The operator introduces the Alliant Energy's Year-End 2023 Earnings Conference Call, and Susan Gille, Investor Relations Manager, welcomes the participants. She introduces the speakers and mentions that the call will include forward-looking statements and references to non-GAAP financial measures. John Larsen, Executive Chairman, thanks everyone for joining and states that 2023 was a successful year.

In 2023, the company achieved adjusted earnings of $2.88, excluding temperature impacts and non-GAAP adjustments, meeting their long-term growth expectations. They are proud of consistently achieving their earnings growth objectives and delivering EPS growth of at least 5% for the 14th consecutive year. They also increased their dividend for the 20th year in a row and successfully executed a large capital expenditure program, with nearly 30% of their electric distribution system now underground. The company also made progress on their generation investments, particularly in Wisconsin with their utility scale solar projects. These investments provide customer benefits, such as access to zero cost fuel resources and diversifying their energy mix, while also supporting local economies and generating renewable tax credits that improve cash flow and provide financing flexibility.

The CEO of Alliant Energy reflects on the company's technology investments and undergrounding efforts, which have improved their electric reliability and positioned them as top performers compared to other utilities. He expresses pride in the employees and their embodiment of the company's purpose and values. He also congratulates the incoming CEO, Lisa, and looks forward to continued success in the future. Lisa Barton, the incoming CEO, thanks the current CEO for his leadership and discusses the company's progress in their generation transformation in Wisconsin.

The company is increasing its use of solar energy in Wisconsin and Iowa, with plans to bring 1,500 additional megawatts of clean energy online by the end of the year. They are also partnering with local businesses and communities for customer-hosted and community solar projects. The company retired their last coal unit in 2023 and is seeing a decline in outages. They are also investing in repowering a wind project in Iowa for increased efficiency.

In 2023, Alliant Energy made significant progress in their efforts towards a successful and responsible clean energy transition. They closed 29 surface impoundments, invested in dispatchable gas generation, battery storage, and wind repowering, and planned for the future by evolving and refining their clean energy blueprint. They also had a record year for economic development activities and were named a top utility by Business Facilities Magazine. Recently, they announced the retirement of Terry Kouba, President of IPL, who has been a dedicated and customer-focused leader for 43 years.

The paragraph discusses the retirement of Terry Kouba, President of Alliant Energy, and the appointment of May Farlinger as his successor. It also mentions the company's 2023 adjusted earnings and their 5.5% increase from the previous year, driven by higher revenue requirements and cost controls. The company's focus on delivering clean, reliable, and affordable energy is highlighted, along with their long-term earnings growth target of 5% to 7%.

The 2023 results for Alliant Energy show a decrease in O&M expenses and a decrease in earnings due to rising financing and depreciation expenses. The changes in temperature also had an impact on earnings. Cash flows from operations increased significantly in 2023, primarily due to the timing of fuel-related cost recoveries and tax credit monetization. The company is expecting consistent growth in adjusted earnings per share in 2024 and has affirmed their earnings guidance range for that year.

The company's efforts to support customer value through smart investments and controlling operating costs have resulted in solid financial results. In 2024, the company plans to raise $1.7 billion in new debt to finance renewable and battery projects and refinance existing debt. They also expect to generate renewable tax credits and transfer them to reduce financing needs. This will result in cost-effective solutions for customers and long-term value for shareholders. Customers have already experienced lower retail electric rates in Iowa and will receive refunds in Wisconsin. The company is also well positioned to capture additional benefits from government programs, such as grants for energy storage.

The company is maximizing tax benefits by meeting tax credit requirements and monetizing tax credits, which improves cash flow and credit metrics. They have filed rate reviews in both Wisconsin and Iowa, with new rates effective in January 2021. They also have two pending proceedings in Wisconsin and plan to make regulatory filings in 2024 for additional renewables and dispatchable resources. The company appreciates the support of their stakeholders and looks forward to meeting with them in the future. The call will now move to the question-and-answer portion. The first question is from Shahriar Pourreza at Guggenheim Partners.

Lisa Barton and Shahriar Pourreza discuss the schedule for Iowa and the prospects for a settlement. Lisa mentions that everything is going as expected and the settlement window could occur any time after June 18. They also mention a report from the IUB to the legislature and potential policy updates, including advanced ratemaking for alternative technologies. They are not in favor of a contested IRP proceeding. Nicholas Campanella asks about tax credit monetization and the potential benefit in the out years. Robert Durian responds that they expect $300 million a year in '25 and beyond.

The company has been successful in executing bilateral agreements with the first round of tax credits sold in 2023. They anticipate reaching over $300 million in tax credits by 2025 due to the volume of wind and solar production, battery projects, and repowering of older wind projects. The company is also updating their Clean Energy Blueprint in Iowa and Wisconsin, with any associated capital expenditures to be announced in the fall. This is not currently reflected in the company's plan.

Julien Dumoulin-Smith asks Lisa Barton about the demand from customers and how it will affect their Clean Energy Blueprint. Lisa mentions that they are focused on economic development and will update their resource planning needs in the future. She also mentions that they are keeping an eye on MISO's updates, which are expected later this year and will likely align with their timeline. Julien asks for more details on the demand and Lisa mentions that it is concentrated in specific corridors and interstates.

Lisa Barton, an executive at Ameren, states that the company is actively marketing their mega sites in Iowa and Wisconsin and that these locations should be watched for potential growth. During a conference call, Robert Durian, another executive at Ameren, clarifies that the company has consistently removed weather impacts from their adjusted earnings for over a decade. He also addresses a question about the company's financial performance and states that they are managing the business as they always have.

The speaker discusses the recent impact of temperature on earnings, stating that for the first time in 6 years, the temperature has resulted in lower earnings. They mention that in the previous 5 years, they did not offset this with additional spending. They express confidence in their consistent operation of the business and mention that O&M expenses are expected to remain flat in 2024 despite inflationary pressures and new generation projects. The call ends with a reminder to access the replay and contact the speaker for any follow-up questions.

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