Q2 2026 Alliant Energy Corp Earnings Call

July 31, 2026

Operator 4: Thank you for holding and welcome to Alliant Energy's Q2 2026 Earnings Conference Call. At this time, all lines are in a listen-only mode. Today's conference call is being recorded. I would now like to turn the call over to your host, Susan Gille, Investor Relations Manager at Alliant Energy.

Operator: Thank you for holding and welcome to Alliant Energy's Q2 2026 Earnings Conference Call. At this time, all lines are in a listen-only mode. Today's conference call is being recorded. I would now like to turn the call over to your host, Susan Gille, Investor Relations Manager at Alliant Energy.

Speaker #1: Today's conference call is being recorded. I would now like to turn the call over to your host, Susan Gille, investor relations manager at ALLIANT ENERGY.

Speaker #2: Good morning, and thank you for joining Alliant Energy's second quarter 2026 financial results conference call. Joining me today are Lisa Barton, President and Chief Executive Officer; and Robert Durian, Executive Vice President and Chief Financial Officer.

Susan Gille: Good morning. Thank you for joining Alliant Energy's Q2 2026 financial results conference call. Joining me today are Lisa Barton, President and Chief Executive Officer, and Robert Durian, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will have time to take questions from the investment community. Last night, we issued a news release announcing our Q2 2026 results and reaffirmed 2026 full-year earnings guidance. That release, along with our earnings presentation, will be referenced during today's call and is available on the investor section of our website at alliantenergy.com. Before we begin, please note that today's remarks and responses will include forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described in last night's earnings release and in our filings with the Securities and Exchange Commission.

Speaker #2: Following their prepared remarks, we will have time to take questions from the investment community. Last night, we issued a news release announcing our second quarter 2026 results and reaffirmed 2026 full-year earnings guidance.

Speaker #2: That release along with our earnings presentation will be referenced during today's call and is available on the investor section of our website at alliantenergy.com.

Speaker #2: Before we begin, please note that today's remarks and responses will include forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker #2: Those risks are described in last night's earnings release and in our filings with the Securities and Exchange Commission. We disclaim any obligation to update these forward-looking statements.

Susan Gille: We disclaim any obligation to update these forward-looking statements. In addition, this presentation contains references to ongoing earnings per share, which is a non-GAAP financial measure. Reconciliations to GAAP results are provided in the earnings release available on our website. At this point, I'll turn the call over to Lisa.

Speaker #2: In addition, this presentation contains references to ongoing earnings per share, which is a non-GAAP financial measure. Reconciliations to GAAP results are provided in the earnings release available on our website.

Speaker #2: At this point, I'll turn the call over to Lisa.

Speaker #3: Thank you, Sue, and good morning, everyone. We delivered strong second quarter results and continue to execute well across our business. Despite milder weather during the first six months of the year, we are currently trending in the upper half of our 2026 earnings guidance range while advancing the investments and customer solutions that support our long-term growth strategy.

Operator 4: Thank you, Sue. Good morning, everyone. We delivered strong Q2 results and continue to execute well across our business.

Lisa Barton: Thank you, Sue. Good morning, everyone. We delivered strong Q2 results and continue to execute well across our business.

Lisa Barton: Despite milder weather during the first six months of the year, we are currently trending in the upper half of our 2026 earnings guidance range while advancing the investments and customer solutions that support our long-term growth strategy. Our strategy is anchored in the Alliant Energy Advantage, the ability to align customer growth, constructive regulation, flexible resource planning, and disciplined execution in a way that benefits customers, communities, and share owners. As previously announced, our efforts to date have resulted in an expectation of driving a 60% increase in our demand by 2031 through five executed electric service agreements with large load customers. Three of these large loads are already under active construction with commission-approved contracts. In Cedar Rapids, Iowa, Google has energized their transmission service. They are anticipating ramping in accordance with a contracted load schedule.

Speaker #3: Our strategy is anchored in the Alliant Energy advantage: the ability to align customer growth, constructive regulation, flexible resource planning, and disciplined execution in a way that benefits customers, communities, and shareowners.

Speaker #3: As previously announced, our efforts to date have resulted in an expectation of driving a 60% increase in our demand by 2031 through five executed electric service agreements with large load customers.

Speaker #3: Three of these large loads are already under active construction with commission-approved contracts. In Cedar Rapids, Iowa, Google has energized their transmission service. They are anticipating ramping in accordance with a contracted load schedule.

Speaker #3: Also in Cedar Rapids, QTS continues to make substantial progress on construction of its 7 building data center campus with initial energization of 300 megawatts anticipated later this year.

Lisa Barton: Also in Cedar Rapids, QTS continues to make substantial progress on construction of its seven-building data center campus, with initial energization of 300 megawatts anticipated later this year. In Beaver Dam, Wisconsin, Meta has entered the vertical construction phase, with work actively progressing on data center facilities and supporting infrastructure. We are also encouraged by continued progress on future large load opportunities. QTS remains active in development of its second Iowa project in Clinton. We plan to file the ICR for this 900-megawatt project later this year. Our recently signed 370-megawatt data center agreement in Iowa, announced on our Q1 call, marks continued progress on our customer pipeline that currently represents between 2 and 4 gigawatts of potential future loads. As always, each of these loads are responsible for their cost of service while helping ensure existing customers benefit from growth opportunities without subsidizing new development.

Speaker #3: In Beaverdam, Wisconsin, Meta has entered the vertical construction phase, with work actively progressing on data center facilities and supporting infrastructure. We are also encouraged by continued progress on future large load opportunities.

Speaker #3: QTS remains active in the development of its second Iowa project in Clinton. We plan to file the ICR for this $900 million megawatt project later this year.

Speaker #3: Our recently signed $370 megawatt data center agreement in Iowa announced on our Q1 call marks continued progress on our customer pipeline that currently represents between 2 and 4 gigawatts of potential future load.

Speaker #3: And as always, each of these loads is responsible for their cost of service, while helping ensure existing customers benefit from growth opportunities without subsidizing new development.

Speaker #3: These opportunities are transformational for rural communities, expanding the local tax base, strengthening schools and essential services, enhancing infrastructure, and creating lasting economic growth and prosperity for generations to come.

Lisa Barton: These opportunities are transformational for rural communities, expanding the local tax base, strengthening schools and essential services, enhancing infrastructure, and creating lasting economic growth and prosperity for generations to come. We are prioritizing local collaboration and readiness so our communities are well-positioned to compete for and capture those benefits. A recent study by The Brattle Group reinforces this approach, finding that large new electricity users, such as data centers, can improve affordability for existing customers. That is what our approach is designed to do, ensure large load customers pay their own way while creating opportunities to further reduce costs for existing customers. It remains a cornerstone of our regulatory filings and demonstrates how disciplined growth can support reliability and long-term value for all customers.

Speaker #3: We are prioritizing local collaboration and readiness so our communities are well-positioned to compete for and capture those benefits. A recent study by the Braddell Group reinforces this approach: finding that large new electricity users such as data centers can improve affordability for existing customers.

Speaker #3: That is what our approach is designed to do: ensure large load customers pay their own way, while creating opportunities to further reduce costs for existing customers.

Speaker #3: It remains a cornerstone of our regulatory filings and demonstrates how disciplined growth can support reliability and long-term value for all customers. Building on the customer benefits generated through last year's fiber conduit lease agreement with Meta, this quarter we amended our agreement with QTS Cedar Rapids to support accelerated load growth, allowing them to accelerate their load ramp with firm and non-firm transmission.

Lisa Barton: Building on the customer benefits generated through last year's fiber conduit lease agreement with Meta, this quarter, we amended our agreement with QTS Cedar Rapids to support accelerated load growth, allowing them to accelerate their load ramp with firm and non-firm transmission. We also remain focused on disciplined financing and have been awarded approximately $50 million of Department of Energy grants for our Columbia Energy Center and Energy Dome projects. These are just a few of the strong examples of the Alliant Energy Advantage in action, working collaboratively with customers to support their growth objectives while creating broader benefits for all customers. Across our portfolio, we consistently transform strategic intent into measurable outcomes. Our team continues to execute exceptionally well across our customer investments while advancing the next generation of investments needed to serve customers and support economic development.

Speaker #3: We also remain focused on disciplined financing and have been awarded approximately $50 million of Department of Energy grants for our Columbia Energy Center and Energy Dome projects.

Speaker #3: These are just a few of the strong examples of the ALLIANT ENERGY advantage in action. Working collaboratively with customers to support their growth objectives while creating broader benefits for all customers.

Speaker #3: Across our portfolio, we consistently transform strategic intent into action. The team continues to execute exceptionally well across our customer investments, while advancing the next generation of investments needed to serve customers and support economic development.

Speaker #3: In Iowa, we are refreshing our resource plan to support future regulatory filings and ensure our long-term resource plan remains aligned with evolving customer needs.

Lisa Barton: In Iowa, we are refreshing our resource plan to support future regulatory filings and ensure our long-term resource plan remains aligned with evolving customer needs. This approach supports base rate stability and predictability for existing IPL retail electric customers through the end of the decade. During the quarter, we made meaningful progress across our generation portfolio, from placing additional generation resources into service to breaking ground on our new gas and wind investments, as well as advancing regulatory approvals. We are building momentum that positions us well for future growth. Robert will provide more detail on these developments in a moment. Before turning over to Robert, I would like to recognize our employees and especially our line workers following National Lineworker Appreciation Day earlier this month.

Speaker #3: This approach supports base rate stability and predictability for existing IPO retail electric customers through the end of the decade. During the quarter, we made meaningful progress across our generation portfolio, from placing additional generation resources into service to breaking ground on our new gas and wind investments.

Speaker #3: As well as advancing regulatory approvals. We are building momentum that positions us well for future growth. Robert will provide more detail on these developments in a moment.

Speaker #3: Before turning it over to Robert, I would like to recognize our employees, and especially our line workers, following National Line Worker Appreciation Day earlier this month.

Speaker #3: Recent summer storms and summer heat has once again demonstrated the critical role our field and generation teams play in safely restoring service and supporting our customers when they need us most.

Lisa Barton: Recent summer storms and summer heat has once again demonstrated the critical role our field and generation teams play in safely restoring service and supporting our customers when they need us most. Their commitment to safety, reliability, and operational excellence reflects the values that define Alliant Energy. I'll close with a recent milestone our team is proud of. In the recent J.D. Power study of Midwest large utility providers, we ranked number one in power, reliability, and safety. On behalf of the management team, we thank our employees who work tirelessly each day to provide the energy our customers and communities count on, fueling the economic engine of our communities. With that, I'll turn the call over to Robert.

Speaker #3: Their commitment to safety, reliability, and operational excellence reflects the values that define Alliant Energy. I'll close with a recent milestone our team is proud of: In the recent J.D. Power study of Midwest large utility providers, we ranked number one in power reliability and safety.

Speaker #3: On behalf of the management team, we thank our employees who worked tirelessly each day to provide the energy our customers and communities count on.

Speaker #3: Fueling the economic engine of our communities. With that, I'll turn the call over to Robert.

Speaker #1: Thank you, Lisa. And good morning, everyone. Yesterday, we reported strong second quarter 2026 cap earnings of $65 per share. As shown on slide 5, the year-over-year change in ongoing earnings was primarily driven by higher revenue requirements associated with capital investments across our Iowa and Wisconsin utilities, along with increased equity earnings from corporate, venture fund investments, and higher temperature normalized retail electric and gas sales.

Robert J. Durian: Thank you, Lisa. Good morning, everyone. Yesterday, we reported strong Q2 2026 GAAP earnings of $0.65 per share. As shown on slide five, the year-over-year change in ongoing earnings was primarily driven by higher revenue requirements associated with capital investments across our Iowa and Wisconsin utilities, along with increased equity earnings from corporate venture fund investments and higher temperature normalized retail, electric, and gas sales. These positive drivers were offset by higher operations and maintenance expenses related to the growth of our business, impacts of milder temperatures on electric and gas sales, timing of income tax expense, and higher financing and depreciation costs. Milder than normal temperatures reduced Q2 electric and gas margins by approximately $0.03 per share compared to a $0.02 benefit in the same period last year.

Robert Durian: Thank you, Lisa. Good morning, everyone. Yesterday, we reported strong Q2 2026 GAAP earnings of $0.65 per share. As shown on slide five, the year-over-year change in ongoing earnings was primarily driven by higher revenue requirements associated with capital investments across our Iowa and Wisconsin utilities, along with increased equity earnings from corporate venture fund investments and higher temperature normalized retail, electric, and gas sales. These positive drivers were offset by higher operations and maintenance expenses related to the growth of our business, impacts of milder temperatures on electric and gas sales, timing of income tax expense, and higher financing and depreciation costs. Milder than normal temperatures reduced Q2 electric and gas margins by approximately $0.03 per share compared to a $0.02 benefit in the same period last year.

Speaker #1: These positive drivers were offset by higher operations and maintenance expenses related to the growth of our business, impacts of milder temperatures on electric and gas sales, timing of income tax expense, and higher financing and depreciation costs.

Speaker #1: Milder than normal temperatures reduced second quarter electric and gas margins, by approximately $0.03 per share, compared to a year. Excluding the impacts of temperatures, second quarter electric sales were approximately 3% higher year over year, reflecting continued strength from Wisconsin commercial and industrial customers, particularly within the food processing and manufacturing sectors, and we are starting to see increases from the initial phase of the expected data center loads ramping in Iowa.

Robert J. Durian: Excluding the impacts of temperatures, Q2 electric sales were approximately 3% higher year over year, reflecting continued strength from Wisconsin commercial and industrial customers, particularly within the food processing and manufacturing sectors. We are starting to see increases from the initial phase of the expected data center loads ramping in Iowa. Strong execution across our business gives us confidence with our 2026 earnings guidance range, despite impacts at our two utilities from milder temperatures in the H1 of the year. In addition, corporate venture fund investments in our non-utility business are expected to provide incremental earnings this year. Accordingly, we are reaffirming our 2026 earnings guidance range and are currently trending in the upper half of the range. Key assumptions supporting our 2026 outlook are summarized on slide six. Our longer-term earnings outlook remains intact.

Robert Durian: Excluding the impacts of temperatures, Q2 electric sales were approximately 3% higher year over year, reflecting continued strength from Wisconsin commercial and industrial customers, particularly within the food processing and manufacturing sectors. We are starting to see increases from the initial phase of the expected data center loads ramping in Iowa. Strong execution across our business gives us confidence with our 2026 earnings guidance range, despite impacts at our two utilities from milder temperatures in the H1 of the year. In addition, corporate venture fund investments in our non-utility business are expected to provide incremental earnings this year. Accordingly, we are reaffirming our 2026 earnings guidance range and are currently trending in the upper half of the range. Key assumptions supporting our 2026 outlook are summarized on slide six. Our longer-term earnings outlook remains intact.

Speaker #1: Strong execution across our business gives us confidence in our 2026 earnings guidance range, despite impacts at our two utilities from milder temperatures in the first half of the year.

Speaker #1: In addition, corporate venture fund investments in our non-utility business are expected to provide incremental earnings this year. Accordingly, we are reaffirming our 2026 earnings guidance range, and are currently trending in the upper half of the range.

Speaker #1: Key assumptions supporting our 2026 outlook are summarized on slide 6. Our longer-term earnings outlook remains intact. Based on our current plan, we expect compound annual earnings growth across 2027 through 2029 to be 7% plus.

Robert J. Durian: Based on our current plan, we expect compound annual earnings growth across 2027 through 2029 to be 7%+. We will continue to assess our long-term earnings growth potential as we execute our data center expansion and update our capital expenditure and financing plans on the Q3 earnings call. Turning to financing, slide seven outlines our remaining 2026 debt financing plans, which include up to $800 million of long-term issuances, consisting of up to $300 million at WPL and up to $500 million at IPL. As a reminder, our 4-year capital investment plan is supported by a balanced financing strategy that includes cash generated from operations, proceeds from tax credit monetization, and new financings, including debt, hybrid instruments, and common equity. As shown on slide eight, we have made significant progress in the Q2 with proactively addressing our stated equity needs.

Robert Durian: Based on our current plan, we expect compound annual earnings growth across 2027 through 2029 to be 7%+. We will continue to assess our long-term earnings growth potential as we execute our data center expansion and update our capital expenditure and financing plans on the Q3 earnings call. Turning to financing, slide seven outlines our remaining 2026 debt financing plans, which include up to $800 million of long-term issuances, consisting of up to $300 million at WPL and up to $500 million at IPL. As a reminder, our 4-year capital investment plan is supported by a balanced financing strategy that includes cash generated from operations, proceeds from tax credit monetization, and new financings, including debt, hybrid instruments, and common equity. As shown on slide eight, we have made significant progress in the Q2 with proactively addressing our stated equity needs.

Speaker #1: We will continue to assess our long-term earnings growth potential as we execute our data center expansion and update our capital expenditure and financing plans on the third quarter earnings call.

Speaker #1: Turning to financing, slide 7 outlines our remaining 2026 debt financing plans. Which include up to $800 million of long-term issuances consisting of up to $300 million at WPO and up to $500 million at IPO.

Speaker #1: As a reminder, our four-year capital investment plan is supported by a balanced financing strategy that includes cash generated from operations, proceeds from tax credit monetization, and new financings, including debt, hybrid instruments, and common equity.

Speaker #1: As shown on slide 8, we have made significant progress in the second quarter with proactively addressing our stated equity needs. Of the approximately $2.4 billion of announced common equity needs through 2029, we have already raised approximately $1.8 billion through forward equity agreements.

Robert J. Durian: Of the approximately $2.4 billion of announced common equity needs through 2029, we have already raised approximately $1.8 billion through forward equity agreements. These actions effectively address our stated equity needs through 2028 and leave approximately $500 million of remaining equity to be raised through 2029, excluding equity expected to be raised under our share or direct plan. Our financing plan, together with our proactive execution to date, provides meaningful flexibility to support the efficient implementation of our strategy. Turning to regulatory matters, our regulatory agenda remains closely aligned with our capital investment strategy and the growing needs of our customers. During the quarter, we made significant progress advancing projects that support both reliability and economic development across our service territories. Our recent regulatory advancements and active filings are shown on slide nine.

Robert Durian: Of the approximately $2.4 billion of announced common equity needs through 2029, we have already raised approximately $1.8 billion through forward equity agreements. These actions effectively address our stated equity needs through 2028 and leave approximately $500 million of remaining equity to be raised through 2029, excluding equity expected to be raised under our share or direct plan. Our financing plan, together with our proactive execution to date, provides meaningful flexibility to support the efficient implementation of our strategy. Turning to regulatory matters, our regulatory agenda remains closely aligned with our capital investment strategy and the growing needs of our customers. During the quarter, we made significant progress advancing projects that support both reliability and economic development across our service territories. Our recent regulatory advancements and active filings are shown on slide nine.

Speaker #1: These actions effectively address our stated equity needs through 2028 and leave approximately $500 million of remaining equity to be raised through 2029, excluding equity expected to be raised under our shareholder direct plan.

Speaker #1: Our financing plan, together with our proactive execution to date, provides meaningful flexibility to support the efficient implementation of our strategy. Turning to regulatory matters, our regulatory agenda remains closely aligned with our capital investment strategy and the growing needs of our customers.

Speaker #1: During the quarter, we made significant progress advancing projects that support both reliability and economic development across our service territories. Our recent regulatory advancements and active filings are shown on slide 9.

Speaker #1: In Wisconsin, we recently received approval of our individual customer rate agreement, supporting Meta's data center development in Beaver Dam. In response to that order, we expect to file a broader large load tariff later this quarter.

Robert J. Durian: In Wisconsin, we recently received approval of our individual customer rate agreement, supporting Meta's data center development in Beaver Dam. In response to that order, we expect to file a broader large load tariff later this quarter. We also received written approval for the expansion of our Bent Tree Wind Farm, adding approximately 150 MW of renewable generation and have now advanced that project into construction. In Iowa, we continue to advance the energy resource investments included in our long-term capital plan. During the quarter, we filed generation certificates for the 720 MW Morgan Valley and the 1.2 GW River Hawk simple cycle natural gas projects, and a generation certificate for an energy storage project totaling approximately 125 MW. From a project execution perspective, our storage, wind repowering, and generation enhancement projects remain on schedule. We recently placed into service the final two generation enhancement projects at Neenah and Sheboygan.

Robert Durian: In Wisconsin, we recently received approval of our individual customer rate agreement, supporting Meta's data center development in Beaver Dam. In response to that order, we expect to file a broader large load tariff later this quarter. We also received written approval for the expansion of our Bent Tree Wind Farm, adding approximately 150 MW of renewable generation and have now advanced that project into construction. In Iowa, we continue to advance the energy resource investments included in our long-term capital plan. During the quarter, we filed generation certificates for the 720 MW Morgan Valley and the 1.2 GW River Hawk simple cycle natural gas projects, and a generation certificate for an energy storage project totaling approximately 125 MW. From a project execution perspective, our storage, wind repowering, and generation enhancement projects remain on schedule. We recently placed into service the final two generation enhancement projects at Neenah and Sheboygan.

Speaker #1: We also received written approval for the expansion of our Bentry Wind Farm, adding approximately 150 megawatts of renewable generation. That has now advanced that project into construction.

Speaker #1: In Iowa, we continue to advance the energy resource investments, included in our long-term capital plan. During the quarter, we filed generation certificates for the $720 megawatt Morgan Valley and the $1.2 gigawatt Riverhawk simple cycle natural gas projects.

Speaker #1: And a generation certificate for an energy storage project totaling approximately $125 megawatts. From a project execution perspective, our storage, wind repowering, and generation enhancement projects remain on schedule.

Speaker #1: We recently placed into service the final two generation enhancement projects at Nina and Sheboygan. These projects allow us to efficiently unlock an additional 260 megawatts of near-term capacity from existing assets while enhancing customer value.

Robert J. Durian: These projects allow us to efficiently unlock an additional 260 MW of near-term capacity from existing assets while enhancing customer value. We also recently started construction activities on the Bobcat Energy Center, a 720 MW simple cycle natural gas project in Marshalltown, Iowa, and the 95 MW RICE project in Burlington, Iowa. Later this year, we anticipate further filings to support customer growth, including an individual customer rate application associated with QTS's Clinton data center in Iowa, and our recently announced 370 MW electric supply agreement. Our focus on execution positions us well to deliver sector-leading growth, help our customers and communities grow and thrive, and create long-term value for customers and shareholders. Thank you for your continued interest in Alliant Energy. Operator, please open the line for questions.

Robert Durian: These projects allow us to efficiently unlock an additional 260 MW of near-term capacity from existing assets while enhancing customer value. We also recently started construction activities on the Bobcat Energy Center, a 720 MW simple cycle natural gas project in Marshalltown, Iowa, and the 95 MW RICE project in Burlington, Iowa. Later this year, we anticipate further filings to support customer growth, including an individual customer rate application associated with QTS's Clinton data center in Iowa, and our recently announced 370 MW electric supply agreement. Our focus on execution positions us well to deliver sector-leading growth, help our customers and communities grow and thrive, and create long-term value for customers and shareholders. Thank you for your continued interest in Alliant Energy. Operator, please open the line for questions.

Speaker #1: We also recently started construction activities on the Bobcat Energy Center, a 720-megawatt simple-cycle natural gas project in Marshalltown, Iowa, and the 95-megawatt Rice project in Burlington, Iowa.

Speaker #1: Later this year, we anticipate further filings to support customer growth, including an individual customer rate application associated with QTS's Clinton Data Center in Iowa and our recently announced 370-megawatt electric supply agreement.

Speaker #1: Our focus on execution positions us well to deliver sector-leading growth. Help our customers and communities grow and thrive, and create long-term value for customers and shareowners.

Speaker #1: Thank you for your continued interest in Alliant Energy. We look forward to speaking with many of you over the coming months. Operator, please open the line for questions.

Speaker #2: Thank you. Mr. Durian?

Operator 3: Thank you, Mr. Durian. 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 to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Shahriar Pourreza with Wells Fargo. Your line is open. Please go ahead.

Operator: Thank you, Mr. Durian. 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 to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Shahriar Pourreza with Wells Fargo. Your line is open. Please go ahead.

Speaker #3: Yes, ma'am.

Speaker #2: 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 to raise your hand.

Speaker #2: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #2: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Shar Pereza with Wells Fargo.

Speaker #2: Your line is open; please go ahead.

Speaker #4: Hey, guys. Good morning.

Shahriar Pourreza: Hey, guys. Good morning.

Shar Pourreza: Hey, guys. Good morning.

Speaker #5: Good morning.

Speaker #6: Good morning.

Lisa Barton: Good morning.

Speaker #4: Morning. Morning, morning. So, Lisa, it's always been kind of like this growth story for you guys. It's been a pretty good hedge against some of the Wisconsin noise.

Lisa Barton: Good morning.

Shahriar Pourreza: Morning. Lisa, Iowa's been kind of like this growth story for you guys. It's been a pretty good hedge against some of the Wisconsin noise, but now you're seeing both Republican and Democratic candidates have been somewhat more guarded around data center developments in their comments. Iowa's getting a little bit noisier than people would have thought. They're not calling for a statewide moratorium. Can we get your latest thoughts around the political backdrop in the state? It's getting noisier than I think a lot of people would have thought. Just the lay of the land would be great.

Shar Pourreza: Morning. Lisa, Iowa's been kind of like this growth story for you guys. It's been a pretty good hedge against some of the Wisconsin noise, but now you're seeing both Republican and Democratic candidates have been somewhat more guarded around data center developments in their comments. Iowa's getting a little bit noisier than people would have thought. They're not calling for a statewide moratorium. Can we get your latest thoughts around the political backdrop in the state? It's getting noisier than I think a lot of people would have thought. Just the lay of the land would be great.

Speaker #4: But now you're seeing both Republican and Democratic candidates have been somewhat more guarded around data center developments and their comments. So I was getting a little bit noisier calling for a statewide moratorium, but can we get your latest thoughts around the political backdrop in the state?

Speaker #4: It's getting noisier than I think a lot of people would have thought. So just a little lay of the land would be great.

Speaker #5: Sure. I mean, while it's always disappointing that some TJM narratives are being repeated more broadly, we tend to see this more from an election standpoint.

Lisa Barton: Sure. While it's always disappointing that some PJM narratives are being repeated more broadly, we tend to see this more from an election standpoint. Look, the math is self-explanatory. By growing, we're able to keep rates flat in Iowa, and the more we grow, the longer we can do that, quite frankly. I think it's important when you're thinking about moratoriums and hearing about them, one, these are big states. Rest assured that whether it be ordinances or moratoriums that we're seeing, they're not impacting our projects nor our pipeline. I'll also say that there's not a one size fits all when it comes to moratoriums. The language really matters. One of the things that we're really excited to see is that the data centers are really focusing on transparency. They're having early conversations with communities, making them feel more comfortable.

Speaker #5: Look, the math is self-explanatory. By growing, we're able to keep rates flat in Iowa, and the more we grow, the longer we can do that, quite frankly.

Speaker #5: I think it's important, when you're thinking about moratoriums and hearing about them—one, these are big states. So, rest assured that whether it be ordinances or moratoriums that we're seeing, they're not impacting our projects, nor our pipeline.

Speaker #5: I'll also say that there's not a one-size-fits-all when it comes to moratoriums. The language really matters. And one of the things that we're really excited to see is that the data centers are really focusing on transparency.

Speaker #5: They're having really conversations with communities, making them feel more comfortable. It's something we're focusing on as well. Whether it be open houses for generation or just being there and available to answer questions that they have with respect to data centers.

Lisa Barton: It's something we're focusing on as well, whether it be open houses for generation or just being there and available to answer questions that they have with respect to data centers. I tell you, one of the things that I just love hearing is the fact that we'll get some phone calls from communities saying, Hey, how do we get a data center in our backyard? That just to me, shows that Iowa remains and will continue to remain open for business.

Speaker #5: But I tell you, one of the things that I just love hearing is the fact that we'll get some phone calls from communities saying, "Hey, how do we get a data center in our backyard?" And that just, to me, shows that Iowa remains, and will continue to remain, open for business.

Speaker #4: Got it. So political rhetoric is rhetoric. Okay. Appreciate that. And then obviously, you guys are seeing good growth across the footprints and you've got new generation.

Shahriar Pourreza: Got it. Political rhetoric is rhetoric. Okay. Appreciate that. Obviously you guys are seeing good growth across the footprints and you've got new generation, you've signed 370 MW CSA, which is in the plan. You have another 3.4 GW out there. It sounds like from Robert's comments that you're going to revisit the CAGR. I guess as we're thinking about it, are you married to the plus, or could we get back into a range, albeit higher? Obviously, we have to account for the lumpiness of the projects and this being kind of a politically sensitive year. I guess how are you sort of thinking about how you would guide in the Q3?

Shar Pourreza: Got it. Political rhetoric is rhetoric. Okay. Appreciate that. Obviously you guys are seeing good growth across the footprints and you've got new generation, you've signed 370 MW CSA, which is in the plan. You have another 3.4 GW out there. It sounds like from Robert's comments that you're going to revisit the CAGR. I guess as we're thinking about it, are you married to the plus, or could we get back into a range, albeit higher? Obviously, we have to account for the lumpiness of the projects and this being kind of a politically sensitive year. I guess how are you sort of thinking about how you would guide in the Q3?

Speaker #4: You've signed 370 megawatts ESA, which is in the plan. You have another 3.4 gigawatts out there. It sounds like, from Robert's comments, that you're going to revisit the Kager.

Speaker #4: I guess, as we're thinking about it, are you married to the plus or could we get back into a range albeit higher? Obviously, we have to account for the lumpiness of the projects and this being kind of a politically sensitive year.

Speaker #4: But I guess, how are you sort of thinking about how you would guide in the third quarter?

Speaker #1: Yeah, great question, Shar. Yeah, so we're looking forward to sharing more information in the third quarter call. As part of that process, as typical for us, we'll update our four to five-year capital expenditure plan.

Robert J. Durian: Yeah. Great question, Char. We are looking forward to sharing more information in the Q3 call. As part of that process, as is typical for us, we will update our 4 to 5-year CapEx plan, and that will really drive our confidence level with how we might be able to change the EPS CAGR going forward. More to come on that in the future. We are evaluating, probably wanting to provide more transparency, more details in the future. Historically, when we were going into last year, we wanted to use the plus to give us a little more flexibility, but I think we will have more confidence when we get to the Q3 and provide a little more specificity if that will help the investors.

Robert Durian: Yeah. Great question, Char. We are looking forward to sharing more information in the Q3 call. As part of that process, as is typical for us, we will update our 4 to 5-year CapEx plan, and that will really drive our confidence level with how we might be able to change the EPS CAGR going forward. More to come on that in the future. We are evaluating, probably wanting to provide more transparency, more details in the future. Historically, when we were going into last year, we wanted to use the plus to give us a little more flexibility, but I think we will have more confidence when we get to the Q3 and provide a little more specificity if that will help the investors.

Speaker #1: And that will really drive kind of our confidence level with how we might be able to change the EPS Kager going forward. So more to come on that in the future.

Speaker #1: Yeah, we're evaluating, probably wanting to provide more transparency is how we characterize more details in the future. And so historically, when we were going into last year, we wanted to use the plus to give us a little more flexibility.

Speaker #1: But I think we'll have more confidence when we get to the third quarter and can provide a little more specificity, if that'll help the investors.

Speaker #4: Got it. So, not to lead the witness, but it sounds like it’ll go back into a range in some form.

Shahriar Pourreza: Got it. Not to lead the witness, but it sounds like it will go back into a range in some form.

Shar Pourreza: Got it. Not to lead the witness, but it sounds like it will go back into a range in some form.

Speaker #1: Yeah. Yeah, more specificity, yeah, whether it's a range or more specific targets for each year. As you indicated, there is, I would say, some lumpiness to it in the sense of if you look at our capital expenditures on an annual basis, there'll be some years that are higher than others.

Robert J. Durian: More specificity, whether it is a range or more specific targets for each year. As you indicated, there is obviously some lumpiness to it in the sense of, if you look at our CapEx on an annual basis, there will be some years that are higher than others, and that could drive some of the earnings higher than the others.

Robert Durian: More specificity, whether it is a range or more specific targets for each year. As you indicated, there is obviously some lumpiness to it in the sense of, if you look at our CapEx on an annual basis, there will be some years that are higher than others, and that could drive some of the earnings higher than the others.

Speaker #1: And that could drive some of the earnings higher than the others.

Speaker #4: Okay, perfect. That answers it. Thank you, guys. Appreciate it.

Shahriar Pourreza: Okay. Perfect. That answers it. Thank you, guys. Appreciate it.

Shar Pourreza: Okay. Perfect. That answers it. Thank you, guys. Appreciate it.

Speaker #5: Thank you, Shar.

Operator 3: Thank you, Char. Your next question comes from the line of Steve Pambaresi with RBC Capital Markets. Your line is open. Please go ahead. Go on, Steve.

Operator: Thank you, Char. Your next question comes from the line of Steve Pambaresi with RBC Capital Markets. Your line is open. Please go ahead. Go on, Steve.

Speaker #2: Your next question comes from the line of Steve Giambrese with RBC Capital Markets. Your line is open; please go ahead.

Speaker #6: Hi, good morning. Thanks very much. Good morning. How are you? Just thanks very much for taking my question. Just had a quick one on the QTS amendments and the ramp.

Steve Pambaresi: Hi, good morning. Thanks very much. Good morning. Thanks very much for taking my question. Just had a quick one on the QTS amendments and the ramp. Can you just speak a little bit to kind of either what that means from a financial plan perspective or a shaping of capital deployment perspective or like a staff perspective? There's a lot of questions in there, but I guess the way we've been thinking about it is maybe you'd be utilizing tax credits a little more upfront and then the load ramps in later and allows you to earn your returns on higher invested capital balances. Just wondering if this increased accelerated load ramp, how that changes the financial plan.

Steve D'Ambrisi: Hi, good morning. Thanks very much. Good morning. Thanks very much for taking my question. Just had a quick one on the QTS amendments and the ramp. Can you just speak a little bit to kind of either what that means from a financial plan perspective or a shaping of capital deployment perspective or like a staff perspective? There's a lot of questions in there, but I guess the way we've been thinking about it is maybe you'd be utilizing tax credits a little more upfront and then the load ramps in later and allows you to earn your returns on higher invested capital balances. Just wondering if this increased accelerated load ramp, how that changes the financial plan.

Speaker #6: Can you just speak a little bit to kind of either what that means from a financial plan perspective or a shaping of capital deployment perspective or like a staff perspective?

Speaker #6: There are a lot of questions in there, but I guess the way we've been thinking about it is maybe you'd be utilizing tax credits a little more upfront, and then the load ramp ramps in later and allows you to earn your returns on higher invested capital balances.

Speaker #6: And just wondering if this increased, accelerated load ramp—kind of how that changes the financial plan.

Speaker #5: Yeah, thanks, Steve. And I'm going to talk to a couple of things that I'm incredibly proud of with respect to our team. We've been consistent in our approach in making sure that we're targeting near-term growth opportunities and being able to accommodate an accelerated load ramp with QTS is something that makes sure that our communities see the benefits sooner from a property tax standpoint, other customers see the benefit, and shareholders as well.

Lisa Barton: Yeah. Thanks, Steve. I'm going to talk to a couple of things that I'm incredibly proud of with respect to our team. We've been consistent in our approach in making sure that we're targeting near-term growth opportunities and being able to accommodate an accelerated load ramp with QTS is something that makes sure that our communities see the benefits sooner from a property tax standpoint, other customers see the benefit, and shareholders as well. I'll turn it over to Robert to walk through some of the more details with respect to your question.

Speaker #5: So, I'll turn it over to Robert to walk through some more details with respect to your question.

Speaker #1: Yeah, Steve, I think about it. Our CapEx plan is aligned with the ramp rates right now, so I wouldn't expect much of a change there for CapEx.

Robert J. Durian: Yes, Steve, I think about it, our CapEx plan is aligned with the ramp rates right now, I wouldn't expect much of a change there for CapEx. We are expecting to have higher revenues, specifically in the years 2027 and 2028. What that really does for us, it really helps our existing customers in the sense of allows us to not use as many tax credits through the growth phase of our business here and could potentially translate into helping us to stay out over a longer period of time.

Robert Durian: Yes, Steve, I think about it, our CapEx plan is aligned with the ramp rates right now, I wouldn't expect much of a change there for CapEx. We are expecting to have higher revenues, specifically in the years 2027 and 2028. What that really does for us, it really helps our existing customers in the sense of allows us to not use as many tax credits through the growth phase of our business here and could potentially translate into helping us to stay out over a longer period of time.

Speaker #1: But we are expecting to have higher revenues specifically in the years 2027 and 2028. And what that really does for us, it really helps our existing customers in the sense that it allows us to not use as many tax credits through the growth phase of our business here.

Speaker #1: And it could potentially translate into helping us stay out over a longer period of time.

Speaker #5: And just a data point, QTS as of today has got over 40 megawatts' worth of load, which is great to see.

Lisa Barton: Just a data point, QTS, as of today, has got over 40MW worth of load, which is great to see.

Speaker #6: That's awesome. Thanks, Lisa and Robert. And then just a follow-up on that—can you talk a little bit about discussions around expansion with existing customers in Iowa?

Steve Pambaresi: That's awesome. Thanks, Lisa and Robert. Just a follow-up on that. Just can you talk a little bit about discussions around expansion of the existing customers in Iowa? Obviously, you have the 900MW at the ICR that you're filing at QTS 2, just if QTS 1 or Google and Cedar Rapids have existing extra acreage they could potentially expand into or just any thoughts on that.

Steve D'Ambrisi: That's awesome. Thanks, Lisa and Robert. Just a follow-up on that. Just can you talk a little bit about discussions around expansion of the existing customers in Iowa? Obviously, you have the 900MW at the ICR that you're filing at QTS 2, just if QTS 1 or Google and Cedar Rapids have existing extra acreage they could potentially expand into or just any thoughts on that.

Speaker #6: Obviously, you have the 900 megawatts that ICR that you're filing at QTS too. But just if QTS1 or Google and Cedar Rapids have existing extra acreage, they could potentially expand into or just any thoughts on that?

Speaker #5: Yeah. So when you think about the 2 to 4 that we talk about with respect to the plan, we're super excited that even though we announced the 2 to 4 not less than a year ago, we're able to announce 370 megawatts' worth of additional load growth. Conversations are all of the above.

Lisa Barton: Yeah. When you think about the two to four that we talk about with respect to the plan, we're super excited that we had, even though we announced the two to four not less than a year ago, that we're able to announce 370MW worth of additional load growth. Conversations are all of the above. New sites, existing sites, all of that. We're of course, not able to share that at this time, just stay tuned with respect to our Q3 update, which will have any load, whether it be load accelerations or new load growth opportunities reflected in the resource plan and our CapEx plan.

Speaker #5: New sites, existing sites, all of that. We're, of course, not able to share that at this time, but just stay tuned with respect to our third-quarter update, which will have any load—whether it be load accelerations or new load growth opportunities—reflected in the resource plan and our CapEx plan.

Speaker #6: All right. Great. Thanks very much. I really appreciate it. Thanks, Lisa. Thanks, Robert.

Steve Pambaresi: All right. Great. Thanks very much. Really appreciate it. Thanks, Lisa. Thanks, Robert.

Steve D'Ambrisi: All right. Great. Thanks very much. Really appreciate it. Thanks, Lisa. Thanks, Robert.

Speaker #2: Your next question comes from the line of Andrew Weisel with Scotiabank. Your line is open. Please go ahead.

Operator 3: Your next question comes from the line of Andrew Weisel with Scotiabank. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Andrew Weisel with Scotiabank. Your line is open. Please go ahead.

Speaker #7: Good morning, Andrew.

Lisa Barton: Morning, Andrew.

Speaker #8: Hey, good morning, everyone. First question, just if I could elaborate on Shar's a little bit, get more specific. Can you talk about the status of the Linn County data center moratorium?

Andrew Weisel: Hey, good morning, everyone. First question, just if I could elaborate on Char's a little bit and get more specific. Can you talk about the status of the Linn County data center moratorium? How does that work with the City of Cedar Rapids and your projects there? Would they be impacted? Or if they were to expand, might they be affected? And if so, would that depend on the timing of announcements or construction? How would that all work?

Speaker #8: How does that work with the city of Cedar Rapids and your projects there? Would they be impacted? Or if they were to expand, might they be affected?

Speaker #8: And if so, would that depend on the timing of announcements or construction? How would that all work?

Speaker #7: No impact. It's the unincorporated area of Linn County. It has no impact on the data center growth opportunity. In fact, I don't think we could have a better advocate out there than Mayor Tiffany O'Donnell.

Lisa Barton: No impact. It's the unincorporated area of Linn County. It has no impact on the data center growth opportunity. In fact, I don't think we can have a better advocate out there with Mayor Tiffany O'Donnell. If you follow any of her feeds, she's got an active podcast and so forth. She continues to call out the benefits that they are seeing real-time in Cedar Rapids tied to these data centers.

Speaker #7: If you follow any of her feeds, she's got an active podcast and so forth. She continues to call out the benefits that they are seeing in real time in Cedar Rapids, tied to these data centers.

Speaker #8: Terrific, that's what we thought—just wanted to confirm. Okay, next question, I just wanted to, excuse me, ask about the load growth forecast. From the slides, it looks like you're taking up the numbers for 2026 now to 2 to 3 percent, from 1 percent previously.

Andrew Weisel: Terrific. That's what we thought. Just wanted to confirm. Okay, next question. Just wanted to ask about the load growth forecast. From the slides, it looks like you're taking up the numbers for 2026 now 2% to 3% from 1% previously. Is that a function of data centers ramping up faster than expected or better growth from the rest of the customer base? Is that going to bode well for 2027 and beyond, or is that more of a near-term positive that might not be sustainable? Similarly, on the O&M side, that number went up by 1 percentage point as well. With a comment that it's weighted to the H1. Is that one-time expenses that have already happened or is that more of a higher run rate due to inflation or whatever?

Speaker #8: Is that a function of data centers ramping up faster than expected or better growth from the rest of the customer base? And is that going to bode well for 27 and beyond, or is that more of like a near-term positive that might not be sustainable?

Speaker #8: And then similarly on the O&M side, that number went up by a percentage point as well. But would you comment that it's weighted to the first half?

Speaker #8: So, is that one-time expenses that have already happened, or is that more of a higher run rate due to inflation or whatever?

Speaker #1: Yeah, great questions, Andrew. Yeah, think of the sales as probably higher than expected for us. We're seeing some positive developments, not only with the data centers going a little bit faster than we expected originally here.

Robert J. Durian: Great questions, Andrew. Think of the sales as probably higher than expected for us. We're seeing some positive developments, not only with the data centers growing a little bit faster than we expected originally here, so we see some uplift there, but also just our core business, when you think about all the other businesses throughout our service territory, seem to be doing better than we originally expected. I don't think that that's temporary. I think that's probably more of a function of what we're seeing as far as ongoing economic impacts. Some of that we would actually attribute to the data center developments themselves, specifically in the City of Cedar Rapids. It's driving a lot of economic benefits when you think about all the construction workers there.

Robert Durian: Great questions, Andrew. Think of the sales as probably higher than expected for us. We're seeing some positive developments, not only with the data centers growing a little bit faster than we expected originally here, so we see some uplift there, but also just our core business, when you think about all the other businesses throughout our service territory, seem to be doing better than we originally expected. I don't think that that's temporary. I think that's probably more of a function of what we're seeing as far as ongoing economic impacts. Some of that we would actually attribute to the data center developments themselves, specifically in the City of Cedar Rapids. It's driving a lot of economic benefits when you think about all the construction workers there.

Speaker #1: So, we see some uplift there, but also just our core business—when you think about all the other businesses throughout our service territory—seems to be doing better than we originally expected.

Speaker #1: So I don't think that that's temporary. I think that's probably more of a function of what we're seeing as far as ongoing economic impacts, and some of that we would actually attribute to the data center developments themselves.

Speaker #1: Specifically in the city of Cedar Rapids, it’s driving a lot of economic benefits when you think about all the construction workers there. We have two projects right now underway—one for QTS and one for Google.

Robert J. Durian: We have two projects right now underway, one for QTS and one for Google, and they have in excess of 10,000 workers in that city. If you think about the size of that city of roughly 150,000 in population, it's got a pretty big impact. That's driving more hotel usage, more restaurant usage and other things. We're seeing some of the ancillary benefits of some of that data center development activities that we're looking forward to spreading throughout other parts of the state and into Wisconsin as well. Specifically related to your O&M question, as we continue to manage the business, as we're seeing higher, what I'd say, temperature normalized sales, that gives us an opportunity to continue to invest in the business. We're investing in generation, energy delivery.

Robert Durian: We have two projects right now underway, one for QTS and one for Google, and they have in excess of 10,000 workers in that city. If you think about the size of that city of roughly 150,000 in population, it's got a pretty big impact. That's driving more hotel usage, more restaurant usage and other things. We're seeing some of the ancillary benefits of some of that data center development activities that we're looking forward to spreading throughout other parts of the state and into Wisconsin as well. Specifically related to your O&M question, as we continue to manage the business, as we're seeing higher, what I'd say, temperature normalized sales, that gives us an opportunity to continue to invest in the business. We're investing in generation, energy delivery.

Speaker #1: And they have in excess of 10,000 workers in that city. And if you think about the size of that city, of roughly 150,000, in driving more hotel usage, more restaurant usage, and other things.

Speaker #1: And so we're seeing some of the ancillary benefits of some of that data center development activity that we're looking forward to spreading throughout other parts of the state and into Wisconsin as well.

Speaker #1: Specifically related to your O&M question, yeah, as we continue to manage the business and we're seeing higher, what I’d say, temperature-normalized sales, that gives us an opportunity to continue to invest in the business.

Speaker #1: And so we're investing in generation and energy delivery. We want to make sure that we have a very reliable system for our customers. And so we're making sure we're making prudent investments to ensure that happens.

Robert J. Durian: We want to make sure that we have a very reliable system for our customers, we're making sure we're breaking prudent investments to make sure that that happens. We had kind of expected that we were going to have a little bit higher expenses in the H1 of the year. Some of that's related to things like the timing of generation outages. All in all, I'd say the H1 of the year is pretty much what we had expected. The H2 will be a little bit lighter, but we may see if we continue to have some higher retail sales, continued investments in the business to make sure we, like I said, focus on that reliability and customer service.

Robert Durian: We want to make sure that we have a very reliable system for our customers, we're making sure we're breaking prudent investments to make sure that that happens. We had kind of expected that we were going to have a little bit higher expenses in the H1 of the year. Some of that's related to things like the timing of generation outages. All in all, I'd say the H1 of the year is pretty much what we had expected. The H2 will be a little bit lighter, but we may see if we continue to have some higher retail sales, continued investments in the business to make sure we, like I said, focus on that reliability and customer service.

Speaker #1: So, we had kind of expected that we were going to have slightly higher expenses in the first half of the year.

Speaker #1: Some of that's related to things like the timing of generation outages. So all in all, I'd say the first half of the year is pretty much what we had expected.

Speaker #1: The second half will be a little bit lighter. But we may see if we continue to have some higher retail sales continue to investments in the business to make sure we, like I said, focus on that reliability and customer service.

Speaker #8: That's great. So it's essentially pulling forward some of these expenses and increasing—a good situation to be in. And just to clarify, the construction workers and the benefits from them, should they be expected to continue to be there in line with the load ramp that you detail in slide four there, like through '28, '29, '30?

Andrew Weisel: That's great. It's essentially pulling forward some of these expenses and increasing. A good situation to be in. Just to clarify, the construction workers and the benefits from them, should they be expected to continue to be there in line with the load ramps that you detail in slide four there, like through 2028, 2029, 2030?

Speaker #5: It's a they're there for quite some time. Exactly. I mean, there's just a lot of development that's being undertaken when you think about I'll just use QTS as an example.

Lisa Barton: They're there for quite some time. Exactly. There's just a lot of development that's being undertaken. When you think about, I'll just use QTS as an example, their seven-building campus, they're doing one building, then the next building and so forth, and they're really moving at a very quick pace. I'm glad we put a-

Speaker #5: There are seven building campuses. I mean, they're doing one building, then the next building, and so forth. And they're really moving at a very quick pace.

Speaker #5: And we're glad we could accomplish that.

Speaker #8: With potentially more to come if you secure more of the two to four gigawatts. And then some, potentially. Okay, terrific. Thank you so much.

Andrew Weisel: With potentially more to come if you secure more of the 2 to 4 gigawatts and then some, potentially. Okay, terrific. Thank you so much

Speaker #5: A place for development, quite frankly. We've seen this at other locations in Iowa even.

Lisa Barton: place for development, quite frankly. We've seen this at other locations in Iowa, even.

Speaker #2: Your next question comes from Nick Campanella with Barclays. Your line is open; please go ahead.

Operator 3: Your next question comes from Nicholas Campanella with Barclays. Your line is open. Please go ahead.

Operator: Your next question comes from Nicholas Campanella with Barclays. Your line is open. Please go ahead.

Speaker #7: Good morning, Nick.

Lisa Barton: Good morning, Nick.

Speaker #9: Hey, good morning. Thanks for all the updates today, I appreciate it. I just wanted to come back to the magnitude and the potential of what could come on the third quarter plan. You have the 2 to 4 gigawatts out there.

Nicholas Campanella: Hey, good morning. Thanks for all the updates today. Appreciate it. I just wanted to come back to the magnitude and the potential of what could come on the Q3 plan. You have the 2 to 4 gigawatts out there. Is there any way to understand realistically, within that, what you have visibility to? Is it more about just increasing the load ramps that you currently have, a couple hundred megawatts, or extending those counterparty contracts a couple hundred megawatts? Do you have visibility to some kind of larger 1 gigawatt deals within that, just as we consider the H2? Clearly going really well. Thanks.

Nick Campanella: Hey, good morning. Thanks for all the updates today. Appreciate it. I just wanted to come back to the magnitude and the potential of what could come on the Q3 plan. You have the 2 to 4 gigawatts out there. Is there any way to understand realistically, within that, what you have visibility to? Is it more about just increasing the load ramps that you currently have, a couple hundred megawatts, or extending those counterparty contracts a couple hundred megawatts? Do you have visibility to some kind of larger 1 gigawatt deals within that, just as we consider the H2? Clearly going really well. Thanks.

Speaker #9: Is there any way to understand, realistically, within that, what you have visibility to? Is it more about just increasing the load ramps that you currently have—a couple hundred megawatts—or extending those counterparty contracts a couple hundred megawatts?

Speaker #9: Or do you have visibility to some kind of larger one-gigawatt deals within that, just as we kind of consider the back half of the year?

Speaker #9: Just clearly going really well. Thanks.

Speaker #7: Yeah. I mean, it just that is a wait and see. We'll announce with respect to the resource plan. Just keep in mind when we have these discussions with these large load customers, we need to sit there and make sure that they have their load ramp in place, that they've got land control.

Lisa Barton: Yeah. That is a wait and see. We'll announce with respect to the resource plan. Just keep in mind, when we have these discussions with these large load customers, we need to sit there and make sure that they have their load ramp in place, that they've got land control. We're loving the fact that they're investing time with the communities to bring them up to speed so that there are no surprises, because quite frankly, that's very consistent with our approach on making sure we're taking the risk out. That risk, it's been consistent with our approach, making sure that we're not relying on long lead time transmission and so forth. We continue to see inbounds with respect to interest in the state. We're feeling very positive about the economic development efforts that we have underway. You'll get clarity when we have this resource plan buckled up.

Speaker #7: We're loving the fact that they're investing time with the communities to bring them up to speed so that there are no surprises, because quite frankly, that's very consistent with our approach on making sure we're taking the risk out.

Speaker #7: That risk is it's been consistent with our approach, making sure that we're not relying on long lead time transmission and so forth. We continue to see inbounds with respect to interest in the state.

Speaker #7: So we're feeling very positive about the economic development efforts that we have underway. And you'll get clarity when we have these resource plans buckled up.

Speaker #9: Okay. No, no, I appreciate that. And I mean, I know you talked about it a little there too, but you're trying to match the supply with new large loads and make sure you're out there sourcing the right equipment.

Nicholas Campanella: Okay. No, I appreciate that. I know you talked about it a little there too, but you're trying to match the supply with new large loads and make sure you're out there sourcing the right equipment. Just can you talk about the state of supply chain, and do you have better visibility Q1? Is it the same? How to think about that?

Nick Campanella: Okay. No, I appreciate that. I know you talked about it a little there too, but you're trying to match the supply with new large loads and make sure you're out there sourcing the right equipment. Just can you talk about the state of supply chain, and do you have better visibility Q1? Is it the same? How to think about that?

Speaker #9: So, can you talk about the state of the supply chain, and do you have better visibility for the first quarter? Is it the same?

Speaker #9: How to think about that?

Speaker #7: Sure. I mean, this is something that we have on these discussions are not new discussions. So we have the opportunity to figure out not only with our transmission partners what's needed in terms of the timing of necessary transmission upgrades, but also what's necessary on the generation side.

Lisa Barton: Sure. These discussions are not new discussions, so we have the opportunity to figure out not only with our transmission partners what's needed in terms of the timing of necessary transmission upgrades, but also what's necessary on the generation side. That's just something we do all the time. That's our business. We issue RFPs and things like that to make sure that we've got access to generation. We feel very confident in our ability to meet the needs of our customers and communities as we expand.

Speaker #7: That's just something we do all the time. That's our business. We issue RFPs and things like that to make sure that we've got access to generation.

Speaker #7: But we feel very confident in our ability to meet the needs of our customers and communities as we expand.

Speaker #9: Okay, and just one more, if I could. Just your peer in Wisconsin with their own VLC—there's just been heightened credit requirements being kind of circulated in the state.

Nicholas Campanella: Okay. Just one more, if I could. Just your peer in Wisconsin with their own VLC, there's just been heightened credit requirements being circulated in the state, and I'm just wondering if that has any impact to how you guys view the potential for new sites in the state and just, I guess, the total addressable market there, and if that's causing at all discussions to pivot increasingly towards Iowa. Thank you.

Nick Campanella: Okay. Just one more, if I could. Just your peer in Wisconsin with their own VLC, there's just been heightened credit requirements being circulated in the state, and I'm just wondering if that has any impact to how you guys view the potential for new sites in the state and just, I guess, the total addressable market there, and if that's causing at all discussions to pivot increasingly towards Iowa. Thank you.

Speaker #9: And I'm just wondering if that has any impact on how you guys view the potential for new sites in the state and, just, I guess, the total addressable market there—and if that's causing, at all, discussions to pivot increasingly towards Iowa.

Speaker #9: Thank you.

Speaker #7: Yeah, great question. So, with respect to TARA, if you've seen that a number of utilities have filed tariffs, we will be filing a tariff in Wisconsin later this year.

Lisa Barton: Yeah, great question. With respect to tariff, you've seen that a number of utilities have filed tariffs. We will be filing a tariff in Wisconsin later this year. Ours will very much be aligned with Xcel's. We see that benefits associated with a slice of system approach. With respect to the credit impacts and so forth, I think it's really important from an economic development standpoint to recognize that it applies to all large loads, right? Large manufacturers and so forth. I think it's appropriate that the commission and the state take a measured approach with respect to credit requirements and so forth. I will say this. We have a track record of having very high quality counterparties, we're not seeing this adversely impact our growth trajectory at all.

Speaker #7: Ours will very much be aligned with Excel's. We see that benefits are associated with a slice-of-system approach. With respect to the credit impacts and so forth, I think it's really important from an economic development standpoint to recognize that it applies to all large loads, right?

Speaker #7: Large manufacturers and so forth. So I think it's appropriate that the commission in the state take a measured approach with respect to credit requirements and so forth.

Speaker #7: But I will say this: I mean, we have a track record of having very, very high-quality counterparties, and so we're not seeing this adversely impact our growth trajectory at all.

Speaker #9: Very fair. Thank you very much.

Nicholas Campanella: Very fair. Thank you very much.

Nick Campanella: Very fair. Thank you very much.

Speaker #2: Your next question comes from Julian Dumoulin-Smith with Jefferies. Your line is open. Please go ahead.

Operator 3: Your next question comes from Julien Dumoulin-Smith with Jefferies. Your line is open. Please go ahead.

Operator: Your next question comes from Julien Dumoulin-Smith with Jefferies. Your line is open. Please go ahead.

Speaker #7: Hey, Julian.

Lisa Barton: Hey, Julien.

Speaker #9: Hi, team. Hi, team. This is actually Tanner on for Julian. Good morning. So at the risk of being repetitive here on the data center conversation, in terms of the funnel or the pipeline opportunities, you guys have arguably one of the more disciplined approaches in the sector.

[Analyst] (Jefferies): Hi, team. This is actually Tanner on for Julien. Good morning. At the risk of being repetitive here on the data center conversation, in terms of the funnel or the pipeline opportunities, you guys have arguably one of the more disciplined approaches in the sector. Just kind of ahead of this Q3 update, gauging your comfort with some of the outer parts of the pipeline, and whether there might be a higher threshold for future projects to reach for them to be integrated within the disclosed funnel. Just how should we think about kind of on the ground, the outer parts of that pipeline?

Tanner James: Hi, team. This is actually Tanner on for Julien. Good morning. At the risk of being repetitive here on the data center conversation, in terms of the funnel or the pipeline opportunities, you guys have arguably one of the more disciplined approaches in the sector. Just kind of ahead of this Q3 update, gauging your comfort with some of the outer parts of the pipeline, and whether there might be a higher threshold for future projects to reach for them to be integrated within the disclosed funnel. Just how should we think about kind of on the ground, the outer parts of that pipeline?

Speaker #9: Just kind of ahead of this Q3 update, gauging your comfort with some of the outer parts of the pipeline and whether there might be a higher threshold for future projects to reach for them to be integrated within the disclosed funnel.

Speaker #9: Just how should we think about, kind of, on the ground, the outer parts of that pipeline?

Speaker #7: Yeah, that's a great question. I mean, we continue to see a robust level of inbound calls. We like our disciplined approach and have not changed it from how we talked about it last year.

Lisa Barton: Yeah, it's a great question. I mean, we continue to see a robust level of inbound calls. We like our disciplined approach. We have not changed it from how we talked about it last year. We want to make sure that our data centers have land control. We want to make sure that they've got the load ramp. We want to make sure that the transmission studies are either in progress and pretty far along or completed. We want to make sure that we've got a line of sight with respect to the generation. Again, going back to what I said earlier, just really excited that the data centers are spending a little bit more time with the communities, that the communities are asking questions. Even the ordinances and so forth that you're seeing in place, it's giving them flexibility. It's allowing them to zone for data centers.

Speaker #7: We want to make sure that our data centers have land control. We want to make sure that they've got the load ramp. We want to make sure that the transmission studies are either in progress and pretty far along, or completed.

Speaker #7: And we want to make sure that we've got a line of sight with respect to the generation. And again, kind of going back to what I said earlier, just really excited that the data centers are spending a little bit more time with the communities, that the communities are asking questions.

Speaker #7: Even the ordinances and place, it's giving them flexibility. It's allowing them to zone for data centers. And all of that, I think, is just a great early indicator of Iowa continuing to be open for business.

Lisa Barton: All of that, I think, is just a great early indicator of Iowa continuing to be open for business.

Speaker #9: Great, thank you. Maybe switching gears here—on the slides, you call out the policy decision on the self-funded network upgrades as a potential watch item.

[Analyst] (Jefferies): Great. Thank you. Maybe switching gears here, on the slides you call out FERC's policy decision on the self-funded network upgrades as a potential watch item. Can you maybe just remind us of the potential net benefit to Alliant here, whether it be in spend or in ease of customer activity if this decision goes your way? Just help us size the potential benefits of this.

Tanner James: Great. Thank you. Maybe switching gears here, on the slides you call out FERC's policy decision on the self-funded network upgrades as a potential watch item. Can you maybe just remind us of the potential net benefit to Alliant here, whether it be in spend or in ease of customer activity if this decision goes your way? Just help us size the potential benefits of this.

Speaker #9: Can you maybe just remind us of the potential net benefit to Alliant here, whether it be in spend or in ease of customer activity, if this decision goes your way?

Speaker #9: Just kind of help us size the potential benefits of this.

Speaker #3: Yeah, I'd say that's an item that we continue to monitor. Obviously, we're awaiting a decision before we know what the potential full implications of that are.

Robert J. Durian: Yeah, I'd say that's an item that we continue to monitor. Obviously, we're awaiting the decision before we know what the potential full implications of that are. There is quite a few projects that we're building right now from a generation standpoint that will require some transmission upgrades that could provide us the opportunity, if we so choose, to invest in those for ourselves. We see that as a potential opportunity for not only additional CapEx, but it could provide some customer benefits as a result of our cost of capital being slightly lower than what we see with the transmission company. I think that would be a win-win for both our investors and our customers if that were to come about.

Robert Durian: Yeah, I'd say that's an item that we continue to monitor. Obviously, we're awaiting the decision before we know what the potential full implications of that are. There is quite a few projects that we're building right now from a generation standpoint that will require some transmission upgrades that could provide us the opportunity, if we so choose, to invest in those for ourselves. We see that as a potential opportunity for not only additional CapEx, but it could provide some customer benefits as a result of our cost of capital being slightly lower than what we see with the transmission company. I think that would be a win-win for both our investors and our customers if that were to come about.

Speaker #3: But there are quite a few projects that we're building right now from a generation standpoint that will require some transmission upgrades that could provide us the opportunity, if we so choose, to invest in those for ourselves.

Speaker #3: We see that as a potential opportunity for not only additional CapEx, but it could provide some customer benefits as a result of our cost of capital being slightly lower than what we see with the transmission company.

Speaker #3: So, I think that would be a win-win for both our investors and our customers if that were to come about.

Speaker #9: Great. Thank you very much.

[Analyst] (Jefferies): Great. Thank you very much.

Tanner James: Great. Thank you very much.

Speaker #2: Your next question comes from the line of Paul Fremont with Lattenberg. Your line is open. Please go ahead.

Operator 3: Your next question comes from the line of Paul Fremont with Ladenburg. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Paul Fremont with Ladenburg. Your line is open. Please go ahead.

Speaker #7: Good morning, Paul.

Lisa Barton: Good morning, Paul.

Speaker #10: Good morning. I was hoping you could talk a little bit about the recent changes in the Wisconsin governor race. Mandela Barnes just dropped out.

Paul Fremont: Good morning. I was hoping you would talk a little bit about the recent changes in the Wisconsin governor race. Mandela Barnes just dropped out. If you could maybe summarize the positions of Hong versus Tom on their views of data center development in the state. Hong seems very much in the camp of wanting a statewide moratorium.

Speaker #10: So, if you could maybe summarize the positions of Hong versus Tiffany on their views of data center development in the state. Hong seems very much in the camp of wanting a statewide moratorium.

Speaker #7: Yeah, good question. I mean, it's a very active political landscape here in Wisconsin, and quite frankly, the state has always enjoyed a practical and pragmatic approach with respect to pretty much everything in the state.

Lisa Barton: Yeah, good question. It's a very active political landscape here in Wisconsin. Quite frankly, the state has always enjoyed a practical and pragmatic approach with respect to really pretty much everything in the state. It is disappointing that there's some narratives that I do think play very well in PJM and may be more true in PJM. I tell you, the math is self-explanatory. The Brattle Group reinforced that our approach makes sense, and we'll continue to use this as an opportunity to speak with all candidates on this topic. I think once we get through the primaries and see who comes out of that's just another great opportunity for us to educate folks on what we're doing, why we're doing it, and provide the details, because it's the details that matter. With respect to working with either Republicans or Democrats, again, that's what we do.

Speaker #7: It is disappointing that there are some narratives that I do think play very well in PJM and may be more true in PJM, but I tell you, the math is self-explanatory.

Speaker #7: The Brattle Group reinforced that our approach makes sense and will continue to use this as an opportunity to speak with all candidates on this topic.

Speaker #7: I think once we get through the primaries and see who comes out of that, that's just another great opportunity for us to educate folks on what we're doing, why we're doing it, and provide the details, because it's the details that matter.

Speaker #7: And with respect to working with either Republicans or Democrats, again, that's what we do. That's in our DNA, and we look forward to having those more detailed opportunities.

Lisa Barton: That's in our DNA, and we look forward to having those more detailed opportunities.

Speaker #10: So would you say at this point that the likelihood of new data center development is in Wisconsin is much, much lower than potential new announcements in Iowa?

Paul Fremont: Would you say at this point that the likelihood of new data center development in Wisconsin is much, much lower than potential new announcements in Iowa?

Speaker #7: No, I don't think so. I mean, and even when you like I mentioned earlier, Paul, the moratoriums and ordinances that you've seen, they're not impacting our projects or our pipeline.

Lisa Barton: No, I don't think so. Even when, like I mentioned earlier, Paul, the moratoriums and ordinances that you've seen, they're not impacting our projects or our pipeline. Now, what we've always mentioned is that we have more land mass in Iowa. It's, from a service territory standpoint, a larger state.

Speaker #7: Now, what we've always mentioned is that we have more land mass in Iowa. From a service territory standpoint, it's a larger state.

Speaker #10: And then, I think in the past, you've talked about a potential stayout through at least the period where you have a GRC rate freeze in effect.

Paul Fremont: I think in the past, you've talked about a potential stay out through at least the period where you have a GRC rate freeze in effect. How much additional runway does the QTS ramp up provide you with? Is it like a year? How can we put that into perspective in terms of adding to your stay out?

Speaker #10: How much additional sort of runway does the QTS ramp-up provide you with? Is it like a year, or how can we sort of put that into perspective?

Speaker #10: In terms of adding to your stay out?

Speaker #3: Yeah, Paul, good question. Yeah. So as a reminder for folks, we have a commitment to stay at a rate reviews in Iowa for our retail electric business through 2029.

Robert J. Durian: Yeah, Paul, good question. Yeah. As a reminder for folks, we have a commitment to stay out of rate reviews in Iowa for our retail electric business through 2029. We really are focused right now on trying to add more data centers and trying to accelerate load. The combination of that two could give us an opportunity to stay out even longer. We think that's the right thing to do for our customers and our communities, we're going to focus on that. It'll largely depend on how many additional data centers we sign up, probably more so than what I would consider the ramping. If we can add several hundred megawatts more of data centers in multiple different examples, we could see an opportunity to potentially go beyond 2029 into the future.

Robert Durian: Yeah, Paul, good question. Yeah. As a reminder for folks, we have a commitment to stay out of rate reviews in Iowa for our retail electric business through 2029. We really are focused right now on trying to add more data centers and trying to accelerate load. The combination of that two could give us an opportunity to stay out even longer. We think that's the right thing to do for our customers and our communities, we're going to focus on that. It'll largely depend on how many additional data centers we sign up, probably more so than what I would consider the ramping. If we can add several hundred megawatts more of data centers in multiple different examples, we could see an opportunity to potentially go beyond 2029 into the future.

Speaker #3: And we really are focused right now on trying to add more data centers and trying to accelerate load. The combination of those two could give us an opportunity to stay out even longer.

Speaker #3: So we think that's the right thing to do for our customers and our communities, and so we're going to focus on that. It'll largely depend on how many additional data centers we sign up.

Speaker #3: Probably more so than what I would consider the ramping, if we can add several hundred megawatts more of data centers in multiple different examples.

Speaker #3: We could see an opportunity to potentially go beyond 29 into the future.

Speaker #7: And the one thing that I just want to note is in Iowa, I don't think there's another state in the country that can say the next for five years, 0% rate increases.

Lisa Barton: The one thing that I just want to note is, in Iowa, I don't think there's another state in the country that can say for the next five years, 0% rate increases. That's something that we also help drives additional economic development.

Speaker #7: And that's something that we also help drive—additional economic development.

Speaker #10: And then last question for me, sort of the Treasury modifications on repairs deductions, does that have any impact on your on you in terms of your cash flows?

Paul Fremont: Last question from me. Sort of the treasury modifications on repairs deductions, does that have any impact on you in terms of your cash flows?

Speaker #3: Yeah, I don't know if you're referring to the AMT implications. We're not in AMT—it's not having any impact on us. We obviously continue to have opportunities with repairs, and we try to maximize those for the benefit of our customers.

Robert J. Durian: Yeah. I don't know if you're referring to the AMT implications.

Robert Durian: Yeah. I don't know if you're referring to the AMT implications.

Paul Fremont: Yeah.

Robert J. Durian: We're not in AMT. It's not having any impact on us. We obviously continue to have opportunities with repairs. We try and maximize those for the benefit of our customers. We're fortunate that we're small enough that we don't have to worry about the AMT issues.

Robert Durian: We're not in AMT. It's not having any impact on us. We obviously continue to have opportunities with repairs. We try and maximize those for the benefit of our customers. We're fortunate that we're small enough that we don't have to worry about the AMT issues.

Speaker #3: But we're fortunate that we're small enough that we don't have to worry about the AMT issues.

Speaker #10: Great. Thank you very much.

Paul Fremont: Great. Thank you very much.

Speaker #2: Ms. Gille, there are no further questions at this time.

Operator 3: Ms. Gille, there are no further questions at this time.

Operator: Ms. Gille, there are no further questions at this time.

Speaker #1: 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.

Lisa Barton: 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 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.

Speaker #2: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 3: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 1: This event has now concluded. Thank you for joining Alliant Energy Corporation's Q2 2026 earnings conference call. The line will disconnect automatically.

Q2 2026 Alliant Energy Corp Earnings Call

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