Alliant Energy Corporation · NASDAQ:LNT
Alliant Energy — Investor Presentation (September 2023)
38 slides from Alliant Energy's investor presentation, September 2023
Slide 1: Powering What’s Next
Powering What’s Next Investor Materials – September 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 greenhouse gas • DE&I initiatives create an • Diverse and experienced emissions by 2050 environment of belonging board that oversees all ESG • Climate report validates our • Planting over 1 million trees priorities environmental goals are • Provided $12.1 m
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 Customer reliability 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 MISO’s sea
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 and 175 MW battery storage approved in Wisconsin Awaiting approval for 99 MW battery storage in Wisconsin Reached non-unani
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 • ~25% of system currently underground (~24,000 miles remaining to underground our targeted 80% of system) 25 kv Design standard • ~5% of lines
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: $2.89 $2.73 + Earnings from capital investments + Lower utility O&M Expense – 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: Generation investments • Expansion of renewables to support customer sustainability objectives • Flexible and dispatchable resources to support custo
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 customer focused investments Recent Approval: PSCW approved request for WPL’s 175 MW of battery energy storage at Wood and Grant county solar sites (6680-CE- 182) Customer Focused Investments – Regulatory Progress: IPL – Advance r
Slide 23: Advance Ratemaking Principles Settlement
Advance Ratemaking Principles Settlement Docket RPU-2021-0003 Summary of Non-Unanimous Settlement Agreement Settling Parties Interstate Power and Light Company, Office of Consumer Advocate, Environmental Law and Policy Center and Iowa Environmental Council Projects Included 400 MW of solar (Duane Ar
Slide 24: 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 25: Key Regulatory Initiatives
Key Regulatory Initiatives 2023 regulatory initiatives focused on rate proceedings Recent Approval: WPL – 2022 Electric Fuel Reconciliation (6680-FR-2022) – Recovery of ~$117 million under collection over 27 months Rate Proceedings In Progress: WPL – Electric and Gas rate review Test Years 2024-
Slide 26: Corporate Responsibility
CORPORATE RESPONSIBILITY 26
Slide 27: 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 28: Our Clean Energy Vision
Our Clean Energy Vision By 2030: • Reduce greenhouse gas emissions*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 fleet
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 retired 2023 2000 • WI – Edgewater Unit 5 t
Slide 30: 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
Slide 31: Customer Value Delivered
Customer Value Delivered Renewable portfolio has generated $1.5 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 32: 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 33: 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 34: 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 21.5 (Lower score = less unmanaged risk) CDP Climate / Water C/B A-F Questionnaire 34
Slide 35: 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 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
Alliant Energy — Investor Presentation (September 2023) on 6ix