Full Year 2023 Alliant Energy Corp Earnings Call
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Operator: Thank you for holding, and welcome to Alliant Energy's Year-End 2020. Until next time, all lines are in listen only mode, as the conference is being recorded.
Speaker Change: Thank you for holding and welcome to Alliant Energy's year end 2023 earnings conference call. At this time all lines are in a listen only mode. Today's conference is being recorded.
Susan Gille: I would now like to turn the call over to... Susan Gill, Investor Relations Manager, Alliant Energy. Good morning. I would like to thank all of you on the call and the webcast for joining us today. We appreciate your participation. With me here today are John Larsen, Executive Chairman; Lisa Barton, President and CEO; and Robert Durian, Executive Vice President and CFO. Following prepared remarks by John, Lisa, and Robert, we will have time to take questions from the investment community. We issued a news release last night announcing Alliant Energy's fourth quarter and near-end financial results. This release, as well as an earnings presentation, will be referenced during today's call and are available on the investor page of our website at AlliantEnergy.com. Before we begin, I need to remind you that the remarks we make on this call and our answers to your questions include forward-looking statements.
Speaker Change: I would now like to turn the call over to your host Susan Gil Investor Relations manager at Alliant Energy. Please go ahead.
Susan Gille: Good morning.
Susan Gille: I'd like to thank all of you on the call and webcast for joining US today. We appreciate your participation.
Susan Gille: With me here today are John Larsen Executive Chairman, Lisa Barton, President and CEO, and Robert Durian Executive Vice President and CFO following prepared remarks by John Lisa and Robert We will have time to take questions from the investment community.
Susan Gille: We issued a news release last night announcing Alliant Energy's fourth quarter and year end financial results.
Susan Gille: This release as well as an earnings presentation will be referenced during today's call and are available on the investor page of our website at Alliant energy Dot com.
Susan Gille: Before we begin I need to remind you that the remarks, we make on this call and our answers to your questions include forward looking statements. These forward looking statements are subject to risks that could cause actual results to be materially different those risks include among others matters discussed in Alliant energy.
Susan Gille: These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters discussed in Alliant Energy's news release issued last night and in our filings with the Securities and Exchange Commission. We disclaim any obligation to update these forward-looking statements. In addition, this presentation contains references to non-GAAP financial measures. References to adjusted earnings exclude non-GAAP adjustments, as well as net temperature impact.
Susan Gille: These news release issued last night and in our filings with the Securities and Exchange Commission, we disclaim any obligation to update. These forward looking statements. In addition, this presentation contains references to non-GAAP financial measures references to adjusted earnings exclude non-GAAP.
Susan Gille: <unk> as well as net temperature impacts the reconciliation between non-GAAP and GAAP measures are provided in the earnings release, which is available on our website.
Susan Gille: The reconciliation between non-GAAP and GAAP measures is provided in the earnings release, which is available on our website. At this point, I'll turn the call over to John. Thank you, Susan. Hello, everyone, and thank you for joining us. 2023 was another successful year. Our adjusted earnings of $2.88, which excludes temperature impacts and non-gap adjustments, continued to deliver on our 5-7% long-term growth expectations. We take exceptional pride in delivering on our purpose, to serve customers and build stronger communities, and consistently achieving our earnings growth objective. As we look back at 2023, I'm proud we can say, once again, we achieved EPS growth of at least 5%, our 14th straight year of achieving that objective. We increased our dividend, with 2023 marking the 20th straight year of dividend increases. Additionally, we successfully executed on one of the largest capital expenditure programs in our history.
Susan Gille: At this point I'll turn the call over to John.
John O. Larsen: Thank you Susan Hello, everyone and thank you for joining us.
John O. Larsen: Twenty-three was another successful year, our adjusted earnings of $2.88, which excludes temperature impacts and non-GAAP adjustments continued to deliver on our 5% to 7% long term growth expectations.
John O. Larsen: We take exceptional pride in delivering on our purpose to serve customers and build stronger communities and consistently achieving our earnings growth objectives.
John O. Larsen: As we look back at 2023 I'm proud we can say once again, we achieved EPS growth of at least 5% our 14th straight year of delivering on that objective.
John O. Larsen: We increased our dividend with 2023, marking the 20th straight year of dividend increases.
John O. Larsen: We successfully executed on one of the largest capital expenditure programs in our history and as at the end of 2023, nearly 30% of our electric distribution system is underground.
John O. Larsen: And as of the end of 2023, nearly 30% of our electric distribution system will be underground, improving reliability and reducing operating expenses. I will now highlight a few of our many 2023 accomplishments and then turn it over to Lisa and Robert to provide details on our 2023 regulatory, operating, and financial results. Throughout 2023, our team demonstrated their dedication and resilience as we faced a dynamic economic environment and weather-related challenges, while also successfully advancing our customer-focused investment. We made notable progress on our generation investment. An example is the progress we made in Wisconsin on our utility-scale solar project.
John O. Larsen: Proving reliability and reducing operating expenses.
John O. Larsen: I will now highlight a few of our many 2023 accomplishments and then turn it over to Lisa and Robert to provide details on our 2023 regulatory operating and financial results.
John O. Larsen: Throughout 2023, our team demonstrated their dedication and resilience as we faced a dynamic economic environment and weather related challenges, while also successfully advancing our customer focused investments.
John O. Larsen: We made notable progress on our generation investments in.
John O. Larsen: An example is the progress we made in Wisconsin on our utility scale solar projects as of today over 90% of our solar investments are complete and in the operation and we expect to be 100% complete later this spring.
John O. Larsen: As of today, over 90% of our solar investments are complete and in operation, and we expect to be 100% complete later this spring. These strategic investments enhance customer value by providing access to zero-cost fuel resources and diversifying our energy mix, while also supporting our local economies through new jobs and tax revenue. In addition, our wind and solar investments generate renewable tax credits that provide even more benefits to our customers. In 2023, we executed agreements to transfer those credits, improving our cash flow and providing us greater flexibility in our financing plan. Our technology investments and undergrounding efforts place Alliant Energy among the top performers for electric reliability when compared to peer U.S. utilities.
These strategic investments enhance customer value by providing access to zero cost fuel resources and diversify our energy mix also supports our local economies through new jobs and tax revenues in.
John O. Larsen: In addition, our wind and solar investments generate renewable tax credits that provide even more benefits to our customers in.
John O. Larsen: In 2023, we executed agreements to transfer those credits improving our cash flow and providing us greater flexibility in our financing plans.
John O. Larsen: Our technology investments and underground efforts place Alliant energy among the top performers for electric reliability, when compared to peer U S utilities.
John O. Larsen: Through these investments, we are better positioned to provide our customers with the high level of reliability they expect. Reflecting on the past year and with my tenure as CEO concluding as of year end 2023, I wish to express my profound pride in all our employees who consistently embody our purpose and values. Each and every day, our employees bring our purpose-driven strategy to life, serving our customers and helping to build stronger communities. I am proud to acknowledge the outstanding contributions of our engineers, whose work to innovate and advance our industry will be celebrated next week during National Engineers Week. I'd like to thank our customer service team for consistently going above and beyond as they assist our customers, and a sincere thank you to our dedicated crews and support staff for their unwavering commitment to excellence and for being the driving force behind our operating success. In closing, I'd like to extend one more congratulations to Lisa.
John O. Larsen: Through these investments we are better positioned to provide our customers with the high level of reliability. They expect.
John O. Larsen: Reflecting on the past year and with my tenure as CEO, concluding as of year end 2023.
John O. Larsen: Wish to express my profound pride in all of our employees, who consistently embody our purpose and values each and every day our employees bring our purpose driven strategy to life, serving our customers and helping to build stronger communities.
I am proud to acknowledge the outstanding contributions of our engineers, whose work to innovate and advance our industry will be celebrated next week during national Engineers week.
John O. Larsen: I'd like to thank our customer service team for consistently going above and beyond as they assist our customers in a sincere. Thank you to our dedicated crews and support staff for their unwavering commitment to excellence and for being the driving force behind our operating success.
Speaker Change: In closing I'd like to extend one more congratulations to Lisa.
John O. Larsen: Her thoughtful leadership, care for the customer, and industry knowledge will guide Alliant Energy into the next phase of its journey. I look forward to collaborating with her and the team for continued success in 2024. Now, I'll hand the call over to Lisa. Thank you, John.
Speaker Change: Her thoughtful leadership care for the customer and industry knowledge will guide align energy into the next phase of its journey.
Speaker Change: Look forward to collaborating with her and the team for continued success in 2024.
Speaker Change: Now I'll hand, the call over to Lisa.
Lisa M. Barton: Thank you John I am honored for the opportunity to build on your legacy of growth and exceptional service to the communities. We are so privileged to serve.
Lisa M. Barton: I am honored to build on your legacy of growth and exceptional service to the communities we are so privileged to serve. As I reflect on 2023, I am appreciative of our employees for their ongoing determination and commitment to serving our customers and strengthening our community. I'll begin by building on John's comments about our notable progress on our generation transformation in Wisconsin, where we recently brought eight solar projects online, a huge milestone. We are currently leveraging the sun in Wisconsin to fuel nearly 900 megawatts for customers. This will increase to nearly 1.1 gigawatts this spring when our final Wisconsin solar project becomes operational.
Lisa M. Barton: As I reflect on 2023, I am appreciative of our employees for their ongoing determination and commitment to serving our customers and strengthening our communities.
Speaker Change: I'll begin by building on John's comments about our notable progress on our generation transformation in Wisconsin, where we recently brought eight solar projects online a huge milestone.
We are currently leveraging the sun in Wisconsin to fuel nearly 900 megawatts for customers. This will increase to nearly 1.1 Gigawatts. This spring when our final, Wisconsin Solar project becomes operational.
Lisa M. Barton: Coupled with our plans to bring 400 megawatts of solar online in Iowa this year, by year end, nearly 1,500 additional megawatts of the energy our customers use will be from clean, zero-fuel cost energy resources. In addition to our utility-scale solar investments, we continue to partner with local businesses and communities interested in hosting solar projects. Our customer-hosted projects help local businesses achieve their clean energy goals, while community solar projects provide all customers with affordable options to participate in the solar revolution. In Cedar Rapids, our community solar garden is fully operational and will soon be generating bill credits for all solar block purchases. Our Janesville Solar Garden in Wisconsin now has an anchor tenant, J.P. Cullen, and construction is set to begin this spring.
Speaker Change: Coupled with our plans to bring 400 megawatts of solar online in Iowa. This year by year and nearly 1500 of additional megawatts of the energy our customers use will be from clean zero fuel cost energy resource.
Speaker Change: In addition to our utility scale solar investments, we continue to partner with local businesses and communities interested in hosting solar projects or customer hosted projects help local businesses achieve their clean energy goals, while community solar projects provide all cut.
Speaker Change: <unk> with affordable options to participate in the solar resolution.
Speaker Change: In Cedar Rapids, our community Solar Garden is fully operational and will soon be generating bill credits for all solar block purchasers.
Speaker Change: Our Janesville solar garden in Wisconsin, now has an anchor tenant J P colon and construction is set to begin this spring.
Lisa M. Barton: We have additional customer-hosted projects underway and expect they'll be operational before September. We made great progress in our clean energy transformation in 2023. We retired the last coal unit at Lansing, which had dutifully served our customers and communities for nearly 50 years.
Speaker Change: We have additional customer hosted projects underway and expect they will be operational before summer.
Speaker Change: We made great progress in our clean energy transformation in 'twenty two 'twenty three we retired the last coal units at Lansing, which had dutifully served our customers and communities for nearly 50 years.
Lisa M. Barton: The retirement reduces O&M costs and advances us towards a cleaner, more efficient, and cost-effective energy mix. At the same time, we continue to see the frequency and duration of outages in our service footprint steadily decline, a 20-year trend that we expect will continue as we continue focusing on improving reliability and system resilience to meet the expectations of the customers we serve. We began the process to repower the Franklin County Wind Project in Iowa to increase the efficiency of our fleet. This investment will provide our customers with many more years of production taxes. On the environmental front, we completed closure work at 29 surface impoundments across 10 sites, eliminating all Alliant Energy ash ponds in Iowa and Wisconsin.
Speaker Change: The retirement reduces O&M costs and advances us towards a cleaner more efficient and cost effective energy mix.
Speaker Change: At the same time, we continue to see the frequency and duration of outages in our service footprint steadily decline a 20 year trends that we expect will continue as we continue focusing on improving reliability and system resilience to meet the expectations of the customers we serve.
Speaker Change: We began the process to Repower, the Franklin County Wind project in Iowa to increase the efficiency of our fleet. This investment will provide our customers with many more years of production tax credits.
Speaker Change: On the environmental front, we completed closure work at 29 surface impoundments across 10 sites, eliminating all alliant energy ash ponds in Iowa and Wisconsin.
Lisa M. Barton: With these 2023 accomplishments, coupled with our planned investments in dispatchable gas generation, battery storage, and wind repowering, we are well on our way to enabling a successful and responsible clean energy transition while assuring we are addressing our system resiliency needs. Looking forward, we continue to plan for the future by evolving and refining our clean energy blueprint, taking into account dynamic economic developments, evolving energy technologies, and the emerging needs of the communities we serve. It is a necessary step as we look to balance our energy mix, create greater grid reliability, ensure customer affordability, and address MISO's resource adequacy needs. 2023 was a record year for us for economic development activities with more than 130 megawatts of announced new load across our country, primarily in the manufacturing sector. With a capital investment of approximately $3.8 billion, these projects are expected to create more than 4,000 new local jobs.
Speaker Change: But these 20 twenty-three accomplishments coupled with our planned investments and dispatch of coal gas generation battery storage and wind Repowering, we are well on our way of enabling a successful and responsible clean energy transition wallet sharing we are addressing our system resiliency needs.
Speaker Change: Looking forward, we continue to plan for the future by evolving and refining our clean energy blueprint taking into account dynamic economic developments evolving energy technologies in the emerging needs of the communities. We serve it is a necessary step as we look to balance our energy mix.
Speaker Change: Create greater grid reliability ensure customer affordability and address though Mike and address my says resource adequacy needs.
Speaker Change: 2023 was a record year for us for economic development activities with more than 130 megawatts of announced new load across our footprint primarily in the manufacturing sector.
Speaker Change: With a capital investment of approximately $3.8 billion. These projects are expected to create more than 4000, new local jobs.
Lisa M. Barton: Going forward, we will continue to pursue opportunities for new customer growth at our industrial parks as we strive to build and support stronger communities. Our strong customer and community focus were contributing factors in recently being named a top utility by Business Facilities Magazine for the fourth year in a row. Alliant Energy received a number of recognitions this past year. A few of them, including ones that focus on our employees' dedication to creating a welcoming and inclusive workplace, are highlighted on slide five. Earlier this week, we announced the retirement of Terry Koba, president of IPL.
Speaker Change: Going forward, we will continue to pursue opportunities for new customer growth at our industrial Park says, we strive to build an supports stronger communities.
Speaker Change: Our strong customer and community focus were contributing factors in recently being named a top utility by business facilities magazine.
Speaker Change: For the fourth year in a row Alliant energy received a number of recognitions. This past year, a few of them, including ones that focus on our employees dedication to creating a welcoming and inclusive workplace are highlighted on slide five.
Speaker Change: Earlier this week, we announced the retirement of Terry Copa President of IPL.
Lisa M. Barton: In early March, Terry will be celebrating his 43rd year with the company and has been a thoughtful, respected, and customer-focused leader of our Iowa operations. We are grateful for his service and dedication to Alliant Energy, our customers, communities, and employees. As we celebrate Terry's well-deserved retirement, we are advancing our succession plan by appointing Mae Fairlinger to the position of President of IPL, effective May 4.
Speaker Change: In early March Terry will be celebrating his 43rd year with the company and has been a thoughtful respected and customer focused leader of our Iowa operations. We are grateful for his service and dedication to Alliant energy our customers communities and employees.
Speaker Change: As we celebrate carries well deserved retirement, we are advancing our succession plan by appointing me fairly near to the position of President of IPL effective may 1st.
Robert J. Durian: May has spent her career at Alliant Energy serving in several leadership roles. We are confident in her ability to lead our dedicated team of professionals in Iowa. As we move forward in 2024, I have every confidence we will continue to take the required actions to meet our customer needs and deliver on investor expectations. We are well positioned to quickly adapt to a dynamic environment as we execute our strategy for generating clean, reliable, and affordable energy. At this time, I'll turn the call over to Robert. Thanks, Lisa. Good morning, everyone.
Speaker Change: May has spent her career at Alliant energy serving in several leadership roles. We are confident in her ability to lead our dedicated team of professionals in Iowa.
Speaker Change: As we move forward in 'twenty 'twenty four I have every confidence we will continue to take the required actions to meet our customer needs and deliver on investor expectations. We are well positioned to quickly adapt to a dynamic environment as we execute our strategy for generating clean real.
Speaker Change: Liable and affordable energy.
Speaker Change: At this time I'll turn the call over to Robert.
Robert J. Durian: Thanks, Lisa good morning, everyone yesterday, we announced.
Robert J. Durian: Yesterday, we announced 2023 adjusted earnings of $2.88 per share compared to adjusted earnings of $2.73 per share in 2022. This represents a 5.5% increase in earnings consistent with our long-term earnings growth target of 5 to 7%. Adjusted earnings exclude the impacts of both non-reoccurring adjustments and temperatures.
Robert J. Durian: Announced 2023 of adjusted earnings of $2.88 per share compared to adjusted earnings of $2 73 per share in 2022.
Robert J. Durian: This represents a five 5% increase in earnings consistent with our long terms earnings growth target of five to seven person.
Robert J. Durian: Adjusted earnings exclude the impacts of both nonrecurring adjustments and temperatures.
Robert J. Durian: As a reminder, we do not manage our business to offset the temporary positive or negative impacts of temperatures on sales. Instead, we manage the business to deliver long-term consistency and enable operational efficiency. Adjusted earnings year-over-year increase was primarily due to higher revenue requirements and AFEDC from capital investment, including progress by our teams on our solar projects in Wisconsin and Iowa and lower operating and maintenance expenses at IPL and WPL resulting from our employees' focus on cost. These positive drivers were partially offset by higher financing and depreciation expenses associated with our customer-focused capital expenditure program. The 2023 results we are sharing today are a result of our consistent efforts to manage through and mitigate ongoing inflationary pressures. We're extremely proud that our 2023 O&M expenses were approximately $30 million less than 2022, allowing us to help offset the negative impacts on earnings from rising financing and depreciation. Year-over-year sales changes in 2023 were largely impacted by temperature. The net temperature impact decreased Alliant Energy's earnings by approximately $0.06 per share in 2023. In comparison, net temperatures increased Alliant Energy's earnings in 2022 by $0.07 per share. Tempster normalized electric sales to our retail customers were relatively flat in 2023 when compared to 2022.
Robert J. Durian: As a reminder, we do not manage our business to offset the temporary positive or negative impacts of temperatures on sales.
Robert J. Durian: We manage the business to deliver long term consistency and enable operational efficiency.
Robert J. Durian: Adjusted earnings year over year increase was primarily due to higher revenue requirements and if you do see from capital investments, including the progress by our teams on our solar projects in Wisconsin, and Iowa, and lower operating and maintenance expenses that I P. O W pill, resulting from our employees focus on cost controls.
Robert J. Durian: These positive drivers were partially offset by higher financing and depreciation expenses associated with our customer focused capital expenditure programs.
Robert J. Durian: The 2023 results. We are sharing today are result of our consistent efforts to manage through and mitigate ongoing inflationary pressures.
Robert J. Durian: We're extremely proud that our 2023 O&M expenses were approximately $30 million less in 2022.
Robert J. Durian: Allowing us to help offset the negative impacts on earnings from rising financing and depreciation expenses.
Robert J. Durian: Year over year sales changes in 2023 were largely impacted by temperature changes that.
Robert J. Durian: Temperature impacts decreased Alliant Energy's earnings by approximately six cents per share in 2023.
Robert J. Durian: In comparison net temperatures increased Alliant energy earnings in 2022 by seven cents per share.
Robert J. Durian: Yes.
Robert J. Durian: Temperature normalized electric sales to our retail customers were relatively flat in 2023, when compared to 2022.
Robert J. Durian: We experienced growth in the number of residential customers, as well as higher sales from plant expansions in Wisconsin. However, these positive drivers were offset by lower electric sales to industrial customers in Iowa due to plant closures and maintenance outages. Turning to cash flows, 2023 cash flows from operations increased by almost $400 million when compared to 2022. This substantial increase was primarily due to the timing of WPL's fuel-related cost recoveries and the monetization of approximately $100 million of tax credits in December. This increase resulted in a material increase in our key cash flow metrics in 2020. I'm also pleased to report that our investing cash flows in 2023 aligned with our projected capital expenditures set at the beginning of the year due to the successful execution of our key construction projects. Turning to 2024, we are positioned for another year of consistent 5 to 7% growth in adjusted earnings per share. We are affirming our 2024 earnings guidance range of $2.99 to $3.13 per share.
Robert J. Durian: We experienced growth in the number of residential customers as well as higher sales from plant expansions in Wisconsin.
Robert J. Durian: These positive drivers were offset by lower electric sales to industrial customers in Iowa, due to plant closures and maintenance outages.
Robert J. Durian: Turning to cash flows 'twenty to 'twenty three cash flows from operations increased by almost $400 million when compared to 2022.
Robert J. Durian: This substantial increase was primarily due to the timing of WPS fuel related cost recoveries.
Robert J. Durian: And monetization of approximately $100 million of tax credits in December.
Robert J. Durian: This increase resulted in a material increase in our key cash flow metrics in 2023.
Robert J. Durian: I'm also pleased to report that our investing cash flows in 2023 aligned with our projected capital expenditures set at the beginning of the year due to the successful execution of our key construction projects.
Robert J. Durian: Turning to 2024, we are positioned for another year of consistent 5% to 7% growth in adjusted earnings per share.
Robert J. Durian: We are affirming our 2024 earnings guidance range of $2.99 to $3 13 per share.
Robert J. Durian: Our efforts to support customer value by making smart investments in our future and controlling operating costs, while receiving constructive regulatory outcomes. We support our ability to consistently deliver solid financial... Our financing plans for 2024 include $1.7 billion of new debt, largely to finance our investments in renewable and battery projects and support refinancing $800 million in debt maturities. We also expect to raise approximately $25 million in new common equity under our DRIP plan and receive approximately $120 million from the sale of partial interests in West Rivers. In addition, we expect to generate and transfer more than $200 million of renewable tax credits in 2024 to reduce financing.
Robert J. Durian: Our efforts to support customer value by making smart investments in our future and controlling operating costs, while receiving constructive regulatory outcomes support our ability to consistently deliver solid financial results.
Robert J. Durian: Our financing plans for 2020 for include $1 $7 billion of new debt largely to finance, our investments in renewable and battery projects and support refinancing $800 million in debt maturities this year.
We also expect to raise approximately $25 million of new common equity under our drip plan and receive approximately $120 million from the sales of partial interest in west Riverside.
Robert J. Durian: In addition, we expect to generate and transfer more than $200 million of renewable tax credits in 2020 four to reduce financing needs.
Robert J. Durian: With the implementation of our new solar projects and the repowering of our older vintage wind facilities, we anticipate the increased production tax credits and reduced fuel costs will help offset the impact of additional renewable rates, rendering these new investments cost-effective solutions for our customers. This will result in long-term benefits for our customers and long-term value for our shareholders. Our customers will experience the benefits of a diverse generation portfolio in 2023, as the average retail electric rates declined for our Iowa customers due to lower fuel costs. And in Wisconsin, we ended the year in an overcollected position for fuel costs when compared to the 2023 monitoring level. As a result, we plan to refund $34 million to our Wisconsin Retail Electric customers in the future. We are also continuing to be well-positioned to capture additional benefits for our customers from the Inflation Reduction Act and other government programs. These additional benefits include applying for lower-cost federal funding and infrastructure grants, including a grant from the DOE for long-duration energy storage in Wisconsin.
Robert J. Durian: With the implementation of our new solar projects and the Repowering of our older vintage wind facilities, we anticipate the increased production tax credits and reduce fuel costs will help offset the impact of additional renewable rate base.
Robert J. Durian: These new investments cost effective solutions for our customers.
Robert J. Durian: This will result in long term benefits for our customers and long term value for our shareowners.
Robert J. Durian: Our customers experience the benefits of a diverse generation portfolio in 2023 as the average retail electric rates declined for our Iowa customers due to lower fuel costs.
Robert J. Durian: And in Wisconsin, we ended the year in an over collected position for fuel cost when compared to the 2023 monitoring level.
Robert J. Durian: As a result, we plan to refund $34 million back to our Wisconsin retail electric customers in the future.
Robert J. Durian: We are also continuing to be well positioned to capture additional benefits for our customers from the inflation reduction Act and other government programs.
Robert J. Durian: These additional benefits include applying for lower cost federal funding and in infrastructure grants.
Robert J. Durian: Including a grant from the data we need for long duration energy storage in Wisconsin.
Robert J. Durian: We're also maximizing tax benefits by meeting tax credit data requirements.
Robert J. Durian: We are also maximizing tax benefits by meeting tax credit adder requirements and continuing the monetization of tax credits, which materially improves our cash flow and credit metrics, as well as reduces our future finances. Finally, I will highlight our regulatory initiatives in progress, as well as those regulatory filings we plan to initiate in 2024. We filed rate reviews in both states in 2023 and received a written order in December for the Wisconsin rate review, with new rates effective January 1st. And in Iowa, our electric and gas rate review is proceeding as expected, with the decision anticipated in the third quarter of this year. The IUB recently finalized the procedural schedule, and it is included on slide 11.
Robert J. Durian: And continuing the monetization of tax credits, which materially improves our cash flow and credit metrics as well as reduces our future financing needs.
Robert J. Durian: Finally, I'll highlight our regulatory initiatives in progress as well as those regulatory filings we plan to initiate in 2024.
Robert J. Durian: We filed rate reviews in both states in 2023 and received a written order in December for the Wisconsin rate review with new rates effective January 1st of this year.
Robert J. Durian: And in Iowa, our electric and gas rate review is proceeding as expected with the decision anticipated in the third quarter of this year.
Speaker Change: Yeah, you'd be recently finalized the procedural schedule is included on slides 11.
Speaker Change: We have two additional pending proceedings in Wisconsin for.
Robert J. Durian: We have two additional pending proceedings in Wisconsin. First, we requested authority to increase the efficiency, capacity, and reliability of our Neenah and Sheboygan Falls gas-generating units. And second, we filed a joint application to sell an additional 125 megawatts of the West Riverside facility to WEC Energy and Madison Gas and Electric. We are anticipating decisions from the PSCW on both of these applications by the end of this year. Turning to our planned regulatory filings in 2024, we expect to make regulatory filings in both Iowa and Wisconsin for additional renewables and dispatchable resources following our routine, continuous modeling updates of our clean energy blueprint. We expect these projects will enhance reliability, further diversify our energy resources, and meet customer energy needs.
Speaker Change: We requested authority to increase the efficiency and capacity and reliability of our neenah in Sheboygan falls gas generating units.
Speaker Change: And second we filed a joint application to sell an additional 125 megawatts of the west Riverside facility to work energy and Madison gas and electric.
Speaker Change: We are anticipating decisions from the PSC W. On both of these applications by the end of the second quarter.
Speaker Change: Turning to our planned regulatory filings in 2024.
Speaker Change: We expect to make regulatory filings in both Iowa, and Wisconsin for additional renewables and dispatch will resources following a routine continuous modeling updates of our clean energy blueprint.
Speaker Change: We expect these projects will enhance reliability further diversify our energy resources and meet customer energy needs.
Speaker Change: We very much appreciate the continued support of our company and look forward to meeting with many of you in the coming months at this time I'll turn the call back over to the operator to facilitate the question and answer session.
Robert J. Durian: We very much appreciate the continued support of our company and look forward to meeting with many of you in the coming months. At this time, I'll turn the call back over to the operator to facilitate the question and answer. Thank you. Ladies and gentlemen. The company will open the call to questions from members of the investment community. If you would like to ask... Press Star, followed by one. Tone, Prompt Acknowledging, would like to withdraw. Press Star, followed, are using, for Press.
Speaker Change: Ladies and gentlemen.
Speaker Change: The company will open the call to questions from members of the investment community.
Speaker Change: If you would like to ask a question. Please press star followed by one on your Touchtone phone you will then hear a three column prompt acknowledging your request and if you would like to withdraw from the question queue simply press Star followed by two and if you are using a speaker phone. We do ask that you. Please lift your handset before pressing any keys. Please go ahead.
Operator: Please go ahead and press star 1, you do have a question. And your first question was... Shahriar Pourreza at Guggenheim Partners. Hey guys, good morning, and Maureen Shaw. Good morning.
Speaker Change: Press Star one now if you do have a question.
Speaker Change: And your first question would be from sharp Rosa at Guggenheim Partners. Please go ahead.
Rosa: Hey, guys good morning.
Rosa: Good morning, Sean.
Rosa: Good morning.
Shahriar Pourreza: Now that we've got a schedule of... It was in the prepared remarks, right, the schedule for Iowa. Can you maybe speak to the prospects for a settlement?
Rosa: Now that we've got a scheduled obviously.
Rosa: It was in the prepared remarks right the schedule for Iowa can you just maybe speak to the prospects for a settlement when would that window be for that to occur.
Robert J. Durian: When would that window be for that to occur? Sure. So, I mean, we're feeling very good about where we are with respect to IPL. Everything is going as expected with the schedule on track. If you're looking at a settlement window, it's really any time after the intervener testimony is submitted through that June 18th deadline.
Sean: Sure. So I mean, we're we're feeling very good about where we are with respect to IPL everything is going as expected I.
Sean: The schedule on track if youre looking at a settlement window, it's really any time after the intervenor testimony is submitted through that to June 18th deadline.
Lisa M. Barton: Got it. Perfect. And Lisa, there was a report from the IUB to the legislator last December, kind of discussing, you know, rate making reforms, PBRs, multi-year plans, and other sort of potential policy updates. Is that a process you're involved in, sort of at this point, and could we see something come out of this session?
Speaker Change: Got it perfect unless if there was there was a report from the <unk> to the legislator.
Speaker Change: December kind of discussing ratemaking reforms PBR is multi year plans and other sort of potential policy updates is that a process you're involved in sort of at this point and could we see something come out of this of this session.
Lisa M. Barton: So those recommendations actually have been out for the legislature to consider. As we look at our legislative priorities this year, the megasite development to support economic development is top of mind for us, and advancing advanced rate making for alternative technologies. One of the elements that has been brought up in the legislature is asking for a contested IRP, and that is something that we are not supportive of. We have been very transparent in our resource plans; we're pro-planning, we're pro-transparency, but in terms of Okay, perfect. That's all the questions I have.
Speaker Change: So those recommendations actually have been out for the legislature to consider as we look at our legislative priorities. This year are the <unk>.
Speaker Change: Mega site development to support economic development is top of mind for us advancing our the advanced ratemaking or alternative technologies.
Speaker Change: One of the elements that has been brought up in the legislature is asking for a contested IRB and that is something that we are not supportive of we have been very transparent in our resource plans, where pro planning where approach Frans parents C. But in terms of they could tested for.
Speaker Change: Seating, that's just something that is not really consistent with the evolving generation landscape that we're finding ourselves in.
Speaker Change: Okay perfect. That's all the questions I have thank you guys appreciate it.
Shahriar Pourreza: Thank you, guys. I appreciate it. Thank you. The next question is from Nicholas Campanella. Hey, good morning, everyone.
Speaker Change: You take care.
Speaker Change: Next question is from Nicholas Campanella of bar.
Nicholas Campanella: Please please go ahead.
Nicholas Campanella: Hey, good morning, everyone. Thanks for taking my question.
Nicholas Campanella: Thanks for taking my question. Morning, I guess, just morning. You previewed some kind of tax credit monetization already. You have $200 million in the plan for 24. Just, is this still the case that you kind of expect? 300 million a year plus and 25 and beyond, or can you just help us kind of think about what the tax credit transferability benefit is in the out years? Yeah, sure, Nick.
Nicholas Campanella: Good morning, I guess just morten.
Nicholas Campanella: You are you previewed some kind of tax credit monetization already.
Nicholas Campanella: You have $200 million in the plan for 'twenty four or just is it still the case that you kind of expect $300 million, a year, plus and 25 and beyond or can you just help us kind of think about what the the.
Nicholas Campanella: Tax credit transferability benefit us in the out years.
Speaker Change: Yes sure Nick.
Robert J. Durian: So we've been very successful in the execution of bilateral agreements with the first round of tax credits we sold here in 2023. As we think about the future, and we think about all the different opportunities we have to sell renewable tax credits, we do think we'll get up above $300 million once we get out to that 2025 timeframe. When you think about the volume of wind production that we have right now, combined with the 1500 megawatts of solar that Lisa referenced,
Speaker Change: We've been very successful execution of bilateral agreements with the first round of tax credits, we sold here in 2023.
Speaker Change: As we think about the future and we think about all the different opportunities we have to sell renewable tax credits. We do think we'll get up above $300 million once we get out to that 2025 time frame.
Speaker Change: When you think about the volume of wind production that we have right now combined with the 500 megawatts of solar that Lisa referenced the 275 megawatts of battery projects that we've received approval from the PSU debuted to implement in Wisconsin, and the fact that we're gonna Repower.
Robert J. Durian: The 275 megawatts of battery projects that we've received approval from the PSCW to implement in Wisconsin and the fact that we're going to repower several of our older vintage wind projects. The volume of tax credits, like I said, will get above that $300 million level starting in 2025 and continue for several years into the future. Thanks, that's really helpful. And then just on your comments on the Wisconsin filing deadline, I think you kind of mentioned that you have new renewables coming into the picture that you have to file for. But is that just like a follow-on limited re-opener type filing from the prior rate case? Or is there not really a full rate case here to contemplate right now?
Speaker Change: Several of our older vintage wind projects are the volume of tax credits like I said, well, we'll get above that 300 million dollar level, starting in 2025 and continue for several years into the future.
Speaker Change: Thanks, that's really helpful and then.
Speaker Change: Just on your comments on Wisconsin filing cadence.
Speaker Change: I think you've kind of mentioned that you have new renewables coming into the picture that you have to file for them, but is that just like a follow on limited reopener type filing from the prior rate case or there's not like a full rate case here to contemplate right. Now can you just kind of maybe update us on your overall strategy there.
Lisa M. Barton: Can you just kind of maybe update us on your overall strategy there? I think what you're referring to are the updates on our clean energy blueprint, something that we're doing in both Iowa and Wisconsin this year.
Speaker Change: I think what you're referring to are the updates on our clean energy blueprint that is something that we're doing in both Iowa and Wisconsin. This year. The work that we're doing there will really identify the projects needed to meet our future resource needs.
Lisa M. Barton: The work that we're doing there will really identify the projects needed to meet our future resource needs and reflect changes that are there from the MISO rule. So any CapEx associated with that would be in the fall. Okay.
Speaker Change: And reflecting changes that are there from the MISO rule contracts.
Speaker Change: So any cap.
Speaker Change: But that would be in the fall.
Speaker Change: Got it yeah. That's in that Capex is not in the plan now and this is more of a fall update to your point. Okay. Correct. Thank you I appreciate the time.
Nicholas Campanella: Yep, and that CapEx is not in the plan now and is more of a fall update to your point. Okay. Correct. Thank you. Appreciate the time. Next: Julien Dumoulin-Smith at Bank of America.
Thank you next question will be from Julien Dumoulin Smith at Bank of America. Please go ahead.
Julien Dumoulin: Please go ahead. Thank you, operator. Good morning to you all and congratulations to Lisa again. Thank you. Thank you, Julian. Of course. Absolutely. I look forward to it.
Speaker Change: Thank you operator, good morning to you all and congratulations to Lisa again, thank you.
Speaker Change: Thank you Julien maybe just.
Speaker Change: Of course, absolutely look forward to it and just with respect maybe picking up where Nick left it off because I think that's a nice point on just talking through the updated Cleveland clean energy Blueprint is this an appropriate route to talk about just the demand from customers and talk about what we've seen from some of your peers with respect to.
Lisa M. Barton: And just with respect, maybe I can pick up where Nick left off, because I think that's a nice point on just talking through the updated Clean Energy Blueprint. Is this an appropriate route to talk about just the demand from customers and talk about what we've seen from some of your peers with respect to, you know, demand growth? I get that this is a little bit adjacent in terms of, you know, modeling and, sort of, as you say, continuous routine modeling. But we've seen some of these out-of-cycle updates pop up in some of these more mundane integrated resource filings elsewhere. Just curious about how you would set up expectations here in both jurisdictions. That's a great question, Julian.
Speaker Change: Demand growth I get that this is a little bit adjacent in terms of.
Speaker Change: Modeling and sort of as you say continuous routine modeling, but we've seen some of these out of cycle updates pop up in some of these more mundane integrated resource filings elsewhere. Just curious on how you would set up expectations here in both the jurisdictions.
Speaker Change: It's a great question Julian we are certainly focused on economic development, that's something we're doubling down on in terms of putting that into our forecast and into our resource plans, we need to have a level of confidence that they'll be there. So just stay tuned with respect to that space.
Lisa M. Barton: We are certainly focused on economic development. That's something we're doubling down on. In terms of putting that into our forecast and into our resource plans, we need to have a level of confidence that they'll be there. So just stay tuned with respect to that space. And as I mentioned earlier, later in 24, we will be updating our resource planning needs for the future, where we have factored in load growth and factored in the implications of the MISO rules that are constantly evolving. Yeah, actually, actually, since you bring it up, let me jump to this question. I think MISO has an update on MTEP coming up ahead as well. I know they do this on the regular, but I think there's another more meaningful update on the horizon here. Would that conceivably align with the timeline that you're talking about? Well, we constantly monitor MISO's work with respect to, you know, Tronch 1 and Tronch 2. Tronch 2 is expected later this year.
Speaker Change: And as I mentioned earlier later in 'twenty, four we will be updating our resource planning needs over the future, where we have factored in load growth and factored in the implications of the MISO rules that are constantly evolving.
Julian: Yes, indeed actually since you bring it up let me jump to this question I think MISO has an update on Msf coming up ahead, as well and I know they do this on a regular but I think theres another more meaningful update on the come here would that conceivably in line with the timeline that youre talking about.
Julian: Well, we constantly watch meese's work with respect to tranche, one and tranche two tranche. Two is expected later this year it would probably be in about the same timeframe.
Lisa M. Barton: It'll probably be in about the same time. Okay, all right, excellent. And maybe actually to put a finer point on that demand, you know, I get that this is probably, but I mean, are you seeing? I get that some of this load growth is sort of concentrated in specific corridors and specific interstates. But, would you say that some of the dynamics that you're seeing elsewhere in the state could be mirrored in your geographies, if you will? Are there any specific geography corridors that we should be watching here, as we see especially some of the more data-centered load materializing here? So we are actively and aggressively marketing our megasites that are located in both Iowa and Wisconsin, and those would really be the locations to be looking at.
Okay.
Speaker Change: Excellent and maybe actually just put a finer point on that demand I get that this is probably but I mean are you seeing I get that some of this load growth is sort of concentrated in specific corridor isn't specific interstates.
Speaker Change: Would you say that some of the dynamics that youre seeing.
Speaker Change: Elsewhere in the state could could be mirrored in your geographies. If you will are there any specific geography corridor that we should be watching here.
Speaker Change: As we see especially some of the more data data centered.
Speaker Change: Load materializing here.
Speaker Change: So we are actively and aggressively marketing our mega sites that are located in both Iowa, and Wisconsin and that would really be the locations to be looking at.
Speaker Change: Alright wonderful okay excellent I'll leave it there. Thank you guys speak to you soon again congrats.
Lisa M. Barton: All right, wonderful. Okay, excellent. We'll leave it there. Thank you, guys. Speak to you soon.
Julien Dumoulin: Again, congratulations. Thank you. Thank you again. Once again, ladies and gentlemen, if you would like to ask... Press the star followed by 1 are your touchdowns.
Speaker Change: Thank you again.
Speaker Change: Once again, ladies and gentlemen, if you would like to ask a question. Please press star followed by one Iowa Touchtone phone.
Operator: And the next question will be from Andrew Weisel at Scotiabank. Please go ahead. Hey, good morning, everyone. Good morning.
Speaker Change: And the next question will be from Andrew Wessel at Scotia Bank. Please go ahead.
Speaker Change: Yeah.
Andrew Weisel: Hey, good morning, everyone.
Andrew Weisel: Good morning, just wanted to.
Andrew Weisel: I just wanted to clarify a little bit. I think Robert, you talked about this in the prepared remarks, but I want to ask about O&M and the weather impact. The last question: is there a sense of negative weather? That is not included in the adjusted earnings, I think. So, first question is, is that a change? Have you historically done that?
Andrew Weisel: I just wanted to clarify a little bit of I think Robert you talked about this in the prepared remarks, but I wanted to ask about O&M and the weather impact.
Andrew Weisel: The six cents of negative weather that is not included in the adjusted earnings I think so first question is is that is that a change have you historically done that.
Robert J. Durian: No Andrew, so we've consistently, probably for more than a decade now, removed the weather impacts from our adjusted earnings. Really, we think that's the appropriate way to manage the business. We've seen more efficiencies from an operational perspective to avoid ramping up and ramping down cost profiles in our operations group.
No Andrew so we've consistently and probably for more than a decade now.
Andrew Weisel: We removed the weather impacts from our adjusted earnings are really we think that's the appropriate way to manage the business. We've seen more efficiencies from an operational perspective to avoid ramping up and ramping down cost profiles of our operations groups and so that's something we've done I think for the entire 14 years that we've been able.
Robert J. Durian: And so that's something we've done, I think, for the entire 14 years, where we've been able to achieve at least 5% growth. Okay, I guess I don't mean to be critical, but you've got a great track record of meeting or exceeding the midpoint, I think, going back to 2015 or so, and obviously this one was a little bit light. Anything to look into there?
Andrew Weisel: To achieve at least 5% growth.
Andrew Weisel: Yes.
Speaker Change: Okay, I guess I don't mean to be critical but <unk> got a great track record of meeting or exceeding the midpoint and I think going back to 2015, or so and obviously this one was a little bit light.
Speaker Change: Anything to look into there obviously it was a tough year with the interest rates and all that but.
Andrew Weisel: Obviously, it was a tough year with the interest rates and all that, but, you know, anything philosophically changing around either O&Ms or the midpoint as a target? No, Andrew. I think we're managing the business as we've always managed the business. I think what you're seeing is the first time in the last six years where we've actually seen the temperature impacts come in with lower earnings. In the previous five years, we let that additional earnings flow through to the bottom line. It didn't offset that with additional spending.
Speaker Change: Anything philosophically changing around either O&M or the midpoint as a target.
Speaker Change: No Andrew I think we're managing the business as we've always managed the business I think what you're saying is the first time in the last six years, where we've actually seen the temperature impacts come in with lower earnings in the previous five years, we let the additional earnings flow through to the bottom line, it and offset that with additional spending so we feel like we're being very consists.
Robert J. Durian: So we feel like we're being very consistent with the way we're operating the business. Okay, very good to hear. Then lastly, apologies if I missed it, but what's your outlook for O&Ms in 2024? Yeah, right now, we think it'll be relatively flat. We are obviously facing inflationary pressures.
Speaker Change: With the way we're operating the business.
Andrew: Okay very good to hear.
Lastly, apologies if I missed it but what's your outlook for O&M in 2024.
Yeah right now we think it'll be relatively flat. We are obviously facing inflationary pressures. We also have some additional O&M that we're expecting from the large amount of new generation that we're putting into service with solar projects in battery projects, but we have a lot of confidence in the team to be able to offset those impacts with our continued.
Robert J. Durian: We also have some additional O&M that we're expecting from the large amount of new generation that we're putting into service with solar projects and battery projects. But we have a lot of confidence in the team to be able to offset those impacts with our continued cost control measures. Okay, sounds great. Thank you very much. And again, congratulations to both John and Lisa and all the other management changes you mentioned earlier. Thank you. Ms. Gild, at this time, there are no further questions... With no more questions, this concludes our call. A replay will be available on our investor website. Thank you for your continued support of Alliant Energy, and feel free to contact me with any follow-up questions.
Cost control measures.
Speaker Change: Okay sounds great. Thank you very much and again, congrats to both John and Lisa and all the other management teams is what you mentioned earlier.
Speaker Change: Thank you.
Speaker Change: Ms. Gil at this time there are no further questions.
With no more questions. This concludes our call a replay will be available on our investor website. Thank.
Susan Gille: Thank you for your continued support of Alliant energy and feel free to contact me with any follow up.
Operator: Thank you. Ladies and gentlemen, this is a test. This is a test. Again, thank you for attending. At this time, we ask that you please disconnect, and this is one of those tank presenters who is eligible to be our guest speaker.
Ms. Gil: <unk>.
Speaker Change: Thank you ladies and gentlemen, this does indeed conclude your conference call for today. Once again. Thank you for attending at this time, we ask that you. Please disconnect your lines have a good weekend.
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