Alliant Energy(LNT) - 2022 Q3 - Quarterly Report

Financial Performance - Total revenues for Alliant Energy increased to $1,135 million in Q3 2022, up 10.9% from $1,024 million in Q3 2021[20] - Operating income rose to $309 million for the three months ended September 30, 2022, compared to $289 million for the same period in 2021, reflecting a growth of 6.9%[20] - Net income attributable to Alliant Energy common shareholders was $227 million in Q3 2022, a decrease of 11.3% from $256 million in Q3 2021[20] - Earnings per share (basic and diluted) decreased to $0.90 in Q3 2022 from $1.02 in Q3 2021, representing a decline of 11.8%[20] - For the nine months ended September 30, 2022, net income was $247 million, an increase from $215 million in the same period of 2021, reflecting a growth of approximately 14.9%[42] - Total revenues for the nine months ended September 30, 2022, reached $1,381 million, up from $1,139 million in 2021, representing an increase of about 21.3%[36] - Operating income for the nine months ended September 30, 2022, was $357 million, compared to $245 million in 2021, indicating a significant increase of approximately 45.7%[36] Cash and Investments - Cash and cash equivalents increased significantly to $344 million as of September 30, 2022, compared to $39 million at the end of 2021[22] - Cash flows used for investing activities totaled $(599) million for the nine months ended September 30, 2022, compared to $(452) million in 2021, indicating increased investment activity[24] - Construction and acquisition expenditures for the nine months ended September 30, 2022, totaled $604 million, compared to $487 million in 2021, reflecting an increase of approximately 24%[42] - The company reported a net cash flow from investing activities of $(612) million for the nine months ended September 30, 2022, compared to $(510) million in 2021, indicating a higher investment outflow[42] - Alliant Energy's cash and cash equivalents increased to $344 million by September 30, 2022, compared to $24 million at the same time in 2021[125] Debt and Equity - Long-term debt increased to $7,570 million as of September 30, 2022, compared to $6,735 million at the end of 2021, reflecting a rise of 12.4%[22] - Alliant Energy's long-term debt, including current maturities, was $8.228 billion as of September 30, 2022, compared to $7.368 billion at the end of 2021[84] - Alliant Energy's total common equity increased to $6,265 million as of September 30, 2022, from $6,185 million a year earlier, reflecting a growth of 1.3%[63] - The company plans to issue up to $250 million of common stock in 2023 and expects to issue $300 million of long-term debt for both IPL and WPL by the end of 2023[125] Regulatory and Taxation - The overall effective income tax rate for WPL for the three months ended September 30, 2022, was 15%, compared to an effective tax rate of -19% in the same period of 2021[73] - The Iowa corporate income tax rate is set to decrease from 9.8% to a target of 5.5%, with a new rate of 8.4% effective January 1, 2023, resulting in a $76 million reduction in tax-related regulatory assets for Alliant Energy and IPL[74] - Alliant Energy expects cost benefits from the reduction in tax-related regulatory assets to benefit IPL's customers in the future[74] Operational Highlights - Utility electric margins for Q3 2022 were $608 million, up from $584 million in Q3 2021, while utility gas margins increased to $36 million from $32 million[117] - Electric utility revenues for the nine months ended September 30, 2022, were $2.624 billion, compared to $2.357 billion in the same period of 2021, reflecting a 11.3% increase[118] - Retail electric sales volumes decreased by 3% for Q3 2022 compared to Q3 2021, while retail gas sales volumes increased by 10%[118] - The company reported a decrease in net income for Non-utility and Parent by $21 million in Q3 2022, primarily due to higher interest expenses[117] Future Outlook - Alliant Energy anticipates an increase in earnings in 2023 due to rising revenue requirements from utility investments, including solar projects[125] - The company plans to construct and/or acquire additional renewable, battery, and natural gas resources to comply with new MISO capacity procurement methodologies, reflecting estimated capital expenditures in the "Renewables and battery storage" category[129] - Alliant Energy's projected capital expenditures for renewables and battery storage are expected to increase from $775 million in 2022 to $1.205 billion by 2024[129] Environmental and Regulatory Commitments - WPL plans to retire the Edgewater Generating Station (414 MW) by June 1, 2025, and Columbia Units 1 and 2 (595 MW) by June 1, 2026, to manage regional capacity[57] - In September 2022, WPL filed a request to construct 175 MW of battery storage, with estimated capital expenditures included in future construction plans[108] - The company has not reported any material changes in its internal control over financial reporting as of September 30, 2022[138] - There are no environmental legal proceedings to disclose for this period, as no potential monetary sanctions exceed the $1 million threshold[140]