Q3 2024 Alliant Energy Corp Earnings Call

November 1, 2024

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Operator: Thank you for holding, everyone, and welcome to Alliant Energy's third quarter 2024 earnings conference call. At this time, all lines are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session.

Speaker Change: Thank you for holding everyone and welcome to Alliant Energy's third quarter 2024 earnings conference call. At this time all lines are in a listen only mode. Later, you will have the opportunity to ask questions. During the question and answer session. You mean registered to ask a question at any time by pressing star one on your telephone keypad also today's call is being recorded.

Operator: You may register to ask a question at any time by pressing star 1 on your telephone keypad. Also, today's call is being recorded, and if you should need any assistance during the call today, please press star 0.

Speaker Change: And if you should need any assistance during the call today, Please press star zero.

Susan Gille: Now, at this time, I'll turn things over to your host, Susan Gille, Investor Relations Manager at Alliant Energy. Please go ahead.

Speaker Change: Now at this time I'll turn things over to your host Susan Gil Investor Relations manager at <unk>. Please go ahead ma'am.

Susan Gille: Good morning. I would like to thank all of you on the call and the webcast for joining us today. We appreciate your participation.

Susan Gil: Good morning, I would 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 Lisa Barton, President and CEO, and Robert Durian, Executive Vice President and CFO. Following prepared remarks by Lisa and Robert, we will have time to take questions from the investment community.

Susan Gil: With me here today are Lisa Barton, President and CEO, and Robert Durian, Executive Vice President and CFO.

Susan Gil: Following prepared remarks by 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 third quarter and year-to-date financial results, narrowed our 2024 earnings guidance range, provided 2025 earnings and dividend guidance, and provided our updated capital expenditure plans through 2028. This release, as well as earnings presentation, will be referenced during today's call, are available on the investor page of our website at www.AlliantEnergy.com.

Susan Gil: We issued a news release last night announcing Alliant Energy's third quarter and year to date financial results.

Our 2024 earnings guidance range provided 2025 of earnings and dividend guidance and provided our updated capital expenditure plans through 2028, that's release as well as earnings presentation will be referenced during today's call are available on the investor page of our website.

It at Www Dot Alliant energy Dot com.

Susan Gille: Before we begin, I need to remind you 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'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.

Before we begin I need to remind you the remarks, we make on this call and our answers to your questions include forward looking statements.

Susan Gil: 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 a line 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 state.

Susan Gil: And that's in.

Susan Gille: In addition, this presentation contains references to ongoing earnings per share, which is a non-GAAP financial measure. References to ongoing earnings exclude material charges or income that are not normally associated with ongoing operations. The reconciliation between ongoing and GAAP measures is provided in the earnings release, which is available on our website.

Susan Gil: In addition, this presentation contains references to ongoing earnings per share, which is a non-GAAP financial measure references to ongoing earnings exclude material charges or income that are not normally associated with ongoing operations a reconciliation between ongoing and GAAP measures.

Susan Gil: As provided in the earnings release, which is available on our website.

Lisa Barton: At this point, I will turn the call over to Lisa. Thank you, Susan. Good morning, everyone, and thank you for joining our third quarter earnings call. Today, we're pleased to share our Q3 results, another quarter where we delivered solid financial performance while advancing our key strategic priorities. We'll take you through the details of our performance, share our outlook for the remainder of the year, provide insights into our strategic initiatives, and discuss how we're positioned for continued success and growth over the long term. We are narrowing our 2024 ongoing earnings guidance range based on our confidence in our ability to offset a majority of the negative impacts of temperatures, and we are reaffirming our long-term earnings growth target of 5 to 7%.

Speaker Change: At this point I will turn the call over to Lisa.

Lisa Barton: Thank you Susan good morning, everyone and thank you for joining our third quarter earnings call. Today, we're pleased to share our Q3 results another quarter, where we delivered solid financial performance, while advancing our key strategic priorities will take you through the details of our performance share our outlook for the remainder of the year.

Lisa Barton: Year provide insights into our strategic initiatives and discuss how we're positioned for continued success and growth over the longer term.

Lisa Barton: We are narrowing our 2024 ongoing earnings guidance range based on our confidence in our ability to offset a majority of the negative impacts of temperatures and we are reaffirming our long term earnings growth target of 5% to 7%.

Lisa Barton: Looking ahead, I'm pleased to share our 2025 earnings guidance and dividend target. Our 2025 earnings guidance midpoint represents a 6% increase to our midpoint of our forecasted 2024 ongoing earnings. and our 2025 annual common stock dividend target is $2.03 per share, a 6% increase from this year's dividend. While we are sharing our Q3 2024 results today, our team is acutely focused on the future and building a strong pipeline of investment opportunities while concurrently solving for affordability. Our relentless focus on delivering consistent, predictable results with a steadfast commitment to customer centricity, affordability, reliability, and sustainability serves as the foundation of our strategy.

Lisa Barton: Looking ahead I'm pleased to share our 2025 earnings guidance and dividend targets.

Lisa Barton: Our 2025 earnings guidance midpoint represents a 6% increase to our midpoint of our forecasted 2024 ongoing earnings.

Lisa Barton: And our 2025 annual common stock dividend target is $2.03 per share a 6% increase from this year's dividends.

Lisa Barton: While we are sharing our Q3 'twenty 'twenty four results today, our team is acutely focused on the future and building a strong pipeline of investment opportunities while concurrently solving for affordability.

Lisa Barton: Our relentless focus on delivering consistent predictable results with a steadfast commitment to customer centricity affordability reliability and sustainability serves as the foundation of our strategy in a rapidly evolving energy landscape four key strengths set us apart and underpin our <unk>.

Lisa Barton: In a rapidly evolving energy landscape, four key strengths set us apart and underpin our success in supporting growth. long-term shareholder returns. and Economic Development Focus. We drive growth in the communities we serve, creating shared prosperity and building robust local economies. Use of a dynamic resource planning model. Our flexible approach to resource planning ensures our ability to scale generation quickly with a non-litigated resource plan to meet evolving customer and community needs. Forward Thinking, Regulatory Alignment. We work proactively with our regulators and intervenors to shape frameworks that solve for affordability and growth, strengthening our ability to provide win-win outcomes.

Lisa Barton: Success in supporting growth.

Lisa Barton: Long term shareholder returns.

And economic development focus we drive growth in the communities, we serve creating shared prosperity and building robust local economies.

Lisa Barton: Use of a dynamic resource planning model, our flexible approach to resource planning ensures our ability to scale generation quickly with a non litigated resource plan to meet evolving customer and community needs.

Lisa Barton: Forward thinking regulatory alignment, we work proactively with our regulators and intervenors to shape frameworks that solve for affordability and growth strengthening our ability to provide win win outcomes.

Lisa Barton: Strategic Capacity Positioning. Leveraging existing resources along with strategic Generation Q positions enables us to adapt our generation portfolio as customer needs evolve. These differentiators enable us to pivot as needed to grow with our customers.

Lisa Barton: Strategic capacity positioning leveraging existing resources, along with strategic generation queue positions enables us to adapt our generation portfolio as customer needs evolve.

Lisa Barton: These differentiators enable us to pivot as needed to grow with our customers.

Lisa Barton: With that in mind, I'm excited to announce we are preparing to bring two prestigious data center companies to our Big Cedar Industrial Center in Cedar Rapids, Iowa. We expect these data centers to add 1.1 gigawatts in phase one, which is anticipated to come online by year-end 2028. This first phase of new data center demand is projected to boost our peak demand by nearly 20% over the next five years. With the potential for a second phase by the end of the decade. We are confident in the timing and the magnitude of the 1.1 gigawatts, all of which is backed by fully executed land, transmission, and energy supply agreements.

Lisa Barton: With that in mind I'm excited to announce we are preparing to bring two prestigious data center companies to our big Cedar Industrial Center in Cedar Rapids, Iowa, We expect these data centers to add 1.1 Gigawatts in phase, one which is anticipated to come online by year end 2028.

Lisa Barton: This first phase is of new data center demand is projected to boost our peak demands by nearly 20% over the next five years with the potential for a second phase by the end of the decade.

Lisa Barton: We are confident in the timing and the magnitude of the one one gigawatts all of which is backed by fully executed land transmission and energy supply agreements.

Lisa Barton: We will continue to provide updates on future loads and new customers as we gain greater clarity on the size and timing of the forecasted loads. Our recently approved Individual Customer Rate, or ICR, in Iowa is enabling Alliant Energy to adapt and align with the needs of both future and existing customers, while ensuring meaningful long-term growth for our investors. We appreciate the Iowa Utilities Commission's recent decision supporting our rate review settlement and use of the ICR. This order stabilizes base rates for Iowa customers through the end of the decade, providing predictability for current and future customers.

Lisa Barton: We will continue to provide updates on future loads and new customers as we gain greater clarity on the size and timing of the forecasted load.

Lisa Barton: Our recently approved individual customer rates or ICR in Iowa is enabling alliant energy to adapt and align with the needs of both future and existing customers, while ensuring meaningful long term growth for our investors.

Lisa Barton: We appreciate the Iowa Utilities Commission recent decisions supporting our rate review settlement and use of the ICR construct this order stabilizes base rates for Iowa customers through the end of the decade, providing predictability for current and future customers.

Lisa Barton: The ICR also serves as a tool for economic development and community growth in Iowa. We look forward to the Iowa Utilities Commission review of our ICR contracts for these new customers. As we have mentioned in the past, we are committed to ensuring all such arrangements are beneficial for existing customers, new customers, and our share owners.

Lisa Barton: The ICR also serves as a tool for economic development and community growth in Iowa, We look forward to the Iowa Utilities Commission review of our ICR contracts for these new customers.

Lisa Barton: As we have mentioned in the past we are committed to ensuring all such arrangements are beneficial for existing customers new customers and our shareowners.

Lisa Barton: This year, we are refreshing our Clean Energy Blueprint, which serves as our resource planning process and roadmap. This unique, dynamic, and non-litigated resource planning process provides for meaningful stakeholder engagement. It is a disciplined and thoughtful approach that proactively adapts to MISO accreditation changes and aligns our energy resources with growing demand. By evaluating our needs to support low, mid, and high load growth scenarios, we have the ability to flex our resource plan as necessary. The 2025-2028 Capital Expenditure Plan incorporates a mid-growth scenario or Phase 1 of anticipated economic growth at Big Cedar. We recognize supporting reliability, resiliency, and the clean energy transition requires continued robust planning, a strong transmission network, and a mix of flexible, controllable resources such as natural gas, energy storage, and advanced grid technologies to ensure grid reliability.

Lisa Barton: This year, we are refreshing, our clean energy blueprint, which serves as a resource planning process and roadmap. This unique dynamic and non litigated resource planning process provides for meaningful stakeholder engagement. It is a disciplined and thoughtful approach that proactively adapt to MISO accreditation.

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Lisa Barton: By evaluating our needs to support low mid and high load growth scenarios, we have the ability to flex our resource plan as necessary.

Lisa Barton: The 2025 to 2028 capital expenditure plan incorporates a mid growth scenario worst as one of anticipated economic growth at big Cedar.

Lisa Barton: We recognize supporting reliability resiliency in the clean energy transition requires continued robust planning a strong transmission network and a mix of flexible controllable resources, such as natural gas energy storage and advanced grid technologies to ensure grid.

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Lisa Barton: Our CAPEX plan includes investments in strengthening and improving the performance of our existing natural gas investment. Additional Energy Storage. Additional highly efficient natural gas assets to further diversify our energy mix. And finally, as we have done in the past, we will continue to evaluate extending the operation of existing fossil facilities and repowering operations. These investments in energy resources will enhance energy security, create local jobs, and provide valuable tax revenues for the communities we serve, all while maintaining affordable rates for our customers across Iowa and Wisconsin. In both Iowa and Wisconsin, the regulatory environment is collaborative, constructive, and fosters growth.

Lisa Barton: Our Capex plan includes investments in strengthening and improving the performance of our existing natural gas investments additional energy storage additional highly efficient natural gas assets to further diversify our energy mix and finally as we have done in the past.

Lisa Barton: We will continue to evaluate extending the operation of existing fossil facilities and repowering opportunities.

Lisa Barton: These investments and energy resources will enhance energy security create local jobs and provide valuable tax revenues for the communities, we serve all while maintaining affordable rates for our customers across Iowa and Wisconsin.

Lisa Barton: In both Iowa, and Wisconsin, the regulatory environment is collaborative constructive and fosters growth collectively it's a win for all stakeholders and critical to our success in meeting the evolving needs of our customers and the communities we serve.

Lisa Barton: Collectively, it's a win for all stakeholders, and critical to our success in meeting the evolving needs of our customers and the communities we serve.

Lisa Barton: I want to underscore our unwavering commitment to continue providing top-tier reliability in achieving our long-term sustainability goals outlined in the Corporate Responsibility Report published this week. We are extremely proud of our efforts to enhance our portfolio of zero-fuel-cost clean energy resources. Alliant Energy continues to be a leader in the clean energy transition, with 1.8 gigawatts of regulated wind and, by the end of this year, 1.5 gigawatts of regulated solar resources. We plan to continue investing in renewable generation and energy storage. In fact, over 40% of our 2025 to 2028 capital expenditure plan includes investments in wind, solar and energy storage.

Lisa Barton: I want to underscore our unwavering commitment to continue providing top tier reliability and achieving our long term sustainability goals outlined in the corporate responsibility report published this week we.

Lisa Barton: We are extremely proud of our efforts to enhance our portfolio of zero fuel costs clean energy resources Alliant energy continues to be a leader in the clean energy transition with one eight gigawatts of regulated wind and by the end of this year 1.5 gigawatts of regulated solar.

Lisa Barton: Sources.

Lisa Barton: We plan to continue investing in renewable generation and energy storage in fact over 40% of our 2025 to 2028 capital expenditure plan includes investments in wind solar and energy storage. These investments result in our company, having one of the cleanest.

Lisa Barton: These investments result in our company having one of the cleanest leaps in the Our focus on customers and building stronger communities is at the heart of everything we do. With our strong track record of exceptional project execution, we are confident in our ability to continue meeting customer, community, and investor expectations.

Lisa Barton: <unk> in the country.

Lisa Barton: Our focus on customers and building stronger communities is at the heart of everything we do with our strong track record of exceptional project execution, we are confidence in our ability to continue meeting customer community and investor expectations.

Lisa Barton: Speaking of communities, I would like to extend my gratitude to the many business partners, vendors, and providers who collaborated with our foundation to help raise more than half a million dollars this year to support programs that combat hunger and food insecurity across our service territory. Before we dive into our financial results, I want to take a moment to express my deepest gratitude to our dedicated team members who go above and beyond to help communities in need. In support of the industry's mutual assistance efforts, our team lent their expertise to restore power to communities impacted by Hurricane Helene.

Lisa Barton: Speaking of communities I would like to extend my gratitude to the many business partners vendors and providers, who collaborated with our foundation to help raise more than half a million dollars. This year to support programs that combat hunger and food and security across our service territory.

Lisa Barton: Before we dive into our financial results I want to take a moment to express my deepest gratitude to our dedicated team members, who go above and beyond to help communities in need.

In support of the industry's mutual assistance efforts our team lent their expertise to restore power to communities impacted by Hurricane Helene.

Lisa Barton: The team's dedication and willingness to lend a hand exemplifies the strength and unity of our industry. Thank you for your incredible work and commitment.

The team's dedication and willingness to lend a hand exemplifies the strength and unity of our industry. Thank you for your incredible work and commitment.

Robert Durian: I will now turn the call over to Robert to provide our financial results, earnings and dividend guidance, financing plans, and an update on regulatory matters. Thank you, Lisa. Good morning, everyone. Yesterday, we announced third-quarter earnings of $1.15 per share, compared to non-GAAP earnings of $1.05 per share in the third quarter of 2023. Our quarterly ongoing earnings change year over year was primarily due to higher revenue requirements from capital investments at our Wisconsin utility and the timing of income taxes. These positive drivers were partially offset by higher depreciation and financing. The remaining earning drivers for the year largely relate to negative impacts of milder temperatures on electric and gas sales.

Speaker Change: I'll now turn the call over to Robert to provide our financial results earnings and dividend guidance financing plans and an update on regulatory matters.

Robert Durian: Thank you Lisa good morning, everyone.

Robert Durian: Yesterday, we announced third quarter earnings of $1.15 per share compared to non-GAAP earnings of $1.05 per share in the third quarter of 2023.

Robert Durian: Our quarterly ongoing earnings change year over year was primarily due to higher revenue requirements from capital investments at our Wisconsin utility and the timing of income tax expense.

Robert Durian: These positive drivers were partially offset by higher depreciation and finance expense.

Robert Durian: The remaining earning drivers for the year largely related to negative impacts of milder temperatures in electric and gas sales.

Robert Durian: and our team's successful efforts to reduce O&M, interest, and tax expenses to offset a majority of our temperature impact. Through September of this year, net temperature impacts on electric and gas margins have decreased Alliant Energy's earnings by approximately $0.10 per share. In comparison, net temperatures decreased Alliant Energy's earnings for the first three quarters of 2023 by two cents. While temperatures have had a material impact on earnings in 2024, margins from our temperature normalized electric sales have been close to plan. with higher than expected sales to residential and commercial customers, partially offset by lower sales to our low-margin IPL industrial customers.

Robert Durian: And our team's successful efforts to reduce O&M interest interest expenses.

Robert Durian: So the majority of our temperature impacts.

Robert Durian: Through September of this year that temperature impacts on electric and gas margins have decreased Alliant Energy's earnings by approximately 10 cents per share.

Robert Durian: In comparison net temperatures decreased a lot it as earnings for the first three quarters of 2023 by <unk> for sure.

Robert Durian: While temperatures have had a material impact on earnings in 2024.

Robert Durian: Margins from our temperature normalized electric sales had been close to plan.

Robert Durian: With higher than expected sales to residential and commercial customers.

Robert Durian: We offset by lower sales to our low margin IPL industrial customers, primarily due to less customer owned generation maintenance in 2024.

Robert Durian: primarily due to less customer owned generation maintenance in 2020.

Robert Durian: Turning to our full year 2024 earnings forecast. As a result of our solid earnings through September, our successful efforts to offset a majority of the losses due to mild temperature impacts, and our projected four-quarter results, we have narrowed our 2024 earnings guidance to a range of $2.99 per share to $3.60.

Turning to our full year 2024 earnings forecast is there.

Robert Durian: Result of our solid earnings through September our successful efforts to offset a majority of the losses due to mild temperature impacts and our projected fourth quarter results. We have narrowed our 2024 earnings guidance to a range of $2 99 per share to $3.06 per share.

Robert Durian: As Lisa mentioned, we also announced our projected 2025 earnings guidance range and dividend target. The 2025 earnings growth is driven by higher earnings from capital investments in both Iowa and Wisconsin, partially offset by higher depreciation and finance. Our 2025 earnings and dividend guidance continue our consistent track record of achieving our long-term growth targets of 5 to 7%.

Speaker Change: As Lisa mentioned, we also announced our projected 2025 earnings guidance range and dividend target yesterday.

Speaker Change: The 2025 earnings growth is driven by higher earnings from capital investments in both Iowa and Wisconsin.

Speaker Change: We offset by higher depreciation and financing expenses.

Speaker Change: Our 2025 earnings and dividend guidance continue our consistent track record of achieving our long term growth targets of 5% to 7%.

Robert Durian: Our team has continued to advance our purpose-driven strategy to ensure we not only accomplish our current year goals, but also enable the achievement of our financial and operational objectives over the long term. These long-term objectives include a strong focus on customer value while planning and investing for the future. We are well-positioned to provide competitive rates for our customers over the long term. As a result of our economic development efforts, our continued focus on cost controls, and our pursuit of federal program benefits. Our economic development efforts, including new data center loads, are expected to increase energy sales over the long term, which spreads fixed costs across more units sold, thereby driving affordability for our customers and communities.

Our team has continued to advance our purpose driven strategy to ensure we not only accomplished our current year goals, but also enable the achievement of our financial and operational objectives over the long term.

Speaker Change: These long term objectives include a strong focus on customer value, well planning and investing for the future.

Speaker Change: We are well positioned to provide competitive rates for our customers over the long term as a result of our economic development efforts. Our continued focus on cost controls and our pursuit of federal program benefits.

Speaker Change: Our economic development efforts, including New data center loads are expected to increase energy sales over the long term, which spread fixed costs across more units sold their board, thereby driving affordability for our customers and communities.

Robert Durian: Through our continued focus on operational excellence and cost management efforts to offset inflationary pressures, we are targeting sustainable cost controls across various expense categories to support customer affordability.

Speaker Change: Through our continued focus on operational excellence and cost management efforts to offset inflationary pressures, we are targeting sustainable cost controls across various expense categories to support customer affordability.

Robert Durian: As part of these efforts, we are restructuring our workforce. We have initiated a voluntary employee separation program in the fourth quarter. which is expected to reduce our current workforce by approximately 5%. In addition, we continue to drive reductions across other expense categories to deliver on investor and customer expectations.

Speaker Change: As part of these efforts we are restructuring our workforce, we have initiated a voluntary employee separation program in the fourth quarter, which.

Speaker Change: Which is expected to reduce our current workforce by approximately 5%.

Speaker Change: In addition, we continue to drive reductions across other expense categories to deliver on investor and customer expectations.

Robert Durian: One area where we see this happening is with our generation transition. As we continue to move to more renewables and energy storage, while preparing to fuel switch or retire our fossil fuel generation resources, we will continue to reduce our operating costs. Also, with the implementation of our planned additional renewable and energy storage projects and the repowering of our wind facilities. We anticipate that tax credits and reduced fuel expenses will help offset the impact of the increased renewable rate base, rendering these new investments highly cost-effective for our customers. This commitment will result in long-term benefits for our customers and long-term value for our shareholders.

Speaker Change: One area, where we see this happening is with our generation transition.

Speaker Change: As we continue to move to more renewables and energy storage, while preparing to fuel switch or retire or fossil fuel generation resources, we will continue to reduce our operating costs.

Speaker Change: Also with the implementation of our planned additional renewable and energy storage projects and the Repowering of our wind facilities.

Speaker Change: We anticipate the tax credits and reduce fuel expenses will help offset the impact of increased renewable rate base rent or any of these new investments highly cost effective for our customers.

Speaker Change: This commitment will result in long term benefits for our customers.

Speaker Change: Long term value for our shareowners.

Speaker Change: Okay.

Robert Durian: With our success thus far in advancing and executing on our capital projects, we expect to continue capturing additional federal benefits by applying for grant and loan funding. Maximizing Tax Benefits for Renewables and Energy Storage Projects. to monetize tax credits, which materially improve our cash flows and credit metrics, The U.S. Department of Energy's recent announcement that we were selected for a $50 million grant to advance electric grid reliability, visibility, and control in rural Wisconsin is a great example of our team's successful efforts to capture such federal benefits for our customers.

With our success, thus far in advancing and executing on our capital projects, we expect to continue capturing additional federal benefits.

Speaker Change: Playing for granted loan funding.

Speaker Change: Maximizing tax benefits from renewables and energy storage projects.

Speaker Change: And leveraging opportunities to monetize tax credits, which materially improve our cash flows and credit metrics as well as reduce future financing needs.

Speaker Change: The U S Department of Energy's recent announcement that we were selected for a 50 million dollar grant to advance electric grid reliability visibility and control and rural Wisconsin.

Speaker Change: Great example of our team's successful efforts to capture such federal benefits for our customers.

Speaker Change: Yeah.

Robert Durian: Yesterday we announced an updated capital expenditure plan through 2028. The updates to our plan were largely related to increased capital expenditures for additional generation and energy storage projects necessary to meet growing demand from our customers in the future. Our customer-focused investment plan continues to diversify our generation resources while transitioning our fleet to more renewable and energy storage resources. We have increased our four-year capital expenditure plan by approximately $1.8 billion and now have a compounded annual growth rate of 10% for rate base plus construction work in progress. extending our confidence in meeting the long-term growth objectives shared with our investors.

Speaker Change: Yesterday, we announced an updated capital expenditure plan through 2020 eights the updates to our plan were largely related to increased capital expenditures for additional generation and energy storage projects necessary to meet growing demand from our customers in the future.

Speaker Change: Our customer focused investment plan continues to diversify our generation resources.

Transitioning our fleets to more renewable and energy storage resources.

Speaker Change: We have increased our four year capital expenditure plan by approximately $1.8 billion and now have a compounded annual growth rate of 10% for rate base plus construction work in progress.

Speaker Change: Turning our confidence in meeting our long term growth objectives shared with our investors.

Robert Durian: Moving to our financing plans. In September, we successfully completed $650 million of debt issuances at IPO. which has finalized our planned debt issuances for 2024. We plan to use the proceeds from these debt issuances to retire maturing debt in December and finance the 400 megawatts of Iowa solar project. which we expect to be in service by the end of the year. As we look to future financings and with the increase in our capital expenditure plan, we have provided updated financing plan indications through 2028 on slide 7 of our supplemental slides. Of note, our capital expenditures will primarily be financed with a combination of cash flows from operations.

Speaker Change: Moving to our financing plans.

Speaker Change: In September we successfully completed $650 million of debt issuances at IPO.

Speaker Change: Which is finalized our planned debt issuances for 2024.

Speaker Change: We plan to use the proceeds from these debt issuances to retire maturing debt in December and finance, the 400 megawatts of our solar projects.

Speaker Change: We expect to be in service by the end of the year.

Speaker Change: As we look to future financings and with the increase in our capital expenditure plan. We have provided updated financing plan indications through 2028 on slide seven of our supplemental slides.

Speaker Change: Of note our capital expenditures will primarily be financed with a combination of cash flows from operations, including significant proceeds expected from the continuation of tax credit amortization.

Robert Durian: including significant proceeds expected from the continuation of tax credit modernization. and new debt and common equity issuances to maintain regulatory capital structures and a desired parent capital structure of approximately 40 percent. More near term, our 2025 financing plans include up to $1.2 billion of long term debt issue. including up to $600 million at each of IPL and Alliant Energy Finance and or at the parent. Our 2025 financing plans also include approximately $25 million of new common equities through our shareholder direct...

Speaker Change: And new debt and common equity issuances to maintain regulatory capital structures and a desired parent capital structure of approximately 40%.

Speaker Change: More near term are 2025 financing plans include up to $1.2 billion of long term debt issuances.

Speaker Change: Clothing up to $600 million at each of IPO Angela.

Speaker Change: And Alliant energy finance and or at the parent.

Speaker Change: Our 2025 financing plans also include approximately $25 million of new common equity through our shareowner direct plan.

Robert Durian: Finally, I'll highlight our regulatory initiatives in progress, as well as those regulatory filings we plan to initiate in the future. We have three active dockets currently in progress before the Public Service Commission of Wisconsin, which involve requests for certificates of authority for customer-focused investment. These dockets relate to investments which will enhance the reliability and resiliency of the Riverside Generating Facility. refurbished the Pantry wind farm to extend production tax credits from the facility for the benefit of our customers. and enable a new long-duration energy storage project called Energy Dome, which would be sited next to the Columbia Energy Center.

Speaker Change: Finally, I'll highlight our regulatory initiatives and progress as well as those regulatory filings we plan to initiate in the future.

Speaker Change: We have three active docket is currently in progress before the public service Commission of Wisconsin, which involve requests for certificates of authority for customer focus investments.

Speaker Change: These dockets relate to investments, which will enhance the reliability and resiliency of the Riverside generating facility.

Speaker Change: Refurbish the pantry windfarm to extend production tax credits from the facility for the benefit of our customers.

Speaker Change: And enable a new long duration energy storage project called energy dome.

Speaker Change: Which would be decided next to the Columbia Energy Center.

Robert Durian: We expect decisions from the Public Service Commission of Wisconsin on these dockets in 2025.

Speaker Change: We expect decisions from the public service Commission of Wisconsin on these dockets in 2025.

Robert Durian: Turning to our planned regulatory filings in the future, we anticipate filing the Wisconsin Retail Electric and Gas Rate Review for test years 2026 and 2027 by early second quarter of 2025. And in conjunction with our updated capital expenditure plan, we also expect to make regulatory filings in both Iowa and Wisconsin for additional renewables and dispatched resources. to enhance reliability, further diversify our energy resources, and meet growing customer energy needs.

Speaker Change: Turning to our planned regulatory filings in the future, we anticipate filing the Wisconsin retail electric and gas rate review for test years, 2026, and 2027 by early second quarter of 2025.

Speaker Change: And in conjunction with our updated capital expenditure plan. We also expect to make regulatory filings in both Iowa, and Wisconsin for additional renewables and a special resources.

Speaker Change: To enhance reliability further diversify our energy resources and be growing customer energy needs.

Lisa Barton: I'll now turn the call back over to Lisa to provide closing remarks. Thank you, Robert. It's an exciting time to be in the utility industry, and more importantly, it's an exciting time to be at Alliant Energy.

Speaker Change: I'll now turn the call back over to Lisa to provide closing remarks.

Lisa Barton: Robert It's an exciting time to be in the utility industry and more importantly, it's an exciting time to be at Alliant energy in closing I want to reiterate the elements that set alliant energy apart, it's our ability to continually solve the rubik's cube of balancing reliability sustainability affordability.

Lisa Barton: In closing, I want to reiterate the elements that set Alliant Energy apart. It's our ability to continually solve the Rubik's Cube of balancing reliability, sustainability, affordability, and long-term growth. Our unwavering commitment to building stronger communities and advancing economic development is the driving force behind our long-term growth operations. Our ability to grow in tandem with our customers and communities is underpinned by our flexible, timely, and adaptable resource planning process, which enables us to identify in advance the generation resources needed to support growth. Having access to near-term generation resources allows us to meet our customers' desired timeline.

Lisa Barton: <unk> and long term growth, our unwavering commitment to building stronger communities and advancing economic development is the driving force behind our long term growth opportunities.

Lisa Barton: Our ability to grow in tandem with our customers and communities is underpinned by our flexible timely and adaptable resource planning process, which enables us to identify and advance the generation resources needed to support growth.

Lisa Barton: Having access to near term generation resource allow resources allows us to meet our customers desired timelines.

Lisa Barton: while our investments in future Generation Q positions ensures we are well positioned to adapt and grow at the pace of our customers and communities.

Lisa Barton: While our investments in future generation queue positions ensures we are well positioned to adapt and grow at the pace of our customers and communities.

Lisa Barton: As we all know, location matters. We are in a strong RTO, operating as a vertically integrated company with the right and obligation to build, own, and operate generation to serve our customers. in states with regulatory frameworks that align with our ability to support continued growth. As we move forward, we remain focused on aligning and adapting to meeting the evolving energy needs of those we serve and those we have the privilege to serve. We remain confident in our team's ability to execute on our strategic and operational priorities to drive sustainable growth.

Lisa Barton: As we all know location matters, we are in a strong our T O operating as a vertically integrated company with the right and obligation to build own and operate generation to serve our customers in states with regulatory frameworks that align with our ability to support continued growth.

As we move forward, we remain focused on aligning and adapting to meeting the evolving energy needs of those we serve and those we have the privilege to serve.

Lisa Barton: We remain confident in our team's ability to execute on our strategic and operational priorities to drive sustainable growth. Thank.

Lisa Barton: Thank you for your continued support. We look forward to speaking with many of you at the EEI Financial Conference and plan to post updated materials on our website next week.

Lisa Barton: Thank you for your continued support we look forward to speaking with many of you at the EI Financial Conference and plan to post updated materials on our website next week at this time I'll turn the call back over to the operator to facilitate the question and answer section.

Operator: At this time, I'll turn the call back over to the operator to facilitate the question and answer session. Thank you, Ms. Barton. At this time, the company will open up the call to questions from members of the investment community. If you would like to ask a question, please press star 1, and if you find your question has been addressed, you may remove yourself from the queue by pressing star 2. Once again, that's star 1 for questions.

Speaker Change: Thank you Ms. Martin at this time the company will open up the call to questions from members of the investment community. If you would like to ask a question. Please press star one and if you find your question has been addressed you may remove yourself from the queue by pressing star to once again Thats star one for questions well go first this morning to Nicholas Campanella.

Operator: We'll go first this morning to Nicholas Campanella of Barker.

Barclays.

Nathan Richardson: Hey everybody, it's actually Nathan Richardson, on for Nick. Hi, happy Friday. Just a couple of questions for you. So should you shift into the high case for load growth? How could that affect where you end up in the five? So the way of really looking at that long-term growth is think of it as upside potential. What we're really doing is extending our five to seven growth opportunities. We anticipate that phase two growth would likely be in those later years. Got it. Okay, that makes sense. Thank you. And then one more on the equity, you're currently guiding to roughly 10% funding of overall CapEx, but only $25 million of issuance, $25.

Speaker Change: Hey, everybody, Thanks, Nathan Richardson on for Nick.

Speaker Change: Yeah.

Speaker Change: Hi, Nathan.

Nathan Richardson: Hi, Happy Friday I was just a couple of questions for you. So should you shift into the high case for load growth, how could that affect where you end up in the 5% to 7%.

Speaker Change: Long term EPS growth guidance.

Speaker Change: So the way of really looking at that long term growth is think of it as upside potential what we're really doing is extending our five to seven growth opportunities. We anticipate that some phase two growth would likely be in those later years.

Speaker Change: Got it okay that makes sense. Thank you and then one more on the equity.

Speaker Change: You're kind of guiding to roughly 10% funding of overall capex to only $25 million of issuance twenty-five how can we think about contributions in 26 and beyond without <unk> and <unk>.

Robert Durian: How can we think about contribution beyond, would that be gradual, and would that be covered? Yeah, great question, Nathan.

Speaker Change: Would that be covered under the ATM.

Speaker Change: Yeah, Great question. Nathan This is Robert Yes, we updated our capital expenditure plan and looked at the additional roughly $2 billion of investment.

Robert Durian: This is Robert. As we updated our capital expenditure plan and looked at the additional roughly $2 billion of investment, we do see a need for roughly about $1 billion of new common equity through 2028 to be able to maintain the strong balance sheet that we have, and the equity ratio is at the parent company of around 40%. And so when you look at our capital expenditure plan over the four years, it is more heavily weighted towards the back half of the plan, so 2026, 2027, and 2028 have higher levels of growth and CapEx. And so consider that's the appropriate timing when we're going to need that equity.

Speaker Change: We do see a need for a roughly about a $1 billion of new common equity through 2020 age to be able to maintain a strong balance sheet that we have in the.

Speaker Change: The equity ratio is at the parent company of around 40% and so.

Speaker Change: When you look at our capital expenditure plans over the four years. It is more heavily weighted towards the back half of the plan. So 26, 27 and toward AIDS have higher levels of growth and Capex and so.

Speaker Change: Consider that the appropriate timing, what we're gonna need that equity.

Robert Durian: As far as kind of the volume of it, I do think it's probably going to be fairly radibly over that 26 to 28 time period. And so with those levels roughly around $300 to $350 million a year in that time frame, there is an opportunity for us to use ATMs at that level. We'll continue to evaluate that. There could be opportunities for us to reconsider that in the future, but that's what our current plan looks like.

Speaker Change: As far as kind of the the volume of it I do think it's probably gonna be fairly ratably.

Speaker Change: Over that 26 to 28 time period, and so with those levels roughly around $300 million to $350 million a year in that time frame. There is an opportunity for us to use Atms.

Speaker Change: At that level so we.

Speaker Change: We will continue to evaluate that there could be opportunities for us to reconsider that in the future, but that's our that's what our current plan looks like.

Nathan Richardson: Awesome. Thank you so much. Have a great day, everybody. Thank you.

Awesome. Thank you so much have a great day everybody.

Speaker Change: Okay.

Speaker Change: Thank you. We'll go next now to Julien Dumoulin Smith at Jefferies.

Julien Dumoulin-Smith: We'll go next now to Julien Dumoulin-Smith at Jeff. Hey, good morning, team. Thank you guys very much. Nicely done here, I must say. Kudos.

Hey, good morning team is very much nicely done here I must say.

Julien Dumoulin-Smith: A quick clarification, if I can, on the last one here. You talk about Phase 2. Obviously, it's through 28 here on Phase 1. To what extent is there still kind of a tailwind here as you think about rolling forward into 29 and 30? I mean, whether it's the Phase 2 contribution or whether there's just a further true-up on some of the CapEx making its way into earnings and rate base as you think about, like, run rate 29, if you want to think about it that way. Again, I don't want to try to get too far ahead of your current plan here, but just try to think about some of the residual benefits here as you think over the subsequent two years.

Speaker Change: A couple of quick clarification, if I can't remember the last one here I mean, you're talking about phase two obviously, that's through 28 here on phase one to what extent is there still kind of a tailwind here as you think about rolling forward in at 29, and 30, I mean, whether it's the phase two contribution or whether Theres just a further true up on some of the <unk>.

Speaker Change: Capex, making its way into earnings and rate base as you think about like run rate 29. If you wanted to think about it that way again I don't want to try to get too far ahead of your current plan here, but just trying to think about some of the residual benefits here as you think.

Over the subsequent two years.

Julien Dumoulin-Smith: Thanks, Julien, and great question. So, as we mentioned, we are acutely focused on economic development. What we're always trying to do is make sure that with respect to the information we're giving investors, we are giving you information where we have a clear line of sight and confidence in the numbers and so forth. So, we're going to continue to evaluate that, and once we have a better line of sight with respect to the timing and certainty of that load growth, we'll be providing updates on that. Excellent. Okay, fair enough. I know it's a... Yeah, no, indeed, I think that's the way we'll view it.

Speaker Change: Thanks, Julian and Great question. So yeah. As we mentioned we are acutely focused on economic development well, we're always trying to do is make sure that with respect to the information we're giving investors. We are giving you our information where we have a clear line of sight and confidence in the numbers.

Speaker Change: And so forth. So we're going to continue to evaluate that and once we have a better line of sight with respect to the timing.

Speaker Change: Certainty of that load growth, we'll be providing updates on that.

Speaker Change: Excellent. Okay fair enough thing is that I know it's.

Speaker Change: Yeah no.

Speaker Change: Indeed, I think thats the way we view it.

Julien Dumoulin-Smith: And then related here, I know you mentioned a few different times in your remarks about this, you know, the ICR and just working on the appropriate tariff structure. And then in tandem here, obviously, there's a very sharing band, etc. How would you interpret what we're seeing here today on the midpoint or the mid-range case against where you're targeting in terms of earned return scenarios here? Again, I get that there's a few different permutations. But how would you think about level setting here, especially in the back end of that plan, given the ICR tariff and the contributions from these new days?

Speaker Change: And then related here I know you mentioned a few different times in your remarks about this.

Speaker Change: The ICR and just working on on the appropriate tariff structure and then in tandem here. Obviously, there's there's a very sharing bans et cetera, how would you interpret what we're seeing here today on the mid point or the mid range case.

Against where you're targeting in terms of earned return scenarios here again I get that there's a few different permutations, but how would you think about level setting here, especially in the back into that plan given the ICR tariff and the contributions from these new data centers.

Robert Durian: Yeah, it's another great question, Julien. Yeah, as we think about the timeframe, when we see this data center load ramping up starting in 2027, 2028 and beyond, the higher the level of load growth, it will likely push us into some of those earning sharing mechanisms. But think of that as much later in our plan, the kind of the back half in that 20 and 29 time periods, as we continue to grow the business. And as Lisa indicated, as we think about future phases beyond this initial phase that we see at the big cedar industrial site, that's when you would likely see that triggering those, those earning sharing mechanisms. Right, so 28 really is kind of the first big year that we would anticipate that kicking in.

Yeah. That's another great question Julian Yeah, as we think about all the.

Speaker Change: The time frame when we see this data center load ramping up starting in 2027.

Speaker Change: 2028 and beyond.

Speaker Change: The higher the level of load growth it will likely push us into some of those earnings sharing mechanisms, but think of that as much later than our planned the kind of the back half in that 28, and 29 time periods.

Speaker Change: As we continue to grow the business and as Lisa indicated as we think about a future phases beyond this initial phase that we see at the big Cedar Industrial site.

Speaker Change: That's when you would likely see that triggering those those earning sharing mechanisms.

Speaker Change: Okay.

Speaker Change: Right. So 28 really is kind of the first of the year that we would anticipate that kicking in really.

Robert Durian: Yeah, most likely. There could be opportunities. We continue to talk to several different other interested parties, data centers across our service territory. Big Cedar is just one of the industrial sites where we have these opportunities to scale transmission and mirror that up or combine that up with the resource capacities that we're bringing online for generations to be able to meet these data center loads. As we see other opportunities across the service territory and other industrial sites, the pace of that is largely going to be contingent upon the ability for us to get these other agreements locked up with data centers.

Speaker Change: Most likely.

Speaker Change: There could be opportunities as we.

Speaker Change: We continue to talk to several different other interested parties data centers.

Speaker Change: Across our service territory Big theaters as one of the industrial sites, where we have these opportunities to scale transmission and a mirror that up or combined that up with a resource capacity that we're bringing online for generation to be able to meet these datacenter loads as we see other opportunities across the service territory at other industrial sites.

Speaker Change: The peso that is largely going to be the contingent upon kind of the ability for us to get these other agreements locked up with Datacenters and so right.

Julien Dumoulin-Smith: Right now, we see visibility to that happening in that 28-29 time frame, but it could actually be a little bit quicker than that if we're successful in getting some of these other data center contracts completed more time. Excellent. It's not just load growth upside. It's also sharing band upside, depending on how soon you can. Excellent. Thank you, guys. Thank you.

Speaker Change: Right now, we see visibility to that happened in that 28, 2009 timeframe, but it could actually be a little bit quicker than that if we're successful in getting some of these other data center contracts completed more more timely.

Speaker Change: Excellent so not just load growth upside, it's also sharing band upside depending on how soon you can get this done.

Speaker Change: Excellent. Thank you guys.

Speaker Change: Thank you well go next now to Andrew Wessel at Scotiabank.

Andrew Weisel: We go next now to Andrew Weisel at Scotiabank. Hi. Thanks for joining everybody. Hi.

Andrew Wessel: Hi, everybody.

Speaker Change: Hi.

Robert Durian: First, just a quick one on the 24 guidance reduction, was it just that you were unable to fully offset the weather headwinds from earlier this year or are there other challenges? Yeah, I think of it largely related to the temperature impact. So what we've seen through the first nine months of the year is about 10 cents of negative temperature impacts. We've also had a fairly warm October to start the fourth quarter. But we feel like we have a good line of sight to be able to offset about 75% of all the negative temperature impacts, thanks to the successful efforts by the team.

Andrew Wessel: Excuse me first just a quick one on the 24 guidance reduction was.

Andrew Wessel: Was it just that you were unable to fully offset the weather headwinds from earlier this year or are there other challenges since then.

Speaker Change: Yes, I think of it largely related to the temperature impacts so what we've seen through the first nine months of the year is about 10 cents of negative type.

Speaker Change: Temperature impacts. So we've also had a fairly warm October to start the fourth quarter.

Speaker Change: But we feel like we have a good line of sight to be able to offset about 75% of all the negative temperature impacts. So thanks to the successful efforts by the team.

Robert Durian: Focused on reducing O&M, interest expense, financing expense. And so with that confidence, we are going to stay within our range. And it's about a three cent decrease from the midpoint that we started the year. But like I said, we've been able to offset at least about 75% of the temperature impacts. That's how we factored into what we used for the updated guidance for 2025.

Speaker Change: On reducing O&M interest expense financing expense and so with a confidence we are going to stay within our range.

Speaker Change: It's about a three cent decrease from the midpoint that we started the year, but like I said, we've been able to offset at least about 75% of the other temperature impacts. So that's our that's how we factored into what we used for the updated guidance for 2024.

Okay very good and then on the Capex side I think you said the update includes phase one spending do you also have assumptions around other economic development deals or are you conservatively, excluding anything else until you get contract signed in <unk>.

Robert Durian: very good. Then on the CapEx side, I think you said the phase one spending, do you also have assumptions around other economic development deals or are you conservatively excluding anything else until you get contracts signed? And same thing with the three to 5% load growth, trying to see if there's upside should additional customers show up. Yeah, as we think about future economic development activities more broadly, including data centers, that would all be upside to our plan. So that would increase not only the capital expenditure plan that we put in front of the investor group here today, but also sales, which obviously is a key contributor to helping us with customer affordability.

Speaker Change: The thing with the 3% to 5% load growth I'm trying to see if theres upside should additional customers show up.

Speaker Change: Yeah, as we think about future economic development activities more broadly, including data centers. So that would all be upside to our plan. So that would increase not only are they.

Speaker Change: Capital expenditure plan that we've put in front of the Investor group here today, but also sales, which obviously is a key contributor to helping us with customer affordability. So the more of these data centers that will be a successful landing into our service territory beyond this initial phase I, we feel confident with the think of that is all upside to our plan.

Robert Durian: So the more of these data centers that were successful landing into our service sector or beyond this initial phase that we feel confident with, think of that as all upside to our plan.

Andrew Weisel: Okay, then my last question, I want to push you a little bit more and go back to one of the earlier questions here. Longer term, you know, particularly the latter half of your plan here, I want to talk about upside here. You've talked about accelerating load growth based on what you've already got. You've got a 20% pickup in the peak load, 20% increase in the CapEx plan, potential for additional customers. And I know the limiting factor is always affordability, but you just talked about how these new customers help with that affordability side. And you've got the ICR and other customer protections.

Speaker Change: Okay. Then my last question I wanted to push you a little bit more and go back to one of the earlier questions. Your longer term, particularly the latter half of your plan here I wanted to talk about upside here you you've talked about accelerating loan growth based on what you've already got you've got a 20% pick up in the peak load 20% increase in.

The Capex plan potential for additional customers and I know.

Speaker Change: The limiting factor is always affordability, but you just talked about how these new customers help with that affordability side and you've got the ICR another customer protections you've talked about earnings sharing in the 27 28 and beyond.

Robert Durian: You talked about earnings sharing in the 27, 28 and beyond. Help me understand here, why are we still talking about 6% and not something faster? what's limiting the potential to not at least say the high end of the five to 7% range and what are some factors keeping us from getting 7% growth or maybe even better than that in the outer. or is it just the service? Andrew, just great question. So, you know, this is all about timing. We really want to make sure that we have accurately forecasted in terms of when this load is coming online.

Speaker Change: Help me understand here why why are we still talking about 6% did not something faster.

Speaker Change: What's what's limiting the potential to not at least say the high end of the 5% to 7% range in and what are some factors keeping us from getting 7% growth or maybe even better than that in the outer years or is it to them.

Andrew Wessel: And Andrew just grew.

Andrew Wessel: Great question. So you know this is all about timing.

We really want to make sure that a we have accurately forecasted in terms of your win. This load is is coming online. That's something that you will continue to hear from us on a going forward basis as you know any updates with respect.

Robert Durian: That's something that you will continue to hear from us on a going forward basis as any updates with respect to the timing of that load. Anything, Robert, that you'd like to add? Well, as well, as long as we've known each other, you know we tend to be more conservative than most, and so we're not going to get out in front of our story. And so we'll be sure to share all the information once it's available, but we are going to stay conservative with data center loads until we have those locked up, and then we'll share more information.

Speaker Change: The timing of that load anything Robert that she'd like to add.

Robert Durian: But as well as long as as long as we've known each other you know we tend to be more conservative than most and so we're not going to get out in front of our story and so.

Robert Durian: We'll be sure to share all the information once its available, but we are going to stay conservative with our datacenter loads until we have those locked up and then we'll share more information. So I expect our future updates in the future as we finalize additional agreements.

Robert Durian: So expect future updates in the future as we finalize additional agreements.

Andrew Weisel: Okay, thank you very much. We'll see you soon.

Speaker Change: Okay. Thank you very much flu season.

Operator: Thank you.

Speaker Change: Thank you we'll go next now to Paul Fremont of Ladenburg.

Paul Fremont: We go next now to Paul Fremont of Latin. Hey, thank you very much and congrats on a great update. First question on slide five, just to clarify, you're already at the mid with the one point one gigawatts, right? So I'm not sure I'm understanding sort of the low flat. Say the last part, Paul, of your question. I'm assuming that you've already hit the mid one, you know, roughly one gigawatt. So that would rule out the low flat scenario, right? Just for clarification. Yes, yes. Okay.

Hey, Thank you very much and congrats on a great update.

Speaker Change: First question on slide five.

Paul Fremont: Just to clarify youre already at the mid with the one one gigawatts right. So I'm not sure I'm understanding sort of the low flat area.

Speaker Change: Maybe the last part of your question Amit.

Speaker Change: I'm, assuming that you've already hit that mid one <unk>.

One gigawatt.

So one point or.

Speaker Change: So that would rule out the low flat scenario right I'd just for clarification, yes, yes.

Speaker Change: Okay.

Lisa Barton: And then in terms of discussions or talks, where do you currently stand? Do you think you're closed on any other potential announcements, or would you say that that weighs off? Well, Paul, as we've indicated, we continue to talk to data centers. We continue to reiterate the fact that we're going to be conservative with respect to talking about prospects. We want to make sure that if they're on our land, we've got the land agreements executed, the transmission capacity agreements executed, as well as the energy service agreements executed. And even with that, what we're looking for is to have that very clean line of sight with respect to the timing of that load growth and the magnitude of that load growth.

Speaker Change: And then in terms of.

Speaker Change: Discussions or.

Speaker Change: Talks where where do you currently stand do you think you're close on.

Speaker Change: Any other potential announcements or would you say that that's a ways off.

Speaker Change: Well Paul as we've indicated we continue to talk to data centers are we continue to reiterate the fact that we're gonna be conservative with respect to talking about prospects, we want to make sure that if they're on our land who's got the land agreements.

Speaker Change: Executed the transmission capacity agreements executed as well as the energy service agreements executed and even with that what we're looking for is to have that very clean line of sight with respect to the timing of that load growth and the magnitude of that load growth yeah, we certainly understands that.

Lisa Barton: You know, we certainly understand that these are very large customers and we want to make sure we've got that timing right so you can reflect it accurately in your model.

Speaker Change: Are these are.

Speaker Change: Very large customers and we want to make sure we've got that timing right. So you can reflected accurately in your models.

Robert Durian: And then when you file in Wisconsin next year, would you consider filing something similar in terms of a regulatory plan as what you filed in Iowa? You know, what works, we'll continue to evaluate what we put together there in Wisconsin. You know, the Iowa solution is probably likely somewhat unique to Iowa. But you know, what we're always going to do is look to our jurisdictions and figure out what's the best solution for existing customers, new customers, and shareholders. Remember, in Wisconsin, we have the ability to go in every two years. We didn't have that ability in Iowa, so that resulted in a need for a different construct.

Speaker Change: And then when you file in Wisconsin next year would you consider filing something similar in terms of regulatory plan is what you filed in Iowa.

Speaker Change: You know what works, we will continue to evaluate our what we put together there in Wisconsin.

Speaker Change: The Iowa solution is probably likely somewhat unique to Iowa.

Speaker Change: But you know what we're always going to do is look to our jurisdictions and figure out what's the best solution for existing customers, new customers and shareholders remember in Wisconsin, we have the ability to go in every two years, we didn't have that ability in Iowa, so that resulted in the knee.

Speaker Change: Need for a different construct there.

Paul Fremont: And then last question. In terms of equity, would you consider using junior subordinated debt issuances to achieve some of your equity contributions? Great question, Paul. I consider that as an option for us in the future. We're going to continue to evaluate all the different financing opportunities for us. Fortunately, we don't see a need for, I'll say, equity content financing instruments in 2025, given where we're positioned. But think of that maybe towards the latter half of next year, we'll consider some, some different options for us and provide some more information to the investment community once we make that decision.

Speaker Change: And then last question.

Speaker Change: In terms.

Speaker Change: In terms of equity would you consider using junior subordinated debt issuances to achieve.

Speaker Change: Some of your equity.

Speaker Change: Contribution.

Speaker Change: Yeah, Great question Paul.

Speaker Change: We consider that as an option for us in the future we're going to continue to evaluate all the different financing opportunities for us. Fortunately, we don't see a need for I'll say equity content financing instruments in 2025, given where we're positioned but oh I'd think of that and maybe towards the latter half of next year, we will consider some some.

Speaker Change: A different options for us and to provide some more information to the investment community once we make that decision.

Paul Fremont: Okay, so so what you're saying is that the junior subordinated could constitute some of that billion of equity needs. We'll evaluate that, like I said, when we get to the latter half of 2025 and we'll share some updated information at that time. Great. Thank you so much. Thanks, Paul. Thank you.

Speaker Change: Okay. So so what you're saying is that the junior subordinated could constitute some of that $1 billion of equity need that you've identified.

Speaker Change: Oh, we'll evaluate that like I said, when we get to a kind of a latter half of 'twenty 'twenty five and we'll share some updated information at that time.

Speaker Change: Great. Thank you so much.

Speaker Change: Thanks, Paul.

Thank you. We'll go next now to audio Gandhi at Wolfe Research.

Robert Durian: We go next now to Adi Al-Gandhi at Wolf Research. on your long-term EPS growth rate. clarify whether the base for that is now the revised 24 guidance. or us differently, have you? based lower as it relates to your long-term. Yeah, historically, and we're going to continue with this method, we use the current year information. And so with the 2024 updated earnings guidance, the midpoint is roughly around $3.03. And so that's what you should use for your long term base going forward. Got it, sorry, just to clarify there. think of that. The Lower Base Implying Lower Longer-Term Earnings or not?

Speaker Change: Hi, Good morning, Thank you for taking my questions and your long term EPS growth rate could you clarify whether the base for that is now revised 24 guidance midpoint or asked differently have you sort of repeat lower as it relates to your long term earnings growth trajectory.

Speaker Change: Okay.

Speaker Change: Yeah, historically, and we're going to continue with this method we use the current year, our information and so with the 'twenty 'twenty four updated earnings guidance. The midpoint is roughly around $3.03 and so that's what you should use for your long term base going forward.

Speaker Change: Okay.

Speaker Change: Got it sorry, just to just to clarify there should be.

Speaker Change: Should we think of that as did the lower base, implying lower longer term earnings are or are not it is.

Speaker Change: The point I'm getting to.

Adi Al-Gandhi: Yeah, no, think of us, we're still committed to the long term, a solid 6% growth rate.

Yeah, I don't think of US we're still committed to the long term.

Speaker Change: A solid 6% growth rate you.

Robert Durian: You will see 2024 was a lower year for us to start with, but we do see higher levels of growth in our kind of range over the longer And then just moving to your financing plan, Robert. give us some insights into the level. into your plan. Yeah, so we look over the next four years through 2028, we did provide some information in one of the supplemental slides that indicates how we're going to finance the roughly $11 billion of capital expenditure plans. So like we talked about, in my prepared remarks, majority of that's going to come from cash flows from operations, including tax credit monetization.

Speaker Change: You will see a 'twenty 'twenty four it was a lower year for us to start with but we do see higher levels of growth in our kind of range over the longer term.

Speaker Change: Got it. Thank you for clarifying that and then just moving to your financing plan. Robert could you just give us some insights into the level of tax credits that you're baking into your plan and then what credit metrics are talking to them.

Robert Durian: Yeah. So when you look over the next four years through 2020, we did provide some information in one of the supplemental slides that indicates how we're going to finance the roughly $11 billion of capital expenditure plans. So like we talked about in my prepared remarks, a majority of that is going to come from cash flows from operations, including tax credit monitor.

Speaker Change: <unk>.

Robert Durian: We're targeting roughly about $1.6, $1.7 billion of tax credit monetization over that time period. With the strong renewables that we have in place now and the additions we're making with new renewables as well as energy storage, we are going to average probably somewhere in the neighborhood of $300, almost $400 million a year in tax credits. And with the success that we've had with monetizing those to date, we feel very confident we'll be able to do that in the future. So that'll roughly be, like I said, about $1.6, $1.7 billion over that five-year time period.

Speaker Change: We're targeting roughly about 1.6 $1 $7 billion of tax credit amortization over that time period with the strong renewables that we have in place now and the additions we're making with.

Speaker Change: New renewables as well as energy storage, we are gonna have averaged probably somewhere in the neighborhood of 300, almost $400 million a year in tax credits and with the success that we've had with monetizing those to date. So we feel very confident would been able to do that in the future and so that'll roughly be able to like I said about 1.6 $1 $7 billion over that five year.

Speaker Change: Hi, Barry.

Speaker Change: That's very helpful. Thank you and one last quick question.

Robert Durian: As you're speaking to additional customers about future... another set of revision before. Is it just going to be the Yeah, we're going to be looking and aligning with some of these new data center loads.

Speaker Change: You're speaking to additional customers about future opportunities should we should we expect another sort of revision before Q3 of next year or is that is that something you'd consider or.

Speaker Change: Is it just going to be this consistent cadence of Q3 Capex updates.

Speaker Change: Yeah, we're gonna be looking and aligning with some of these new data center load. So expect a revision, possibly the first half of next year.

Operator: So expect a revision possibly the first half And ladies and gentlemen, just a quick reminder, star 1, please, for questions today.

Speaker Change: That's helpful. Thank you for taking my questions.

Speaker Change: And ladies and gentlemen, just a quick reminder, star one please for questions. Today, We will go next to Bill <unk> at UBS.

Bill Appicelli: We'll go next now to Bill Appicelli at... Hi, Bill. Just going back to the question on the 25 guidance, so. I guess, what is the full impact that you're to date for weather on 24, if it was a more normal weather? Ben Moore at the 306 or at the midpoint of the original guidance. Yeah, like I think in my prepared remarks, Bill, so weather so far through the first three months is about a 10 cent drag on earnings in 2024. We do expect October to add to that, given it's been pretty warm here in the upper Midwest.

Speaker Change: Hi, good morning.

Speaker Change: Just going back to the question on the 25 guidance so.

Speaker Change: I guess, what what is the full impact that your year to date for weather.

Speaker Change: On 24, I think it was a more normal weather would you you've.

Speaker Change: Then more at the screen and six are at the midpoint of the original guidance.

Speaker Change: Yeah like I like I think in my prepared remarks, bill so whether so far through the first three months is about a 10 cent drag on earnings in 'twenty 'twenty four we do expect our October.

October to add to that given it's been pretty warm here in the upper Midwest.

Robert Durian: And so, in total, it's probably closer to maybe $0.12 for the full year. We've been successful, like I indicated before, of being able to offset a majority of that, roughly about 75% of that, through a series of what I would characterize as non-sustainable offsets, tax benefits, some portion of our O&M savings this year, as well as we're going to benefit from the reversal of an ATCR we reserved as a result of the recent FERC decision. So, thinking of that offsetting is really kind of to position us to get back to that $3.03 that we've indicated as the midpoint of our guidance for 2024.

Speaker Change: And so in total it's probably closer to maybe 12 cents for the full year.

Speaker Change: We've been successful like I indicated before of being able to offset a majority of that roughly about 75% of that through a series of what I would characterize as non sustainable offsets tax benefits are some portion of our O&M savings this year as well as we're in a benefit for the reversal of a on a T C L.

Speaker Change: Already reserved as result of the recent FERC decision and so so think of that are offsetting as really kind of position, let's get back to that 303 that we'd been indicated was the midpoint of our guidance for 2024 right.

Robert Durian: Okay, and then we should assume that that reverts back to normal next year, right? So in terms of the growth year over year, right? We're going to get the weather back presumably, or that's what you're assuming normal weather and the guide for 25, right? So is there any other factors in terms of timing on costs or? other things that are impacting. growth year-over-year, we should think about. You talked about, you know, higher financing costs and depreciation. and any other color there. Yeah, yeah, so think of, like I indicated, a majority of the offsets that we've incurred in 2024 to that temperature, I would consider as non-sustainable.

Speaker Change: Alright, Okay and then so.

Speaker Change: But we should assume that that reverts back to normal next year right. So in terms of.

Speaker Change: The growth year over year, right, you're going to get the weather back presumably or that's what you were assuming normal weather and the guy for 25 right. So is it are there any other factors in terms of timing on costs or other.

Speaker Change: Other things that are impacting the growth year over year, we should think about you talked about you know higher financing costs and depreciation.

Speaker Change: Any other color there.

Speaker Change: Yeah, Yeah. So I think of like I indicated a majority of the offsets that we've incurred in 2024 to that temperature I would consider as non sustainable. So we will get back to normal weather in 2025, but we won't have some of those non sustainable upsets in 'twenty 'twenty four.

Robert Durian: So we will get back to normal weather in 2025, but we won't have some of those non-sustainable offsets in 2024. So it neutrals out and kind of gets us back to a position of having a normal run rate of a 6% growth off of that $3.03 in 2025 with the earnings.

Speaker Change: And neutrals out and kind of gets us back to a position of having a normal run rate of a 6% growth off of that $3.03 in 2025 with the earnings guidance.

Robert Durian: Bill, one of the one things that I would add is that we are going to continue to focus on looking at ways and identifying ways of using technology and so forth to drive costs out of the business, as well as we're going to continue our focus on economic development efforts. And the more we can do with respect to economic development and bringing some of those loads on earlier are just an acute focus of ours. Okay, great.

Speaker Change: So one of the one thing that I would add is that we are going to continue to focus on looking at ways and identifying ways of using technology and so forth to drive costs out of the business.

As well as we're going to continue our focus on economic development efforts and the more we can do with respect to economic development and bringing some of those loads on earlier.

Speaker Change: Or just no.

Speaker Change: An acute focus of ours.

Speaker Change: Okay, Great and then just what is the more near term load growth assumption paper for 25 or 26, I appreciate it's going to be ramping.

Robert Durian: And then... What is the more near-term load growth assumption, say, for 25 or 26? I appreciate it's going to be ramping as the load develops and the economic, you know, initiatives take hold. But maybe when we think about the sort of the next year or two on the front end of that, is it at the 3 percent or is it something a little bit below that? How should we think about the near-term? Yeah, when you when you think about the the load growth for us, the data centers that we're referring to, including the initial phase of the data centers are coming into our big cedar industrial site, think of those as starting up on a larger scale in the 2027 timeframe.

Speaker Change: The load develops and the economic you know initiatives take hold but maybe when we think about this over the next year or two on the front end of that is it at the 3% or is it something a little bit below that how should we think about the near term load growth.

Speaker Change: Yeah. When you think about the the load growth for us the data centers that we're referring to include an initial phase of the data centers that are coming into our big Cedar industrial So I think of those as starting up.

Speaker Change: On a larger scale in the 2027 timeframe. So in the next year or two we're expecting fairly consistent loan growth to what we've seen historically think of that as maybe in that one half of 1% or 1% range.

Robert Durian: So in the next year or two, we're expecting fairly consistent load growth to what we've seen historically think of that as maybe in that one half of 1% or 1% range. Okay. All right. Great. Thank you.

Speaker Change: Okay, Alright, great. Thank you.

Yeah.

Speaker Change: Yeah.

Operator: And ladies and gentlemen, it appears we have no further questions this morning.

Speaker Change: And ladies and gentlemen, it appears we have no further questions. This morning, Ms Gill I'd like to turn things back to you for any closing comments.

Susan Gille: Ms. Gille, I'd like to turn things back to you for any questions.

Susan Gille: 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.

Susan Gil: With no more questions. This concludes our call a replay will be available on our investor website.

Susan Gil: Thank you for your continued support of Alliant energy and feel free to contact me with any follow up questions.

Operator: Thank you, Ms. Gill.

Speaker Change: Thank you Ms. Gil again, ladies and gentlemen that will conclude the Alliant Energy's third quarter 2024 earnings call again, thanks, so much for joining US everyone and we wish you all a great day Goodbye.

Operator: Again, ladies and gentlemen, that will conclude the Alliant Energy's third quarter 2024 earnings call.

Operator: Again, thanks so much for joining us, everyone, and we wish you all a great day.

Susan Gil: Uh-huh.

Susan Gil: Uh huh.

Susan Gil: Hum.

Susan Gil: Uh huh.

Susan Gil: [music].

Susan Gil: Mhm.

Susan Gil: [music].

Susan Gil: Hum.

Susan Gil: [music].

Susan Gil: Oh.

Susan Gil: [music].

Susan Gil: Hum.

Susan Gil: [music].

Susan Gil: Mhm.

Susan Gil: [music].

Q3 2024 Alliant Energy Corp Earnings Call

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