Alliant Energy plans substantial capital expenditures from 2025-2028, totaling $2.51 billion in 2025 alone, focused on adding approximately 1,500 MW of new natural gas resources, 1,200 MW of new wind generation, and 800 MW of new energy storage. These investments are aimed at meeting growing customer demand, including future data center growth, and strengthening grid resiliency.

WPL filed a retail electric and gas rate review for the 2026/2027 Test Period, requesting annual rate increases of $120 million for electric and $9 million for gas in 2026, and further increases in 2027. These filings are crucial for recovering costs associated with significant capital investments in wind refurbishment, energy storage, and natural gas-fired EGU improvements.

WPL has secured an electric service agreement with a new data center customer in Beaver Dam, Wisconsin, and both IPL and WPL have filed requests for approval of individual customer rates for anticipated data centers. The companies' executed electric service agreements include aggregate maximum demands of approximately 2.1 gigawatts, indicating a strategic focus on supporting significant industrial load growth.

Management successfully secured regulatory approvals for rate increases, with IPL's $185 million annual base rate increase effective October 2024 and WPL's $60 million annual base rate increase effective December 2023. These rate adjustments were a primary driver for the $66 million increase in Utilities and Corporate Services net income in Q1 2025, demonstrating effective regulatory strategy.

The company is actively pursuing significant construction and acquisition expenditures, with $554 million spent in Q1 2025, an increase from $478 million in Q1 2024. These investments are directed towards renewable energy, energy storage, and natural gas facilities, aligning with strategic goals to enhance generation capacity and grid reliability to meet evolving demand.

While total operating expenses increased by 7.7% to $871 million, largely due to higher depreciation and amortization ($211M vs $189M) and cost of gas sold ($137M vs $114M), operating income still grew by 15.8% to $257 million. This suggests that revenue growth and cost management, excluding specific increases tied to new assets and fuel, are maintaining operational efficiency.

The EPA is expected to initiate formal reconsideration of various environmental regulations, including Clean Air Act sections and the Coal Combustion Residuals Rule. Alliant Energy, IPL, and WPL are unable to predict with certainty the future outcome or financial impact of these matters, indicating ongoing regulatory risk and potential for significant future capital investments or operational modifications.

The forward-looking statements highlight risks from changes in the price of delivered natural gas, purchased electric energy, and coal, particularly during elevated market prices. Additionally, disruptions to the supply of materials, services, equipment, and commodities due to geopolitical issues, tariffs, and labor issues could affect capacity requirements and increase expenses.

While large load growth from new customers like data centers presents an opportunity, it also poses a risk if these customers do not timely construct new facilities or if the resulting higher system load demand exceeds expected levels and timeframes. This could necessitate adjustments to resource plans and potentially impact the ability to recover associated costs through rates.

The approved rate increases for IPL ($185M effective Oct 2024) and WPL ($60M effective Dec 2023) demonstrate regulatory support for the utilities' investments and cost recovery. This regulatory framework provides a stable revenue base and enhances the company's ability to maintain its competitive position in its service territories.

Alliant Energy's planned investments in new natural gas, wind, and energy storage facilities, along with refurbishments and conversions of existing plants, aim to add flexibility and meet evolving load growth. This diversified approach positions the company to adapt to changing energy demands and maintain a competitive edge in generation capacity.

The company's effective income tax rate was lower in Q1 2025 at (28%) compared to (7%) in Q1 2024, primarily due to additional tax credits from renewable generation and energy storage projects. The ability to efficiently utilize and transfer these tax credits helps reduce the overall cost of energy for customers, enhancing the company's pricing power and competitive advantage.

Depreciation and amortization expense increased by $22 million, or 11.6%, to $211 million in Q1 2025, primarily due to solar generation placed in service in 2024 and updated electric depreciation rates for IPL. This indicates the capitalization of new assets, which, while increasing non-cash expenses, is a natural outcome of ongoing capital investment to modernize and expand infrastructure.

Electric production fuel and purchased power expenses increased by $12 million, or 7.4%, to $175 million in Q1 2025, primarily due to higher prices of electricity purchased at WPL. Similarly, the cost of gas sold increased by $23 million, or 20.2%, to $137 million. These increases reflect market conditions for commodities and pose a challenge to maintaining cost efficiency.

Despite increases in fuel costs and depreciation, Alliant Energy's operating income increased by $35 million, or 15.8%, to $257 million. This suggests that the higher revenue requirements from increased rate base, driven by capital investments, are effectively offsetting some operational cost pressures, demonstrating a degree of operational efficiency in managing regulated assets.

Alliant Energy's capital expenditure plans for 2025-2028 include substantial investments in 1,200 MW of new wind generation and 800 MW of new energy storage projects. IPL and WPL have filed applications for approval to construct new wind farms and energy storage facilities, which are eligible for production and investment tax credits under the Inflation Reduction Act of 2022, demonstrating a commitment to advanced energy technologies.

The company plans to add approximately 1,500 MW of new natural gas resources and improve 280 MW at existing natural gas-fired EGUs. WPL specifically filed for approval to construct a 2 billion cubic feet liquefied natural gas (LNG) facility and was authorized to construct a 17.5 MW natural gas-fired EGU using Reciprocating Internal Combustion Engine (RICE) technology, indicating adoption of modern gas generation methods.

Alliant Energy's capital allocation includes significant investments in electric and gas distribution systems, with $595 million allocated for electric systems and $100 million for gas systems in 2025. These investments are crucial for strengthening the resiliency and reliability of the electric grid, which is essential for integrating new generation sources and meeting increased load demands.

Alliant Energy's construction and acquisition expenditures increased to $554 million in Q1 2025 from $478 million in Q1 2024, with a projected $2.51 billion for 2025 alone. These funds are primarily allocated to utility business, including new generation, energy storage, and distribution system improvements, demonstrating a clear priority for infrastructure development.

The company expects to issue up to $1.3 billion of common stock from 2025-2028 and up to $1.3 billion in long-term debt at the parent level for the remainder of 2025. This balanced approach to capital raising aims to fund significant capital projects while maintaining a healthy capital structure, with common equity representing 40% of Alliant Energy's capital structure.

Alliant Energy paid common stock dividends of $130 million in Q1 2025, an increase from $123 million in Q1 2024. The company's ability to sustain its dividend payout ratio goal, as noted in forward-looking statements, indicates a commitment to returning value to shareholders, supported by growing net income.

Alliant Energy's capital plans include substantial investments in new wind generation and energy storage projects, which are eligible for production and investment tax credits under the Inflation Reduction Act of 2022. This commitment to renewables, alongside plans to convert coal-fired EGUs to natural gas, demonstrates a clear strategy towards reducing carbon emissions and enhancing environmental sustainability.

IPL and WPL are actively working to investigate, mitigate, and remediate environmental impacts at former Manufactured Gas Plant (MGP) sites to protect public health and the environment. IPL also expects to recover material costs incurred for compliance with the Consent Decree related to Clean Air Act issues, indicating a commitment to addressing historical environmental liabilities.

The EPA's expected formal reconsideration of various environmental regulations, including the Clean Air Act and Coal Combustion Residuals Rule, introduces uncertainty regarding future compliance requirements and potential costs. While the company is monitoring these developments, the inability to predict the full financial impact highlights a key risk in achieving environmental targets.

Regulatory bodies, such as the IUC and PSCW, have approved significant rate increases for IPL and WPL, including IPL's $185 million annual base rate increase and WPL's $60 million increase. These approvals reflect a supportive regulatory environment that allows the company to recover costs associated with capital investments and maintain financial stability.

Alliant Energy's retail electric sales volumes increased 3% and retail gas sales volumes increased 18% year-over-year, partly due to increased sales to commercial and industrial customers at WPL. The company has secured an electric service agreement for a new data center, with aggregate maximum demands of approximately 2.1 gigawatts from executed agreements, indicating robust demand in its service territories.

The forward-looking statements highlight risks from inflation and higher interest rates, which can impact capital costs and financing. Additionally, changes in the price of delivered natural gas, purchased electric energy, and coal, particularly during elevated market prices, can affect operating expenses and profitability, reflecting exposure to broader market conditions.