Alliant Energy Corporation |
Corporate Headquarters |
4902 North Biltmore Lane |
Madison, WI 53718-2148 |
www.alliantenergy.com |
FOR IMMEDIATE RELEASE | Media Contact: | Scott Reigstad (608) 458-3145 | ||
Investor Relations: | Susan Gille (608) 458-3956 |
GAAP EPS | Non-GAAP EPS | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Utilities and Corporate Services | $0.89 | $0.92 | $0.89 | $0.92 | |||||||||||
American Transmission Company (ATC) Holdings | 0.03 | 0.03 | 0.03 | 0.03 | |||||||||||
Non-utility and Parent | 0.06 | (0.01 | ) | 0.02 | (0.01 | ) | |||||||||
Alliant Energy Consolidated | $0.98 | $0.94 | $0.94 | $0.94 |
Variance | |||
Timing of income taxes | $0.09 | ||
Higher revenue requirements primarily due to increasing rate base | 0.07 | ||
Higher depreciation expense | (0.04 | ) | |
Equity dilution | (0.04 | ) | |
Credit loss adjustment on guarantee for affiliate of Whiting Petroleum | 0.04 | ||
Other (includes lower sales due to the Derecho and COVID-19) | (0.08 | ) | |
Total | $0.04 |
Revised | Previous | ||
Alliant Energy Consolidated | $2.40 - $2.46 | $2.34 - $2.48 |
• | Ability of IPL and WPL to earn their authorized rates of return |
• | Normal temperatures in its utility service territories |
• | Continued improvement through the remainder of 2020 of COVID-19 and Derecho related sales impacts |
• | Execution of cost controls |
• | Execution of capital expenditure and financing plans |
• | Consolidated effective tax rate of (9%) |
• | Ability of IPL and WPL to earn their authorized rates of return |
• | Stable economy and COVID-19 impacts and resulting implications on utility sales |
• | Normal temperatures in its utility service territories |
• | Execution of cost controls |
• | Execution of capital expenditure and financing plans |
• | Consolidated effective tax rate of (14%) |
2020 | 2021 | 2022 | 2023 | 2024 | |||||||||||||||
Generation: | |||||||||||||||||||
Renewable projects | $265 | $485 | $750 | $635 | $320 | ||||||||||||||
Other | 150 | 90 | 180 | 175 | 90 | ||||||||||||||
Distribution: | |||||||||||||||||||
Electric systems | 675 | 470 | 435 | 535 | 695 | ||||||||||||||
Gas systems | 170 | 70 | 75 | 70 | 70 | ||||||||||||||
Other | 120 | 180 | 185 | 190 | 195 | ||||||||||||||
Gross Capital Expenditures | $1,380 | $1,295 | $1,625 | $1,605 | $1,370 | ||||||||||||||
Solar Project Tax Equity | — | — | (210 | ) | (480 | ) | — | ||||||||||||
Net Capital Expenditures | $1,380 | $1,295 | $1,415 | $1,125 | $1,370 |
• | IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of and/or the return on costs, including fuel costs, operating costs, transmission costs, deferred expenditures, deferred tax assets, tax expense, capital expenditures, and remaining costs related to electric generating units (EGUs) that may be permanently closed and certain other retired assets, decreases in sales volumes, earning their authorized rates of return, and the payments to their parent of expected levels of dividends; |
• | federal and state regulatory or governmental actions, including the impact of legislation, and regulatory agency orders; |
• | the direct or indirect effects resulting from the COVID-19 pandemic on sales volumes, margins, operations, employees, contractors, vendors, the ability to complete construction projects, supply chains, customers’ inability to pay bills, suspension of disconnects and waiving of late fees applied to past due accounts, the market value of the assets that fund pension plans and the potential for additional funding requirements, the ability of counterparties to meet their obligations, compliance with regulatory requirements, the ability to implement regulatory plans, economic conditions and access to capital markets; |
• | the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity; |
• | the impact of energy efficiency, franchise retention and customer disconnects on sales volumes and margins; |
• | the impact that price changes may have on IPL’s and WPL’s customers’ demand for electric, gas and steam services and their ability to pay their bills; |
• | the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire; |
• | the direct or indirect effects resulting from terrorist incidents, including physical attacks and cyber attacks, or responses to such incidents; |
• | the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns; |
• | any material post-closing payments related to any past asset divestitures, including the sale of Whiting Petroleum Corporation (Whiting Petroleum), which could result from, among other things, indemnification agreements, warranties, guarantees or litigation; |
• | employee workforce factors, including changes in key executives, ability to hire and retain employees with specialized skills, ability to create desired corporate culture, collective bargaining agreements and negotiations, work stoppages or restructurings; |
• | weather effects on results of utility operations; |
• | issues associated with environmental remediation and environmental compliance, including compliance with all environmental and emissions permits, the Coal Combustion Residuals Rule, future changes in environmental laws and regulations, including federal, state or local regulations for carbon dioxide emissions reductions from new and existing fossil-fueled EGUs, and litigation associated with environmental requirements; |
• | increased pressure from customers, investors and other stakeholders to more rapidly reduce carbon dioxide emissions; |
• | the ability to defend against environmental claims brought by state and federal agencies, such as the U.S. Environmental Protection Agency, state natural resources agencies or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims; |
• | continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies; |
• | inflation and interest rates; |
• | the ability to complete construction of solar projects within the cost caps set by regulators and to meet all requirements to qualify for the full level of renewable tax credits; |
• | changes in the price of delivered natural gas, purchased electricity and coal due to shifts in supply and demand caused by market conditions and regulations; |
• | disruptions in the supply and delivery of natural gas, purchased electricity and coal; |
• | the direct or indirect effects resulting from breakdown or failure of equipment in the operation of electric and gas distribution systems, such as mechanical problems and explosions or fires, and compliance with electric and gas transmission and distribution safety regulations, including regulations promulgated by the Pipeline and Hazardous Materials Safety Administration; |
• | issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, performance below expected or contracted levels of output or efficiency, operator error, employee safety, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental costs through rates; |
• | impacts that excessive heat, storms or natural disasters may have on Alliant Energy’s, IPL’s and WPL’s operations and recovery of costs associated with restoration activities, including those related to the August 2020 derecho storm, or on the operations of Alliant Energy’s investments; |
• | Alliant Energy’s ability to sustain its dividend payout ratio goal; |
• | changes to costs of providing benefits and related funding requirements of pension and other postretirement benefits plans due to the market value of the assets that fund the plans, economic conditions, financial market performance, interest rates, timing and form of benefits payments, life expectancies and demographics; |
• | material changes in employee-related benefit and compensation costs; |
• | risks associated with operation and ownership of non-utility holdings; |
• | changes in technology that alter the channels through which customers buy or utilize Alliant Energy’s, IPL’s or WPL’s products and services; |
• | impacts on equity income from unconsolidated investments from valuations and potential changes to ATC LLC’s authorized return on equity; |
• | impacts of IPL’s future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures, allocation of mixed service costs and state depreciation, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods; |
• | the impacts of changes in tax rates, including adjustments made to deferred tax assets and liabilities; |
• | changes to the creditworthiness of counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters; |
• | current or future litigation, regulatory investigations, proceedings or inquiries; |
• | reputational damage from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions; |
• | the effect of accounting standards issued periodically by standard-setting bodies; |
• | the ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and |
• | other factors listed in the “2020 Earnings Guidance” and “2021 Earnings Guidance” sections of this press release. |
EPS: | Three Months | ||||||||||||||||||||||
GAAP EPS | Adjustments | Non-GAAP EPS | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
IPL | $0.59 | $0.59 | $— | $— | $0.59 | $0.59 | |||||||||||||||||
WPL | 0.29 | 0.31 | — | — | 0.29 | 0.31 | |||||||||||||||||
Corporate Services | 0.01 | 0.02 | — | — | 0.01 | 0.02 | |||||||||||||||||
Subtotal for Utilities and Corporate Services | 0.89 | 0.92 | — | — | 0.89 | 0.92 | |||||||||||||||||
ATC Holdings | 0.03 | 0.03 | — | — | 0.03 | 0.03 | |||||||||||||||||
Non-utility and Parent | 0.06 | (0.01 | ) | (0.04 | ) | — | 0.02 | (0.01 | ) | ||||||||||||||
Alliant Energy Consolidated | $0.98 | $0.94 | ($0.04 | ) | $— | $0.94 | $0.94 |
Earnings (in millions): | Three Months | ||||||||||||||||||||||
GAAP Income (Loss) | Adjustments | Non-GAAP Income (Loss) | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
IPL | $148 | $141 | $— | $— | $148 | $141 | |||||||||||||||||
WPL | 73 | 76 | — | — | 73 | 76 | |||||||||||||||||
Corporate Services | 3 | 3 | — | — | 3 | 3 | |||||||||||||||||
Subtotal for Utilities and Corporate Services | 224 | 220 | — | — | 224 | 220 | |||||||||||||||||
ATC Holdings | 8 | 8 | — | — | 8 | 8 | |||||||||||||||||
Non-utility and Parent | 14 | (2 | ) | (11 | ) | — | 3 | (2 | ) | ||||||||||||||
Alliant Energy Consolidated | $246 | $226 | ($11 | ) | $— | $235 | $226 |
Non-GAAP Income | Non-GAAP | ||||||||||||||
Adjustments (in millions) | EPS Adjustments | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Non-utility and Parent: | |||||||||||||||
Credit loss adjustment on guarantees for an affiliate of Whiting Petroleum, net of tax impacts of $4 million | ($11 | ) | $— | ($0.04 | ) | $— |
EPS: | Nine Months | ||||||||||||||||||||||
GAAP EPS | Adjustments | Non-GAAP EPS | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
IPL | $1.17 | $1.01 | $— | $— | $1.17 | $1.01 | |||||||||||||||||
WPL | 0.88 | 0.77 | — | — | 0.88 | 0.77 | |||||||||||||||||
Corporate Services | 0.04 | 0.03 | — | — | 0.04 | 0.03 | |||||||||||||||||
Subtotal for Utilities and Corporate Services | 2.09 | 1.81 | — | — | 2.09 | 1.81 | |||||||||||||||||
ATC Holdings | 0.11 | 0.09 | — | — | 0.11 | 0.09 | |||||||||||||||||
Non-utility and Parent | 0.02 | (0.03 | ) | (0.02 | ) | — | — | (0.03 | ) | ||||||||||||||
Alliant Energy Consolidated | $2.22 | $1.87 | ($0.02 | ) | $— | $2.20 | $1.87 |
Earnings (in millions): | Nine Months | ||||||||||||||||||||||
GAAP Income (Loss) | Adjustments | Non-GAAP Income (Loss) | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
IPL | $290 | $239 | $— | $— | $290 | $239 | |||||||||||||||||
WPL | 220 | 183 | — | — | 220 | 183 | |||||||||||||||||
Corporate Services | 10 | 10 | — | — | 10 | 10 | |||||||||||||||||
Subtotal for Utilities and Corporate Services | 520 | 432 | — | — | 520 | 432 | |||||||||||||||||
ATC Holdings | 26 | 23 | — | — | 26 | 23 | |||||||||||||||||
Non-utility and Parent | 4 | (9 | ) | (5 | ) | — | (1 | ) | (9 | ) | |||||||||||||
Alliant Energy Consolidated | $550 | $446 | ($5 | ) | $— | $545 | $446 |
Non-GAAP Income | Non-GAAP | ||||||||||||||
Adjustments (in millions) | EPS Adjustments | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Non-utility and Parent: | |||||||||||||||
Credit loss adjustments on guarantees for an affiliate of Whiting Petroleum, net of tax impacts of $2 million | ($5 | ) | $— | ($0.02 | ) | $— |
ALLIANT ENERGY CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Electric utility | $852 | $916 | $2,257 | $2,350 | |||||||||||
Gas utility | 42 | 42 | 253 | 323 | |||||||||||
Other utility | 10 | 11 | 32 | 33 | |||||||||||
Non-utility | 16 | 21 | 57 | 62 | |||||||||||
920 | 990 | 2,599 | 2,768 | ||||||||||||
Operating expenses: | |||||||||||||||
Electric production fuel and purchased power | 179 | 219 | 527 | 602 | |||||||||||
Electric transmission service | 132 | 127 | 326 | 363 | |||||||||||
Cost of gas sold | 11 | 9 | 117 | 151 | |||||||||||
Other operation and maintenance: | |||||||||||||||
Energy efficiency costs | 15 | 19 | 37 | 67 | |||||||||||
Non-utility Travero | 12 | 15 | 42 | 44 | |||||||||||
Other | 116 | 140 | 386 | 416 | |||||||||||
Depreciation and amortization | 156 | 144 | 454 | 424 | |||||||||||
Taxes other than income taxes | 27 | 27 | 82 | 84 | |||||||||||
648 | 700 | 1,971 | 2,151 | ||||||||||||
Operating income | 272 | 290 | 628 | 617 | |||||||||||
Other (income) and deductions: | |||||||||||||||
Interest expense | 68 | 68 | 207 | 204 | |||||||||||
Equity income from unconsolidated investments, net | (15 | ) | (12 | ) | (46 | ) | (35 | ) | |||||||
Allowance for funds used during construction | (13 | ) | (22 | ) | (51 | ) | (66 | ) | |||||||
Other | 3 | 4 | 7 | 11 | |||||||||||
43 | 38 | 117 | 114 | ||||||||||||
Income before income taxes | 229 | 252 | 511 | 503 | |||||||||||
Income tax expense (benefit) | (20 | ) | 23 | (47 | ) | 49 | |||||||||
Net income | 249 | 229 | 558 | 454 | |||||||||||
Preferred dividend requirements of IPL | 3 | 3 | 8 | 8 | |||||||||||
Net income attributable to Alliant Energy common shareowners | $246 | $226 | $550 | $446 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 249.7 | 239.1 | 247.9 | 237.7 | |||||||||||
Diluted | 250.0 | 239.9 | 248.1 | 238.2 | |||||||||||
Earnings per weighted average common share attributable to Alliant Energy common shareowners: | |||||||||||||||
Basic | $0.99 | $0.95 | $2.22 | $1.88 | |||||||||||
Diluted | $0.98 | $0.94 | $2.22 | $1.87 |
ALLIANT ENERGY CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
September 30, 2020 | December 31, 2019 | ||||||
(in millions) | |||||||
ASSETS: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $189 | $16 | |||||
Other current assets | 844 | 860 | |||||
Property, plant and equipment, net | 14,199 | 13,527 | |||||
Investments | 478 | 468 | |||||
Other assets | 1,830 | 1,830 | |||||
Total assets | $17,540 | $16,701 | |||||
LIABILITIES AND EQUITY: | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $7 | $657 | |||||
Commercial paper | 422 | 337 | |||||
Other current liabilities | 866 | 1,060 | |||||
Long-term debt, net (excluding current portion) | 6,574 | 5,533 | |||||
Other liabilities | 3,762 | 3,709 | |||||
Equity: | |||||||
Alliant Energy Corporation common equity | 5,709 | 5,205 | |||||
Cumulative preferred stock of Interstate Power and Light Company | 200 | 200 | |||||
Total equity | 5,909 | 5,405 | |||||
Total liabilities and equity | $17,540 | $16,701 |
ALLIANT ENERGY CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Cash flows from operating activities: | |||||||
Cash flows from operating activities excluding accounts receivable sold to a third party | $767 | $882 | |||||
Accounts receivable sold to a third party | (331 | ) | (373 | ) | |||
Net cash flows from operating activities | 436 | 509 | |||||
Cash flows used for investing activities: | |||||||
Construction and acquisition expenditures: | |||||||
Utility business | (935 | ) | (1,004 | ) | |||
Other | (39 | ) | (71 | ) | |||
Cash receipts on sold receivables | 318 | 256 | |||||
Other | (23 | ) | (42 | ) | |||
Net cash flows used for investing activities | (679 | ) | (861 | ) | |||
Cash flows from financing activities: | |||||||
Common stock dividends | (281 | ) | (253 | ) | |||
Proceeds from issuance of common stock, net | 241 | 185 | |||||
Proceeds from issuance of long-term debt | 1,050 | 950 | |||||
Payments to retire long-term debt | (654 | ) | (253 | ) | |||
Net change in commercial paper | 85 | (92 | ) | ||||
Other | (22 | ) | (11 | ) | |||
Net cash flows from financing activities | 419 | 526 | |||||
Net increase in cash, cash equivalents and restricted cash | 176 | 174 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 18 | 26 | |||||
Cash, cash equivalents and restricted cash at end of period | $194 | $200 |
September 30, 2020 | September 30, 2019 | ||||||
Common shares outstanding (000s) | 249,761 | 240,343 | |||||
Book value per share | $22.86 | $20.68 | |||||
Quarterly common dividend rate per share | $0.38 | $0.355 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Utility electric sales (000s of megawatt-hours) | |||||||||||||||
Residential | 2,121 | 2,076 | 5,565 | 5,509 | |||||||||||
Commercial | 1,679 | 1,760 | 4,599 | 4,834 | |||||||||||
Industrial | 2,752 | 2,828 | 7,759 | 8,064 | |||||||||||
Industrial - co-generation customers | 210 | 204 | 573 | 628 | |||||||||||
Retail subtotal | 6,762 | 6,868 | 18,496 | 19,035 | |||||||||||
Sales for resale: | |||||||||||||||
Wholesale | 713 | 725 | 1,906 | 2,005 | |||||||||||
Bulk power and other | 740 | 1,278 | 3,056 | 2,830 | |||||||||||
Other | 17 | 23 | 53 | 71 | |||||||||||
Total | 8,232 | 8,894 | 23,511 | 23,941 | |||||||||||
Utility retail electric customers (at September 30) | |||||||||||||||
Residential | 825,720 | 819,207 | |||||||||||||
Commercial | 143,085 | 142,794 | |||||||||||||
Industrial | 2,402 | 2,478 | |||||||||||||
Total | 971,207 | 964,479 | |||||||||||||
Utility gas sold and transported (000s of dekatherms) | |||||||||||||||
Residential | 1,388 | 1,118 | 18,509 | 20,653 | |||||||||||
Commercial | 1,553 | 1,477 | 11,940 | 13,862 | |||||||||||
Industrial | 559 | 549 | 2,096 | 2,045 | |||||||||||
Retail subtotal | 3,500 | 3,144 | 32,545 | 36,560 | |||||||||||
Transportation / other | 24,842 | 25,021 | 79,546 | 71,814 | |||||||||||
Total | 28,342 | 28,165 | 112,091 | 108,374 | |||||||||||
Utility retail gas customers (at September 30) | |||||||||||||||
Residential | 373,485 | 368,618 | |||||||||||||
Commercial | 44,038 | 44,118 | |||||||||||||
Industrial | 343 | 352 | |||||||||||||
Total | 417,866 | 413,088 | |||||||||||||
Estimated margin increases (decreases) from impacts of temperatures (in millions) - | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Electric margins | $6 | $6 | $5 | $9 | |||||||||||
Gas margins | — | — | (1 | ) | 6 | ||||||||||
Total temperature impact on margins | $6 | $6 | $4 | $15 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | Normal | 2020 | 2019 | Normal | ||||||||||||
Heating degree days (HDDs) (a) | |||||||||||||||||
Cedar Rapids, Iowa (IPL) | 153 | 42 | 131 | 4,149 | 4,625 | 4,194 | |||||||||||
Madison, Wisconsin (WPL) | 174 | 55 | 156 | 4,311 | 4,773 | 4,459 | |||||||||||
Cooling degree days (CDDs) (a) | |||||||||||||||||
Cedar Rapids, Iowa (IPL) | 562 | 618 | 545 | 796 | 792 | 788 | |||||||||||
Madison, Wisconsin (WPL) | 521 | 536 | 492 | 735 | 653 | 680 |
(a) | HDDs and CDDs are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDDs and CDDs. |