We Expect a Constructive Rate Case Outcome in Alliant’s Wisconsin Territory

Our forecast for Alliant Energy LNT to invest over $10 billion from 2023-27 supports our estimate for the company to achieve the top half of management’s 5%-7% growth target. Management estimates continued capital investment opportunities in the second half of the decade, supporting growth beyond our forecast.

Interstate Power and Light, or IP&L, continues to build out renewable energy in Iowa. In addition to its significant wind generation in Iowa, for which the company earns a premium return on equity, the subsidiary now aims to install significant solar generation as well as distributed energy resources. We continue to believe Iowa offers ample renewable energy investment opportunities—both wind and solar—to support the utility’s Clean Energy Blueprint, which plans to eliminate all coal generation by 2040 and achieve net-zero carbon dioxide emissions by 2050.

At Wisconsin Power and Light, renewable energy is also a focus as the company begins replacing retiring coal generation. WPL plans sizable solar energy investments paired with battery storage. WPL has similar clean energy goals IP&L, including a 50% reduction in carbon emissions by 2030, eliminating coal from its generation fleet by 2040, and reaching net-zero carbon emissions from its generation fleet by 2050.

Alliant benefits from operating in what we consider two of the most constructive regulatory jurisdictions. To maintain earned returns near allowed returns during this period of high investment, management has worked to reduced regulatory lag, received above-average allowed returns across its subsidiaries, and aims continue to reduce operating costs for the near term.

At WPL, Alliant Energy filed a rate case that asks regulators to maintain its 10% allowed ROE with modest revenue increases in 2024-25. A decision is expected later this year. We expect an outcome consistent with WEC Energy Group’s 9.8% allowed return in its rate outcome last year, which we viewed as constructive.

American Transmission Co., which we consider a wide-moat business, is tucked away from consolidated results (16% equity interest). Transmission offers higher returns relative to other rate-regulated investments.