Alliant Energy(US:LNT)2021-02-20 00:37Financial Data and Key Metrics Changes - Alliant Energy reported 2020 GAAP earnings of $2.47 per share, an increase from $2.33 per share in 2019, reflecting a year-over-year growth of more than 7% when excluding non-GAAP adjustments and temperature impacts [24] - The company achieved a consolidated earnings per share of $2.47, finishing near the top of its original earnings guidance range [9][24] - Non-GAAP temperature normalized earnings grew more than 7% over 2019, marking the 10th consecutive year of achieving a 5% to 7% growth objective [9] Business Line Data and Key Metrics Changes - Temperature-normalized retail electric sales declined by 2% in 2020 compared to 2019, primarily due to the impacts of the COVID-19 pandemic and the derecho storm [26] - The sales recovery in the second half of 2020 was attributed to the strength and resiliency of the economies in the states served [26] Market Data and Key Metrics Changes - Wisconsin's unemployment rate is 1% lower than the U.S. average, with population growth observed as residents from neighboring states move to Wisconsin [27] - Iowa's economy is recovering faster, with the state having the second-lowest unemployment rate in the country and strengthening grain prices due to increased foreign demand [27] Company Strategy and Development Direction - Alliant Energy aims to achieve a 50% reduction in carbon emissions by 2030, having already reduced emissions by 42% compared to 2005 levels [12][99] - The company plans to add approximately 400 megawatts of new solar energy by 2023, following a successful 1 gigawatt wind energy expansion in Iowa [14][15] - The clean energy blueprint includes plans for at least 1,000 megawatts of new solar power in Wisconsin, with ongoing projects to support community solar initiatives [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering solid returns for shareholders, with an expected 5% to 7% annual EPS growth rate through at least 2024 [28] - The company anticipates a solid path to achieving its earnings guidance for 2021, driven by investments in its core utility business [28] - Management acknowledged the challenges faced in 2020 but highlighted the company's resilience and operational success [9][22] Other Important Information - Alliant Energy's strategy includes a focus on advancing a clean energy future and improving grid resiliency through investments in technology and infrastructure [20][21] - The company has joined the Low-Carbon Resource Initiative to develop technologies for a low-carbon future [13] Q&A Session Summary Question: Can you repeat that stat about Iowa's renewable generation? - Management confirmed that Iowa is expected to achieve 50% of its generation from renewables by 2030, with a split of approximately 70% owned and 30% purchased [47][48] Question: What is the outlook for O&M expenses in 2021? - Management targets sustainable O&M reductions of approximately 3% to 5% annually, with a mix of sustainable and temporary savings identified in 2020 [49][53] Question: What are the potential rate filing outcomes in Wisconsin? - Management indicated that they are well-positioned for a rate filing and are evaluating whether it will cover one, two, or three years, with a focus on stabilizing rates [54][56] Question: Can you discuss the Columbia announcement and securitization prospects? - Management noted that they are considering the flexibility in their CapEx plan and the potential for securitization as a tool for balancing investor outcomes and customer costs [61][64] Question: How much of the carbon emissions reduction was due to the pandemic? - Management stated that while the pandemic contributed to fluctuations, the overall trajectory towards their 2030 goal remains on track [99][101]