LNT - Earnings call transcript Q3 2018 | Alliant Energy Corporation

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Operator

Thank you for holding, ladies and gentlemen, and welcome to Alliant Energy's Third Quarter 2018 Earnings Conference Call. [Operator Instructions]. Today's conference is being recorded. I would now like to turn the call over to your host, Susan Gille, Investor Relations Manager at Alliant Energy.

Susan Gille

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

announcing quarter issued Following by and John to year-to-date Pat, prepared release a updated earnings time investment news from our third earnings dividend questions guidance announced the Robert, and take Alliant last financial results, range target. night remarks common stock and the community. we We Energy's guidance will XXXX take XXXX and

release our estimated Investor supplemental slides as and annual provided during plan expenditure that our will also be total through call the XXXX current for at on referenced are available XXXX website www.alliantenergy.com. This well We CapEx today's page as capital XXXX. our of through

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

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

Patricia Kampling

to to we thank today. joining and us and I for continue am financial report pleased Thanks, solid results. operational Sue. Good morning, that deliver you

$X.XX weather quarter our are from share included basis, range benefit earnings through share On to we $X.XX Based original higher temperatures a higher Therefore, $X.XX, X% sixth details earnings the provide growth. the call. enjoyed. forecast, did per new we warmer achieved updating year. year to our than per midpoint XXXX temperature. the for $X.XX $X.XX a the on benefit year-to-date the we've from earnings than quarterly guidance will $X.XX X% -- that share our least warmer our per at row of more normal sales Third results later Robert of guidance to will mark in the on with on

let's share temperature-normalized focus Slide per to a guidance Now, which objective our to of XXXX. $X.XX earnings per is growth is range through year increase on per consistent of non-GAAP X% as earnings X% earnings $X.XX shown our long-term XXXX X% with of forecast midpoint share, The This on of is XXXX. our X.

pleased our annual to a stock per of payout Directors to XXXX XX% ratio to know $X.XX consistent share, our has dividend that increase targeted be of you'll approved Board Additionally, of earnings. our X% of with common dividend XX% targeted

We our also shown plan $X XXXX X. as to on Slide totaling capital expenditure XXXX billion issued

timing electric and current CapEx provided projects anticipated now since mostly making driven Gas to for would in that previous therefore in the plan $XXX million spend revisions in years. release, reduce of operators the expansion we I these assume XXXX you was $X.X our by notice mentioned billion, driven our spend is by we be and is the finalized that for dates walk project. in-service and will distribution customers. distribution XX-year Also, mostly a increase through Slide These in farms several capital expansion transmission of we and increase capital the improve we renewables of decrease distribution wind convenience, XXXX CapEx XXXX our $XXX delivery XXXX press is plan that your grid have the will gas the the increase in Wisconsin. investments distribution billion. systems. on For gas plan the expenditure to X/X million projects. now a wind out our to for to electric plan make also resilient plan all the at did in from point upgrade investments X. and total transmission standardize each XX-year The for the like currently CapEx gas underground voltages more of Over that will of $XX.X responsibility expand In our automation, and

by devastation that Energy Center challenging end our employees Utilities Arnold effort occurred to new term homes expiration the our And Marshalltown, after the communities damage major during flood X Iowa an damage impacted to generously and our of communities for continues process was and customers the agreement our are service by Energy also tornado still the of August Several agreement businesses with of major a the caused being September. EF-X at systems with Iowa the working and XXXX. tornadoes financial expand in many anticipation the territories month, flooding. of several filed we And mother by catastrophic This a development by for has communities our settlement closely July. an in are of our restore and pursuing. power last dozens to severe they nature and during shorten third safely many with was caused kind our are our to We years regarding taken incredible Wisconsin, economic assistance. opportunities of NextEra assist And it their and communities, speaking the in and across to time of summer Board purchase areas service date quarter. Duane suffered the with with in rebuilding the

in XXXX, with on in we XXXX, our agreement increase this annually. the buyout includes includes XXXX. our NextEra, quarter, of including wind million from customers which onetime recovery renewables will we beginning in agreement our shared With million $XXX weighted The in of return estimate make at capital. of to our up mix PPAs energy Iowa earning you NextEra save $XX payment new As average over cost XX% a X energy will approximately additional last payment Iowa. also This will wind,

We have our asset. in it plan be would regulatory since recorded included payment not capital as this a expenditure

Iowa on Board this agreement We year-end. decision the expect Utilities settlement before

want comment conclude I my midterm on the I remarks, to do elections. Before

they your are But be over work I smaller. and Evers. relationships with with will elected to in back Iowa First, hard what community phones. leaders, working now answering customers regulators look no we Governor-elect to and go Reynolds is mail officials, good watching TV forward can have and lead. Governor We that party matter and all pile we much all the also seriously, Wisconsin the assume to would recycle

my to this I to away, the those will excited also they year like here are want everything Marine loved customers pay look and We thanks Day extend to to for forward so achieving and company well. military that Energy I'm to about a far do moment today. Alliant Corps. and call policies approximately And take with our to And that to happy support ones U.S. their XXXX. and families work appreciation accomplishments birthday at away continue while the a and goals Veterans home. are a the shout-out for XXX to our we veterans special from the serve on week with veterans just tribute our powered that I'd our us

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

John Larsen

Pat. you, everyone. morning, Thank Good

combined for our and wind facilities factors The is third resources. As responsive generation warmer our market year-to-date temperatures well operated experienced gas energy. the participant to that normal been as well, demand and have Efficient I'm existing over for report a capacity the as Pat future responding pleased great fleet to generating mentioned, complement very great quarter. increased we at cycle in than XX%. gas a

progress generating station planned this on employees reduction customers. dedicated and this the XX in years our Edgewater We customer of clean at generation continue who placed unit unit was solutions. At step energy in I make this to transformation. and maintained our great carbon to reliable to energy was the Unit thank Wisconsin advancing power providing unit, a retired. opportunity our X transformation for on of operated another all Retiring focus XXX-megawatt cost, service our XXXX. This want was which end take September, was of to in generator, coal-fired nearly

efficient of With In coal-fired XXXX we service Energy A efficient is Wisconsin, over transformation the go of retired have XXX-megawatt gas to progress by highly expected our making generation renewable we're natural X, is our generation XXXX. This adding complete great XX% now end West Center. resource on XX% and Riverside energy. and of capacity. natural the of includes into key our retirement Edgewater gas part converted or approximately

X proposed retired resource power anticipate We the We energy resource first customers. the and to-date quarter help County in decision are coal wind from our also facilities replace XXX-megawatt will advancing energy the on our clean Kossuth Wisconsin These this XXXX. with renewable project. for Wisconsin a wind additions advance of

generation to investments. on Moving Iowa

in our X,XXX megawatts wind will service into generation. great The are X be to plans in progress placed phases. We new add wind making of

encourage and the be The project The has Farms XXXX. This and megawatts schedule during creation cleaner XXX-megawatt in in to projects remaining will our believe in on energy. Both first play customer meeting on expectations development for The first in -- totals while is be the XXX placed budget. Prairie phase Upland and XXX-megawatt project. expected English generation are to XXX megawatts economic be XXXX. quarter X investments and service service projects: of phase of We wind job

agencies as Iowa state air, This month, including became in site transportation to and the with service territory. Park highway X,XXX-acre to certification. near our receive options, site work the mega our rail Cedar celebrated Big has Last economic multimodal site local to continue We Industrial further Rapids, growth in encourage Iowa first and Cedar access. we located

Big based chain, Dam, Hybrid Cedar, with park to of Iowa. in Systems, Rapids, announced a services will -- developing to Iowa Along Cedar and you Energy. Ames now Ottumwa, has Big over Park in and interest Rapids, Thank I sites economic Beaver Robert. in Alliant also also call economic addition, turn our company Transit for Alliant AET, plans freight company has and Wisconsin. Cedar Industrial offering recently multitude acquire XX-acre growth Energy's has AET your management the supply also In transportation transportation Cedar logistic to logistics a nonregulated in services. is division, adjacent a

Robert Durian

Thanks, increase key higher of per temperatures additional per and for morning, the Yesterday, for electric sales third John. caused third X. by non-GAAP announced everyone. of XXXX. earnings earnings quarter quarter share drivers the were to and increasing the Slides in The and gas margins $X.XX rate we drivers electric from $X.XX Good details base. compared quarter $X.XX on share X on We variance provided warmer the higher

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

In addition, based base earnings. Alliant on performance Energy's is

from will net the of performance earnings. reserves As per higher be additional temperature performance of and a be year-to-date offset share pay portion for in pay mechanism increase a resulting expense, higher the a WPL's by Therefore, temperature earnings are the to estimated expense. result, sharing impacts, earnings impacts $X.XX

to following and WPL's reflected West in in As on in drivers electric related consolidated investments and to Energy investments growth midpoint retail key be A the rate the range were the rates utility WPL's issued in our IPL's Slide XXXX XXXX share. of Center midpoint the $X.XX to X% guidance including The IPL's rates, is Riverside the reflected next will night, electric earnings These anticipated year. mentioned, wind range non-GAAP last EPS temperature-normalized filing core approved walk XXXX we X. shown from expansion for of program. Pat per of range XXXX our early interim our of EPS guidance $X.XX business, earnings are

into electric We effect electric are quarter forecasting XXXX. interim go range IPL's XXXX of The will second guidance rate to base assumes sales X.X% compared temperature-normalized a the growth in when for sales XXXX. in

service Wisconsin utilities effective growth We XX% from of are estimate for group. X% in Slide provided territory. to modeling customers We of X the industrial tax a you this for XXXX. commercial effective our sales and and for our most and rates assist X forecasting our tax rate consolidated been XXXX has in consolidated

for We continue to focus on our controlling costs customers.

years delivering will also are from for savings Federal efficient Reform utility Federal and Tax Tax base currently cost customers we by X hold to the In deferred and new West flat Reform using to in bringing the We gas next Wisconsin, late savings Iowa including of taxes Riverside rates service in into XXXX. and both highly XXXX the our Center Wisconsin. investments, fuel Energy from excess electric our offset

made as have customers progress significant for well. We our Iowa

quarter, to shorten megawatts NextEra an service independent and which we for Duane lower rates in allowed, wind Energy of earlier to also expenses for money spend agreement XXXX in Last our new reduce purchase month, that providers issued you and, customers. our order renegotiated with the transmission FERC Arnold to recently deliveries, our beginning begin XXXX. power have agreement reducing shared transportation this saving entered customers We add PPAs, efficiency coal the Center we energy that adder with thereby lowered XXX an will

planned Lastly, offset for projects rate service, largely of as bring wind into Iowa will and base. credits tax renewables customers impacts expenses in increases fuel lower our we the production our

our which on to summarized X. Moving financing have been Slide plans,

solar issuance We IPL Green XXXX wind with Iowa. our million have key a generation for at projects September completed $XXX to financings finance in the and in Bond of

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

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

of on Slide Lastly, regulatory have included note our we initiatives XX.

Conference credits. so Reform These regulators IPL agreements and far Federal programs in both components support Also, provide the have last gas benefits with presentation decisions call retail our rate IPL and time, your turn Our issued base several over to facilitate with that the back and filed this operator which WPL expect settlement the initiatives At of post since updated question-and-answer the test will expansion as our our look appreciate the our as estimates. to forward our work DAEC in progress company year authorized capital next of this you quarter, continued on provide expenditures fact PPA week. and XXXX updated of much the meeting Tax well docket regulatory constructive year November to EEI and are us important session. financial I investor wind XXXX XXXX and through customers Finance we EEI today, XXXX review. at many billing rate construction to and support the to operational we separate the website results. Later details We very book,

Operator

[Operator Instructions].

our Merrill first from take America Dumoulin-Smith Bank will of question Lynch. Julien We from

Julien Dumoulin-Smith

a So different things. few

thickness. capital latest you've correspond Iowa come terms in needs XX% the Obviously, in a to just plan, of gas. to First, equity with back equity to success potential wanted layer got

a capital about and equity how of any plan injection at changes? electric, you needed total and needed the across layer the the kind of can If similar layer new you you had Iowa think quantify equity equity quantity

Robert Durian

Yes.

a we're indicated, the business we've that Iowa for unanimous of got portion the yes, layer. had that, they'll it's Iowa optimistic Utility settlement given it agreement settlement right pretty the Julien, XX% in now, a that gas And equity awaiting decision We're you So that in as Board on. common a settlement. approve

common we'll XXXX a of XXXX. sometime end most equity pursuing by will And quarter be case, hopefully, decision, likely early a the layer likely first or electric get for of in the filed the IPL be similar will We which with XXXX.

As basis finance the probably the additional by close points, a we additional needed equity far amount that, ratio need as it's be to that $XX to we'll to finance that. of common hundred able of equity million raised equity if couple to

Julien Dumoulin-Smith

that turning the because And businesses a have other Excellent. it. obviously around Got just the other historically contribute then to what's segment? you earnings guide, 'XX moved about talk can bit there to more you that. corporate little and I'm curious

So is is curious. I'm it just shift it a cost? there or

Robert Durian

There's probably primary drivers. two

as unit is think, probably looking is things flat put release you're guidance loss interest at we a far is, earnings guidance in I'd what $X.XX think pretty the primary to business that the is earnings range. there. X for XXXX expense. out revised $X.XX as for One point Really, that the whereas I I additional

As saw different a full interest side XXXX is in And the business in other the tax with to of first in that our XXXX. But several generally once also XXXX we all are benefits additional refinanced XXXX additional wind that speaking, year XXXX. the and expense we going that. reminder, project of businesses in pretty we performing Great related quarter to went won't and require consistent on debt nonutility some expected as Western of and we the through issuances then impact our get see

Julien Dumoulin-Smith

the final a elaborate? you XXXX you Any mean, it working I to but And not and more Got that you're for discrete-specific here was responsible pushout of change? renewable bulk of upgrade like just that Was that who's Is and interconnection seems on? it Can tied Can the policy? then renewables. commentary? the projects it project maybe more little for cap in costs. transmission or reduction of it. pushout, bit more in on a the one Excellent. -- elaborate

Robert Durian

Of is out the based wind The for various decision XXXX, Yes. was the difference That that be based in that's the on that roughly the $XX guidance. the I of amount belief different timing the the expected FERC to why of capital that we in-service dollars years able third million plans of quarter capital our expenditure so between rest on related moving the though fact just will expenditure there finalizing own. projects. vast came the majority that was that and the on their dates think that's around for in now providers reduced we've revised the of to it fund the just transmission

As megawatts in John presentation, get XXX frame, a in so got the first timing bit. CapEx his quarter XXX megawatts the little for the and sometime indicated about moved the time XXXX finalizing we've service around to Iowa into we're just that remaining expecting of in XXXX those dollars

Operator

[Operator Instructions].

from take Scotia from will Wiesel We next now our Howard question Weil. Andrew

Andrew Weisel

case might test what First, your And more look X Could in those I wanted IPL the little it that simultaneous You elaborate like? one regulatory test sort which if to one filings? hybrid be more or or bit XXXX? you What -- Will rate forecasted it included slide forecasted ask will be in combined both indicated of periods? filing? be it and can might that a on periods. historical future be in year expenses

Robert Durian

Yes.

of service forward-looking second for first it It likely would by for given a of filing think into the expansion put filing, that cases being Concurrently include XXXX. all first really the to that proposing change now. we are, X period the that the XXXX plan either first right that's end that the of projects into of the what all May. or we're years. We're of as the just and/or as wind incur filing would forward-looking XXXX. a historical relates put base year there, the Those the be right X generally to of a So that's, XXXX service expecting periods probably speaking, drivers of projects test so legislative filed of of would test test XXX programs, the quarter finalizing rate concurrently. -- of to wind in and half will through base one the of additions biggest in wind with far, that the that quarter rate think megawatts now, rules or up recent X happened Iowa, the but portions additions to the file in with of filing include the we're either XXX as be But include XXXX. And would in megawatts those still planning we're that some

Andrew Weisel

on higher but you I the CapEx Then, of similar about the Okay. we level any know last of in question equity, talked you than what to to about in as directionally, haven't as specific it with equity needs your think as CapEx? 'XX given well on beyond, given gotten related or somewhere XXXX and the the the lower being Just ratios, qualitatively, should that, answer thoughts? drop-off sort

Robert Durian

Yes.

as Really, equity the We better correct. sometime XXXX. We'll layers. end of have far information for you indicated have XXXX not any information the as your towards observations most likely are

latest are additional higher additional IPL require we also are layer a in going in some targeting on based update, but seeing the to expenditures We equity. XXXX equity capital that's CapEx

XXXX decision $XXX We also of we're XXXX. PPA Arnold expecting soon payout require have a to our fund a equity of that some buyout about in late million would on to us get drive in the would needs that that Duane

a all and most we'll are that of the sometime time. likely guys second decision with make XXXX key that those at share So on in the half that factors you

Andrew Weisel

CapEx, increases, businesses. what for distribution describe drove increases particularly some bit nice more Okay. the in XXXX? Good. Then, a you on positive Can little both those

Patricia Kampling

actually standardize sure. customers. customers automation are Yes, cost-effective at underground to out to systems these economic good Andrew. finding investments we're ways take actually really voltages, better. just that that, our put looking you serve really I'll And on systems, as and more We're serve

confident the going system, good the for the got accelerating as really evaluate a of adjusting still we really but we'll well, other we've some as forward be investments. CapEx distribution right So and plan alternatives now

Andrew Weisel

Okay.

a bunch thoughts remind on latest here, one you decisions adders I'm ROEs transmission and the asking can Then latest to good. on but us I realize sensitivity last ROEs allowed and the your Sounds FERC there? any one.

Robert Durian

take Yes. Andrew. one, that I'll

customer help customer thinking the our to is perspectives, ITC our customers on in our basis our independents we then that point cost But of decision based Iowa. impact as in service got into of the part the one jurisdictions. from reduction Obviously, FERC The transmission earnings. billings a both a ROE we've investment. perspective. the Just about with it side make from costs to will this other the are for is from adder a XX of two recent from XXXX's now, base models X.X% Right ATC earnings built adder at ATC billings

As a XXXX. reminder, not profile impact a it's significant our earnings on for

expect have material something I right a real around from built different wouldn't there's into to forecast. we've that, the what but speaking, got So it's unless is significantly generally XX.X% impact that

Patricia Kampling

we And the our new we that transmission have owner. reason challenged they was a independent don't that independents anymore now that provider the adder Andrew, Iowa consider in

to process that they FERC decide through relatively quickly. went which that, did we why have that's So

Operator

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

Susan Gille

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

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

Alliant Energy (LNT) 7 Nov 182018 Q3 Earnings call transcript