Q1 2025 Alliant Energy Corp Earnings Call

Operator: Thank you for holding and welcome to Alliant Energy's first quarter 2025 earnings conference call. At this time, all answers are in listen-only mode.

Thank you for holding and welcome to Alliant and need your Energy's first quarter 'twenty 25 earnings conference call.

At this time all once you are in listen only mode. Today's conference call is being recorded I would now like to turn the call over to your host Susan <unk> Investor relation manager at Alliant energy.

Susan Gille: Today's conference call is being recorded, and I would now like to turn the call over to your host, Susan Gille, and Restoration Manager at Alliant Energy. I would like to thank all of you on the call and the webcast for joining us today. We appreciate your participation.

Good morning.

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 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. We issued a news release last night announcing Alliant Energy's first quarter financial results and reaffirmed our 2025 earnings guidance range. We also updated our capital expenditure and financing plans for years 2025 through 2028.

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.

We issued a news release last night announcing Alliant Energy's first quarter financial results and reaffirmed our 'twenty twenty-five earnings guidance range.

We also updated our capital expenditure and financing plans for years 2025 through 2028.

Susan Gille: This release as well as earnings presentation will be referenced during today's call and are available on the investor page of our website at www.AlliantEnergy.com.

This release as well as earnings presentation will be referenced during today's call and are available on the investor page of our website at Www Dot Lane energy Dotcom.

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 risk 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.

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.

Lisa Barton: At this point, I'll turn the call over to Lisa. Thank you, Sue. Good morning, everyone. And thank you for joining us. 2025 is off to a strong start. I'm pleased to share meaningful progress supporting both our near term and long term objectives, clear evidence of the strength, resilience and adaptability of our strategy and business Our first quarter results delivered more than 25% of our earnings guidance midpoint and we are positioned to achieve our 2025 earnings objectives while advancing our key strategic priorities, positioning us well for the year. Our commitment to our customers, communities, investors, and employees remains at the heart of everything we do.

Lisa Barton: At this point I'll turn the call over to Lisa.

Lisa Barton: Thank you Sue good morning, everyone and thank you for joining US 2025 is off to a strong start I'm pleased to share meaningful progress supporting both our near term and long term objectives clear evidence of the strength resilience and adaptability of our strategy and business model are.

Lisa Barton: First quarter results delivered more than 25% of our earnings guidance midpoint, and we are positioned to achieve our 2025 earnings objectives, while advancing our key strategic priorities.

Lisa Barton: Turning us well for the year.

Lisa Barton: Our commitment to our customers communities investors and employees remains at the heart of everything we do.

Lisa Barton: As I've mentioned in previous calls, we are relentlessly focused on supporting economic development and growth in our states.

Lisa Barton: As I've mentioned in previous calls we are relentlessly focused on supporting economic development and growth in our states and today I'm pleased to provide meaningful and exciting updates supporting our development milestones first quarter achievements and share details on our updated capital expenditure plans as well.

Lisa Barton: And today, I'm pleased to provide meaningful and exciting updates supporting our development milestones, first quarter achievements, and share details on our updated capital expenditure plans as we advance our growth strategy.

Lisa Barton: We advanced our growth strategy.

Lisa Barton: I will then turn the call over to Robert to provide additional details related to our quarterly financial performance, risk management efforts, as well as our updated financing plans and regulatory matters. Achieving scalable growth in today's complex environment is akin to solving Rubik's Cube. It demands precision, agility, and a clear understanding of how every move influences the bigger picture. We are simultaneously solving all sides of our own Rubik's Cube, addressing customer needs, supporting economic development and growth in our states, collaborating with key stakeholders, and delivering sustainable investor returns.

I will then turn the call over to Robert to provide additional details related to our quarterly financial performance risk management efforts as well as our updated financing plans and regulatory matters.

Lisa Barton: Achieving scalable growth in today's complex environment is akin to solving excuse demands precision agility and a clear understanding of how every move influences. The bigger picture. We are simultaneously solving all sides of our own rubik's cube addressing customer needs supporting economic development.

Lisa Barton: Mentioned growth in our states collaborating with key stakeholders and delivering sustainable investor returns.

Lisa Barton: Let me recap our investment growth timeline over the past six months. In November, we announced two energy supply agreements with data center companies locating in the Big Cedar Industrial Center in Cedar Rapids, Iowa, adding an initial 1.1 gigawatts of data center demand for what we refer to as the first phase at Big Cedar. The corresponding capital plans released last November represented a 20% increase from the prior year and included the additional capacity resources needed to serve the first phase at Big Cedar and to adapt to MISO accreditation changes. We have continued our strong momentum in support of our economic development efforts this quarter by solidifying the resources needed for a second phase for one of our data center customers at Big Cedar, which is an additional 800 megawatts of demand.

Lisa Barton: Let me recap our investment growth timeline over the past six months in November we announced two energy supply agreements with data center companies locating in the Big Cedar Industrial Center in Cedar Rapids, Iowa.

Adding an initial one one gigawatts of data center demand for what we refer to as the first phase of Big Cedar.

Lisa Barton: The corresponding capital plans released last November represented a 20% increase from the prior year and included the additional capacity resources needed to serve the first phase of big Cedar and to adapt to myself accreditation changes.

Lisa Barton: We have continued our strong momentum in support of our economic development efforts this quarter by solidifying the resources needed for a second phase for one of our data center customers are big Cedar, which is an additional 800 megawatts of demand.

Lisa Barton: executing a new energy supply agreement with a data center customer in Beaver Dam, Wisconsin, and reaching an agreement with one of our Iowa data center customers to use existing capacity to serve them earlier, increasing our forecasted peak load in 26 and 27. The Alliant Energy Advantage is our commitment to help grow the economies of Iowa and Wisconsin and meet the needs of our customers by being as creative and adaptive as possible to align with their desired timeline. To summarize our recent success on this front, we now have three major data center developments with fully executed ESAs totaling 2.1 gigawatts of demand, which represents a greater than 30% increase in our peak demand.

Lisa Barton: Executing a new energy supply agreement with a data center customer and Beaver Dam, Wisconsin.

Lisa Barton: And reaching an agreement with one of our Iowa data center customers to use existing capacity to serve them earlier, increasing our forecasted peak load and 26 and 27.

Lisa Barton: The Alliant energy advantage is our commitment to help grow the economies of island, Wisconsin and meet the needs of our customers by being as creative and adaptive as possible to align with their desired timelines.

Lisa Barton: To summarize our recent success on this front, we now have three major data center developments with fully executed E. S. A's totaling 2.1, gigawatts of demand, which represents a greater than 30% increase in our peak demand.

Lisa Barton: We're accelerating our load ramp for one of the two data centers at Big Cedar using existing resources. We're pursuing additional growth opportunities, positioning ourselves and our states for meaningful and sustainable long-term growth. On slide four, we provide our updated demand projections used to develop our capital expenditure If actual demand exceeds the current estimated demand in our plan, or if we sign additional energy supply agreements, we would serve any incremental load through a combination of existing or new resources, short-term market purchases, and or load receivables. To help investors and stakeholders navigate the complexity of growth announcements, we focus our reporting exclusively on customer loads supported by fully executed electric service agreements, backed by substantial customer commitments, to ensure our growth is highly credible and sustained.

Lisa Barton: We're accelerating our load ramp for one of the two data centers are big Cedar using existing resources.

Lisa Barton: We're pursuing additional growth opportunities positioning ourselves and our states for meaningful and sustainable long term growth.

Lisa Barton: On slide four we provide our updated demands predicts projections used to develop our capital expenditure plan.

Lisa Barton: If actual demand exceeds the current estimate of demand in our plan or if we signed additional energy supply agreements, we would serve any incremental load through a combination of existing or new resources short term market purchases and the work load response.

Lisa Barton: To help investors and stakeholders navigate the complexity of growth announcements, we focus our reporting exclusively on customer load supported by fully executed electric service agreements backed by substantial customer commitments to ensure our growth is highly credible.

Lisa Barton: And sustained.

Lisa Barton: These advancements in economic development and growth have led to our CapEx update reflecting a nearly 26% increase from where we were 18 months ago.

Lisa Barton: These advancements in economic development and growth have led to our Capex update reflecting a nearly 26% increase from where we were 18 months ago.

Lisa Barton: as shown on slide 5. This translates into a 2024 to 2028 forecasted investment CAGR of nearly 11%, with significant energy resource investment opportunities extending beyond 2028, as profiled on slide 6. In aggregate, our four-year CapEx plan for 2025 through 2028 increased by approximately $600 million from our November 2024 update. The updated resource plan behind the CapEx plan strikes the right balance in optimizing existing resources and extending value at existing sites, supporting reliability and affordability. Utilizing short-term capacity agreements and load response to accelerate economic development. and adding new generation to grow alongside our customers in a responsible manner, allowing us to confidently scale new energy resources.

Lisa Barton: As shown on slide five this translates into a 'twenty 'twenty four to 'twenty 'twenty eight forecasted investment CAGR of nearly 11% with significant energy resource investment opportunities extending beyond 2028 as profiled on slide six.

In aggregate, our four year Capex plan for 2025, excuse me through 'twenty 'twenty eight increased by approximately $600 million from our November 'twenty 'twenty four update.

Lisa Barton: The updated resource plan behind the Capex plan strikes, the right balance and optimizing existing resources and extending value at existing sites supporting reliability and affordability youth.

Lisa Barton: Utilizing short term capacity agreements and load response to accelerate economic development.

Lisa Barton: And adding new generation to grow alongside our customers in a responsible manner, allowing us to confidently scaled new energy resources.

Lisa Barton: Our efforts to drive community development and enhance our growth trajectory encompasses data centers as well as current and prospective commercial and industrial customers. I am pleased to report that there continues to be strong interest in locating and growing in our service areas, both in Iowa and Wisconsin. Through disciplined planning and proactive execution, we have positioned our company, customers, and investors for success in an uncertain macroeconomic environment. The capital plan update reflects proactive planning and flexibility, allowing us to lean into new natural gas investments, invest in our existing generation and distribution systems to support resiliency, reliability, and reduce risks in the face of policy uncertainty.

Lisa Barton: Our efforts to drive community development and enhance our growth trajectory encompasses data centers as well as current and prospective commercial and industrial customers.

Lisa Barton: I am pleased to report that there continues to be strong interest in locating and growing in our service areas, both in Iowa and Wisconsin.

Lisa Barton: Through disciplined planning and proactive execution, we have positioned our company customers and investors for success in an uncertain macroeconomic environment. The capital plan update reflects proactive planning and flexibility, allowing us to lean into new natural gas investments.

Lisa Barton: That's been our existing generation and distribution systems to support resiliency reliability and reduce risk in the face of policy uncertainty.

Lisa Barton: New natural gas resources provide reliable and dispatchable capacity resources that complement our robust renewable fleet. Investments in our existing generation resources, such as our advanced gas projects in WPL, and WPL's extension of the use of Edgewater and Columbia generating stations until the end of the decade, provides the additional reliability to meet growing demand and is responsive to the evolving MISO resource adequacy requirements. Lastly, extending the timing of some of our renewable and battery investments allows us to reduce risks related to tariff and tax policy uncertainty, while also lengthening our capital expenditure plan into the future, strengthening our position to deliver financial consistency over the long term.

Lisa Barton: New natural gas resources provide reliable and dispatch little capacity resources that compliment our robust renewable fleet.

Lisa Barton: This meant in our existing generation resources, such as our advanced gas projects in W. P. L and Wfl's extension of the use of Edgewater and Columbia generating stations until the end of the decade provides the additional reliability to meet growing demand and is responsive to the evolving MISO resource.

Lisa Barton: Adequacy requirements.

Lisa Barton: Lastly, extending the timing of some of our renewable and battery investments allows us to reduce risks related to tariff and tax policy uncertainty, while also lengthening our capital expenditure plan into the future strengthening our position to deliver financial consistency over the long term.

Lisa Barton:

Lisa Barton: With the energy supply agreements executed for our three data center customers, our attention is now focused on obtaining regulatory approval of the individual customer rates, or ICRs. The IUC is currently reviewing an ICR contract filed earlier in the year for one of our data center customers in Iowa. The second Iowa ICR contract will be filed this quarter reflecting an accelerated load reduction. And late last month, we filed an ICR for the Beaver Dam Data Center in Wisconsin. As we've highlighted in previous calls, we are committed to ensuring all ICRs achieve a win-win-win for existing customers, for new customers, and our shareowners, which will be demonstrated in these confidential filings.

Lisa Barton: With the energy supply agreements executed or are three data center customers. Our attention is now focused on obtaining regulatory approval of the individual customer rates or icr's.

Lisa Barton: The I O C is currently reviewing and I are ICR contract filed earlier in the year for one of our data center customers in Iowa the.

Lisa Barton: Second I want ICR contract will be filed this quarter, reflecting an accelerated load ramp.

Lisa Barton: And late last month, we filed an ICR for the Beaver Dam data center in Wisconsin.

Lisa Barton: As we've highlighted in previous calls we are committed to ensuring all I see are has achieved a win win win for existing customers for new customers and our shareowners, which will be Jim it demonstrated in these confidential filings.

Lisa Barton: New data center loads are expected to boost energy sales. This increase in sales will help distribute fixed costs and transmission expenses across a larger customer base, contributing to more stable and manageable rates for the customers we have the privilege to serve. Alliant Energy operates in business-friendly states that are well-positioned for regional growth and economic development, and we are proud to partner with our communities to turn growth potential into real, long-term impact. Our collaborative partnership with regulators, policy makers, and local communities enables us to deliver successful outcomes. I'm proud of our team's proactive and impactful engagement, which serves as the cornerstone of our success, delivering meaningful outcomes and greater value for all our stakeholders.

Lisa Barton: New data center loads are expected to boost energy sales. This increase in sales will help distribute fixed costs and transmission expenses across a larger customer base contributing to more stable and manageable rates for the customers we have the privilege to serve.

Lisa Barton: Alliant energy operates in business friendly states that are well positioned for regional growth and economic development and we are proud to partner with our communities to turn growth potential into real long term impacts.

Lisa Barton: Our collaborative partnership with regulators policymakers and local communities enables us to deliver successful outcomes.

Lisa Barton: I'm proud of our team's proactive and impactful engagement, which serves as the cornerstone of our success delivering meaningful outcomes and greater value for all our stakeholders.

Lisa Barton: Alliant Energy is here to support not only the customers we currently serve, but also to ensure we are supporting the needs of future customers and enabling community growth across our service territory.

Lisa Barton: Alliant energy is here to support not only the customers. We currently serve but also to ensure we are supporting the needs of future customers and enabling community growth across our service territory.

Lisa Barton: Before I turn the call over to Robert, I would like to tackle head-on questions regarding our strategy in the event the Inflation Reduction Act, or IRA, is repealed or if tax credits are scaled back. Renewable generation and energy storage tax credits have fueled economic growth and onshoring, eliminating the tax credits when unfortunately and unnecessarily increased costs for customers. Our delegations understand how valuable tax credits and transferability are to Alliant and our customers. and we believe they will advocate for a balanced, careful approach to any legislative change. Iowa's wind resources are among the best in the country, and our customers are benefiting from those investments.

Lisa Barton: Before I turn the call over to Robert I would like to tackle head on questions regarding our strategy in the event the inflation reduction act or I or a is repealed or if tax credits are scaled back.

Lisa Barton: Renewable generation and energy storage tax credits has fueled economic growth and onshoring, eliminating the tax credits, what unfortunately, and unnecessarily increased costs for customers are delegations understand how valuable tax credits and transferability or two alliance and our customers.

Lisa Barton: And we believe they will advocate for a balanced careful approach to any legislative changes.

Lisa Barton: I was wind resources are among the best in the country and our customers are benefiting from those investments. We will continue to take an all of the above approach in new generation resources, which includes a mix of wind batteries and natural gas to ensure we maintain a balanced and diverse energy resource mix.

Lisa Barton: We will continue to take an all-of-the-above approach in new generation resources, which includes a mix of wind, batteries, and natural gas, to ensure we maintain a balanced and diverse energy resource system. Active management of our CapEx and resource plans means we have taken the prudent and proactive approach of safe harboring wind and energy storage projects. As a result, 100% of the renewable and energy storage CAPEX in our plan is currently safe-harbored through 2028. And as we continue to execute our strategy, we'll continue to proactively de-risk our strategy and remain well-positioned to quickly adapt to a dynamic environment.

Lisa Barton: Active management of our Capex and resource plans means we have taken the prudent and proactive approach of safe harboring wind and energy storage projects.

Lisa Barton: As a result, 100% of the renewable and energy storage Capex in our plan is currently safe harbored through 2020 eight.

Lisa Barton: And as we continue to execute our strategy, we'll continue to proactively derisk, our strategy and remain well positioned to quickly adapt to a dynamic environment.

Lisa Barton: In closing, I would like to extend my deepest gratitude to our dedicated team of employees and for their unwavering commitment to our purpose of serving customers and building stronger communities. Your hard work and dedication are the backbone of our operational success and the driving force behind our strategic progress.

Lisa Barton: In closing I would like to extend my deepest gratitude to our dedicated team of employees and for their unwavering commitment to our purpose of serving customers and building stronger communities. Your hard work and dedication are the backbone of our operational success and the driving force behind.

Robert Durian: Our strategic progress I will now turn the call over to Robert.

Robert Durian: I will now turn the call over to Robert. Thank you, Lisa. Good morning, everyone. Yesterday, we announced first quarter 2025 earnings of $0.83 per share compared to $0.62 per share in the first quarter of 2024. Our earnings are ahead of plan, despite the negative temperature impacts on electric and gas sales in the first quarter of 2020. Our quarter-over-quarter variances were mainly driven by the higher revenue requirements from capital investments at both IPO and WPO, temperature impacts on retail electric and gas sales, and the timing of income tax expense, which we'll reverse later this year. These positive drivers were partially offset by higher depreciation and financing.

Thank you Lisa good morning, everyone.

Speaker Change: Yesterday, we announced first quarter 2025 earnings of 83 cents per share compared to 62 cents per share in the first quarter of 2024.

Robert Durian: Our earnings are ahead of plan, despite the negative temperature impacts on electric and gas sales in the first quarter of 2025.

Robert Durian: Our quarter over quarter variances were mainly driven by the higher revenue requirements from capital investments at both IPL and dummy pill.

Robert Durian: Temperature impacts on retail electric and gas sales and the timing of income tax expense, which will reverse later this year.

Robert Durian: These positive drivers were partially offset by higher depreciation and financing expenses.

Robert Durian: Temperatures were warmer than normal in the first quarter of 2025, resulting in decreased electric and gas margins of $0.03 per share. In comparison, the winter temperatures in the first quarter of 2024 were some of the warmest on record, which decreased our electric and gas margins by approximately 8%. Excluding the impacts of mild temperatures, the margins from our retail electric sales were higher than the first quarter of 2024, due to growth in the number of customers and increased use per meter across all retail customer classes at our Wisconsin utility.

Robert Durian: Temperatures were warmer than normal in the first quarter of 2025, resulting in decreased electric and gas margins of three cents per share.

Robert Durian: In comparison, the winter temperatures in the first quarter of 'twenty 'twenty, four where some of the warmest on record, which decreased our electric and gas margins by approximately eight cents per share.

Robert Durian: Excluding the impacts of mild temperatures the margins from a retail electric sales were higher than the first quarter of 'twenty 'twenty four due to growth in the number of customers and increased use per meter across all retail customer classes at our Wisconsin utility.

Robert Durian: To assist you in modeling our quarterly earnings this year, I want to provide some additional context to the variance driver related to the timing of income. Income tax expenses recorded each quarter based on an estimated annual effective tax rate and the proportion of full-year earnings generated each quarter. As shown on slide nine of our supplemental slides, this causes fluctuations in the amount of tax expenses quarter over quarter, but it will not have an impact on the full year earnings.

To assist you in modeling our quarterly earnings this year I want to provide some additional context to the variance driver related to the timing of income tax expense.

Robert Durian: Income tax expenses recorded each quarter based on an estimated annual effective tax rate and the proportion of full year earnings generated each quarter.

Robert Durian: As shown on slide nine of our supplemental slides this causes fluctuations in the amount of tax expenses quarter over quarter, but it will not have an impact on our full year earnings.

Robert Durian: Yeah.

Robert Durian: With a solid first quarter behind us, we are reaffirming our 2025 earnings guidance range of $3.15 to $3.25 per share. Our ability to consistently deliver solid financial results is supported by our efforts to provide customer value, including extending the value of existing resources, making smart investments, and controlling operating costs, all while receiving constructive regulatory outcomes. I'm proud to share how our employees are continuing their steadfast focus on creating value for our customers while managing risk. The following are some recent examples of their success. Reiterating what Lisa shared, we have completed nearly all of our planned Safe Harbor activities with the intention of preserving the qualification of tax credits for future energy storage and renewable projects expected to be placed into service through 2028.

Robert Durian: With a solid first quarter behind us we are reaffirming our 2025 earnings guidance range of $3.15 to $3.25 per share.

Robert Durian: Our ability to consistently deliver solid financial results as supported by our efforts to provide customer value, including extending the value of existing resources, making smart investments and controlling operating costs, all while receiving constructive regulatory outcomes.

Speaker Change: I'm proud to share how our employees are contributing their steadfast focus on creating value for our customers while managing risk. The following are some recent examples of their success.

Speaker Change: Reiterating what Lisa shared we have completed nearly all of our plants safe harbor activities with the intention of preserving the qualification of tax credits for future energy storage and renewable projects expected to be placed into service through 2028.

Robert Durian: Our team has done a great job mitigating tariff exposure for our customers. With minimal exposure to the batteries in our updated capital plan, as the batteries are either in our possession or in transit, and the batteries in transit are expected to be subject to only a 20% tariff. We estimate our total tariff exposure is approximately 1-2% of our $11.5 billion updated capital expenditure. Prior to further mitigation by our... Our team also successfully sold existing capacity lengths available at both our utilities into the recent MISO Capacity Auction, resulting in meaningful benefits for our customers. And lastly, we are utilizing our individual customer rate construct in both states, which allows us to capture growth from economic development activities occurring within our service territory, which will in turn absorb a portion of our fixed costs, helping mitigate costs for all customers in the future.

Speaker Change: Our team has done a great job mitigating tariff exposure for our customers with minimal exposure to the batteries and our updated capital plan as the batteries are either in our possession or in transit and the batteries and transit are expected to be subject to only a 20% tariff.

Speaker Change: We estimate our total tariff exposure is approximately 1% to 2% of our 11 $5 billion of updated capital expenditure plan.

Speaker Change: Prior to further mitigation by our team.

Speaker Change: Our team also successfully sold existing capacity life available at both of our utilities into the recent MISO capacity auction, resulting in meaningful benefits for our customers.

Speaker Change: And lastly, we are utilizing our individual customer rig construct in both states, which allows us to capture growth from economic development activities occurring within our service territory, which will in turn absorb a portion of our fixed costs, helping mitigate cost for all customers in the future.

Robert Durian: Turning to financing, in conjunction with our updated capital expenditure plans, we have updated our 2025 through 2028 financing plan. The anticipated financing sources for our $11.5 billion capital expenditure plan are included on slide 10. Cash from operations and anticipated proceeds from tax credit modernization make up almost 50% of our financing. New debt financing, net of maturities, accounts for approximately 40%, while new common equity issuances account for approximately 12% of the total funding sources for the updated budget. We plan to launch an at-the-market, or ATM, program this year and continue our shareholder directive. both of which support the new common equity issuances assumed in our plan.

Speaker Change: Turning to financings in conjunction with our updated capital expenditure plans, we have updated our 2025 through 2028 and financing plans.

Speaker Change: The anticipated financing sources for our 11 5 billion dollar capital expenditure plan are included on slide 10.

Speaker Change: Cash from operations and anticipated proceeds from tax credit modernization make up almost 50% of our financing plan.

Speaker Change: New debt financing net of maturities accounts for approximately 40%, while new common equity issuances account for approximately 12% of the total funding sources for the updated plan.

Speaker Change: We plan to launch an aftermarket or ATM program. This year and continue our shareowner direct plan, both of which support the new common equity issuance is assumed in our plan.

Robert Durian: While our updated financing plans assume raising the new common equity ratably in 2026 through 2028, we believe the ATM provides us flexibility on the timing as we continue to monitor and assess market. With this updated financing plan, we are committed to maintaining our current investment grade credit rating. Tax credit monetization through transferability continues to provide benefits by reducing customer costs and providing an alternative source of financing for a portion of our capital expenditures. Along with the rest of the utility industry, we continue to monitor developments with different legislative proposals and advocate for legislative provisions that would be beneficial for our customers.

Speaker Change: While our updated financing plans assume raising the new common equity Ratably in 2026 through 2028, we believe the ATM provides us flexibility on the timing as we continue to monitor and assess market conditions.

Speaker Change: With this updated financing plan, we are committed to maintaining our current investment grade credit ratings.

Speaker Change: Tax credit monetization through transferability continues to provide benefits by reducing customer costs and providing an alternative source of financing for a portion of our capital expenditure plans.

Speaker Change: Along with the rest of the utility industry, we continue to monitor developments with different legislative proposals and advocate for legislative provisions that would be beneficial for our customers.

Robert Durian: We are also taking prudent actions to protect the right to transfer tax. through our safe harboring activities. We have disclosed the success of these activities on slide 10 of our supplemental slides, which shows a substantial portion of the tax credits included in our updated financing plan through 2028 are from projects either already in service or safe-harbored prior to 2025. We also have optionality with alternative financing sources, if transferability is modified under future legislation. Alternatives include incremental financing with a balanced mix of debt and equity, as well as utilizing hybrid instruments. We would also evaluate aligning the timing of customer bill credits with expected utilization of credits from future projects.

Speaker Change: We are also taking prudent actions to protect our right to transfer tax rose through our safe harboring activities.

Speaker Change: We have disclosed the success of these activities on slide 10 of our supplemental slides, which shows a substantial portion of the tax credits included in our updated financing plan through 2028 are.

Speaker Change: Some projects either already in service or safe harbored prior to 2025.

Speaker Change: We also have optionality with alternative financing sources, if transferability as modified under future legislation.

Speaker Change: Alternatives include incremental financing with a balanced mix of debt and equity as well as utilizing hybrid instruments.

We would also evaluate aligning the timing of customer bill credits with the expected utilization of credits for future projects.

Robert Durian: as well as the potential use of tax equity arrangements if beneficial for our customers.

Speaker Change: Well as the potential use of tax equity arrangements, if beneficial for our customers.

Robert Durian: Specific to our 2025 debt financing plans, during the first quarter, we extended the Alliant Energy Finance Variable Rate Term Loan Agreement until 2020. The remaining debt financings are shown on slide 11 and include estimated issuances at Alliant Energy Finance or the parents and our two utilities. For all three segments, we've increased our financing needs. primarily to fund the increased 2025 investments and our updated capital plans, and to increase financing flexibility in anticipation of upcoming maturities in early 2020. At our Iowa utilities, some of the issuance will be used to refinance $300 million of debt maturing in the third quarter of this year.

Speaker Change: Specific to our 2025 debt financing plans during the first quarter, we extended the Alliant energy finance variable rate term loan agreement until 2026.

Speaker Change: The remaining debt financings are shown on slide 11 and include estimated issuances at Alliant energy finance or the parents.

Speaker Change: And our two utilities.

Speaker Change: For all three segments, we've increased our financing needs.

Primarily to fund the increased 2025 investments in our updated capital plans and to increased financing flexibility and anticipated.

Speaker Change: In anticipation of upcoming maturities in early 2026.

Speaker Change: At our Iowa utility some of the issuance will be used to refinance $300 million of debt maturing in the third quarter of this year.

Robert Durian: Finally, I'll highlight our regulatory initiatives that have been filed, as well as those regulatory filings we plan to initiate later this year. Starting in Wisconsin, WPL recently received approval from the PSCW for two customer-focused investments in our updated cap... including the Riverside Enhancement Project to support reliability and resiliency for Wisconsin. and the Bantry Wind Refurbishment Project, expected to extend tax credits for the benefit of our customers. Turning to our regulatory proceedings currently in process. WPL recently filed an electric and gas rate review for test years 2026 and 2027. The filing includes recovery of several investments that support reliability and resiliency while keeping customer value and commutative rates top of mind.

Speaker Change: Finally, I'll highlight our regulatory initiatives that have been filed as long as those regulatory filings we plan to initiate later this year.

Starting in Wisconsin, That'd be feel recently received approval for the P. S. W. For two customer focused investments in our updated capital plan.

Speaker Change: Including the Riverside enhancement project to support reliability and resiliency for Wisconsin.

Speaker Change: And the bench, we win refurbishment project expected to extend tax credits for the benefit of our customers.

Speaker Change: Turning to our regulatory proceedings currently in process.

So we feel recently filed an electric and gas rate review for test years, 2026 and 2027.

Speaker Change: The filing includes recovery of several investments that support reliability and resiliency, while keeping customer value and competitive rates top of mind.

Robert Durian: These investments include cost-effectively advancing responsible energy solutions. including solar and wind refurbishment projects. which provide zero-fuel cost energy and tax. as well as investing in new energy storage resources and capacity and efficiency upgrades for existing natural gas generation to provide additional energy resources to meet growing customer demand. Finally, it includes recovery of our planned continued investments in electric and gas distribution, just to report reliability and safety for our customers. Next steps in the rate review process include a discovery phase and audit by the PSCW staff and interviewers over the next few months. with a hearing anticipated in early fall and a final decision expected from the PSCW later this year.

Speaker Change: These investments include cost effectively advancing responsible energy solutions.

Speaker Change: Including solar and wind refurbishment projects.

Speaker Change: Which provides zero fuel cost energy and tax benefits.

Speaker Change: As well as investing in new energy storage resources and capacity and efficiency upgrades for existing natural gas generation to provide additional energy resources to meet growing customer demand.

Speaker Change: Finally, it includes the recovery of our play and continued investments in electric and gas distribution, just a report liability for and safety for our customers.

Speaker Change: Next steps in the rate review process included discovery phase and audits by the PSC W staff and intervenors over the next few months.

Speaker Change: With a hearing anticipated in early fall and a final decision expected from appears CW later this year.

Robert Durian: More details on the rate review, including key terms requested in this filing, can be found on slide 12.

Speaker Change: More details on the rate review, including key terms requested in this filing can be found on slide 12.

Robert Durian: WPO also recently requested approval of an individual customer rate for the data center plan to be built in Beaver Dam, Wisconsin. And lastly, WPL has four active dockets in progress before the PSCW involving requests for certificates of authority for customer-focused investments. We also have four active filings in progress before the Iowa utilities. including a request for an individual customer rate for one of the new data centers in Cedar Rapids, Iowa. Request for approximately 225 megawatts of battery storage to be located at the retired Lansing coal generation site and next to the Golden Plains Wind Generating Station.

Speaker Change: W. Also recently requested approval of an individual customer rich for the datacenter playing to be built in Beaver Dam, Wisconsin.

Speaker Change: And lastly, there'll be pillars for active dockets in progress before the PSC W have already requested for certificates of authority for customer focused investments.

Speaker Change: We also have four active filings in progress before the Iowa Utilities Commission, including a request for an individual transfer rate for one of the new data centers in Cedar Rapids, Iowa.

Speaker Change: Requests for approximately 225 megawatts of battery storage to be located at the retired Lansing coal generation site next to the Golden Plains wind generating station.

Robert Durian: and a request for an approximate 100 megawatt Cedar River natural gas generating station, which would be located next to the existing site of the Prairie Creek generation plant. The expected timing of decisions from the PSCW and Iowa Utilities Commission on these pending dockets is provided on slide 13.

Speaker Change: And our request for an approximate 100 megawatt Cedar River natural gas generating station, which will be located next to the existing site of the Prairie Creek generation station.

Speaker Change: The expected timing of decisions from the PSC W and Iowa Utilities Commission at least pending dockets as provided on slide 13.

Robert Durian: Finally, in conjunction with our updated capital expenditure plan, we also expect to make additional regulatory filings later this year in both Iowa and Wisconsin. for renewables and dispatchable resources to enhance reliability, further diversify our energy resources, and meet growing customer energy demand.

Speaker Change: Finally.

Speaker Change: In conjunction with our updated capital expenditure plan. We also expect to make additional regulatory filings later this year in both Iowa, and Wisconsin for renewables and a special resources to enhance reliability further diversify our energy resources and meet growing customer energy demands.

Robert Durian: We thank you for your continued support and look forward to speaking with many of you in the coming months.

Speaker Change: We thank you for your continued support and look forward to speaking with many of you in the coming months.

Operator: At this time I'll turn the call back over to the operator to facilitate the question and answer. Thank you, Mr. Durian.

Speaker Change: At this time I'll turn the call back over the operator to facilitate the question and answer session.

Speaker Change: Yeah.

Speaker Change: Thank you Mr. Durian at this time the company will open up the call to questions for members of the investment community.

Operator: At this time, the company will open up the call to questions for members of the investment community. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you risk the decline from the pooling process, please press star followed by the number 2. If you are using a speakerphone, please make sure to lift your handset before pressing any key.

Speaker Change: Should you have a question. Please press star followed by the number one on your Touchtone phone you'll.

Speaker Change: You'll hear a prompt that her hand has been race.

Speaker Change: Should you wish to decline from the polling process. Please press star followed by the number two.

Speaker Change: If you are using a speaker phone please make sure to lift your handset before pressing any keys.

Speaker Change: Yeah.

Shahriar Pourreza: Your first question comes from the line of Shahriar Pourreza from Guggenheim Partners. Please ask your question. Hey guys, good morning. It's actually James on for sure.

Speaker Change: Your first question comes from the line of sharper Raza from Guggenheim Partners. Please ask your question.

James: Hey, guys. Good morning, it's actually James on for sure.

Speaker Change: Hmm.

Robert Durian: Starting off, I think, with slide four, is there a general timeline you could share for converting the mature opportunities to contracts? And then secondly, could you just put maybe like a finer point on the breakdown of how you could serve those mature opportunities between existing and new gen, you know, like what's the headroom left? Yeah, thank you for the question. So how we have been talking about all of our economic development opportunities is that once we have signed ESAs, we're putting that information out there. In terms of what we do not yet have signed ESAs for, those are ones that we have a fairly high confidence level.

Speaker Change: I'm starting off I think with slide four is there a general timeline you can share for converting the mature opportunities to contracts and then secondly.

Speaker Change: Could you just put maybe like a finer point on the breakdown of how you could serve those mature opportunities between existing and new job you know like what's the headroom left on your system.

Speaker Change: Yeah. Thank you for the question. So how we have been talking about all of our economic development opportunities is that once we have signed yes, as we're putting that information out there in terms of the what we do not.

Speaker Change: Yeah. It has signed Esa as for those are ones that we have a fairly high confidence level. We have had a number of discussions and negotiations with those folks. So we have a high level of confidence and that's why we're sharing that however, we are making that differentiation between those that have executed.

Lisa Barton: We have had a number of discussions and negotiations with those folks, so we have a high level of confidence and that's why we're sharing that. However, we are making that differentiation between those that have executed ESAs and those that don't. One of the things that we've certainly shared in the past, we have length. We have near-term length and we're using that to be able to accelerate load growth in our territory. That's what we're doing with one of the customers in the Big Cedar facility and we have had interest in others as well, so we're very bullish on that.

Speaker Change: S A's and those that don't.

Speaker Change: One of the things that we've certainly shared in the past we have links we have near term length, and we're using that to be able to accelerate our load growth in our territory. That's what we're doing with one of the customers in the big Cedar facility.

Speaker Change: And we have had interest in others as well so we're very bullish on that a.

Lisa Barton: But as you know, it's going to be an all of the above solution. We have short-term PPAs in the plan. We'll have new developments. We'll constantly look at evaluating our existing generation in the portfolio that we currently have and looking to see if there are opportunities to get more capacity out of the existing facilities that we have.

Speaker Change: But as you know it's gonna be in all of the above our solution. We have a short term ppas in the plan, we will have new developments, we'll constantly look at evaluating our existing generation in the portfolio that we currently have and looking to see if there are opportunities to get more capacity.

Speaker Change: The odd of the.

The existing facilities that we have.

Operator: Okay, perfect.

Speaker Change: Okay Perfect and then just on the tax side I know you had a clause in the Iowa stay out.

Lisa Barton: And then just on the tax side, I know you had a clause in the Iowa stay out that you could go back in if policy changed significantly. Does the safe harboring work you guys laid out today mean that that's off the table right now? Yeah, great question, James. Yeah, as we think, for those that may not be familiar, as we entered into the rate settlement last year that provides the rate moratorium for the next five years, we did have a provision within it that allowed us to go back in for a rate case if for some reason there was any changes to any major legislation.

Speaker Change: But you could go back and policy change significantly.

Speaker Change: Safe harboring work you guys laid out today I mean that that's off the table right now.

Speaker Change: Yeah.

Speaker Change: Yeah, Great question, James Yeah, as we think for those that may not be familiar as we entered into the rate settlement last year that provides a rate moratorium for the next five years, we did have a provision within it that allowed us to go back in for a rate case if for some reason there was any changes to any major legislation.

Robert Durian: With that said, we're really focused right now on activities to avoid the need to go back in. We're advocating for kind of provisions within the legislation that would be beneficial to our customers. As we noted, we're making great progress with the Safe Harbor activities. And lastly, we're really trying to accelerate the load growth we see with some of our data center customers and other customers that would help prevent the need to do that. So our focus right now is, regardless of the outcome of the legislation, is to really position us to be able to meet all of our stakeholder expectations, including shareholders, without the need to go back in.

Speaker Change: With that said, we're really focused right now on activities to avoid the need to go back in.

Speaker Change: I advocated for kind of provisions within the legislation that would be beneficial to our customers. As we noted we're making great progress with the safe Harbor activities Lastly, where we're really trying to accelerate the load growth, we see with some of our datacenter customers and other customers that would help prevent the need to do that so our focus right now is regarding.

Speaker Change: This is the outcome of the legislation is to really position us to be able to meet all of our stakeholder expectations include insurers without the need to go back and.

Operator: We do have a number of batteries that are in the plan for next year, and we're very well positioned with respect to those batteries. Understood.

Speaker Change: Thankfully, we do have a number of batteries that are in the plan for next year, and we're very well positioned with respect to those batteries.

Speaker Change: Understood. Thank you.

Operator: Thank you.

Nicholas Campanella: Your next question is from the line of Nicholas Campanella from Barclays. Please ask your question.

Your next question is from the line of Nicholas Campanella from Barclays. Please ask your question.

Robert Durian: Bye, Nick. Hey, good morning, everyone. Thanks for taking my questions, and thanks for all the up... Hey, I just wanted to ask, you guys gave a lot of good disclosure, rate base is moving higher, you're adding a little bit of equity. You know, do you still see this as a 5 to 7% long-term EPS CAGR? And any kind of comments on how you're trending in that plan now? Yeah, great question, Nick. Right now, we continue on our long track record of consistent and predictable growth. Really, we're focused on enhancing the sustainability and longevity of those growth rates.

Speaker Change: Hi, Nick.

Nicholas Campanella: Hey, good morning, everyone. Thanks for taking my questions and thanks for all the updates.

Speaker Change:

Speaker Change: Hey, I just wanted to ask you guys gave a lot of good disclosure rate basis, moving higher you're adding a little bit of equity.

Speaker Change:

Speaker Change: Do you still see this as a 5% to 7% long term EPS CAGR and any kind of comments on how you're trending in that plan now.

Speaker Change: Yeah, Great question, Nick are kind of right now we continue on our long track record of consistent and predictable growth are really we're focused on enhancing the sustainability and longevity of those growth rates think of this as we're focused on cascading the growth over time.

Lisa Barton: Think of this as we're focused on cascading the growth over time, really to strengthen and lengthen that growth rate. This quarter, updates really demonstrate that with the increase of the investment CAGR up to 11%. While we're still retaining the ability to grow beyond the announced CapEx plan through 2028. So I think we're really set up well for strong load growth and investments with elevated CapEx starting in that 2027 timeframe. So really, I think I'd be disappointed if we're not towards the top end of our currently stated growth rate starting in 2027. And Nick, one of the things that I just want to highlight, and I talked about it briefly in the script, is what we see is the Alliant Energy Advantage.

Speaker Change: Really to strengthen and lengthen our growth rate this.

Speaker Change: This quarter updates are really demonstrate that with the increase of the investment CAGR up to 11%.

Speaker Change: While we're still retaining the ability to grow beyond you announced Capex plan through 2020 of it. So I think we're really set up well for strong load growth and investments are with elevated capex starting in that 'twenty 'twenty seven timeframe.

Speaker Change: So it really I think I'd be disappointed if we're not towards the top end of our stated currently stated growth rates starting in 2027.

Speaker Change: And Nick one of the things that I, just want to highlight and I talked about it briefly in the script is what we see is the Alliant energy advantage. We are actively focused on building cascading waves of growth, we see ourselves as the backbone of our communities and we are committed to fueling their success and a.

Lisa Barton: We are actively focused on building cascading waves of growth. We see ourselves as the backbone of our communities, and we are committed to fueling their success and allowing our communities to reach their economic development aspirations. So we remain focused on growing at the pace of our customers. We have the regulatory constructs that we need in both jurisdictions to do that, both with the one in Iowa, with the way that is set up, as well as the cadence that we have in Wisconsin. It really allows us to grow at the pace of our customers. Also, the fact that we don't have litigated resource planning processes.

Speaker Change: Allowing our communities to reach their economic developments aspirations. So we remain focused on growing at the pace of our customers. We have the regulatory constructs that we need in both jurisdictions to do that so this was the one in Iowa with the way that is set up as well as the cadence.

Speaker Change: That we have in Wisconsin, It really allows us to grow with the pace of our customers also the fact that we don't have litigated resource planning processes are highly flexible we can go in at any time to our states that is a huge differentiator I believe between us and a lot of other entities out there.

Lisa Barton: They're highly flexible. We can go in at any time to our states. That is a huge differentiator, I believe, between us and a lot of other entities out there. We also have that robust length in our queue positions, as well as near-term length, which allows us to accelerate just as we have in our big cedar facility in Iowa.

Speaker Change: We also have that robust are linked in our queue positions as well as near term length, which allows us to accelerate just as we have in our big Cedar facility in Iowa. So yeah, we're wrapping a bow around that that's the Alliant energy advantage that we are focusing on over the long term.

Lisa Barton: Wrapping a bow around that, that's the Alliant Energy advantage that we are focusing on over the long term.

Operator: Hey, I really appreciate all those comments. That was helpful.

Speaker Change: Yeah, I really appreciate all those comments that that was helpful. And then just one one quick one on the transferability and tax commentary I know you've kind of talked about you'd use a mix of debt equity hybrid.

Robert Durian: And then just one quick one on the transferability and tax commentary. I know you kind of talked about, you know, you'd use a mix of debt, equity, hybrids. You could go look at using traditional tax equity. You know, maybe just if you lost a dollar of transferability, like how much equity do you think you would actually have to do? Yeah, I think it's Robert. So yeah, it's dependent upon the terms within any proposed legislation. I'd say we're cautiously optimistic, as we've heard different versions of the potential legislative provisions, that there's probably going to be some type of phase-out is how we would characterize it, and so, as we think about our plan, we feel really well-protected for the next few years, thanks to our Safe Harbor activities.

Speaker Change: You can go look at using traditional tax equity.

Speaker Change: You know maybe just if you walk the dollar of transferability like how much equity do you think you'd actually have to do.

Speaker Change: Yeah. Nick this is Robert so yeah, it's dependent upon.

Speaker Change: The terms within any proposed legislation.

Speaker Change: I'd say, we're cautiously optimistic because we've heard different versions of the potential legislative provisions that there's probably going to be some type of phase out is how we would characterize it and so as we think about our plan, we feel really well protected for the next few years, thanks to our safe Harbor activities.

Robert Durian: As I indicated in some of my prepared remarks, if you look at the amount of tax credits that we plan to monetize in the next four years, a significant majority, better than 95 percent of it comes from projects that are already in service, or projects that we Safe Harbor prior to 2025, and with that, we wouldn't expect to need much additional financing over the next four years. But if we were to need some additional financing, I would say that we would continue down our path of maintaining a really strong balance sheet, so think of that as somewhere between probably 40 and 50 percent of any new financing needs would come through the form of equity to maintain that strong balance.

Speaker Change: As I indicated in some of my prepared remarks, if you look at the amount of tax credits that we plan to monetize the next four years.

Speaker Change: A significant majority better than 95% of it comes from projects that are already in service or projects that we safe Harbor approach 2025, and with that so we wouldn't expect to need much additional financing over the next four years, but if we were to need some additional financing I would say that we would continue down our path to.

Speaker Change: They need a really strong balance sheet, so think of that as somewhere between probably 40, and 50% of any new financing needs would come through the form of equity to maintain that strong balance sheet.

Lisa Barton: One thing I'll draw your attention to as well Yeah, hi, Lisa here. Just want to draw your attention to the May letter that was put out by 12 House Republicans, and basically in that letter that was issued yesterday, it was strongly supporting the IRA and its provisions, and I will note there was very strong support from our Iowa delegation there as well. Certainly noted. Thank you. Thank you for that.

One thing I'll draw your attention to as well.

Speaker Change: Yeah, Hi, Lisa here, just want to draw your attention to the May letter that was put out by 12 a house.

Speaker Change: Republicans and basically in that letter that was issued yesterday. It was strongly supporting the airasia and its provisions and I will note. There was very strong support from our Iowa delegation there as well.

Speaker Change: Certainly noted thank you. Thank you for that and I'm just on the comments on the balance sheet. Just I guess, you kind of highlighted 13% to 14% at S&P 14 to 15 at Moody's kind of where do you kind of see yourself today against those metrics.

Robert Durian: And just on the comments in the balance sheet, just I guess you kind of highlighted 13 to 14 percent at S&P, 14 to 15 at Moody's, kind of where do you kind of see yourself today against those metrics? Yeah, we're in a great position right now, Nick, for 2025 for both of those towards the upper end of the S&P and squarely kind of in the middle of the Moody's range right now. Thank you. Have a good one.

Speaker Change: Yeah, we're in a great position right now Nick for 2020 five for both of those are towards the upper end of the S&P and squarely kind of in the middle of the the Moody's range right now.

Speaker Change: Thank you have a good one we'll see you at a G I.

Operator: We'll see you at AGA.

Nick: Thanks, Nick.

Speaker Change: Yeah.

Speaker Change: Yeah.

Paul Fremont: Your next question is from the line of Paul Fremont from Leidenberg. Please ask your question. Thank you very much and congratulations on a really great quarter. Does the ICR structure provide you with an opportunity to provide a similar type of stay out in Wisconsin as you've achieved in Iowa? Yeah, I would characterize our WPL kind of regulatory construct is they ask us to come in every two years. For a rates case, it doesn't mean you have to ask for an increase. So when you do that, and so we're really working on trying to grow low, try and reduce costs so that if we were to come in every two years, like I said, we would try and minimize the customer cost impact.

Your next question is from the line of Paul Fremont from Ladenburg. Please ask your question.

Paul Fremont: Alright, Thank you very much and congratulations on a really great quarter.

Speaker Change: Thanks Todd.

Paul Fremont: Does the ICR a structure.

Paul Fremont: Revised you with an opportunity to provide a similar type of stay out in Wisconsin as you've achieved in Iowa.

Speaker Change: Yeah, what I would characterize our R. W pill kind of regulatory construct as they ask us to come in every two years.

Speaker Change: For a rate case. It doesn't mean you have to ask for an increase so when you do that and so we're really working on trying to grow load try and reduce cost. So that if we were to come in every two years like I said, we would try and minimize the customer close in fact, so I think you'll get to a similar result, as we continue to grow the business and the sales and try and reduce.

Robert Durian: So I think you get a similar result. As we continue to grow the business and the sales, and try and reduce costs, you could still achieve what we call base rates being flat for the next five years, similar to what we are targeting in Iowa.

Speaker Change: Cost you could still achieve or what we call base rates being flat for the next five years similar to what we are targeting an island.

Operator: Great.

Speaker Change: Right and then.

Robert Durian: And then in terms of your equity need, would you consider using junior subordinated debt as in order to meet your equity requirements? Yeah, we're taking kind of all different options into consideration. The great thing about our financing plan is we have a lot of flexibility. As I indicated in my prepared remarks, we are launching an ATM program here in the near future that will provide us some flexibility as to the timing of any equity issuance. And we also have flexibility when it comes to hybrids, as we consider all different types of options in the future.

Speaker Change: In terms of your equity need would you consider using junior subordinated debt as in order to meet your equity requirement.

Speaker Change: Yeah, we're taking a kind of all different options into consideration are the great thing about our financing plan as we have a lot of flexibility as I can.

Speaker Change: The Kid in my prepared remarks, so we are launching an ATM program here in the near future that'll provide us some flexibility as to the timing of any equity issuance and we also have flexibility when it comes to hybrids. So as we consider all different types of options in the future.

Robert Durian: I feel like we're really set up well for that. And so, yeah, junior support needs are in the discussion. We haven't made any commitments at this point, and we'll continue to provide more updates throughout the years to kind of our thinking on that.

Speaker Change: Like we're really set up well for that and so junior subordinated sorry. The discussion we haven't made any commitments at this point and we'll continue to provide more updates throughout the year as to kind of our thinking on that in the future.

Robert Durian: And then you sort of in your regulatory discussion talk about filings in Iowa and Wisconsin for additional generation resources. Can you give a sense in terms of, in megawatts, how much in each of those states you're looking to add? Yeah, Paul, I point you to the – there's a slide within our supplemental slides that lays out what would be considered our new resource plan when it comes to natural gas, batteries, and wind. You can get a sense of the magnitude of the volume of each one of those different categories. The stuff towards the kind of earlier years of our plan expect us to be filing here in the near future.

Speaker Change: And then you sort of in your regulatory discussion to talk about filings in Iowa, and Wisconsin for additional generation resources.

Speaker Change: Can you give a sense in terms of.

Speaker Change: In megawatts, how much in each of those states you are looking to add.

Speaker Change: Yeah.

Speaker Change: Yeah, Paul I'd point, you to this there's a slide within our supplemental slides it lays out.

Speaker Change: So it would be considered or our new resource plan when it comes to natural gas batteries and wind.

Speaker Change: You can get a sense of the magnitude of the volume of each one of those different categories. This stuff towards the kind of earlier years of our plan and I expect us to be filing here in the near future are the later part of the plan would probably be maybe a couple of years down the road.

Robert Durian: The later part of the plan would probably be maybe a couple years down the road. We haven't identified specific megawatts, but that should give you some indication of the volumes that we're expecting.

Speaker Change: We haven't identified specific megawatts, but that should give you some indication of the volumes that we're interested in.

Robert Durian: And then last question for me, the enhancement at Riverside, what exactly does that entail? Yeah, think of that as a black start facility. So it helps with resiliency and reliability for the entire system in the state of Wisconsin. And so those would be, call them diesel generators, gas generators that would be effective at being able to restart the system in case of any type of blackout. Thank you so much.

Speaker Change: And then last question for me the enhancement at Riverside, what exactly does that entail.

Speaker Change: Okay.

Speaker Change: Yeah, I would think of that as a black start facility. So helps with resiliency and reliability for the entire system in the state of Wisconsin, and so those would be a.

Speaker Change: Call them diesel generators are gas generators that are would be effective at being able to restart the system in case of any type of black blackout.

Speaker Change: Great. Thank.

Thank you so much that's it for me.

Operator: That's it for me.

Speaker Change: Okay.

Andrew Weisel: Your next question comes from the line of Andrew Weisel from Scotiabank. Please ask your question. Hey, good morning, everybody. Hey, Andrew. Good morning. If I could...

Your next question comes from the line of Andrew Weisel from Scotia Bank. Please ask your question.

Andrew Weisel: Hey, good morning, everybody.

Speaker Change: Good morning, if I could if.

Robert Durian: If I could first elaborate on the equity question a little bit. Is the ATM presumably large enough to satisfy the $1.4 billion over years? Would you consider a forward or a block perhaps? And in terms of timing, would I be correct to think it might be more backend-loaded or would you think it might be ratable? Yeah, so we've announced as part of our updated financing plan that we foresee the need for about $1.4 billion of new common equity through 2028. We normally raise about $25 million a year through our share and direct plan, so that would be roughly about $100 million of that total.

Speaker Change: If I could first elaborate on the equity question, a little bit Ah first would be ATM, presumably be large enough to satisfy the $1 4 billion over years are would you consider a forwarder are blocked perhaps and in terms of timing would I be correct to think it might be more backend loaded or would you think it might be ratable our 2000.

Speaker Change: Six to 28.

Speaker Change: Yeah. So we we've announced as part of our updated financing plan that we foresee the need for about $1 $4 billion of new common equity through 2028.

Speaker Change: We normally a raise of about $25 million a year through our share of the drug plan. So it would be roughly about $100 million of that total and the remaining $1 3 billion.

Robert Durian: And then the remaining $1.3 billion could be in the form of an ATM over time or it could be some type of forward transaction. We have a lot of flexibility with that that we'll continue to evaluate different market conditions over time, determine what we best want to do there. Regarding the timing question, right now the financing plan assumes that that $1.3 billion would come in ratably from 2026 through 2028. But like I said, we have a lot of flexibility with that, so we would consider market conditions and then potentially think about modifications of the timing of that if we saw the right opportunity.

Speaker Change: Could be in the form of an a T M overtime or it could be some type of forward transaction. We have a lot of flexibility with that that will continue to evaluate different market conditions over time to talk about what we just wanted to do there.

Speaker Change: Regarding the timing question right now the the financing plan assumes that our $1 3 billion would come in Ratably from 2026 through 2028.

Speaker Change: But like I said, we have a lot of flexibility with that so we would consider market conditions and then potentially think about modifications of the timing of that if we saw the right opportunity.

Speaker Change: Yeah.

Robert Durian: Okay, great, that's helpful. And then, forgive me if I missed it, but what exactly was added? It obviously went up by $600 million, give or take. Was that more generation or wires? And if it was generation, can you tell us what was the technology or technologies and the time? Yeah, the biggest component of that was on the generation side, specifically natural gas generation. Think of that as we continue to build out more load from these data center opportunities. We need capacity resources to be able to meet the peak demand of those customers. And so, again, back to the supplemental slide seven, we've identified 1.5 gigawatts of new natural gas facility load through 2030.

Speaker Change: Okay, Great that's helpful.

Speaker Change: And then forgive me if I missed it but what exactly was added to the Capex plan. Because obviously went up by 600 million give or take was that more generation or wires and if it was generation can you tell us what was the technology or technologies and the timing.

Speaker Change: Yeah, the biggest component of that so it was on the generation side, specifically natural gas generation and think of that as we continue to build out more load from these data center opportunities, we need capacity resources to be able to meet the peak demand of those of those customers and so again back to the <unk>.

Speaker Change: And then on slide seven we've identified a 1.5 gigawatts of new natural gas facility load through 2030, and the biggest component of that Capex increase was associated with that natural gas generation.

Robert Durian: And the biggest component of that capex increase was associated with that natural gas generation.

Speaker Change: Okay very good.

Operator: Okay, very good. Thanks so much.

Speaker Change: Thanks, so much.

Speaker Change: Okay.

Ross Fowler: Your next question is from the line of Ross Fowler from Bank of America. Please ask your question.

Speaker Change: Your next question is from the line of Ross <unk> from Bank of America. Please ask your question.

Speaker Change: Good morning, guys, it's actually Rennie here for Ross.

Robert Durian: Thanks for watching, guys. It's actually... question about the MISO capacity auction and I guess how do you guys Yeah, we're actually very well positioned. It's a great question. Given the kind of the results of that auction, specifically the summer capacity prices being more elevated. We're taking advantage of that length right now and selling that excess capacity into the market. And we use those proceeds to actually help our customer bills. Unfortunately, I think some other folks may be on the other side of that where they may be short and suffering some more challenges when it comes to customer bills, but we're very well positioned there and we're going to continue to try and be well positioned as we think that's a more longer term trajectory as far as seeing higher elevated prices in the capacity market, which really supports our desire to want to continue to build new generations to support our customer demand.

Speaker Change: I just had a quick question about the MISO capacity auction and I guess, how do you guys see that impacting consumer bills in the regulatory landscape.

Speaker Change: Yeah.

Speaker Change: Yeah, we're actually very well positioned so it's a good question so given the kind.

Speaker Change: The results of that auction, specifically the summer capacity prices being more elevated were.

Speaker Change: We're taking advantage of that length right now in selling that excess capacity into the market and we use those proceeds to actually help our customer bills.

Speaker Change: Unfortunately, I think some other folks may be another side of that where they may be short and sufferings or challenges when it comes to cause for bills, but we're very well positioned there and we're going to continue to try and be well positioned as we think that's a more longer term trajectory as far as seeing higher elevated prices in the capacity market, which really supports our desire to want to continue.

Speaker Change: To build new generation to support our customer demand.

Speaker Change: Yeah.

Speaker Change: Okay. It makes sense and then just secondly.

Robert Durian: And then, just secondly, how do you guys view potential ROFR legislation in Wisconsin? I guess, what effect would that have on CapEx?

Speaker Change: How do you guys view potential ROE for legislation in Wisconsin, and well I guess, what effect would that have on capex.

Speaker Change: It.

Robert Durian: Good morning. In terms of, in both states, there's actually ropher legislation. As we look at it from a Wisconsin standpoint, and what's ATC's investment opportunities are, they're likely stronger with a ropher. However, ATC, like all other transmission providers, will position itself to be competitive should a ropher not be supported in the state. But none of that is reflected in our CapEx plan, even though Tronch 2.2 is outside of the window that you see here. There's a lot of projects that have been allocated to ATC that are still not in our CapEx plan because they go into those outer units.

Speaker Change: Good morning in terms of in in both states, there's actually a roof religious nation as we look at it from our Wisconsin standpoint are and what our I T. E. T sees investment opportunities or are there do you likely stronger with a rover. However.

Speaker Change: Or a T C. Like all other transmission providers will position itself to be competitive should've roche or not be.

Speaker Change: Supported in the state.

Speaker Change: Yeah.

Speaker Change: But none of that is reflected in our Capex plan, even a chance to point to is outside of the window that you see here. There's a lot of our projects that have been allocated to a T. C that are still not in our Capex plan because they go into those outer years.

Operator: Lots of great upsides.

Speaker Change: Lots of great upside.

Speaker Change: Okay. It makes sense all right. Thank you guys.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Yeah.

Paul Izumardo: The last question is from the line of Paul Izumardo from Jeffries, please go ahead. Hi, good morning. Thank you.

Speaker Change: The last question is from the line of Paul Zimbardo from Jefferies. Please go ahead.

Paul Zimbardo: Hi, Good morning, Thank you Tim.

Operator: Bye-bye. Hi. First, I wanted to clarify on Nick's question a little bit on the EPSK or N pointing to the top or near the top. Is it correct that's reflecting the current capital plan and any of the incremental opportunities that you've discussed a lot, like the mature opportunities, et cetera, that'd be incremental to that? Or kind of, were you thinking like, this is a little bit of a preview of what you could be contemplating? Yeah, I would characterize that statement as far as being disappointed if we're not towards the top end of that range by 2027.

Speaker Change: Uh huh.

Speaker Change: Hi.

Speaker Change: First I wanted to clarify on Nicks question, a little bit on the EPS, CAGR and pointing to the top or near the top.

Speaker Change: Is it correct, that's reflecting the current capital plan and any of the incremental opportunities that you've discussed a lot like the mature opportunities et cetera, that'd be incremental to that or kind of what are you thinking like this is a little bit of a preview of what you could be contemplating as well.

Speaker Change: Yeah, I would characterize is that statement as far as being disappointed if we're not towards the top end of that range by 2027 based on our current plan.

Robert Durian: Based on our current plan, we're going to continue to try and work on identifying further opportunities with further data center load growth and other economic development activities, which would be upside to our plan going forward.

Speaker Change: We're going to continue to try and work on identifying further opportunities with further data center load growth and other economic development activities, which would be upside to our plan going forward.

Robert Durian: Okay, excellent. That's what I thought. And then if I could ask a little bit more color on the tariff commentary, I believe you said 20% tariffs on the batteries and most of them are secured or in transit. Just could you give a little detail, did you change the sourcing strategy? Was this kind of offsets embedded contracts? Because it's a favorably lower number than I think a lot of your peers. So, good to hear. Yeah, we have worked really hard to get ahead of that. And one of the things to note is still with that 20% tariff that would be imposed on those batteries, that's still the lowest cost in terms of those batteries from China are still lower cost than domestically produced.

Speaker Change: Okay excellent that's what I thought and then if I could ask a little bit more color on the tariff commentary I believe you said, 20% tariff on the batteries and most of them are secured or in transit.

Speaker Change: Just could you give a little detail did you change the sourcing strategy with this kind of offsets embedded contracts because it's Ah Ah favorably lower number than I think a lot of your peers in the industry have been discussing so good to hear.

Speaker Change: And we have worked really hard to get ahead of that and one of the things to note is still with that 20 per cent of tariffs that would be imposed on those batteries. That's still the lowest cost in terms of those batteries from China are still lower cost than domestically produced.

Speaker Change: So we're feeling very comfortable with where we are and our in service dates here.

Robert Durian: So we're feeling very comfortable with where we are, and are in service states here this year. Okay, and so you said those are Chinese batteries for that 20% tariff? They are.

Speaker Change: This year.

Speaker Change: Okay, and so you said those are Chinese batteries for that 20% tariffs they are.

Speaker Change: Okay. Okay. Thank you very much Jim.

Operator: Thank you very much.

Susan Gille: Ms. Gille, if there are no further questions at this time. With no more questions, this concludes our call. A replay will be available on our investor website. We thank you for your continued support of Alliant Energy, and feel free to contact me with any follow-up questions. This concludes today's conference call. Thank you very much for your participation.

Speaker Change: Michigan hearing no further questions at this time.

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

Speaker Change: We thank you for your continued support of Alliant energy and feel free to contact me with any follow up questions.

Speaker Change: This concludes today's conference call. Thank you very much for your participation you may now disconnect.

Operator: You may now disconnect.

Speaker Change: [noise].