LNT - Earnings call transcript Q3 2021 | Alliant Energy Corporation

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Operator

Good morning and welcome to Alliant Energy 's Conference Call for Third Quarter 2021 Results. This call is being recorded for rebroadcast. At this time, all lines are in a 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

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

Joining Robert Are Chief call. and me Chair, on and President CFO. John Executive Executive Durian, Larsen, and Vice President Officer, this

XXXX remarks last our This we as slides have Following financial during announced Energy third night range take announcing our and by time issued target. We www. that results, and investment on guidance consolidated quarter referenced the Alliant from community. John XXXX updated website and a stock to dividend available alliantenergy.com. of earnings release common be Robert, prepared Investors are as will supplemental questions page today's at the news guidance well call our release 's will

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

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

John Larsen

I'm to to consecutive range earnings growth. third year start XXth our or increased earnings and morning, we for share solid for forecasted represents Thanks, our quarter $X.XX, joining guidance the pleased everyone off, narrowed Zach. a us highlight you To X% $X.XX thank XXXX. of us of of greater which as Good results and XXXX today

of X% growth. our operations XXXX consistent our our another earnings of common in importance our dividend of We do, approved of X% in to to delivering excellent announcing increase to our guidance details $X.XX stock our and dividends And to many marking a Board share highlight turn keeping In financial yet over understand $X.XX before pleased annual more moments, a accomplishments I of I targeted returns grow also for growth, per quarter. our has with results. I'm But Directors year solid per some share. forecasted Robert customers. that the $X.XX We call commensurate the with share, the earnings X% of range third share quarter to to are will I'll for our to from few plan investors

near that communities. by We're rating a us weeks, with our several the share been stronger on have outcome and very the know we many natural solid ESG pleased deliver top and journey continue a when that direct a clear results for past proud execution several I've the We us our and been story. vision organizations serve who investment industry. how investors decisions. of to important are recognized ESG utility progress purpose; making our to build to been key and of factors rate It's Over meet customers and

top number can on results Slide Our seen performing supplemental be X.

of many highlights Report Responsibility Corporate recent Our our achievements.

X service tours that open XXXX to house solar to this only service X gardens territory is than innovative Derecho energy. In thousand will In reduction efforts, Fond the by community's site the as solar Wisconsin, our to value of project impact our continue Lac. Not expected care the trees celebrated be devastated the du windstorm Cedar the the to environment IUB public reflects end with up to XXXX it will the for is in the solar excited carbon this we plant from community XXXX. constructed to X-megawatt homes our third also such our in million garden passion of at clean We our steady and Iowa, territory. and responsive first Celebrating more have to The a Town decade. make and supply operational be spirit In we're near to first commitment clean support in quarter. next Rapids. garden. solar our a received progress, for approval It's expected for energy over our across

XXX across to or customers winter. and U.S. project The gas the County, of all need CA acquisitions, upcoming in proactive totaled that line bills approved keep are September, event them million finally, will Bear River of final of top these our areas Grant Wisconsin America is hometown our ESG. on access additional the social be Out strengthen nearly that tied Construction to row heating would to quarter, side Combating $X that those solar Wood pay I this territory. County our XX-year And welcome XX And that a the and increases, the projects We proud track by one during this hunger in gas of stay ownership below we to help started year magazine. our on food to has remiss who energy families. energy help suppliers started Creek, support part North we not also their fourth being year. while all and either efforts development compared Iowa the our or River the before the here the by share help In our economic Information This And Two Midwest are XXX demand. to nutritious Crawfish Assumed the bank utility to bills need Wisconsin. assistance partner the estimates during team, more home Selector we will with committed food acquire third shortly growth Feeding With thousands focus results donation mentioning Drive XX% over projects end customers million. those named customer the and million our Fund season. I'll and quarter, of will with with their of With and have foundation. partners, to Energy over solar in know natural assumed was natural of first of Administration development have of I'm we ownership in megawatts to to planning we and expenditures Wisconsin. the Energy our service that by event to filing from forecasted our acquired in project financial provided rise megawatts. $X is care us markets resulted Onion Hunger share XXth highlights increased Site as partners to Annual of customers meals energy time of excited with total last bringing raised a be help our the the $XXX,XXX, expect in in their support families our of from in Rock, great economic charitable expect the fundraising And will than we

next employees, investments created local, of Our EEI and to partners XXXX team Energy. about clean more our share our look forward track capital capital the new and now and Iowa across and at regional, well to in more Financial of with vision, economic investment week new our and meeting more in Thank customers for even state with than well-being on the energy you than Wisconsin. Conference jobs your flexible will Wisconsin many operational financial over Iowa I in plan, Robert. the development turn $XXX million and collaboration I in Company. Alliant long of Including to call communities. you our focus and our confidence consistent executed record results, and

Robert Durian

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

by year-over-year depreciation income revenue normalized earnings higher of is offset requirements due the as third higher base, earnings increasing Our to were expense. higher tax quarter by rate well XXXX expense temperature higher and of higher timing driven to compared partially as sales were

increased Additionally, the we our nine of non-GAAP share this quarter of per a service gas in in of $X.XX electric temperatures legacy gas retail approximately year, of adjustment guarantee per By year-to-date the recorded by XXXX, first by and in temperature XXXX, related electric in per margins quarters, impacts to $X.XX comparison, increased months approximately our In operations. the share. third a $X.XX territory retail first non-utility three and margins the through share.

our XXXX sales commercial the largely for and Iowa in sales, to of to year. quarter last and when up quarter our this third key have in temperature normalized of the minimal in year-over-year windstorm. electric compared classes to third experienced drivers The year Turning temperature industrial the due sales, X demand X.X% of first storm derecho and recovery were continued XXXX particularly pandemic better months X been this versus retail activity a than increase, customer residential our the forecasted, industrial classes. electric for normalized XXXX, territory sales higher-than-expected Through

EPS and increasing last of solar temperature The is X% on $X.XX of per expenditure in program. earnings capital X we XXXX range As share. to normalized growth on our refreshed higher details are our John night, guidance plans the mentioned capital by primarily consolidated Slides our issued shown driven investments, $X.XX key earnings of The driver X.

will contributions of approximately the over period net billion total average XXXX $X.X or equity Our XXXX $X of year. capital billion expenditures, X-year expected, an through tax per from

and be our Our to the transition focused energy resiliency capital reliability strengthening continue expenditure cleaner plans electric on of grid. and to the

for related Wisconsin current capital and to plans make address and energy and to plans on conditions project solar to for market our of megawatts continue our adjusted our progress the Iowa both materials. expenditure panels add We solar customers XXXX flexible have

these expectations be remain costs and supply clean long-term benefits will environmental as cost in includes continue our commodity plan solar energy and elements prevalent these blueprints market. for Despite projects Our increasing inflation bring solar our customers. constraints to costs, of and increasing solar key to for the projects

for customers, to renewables battery Wisconsin, This West Arnold we recently complement scale for plan that Energy of In storage. the megawatts interconnection portion existing solar retired the be will Riverside and installation and includes the and plus from important to a Center our gigawatts few be our rate-making to We years. Center, will of plan. of Iowa, site first utility filing our an of additional neighboring recently be replace of anticipated capacity of part the purchased to for the announced our in addition Duane megawatts that transmission our generation. solar will storage be the storage at solar former leveraging the megawatts XXX the located XX battery Wisconsin battery XXX over the energy next by an storage previously solar completed from plan In utilities announced X.X advanced our in we Energy

in we've included wind energy Finally, for customers. latter X-year energy additional of sources you our consolidated assist XXXX for to tax two modeling increase our plan the and rate of clean provided group, expenditures our storage consolidated in for also utility our At rates FiveX effective to renewables, our -XX% has been a we capital Wisconsin and estimate +X% and XXXX. utility. part for for cost-effective tax of portfolio opportunities including repowering effective utilities our

essentially benefits At wind credits credits in benefits tax of tax have going our maintain to lower deferred margins. tax our earnings tax customers income returned are more production tax the Thus, to production available resulting and deferred The large for forward. effective an of changes effective XXXX, and end in excess electric all our back the resulting excess We will largely the the to tax and neutral. customers excess utility, deferred higher tax rate related rate our the benefits several effective PTCs the leading Iowa by portfolio, will rate lower will tax years. to

our focus customers. highlight costs for controlling I'd on Next, our continued

costs met strategy higher us year need head as affordable. reminding our to have season the This anticipated next continued many to on reduce the we focus customers over prices, with our strategy throughout with this O&M of keep We upcoming is fuel much important into our virtually controlling few shared rates years. you that heating and winter

customer we leverage to risk on able of impact Additionally, rising rising while programs management bills. immune we the commodity not costs are prices, gas are natural to and to our mitigate coal

WPL, projects Let's finance WPL helping X.XX% financing In the move represents we rate our coupon by at for lowest renewal of customer issued The objectives. interest to XX-year debenture Wisconsin. million a bond our $XXX September, plans. affordability next support to rate green in a to issued

be from used billion Energy the plans. redemption financing XX financially debt will debt new utilities capital our to and expenditure issuing preferred proceeds over the Our the plan issuances to Enter months next includes up utilities of $X.X The long-term debt finance. and refinance at Alliant existing stock. of

our million XXXX equity plans of also DRIP through new Our include plan. common financing $XX

have we our Lastly, X. included on note of initiatives regulatory slide

filed for half The to the our are details storage rate-making on XXXX. outlined plan As solar mentioned of decision we filing earlier, We megawatts of principles of in advanced XX this week, slide this key XXX Iowa second and of for on megawatts utility. the a receive this filing X.

end second very CA the separate year, next receive many of Looking ahead, expect November on first appreciate in continued during to of updated including the session. a coal WPL to to retire EEI And receive Company meeting this and in expect look Later written and and and decision the Unit review, Conference question-and-answer the the capital XXXX. work forward recovery the We much today, I'll we on back the of Wisconsin. you our our IPL XXXX. we of the a in At to regarding half for details time, we your post our WTL plan call which forecast Investor support Operator EEI solar decision the Edgewater this the XXXX to filing decision by mechanism progress week. Factbook, to Financial cost quarter, with on the to Presentation over X construction the our innovative website plant, next turn expected through repays, facilitate expenditures, rate

Operator

Instructions] the America. we'll to take Durian. Mr. community. open [Operator first this from call of you, members time, Dumoulin-Smith will from of Thank And question Bank investment the our Julien At Company the with questions

Julien Dumoulin-Smith

to Good thanks for Look forward morning time morning. Hey, opportunities. you. of and the good the seeing many

just to little in shift I the a here are CapEx it, alluded chain driving XX CAPEX The supply you explicit. out. uncertainties that and is back perhaps know, Or of here? bit So in or you to this to inflation in things years the and the to about, especially go whether years, want of factors, solar here other are shifts I to it later there we just XX XX, you the some that know, kick can kind off, term? In near make obviously, more that's, but

John Larsen

Good morning, Julien, John here.

our as repower there bit have that I added inflation little refreshed new this you noted, additional bring CapEx. a think the bit you've we've headline one. for think an some I just got time course, but then of And and of adjustment year Robert we some on and a resources, that in with

Julien Dumoulin-Smith

Yes, I did.

But bit how You can little are not alone actually a is today? -- what I'll about that reverse here, the the I certainly mean, importantly, thinking this note, your -- impacting are if it I in say. you handle are ask conversation financing taken or of your outlook. has flow several financing about cash how more from pay a has peers you your thinking structure indirect

John Larsen

Robert, you take one? that won't

Robert Durian

sure, Julien. Yeah,

next that's in a reconciliation legislation a that tax your solar information of the five model with finance mechanism. bill. reevaluate planned in And these of we we tax out that plus projects about partner. financing roughly the But shared equity being credits some equity XX% budget of table, got structures. if tax see release CapEx over with for the we will pay we've to proposed you the do new equity continue we and financing with billion type see watching XX% solar, a will financing production now, to Right tax direct that dollars we'll the point, to the the years are in So earnings structure

for opportunity legislation. growth So the fruition those rate-base through if that could to an new for us come future be provisions

Julien Dumoulin-Smith

flow your to -- nearer say about term ready far. thus talk we to should looks like cash what benefit you're But metrics the not

John Larsen

think still and have there line some for we're some seeing, net if think Robert in targets And Julien, moving it's that, plan. we're here. John favorability what I from But I on customers appears to is No, with it the with noted, our going both result much as anything, investors. where very

think out, to I we'll about our play any more certainly we impacts that see talk plan. as

Julien Dumoulin-Smith

obviously in with last undergrounding distribution talked the later know we've up -- it. about there I Got you years. Is on in in various just respect [Indiscernible] to CapEx just the quick shift at there? points stepping follow-up. And any there, one that the

John Larsen

a get of What is Continue underground. have to advancing Working we more making and on focus lot efficient. on to continue we're sure more

So much we in look with you that's so only beginning not very know, at advancing unit each of if efficient Julien, the underground will, you there. capital,

Julien Dumoulin-Smith

it. Got

I alright will there. is in Thank their grounding you, it Under excellent guys. leave Okay.

John Larsen

Very good. Thanks, Julien.

Operator

just is for Julien Bank would a of question. like from take Dumoulin-Smith now a one, to That star And pause follow-up America. ask moment. if a we'll Well, with you

Julien Dumoulin-Smith

sorry well confirm it. to ask this jump going was in as guys. there might If question, Hey, I to

on I'm is right tax here in the commentary. Just minimum not that right? solar CapEx I that Arnold, the reconciliation, heard really plants? Duane Sorry. on that just the cash either, in sure updated if concerned considerations clarifying about you're not Is this, the facility? then in bill, And

John Larsen

Affirmative both, announced minimum we don't is impacting solar CapEx the line in as see in on tax Julien. the energy. we Yes. The recently Iowa and our

Robert Durian

Yeah, I might Julien. add,

years. right in minimum to $X book that for So now probably the seeing the would we're threshold the income now, X $XXX qualify going million we're billion, for what and the minimum over be to XX% right tax is next to few

we exempt the with of provision threshold we'll assuming think minimum So billion. that, a be that same from out the comes

Julien Dumoulin-Smith

All Got I'll get guys. right queue. in it. thanks, back

Operator

like question Hite to take from Andrew question. ask Hedge. would a Levy a you with now If Well,

Andrew Levi

to Thank doing? question, you you, ask guys. how guys a When want we

John Larsen

Andrew. Doing well,

Andrew Levi

guys the on Company good. little in on, right to back going on like to bit, I you moving a Julien's that's particularly looking now. financing answers Okay, the and [Indiscernible] did not. especially just obviously, and what's Hold taxes questions the

you plans in kind capex looking fill are your somewhat you as of are the new far forward, kind of could loaded in always As in. spread

at of beyond. added of kind you to and whether to decade, included look X.X and to big importantly, placed part kind be the or not yet out What's As it's going second they of XX then, XX XX or you more envisioned in get and CaPex, that forward.

Robert Durian

I is thinking continuation seven it's have on materials is announced we've show CapEx beyond billion a of when following roughly lot through guess, we think $X And of provided if solar, I some wind cleaner plan. now. which of guidance you as we focused This that to we're to look about storage. some be more going X-year of more we're on our today, to more XX, the over sources. be that, about A of think energy going focused opportunities, it what including Think repowering that Robert,

good those fleet some transfer legislation what sources. reconciliation to bill this too. that being to and grid help I for generation our or able we'll up of And be all supportive well provide benefits And So through customers cost intention, new also budget a that's with under ours on spend. think very that be our proposed lines program. electric continuation our of translate To cleaner our the

to we’ve lot that guys a and feel system. we it's the reliability to fact that you focus talked about in So obviously resiliency on important very

see on continuation we'll XX-gig standardization. a Spend so And undergrounding. of

latter lot going CapEx to drive that So that's half. of the a

will the right top have our best seem and as energy looking up for grid. obviously that So primary the as to cleaner far those sources are the to our categories, now customers. as indicated opportunities be capital But we those for other We're the and let will always compete. watch, before, of John two things bubbling

Andrew Levi

think you're kind opportunity quickie And transmission I you customers was side, that's all other on spending and just then area thinking customers. like we've and again, smaller But feel kind for at money the same your saving Okay but the you the given you, know, great. focused the of cost paid. which lowering for that we of have is by their been it's of I of always that's time that guys have something kind one on then transmission

you transmission part if costs, as efforts, as about reduce see the packing big far can And returns. to as reduction from your on whether what that the kind direction that maybe of they're going you're think of just you to do of I trying as as cost. far what potential what been the hearing and as support And I also or And any, Could talk maybe far base ROE. of you're adders. looking. in

John Larsen

from Maybe That's to cost transmission. overall Certainly important start for and it's just with know we connect yes. important renewables. needed Andrew,

do those for we sure that on their So certainly see remain continue focus commensurate forecast We a affordable certainly would to transmission and have for with like renewable customers. our investments to ads. making

going handicap to to be see going the So [Indiscernible] it's to a us to other come forecast I reasonable, going on transmission assume trying just weighing on than you to for into to that those occasion continue of and in think numbers, predict I'd it's it's And what's out to say to get monitor. got that to baked we'll we've I helpful lot be to going with continue our will going built. guess be

Andrew Levi

you see days. guys, a you, Thank in couple

John Larsen

Yeah, you Thank you. bet, Andrew.

Zach Fields

available This ID and Energy. for reference XXXX XXX-XXX-XXXX at or U.S. call. Callers XXX-XXX-XXXX conference for will replay November XXth, concludes be XXXXXX. should earnings Alliant XXXXXXX A Canada, --quarter's and international. through

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

Operator

that your conclude and And we conference all once participation. does for today's again, you thank

may now disconnect. You

Alliant Energy (LNT) 5 Nov 212021 Q3 Earnings call transcript