Alliant Energy Corporation Supplemental Information November 3, 2017 Earnings Call

Transcription

1 Alliant Energy Corporation Supplemental Information November 3, 2017 Earnings Call Forward Looking Statements The information regarding forecasted earnings per share, forecasted capital expenditures, forecasted effective income tax rates, and regulatory plans contain 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 2, 2017 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 Midpoint of 2018 EPS Guidance $2.20 $2.10 $2.11 $2.00 $1.90 $1.88 (a) $1.99 (b) 6% increase 6% increase $1.80 $1.70 $1.60 $ Non-GAAP temperature normalized 2017E Non-GAAP temperature normalized 2018E (a) 2016 GAAP earnings from continuing operations were $1.65. Non-GAAP EPS adjustment was ($0.23) for a valuation charge related to the Franklin County Wind Farm. (b) 2017 forecasted GAAP earnings from continuing operations are $1.91. Non-GAAP EPS adjustments are ($0.06) for temperature and ($0.02) for write down of regulatory assets due to the proposed IPL electric rate review settlement. The 2017 and 2018 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, discontinued operations, further impacts from anticipated changes to ATC s authorized return on equity, future changes in laws or regulations including potential tax reform, adjustments made to deferred tax assets and liabilities from valuation allowances and organizational structure changes, pending lawsuits and disputes, federal and state income tax audits and other Internal Revenue Service proceedings or changes in GAAP and tax methods of accounting that may impact the results. 2

3 Capital Expenditures Drive Rate Base Growth (excluding AFUDC) $2,000 $1,800 $6.9 billion over 5 years $1,720 $1,675 $1,600 $1,485 in millions $1,400 $1,200 $1,000 $1,000 $1,000 $800 $600 $400 $200 $ Other $210 $130 $110 $125 $100 Renewable Projects $180 $655 $850 $140 $85 West Riverside Energy Center $235 $225 $90 $10 $0 Marshalltown Generating Station $30 $0 $0 $0 $0 Other Generation $220 $140 $95 $150 $140 Gas Distribution $130 $130 $95 $90 $115 Electric Distribution $480 $440 $435 $485 $560 Depreciation $460 $505 $565 $625 $665 3

4 Capital Expenditures Walk (in millions) K Capital Expenditures $1,400 $1,445 $1,560 $1,155 Renewable Projects (120) Other Generation (20) (40) (75) (10) Other 30 (30) 30 (25) Q Q Capital Expenditures $1,485 $1,720 $1,675 $1,000 4

5 Q to Q GAAP Earnings Walk Q GAAP earnings per share from continuing operations $0.57 Higher margins from IPL interim retail electric base rate increase 0.09 Higher depreciation expense (0.04) Estimated temperature impact on retail electric and gas sales (0.04) Allowance for funds used during construction related to the Marshalltown Generating Station in 2016 (0.03) Higher margins from WPL retail electric and gas base rate increase 0.02 Lower income tax expense at IPL due to Iowa rate-making practices 0.02 Higher energy efficiency cost recovery amortization at WPL (0.02) Write down of regulatory assets due to the proposed IPL electric rate review settlement (0.02) Charges related to cancelled software projects in 2017 (0.02) Total Utilities, ATC Investment and Corporate Services variances (0.04) Asset valuation charges for Franklin County wind farm in Other (primarily related to timing of income tax expense, including impacts of tax benefit rider) (0.03) Total Non-regulated and Parent variances 0.20 Q GAAP earnings per share from continuing operations $0.73 5

6 Q to Q GAAP to Non-GAAP Earnings Walk Q GAAP earnings per share from continuing operations $0.57 Asset valuation charges for Franklin County wind farm in Q adjusted (non-gaap) earnings per share from continuing operations 0.80 Higher margins from IPL interim retail electric base rate increase 0.09 Higher depreciation expense (0.04) Estimated temperature impact on retail electric and gas sales (0.04) Allowance for funds used during construction related to the Marshalltown Generating Station in 2016 (0.03) Higher margins from WPL retail electric and gas base rate increases 0.02 Lower income tax expense at IPL due to Iowa rate-making practices 0.02 Higher energy efficiency cost recovery amortization at WPL (0.02) Charges related to cancelled software projects in 2017 (0.02) Other (primarily related to timing of income tax expense, including impacts of tax benefit rider) (0.03) Q adjusted (non-gaap) earnings per share from continuing operations $0.75 Write down of regulatory assets due to the proposed IPL electric rate review settlement (0.02) Q GAAP earnings per share from continuing operations $0.73 6

7 Q to Q Utilities, ATC Investment and Corporate Services GAAP Earnings Variances IPL WPL, excluding ATC Investment ATC Investment and Corporate Services Higher margins from IPL interim retail electric base rate increase $0.09 $-- $-- $0.09 Higher depreciation expense (0.03) (0.01) -- (0.04) Estimated temperature impact on retail electric and gas sales (0.02) (0.02) -- (0.04) Allowance for funds used during construction related to Marshalltown Generating Station in 2016 (0.03) (0.03) Higher margins from WPL retail electric and gas base rate increases Lower income tax expense at IPL due to Iowa rate-making practices Higher energy efficiency cost recovery amortization at WPL -- (0.02) -- (0.02) Write down of regulatory assets due to the proposed IPL electric rate review settlement (0.02) (0.02) Charges related to cancelled software projects in 2017 (0.01) (0.01) -- (0.02) Other 0.02 (0.02) Total Utilities, ATC Investment and Corporate Services $0.02 ($0.06) $-- ($0.04) Total 7

8 Mid-Point of 2017 to Mid-point of 2018 Consolidated Earnings Guidance Walk Utilities, and Corp. Services ATC Investment, Non-Reg. and Parent 2017 GAAP EPS from continuing operations $1.78 $0.13 $1.91 Write down of regulatory assets due to the proposed IPL electric rate review settlement Estimated temperature impact on retail electric and gas sales Non-GAAP Temperature Normalized EPS from continuing operations Higher margins from IPL retail electric and gas base rate increases Lower transmission cost recovery amortizations at WPL Lower energy efficiency cost recovery amortizations at WPL Higher depreciation expense (0.15) -- (0.15) Higher AFUDC Higher interest expense (0.07) -- (0.07) Equity dilution (0.03) -- (0.03) Other Forecasted EPS Midpoint $1.98 $0.13 $2.11 AEC 8

9 Forecasted 2017 and Forecasted 2018 Statutory versus Overall Annual Effective Tax Rates AEC IPL WPL 2018 (a) 2017 (a) 2018 (a) 2017 (a) 2018 (a) 2017 (a) Statutory federal income tax rate 35% 35% 35% 35% 35% 35% IPL s tax benefit riders (b) (2) (8) (5) (20) Effect of rate-making on property-related (9) (9) (17) (21) (3) (2) differences Production tax credits (5) (6) (5) (7) (6) (7) Other items, net Overall income tax rate 24% 15% 14% (9%) 31% 31% (a) Forecasted (b) The tax impact of IPL s tax benefit riders are forecasted to total $42.9 million in 2017 and $14.6 million in

10 Key Regulatory Initiatives Estimated Interstate Power and Light Company Key Dates Iowa Utilities Board Decision regarding Retail Electric Base Rate Review Test Year 2016 (RPU ) Q Decision regarding Wind Expansion Advance Ratemaking Principles (RPU ) Q File Energy Efficiency Plan Q File Retail Gas Base Rate Review Test Year 2017 Q Federal Energy Regulatory Commission Decision regarding authorized return on equity (ROE) amounts for MISO transmission owners second H complaint Wisconsin Power and Light Company Public Service Commission of Wisconsin Decision on Electric Fuel-only Rate Case Test Year 2018 (6680-FR-109) Q File request to purchase an interest in Forward Wind Energy Center Q File for Wind Expansion Construction Authority Q File Retail Electric and Gas Rate Review Test Periods 2019 and 2020 Q Federal Energy Regulatory Commission Decision regarding authorized ROE amounts for MISO transmission owners second complaint H