LNT - Earnings call transcript Q2 2021 | Alliant Energy Corporation

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Operator

Good morning. And welcome to Alliant Energy’s Conference Call for Second Quarter 2021 Results. This call is being recorded for rebroadcast. At this time, all lines are in listen-only mode. I would now like to turn the call over to your host, Zach Fields, Lead Investor Relations Analyst at Alliant Energy.

Zach Fields

morning. Good to for you joining like and the all webcast the us thank would on of call I today. We appreciate your participation.

this Robert President Joining and on call Larsen, John me Chair, CEO; and CFO. Durian, and Vice Executive are President

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

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

In GAAP addition, in turn is references this available be earnings measures. non-GAAP website. which call this on the the to XX-Q, and will measures release our provided over non-GAAP between our presentation The reconciliation I’ll financial At contains and to point, John.

John Larsen

with financial needs stewardship, complete many our clean our I’ll issued This our over of start We Thank results. Thank energy is and Responsibility with to the results. Report. ESG for proudly few story solid I’ll a recap social in we another completed a address longstanding key start today. then with year’s focus results. is the the you, turn quarter quarter everyone. regulatory, environmental operational highlights update us Robert our and We without examples serve. showcases mind strong it Hello, and important financial share to end no efforts Zach. joining Corporate from on communities the I’ll of story. strong XXXX and of you governance recently customer to the

achieved off First with in our XX% XXXX. reduction by a toward emissions reduction XX% goal compared a XXXX XXXX, of in levels, clear we to path COX

XX% our a also by met well or reduce in And way our XXXX, emission SOx to by we’ve XX% XXXX. and on goals. usage water exceeded reduction ambitious NOx, We Mercury already

resources reducing aspiration our dioxide continue future. low to like cost forward, transitioning making low wind, efficient These many emissions generate net we years, them for units to footprint less options well is carbon coal older customers electricity and generation from Looking been smart into from our the efficient gas zero our our achieve natural to resources by territory, XXXX. the cost solar. choice carbon and in a serve We’ve to service and be

energy efforts XXX the from details megawatts call. affordable footprint and later receiving wind our as after will these efficient share execution, serve battery bit Public in we a our on That energy safe, expansion. toward Service in expanding announced resilient of our gas, turn and record profile for energy Robert construction profile. the building Iowa reliable, excellent expand as delivering to storage that more of as solar to backbone first to customers. our balance We’re We phase, generation includes track the in A solar projects, recently advancing solar the will successful is approval of wind, our as well natural energy project our Commission. Wisconsin new on our solar

energy You’ve toward future. heard about Energy us us our to talk designed Clean clean guide Blueprint a

efficient generation to grid. a ensure is and also energy clean, blueprint Our resilient beyond going comprehensive,

use We lines our from and the to overhead expanding of electric transitioning grid, underground our smart are adding energy technologies to storage.

and resiliency grid. reliability ensure for is customer blueprint on more generation grid, of our and to reduce distributed our Our allow renewable costs designed

Iowa’s example, latest recently and battery state in several along Decorah, Iowa. storage Gregg, at project Adam leaders local our joined and cutting with by Lieutenant the Governor were for ribbon For event we our partners

storage to our We’re future system have serve Not only they but excited dispatchable a continue solutions. support very expanding do projects system. the and can energy battery distributed as our resiliency these also enable to load, on of resources distribution

approach of resiliency commitment devastated as X derecho territory, to our the of plant in anniversary representing we Speaking one storm the serve. the customers, that excited to I as the also I’m reminded largest we employees, reasons we’re trees, our the customers Iowa our about so history. It’s recovered of year resiliency, one service of our privileged the from of company’s million

capture out grow, the storm COX I help the the lost canopy many As these Iowa focus tree so of rebuild communities. earlier across and atmosphere they’ll trees on mentioned ESG. in

advancing infrastructure. retain from will underrepresented including with groups. diverse partnerships technology form The and investing transition. are Elevate energy social One leaders companies and within the supply accelerators is founder and energy create The on nurture talent, Elevate promote diverse of talent the infrastructure to low broader aims which efforts fund or be support our focused black investing more the systems in electrification carbon in newest to including team driving that economy, Future founded and partners colleges community by a Fund, will run impact universities, decarbonisation, innovation to technology historically enabled

We’re diverse free appreciate to excited creates promising support advances about for ways a our to and partnership collective innovative the inclusive the workforce more for nationally, we a opportunities inclusiveness that opportunities efforts build and carbon and locally future. this creating

continued day, to Robert, to highlighted the take for the efforts your Robert. interest over are and who of for Energy. stronger accomplishments amazing to opportunity to I’ve do. result every short call want direct on year Alliant they share deliver turn Thank past employees over in of nothing to all call customers are today efforts that our work thank communities. each to to talented the over purpose, you and I’ll Their turn I I and the the today the that build of want our I them Before serve that the

Robert Durian

$X.XX second $X.XX announced per morning, XXXX per Thanks, everyone. XXXX. of to earnings quarter GAAP we in share compared John. Yesterday share, Good

related per increased earnings depreciation and increasing and partially by temperatures. increases rate higher our a higher used warmer XXXX. earnings utility rate offset continued as are year currently we These of towards of managing higher by our book, to for year-over-year, well margins margins our a to costs, allowance for temperature successful were very XXXX-megawatt for the we rate a Iowa program our XXXX, was the base guidance completion success from of With Our and in range favorable in lower Iowa base our XXXX per in increased in base Contributing are here first result additions in higher share, customers. expense in the construction driven half impacts tax from half wind during funds range. of of costs the and $X.XX solid fuel utility as has trending $X.XX reaffirming which now share earnings the credits expansion at upper margins to today, as lower guidance resulted

power on plan benefits higher costs to year, earlier begin last benefiting the NextEra fuel previously began of and approach XXXX. Kossuth to transaction with approved the excess our in margins Based our agreement tax flat Duane Wind This the rate Western years utility began which the purchase work Wisconsin a for with return with facility we attributable stabilization was projects a well challenges income this recovering of early. Iowa shareholders, offset year. as nuclear with in to Pipeline, rates that such million associated to made and the to energy Arnold $XXX return this keep recovery saving. with customers from In payment the our Customers pandemic, are as Farm our last terminate lower both collaboratively five we is approved unexpected COVID-XX Iowa customers, Wisconsin, related as fall. our we stakeholders Additionally, deferred as benefiting and

our The trend levels economic activity. second as to pandemic improving territories pre the returned economic of continued service quarter conditions of

second retail increase versus are economic and Our to electric positive commercial industrial positive quarter temperature was in up X% sale. in resulted from in This sign a year. impact of largely were last and changes recovery margin. quarter sales normalized second These in strength in the the a sales

how to in for the aspects That with transition our a One outstanding I Investor service our such customer our plans, employees. from conditions the focus jurisdiction. announcements energy are at ESG our communities on the equity key area affordability. in include to seen Two our is partnerships an innovations addition to of in and Many to also and territory. hope jurisdiction in about ESG development our in this of efforts Pet commitment Energy. recovery tax mechanism we’ve load the passionate weeks solar new territories, for joined our in jobs are generation new ways were far SprayCheck us story of leadership of for begins our important other Event. cleaner Wisconsin improved, retiring innovations us service and customers customer performance. consistently for economic bringing Wisconsin. away and economic our the looking through who position new levelized ESG comments our you facilities ago keep are costs Edgewater year Alliant cost uptick for new so hard we of of unique Simmons employees, of research and are brought have took few Two our you low. to work These two these and our new Both coal plant into As [ph] noteworthy Iowa in successes Food

excess customers. items customers. of a return the result be affordable four year tax of to as tax reform, continue our spend support of deferred slide rate to rates our the from lower expansion wind slide. provided for effective me federal XX%, generation please we of is which expense. both and tax note negative which our tax corporate tax and are items are these estimate Let on will our largely that our which income they the these production moment primarily XXXX And tax XXXX credits our we rate, neutral, benefits supplemental on revenues from earnings full earned Both We

year equity in shared financing track $XX million unchanged. to for to Wisconsin issue issue $XXX on common XXXX. of XXXX also approximately this plan our for up plan later DRIP Our we’re of and to plans our utility through million debt remain long-term We

Moving to initiatives. our regulatory key

agreement includes strong of in that are on with quarter review. layer settlement resulted agreement Wisconsin XX% in settlement for effective agreement decision in a details on and anticipate equity be XXXX subject coal The an this on utilizing regulatory equity, and by our approval the the and settlement we rate later terms of WPL’s on mechanism The revenue stakeholders return the year. PSCW recovery We requirements review plant. an retiring filing is for can XXXX More second to and our XX% now Edgewater pleased innovative this achieving maintaining found six. a slide collaboration the

earlier, the long track milestone of we new received is at energy of from another for constructive As of a outcome. June clean our megawatts John our in PSCW XXX Wisconsin. approval mentioned example and significant solar regulatory transition This written generation record achieving in

Authority today the in advanced advanced PSCW next year. on the up and Iowa in anticipate We a includes connecting middle approval the to us Iowa. for We file the March. joining of a Wisconsin also for new of rates year. on The plan Certificate you project. second Utility in Iowa for process of in you the our Thank We the to Energy. the coming look megawatts Board half from a quarter, of solar with and for on of equity interest for We over this ratemaking filing XXX caps of decision project next principles Alliant filing XXX the month. Later on megawatts forward to asset, principles return this for we of first cost solar from application this in many life your of anticipate the filed additional decision remaking depreciation request by

to question-and-answer facilitate I the session. ask Now, the will operator

Operator

can We first Julien the Mr. question you, Instructions] now Bank from from of America. Durian. Dumoulin-Smith [Operator Thank take

Unidentified Analyst

[ph] Gaylen your to about for a for ask the Hi. guidance taking my Thank question. about you Good It’s range. XXXX wanted I half upper just Julien. on morning. of the comments

weather takes first for you’re and of QX want how Just puts looking you’re to the effect talk X, far year the parts additionally, relative there at talk that compared just moving you. to assumption there? the how as maybe maybe about can to through of is some if July the half into XXXX, Thank tracking well? And of some and any as you built as

John Larsen

Yeah.

front. really not July for the You start bet. impact Thanks I’ll July question. on part, the any with Maybe notable the

track we So, whether will, costs, did in some first or if in you the favorable O&M half.

towards currently has half. it the us upper So tracking

things normal upper a that’s with second a noted number come why that expecting things always we’re that half those year. the we’ve tracking. There’s currently fairly into consideration, of But can of play. half in We’re the

see, So to add? anything Robert, else I’ll like you’d

Robert Durian

Yeah.

the Just positive of sales quantify half the pushing to of that $X.XX so weather sales on really year, temperature $X.XX to and are or us maybe upper so to impacts our the the first impacts about what’s half impacts, on that’s our the range. through

Unidentified Analyst

at lines, those Okay. amount, spoken you. that you about distribution I might lines. far was If about, some that, as hear as CapEx more Great. helpful. rolled speak for curious we undergrounding also when can potential one about you’ve or know Thank specific future as to in very can I That’s all? far I your some along investment the forward plan ask more if anything past efforts of as

John Larsen

would we we roll Certainly, EEI. forward to CapEx expect as Yeah. get to

along we efficient more and items more see more time and the the some that. at you’ll So year. been share at getting that and working financing typically overhead to with toward of now dividend underground others time We’ve other that that

year. as in lot plays aggressively got we we’ve towards of in and into -- are more we path later We’ll a year, specifics share towards get the later we’re future moving So a we’ll EEI more bit that quite more when that noted. about opportunity. really But share CapEx how the the the certainly I

Unidentified Analyst

there. Okay. leave Great. it much. I’ll Thank you very

John Larsen

Okay. Thank you.

Operator

the Michael Sullivan from next Wolfe take [Operator question from can now We Research. Instructions]

Michael Sullivan

Yeah. Hey. morning. Good

guys take over metrics time? question, ask potentially on you wanted us credit on, where capacity remind you up to much First -- could there -- just how stand there just and CapEx as is

Robert Durian

is Yeah. this Robert. Michael,

of So credit we’re as of think XXXX probably the you reform range you should lower customers we’re think to XXXX because timeframe. of XXXX this in lot benefits right expecting largely metrics refunding That’s we in this us back tax a over about our end now into timeframe. of metrics, when those credit sunset XXXX, we’re time scheduled towards so when improve through year to to and go a

our as positioned largely see improvements far increasing in we anything, time of see the well we’re some to the metrics if optimism cash credit and current I that because So maintain credit flow as ratings, over future.

Michael Sullivan

recorded debt? in just terms of of terms Okay. like But specifics any number like

Robert Durian

a most Yeah. mid-teens until time in into right over now like we will lot be Think even part, part that of of XXXX. the get as improving us XXXX the for XXXX, of I said, and the latter

at and over So like we’re improving I with said, forward. currently, ratings in now for we our going with us credit getting think time. mid-teens of metrics the credit feel things better But well-positioned and where environment

Michael Sullivan

doing? some inflationary on Okay. solar color in Great. Thanks. And with are that then what you any of terms also guys seeing pressures, particularly of just the you’re development

John Larsen

that The for in but lot our Yeah. we do costs we’ve increase, have those estimates, we Thanks, Michael. we’ve we of CA a better, are, John first and some seen very them of see are with costs seen our are cost. here. for Certainly least at some others commodities forward. some levelizing that a filed we to expect going projects additional solar the so low have Wisconsin

So significant very costs time. benefits competitive increases, with for course, over they’re customers of very, our even provide they and these

as commodities, our we increases flexibility of lot a well-positioned, our but as on well. I’m seen some have have peers of most in plan, So sure

Michael Sullivan

last it And prepared you but have long-term? the could reaffirming just Thanks. to Great. X% one guys quick, X% are I the remarks, in missed real

Robert Durian

EEI another November we the we in easily are, we get maybe that that’s specifically add to our protocols. year through we’ve another this X% long-term, we’ll the wasn’t year point, XXXX through refresh another our think the provide identified additional X% the into CapEx I when and to normal but that. for through over so There when for base We year process rate conference, support and regards,

Michael Sullivan

much. Awesome. so Thanks

John Larsen

Thanks, Michael.

Operator

over turn closing conference additional to concludes the This like to I’d session. today’s Mr. back for any you Fields, remark. question-and-answer or

Zach Fields

second should call. ID Callers and international. at Alliant earnings or U.S. XXXX. through available Energy’s conference Canada A for reference XXX-XXX-XXXX will concludes quarter and August PIN XX, XXXXXXX replay for XXX-XXX-XXXX This XXXX be

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

Alliant Energy (LNT) 6 Aug 212021 Q2 Earnings call transcript