Alliant Energy(US:LNT)2022-02-18 17:53Customer Base and Service Areas - Alliant Energy serves approximately 985,000 electric and 425,000 natural gas customers in the Midwest through its subsidiaries IPL and WPL[23]. - As of December 31, 2021, IPL provided electric service to about 500,000 customers and natural gas service to approximately 225,000 customers in Iowa[23]. - WPL supplied electric service to around 485,000 customers and natural gas service to about 200,000 customers in Wisconsin as of December 31, 2021[24]. - The total number of retail customers at the end of 2021 was 984,448, up from 976,985 in 2020, indicating a growth of 0.5%[94]. - Retail customer count at the end of 2021 was 422,864, up from 419,994 in 2020, indicating a growth of 0.4%[105]. Financial Performance - Total revenues for Alliant Energy in 2021 were $3,081 million, an increase from $2,920 million in 2020, representing a growth of 5.5%[94]. - Residential revenue increased to $1,115 million in 2021 from $1,093 million in 2020, reflecting a growth of 2.0%[94]. - Alliant Energy's net income for 2021 was $659 million, with an EPS of $2.63, compared to $614 million and an EPS of $2.47 in 2020, reflecting a year-over-year increase of 7.3% in net income and 6.5% in EPS[177]. - The Utilities and Corporate Services segment reported an income of $632 million in 2021, up $46 million from 2020, primarily due to higher earnings from IPL and WPL's increasing rate base and higher sales[178]. - Electric utility revenues rose to $3,081 million in 2021, up 5.5% from $2,920 million in 2020[179]. - Operating income for 2021 was $795 million, an increase of 7.4% from $740 million in 2020[179]. Regulatory and Compliance - Alliant Energy is subject to various regulations, including oversight by FERC and the IUB for retail utility rates and service standards[42]. - IPL must obtain a certificate from the IUB to construct or significantly alter electric generating units with a capacity of 25 MW or more[53]. - The company is required to file an Energy Efficiency Plan every five years with the IUB to achieve specified levels of energy savings[52]. - WPL must obtain a Certificate of Public Convenience and Necessity (CPCN) from the PSCW for constructing new electric generating units with a capacity of 100 MW or more[60]. - Compliance obligations associated with the Coal Combustion Residuals Rule may change due to future EPA updates and ongoing litigation[69]. Energy Generation and Sustainability - The total generating capacity of IPL and WPL combined is 4,405 MW, with a generating capacity of 2,808 MW as of December 31, 2021[144][145]. - The company has significant gas, coal, wind, and solar generation assets, with a total capacity of 1,063 MW for coal and 1,302 MW for wind[144][145]. - Alliant Energy plans to develop and acquire approximately 1,100 MW of solar generation at WPL and 400 MW at IPL, with in-service dates in 2022 and 2023[167]. - Alliant Energy's Clean Energy Blueprints aim to transition away from coal-fired generation, incorporating renewable energy and tax credits for renewable projects[163]. - WPL expects to retire 1,009 MW of coal-fired generation by the end of 2024, transitioning to renewable energy sources[189]. Risks and Challenges - The company faces risks related to cyber attacks, which could disrupt operations and lead to significant financial losses[109]. - The company faces uncertainties regarding the impact of COVID-19 on its operations and financial results, which depend on various future developments[122]. - The company is exposed to risks from terrorism and catastrophic events that could disrupt operations and adversely affect financial condition[123]. - Regulatory changes and competition in the energy industry could negatively impact the company's financial condition and operational results[126]. - Environmental regulations could impose additional costs on the company, affecting its financial condition and operational results[133]. Strategic Initiatives and Investments - Alliant Energy's strategic priorities include significant investments in cleaner energy and sustainable customer solutions[186]. - The company has forecasted capital expenditures of approximately $7 billion over the next four years, indicating a reliance on capital markets for funding[139]. - Alliant Energy anticipates an increase in depreciation and amortization expenses in 2022 due to property additions, including solar generation[186]. - The company is exploring growth opportunities in non-utility businesses that are accretive to earnings and cash flows[196]. - Alliant Energy's renewable energy rider allows for annual adjustments to electric rates for actual renewable energy costs incurred, supporting IPL's 1,000 MW of wind EGUs[163]. Workforce and Diversity - Alliant Energy's workforce includes 3,313 employees, with 54% covered by collective bargaining agreements[30]. - The company emphasizes diversity, equity, and inclusion, with approximately 40% gender diversity and 27% ethnic diversity among corporate officers[37]. Capital and Liquidity - The company maintains adequate liquidity to fulfill contractual obligations and continue planned quarterly dividend payments[170]. - Alliant Energy plans to maintain a debt-to-total capitalization ratio consistent with investment-grade credit ratings, with capital structures reviewed regularly[214]. - The company relies on strong credit ratings to access credit markets; a downgrade could lead to higher interest rates and reduced borrowing capacity[140].