The operator welcomes listeners to Alliant Energy's Third Quarter 2023 Earnings Conference Call and introduces the host, Susan Gille. Gille thanks participants for joining and introduces the other speakers, John Larsen, Lisa Barton, and Robert Durian. They will discuss the company's financial results, guidance, and capital expenditure plan. Gille reminds listeners of the risks involved and the use of non-GAAP financial measures. John Larsen then begins the call.

The speaker is pleased to report that the company is on track for another year of solid financial and operating results. They are narrowing their 2023 earnings guidance range and affirming their long-term earnings growth range. The speaker also announces their 2024 earnings guidance and dividend target, which represent a 6% increase from the previous year. They also mention a recent change in leadership, with the speaker moving into the role of Executive Chairman and Lisa Barton becoming the new CEO. The speaker then highlights the company's purpose of serving customers and building stronger communities and shares some positive headlines from the third quarter. They conclude by stating that the company consistently delivers strong results, which is why investors choose to invest in them.

The company's proactive actions to mitigate rising financing costs and dedication to cost management make them well-positioned to achieve their long-term earnings guidance. They have also announced an increase in capital investment forecast for the next 7 years. The team's efforts to take advantage of tax credits and invest in innovative projects, such as the first customer-hosted solar project in Iowa, demonstrate their commitment to reducing costs and promoting sustainable energy practices.

The paragraph discusses two projects that the company is working on, including a first-of-its-kind energy storage system and a project at an existing generating facility. The company is proud to be investing in their local communities and recognizes the hard work of farmers and employees. The speaker, Lisa Barton, is grateful for the opportunity to lead the company in its future growth.

The author expresses their admiration for Alliant Energy's commitment to their purpose and shares an example of employee engagement and innovation in serving customers. They also highlight the company's role in the clean energy transition, with plans to increase renewable energy generation in the near future.

In the third quarter, the company has made progress in bringing new solar and energy storage projects online in Wisconsin and Iowa. They have also secured regulatory approval for additional battery storage projects in Wisconsin and are investing in wind repowering and transmission expansion to improve grid resiliency and reliability. These investments tie into the company's capital expenditure plan for the next four years, which has been increased by $600 million and includes investments in dispatchable generation resources, wind repowering, and transmission expansion.

The company's customer-centric capital investment forecast shows a solid 8% rate-based growth through 2027, with a focus on investing in generation and renewable energy. The company also plans to address MISO's resource adequacy needs by investing in gas projects and improving the efficiency and capacity of existing units. The company is also committed to ensuring reliability and resiliency during extreme weather through investments in natural gas supply and exploring new technologies. The company also acknowledges and appreciates the IUB's advanced ratemaking decision, which provides certainty for the company.

The company remains confident in their ratemaking process and plans to submit additional filings next year. They recently filed a rate review in Iowa, focusing on investing in a diverse energy mix and grid modernization. They have requested a two-step increase to cover these investments and reduce outages and expenses. In Wisconsin, they are awaiting a decision from the PSCW on new rates. The company announced third quarter non-GAAP earnings of $1.05 per share, with higher revenue requirements and AFUDC from WPL capital investments being partially offset by higher interest expense. There was also a non-GAAP adjustment related to Iowa state tax reform.

The Iowa Department of Revenue announced a decrease in the state tax rate, resulting in a charge for the current year but also allowing for savings to be passed on to customers. Net temperatures have affected Alliant Energy's earnings, but overall sales are consistent with the previous year. The company expects strong earnings growth in the fourth quarter due to investments in solar projects and lower operating costs. The company has narrowed its earnings guidance for the year. They are focused on their purpose-driven strategy to benefit customers and reduce operating costs as they transition to renewable energy.

The company expects their planned solar and wind projects to offset the increased renewable rate base through production tax credits and reduced fuel expenses. They anticipate long-term benefits for customers and shareowners, and are well-positioned to take advantage of the Inflation Reduction Act. They have successfully completed a $300 million debt issuance and plan to raise $250 million in equity for 2023. They will finance their capital investment plan through a combination of cash from operations, tax credit monetizations, and new long-term debt. They also anticipate modest levels of common equity through their Shareowner Direct Plan and future ATM programs, pending approval from regulatory bodies.

Alliant Energy plans to secure up to $1.9 billion in financing over the next 14 months, including long-term debt and new common equity. They also have two debt maturities in 2024. The company has ongoing regulatory initiatives, including rate reviews in each state, and plans to initiate additional regulatory filings in 2024 to add renewables and dispatchable resources to their energy portfolio. They also have pending proceedings to improve the efficiency and reliability of their gas-generating units and to sell part of their West Riverside facility.

The speaker expresses gratitude for the company's support and announces plans to post updated materials on their website. The operator then opens up the call for questions from investors. The speaker is asked about the company's tax credit opportunities and provides information about their financing plans, including the use of cash flows from operations and the monetization of tax credits. They anticipate generating around $300 million annually from tax credit proceeds.

The company has flexibility in financing plans and does not require additional common equity. They may need new common equity depending on regulatory decisions. Load for fiscal year 2023 is expected to be in line with expectations, but the company has seen strong economic development interest and may update their forecast accordingly.

Robert Durian, speaking on behalf of the company, stated that they are currently tracking towards the midpoint of their projected range for the rest of the year. They have experienced some mild weather in the first quarter, resulting in a decrease in earnings, but have since seen an increase in the third quarter due to warmer temperatures. They anticipate ending the year close to the midpoint, as previously guided. Looking ahead to 2024, they are confident in their guidance range, which is influenced by sales, capital execution, regulatory decisions, and cost management. The ITL rate case has recently been filed, and the company has had positive outcomes in similar processes this year.

In response to a question about settling a rate case, Lisa Barton explains that they have a transparent process and a balanced ask for a settlement. She also mentions a shift to gas projects due to changes in the MYSO capacity construct, but assures that it is not due to any issues with renewable investments or the supply chain.

Robert Durian and John Larsen discuss the company's plans for renewable energy projects in the next few years. They mention the potential for tax credit generation from existing and upcoming projects, as well as the possibility of adding more renewables to their portfolio. They also mention future CapEx opportunities and the company's focus on adding capacity resources while continuing to develop renewable projects.

Andrew Weisel congratulates John and Lisa on their promotions and asks about the expected 3-4% reduction in O&M expenses. John defers to Robert to answer, and Robert explains that the reduction will come from strategic spending in 2022 and efficiency improvements in the field, such as the underground program.

The speaker discusses reductions in spending and O&M as a result of the Lansing retirement, with about half being sustainable and the other half being strategic. They also mention a solar project in Iowa and the IUB's decision to approve a lower ROE than initially expected. The speaker clarifies that this decision does not affect the rate case and that they will continue to push for a higher ROE. Finally, they mention the need for $200 million in equity, which is primarily for a decision in Wisconsin.

The speaker is clarifying the financial details discussed in the previous paragraph. They mention a one-time step-up of $40 million for every 50 basis points, and plan to continue issuing $25 million in equity per year. They also mention the transferability benefit and their goal of keeping rate increases in line with cost of living increases. They emphasize their focus on affordability and mention their addition of zero fuel cost resources.

The future of the settlement process in Wisconsin is expected to continue being constructive, despite challenges from parties with different priorities. The company remains committed to transparency and bringing parties to the table. This year was unique with five IOUs before the Commission at one time. A replay of the call will be available on the investor website.

This summary was generated with AI and may contain some inaccuracies.