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What changed in Alliant Energy's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Alliant Energy's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+349 added−328 removedSource: 10-K (2024-02-16) vs 10-K (2023-02-24)

Top changes in Alliant Energy's 2023 10-K

349 paragraphs added · 328 removed · 265 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

66 edited+20 added−8 removed80 unchanged
Biggest change(b) All or some of the renewable energy attributes associated with generation from these sources may be used in future years to comply with renewable energy standards or other regulatory requirements. 12 Table of Co ntents Electric Operating Information IPL WPL 2022 2021 2020 2022 2021 2020 Revenues (in millions): Residential $673 $620 $602 $560 $495 $491 Commercial 536 508 474 285 255 244 Industrial 538 505 488 427 388 353 Retail subtotal 1,747 1,633 1,564 1,272 1,138 1,088 Sales for resale: Wholesale 64 57 57 169 130 111 Bulk power and other 13 17 31 98 39 5 Other 35 45 43 23 22 21 Total $1,859 $1,752 $1,695 $1,562 $1,329 $1,225 Sales (000s MWh): Residential 3,793 3,680 3,623 3,686 3,673 3,671 Commercial 4,049 4,022 3,835 2,387 2,361 2,272 Industrial 6,428 6,581 6,372 5,066 5,115 4,762 Retail subtotal 14,270 14,283 13,830 11,139 11,149 10,705 Sales for resale: Wholesale 771 738 723 2,095 2,049 1,802 Bulk power and other 1,401 1,069 2,762 2,333 1,949 759 Other 33 35 34 29 36 37 Total 16,475 16,125 17,349 15,596 15,183 13,303 Customers (End of Period): Retail 498,515 496,435 494,258 490,854 485,135 479,886 Other 867 858 856 2,036 2,020 1,985 Total 499,382 497,293 495,114 492,890 487,155 481,871 Other Selected Electric Data: Maximum summer peak hour demand (MW) 2,895 2,892 2,951 2,800 2,680 2,609 Maximum winter peak hour demand (MW) 2,449 2,433 2,311 2,046 2,028 1,873 Cooling degree days (a): Cedar Rapids, Iowa (IPL) (normal - 807) 908 974 800 N/A N/A N/A Madison, Wisconsin (WPL) (normal - 695) N/A N/A N/A 787 845 736 Sources of electric energy (000s MWh): Gas 4,625 4,011 5,296 6,813 6,044 5,144 Purchased power: Wind (b) 2,985 2,285 2,359 1,437 1,244 1,324 Nuclear — — 2,347 N/A N/A N/A Other (b) 835 1,166 391 1,968 1,476 2,130 Wind (b) 4,991 4,088 3,843 1,433 1,143 1,029 Coal 3,305 4,756 3,185 4,111 5,462 3,836 Other (b) 13 12 12 226 214 242 Total 16,754 16,318 17,433 15,988 15,583 13,705 Revenue per KWh sold to retail customers (cents) 12.24 11.43 11.31 11.42 10.21 10.16 (a) Cooling degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base.
Biggest change(b) All or some of the renewable energy attributes associated with generation from these sources may be used in future years to comply with renewable energy standards or other regulatory requirements. 12 Table of C o ntents Electric Operating Information IPL WPL 2023 2022 2021 2023 2022 2021 Revenues (in millions): Residential $641 $673 $620 $579 $560 $495 Commercial 519 536 508 301 285 255 Industrial 501 538 505 467 427 388 Retail subtotal 1,661 1,747 1,633 1,347 1,272 1,138 Sales for resale: Wholesale 62 64 57 151 169 130 Bulk power and other 11 13 17 60 98 39 Other 27 35 45 26 23 22 Total $1,761 $1,859 $1,752 $1,584 $1,562 $1,329 Sales (000s MWh): Residential 3,586 3,793 3,680 3,590 3,686 3,673 Commercial 3,988 4,049 4,022 2,341 2,387 2,361 Industrial 6,335 6,428 6,581 5,100 5,066 5,115 Retail subtotal 13,909 14,270 14,283 11,031 11,139 11,149 Sales for resale: Wholesale 766 771 738 2,093 2,095 2,049 Bulk power and other 1,465 1,401 1,069 3,265 2,333 1,949 Other 32 33 35 26 29 36 Total 16,172 16,475 16,125 16,415 15,596 15,183 Customers (End of Period): Retail 500,938 498,515 496,435 495,044 490,854 485,135 Other 878 867 858 2,036 2,036 2,020 Total 501,816 499,382 497,293 497,080 492,890 487,155 Other Selected Electric Data: Maximum summer peak hour demand (MW) 2,940 2,895 2,892 2,926 2,800 2,680 Maximum winter peak hour demand (MW) 2,294 2,449 2,433 1,946 2,046 2,028 Cooling degree days (a): Cedar Rapids, Iowa (IPL) (normal - 819) 974 908 974 N/A N/A N/A Madison, Wisconsin (WPL) (normal - 706) N/A N/A N/A 781 787 845 Sources of electric energy (000s MWh): Gas 6,636 4,625 4,011 8,128 6,813 6,044 Purchased power: Wind (b) 2,504 2,985 2,285 1,563 1,437 1,244 Other (b) 730 835 1,166 1,153 1,968 1,476 Wind (b) 4,257 4,991 4,088 1,153 1,433 1,143 Solar (b) 11 11 11 460 30 6 Coal 2,252 3,305 4,756 4,195 4,111 5,462 Other (b) 1 2 1 185 196 208 Total 16,391 16,754 16,318 16,837 15,988 15,583 Revenue per KWh sold to retail customers (cents) 11.94 12.24 11.43 12.21 11.42 10.21 (a) Cooling degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base.
Normal degree days are calculated using a rolling 20-year average of historical cooling degree days. Refer to “ Gas Operating Information ” below for details of heating degree days.
Normal degree days are calculated using a rolling 20-year average of historical cooling degree days. Refer to “ Gas Operating Information ” below for details of heating degree days.
Clean Air Act Section 111(d) - In 2015, the EPA issued the Clean Power Plan under Section 111(d) of the CAA to reduce CO2 emissions from existing fossil-fueled EGUs through broad electricity system-wide measures. This was replaced by the Affordable Clean Energy rule in 2019, to reduce CO2 emissions from existing coal-fueled EGUs through heat rate improvements.
Clean Air Act Section 111(d) - In 2015, the EPA issued the Clean Power Plan rule under Section 111(d) of the CAA to reduce CO2 emissions from existing fossil-fueled EGUs through broad electricity system-wide measures. This was replaced by the Affordable Clean Energy rule in 2019, to reduce CO2 emissions from existing coal-fired EGUs through heat rate improvements.
IPL provides utility services to incorporated communities as directed by the IUB and utilizes non-exclusive franchises, which cover the use of public right-of-ways for utility facilities in incorporated communities for a maximum term of 25 years. At December 31, 2022, IPL supplied electric and natural gas service to approximately 500,000 and 225,000 retail customers, respectively, in Iowa.
IPL provides utility services to incorporated communities as directed by the IUB and utilizes non-exclusive franchises, which cover the use of public right-of-ways for utility facilities in incorporated communities for a maximum term of 25 years. At December 31, 2023, IPL supplied electric and natural gas service to approximately 500,000 and 225,000 retail customers, respectively, in Iowa.
Gas Demand Planning Reserve Margin - IPL and WPL are required to maintain adequate pipeline capacity to ensure they meet their customers’ maximum daily system demand requirements. IPL and WPL currently have planning reserve margins of 2% and 6%, respectively, above their forecasted maximum daily system demand requirements from November 2022 through March 2023.
Gas Demand Planning Reserve Margin - IPL and WPL are required to maintain adequate pipeline capacity to ensure they meet their customers’ maximum daily system demand requirements. IPL and WPL currently have planning reserve margins of 2% and 6%, respectively, above their forecasted maximum daily system demand requirements from November 2023 through March 2024.
(b) All or some of the renewable energy attributes associated with generation from these sources may be used in future years to comply with renewable energy standards or other regulatory requirements. 13 Table of Co ntents 2) GAS UTILITY OPERATIONS General - Gas utility operations represent the second largest operating segment for Alliant Energy, IPL and WPL.
(b) All or some of the renewable energy attributes associated with generation from these sources may be used in future years to comply with renewable energy standards or other regulatory requirements. 13 Table of C o ntents 2) GAS UTILITY OPERATIONS General - Gas utility operations represent the second largest operating segment for Alliant Energy, IPL and WPL.
Alliant Energy’s primary focus is to provide regulated electric and natural gas service to approximately 995,000 electric and approximately 425,000 natural gas customers in the Midwest through its two public utility subsidiaries, IPL and WPL.
Alliant Energy’s primary focus is to provide regulated electric and natural gas service to approximately 1,000,000 electric and approximately 425,000 natural gas customers in the Midwest through its two public utility subsidiaries, IPL and WPL.
In 2021, the U.S. Court of Appeals for the District of Columbia Circuit vacated and remanded the Affordable Clean Energy rule to the EPA for reconsideration. In 2022, the Supreme Court issued a ruling limiting the extent of the EPA’s authority under Section 111(d) to emissions reduction technologies and operational improvements.
In 2021, the U.S. Court of Appeals for the District of Columbia vacated and remanded the Affordable Clean Energy rule to the EPA for reconsideration. In 2022, the Supreme Court issued a decision limiting the extent of the EPA’s authority under Section 111(d) to emissions reduction technologies and operational improvements.
It is one of our Values - “Care for others: Together we create a workplace where people feel like they belong and can use their unique backgrounds, talents and perspectives to their fullest potential.” Alliant Energy is driven by DE&I and believes the achievement of its strategic objectives can only be achieved with a focused and engaged workforce.
It is one of our Values - “Care for others: Together we create a workplace where people feel like they belong and can use their unique backgrounds, talents and perspectives to their fullest potential.” Alliant Energy is driven by DEI&B and believes the achievement of its strategic objectives can only be achieved with a focused and engaged workforce.
WPL also sells electricity to wholesale customers in Wisconsin. 3) CORPORATE SERVICES - provides administrative services to Alliant Energy, IPL, WPL and AEF. 4) AEF - Alliant Energy’s non-utility holdings are organized under AEF, which manages a portfolio of wholly-owned subsidiaries and additional holdings, including the following distinct platforms: ATI - currently holds all of Alliant Energy’s interest in ATC Holdings.
WPL also sells electricity to wholesale customers in Wisconsin. 3 Table of C o ntents 3) CORPORATE SERVICES - provides administrative services to Alliant Energy, IPL, WPL and AEF. 4) AEF - Alliant Energy’s non-utility holdings are organized under AEF, which manages a portfolio of wholly-owned subsidiaries and additional holdings, including the following distinct platforms: ATI - currently holds all of Alliant Energy’s interest in ATC Holdings.
Refer to Note 17(g) for discussion of a court decision, which is currently expected to reduce the base return on equity authorized for MISO transmission owners, including ATC. 10 Table of Co ntents MISO Markets - IPL and WPL are members of MISO, a FERC-approved Regional Transmission Organization, which is responsible for monitoring and ensuring equal access to the transmission system in their footprint.
Refer to Note 17(g) for discussion of a court decision, which is currently expected to reduce the base return on equity authorized for MISO transmission owners, including ATC. MISO Markets - IPL and WPL are members of MISO, a FERC-approved Regional Transmission Organization, which is responsible for monitoring and ensuring equal access to the transmission system in their footprint.
IPL and WPL currently exceed their respective renewable energy standards requirements. 8 Table of Co ntents 3) STRATEGY - Refer to “ Overview ” in MDA for discussion of Alliant Energy’s strategy, which supports its mission to deliver energy solutions and exceptional service that its customers and communities count on - affordably, safely, reliably and sustainably. C.
IPL and WPL currently exceed their respective renewable energy standards requirements. 3) STRATEGY - Refer to “ Overview ” in MDA for discussion of Alliant Energy’s strategy, which supports its mission to deliver energy solutions and exceptional service that its customers and communities count on - affordably, safely, reliably and sustainably. C.
The tariffs for IPL’s and WPL’s retail gas customers provide for subsequent adjustments to their rates for the cost of gas sold to these customers. As a result, natural gas prices do not have a material impact on IPL’s or WPL’s gas margins.
The tariffs for IPL’s and WPL’s retail gas customers provide for subsequent adjustments to their rates for the cost of gas sold to these customers. As a result, natural gas prices do not have a material impact on IPL’s or WPL’s operating income.
CSAPR establishes state-specific annual sulfur dioxide and nitrogen oxides emission caps and ozone season nitrogen oxides emission caps. In 2022, the EPA proposed revisions to the CSAPR state-specific ozone season nitrogen oxides emission caps and utility-specific emission allowances for certain states, including Wisconsin, beginning in 2023.
CSAPR establishes state-specific annual sulfur dioxide and nitrogen oxides emission caps and ozone season nitrogen oxides emission caps. In 2023, the EPA finalized revisions to the CSAPR state-specific ozone season nitrogen oxides emission caps and utility-specific emission allowances for certain states, including Wisconsin, beginning in 2023.
Retail Utility Base Rates - IPL files periodic requests with the IUB for retail rate changes and may base those requests on either historical or forward-looking test periods. The IUB must decide on requests for retail rate changes within 10 months of the date of the application for which changes are filed.
Retail Utility Base Rates - IPL files periodic requests with the IUB for retail rate changes and may base those requests on either historical or forward-looking test periods. The IUB must decide on requests for retail rate changes within 10 months of the date of the application for which changes are filed, subject to certain exceptions.
WPL operates in municipalities pursuant to permits of indefinite duration and state statutes authorizing utility operation in areas annexed by a municipality. At December 31, 2022, WPL supplied electric and natural gas service to approximately 495,000 and 200,000 retail customers, respectively.
WPL operates in municipalities pursuant to permits of indefinite duration and state statutes authorizing utility operation in areas annexed by a municipality. At December 31, 2023, WPL supplied electric and natural gas service to approximately 500,000 and 200,000 retail customers, respectively.
Customers - IPL and WPL provide electric utility service to a diversified base of retail customers in several industries, with the largest concentrations in the farming, agriculture, industrial manufacturing, chemical (including ethanol), packaging and food industries. IPL and WPL also sell electricity to wholesale customers, which primarily consist of municipalities and rural electric cooperatives.
Customers - IPL and WPL provide electric utility service to a diversified base of retail customers in several industries, with the largest concentrations in the farming, agriculture, industrial manufacturing, chemical (including ethanol), packaging and food 9 Table of C o ntents industries. IPL and WPL also sell electricity to wholesale customers, which primarily consist of municipalities and rural electric cooperatives.
In 2009, the EPA issued a ruling that found GHG emissions contribute to climate change, and therefore, threaten public health and welfare, which was the prerequisite for implementing CO2 reduction standards under the CAA.
In 2009, the EPA issued a ruling that found GHG emissions contribute to climate change and therefore threaten public health and welfare, which is the basis for implementing CO2 reduction standards under the CAA.
Advance Rate-making Principles - Wisconsin law provides Wisconsin utilities with the opportunity to request rate-making principles prior to the purchase or construction of any EGU utilized to serve Wisconsin customers. WPL is not obligated to file for or accept authorized rate-making principles under Wisconsin law.
Advance Rate-making Principles - Wisconsin law provides Wisconsin utilities with the opportunity to request rate-making principles prior to the purchase or construction of any EGU utilized to serve Wisconsin customers. WPL is not obligated to file 7 Table of C o ntents for or accept authorized rate-making principles under Wisconsin law.
In 2021, the IUB adopted rules that establish minimum filing requirements for rate reviews using a forward-looking test period, and a related subsequent proceeding review after the close of the forward-looking test period.
The IUB has rules that establish minimum filing requirements for rate reviews using a forward-looking test period, and a related subsequent proceeding review after the close of the forward-looking test period.
Our efforts to create a diverse and inclusive workforce have focused on reducing bias, building diverse teams, and listening and acting on employee feedback, and include: • learning opportunities for employees, such as inviting employees to participate in area diversity summits and supporting company-wide listening sessions, speakers and programs; • capturing and acting upon employee feedback through employee sentiment surveys; • Employee Resource Groups that foster a diverse and inclusive workplace that supports employee well-being while promoting professional development and enhancing community relationships; and • a DE&I Leadership Team that partners with the Human Resources recruiting department and hiring managers to attract more diverse applicants that represent the diversity of the communities we serve.
Our efforts to create a diverse, equitable and inclusive workplace have focused on reducing bias, building diverse teams, and listening to and acting on employee feedback, and include: • learning opportunities for employees, such as inviting employees to participate in area diversity summits and supporting company-wide listening sessions, speakers and programs; • Employee Resource Groups that foster a diverse, equitable and inclusive workplace that supports employee well-being while promoting professional development and enhancing community relationships; and • a DEI&B Leadership Team that partners with the Human Resources department and hiring managers to attract more diverse applicants that represent the diversity of the communities we serve.
Our DE&I initiatives also include a focus on building a diverse Board of Directors. We believe it is in our shareowners’ best interest to have a diverse Board representing a wide breadth of experiences and perspectives. Our Board currently has approximately 50% gender diversity and 20% ethnic diversity.
Our DEI&B initiatives also include a focus on building a diverse Board of Directors. We believe it is in our shareowners’ best interest to have a diverse Board representing a wide breadth of experiences and perspectives. Our Board currently has approximately 40% gender diversity and 20% ethnic diversity.
If rate-making principles are not 6 Table of Co ntents approved by the IUB, IPL may construct the facility, subject to other applicable approvals (such as a GCU Certificate), subject to recovery in future rate reviews.
If rate-making principles are not approved by the IUB, IPL may construct the facility, subject to other applicable approvals (such as a GCU Certificate), subject to recovery in future rate reviews.
Alliant Energy expects its mix of electric supply to change in the next several years with its planned transition away from coal-fired EGUs by considering additional renewable energy such as solar generation, repowering of existing wind farms and distributed energy resources, including community solar and energy storage systems, natural gas resources, and the actual and potential sale of partial interests in West Riverside to neighboring utilities.
Alliant Energy expects its mix of electric supply to change in the next several years with its planned transition away from coal-fired EGUs by considering additional renewable energy such as solar generation, battery storage, repowering of existing wind farms and distributed energy resources, including community solar and small-scale energy storage systems, dispatchable gas generation projects, and potential sales of partial interests in West Riverside to neighboring utilities.
Travero - is a diversified supply chain solutions company, including a short-line rail freight service in Iowa; a Mississippi River barge, rail and truck freight terminal in Illinois; freight brokerage services; and a rail-served warehouse in Iowa. B.
Travero - is a diversified supply chain solutions company, including a short-line rail freight service in Iowa; a Mississippi River barge, rail and truck freight terminal in Illinois; freight brokerage services; wind turbine blade recycling services; and a rail-served warehouse in Iowa.
In addition to competitive salaries and wages, our Total Rewards programs include: • competitive short- and long-term incentive compensation; • a 401(k) savings plan with an employer match; • healthcare and insurance benefits, including medical, vision, dental, life, short-term disability, and long-term disability insurance; 4 Table of Co ntents • health savings and flexible spending accounts; • paid time off to use for vacation, personal time, sick time, holidays, bereavement, jury duty, military leave, parental leave, maternity leave, and adoption leave; • adoption assistance; • legal planning assistance; • Employee Assistance program; • tuition reimbursement; • Vacation Donation program; and • Volunteer Grants and Matching Gifts program.
In addition to competitive salaries and wages, our Total Rewards programs include: • competitive short- and long-term incentive compensation; • a 401(k) savings plan with an employer match; • healthcare and insurance benefits, including medical, vision, dental, life, short-term disability, and long-term disability insurance; • health savings and flexible spending accounts; • enhanced offerings to support the well-being of employees and their families; • paid time off to use for vacation, personal time, sick time, holidays, bereavement, jury duty, military leave, parental leave, maternity leave, and adoption leave; • adoption assistance; • legal planning assistance; • tuition reimbursement; • Vacation Donation program; and • Volunteer Grants and Matching Gifts program.
Electric Generating Unit Environmental Controls Projects - IPL is required to submit an updated emissions plan and budget biennially to the IUB setting out a multi-year plan and budget for managing regulated emissions from its coal-fired EGUs in a cost-effective manner.
Electric Generating Unit Environmental Controls Projects - At its sole discretion, IPL may submit an updated emissions plan and budget to the IUB setting out a multi-year plan and budget for managing regulated emissions from its coal-fired EGUs in a cost-effective manner.
In order for an EGU to receive accredited capacity, it must meet MISO capacity accreditation requirements, which can include satisfying transmission requirements identified in its interconnection agreement prior to the MISO planning year.
Only accredited capacity assigned to EGUs is available to meet these requirements. In order for an EGU to receive accredited capacity, it must meet MISO capacity accreditation requirements, which can include satisfying transmission requirements identified in its interconnection agreement prior to the MISO planning year.
FERC designated North American Electric Reliability Corporation as the overarching Electric Reliability Organization. Midwest Reliability Organization, which is a regional member of North American Electric Reliability Corporation, has direct responsibility for mandatory electric reliability standards for IPL and WPL.
Midwest Reliability Organization, which is a regional member of North American Electric Reliability Corporation, has direct responsibility for mandatory electric reliability standards for IPL and WPL.
In 2021, legislation was enacted in Iowa prohibiting counties and cities from regulating the sale of natural gas and propane, which supports IPL’s ability to provide gas utility service to a diversified base of retail customers and industries.
In Iowa, counties and cities are prohibited from regulating the sale of natural gas and propane, which supports IPL’s ability to provide gas utility service to a diversified base of retail customers and industries.
Alliant Energy’s corporate officers group currently has approximately 40% gender diversity and 27% ethnic diversity.
Alliant Energy’s corporate officers group currently has approximately 44% gender diversity and 25% ethnic diversity.
MISO allocates auction revenue rights to IPL and WPL annually based on a fiscal year from June 1 through May 31 and historical use of the transmission system. The allocated auction revenue rights are used by IPL and WPL to acquire FTRs through the FTR auctions operated by MISO.
MISO allocates auction revenue rights to IPL and WPL annually based on a fiscal year from June 1 through May 31 and historical use of the transmission system.
These contributions are recovered from customers through a monthly bill surcharge of the lesser of 3% of customers’ utilities bills or $750. Refer to Note 1(g) for discussion of the recovery of these costs from WPL’s retail electric and gas customers.
In addition, WPL contributes to a program that provides assistance to income-eligible residents in Wisconsin. These contributions are recovered from customers through a monthly bill surcharge of the lesser of 3% of customers’ utilities bills or $750. Refer to Note 1(g) for discussion of the recovery of these costs from WPL’s retail electric and gas customers.
Diversity, Equity and Inclusion (DE&I) - A diverse, equitable and inclusive workplace is crucial for the success and retention of our employees, to attract future talent and to execute our purpose-driven strategy to serve our customers and build stronger communities.
Diversity, Equity, Inclusion and Belonging (DEI&B) - A diverse, equitable and inclusive workplace where everyone feels like they belong is crucial for the success and retention of our employees, to attract future talent and to execute our purpose-driven strategy to serve our customers and build stronger communities.
Total Rewards - Our market-competitive Total Rewards programs are designed to meet the varied and evolving needs of our employees. Through a variety of health, welfare and compensation programs, we offer employees choice and control, while supporting their financial, physical, and mental well-being. Tools and resources are provided to employees to help maintain and improve their health.
Through a variety of health, welfare and compensation programs, we offer employees choice and control, while supporting their financial, physical, and mental well-being. Tools and resources are provided to employees to help maintain and improve their health.
Our 2022 DE&I accomplishments include: • received a perfect score on the Corporate Equality Index administered by the Human Rights Campaign Foundation to benchmark LGBTQ+ rights, policies and practices; • selected for the 2022 Bloomberg Gender-Equality Index; • held our third annual Day of Understanding, with 85% voluntary company-wide participation, where leaders facilitated conversations around creating a culture of inclusion and belonging, helping to ensure employees are seen, heard and valued; and • all people-leaders completed training on reducing unconscious bias in the interview process.
Our 2023 DEI&B accomplishments include: • received a perfect score on the Corporate Equality Index administered by the Human Rights Campaign Foundation to benchmark LGBTQ+ rights, policies and practices; • selected for the 2023 Bloomberg Gender-Equality Index; and • held our fourth annual Day of Understanding, with 88% voluntary company-wide participation, where leaders facilitated conversations around creating a culture of inclusion and belonging, helping to ensure employees are seen, heard and valued.
IPL primarily relies upon renewable energy generated from the wind resources it owns and renewable energy acquired under PPAs to meet these requirements. WPL utilizes its current renewable portfolio, which primarily consists of wind, solar and hydro energy, both owned and acquired under PPAs, to meet these requirements.
WPL utilizes its current renewable portfolio, which primarily consists of wind, solar and hydro energy, both owned and acquired under PPAs, to meet these requirements.
Corporate Services, IPL and WPL are subject to regulation by FERC under the Public Utility Holding Company Act of 2005 for various matters including, but not limited to, affiliate transactions, public utility mergers, acquisitions and dispositions, and books, records and accounting requirements. 5 Table of Co ntents Energy Policy Act of 2005 - The Energy Policy Act of 2005 requires creation of an Electric Reliability Organization to provide oversight by FERC.
Corporate Services, IPL and WPL are subject to regulation by FERC under the Public Utility Holding Company Act of 2005 for various matters including, but not limited to, affiliate transactions, public utility mergers, acquisitions and dispositions, and books, records and accounting requirements.
Employees - At December 31, 2022, Alliant Energy, IPL and WPL had the following full- and part-time employees: Total Number of Percentage of Employees Number of Bargaining Unit Covered by Collective Employees Employees Bargaining Agreements Alliant Energy 3,129 1,692 54% IPL 1,080 755 70% WPL 1,001 825 82% The majority of IPL’s bargaining unit employees are covered by the International Brotherhood of Electrical Workers Local 204 (Cedar Rapids) collective bargaining agreement, which expires August 31, 2024.
Employees - At December 31, 2023, Alliant Energy, IPL and WPL had the following full- and part-time employees: Total Number of Percentage of Employees Number of Bargaining Unit Covered by Collective Employees Employees Bargaining Agreements Alliant Energy 3,281 1,755 53% IPL 1,116 774 69% WPL 1,045 868 83% The majority of IPL’s bargaining unit employees are covered by the International Brotherhood of Electrical Workers Local 204 (Cedar Rapids) collective bargaining agreement, which expires August 31, 2024.
Upon approval of rate-making principles by the IUB, IPL must either construct the EGU or repower the alternative energy production facility under the approved rate-making principles, or not at all.
Advance rate-making principles are also available for the repowering of an alternative energy production facility or certain significant alterations of an existing EGU. Upon approval of rate-making principles by the IUB, IPL must either construct the EGU or repower the alternative energy production facility under the approved rate-making principles, or not at all.
Gas Operating Information - Alliant Energy 2022 2021 2020 Revenues (in millions): Residential $371 $257 $214 Commercial 197 139 107 Industrial 20 17 12 Retail subtotal 588 413 333 Transportation/other 54 43 40 Total $642 $456 $373 Sales (000s Dths): Residential 31,109 26,795 27,809 Commercial 21,097 18,516 17,996 Industrial 2,815 2,868 3,003 Retail subtotal 55,021 48,179 48,808 Transportation/other 104,812 99,179 102,790 Total 159,833 147,358 151,598 Retail Customers (End of Period) 426,153 422,864 419,994 Other Selected Gas Data: Heating degree days (a): Cedar Rapids, Iowa (IPL) (normal - 6,697) 7,222 6,539 6,625 Madison, Wisconsin (WPL) (normal - 6,976) 7,210 6,620 6,789 Revenue per Dth sold to retail customers $10.69 $8.57 $6.82 Purchased gas costs per Dth sold to retail customers $6.97 $5.29 $3.67 14 Table of Co ntents Gas Operating Information IPL WPL 2022 2021 2020 2022 2021 2020 Revenues (in millions): Residential $202 $146 $116 $169 $111 $98 Commercial 101 79 59 96 60 48 Industrial 14 12 8 6 5 4 Retail subtotal 317 237 183 271 176 150 Transportation/other 34 28 25 20 15 15 Total $351 $265 $208 $291 $191 $165 Sales (000s Dths): Residential 16,250 13,873 14,521 14,859 12,922 13,288 Commercial 10,257 9,065 8,925 10,840 9,451 9,071 Industrial 1,985 1,943 2,062 830 925 941 Retail subtotal 28,492 24,881 25,508 26,529 23,298 23,300 Transportation/other 43,264 40,738 39,543 61,548 58,441 63,247 Total 71,756 65,619 65,051 88,077 81,739 86,547 Retail Customers (End of Period) 226,284 225,517 224,927 199,869 197,347 195,067 Other Selected Gas Data: Maximum daily winter peak demand (Dth) 259,474 269,335 253,439 201,980 221,256 189,439 Heating degree days (a): Cedar Rapids, Iowa (IPL) (normal - 6,697) 7,222 6,539 6,625 N/A N/A N/A Madison, Wisconsin (WPL) (normal - 6,976) N/A N/A N/A 7,210 6,620 6,789 Revenue per Dth sold to retail customers $11.13 $9.53 $7.17 $10.22 $7.55 $6.44 Purchased gas cost per Dth sold to retail customers $7.17 $5.96 $3.87 $6.77 $4.58 $3.45 (a) Heating degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base.
Gas Operating Information - Alliant Energy 2023 2022 2021 Revenues (in millions): Residential $316 $371 $257 Commercial 163 197 139 Industrial 16 20 17 Retail subtotal 495 588 413 Transportation/other 45 54 43 Total $540 $642 $456 Sales (000s Dths): Residential 25,838 31,109 26,795 Commercial 18,291 21,097 18,516 Industrial 2,276 2,815 2,868 Retail subtotal 46,405 55,021 48,179 Transportation/other 115,177 104,812 99,179 Total 161,582 159,833 147,358 Retail Customers (End of Period) 428,143 426,153 422,864 Other Selected Gas Data: Heating degree days (a): Cedar Rapids, Iowa (IPL) (normal - 6,699) 5,807 7,222 6,539 Madison, Wisconsin (WPL) (normal - 6,974) 6,157 7,210 6,620 Revenue per Dth sold to retail customers $10.67 $10.69 $8.57 Purchased gas costs per Dth sold to retail customers $6.37 $6.97 $5.29 14 Table of C o ntents Gas Operating Information IPL WPL 2023 2022 2021 2023 2022 2021 Revenues (in millions): Residential $176 $202 $146 $140 $169 $111 Commercial 86 101 79 77 96 60 Industrial 11 14 12 5 6 5 Retail subtotal 273 317 237 222 271 176 Transportation/other 27 34 28 18 20 15 Total $300 $351 $265 $240 $291 $191 Sales (000s Dths): Residential 13,146 16,250 13,873 12,692 14,859 12,922 Commercial 8,477 10,257 9,065 9,814 10,840 9,451 Industrial 1,505 1,985 1,943 771 830 925 Retail subtotal 23,128 28,492 24,881 23,277 26,529 23,298 Transportation/other 43,232 43,264 40,738 71,945 61,548 58,441 Total 66,360 71,756 65,619 95,222 88,077 81,739 Retail Customers (End of Period) 226,265 226,284 225,517 201,878 199,869 197,347 Other Selected Gas Data: Maximum daily winter peak demand (Dth) 290,922 259,474 269,335 234,796 201,980 221,256 Heating degree days (a): Cedar Rapids, Iowa (IPL) (normal - 6,699) 5,807 7,222 6,539 N/A N/A N/A Madison, Wisconsin (WPL) (normal - 6,974) N/A N/A N/A 6,157 7,210 6,620 Revenue per Dth sold to retail customers $11.80 $11.13 $9.53 $9.54 $10.22 $7.55 Purchased gas cost per Dth sold to retail customers $7.16 $7.17 $5.96 $5.59 $6.77 $4.58 (a) Heating degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base.
The average cost of delivered fuel per million British Thermal Units used for electric generation was as follows: IPL WPL 2022 2021 2020 2022 2021 2020 All fuels $4.37 $2.10 $2.22 $4.47 $2.62 $2.36 Natural gas (a) 5.76 2.54 2.54 6.02 3.31 2.51 Coal 2.31 1.81 1.84 2.43 2.07 2.19 (a) The average cost of natural gas includes commodity and transportation costs, as well as realized gains and losses from swap and option contracts used to hedge the price of natural gas volumes expected to be used by IPL’s and WPL’s natural gas-fired EGUs.
The average cost of delivered fuel per million British Thermal Units used for electric generation was as follows: IPL WPL 2023 2022 2021 2023 2022 2021 All fuels $2.83 $4.37 $2.10 $3.09 $4.47 $2.62 Natural gas (a) 3.10 5.76 2.54 3.47 6.02 3.31 Coal 2.09 2.31 1.81 2.54 2.43 2.07 (a) The average cost of natural gas includes commodity and transportation costs, as well as realized gains and losses from swap and option contracts used to hedge the price of natural gas volumes expected to be used by IPL’s and WPL’s natural gas-fired EGUs. 10 Table of C o ntents Natural Gas - Alliant Energy, IPL and WPL own several natural gas-fired EGUs, and WPL also has exclusive rights to the output of AEF’s Sheboygan Falls Energy Facility under an affiliated lease agreement.
We maintain executive and local safety leadership teams to establish our safety vision, strategy and priorities, and ensure education and recognition of employee actions that improve our safety culture. This leadership provides strong support for sustained growth of both employee and public safety programs and initiatives.
We maintain executive and local safety leadership teams to establish our safety vision, strategy and priorities, and ensure education and recognition of employee actions that improve our safety culture.
Energy Efficiency - In accordance with Iowa law, IPL is required to file an EEP every five years with the IUB. An EEP provides a utility’s plan and related budget to achieve specified levels of electric and gas energy savings. IUB approval demonstrates that IPL’s EEP is reasonably expected to achieve cost-effective delivery of the energy efficiency programs.
An EEP provides a utility’s plan and related budget to achieve specified levels of electric and gas energy savings. 6 Table of C o ntents IUB approval demonstrates that IPL’s EEP is reasonably expected to achieve cost-effective delivery of the energy efficiency programs.
ATC Holdco LLC holds an interest in Duke-American Transmission Company, LLC, a joint venture between Duke Energy Corporation and ATC, that owns electric transmission infrastructure in North America. 3 Table of Co ntents Corporate Venture Investments - includes various minority ownership interests in regional and national venture funds, including a global coalition of energy companies working together to help advance the transition towards a cleaner, more sustainable, and inclusive energy future, by identifying and researching innovative technologies and business models within the emerging energy economy.
Corporate Venture Investments - includes various minority ownership interests in regional and national venture funds, including a global coalition of energy companies working together to help advance the transition towards a cleaner, more sustainable, and inclusive energy future, by identifying and researching innovative technologies and business models within the emerging energy economy.
Non-utility Wind Farm - includes a 50% cash equity ownership interest in a 225 MW non-utility wind farm located in Oklahoma. Sheboygan Falls Energy Facility - is a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is leased to WPL for an initial period of 20 years ending in 2025.
Non-utility Wind Farm - includes a 50% cash equity ownership interest in a 225 MW non-utility wind farm located in Oklahoma. Sheboygan Falls Energy Facility - is a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is currently leased to WPL through 2039. Refer to Note 10 for additional information on WPL’s Sheboygan Falls Energy Facility lease.
The following are major environmental matters that could potentially have a significant impact on financial condition and results of operations. 7 Table of Co ntents Air Quality - Climate Change and Greenhouse Gas Regulations - In 2007, the Supreme Court provided direction on the EPA’s authority to regulate GHG and ruled that these emissions are covered by the CAA.
Air Quality - Climate Change and Greenhouse Gas Regulations - In 2007, the Supreme Court provided direction on the EPA’s authority to regulate GHG and ruled that these emissions are covered by the CAA.
ATC Holdings is comprised of a 16% ownership interest in ATC and a 20% ownership interest in ATC Holdco LLC. ATC is an independent, for-profit, transmission-only company.
ATC Holdings is comprised of a 16% ownership interest in ATC and a 20% ownership interest in ATC Holdco LLC. ATC is an independent, for-profit, transmission-only company. ATC Holdco LLC holds an interest in Duke-American Transmission Company, LLC, a joint venture between Duke Energy Corporation and ATC, that owns electric transmission infrastructure in North America.
Refer to “ Customer Investments ” in MDA for discussion of MISO’s new seasonal resource adequacy process establishing capacity planning reserve margin and capacity accreditation requirements effective with the June 1, 2023 through May 31, 2024 MISO Planning Year.
MISO Seasonal Resource Adequacy Process - In 2022, FERC approved MISO’s proposal to change its resource adequacy process establishing capacity planning reserve margin and capacity accreditation requirements effective with the June 1, 2023 through May 31, 2024 MISO Planning Year, to help ensure the reliability of electricity in the MISO region.
Refer to “ Customer Investments ” in MDA for discussion of MISO’s new seasonal resource adequacy process establishing capacity planning reserve margin and capacity accreditation requirements effective with the 2023/2024 MISO Planning Year. 11 Table of Co ntents Electric Operating Information - Alliant Energy 2022 2021 2020 Revenues (in millions): Residential $1,233 $1,115 $1,093 Commercial 821 763 718 Industrial 965 893 841 Retail subtotal 3,019 2,771 2,652 Sales for resale: Wholesale 233 187 168 Bulk power and other 111 56 36 Other 58 67 64 Total $3,421 $3,081 $2,920 Sales (000s MWh): Residential 7,479 7,353 7,294 Commercial 6,436 6,383 6,107 Industrial 11,494 11,696 11,134 Retail subtotal 25,409 25,432 24,535 Sales for resale: Wholesale 2,866 2,787 2,525 Bulk power and other 3,734 3,018 3,521 Other 62 71 71 Total 32,071 31,308 30,652 Customers (End of Period): Retail 989,369 981,570 974,144 Other 2,903 2,878 2,841 Total 992,272 984,448 976,985 Other Selected Electric Data: Maximum summer peak hour demand (MW) 5,629 5,486 5,496 Maximum winter peak hour demand (MW) 4,415 4,413 4,158 Cooling degree days (a): Cedar Rapids, Iowa (IPL) (normal - 807) 908 974 800 Madison, Wisconsin (WPL) (normal - 695) 787 845 736 Sources of electric energy (000s MWh): Gas 11,438 10,055 10,440 Purchased power: Wind (b) 4,422 3,529 3,683 Nuclear — — 2,347 Other (b) 2,803 2,642 2,521 Wind (b) 6,424 5,231 4,872 Coal 7,416 10,218 7,021 Other (b) 239 226 254 Total 32,742 31,901 31,138 Revenue per KWh sold to retail customers (cents) 11.88 10.90 10.81 (a) Cooling degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base.
Electric Operating Information - Alliant Energy 2023 2022 2021 Revenues (in millions): Residential $1,220 $1,233 $1,115 Commercial 820 821 763 Industrial 968 965 893 Retail subtotal 3,008 3,019 2,771 Sales for resale: Wholesale 213 233 187 Bulk power and other 71 111 56 Other 53 58 67 Total $3,345 $3,421 $3,081 Sales (000s MWh): Residential 7,176 7,479 7,353 Commercial 6,329 6,436 6,383 Industrial 11,435 11,494 11,696 Retail subtotal 24,940 25,409 25,432 Sales for resale: Wholesale 2,859 2,866 2,787 Bulk power and other 4,730 3,734 3,018 Other 58 62 71 Total 32,587 32,071 31,308 Customers (End of Period): Retail 995,982 989,369 981,570 Other 2,914 2,903 2,878 Total 998,896 992,272 984,448 Other Selected Electric Data: Maximum summer peak hour demand (MW) 5,856 5,629 5,486 Maximum winter peak hour demand (MW) 4,240 4,415 4,413 Cooling degree days (a): Cedar Rapids, Iowa (IPL) (normal - 819) 974 908 974 Madison, Wisconsin (WPL) (normal - 706) 781 787 845 Sources of electric energy (000s MWh): Gas 14,764 11,438 10,055 Purchased power: Wind (b) 4,067 4,422 3,529 Other (b) 1,883 2,803 2,642 Wind (b) 5,410 6,424 5,231 Solar (b) 471 41 17 Coal 6,447 7,416 10,218 Other (b) 186 198 209 Total 33,228 32,742 31,901 Revenue per KWh sold to retail customers (cents) 12.06 11.88 10.90 (a) Cooling degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base.
Department of Homeland Security Transportation Security Administration - Alliant Energy, IPL and WPL are subject to regulation for physical and cyber security of their natural gas pipeline systems, and are applying, and monitoring for changes to, these requirements to their pipeline systems.
WPL can proceed with an approved project under traditional rate-making terms or accept authorized rate-making principles under Wisconsin law. Department of Homeland Security Transportation Security Administration - Alliant Energy, IPL and WPL are subject to regulation for physical and cybersecurity of their natural gas pipeline systems, and are applying, and monitoring for changes to, these requirements to their pipeline systems.
Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these updates. Manufactured Gas Plant Sites - Refer to Note 17(e) for discussion of IPL’s and WPL’s MGP sites. Renewable Energy Standards - Iowa and Wisconsin have renewable energy standards, which establish the minimum amount of energy IPL and WPL must supply from renewable resources.
Alliant Energy, IPL and WPL are currently evaluating the proposed 2023 CCR Rule amendments and are unable to predict with certainty the future outcome or impact of these updates. Manufactured Gas Plant Sites - Refer to Note 17(e) for discussion of IPL’s and WPL’s MGP sites.
Water Quality - Effluent Limitation Guidelines - In 2015, the EPA published final effluent limitation guidelines, which required changes to discharge limits for wastewater from certain IPL and WPL steam EGUs.
As a result, Alliant Energy and IPL are currently unable to predict with certainty the future outcome or impact of these matters. Water Quality - Effluent Limitation Guidelines - In 2015, the EPA published final effluent limitation guidelines that required changes to discharge limits for wastewater from certain IPL and WPL steam EGUs.
Prudent expenditures incurred by IPL and WPL to comply with environmental requirements are eligible to be recovered in rates from their customers.
Prudent expenditures incurred by IPL and WPL to comply with environmental requirements are eligible to be recovered in rates from their customers. The following are major environmental matters that could potentially have a significant impact on financial condition and results of operations.
Litigation related to Section 111(b) is suspended while the EPA revises its Section 111(b) regulations, and Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these standards.
The EPA plans to finalize the revised Section 111(b) rule in 2024. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these standards.
INFORMATION RELATING TO ALLIANT ENERGY ON A CONSOLIDATED BASIS 1) HUMAN CAPITAL MANAGEMENT - Alliant Energy’s core purpose is to serve customers and build stronger communities. We constantly strive to attract, retain and develop a diverse and qualified workforce of high-performing employees, and create and foster an environment of inclusion and belonging for all employees.
We constantly strive to attract, retain and develop a diverse and qualified workforce of high-performing employees, and create and foster an environment of inclusion and belonging for all employees.
The new seasonal capacity reserve margins are as follows: 9 Table of Co ntents June 2023 - August 2023 September 2023 - November 2023 December 2023 - February 2024 March 2024 - May 2024 Required installed capacity reserve margin 15.9% 25.8% 41.2% 39.3% Required unforced capacity reserve margin 7.4% 14.9% 25.5% 24.5% Generation Fuel Supply - IPL and WPL own a portfolio of EGUs located in Iowa, Wisconsin and Minnesota with a diversified fuel mix that includes natural gas, renewable resources and coal.
Alliant Energy, IPL and WPL currently plan to construct and/or acquire additional renewable, battery and natural gas resources to meet the requirements of the seasonal resource adequacy process and have reflected the estimated capital expenditures for these projects in the “Generation” lines in the construction and acquisition table in “ Liquidity and Capital Resources .” Seasonal capacity reserve margins are as follows: June 2024 - August 2024 September 2024 - November 2024 December 2024 - February 2025 March 2025 - May 2025 Required installed capacity reserve margin 17.7% 25.2% 49.4% 40.8% Required unforced capacity reserve margin 9.0% 14.2% 27.4% 26.7% Generation Fuel Supply - IPL and WPL own a portfolio of EGUs located in Iowa, Wisconsin and Minnesota with a diversified fuel mix that includes natural gas, renewable resources and coal.
Public Benefits - WPL contributes 1.2% of its annual retail utility revenues to help fund Focus on Energy, Wisconsin’s state-wide energy efficiency and renewable energy resource program. In addition, WPL contributes to a program that provides assistance to income-eligible residents in Wisconsin.
Currently, WPL is required to defer a portion of its earnings if its annual regulatory return on common equity exceeds certain levels. Public Benefits - WPL contributes 1.2% of its annual retail utility revenues to help fund Focus on Energy, Wisconsin’s state-wide energy efficiency and renewable energy resource program.
These include tuition reimbursement, online, instructor-led and on-the-job learning formats, as well as leadership development and succession planning. In addition, we have an apprenticeship program that combines supervised, structured on-the-job training with related instruction to produce highly skilled trade and technical workers. Our program builds lifetime skills and comprehensive knowledge in the high-demand technical trades necessary for our success.
Our programs provide a pipeline of talented students to engage in meaningful, hands-on work experiences. Our apprenticeship program combines supervised, structured on-the-job training with related instruction to produce highly skilled trade and technical workers, and builds lifetime skills and comprehensive knowledge in the high-demand technical trades necessary for our success.
Natural Gas - Alliant Energy, IPL and WPL own several natural gas-fired EGUs, and WPL also has exclusive rights to the output of AEF’s Sheboygan Falls Energy Facility under an affiliated lease agreement. These facilities help meet customer demand for electricity when natural gas prices are low enough to make natural gas-fired generation economical compared to other fuel sources.
These facilities help meet customer demand for electricity when natural gas prices are low enough to make natural gas-fired generation economical compared to other fuel sources.
The program gives us the flexibility to tailor training to match our needs - training employees in our facilities, on our equipment, and consistent with our safety standards and employee expectations. We instill company Values, methods and procedures from day one. 2) REGULATION - Alliant Energy, IPL and WPL are subject to regulation by various federal, state and local agencies.
The apprenticeship program gives us the flexibility to tailor training to match our needs - training employees in our facilities, on our equipment, and consistent with our safety standards and employee expectations.
Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of the anticipated supplemental rule-making. Land and Solid Waste - Coal Combustion Residuals Rule - The CCR Rule, which became effective in 2015, regulates CCR as a non-hazardous waste.
Land and Solid Waste - Coal Combustion Residuals Rule - The CCR Rule, which became effective in 2015, regulates CCR as a non-hazardous waste. IPL and WPL have coal-fired EGUs with coal ash ponds and active CCR landfills that are impacted by this rule.
Public safety is equally important as we interact with our customers to provide energy to their homes and businesses. We offer awareness campaigns, natural gas and electric public safety presentations, and free online resources and training programs and guidance to assist local emergency responders.
We offer awareness campaigns, natural gas and electric public safety presentations, and free online resources and training programs and guidance to assist local emergency responders. Total Rewards - Our market-competitive Total Rewards programs are designed to meet the varied and evolving needs of our employees.
The EPA is working on a new set of Section 111(d) emission guidelines for states to implement Best System of Emission Reduction standards for GHG emissions from existing fossil-fueled EGUs, and has stated that it intends to issue a proposed rule in 2023 and a final rule in 2024, although a timeline cannot be predicted with certainty.
In May 2023, the EPA proposed the revised Section 111(d) rule, which would establish emission guidelines for states to implement Best System of Emission Reduction standards for GHG emissions from existing fossil-fueled EGUs and certain combustion turbines. The proposed requirements would be phased in beginning in 2030. The EPA also proposed to repeal the Affordable Clean Energy rule.
Compliance for existing steam-electric generating facilities is determined by each facility’s wastewater discharge permit and will generally be required by December 31, 2025. Projects required for compliance are facility-specific. In 2021, the current Presidential Administration issued an Executive Order requiring the review and possible revision of environmental regulations issued during the prior Administration.
In 2021, the current Presidential Administration issued an Executive Order requiring the review and possible revision of environmental regulations issued during the prior Administration. As a result, in March 2023, the EPA published a proposed supplemental rule (2023 Supplemental Rule) to revise the guidelines for steam-electric generating facilities.
Resource Adequacy - MISO has resource adequacy requirements to help ensure adequate resources to meet forecasted peak load obligations plus a reserve margin. Only accredited capacity assigned to EGUs is available to meet these requirements.
The allocated auction revenue rights are used by IPL and WPL to acquire FTRs through the FTR auctions operated by MISO. 11 Table of C o ntents Resource Adequacy - MISO has resource adequacy requirements to help ensure adequate resources to meet forecasted peak load obligations plus a reserve margin.
Removed
The following includes the primary regulations impacting Alliant Energy’s, IPL’s and WPL’s businesses.
Added
Development-ready Sites - includes various rail-served and ready-to-build manufacturing and industrial sites throughout Iowa and Wisconsin, with access to various airports, interstate freeways and Alliant Energy’s electric services. B. INFORMATION RELATING TO ALLIANT ENERGY ON A CONSOLIDATED BASIS 1) HUMAN CAPITAL MANAGEMENT - Alliant Energy’s core purpose is to serve customers and build stronger communities.
Removed
Stand-alone battery storage facilities will be considered for advance rate-making principles on a case-by-case basis. Advance rate-making principles are also available for the repowering of an alternative energy production facility or certain significant alterations of an existing EGU.
Added
This leadership provides strong support for sustained growth of both employee and public safety programs and initiatives. 4 Table of C o ntents Public safety is equally important as we interact with our customers to provide energy to their homes and businesses.
Removed
Currently, WPL is required to defer a portion of its earnings if its annual regulatory return on common equity exceeds certain levels. Through 2023, any such deferral is required to be offset against the remaining net book value of Edgewater Unit 5, which is currently expected to be retired by June 1, 2025.
Added
Annually, Alliant Energy awards up to 25 scholarships to children of its current employees and eligible retirees who have achieved excellent records in high school who are pursuing a higher education. Scholarship award recipients may enroll in any accredited two- or four-year college, university or vocational-technical school in the U.S.
Removed
WPL can proceed with an approved project under traditional rate-making terms or accept authorized rate-making principles under Wisconsin law.
Added
These include tuition reimbursement, and online, instructor-led and on-the-job learning formats, as well as leadership development and succession planning. 5 Table of C o ntents As we attract and introduce a diverse pool of candidates to our industry, we have an early careers program that includes apprenticeships, youth programs (high school) and internships (college).
Removed
Marshalltown and West Riverside are subject to the EPA’s Section 111(b) regulation and have been designed to achieve compliance with these standards. The EPA is reviewing the Section 111(b) standards, and has stated it intends to issue a proposed rule in 2023 and a final rule in 2024, although a timeline cannot be predicted with certainty.
Added
We instill company Values, methods and procedures from day one. 2) REGULATION - Alliant Energy, IPL and WPL are subject to regulation by various federal, state and local agencies. The following includes the primary regulations impacting Alliant Energy’s, IPL’s and WPL’s businesses.
Removed
The proposed rule does not apply to Iowa; however, Iowa could be included in the final rule, which is currently expected in 2023. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these matters.
Added
Energy Policy Act of 2005 - The Energy Policy Act of 2005 requires creation of an Electric Reliability Organization to provide oversight by FERC. FERC designated North American Electric Reliability Corporation, which also provides oversight of cybersecurity standards, as the overarching Electric Reliability Organization.
Removed
As a result, the EPA expects to undertake a supplemental rule-making to revise the guidelines for steam-electric generating facilities. As part of the rule-making process, the EPA is expected to determine whether more stringent limitations and standards are appropriate. The 2020 Reconsideration Rule will remain in effect while the EPA undertakes this new rule-making.
Added
Energy Efficiency - In accordance with Iowa law, IPL is required to file an energy efficiency plan (EEP) every five years with the IUB.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe impacts on our operations include: our ability to site and construct new generating facilities, such as renewable energy projects, and recover associated costs, including our ability to continue to use a renewable energy rider in Iowa; our ability to decommission generating facilities and recover related costs and the remaining carrying value of these facilities and related assets; changes to MISO’s resource adequacy process establishing seasonal capacity planning reserve margin and capacity accreditation requirements that may impact how and when new generating facilities such as IPL’s and WPL’s additional solar generation may be accredited with energy capacity, and may require IPL and WPL to adjust their current resource plans, to add resources to meet the requirements of MISO’s new process, or procure capacity in the market whereby such costs might not be recovered in rates; the impact of the lack of availability of existing and new generating facilities has on our accredited capacity for such facilities pursuant to MISO’s new seasonal resource adequacy process; the rates paid to transmission operators and how those costs are recovered from customers, including our ability to continue to use a transmission rider in Iowa; our ability to site, construct and recover costs for new natural gas pipelines; our ability to recover costs to upgrade our electric and gas distribution systems; the amount of certain sources of energy we must use, such as renewable sources; our ability to purchase generating facilities and recover the costs associated therewith; our ability to sell utility assets and any conditions placed upon the sale of such assets; our ability to enter into purchased power agreements and recover the costs associated therewith; the allocation of expenditures by transmission companies on transmission network upgrades and our ability to recover costs associated therewith; reliability; safety; the issuance of securities and ability to use other financing arrangements for our renewable energy projects; accounting matters; and transactions between affiliates.
Biggest changeThe impacts on our operations include: our ability to site and construct new energy facilities, such as renewable energy or battery storage projects, and recover associated costs; our ability to decommission generating facilities and recover related costs and the remaining carrying value of these facilities and related assets; changes to MISO’s resource adequacy process establishing seasonal capacity planning reserve margin and capacity accreditation requirements that may impact how and when new generating facilities such as IPL’s and WPL’s additional solar generation may be accredited with energy capacity, and may require IPL and WPL to adjust their current resource plans, to add resources to meet the requirements of MISO’s seasonal resource adequacy process, or procure capacity whereby such costs might not be recovered in rates; the impact of the lack of availability of existing and new generating facilities has on our accredited capacity for such facilities pursuant to MISO’s seasonal resource adequacy process; IPL’s ability to achieve certain aggregate summer capacity factors under the consumer protection plan for its up to 400 MW of solar generation projects; the rates paid to transmission operators and how those costs are recovered from customers, including our ability to continue to use a transmission rider in Iowa; our ability to site, construct and recover costs for new natural gas pipelines; our ability to recover costs to upgrade our electric and gas distribution systems; the amount of certain sources of energy we must use, such as renewable sources; our ability to purchase generating facilities and recover the costs associated therewith; our ability to sell utility assets and any conditions placed upon the sale of such assets; our ability to enter into purchased power agreements and recover the costs associated therewith; the allocation of expenditures by transmission companies on transmission network upgrades and our ability to recover costs associated therewith; reliability; safety; the issuance of securities and ability to use other financing arrangements for our renewable energy projects; accounting matters; and transactions between affiliates.
(MISO) energy market and/or required to purchase replacement capacity to comply with electric demand planning reserve margins. We may be obligated to pay for coal deliveries under our contracts even if our coal-fired generating facilities do not operate enough to fully utilize the amounts of coal covered by the contracts.
(MISO) energy market and/or be required to purchase replacement capacity to comply with electric demand planning reserve margins. We may be obligated to pay for coal deliveries under our contracts even if our coal-fired generating facilities do not operate enough to fully utilize the amounts of coal covered by the contracts.
Storms or other natural disasters may impact our operations in unpredictable ways - Storms and other natural disasters, including events such as floods, tornadoes, windstorms like the 2020 derecho in Iowa, blizzards, ice storms, extreme hot temperatures, extreme cold temperatures, fires, solar flares or pandemics may adversely impact our ability to generate, purchase or distribute electric energy and gas or obtain fuel or other critical supplies.
Storms or other natural disasters may impact our operations in unpredictable ways - Storms and other natural disasters, including events such as floods, tornadoes, windstorms like the 2020 derecho in Iowa, blizzards, ice storms, extreme hot temperatures, extreme cold temperatures, fires, wildfires, solar flares or pandemics may adversely impact our ability to generate, purchase or distribute electric energy and gas or obtain fuel or other critical supplies.
Increases in prices and costs due to disruptions that are not recovered in rates fully, in a timely manner, may adversely impact our financial condition and results of operations. Energy industry changes could have a negative effect on our businesses - We operate in a highly regulated business environment.
Increases in prices and costs due to disruptions that are not recovered in rates fully or not recovered in a timely manner, may adversely impact our financial condition and results of operations. Energy industry changes could have a negative effect on our businesses - We operate in a highly regulated business environment.
We could incur costs or other obligations to comply with future GHG regulations, and could become the target of legal claims or challenges, because generating electricity using fossil fuels emits CO2 and other GHGs.
We could incur costs or other obligations to comply with future GHG regulations, and could become the target of legal claims or challenges, because generating electricity using fossil fuels emits GHGs.
The impact of supply chain disruptions, COVID-19 and other factors continue to create uncertainty in near-term economic conditions, including whether inflation will continue and at what rate. Increases in inflation raise our costs for labor, materials and services. Inflation may also cause interest rates to increase, increasing our cost of capital.
The impact of supply chain disruptions and other factors continue to create uncertainty in near-term economic conditions, including whether inflation will continue and at what rate. Increases in inflation raise our costs for labor, materials and services. Inflation may also cause interest rates to increase, increasing our cost of capital.
Due to the evolving nature of cyber attacks and cyber security, our current safeguards to protect our operating systems and information technology assets may not always be effective. We rely on third parties for software to protect against cyber attacks and we are at risk if such third parties are targets of cyber attacks.
Due to the evolving nature of cyber attacks and cybersecurity, our current safeguards to protect our operating systems and information technology assets may not always be effective. We rely on third parties for software to protect against cyber attacks and we are at risk if such third parties are targets of cyber attacks.
Our counterparties to these contracts may not fulfill their obligations to provide natural gas or coal to us due to financial or operational problems caused by natural disasters, severe weather, economic conditions, labor shortages, employee strikes, transportation issues, pandemics, physical attacks or cyber attacks.
Our counterparties to these contracts may not fulfill their obligations to provide natural gas, coal, financial settlements or collateral to us due to financial or operational problems caused by natural disasters, severe weather, economic conditions, labor shortages, employee strikes, transportation issues, pandemics, physical attacks or cyber attacks.
We are also subject to collective bargaining agreements covering approximately 1,700 employees. Any work stoppage experienced in connection with negotiations of collective bargaining agreements could adversely affect our financial condition and results of operations as well as our ability to implement our strategy.
We are also subject to collective bargaining agreements covering approximately 1,800 employees. Any work stoppage experienced in connection with negotiations of collective bargaining agreements could adversely affect our financial condition and results of operations as well as our ability to implement our strategy.
We could face additional pressures from customers, investors or other stakeholders to more rapidly reduce CO2 emissions on a voluntary-basis, including faster adoption of lower CO2 emitting technologies and management of excess renewable energy credits.
We could face additional pressures from customers, investors or other stakeholders to more rapidly reduce GHG emissions on a voluntary-basis, including faster adoption of lower GHG emitting technologies and management of excess renewable energy credits.
We are also responsible for compliance with new and changing regulatory standards involving safety, reliability and environmental compliance, including regulations under the Pipeline and Hazardous Materials Safety Administration, the Occupational Health and Safety Administration, the North American Electric Reliability Corporation and Transportation Security Administration. Failure to meet these regulatory standards could result in substantial fines.
We are also responsible for compliance with new and changing regulatory standards involving safety, reliability and environmental compliance, including regulations under the Pipeline and Hazardous Materials Safety Administration, the Occupational Health and Safety Administration, the North American Electric Reliability Corporation and the Department of Homeland Security Transportation Security Administration. Failure to meet these regulatory standards could result in substantial fines.
The global supply chain has experienced, and is expected to continue to experience, disruptions due to a multitude of factors, such as geopolitical issues, supplier manufacturing constraints, labor issues, transportation issues, resource availability, long lead times, tariffs, tighter credit markets, inflation, the COVID-19 pandemic and weather.
The global supply chain has experienced, and is expected to continue to experience, disruptions due to a multitude of factors, such as geopolitical issues, supplier manufacturing constraints, labor issues, transportation issues, resource availability, long lead times, tariffs, tighter credit markets, inflation, pandemics and weather.
We are also subject to oversight and monitoring by organizations such as the North American Electric Reliability Corporation, the Midwest Reliability Organization, the Pipeline and Hazardous Materials Safety Administration, MISO and the Transportation Security Administration.
We are also subject to oversight and monitoring by organizations such as the North American Electric Reliability Corporation, the Midwest Reliability Organization, the Pipeline and Hazardous Materials Safety Administration, MISO and the Department of Homeland Security Transportation Security Administration.
We face risks associated with operating electric and natural gas infrastructure - The operation of electric generation and distribution infrastructure involves many risks, including start-up risks, breakdown or failure of equipment, fires developing from our power lines, transformers or substations, dam failure at one of our hydroelectric facilities, the dependence on a specific fuel source, including the supply and transportation of fuel, the risk of performance below expected or contracted levels of output or efficiency, public and employee safety, operator error and ruptured oil and chemical tanks.
We face risks associated with operating electric and natural gas infrastructure - The operation of electric generation and distribution infrastructure involves many risks, including start-up risks, breakdown or failure of equipment, fires developing from our power lines, transformers, energy storage facilities, or substations, dam failure at one of our hydroelectric facilities, the dependence on a specific fuel source, including the supply and transportation of fuel, the risk of performance below expected or contracted levels of output or efficiency, members of the public or contractors coming into contact with our infrastructure, public and employee safety, operator error and ruptured oil and chemical tanks.
Environmental laws and regulations affecting power generation and electric and gas distribution are complex and subject to continued uncertainty and could be changed by the current Presidential Administration. These laws and regulations have imposed, and proposed laws and regulations could impose in the future, additional costs on our utility operations.
Environmental laws and regulations affecting power generation and electric and gas distribution are complex and subject to continued uncertainty and could be changed by the current or future Presidential or Gubernatorial Administrations. These laws and regulations have imposed, and proposed laws and regulations could impose in the future, additional costs on our utility operations.
We may not be able to pass on all of the changes in costs to our customers, especially at WPL where we do not have an automatic retail electric fuel cost adjustment clause to timely recover such costs and where electric fuel cost recovery may be limited if WPL earns in excess of its authorized return on common equity.
We may not be able to pass on all of the changes in costs to our customers, especially at WPL where we do not have an automatic retail electric fuel cost adjustment 17 Table of C o ntents clause to timely recover such costs and where electric fuel cost recovery may be limited if WPL earns in excess of its authorized return on common equity.
If we cannot generate enough taxable income in the future to utilize all of the tax credit carryforwards before they expire due to lower than expected financial performance or changes to tax regulations, we may incur material charges to earnings. The Inflation Reduction Act of 2022 allows for the sale or transfer of renewable tax credits to other taxpayers.
If we cannot generate enough taxable income in the future to utilize all of the tax credit carryforwards before they expire due to lower than expected financial performance or changes to tax regulations, we may incur material charges to earnings. The IRA Act allows for the sale or transfer of eligible renewable tax credits to other taxpayers.
Increased competition in our primary retail electric service territories may have an adverse impact on our financial condition and results of operations. 17 Table of Co ntents We face risks related to non-utility operations - We rely on our non-utility operations for a portion of our earnings.
Increased competition in our primary retail electric service territories may have an adverse impact on our financial condition and results of operations. We face risks related to non-utility operations - We rely on our non-utility operations for a portion of our earnings.
Risks Related to Business Operations A cyber attack may disrupt our operations or lead to a loss or misuse of confidential and proprietary information or potential liability - We operate in an industry that requires the continuous use and operation of sophisticated information technology systems and network infrastructure.
Risks Related to Business Operations A cyber attack may disrupt our operations or lead to a loss or misuse of confidential and proprietary information or potential liability - We operate in an industry that requires the continuous use and operation of information and telecommunications systems.
Further, the electric transmission system in our utilities’ service territories can experience constraints, limiting the ability to transmit electricity within our service territories. The transmission constraints could result in an inability to deliver 16 Table of Co ntents electricity from generating facilities, particularly wind generating facilities, to the national grid, or to access lower cost sources of electricity.
Further, the electric transmission system in our utilities’ service territories can experience constraints, limiting the ability to transmit electricity within our service territories. The transmission constraints could result in an inability to deliver electricity from generating facilities, particularly wind and solar generating facilities, to the national grid, or to access lower cost sources of electricity.
Energy demand may decrease due to many things, including proliferation of customer and third party-owned generation, technological advances that reduce the costs of renewable energy and storage solutions for our customers, government policies, such as the Inflation Reduction Act of 2022, which incentivize customer and third party-owned generation, loss of service territory or franchises, energy efficiency measures, technological advances that improve energy efficiency, third-party disrupters, loss of wholesale customers, the adverse impact of tariffs on our customers, and economic conditions.
Energy demand may decrease due to many things, including economic conditions, proliferation of customer and third party-owned generation, technological advances that reduce the costs of renewable energy and storage solutions for our customers, government policies, such as the Inflation Reduction Act of 2022 (IRA Act), which incentivize customer and third party-owned generation, loss of service territory or franchises, energy efficiency measures, technological advances that improve energy efficiency, third-party disrupters, loss of wholesale customers, loss of customers that pursue their own renewable projects to achieve specific sustainability goals, and the adverse impact of tariffs on our customers.
If we were unable to obtain enough natural gas or coal for our electric generating facilities under our existing contracts, or to obtain electricity under existing or future purchased power agreements, we could be required to purchase natural gas or coal at higher prices, forced to purchase electricity from higher-cost generating resources in the Midcontinent Independent System Operator, Inc.
If we were unable to obtain enough natural gas or coal for our electric generating facilities under our existing contracts, or to obtain electricity under existing or future purchased power agreements, we could be required to purchase natural gas or coal at higher prices, need to secure higher cost delivery of natural gas or coal, be forced to curtail the operation of our natural gas-fired or coal-fired generating facilities, be forced to purchase electricity from higher-cost generating resources in the Midcontinent Independent System Operator, Inc.
These tax planning strategies and bonus depreciation deductions have generated large tax credit carryforwards. We plan to utilize all of these tax credit carryforwards in the future to reduce our income tax obligations.
These tax planning strategies and bonus depreciation deductions have reduced taxable income, which in turn has generated large tax credit carryforwards. We plan to utilize all of these tax credit carryforwards in the future to reduce our income tax obligations.
Our strategy includes large construction projects, which are subject to risks - Our strategy includes constructing renewable generating facilities and large-scale additions and upgrades to our electric and gas distribution systems. These construction projects are subject to various risks.
Our strategy includes large construction projects, which are subject to risks - Our strategy includes constructing renewable generating facilities, energy storage facilities, natural gas-fired generating facilities and large-scale additions and upgrades to our electric and gas distribution systems and generating assets. These construction projects are subject to various risks.
The operation of our natural gas distribution and transportation infrastructure also involves many risks, such as leaks, explosions, mechanical problems, members of the public and contractors coming into contact with our infrastructure, and employee and public safety.
The operation of our natural gas distribution and transportation infrastructure also involves many risks, such as leaks, explosions, mechanical problems, members of the 16 Table of C o ntents public or contractors coming into contact with our infrastructure, and employee and public safety.
Failure to obtain approvals for any of these matters in a timely manner, or receipt of approvals with uneconomical conditions, may cause us not to pursue the construction of such projects or to record an impairment of our assets and may have a material adverse impact on our financial condition and results of operations.
Failure to obtain approvals for any of these matters in a timely manner, or receipt of approvals with uneconomical conditions, may cause us not to pursue the construction of such projects, or to record an impairment of our assets, or may cause a delay in construction of such projects such that we are not able to meet new demand growth, and may have a material adverse impact on our financial condition and results of operations.
Failure to timely recover these increased costs in rates may adversely impact our financial condition and results of operations. Further, increased costs due to inflation will directly and indirectly increase customer costs, which may decrease demand for energy and adversely impact our financial condition and results of operations.
Failure to timely recover these increased costs in rates may adversely impact our financial condition and results of operations. Further, increased costs due to inflation will directly and indirectly increase customer costs, which may decrease demand for energy or impact our customers’ ability to pay their bills, which could adversely impact our financial condition and results of operations.
The amount of production tax credits we earn is dependent on the date the qualifying generating facilities are placed in service, the level of electricity output generated by our qualifying generating facilities and 18 Table of Co ntents sold to an unrelated buyer, and the applicable tax credit rate.
The amount of production tax credits we earn is dependent on the level of electricity output generated by our qualifying generating facilities and sold to an unrelated buyer, and the applicable tax credit rate.
Lastly, we have obligations to provide electric and natural gas service to customers under regulatory requirements and contractual commitments. Failure to meet our service obligations could adversely impact our financial condition and results of operations.
Lastly, we have obligations to provide electric and natural gas service to customers under regulatory requirements and contractual commitments. Failure to meet our service obligations, and failure of IPL’s solar generating facilities to achieve a certain level of output, could adversely impact our financial condition and results of operations.
Furthermore, it could affect the timing of peak demand and overall energy consumption of our customers. We cannot provide any assurance regarding the potential impacts of climate change or related policies and regulations to reduce GHG emissions on our operations and these could have a material adverse impact on our financial condition and results of operations.
We cannot provide any assurance regarding the potential impacts of climate change or related policies and regulations to reduce GHG emissions on our operations, which could have a material adverse impact on our financial condition and results of operations.
In future rate reviews, IPL and WPL may not receive an adequate amount of rate relief to recover all costs and earn their authorized rates of return, rates may be reduced, rate refunds may be required, rate adjustments may not be approved on a timely basis, costs may not be otherwise recovered through rates, future rates may be temporarily frozen, certain rate base items may not receive a full weighted average cost of capital, and authorized rates of return on capital may be reduced.
IPL and WPL may not receive an adequate amount of rate relief to recover all costs and earn their authorized rates of return, rates may be reduced, rate refunds may be required, rate adjustments may not be approved on a timely basis, costs may not be otherwise recovered through rates, future rates may be temporarily frozen, laws or rules may limit the ability to file rate adjustments or the period covered by a rate adjustment, regulatory decisions may limit the ability to defer recovery of and a return on prudently incurred costs in between rate reviews, certain rate base items may not receive a full weighted average cost of capital, and authorized rates of return on capital may be reduced.
If the technology systems were to fail or be breached by a cyber attack or a computer virus, and not be recovered in a timely fashion, we may be unable to fulfill critical business functions and confidential data could be compromised, adversely impacting our financial condition and results of operation.
If the technology systems were to fail or be breached by a cyber attack or a computer virus, and not be recovered in a timely fashion, we may be unable to fulfill critical business functions and confidential data could be compromised, adversely impacting our financial condition and results of operation. 15 Table of C o ntents In addition, we use information technology systems to collect and retain sensitive information, including personal information about our customers, shareowners and employees.
Our utility business currently operates wind and solar generating facilities, which generate production tax credits for us to use to reduce our federal tax obligations.
Our utility business currently operates wind and solar generating facilities, which generate production tax credits that are eligible to be used to reduce our federal tax obligations.
Disruption, uncertainty or volatility in the capital markets could increase our cost of capital or limit our ability to raise funds needed to operate our businesses.
We have forecasted capital expenditures of approximately $9 billion over the next four years. Disruption, uncertainty or volatility in the capital markets could increase our cost of capital or limit our ability to raise funds needed to operate our businesses.
Risks Related to Economic, Financial and Labor Market Conditions We are subject to employee workforce factors that could affect our businesses - We operate in an industry that requires specialized technical skills.
Risks Related to Economic, Financial and Labor Market Conditions We are subject to employee workforce factors that could affect our businesses - We operate in an industry that requires specialized technical skills. Further, we must build a workforce that is innovative, customer-focused and competitive to thrive in the future in order to successfully implement our strategy.
This could result in rapid increased demand for alternative non-fossil energy sources and economy-wide electrification. Changes to regional and local climate trends such as the frequency, seasonality, and severity of weather conditions could directly and indirectly impact our company. Acute and chronic physical risks could disrupt our operations or affect our property.
Changes to regional and local climate trends such as the frequency, seasonality, and severity of weather conditions could directly and indirectly impact our company. Acute and chronic physical risks could disrupt our operations or affect our property. Furthermore, it could affect the timing of peak demand and overall energy consumption of our customers.
The timing and pace to fully achieve decarbonization is also contingent on the future development of technologies to reliably store and manage electricity, as well as electrification of other economic sectors.
The pace and feasibility to fully achieve decarbonization is also contingent on the future development and full-scale deployment of emerging energy technologies and supporting infrastructure, as well as electrification of other economic sectors.
Provisions of the Wisconsin Utility Holding Company Act may limit our ability to invest in or grow our non-utility activities and may deter potential purchasers who might be willing to pay a premium for our stock.
Provisions of the Wisconsin Utility Holding Company Act may limit our ability to invest in or grow our non-utility activities and may deter potential purchasers who might be willing to pay a premium for our stock. 18 Table of C o ntents Our utility businesses are subject to numerous environmental laws and regulations - Our utilities are subject to numerous federal, regional, state and local environmental laws, regulations, court orders, and international treaties.
There can be no assurance that we would be able to recover all or any increased environmental costs from our customers. Failure to comply with the laws, regulations and court orders, changes in the laws and regulations and failure to recover costs of compliance may adversely impact our financial condition and results of operations.
Failure to comply with the laws, regulations and court orders, changes in the laws and regulations and failure to recover costs of compliance may adversely impact our financial condition and results of operations.
Failure to meet these requirements on future renewable projects could result in a significant reduction in the amount of renewable tax credits, which could adversely impact our financial condition and results of operations.
The IRA Act introduced new labor requirements that are required to qualify for the full value of renewable tax credits. Failure to meet these requirements on renewable projects that began construction after January 28, 2023 could result in a significant reduction in the amount of renewable tax credits, which could adversely impact our financial condition and results of operations.
Our strategic plan includes developing storage facilities, which are expected to generate investment tax credits. Investment tax credits are dependent on the date the qualifying generating facilities begin and end construction and the costs of the qualifying generating facilities.
Our utility business is developing battery storage facilities, which are expected to generate investment tax credits. Investment tax credits are dependent on the tax capitalized costs of the qualifying generating facilities and the applicable tax credit rate.
Poor investment returns or lower interest rates may necessitate 20 Table of Co ntents accelerated funding of the plans to meet minimum federal government requirements, which could have an adverse impact on our financial condition and results of operations. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
Recessions and volatility in the domestic and international financial markets have negatively affected the asset values of our pension plans at various times in the past. Poor investment returns or lower interest rates may necessitate accelerated funding of the plans to meet minimum federal government requirements, which could have an adverse impact on our financial condition and results of operations.
Any disruption of these operations could result in a loss of service to customers and a significant decrease in revenues, as well as significant expense to repair system damage and remedy security breaches.
We have relied on a global supply chain for certain components of our operating and technology systems, which may increase our exposure to cyber attacks. Any disruption of these operations could result in a loss of service to customers and a significant decrease in revenues, as well as significant expense to repair system damage and remedy security breaches.
Any required payments on retained liabilities, guarantees or indemnification obligations with respect to Whiting Petroleum or other past and future asset or business divestitures could adversely impact our financial condition and results of operations.
Any required payments on retained liabilities, guarantees or indemnification obligations with respect to Whiting Petroleum or other past and future asset or business divestitures could adversely impact our financial condition and results of operations. 20 Table of C o ntents We are dependent on the capital markets and could be negatively impacted by disruptions in the capital markets - Successful implementation of our strategy is dependent upon our ability to access the capital markets.
If there is a disagreement on the dates construction began and ended or the qualifying costs, the amount of investment tax credits awarded may be significantly reduced, possibly adversely impacting our financial condition and results of operations. The Inflation Reduction Act of 2022 introduced new labor requirements that are required to qualify for the full value of renewable tax credits.
If there is a disagreement on the qualifying costs or whether the facility qualifies for higher levels of investment tax credits, the amount of investment tax credits awarded may be significantly reduced, possibly adversely impacting our financial condition and results of operations.
We may not be able to meet capacity requirements to comply with electric demand planning reserve margins if a construction project is not completed or is delayed. Inability to recover costs, or inability to complete projects in a timely manner, could adversely impact our financial condition and results of operations.
Inability to recover costs, or inability to complete projects or recover costs in a timely manner, could adversely impact our financial condition and results of operations.
We face threats from use of malicious code (such as malware, viruses and ransomware), employee theft or misuse, advanced persistent threats, vulnerabilities such as the log4j vulnerability, fraud attempts, and phishing attacks. More of our workforce is working remotely, which increases the number of devices connected to the internet that impact our operations and increases our cyber security risk.
We face threats from use of malicious code (such as malware, viruses and ransomware), employee theft or misuse, advanced persistent threats, vulnerabilities (such as the log4j and MOVEit vulnerabilities), fraud attempts, and phishing attacks. Incidents of ransomware attacks have been increasing in frequency and magnitude.
The labor market for our employees is very competitive, increasing the likelihood that we may lose critical employees or have difficulty hiring qualified employees for critical roles. Critical employees are being hired at a higher cost.
We have seen and anticipate a steady pace of retirements due to our aging workforce. The labor market for our employees is very competitive, increasing the likelihood that we may lose critical employees or have difficulty hiring qualified employees for critical roles and not have enough time to adequately train employees to prepare for upcoming retirements.
Potential future requirements to reduce CO2, methane and other GHGs from the energy and manufacturing sectors could affect our operations in various ways. Regulation or legislation mandating CO2 emissions reductions or other clean energy standards affecting utility companies could materially increase costs, causing some electric generating units to be uneconomical to operate or maintain.
Regulation or legislation mandating GHG emissions reductions or other clean energy standards affecting utility companies could materially increase costs, causing some electric generating units to be uneconomical to operate or maintain. We are vulnerable to potential risks associated with transition to a lower-carbon economy that may extend to our supply chain and natural gas operations.
Cyber attacks targeting electronic control systems used at our generating facilities and for electric and gas distribution systems could result in a full or partial disruption of our electric and/or gas operations. We have relied on a global supply chain for certain components of our operating and technology systems, which may increase our exposure to cyber attacks.
Emerging artificial intelligence technologies may be used to develop new hacking tools, exploit vulnerabilities, obscure malicious activities, and increase the difficulty detecting threats. Cyber attacks targeting electronic control systems used at our generating facilities and for electric and gas distribution systems could result in a full or partial disruption of our electric and/or gas operations.
We are vulnerable to potential risks associated with transition to a lower-carbon economy that may extend to our supply chain and natural gas operations. Regulation of oil and gas production could affect our upstream supply of natural gas for electricity generation and to provide directly to our residential and business customers from our local distribution company.
Regulation of oil and gas production could affect our upstream supply of natural gas for electricity generation and to provide directly to our residential and business customers from our local distribution company. This could result in rapid increased demand for alternative non-fossil energy sources and economy-wide electrification.
If we are unable to sell renewable tax credits at reasonable terms, that could materially impact our tax credit carryforward position. In addition, our tax liability is determined by our taxable income multiplied by the current tax rates in effect. If the tax rates are increased, we may experience adverse impacts to our financial condition and results of operations.
Repeal or amendment of the IRA Act, or portions of the IRA Act, could have an adverse impact on our financial condition and results of operations. In addition, our tax liability is determined by our taxable income multiplied by the current tax rates in effect.
In addition, we may collect and retain sensitive information, including personal information about our customers, shareowners and employees. In some cases, we outsource administration of certain functions to vendors that could be targets of cyber 15 Table of Co ntents attacks.
In some cases, we outsource administration of certain functions to vendors that have been or could be targets of cyber attacks.
Actions related to global climate change and reducing greenhouse gas (GHG) emissions could negatively impact us - Regulators, customers and investors continue to raise concerns about climate change and GHG emissions. National regulatory action and international regulatory actions continue to evolve.
Actions related to global climate change and reducing greenhouse gas (GHG) emissions could negatively impact us - We have established GHG reduction goals and continue to review our strategy and our role in supporting the transition to a low-carbon economy.
The EPA’s approach and timing for implementing rules to regulate CO2 emissions at fossil-fuel fired electric generating units remains undecided and subject to litigation and could change in the current Presidential Administration. Various legislative and regulatory proposals to address climate change at the national, state and local levels continue to be introduced.
Various legislative and regulatory proposals to address climate change at the national, state and local levels continue to be introduced. Potential future requirements to reduce GHGs from the energy and manufacturing sectors could affect our operations in various ways.
We plan to sell a substantial amount of our eligible renewable tax credits in future years. This is a new market that will require regulations and guidance from taxing authorities. It is unclear what terms and pricing the sale of renewable tax credits will require.
We plan to sell a substantial amount of our eligible renewable tax credits.
Removed
Incidents of ransomware attacks have been increasing in frequency and magnitude, including the ransomware attack that resulted in the operator of the Colonial Pipeline paying millions of dollars in ransom to hackers as a result of a cyber attack disabling the pipeline for several days in 2021.
Added
Measures taken to avoid, detect, mitigate or recover from cybersecurity breaches or incidents may be insufficient or become ineffective, and there are no assurances that cybersecurity breaches or incidents will not impact our business, operations and financial condition.
Removed
For example, we outsource administration of our employee health insurance to Anthem, which was the target of a cyber attack in 2014.
Added
We outsource certain business functions to third-party suppliers and service providers, and substandard performance by those third parties could harm our business, reputation and results of operations.
Removed
If there is a disagreement on the in-service date, the amount of production tax credits that we can generate may be significantly reduced.
Added
For example, WPL has notified the PSCW that its solar generating facility developments have exceeded the approved costs. We may not be able to meet capacity requirements to comply with electric demand planning reserve margins if a construction project is not completed or is delayed.
Removed
Our utility businesses are subject to numerous environmental laws and regulations - Our utilities are subject to numerous federal, regional, state and local environmental laws, regulations, court orders, and international treaties.
Added
Our utility business also operates wind and solar generating facilities that sell electricity in the MISO energy market. If MISO energy market prices result in unfavorable pricing for wind or solar energy, this may reduce the energy market revenue produced by those facilities and result in higher electricity costs that would need to be recovered from customers.
Removed
We are focused on executing a long-term strategy to deliver safe, reliable and affordable energy with lower carbon dioxide (CO2) emissions independent of changing policies and political landscape. However, it is unclear how these climate change concerns will ultimately impact us.
Added
Our future plans and existing operations may be impacted by changing expectations, including heightened emphasis on environmental and social justice concerns related to supporting an equitable transition to cleaner energy and a low-carbon economy. There can be no assurance that we would be able to recover all or any increased environmental costs from our customers.
Removed
Further, we must build a workforce that is innovative, customer-focused and competitive to thrive 19 Table of Co ntents in the future in order to successfully implement our strategy. We have seen an increase in retirements due to our aging workforce and the recent impact of rising interest rates on pension plan benefits.
Added
However, the ability to achieve our GHG reduction goals and implement our strategy is subject to uncertainties as to how climate change concerns will ultimately impact us and various factors that may be out of our control. These uncertainties include transition risks related to laws and regulations, technology and business operations, or economic and market conditions.
Removed
We are dependent on the capital markets and could be negatively impacted by disruptions in the capital markets - Successful implementation of our strategy is dependent upon our ability to access the capital markets. We have forecasted capital expenditures of approximately $8 billion over the next four years.
Added
In addition, there are physical risks associated with adapting to changing climate conditions and extreme weather events. Further, assessment of the science to evaluate and limit global temperature rise continues to evolve.
Removed
Recessions and volatility in the domestic and international financial markets have negatively affected the asset values of our pension plans at various times in the past.
Added
We may not be able to recover all costs for projects to reduce GHG emissions in rates if regulators determine that the pace of GHG emissions efforts or new technologies are not prudent.
Added
The extent of the EPA’s proposed rules to regulate GHG emissions at fossil-fuel fired electric generating units and specific impacts, including state plans to implement the emissions reductions, remains uncertain. There could also be changes by the current or future Presidential or Gubernatorial Administrations.
Added
The inability to sell renewable tax credits at reasonable terms, or if renewable tax credits that we generate or sell are determined to not be eligible or eligible at a different rate, could materially impact our tax credit carryforward position or result in liability to purchasers of the tax credits.
Added
If the federal or state tax rates are increased, 19 Table of C o ntents we may experience adverse impacts to our financial condition and results of operations until those rates are reflected in our regulatory filings.

Item 2. Properties

Properties — owned and leased real estate

7 edited+2 added−0 removed2 unchanged
Biggest changeThe principal properties of those subsidiaries are as follows: IPL and WPL Electric - At December 31, 2022, IPL’s and WPL’s facilities by primary fuel type were as follows: IPL Generating In-service Capacity Name of Facility and Location Dates in MW (a) Marshalltown Generating Station (Units 1-3); Marshalltown, IA 2017 528 Emery Generating Station (Units 1-3); Mason City, IA 2004 514 Burlington Generating Station (Unit 1); Burlington, IA 1968 162 Marshalltown Combustion Turbines (Units 1-3); Marshalltown, IA 1978 141 Prairie Creek Generating Station (Unit 4); Cedar Rapids, IA 1967 99 Burlington Combustion Turbines (Units 1-4); Burlington, IA 1994-1996 32 Total Gas 1,476 Upland Prairie (121 Units); Clay and Dickinson Cos., IA 2019 299 Whispering Willow - North (81 Units); Franklin Co., IA 2020 201 Whispering Willow - East (121 Units); Franklin Co., IA 2009 200 Golden Plains (82 Units); Winnebago and Kossuth Cos., IA 2020 200 English Farms (69 Units); Poweshiek Co., IA 2019 172 Richland (53 Units); Sac Co., IA 2020 131 Franklin County (60 Units); Franklin Co., IA 2012 99 Total Wind 1,302 Ottumwa Generating Station (Unit 1); Ottumwa, IA (b) 1981 309 Lansing Generating Station (Unit 4); Lansing, IA 1977 146 George Neal Generating Station (Unit 4); Sioux City, IA (c) 1979 158 George Neal Generating Station (Unit 3); Sioux City, IA (d) 1975 137 Prairie Creek Generating Station (Units 1 and 3); Cedar Rapids, IA 1958-1997 31 Louisa Generating Station (Unit 1); Louisa, IA (e) 1983 29 Total Coal 810 Lime Creek Combustion Turbines (Units 1-2); Mason City, IA 1991 63 Total Oil 63 Dubuque Solar Facility; Dubuque, IA 2017 5 Marshalltown Solar Facility; Marshalltown, IA 2020 3 Total Solar 8 Battery Storage; Decorah, Wellman and Marshalltown, IA 2019-2021 4 Total Battery Storage 4 Total capacity 3,663 21 Table of Co ntents WPL Generating In-service Capacity Name of Facility and Location Dates in MW (a) Riverside Energy Center (Units 1-3); Beloit, WI 2004 438 West Riverside Energy Center (Units 1-3); Beloit, WI (f) 2020 436 Neenah Energy Facility (Units 1-2); Neenah, WI 2000 289 South Fond du Lac Combustion Turbines (2 Units); Fond du Lac, WI (g) 1994 162 Total Gas 1,325 Bent Tree (122 Units); Freeborn Co., MN 2010-2011 201 Kossuth (56 Units); Kossuth Co., IA 2020 152 Cedar Ridge (41 Units); Fond du Lac Co., WI 2008 68 Forward Wind Energy Center (37 Units); Dodge and Fond du Lac Cos., WI (h) 2008 59 Total Wind 480 Columbia Energy Center (Units 1-2); Portage, WI (i) 1975-1978 584 Edgewater Generating Station (Unit 5); Sheboygan, WI 1985 356 Total Coal 940 Wood County Solar Facility, Wood Co., WI 2022 150 Bear Creek Solar Facility, Richland Co., WI 2022 50 North Rock Solar Facility, Rock Co., WI 2022 50 West Riverside Solar Facility, Beloit, WI (j) 2021 4 Customer- and Community-hosted Solar; various locations in WI 2021-2022 4 Total Solar 258 Prairie du Sac Hydro Plant (8 Units); Prairie due Sac, WI 1914-1940 13 Kilbourn Hydro Plant (4 Units); Wisconsin Dells, WI 1926-1939 6 Total Hydro 19 Battery Storage; Portage, WI 2022 5 Total Battery Storage 5 Total capacity 3,027 (a) Based on the accredited generating capacity included in MISO’s resource adequacy process for the planning period from June 2022 through May 2023, except for wind facilities, solar facilities and battery storage, which are based on nameplate capacity.
Biggest changeThe principal properties of those subsidiaries are as follows: 22 Table of C o ntents IPL and WPL Electric - At December 31, 2023, IPL’s and WPL’s facilities by primary fuel type were as follows: IPL Generating In-service Capacity Name of Facility and Location Dates in MW (a) Marshalltown Generating Station (Units 1-3); Marshalltown, IA 2017 656 Emery Generating Station (Units 1-3); Mason City, IA 2004 533 Marshalltown Combustion Turbines (Units 1-3); Marshalltown, IA 1978 162 Burlington Generating Station (Unit 1); Burlington, IA 1968 160 Prairie Creek Generating Station (Unit 4); Cedar Rapids, IA 1967 114 Burlington Combustion Turbines (Units 1-4); Burlington, IA 1994-1996 36 Total Gas 1,661 Upland Prairie (121 Units); Clay and Dickinson Cos., IA 2019 299 Whispering Willow - North (81 Units); Franklin Co., IA 2020 201 Whispering Willow - East (121 Units); Franklin Co., IA 2009 200 Golden Plains (82 Units); Winnebago and Kossuth Cos., IA 2020 200 English Farms (69 Units); Poweshiek Co., IA 2019 172 Richland (53 Units); Sac Co., IA 2020 131 Franklin County (60 Units); Franklin Co., IA 2012 99 Total Wind 1,302 Ottumwa Generating Station (Unit 1); Ottumwa, IA (b) 1981 348 George Neal Generating Station (Unit 4); Sioux City, IA (c) 1979 166 George Neal Generating Station (Unit 3); Sioux City, IA (d) 1975 143 Prairie Creek Generating Station (Units 1 and 3); Cedar Rapids, IA 1958-1997 36 Louisa Generating Station (Unit 1); Louisa, IA (e) 1983 30 Total Coal 723 Lime Creek Combustion Turbines (Units 1-2); Mason City, IA 1991 71 Total Oil 71 Dubuque Solar Facility; Dubuque, IA 2017 5 Marshalltown Solar Facility; Marshalltown, IA 2020 3 Total Solar 8 Battery Storage; various locations in IA 2019-2023 9 Total Battery Storage 9 Total capacity 3,774 23 Table of C o ntents WPL Generating In-service Capacity Name of Facility and Location Dates in MW (a) Riverside Energy Center (Units 1-3); Beloit, WI 2004 530 West Riverside Energy Center (Units 1-3); Beloit, WI (f) 2020 508 Neenah Energy Facility (Units 1-2); Neenah, WI 2000 299 South Fond du Lac Combustion Turbines (2 Units); Fond du Lac, WI (g) 1994 164 Total Gas 1,501 Bent Tree (122 Units); Freeborn Co., MN 2010-2011 201 Kossuth (56 Units); Kossuth Co., IA 2020 152 Cedar Ridge (41 Units); Fond du Lac Co., WI 2008 68 Forward Wind Energy Center (37 Units); Dodge and Fond du Lac Cos., WI (h) 2008 59 Total Wind 480 Columbia Energy Center (Units 1-2); Portage, WI (i) 1975-1978 606 Edgewater Generating Station (Unit 5); Sheboygan, WI 1985 406 Total Coal 1,012 Wood County Solar Facility, Wood Co., WI 2022 150 Onion River Solar Facility, Sheboygan Co., WI 2023 150 Springfield Solar Facility, Dodge Co., WI 2023 100 Wautoma Solar Facility, Waushara Co., WI 2023 99 Crawfish River Solar Facility, Jefferson Co., WI 2023 75 Paddock Solar Facility, Rock Co., WI 2023 65 Bear Creek Solar Facility, Richland Co., WI 2022 50 North Rock Solar Facility, Rock Co., WI 2022 50 Albany Solar Facility, Green Co., WI 2023 50 Beaver Dam Solar Facility, Dodge Co., WI 2023 50 Cassville Solar Facility, Grant Co., WI 2023 50 West Riverside Solar Facility, Beloit, WI (f) 2021 3 Customer- and Community-hosted Solar; various locations in WI 2021-2022 4 Total Solar 896 Prairie du Sac Hydro Plant (8 Units); Prairie due Sac, WI 1914-1940 17 Kilbourn Hydro Plant (4 Units); Wisconsin Dells, WI 1926-1939 7 Total Hydro 24 Battery Storage; various locations in WI 2022-2023 9 Total Battery Storage 9 Total capacity 3,922 (a) Based on the summer installed generating capacity included in MISO’s resource adequacy process for the planning period from June 2023 through May 2024, except for wind facilities, solar facilities and battery storage, which are based on nameplate capacity.
(f) Represents WPL’s 91% ownership interest, which is operated by WPL. (g) Represents Units 2 and 3, which WPL owns. WPL also operates, but does not own, South Fond du Lac Combustion Turbines Units 1 and 4. (h) Represents WPL’s 42.64% ownership interest, which is operated by Invenergy Services, LLC.
(f) Represents WPL’s 73.8% ownership interest, which is operated by WPL. (g) Represents Units 2 and 3, which WPL owns. WPL also operates, but does not own, South Fond du Lac Combustion Turbines Units 1 and 4. (h) Represents WPL’s 42.64% ownership interest, which is operated by Invenergy Services, LLC.
Corporate Services - Corporate Services’ property included in “Property, plant and equipment, net” on Alliant Energy’s balance sheet at December 31, 2022 consisted primarily of a customer billing and information system for IPL and WPL and other computer software, and the corporate headquarters building located in Madison, Wisconsin. 22 Table of Co ntents AEF - AEF’s principal properties included in “Property, plant and equipment, net” on Alliant Energy’s balance sheet at December 31, 2022 were as follows: Non-utility Generation - Includes the Sheboygan Falls Energy Facility, a 347 MW, simple-cycle, natural gas-fired facility near Sheboygan Falls, Wisconsin that was placed in service in 2005 and is leased to WPL.
AEF - AEF’s principal properties included in “Property, plant and equipment, net” on Alliant Energy’s balance sheet at December 31, 2023 were as follows: Non-utility Generation - Includes the Sheboygan Falls Energy Facility, a 347 MW, simple-cycle, natural gas-fired facility near Sheboygan Falls, Wisconsin that was placed in service in 2005 and is leased to WPL.
Refer to Note 10 for information regarding WPL’s lease of the Sheboygan Falls Energy Facility from AEF’s Non-utility Generation business.
IPL’s and WPL’s gas distribution facilities include gas mains located in Iowa and Wisconsin, respectively. Other - IPL’s other property includes steam service assets. Refer to Note 10 for information regarding WPL’s lease of the Sheboygan Falls Energy Facility from AEF’s Non-utility Generation business.
Gas - IPL’s and WPL’s gas properties consist primarily of mains and services, meters, regulating and gate stations and other related transmission and distribution equipment. IPL’s and WPL’s gas distribution facilities include gas mains located in Iowa and Wisconsin, respectively. Other - IPL’s other property includes steam service assets.
IPL and WPL own overhead electric distribution line, underground electric distribution cable and substation distribution transformers, substantially all of which are located in Iowa for IPL and Wisconsin for WPL. 24 Table of C o ntents Gas - IPL’s and WPL’s gas properties consist primarily of mains and services, meters, regulating and gate stations and other related transmission and distribution equipment.
The Sheboygan Falls Energy Facility was accredited with 291 MW of generating capacity for MISO’s resource adequacy process for the planning period from June 2022 through May 2023. Travero - Includes a short-line rail freight service in Iowa; a Mississippi River barge, rail and truck freight terminal in Illinois; and a rail-served warehouse in Iowa.
The summer installed generating capacity included in MISO’s resource adequacy process for the planning period from June 2023 through May 2024 for the Sheboygan Falls Energy Facility was 297 MW.
(i) Represents WPL’s 53.5% ownership interest, which is operated by WPL. (j) Represents WPL’s 91% ownership interest, which is operated by WPL. IPL and WPL own overhead electric distribution line, underground electric distribution cable and substation distribution transformers, substantially all of which are located in Iowa for IPL and Wisconsin for WPL.
(i) Represents WPL’s 53.5% ownership interest, which is operated by WPL.
Added
Corporate Services - Corporate Services’ property included in “Property, plant and equipment, net” on Alliant Energy’s balance sheet at December 31, 2023 consisted primarily of computer software, and the corporate headquarters building located in Madison, Wisconsin.
Added
Travero - Includes a short-line rail freight service in Iowa; a Mississippi River barge, rail and truck freight terminal in Illinois; wind turbine blade recycling services; and a rail-served warehouse in Iowa. Development-ready Sites - includes various rail-served and ready-to-build manufacturing and industrial sites throughout Iowa and Wisconsin, with access to various airports, interstate freeways and Alliant Energy’s electric services.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

8 edited+3 added−2 removed3 unchanged
Biggest changeHe previously served as VP since April 2017. WPL Mr. de Leon has served as President since January 2019. He previously served as VP since April 2017. Terry L. Kouba 64 Alliant Energy and WPL Mr. Kouba has served as Senior VP since January 2019. He previously served as VP since February 2014. IPL Mr.
Biggest changeHe previously served as Senior VP and CFO since February 2019; and as Senior VP, CFO and Treasurer from January 2018 to February 2019. David A. de Leon 61 Alliant Energy and IPL Mr. de Leon has served as Senior VP since January 2019. WPL Mr. de Leon has served as President since January 2019. Terry L.
The executive officers of Alliant Energy, IPL and WPL announced as of the date of this filing are as follows: Name Age as of Filing Date Registrant Positions John O. Larsen 59 Alliant Energy Mr. Larsen has served as a director since February 2019, and as Chair of the Board, President and Chief Executive Officer (CEO) since July 2019.
The executive officers of Alliant Energy, IPL and WPL as of the date of this filing are as follows: Name Age as of Filing Date Registrant Positions John O. Larsen 60 Alliant Energy Mr. Larsen has served as a director since February 2019, and as Executive Chairman and Chairman of the Board since January 2024.
Larsen has served as CEO since January 2019, as a director since February 2019, and as Chair of the Board since July 2019. He previously served as President since December 2010. Mr. Larsen’s service as CEO will end in February 2023 with the effectiveness of Ms. Barton’s appointment. Lisa M. Barton 57 Alliant Energy Ms.
Larsen has served as a director since February 2019, and as Executive Chairman and Chairman of the Board since January 2024. He previously served as Chair of the Board since July 2019, and as CEO from January 2019 to February 2023. Lisa M. Barton 58 Alliant Energy Ms.
He previously served as President and Chief Operating Officer (COO) since January 2019, and as President from January 2018 to January 2019. Mr. Larsen’s service as President will end in February 2023 with the effectiveness of Ms. Barton’s appointment. IPL Mr.
He previously served as Chair of the Board and Chief Executive Officer (CEO) since February 2023, as Chair of the Board, President and CEO from July 2019 to February 2023, and as President and Chief Operating Officer (COO) from January 2019 to July 2019. IPL and WPL Mr.
IPL and WPL Ms. Barton was selected to become CEO effective February 27, 2023. Robert J. Durian 52 Alliant Energy, IPL and WPL Mr. Durian has served as Executive VP and Chief Financial Officer (CFO) since February 2020.
Barton has served as CEO since February 2023, and as a director since January 2024. 25 Table of C o ntents Name Age as of Filing Date Registrant Positions Robert J. Durian 53 Alliant Energy, IPL and WPL Mr. Durian has served as Executive VP and Chief Financial Officer (CFO) since February 2020.
Barton was selected to become President and COO effective February 27, 2023. She previously served as Executive VP and COO of American Electric Power Company, Inc. (AEP) from January 2021 to November 2022, Executive VP - Utilities of AEP from January 2020 to December 2020, and as Executive VP - Transmission of AEP from 2011 to 2019.
(AEP) from January 2021 to November 2022, as Executive VP - Utilities of AEP from January 2020 to December 2020, and as Executive VP - Transmission of AEP from 2011 to 2019. IPL and WPL Ms.
Kouba has served as President since January 2019. He previously served as VP since February 2014. Michael Luhrs 50 Alliant Energy, IPL and WPL Mr. Luhrs has served as Senior VP since April 2022.
Kouba 65 Alliant Energy and WPL Mr. Kouba has served as Senior VP since January 2019. Mr. Kouba plans to retire effective May 1, 2024. IPL Mr. Kouba has served as President since January 2019. Mayuri N. Farlinger 41 Alliant Energy and WPL Ms. Farlinger has served as Vice President since January 2022.
He previously was with Duke Energy, Inc. as VP - Integrated Grid Strategy and Solutions from 2021 to 2022, VP - Market Strategy and Solutions from 2019 to 2021, and as VP - Retail Programs from 2013 to 2018. Benjamin M. Bilitz 48 Alliant Energy, IPL and WPL Mr.
He previously served as Executive VP - External Affairs of AEP since July 2022, as Senior VP - Regulatory and Customer Solutions of AEP from July 2021 to July 2022, and as President and COO of AEP Ohio from January 2019 to July 2021. Benjamin M. Bilitz 48 Alliant Energy, IPL and WPL Mr.
Removed
Larsen has served as CEO since January 2019, as a director since February 2019, and as Chair of the Board since July 2019. He previously served as Senior Vice President (VP) since February 2014. Mr. Larsen’s service as CEO will end in February 2023 with the effectiveness of Ms. Barton’s appointment. WPL Mr.
Added
Barton has served as President and CEO and as a director since January 2024. She previously served as President and COO since February 2023, as Executive Vice President (VP) and COO of American Electric Power Company, Inc.
Removed
He previously served as Senior VP and CFO since February 2019; and as Senior VP, CFO and Treasurer from January 2018 to February 2019. 23 Table of Co ntents Name Age as of Filing Date Registrant Positions David A. de Leon 60 Alliant Energy and IPL Mr. de Leon has served as Senior VP since January 2019.
Added
She previously served as Director of Operations from January 2020 to December 2021, as Director of Revenue Management from February 2019 to January 2020, and as Manager - Customer Support Center, Billing Integrity from May 2018 to February 2019. IPL Ms. Farlinger has served as Vice President since January 2022.
Added
She was selected to become President of IPL effective May 1, 2024. Raja Sundararajan 49 Alliant Energy, IPL and WPL Mr. Sundararajan has served as Executive VP since June 2023.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeCommon Stock Repurchases - A summary of Alliant Energy common stock repurchases for the quarter ended December 31, 2022 was as follows: Total Number Average Price Total Number of Shares Maximum Number (or Approximate of Shares Paid Per Purchased as Part of Dollar Value) of Shares That May Period Purchased (a) Share Publicly Announced Plan Yet Be Purchased Under the Plan (a) October 1 to October 31 5,101 $50.28 — N/A November 1 to November 30 3,224 53.66 — N/A December 1 to December 31 43 55.30 — N/A 8,368 51.61 — (a) All shares were purchased on the open market and held in a rabbi trust under the DCP.
Biggest changeCommon Stock Repurchases - A summary of Alliant Energy common stock repurchases for the quarter ended December 31, 2023 was as follows: Total Number Average Price Total Number of Shares Maximum Number (or Approximate of Shares Paid Per Purchased as Part of Dollar Value) of Shares That May Period Purchased (a) Share Publicly Announced Plan Yet Be Purchased Under the Plan (a) October 1 to October 31 5,338 $49.75 — N/A November 1 to November 30 3,685 49.32 — N/A December 1 to December 31 25 51.16 — N/A 9,048 49.58 — (a) All shares were purchased on the open market and held in a rabbi trust under the DCP.
There is no limit on the number of shares of Alliant Energy common stock that may be held under the DCP, which currently does not have an expiration date. ITEM 6. [RESERVED]
There is no limit on the number of shares of Alliant Energy common stock that may be held under the DCP, which currently does not have an expiration date.
As a result, there is no established public trading market for the common stock of either IPL or WPL. Dividends - In November 2022, Alliant Energy announced an increase in its targeted 2023 annual common stock dividend to $1.81 per share, which is equivalent to a quarterly rate of $0.4525 per share, beginning with the February 2023 dividend payment.
As a result, there is no established public trading market for the common stock of either IPL or WPL. Dividends - In November 2023, Alliant Energy announced an increase in its targeted 2024 annual common stock dividend to $1.92 per share, which is equivalent to a quarterly rate of $0.48 per share, beginning with the February 2024 dividend payment.
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Data - Alliant Energy’s common stock trades on the Nasdaq Global Select Market under the symbol “LNT,” and the closing sales price at December 31, 2022 was $55.21.
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Data - Alliant Energy’s common stock trades on the Nasdaq Global Select Market under the symbol “LNT,” and the closing sales price at December 31, 2023 was $51.30.
Shareowners - At December 31, 2022, there were 21,556 holders of record of Alliant Energy’s common stock, including holders through Alliant Energy’s Shareowner Direct Plan. Alliant Energy is the sole common shareowner of all 13,370,788 and 13,236,601 shares of IPL and WPL common stock, respectively, currently outstanding.
Shareowners - At December 31, 2023, there were 20,547 holders of record of Alliant Energy’s common stock, including holders through Alliant Energy’s Shareowner Direct Plan. Alliant Energy is the sole common shareowner of all 13,370,788 and 13,236,601 shares of IPL and WPL common stock, respectively, currently outstanding.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeAlliant Energy’s Non-utility and Parent net income decreased by $29 million in 2022 compared to 2021, primarily due to higher financing expense and the impact of the Iowa state income tax rate change. 26 Table of Co ntents Operating income and a reconciliation of utility electric and gas margins to the most directly comparable GAAP measure, operating income, was as follows (in millions): Alliant Energy IPL WPL 2022 2021 2022 2021 2022 2021 Operating income $928 $795 $453 $460 $452 $308 Electric utility revenues $3,421 $3,081 $1,859 $1,752 $1,562 $1,329 Electric production fuel and purchased power expenses (830) (642) (383) (295) (447) (347) Electric transmission service expense (573) (537) (407) (367) (166) (170) Utility Electric Margin (non-GAAP) 2,018 1,902 1,069 1,090 949 812 Gas utility revenues 642 456 351 265 291 191 Cost of gas sold (389) (258) (206) (149) (183) (109) Utility Gas Margin (non-GAAP) 253 198 145 116 108 82 Other utility revenues 49 49 46 46 3 3 Non-utility revenues 93 83 — — — — Other operation and maintenance expenses (704) (676) (369) (362) (278) (268) Depreciation and amortization expenses (671) (657) (381) (375) (283) (276) Taxes other than income tax expense (110) (104) (57) (55) (47) (45) Operating income $928 $795 $453 $460 $452 $308 Operating Income Variances - Variances between periods in operating income for 2022 compared to 2021 were as follows (in millions): Alliant Energy IPL WPL Total higher (lower) utility electric margin variance (Refer to details below) $116 ($21) $137 Total higher utility gas margin variance (Refer to details below) 55 29 26 Total higher other operation and maintenance expenses variance (Refer to details below) (28) (7) (10) Total higher depreciation and amortization expense (14) (6) (7) Other 4 (2) (2) $133 ($7) $144 Electric and Gas Revenues and Sales Summary - Electric and gas revenues (in millions), and MWh and Dth sales (in thousands), were as follows: Electric Gas Revenues MWhs Sold Revenues Dths Sold 2022 2021 2022 2021 2022 2021 2022 2021 Alliant Energy Retail $3,019 $2,771 25,409 25,432 $588 $413 55,021 48,179 Sales for resale: Wholesale 233 187 2,866 2,787 N/A N/A N/A N/A Bulk power and other 111 56 3,734 3,018 N/A N/A N/A N/A Transportation/Other 58 67 62 71 54 43 104,812 99,179 $3,421 $3,081 32,071 31,308 $642 $456 159,833 147,358 IPL Retail $1,747 $1,633 14,270 14,283 $317 $237 28,492 24,881 Sales for resale: Wholesale 64 57 771 738 N/A N/A N/A N/A Bulk power and other 13 17 1,401 1,069 N/A N/A N/A N/A Transportation/Other 35 45 33 35 34 28 43,264 40,738 $1,859 $1,752 16,475 16,125 $351 $265 71,756 65,619 WPL Retail $1,272 $1,138 11,139 11,149 $271 $176 26,529 23,298 Sales for resale: Wholesale 169 130 2,095 2,049 N/A N/A N/A N/A Bulk power and other 98 39 2,333 1,949 N/A N/A N/A N/A Transportation/Other 23 22 29 36 20 15 61,548 58,441 $1,562 $1,329 15,596 15,183 $291 $191 88,077 81,739 27 Table of Co ntents Sales Trends and Temperatures - Alliant Energy’s retail electric sales volumes were unchanged in 2022 compared to 2021 primarily due to increases in sales volumes to residential and commercial customers caused by changes in temperatures, offset by decreases in sales volumes to industrial customers caused by maintenance outages and labor-related disruptions at certain large customers.
Biggest changeAlliant Energy’s Non-utility and Parent net income decreased by $23 million in 2023 compared to 2022, primarily due to higher interest expense. 28 Table of C o ntents Net Income Variances - The following items contributed to increased (decreased) net income for 2023 compared to 2022 (in millions): Alliant Energy IPL WPL Revenues: Changes in electric utility (Refer to details below ) ($76) ($98) $22 Changes in gas utility (Refer to details below ) (102) (51) (51) Changes in other utility 3 3 — Changes in non-utility (3) — — Changes in total revenues (178) (146) (29) Operating expenses: Changes in electric production fuel and purchased power (Refer to details below ) 94 101 (8) Changes in electric transmission service (Refer to details below ) (10) (13) 3 Changes in cost of gas sold (Refer to details below ) 90 40 49 Changes in other operation and maintenance (Refer to details below ) 29 16 7 Changes in depreciation and amortization (Refer to Note 2 for discussion of reductions to WPL’s depreciation and amortization expense, which was partially offset by WPL’s solar generation placed in service in 2022) (5) (7) 3 Changes in taxes other than income taxes (5) — (5) Changes in total operating expenses 193 137 49 Changes in operating income 15 (9) 20 Other income and deductions: Changes in interest expense (Higher primarily due to financings completed in 2023 and 2022, and higher interest rates) (69) (7) (28) Changes in equity income from unconsolidated investments, net (Refer to Note 6 for details) 10 — — Changes in AFUDC (Higher primarily due to higher levels of CWIP balances related to solar generation and battery storage) 40 10 30 Changes in Other (Refer to Note 13(a) for details of IPL’s qualified pension plan settlement losses in 2022) 3 4 2 Changes in total other income and deductions (16) 7 4 Changes in income before income taxes (1) (2) 24 Changes in income taxes (Refer to Note 12 for details) 18 8 6 Changes in net income $17 $6 $30 29 Table of C o ntents Electric and Gas Revenues and Sales Summary - Electric and gas revenues (in millions), and MWh and Dth sales (in thousands), were as follows: Electric Gas Revenues MWhs Sold Revenues Dths Sold 2023 2022 2023 2022 2023 2022 2023 2022 Alliant Energy Retail $3,008 $3,019 24,940 25,409 $495 $588 46,405 55,021 Sales for resale: Wholesale 213 233 2,859 2,866 N/A N/A N/A N/A Bulk power and other 71 111 4,730 3,734 N/A N/A N/A N/A Transportation/Other 53 58 58 62 45 54 115,177 104,812 $3,345 $3,421 32,587 32,071 $540 $642 161,582 159,833 IPL Retail $1,661 $1,747 13,909 14,270 $273 $317 23,128 28,492 Sales for resale: Wholesale 62 64 766 771 N/A N/A N/A N/A Bulk power and other 11 13 1,465 1,401 N/A N/A N/A N/A Transportation/Other 27 35 32 33 27 34 43,232 43,264 $1,761 $1,859 16,172 16,475 $300 $351 66,360 71,756 WPL Retail $1,347 $1,272 11,031 11,139 $222 $271 23,277 26,529 Sales for resale: Wholesale 151 169 2,093 2,095 N/A N/A N/A N/A Bulk power and other 60 98 3,265 2,333 N/A N/A N/A N/A Transportation/Other 26 23 26 29 18 20 71,945 61,548 $1,584 $1,562 16,415 15,596 $240 $291 95,222 88,077 Sales Trends and Temperatures - Alliant Energy’s retail electric and gas sales volumes decreased 2% and 16%, respectively, in 2023 compared to 2022, primarily due to changes in temperatures.
Critical Accounting Policies and Estimates - Alliant Energy’s, IPL’s and WPL’s financial statements are prepared in conformity with GAAP, which requires management to apply accounting policies, judgments and assumptions, and make estimates that affect results of operations and the amounts of assets and liabilities reported in the financial statements.
Critical Accounting Estimates - Alliant Energy’s, IPL’s and WPL’s financial statements are prepared in conformity with GAAP, which requires management to apply accounting policies, judgments and assumptions, and make estimates that affect results of operations and the amounts of assets and liabilities reported in the financial statements.
The 1,089 MW of new solar generation is expected to replace energy and capacity being eliminated with the planned retirements of the coal-fired Edgewater Generating Station (414 MW) by June 1, 2025, and Columbia Units 1 and 2 (595 MW in aggregate) by June 1, 2026, which are the last coal-fired EGUs at WPL.
The 1,089 MW of new solar generation is expected to help replace energy and capacity being eliminated with the planned retirements of the coal-fired Edgewater Generating Station (414 MW) by June 1, 2025, and Columbia Units 1 and 2 (595 MW in aggregate) by June 1, 2026, which are the last coal-fired EGUs at WPL.
Refer to Notes 5(b) and 9 for additional information on cash amounts outstanding under IPL’s sales of accounts receivable program, and short- and long-term variable-rate borrowings, respectively. Refer to “ Critical Accounting Policies and Estimates ” for the impacts of changes in discount rates on retirement plan obligations and costs.
Refer to Notes 5(b) and 9 for additional information on cash amounts outstanding under IPL’s sales of accounts receivable program, and short- and long-term variable-rate borrowings, respectively. Refer to “ Critical Accounting Estimates ” for the impacts of changes in discount rates on retirement plan obligations and costs.
The following accounting policies and estimates are critical to the business and the understanding of financial results as they require critical assumptions and judgments by management. The results of these assumptions and judgments form the basis for making estimates regarding the results of operations and the amounts of assets and liabilities that are not readily apparent from other sources.
The following accounting estimates are critical to the business and the understanding of financial results as they require critical assumptions and judgments by management. The results of these assumptions and judgments form the basis for making estimates regarding the results of operations and the amounts of assets and liabilities that are not readily apparent from other sources.
This strategy includes the following key elements: Providing affordable energy solutions to customers - Alliant Energy’s strategy focuses on affordable energy solutions that support retention and growth of its existing customers and attract new customers to its service territories.
This strategy includes the following key elements: Providing affordable energy solutions for customers - Alliant Energy’s strategy focuses on affordable energy solutions that support retention and growth of its existing customers and attract new customers to its service territories.
Factors considered include market and external data points, the creditworthiness of the other partners, Whiting Petroleum’s emergence from bankruptcy in the third quarter of 2020 as well as subsequent bankruptcy developments, payments by Whiting Petroleum related to abandonment obligations, forecasted cash flow expenditures associated with the abandonment obligations based on information made available to Alliant Energy, and Whiting Petroleum’s business combination with Oasis Petroleum Inc. in the third quarter of 2022.
Factors considered include market and external data points, the creditworthiness of the other partners, Whiting Petroleum’s emergence from bankruptcy in 2020 as well as subsequent bankruptcy developments, payments by Whiting Petroleum related to abandonment obligations, forecasted cash flow expenditures associated with the abandonment obligations based on information made available to Alliant Energy, and Whiting Petroleum’s business combination with Oasis Petroleum Inc. in 2022.
In addition, at December 31, 2022, there were various other liabilities included on the balance sheets that, due to the nature of the liabilities, the timing of payments cannot be estimated. OTHER MATTERS Market Risk Sensitive Instruments and Positions - Primary market risk exposures are associated with commodity prices, counterparty credit risk, investment prices and interest rates.
In addition, at December 31, 2023, there were various other liabilities included on the balance sheets that, due to the nature of the liabilities, the timing of payments cannot be estimated. OTHER MATTERS Market Risk Sensitive Instruments and Positions - Primary market risk exposures are associated with commodity prices, counterparty credit risk, investment prices and interest rates.
Off-Balance Sheet Arrangements - Special Purpose Entities - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. The purchase commitment from the third party to which IPL sells its receivables expires in March 2023.
Off-Balance Sheet Arrangements - Special Purpose Entities - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. The purchase commitment from the third party to which IPL sells its receivables expires in March 2024.
As of December 31, 2022, Alliant Energy currently estimates the exposure to be a portion of the known partnership abandonment obligations. The methodology used to determine the credit loss liability considers both quantitative and qualitative information, which utilizes potential outcomes in a range of possible estimated amounts.
As of December 31, 2023, Alliant Energy currently estimates the exposure to be a portion of the known partnership abandonment obligations. The methodology used to determine the credit loss liability considers both quantitative and qualitative information, which utilizes potential outcomes in a range of possible estimated amounts.
The following discussion and analysis should be read in conjunction with the Financial Statements and Notes included in this report. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share. In addition, this MDA includes certain financial information for 2022 compared to 2021.
The following discussion and analysis should be read in conjunction with the Financial Statements and Notes included in this report. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share. In addition, this MDA includes certain financial information for 2023 compared to 2022.
Alliant Energy, IPL and WPL maintain credit policies intended to minimize overall credit risk and actively monitor these policies to reflect changes and scope of operations. Alliant Energy, IPL, and WPL conduct credit reviews for all counterparties and employ credit risk controls, such as letters of credit, parental guarantees, master netting agreements and termination provisions.
Alliant Energy, IPL and WPL maintain credit policies intended to minimize overall credit risk and actively monitor these policies to reflect changes and scope of operations. Alliant Energy, IPL, and WPL conduct credit reviews for certain counterparties, and employ credit risk controls such as letters of credit, parental guarantees, master netting agreements and termination provisions.
At December 31, 2022, Alliant Energy, IPL and WPL had no uncertain tax positions recorded as liabilities. Refer to Note 13(a) for anticipated pension and OPEB funding amounts. Refer to “ Construction and Acquisition Expenditures ” above for additional information on construction and acquisition programs.
At December 31, 2023, Alliant Energy, IPL and WPL had no uncertain tax positions recorded as liabilities. Refer to Note 13(a) for anticipated pension and OPEB funding amounts. Refer to “ Construction and Acquisition Expenditures ” above for additional information on construction and acquisition programs.
Capital structures as of December 31, 2022 were as follows (Common Equity (CE); Long-term Debt (including current maturities) (LD); Short-term Debt (SD)): Alliant Energy, IPL and WPL intend to manage their capital structures and liquidity positions in such a way that facilitates their ability to raise funds reliably and on reasonable terms and conditions, while maintaining capital structures consistent with those approved by regulators.
Financial capital structures as of December 31, 2023 were as follows (Common Equity (CE); Long-term Debt (including current maturities) (LD); Short-term Debt (SD)): Alliant Energy, IPL and WPL intend to manage their capital structures and liquidity positions in such a way that facilitates their ability to raise funds reliably and on reasonable terms and conditions, while maintaining capital structures consistent with those approved by regulators.
Certain Financial Commitments - Contractual Obligations - Alliant Energy, IPL and WPL have various long-term contractual obligations as of December 31, 2022, which include long-term debt maturities in Note 9(b) , operating and finance leases in Note 10 , capital purchase obligations in Note 17(a) , and other purchase obligations in Note 17(b) .
Certain Financial Commitments - Contractual Obligations - Alliant Energy, IPL and WPL have various long-term contractual obligations as of December 31, 2023, which include long-term debt maturities in Note 9(b) , operating and finance leases in Note 10 , capital purchase obligations in Note 17(a) , and other purchase obligations in Note 17(b) .
Regulated Operations - Alliant Energy’s, IPL’s and WPL’s long-lived assets within their regulated operations that were assessed for impairment and/or plant abandonment in 2022 included IPL’s and WPL’s generating units subject to early retirement and WPL’s solar generation projects recently completed and under construction.
Regulated Operations - Alliant Energy’s, IPL’s and WPL’s long-lived assets within their regulated operations that were assessed for impairment and/or plant abandonment in 2023 included WPL’s generating units subject to early retirement, and IPL’s and WPL’s solar generation projects recently completed or under construction.
IPL currently expects to amend and extend the purchase commitment. In 2022 and 2021, IPL evaluated the third party that purchases IPL’s receivable assets under the Receivables Agreement and believes that the third party is a VIE; however, IPL concluded consolidation of the third party was not required.
IPL currently expects to amend and extend the purchase commitment. In 2023 and 2022, IPL evaluated the third party that purchases IPL’s receivable assets under the Receivables Agreement and believes that the third party is a VIE; however, IPL concluded consolidation of the third party was not required.
Alliant Energy’s mission and purpose is supported by a strategy focused on meeting the evolving expectations of customers while providing an attractive return for investors, and pursuing emerging technologies and safe, sustainable methods of energy production.
Alliant Energy’s mission and purpose are supported by a strategy focused on meeting the evolving expectations of customers while providing an attractive return for investors, and pursuing emerging technologies and safe, sustainable methods of energy production.
Pension Plan Contributions - Alliant Energy, IPL and WPL currently expect to make $12 million, $1 million and $10 million of pension plan contributions in 2023, respectively, based on the funded status and assumed return on assets for each plan as of the December 31, 2022 measurement date.
Pension Plan Contributions - Alliant Energy, IPL and WPL currently expect to make $12 million, $— and $10 million of pension plan contributions in 2024, respectively, based on the funded status and assumed return on assets for each plan as of the December 31, 2023 measurement date.
Estimated capital expenditures for expected and current technology projects for 2023 through 2026 are included in the “Other” line in the construction and acquisition expenditures table in “ Liquidity and Capital Resources .” Non-utility business - Alliant Energy continues to explore growth of its Travero businesses and other limited scope opportunities outside of, but complementary to, Alliant Energy’s core utility business.
Estimated capital expenditures for expected and current technology projects for 2024 through 2027 are included in the “Other” line in the construction and acquisition expenditures table in “ Liquidity and Capital Resources .” Non-utility business - Alliant Energy continues to explore growth of its Travero businesses and other limited scope opportunities outside of, but complementary to, Alliant Energy’s core utility business.
This strategy includes the planned development and acquisition of additional renewable energy, including approximately 1,100 MW of solar generation at WPL with in-service dates in 2022-2024, approximately 275 MW of battery storage at WPL with in-service dates in 2024 and 2025, approximately 400 MW of solar generation at IPL with in-service dates in 2023 and 2024 and approximately 75 MW of battery storage at IPL with in-service dates in 2024.
This strategy includes the development and acquisition of additional renewable energy, including approximately 1,100 MW of solar generation at WPL with in-service dates in 2022-2024, approximately 275 MW of battery storage at WPL with in-service dates in 2024 and 2025, and approximately 400 MW of solar generation at IPL with in-service dates in 2024.
Common Stock Issuances - Refer to Note 7 for discussion of common stock issuances by Alliant Energy in 2021 and 2022, and “ Results of Operations ” for discussion of expected issuances of common stock in 2023.
Common Stock Issuances - Refer to Note 7 for discussion of common stock issuances by Alliant Energy in 2022 and 2023, and “ Results of Operations ” for discussion of expected issuances of common stock in 2024.
Long-term Debt - Refer to Note 9(b) for discussion of issuances and retirements of long-term debt in 2022 and 2023, and “ Results of Operations ” for discussion of expected issuances of long-term debt in 2023.
Long-term Debt - Refer to Note 9(b) for discussion of issuances and retirements of long-term debt in 2023, and “ Results of Operations ” for discussion of expected issuances and retirements of long-term debt in 2024.
The most significant provisions of the new legislation for Alliant Energy, IPL and WPL relate to a 10-year extension of tax credits for clean energy projects, a new production tax credit eligible for solar projects, a new stand-alone investment tax credit for battery storage projects and the right to transfer future renewable credits to other corporate taxpayers.
The most significant provisions of the new legislation for Alliant Energy, IPL and WPL relate to a 10-year extension of tax credits for clean energy projects, a new production tax credit for eligible solar projects, a new stand-alone investment tax credit for battery storage projects and the right to transfer renewable tax credits generated after 2022 to other corporate taxpayers.
The required debt-to-capital ratios compared to the actual debt-to-capital ratios at December 31, 2022 were as follows: Alliant Energy IPL WPL Requirement, not to exceed 65% 65% 65% Actual 58% 49% 48% The debt component of the capital ratios includes, when applicable, long- and short-term debt (excluding non-recourse debt and hybrid securities to the extent the total carrying value of such hybrid securities does not exceed 15% of consolidated capital of the applicable borrower), finance lease obligations, certain letters of credit, guarantees of the foregoing and new synthetic leases.
The required debt-to-capital ratios compared to the actual debt-to-capital ratios at December 31, 2023 were as follows: Alliant Energy IPL WPL Requirement, not to exceed 65% 65% 65% Actual 59% 50% 48% The debt component of the capital ratios includes, when applicable, long- and short-term debt (excluding non-recourse debt and hybrid securities to the extent the total carrying value of such hybrid securities does not exceed 15% of consolidated capital of the applicable borrower), finance lease obligations, certain letters of credit, guarantees of the foregoing and new synthetic leases.
Refer to Note 13(a) for discussion of pension plan contributions in 2022 and the current funded levels of pension plans.
Refer to Note 13(a) for discussion of pension plan contributions in 2023 and the current funded levels of pension plans.
Effect of Rate-making on Property-related Differences - Alliant Energy’s and IPL’s effective income tax rates are normally impacted by certain property-related differences at IPL for which deferred tax is not recorded in the income statement pursuant 39 Table of Co ntents to Iowa rate-making principles.
Effect of Rate-making on Property-related Differences - Alliant Energy’s and IPL’s effective income tax rates are normally impacted by certain property-related differences at IPL for which deferred tax is not recorded in the income statement pursuant to Iowa rate-making principles.
Making customer-focused investments - Alliant Energy’s strategic priorities include making significant customer-focused investments toward cleaner energy and resilient and sustainable customer solutions.
Making customer-focused investments - Alliant Energy’s strategic priorities include making significant customer-focused investments toward cleaner and more reliable, resilient, and sustainable customer energy solutions.
Changes may result from a number of reasons, including regulatory requirements, changing legislation, not obtaining favorable and acceptable regulatory approval on certain projects, improvements in technology and improvements to ensure resiliency and reliability of the electric and gas distribution systems.
Changes may result from a number of reasons, including regulatory requirements, changing legislation, not obtaining favorable and acceptable regulatory approval on certain projects, changing costs of projects due to market conditions, improvements in technology, and improvements to ensure resiliency and reliability of the electric and gas distribution systems.
Credit ratings and outlooks as of the date of this report are as follows: 37 Table of Co ntents Standard & Poor’s Ratings Services Moody’s Investors Service Alliant Energy: Corporate/issuer A- Baa2 Commercial paper A-2 P-2 Senior unsecured long-term debt N/A N/A Outlook Stable Stable IPL: Corporate/issuer A- Baa1 Commercial paper A-2 P-2 Senior unsecured long-term debt A- Baa1 Outlook Stable Stable WPL: Corporate/issuer A A3 Commercial paper A-1 P-2 Senior unsecured long-term debt A A3 Outlook Negative Negative Standard & Poor’s Ratings Services and Moody’s Investors Service issued credit ratings of BBB+ and Baa2, respectively, for the senior notes issued by AEF in 2018, 2020 and 2022 (with Alliant Energy as guarantor).
Credit ratings and outlooks as of the date of this report are as follows: 40 Table of C o ntents Standard & Poor’s Ratings Services Moody’s Investors Service Alliant Energy: Corporate/issuer A- Baa2 Commercial paper A-2 P-2 Senior unsecured long-term debt BBB+ N/A Outlook Stable Stable IPL: Corporate/issuer A- Baa1 Commercial paper A-2 P-2 Senior unsecured long-term debt A- Baa1 Outlook Stable Stable WPL: Corporate/issuer A Baa1 Commercial paper A-1 P-2 Senior unsecured long-term debt A Baa1 Outlook Negative Stable Standard & Poor’s Ratings Services and Moody’s Investors Service issued credit ratings of BBB+ and Baa2, respectively, for the senior notes issued by AEF in 2018, 2020, 2022 and 2023 (with Alliant Energy as guarantor).
WPL’s retail electric margins have exposure to the impact of changes in commodity prices due largely to the current retail recovery mechanism in place in Wisconsin for fuel-related costs. Counterparty Credit Risk - Alliant Energy, IPL, and WPL are exposed to credit risk related to losses resulting from counterparties’ nonperformance of their contractual obligations.
WPL’s retail electric service is exposed to the impact of changes in commodity prices due largely to the current retail recovery mechanism in place in Wisconsin for fuel-related costs. Counterparty Credit Risk - Alliant Energy, IPL, and WPL are exposed to credit risk related to losses resulting from counterparties’ nonperformance of their contractual obligations.
Alliant Energy’s and IPL’s critical assumptions and judgments for 2022 include estimates of qualifying deductions for repairs expenditures and allocation of mixed service costs due to the impact of Iowa rate-making principles on such property-related differences.
Alliant Energy’s and IPL’s critical assumptions and judgments for 2023 included estimates of qualifying deductions for repairs expenditures and allocation of mixed service costs due to the impact of Iowa rate-making principles on such property-related differences.
Assuming the impact of a hypothetical 100 basis point increase in interest rates on variable-rate borrowings and cash amounts outstanding under IPL’s sales of accounts receivable program at December 31, 2022, Alliant Energy’s, IPL’s and WPL’s annual pre-tax expense would increase by approximately $11 million, $1 million and $3 million, respectively.
Assuming the impact of a hypothetical 100 basis point increase in interest rates on variable-rate borrowings and cash amounts outstanding under IPL’s sales of accounts receivable program at December 31, 2023, Alliant Energy’s, IPL’s and WPL’s annual pre-tax expense would increase by approximately $5 million, $0 and $3 million, respectively.
The following table shows the impacts of changing certain key actuarial assumptions discussed above (in millions): Defined Benefit Pension Plans OPEB Plans Change in Actuarial Assumption Impact on Projected Benefit Obligation at December 31, 2022 Impact on 2023 Net Periodic Benefit Costs Impact on Accumulated Benefit Obligation at December 31, 2022 Impact on 2023 Net Periodic Benefit Costs Alliant Energy 1% change in discount rate $87 $6 $13 $— 1% change in expected rate of return N/A 7 N/A 1 IPL 1% change in discount rate 40 3 5 — 1% change in expected rate of return N/A 3 N/A 1 WPL 1% change in discount rate 39 3 5 — 1% change in expected rate of return N/A 3 N/A — Contingencies - Assumptions and judgments are made each reporting period regarding the future outcome of contingent events.
The following table shows the impacts of changing certain key actuarial assumptions discussed above (in millions): Defined Benefit Pension Plans OPEB Plans Change in Actuarial Assumption Impact on Projected Benefit Obligation at December 31, 2023 Impact on 2024 Net Periodic Benefit Costs Impact on Accumulated Benefit Obligation at December 31, 2023 Impact on 2024 Net Periodic Benefit Costs Alliant Energy 1% change in discount rate $85 $6 $12 $— 1% change in expected rate of return N/A 7 N/A 1 IPL 1% change in discount rate 39 3 5 — 1% change in expected rate of return N/A 3 N/A 1 WPL 1% change in discount rate 38 3 4 — 1% change in expected rate of return N/A 3 N/A — Contingencies - Assumptions and judgments are made each reporting period regarding the future outcome of contingent events.
Alliant Energy, IPL and WPL have not yet entered into contractual commitments relating to the majority of their anticipated future construction and acquisition expenditures. As a result, they have some discretion with regard to the level and timing of these expenditures.
Alliant Energy, IPL and WPL have not yet entered into contractual commitments relating to the majority of their anticipated future construction and acquisition expenditures. As a result, they 38 Table of C o ntents have some discretion with regard to the level and timing of these expenditures.
IPL currently expects to retire the coal-fired Lansing Generating Station (275 MW) in the first half of 2023, and fuel switch or retire Prairie Creek Units 1 and 3 (65 MW in aggregate) by December 31, 2025.
IPL retired the coal-fired Lansing Generating Station (275 MW) in May 2023, and currently expects to fuel switch or retire Prairie Creek Units 1 and 3 (65 MW in aggregate) by December 31, 2025.
WPL’s Retail Fuel-related Rate Filing (2023 Forward-looking Test Period) - In December 2022, the PSCW authorized WPL to collect $47 million in higher rates in 2023 from its retail electric customers to reflect an increase in expected fuel-related costs for 2023 compared to WPL’s approved 2022 fuel-related costs. 32 Table of Co ntents Rate Review Details - Details related to IPL’s and WPL’s key jurisdictions were as follows: Average Authorized Return Common Equity Regulatory Rate Base on Common Component of Regulatory Effective Body (in millions) Equity (a) Capital Structure Date IPL Retail Electric (2020 Test Period) Marshalltown (b) IUB $559 11.00% 51.0% 2/26/2020 Emery (b) IUB 165 12.23% 51.0% 2/26/2020 Whispering Willow - East (b) IUB 163 11.70% 51.0% 2/26/2020 Renewable energy rider (c) IUB 1,577 10.10% 51.0% 4/15/2022 Other (b) IUB 3,767 9.50% 51.0% 2/26/2020 IPL Retail Gas (2020 Test Period) (b) IUB 557 9.60% 51.0% 1/10/2020 IPL Wholesale Electric FERC 162 10.97% 51.0% 1/1/2022 WPL Retail Electric and Gas Electric (2023 Test Period) (d) PSCW 4,573 10.00% 54.1% 1/1/2023 Gas (2023 Test Period) (d) PSCW 471 10.00% 54.1% 1/1/2023 WPL Wholesale Electric FERC 424 10.90% 55.0% 1/1/2022 (a) Authorized returns on common equity may not be indicative of actual returns earned or projections of future returns.
WPL’s Retail Fuel-related Rate Filing (2023 Forward-looking Test Period) - In December 2022, the PSCW authorized WPL to collect $47 million in higher rates in 2023 from its retail electric customers to reflect an increase in expected fuel-related costs for 2023 compared to WPL’s approved 2022 fuel-related costs. 35 Table of C o ntents Rate Review Details - Details related to IPL’s and WPL’s key jurisdictions were as follows: Average Authorized Return Common Equity Regulatory Rate Base on Common Component of Regulatory Effective Body (in millions) Equity (a) Capital Structure Date IPL Retail Electric (2020 Test Period) Marshalltown (b) IUB $559 11.00% 51.0% 2/26/2020 Emery (b) IUB 165 12.23% 51.0% 2/26/2020 Whispering Willow - East (b) IUB 163 11.70% 51.0% 2/26/2020 Renewable energy rider (c) IUB 1,491 9.80% 51.0% 1/1/2024 Other (b) IUB 3,767 9.50% 51.0% 2/26/2020 IPL Retail Gas (2020 Test Period) (b) IUB 557 9.60% 51.0% 1/10/2020 IPL Wholesale Electric FERC 169 10.97% 51.0% 1/1/2023 WPL Retail Electric and Gas Electric (2024 Test Period) (d) PSCW 5,379 9.80% 53.9% 1/1/2024 Gas (2024 Test Period) (d) PSCW 514 9.80% 53.9% 1/1/2024 WPL Wholesale Electric FERC 507 10.90% 55.0% 1/1/2023 (a) Authorized returns on common equity may not be indicative of actual returns earned or projections of future returns.
In 2021, IPL received authorization from FERC to issue securities in 2022 and 2023 as follows (in millions): Long-term debt securities issuances in aggregate $700 Short-term debt securities outstanding at any time (including borrowings from its parent) 400 Preferred stock issuances in aggregate 300 State Regulatory Financing Authorizations - In 2017, WPL received authorization from the PSCW to have up to $400 million of short-term borrowings and/or letters of credit outstanding at any time through the earlier of the expiration date of WPL’s credit facility agreement (including extensions) or December 2024.
In 2023, IPL received authorization from FERC to issue securities in 2024 and 2025 as follows (in millions): Long-term debt securities issuances in aggregate $1,700 Short-term debt securities outstanding at any time (including borrowings from its parent) 400 Preferred stock issuances in aggregate 300 State Regulatory Financing Authorizations - In March 2023, WPL received authorization from the PSCW to have up to $500 million of short-term borrowings and/or letters of credit outstanding at any time through the expiration date of WPL’s credit facility agreement.
Compared to previous plans to utilize tax equity financing, the impact of these changes is expected to result in more cost benefits for IPL's and WPL's customers, higher rate base amounts, additional financing needs expected to be satisfied with additional long-term debt and common stock issuances, and improvements in long-term cash flows over the life of the solar and battery storage projects.
The impact of these changes is expected to result in more cost benefits for IPL’s and WPL’s customers, higher rate base amounts, additional financing needs expected to be satisfied with additional long-term debt and common stock issuances, and improvements in long-term cash flows over the life of the solar, battery storage and wind repowering projects.
Alliant Energy and IPL concluded that Lansing (expected to be retired in the first half of 2023), and Alliant Energy and WPL concluded that Edgewater Unit 5 (expected to be retired by June 1, 2025) and Columbia Units 1 and 2 (expected to be retired by June 1, 2026), met the criteria to be considered probable of abandonment as of December 31, 2022.
Alliant Energy and WPL concluded that Edgewater Unit 5 (expected to be retired by June 1, 2025) and Columbia Units 1 and 2 (expected to be retired by June 1, 2026), met the criteria to be considered probable of abandonment as of December 31, 2023.
IPL’s electric and gas tariffs and WPL’s wholesale electric and gas tariffs provide for subsequent monthly adjustments to their tariff rates for material changes in prudently incurred commodity costs. IPL’s and WPL’s rate mechanisms, combined with commodity derivatives, significantly reduce commodity risk associated with their electric and gas 38 Table of Co ntents margins.
IPL’s electric and gas tariffs and WPL’s wholesale electric and gas tariffs provide for subsequent monthly adjustments to their tariff rates for material changes in prudently incurred commodity costs. IPL’s and WPL’s rate mechanisms, combined with commodity derivatives, significantly reduce commodity risk associated with their electric and gas 41 Table of C o ntents service.
Refer to MDA in the combined 2021 Form 10-K for details on certain financial information for 2021 compared to 2020. 24 Table of Co ntents OVERVIEW Mission, Purpose and Strategy Alliant Energy’s mission is to deliver affordable energy solutions and exceptional service that its customers and communities count on - affordably, safely, reliably, and sustainably.
Refer to MDA in the combined 2022 Form 10-K for details on certain financial information for 2022 compared to 2021. OVERVIEW Mission, Purpose and Strategy Alliant Energy’s mission is to deliver affordable energy solutions and exceptional service that its customers and the communities it serves count on - affordably, safely, reliably, and sustainably.
Key Highlights - • Alliant Energy’s Clean Energy Blueprint, also known as its cleaner energy strategy, continues to add clean energy resources in Iowa and Wisconsin, which directly reinvests in the communities Alliant Energy serves through the addition of skilled jobs, economic development and increased tax revenue.
Key Highlights - • Alliant Energy’s Clean Energy Blueprint, also known as the roadmap for its transition to cleaner energy, continues to add clean energy resources in Iowa and Wisconsin. As a result, Alliant Energy directly reinvests in the communities it serves through the addition of skilled jobs, economic development and increased tax revenue.
Short-term Debt - In 2021, Alliant Energy, IPL and WPL entered into a single revolving credit facility agreement, which expires in December 2026 and is discussed in Note 9(a) . There are currently 13 lenders that participate in the credit facility, with respective commitments ranging from $20 million to $130 million.
Short-term Debt - In January 2024, Alliant Energy, IPL and WPL extended their single revolving credit facility agreement, which expires in December 2028 and is discussed in Note 9(a) . There are currently 13 lenders that participate in the credit facility, with respective commitments ranging from $20 million to $130 million.
In addition, Alliant Energy and IPL are exposed to risk resulting from changes in interest rates on cash amounts outstanding under IPL’s sales of accounts receivable program.
Interest Rate - Alliant Energy, IPL and WPL are exposed to risk resulting from changes in interest rates associated with variable-rate borrowings. In addition, Alliant Energy and IPL are exposed to risk resulting from changes in interest rates on cash amounts outstanding under IPL’s sales of accounts receivable program.
The most significant provision of the Act for Alliant Energy is reduced minimum pension plan funding requirements, which Alliant Energy adopted in August 2021.
In March 2021, the American Rescue Plan Act of 2021 (Act) was enacted. The most significant provision of the Act for Alliant Energy is reduced minimum pension plan funding requirements, which Alliant Energy adopted in August 2021.
IPL and WPL are currently allowed a full recovery of and a full return on its respective EGUs from both its retail and wholesale customers, and as a result, Alliant Energy, IPL and WPL concluded that no impairment was required as of December 31, 2022.
WPL is currently allowed a full recovery of and a full return on these EGUs from both its retail and wholesale customers, and as a result, Alliant Energy and WPL concluded that no impairment was required as of December 31, 2023.
Alliant Energy’s shelf registration statement may be used to issue common stock, debt and other securities. IPL’s and WPL’s shelf registration statements may be used to issue preferred stock and debt securities.
Alliant Energy’s shelf registration statement may be used to issue common stock, debt and other securities.
Alliant Energy and WPL review property, plant and equipment for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes.
Solar Generation Projects Recently Completed or Under Construction - Alliant Energy, IPL and WPL review property, plant and equipment for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes.
These changes are impacted by several factors, including the availability and dispatch of Alliant Energy’s EGUs and electricity demand within these wholesale energy markets. Changes in sales for resale revenues were largely offset by changes in fuel-related costs, and therefore, did not have a significant impact on electric margins.
These changes are impacted by several factors, including the availability and dispatch of Alliant Energy’s EGUs and electricity demand within these wholesale energy markets. Changes in bulk power and other revenues were largely offset by changes in fuel-related costs, and therefore did not have a significant impact on operating income.
The 400 MW of new solar generation and 75 MW of battery storage would help replace a portion of the energy and capacity expected to be eliminated with the planned retirement of the coal-fired Lansing Generating Station (275 MW) in the first half of 2023 and the reduction of energy and capacity resulting from the December 2021 fuel switch of the Burlington Generating Station (212 MW) from coal to natural gas.
The 400 MW of new solar generation would help replace a portion of the energy and capacity eliminated with the May 2023 retirement of the coal-fired Lansing Generating Station (275 MW) and the reduction of energy and capacity resulting from the December 2021 fuel switch of the Burlington Generating Station (212 MW) from coal to natural gas.
Refer to Note 5(b) for additional information regarding IPL’s sales of accounts receivable program. Guarantees and Indemnifications - At December 31, 2022, various guarantees and indemnifications are outstanding related to Alliant Energy’s cash equity ownership interest in a non-utility wind farm and prior divestiture activities. Refer to Note 17(d) for additional information.
Refer to Note 5(b) for additional information regarding IPL’s sales of accounts receivable program. Guarantees and Indemnifications - At December 31, 2023, various guarantees and indemnifications are outstanding related to Alliant Energy’s cash equity ownership interest in a non-utility wind farm, prior divestiture activities and transfers of renewable tax credits to other corporate taxpayers.
WPL’s Retail Fuel-related Rate Filing (2021 Forward-looking Test Period) - In August 2022, the PSCW authorized WPL to collect $37 million in 2023 from its retail electric customers, plus interest, for an under-collection of fuel-related costs incurred by WPL in 2021 that were higher than fuel-related costs used to determine rates for such period.
WPL’s Retail Fuel-related Rate Filing (2022 Forward-looking Test Period) - In August 2023, the PSCW authorized WPL to collect $117 million in higher rates, plus interest, from its retail electric customers from October 2023 through December 2025 for fuel-related costs incurred by WPL in 2022 that were higher than fuel-related costs used to determine rates for such period.
Carryforward Utilization - Significant federal tax credit carryforwards exist for Alliant Energy, IPL and WPL as of December 31, 2022. Based on projections of current and future taxable income, Alliant Energy, IPL and WPL plan to utilize all of these carryforwards prior to their expiration.
Carryforward Utilization - Significant federal tax credit carryforwards exist for Alliant Energy, IPL and WPL as of December 31, 2023. Based on projections of current and future taxable income, Alliant Energy, IPL and WPL plan to utilize all of these carryforwards more than five years before expiration.
If WPL is disallowed recovery of any portion of, or is only allowed a partial return on, the carrying value of the solar generation projects recently completed or under construction, then an impairment charge is recognized.
If IPL or WPL is disallowed recovery of any portion of, or is only allowed a partial return on, the carrying value of the solar generation projects recently completed or under construction, then an impairment charge is recognized. “ Customer Investments ” provides details of IPL’s and WPL’s solar generation projects recently completed or under construction.
Based on that, Alliant Energy’s goal is to maintain a dividend payout ratio of approximately 60% to 70% of consolidated earnings from continuing operations. Refer to “ Results of Operations ” for discussion of expected common stock dividends in 2023.
Alliant Energy’s general long-term goal is to maintain a dividend payout ratio that is competitive with the industry average. Based on that, Alliant Energy’s goal is to maintain a dividend payout ratio of approximately 60% to 70% of consolidated earnings from continuing operations. Refer to “ Results of Operations ” for discussion of expected common stock dividends in 2024.
In order to support reliable and sustainable energy and meet the MISO’s new seasonal resource adequacy requirements, Alliant Energy, IPL and WPL continue to evaluate additional opportunities for renewable generation, distributed energy resources and natural gas resources, as well as repower existing wind farms.
In order to support reliable and sustainable energy and meet MISO’s seasonal resource adequacy requirements, Alliant Energy, IPL and WPL continue to evaluate additional opportunities for renewables and battery storage projects, dispatchable gas generation projects, and distributed energy resources, as well as repowering existing wind farms.
AEF has $400 million of long-term debt maturing in 2023. • Common Stock Dividends - Alliant Energy announced a 6% increase in its targeted 2023 annual common stock dividend to $1.81 per share, which is equivalent to a quarterly rate of $0.4525 per share, beginning with the February 2023 dividend payment.
IPL and AEF have $500 million and $300 million of long-term debt, respectively, maturing in 2024. • Common Stock Dividends - Alliant Energy announced a 6% increase in its targeted 2024 annual common stock dividend to $1.92 per share, which is equivalent to a quarterly rate of $0.48 per share, beginning with the February 2024 dividend payment.
Investment Price - Alliant Energy, IPL and WPL are exposed to investment price risk as a result of their investments in securities, largely related to securities held by their pension and OPEB plans. Refer to Note 13(a) for details of the securities held by their pension and OPEB plans.
Investment Price - Alliant Energy, IPL and WPL are exposed to investment price risk as a result of their investments in securities, largely related to securities held by their pension and OPEB plans, as well as unconsolidated investments accounted for under the equity method of accounting.
Actual financial results may differ materially from estimates. Management has discussed these critical accounting policies and estimates with the Audit Committee of the Board of Directors. Refer to Note 1 for additional discussion of accounting policies and estimates used in the preparation of the financial statements.
Actual financial results may differ materially from estimates. Management has discussed these critical accounting estimates with the Audit Committee of the Board of Directors. Refer to Note 1 for additional discussion of accounting estimates used in the preparation of the financial statements. Regulatory Assets and Regulatory Liabilities - IPL and WPL are regulated by various federal and state regulatory agencies.
Regulatory Assets and Regulatory Liabilities - IPL and WPL are regulated by various federal and state regulatory agencies. As a result, they are subject to GAAP for regulated operations, which recognizes that the actions of a regulator can provide reasonable assurance of the existence of an asset or liability.
As a result, they are subject to GAAP for regulated operations, which recognizes that the actions of a regulator can provide reasonable assurance of the existence of an asset or liability. Regulatory assets or regulatory liabilities arise as a result of a difference between GAAP and actions imposed by the regulatory agencies in the rate-making process.
Note 1( l ) provides discussion of the adoption of the new accounting standard for credit losses. Note 17 provides further discussion of contingencies assessed at December 31, 2022 that may have a material impact on financial condition and results of operations, including various pending legal proceedings, guarantees and indemnifications.
Note 17 provides further discussion of contingencies assessed at December 31, 2023 that may have a material impact on financial condition and results of operations, including various pending legal proceedings, guarantees and indemnifications.
Financing Activities - The following items contributed to increased (decreased) financing activity cash flows for 2022 compared to 2021 (in millions): Alliant Energy IPL WPL Higher (lower) net proceeds from issuance of long-term debt $738 ($300) $288 Payments to redeem cumulative preferred stock of IPL in 2021 200 200 — Net changes in the amount of commercial paper outstanding 1 — 75 Higher payments to retire long-term debt (625) — (250) (Higher) lower common stock dividends (25) 79 (8) Higher (lower) capital contributions from IPL’s and WPL’s parent company, Alliant Energy — (50) 285 Other 12 14 3 $301 ($57) $393 FERC and Public Utility Holding Company Act Financing Authorizations - Under the Public Utility Holding Company Act of 2005, FERC has authority over the issuance of utility securities, except to the extent that a public utility’s primary state regulatory commission has retained jurisdiction over such matters.
Financing Activities - The following items contributed to increased (decreased) financing activity cash flows for 2023 compared to 2022 (in millions): Alliant Energy IPL WPL Higher net proceeds from common stock issuances $221 $— $— Lower payments to retire long-term debt 125 — 250 Higher (lower) net proceeds from issuance of long-term debt 117 296 (291) Net changes in the amount of commercial paper outstanding (294) — (26) (Higher) lower common stock dividends (28) 41 (8) Higher (lower) capital contributions from IPL’s and WPL’s parent company, Alliant Energy — 80 (285) Other 1 3 (7) $142 $420 ($367) FERC and Public Utility Holding Company Act Financing Authorizations - Under the Public Utility Holding Company Act of 2005, FERC has authority over the issuance of utility securities, except to the extent that a public utility’s primary state regulatory commission has retained jurisdiction over such matters.
Subject to certain conditions, Alliant Energy, IPL and WPL may exercise two extension options, each extending the maturity date by one year.
Subject to certain conditions, Alliant Energy, IPL and WPL may exercise one extension option, which would extend the maturity date by one year.
Alliant Energy’s voluntary environmental-related goals and achievements include the following: • Exceeded its 2020 targets by reducing air emissions for sulfur dioxide by over 90%, nitrogen oxides by over 80% and mercury by over 90% from 2005 levels. • By 2030, reduce CO2 emissions by 50% from its owned fossil-fueled EGUs and reduce electric utility water supply by 75% from 2005 levels, and transition 100% of its owned light-duty fleet vehicles to be electric, as well as partner to plant more than 1 million trees by the end of 2030. • By 2040, eliminate all coal-fired EGUs from its generating fleet. • By 2050, achieve an aspirational goal of net-zero CO2 emissions from the electricity it generates.
Alliant Energy’s current voluntary environmental-related goals and achievements include the following: • Exceeded its 2020 targets by reducing air emissions for sulfur dioxide by over 90%, nitrogen oxides by over 80% and mercury by over 90% from 2005 levels. • By 2030, reduce GHG emissions from its utility operations by 50% from 2005 levels, reduce its electric utility water supply by 75% from 2005 levels and electrify 100% of its owned light-duty fleet vehicles. • By 2040, eliminate all coal-fired EGUs from its generating fleet and reduce GHG emissions from its utility operations by 80% from 2005 levels. • By 2050, aspire to achieve net-zero GHG emissions from its utility operations.
In 2021, WPL issued $300 million of 1.95% green bond debentures due 2031, and an amount in excess of the net proceeds was disbursed for the construction and development of WPL’s wind and solar EGUs.
In 2022, WPL issued $600 million of 3.95% green bond debentures due 2032, and an amount in excess of the net proceeds was disbursed for the development and acquisition of WPL’s solar EGUs.
Regulatory liabilities generally represent obligations to make refunds to customers or amounts collected in rates for which the related costs have not yet been incurred.
Regulatory assets generally represent incurred costs that have been deferred as such costs are probable of recovery in future customer rates. Regulatory liabilities generally represent obligations to make refunds to customers or amounts collected in rates for which the related costs have not yet been incurred.
Liquidity Position - At December 31, 2022, Alliant Energy had $20 million of cash and cash equivalents, $358 million ($148 million at the parent company, $100 million at IPL and $110 million at WPL) of available capacity under the single revolving credit facility and $30 million of available capacity at IPL under its sales of accounts receivable program.
Liquidity Position - At December 31, 2023, Alliant Energy had $62 million of cash and cash equivalents, $525 million ($293 million at the parent company, $150 million at IPL and $82 million at WPL) of available capacity under the single revolving credit facility and $4 million of available capacity at IPL under its sales of accounts receivable program.
Financial Results Overview - Alliant Energy’s net income and EPS attributable to Alliant Energy common shareowners were as follows (dollars in millions, except per share amounts): 2022 2021 Income (Loss) EPS Income (Loss) EPS Utilities and Corporate Services $690 $2.74 $632 $2.52 ATC Holdings 29 0.12 31 0.12 Non-utility and Parent (33) (0.13) (4) (0.01) Alliant Energy Consolidated $686 $2.73 $659 $2.63 Alliant Energy’s Utilities and Corporate Services net income increased by $58 million in 2022 compared to 2021.
Alliant Energy’s net income and EPS attributable to Alliant Energy common shareowners were as follows (dollars in millions, except per share amounts): 2023 2022 Income (Loss) EPS Income (Loss) EPS Utilities and Corporate Services $724 $2.86 $690 $2.74 ATC Holdings 35 0.14 29 0.12 Non-utility and Parent (56) (0.22) (33) (0.13) Alliant Energy Consolidated $703 $2.78 $686 $2.73 Alliant Energy’s Utilities and Corporate Services net income increased by $34 million in 2023 compared to 2022.
Regulatory assets and regulatory liabilities are recognized in accordance with the rulings of applicable federal and state regulators, and future regulatory rulings may impact the carrying value and accounting treatment of regulatory assets and regulatory liabilities.
Regulatory assets and regulatory liabilities are recognized in accordance with the rulings of applicable federal and state regulators, and future regulatory rulings may impact the carrying value and accounting treatment of regulatory assets and regulatory liabilities. Note 2 provides details of the nature and amounts of regulatory assets and regulatory liabilities assessed at December 31, 2023.
Debt imputations by rating agencies include, among others, pension and OPEB obligations and the sales of accounts receivable program. Credit and Capital Markets - Alliant Energy, IPL and WPL maintain a single revolving credit facility to provide backstop liquidity to their commercial paper programs, and ensure a committed source of liquidity in the event the commercial paper market becomes disrupted.
Credit and Capital Markets - Alliant Energy, IPL and WPL maintain a single revolving credit facility to provide backstop liquidity to their commercial paper programs, and ensure a committed source of liquidity in the event the commercial paper market becomes disrupted.
Capital needed to retire debt and fund capital expenditures related to large strategic projects is expected to be met primarily through external financings. 34 Table of Co ntents Cash Flows - Selected information from the cash flows statements was as follows (in millions): Alliant Energy IPL WPL 2022 2021 2022 2021 2022 2021 Cash, cash equivalents and restricted cash, January 1 $40 $56 $34 $50 $2 $3 Cash flows from (used for): Operating activities 486 582 83 153 299 371 Investing activities (933) (728) 215 91 (1,033) (716) Financing activities 431 130 (317) (260) 737 344 Net increase (decrease) (16) (16) (19) (16) 3 (1) Cash, cash equivalents and restricted cash, December 31 $24 $40 $15 $34 $5 $2 Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for 2022 compared to 2021 (in millions): Alliant Energy IPL WPL Timing of WPL’s fuel-related cost recoveries from retail electric customers ($80) $— ($80) Changes in the sales of accounts receivable at IPL (41) (41) — Changes in interest payments (39) (10) (10) Changes in levels of production fuel (19) (16) (3) Changes in levels of gas stored underground (15) — (15) Lower (higher) contributions to qualified defined benefit pension plans (13) (33) 18 Changes in income taxes paid/refunded (3) (11) (18) Higher collections from WPL’s retail electric and gas base rate increases 121 — 121 Changes in cash collateral and deposit balances at Corporate Services 38 — — Increased collections from IPL’s and WPL’s retail customers caused by temperature impacts on electric and gas sales 17 10 7 Timing of intercompany payments and receipts — 7 (26) Other (primarily due to other changes in working capital) (62) 24 (66) ($96) ($70) ($72) Income Tax Payments and Refunds - Income tax (payments) refunds were as follows (in millions): 2022 2021 IPL $36 $47 WPL (56) (38) Other subsidiaries 14 (12) Alliant Energy ($6) ($3) Alliant Energy, IPL and WPL currently do not expect to make any significant federal income tax payments over the next few years based on their current credit carryforward positions; however, some tax payments and refunds may occur for state taxes and between consolidated group members (including IPL and WPL) under the tax sharing agreement between Alliant Energy and its subsidiaries.
Cash Flows - Selected information from the cash flows statements was as follows (in millions): Alliant Energy IPL WPL 2023 2022 2023 2022 2023 2022 Cash, cash equivalents and restricted cash, January 1 $24 $40 $15 $34 $5 $2 Cash flows from (used for): Operating activities 867 486 261 83 578 299 Investing activities (1,401) (933) (326) 215 (946) (1,033) Financing activities 573 431 103 (317) 370 737 Net increase (decrease) 39 (16) 38 (19) 2 3 Cash, cash equivalents and restricted cash, December 31 $63 $24 $53 $15 $7 $5 37 Table of C o ntents Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for 2023 compared to 2022 (in millions): Alliant Energy IPL WPL Timing of WPL’s fuel-related cost recoveries from retail electric customers $200 $— $200 Changes in gas stored underground 104 45 59 Changes in income taxes paid/refunded 94 81 6 Changes in the sales of accounts receivable at IPL 85 85 — Lower (higher) contributions to qualified defined benefit pension plans 38 50 (12) Timing of intercompany payments and receipts — 28 35 Changes in interest payments (67) (2) (35) Decreased collections from IPL’s and WPL’s retail customers caused by temperature impacts on electric and gas sales (53) (30) (23) Changes in cash collateral and deposit balances at Corporate Services (33) — — Other (primarily due to other changes in working capital) 13 (79) 49 $381 $178 $279 Income Tax Payments and Refunds - Income tax (payments) refunds were as follows (in millions): 2023 2022 IPL $117 $36 WPL (50) (56) Other subsidiaries 21 14 Alliant Energy $88 ($6) Alliant Energy, IPL and WPL currently do not expect to make any significant federal income tax payments over the next few years based on their current credit carryforward positions; however, some tax payments and refunds may occur for state taxes and between consolidated group members (including IPL and WPL) under the tax sharing agreement between Alliant Energy and its subsidiaries.
Estimated increases (decreases) to electric and gas margins from the impacts of temperatures were as follows (in millions): Electric Margins Gas Margins 2022 2021 2022 2021 IPL $16 $12 $5 ($1) WPL 10 7 2 (2) Total Alliant Energy $26 $19 $7 ($3) Electric Sales for Resale - Electric sales for resale volume changes were largely due to changes in sales in the wholesale energy markets operated by MISO.
Estimated increases (decreases) to operating income from the impacts of temperatures were as follows (in millions): Electric Gas 2023 2022 Change 2023 2022 Change IPL ($1) $16 ($17) ($8) $5 ($13) WPL (5) 10 (15) (6) 2 (8) Total Alliant Energy ($6) $26 ($32) ($14) $7 ($21) Electric Sales for Resale - Bulk Power and Other - Bulk power and other volume changes were due to changes in sales in the wholesale energy markets operated by MISO.
Assumptions and judgments are made periodically to estimate the obligations and costs related to their retirement plans. There are many judgments and assumptions involved in determining an entity’s pension and other postretirement liabilities and costs each period including employee demographics (including life expectancies and compensation levels), discount rates, assumed rates of return and funding.
There are many judgments and assumptions involved in determining an entity’s pension and other postretirement liabilities and costs each period including employee demographics (including life expectancies and compensation levels), discount rates, assumed rates of return and funding. Changes made to plan provisions may also impact current and future benefits costs.
Key Highlights - • Alliant’s Energy’s economic development efforts resulted in being named a Top Utility in Economic Development by Site Selection Magazine for the fourth year in a row, and in 2022 being awarded the Chairman’s Award for Workforce Development Leadership by the Center for Energy Workforce Development. • Alliant Energy continues to partner with its commercial and industrial customers to help develop renewable solutions to enhance their sustainability initiatives, including planned solar facilities in Iowa and Wisconsin. • Alliant Energy has various development-ready sites throughout Iowa and Wisconsin, including the 1,300-acre Big Cedar Industrial Center Mega-site in Cedar Rapids, Iowa, and the 730-acre Prairie View Industrial Center Super Park in Ames, Iowa, which are rail-served ready-to-build manufacturing and industrial sites in close proximity to the regional airport and interstate freeways and access IPL’s electric services.
Key Highlights - • Alliant’s Energy was named a Top Utility in Economic Development by Site Selection Magazine for the fifth year in a row, and was named a Top Utility by Business Facilities Magazine for the fourth year in a row. • Alliant Energy has various development-ready sites throughout Iowa and Wisconsin, including the 1,300-acre Big Cedar Industrial Center Mega-site in Cedar Rapids, Iowa, and the 465-acre Prairie View Industrial Center Super Park in Ames, Iowa, which are rail-served, ready-to-build manufacturing and industrial sites in close proximity to the regional airport, interstate freeways and IPL’s electric services.
CUSTOMER INVESTMENTS Alliant Energy’s, IPL’s and WPL’s strategic priorities include making significant customer-focused investments toward cleaner energy and resilient and sustainable customer solutions. These priorities include: Clean Energy Blueprint Alliant Energy has developed a Clean Energy Blueprint, or its cleaner energy strategy, as a guide to meet customer demand for affordable, safe, reliable and sustainable energy in Iowa and Wisconsin.
These priorities include: Clean Energy Blueprint Alliant Energy has developed a Clean Energy Blueprint, or the roadmap for its transition to cleaner energy, as a guide to meet customer demand for affordable, safe, reliable and sustainable energy in Iowa and Wisconsin.
Estimated capital expenditures for expected and current electric and gas distribution infrastructure projects for 2023 through 2026 are included in the “Electric and gas distribution systems” lines in the construction and acquisition expenditures table in “ Liquidity and Capital Resources .” Fiber Optic Telecommunication Network - Alliant Energy is currently installing fiber optic routes between its facilities to enhance its communications network to improve resiliency and reliability of, and enable and strengthen, the integrated grid network focused on less densely populated rural areas among financially disadvantaged customers and communities.
Estimated capital expenditures for expected and current electric and gas distribution infrastructure projects for 2024 through 2027 are included in the “Electric and gas distribution systems” lines in the construction and acquisition expenditures table in “ Liquidity and Capital Resources .” Fiber Optic Telecommunication Network - Alliant Energy is currently installing fiber optic routes between its facilities to enhance its communications network to improve resiliency and reliability of, and enable and strengthen, the integrated grid network focused on less densely populated rural areas. 34 Table of C o ntents Gas Pipeline Expansion - IPL and WPL currently expect to make investments to extend various gas distribution systems to provide natural gas to unserved or underserved areas in their service territories.
Plans to address certain requirements for specific pipelines were developed and implemented, with identified remediation efforts to be completed by July 2035. In anticipation of these rule changes, Alliant Energy, IPL and WPL have been proactively replacing certain of IPL’s transmission pipelines, making modifications to certain of WPL’s transmission pipelines, and updating practices for assessment and operation of these pipelines.
In anticipation of these rule changes, Alliant Energy, IPL and WPL have been proactively replacing certain of IPL’s transmission pipelines, making modifications to certain of WPL’s transmission pipelines, and updating practices for assessment and operation of these pipelines.
Refer to Note 12 for discussion of the carryforward positions. As discussed in “ Legislative Matters ,” the Inflation Reduction Act of 2022 provides the right to transfer future renewable tax credits to other corporate taxpayers, which is expected to result in future cash flows from operating activities for Alliant Energy, IPL and WPL beginning as early as 2023.
Refer to Note 12 for discussion of the carryforward positions. As discussed in “ Legislative Matters ,” the Inflation Reduction Act of 2022 provides the right to transfer renewable tax credits to other corporate taxpayers. Refer to the cash flows statements and Note 1 (c) for details of renewable tax credits transferred to other corporate taxpayers in 2023.
The increase was primarily due to higher revenue requirements and AFUDC from WPL capital investments and higher electric and gas margins, including the impacts of temperatures. These items were partially offset by higher depreciation expense.
The increase was primarily due to higher revenue requirements and AFUDC from capital investments and lower other operation and maintenance expenses at IPL and WPL. These items were partially offset by higher interest expense, lower retail electric and gas sales primarily due to temperature impacts, and higher depreciation expense.

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