Alliant Energy Corporation Supplemental Information February 22, 2019 Earnings Call

Transcription

1 Alliant Energy Corporation Supplemental Information February 22, 2019 Earnings Call Forward Looking Statements The information regarding forecasted earnings per share, 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 February 21, 2019 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 forward-looking 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 Consistent Earnings Growth $2.24 $2.20 $2.11 $2.00 $1.99 6% increase $1.88 $1.80 6% increase 6% increase $1.60 $ (a) 2017(b) 2018(c) 2019(d) (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 settlement. (c) 2018 GAAP EPS from continuing operations was $2.19. Non-GAAP EPS adjustments were $0.06 for net temperature impacts and $0.02 related to Federal Tax Reform. (d) 2019 midpoint of EPS guidance range. 2

3 2017 to 2018 GAAP to Non-GAAP Earnings Walk 2017 GAAP earnings per share from continuing operations $1.99 Adjustments related to Federal Tax Reform ($0.08) Net write-down of regulatory assets due to IPL's electric rate review settlement Non-GAAP earnings per share from continuing operations 1.93 Utilities, ATC, and Corporate Services: Higher margins primarily from earning on increasing rate base 0.24 Higher depreciation expense (0.16) Net temperature impact on retail electric and gas sales 0.12 Higher interest expense (0.10) Higher allowance for funds used during construction 0.08 Lower energy efficiency amortization costs at WPL 0.04 Higher equity income (primarily timing attributed to the effects of Federal Tax Reform) 0.04 Equity dilution (0.04) Other Non-GAAP earnings per share from continuing operations 2.17 Adjustments related to Federal Tax Reform GAAP earnings per share from continuing operations $2.19 3

4 2017 to 2018 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 $0.16 $0.08 $ $0.24 Higher depreciation expense (0.14) (0.02) (0.16) Net temperature impact on retail electric and gas sales Higher allowance for funds used during construction Lower energy efficiency amortization costs at WPL Equity dilution (0.02) (0.02) (0.04) Higher interest expense (0.02) (0.01) (0.03) Net write-down of regulatory assets due to IPL's electric rate review settlement Adjustments related to Federal Tax Reform 0.02 (0.04) (0.02) Other 0.05 (0.03) (0.01) 0.01 Total Utilities and Corporate Services $0.19 $0.08 ($0.01) $0.26 4

5 2018 Non-GAAP Temperature Normalized Earnings to Mid-point of 2019 Consolidated Earnings Guidance Walk 2018 GAAP EPS from continuing operations $2.19 Net temperature impact on retail electric and gas sales ($0.06) Adjustments related to Federal Tax Reform (0.02) 2018 Non-GAAP temperature normalized EPS from continuing operations 2.11 Higher revenue requirements primarily due to increasing rate base 0.58 Higher depreciation expense (0.19) Higher interest expense (0.11) Equity dilution (0.08) Other (0.07) 2019 Forecasted EPS Midpoint $2.24 5

6 2018 and Forecasted 2019 Statutory versus Overall Annual Effective Tax Rates AEC IPL WPL 2019 (a) (a) (a) 2018 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) (13) (5) (5) (6) Effect of rate-making on property-related differences (6) (8) (10) (14) (2) (2) Amortization of excess deferred taxes (1) (2) IPL's tax benefit riders (c) (1) (2) (1) (5) Adjustment of prior period taxes (2) (5) Impact of Federal Tax Reform adjustments (d) (1) (2) Other items, net (2) (1) (1) (2) Overall income tax rate 11% 8% 5% (1%) 18% 15% (a) Forecasted (b) 2019 PTCs reflect new PTCs projected to be generated by IPL's Upland Prairie and English Farms wind farms expected to be placed in service in Q (c) The tax impact of IPL's tax benefit riders was $13 million in 2018 and is forecasted to be $5 million in (d) Additional rules for the Tax Cuts and Jobs Act (Federal Tax Reform) were issued in 2018 including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for calendar year As a result of these clarifying rules, AEC and WPL recorded $6 million of tax benefits in

7 Key Regulatory Initiatives Interstate Power and Light Iowa Utilities Board Estimated Key Dates Decision regarding Energy Efficiency Plan (EEP ) Q File IPL Retail Base Rate Review (historical test year 2018 for electric and a future forecasted 2020 test period for electric and gas) Q Federal Energy Regulatory Commission (FERC) Decision regarding authorized return on equity (ROE) amounts for MISO transmission owners' (ITC) second complaint Wisconsin Power and Light Public Service Commission of Wisconsin H File 2019 WPL retail electric fuel only rate review Q FERC Decision regarding authorized ROE amounts for MISO transmission owners' (ATC) second complaint H