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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and related estimated fair values of other financial instruments were as follows (in millions):


Alliant Energy	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$6	$6	$—	$—	$6	$44	$44	$—	$—	$44
Derivatives	102	—	62	40	102	34	—	5	29	34
Deferred proceeds	154	—	—	154	154	188	—	—	188	188
Liabilities:
Derivatives	4	—	3	1	4	25	—	25	—	25
Long-term debt (incl. current maturities)	6,776	—	7,846	1	7,847	6,777	—	8,107	2	8,109


IPL	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$6	$6	$—	$—	$6	$44	$44	$—	$—	$44
Derivatives	56	—	25	31	56	29	—	3	26	29
Deferred proceeds	154	—	—	154	154	188	—	—	188	188
Liabilities:
Derivatives	2	—	1	1	2	12	—	12	—	12
Long-term debt	3,346	—	3,880	—	3,880	3,345	—	4,021	—	4,021


WPL	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:

Derivatives	$46	$—	$37	$9	$46	$5	$—	$2	$3	$5
Liabilities:
Derivatives	2	—	2	—	2	13	—	13	—	13
Long-term debt	2,131	—	2,593	—	2,593	2,130	—	2,690	—	2,690

Information for Alliant Energy’s and IPL’s fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions). Such amounts for WPL were not material.


Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended June 30	2021	2020	2021	2020
Beginning balance, April 1	$15	$14	$107	$188
Total net gains included in changes in net assets (realized/unrealized)	8	12	—	—


Purchases	21	14	—	—

Settlements (a)	(5)	(4)	47	6
Ending balance, June 30	$39	$36	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$8	$12	$—	$—



Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Six Months Ended June 30	2021	2020	2021	2020
Beginning balance, January 1	$29	$21	$188	$188
Total net gains included in changes in net assets (realized/unrealized)	1	9	—	—


Purchases	21	14	—	—

Settlements (a)	(12)	(8)	(34)	6
Ending balance, June 30	$39	$36	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$1	$9	$—	$—


IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended June 30	2021	2020	2021	2020
Beginning balance, April 1	$14	$13	$107	$188
Total net gains included in changes in net assets (realized/unrealized)	4	11	—	—


Purchases	16	11	—	—

Settlements (a)	(4)	(3)	47	6
Ending balance, June 30	$30	$32	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$4	$11	$—	$—



IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Six Months Ended June 30	2021	2020	2021	2020
Beginning balance, January 1	$26	$18	$188	$188
Total net gains (losses) included in changes in net assets (realized/unrealized)	(2)	9	—	—


Purchases	16	11	—	—

Settlements (a)	(10)	(6)	(34)	6
Ending balance, June 30	$30	$32	$154	$194
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at June 30	($2)	$9	$—	$—

(a)Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for expected credit losses associated with the receivables sold and cash amounts received from the receivables sold.

Commodity Contracts - The fair value of FTR and natural gas commodity contracts categorized as Level 3 was recognized as net derivative assets as follows (in millions):


	Alliant Energy		IPL		WPL
	Excluding FTRs	FTRs	Excluding FTRs	FTRs	Excluding FTRs	FTRs
June 30, 2021	$13	$26	$13	$17	$—	$9
December 31, 2020	18	11	17	9	1	2

IPL [Member]

Fair Value Measurements

FAIR VALUE MEASUREMENTS


Alliant Energy	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$6	$6	$—	$—	$6	$44	$44	$—	$—	$44
Derivatives	102	—	62	40	102	34	—	5	29	34
Deferred proceeds	154	—	—	154	154	188	—	—	188	188
Liabilities:
Derivatives	4	—	3	1	4	25	—	25	—	25
Long-term debt (incl. current maturities)	6,776	—	7,846	1	7,847	6,777	—	8,107	2	8,109


IPL	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$6	$6	$—	$—	$6	$44	$44	$—	$—	$44
Derivatives	56	—	25	31	56	29	—	3	26	29
Deferred proceeds	154	—	—	154	154	188	—	—	188	188
Liabilities:
Derivatives	2	—	1	1	2	12	—	12	—	12
Long-term debt	3,346	—	3,880	—	3,880	3,345	—	4,021	—	4,021


WPL	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:

Derivatives	$46	$—	$37	$9	$46	$5	$—	$2	$3	$5
Liabilities:
Derivatives	2	—	2	—	2	13	—	13	—	13
Long-term debt	2,131	—	2,593	—	2,593	2,130	—	2,690	—	2,690

Information for Alliant Energy’s and IPL’s fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions). Such amounts for WPL were not material.


Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended June 30	2021	2020	2021	2020
Beginning balance, April 1	$15	$14	$107	$188
Total net gains included in changes in net assets (realized/unrealized)	8	12	—	—


Purchases	21	14	—	—

Settlements (a)	(5)	(4)	47	6
Ending balance, June 30	$39	$36	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$8	$12	$—	$—



Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Six Months Ended June 30	2021	2020	2021	2020
Beginning balance, January 1	$29	$21	$188	$188
Total net gains included in changes in net assets (realized/unrealized)	1	9	—	—


Purchases	21	14	—	—

Settlements (a)	(12)	(8)	(34)	6
Ending balance, June 30	$39	$36	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$1	$9	$—	$—


IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended June 30	2021	2020	2021	2020
Beginning balance, April 1	$14	$13	$107	$188
Total net gains included in changes in net assets (realized/unrealized)	4	11	—	—


Purchases	16	11	—	—

Settlements (a)	(4)	(3)	47	6
Ending balance, June 30	$30	$32	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$4	$11	$—	$—



IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Six Months Ended June 30	2021	2020	2021	2020
Beginning balance, January 1	$26	$18	$188	$188
Total net gains (losses) included in changes in net assets (realized/unrealized)	(2)	9	—	—


Purchases	16	11	—	—

Settlements (a)	(10)	(6)	(34)	6
Ending balance, June 30	$30	$32	$154	$194
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at June 30	($2)	$9	$—	$—

Commodity Contracts - The fair value of FTR and natural gas commodity contracts categorized as Level 3 was recognized as net derivative assets as follows (in millions):


	Alliant Energy		IPL		WPL
	Excluding FTRs	FTRs	Excluding FTRs	FTRs	Excluding FTRs	FTRs
June 30, 2021	$13	$26	$13	$17	$—	$9
December 31, 2020	18	11	17	9	1	2

WPL [Member]

Fair Value Measurements

FAIR VALUE MEASUREMENTS


Alliant Energy	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$6	$6	$—	$—	$6	$44	$44	$—	$—	$44
Derivatives	102	—	62	40	102	34	—	5	29	34
Deferred proceeds	154	—	—	154	154	188	—	—	188	188
Liabilities:
Derivatives	4	—	3	1	4	25	—	25	—	25
Long-term debt (incl. current maturities)	6,776	—	7,846	1	7,847	6,777	—	8,107	2	8,109


IPL	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$6	$6	$—	$—	$6	$44	$44	$—	$—	$44
Derivatives	56	—	25	31	56	29	—	3	26	29
Deferred proceeds	154	—	—	154	154	188	—	—	188	188
Liabilities:
Derivatives	2	—	1	1	2	12	—	12	—	12
Long-term debt	3,346	—	3,880	—	3,880	3,345	—	4,021	—	4,021


WPL	June 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:

Derivatives	$46	$—	$37	$9	$46	$5	$—	$2	$3	$5
Liabilities:
Derivatives	2	—	2	—	2	13	—	13	—	13
Long-term debt	2,131	—	2,593	—	2,593	2,130	—	2,690	—	2,690

Information for Alliant Energy’s and IPL’s fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions). Such amounts for WPL were not material.


Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended June 30	2021	2020	2021	2020
Beginning balance, April 1	$15	$14	$107	$188
Total net gains included in changes in net assets (realized/unrealized)	8	12	—	—


Purchases	21	14	—	—

Settlements (a)	(5)	(4)	47	6
Ending balance, June 30	$39	$36	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$8	$12	$—	$—



Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Six Months Ended June 30	2021	2020	2021	2020
Beginning balance, January 1	$29	$21	$188	$188
Total net gains included in changes in net assets (realized/unrealized)	1	9	—	—


Purchases	21	14	—	—

Settlements (a)	(12)	(8)	(34)	6
Ending balance, June 30	$39	$36	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$1	$9	$—	$—


IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended June 30	2021	2020	2021	2020
Beginning balance, April 1	$14	$13	$107	$188
Total net gains included in changes in net assets (realized/unrealized)	4	11	—	—


Purchases	16	11	—	—

Settlements (a)	(4)	(3)	47	6
Ending balance, June 30	$30	$32	$154	$194
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30	$4	$11	$—	$—



IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Six Months Ended June 30	2021	2020	2021	2020
Beginning balance, January 1	$26	$18	$188	$188
Total net gains (losses) included in changes in net assets (realized/unrealized)	(2)	9	—	—


Purchases	16	11	—	—

Settlements (a)	(10)	(6)	(34)	6
Ending balance, June 30	$30	$32	$154	$194
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at June 30	($2)	$9	$—	$—

Commodity Contracts - The fair value of FTR and natural gas commodity contracts categorized as Level 3 was recognized as net derivative assets as follows (in millions):


	Alliant Energy		IPL		WPL
	Excluding FTRs	FTRs	Excluding FTRs	FTRs	Excluding FTRs	FTRs
June 30, 2021	$13	$26	$13	$17	$—	$9
December 31, 2020	18	11	17	9	1	2

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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