Alliant Energy Corporation Supplemental Information November 7, 2018 Earnings Call

Transcription

1 Alliant Energy Corporation Supplemental Information November 7, 2018 Earnings Call Forward Looking Statements The information regarding forecasted earnings per share, forecasted capital expenditures, forecasted effective income tax rates and regulatory plans contains forward-looking statements. Actual results could differ materially because the realization of those results is subject to many uncertainties, including: the state of the economy in the service territories of IPL and WPL; state and federal legislation and regulatory actions; weather; and other factors discussed in more detail in Alliant Energy Corporation s earnings release dated November 6, 2018 and in Alliant Energy s SEC filings. Alliant Energy cannot provide any assurance that the assumptions used in the forward-looking statements or otherwise are accurate or will prove to be correct. All forwardlooking statements included in this presentation are based upon information presently available, and Alliant Energy assumes no obligation to update any forward-looking statements. 1

2 2016 and 2017 Non-GAAP temperature normalized EPS versus mid-point of 2018 Non-GAAP temperature normalized EPS guidance and mid-point of 2019 EPS guidance 6% increase $2.24 $2.20 $2.00 6% increase $1.88 6% increase $1.99 $2.11 $1.80 $1.60 $ (a) 2017 (b) 2018 (c) 2019 (d) Period Ending (a) 2016 GAAP EPS from continuing operations was $1.65. Non-GAAP EPS adjustment was ($0.23) for a valuation charge related to the Franklin County wind farm. (b) 2017 GAAP EPS from continuing operations was $1.99. Non-GAAP EPS adjustments were ($0.06) for temperature impacts, $0.08 related to Federal Tax Reform and ($0.02) for net write-down of regulatory assets due to IPL electric rate review. (c) 2018 midpoint of GAAP EPS guidance range is forecasted to be $2.18. Non-GAAP EPS adjustments are $0.05 for temperature impacts and $0.02 related to Federal Tax Reform. (d) 2019 midpoint of EPS guidance range. 2

3 Capital Expenditures Drive Rate Base Growth (excluding AFUDC) $2,000 $7.0 billion over 5 years $1,740 $1,610 $1,500 $1,285 $1,310 $ (Millions) $1,000 $500 $1,045 Renewables West Riverside Other Generation Electric Distribution Gas Distribution Other $

4 Capital Expenditures Walk (in millions) K Capital Expenditures $ 1,720 $ 1,675 $ 1,000 $ 1,000 Gas distribution systems Electric distribution systems Renewable projects 55 (205) 60 (70) Other (50) Q 10-Q Capital Expenditures $ 1,740 $ 1,610 $ 1,285 $ 1,045 4

5 Q to Q Utilities and Corporate Services GAAP Earnings Variances IPL WPL Corporate Services Total Utilities and Corporate Services: Higher margins primarily from earning on increasing rate base (a) $0.03 $0.02 $ $0.05 Estimated temperature impact on retail electric and gas sales Higher depreciation expense (0.04) (0.04) Higher allowance for funds used during construction Tax return adjustments due to Federal Tax Reform in Write-down of regulatory assets in 2017 due to the IPL electric rate review settlement Other (0.03) Total Utilities and Corporate Services $0.02 $0.11 $ $0.13 (a) Higher margins from earning on increasing rate base - IPL due to higher margins from retail electric base rate increase WPL due to higher margins from lower transmission cost recovery amortizations 5

6 Q to Q GAAP to Non-GAAP Earnings Walk Q GAAP earnings per share from continuing operations $0.73 Write-down of regulatory assets in 2017 due to the IPL electric rate review settlement $0.02 Q adjusted (non-gaap) earnings per share from continuing operations 0.75 Utilities and Corporate Services: Higher margins primarily from earning on increasing rate base 0.05 Estimated temperature impact on retail electric and gas sales 0.04 Higher depreciation expense (0.04) Higher allowance for funds used during construction 0.03 Other 0.02 Q adjusted (Non-GAAP) earnings per share from continuing operations 0.85 Tax return adjustments due to Federal Tax Reform 0.02 Q GAAP earnings per share from continuing operations $0.87 6

7 Mid-point of 2018 to Mid-point of 2019 Consolidated Earnings Guidance Walk 2018 forecasted Non-GAAP EPS $2.16 Estimated temperature impact on retail electric and gas sales (0.05) 2018 forecasted Non-GAAP temperature normalized EPS 2.11 Higher revenue requirements primarily due to increasing rate base 0.53 Higher depreciation expense (0.19) Higher interest expense (0.11) Equity dilution (0.08) Other (0.02) 2019 forecasted EPS mid-point $2.24 7

8 Forecasted 2018 and 2019 Statutory versus Overall Annual Effective Tax Rates AEC IPL WPL 2019 (a) 2018 (a) 2019 (a) 2018 (a) 2019 (a) 2018 (a) Statutory federal income tax rate 21% 21% 21% 21% 21% 21% State income taxes, net of federal benefits Production tax credits (PTCs) (b) (9) (5) (14) (5) (5) (7) Effect of rate-making on property-related differences (6) (7) (10) (13) (2) (2) Amortization of excess deferred taxes (2) (2) (1) IPL s tax benefit riders (c) (1) (2) (2) (5) Adjustment of prior period taxes (2) (5) Impact of Federal Tax Reform adjustments (d) (1) (2) Other items, net (1) (1) (1) (1) (1) (1) Overall income tax rate 9% 10% 1% 1% 18% 15% (a) Forecasted (b) 2019 PTCs reflect new PTCs generated by IPL s Upland Prairie and English Farms wind farms to be placed in service in Q (c) IPL s tax benefit riders are forecasted to reduce tax expense by $13 million in 2018 and $5 million in (d) During the third quarter of 2018, additional rules were issued for Federal Tax Reform, including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for the calendar year As a result of these clarifying rules, AEC and WPL recorded $6 million of tax benefits in the third quarter of

9 Financing Plan Update ($ in millions) 2018 Plan 2018 Completed Financings 2019 Plan Equity Common Equity up to $200 ~$190 up to $400 Long-Term Debt Issuances Maturities Issuances Maturities Interstate Power and Light $500 $350 $500 of 4.10% ten year Green Bond senior debentures up to $600 $ Wisconsin Power and Light $ $ up to $400 $250 Alliant Energy Finance $1,000 $595 (a) $300 of variable rate two year term loan (a) Includes $95 million short-term debt maturity $400 of 3.75% five year senior notes $300 of 4.25% ten year senior notes 9

10 Key Regulatory Initiatives Interstate Power and Light Iowa Utilities Board Decision regarding Retail Electric Base Rate Review - Test Year 2016 (RPU ) Decision regarding Wind Expansion Advance Ratemaking Principles (RPU ) Decision regarding ratemaking treatment of the effect of Tax Cuts and Jobs Act of 2017 (INU ) Estimated Dates Decision regarding Retail Gas Base Rate Review - Test Year 2017 (RPU ) Q Decision regarding DAEC PPA Amendment (SPU ) Q Decision regarding Energy Efficiency Plan (EEP ) Q File IPL Retail Base Rate Review (both historical test year 2018 for electric and one or more future forecasted test periods for electric and gas) Q Federal Energy Regulatory Commission (FERC) Decision regarding authorized ROE amounts for MISO transmission owners' second complaint H Wisconsin Power and Light Public Service Commission of Wisconsin Decision regarding the purchase of an interest in Forward Wind Energy Center (5-BS-101) Decision regarding ratemaking treatment of the effect of Tax Cuts and Jobs Act of 2017 (05-AF-101) Decision regarding Retail Electric and Gas Rate Review - Test Periods 2019 and 2020 (6680-UR-121) Decision regarding Wind Expansion Construction Authority (6680-CE-181) Q FERC Decision regarding the purchase of an interest in Forward Wind Energy Center (FERC 203 filing) Decision regarding authorized ROE amounts for MISO transmission owners' second complaint H