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Alliant Energy Corporation |
Corporate Headquarters |
4902 North Biltmore Lane |
Madison, WI 53718-2148 |
www.alliantenergy.com |
FOR IMMEDIATE RELEASE | Media Contact: | Scott Reigstad (608) 458-3145 | ||
Investor Relations: | Susan Gille (608) 458-3956 |
2018 | 2017 | ||||||
Utilities and Corporate Services | $0.41 | $0.37 | |||||
American Transmission Company (ATC) Holdings | 0.03 | 0.03 | |||||
Non-utility and Parent | (0.01 | ) | 0.01 | ||||
Alliant Energy Consolidated | $0.43 | $0.41 |
Q2 2018 | Q2 2017 | Variance | |||||||||
Utilities and Corporate Services: | |||||||||||
Estimated temperature impact on retail electric and gas sales | $0.06 | $— | $0.06 | ||||||||
Higher margins primarily from earning on increasing rate base | 0.04 | ||||||||||
Higher depreciation expense | (0.04 | ) | |||||||||
Higher operation and maintenance expenses (largely due to the timing of generation expenses) | (0.04 | ) | |||||||||
Other | 0.02 | ||||||||||
Total Utilities and Corporate Services | $0.04 | ||||||||||
Non-utility and Parent: | |||||||||||
Other (primarily due to the timing of income tax expense) | ($0.02 | ) | |||||||||
Total Non-utility and Parent | ($0.02 | ) |
Utilities and Corporate Services | $1.92 - $2.02 |
ATC Holdings | 0.12 - 0.14 |
Non-utility and Parent | 0.00 - 0.02 |
Alliant Energy Consolidated | $2.04 - $2.18 |
• | Ability of IPL and WPL to earn their authorized rates of return |
• | Stable economy and resulting implications on utility sales |
• | Normal temperatures for the remainder of the year in its utility service territories |
• | Cost controls |
• | Execution of IPL’s and WPL’s capital expenditure and financing plans |
• | Consolidated effective tax rate of 12% |
• | IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, earning a return on rate base additions and the recovery of costs, including fuel costs, operating costs, transmission costs, environmental compliance and remediation costs, deferred expenditures, deferred tax assets, capital expenditures, and remaining costs related to electric generating units (EGUs) that may be permanently closed, earning their authorized rates of return, and the payments to their parent of expected levels of dividends; |
• | federal and state regulatory or governmental actions, including the impact of energy, tax, financial and health care legislation, and regulatory agency orders; |
• | the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity; |
• | the impact of energy efficiency, franchise retention and customer disconnects on sales volumes and margins; |
• | the impact that price changes may have on IPL’s and WPL’s customers’ demand for electric, gas and steam services and their ability to pay their bills; |
• | the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire; |
• | the direct or indirect effects resulting from terrorist incidents, including physical attacks and cyber attacks, or responses to such incidents; |
• | the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns; |
• | employee workforce factors, including changes in key executives, ability to hire and retain employees with specialized skills, ability to create desired corporate culture, collective bargaining agreements and negotiations, work stoppages or restructurings; |
• | weather effects on results of utility operations; |
• | issues associated with environmental remediation and environmental compliance, including compliance with the Consent Decree between WPL, the U.S. Environmental Protection Agency (EPA) and the Sierra Club, the Consent Decree between IPL, the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, the Coal Combustion Residuals Rule, the Clean Power Plan, future changes in environmental laws and regulations, including the EPA’s regulations for carbon dioxide emissions reductions from new and existing fossil-fueled EGUs, and litigation associated with environmental requirements; |
• | the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, state natural resources agencies or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims; |
• | continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies; |
• | inflation and interest rates; |
• | the impact of the economy in IPL’s and WPL’s service territories and the resulting impacts on sales volumes, margins and the ability to collect unpaid bills; |
• | changes in the price of delivered natural gas, purchased electricity and coal due to shifts in supply and demand caused by market conditions and regulations; |
• | disruptions in the supply and delivery of natural gas, purchased electricity and coal; |
• | changes in the price of transmission services and the ability to recover the cost of transmission services in a timely manner; |
• | developments that adversely impact the ability to implement the strategic plan; |
• | ability to obtain regulatory approval for wind projects with acceptable conditions, to complete construction within the cost caps set by regulators and to meet all requirements to qualify for the full level of production tax credits; |
• | the direct or indirect effects resulting from breakdown or failure of equipment in the operation of electric and gas distribution systems, such as mechanical problems and explosions or fires, and compliance with electric and gas transmission and distribution safety regulations; |
• | issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, performance below expected or contracted levels of output or efficiency, operator error, employee safety, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental costs through rates; |
• | impacts that storms or natural disasters in IPL’s and WPL’s service territories may have on their operations and recovery of costs associated with restoration activities; |
• | any material post-closing adjustments related to any past asset divestitures, including the sales of IPL’s Minnesota electric and natural gas assets, and Whiting Petroleum Corporation, which could result from, among other things, indemnification agreements, warranties, parental guarantees or litigation; |
• | Alliant Energy’s ability to sustain its dividend payout ratio goal; |
• | changes to costs of providing benefits and related funding requirements of pension and OPEB plans due to the market value of the assets that fund the plans, economic conditions, financial market performance, interest rates, life expectancies and demographics; |
• | material changes in employee-related benefit and compensation costs; |
• | risks associated with operation and ownership of non-utility holdings; |
• | changes in technology that alter the channels through which customers buy or utilize Alliant Energy’s, IPL’s or WPL’s products and services; |
• | impacts on equity income from unconsolidated investments due to further potential changes to ATC LLC’s authorized return on equity; |
• | impacts of IPL’s future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures, allocation of mixed service costs and state depreciation, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods; |
• | the impacts of adjustments made to deferred tax assets and liabilities from changes in the tax laws; |
• | changes to the creditworthiness of counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters; |
• | current or future litigation, regulatory investigations, proceedings or inquiries; |
• | reputational damage from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions; |
• | the effect of accounting standards issued periodically by standard-setting bodies; |
• | the ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and |
• | factors listed in the “2018 Earnings Guidance” section of this press release. |
EPS: | Three Months | Six Months | |||||||||||||
EPS | EPS | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
IPL | $0.22 | $0.19 | $0.42 | $0.35 | |||||||||||
WPL | 0.17 | 0.17 | 0.40 | 0.37 | |||||||||||
Corporate Services | 0.02 | 0.01 | 0.04 | 0.02 | |||||||||||
Subtotal for Utilities and Corporate Services | 0.41 | 0.37 | 0.86 | 0.74 | |||||||||||
ATC Holdings | 0.03 | 0.03 | 0.06 | 0.06 | |||||||||||
Non-utility and Parent | (0.01 | ) | 0.01 | 0.04 | 0.05 | ||||||||||
Alliant Energy Consolidated | $0.43 | $0.41 | $0.96 | $0.85 |
Earnings (in millions): | Three Months | Six Months | |||||||||||||
Income (Loss) | Income (Loss) | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
IPL | $51.7 | $42.8 | $98.4 | $80.0 | |||||||||||
WPL | 39.8 | 38.1 | 93.8 | 83.6 | |||||||||||
Corporate Services | 3.3 | 3.3 | 7.0 | 6.5 | |||||||||||
Subtotal for Utilities and Corporate Services | 94.8 | 84.2 | 199.2 | 170.1 | |||||||||||
ATC Holdings | 6.7 | 6.7 | 13.0 | 13.6 | |||||||||||
Non-utility and Parent | (1.1 | ) | 3.4 | 9.1 | 9.6 | ||||||||||
Earnings from continuing operations | 100.4 | 94.3 | 221.3 | 193.3 | |||||||||||
Income from discontinued operations | — | — | — | 1.4 | |||||||||||
Alliant Energy Consolidated | $100.4 | $94.3 | $221.3 | $194.7 |
ALLIANT ENERGY CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Electric utility | $726.3 | $680.9 | $1,435.0 | $1,358.5 | |||||||||||
Gas utility | 68.6 | 62.6 | 254.2 | 216.9 | |||||||||||
Other utility | 10.7 | 11.5 | 23.9 | 23.2 | |||||||||||
Non-utility | 10.5 | 10.3 | 19.3 | 20.6 | |||||||||||
816.1 | 765.3 | 1,732.4 | 1,619.2 | ||||||||||||
Operating expenses: | |||||||||||||||
Electric production fuel and purchased power | 208.5 | 184.3 | 411.7 | 392.1 | |||||||||||
Electric transmission service | 119.7 | 117.6 | 246.1 | 242.3 | |||||||||||
Cost of gas sold | 27.5 | 28.3 | 138.7 | 120.5 | |||||||||||
Other operation and maintenance: | |||||||||||||||
Energy efficiency costs | 15.7 | 17.2 | 38.8 | 37.5 | |||||||||||
Other | 142.3 | 123.5 | 281.6 | 251.8 | |||||||||||
Depreciation and amortization | 127.0 | 115.0 | 247.4 | 222.0 | |||||||||||
Taxes other than income taxes | 24.2 | 25.7 | 51.2 | 52.1 | |||||||||||
664.9 | 611.6 | 1,415.5 | 1,318.3 | ||||||||||||
Operating income | 151.2 | 153.7 | 316.9 | 300.9 | |||||||||||
Other (income) and deductions: | |||||||||||||||
Interest expense | 61.3 | 52.8 | 120.5 | 105.1 | |||||||||||
Equity income from unconsolidated investments, net | (10.5 | ) | (11.3 | ) | (31.8 | ) | (22.8 | ) | |||||||
Allowance for funds used during construction | (18.1 | ) | (10.1 | ) | (33.0 | ) | (27.1 | ) | |||||||
Other | 2.0 | 4.3 | 4.4 | 8.5 | |||||||||||
34.7 | 35.7 | 60.1 | 63.7 | ||||||||||||
Income from continuing operations before income taxes | 116.5 | 118.0 | 256.8 | 237.2 | |||||||||||
Income taxes | 13.6 | 21.2 | 30.4 | 38.8 | |||||||||||
Income from continuing operations, net of tax | 102.9 | 96.8 | 226.4 | 198.4 | |||||||||||
Income from discontinued operations, net of tax | — | — | — | 1.4 | |||||||||||
Net income | 102.9 | 96.8 | 226.4 | 199.8 | |||||||||||
Preferred dividend requirements of IPL | 2.5 | 2.5 | 5.1 | 5.1 | |||||||||||
Net income attributable to Alliant Energy common shareowners | $100.4 | $94.3 | $221.3 | $194.7 | |||||||||||
Weighted average number of common shares outstanding (basic and diluted) | 232.0 | 229.0 | 231.7 | 228.3 | |||||||||||
Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted) | $0.43 | $0.41 | $0.96 | $0.85 | |||||||||||
Amounts attributable to Alliant Energy common shareowners: | |||||||||||||||
Income from continuing operations, net of tax | $100.4 | $94.3 | $221.3 | $193.3 | |||||||||||
Income from discontinued operations, net of tax | — | — | — | 1.4 | |||||||||||
Net income | $100.4 | $94.3 | $221.3 | $194.7 | |||||||||||
Dividends declared per common share | $0.335 | $0.315 | $0.67 | $0.63 |
ALLIANT ENERGY CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
June 30, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
ASSETS: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $5.0 | $27.9 | |||||
Other current assets | 800.9 | 877.2 | |||||
Property, plant and equipment, net | 11,695.7 | 11,234.5 | |||||
Investments | 420.5 | 396.1 | |||||
Other assets | 1,692.9 | 1,652.1 | |||||
Total assets | $14,615.0 | $14,187.8 | |||||
LIABILITIES AND EQUITY: | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $356.1 | $855.7 | |||||
Commercial paper | 82.5 | 320.2 | |||||
Other short-term borrowings | — | 95.0 | |||||
Other current liabilities | 818.8 | 878.1 | |||||
Long-term debt, net (excluding current portion) | 5,127.5 | 4,010.6 | |||||
Other liabilities | 3,679.4 | 3,646.0 | |||||
Equity: | |||||||
Alliant Energy Corporation common equity | 4,350.7 | 4,182.2 | |||||
Cumulative preferred stock of Interstate Power and Light Company | 200.0 | 200.0 | |||||
Total equity | 4,550.7 | 4,382.2 | |||||
Total liabilities and equity | $14,615.0 | $14,187.8 |
ALLIANT ENERGY CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Cash flows from (used for) operating activities: | |||||||
Cash flows from operating activities excluding accounts receivable sold to a third party | $489.9 | $460.9 | |||||
Accounts receivable sold to a third party | (554.9 | ) | (333.4 | ) | |||
Net cash flows from (used for) operating activities | (65.0 | ) | 127.5 | ||||
Cash flows used for investing activities: | |||||||
Construction and acquisition expenditures: | |||||||
Utility business | (699.6 | ) | (565.6 | ) | |||
Other | (33.7 | ) | (41.9 | ) | |||
Cash receipts on sold receivables | 571.9 | 374.5 | |||||
Other | (17.1 | ) | (18.9 | ) | |||
Net cash flows used for investing activities | (178.5 | ) | (251.9 | ) | |||
Cash flows from financing activities: | |||||||
Common stock dividends | (154.8 | ) | (143.1 | ) | |||
Proceeds from issuance of common stock, net | 100.1 | 137.3 | |||||
Proceeds from issuance of long-term debt | 1,000.0 | — | |||||
Payments to retire long-term debt | (503.0 | ) | (2.4 | ) | |||
Net change in commercial paper and other short-term borrowings | (207.7 | ) | 164.5 | ||||
Other | (13.0 | ) | (32.8 | ) | |||
Net cash flows from financing activities | 221.6 | 123.5 | |||||
Net decrease in cash, cash equivalents and restricted cash | (21.9 | ) | (0.9 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 33.9 | 13.1 | |||||
Cash, cash equivalents and restricted cash at end of period | $12.0 | $12.2 |
June 30, 2018 | June 30, 2017 | ||||||
Common shares outstanding (000s) | 233,773 | 231,062 | |||||
Book value per share | $18.61 | $17.53 | |||||
Quarterly common dividend rate per share | $0.335 | $0.315 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Utility electric sales (000s of megawatt-hours) | |||||||||||||||
Residential | 1,697 | 1,537 | 3,577 | 3,301 | |||||||||||
Commercial | 1,532 | 1,506 | 3,143 | 3,091 | |||||||||||
Industrial | 2,712 | 2,626 | 5,341 | 5,257 | |||||||||||
Industrial - co-generation customers | 230 | 267 | 446 | 480 | |||||||||||
Retail subtotal | 6,171 | 5,936 | 12,507 | 12,129 | |||||||||||
Sales for resale: | |||||||||||||||
Wholesale | 642 | 906 | 1,429 | 1,909 | |||||||||||
Bulk power and other | 1,119 | 217 | 1,453 | 265 | |||||||||||
Other | 22 | 24 | 48 | 50 | |||||||||||
Total | 7,954 | 7,083 | 15,437 | 14,353 | |||||||||||
Utility retail electric customers (at June 30) | |||||||||||||||
Residential | 813,932 | 810,419 | |||||||||||||
Commercial | 142,067 | 141,658 | |||||||||||||
Industrial | 2,607 | 2,563 | |||||||||||||
Total | 958,606 | 954,640 | |||||||||||||
Utility gas sold and transported (000s of dekatherms) | |||||||||||||||
Residential | 4,100 | 3,300 | 18,046 | 15,044 | |||||||||||
Commercial | 3,191 | 2,807 | 12,108 | 10,651 | |||||||||||
Industrial | 672 | 560 | 1,657 | 1,532 | |||||||||||
Retail subtotal | 7,963 | 6,667 | 31,811 | 27,227 | |||||||||||
Transportation / other | 20,612 | 15,954 | 44,673 | 35,062 | |||||||||||
Total | 28,575 | 22,621 | 76,484 | 62,289 | |||||||||||
Utility retail gas customers (at June 30) | |||||||||||||||
Residential | 368,075 | 366,650 | |||||||||||||
Commercial | 44,411 | 44,465 | |||||||||||||
Industrial | 361 | 373 | |||||||||||||
Total | 412,847 | 411,488 | |||||||||||||
Estimated margin increases (decreases) from impacts of temperatures (in millions) - | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Electric margins | $20 | $— | $21 | ($9 | ) | ||||||||||
Gas margins | 1 | — | 2 | (5 | ) | ||||||||||
Total temperature impact on margins | $21 | $— | $23 | ($14 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2018 | 2017 | Normal | 2018 | 2017 | Normal | ||||||||||||
Heating degree days (HDDs) (a) | |||||||||||||||||
Cedar Rapids, Iowa (IPL) | 740 | 624 | 674 | 4,164 | 3,543 | 4,076 | |||||||||||
Madison, Wisconsin (WPL) | 937 | 757 | 813 | 4,523 | 3,887 | 4,308 | |||||||||||
Cooling degree days (CDDs) (a) | |||||||||||||||||
Cedar Rapids, Iowa (IPL) | 417 | 244 | 228 | 417 | 244 | 230 | |||||||||||
Madison, Wisconsin (WPL) | 250 | 172 | 180 | 250 | 172 | 182 |
(a) | HDDs and CDDs are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDDs and CDDs. |
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