Alliant Energy(US:LNT)2025-02-21 21:46Customer Base and Service - Alliant Energy serves approximately 1,000,000 electric and 430,000 natural gas customers in the Midwest through its subsidiaries IPL and WPL[27]. - As of December 31, 2024, IPL provided electric service to approximately 500,000 customers and natural gas service to about 230,000 customers in Iowa[28]. - WPL supplied electric service to around 500,000 customers and natural gas service to approximately 200,000 customers in Wisconsin as of December 31, 2024[29]. - The total number of retail customers increased to 1,002,967 at the end of 2024, up from 995,982 in 2023, reflecting a growth of approximately 0.1%[102]. - Retail customer count for IPL increased to 503,279 in 2024, up from 500,938 in 2023, representing a growth of 0.5%[104]. - Retail customer count for WPL increased to 499,688 in 2024, up from 495,044 in 2023, representing a growth of 0.5%[104]. Financial Performance - Alliant Energy's total revenues for 2024 were $3,372 million, a slight increase from $3,345 million in 2023[102]. - Total revenues for IPL in 2024 were $1,747 million, a decrease of 0.8% from $1,761 million in 2023[104]. - Total revenues for WPL in 2024 were $1,625 million, an increase of 2.6% from $1,584 million in 2023[104]. - The residential customer segment generated $1,236 million in revenue for 2024, compared to $1,220 million in 2023[102]. - Alliant Energy's consolidated net income for 2024 was $690 million, with diluted EPS of $2.69, compared to $703 million and $2.78 in 2023[186]. - The Utilities and Corporate Services segment reported a net income of $722 million in 2024, a slight decrease from $724 million in 2023, primarily due to asset valuation charges and higher expenses[186]. Regulatory Environment - The company is subject to various regulations, including the Public Utility Holding Company Act of 2005 and the Energy Policy Act of 2005, impacting its operations and financial reporting[48][49]. - WPL is subject to regulation by the PSCW for various operational matters, including retail utility rates and construction approvals[63]. - IPL's ownership and operation of electric generating units are subject to retail utility rate regulation by the IUC[58]. - The IUC authorized a $185 million annual base rate increase for IPL's retail electric customers effective October 1, 2024, which will be partially offset by credits for the first 12 months[194]. - WPL's retail electric and gas base rates will increase by $49 million and $13 million respectively, effective January 1, 2024, with an additional $60 million increase for electric customers effective January 1, 2025[224]. Renewable Energy and Sustainability - Alliant Energy's non-utility holdings include a 50% cash equity interest in a 225 MW wind farm in Oklahoma and a 347 MW natural gas-fired facility leased to WPL through 2044[32]. - IPL and WPL currently exceed their respective renewable energy standards requirements, primarily relying on wind and solar resources[80]. - Alliant Energy plans to construct and/or acquire additional renewable and natural gas resources to meet MISO's seasonal resource adequacy requirements[90]. - The company plans to develop or acquire approximately 1,200 MW of new wind and solar generation, 1,000 MW of energy storage, and refurbish 600 MW of existing wind farms over the next five years[183]. - Alliant Energy aims to achieve net-zero GHG emissions from its utility operations by 2050, with interim goals to reduce GHG emissions by 50% by 2030[213]. Safety and Compliance - Alliant Energy's safety culture emphasizes proactive management, with a focus on behavioral safety programs and compliance with safety rules[36][37]. - The company is subject to numerous environmental laws and regulations, which could impose additional costs and impact operations if compliance is not achieved[121]. - The Pipeline and Hazardous Materials Safety Administration has updated safety requirements for gas transmission pipelines, with remediation efforts expected to be completed by July 2035[218]. Operational Challenges - The company faces risks related to supply chain disruptions that could increase costs and delay construction projects[136]. - The company has experienced significant inflation, impacting costs for labor, materials, and services, which may not be fully recoverable in rates[148]. - Demand for energy may decrease due to economic conditions and technological advances, potentially leading to increased rates for remaining customers[129]. - Cybersecurity threats pose risks to operations, potentially leading to service disruptions and financial losses if systems are compromised[132]. - The company relies on third parties for software protection against cyber attacks, increasing vulnerability if these third parties are targeted[133]. Capital Expenditures and Investments - The company has forecasted capital expenditures of approximately $11 billion over the next four years[150]. - The company has entered into conditional commitments with the U.S. Department of Energy's Loan Programs Office for loan guarantees of approximately $3 billion in aggregate[150]. - Alliant Energy expects to issue up to $25 million of common stock in 2025 and IPL anticipates issuing up to $600 million of long-term debt[201]. - Estimated capital expenditures for technology projects from 2025 to 2028 are included in the "Other" line in the construction and acquisition expenditures table[219]. Customer Benefits and Tax Impacts - Alliant Energy's retail electric and gas customers in Iowa began receiving benefits from reduced corporate income tax rates effective October 1, 2024[183]. - The effective income tax rate is expected to decrease in 2025 compared to 2024 due to additional tax credits from renewable generation and energy storage projects[204]. - The Inflation Reduction Act of 2022 allows for the sale of renewable tax credits, but the inability to sell these credits at reasonable terms could materially impact financial results[124]. Future Outlook - The company expects an increase in cash flows from operating activities due to the transfer of renewable tax credits and higher earnings from an increasing rate base[204]. - Alliant Energy anticipates a decrease in other operation and maintenance expenses in 2025 compared to 2024, largely due to restructuring activities[204]. - The company is exploring growth opportunities in its non-utility business, Travero, which aims to be accretive to earnings and cash flows[219].