Alliant Energy Corporation · NASDAQ:LNT
Alliant Energy — EEI Financial Conference 2022
36 slides from Alliant Energy's conference presentation, November 2022
Slide 1: Powering What’s Next
Powering What’s Next Investor Materials – November 2022
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, rate base, financing plans, regulatory plans and new generation pl
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” 985,000 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% ~8-10% Clean energy focused investment plan – Long-Term EPS growth(a) Total Shareholder ~50% of investments in renewables and battery storage Return ~3% Past 3 Years Constructive regulatory
Slide 6: 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 7: 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 7
Slide 8: Customer Investments
CUSTOMER INVESTMENTS Alliant Energy.
Slide 9: 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 250 MW battery storage by 2025 Reducing coal and emissio
Slide 10: 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 Estimated Percentage Accredited Capacity reliability and benefits customers in all four seasons by Season for 2023-2024 ‒ Win
Slide 11: Solar and Battery Storage Portfolio Progress
Solar and Battery Storage Portfolio Progress 250 MW solar expected in-service in 2022, 1.5 GW solar & battery still under development Regulatory Approval Progress 1,089 MW solar approved in Wisconsin Awaiting approval for 175 MW battery storage in Wisconsin Evaluating response received from
Slide 12: 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 13: 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 •~25% of system currently underground (~24,000 miles remaining to underground our targeted 80% of system) 25 kv Design standard •~5% of lines cu
Slide 14: Financial Information and Regulatory Initiatives
FINANCIAL INFORMATION AND REGULATORY INITIATIVES
Slide 15: Delivering consistent earnings growth of 5-7%
Delivering consistent earnings growth of 5-7% Delivered on 12 consecutive years – On track with projected 2022 & 2023 earnings Consistently achieving 5-7% earnings and dividends growth Consistently meeting earnings guidance Adjusted EPS ~7% CAGR since 2009 2023: $2.82 - $2.96 Guidance Range Dividend
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 CAGR of 8% Other Generation Flexible, Projected Rate Base 4% (13-Month Average, $ in billions) Dispatchable Generation $16.7 11% $15.6 $14.3 Electric $13.2 Distribution $12.2 26% Renewable Generation
Slide 18: Capex Plan Updates
Capex Plan Updates Our latest capex plan adds $2.4 billion to the 4-year plan, largely in renewables Capex Plan Disclosure Walk ($ in Millions) Highlights 2022-2025 Capex Plan $6.1 • Full ownership of announced Full ownership of renewable generation and +1.4 ~1.5 GW solar and 250 MW additional renew
Slide 19: Strong investment growth path
Strong investment growth path Solid outlook of investment opportunities to replace ~2 GW of coal generation capacity retiring by 2040 Outlook Investment Opportunities: • Inflation Reduction Act enhances the economics of future investments that support transition to cleaner energy: 2027-2031 o Repowe
Slide 20: 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 $475 million of net present value savings
Slide 21: 2023 Financing Plans
2023 Financing Plans Mix of debt and common equity to fund updated investment plan and maintain strong balance sheet ($ in Millions) AEC/Parent WPL IPL Long-Term Debt: Issuances Up to $450 Up to $300 Up to $300 Maturities ($400) 3.75% - - Equity: 1540 Issuance Up to $250 Through one or more offering
Slide 22: Investments to enable customer cost savings
Investments to enable customer cost savings Our focus on cost management has resulted in a 5% or $40M O&M reduction since 2019 Technology Generation Electric Distribution Investments in technology to Investing in renewables to enable Investments to move electric grid enhance productivity and efficie
Slide 23: Regulatory Initiatives
Regulatory Initiatives Anticipated Regulatory Filings Support Balanced Generation In Progress: IPL – Advance ratemaking filing for 400 MW of Solar and 75 MW of battery storage (RPU-2021-0003) ‒ Evaluating response received from the Iowa Utilities Board WPL – 2023 fuel-related cost filing ‒ Expec
Slide 24: ESG Profile
ESG PROFILE Alliant Energy.
Slide 25: 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 22 (Lower score = less unmanaged risk) CDP Climate Change / B A-F Water Response 25
Slide 26: 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 27: Path to Zero Coal Generation
Path to Zero Coal Generation Zero coal by 2040 – 94%* of coal retired by 2035 3,500 Highlights 3,000 • Out of coal in Wisconsin by the end of 2026 Coal Capacity (MW) 2,500 • Out of wholly-owned coal in 2,000 Iowa by the end of 2025 1,500 • By 2035, just 6%* of coal generation remaining 1,000 500 - 2
Slide 28: Growing our renewable rate base
Growing our renewable rate base 20% of 2021 rate base was renewable and battery – anticipate ~38% by 2026 Percent Renewable and Battery Investments Percent Operated Coal ~38% 13% 20% ~1% 2021 2026 forecast 2021 2026 forecast 1.5 GW solar energy announced Nearly 1.6 GW coal retired or fuel- between 2
Slide 29: ESG Profile: Social
ESG Profile: Social Our values in action Safety Workforce Economic Development • Board oversight of safety program • Employees and their families have access to • 16 Alliant Energy Growth Sites to promote comprehensive health and wellness program economic development in our communities • “Good catch
Slide 30: 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 77% of 2021 outage events were restored Supplied to Customers within two hours or less • ~$1.3 billion fuel an
Slide 31: Economic development strengthens communities
Economic development strengthens communities Nationally recognized for economic development activities for four straight years (Site Selection magazine) In 2021 Recent Successes Cumulative load announced as a result of economic development efforts since 2019 16 220 176 MW Growth Sites Adding 100k sq
Slide 32: 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 33: ESG disclosures
ESG disclosures Corporate Responsibility Report Clean Energy Vision and Goals New Climate Report Political Engagement Guidelines Corporate Governance Guidelines Biodiversity Commitment Diversity, Equity and Inclusion Human Rights Policy Commitments ESG Data and Reports Code of Conduct Sustainability
Slide 34: Appendix
LEARN MORE APPENDIX Alliant Energy.
Slide 35: 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 (RPU I and RPU II)(a) Electric production fuel and energy purch
Slide 36: Reconciliation between GAAP and non-GAAP EPS
Reconciliation between GAAP and non-GAAP EPS 2015 2016 2017 2018 2019 2020 2021 2022 Forecasted GAAP EPS from continuing operations $1.69 $1.65 $1.99 $2.19 $2.33 $2.47 $2.63 $2.77 • Net temperature impacts 0.04 0.00 0.06 (0.06) (0.05) (0.01) (0.05) (0.07) Non-GAAP adjustments: • Losses from sales of