LNT - Earnings call transcript Q2 2018 | Alliant Energy Corporation

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Operator

Thank you for holding, ladies and gentlemen, and welcome to Alliant Energy's Second Quarter 2018 Earnings Conference Call. At this time, all lines are in a listen-only mode. Today's conference call is being recorded. I would now like to turn the call over to your host, Susan Gille, Manager of Investor Relations at Alliant Energy.

Susan Gille

Good morning. thank webcast you for to and the like the on joining would all on of call I us today. participation. your appreciate We With senior and Pat Officer; are as well President, me and members Treasurer here Executive of other Chief the CFO Kampling, and John team. Durian, Robert Chairman President; as Senior management Vice Larsen, today

Alliant community. prepared Energy's last take questions to remarks have will time release results financial by Following quarter news the second Pat, We investment and we night a John announcing and Robert, issued from reaffirmed well November our the of supplemental consolidated issued referenced available guidance will XXXX are during page Investor Web that earnings site XXXX. on in This today's the call at release as www.alliantenergy.com. slides be as

different. release matters be with and materially among to on disclaim Alliant Exchange we need cause that to the our update forward-looking we Commission. actual last forward-looking any the statements. statements. answers our risks and issued Energy's filings to begin, this and questions Securities these are remind We make include others, in your forward-looking in could results discussed to night statements These obligation I remarks you Those risks to include, call subject Before press

on the non-GAAP I'll Web In in point, GAAP available to reconciliation measures XX-Q, site addition, our Form this financial are at over At turn quarterly references this our presentation between Pat. contains is to which provided A www.alliantenergy.com. measures. non-GAAP and call report on

Pat Kampling

on will After priorities. a of you of events. on schedule. strategic my our and And quarter going give headlines highlights to financial and results recent details Thanks the provide of John key regulatory then, Lu, will our first and discuss then you good for Robert our updates remarks joining I'm provide thank several us. morning and the few

So, for headlines. the

another weather. we of from performance benefits quarter including First, achieved solid

the half towards reaffirming range results, are range. Second, and our trending top our are on we the we of year-to-date guidance earnings based

Third, up fourth, for of XXXX, which well. but plans issuing equity. we And are announced things busy going includes million here, $XXX common is to really our financing new everything

homes recent Let tore me businesses XX, through many most Needless a the that with center no thankful homes true was to without to to one downtown residents and injured. XX,XXX killed seriously gas were It Thursday, now catastrophic July district damaged damaged. station generating speak or business and service. an of events. Marshalltown miracle say operations around not and this causing that AF-X training and On Marshalltown, some and businesses damage were Iowa was We it. tornado electric so that town's our center

week. local electric own XX,XXX employees appreciate dedication customers over So of and and greatly especially efforts. immediately XXX to under to in their our wires released a our poles, talented strove and with restoration of they of restored sheer support begin XXXX patience the our the power been The as our But, teams, their replace crews has miles homes of determination are dealing were many We they damage. able customers tremendous.

it this on as at Iowa. year the last with as a for additional million It save renewables Energy pass XXXX in our X. on emissions impact $XX translates the Energy material flow customers to four have requesting these Starting Utilities our are wind at one-time NextEra years that annually was total wind, bill. and customers, our average important of can with make estimate to of of power a Details our $XX in approximately in includes by reduction expiration The on customers NextEra, Center to mix another. significant. our various free savings which a recover We up over back Duane $XXX to to The XXXX. we and us with request cost end of to found XX% new help quarter NextEra. docket on energy our are the working us capital. one agencies term we results. third did but Slide the five this not increasing with be our we Arnold customers payment PPAs the will savings the purchase allows XXXX. they for agreement agreement not date a in initiate weighted the buyout will includes to the shorten residential Including Iowa replace possible. of Iowa Alliant our Iowa to closely of area soon will efforts with payment And typical the agreement announced Marshalltown Energy earning restoration cost The million in week, agreement per also This only new customers' will from return Board energy a resource recovery the

investors. needs. achievements XXXX. Web sustainable forecast the resource for shows reaffirms sustainability community see and for far We by generation for by about the item so with alignment XXXX on United our made plan commitment be our encourage we've yesterday, and based does will and want energy facilities to of Nations better Sustainable reduction progress our increase manner to note mix include, site. customers, XXXX, our a this launched nearly XXXX our tomorrow our our expect by few our our economical corporate agreement approval This And XX% is report not this review items XX% in to a Goals. also excited report on our XXXX key I Development provide to includes and already year. emissions renewables total report year-end our mention I planning the energy in I'm carbon A coal third of you before remaining levels our XXXX. retiring by our a last And a resource creating that and we

to earnings Riverside in target, at dividend cost XXXX. in projects the to company large to X% guidance a who a cleaner will energy for sustainable Energy time of Advancing retirements, energy, between additional Our several West company payout team additional to through customers. our growth investment, priorities. very wind the plant operational fossil that, key impact XX% substantial updates a will manner. the we construction Center common strategic to and strike manage capital safe and and financial continue on focus Completing on in and provide our investments on will over and balance on X% and continue completion our and I call wind to will discipline John, and deliver With turn the budget XX% below to goals following of or

John Larsen

Good Thanks everyone. morning Pat.

our reflect for than warmer our I'm our to temperatures. June, to In this month XX% quarter plants customer of increased gas increased due earnings Marshalltown very increased higher XXXX. Our quarter than energy costs, demand mind. lowers quarter, generating pleased operated cost to due top above generation, to was of is experienced Riverside responding the second Higher the and the capacity the energy. for generated results XX%. fleet controlling well normal always And that factors margins report fuel natural customer

are Utilities materials wind you XXXX for approved Iowa request the Not generation customers as we sourcing this As only partnering of we to despite megawatts Iowa quarter, our communities last our with and wind are we locally construct customers. shared well. with Board

the West West a skilled end efficient onsite All in customers renewable holds We the wind anticipate put to facility have farm first sites the the intend to Farm construction is In we us in equipment area from our to is facility The Wisconsin for the site service and this and safely May for for settlement XXXX. in wind of well. and of tax turbine in workers be by through Riverside of in base Kossuth have the over in have XXXX. site allow generation be highly main Energy megawatt credits, our Iowa, power Public will PSCW placed County, natural are which the cost wind the Illinois. will constructing we and of This are electric gas cycle settlement the in County, strong remaining wind over We XXX At solid progress in progressing a rate Dickenson by our have XXXX. are on-time, service placed Also provide placed second Wisconsin are into we on-budget Commission filed by to decision the towards and and into resources. of XXXX XXXX facility. The underway. towers Settlement wind, delivered expected megawatts and retail Prairie in in provide the additional with your service construction plan and the to a megawatt for constructed which our and plan started gas XX% of selected two This Beloit, service Iowa announced benefits counties rates our Newton, was X. first yesterday. is approved combined XXX% XXX Riverside pieces Farms XXXX. fabricated XXX construction WPL blades Clinton, approved farm of major deliveries production The quarter on addition been are Wisconsin XXXX. with complete. in At customer be will Service English XXXX a Center XXX Wind which we Clay finalized energy Upland to in XXX Commission for It's this qualifying provided megawatts flat Wisconsin. expected site, an Slide The of We We're Wisconsin review Newton, build customers. fourth consistently anticipate Iowa. year. Poweshiek these making and rate on generating details for powers quarter as

as rate you to and our facility our ability Alliant customers. your of Robert. tax a benefits in costs turn over controlling now to operational Energy. hold along reform I fuel with customer into service Our to the Thank the West bringing returning while Riverside result will flat from call success at interest federal for base

Robert Durian

compared John. in announced the second May for quarter by second was per June upper morning normal residential Thanks XXXX Midwest. commercial the XXXX. warmer to $X.XX the key temperatures $X.XX for in Good increase electric and customers sales $X.XX than Yesterday of and share to driver earnings quarter everyone. in caused higher The of share we

by X. expenses pleased the industrial the offset for our These Additionally, at details earnings incurred the the were quarter and facilities cost of strength our partially increases variance by of the income in We which generating quarter. X X% grew and on timing second we additional year-over-year. tax quarter drivers provided second timing Slide of sales on sales in are the

impacts temperature half by sharing earnings be WPL's approximately mechanism territory WPL our have the resulting Energy's retail of the to temperatures XXXX, at a gas line first and Wisconsin currently Due $X.XX we of electric higher our customers. majority margins to Alliant share. from increased For back in will margins given service per expect

writers. six territory assist share. top As this reform guidance earnings a impacts tax temperatures from year, year provided our year-to-date margins and for half range. net tax increased full normal in rates our share Iowa effective earnings year's $X.XX to increase earnings, of including is for estimate Five, be year the assuming utilities, the two have a impacts, We a quarter earnings the WPL modeling result, the and in we solid of consolidated you of in to our Alliant another the year in for of sharing to effective range per has XX% rate mechanism Due the the XXXX and our temperature per reaffirmed and to XXXX. margins. With remainder our of of trending forecast the tax the state benefit estimated earnings Energy share for temperatures full guidance half tax service a $X.XX reserve towards of of $X.XX been per first are federal

our plans, we according XXXX on to Moving summarized are progressing our have to plan. X; which Slide financing financings

of reduce maturing second for proceeds planned quarter, $X XXXX issuance issuances of July, Finance XXXX. the to and of borrowing. $XXX debt Energy completed the term Alliant used we of we paper and have commercial equity common X/Xrds to in the retire new million approximately loans During billion completed Through of million the at $XXX

to Lastly, debt up program. IPO at fund later used we and issue expansion maturing still being WPL's of plan to $XXX debt this the to year remainder million wind with long-term million refinance $XXX to

million includes to at to up equity the of regulatory and with to of up consistent equity financing XXXX, IPO our $XXX structures $XXX of our issuing tax maintaining objective our of expenditure financing WPL's IPL. customers, the is robust by two As utilities, percentage increase plan XXXX new long-term million debt up at utilities most reform common regulatory in support plan at common $XXX XXXX This decisions debt benefits on and plans million capital we XXXX driven and recently the the to for by long-term approved our decisions. to These delivering capital our plans PSCW. look recent

plans We conditions reassessed. are will needs warrant financing market adjust the and external if financing our as

Lastly, for X. note we have XXXX included regulatory on of our dockets Slide

the to and session. with this your to Our many near-term year provide the wind issued months. operator decisions operational program I'll customers you our filings constructive with the of company appreciate the regulators These our to continued benefits and At to so time, We expansion XXXX much are forward have this back several meeting financial us that components important authorized very question-and-answer our support and several of tax facilitate results. recent turn support over regulatory decisions far over of our call next regulatory look and billing credits. reform

Operator

you, Mr. with Our company Durian. Instructions] the Alliant Bank management Merrill hour investment call this community. the question time, can morning's within take for Nicholas timeframe first as call. from questions the [Operator comes At will of Energy's many of Campanella one up questions they open this members America from will Thank the to as Lynch.

Nicholas Campanella

morning. good Hey,

Pat Kampling

Good morning, Nick.

Robert Durian

Nick. morning, Good

Nicholas Campanella

Hey.

in consolidated curious, just cap of was million funded of puts equity an 'XX give I where terms debt So, $XXX structure can you us you the for or consolidated your metrics? of idea the

Robert Durian

the what million sure. level background I appreciate that the at a little question. the and bit equity a to give to And little $XXX drove maybe precursor. is of 'XX Yes, as just

So equity really three new XXXX. the there's for first in drivers off, key

wind the First is half expansion second Wisconsin. the gas over the XXXX Riverside wind capital couple West solidifies that next for IEB facilities finance the the that plans expenditures. robust equity deal IPL's years at approving and natural megawatt by program of recent The in led expenditure the XXXX of Iowa program to wind our expansion decision

approved for also XXXX the to reform plans PSCW capital not up quarter finance been our WPL these at third, on We've we've for a second financing plan. Second, the adjusted common structure credits at in XXXX XXXX reflects state capital by equity by and to have customers the with authorizing regulatory for that lower 'XX. equity our cash equity the equity equity higher the plans XXXX yesterday. commissions new beginning XXXX flows these flows, benefits. a catch in XXXX tax WPL and adjust equity the new the the percentage XXXX equity our to And structure plan at based impacted components our in but percentage The that achieve federal issue of lower XXXX was two decisions higher cash decided and billing by will instead WPL

in we're target mid-teens to the in to 'XX, So the at we it. equity to new equity with XX% we're the the within I would probably FFO level. ratio debt, characterize that for how And that going still XX% be consolidated common is

Nicholas Campanella

Got it.

wind for the minimal or assume rate more probably [ph] Is of your kind program scaling needs how normal run in-service of safe projects? kind here [ex-big] ongoing characterize capital then a And it itself you with in post of the kind dates. to the equity Okay. onward XXXX capital of would down

Robert Durian

Yes.

to you give we're that plans So expenditure November as the the road, we XXXX beyond guys when and we a you told our probably at look we'll re-evaluating capital on meeting. better get

I determined And flux. because be still say would so yet in it's to

likely probably that or pursuing XXXX decision won't We XXXX in layers sometime be timeframe. our regulatory and capital Iowa also equity in structure until are higher most the

still XXXX need And that decided regulators. be tax the our determined. yet reform still that's by have beyond finally, to decisions to benefits regarding So we be

need factors be into we're three all of equity likely for so determined And do issuances. future to or those factored will to what going

more So that time you not information sort XXXX. give and some need into year to give little this more you us sometime a through if later to we'll

Nicholas Campanella

Awesome.

that given proceedings about here. coming Iowa do there looking on the Iowa? for think legislation question Just the backward one new you test forward versus going last to be rate How are up year

Robert Durian

Yes.

we're in maybe for That'll year. end next working of take through test But passed the early the will this year into future legislation procedures the on probably still period. May. how through work the has a filings So been it

of better we're will date that the in filing to probably regulatory XXXX targeting. have next quarter we first we when which get a So wind that targeting of sometime to right the now sense probably closer we're second round early with be expansions of

Nicholas Campanella

me. Thank much. so for That's it you

Robert Durian

Nick. Thanks

Operator

And we'll question Andrew take next our Weisel with Weil. Howard from Scotia

Andrew Weisel

Good you. everybody. Thank morning

Pat Kampling

Andrew. morning, Good

Robert Durian

morning. Good

Andrew Weisel

a least question the or planned through decade, was you quick pretty relative previously term all at that Firs, a CapEx ambitious the detail in be sustainability some going is the near appreciate here. and the report, outlook see The next with changes corporate consistent probably plan to to might through we that targets XXXX?

Pat Kampling

good a that's question. No,

Now what's consistent statements. out the of couple for strategic our up really years, our also last plan with our we firmed current that's capital just there plan been and

Andrew Weisel

figured. Okay, That's what I great.

question on potential [PTC] about to get for Iowa to advanced believe do the additional legislation was upgrades I get you rate right? is [ph]. wind, that part of assets Next the how the think making existing to new

John Larsen

perhaps Yes, us. that we are the Certainly the This sorted for still passed I out. road in rates. part being for in work But some that's John. May really a details up of law that opportunity is another that's wind back down do think. was see still the that But progress

Andrew Weisel

there might more like for following that the where of in years? for down to things time or something you'd the a scaled the few one get to scenario able be qualify Is be XXX%

John Larsen

I think the latter.

Andrew Weisel

solar, plan on for out maybe on been some looking that develop of you obviously, one Then of solar your wind, Okay, jointly much if focused the Any work didn't as your guys to more sort one you you part why and have solar. on forward? customers and thoughts may view how got going are neighbors I it. last of

Pat Kampling

great such to wind. Sure, had with first. wind. on just We're Andrew. opportunity good know that a We do how We at wind; focused we

several do top I us. the for There's a R&D was -- So for We our territory picture definitely different declines. investor something our of slightly as have solar that to consider service especially solar. more that's there's a priority. the solar evaluating and in we're that our in role all already still deck, technology of cost we're They're them as everybody needs farms but

Andrew Weisel

Appreciate the details.

Pat Kampling

Thanks are time. questions further Ms. no there Andrew. at this And Gille,

Susan Gille

call. replay XXXX be for August will concludes XXX-XXX-XXXX through questions, should With no Canada ID more and A this international. XXX-XXX-XXXX conference available U.S. Callers PIN our reference XXXX. XXX-XXXX and XX, at for or

with an of archive of the Web conference free the support be continued later section addition, on Energy of you site for follow-up Thank a the prepared your script the the contact questions. on call today. me made Investors call remarks of any and will and In available to feel Alliant company's

Operator

And today's conference. your this for does thank conclude participation. We you

Alliant Energy (LNT) 3 Aug 182018 Q2 Earnings call transcript