Powering Beyond Wells Fargo Fixed Income Investor Meetings April 5, 2018
Safe Harbor This presentation contains statements that may be considered forward looking statements, such as management s expectations of financial objectives and projections, capital expenditures, earnings growth, plant retirements, rate base, and new generation plans. These statements speak of the Company s plans, goals, beliefs, or expectations, refer to estimates or use similar terms. Actual results could differ materially, because the realization of those results is subject to many uncertainties including regulatory approvals and results, unanticipated construction costs or delays, economic conditions in our service territories, and other factors, some of which are discussed in more detail in the Company s Form 10-K for the year ended December 31, 2017. All forward looking statements included in this presentation are based upon information presently available and the Company assumes no obligation to update any forward looking statements. In addition, this presentation contains non-gaap financial measures. The reconciliations between the non-gaap and GAAP measures are provided in this presentation. 1
Attractive total return Investment Considerations Long term earnings growth rate of 5-7% using 2017 non-gaap temperature normalized base of $1.99 per share. Projected 6% earnings growth for 2018. Target dividend payout of 60-70% of consolidated earnings. Forecasting a dividend of $1.34 per share for 2018, a 6% increase over 2017. Future strategic investments focused on electric and gas distribution, as well as renewable and gas generation Constructive regulatory environments Strong balance sheet and liquidity 99% of non-gaap earnings from continuing operations generated by regulated operations in 2017 2
Regulated Utility Profile 2017 data IPL WPL Total Electric Customers 490,595 471,526 962,121 Electric Retail Sales (000s MWh) 14,356 10,739 25,095 Electric Wholesale Sales (000s MWH) 1,338 2,301 3,639 Summer Peak Demand (MW) 2,968 2,476 Gas Customers 224,041 189,013 413,054 Gas Sales (000s Dths) 65,945 60,221 126,166 Wisconsin WPL Operating Revenues (millions) $1,870 $1,473 $3,382 Service Territory Advantages Favorable commission rankings Economic diversity High quality renewable resources Access to ANR, Northern Border, and Northern Natural Gas pipelines Access to Powder River Basin coal Iowa IPL 3
Legal Entity Organization Chart Alliant Energy Corporation Wisconsin Power & Light Interstate Power & Light Alliant Energy Finance LLC Alliant Energy Resources, LLC AE Transco Investments LLC AE Development Holdco, LLC American Transmission Company, LLC 4
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Benefits of Wind Energy HELPS KEEP RATES LOW Turbine cost has dropped ~ 40% in the last 10 years Improvements in turbine technology maximize energy output Generation production tax credits for 10 years No associated fuel expense, helping provide cost stability Reduced fuel, along with tax credits, offset capital recovery STRENGTHENS OUR COMMUNITIES Provides tax revenues to support local services Creates jobs and helps grow local economies Lease payments for land owners Helps spur improvements to strengthen the power grid Attracts companies focused on sustainability 6
Wind Development Progress Regulatory Approvals Iowa (IPL) RPU I: IUB approval for up to 500 MW in 2016 RPU II: filed additional IUB request in August 2017 for up to 500 MW Wisconsin (WPL) Plan to request construction authority from the PSCW for up to 150 MW of wind Location Size (MW) NCF * In Service Cedar Ridge 68 MW 30% 2008 Forward Energy 55 MW (of 129) 30% 2008 Whispering Willow East / Franklin County 300 MW 36% 2009 / 2012 Bent Tree 200 MW 32% 2011 Upland Prairie up to 300 MW 44 46% 2019 English Farms up to 170 MW 42 44% 2019 Whispering Willow Expansion up to 200 MW 47 49% 2020 * NCF = Net Capacity Factor for 2017, for developed sites 7
Alliant Energy Solar Over 8.5MW in Operation Rock River PPA: Environmental mitigation Future Development Projects in Capital Expenditure Plan: Marshalltown: 1.5 MW offset plant auxiliary power West Riverside: 2.0 MW offset plant auxiliary power Indian Creek Nature Center: Partnership and Community Driven Madison HQ: Research and Education Dubuque: Utility scale Solar Considerations for additional solar investments: Site solar assets where they provide grid benefits (defer Transmission and Distribution investment, address congestion issues, provide non-wires alternative, etc.) Provide customers the opportunity to host our solar at their facility (under development as a product offering) 8
Gas Generation Investments Drive Growth Compliment Renewables WPL s West Riverside Energy Center Need resulting from planned coal and gas retirements and modest load growth An approximate 730 MW combined-cycle natural gas facility WPL s share of estimated cost is $640 million for facility, excluding transmission network upgrades and allowance for funds used during construction (AFUDC) Approved by Public Service Commission of Wisconsin (PSCW) in May 2016 AECOM selected as engineering, procurement and construction contractor GE Frame 7FA.05 combustion turbines In-service by early 2020 WPL will provide book-value purchase options for partial ownership of the facility. Utilities and electric cooperatives Purchase option amount Option timing Adams Columbia Electric Cooperative (ACEC) Rock Energy Cooperative (REC) approximately 65 megawatts Options exercised January 2018 Central Wisconsin Electric Cooperative (CWEC) Wisconsin Public Service Corporation (WPS) up to 200 megawatts 2020 2024 Madison Gas and Electric Company (MGE) up to 50 megawatts 2020 2025 9
Electric Distribution Strategy Grid Enhancements and Customer Need Distributed Generation/Renewable integration Integrate planning with generation and transmission Increase remote monitoring and control Eliminate lower voltage systems Resiliency improvements (incl. underground/hardening) Enhanced communication network Increased data and analytics Utility as trusted advisor for technical solutions Advanced metering infrastructure in Iowa 10
Natural Gas Strategy Reliability and Customer Growth Preparing for expected PHMSA rules Modifying existing pipes for enhanced inspection and verification requirements Replacing and making modifications to aging gas transmission lines Increasing remote monitoring Replacing distribution line made of certain material through the Integrity Management program Add capacity to areas of growth potential Modify tariffs to promote growth Utility as trusted advisor for natural gas solutions Advanced metering infrastructure in Iowa 11
Capital Expenditures 2018 2021 Capital Expenditures $5.4 Billion $2.0 $1.7 $1.7 Renewable Projects West Riverside Other Generation Other Gas Distribution Electric Distribution (In billions) $1.5 $1.0 $0.5 $- $1.0 $1.0 2018 2019 2020 2021 12
IPL in millions $1,200 $800 $400 IPL and WPL Capital Expenditures $985 $1,095 $500 $590 $- 2018 2019 2020 2021 Renewable Projects $565 $725 $50 $85 Other Generation $60 $50 $80 $75 Electric Distribution $260 $250 $290 $345 Gas Distribution $75 $50 $55 $65 Other $25 $20 $25 $20 WPL in millions $1,200 $800 $400 $640 $500 $410 $- 2018 2019 2020 2021 Renewable Projects $90 $125 $90 $- West Riverside $225 $90 $10 $- Other Generation $80 $45 $70 $65 Electric Distribution $180 $185 $195 $215 Gas Distribution $55 $45 $35 $50 Other $10 $10 $10 $10 $340 13
Estimated Capital Expenditures Post 2021 (2022-2026 estimated capital expenditures, excluding AFUDC) Electric Distribution $5.0 billion New Generation Generation Improvements and Maintenance Gas Distribution 14
Rate Base Growth Drives Earnings Growth 2017 2018 2019 2020 Dilution Rising Interest Expense Regulatory Lag 5-7% projected Earnings per Share growth rate through 2021 15
Tax Reform 16
Financing Investments 2018 Financings Up to $700 million of debt at IPL (refinancing $350 million) Up to $1 billion of debt at AEF with AEC guarantee (refinancing $595 million LTD and ~$300 million commercial paper) Up to $200 million of common equity through an at-themarket offering (ATM) Program and the Shareowner Direct Plan. Interest Rates of 2018 Maturities IPL - $100 million of 5.875% Senior Debentures IPL - $250 million of 7.25% Senior Debentures AEF - $500 million variable rate term loan, ~2% at 12/31/2017 AEF - $95 million variable rate term loan, ~2% at 12/31/2017 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Long-term Debt Maturities (in millions) 2018 2019 2020 2021 2022 IPL WPL SERVCO AEF 17
Credit Rating and Metrics CREDIT RATINGS Moody s S&P AEC Corporate/issuer Baa1 A AEC Commercial Paper P 2 A 2 IPL Unsecured long term debt Baa1 (Stable) A (Stable) IPL Commercial Paper P 2 A 2 WPL Unsecured long term debt A2 (Stable) A (Stable) WPL Commercial Paper P 1 A 1 Moody s Regulatory Assessments (50% of credit ratings) AEC IPL WPL Legislative and Judicial Underpinnings A A A Consistency and Predictability of Regulation A A Aa Timeliness of Recovery of Operating and Capital Costs A A A Sufficiency of Rates and Returns A Baa A AEC IPL WPL 2015 2016 2017 2015 2016 2017 2015 2016 2017 FFO/Debt 22% 20% 18% 24% 18% 17% 28% 31% 24% Common Equity Ratio 47% 45% 43% 49% 49% 49% 53% 52% 50% Credit metrics do not reflect rating agency adjustments 18
Key Regulatory Initiatives Interstate Power and Light Estimated Key Dates Iowa Utilities Board Decision regarding Retail Electric Base Rate Review Test Year 2016 (RPU 2017 0001) File 2019 2023 Energy Efficiency Plan (EEP 2017 002) Decision regarding Wind Expansion Advance Ratemaking Principles (RPU 2017 0002) Q1 2018 File Retail Gas Base Rate Review Test Year 2017 Q2 2018 Decision regarding ratemaking treatment of the effect of the Tax Cut and Jobs Act of 2017 (INU 2018 0001) Q2 2018 Federal Energy Regulatory Commission (FERC) Decision regarding authorized return on equity (ROE) amounts for MISO transmission owners second complaint H1 2018 Wisconsin Power and Light Public Service Commission of Wisconsin Decision regarding the purchase of an interest in Forward Wind Energy Center (5 BS 226) File for Wind Expansion Construction Authority H1 2018 File Retail Electric and Gas Rate Review Test Periods 2019 and 2020 Q2 2018 Decision regarding ratemaking treatment of the effect of the Tax Cut and Jobs Act of 2017 (05 AF 101) Q2 2018 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 H1 2018 19
Incremental Growth Opportunity - ATC ATC s Midwest Operations (16% equity ownership interest): Projected capital expenditures of $3.6 to $4.4 billion over 10 years from 2016-2025 $600 $500 $400 $300 $200 $100 $- ATC Midwest Operations Projected Capital Expenditures (in millions) 2017 2018 2019 2020 Rate Base: 13-month average rate base approx. $3.3 billion Capital structure: Hypothetical 50% equity component Annual true-up mechanism for revenue requirement Current return on construction work-in-progress ATC s Business Development (20% equity ownership interest): ATC Alaska Project 6 munis or coops develop a Transco model for Alaska s Railbelt Established 50/50 Joint Venture with Duke Energy in 2011 (Duke-ATC LLC or DATC) 20
Non-Utility Operations CRANDIC Great Western Wind Sheboygan Falls Cedar Rapids and Iowa City Railway Co. In eastern Iowa for over 110 years Serves the largest shippers Supports economic development in Cedar Rapids area 50% of a cash equity ownership interest 225 MW wind project 15 year PPA with Google Commissioned in December 2016 347 MW Gas Peaking Facility Commissioned in June 2005 20 year lease, with option for two lease renewal periods with WPL 21
Attractive Growth in Earnings, Dividends and Total Returns $1.70 Adjusted (non-gaap temperature normalized) Earnings per Share from continuing operations $1.79 $1.88 $1.99 $2.11 $250 $200 Total Shareholder Return Dividends per Common Share $1.34 (a) $1.26 $1.18 $1.10 $1.02 $150 2014 2015 2016 2017 2018E $100 2012 2013 2014 2015 2016 2017 Alliant Energy Corporation (LNT) S&P 500 Index EEI Utilities Comparison of cumulative five-year total return when investing $100 on December 31, 2012 (a) 2014 2015 2016 2017 2018E Annual common stock dividend target. Payment of the quarterly dividends is subject to the actual dividend declaration by the Board of Directors. 22
Environmental, Social, Governance Fossil Generation Water Withdrawals 2030 targeted reduction 75% from 2005 levels Carbon Dioxide Emissions 2030 targeted reduction 40% from 2005 levels At end of 2017, achieved 30% At end of 2017, achieved 25% Charitable Contributions by Alliant and its employees $7 million in 2017 Renewable Investments $2 billion 2016-2020 Board Diversity Gender Diversity in the boardroom Women 55% 23
Reconciliation between GAAP and Non-GAAP Measures 2014 2015 2016 2017 GAAP EPS from continuing operations $1.74 $1.69 $1.65 $1.99 Temperature impacts (0.04) 0.04 0.06 Non GAAP Adjustments: Losses from sales of Minnesota distribution assets 0.04 Voluntary employee separation charges 0.02 Valuation charge related to the Franklin County wind farm 0.23 Tax Reform (0.08) Net write down of regulatory assets due to IPL electric rate review settlement 0.02 Non GAAP temperature normalized EPS from continuing operations $1.70 $1.79 $1.88 $1.99 24