01—Abstract
Summary
Summary of the 10-K filed February 16, 2024. Cited figures are marked; the original filing is the authoritative source.
Alliant Energy Corporation is a regulated, investor-owned public utility holding company headquartered in Madison, Wisconsin, serving approximately 1,000,000 electric and approximately 425,000 natural gas customers in the Midwest through its utility subsidiaries Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL).
Its strategy centers on a Clean Energy Blueprint for transitioning to cleaner energy, with WPL completing 639 MW of solar in 2023 and expecting roughly 1,500 MW of additional zero-fuel-cost solar resources in aggregate by the end of 2024 across Alliant Energy. Alliant Energy reported 2023 consolidated net income attributable to common shareowners of $703 milliona, or $2.78 per share, compared with $686 million, or $2.73 per share, in 2022. Utilities and Corporate Services net income rose $34 million, driven by higher revenue requirements and AFUDC from capital investments.
The company plans substantial capital spending, with construction and acquisition expenditures of $2,275 millionb in 2024 and $1,980 million in 2025 on a consolidated basis, and management has forecast capital expenditures of approximately $9 billion over the next four years. Financing needs are expected to be met through long-term debt and common stock issuance, and the 2024 annual dividend target was raised to $1.92 per share. Key risks noted in the filing include regulatory outcomes on rate relief, cost overruns on solar projects (WPL reported construction costs expected to exceed approved amounts by approximately $180 million), coal plant retirements, MISO resource adequacy changes, cybersecurity, and credit rating and capital market access.
02—Key points
Key Highlights
- 2023 consolidated net income of $703 million, or $2.78 per share, up from $686 million, or $2.73 per share, in 2022.
- Planned construction and acquisition expenditures of $2,275 million in 2024, with about $9 billion of capital expenditures forecast over the next four years.
- WPL completed 639 MW of solar generation in 2023 and expects to add 200 MW in 2024; IPL expects to complete 400 MW of solar generation by the end of 2024.
- Targeted 2024 annual common stock dividend increased to $1.92 per share, equivalent to $0.48 quarterly, a 6% increase.
- WPL estimates solar construction costs will exceed PSCW-approved amounts by approximately $180 million; the PSCW issued an oral decision in February 2024 approving a deferral to seek recovery in a future proceeding.
- IPL filed a retail electric and gas rate review in October 2023 requesting annual increases of $160 million for electric and $14 million for gas, with a decision expected in the third quarter of 2024.
- Alliant Energy's consolidated debt-to-capital ratio was 59% against a 65% covenant requirement, and credit ratings were stable at the utility subsidiaries, with WPL's corporate rating outlook at Negative from S&P.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Alliant Energy kept $0.17.
- Revenue$4.03B100.0%
- Cost of revenue−$583.0M14.5%
- Gross profit$3.44B85.5%
- Operating costs−$2.50B62.1%
- Operating income$943.0M23.4%
- Interest, other & tax−$240.0M6.0%
- Net income$703.0M17.5%
Where FY2023 revenue went
$4.03B- Operating costs: $2.50B, 62% of revenue
- Net income: $703.0M, 17% of revenue
- Cost of revenue: $583.0M, 14% of revenue
- Interest, other & tax: $240.0M, 6.0% of revenue
Kept 17% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 16, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $4.03B$4.21B | −4.2% |
| Cost of Revenue | $583.00M$573.00M | +1.7% |
| Gross Profit | $3.44B$3.63B | −5.2% |
| Operating Expenses | $3.08B$3.28B | −5.9% |
| Operating Income | $943.00M$928.00M | +1.6% |
| Interest Expense | $394.00M$325.00M | +21.2% |
| Net Income | $703.00M$686.00M | +2.5% |
| EPS (Basic) | $2.78$2.73 | +1.8% |
| EPS (Diluted) | $2.78$2.73 | +1.8% |
| Shares Outstanding (Basic) | 253.00M250.90M | +0.8% |
| Shares Outstanding (Diluted) | 253.30M251.20M | +0.8% |
05—Questions
Frequently Asked Questions
What drove the increase in Alliant Energy's 2023 earnings?
Utilities and Corporate Services net income increased by $34 million in 2023 compared to 2022, primarily due to higher revenue requirements and AFUDC from capital investments, along with lower other operation and maintenance expenses at IPL and WPL. These were partially offset by higher interest expense, lower retail electric and gas sales primarily due to temperature impacts, and higher depreciation expense.
How much capital does Alliant Energy plan to invest?
Anticipated consolidated construction and acquisition expenditures are $2,275 million in 2024, $1,980 million in 2025, $2,435 million in 2026 and $2,365 million in 2027. The company's risk factors also state it has forecasted capital expenditures of approximately $9 billion over the next four years.
What are the main risks to the solar investment program?
The filing notes that WPL has notified the PSCW its solar development costs exceed approved amounts, with estimated overruns of about $180 million, and IPL expects its 400 MW solar construction costs to exceed the IUB cost target by approximately 10%. The company states it concluded there was no probable disallowance as of December 31, 2023, but recovery of these costs in rates is not guaranteed.
What is the dividend outlook?
Alliant Energy announced a targeted 2024 annual common stock dividend of $1.92 per share, equivalent to $0.48 per quarter beginning with the February 2024 payment. The company's long-term goal is a dividend payout ratio of approximately 60% to 70% of consolidated earnings from continuing operations, and future dividends remain subject to Board declaration.
06—Continue