Alliant Energy Q1 2025 Earnings Report

Alliant Energy EPS Results

• Actual EPS: $0.83
• Consensus EPS: $0.71
• Beat/Miss: Beat by +$0.12
• One Year Ago EPS: $0.62

Alliant Energy Revenue Results

• Actual Revenue: $1.13 billion
• Expected Revenue: $1.09 billion
• Beat/Miss: Beat by +$41.90 million
• YoY Revenue Growth: +9.40%

Alliant Energy Announcement Details

• Quarter: Q1 2025
• Date: 5/8/2025
• Time: After Market Closes
• Conference Call Date: Friday, May 9, 2025
• Conference Call Time: 10:00AM ET

Alliant Energy (NASDAQ:LNT) operates as a utility holding company that provides regulated electricity and natural gas services in the United States. It operates in three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, packaging, and food industries, as well as wholesale customers comprising municipalities and rural electric cooperatives. In addition, the company owns and operates a short-line rail freight service in Iowa; a Mississippi River barge, rail, and truck freight terminal in Illinois; freight brokerage services; wind turbine blade recycling services; and a rail-served warehouse in Iowa. Further, it holds interests in a natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a wind farm located in Oklahoma. The company was formerly known as Interstate Energy Corp. and changed its name to Alliant Energy Corporation in May 1999. Alliant Energy Corporation was incorporated in 1981 and is headquartered in Madison, Wisconsin.

Alliant Energy Q1 2025 Earnings Call Transcript

Key Takeaways

• Alliant Energy delivered first quarter earnings of $0.83 per share versus $0.62 in Q1 2024, representing over 25% of the 2025 guidance midpoint, and reaffirmed its full-year EPS range of $3.15–$3.25.
• The company has executed three major data center energy supply agreements totaling 2.1 GW—a >30% increase in peak demand—and accelerated load ramping at Big Cedar using existing resources.
• Updated 2025–2028 CapEx of $11.5 billion reflects a 26% increase from 18 months ago, yielding an ~11% investment CAGR and balancing new gas, renewables, storage and distribution upgrades.
• Financing plans for the $11.5 billion CapEx call for ~50% cash and tax credit monetization, ~40% new debt and ~12% new equity via an ATM and direct plans, while maintaining investment-grade credit ratings.
• Alliant has safe-harbored 100% of its renewable and battery investments through 2028 to protect tax credits, limited tariff exposure to ~1–2% of CapEx, and filed key regulatory cases in Iowa and Wisconsin for individual customer rates, rate reviews and new generation certificates.

Presentation

[Operator]

Thank you for holding, and welcome to Alliant Energy Energy's First Quarter twenty twenty five Earnings Conference Call. At this time, all lines are in listen only mode. Today's conference call is being recorded. And I would now like to turn the call over to your host, Susan Gill, Investor Relations Manager at Alliant Energy.

[Susan Gille, Manager of Investor Relations at Alliant Energy]

Good morning. I would like to thank all of you on the call and the webcast for joining us today. We appreciate your participation. With me here today are Lisa Barton, President and CEO and Robert Durian, Executive Vice President and CFO. Following prepared remarks by Lisa and Robert, we will have time to take questions from the investment community.

[Susan Gille, Manager of Investor Relations at Alliant Energy]

We issued a news release last night announcing Alliant Energy's first quarter financial results and reaffirmed our 2025 earnings guidance range. We also updated our capital expenditure and financing plans for years twenty twenty five through 2028. This release as well as earnings presentation will be referenced during today's call and are available on the Investor page of our website at www.alliantenergy.com. Before we begin, I need to remind you the remarks we make on this call and our answers to your questions include forward looking statements. These forward looking statements are subject to risks that could cause actual results to be materially different.

[Susan Gille, Manager of Investor Relations at Alliant Energy]

Those risks include, among others, matters discussed in Alliant Energy's news release issued last night and in our filings with the Securities and Exchange Commission. We disclaim any obligation to update these forward looking statements. At this point, I'll turn the call over to Lisa.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Thank you, Sue. Good morning, everyone, and thank you for joining us.

[Lisa Barton, Director, President & CEO at Alliant Energy]

2025 is off to a strong start. I'm pleased to share meaningful progress supporting both our near term and long term objectives, clear evidence of the strength, resilience and adaptability of our strategy and business model. Our first quarter results delivered more than 25% of our earnings guidance midpoint, and we are positioned to achieve our 2025 earnings objectives while advancing our key strategic priorities, positioning us well for the year. Our commitment to our customers, communities, investors and employees remains at the heart of everything we do. As I've mentioned in previous calls, we are relentlessly focused on supporting economic development and growth in our states.

[Lisa Barton, Director, President & CEO at Alliant Energy]

And today, I'm pleased to provide meaningful and exciting updates supporting our development milestones, first quarter achievements and share details on our updated capital expenditure plans as we advance our growth strategy. I will then turn the call over to Robert to provide additional details related to our quarterly financial performance, risk management efforts as well as our updated financing plans and regulatory matters. Achieving scalable growth in today's complex environment is akin to solving Rubik's Cube. It demands precision, agility and a clear understanding of how every move influences the bigger picture. We are simultaneously solving all sides of our own Rubik's Cube, addressing customer needs, supporting economic development and growth in our states, collaborating with key stakeholders and delivering sustainable investor returns.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Let me recap our investment growth timeline over the past six months. In November, we announced two energy supply agreements with data center companies locating in the Big Cedar Industrial Center in Cedar Rapids, Iowa, adding an initial 1.1 gigawatts of data center demand for what we refer to as the first phase at Big Cedar. The corresponding capital plans released last November represented a 20% increase from the prior year and included the additional capacity resources needed to serve the first phase at Big Cedar and to adapt to MISO accreditation changes. We have continued our strong momentum in support of our economic development efforts this quarter by solidifying the resources needed for a second phase for one of our data center customers at Big Cedar, which is an additional 800 megawatts of demand executing a new energy supply agreement with a data center customer in Beaver Dam, Wisconsin and reaching an agreement with one of our Iowa data center customers to use existing capacity to serve them earlier, increasing our forecasted peak load in 'twenty six and 'twenty seven. The Alliance Energy advantage is our commitment to help grow the economies of Iowa and Wisconsin and meet the needs of our customers by being as creative and adaptive as possible to align with their desired time lines.

[Lisa Barton, Director, President & CEO at Alliant Energy]

To summarize our recent success on this front, we now have three major data center developments with fully executed ESAs totaling 2.1 gigawatts of demand, which represents a greater than 30% increase in our peak demand. We're accelerating our load ramp for one of the two data centers at Big Cedar using existing resources. We're pursuing additional growth opportunities, positioning ourselves and our states for meaningful and sustainable long term growth. On Slide four, we provide our updated demand projections used to develop our capital expenditure plan. If actual demand exceeds the current estimated demand in our plan or if we sign additional energy supply agreements, we would serve any incremental load through a combination of existing or new resources, short term market purchases, and or load response.

[Lisa Barton, Director, President & CEO at Alliant Energy]

To help investors and stakeholders navigate the complexity of growth announcements, we focus our reporting exclusively on customer loads supported by fully executed electric service agreements backed by substantial customer commitments to ensure our growth is highly credible and sustained. These advancements in economic developments and growth have led to our CapEx update, reflecting a nearly 26% increase from where we were eighteen months ago, as shown on Slide five. This translates into a 2024 to 2028 forecasted investment CAGR of nearly 11%, with significant energy resource investment opportunities extending beyond 2028, as profiled on Slide six. In aggregate, our four year CapEx plan for 2025 through 2028 increased by approximately $600,000,000 from our November 2024 update. The updated resource plan behind the CapEx plan strikes the right balance in optimizing existing resources and extending value at existing sites, supporting reliability and affordability, utilizing short term capacity agreements and load response to accelerate economic development, and adding new generation to grow alongside

[Lisa Barton, Director, President & CEO at Alliant Energy]

energy resources. Our efforts to drive community development and enhance our growth trajectory encompasses data centers as well as current and prospective commercial and industrial customers. I am pleased to report that there continues to be strong interest in locating and growing in our service areas, both in Iowa and Wisconsin. Through disciplined planning and proactive execution, we have positioned our company, customers and investors for success in an uncertain macroeconomic environment. The capital plan update reflects proactive planning and flexibility, allowing us to lean into new natural gas investments, invest in our existing generation and distribution systems to support resiliency, reliability and reduce risks in the face of policy uncertainty.

[Lisa Barton, Director, President & CEO at Alliant Energy]

New natural gas resources provide reliable and dispatchable capacity resources that complement our robust renewable fleet. Investments in our existing generation resources, such as our advanced gas projects in WPL and WPL's extension of the use of Edgewater and Columbia generating stations until the end of the decade, provides the additional reliability to meet growing demand and is responsive to the evolving MISO resource adequacy requirements. Lastly, extending the timing of some of our renewable and battery investments allows us to reduce risks related to tariff and tax policy uncertainty, while also lengthening our capital expenditure plan into the future, strengthening our position to deliver financial consistency over the long term. With the energy supply agreements executed for our three data center customers, our attention is now focused on obtaining regulatory approval of the individual customer rates or ICRs. The IUC is currently reviewing an ICR contract filed earlier in the year for one of our data center customers in Iowa.

[Lisa Barton, Director, President & CEO at Alliant Energy]

The second Iowa ICR contract will be filed this quarter reflecting an accelerated load ramp. And late last month, we filed an ICR for the Beaver Dam data center in Wisconsin. As we've highlighted in previous calls, we are committed to ensuring all ICRs achieve a win win win for existing customers, for new customers and our shareowners, which will be demonstrated in these confidential filings. New data center loads are expected to boost energy sales. This increase in sales will help distribute fixed costs and transmission expenses across a larger customer base, contributing to more stable and manageable rates for the customers we have the privilege to serve.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Alliance Energy operates in business friendly states that are well positioned for regional growth and economic development. And we are proud to partner with our communities to turn growth potential into real long term impacts. Our collaborative partnership with regulators, policymakers, and local communities enables us to deliver successful outcomes. I'm proud of our team's proactive and impactful engagement, which serves as the cornerstone of our success, delivering meaningful outcomes and greater value for all our stakeholders. Alliance Energy is here to support not only the customers we currently serve, but also to ensure we are supporting the needs of future customers and enabling community growth across our service territory.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Before I turn the call over to Robert, I would like to tackle head on questions regarding our strategy in the event the Inflation Reduction Act or IRA is repealed or if tax credits are scaled back. Renewable generation and energy storage tax credits have fueled economic growth and onshoring, eliminating the tax credits when unfortunately and unnecessarily increased costs for customers. Our delegations understand how valuable tax credits and transferability are to Alliance and our customers. And we believe they will advocate for a balanced, careful approach to any legislative changes. Iowa's wind resources are among the best in the country, and our customers are benefiting from those investments.

[Lisa Barton, Director, President & CEO at Alliant Energy]

We will continue to take an all of the above approach in new generation resources, which includes a mix of wind, batteries, and natural gas to ensure we maintain a balanced and diverse energy resource mix. Active management of our CapEx and resource plans means we have taken a prudent and proactive approach of safe harboring wind and energy storage projects. As a result, 100% of the renewable and energy storage CapEx in our plan is currently safe harbored through 2028. And as we continue to execute our strategy, we'll continue to proactively derisk our strategy and remain well positioned to quickly adapt to a dynamic environment. In closing, I would like to extend my deepest gratitude to our dedicated team of employees and for their unwavering commitment to our purpose of serving customers and building stronger communities.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Your hard work and dedication are the backbone of our operational success and the driving force behind our strategic progress. I will now turn the call over to Robert.

[Robert Durian, EVP and CFO at Alliant Energy]

Thank you, Lisa. Good morning, everyone. Yesterday, we announced first quarter twenty twenty five earnings of $0.83 per share compared to $0.62 per share in the first quarter of twenty twenty four. Our earnings are ahead of plan despite the negative temperature impacts on electric and gas sales in the first quarter of twenty twenty five. Our quarter over quarter variances were mainly driven by the higher revenue requirements from capital investments at both IPL and WPL, temperature impacts on retail electric and gas sales and the timing of income tax expense, which will reverse later this year.

[Robert Durian, EVP and CFO at Alliant Energy]

These positive drivers were partially offset by higher depreciation and financing expenses. Temperatures were warmer than normal in the first quarter of twenty twenty five, resulting in decreased electric and gas margins of $03 per share. In comparison, the winter temperatures in the first quarter of twenty twenty four were some of the warmest on record, which decreased our electric and gas margins by approximately $08 per share. Excluding the impacts of mild temperatures, the margins from our retail electric sales were higher than the first quarter of twenty twenty four due to growth in the number of customers and increased use per meter across all retail customer classes at our Wisconsin utility. To assist you in modeling our quarterly earnings this year, I want to provide some additional context to the variance driver related to the timing of income tax expense.

[Robert Durian, EVP and CFO at Alliant Energy]

Income tax expense is recorded each quarter based on an estimated annual effective tax rate and the proportion of full year earnings generated each quarter. As shown on Slide nine of our supplemental slides, this causes fluctuations in the amount of tax expenses quarter over quarter, but it will not have an impact on the full year earnings. With a solid first quarter behind us, we are reaffirming our 2025 earnings guidance range of $3.15 to $3.25 per share. Our ability to consistently deliver solid financial results is supported by our efforts to provide customer value, including extending the value of existing resources, making smart investments and controlling operating costs, all while receiving constructive regulatory outcomes. I'm proud to share how our employees are continuing their steadfast focus on creating value for our customers while managing risk.

[Robert Durian, EVP and CFO at Alliant Energy]

The following are some recent examples of their success. Reiterating what Lisa shared, we have completed nearly all of our planned safe harbor activities with the intention of preserving the qualification of tax credits for future energy storage and renewable projects expected to be placed into service through 2028. Our team has done a great job mitigating tariff exposure for our customers, with minimal exposure to the batteries in our updated capital plan as the batteries are either in our possession or in transit, and the batteries in transit are expected to be subject to only a 20% tariff. We estimate our total tariff exposure is approximately one percent to 2% of our $11,500,000,000 updated capital expenditure plan prior to further mitigation by our team. Our team also successfully sold existing capacity length available at both our utilities into the recent MISO capacity auction, resulting in meaningful benefits for our customers.

[Robert Durian, EVP and CFO at Alliant Energy]

And lastly, we are utilizing our individual customer rate construct in both states, which allows us to capture growth from economic development activities occurring within our service territory, which will in turn absorb a portion of our fixed costs helping mitigate costs for all customers in the future. Turning to financings. In conjunction with our updated capital expenditure plans, we have updated our 2025 through 2028 financing plans. The anticipated financing sources for our $11,500,000,000 capital expenditure plan are included on slide 10. Cash from operations and anticipated proceeds from tax credit monetization make up almost 50% of our financing plan.

[Robert Durian, EVP and CFO at Alliant Energy]

New debt financing, net of maturities, accounts for approximately 40%, while new common equity issuances account for approximately 12% of the total funding sources for the updated plan. We plan to launch an at the market or ATM program this year and continue our Scherner Direct plan, both of which support the new common equity issuances assumed in our plan. While our updated financing plans assume raising the new common equity ratably in 2026 through 2028, we believe the ATM provides us flexibility on the timing as we continue to monitor and assess market conditions. With this updated financing plan, we are committed to maintaining our current investment grade credit ratings. Tax credit monetization through transferability continues to provide benefits by reducing customer costs and providing an alternative source of financing for a portion of our capital expenditure plans.

[Robert Durian, EVP and CFO at Alliant Energy]

Along with the rest of the utility industry, we continue to monitor developments with different legislative proposals and advocate for legislative provisions that would be beneficial for our customers. We are also taking prudent actions to protect the right to transfer tax credits through our safe harboring activities. We have disclosed the success of these activities on Slide 10 of our supplemental slides, which shows a substantial portion of the tax credits included in our updated financing plan through 2028 are from projects either already in service or safe harbored prior to 2025. We also have optionality with alternative financing sources if transferability is modified under future legislation. Alternatives include incremental financing with a balanced mix of debt and equity as well as utilizing hybrid instruments.

[Robert Durian, EVP and CFO at Alliant Energy]

We would also evaluate aligning the timing of customer bill credits with expected utilization of credits from future projects as well as the potential use of tax equity arrangements if beneficial for our customers. Specific to our 2025 debt financing plans, during the first quarter, we extended the Align Energy Finance variable rate term loan agreement until 2026. The remaining debt financings are shown on slide 11 and include estimated issuances at Align Energy Finance or the parent and our two utilities. For all three segments, we've increased our financing needs, primarily to fund the increased 2025 investments in our updated capital plans and to increase financing flexibility in anticipation of upcoming maturities in early twenty twenty six. At our Iowa utilities, some of the issuance will be used to refinance $300,000,000 of debt maturing in the third quarter of this year.

[Robert Durian, EVP and CFO at Alliant Energy]

Finally, I'll highlight our regulatory initiatives that have been filed as well as those regulatory filings we plan to initiate later this year. Starting in Wisconsin, WPL recently received approval from the PSCW for two customer focused investments in our updated capital plan, including the Riverside Enhancement Project to support reliability and resiliency for Wisconsin and the Bent Tree Wind Refurbishment Project expected to extend tax credits for the benefit of our customers. Turning to our regulatory proceedings currently in process. WPL recently filed an electric and gas rate review for test years 2026 and 2027. The filing includes recovery of several investments that support reliability and resiliency while keeping customer value and competitive rates top of mind.

[Robert Durian, EVP and CFO at Alliant Energy]

These investments include cost effectively advancing responsible energy solutions, including solar and wind refurbishment projects, which provide zero fuel cost energy and tax benefits, as well as investing in new energy storage resources and capacity and efficiency upgrades for existing natural gas generation to provide additional energy resources to meet growing customer demand. Finally, it includes recovery of our planned continued investments in electric and gas distribution just to report reliability for and safety for our customers. Next steps in the rate review process include a discovery phase and audit by the PSCW staff and intervenors over the next few months, with a hearing anticipated in early fall and a final decision expected from the PSCW later this year. More details on the rate review, including key terms requested in this filing, can be found on slide 12. WPL also recently requested approval of an individual customer rate for the data center plan to be built in Beaver Dam, Wisconsin.

[Robert Durian, EVP and CFO at Alliant Energy]

And lastly, WPL has four active dockets in progress before the PSCW involving requests for certificates of authority for customer focused investments. We also have four active filings in progress before the Iowa Utilities Commission, including a request for an individual customer rate for one of the new data centers in Cedar Rapids, Iowa, request for approximately two twenty five megawatts of battery storage to be located at the Retired Lansing coal generation site and next to the Golden Plains Wind generating station and a request for an approximate 100 megawatt Cedar River natural gas generating station, which will be located next to the existing site of the Prairie Creek generation station. The expected timing of decisions from the PSCW and Iowa Utilities Commission on these pending dockets is provided on slide 13. Finally, in conjunction with our updated capital expenditure plan, we also expect to make additional regulatory filings later this year in both Iowa and Wisconsin for renewables and dispatchable resources to enhance reliability, further diversify our energy resources and meet growing customer energy demands. We thank you for your continued support and look forward to speaking with many of you in the coming months.

[Robert Durian, EVP and CFO at Alliant Energy]

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

[Operator]

Thank you, Mr. Durian. At this time, the company will open up the call to questions for members of the investment community. Your first question comes from the line of Shar Pourreza from Guggenheim Partners. Please ask your question.

[James Kennedy, Vice President at Guggenheim Partners]

Hey, guys. Good morning. It's actually James on for Shar.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Good morning.

[James Kennedy, Vice President at Guggenheim Partners]

So starting off, I think, with slide four, is there a general timeline you could share for converting the mature opportunities to contracts? And then secondly, could you just put maybe, like, a finer point on the breakdown of how you could serve those mature opportunities between existing and new gen? Like, what's the headroom left on your system? Thanks.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Yeah. Thank you for the question. So how we have been talking about all of our economic development opportunities is that once we have signed ESAs, we're putting that information out there. In terms of the what we do not yet have signed ESAs for, those are ones that we have a fairly high confidence level. We have had a number of discussions and negotiations with those folks.

[Lisa Barton, Director, President & CEO at Alliant Energy]

So we have a high level of confidence and that's why we're sharing that. However, we are making that differentiation between those that have executed ESAs and those that don't. One of the things that we've certainly shared in the past, we have length. We have near term length and we're using that to be able to accelerate load growth in our territory. That's what we're doing with one of the customers in the Big Cedar facility.

[Lisa Barton, Director, President & CEO at Alliant Energy]

And we have had interest in others as well. So we're very bullish on that. But as you know, it's going to be an all of the above solution. We have short term PPAs in the plan. We'll have new developments.

[Lisa Barton, Director, President & CEO at Alliant Energy]

We'll constantly look at evaluating our existing generation in the portfolio that we currently have and looking to see if there are opportunities to get more capacity out of the existing facilities that we have.

[James Kennedy, Vice President at Guggenheim Partners]

Okay, perfect. And then just on the tax side, I know you had a clause in the Iowa stay out, that you could go back in if policy changed significantly. Does the safe harboring work you guys laid out today mean that that's off the table right now? Thanks.

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah, great question, James. Yeah, as we think for those that may not be familiar, as we entered into the rate settlement last year that provides the rate moratorium for the next five years, we did have a provision within it that allowed us to go back in for a rate case if for some reason there was any changes to any major legislation. With that said, we're really focused right now on activities to avoid the need to go back in. We're advocating for kind of provisions within the legislation that would be beneficial to our customers. As we noted, we're making great progress with the safe harbor activities.

[Robert Durian, EVP and CFO at Alliant Energy]

And lastly, we're really trying to accelerate the load growth we see with some of our data center customers and other customers that would help prevent the need to do that. So our focus right now is regardless of the outcome of the legislation is to really position us to be able to meet all of our stakeholder expectations including sharers without the need to go back in.

[James Kennedy, Vice President at Guggenheim Partners]

Excellent.

[Lisa Barton, Director, President & CEO at Alliant Energy]

We do have a number of batteries that are in the plan for next year and we're very well positioned with respect to those batteries.

[Robert Durian, EVP and CFO at Alliant Energy]

Understood. Thank you.

[Operator]

Your next question is from the line of Nicolas Campanella from Barclays. Please ask your question.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Hi, Nick.

[Nicholas Campanella, Director at Barclays]

Hey. Good morning, everyone. Thanks for taking my questions, and thanks for all the updates. Hey.

[Nicholas Campanella, Director at Barclays]

I just wanted to ask, you guys gave a lot of good disclosure. Rate base is moving higher. You're adding a little bit of equity. Do you still see this as a 5% to 7% long term EPS CAGR? And any kind of comments on how you're trending in that plan now?

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah. Great question, Nick. Yeah, kind of right now we continue on our long track record of consistent and predictable growth. Really, we're focused on enhancing the sustainability and longevity of those growth rates. Think of this as we're focused on cascading the growth over time really to strengthen and lengthen that growth rate.

[Robert Durian, EVP and CFO at Alliant Energy]

This quarter updates really demonstrate that with the increase of the investment CAGR up to 11%, while we're still retaining the ability to grow beyond the announced CapEx plan through 2028. So I think we're really set up well for strong load growth and investments with elevated CapEx starting in that 2027 timeframe. So really, I think I'd be disappointed if we're not towards the top end of our stated currently stated growth rate starting in 2027.

[Lisa Barton, Director, President & CEO at Alliant Energy]

And Nick, one of the things that I just want to highlight and I talked about it briefly in the script is what we see is the Alliance Energy Advantage. We are actively focused on building cascading waves of growth. We see ourselves as the backbone of our communities and we are committed to fueling their success and allowing our communities to reach their economic development aspirations. So we remain focused on growing at the pace of our customers. We have the regulatory constructs that we need in both jurisdictions to do that, both with the one in Iowa, with the way that is set up as well as the cadence that we have in Wisconsin.

[Lisa Barton, Director, President & CEO at Alliant Energy]

It really allows us to grow at the pace of our customers. Also the fact that we don't have litigated resource planning processes. They're highly flexible. We can go in at any time to our states. That is a huge differentiator, I believe between us and a lot of other entities out there.

[Lisa Barton, Director, President & CEO at Alliant Energy]

We also have that robust length in our Q positions as well as near term length, which allows us to accelerate just as we have in our big Cedar facility in Iowa. So wrapping a bow around that, that's the Alliant Energy advantage that we are focusing on over the long term.

[Nicholas Campanella, Director at Barclays]

I really appreciate all those comments. That was helpful. And then just one quick one on the transferability and tax commentary. I know you kind of talked about you'd use a mix of debt equity hybrids. You could go look at using traditional tax equity.

[Nicholas Campanella, Director at Barclays]

Maybe just if you lost $1 of transferability, like how much equity do you think you'd actually have to do?

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah, Nick, this is Robert. So yeah, it's dependent upon the terms within any proposed legislation. I'd say we're cautiously optimistic as we've heard different versions of the potential legislative provisions that there's probably going to be some type of phase out And so as we think about our plan, we feel really well protected for the next few years, thanks to our safe harbor activities. As I indicated in some of my prepared remarks, if you look at the amount of tax credits that we plan to monetize in the next four years, a significant majority, better than 95% of it comes from projects that are already in service or projects that we say for our prior to 2025.

[Robert Durian, EVP and CFO at Alliant Energy]

And with that, we wouldn't expect to need much additional financing over the next four years. But if we were to need some additional financing, I would say that we would continue down our path of maintaining a really strong balance sheet. So think of that as somewhere between probably 4050% of any new financing needs would come to the form of equity to maintain that strong balance sheet.

[Lisa Barton, Director, President & CEO at Alliant Energy]

One thing I'll draw your attention to as well Yeah. Hi. Lisa here. Just wanna draw your attention to the May letter that was put out by 12 house Republicans. And basically, in that letter that was issued yesterday, it was strongly supporting the IRA and its provisions.

[Lisa Barton, Director, President & CEO at Alliant Energy]

And I will note there was very strong support from our Iowa delegation there as well.

[Nicholas Campanella, Director at Barclays]

Certainly noted. Thank you for that. And just on the comments on the balance sheet, just I guess you kind of highlighted 13% to 14% at S and P, fourteen percent to 15% at Moody's. Kind of where do you kind of see yourself today against those metrics?

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah. We're in a great position right now, Nick, for 2025 for both of those towards the upper end of the S and P and squarely kind of in the middle of the Moody's range right now.

[Nicholas Campanella, Director at Barclays]

Thank you. Have a good one. We'll see you at AGA.

[Robert Durian, EVP and CFO at Alliant Energy]

Thanks, Nick.

[Operator]

Your next question is from the line of Paul Freeman from Ladenburg. Please ask your question.

[Paul Fremont, Managing Director at Ladenburg Thalmann]

Thank you very much, and congratulations on a on a really great quarter.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Thanks,

[Paul Fremont, Managing Director at Ladenburg Thalmann]

Does the ICR structure provide you with an opportunity to provide a similar type of stay out in Wisconsin as you've achieved in Iowa?

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah. I would have characterized our our WPL kind of regulatory construct is they ask us to come in every two years for our rates case. It doesn't mean you have to ask for an increase. So when you do that and so we're really working on trying to grow load, trying to reduce costs so that if we were to come in every two years like I said, we would try and minimize the customer cost impact. So I think you get a similar result as we continue to grow the business and the sales and try and reduce costs.

[Robert Durian, EVP and CFO at Alliant Energy]

You could still achieve what we call base rates being flat for the next five years, similar to what we are targeting in in Iowa.

[Paul Fremont, Managing Director at Ladenburg Thalmann]

Right. And then, in terms of your equity need, would you consider using junior subordinated debt as in order to meet your equity requirement?

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah. We're taking kind of all different options into consideration. The great thing about our financing plan is we have a lot of flexibility. As I indicated in my prepared remarks, we are launching an ATM program here in the near future. That will provide us some flexibility as to the timing of any equity issuance.

[Robert Durian, EVP and CFO at Alliant Energy]

And we also have flexibility when it comes to hybrids as we consider all different types of options in the future. I feel like we're really set up well for that. And so, yeah, junior subordinates are in the discussion. We haven't made any commitments at this point, and we'll continue to provide more updates throughout the year as to kind of our thinking on that in the future.

[Paul Fremont, Managing Director at Ladenburg Thalmann]

And then you sort of in your regulatory discussion talk about filings in Iowa and Wisconsin for additional generation resources. Can you give a sense in terms of in megawatts, how much in each of those states you're looking to add?

[Robert Durian, EVP and CFO at Alliant Energy]

Paul. I'd point you to the there's a slide within our supplemental slides that lays out what would be considered our new resource plan when it comes to natural gas, batteries and wind. You can get a sense of the magnitude of the volume of each one of those different categories. The stuff towards the kind of earlier years of our plan expect us to be filing here in the near future. The later part of the plan would probably be maybe a couple of years down the road.

[Robert Durian, EVP and CFO at Alliant Energy]

We haven't identified specific megawatts, but that should give you some indication of the volumes that we're interested in.

[Paul Fremont, Managing Director at Ladenburg Thalmann]

And then last question for me. The enhancement at Riverside, what exactly does that entail?

[Robert Durian, EVP and CFO at Alliant Energy]

Yes. Think of that as a black start facility. So it helps with resiliency and reliability for the entire system in the state of Wisconsin. And so those would be, call them diesel generators, gas generators that would be effective have been able to restart the system in case of any type of blackout.

[Paul Fremont, Managing Director at Ladenburg Thalmann]

Great. Thank you so much. That's it for me.

[Operator]

Your next question comes from the line of Andrew Wiesel from Scotiabank. Please ask your question.

[Andrew Weisel, Director at Scotiabank]

Hey, good morning everybody. Hey,

[Lisa Barton, Director, President & CEO at Alliant Energy]

Good morning.

[Andrew Weisel, Director at Scotiabank]

If I could first elaborate on the equity question a little bit. First, would the ATM presumably be large enough to satisfy the 1,400,000,000.0 over years? Would you consider a forward or a block perhaps? And in terms of timing, would I be correct to think it might be more back end loaded or would you think it might be ratable '26 through '28?

[Robert Durian, EVP and CFO at Alliant Energy]

Yes. So we've announced as part of our updated financing plan that we foresee the need for about $1,400,000,000 of new common equity through 2028. We normally raise about $25,000,000 a year through our share of direct plans. So that would be roughly about $100,000,000 of that total. And then the remaining 1,300,000,000.0 could be in the form of an ATM over time or it could be some type of forward transaction.

[Robert Durian, EVP and CFO at Alliant Energy]

We have a lot of flexibility with that that we'll continue to evaluate different market conditions over time, determine what we best want to do there. Regarding the timing question, right now the financing plan assumes that that $1,300,000,000 would come in ratably from 2026 through 2028. But like I said, we have a lot of flexibility with that, so we would consider market conditions and then potentially think about modifications of the timing of that if we saw the right opportunity.

[Andrew Weisel, Director at Scotiabank]

Okay, great. That's helpful. And then forgive me if I missed it, but what exactly was added to the CapEx plan? It obviously went up by $600,000,000 give or take. Was that more generation or wires?

[Andrew Weisel, Director at Scotiabank]

And if it was generation, can you tell us what was the technology or technologies and the timing?

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah. The biggest component of that was on the generation side, specifically natural gas generation. Think of that as we continue to build out more load from these data center opportunities, We need capacity resources to be able to meet the peak demand of those customers. And so again, back to the supplemental slide seven, we've identified 1.5 gigawatts of new natural gas facility load through 02/1930 and the biggest component of that CapEx increase was associated with that natural gas generation.

[Andrew Weisel, Director at Scotiabank]

Okay. Very good. Thanks so much.

[Operator]

Your next question is from the line of Ross Fowler from Bank of America. Please ask your question.

[Rinny Singh, Equity Research Analyst at Bank of America]

Good morning, guys. It's actually Renny here for Ross. I just had a quick question about the MISO capacity auction. And I guess, how do you guys see that impacting consumer bills in the regulatory landscape?

[Robert Durian, EVP and CFO at Alliant Energy]

Yes. We're actually very well positioned. It's a good question given of the results of that auction, specifically the summer capacity prices being more elevated, we're taking advantage of that length right now and selling that excess capacity into the market and we use those proceeds to actually help our customer bills. Unfortunately, I think some other folks may be on the other side of that where they may be short and suffering some more challenges when it comes to customer bills. But we're very well positioned there and we're going to continue to try and be well positioned as we think that's a more longer term trajectory as far as seeing higher elevated prices in the capacity market, which really supports our desire to want to continue to build new generation to support our customer demand.

[Rinny Singh, Equity Research Analyst at Bank of America]

Okay, makes sense. And then just secondly, how do you guys view potential rover legislation in Wisconsin? And what I guess, what effect would that have on CapEx?

[Lisa Barton, Director, President & CEO at Alliant Energy]

Good morning. In terms of in both states, there's actually rover legislation. As we look at it from a Wisconsin standpoint and what's ATC's investment opportunities are, they'd be likely stronger with a ROFR. However, ATC, like all other transmission providers, will position itself to be competitive should a ROFR not be supported in the state. But none of that is reflected in our CapEx plan, even the tranche 2.2 is outside of the window that you see here.

[Lisa Barton, Director, President & CEO at Alliant Energy]

There's a lot of projects that have been allocated to ATC that are still not in our CapEx plan because they go into those outer years. Lots of great upside.

[Rinny Singh, Equity Research Analyst at Bank of America]

Okay. Makes sense. All right. Thank you, guys.

[Operator]

The last question is from the line of Paul Zimbardo from Jefferies.

[Paul Zimbardo, Managing Director at Jefferies]

Please go ahead. Hi, good morning. Thank you team.

[Lisa Barton, Director, President & CEO at Alliant Energy]

Hi, Paul.

[Andrew Weisel, Director at Scotiabank]

Hi. First,

[Paul Zimbardo, Managing Director at Jefferies]

I wanted to clarify on Nick's question a little bit on the EPS CAGR and pointing to the top or near the top. Is it correct that's reflecting the current capital plan and any of the incremental opportunities that you've discussed a lot, like the mature opportunities, etcetera, that'll be incremental to that? Or kind of were you thinking like this is a little bit of a preview of what you could be contemplating as well?

[Robert Durian, EVP and CFO at Alliant Energy]

Yeah, I would characterize that statement as far as being disappointed if we're not towards the top end of that range by 2027 based on our current plan. We're going to continue to try and work on identifying further opportunities with further data center load growth and other economic development activities which would be upside to our plan going forward.

[Paul Zimbardo, Managing Director at Jefferies]

Okay, excellent. That's what I thought. And then if I could ask a little bit more color on the tariff commentary, I believe you said 20% tariffs on the batteries and most of them are secured or in transit. Just could you give a little detail, did you change the sourcing strategy? Was this kind of offsets embedded contracts?

[Paul Zimbardo, Managing Director at Jefferies]

Because it's a favorably lower number than I think a lot of your peers in industry have been discussing. So good to hear.

[Lisa Barton, Director, President & CEO at Alliant Energy]

We had worked really hard to get ahead of that. And one of the things to note is still with that 20% tariffs that would be imposed on those batteries, that's still the lowest cost in terms of those batteries from China are still lower cost than domestically produced. So we're feeling very comfortable with where we are and our in service dates here this year.

[Paul Zimbardo, Managing Director at Jefferies]

Okay. And so you said those are Chinese batteries for that 20% tariff?

[Lisa Barton, Director, President & CEO at Alliant Energy]

They are.

[Paul Zimbardo, Managing Director at Jefferies]

Okay.

[Paul Zimbardo, Managing Director at Jefferies]

Okay. Thank you very much, team.

[Operator]

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

[Susan Gille, Manager of Investor Relations at Alliant Energy]

With no more questions, this concludes our call. A replay will be available on our investor website. We thank you for your continued support of Alliant Energy, and feel free to contact me with any follow-up questions.

[Operator]

This concludes today's conference call. Thank you very much for your participation.

[Operator]

You may now disconnect.

Participants

Executives

• Susan Gille, Manager of Investor Relations
• Lisa Barton, Director, President & CEO
• Robert Durian, EVP and CFO

Analysts

• James Kennedy, Vice President at Guggenheim Partners
• Nicholas Campanella, Director at Barclays
• Paul Fremont, Managing Director at Ladenburg Thalmann
• Andrew Weisel, Director at Scotiabank
• Rinny Singh, Equity Research Analyst at Bank of America
• Paul Zimbardo, Managing Director at Jefferies