Powering Beyond. Europe Investor Meetings March 20 22, 2018

Transcription

1 Powering Beyond Europe Investor Meetings March 20 22, 2018

2 Safe Harbor This presentation contains statements that may be considered forward looking statements, such as management s expectations of financial objectives and projections, capital expenditures, earnings growth, plant retirements, rate base, and new generation plans. These statements speak of the Company s plans, goals, beliefs, or expectations, refer to estimates or use similar terms. Actual results could differ materially, because the realization of those results is subject to many uncertainties including regulatory approvals and results, unanticipated construction costs or delays, economic conditions in our service territories, and other factors, some of which are discussed in more detail in the Company s Form 10-K for the year ended December 31, All forward looking statements included in this presentation are based upon information presently available and the Company assumes no obligation to update any forward looking statements. In addition, this presentation contains non-gaap financial measures. The reconciliations between the non-gaap and GAAP measures are provided in this presentation. 1

3 Attractive total return Investment Considerations Long term earnings growth rate of 5-7% using 2017 non-gaap temperature normalized base of $1.99 per share. Projected 6% earnings growth for Target dividend payout of 60-70% of consolidated earnings. Forecasting a dividend of $1.34 per share for 2018, a 6% increase over Future strategic investments focused on electric and gas distribution, as well as renewable and gas generation Constructive regulatory environments Strong balance sheet and liquidity 99% of non-gaap earnings from continuing operations generated by regulated operations in

4 Regulated Utility Profile 2017 data IPL WPL Total Electric Customers 490, , ,121 Electric Retail Sales (000s MWh) 14,356 10,739 25,095 Electric Wholesale Sales (000s MWH) 1,338 2,301 3,639 Summer Peak Demand (MW) 2,968 2,476 Gas Customers 224, , ,054 Gas Sales (000s Dths) 65,945 60, ,166 Operating Revenues (millions) $1,870 $1,473 $3,382 Service Territory Advantages Favorable commission rankings Economic diversity High quality renewable resources Access to ANR, Northern Border, and Northern Natural Gas pipelines Access to Powder River Basin coal Iowa IPL Wisconsin WPL 3

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6 Advancing Cleaner Energy Investing $2 billion in renewable energy Expect to add 1,200 MW of wind by 2020 Currently have 568 MW of owned and approximately 600 MW of PPA renewables Expect to add utility scale solar post 2020 Forecast approximately 30% of rated capacity will be from renewable sources by 2024 Retired or converted approximately 40% of 2010 coal-fired capacity Adding two state-of-the-art natural gas-fired combined-cycle units In 2017, the 706 MW Marshalltown Generating Station was placed in service in Iowa By 2020, we expect the 730 MW West Riverside Generating Station to be placed in service in Wisconsin Invested over $1.2 billion in emission control systems

7 Reducing our air emissions impact 6

8 Benefits of Wind Energy HELPS KEEP RATES LOW Turbine cost has dropped ~ 40% in the last 10 years Improvements in turbine technology maximize energy output Generation production tax credits for 10 years No associated fuel expense, helping provide cost stability Reduced fuel, along with tax credits, offset capital recovery STRENGTHENS OUR COMMUNITIES Provides tax revenues to support local services Creates jobs and helps grow local economies Lease payments for land owners Helps spur improvements to strengthen the power grid Attracts companies focused on sustainability 7

9 Wind Development Progress Regulatory Approvals Iowa (IPL) RPU I: IUB approval for up to 500 MW in 2016 RPU II: filed additional IUB request in August 2017 for up to 500 MW Wisconsin (WPL) Plan to request construction authority from the PSCW for up to 200 MW of wind including a Q request to purchase an interest in the Forward Energy wind project Location Size (MW) NCF * In Service Cedar Ridge 68 MW 30% 2008 Forward Energy 55 MW (of 129) 30% 2008 Whispering Willow East / Franklin County 300 MW 36% 2009 / 2012 Bent Tree 200 MW 32% 2011 Upland Prairie up to 300 MW 44 46% 2019 English Farms up to 170 MW 42 44% 2019 Whispering Willow Expansion up to 200 MW 47 49% 2020 * NCF = Net Capacity Factor for 2017, for developed sites 8

10 Alliant Energy Solar Over 8.5MW in Operation Rock River PPA: Environmental mitigation Future Development Projects in Capital Expenditure Plan: Marshalltown: 1.5 MW Environmental Mitigation Project West Riverside: 2.0 MW off-set plant auxiliary power Indian Creek Nature Center: Partnership and Community Driven Madison HQ: Research and Education Dubuque: Utility scale Solar Considerations for additional solar investments: Site solar assets where they provide grid-benefit (defer Transmission and Distribution investment, address congestion issues, provide non-wires alternative, etc.) Provide customers the opportunity to host our solar at their facility (under development as a product offering) 9

11 Gas Generation Investments Drive Growth Compliment Renewables WPL s West Riverside Energy Center Need resulting from planned coal and gas retirements and modest load growth An approximate 730 MW combined-cycle natural gas facility WPL s share of estimated cost is $640 million for facility, excluding transmission network upgrades and allowance for funds used during construction (AFUDC) Approved by Public Service Commission of Wisconsin (PSCW) in May 2016 AECOM selected as engineering, procurement and construction contractor GE Frame 7FA.05 combustion turbines In-service by early 2020 WPL will provide book-value purchase options for partial ownership of the facility. Utilities and electric cooperatives Purchase option amount Option timing Adams Columbia Electric Cooperative (ACEC) Rock Energy Cooperative (REC) approximately 65 megawatts Options exercised January 2018 Central Wisconsin Electric Cooperative (CWEC) Wisconsin Public Service Corporation (WPS) up to 200 megawatts Madison Gas and Electric Company (MGE) up to 50 megawatts

12 Electric Distribution Strategy Grid Enhancements and Customer Need Distributed Generation/Renewable integration Integrate planning with generation and transmission Increase remote monitoring and control Eliminate lower voltage systems Resiliency improvements (incl. underground/hardening) Enhanced communication network Increased data and analytics Utility as trusted advisor for technical solutions Advanced metering infrastructure in Iowa 11

13 Natural Gas Strategy Reliability and Customer Growth Preparing for expected PHMSA rules Modifying existing pipes for enhanced inspection and verification requirements Replacing and making modifications to aging gas transmission lines Increasing remote monitoring Replacing distribution line made of certain material through the Integrity Management program Add capacity to areas of growth potential Modify tariffs to promote growth Utility as trusted advisor for natural gas solutions Advanced metering infrastructure in Iowa 12

14 Capital Expenditures Capital Expenditures $5.4 Billion $2.0 $1.7 $1.7 Renewable Projects West Riverside Other Generation Other Gas Distribution Electric Distribution (In billions) $1.5 $1.0 $0.5 $- $1.0 $

15 Estimated Capital Expenditures Post 2021 ( estimated capital expenditures, excluding AFUDC) Electric Distribution $5.0 billion New Generation Generation Improvements and Maintenance Gas Distribution 14

16 Rate Base Growth Drives Earnings Growth Dilution Rising Interest Expense Regulatory Lag 5-7% projected Earnings per Share growth rate through

17 Financing Investments 2018 Financings Up to $700 million of debt at IPL (refinancing $350 million) Up to $1 billion of debt at AEF (refinancing $595 million) Up to $200 million of common equity through an at-themarket offering (ATM) Program and the Shareowner Direct Plan. $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Long-term Debt Maturities (in millions) IPL WPL SERVCO AEF 16

18 Incremental Growth Opportunity - ATC ATC s Midwest Operations (16% equity ownership interest): Projected capital expenditures of $3.6 to $4.4 billion over 10 years from $600 $500 $400 $300 $200 $100 $- ATC Midwest Operations Projected Capital Expenditures (in millions) Rate Base: 13-month average rate base approx. $3.3 billion Capital structure: Hypothetical 50% equity component Annual true-up mechanism for revenue requirement Current return on construction work-in-progress ATC s Business Development (20% equity ownership interest): ATC Alaska Project 6 munis or coops develop a Transco model for Alaska s Railbelt Established 50/50 Joint Venture with Duke Energy in 2011 (Duke-ATC LLC or DATC) 17

19 Key Regulatory Initiatives Interstate Power and Light Estimated Key Dates Iowa Utilities Board Decision regarding Retail Electric Base Rate Review Test Year 2016 (RPU ) File Energy Efficiency Plan (EEP ) Decision regarding Wind Expansion Advance Ratemaking Principles (RPU ) Q File Retail Gas Base Rate Review Test Year 2017 Q Decision regarding ratemaking treatment of the effect of the Tax Cut and Jobs Act of 2017 (INU ) Q Federal Energy Regulatory Commission (FERC) Decision regarding authorized return on equity (ROE) amounts for MISO transmission owners second complaint H Wisconsin Power and Light Public Service Commission of Wisconsin Decision regarding the purchase of an interest in Forward Wind Energy Center (5 BS 226) File for Wind Expansion Construction Authority H File Retail Electric and Gas Rate Review Test Periods 2019 and 2020 Q Decision regarding ratemaking treatment of the effect of the Tax Cut and Jobs Act of 2017 (05 AF 101) Q FERC Decision regarding the purchase of an interest in Forward Wind Energy Center (FERC 203 filing) Decision regarding authorized ROE amounts for MISO transmission owners second complaint H

20 $1.70 Attractive Growth in Earnings, Dividends and Total Returns Adjusted (non-gaap temperature normalized) Earnings per Share from continuing operations $1.79 $1.88 $1.99 $2.11 $250 $200 Total Shareholder Return Dividends per Common Share $1.02 $1.10 $1.18 $1.26 $1.34 (a) $ E $ Alliant Energy Corporation (LNT) S&P 500 Index EEI Utilities Comparison of cumulative five-year total return when investing $100 on December 31, 2012 (a) E Annual common stock dividend target. Payment of the quarterly dividends is subject to the actual dividend declaration by the Board of Directors. 19

21 Environmental, Social, Governance Fossil Generation Water Withdrawals 2030 targeted reduction 75% from 2005 levels Carbon Dioxide Emissions 2030 targeted reduction 40% from 2005 levels At end of 2017, achieved 30% At end of 2017, achieved 25% Charitable Contributions by Alliant and its employees $7 million in 2017 Renewable Investments $2 billion Board Diversity Gender Diversity in the boardroom Women 55% 20