Alliant Energy Corporation · NASDAQ:LNT
Alliant Energy — EEI Finance Conference 2023
39 slides from Alliant Energy's conference presentation, November 2023
Slide 1: Powering What’s Next
Powering What’s Next Investor Materials – November 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 3
Slide 4: Leading the Clean Energy Transition
Leading the Clean Energy Transition Alliant Energy leads regulated, owned & operated renewable energy 3rd largest regulated wind owner-operator Top 5 largest regulated solar owner-operator by end of 2024 Delivering top tier value to customers At or below national average cost for electric cust
Slide 5: Serving customers and building strong communities
Serving customers and building strong communities Powering beyond for Iowa and Wisconsin 995,000 995,000 Wisconsin Strong Regulatory Electric customers “WPL” Electric customers Jurisdictions 425,000 425,000 Forward looking test years Gas customers Gas customers Large project pre-approval $12.4BB $12
Slide 6: Investment Thesis
Investment Thesis Alliant Energy provides a compelling investment proposition Among top performers for reliability when compared to peers in the U.S. utility 5-7% industry Long-Term EPS growth(a) ~8-10% ~40% retail customer demand sourced Total Shareholder with renewable energy in 2022 ~3-4% Dividen
Slide 7: Consistent earnings growth
Consistent earnings growth Well positioned to deliver 5-7% growth for the 14th consecutive year in 2023 Consistently meeting earnings guidance Consistently achieving 5-7% earnings and dividends growth Announced November 3, 2023: 2024: $2.99 - $3.13 EPS Guidance Adjusted EPS ~6% CAGR over the past 10
Slide 8: Environmental Social Governance
Environmental Social Governance • Net-zero greenhouse gas • DE&I initiatives create an • Diverse and experienced board emissions by 2050 environment of belonging oversees all ESG priorities • Climate report validates our • Planting over 1 million trees • Compensation aligned with environmental goals
Slide 9: Customer Investments
CUSTOMER INVESTMENTS 9
Slide 10: Undergrounding lines
Undergrounding lines Alliant Energy’s customer-focused investments support sustainability, reliability and resiliency while keeping customer value top of mind 10
Slide 11: Investments support customer focused purpose
Investments support customer focused purpose Achieving a resilient, affordable and clean energy future for our customers and communities Alliant Energy is a leader in the clean energy transition and maintains a diverse generation mix to serve our customers and communities Adding ~1.5 GW of owned &
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 under development Regulatory Approval Progress 1,089 MW solar approved in Wisconsin 250 MW of solar in-service in 2022 Anticipate 589 MW in-service in 2023 Anticipate 250 MW in-service in 2
Slide 13: Enhancing resiliency of our distribution grid
Enhancing resiliency of our distribution grid 26% distribution grid underground – Among top performers for reliability Undergrounding supports reliability for generations ~26% of system currently underground – it’s our standard way of working ~24,000 miles remaining to underground 80% of our system
Slide 14: American Transmission Company
American Transmission Company Alliant’s 16% equity ownership provides additional regulated returns to investors Benefits of Ownership Future Investment Opportunities A source of solid future investments, MISO Long Range Transmission Plan earnings and cashflows Wisconsin Tranche 1 Projects ‒ 2023 Rat
Slide 15: Customer-focused investments drive rate base growth
Customer-focused investments drive rate base growth Dispatchable and clean energy investments drive rate base growth Projected Rate Base (13-Month Average, $ in billions) $16.5 $17.9 $15.9 Renewables and $14.5 Battery Storage 37% $13.2 Gas Projects 17% Other (including American Transmission Electric
Slide 16: Strong investment growth path
Strong investment growth path Solid outlook of investment opportunities to replace ~2 GW of retiring coal generation Outlook Investment Opportunities: Generation investments • Expansion of renewables to support customer sustainability objectives • Flexible and dispatchable resources to support custo
Slide 17: Financial Information and Regulatory Initiatives
FINANCIAL INFORMATION AND REGULATORY INITIATIVES 17
Slide 18: Alliant Energy’s consistency in results provides value to shareowners
Alliant Energy’s consistency in results provides value to shareowners 18 18
Slide 19: Consistent Growth in Projected 2024 Earnings and Dividends
Consistent Growth in Projected 2024 Earnings and Dividends 2024 midpoint of $3.06 EPS represents 6% growth from 2023 adjusted guidance 2024 common stock dividend target represents a 6% growth from 2023 dividends 2024 Earnings Drivers $3.06 • Higher earnings from capital investments $2.89 $2.73 • Hig
Slide 20: Inflation Reduction Act provides flexibility
Inflation Reduction Act provides flexibility This legislation provides opportunities aligned with our strategy Forecasted generated Lowers cost for customers tax credits (in millions) Long-term extension of tax credits and expansion of customer solutions eligible for tax credits helps mitigate cus
Slide 21: Financing Plans
Financing Plans Prudently managing the cost of capital Recent Financing Transactions ($ in millions): Debt Financing November 2023 – AEF Senior Notes $300 @ 5.95% September 2023 – IPL Senior Debentures $300 @ 5.7% March 2023 – WPL Green Bond $300 @ 4.95% February 2023 – AEC Convertible Note
Slide 22: 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 Investing in renewables and battery Investing to move electric grid and efficiency through automatio
Slide 23: Key Regulatory Initiatives
Key Regulatory Initiatives Customer focused investments and regulatory proceedings Recent Approvals WPL received PSCW approval on requests for: 175 MW of battery energy storage at Wood and Grant county solar sites (6680-CE-182) 99 MW of battery energy storage at Edgewater Generating Station si
Slide 24: Iowa Rate Review Supports Customer Value
Iowa Rate Review Supports Customer Value Investing in a diverse energy mix and modernizing the energy grid to deliver a more reliable, sustainable, resilient and secure energy future Cost-effective and diverse energy mix Improving reliability, avoiding long-term costs and contributing to a healthi
Slide 25: Iowa Rate Review – RPU-2023-0002
Iowa Rate Review – RPU-2023-0002 Summary of Request for Forward Test Year Step 1 Step 2 (October 1, 2024 to September 30, 2025) Increase in electric revenue requirements $160M $124M Increase in gas revenue requirements $14M -- Proposed ROE 10.00% 10.00% (for gas and non-advance ratemaking assets) Bl
Slide 26: Wisconsin Rate Review Update
Wisconsin Rate Review Update Docket 6680-UR-124 • PSCW verbal decision received on November 9th for WPL’s forward looking test years 2024-2025, including the following parameters: Return on equity of 9.8% (currently 10.0%) Regulatory equity layer of ~54% (no change) Earning sharing mechanism a
Slide 27: Corporate Responsibility
CORPORATE RESPONSIBILITY 27
Slide 28: 2023 Corporate Responsibility Report
2023 Corporate Responsibility Report Our values in action • Partnerships with UW-Madison • Educating the public on downed and Iowa State University for power line and work zones to Agrivoltaics research prevent harm • Investing and advancing • Revised injury case management technologies to enhance p
Slide 29: Customer Value Delivered
Customer Value Delivered Renewable portfolio has generated $1.7 billion customer benefits from fuel and tax credits Growing % of Energy Supplied to Customers from Renewable Energy* ~$1.7 billion fuel and tax credit savings delivered to customers with our wind and solar generation portfolio, through
Slide 30: Customer solutions led by purpose driven strategy
Customer solutions led by purpose driven strategy Economic development and customer renewable solutions help build stronger communities Customized Energy Economic Development 16 development ready Solutions efforts have attracted Growth Sites - Combined Heat & Power - Solar arrays ~280 MW reach 22% o
Slide 31: Our Clean Energy Vision
Our Clean Energy Vision By 2030: • Reduce greenhouse gas emissions* from our utility operations 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 By 2040: • Eliminate all coal from our generation
Slide 32: Growing our renewable rate base
Growing our renewable rate base 22% of 2022 rate base was renewable and battery, anticipate ~36% by 2026 Percent Renewable and Battery Investments Percent Revenues from Coal 36% 9% 22% ~38% 13% 20% 1% 2022 2026 2022 2026 forecast forecast 1.5 GW solar energy announced Nearly 1.6 GW coal retired or f
Slide 33: 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 2034 3500 Highlights 3000 • By 2035, just 6%* of coal generation remaining 2500 • Announced coal-facility retirements: • Lansing (IA) facility is retired (2023) 2000 • Edgewater (WI) Uni
Slide 34: Governance and Compensation
Governance and Compensation 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 g
Slide 35: ESG Ratings & Recognition
ESG Ratings & Recognition Top quartile ratings from MSCI and Sustainalytics among utilities LNT Rating Entity Range Score AA MSCI AAA – CCC (Leader) 0 – 100 Sustainalytics 21.4 (Lower score = less unmanaged risk) CDP Climate / Water C/B A-F Questionnaire 35
Slide 36: ESG disclosures
ESG disclosures Corporate Responsibility Report Political Engagement Guidelines 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 Stories
Slide 37: Appendix
LEARN MORE APPENDIX 37
Slide 38: 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 39: Reconciliation between GAAP and non-GAAP EPS
Reconciliation between GAAP and non-GAAP EPS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Est. GAAP EPS from continuing operations $1.74 $1.69 $1.65 $1.99 $2.19 $2.33 $2.47 $2.63 $2.73 $2.84 • Net temperature impacts (0.04) 0.04 0.00 0.06 (0.06) (0.05) (0.01) (0.05) (0.07) 0.02 Non-GAAP adjustm