Alliant Energy (LNT) 18 Feb 222021 Q4 Earnings call transcript

Good morning, and welcome to Alliant Energy's Conference Call for Fourth Quarter and Year-End 2021 Results. This call is being recorded for rebroadcast. At this time, all lines are in a listen-only mode. I would now like to turn the call over to your host, Zach Fields, Lead Investor Relations Analyst at Alliant Energy.

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

Joining Robert are Chief call and me Chair, on and President, CFO. John Executive Executive Durian, Larsen, and Vice President Officer; this

remarks last we as have Following Investors year-end well Energy's earnings earnings and quarter at guidance. night take announcing our by time This issued We XXXX be and investment results, and during presentation Web the Alliant and updated referenced from as community. will our XXXX John financial are release a to Robert, prepared available will page questions news release site an today's call, on www.alliantenergy.com. our fourth of

that among materially Alliant include, be call forward-looking to on the remarks Securities discussed release begin, statements. results any we with Commission. are filings forward-looking cause Before in and Those press we actual and questions include obligation last answers to the you this Exchange in to statements. these your These We Energy's different. that could night, subject statements I forward-looking update need our risks remind our disclaim make and risks others, to to matters issued

to At In site. between this addition, measures. on point, release, earnings contains will measures John. non-GAAP are in Web The to I non-GAAP the financial this presentation references reconciliation provided GAAP available over call and which our turn is

their on It and and to proud Hello, for purpose, year compared customers of how want per strong GAAP they we year build sincere per Zach. I team, dedicated our everyone, guidance efforts, to our you each share financial joining and in successful be and talented in by of we us you of the serve the stronger to the of thank help all I'm $X.XX Energy you, Thank XXXX, share, operations, thank range. another thank employees earnings Yesterday, top our announced in our communities. to XXXX my Alliant deliver do to part XXXX solid finishing shows our for and day, to humbled work results. us. and growth, team. was $X.XX performance. at

the employees, non-recurring earnings our full temperature straight year delivering Storm to heat up turn X% customer year utilities. from showcases keep scores will first solid customers. operations many safe, our of for electricity outcomes. few was as with the regulatory highlight increases. our JD solid experienced of This it X% our driven This Excluding second-highest of employees months, year, earned new increase and our customers the wind, residential reliable, last year-over-year we satisfaction the Winter energy Uri, also reliable, in megawatts among and delivering summer affordable start waves our our storm noticed customers. our to delivering to And and each during weathered From every Power's for X,XXX growth, and XXth consecutive large XXXX by clean, results then a electric affordable the details the resilience our operational and company. our on share to the XXXX. flexibility execution of per items, from year, Robert over year achievements financial our our dividend were operational third EPS and and of and growth, the consistent I'll more was who and and of strategy, strategic of provide

our on thoughtful providing advancing first energy straightforward and our construction investments have we energy clean and to and led renewable solar clean develop and for our commitment made energy positions of execution. Iowa to led approval future. path continue advanced authority the in teams the of and comprehensive XXX regulatory blueprints successful tremendous planning clean our transparent us phase. certificate The for to us customer-focused into for our also Wisconsin, well a forward-thinking for of Wisconsin, Also aspects solar, outcomes, storage blueprints. We a to to showcase and megawatts by in XXXX, which Our for received energy progress

supply XXX of for for teams well of to Iowa. to Wisconsin, in additional deliveries, navigate that Both our later global continue also chain I'd battery and like Robert equipment increase We along leveraging about this solar be efforts in our proactive difficult expected in these our news and issues. on for sharing an be the And were and positive the to in will XXX solar supply panel solid over, our through capital megawatts filings progress by with in call. talented chain not prepared, customers resulted are resulting customers partnerships in issues in decided team, plan. filed also more while an strong note our and are have storage XXXX. our investment megawatts details

build Our to efforts on display stronger this also communities full past year. were

new I'll receive you Magazine. our Selection with and highlight share, for in of time a few Selection in to many than named and all jobs, Alliant continued Site the accomplished $XXX take award again million partners to While regional, once top are X,XXX communities. Energy now. our there than delivering and new XXXX. investment team were in economic and more development jobs help We development more with the honored we've little a collaboration I Site and by would local, capital was credits bring utility examples state economic investment, to in proud

gases, plant water quality. at value to reduce better trees we're to and in thousands another are we Wisconsin, provide Iowa, Rapids, trees end way will way communities XXXX. the community million great pledge our Cedar And of of living by planting it's Another Ripon, to is our from things of tomorrow. for shade, trees making improve our just to start, we're events acting These one greenhouse a off grow

communities. second year and fourth Best the company, excellent also Corporate And to inclusion. Human look the over we Rights Campaign in And year named on to forward in best Forbes that Robert. in place the Newsweek responsible companies a row. customers our the score XXXX, our continued and the year fifth for Equality was call for of culture Employers row. This communities thank America's most We to be a proud now to the Magazine's nurturing year past the equity, a for a Foundation. issued And build and to made building named row, in stronger your on earned an Energy. our we we for turn to for they momentum were work, list by us Index you help We XXXX Alliant in interest perfect diversity, I'll year, a Midsize by and

everyone. impacts earnings GAAP per per earnings basis, $X.XX our compared temperatures morning, non-reoccurring Good adjustments, Yesterday, we increased On from excludes John. its share share, XXXX. XXXX announced per adjusted share and which of Thanks, in XXXX. an of $X.XX to X%

primarily construction. base and year-over-year, XXXX commercial used demand by summer increasing These funds higher Looking for and requirements, of impacts our temperatures. revenue due higher increases partially to rate higher by to were driven favorable were strong allowance lower industrial Iowa due depreciation Wisconsin and utilities, and at from warmer during customers in the offset electric sales drivers

stronger customers, by in temperature primarily compared economies Our a industrial have as X% XXXX, from when commercial our retail grew and worst XXXX, sales commercial was forecasted, XXXX led for electric the resurgence recovery state impacts in X% robust strengthened roughly driven pandemic sales the higher normalized than than in industrial and industrial of our sales of to more initially levels. This by in XXXX the resulting total year, levels XXXX.

seen we across gradually returning have service some decline workplaces, to their been territories As sales. have our in residential customers

experienced we key about assist from However, team and industrial strong residential customer several XXXX by our ultimately modestly bolstered megawatts great higher able to efforts, sales additions than remain sales expansions, a levels. development as in system. our XXXX to of were our economic load with adding XX The year was

growth of update announcing Additionally, of XXXX strongest to expenditure we through our one customer saw the decade. in years We're for the an plans past capital XXXX. incremental

new slide the There on for two updated drivers presentation. Our our is plan earnings primary six are plans. of summarized

receive $XXX with into Wisconsin than complete service suppliers and than This us balance and allow to made allowed of megawatts our previously to us equipment projects are expenditures battery relates first approximately million in investments expected The to have These our in earlier XXXX. equipment earlier in materials announced anticipated. clean progress forward enables go now customers. The into solar will XXXX to us efforts go for XXXX. to XXX scheduled planned, service recent these of and that solar renewable pull energy to our previously XXXX with

resource the through To XXXX. second capacity energy proposed into updated needs from MISO's expenditure capital XXXX adequacy investments clean accelerating of construct. driver involves resulting plans address seasonal The

the versus will on satisfy generation anticipated basis. seasonal new familiar, requirements, current support those MISO is For investments our reliability our capacity basis a under where capital additive may help capacity updated on an is capacity accredit included this plans construct, and seasonal expenditure who for be to state customers. in annual The our not accredited proposed

to of with expenditure We of half continue making gas to the portion to capacity filing Our natural to more resources exercise purchase that the capacity our anticipate to plans about exercise Certificate options. lost expected filing. year, capital replace we include closer these to a the capacity Authority of by options the plan with in Riverside this PSCW these additional for investments making of share and first WEC Energy details the resources of from the to as also anticipated facility. a replace MG&E West We get be

year's share, X capital include tax drivers increase which us to investments, the to our the are the on portfolio, X% guidance The of And updates projects and under X% earnings expected and credits X% APDC increasing remain tax our generated earnings on customer earnings updated benefits low earnings for increase from provided Slide range this XXXX XXXX to on guidance of help our with over wind this several of The we're construction. more passed electric years in plans, on More presentation. production by rate and rate earnings to substantial estimate earnings customers manage details tax earnings growth higher these with neutral. largely guidance, adjusted are In a per The our $X.XX earnings bills. come. is expenditures for benefits a our therefore, Turning tax to credits production upcoming solar capital earnings. effective going higher guidance from our increasing forward. year we represents positioned our of consistent effective XXXX, consolidated well midpoint X% to are helping maintain large XXXX

debt of The debt Moving be finance total well Alliant on issue in Energy the $XXX largely investments and for up as long-term maturities $X.X of will WTL from to for plans financing as Finance. used to to XXXX, projects refinance in we new million to plan to proceeds billion XXXX. the in debt solar

to expect also of in $XX We million under common our equity plan DRIP XXXX. new receive approximately

MG&E we Lastly, anticipate advanced battery on regulatory first this and for regulatory as of our of Board request application have West application continued Riverside and a are a In constructive facility filing generating XXX state relationships year. included related is half year. important of strategy. issued on schedule natural filed our gas on this our solar in Iowa either on year's joint the half nine. our we WEC our investments. part Slide end a remaking of Iowa, sale thankful anticipate last decision In we portion The at in anticipate executing month XXXX. X with found jurisdictions. of a we key both to filing this approval We initiatives second the These In Utilities this slide can are megawatts megawatts progressing XXXX also Energy January. initiatives last this solar XXX of on procedural Wisconsin, decision of on our decision or customer our the the Wisconsin, for advanced early of be remaking an for in We expected. a in the regulators And to which for

of flexibility to outcomes, supply year for financial regulatory I ahead. in express CapEx and demonstrated shift year with solid results As we project my constructive solar another conclude optimism our We've want opportunities the quickly future chain. plan the successful

the and regulatory We forward your to intelligent years many with have of virtually for and support customers of with couple look in rate day and working and We our no reviews serve the planned. hard our major shareholders. certainty you months. every meeting company And continued have dedicated appreciate next employees to of in-person we coming

we material will our the I'll on always, available make call over to facilitate the site. our to Web As this investor turn session. back At operator relation question-and-answer time,

Bank questions to this And with Julien question members from community. from the America. At the [Operator open we'll Mr. will our time, you, Dumoulin-Smith Durian. Company Thank of call take of the Instructions] first investment

Thank taking good ask success as [Ph] it my few It's wanted for good the like just your pretty last question. you that Julien. Hi, upper-end everyone. I more EPS outset at CAGR on [Darius] in as high-level achieving the morning long-term years at had growth range. the seems of to for you far

the CapEx think I increased would plan. of happen of of potentially as we the just plan, in in am what guess of CAGR? So, would of -- again, look your ahead various scenarios, you lower end the the that to trying what the at kind investment that growth see increased context see I context

drivers of upper controlling the lower Yes, five Think And comfortable a appreciate of O&M. me certainly still to we either very on the that. those the one it seven. focus question. end had we costs, sales of strong on or with And as be for would are

would primary those always with be are those drivers. So but weather, along the

kind great. I financing And and of Okay, provision you am are passed talking some potential legislation a we passed how FFO on or metrics things. were about of coming you more that. thinking ago. in about the guess assuming Appreciate potential months or would know How months? I few legislation change prospectively? were pay little direct a getting bit, environment side curious pay changed just direct the I that

is Yes, Darius, Robert. this

legislation. back expectation So [Ph] of strategy first type was energy want to of I reiterate clean just [build created was without any off, the better]

to to that does opportunities impact full pass, structures if partnership ownership. our not are to from it we tax strategy evaluating switch does, if no the equity but So, a

of as both over that, the debt capital expect and current have our four both our the of we and As bodies would what therefore currently billion We with regulatory equity that we have that neighborhood approved a over in structures and in of balance states, maintain you'd sheet, a next see would the to strong $X we plan, maintain mix entertain. little metrics that issued and of the probably a result our I of result somewhere the expect, capital expenditures a additional think, to ratings years. consistent in strong

obviously, the you. thank up, here, could can you clarification And spend like ticked Can reduced in you CapEx appreciate I bucket just went looked in Okay, one generation great, if bit. down that on of a to, bucket? It sneak that just speak point more a the renewable updated the to. nonrenewable as alluded guess, little you other, got I just the on plan, what out either or moved

as Yes, Darius, have our in And as on resource at continue characterize go we it renewable going think look projects of the plan that process. to our as to we confidence ability I'd through forward. execute more we

is that So, you'll see electric distribution along with primary our focus, spend. our

renewables bit trying we our future And a and to always we on can kind see clean for to as made our about different and as that even pivot we largely thing as when energy, of see customers. now, And and nice of future, it for us really energy, the reliable are so best both the renewables which a balance look opportunities and little big we into flexible, storage on affordable. opportunities. about the it's and needs wind that's So, the constantly focus customers, our the solar think we're spend focused think we right some is and very what evaluate storage, And that. of

I here. great. appreciate it Thank those along pass responses. you. Okay, I'll

from question next Weisel our Scotiabank. with take Andrew We'll

In past, different a I midpoint midpoint, in you. a the I'd the bias reiterating morning, a ask talked you're to everybody. 'XX idea Good the X%. X% believe way, similar about you've and the Thank towards though; X%. CAGR about to question is guidance for like

realistic range, given you're X% about the to and you're that? but know but number? a more how or strength, I the high-end there know think bias is historical in you Just think 'XX that I for your sticking the is do beyond, with conservative, really

we in will the have X% but think guess, X% plan back there, or so I long-term, in middle X%, that and might captured right I for Andrew, my remain. bit a Thanks, response conservatism of, do of our you for Perhaps answer the there. the to

Okay, foreseeable talked know upward 'XX, million a you've on $XX or the lot the of of needs, it. the see Is some in variables, future, to pressure increase a that's equity I got still Then the on be what that about but might today? course, kind I number of equity, there you for plan believe. given case given the CapEx

equity today, have we besides other the planned. DRIP, still, what given Yes, no

within remind $XX us right? DRIP you and -- million the Okay, mean,

Yes.

Thank you Okay, perfect. much. very

You're Andrew. Thanks, welcome.

our Peter from [Warden] We'll question take Mizuho. next [Ph] now with

Robert, John taking for thanks Morning, and my question.

Morning, Peter.

morning. Good

that about solar Iowa the pull-forward, be or should that secondly, on spend? CapEx So, thinking Wisconsin? then we recovery of how the for is And

our that's we that to, referred Wisconsin for first megawatts. that About in 'XX. CA Yes, that's in represents XXX projects. XXXX, of pull-forward half That X that

think we've process gone one. regulatory And that for the you our of would in of the so, proceedings. course normal regulatory it through And

the Okay, any does period, same $XXX that and additional regulatory have million tied to approvals it? that to then

get Yes, the And December. constructing as we're AFUDC 'XX-'XX projects PSCW, here, Peter, was by mainly as X a part those approved the allowed to costs, that think facilities. in those well constructing They've projects, of as rate CA those that review in for and of recovery approved XXXX. earn that as it's us on we're to as

the were supported, for to and to about those positioned those, prudency that, X costs for be for originally approval with received the costs confident and XX% the than with will prove And filed all on solar the when projects been X% along higher we've execution but we given feel both with will CA we to feel well of projects PSEW so, have and the that get updates we of informed CA recovery expenditure we in spend those. X the of the capital what prudency keeping

that just update options? And can you one just inflow Is Energy the there then, kind give XXXX, of the separate into Center West Riverside or for that Okay, appreciate later detail. a ownership pushed other on an I year? is us for me, one cash expected with still

in regulatory we jointly. think of now for right expect that filed we proceeding would think more that, I that Yes, XXXX the

thinking this I think, 'XX. maybe of end early we're year,

So, we infusion would cash the expect 'XX. in

actually two time There's XXXX first the there's that's $XXX a as there's the piece, indicated, will of half John million also those years. so pretty in two to that. in roughly see just between of as period, for a we'll reminder And pieces $XXX cash it, and million first to evenly XXXX come

the for detail. Thanks perfect. Okay,

[Operator next Michael Research. take We'll question Instructions] with from Wolfe now our Sullivan

Hey, everyone. Good morning.

Good morning.

with question the on cost? change increase number to wanted last there I XX% prior pointed as a you've on follow-up to that already so recall I that no cost to, is additional communications since X%

Michael. correct That's

Correct, Michael.

great. the of how capacity, just forward megawatts should some a perspective, the what's Okay, MISO we construct end back a that from pulled drove to in from and And incremental of the you think increase, so standpoint? change CapEx tied plan that this but total I and about some that megawatt think

off Michael, it kick here. I'll Yes, maybe

a of Riverside up So, there's the West XXX actually expect we as about two to capacity result pieces. needs exercised. being options There's of megawatts

requirements of in on mind to year. as think I the like the the later so details most resources something But here of as then, the forward specific so of expect in exact MISO of nature in we more seasonal and or filing XXXX, a And as and result sometime think for year, between like in through we're state, storage. have have making that's us the half likely provide that, that that likely here proposed So, we'll a going still first keep this don't information. capacity constructs, said, some the we're renewables a we use most regarding of and the megawatts details the working to about

are that? last on any for embedding sales color was my you. you just what Okay, great. XXXX growth Thank one in then And guidance,

to for Yes, We what a think half-a-percent assuming that sales. so to overall maybe necessarily a flat increase, we but see so, typical have forward, it not back is of XXXX half did types be generally to of we're to is long-term what growth. maybe go XXXX nice our percent

a Thanks lot. helpful. Very

will We with question Ross take Fowler next UBS. our from

you? Good morning, Good morning, are John. How Robert.

Good.

I to Just X% of on you've that bit I that's a juxtapose cross of but and you issues. know, because pull cost followed to industry were back solar a on up before stepped little it the and in some the CapEx, out, XX% the increase group that the to able against actually pressure year chain that and in in you have and know so supply forward others pointed just, pushed projects into side, this I I

you pull into, the your maybe you just as agreements particular? future chain further years pressures to are X% think of your forward. or of is, that for issues second seeing part supply And to solar, delving of that with about question So, XX% know, then in you I details sort that there suppliers allowed cost beyond

ask Thanks, Robert and I here. will of Ross. that, to add wants a bit Maybe he couple if parts

So, you part the XXXX. of know, a that first got our portion the of going here to CA constructing in for be good we're materials we've

feel will. got site, you solar build. good to we pieces on panels equipment more But those of about we've So, having if

supply the We partner know work and But some over well. done issues do strong team's aren't the with. proactive very great certainly we lot with So, suppliers as chain of planning. a

us a pretty a into of put in So, in earlier here that shape back as we XXXX for lot 'XX. out carrying well really in work did good that and years,

chain issues more for while. work those we detailed. very we first we no with, able So, to were were will supply besides, And partners that know a navigate to continue CA, the for that picked strong our some probably

we're having more that's and been why to Robert? and able 'XX in about for coming confident good our but shape continue it, completed we solar be Anything add, to monitor we've first 'XX. in that So, to out,

over chain amazing some done knowing past constraints, team situation. that that has few we some speaking those relatively just was projects, of the supply to but job remedy November, an Yes, there in out months maybe the pushed

much pretty in to of earlier we're So, part we to that XXXX, to reference a the original just keep towards had point. dates the planned close mind keep in-service that as so,

thanks. great. That's Okay,

it And questions further no appears are time. at there this

and for support fourth Energy's Alliant you Alliant will site. concludes and continued Thank follow-up earnings free replay any Web your call. to This year-end questions. contact with quarter of our available be Energy on A feel investor me

And once again today's you We all that conference. your conclude participation. does thank for

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