Non-GAAP EPS
RECONCILIATION BETWEEN GAAP AND NON-GAAP EPS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP EPS from continuing operations $1.74 $1.69 $1.65 $1.99 $2.19 $2.33 $2.47 $2.63 $2.73 $2.78 • Net temperature impacts (0.04) 0.04 0.00 0.06 (0.06) (0.05) (0.01) (0.05) (0.07) 0.06 Non-GAAP adjustments: