Utilities
Utilities - Regulated Electric
$14.79B
3.3K
Alliant Energy is a regulated investor-owned public utility holding company focused on providing electricity and natural gas services in the Midwest. The company's primary revenue streams come from its two public utility subsidiaries, Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL), which serve approximately 1 million electric and 425,000 natural gas customers. Alliant Energy also has a non-utility segment that includes investments in transmission, renewable energy, and supply chain solutions.
Key insights and themes extracted from this filing
Net income attributable to Alliant Energy common shareowners increased from $686 million in 2022 to $703 million in 2023. This reflects a modest improvement in overall profitability.
Electric utility revenues accounted for $3,345 million of the total $4,027 million in revenues for 2023, highlighting the importance of this segment to Alliant Energy's financial performance.
Gas utility revenues decreased from $642 million in 2022 to $540 million in 2023, primarily due to changes in temperatures.
The company continues to invest in renewable energy projects, particularly solar generation, with plans to add approximately 1,500 MW of zero-fuel cost solar generation resources by the end of 2024.
Alliant Energy plans to transition away from coal-fired EGUs, with the Edgewater Generating Station and Columbia Units 1 and 2 scheduled for retirement by June 1, 2025, and June 1, 2026, respectively.
IPL and WPL currently expect to make investments to extend various gas distribution systems to provide natural gas to unserved or underserved areas in their service territories.
Alliant Energy was named a Top Utility in Economic Development by Site Selection Magazine for the fifth year in a row, and was named a Top Utility by Business Facilities Magazine for the fourth year in a row.
Safety is integral to our company's culture. It is one of our Values - "Live safety. Everyone. Always. Our first priority is that nobody gets hurt."
Our comprehensive behavioral safety-based program consists of leading indicators, lagging indicators and targeted focus programs.
The company acknowledges the threat of cyber attacks targeting its information and telecommunications systems, potentially disrupting operations or leading to data breaches.
The company identifies the risk of reduced energy demand due to economic conditions, customer-owned generation, and energy efficiency measures.
The company acknowledges that large construction projects are subject to various risks, including regulatory approvals, cost overruns, and delays.
Although electric service in Iowa and Wisconsin is regulated, IPL and WPL still face competition from self-generation by large industrial customers, customer- and third party-owned generation (e.g. solar panels), alternative energy sources, and petitions to municipalize (Iowa) as well as service territory expansions by municipal utilities through annexations (Wisconsin).
In addition, the wholesale power market is competitive and IPL and WPL compete against independent power producers, other utilities and MISO market purchases to serve wholesale customers for their electric energy and capacity needs.
Alliant Energy's strategy includes actions to retain current customers and attract new customers into IPL's and WPL's service territories in an effort to keep energy rates low for all of their customers.
Requested PSCW approval to construct improvements at the natural gas-fired Neenah Energy Facility and Sheboygan Falls Energy Facility, which would increase the capacity and efficiency of the EGUs.
Significant fuel cost reductions achieved in 2021, 2022 and 2023 as a result of shortening the term of IPL's DAEC PPA by 5 years, and beginning in 2023 with the May 2023 retirement of Lansing.
Levelized cost recovery mechanism for the remaining net book value of Edgewater Unit 5, which helps reduce customer costs.
In 2023, the U.S. Department of Energy Office of Clean Energy selected the Columbia Energy Storage Project, a first of its kind in the U.S., 20 MW CO2-based long-duration energy storage system at the retiring coal-fired Columbia site, for award negotiations to receive up to $30 million in grant funding.
Improving reliability and resiliency with more underground electric distribution, and enabling distributed energy solutions with higher capacity lines. Currently, approximately 27% of Alliant Energy's electric distribution system is underground.
Installing fiber optic routes between Alliant Energy's facilities to enhance its communications network to improve resiliency and reliability of, and enable and strengthen, the integrated grid network focused on less densely populated rural areas.
Capital allocation process focused on transitioning its generation portfolio to meet the growing interest of customers for reliable and sustainable sources of energy, upgrading its electric and gas distribution systems to strengthen safety, reliability and resiliency, as well as enable distributed energy solutions in its service territories, and enhancing its customers' and employees' experience with evolving technology and greater flexibility.
We have forecasted capital expenditures of approximately $9 billion over the next four years.
IPL, WPL and AEF currently expect to issue up to $700 million, $300 million and $700 million of long-term debt, respectively, in 2024. Alliant Energy currently expects to issue up to $25 million of common stock in 2024 through its Shareowner Direct Plan.
Alliant Energy's environmental stewardship is focused on meeting its customers' energy needs affordably, safely, reliably and sustainably.
A diverse, equitable and inclusive workplace where everyone feels like they belong is crucial for the success and retention of our employees, to attract future talent and to execute our purpose-driven strategy to serve our customers and build stronger communities.
Received a perfect score on the Corporate Equality Index administered by the Human Rights Campaign Foundation to benchmark LGBTQ+ rights, policies and practices.
We operate in a highly regulated business environment. The advent of new and unregulated markets has the potential to significantly impact our financial condition and results of operations.
Our utility financial condition is influenced by how regulatory authorities, including the IUB, the PSCW and FERC, establish the rates we can charge our customers, our authorized rates of return and common equity levels, and the costs that may be recovered from customers.
We have established GHG reduction goals and continue to review our strategy and our role in supporting the transition to a low-carbon economy.