DERIVATIVE INSTRUMENTS

Commodity Derivatives -

Purpose - Derivative instruments were used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices, transmission congestion costs and rail transportation costs. Risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:


Risk management purpose			Type of instrument
Mitigate pricing volatility for:
Fuel used to supply natural gas-fired EGUs			Natural gas swap, options and physical forward contracts (IPL and WPL)
Natural gas supplied to retail customers			Natural gas swap, options and physical forward contracts (IPL and WPL)
Fuel used at coal-fired EGUs			Coal physical forward contracts (IPL and WPL)
Electric generation and load			Electric swap contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacity			Natural gas physical forward contracts (IPL and WPL)
			Natural gas swap contracts (IPL)
Optimize the value of electric generation			Electric swap contracts (IPL and WPL)
Manage transmission congestion costs			FTRs (IPL and WPL)
Manage rail transportation costs			Diesel fuel swap contracts (WPL)

Notional Amounts - As of December 31, 2022, gross notional amounts and settlement/delivery years related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):


	Electricity		FTRs		Natural Gas		Coal
	MWhs	Years	MWhs	Years	Dths	Years	Tons	Years
Alliant Energy	1,132	2023-2025	9,046	2023	224,060	2023-2032	781	2023
IPL	589	2023-2025	3,999	2023	115,237	2023-2030	396	2023
WPL	543	2023	5,047	2023	108,823	2023-2032	385	2023

Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheet as assets or liabilities. At December 31, the fair values of current derivative assets are included in “Other current assets,” non-current derivative assets are included in “Deferred charges and other,” current derivative liabilities are included in “Other current liabilities” and non-current derivative liabilities are included in “Other liabilities” on the balance sheets as follows (in millions):


	Alliant Energy		IPL		WPL
	2022	2021	2022	2021	2022	2021
Current derivative assets	$111	$113	$69	$48	$42	$65
Non-current derivative assets	126	63	69	36	57	27
Current derivative liabilities	59	8	40	4	19	4
Non-current derivative liabilities	20	1	6	—	14	1

In 2022, Alliant Energy’s, IPL’s and WPL’s derivative assets increased primarily as a result of higher natural gas prices. Alliant Energy’s, IPL’s and WPL’s derivative liabilities increased primarily due to new natural gas contracts entered into in 2022 and declining natural gas prices subsequent to the execution of the new contracts. Based on IPL’s and WPL’s cost recovery mechanisms, the changes in the fair value of derivative liabilities/assets resulted in comparable changes to regulatory assets/liabilities on the balance sheets.

Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. At December 31, 2022 and 2021, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position was not materially different than amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered.

Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, derivative assets and derivative liabilities related to commodity contracts would have been presented on the balance sheets at December 31 as follows:


	Alliant Energy		IPL		WPL
	Gross		Gross		Gross
	(as reported)	Net	(as reported)	Net	(as reported)	Net
2022
Derivative assets	$237	$193	$138	$108	$99	$85
Derivative liabilities	79	35	46	16	33	19
2021
Derivative assets	176	171	84	83	92	88
Derivative liabilities	9	4	4	3	5	1

Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.

Derivative [Line Items]

Derivative Instruments

DERIVATIVE INSTRUMENTS

Commodity Derivatives -

Purpose - Derivative instruments were used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices, transmission congestion costs and rail transportation costs. Risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:


Risk management purpose			Type of instrument
Mitigate pricing volatility for:
Fuel used to supply natural gas-fired EGUs			Natural gas swap, options and physical forward contracts (IPL and WPL)
Natural gas supplied to retail customers			Natural gas swap, options and physical forward contracts (IPL and WPL)
Fuel used at coal-fired EGUs			Coal physical forward contracts (IPL and WPL)
Electric generation and load			Electric swap contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacity			Natural gas physical forward contracts (IPL and WPL)
			Natural gas swap contracts (IPL)
Optimize the value of electric generation			Electric swap contracts (IPL and WPL)
Manage transmission congestion costs			FTRs (IPL and WPL)
Manage rail transportation costs			Diesel fuel swap contracts (WPL)

Notional Amounts - As of December 31, 2022, gross notional amounts and settlement/delivery years related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):


	Electricity		FTRs		Natural Gas		Coal
	MWhs	Years	MWhs	Years	Dths	Years	Tons	Years
Alliant Energy	1,132	2023-2025	9,046	2023	224,060	2023-2032	781	2023
IPL	589	2023-2025	3,999	2023	115,237	2023-2030	396	2023
WPL	543	2023	5,047	2023	108,823	2023-2032	385	2023

Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheet as assets or liabilities. At December 31, the fair values of current derivative assets are included in “Other current assets,” non-current derivative assets are included in “Deferred charges and other,” current derivative liabilities are included in “Other current liabilities” and non-current derivative liabilities are included in “Other liabilities” on the balance sheets as follows (in millions):


	Alliant Energy		IPL		WPL
	2022	2021	2022	2021	2022	2021
Current derivative assets	$111	$113	$69	$48	$42	$65
Non-current derivative assets	126	63	69	36	57	27
Current derivative liabilities	59	8	40	4	19	4
Non-current derivative liabilities	20	1	6	—	14	1

In 2022, Alliant Energy’s, IPL’s and WPL’s derivative assets increased primarily as a result of higher natural gas prices. Alliant Energy’s, IPL’s and WPL’s derivative liabilities increased primarily due to new natural gas contracts entered into in 2022 and declining natural gas prices subsequent to the execution of the new contracts. Based on IPL’s and WPL’s cost recovery mechanisms, the changes in the fair value of derivative liabilities/assets resulted in comparable changes to regulatory assets/liabilities on the balance sheets.

Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. At December 31, 2022 and 2021, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position was not materially different than amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered.

Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, derivative assets and derivative liabilities related to commodity contracts would have been presented on the balance sheets at December 31 as follows:


	Alliant Energy		IPL		WPL
	Gross		Gross		Gross
	(as reported)	Net	(as reported)	Net	(as reported)	Net
2022
Derivative assets	$237	$193	$138	$108	$99	$85
Derivative liabilities	79	35	46	16	33	19
2021
Derivative assets	176	171	84	83	92	88
Derivative liabilities	9	4	4	3	5	1

Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.