Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to Alliant Energy's Conference Call for Second Quarter 2023 Results. This call is being recorded for rebroadcast. [Operator Instructions]

I would now like to turn the call over to your host, Susan Gille, Investor Relations Manager at Alliant Energy. Please go ahead.

Susan Gille

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

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

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

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

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

John Larsen

and for thank Hello, us. joining Thank Susan. you, everyone, you

our have were with on from second consistent Our results quarter progress expectations, made and towards year that company. track come our expect have to we growth solid full the achieving share owners

areas of strong highlight our track our execution, to long-standing have record progress continue we several will consistent As to also of that thesis. investment reinforce serve we

began XXXX the year. Our of well start before focus the on

additional our half took resource the management and advance resilience. of to last focus shared we cost quarter, latter we in on As plans and added XXXX actions

interest our are through capital results projects, with our on The efforts. to advancement key great expectation and made progress clearly pleased the of from those are filings, regulatory reduce We major shown we've the positive results we this continued convertible rates to by successfully XXXX. to derisk rate and rising of interest part our mitigating year in debt hedging. the offering XXXX early O&M focus through compared And XXXX our

core strong year-to-date. In operations addition, seen we have

incredibly in the first great proud our I year. team of progress am the half this of has made

across We our efforts safe unwavering and exceptional grid, to fronts all our advancing remarkable dedication have customers on seen energy clean service commitment operating energy resilient to and our advancements focused our and to communities. delivering a including

President In with And will regulatory and to before progress. I progress. highlight a more call moment, this our I do Operating the on of to and relating the close Officer, our themes Barton, more over But financials couple will our Lisa quarter. details Chief and turn that, call investment from I'll to updates share operating Robert key a

ranking exceptional resilient. and our We our of as currently largest progress the We energy owner-operator investments renewable continue nationally in energy advancing network to sector remain third that the make wind regulated efficient, assets. leader a make reliable

We investing and both energy prioritizing generation our are continuously in supply. value portfolio, reliability a diverse more in

A our of great projects, and in XXX of this complement storage is at which will Grand megawatts Wisconsin. Counties Wood recently approved solar our battery investments example

as reliability quality by excel recognized We continue Power. and to in power J.D.

efforts are through our the around ongoing undergrounding Our the of enhancing our system. and centered resilience results distribution energy of grid

distribution and secure this of achieve robust undergrounded more solidifying and than in levels a We system, to area of XX% continue commitment new to more have our our infrastructure. efficiency further

by in cutting-edge at first Center our of of to technologies our capabilities, a the energy storage actively are We pursuing highlighted Columbia site. United system States long-duration advancement establish Energy storage the exploration

to coal-fired in retirement the the and promote at of committed interconnections XXXX, we infrastructure Columbia anticipate As energy leveraging the we site to are center existing this resilience.

and a serving the state illustration proactive sustainable federal in funding to pursue as remain and within innovation and and significant generated of our has our to on at project agile level. both financing embrace to arise opportunities excitement that organization, identifying commitment federal contribute prime a future. capitalizing The We

forward-thinking to strategy consistently continue execute financial delivering we stated, and Simply and are our operating results.

work Our is our our are tirelessly and fulfill everything to to they strong been year employees. and made Their have to incredible. dedicated build I contributions serve they them our truly results the Every purpose, which day, customers possible exceptional stronger thank by communities. do. past for want throughout recognize

strong performance anticipate operational your financial deeply our eagerly We interest another year ongoing in value we and and company. of

investment thesis As result efforts, team's our a remains. of strong our

on Our plan. first are half XXXX results

in our guidance We and on we reaffirmed our and X% committed annual long-term delivering earnings earnings to to remain growth have dividends. X% consistent

call the turn to Lisa. now will I over

Lisa Barton

John. you, Thank

that to to commitment manner dedication ESG revolves One Alliant drew areas of to Energy delivering a value holistic in and our principles. unwavering me the sustainable around our and

as are landscape. our to customers evolving long-term we for communities, in a guides core growth clean commitment ensuring a transition in us value our and is energy lives of the customers We energy and consistent in positive successful a navigate and resolute the making communities our difference

portfolio resources. corporate environmental report, XXXX valued our our stewardship, to commitment to our we released governance. diverse and zero recently meeting our to and facilities, generating With customers while continuing provide responsibility cost consistently of access to needs of energy social a the We corporate showcasing fuel carbon-free broaden communities energy their reliable

collaborate proactively resiliency, partner competitive knowledge our advance system As and which prioritize clean industry's best energy invest we advance in and organizations rates, reliability, sustainability on and our practices. We initiatives, innovation. we

from environmental let's Now progress review XXXX. our great

our First renewable XXXX customers sources. supply off, to of we was XX% in from energy retail the

achieving of XXXX from levels, We way XXXX. we reduction our demonstrating our by XX% XX% emissions usage water our COX our Second, XXXX. on by reduction fossil carbon XX% our towards from we levels, XX% by progress dioxide our our reduced fuel generation from by XXXX reduced a our goal that evidence goal well annual to are

our Looking highlighted progress forward, economy. and Slide support we On to goals transition energy the a examples have company's sustainability plans X, to our updated strategic reflect our to clean low-carbon of we efforts.

cost-effective reducing in less significant and natural gas, our generation strides wind, made transitioning storage battery efficient carbon as have resources, such to we footprint coal years, from and solar. older, units by the Over efficient

providing not expanding for Building options our expansion, energy resources wind but our only service project commitment lower solar energy our upon to successful future. our as our we cost environmental capabilities, well focusing are served management territory, value on the These customers strong demonstrate for into our execution sustainability, also portfolio.

into mid-XXXX. With XXX an investments are solar placed to projects, In our and substantial totaling on of XXXX, owner-operator of in largest we schedule solar gigawatts we set to of are Wisconsin. additional megawatts by we solar X.X the successfully become XXX capacity add service, megawatts energy

and on businesses University host or in partner site. our Iowa examples Two Energy an solar projects, with communities we customers objectives the farm renewables are Our focus the Alliant serve. With Wisconsin-Madison. helping State to investments their sustainability are the communities of customer-hosted on with University we

program, with an Through to solar also investing solar Iowa solar our we community the alternative synergies solar partnership production sites created the State, in large-scale community study or agrivoltaics, adjacent or to funded installations. rooftop panels. In bringing and of offering are crop customers underneath we livestock of cost

reliable needed trim This storm Blueprint response. a generation, our system. associated the distribution Undergrounding resources Our reduces by emphasizes distribution Energy John cost reliability and the of customer improves mentioned lines to trees, with Clean encompasses an on future. serves our resiliency of grid. undergrounding the focus towards importance but to allows reduce us our as resilient inconvenience blueprint energy and efficient, road cleaner only not map energy

path units. investments, gas and solutions where satisfaction. we is plants, innovative energy An investment our Neenah upgrades strive gas increase efficiency, to and without Through example of Falls options this continuously these advanced our in compromising the sustainable the capacity Sheboygan strategic deliver reliability of customer our and will

was Iowa, on the hearing to details the Slide Iowa Finally, X. start The our I Office ratemaking on this Consumer report an advanced projects we in We expedited provided Iowa our that am ratemaking decision reached a on Iowa Advocate construction investments we settlement cost-effective pleased for week. Board of are completed the regarding principles these docket. Settlement requested these principles with customers. can for Utilities so from earlier

our will communities results aligns create financial with payments will regulatory to landowners, to and share service detail construction, service our in on which who serve and now during of communities. the rural purpose territory, additional lease to build investments I of bring to support stronger Iowa jobs electric reliability revenues These local our will shared provide in our all Robert? pass Robert, and progress. our mic customers Iowa

Robert Durian

to announced investments, costs, lower WPL XXXX earnings fund and drivers expense Thanks, compared gas of temperature sales quarter investments. The everyone. GAAP quarter electric second quarter-over-quarter to we Yesterday, quarter the due XXXX. XXXX solar were second on program; when net of resulting variances $X.XX per from expansion to share. Lisa. compared partially by the recoveries primary were higher fuel-related EPS interest These financings Good and and including retail our estimated electric morning, of additional drivers second to higher lower of of impacts earnings positive capital capital offset

reaffirming we guidance on over adjusted XXXX earnings be earnings our guidance X% year, $X.XX $X.XX year drivers range the earnings For increase full of of share. can share. second midpoint quarter and a per per on Slide The XXXX is that our Details full are earnings to X. found

provide impact To quarter-over-quarter, assist context timing you in annual an each in proportion earnings each tax based expenses year to fluctuations year, some I causes of of effective on tax earnings estimated tax full have the to of an earnings. quantify income rate recorded but generated additional on full will year expenses wanted the not Income and it this quarter expense. This modeling tax and our quarter. amount quarterly the

quarter-over-quarter continue levels renewable higher tax we benefits, these increased. have As generate and our of portfolio to increase renewable variances

tax XXXX XXXX estimates related We X. EPS to on Slide benefit have the for quarterly provided recognition our timing and

plan and We retiring projects, executed to maturity, support our renewable million have rising financing investments substantial mitigate debt of $XXX interest which portion fund occurred to June. in rates, in a our a already to XXXX

equity raised through we to debt of first million to the several of approximately a addition plan. $XXX the in to we execute new an XXXX share X/X ATM in direct common have In successful expect issuances quarter, and up program issuances

have long-term financing $XXX which second of proceeds, the year. natural facility, on help debt half West includes reduce this of external up overall we the the providing financing for financing XXX debt will of IPL Riverside of at also gas year, to sales XXXX and our remained Earlier unchanged, requirements. in our megawatts closed remaining Our our plans million

our cost positions benefits approximately to Riverside plans these well Inflation impact the West of we proceeds our profile. take will generation provided million. enhanced The in in anticipated Reduction of tax that sales our $XXX advantage interests and in the positively have were of made The from combined us progress partial transformation Act

interests With to the with for progress these credits benefits planned for customers, working counterparty the as focus on tax strong have our under of optimize to competitive transfers are the available renewable make credits. continue tax seen IRA we cost rates we and strong our

the As improving reducing proceeds our transfers costs future tax reminder, a flows of needs financing to and and our be credit investments, our help enhance lower customer our battery used on will thereby from these renewable metrics. credit cash some

Shifting to regulatory.

have investments. our planned progress to regulatory key Slide We on X. notable included for initiatives XXXX regulatory with Lisa some covered related our proceedings our customer-focused

In other addition, progress Iowa we and are in also Wisconsin. several proceedings regulatory key making with

Starting X, involving support with and that PSCW as investments rate on September in support year. later followed the their and and final in This request XXXX hearing filed years a Wisconsin, steps keeping planned continued several while includes the XXXX test for decision progressing from this PSCW the mind. review review audit is rates scheduled XX, value to top resiliency rate be process sustainability, expected intervenors and staff to September the a for by of competitive discovery reliability customer testimony next recovery and by proceeding of and by the

procedural review provided X. the rate have WPL's on for We schedule Slide

serve of reconciliation fuel Additionally, currently requested additional WPL time amount for quarter. WPL WPL of PSCW anticipates recovery decision by this XXXX future the its incurred of such end its in by submitted XXXX on of Wisconsin, in to frame the from the costs $XXX a recovery recovery and million fuel customers. filing, which the

higher commodity costs experienced driven XXXX, fuel utilities our elevated by in While prices.

in reductions help of lower strong first costs our which customers. we significant will for X future performance months the and generation facilities, have gas prices fuel During our natural Wisconsin XXXX, experienced of

of our customers And Iowa, onto we monthly jurisdiction in benefits will rate the the anticipation of have started completing of in gas investments passing filed in construction fuel cost with electric our lower Iowa several Utilities for before tariff already these that Continuing through with XXXX. review end this Iowa fuel we notice this customers Iowa an XXXX, later key IPL the Board requesting we year. week, cost be and

we test transition inflation since generation, increases made transitioning included all last of the have that year Our the from last Iowa rate IPL's a time, [indiscernible] while grid, forward and proceeding. in devastating advancing a in to not cleaner XXXX. review storm Iowa And significant rate and interest sources progress anticipated in rebuilding managing

and Inflation Reduction IPL's will year of The provides costs the facilities is also installation Iowa fuel significant of enhanced and our unit a of emissions this the avoid wind the generation plant benefits customers credit continuing changing with notable planned capital reduces allow tax the associated by solar mix. the IPL's resource transformation projects component costs to more in Act. and coal existing support Lansing enabled retirement earlier The and the and distributed to while reducing operate

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

facilitate call on to to At the back our always, question-and-answer our session. time, As turn will we over available Relations materials operator I'll website. the the this make Investor

Operator

question of America. [Operator at Instructions] Dumoulin-Smith Your Julien Bank from first will come

Dariusz Lozny

This look some proposed I discuss with frame? settlement the Also, Maybe settlement you was you not -- a just is took I partial storage. week. And also from earlier that the it Iowa. in was formulating you the the battery in where here over see time then place XX.XX% wondering proposed takes just and that what of importantly, week? takeaways process from but could and moving hearing took into the the maybe puts starting believe filed that -- advanced in went the that I process at in ratemaking any ROE, earlier including Julien. if on off for Dariusz settlements a your

John Larsen

Great. Dariusz, this is John.

progress went as on we're docket very the expected. pleased the this with So and hearing

think the reached I as settlement Office Advocate. we you're aware, also with of Consumer

awaiting IUB's Robert noted, and be maybe So you we those puts little the color share more a a few I'll to ask But as going Dariusz. the items decision. takes are on of to

Robert Durian

details interest us a to state, think nature balanced was that's to do Iowa. that of settlement have Dariusz, explained warrants ROE law it in yes, it XX.XX% between there. I'd we of incentivize customer some have at very as and the renewables the say kind interest of shareowner to and the put you premium the in a We

I'd are in on to on light we've the say the appreciated similar which customer a facilities intervening what also one is is side for us. parties ability that as a in that our projects in the agree were able confident area. We target interested execute achieve of willingness our something newer seen consumer operate protection cost to we thing But to plan, cost the far for reasonable and as solar the to be was in that.

So principles would agreements in balanced might to the docket. probably make decision. the we a months, forward I I was a It be, set next maybe pretty will it think time see all, Board of on decision Utility look I and guess, within of a of some couple all this Iowa

Dariusz Lozny

you're softer that on Can it seeing weather a the that on maybe seeing the of bit If that a main classes? quarter/trends a Great. quarter is could normalized Certainly standpoint. temperature one from basis year-to-date. comment was and this X you growth ask just customer on more more you're I the across a noted

John Larsen

Yes. Dariusz, last the sales temperature year, John really again. it's we've some half. normalized Similar seen first retail to solid in

XXXX. So par we year. much had pretty on And with this that solid very a

'XX. of We've the see half megawatts seen some growth of first also announced strong growth. new XX in We about

there. strength So some nice

sales appreciate mentioned to before and I or Lisa, the it anything. growth. But it trend, before, Dariusz. if question, development have a to you think long-term nice I've want economic see continues add I trend some Robert but to call a we we like weather-normalized

Robert Durian

indicated, only normalized as add slightly of it I’d electric this expected far quarter. than temperature better It for that residential most is, the growth meter as as saw was John on both Maybe our gas growth. really we Yes. was good side thing the where and really

So that driver. was primary the

Operator

Your Alex next Mortimer from question will at Mizuho Securities. come

Alex Mortimer

out to the what you portion way, should your this for throughout phrase able you the and have Maybe future? of onetime ongoing your the later year continue versus savings run in rate? cuts year, nature into may discovered as half any we As another management cost more you've planned of examined own think be

Robert Durian

as we Alex, are of levels the spend in and seeing what I second the we're because Yes, additional difference would majority primarily far incurred XXXX of XXXX. of some a XXXX say between as that half

to very exciting A spend dollars O&M is quite to continue like fiber to at and We us got to more make been going of some lot able focused costs. think service I'll undergrounding, effective throughout management now longer-term reduce what We've to activities has a a costs. the in also new and opportunities exciting we're helping with asset this things with on that us implemented focus And right on continue reduce with telecommunication and to field capital technology costs area, different we're that year. is which O&M help call a workforce our the storm for bit controls the gain our some different identifying our pretty being of customers. we've enterprise try to Things progress which territory, operations. costs efficiencies us of to lot reduce will put to we use. Things system of in reduce for

this one of also what a we see on. you'll more which plants, Lansing -- call So because with coal the have recent reduction of we retired our I'd step a quarter change facility,

area, phase probably but As in intelligence the some in I exciting the evaluation there. what we're I the future, still look things artificial as to characterize

and continue And the see that area. in progress we once provide monitor more updates we'll for investors to so that

Lisa Barton

that of what future. to in affordability. Robert that's to We talked going the that a are that Alex, driver growth the one the add about fact on understand be thing focused would we I is

really customers processes, entire is standpoint, organization from structure as delivering can make communities. to we a on cultural evaluating So our focused our the best that cost sure and our for we're

Alex Mortimer

of big states outlook And to picture promote gas for Massachusetts. you more we've and even in the bands gas think Understood. do How on a gas then long-term level, like weather Okay. cold your infrastructure? a move seen about utilities

John Larsen

plays and a to major be we think the for going in understand there's going lot a particularly where I certainly we're to still discussion Alex, that important, region have role, gas it's immediate play on Yes. gas, natural while for of or very least at point the we be to climate important playing it a heating. and for future about role the past generation for that, natural of either producing for at But very where a gas home see role.

Lisa Barton

the renewables thing of our resources thing only think, XX% fuel And cost customers would were customers our served I add differentiator, our us. one portfolio – our renewable by big a is I The would is really fact protects retail is add that the for from volatility. I

Operator

Guggenheim. at next come Your Instructions] Kennedy from [Operator question will James

James Kennedy

Just guidance the one. to this. I'm position be is a But in terms a you if sorry quick still with missed Wisconsin case outstanding? in next what the update if provide I will of

Robert Durian

Yes, James, Robert. this is

to EEI the early in think Finance Conference call that. November you in if be So the conference after third quarter forward that shortly will

be to plans We capital in earnings Iowa us reviews guidance projections base Wisconsin for our in will for specifics provide rate And XXXX see have and XXXX. XXXX. financing insights on expectations expect and additional we'll and of to providing what more expenditure on updated through rate

James Kennedy

have to wait? formal the might guidance But Okay.

Robert Durian

those I with plans X% in long-term we're and proceedings or plan We're growth and To confident be hopefully regarding earnings very show said, financing have to both with X% exactly guidance Wisconsin for for still to expecting we'll Iowa for progress more make 'XX. Like details EPS. the and of 'XX specifics in determined. what good

we rate anything. more once further expect But some just provide shouldn't through get specifics these reviews. hopefully, you we'll So

James Kennedy

the Cool. included. battery then Okay. the And on wasn't settlement,

I guess, there. pathways provide? you color Any So can just forward

John Larsen

storage our our Yes. cost-effective for battery Maybe, quite solution James, I’ll just is and plan important note part customers. of that very frankly, resource

there to recovery regulatory, of are some So on options we forward. kind the storage, fully energy but and expect going proceeding advance

out be played little as advances. RPU So more the to proceeding a

EEI or think the updates I more the QX call get have we energy to on we’ll storage. So as

Operator

turn are no the back there conference As for Gille closing any will to Susan questions, other I remarks.

Susan Gille

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

Operator

disconnect like call and gentlemen, conclude thank to to your this and Ladies We does your lines. participating you indeed morning. would for ask this for all conference you please

Alliant Energy (LNT) 4 Aug 232023 Q2 Earnings call transcript