Alliant Energy (LNT) 2 Aug 242024 Q2 Earnings call transcript

Thank you for holding, and welcome to Alliant Energy's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] 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. Please go ahead.

Good morning. thank for you joining to and the like webcast the us would all on of call I today. We appreciate your participation. today CEO; Executive With Barton, here are Executive Larsen, me Chairman; President and President and Vice Durian, Robert and CFO. John Lisa

presentation, and night John, to from second will This are financial announcing which community. Alliant remarks investment will a issued release questions we as results. Lisa website Energy's prepared Investor during have Robert, as at the referenced Following news today's the on We available by time page take release earnings our well be of last www.alliantenergy.com. quarter call, the

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

financial to addition, a presentation is per non-GAAP In share, this which earnings ongoing references contains measure.

call provided non-GAAP ongoing operations. ongoing our At this in between measures to not I'll available with associated over charges the are John. normally exclude earnings and reconciliation or is GAAP material website. release, which The earnings the to is on References income turn that point,

joining you, Sue. everyone, Thank you morning, thank us. Good and for

maintain track of financial remain purpose, to to and to our are fully track serving and the pass achieve long execution. stronger report I'm midpoint record and that objectives committed we communities. of we operational building We our pleased As XXXX, customers solid strategic on our

announcement some highlight plans. my retirement recent of briefly Before I the recent to of achievements, address want I the

how have we an changes for Over the of industry, within energy. deliver incredible along our produce customers, with I've improved that XX witnessed years, quality changes to transformation led positive significant our past and service

years thing, employees. engineer talent the is not that this the days to the Iowa from service From Alliant our has in however, that alongside It Alliant an to merger Energy of team. created has an than more Energy honor incredible early One my work and part as changed through been company and XX dedicated during be ago been and want our Iowa and in our customers. the to investments my customers of the my Alliant I've a colleagues you all and everyone that, With at has across experiences between, privilege. with tenure I to expansive Energy. including say benefit worked industry-leading working and Serving for Wisconsin alongside thank

providing like to I'd track well the With talented reiterate an long-term positioned and our deliver Lisa. Additionally, With well-established communities record team Energy, our shareowners. about comments success. a we exceptional her is leadership of my to to customers, growth. leader value mind, our Alliant with customers, several in our are pleased and our value the She settlement for at development serve best previous what's stability we communities in groups, review our with intervening efforts partial we focused and I'm for and economic collaboration with Iowa on opportunities continued shareowners customer remain rate proudly and in reaching in

to the over I'll now call turn Lisa.

forward your our board retirement. acute you John's I Congratulations, left focus indelible solutions, share. coupled as working foundation we mark John, dedication continue to John's I'd focus, to us for John's serve leadership. a take that commitment success, continued our future. into which customers on with with our upcoming on to an clean to foresight on the moment the and to and outstanding a communities in laid for advancing communities. like energy organization customers will look has John. has you, recognize an vision, our strong and continued and role Thank passion your guide a

XXXX and Building X% to we guidance additional earnings reaffirming we on target to growth into our of $X.XX. John's we and EPS before committed are our are remarks X% long-term ongoing updates, get range to $X.XX

in for customer discipline remainder receipt execution to Iowa the controls from has year, to the the October investor rates weather and extraordinary on following: timely effective highlight I the the want the on confidence expectations. the assumes X. Commission cost of normal the of deliver reaffirming Our needed order the and range with to organization maintaining Utilities focus financial

of communities to within needs We efficiencies on continue while investments focusing making serve to on and drive also to operational focus capital the our excellence the customers business.

continued service communities, between strikes progress. our development and Iowa. the balance rate affordability, It and settlement to review plan. growth the building State provides benefiting shareowners Pivoting driving to of our territory, execute Our which team our positions in now stronger gives Iowa economic is supporting customers and and in reliability, communities attract confidence shareholders driving ability uniquely our strategic of growth regulatory growth to consistent on right me and to our our focused prioritizing on priorities customers, IPL economic

in in discussions to rolling settlement Iowa coming a to outcomes. testament sleeves engage constructive the together and settlement benefits parties Our and their of is up

from earn and from is recognized be to that and well with to business benefit the positioned as with rate the Shareowners nimbly and settlement, utilities the the commercial this benefits growth, and stability individual importantly, tax to economic return. and quicker consistent will fair will decade. stability and the attract open the needs IPL its With energy retain move for customers rate customer evolving a customers of Most to state support ability new the will the ability customers Through region. have industrial more rate to communities. generation will Iowa of through end construct, see base new

provides our is to settlement expected meaningful release, development, As have positive economic noted growth. load on which greater and attract in flexibility news also the to promoting a impact

by both customer and necessary working new construct these agreements Iowa. IUC that centers which Iowa pleased Approval we attract and settlement, multiple have move to been states. announce is in projects the customers in proactively are data for the to have rate to the of forward We both executed we individual includes with Wisconsin, in

of the affordability. and commitments growth. ability necessary built and development fuel the CapEx support aspirations, ATC of and expected resource growth Wisconsin and drive economic to In provide our ITC Locking area. hard testament To The to our of demands is we'll structures a on economic service to value structures with on our is development design the this interconnection energy loads earnings load timing third interest rate in call, both our details in ensure commitment Iowa to forecast. we we in seen of a with quarter the and both our Midwest These will and work customer associated have the have teams. and partnership incentive our our strong rate new deliver timely design

legislation have The our yielding economic partnering megasite continue recently we'll focus passed industries service and looking interest Iowa large to We new is on existing with prioritized attracting already territory. to from grow to development, in customers and businesses.

XXX towards site. designed research-based that incentives $X and at in a at to investments the advanced least a projects companies attract with acres reminder, least of manufacturing, are certified As is at The span geared biosciences locating legislation billion capital.

understand interconnections new resource accreditation. on our ahead changes We to Moving generation transparency growth and transmission be that our plan plans. as importance process. have and enable investors our Blueprint, the strategic respond in our planning in Clean MISO's development, We us to to flexible for capacity we for to identifying sites Energy future load continuously

will such, regulatory we our needs in quarter update resource filings. CapEx and updated As future provide capital forecast, and requirements load expenditure third in

Thank to rapid the to mutual neighboring serves up assistance appreciation This would call and as my the turn service have our team unique the support like members. who to expect. is coordinated the express the call I efforts Robert. field I customers our of to tireless as ensuring framework over they emergencies, reliable utilities. answered Robert, those offering I Before aid over to of turn call for the our to now you for reliability during program for note and restored for safely your special employees, especially as stepped quickly industry, and operation A a ensure possible. will cornerstone appreciation our

per between amounts share. Lisa. ongoing $X.XX that assets Good excluded announced Yesterday, in from morning, of second XXXX X second charges recorded of everyone. relates and to our legacy nonrecurring difference earnings. earnings per were GAAP quarter of which $X.XX share earnings the from Thanks, are The these we quarter ongoing XXXX,

Generating First, we that no based future. currently agreement we charge in on in in longer to write the review second settlement return earn June. Station, we rate to asset of expect required we the the Lansing terms remaining a were resulting of on the the of second the full value IPL's in not receive a on in the after-tax X-K an that but an asset per down the $X.XX asset, share executed quarter, of quarter, return net to book Because filed expect recover return disclosed in

per Second, expected retirement its steam which be due execution electric our quarter-over-quarter operations. in generating property expects rule to related coal recent was second coal regulatory rates steam IPL new utilized a earnings We remeasured in to and on serve A are amount residual per January program, under by has of charge variances steam driven capital majority quarter. to residual retirement and depreciation enactment well in ash believe EPA's that of the expenses. the in time obligations which obligations of and ongoing supported in WPL's financing the rule, to share resulted is challenged. withstands landfills combustion the asset very our we compliance, ponds not. after increase successful revised asset remaining high-pressure to and customers related the positioned customers in end to X, our The assets through effect XXXX, portion of a or we rule challenge contract $X.XX customer-focused took higher resulted and after-tax to balance the were whether an for share. IPL stations X our The investment sheet. mainly combustion X of The offset gas

generated of earnings tax modeling the additional income provide tax expense. tax Income context some of In quarter to of each second annual the year effective timing results rate earnings expenses income quarter the this expense. I quarterly year, recorded an quarter. each in addition, tax effects on This estimated to of issue impacted were proportion wanted timing XXXX based by the full temporary our and the

our full this amount the the supplemental X with reiterate, quantified our year on tax will it generated slides, line our and annual in impact of to on causes earnings. shown are expected but have of an in fluctuations expenses level in not XXXX benefits of Slide expectations. quarter-over-quarter, To be tax As our

benefit larger quarter. XX% approximately accrued, of recognized year, the However, function our half generated quarter year, the us drives amount each tax up timing for of setting Through of a have which difference earnings the each the of this quarter. annual half for in been a is the percentage benefits second the of first the

half continue normalized to new last were to compared when both electric as residential residential solid number experience sales Temperature to growth the customers in of of states. in in first the customers year XXXX we higher

a positive industrial residential were in capabilities offset XXXX their sales with generation Iowa. electric sales decreased by own However, of customers number these low-margin to in limited

our lowering affordability. expenses make continue We progress at customer operating support objectives financial X to our achieve with utilities and to

reductions These fact, to execute adjusted that by of in were are have to first meaningful half for and our employees expenses. due the XXXX resulted in and efforts In million ongoing the maintenance our less positive $XX operating initiatives than XXXX. approximately operations expenses the of identify first half results

Slides reaffirming are X. we guidance earnings year, on charges to share, earnings the per Details of and $X.XX X XXXX full nonrecurring our full discussed the excludes ongoing X quarter be drivers earlier. earnings can I $X.XX our which guidance on and For found second

cash to flows. Turning

ongoing the by demonstrate of cash year. of from During to first strength half operations business. compared strong flows These the cash our million increased $XXX when XXXX, last approximately flows

primarily flows due in of January WPL's increases, rate gas our program The improvements capital. increased were to year, working successful which X the were tax effective of this monetization execution and electric cash credit

we and X in of The months in result both million the the in improvements customers drivers. strength metrics investments. our renewable our flow this Through realize as credits. tax these us year, investors monetized the and well for tax generating of Looking forward, over Iowa $XXX and Wisconsin fleet have value of our continued significant first positions aforementioned a expect credits we ensuring cash of

support year. our portion this battery fund to debt We have in and financing substantial to our renewable of a million investments plan in and executed $XXX XXXX projects refinancing maturities

million June. addition in debt Alliant issued quarter, successful In debt to the issuances first we Energy of $XXX long-term Finance at in

will $XXX including the for we of IPL XXXX also XXXX, XXX million gas proceeds our external megawatts up one in Our in $XXX overall West financing interest December. In million to debt reduce of partial closed of providing anticipated to The sales of unchanged, matures remaining providing in West were combined in natural in Riverside remains which second the quarter facility, requirements. help planned for proceeds, these that our part financing and of our sales long-term financing $XXX million. plan plans of debt at Riverside refinance on

Shifting to initiatives. regulatory our

quarter. order to the shown Utilities Commission Iowa notable on initiatives July, make on currently final executed the IPL's our review rate XXXX or in from for hearing completed good progress continue Lisa highlights the was The in We Slide regulatory X. August settlement of the for and the second expected provided rate review September. agreement is in

the Service regulatory in with actual recoveries costs fuel in of several progress cost to Commission Wisconsin. plan. the of month, Public WPL's fuel reconciliation a Last making are authorized We key XXXX fuel also approved Wisconsin proceedings

For the its $XX WPL helping quarter this electric refund Continuing lower bills. customers the will Wisconsin order, to Wisconsin fourth jurisdiction. our year, million with of customer in

filings pending from decisions requesting the additional PSCW. for X that generation existing have stations investments authority are in We

facility. proposed Enhancements to the the station and generation repowering [indiscernible] Riverside of the

decisions your in meeting to and coming We in company on from forward many you filings the the support of our appreciate PSCW of We these X expect XXXX. months. look with continued

time, website. John our back As materials always, call available Relations turn At Investor his to on the closing are remarks. our this for over I'll

Robert. you, Thank

is As you for future. well heard Energy today, positioned the Alliant

me back the call take operator, the the minute a summarize and let to takeaways. turn key I Before

colleagues I fall great and to continuing sharing as investors to on focus, up want this positioning our reaffirming At the are to economic to and Alliant efforts your turn which our range. with I development, strengthened ongoing conference. I lead Energy the growth progress economic to collaboration have and the regulatory progress we XXXX Chairman. as support time, the to question-and-answer long-term also Clean in over earnings the the Board made next We their and we want proudly Energy. call Alliant communities session. thank We've for for my facilitate the and the development I of looking customer guidance for serve. analysts thank Blueprint to us my updates forward forward back operator we look EEI chapter serve role will and Energy to are

Nicholas take will We Instructions] [Operator from Barclays. with our first question Campanella

was It's Richardson to if more can was XX% and just say wondering wondering wondering think maintain how more bit on sorry, color actually structure. a Nathan X, quantify equity -- for maybe I XX% little I Nick. you was for you Slide needs I we that? modest could that parent on some equity about to

a currently is this shareowner Yes, issuing as Nathan, Robert. have plan where a direct now, I of we $XX think we're approximately million Yes, that right year.

will refresh annual this the to future. And that That's material the further do so But stage. may needs. [indiscernible] have kind talk foreseeable to our November at as extend future plans that on And we I largely planned going of to that as capital we'll of on continue as we updates of we basis. into monitor expect revisit maybe really based and capital we part do that that process, in say we an that. expenditure part needs here, that equity only see to the we're

was in range And of you in now. where 'XX then helpful. year-to-date. super you're if terms That's mind, it. weather wondering right Got one headwinds where the I more wouldn't -- tracking

Yes.

So question. a great

little of which related nonrecurring what legacy this earnings. we ongoing moving parts consider we assets, our a there's So not about about charges, the XXXX, expect talked as earnings year. We lot to reflective in a should we the to bit think of

that. So we excluded

some really levels temperatures $X.XX issue so the second to We also the have tax as to key the the reverse the earnings on in through later through then this it after about year. most of that the year seen have year, that a income quarter, really you of in in items, unusual here this half the earnings was but relates as those for will see well. We've you far the get modest quarter been temporary expense focus first first drivers reduction recorded we date. And a

look costs very has we opportunities team As that, those the in working some to and this to been are identifying we at of successful offset date.

work have We about half that sight on offsets line of there we impacts, offset to continues team of need to to the temperature the and those that.

guidance go of to rest we'll of confidence as us to $X.XX, that the and So the reaffirm continue the the we work year. that to through $X.XX on gives

with Our Scotiabank. Weisel next question Andrew from comes

I I you or it clarify. updated be elaborate was announce a sure were question, contracts forecast in data if position said talking Or you center that you could were foreshadowing? some you maybe just First or quarter about could you'll want perhaps. make third the by just Lisa, call? to think to you customers load What

So really all the it's of above.

terms in our vet that come. development works, all inquiries of Andrew, So thoroughly economic we process how

multiple is confidential. executed with to-date. of with the of feel agreements all the timing amount prep I earnings we doing have we really call, third centers projects. we'll these Robert that announce certainty all at putting those data to mentioned load, be have for respect that we once load are the We Obviously, the in of as EEI. And quarter What both together and our will and

what's be all the will obligations then the the the what's what growth. CapEx that timing, those of needed resources that fill So and supports load, are sharing we to

Great. Okay.

saying? cadence more or of development in a what or kind Is we'll you're economic these typical So detail juice of terms some updates. of color have the updates, bit of but that

something low, doing we're and year at both the high, we're identify resource with Wisconsin reminder, once looking Iowa, different we clean load load and this levels. why settled and on that our unique where to that did timing. medium is a in in and we allows us And needs have X the as And Exactly. the blueprint, energy

So at well for we're EEI. positioned very be our plans us communicating to

Sounds Iowa may. great. of the Definitely forward I Then settlement, looking to if questions on a couple that.

to In see years be First, when you earnings you might certainly the X relative there words, need X, you underearn upside stay hypothetical years? What are you if X under downside earned scenario out. the to earned sharing -- have speak, mechanisms and think year this allowed? Or the the to scenario recession ROE risk long into are what other example, you relief, for some where under ROE might to we exceed allowed? went X you might the and off-prem, what -- so might what in a deep any a

Great question.

to fueled our off really the So of start to and provisions continue with review it's see I answering over and it economic on the that's Robert then development development. fuel turn successful that, capturing way to much The effect, a affordability in to of stay within we're rate the economic work Iowa for going that very filling settlement, it's some by in flywheel If activities, and then I'll that ability out. details. I'll

shareowners XX benefits tax the that and successfully period. has past that energy And with is similar note model years. a from operating MidAm during benefits the are this, to very Our over been benefit going very it will I

to talk the of a off is don't have. you to we're why it's So very It's ramps bullish which some is familiar little that on of the bit new Robert, the something why it. commission, -- not that State. we

if as level, back that the intervening to our read of settlement with for the agreements when the period. if there's Andrew, X-year annual a either a situation part within case allow basis structured below provision it consideration a agreements, over that we described, a and into agreement, ROEs that or into of fall you did So on take an you us we parties rate the details come certain in the

with we capture remain load and of as protect model that well related And ability generation as this the will and more us opportunities we some the I that case revenues an that tax repowering the to data to energy the about from and what center growth new so as we pretty allows opportunities well opportunity. is have feel capacity say keep in any of any the like that well Lisa decrease, of margins significant upside optimistic benefit as described the over that innovative us tax as may new to would benefits benefits from but

of optimism level that some us for gives that period. So

the one, the how in was ratemaking, On you past Very advanced I to there going that and was settlement how Can about some applied expect and certain confusion be talk projects. using you or and ratemaking advanced One last if I I'm applied forward? reassuring. terms those innovative to very noise, in may. how was discussed it about know generously

get Yes, into We're details the lot in a events. Andrew, of on the principles didn't we settlement. making

Iowa passed well nuclear. expands may advance that's energy now to recall, not renewables, ratemaking but only facilities you include eligibility As as recently there's in legislation of also as been storage principles that the

now it I I'd opportunities well mainly . larger what So say some to opens over additional us projects, related years, up as few renewable as projects. projects next gas would the battery for say,

expands we thing, that the it's I Iowa business. well a to my by with to state that look that it is at it that which the taxes the movement are would is add to the And state customers, takeaway good you as positioned big mega growth. open advanced to the is, as for When really the of well us look with more economic as at site that resources are support and to has that respect combination see is that we ratemaking, the dedicated made development, very really one legislation, paid you changes Iowa for Andrew,

Jefferies. [Operator Instructions] [indiscernible] with move We will next Paul with

steam customer there X is are about you impact a XXXX The to With first contracts that about ending, from was ongoing any through clarification. respect think those? earnings hopefully that small talked the to

portion as of Think historically. earnings that the of profile IPL Paul. a modest of fairly Yes,

agreements to well depreciated steam of fully depreciation end that do so end assets. because a actually we we'll expense get not as be the structured in the and think significant And to as impact. the XXXX, We

should not impact ongoing be material. the So

EEI you much be the Great. of to kind plan, on generation run to the flavor centers? bigger side like be the Any before like update the scope helpful. of is factoring generation the under needs front the of coming. frame system then what And Okay. kind the there have how of length maybe needs, of any data current not way But in kind could would capital

don't have that. What is say, We that specifics we on feeling we're well can for that. very positioned Paul,

If out to forth capture data that feel that you are well think a that premium and economic kind about development, We've in that into centers, got We've a development. rate so affordability, the transmission got got in utility positioned looking land. onshoring we really and whether economic states future, is utility, supportive be mechanisms flexible to very that of growth has significant drive space. of it load access. ability We've

are, regulatory we as those potential and at which really on unlock mechanisms we and more customers so communities, constructive utility need broadly, look that focused that's And that jurisdictions. to for who that shareholders

it you've in for know for We of information having industry. Wisconsin. the the the lot in but more offers that think by as the you is about say peers to Iowa that the than and sure mechanism both I we we the there served as want flexibility much right have then energy need. model, the and with resources need that the really of planning make you of will clean us this and to information first, possible, that, flexible resource blueprint, and load, best that load a we this details is I have is got The that very timing all transparency that

grow customers in with And to puts so position us be it needs to completely of communities. the our scale very in line able a and and good

least We try. to Great. had at Okay.

I know do. you

[Operator Securities. Instructions] Alex We with Mortimer with Mizuho move will next

the You So we I highlighting forecast? know more update a puts directionally, you load Iowa in that for above in fall. those your Or bullish and say holistic some you? maybe about takes growth think should do prospects? below that have to seem you especially that a range the there just may as to potentially. to somewhere how peer seem load in X.X% X% the you'll you very regional the your But of reasonable get have update Does are levels, highlight or updates growth

is matter of Really all a timing.

again, information, as soon that we'll putting out. so have we be And yes, as it

no And this we I back management questions further closing call will time. to at remarks. for the show turn

on this thank investor questions, call. your available With contact of with for be free Alliant We concludes will no continued our Energy, follow-up me website. our A replay feel you more any support and to questions.

for This does program. your today's Thank participation. conclude you

You may at time. disconnect any