Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to Alliant Energy Conference Call for First Quarter 2023 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, Susan Gille, Investor Relations Manager 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

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

Robert, John take the remarks community. have from will and prepared time we Following investment by to questions

during available a issued financial night presentation This the as release last will results. at of an that Energy's our earnings are Alliant www.alliantenergy.com. We announcing release today's be page Investor referenced well on news XXXX first call as website quarter

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

call point, to turn the over this At John. I'll

John Larsen

Thank XXXX, the present employees one I anniversary. performing and nation. we as build Alliant today most IES to and for past that consistent thank unified have Energy. continue you, Company know officially to in Light energy company Energy's & acknowledge Alliant like recently Utilities, our recognize XX, and call, together three the the as all one came we Power built celebrated predecessor of On want Interstate I'd companies to who and To us. April Susan. XXth Hello, Power joining everyone, begin you companies, Wisconsin

to customers stability serve. unwavering and dedication customers reliably Alliant connection our to strengthen safely provide investors proudly is communities growth our from in of has that the Energy while team, delivered employees we our work to This expect. Because to with the addition energy and this and continuing

off of account record this achieved to and track thesis will XXXX warmer-than-expected into later of which strong QX a expenses, investment Despite long consistent is remains. on timing start, our tax execution, we results taking our plan. continue we year, As reverse solid and weather

We on committed X% growth earnings long-term annual $X.XX to we delivering target. to our have to guidance remain our and X% $X.XX, reaffirmed of

a productive demonstrate to will It has been motion. start that in year. highlight I and strategy, busy the updates purpose our several

energy to in reliable invest We priority. and in toward Investing top a continuing more future. are reliable sustainable a mix advance a diverse energy is and

our reliability review time, building more foundation the we of filed the are Resilience At are recently in a rate and same energy Wisconsin. resilient network.

to continue customers Our see prudent portfolio. benefits energy investments in within our the our of diversifying resources

customers. to our supply to are help and to our diverse volatility reduce mix reliable, and resources price deliver We competitive energy value of exposure committed that energy a to creating making

example An storage which back our of have These investments and is to no investments. battery renewable fuel tax costs credits, flow and that customers. generate

to have recently ongoing our and well initiatives for beyond. and positioned continue accelerate pressures, to XXXX and us work our We XXXX in through spend inflationary completed manage strategic financing mitigate

reliable have flexible, events. extreme a of Energy and results Clean resilient our demonstrated a key Our build Blueprint, recent weather energy us proactive helped efforts to the navigate and grid, successfully strong element

our electric lines on continued distribution underground. is example focus One placing

this in We have our made distribution of significant over lines underground. progress already effort with X/X

in approximately our XX% X of XX% were outage XXXX, than in hours. no and customers less experienced restored And events power of outages

renewable area portfolio. of progress Another key is energy our

XXXX. to of are in by and our planned XXX have the to be solar panels first and half service solar on We of put solar Wisconsin, remaining Wisconsin, in projects within approximately of our sites for of all X.X continue gigawatts megawatts control owner-operator in the utility-scale largest we the track we utility-scale solar

we're ISI's progress proud this we execute clean on go the project of to great as all we're while awarded environmental ESG our Envision the beyond of project's these our Award making for investments Platinum and A on We energy industry-leading aspects economically. is investments. community project And of focus in our and thrive plan. This our efforts protections, contributions all blueprint, example highlighting sustainability, helping our Wood Solar Wisconsin. recently the equity, was social County well-being the while renewable

tenets purpose. our This Blueprint of recognition and showcases Energy the our Clean

regulatory Robert proceedings In share Iowa, solar storage status of customers they our and advance will clean the note provide to the our delivering to we projects energy on remain advancing that communities. and will benefits committed to but projects. we're continuing I'll and on more the

Lansing transition soon we our of part in coal will Iowa, our As facility. be closing

decades, with safe the communities providing been dedicated and at Generating employees Lansing and have customers our For energy. reliable Station

transition cleaner for mix, towards opportunities we we caring energy jobs economic from coal we serve. As creating employees, new and a to communities our are development the bringing

Ultimately, clean energy the step for of the closing advancing is in our facility blueprint. long-term control customers another helps costs and

mention One I'll area technology. last is

power made that to in will excited grid will and advancements and this customer are quickly restore customers, efficiencies. customer enable to have the improve respond improve customer satisfaction employee and and service savings believe enhance and We to and us technologies more We provide our cost experience.

always hard I'm of other the work hard I'll at end I to where with I outset. organizations. their our the our my remarks began happy employees. see by work recognized mentioned employees

Equality Alliant named year us, our a that thank companies. XXX employees dedicated the have trustworthy our these And row, to nearly the serving communities. Gender the on fifth of legacy you special recognition Great our to the who list of work like and their customers and part last Energy Index. result America's made XX are Newsweek's I'd years fortunate Bloomberg spend to we've to sustained been to in employees most your employees and the we for contributions before success. For come and build for of again, of of once a We've were consistent

deliver ability To Alliant consistent reinforce results within has our to continued and performer I where industry. Energy top we our be want a enabled of to execution our are the to in year-over-year strategy that XXXX, reiterate

our look solid company. year and financial to We interest forward we continued performance, another and in appreciate of operational your

Robert. turn now call to over will the I

Robert Durian

were during from interest will John. Good quarter quarter-over-quarter Wisconsin earnings per by expense due These to this requirements rates the warmer resulting year, offset Power this the increasing higher first Thanks, used for investments. tax of from Light's & share. partially year. last and increasing in Higher reverse variances and GAAP construction additional financings retail of timing income of impacts electric quarter. that items XXXX everyone. funds and temperatures The Yesterday, revenue than later allowance $X.XX capital lower were earnings gas of interest for resulting we EPS primary the announced expense drivers sales and morning,

can is For X% the per guidance midpoint increase earnings to $X.XX Details X. a XXXX modeling adjusted of full our full To per in assist be this over year quarterly guidance year, we are drivers. reaffirming The few provide quarterly found you XXXX XXXX of that on to earnings on year, quarter drivers earnings our range context our share. wanted of additional share. earnings the to earnings I Slide a and $X.XX some

efforts. are XXXX. the in occur of savings most half we the anticipate transformation we same our spend in not the such of second cost in of We half of half anticipating for XXXX. accelerated First, will our continuing that of Thus, the XXXX second pressures, do second year-over-year efforts heightened in anticipation inflationary O&M

anticipate quarter-over-quarter at through the highest we variances variances expense proceed year. first as quarter in level their the taper were interest Second, to expected quarter-over-quarter to with related we the

financings quarterly XXXX of cadence impact is our based interest versus in This expense XXXX. on the

earnings have full based on on year quarter each recorded causes quarter-over-quarter, expenses not it the tax each but amounts generated and tax impact fluctuations rate tax an the earnings. full income year third, our of in will And of annual This effective an quarter. estimated expenses proportion

maturity executed of already projects in to a financing large plan in our fund our to million investments XXXX $XXX XXXX. We've refinancing portion and support of renewable debt

million of environment. notes In March, Energy in convertible These financing maturing attractive convertible XXXX. interest opportunity us current the issued Alliant rate notes senior offered given an X.XXX% $XXX

the XXXX. solar of maturing development $XXX offering component March, WPL Green units, will also issued of of for acquisition energy and proceeds X.XXX% a from generating key are clean blueprint. Bonds In be this our million which in used The

two interest produce the better-than-expected these quarter an proactive actions our all in first will to taken increases relative swap reduce have and executed with interest and help We interest These rate significantly XXXX. higher to rate steps exposure of to issuances debt interest insulate rates expense plan. from us annual

proceeds of in of of interests million. our The were expected quarter. to working this to the natural approximately West provide and And are plans West $XXX WEC Earlier megawatts West this on we closing of to we closed a our on MG&E. towards of sale year, the of also are later these gas combined included XX XXX megawatts Riverside partial facility Riverside Riverside in Energy sale sales

the renewable this We're received from inflation making under for transferring year after to Reduction also treasury the plans later start with XXXX on such Act. credits requirements we transfers progress guidance tax the

seen some reduce future asset have and of in needs. transferring our fund investments from and will these interest We these the transfers credits, proceeds future tax our strong utility financing help

through DRIP to include of to common in common The plans to $XXX that $XX to our up our long-term of remaining million equity ATM plans raise issue million raise expect up equity financings is we program. addition for $XXX of debt under new to the XXXX and to at-the-market The million IPO plan.

the capital is structures on plans, expenditure included supports plan key our capital consistent objective Slide their X. two robust The maintain at our with regulatory for XXXX most financing and driven initiatives utilities, to regulatory by We've decisions. recent XXXX our

Last investments and XXXX. rate includes X.X customer several filing in Wisconsin. sustainability state storage of XXXX. megawatts and These the by and electric an years recovery rates include of investments top competitive in The energy for mind. by and week, keeping gas while and resiliency nearly Starting of support test generation gigawatts that value mid-XXXX WPL XXXX XXX solar filed review of

enhance of projects increase gas is also efficiency. and assets with the to exploring opportunities its to natural new existing output WPL value

underground in Finally, resiliency we and while investing to continue expenses. plan enhance O&M system standardizing distribution reducing to voltage

review discovery a process found and including be decision expected in filing More Slides steps a terms and X the the X. audit included later details fall can the phase rate hearing on final in requested PSCW anticipated this this PSCW and on a by key Next from the early in review, year. staff interveners, and with rate

requesting quarter a is recovery field filing XXXX of serve the by the energy currently in fuel anticipates of to Additionally filing additional customers. costs million WPL its year. Wisconsin, This PSCW cost due $XXX this this third WPL submitted field to of XXXX in from WPL future in filing. its decision reconciliation higher reconciliation incurred recently on

in higher the have in reductions significant customers fuel during help natural by X gas of months our experienced While which XXXX driven we lower future. in elevated first fuel for utilities prices the commodity will prices, experienced our costs costs XXXX, Wisconsin

started to And already in our cost through fuel the customers monthly Iowa, we benefits have tariff. on these passing cost lower fuel

capacity peaking Wisconsin, forward of applications some for improvements we natural are Looking in units. approval preparing and request for our efficiency gas-fired to

we decision XXXX part XXX the in and Also, awaiting are are the expenditure third capital of on storage filed recently of and XXXX. megawatts of proposed projects. announced proposed battery rate revenue of the These WPL's quarter XXXX review the projects for part periods plan were PSCW requirement the test

Moving storage. on filed of approximately XX In to we battery for rate jurisdiction. Iowa of making solar late megawatts advanced generation XXX for and principles our XXXX, megawatts

meet taking of to this This is solutions available our and Utilities further evidence requested to prudent testimony represent customers' evidence options and action compared in Board additional Iowa market. testimony cost-effective capacity, as that proceeding. in January demonstrated the alternative this projects to we need IPL for and In provided its year, the

XXX Creston megawatts are Last to we XXX Arnold advance to IUB the for principles solar frame-making IUB and self-build build-transfer judicial Weaver week, battery Duane a location. proceeding of approved projects of issue review for Court the the XX principles of decision the requesting advanced storage And at and with megawatts solar projects. District projects the enable ratemaking megawatts

remain to confident are these including committed executing these reliability and and projects. resiliency provide projects We will customer benefits

new Martz Strand look Helen. forward we appointments. Sarah getting and and to engage in and know calendar, members two new Eric Summer regulatory congratulate Iowa, in Board them the the active an with commissioner We to on Wisconsin, their With

many of We your with continued the meeting in support our appreciate company coming months. look of and you forward to

make Relations our As always, website. we on materials will our Investor available

back to the turn I'll call facilitate time, to this the over session. At operator question-and-answer the

Operator

comes from Your America. Bank with go Please question ahead. Instructions] first of Dariusz [Operator Lozny

Dariusz Lozny

that order the comment projects process Just pick advanced about included in that wanted I making in maybe to up in the Iowa. last incentive, past. on noticed included the ROE which that Robert Duane was no been had ratemaking Arnold

guys you you be for in got future projects comment Just the on given of on Can future proposing? ROE Iowa, that obviously, the are with maybe just energy kind where wondering incentives expectations out in you've blueprint transition there. you'll

John Larsen

anything, Yes. do Certainly. question. Thanks and feel wants here, free to John Robert add for to the Robert. so,

that in confident standard we process disappointed. to very forward members at Iowa we they frankly, projects. going the the economic providing for We certainly, forward put future point generation benefits the and very feel Feel confident receive driving working with but forward, that in development ROE in pleased and and that be didn't this process, projects met And that the RPU. fixed the for new we bit look feel to a in IUB investment approval, on the this quite

Dariusz Lozny

all the for any at this a wind the again, One Can is more, probably that could. I see you bit little assets level. in high of comment set your existing portfolio? opportunity repowering more you if on And

John Larsen

we Yes. as are now think feel partial a we so in service, maybe facilities it position potential in of Certainly, a decade we ago have full. that that repower or placed either or that for wind those

So and investments. signaled before that, forward on our we've look evaluating that possible we've certainly been

for in that economic customers certainly are they to position for do So benefit repower.

we on and there. potential we our some great that's study, think have ongoing So

Dariusz Lozny

in And just the far plan John, for nothing repowering? to confirm, as capital as existing

John Larsen

Correct.

Operator

back no There Ms. over at time. Gille, are you. Instructions] further [Operator this questions to

Susan Gille

quarter This me continued Alliant first concludes and contact call. support Alliant to you Energy's any free for feel follow-up your questions. Energy, with of earnings Thank

Operator

that your you your disconnect conference day. gentlemen, and Have today. ask please participating thank call Ladies and your great concludes lines. a for We this

Alliant Energy (LNT) 5 May 232023 Q1 Earnings call transcript