Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

144K characters. Original on sec.gov · Markdown

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
	2021	2020	2021	2020
	(in millions, except per share amounts)
Revenues:
Electric utility	$939	$852	$2,357	$2,257
Gas utility	50	42	289	253
Other utility	13	10	36	32
Non-utility	22	16	60	57
Total revenues	1,024	920	2,742	2,599
Operating expenses:
Electric production fuel and purchased power	207	179	478	527
Electric transmission service	148	132	403	326
Cost of gas sold	18	11	149	117
Other operation and maintenance	171	143	477	465
Depreciation and amortization	165	156	494	454
Taxes other than income taxes	26	27	78	82
Total operating expenses	735	648	2,079	1,971
Operating income	289	272	663	628
Other (income) and deductions:
Interest expense	68	68	206	207
Equity income from unconsolidated investments, net	(13)	(15)	(47)	(46)
Allowance for funds used during construction	(7)	(13)	(16)	(51)
Other	3	3	7	7
Total other (income) and deductions	51	43	150	117
Income before income taxes	238	229	513	511
Income tax benefit	(21)	(20)	(66)	(47)


Net income	259	249	579	558
Preferred dividend requirements of Interstate Power and Light Company	3	3	8	8
Net income attributable to Alliant Energy common shareowners	$256	$246	$571	$550
Weighted average number of common shares outstanding:
Basic	250.3	249.7	250.2	247.9
Diluted	250.8	250.0	250.6	248.1
Earnings per weighted average common share attributable to Alliant Energy common shareowners:
Basic	$1.02	$0.99	$2.28	$2.22
Diluted	$1.02	$0.98	$2.28	$2.22

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			3

ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


	September 30, 2021	December 31, 2020
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$20	$54
Accounts receivable, less allowance for expected credit losses	392	412

Production fuel, at weighted average cost	42	66
Gas stored underground, at weighted average cost	58	46
Materials and supplies, at weighted average cost	118	105
Regulatory assets	111	81

Other	274	123
Total current assets	1,015	887
Property, plant and equipment, net	14,738	14,336
Investments:
ATC Holdings	338	331
Other	176	154
Total investments	514	485
Other assets:
Regulatory assets	1,907	1,929
Deferred charges and other	155	73
Total other assets	2,062	2,002
Total assets	$18,329	$17,710


LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$383	$8
Commercial paper	316	389

Accounts payable	361	377

Regulatory liabilities	231	249
Other	266	274
Total current liabilities	1,557	1,297
Long-term debt, net (excluding current portion)	6,692	6,769
Other liabilities:
Deferred tax liabilities	1,906	1,814
Regulatory liabilities	1,130	1,057
Pension and other benefit obligations	452	511
Other	407	374
Total other liabilities	3,895	3,756
Commitments and contingencies (N ot e 14)
Equity:
Alliant Energy Corporation common equity:
Common stock - $0.01 par value - 480,000,000 shares authorized; 250,360,787 and 249,868,415 shares	3	2
Additional paid-in capital	2,733	2,704
Retained earnings	3,261	2,994
Accumulated other comprehensive loss	(1)	(1)
Shares in deferred compensation trust - 377,875 and 380,542 shares at a weighted average cost of $30.14 and $28.73 per share	(11)	(11)
Total Alliant Energy Corporation common equity	5,985	5,688
Cumulative preferred stock of Interstate Power and Light Company	200	200
Total equity	6,185	5,888
Total liabilities and equity	$18,329	$17,710

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			4

ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	For the Nine Months
	Ended September 30,
	2021	2020
	(in millions)
Cash flows from operating activities:
Net income	$579	$558
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	494	454
Deferred tax benefit and tax credits	(69)	(48)


Other	7	(17)
Other changes in assets and liabilities:
Accounts receivable	(397)	(316)
Derivative assets	(202)	(22)




Regulatory liabilities	25	(72)
Deferred income taxes	160	143
Pension and other benefit obligations	(59)	(61)
DAEC PPA amendment buyout payment	—	(110)
Other	(61)	(73)
Net cash flows from operating activities	477	436
Cash flows used for investing activities:
Construction and acquisition expenditures:
Utility business	(772)	(935)
Other	(60)	(39)
Cash receipts on sold receivables	423	318
Other	(43)	(23)
Net cash flows used for investing activities	(452)	(679)
Cash flows from (used for) financing activities:
Common stock dividends	(304)	(281)
Proceeds from issuance of common stock, net	22	241
Proceeds from issuance of long-term debt	300	1,050
Payments to retire long-term debt	(4)	(654)
Net change in commercial paper	(73)	85
Other	2	(22)
Net cash flows from (used for) financing activities	(57)	419
Net increase (decrease) in cash, cash equivalents and restricted cash	(32)	176
Cash, cash equivalents and restricted cash at beginning of period	56	18
Cash, cash equivalents and restricted cash at end of period	$24	$194
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest	($197)	($197)
Income taxes, net	($1)	$6
Significant non-cash investing and financing activities:
Accrued capital expenditures	$91	$202
Beneficial interest obtained in exchange for securitized accounts receivable	$164	$201

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			5

INTERSTATE POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
	2021	2020	2021	2020
	(in millions)
Revenues:
Electric utility	$555	$519	$1,343	$1,332
Gas utility	31	24	165	141
Steam and other	13	10	35	31
Total revenues	599	553	1,543	1,504
Operating expenses:
Electric production fuel and purchased power	101	102	215	304
Electric transmission service	103	93	274	212
Cost of gas sold	12	6	84	63
Other operation and maintenance	95	85	253	269
Depreciation and amortization	94	89	281	264
Taxes other than income taxes	14	16	42	45
Total operating expenses	419	391	1,149	1,157
Operating income	180	162	394	347
Other (income) and deductions:
Interest expense	34	35	103	104
Allowance for funds used during construction	(2)	(6)	(7)	(21)
Other	—	1	2	3
Total other (income) and deductions	32	30	98	86
Income before income taxes	148	132	296	261
Income tax benefit	(12)	(19)	(34)	(37)
Net income	160	151	330	298
Preferred dividend requirements	3	3	8	8
Net income available for common stock	$157	$148	$322	$290

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			6

INTERSTATE POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


	September 30, 2021	December 31, 2020
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$13	$50
Accounts receivable, less allowance for expected credit losses	205	210

Production fuel, at weighted average cost	32	48
Gas stored underground, at weighted average cost	33	20
Materials and supplies, at weighted average cost	71	63
Regulatory assets	86	52
Other	108	53
Total current assets	548	496
Property, plant and equipment, net	7,931	7,889
Other assets:
Regulatory assets	1,421	1,431
Deferred charges and other	78	33
Total other assets	1,499	1,464
Total assets	$9,978	$9,849


LIABILITIES AND EQUITY
Current liabilities:


Accounts payable	$140	$162

Regulatory liabilities	104	103


Other	171	182
Total current liabilities	415	447
Long-term debt, net	3,347	3,345
Other liabilities:
Deferred tax liabilities	1,079	1,035
Regulatory liabilities	616	573
Pension and other benefit obligations	161	186
Other	325	299
Total other liabilities	2,181	2,093
Commitments and contingencies (Note 14)
Equity:
Interstate Power and Light Company common equity:
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding	33	33
Additional paid-in capital	2,802	2,752
Retained earnings	1,000	979
Total Interstate Power and Light Company common equity	3,835	3,764
Cumulative preferred stock	200	200
Total equity	4,035	3,964
Total liabilities and equity	$9,978	$9,849

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			7

INTERSTATE POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	For the Nine Months
	Ended September 30,
	2021	2020
	(in millions)
Cash flows from operating activities:
Net income	$330	$298
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	281	264

Deferred tax benefit and tax credits	(13)	(42)
Other	(1)	(9)
Other changes in assets and liabilities:
Accounts receivable	(412)	(337)
Derivative assets	(86)	(12)

Regulatory assets	(33)	(32)

Regulatory liabilities	30	(11)

Deferred income taxes	56	62
Pension and other benefit obligations	(25)	(19)
DAEC PPA amendment buyout payment	—	(110)
Other	(32)	(33)
Net cash flows from operating activities	95	19
Cash flows from (used for) investing activities:
Construction and acquisition expenditures	(285)	(465)
Cash receipts on sold receivables	423	318
Other	(16)	(55)
Net cash flows from (used for) investing activities	122	(202)
Cash flows from (used for) financing activities:
Common stock dividends	(301)	(177)
Capital contributions from parent	50	345
Proceeds from issuance of long-term debt	—	400
Payments to retire long-term debt	—	(200)

Other	(3)	(9)
Net cash flows from (used for) financing activities	(254)	359
Net increase (decrease) in cash, cash equivalents and restricted cash	(37)	176
Cash, cash equivalents and restricted cash at beginning of period	50	9
Cash, cash equivalents and restricted cash at end of period	$13	$185
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest	($106)	($109)
Income taxes, net	$28	($12)
Significant non-cash investing and financing activities:
Accrued capital expenditures	$30	$150
Beneficial interest obtained in exchange for securitized accounts receivable	$164	$201

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			8

WISCONSIN POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
	2021	2020	2021	2020
	(in millions)
Revenues:
Electric utility	$384	$333	$1,014	$925
Gas utility	19	18	124	112
Other	—	—	1	1
Total revenues	403	351	1,139	1,038
Operating expenses:
Electric production fuel and purchased power	105	78	263	223
Electric transmission service	44	39	128	114
Cost of gas sold	6	4	65	53
Other operation and maintenance	66	65	194	172
Depreciation and amortization	70	65	209	186
Taxes other than income taxes	12	11	35	35
Total operating expenses	303	262	894	783
Operating income	100	89	245	255
Other (income) and deductions:
Interest expense	25	26	77	78

Allowance for funds used during construction	(5)	(6)	(9)	(29)
Other	2	1	3	3
Total other (income) and deductions	22	21	71	52
Income before income taxes	78	68	174	203
Income tax benefit	(15)	(5)	(41)	(17)
Net income	$93	$73	$215	$220

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			9

WISCONSIN POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


	September 30, 2021	December 31, 2020
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$4	$3
Accounts receivable, less allowance for expected credit losses	175	192

Production fuel, at weighted average cost	10	18
Gas stored underground, at weighted average cost	25	26
Materials and supplies, at weighted average cost	45	40
Regulatory assets	25	29
Prepaid gross receipts tax	29	42
Other	99	12
Total current assets	412	362
Property, plant and equipment, net	6,367	6,022
Other assets:
Regulatory assets	486	498
Deferred charges and other	76	30
Total other assets	562	528
Total assets	$7,341	$6,912


LIABILITIES AND EQUITY
Current liabilities:

Commercial paper	$3	$257

Accounts payable	160	154

Regulatory liabilities	127	146
Other	116	117
Total current liabilities	406	674
Long-term debt, net	2,429	2,130
Other liabilities:
Deferred tax liabilities	747	702
Regulatory liabilities	514	484
Finance lease obligations - Sheboygan Falls Energy Facility	34	42
Pension and other benefit obligations	193	222
Other	206	180
Total other liabilities	1,694	1,630
Commitments and contingencies (Note 14)
Equity:
Wisconsin Power and Light Company common equity:
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding	66	66
Additional paid-in capital	1,704	1,459
Retained earnings	1,042	953
Total Wisconsin Power and Light Company common equity	2,812	2,478


Total liabilities and equity	$7,341	$6,912

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			10

WISCONSIN POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	For the Nine Months
	Ended September 30,
	2021	2020
	(in millions)
Cash flows from operating activities:
Net income	$215	$220
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	209	186
Deferred tax benefit and tax credits	(63)	(9)
Other	12	(8)
Other changes in assets and liabilities:


Derivative assets	(116)	(10)


Regulatory liabilities	(5)	(61)

Deferred income taxes	108	79
Other	(11)	5
Net cash flows from operating activities	349	402
Cash flows used for investing activities:
Construction and acquisition expenditures	(487)	(470)
Other	(23)	5
Net cash flows used for investing activities	(510)	(465)
Cash flows from financing activities:
Common stock dividends	(126)	(127)
Capital contributions from parent	245	25
Proceeds from issuance of long-term debt	300	350
Payments to retire long-term debt	—	(150)
Net change in commercial paper	(254)	(29)
Other	(3)	(8)
Net cash flows from financing activities	162	61
Net increase (decrease) in cash, cash equivalents and restricted cash	1	(2)
Cash, cash equivalents and restricted cash at beginning of period	3	4
Cash, cash equivalents and restricted cash at end of period	$4	$2
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest	($72)	($71)
Income taxes, net	($24)	$5
Significant non-cash investing and financing activities:
Accrued capital expenditures	$59	$50

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.


			11

ALLIANT ENERGY CORPORATION

INTERSTATE POWER AND LIGHT COMPANY

WISCONSIN POWER AND LIGHT COMPANY

COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1(a) General - The interim unaudited Financial Statements included herein have been prepared pursuant to the rules and regulations of the SEC. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, although management believes that the disclosures are adequate to make the information presented not misleading. These Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the 2020 Form 10-K.

In the opinion of management, all adjustments, which unless otherwise noted are normal and recurring in nature, necessary for a fair presentation of the results of operations, financial position and cash flows have been made. Results for the nine months ended September 30, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, 2021.

A change in management’s estimates or assumptions could have a material impact on financial condition and results of operations during the period in which such change occurred. Certain prior period amounts in the Financial Statements and Notes have been reclassified to conform to the current period presentation for comparative purposes.

NOTE 1(b) Asset Impairments -

Property, Plant and Equipment of Regulated Operations - In the second quarter of 2021, WPL received approval from MISO to retire Columbia Units 1 and 2, which had a net book value of approximately $470 million in aggregate as of September 30, 2021, and currently anticipates retiring Columbia Unit 1 by the end of 2023 and Columbia Unit 2 by the end of 2024. Alliant Energy and WPL concluded that Columbia Units 1 and 2 met the criteria to be considered probable of abandonment as of September 30, 2021. 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 disallowance was required as of September 30, 2021.

NOTE 2. REGULATORY MATTERS

Regulatory Assets and Regulatory Liabilities -

Regulatory assets were comprised of the following items (in millions):


	Alliant Energy		IPL		WPL
	September 30, 2021	December 31, 2020	September 30, 2021	December 31, 2020	September 30, 2021	December 31, 2020
Tax-related	$931	$890	$881	$843	$50	$47
Pension and OPEB costs	549	580	276	291	273	289
Asset retirement obligations	124	119	85	81	39	38
Assets retired early	98	113	69	77	29	36
IPL’s DAEC PPA amendment	96	110	96	110	—	—
WPL’s Western Wisconsin gas distribution expansion investments	53	55	—	—	53	55
Commodity cost recovery	32	4	17	1	15	3
Derivatives	4	26	4	13	—	13

Other	131	113	79	67	52	46
	$2,018	$2,010	$1,507	$1,483	$511	$527

Commodity cost recovery - In February 2021, portions of the central and southern U.S., including Alliant Energy’s service territories, experienced a prolonged period of very cold temperatures and a series of winter storms. These events created significant volatility and increases in commodity prices caused by higher demand for electricity and natural gas and disruptions in commodity supply, resulting in IPL under-recovering its natural gas costs. In March 2021, IPL received approval from the IUB to spread recovery of these higher natural gas costs from its retail customers through December 2021. As of September 30, 2021, IPL’s cumulative under-collection of natural gas costs was $15 million. The extreme temperatures in February 2021 did not impact WPL’s natural gas costs and IPL’s and WPL’s fuel-related costs to the extent of IPL’s natural gas costs.

The cost recovery mechanism for WPL’s retail electric customers is based on forecasts of certain fuel-related costs expected to be incurred during forward-looking test periods and fuel monitoring ranges determined by the PSCW during each retail electric rate proceeding or in a separate fuel cost plan approval proceeding. In 2021, WPL’s actual fuel-related costs fell outside these fuel monitoring ranges, resulting in a $12 million deferral as of September 30, 2021.


			12

Regulatory liabilities were comprised of the following items (in millions):


	Alliant Energy		IPL		WPL
	September 30, 2021	December 31, 2020	September 30, 2021	December 31, 2020	September 30, 2021	December 31, 2020
Tax-related	$611	$732	$313	$331	$298	$401
Cost of removal obligations	383	367	252	238	131	129
Derivatives	221	28	104	25	117	3
Electric transmission cost recovery	53	68	29	39	24	29
WPL’s West Riverside liquidated damages	40	38	—	—	40	38



Other	53	73	22	43	31	30
	$1,361	$1,306	$720	$676	$641	$630

Tax-related - Alliant Energy’s, IPL’s and WPL’s tax-related regulatory liabilities are primarily related to excess deferred tax benefits resulting from the remeasurement of accumulated deferred income taxes caused by Federal Tax Reform. During the nine months ended September 30, 2021, Alliant Energy’s, IPL’s and WPL’s tax-related regulatory liabilities decreased primarily due to returning a portion of these excess deferred tax benefits back to customers.

NOTE 3. RECEIVABLES

Sales of Accounts Receivable - IPL maintains a Receivables Purchase and Sale Agreement (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 transfers of receivables meet the criteria for sale accounting established by the transfer of financial assets accounting rules. In April 2021, IPL amended and extended through March 2023 the purchase commitment from the third party to which it sells its receivables. Effective April 2021, the limit on cash proceeds is $110 million. As of September 30, 2021, IPL had $60 million of available capacity under its sales of accounts receivable program. IPL’s maximum and average outstanding cash proceeds (based on daily outstanding balances) related to the sales of accounts receivable program for the three and nine months ended September 30 were as follows (in millions):


	Three Months		Nine Months
	2021	2020	2021	2020
Maximum outstanding aggregate cash proceeds	$110	$1	$110	$96
Average outstanding aggregate cash proceeds	65	1	52	12

The attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):


	September 30, 2021	December 31, 2020
Customer accounts receivable	$145	$114
Unbilled utility revenues	83	92

Receivables sold to third party	228	206
Less: cash proceeds	50	1
Deferred proceeds	178	205
Less: allowance for expected credit losses	14	17
Fair value of deferred proceeds	$164	$188

As of September 30, 2021, outstanding receivables past due under the Receivables Agreement were $19 million. Additional attributes of IPL’s receivables sold under the Receivables Agreement for the three and nine months ended September 30 were as follows (in millions):


	Three Months		Nine Months
	2021	2020	2021	2020
Collections	$607	$561	$1,589	$1,555
Write-offs, net of recoveries	4	1	7	4

NOTE 4. INVESTMENTS

Unconsolidated Equity Investments - Alliant Energy’s equity (income) loss from unconsolidated investments accounted for under the equity method of accounting for the three and nine months ended September 30 was as follows (in millions):


	Three Months		Nine Months
	2021	2020	2021	2020
ATC Holdings	($12)	($11)	($34)	($36)

Other	(1)	(4)	(13)	(10)
	($13)	($15)	($47)	($46)


			13

NOTE 5. COMMON EQUITY

Common Share Activity - A summary of Alliant Energy’s common stock activity was as follows:


Shares outstanding, January 1, 2021			249,868,415


Shareowner Direct Plan			378,823
Equity-based compensation plans			113,549

Shares outstanding, September 30, 2021			250,360,787

Changes in Shareowners’ Equity - A summary of changes in shareowners’ equity was as follows (in millions):


Alliant Energy	Total Alliant Energy Common Equity
				Accumulated	Shares in	Cumulative
		Additional		Other	Deferred	Preferred
	Common	Paid-In	Retained	Comprehensive	Compensation	Stock	Total
	Stock	Capital	Earnings	Income (Loss)	Trust	of IPL	Equity
Three Months Ended September 30, 2021
Beginning balance, June 30, 2021	$3	$2,722	$3,106	($1)	($11)	$200	$6,019
Net income attributable to Alliant Energy common shareowners			256				256
Common stock dividends ($0.4025 per share)			(101)				(101)
Shareowner Direct Plan issuances		6					6
Equity-based compensation plans and other		5					5

Ending balance, September 30, 2021	$3	$2,733	$3,261	($1)	($11)	$200	$6,185
Three Months Ended September 30, 2020
Beginning balance, June 30, 2020	$2	$2,683	$2,874	($1)	($10)	$200	$5,748
Net income attributable to Alliant Energy common shareowners			246				246
Common stock dividends ($0.38 per share)			(94)				(94)
Shareowner Direct Plan issuances		6					6
Equity-based compensation plans and other		4			(1)		3


Ending balance, September 30, 2020	$2	$2,693	$3,026	($1)	($11)	$200	$5,909



Alliant Energy	Total Alliant Energy Common Equity
				Accumulated	Shares in	Cumulative
		Additional		Other	Deferred	Preferred
	Common	Paid-In	Retained	Comprehensive	Compensation	Stock	Total
	Stock	Capital	Earnings	Income (Loss)	Trust	of IPL	Equity
Nine Months Ended September 30, 2021
Beginning balance, December 31, 2020	$2	$2,704	$2,994	($1)	($11)	$200	$5,888
Net income attributable to Alliant Energy common shareowners			571				571
Common stock dividends ($1.2075 per share)			(304)				(304)
Shareowner Direct Plan issuances	1	21					22
Equity-based compensation plans and other		8					8


Ending balance, September 30, 2021	$3	$2,733	$3,261	($1)	($11)	$200	$6,185
Nine Months Ended September 30, 2020
Beginning balance, December 31, 2019	$2	$2,446	$2,766	$1	($10)	$200	$5,405
Net income attributable to Alliant Energy common shareowners			550				550
Common stock dividends ($1.14 per share)			(281)				(281)
Equity forward settlements and Shareowner Direct Plan issuances		241					241
Equity-based compensation plans and other		6			(1)		5
Adoption of new accounting standard, net of tax			(9)				(9)
Other comprehensive loss, net of tax				(2)			(2)
Ending balance, September 30, 2020	$2	$2,693	$3,026	($1)	($11)	$200	$5,909


			14


IPL	Total IPL Common Equity
		Additional		Cumulative
	Common	Paid-In	Retained	Preferred	Total
	Stock	Capital	Earnings	Stock	Equity
Three Months Ended September 30, 2021
Beginning balance, June 30, 2021	$33	$2,802	$944	$200	$3,979
Net income available for common stock			157		157
Common stock dividends			(101)		(101)

Ending balance, September 30, 2021	$33	$2,802	$1,000	$200	$4,035
Three Months Ended September 30, 2020
Beginning balance, June 30, 2020	$33	$2,523	$915	$200	$3,671
Net income available for common stock			148		148
Common stock dividends			(59)		(59)
Capital contributions from parent		170			170
Ending balance, September 30, 2020	$33	$2,693	$1,004	$200	$3,930



IPL	Total IPL Common Equity
		Additional		Cumulative
	Common	Paid-In	Retained	Preferred	Total
	Stock	Capital	Earnings	Stock	Equity
Nine Months Ended September 30, 2021
Beginning balance, December 31, 2020	$33	$2,752	$979	$200	$3,964
Net income available for common stock			322		322
Common stock dividends			(301)		(301)
Capital contributions from parent		50			50
Ending balance, September 30, 2021	$33	$2,802	$1,000	$200	$4,035
Nine Months Ended September 30, 2020
Beginning balance, December 31, 2019	$33	$2,348	$891	$200	$3,472
Net income available for common stock			290		290
Common stock dividends			(177)		(177)
Capital contributions from parent		345			345
Ending balance, September 30, 2020	$33	$2,693	$1,004	$200	$3,930


WPL		Additional		Total
	Common	Paid-In	Retained	Common
	Stock	Capital	Earnings	Equity
Three Months Ended September 30, 2021
Beginning balance, June 30, 2021	$66	$1,669	$990	$2,725
Net income			93	93
Common stock dividends			(41)	(41)
Capital contributions from parent		35		35
Ending balance, September 30, 2021	$66	$1,704	$1,042	$2,812
Three Months Ended September 30, 2020
Beginning balance, June 30, 2020	$66	$1,459	$927	$2,452
Net income			73	73
Common stock dividends			(43)	(43)

Ending balance, September 30, 2020	$66	$1,459	$957	$2,482


			15



WPL		Additional		Total
	Common	Paid-In	Retained	Common
	Stock	Capital	Earnings	Equity
Nine Months Ended September 30, 2021
Beginning balance, December 31, 2020	$66	$1,459	$953	$2,478
Net income			215	215
Common stock dividends			(126)	(126)
Capital contributions from parent		245		245
Ending balance, September 30, 2021	$66	$1,704	$1,042	$2,812
Nine Months Ended September 30, 2020
Beginning balance, December 31, 2019	$66	$1,434	$864	$2,364
Net income			220	220
Common stock dividends			(127)	(127)
Capital contributions from parent		25		25
Ending balance, September 30, 2020	$66	$1,459	$957	$2,482

NOTE 6. PREFERRED STOCK

In November 2021, IPL announced it will redeem all 8,000,000 outstanding shares of its 5.1% cumulative preferred stock in December 2021 at par value for approximately $200 million plus accrued and unpaid dividends up to the redemption date.

NOTE 7. DEBT

NOTE 7(a) Short-term Debt - In the third quarter of 2021, Alliant Energy, IPL and WPL reallocated credit facility capacity amounts to $500 million for Alliant Energy at the parent company level, $100 million for IPL and $400 million for WPL, within the $1 billion total commitment. Information regarding Alliant Energy’s, IPL’s and WPL’s commercial paper, and Alliant Energy’s and WPL’s borrowings under the single credit facility, which currently expires in August 2023, classified as short-term debt was as follows (dollars in millions):


September 30, 2021	Alliant Energy	IPL	WPL
Amount outstanding	$316	$—	$3
Weighted average interest rates	0.2%	N/A	0.1%
Available credit facility capacity	$684	$100	$397


	Alliant Energy		IPL		WPL
Three Months Ended September 30	2021	2020	2021	2020	2021	2020
Maximum amount outstanding (based on daily outstanding balances)	$648	$422	$8	$—	$320	$139
Average amount outstanding (based on daily outstanding balances)	$560	$252	$—	$—	$221	$83
Weighted average interest rates	0.2%	0.2%	0.2%	N/A	0.1%	0.2%
Nine Months Ended September 30
Maximum amount outstanding (based on daily outstanding balances)	$648	$463	$19	$8	$320	$212
Average amount outstanding (based on daily outstanding balances)	$479	$252	$—	$—	$196	$86
Weighted average interest rates	0.2%	1.1%	0.2%	0.5%	0.1%	1.2%

NOTE 7(b) Long-term Debt - In September 2021, WPL issued $300 million of 1.95% debentures due 2031. The debentures were issued as green bonds, and an amount equal to or in excess of the net proceeds will be disbursed for the construction and development of WPL’s wind and solar EGUs.


			16

NOTE 8. REVENUES

Disaggregation of revenues from contracts with customers, which correlates to revenues for each reportable segment, was as follows (in millions):


	Alliant Energy		IPL		WPL
Three Months Ended September 30	2021	2020	2021	2020	2021	2020
Electric Utility:
Retail - residential	$348	$328	$207	$189	$141	$139
Retail - commercial	232	210	160	142	72	68
Retail - industrial	265	241	158	149	107	92
Wholesale	55	47	18	17	37	30
Bulk power and other	39	26	12	22	27	4
Total Electric Utility	939	852	555	519	384	333
Gas Utility:
Retail - residential	24	22	14	12	10	10
Retail - commercial	13	10	8	6	5	4
Retail - industrial	3	2	3	1	—	1
Transportation/other	10	8	6	5	4	3
Total Gas Utility	50	42	31	24	19	18
Other Utility:
Steam	9	8	9	8	—	—
Other utility	4	2	4	2	—	—
Total Other Utility	13	10	13	10	—	—
Non-Utility and Other:
Travero and other	22	16	—	—	—	—

Total Non-Utility and Other	22	16	—	—	—	—
Total revenues	$1,024	$920	$599	$553	$403	$351



	Alliant Energy		IPL		WPL
Nine Months Ended September 30	2021	2020	2021	2020	2021	2020
Electric Utility:
Retail - residential	$868	$845	$488	$472	$380	$373
Retail - commercial	579	556	385	371	194	185
Retail - industrial	677	648	386	384	291	264
Wholesale	142	127	44	44	98	83
Bulk power and other	91	81	40	61	51	20
Total Electric Utility	2,357	2,257	1,343	1,332	1,014	925
Gas Utility:
Retail - residential	162	146	90	79	72	67
Retail - commercial	85	70	47	38	38	32
Retail - industrial	11	8	8	5	3	3
Transportation/other	31	29	20	19	11	10
Total Gas Utility	289	253	165	141	124	112
Other Utility:
Steam	27	27	27	27	—	—
Other utility	9	5	8	4	1	1
Total Other Utility	36	32	35	31	1	1
Non-Utility and Other:
Travero and other	60	57	—	—	—	—

Total Non-Utility and Other	60	57	—	—	—	—
Total revenues	$2,742	$2,599	$1,543	$1,504	$1,139	$1,038

NOTE 9. INCOME TAXES

Income Tax Rates - Overall effective income tax rates, which were computed by dividing income tax expense (benefit) by income before income taxes, were as follows. The effective income tax rates were different than the federal statutory rate primarily due to state income taxes, production tax credits, amortization of excess deferred taxes and the effect of rate-making on property-related differences. The decreases in Alliant Energy’s and WPL’s overall effective income tax rates for the three and nine months ended September 30, 2021 compared to the same periods in 2020 were primarily due to increased amortization of excess deferred taxes primarily at WPL, which were used to offset increases in WPL’s 2021 increased revenue requirements.


			17


	Alliant Energy				IPL				WPL
	Three Months		Nine Months		Three Months		Nine Months		Three Months		Nine Months
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Overall income tax rate	(9%)	(9%)	(13%)	(9%)	(8%)	(14%)	(11%)	(14%)	(19%)	(7%)	(24%)	(8%)

Deferred Tax Assets and Liabilities -

Carryforwards - At September 30, 2021, carryforwards and expiration dates were estimated as follows (in millions):


	Range of Expiration Dates	Alliant Energy	IPL	WPL
Federal net operating losses	2037	$170	$157	$1
State net operating losses	2021-2041	592	24	2
Federal tax credits	2022-2041	547	339	186

NOTE 10. BENEFIT PLANS

NOTE 10(a) Pension and OPEB Plans -

Net Periodic Benefit Costs - The components of net periodic benefit costs for sponsored defined benefit pension and OPEB plans for the three and nine months ended September 30 are included below (in millions). For IPL and WPL, amounts are for their plan participants covered under plans they sponsor, as well as amounts directly assigned to them related to certain participants in the Alliant Energy and Corporate Services sponsored plans.


	Defined Benefit Pension Plans				OPEB Plans
	Three Months		Nine Months		Three Months		Nine Months
Alliant Energy	2021	2020	2021	2020	2021	2020	2021	2020
Service cost	$2	$3	$8	$8	$1	$1	$3	$3
Interest cost	9	10	26	32	1	2	3	5
Expected return on plan assets	(17)	(17)	(51)	(52)	(1)	(1)	(3)	(4)
Amortization of prior service credit	(1)	—	(1)	—	—	—	—	—
Amortization of actuarial loss	10	9	29	26	1	—	3	2

Settlement losses (a)	—	—	—	4	—	—	—	—
	$3	$5	$11	$18	$2	$2	$6	$6


	Defined Benefit Pension Plans				OPEB Plans
	Three Months		Nine Months		Three Months		Nine Months
IPL	2021	2020	2021	2020	2021	2020	2021	2020
Service cost	$1	$2	$5	$5	$—	$—	$1	$1
Interest cost	4	5	12	15	1	1	2	2
Expected return on plan assets	(8)	(8)	(24)	(24)	(1)	(1)	(3)	(3)

Amortization of actuarial loss	5	4	13	11	—	—	1	1
	$2	$3	$6	$7	$—	$—	$1	$1


	Defined Benefit Pension Plans				OPEB Plans
	Three Months		Nine Months		Three Months		Nine Months
WPL	2021	2020	2021	2020	2021	2020	2021	2020
Service cost	$1	$1	$3	$3	$1	$—	$1	$1
Interest cost	3	5	11	14	—	1	1	2
Expected return on plan assets	(8)	(8)	(23)	(23)	—	(1)	—	(1)

Amortization of actuarial loss	5	4	14	12	1	1	2	2

	$1	$2	$5	$6	$2	$1	$4	$4

(a)Settlement losses related to payments made to retired executives of Alliant Energy.

NOTE 10(b) Equity-based Compensation Plans - A summary of compensation expense, including amounts allocated to IPL and WPL, and the related income tax benefits recognized for share-based compensation awards for the three and nine months ended September 30 was as follows (in millions):


	Alliant Energy				IPL				WPL
	Three Months		Nine Months		Three Months		Nine Months		Three Months		Nine Months
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Compensation expense	$4	$5	$9	$10	$2	$3	$5	$6	$2	$2	$4	$4
Income tax benefits	1	1	3	3	—	1	1	2	—	—	1	1


			18

As of September 30, 2021, Alliant Energy’s, IPL’s and WPL’s total unrecognized compensation cost related to share-based compensation awards was $7 million, $4 million and $3 million, respectively, which is expected to be recognized over a weighted average period of between 1 year and 2 years.

For the nine months ended September 30, 2021, performance shares, performance restricted stock units and restricted stock units were granted to key employees as follows. These shares and units will be paid out in shares of common stock, and are therefore accounted for as equity awards.


		Weighted Average
	Grants	Grant Date Fair Value
Performance shares	73,112	$46.19
Performance restricted stock units	73,112	48.66
Restricted stock units	80,152	48.65

As of September 30, 2021, 491,406 shares were included in the calculation of diluted EPS related to the nonvested equity awards.

NOTE 11. ASSET RETIREMENT OBLIGATIONS

A reconciliation of the changes in asset retirement obligations associated with long-lived assets for the nine months ended September 30, 2021 is as follows (in millions):


	Alliant Energy	IPL
Balance, January 1	$251	$177
Revisions in estimated cash flows	37	32
Liabilities settled	(10)	(8)
Liabilities incurred	1	—
Accretion expense	6	4
Balance, September 30	$285	$205

NOTE 12. DERIVATIVE INSTRUMENTS

Commodity Derivatives -

Notional Amounts - As of September 30, 2021, gross notional amounts and settlement/delivery years related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):


	FTRs		Natural Gas		Coal		Diesel Fuel
		MWhs	Years	Dths	Years	Tons	Years	Gallons	Years
Alliant Energy		13,265	2021-2022	189,332	2021-2030	4,280	2021-2023	3,654	2021-2022
IPL		4,014	2021-2022	103,859	2021-2030	1,807	2021-2023	—	—
WPL		9,251	2021-2022	85,473	2021-2030	2,473	2021-2023	3,654	2021-2022

Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheets as assets or liabilities as follows (in millions):


	Alliant Energy		IPL		WPL
	September 30, 2021	December 31, 2020	September 30, 2021	December 31, 2020	September 30, 2021	December 31, 2020
Current derivative assets	$158	$24	$72	$20	$86	$4
Non-current derivative assets	78	10	43	9	35	1
Current derivative liabilities	3	9	3	3	—	6
Non-current derivative liabilities	1	16	1	9	—	7

During the nine months ended September 30, 2021, Alliant Energy’s, IPL’s and WPL’s derivative assets increased and derivative liabilities decreased primarily as a result of higher natural gas prices. Based on IPL’s and WPL’s natural gas cost recovery mechanisms, this resulted in corresponding decreases in derivative regulatory assets and increases in derivative regulatory liabilities on the balance sheets.

Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided in the form of letters of credit or cash collateral up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. At September 30, 2021 and December 31, 2020, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position was not materially different than amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL


			19

or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered.

Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, amounts would not be materially different from gross amounts of derivative assets and derivative liabilities at September 30, 2021 and December 31, 2020. Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.

NOTE 13. FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and related estimated fair values of other financial instruments were as follows (in millions):


Alliant Energy	September 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$9	$9	$—	$—	$9	$44	$44	$—	$—	$44
Derivatives	236	—	207	29	236	34	—	5	29	34
Deferred proceeds	164	—	—	164	164	188	—	—	188	188
Liabilities:
Derivatives	4	—	4	—	4	25	—	25	—	25
Long-term debt (incl. current maturities)	7,075	—	8,083	1	8,084	6,777	—	8,107	2	8,109


IPL	September 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:
Money market fund investments	$9	$9	$—	$—	$9	$44	$44	$—	$—	$44
Derivatives	115	—	96	19	115	29	—	3	26	29
Deferred proceeds	164	—	—	164	164	188	—	—	188	188
Liabilities:
Derivatives	4	—	4	—	4	12	—	12	—	12
Long-term debt	3,347	—	3,849	—	3,849	3,345	—	4,021	—	4,021


WPL	September 30, 2021					December 31, 2020
		Fair Value					Fair Value
	Carrying	Level	Level	Level		Carrying	Level	Level	Level
	Amount	1	2	3	Total	Amount	1	2	3	Total
Assets:

Derivatives	$121	$—	$111	$10	$121	$5	$—	$2	$3	$5
Liabilities:
Derivatives	—	—	—	—	—	13	—	13	—	13
Long-term debt	2,429	—	2,869	—	2,869	2,130	—	2,690	—	2,690


			20

Information for Alliant Energy’s and IPL’s fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions). Such amounts for WPL were not material.


Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended September 30	2021	2020	2021	2020
Beginning balance, July 1	$39	$36	$154	$194
Total net gains included in changes in net assets (realized/unrealized)	5	—	—	—

Transfers out of Level 3	(8)	—	—	—

Sales	—	(1)	—	—
Settlements (a)	(7)	(5)	10	7
Ending balance, September 30	$29	$30	$164	$201
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at September 30	$5	($1)	$—	$—



Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Nine Months Ended September 30	2021	2020	2021	2020
Beginning balance, January 1	$29	$21	$188	$188
Total net gains included in changes in net assets (realized/unrealized)	6	8	—	—

Transfers out of Level 3	(8)	—	—	—
Purchases	21	14	—	—
Sales	—	(1)	—	—
Settlements (a)	(19)	(12)	(24)	13
Ending balance, September 30	$29	$30	$164	$201
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at September 30	$6	$8	$—	$—


IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Three Months Ended September 30	2021	2020	2021	2020
Beginning balance, July 1	$30	$32	$154	$194
Total net gains (losses) included in changes in net assets (realized/unrealized)	2	(1)	—	—

Transfers out of Level 3	(8)	—	—	—

Sales	—	(1)	—	—
Settlements (a)	(5)	(4)	10	7
Ending balance, September 30	$19	$26	$164	$201
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at September 30	$2	($1)	$—	$—



IPL	Commodity Contract Derivative
	Assets and (Liabilities), net		Deferred Proceeds
Nine Months Ended September 30	2021	2020	2021	2020
Beginning balance, January 1	$26	$18	$188	$188
Total net gains included in changes in net assets (realized/unrealized)	—	7	—	—

Transfers out of Level 3	(8)	—	—	—
Purchases	16	11	—	—
Sales	—	(1)	—	—
Settlements (a)	(15)	(9)	(24)	13
Ending balance, September 30	$19	$26	$164	$201
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at September 30	$—	$7	$—	$—

(a)Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for expected credit losses associated with the receivables sold and cash amounts received from the receivables sold.


			21

Commodity Contracts - The fair value of FTR and natural gas commodity contracts categorized as Level 3 was recognized as net derivative assets as follows (in millions):


	Alliant Energy		IPL		WPL
	Excluding FTRs	FTRs	Excluding FTRs	FTRs	Excluding FTRs	FTRs
September 30, 2021	$7	$22	$5	$14	$2	$8
December 31, 2020	18	11	17	9	1	2

NOTE 14. COMMITMENTS AND CONTINGENCIES

NOTE 14(a) Capital Purchase Commitments - Various contractual obligations contain minimum future commitments related to capital expenditures for certain construction projects, including WPL’s expansion of solar generation. At September 30, 2021, Alliant Energy’s and WPL’s minimum future commitments for these projects were $95 million and $93 million, respectively.

NOTE 14(b) Other Purchase Commitments - Various commodity supply, transportation and storage contracts help meet obligations to provide electricity and natural gas to utility customers. In addition, there are various purchase commitments associated with other goods and services. At September 30, 2021, related minimum future commitments were as follows (in millions):


	Alliant Energy	IPL	WPL

Natural gas	$985	$514	$471
Coal	82	54	28
Other (a)	134	71	39
	$1,201	$639	$538

(a)Includes individual commitments incurred during the normal course of business that exceeded $1 million at September 30, 2021.

NOTE 14(c) Guarantees and Indemnifications -

Whiting Petroleum - Whiting Petroleum is an independent oil and gas company. In 2004, Alliant Energy sold its remaining interest in Whiting Petroleum. Alliant Energy Resources, LLC, as the successor to a predecessor entity that owned Whiting Petroleum, and a wholly-owned subsidiary of AEF, continues to guarantee the partnership obligations of an affiliate of Whiting Petroleum under multiple general partnership agreements in the oil and gas industry. The guarantees do not include a maximum limit. Based on information made available to Alliant Energy by Whiting Petroleum, the Whiting Petroleum affiliate holds an approximate 6% share in the partnerships, and currently known obligations include costs associated with the future abandonment of certain facilities owned by the partnerships. The general partnerships were formed under California law, and Alliant Energy Resources, LLC may need to perform under the guarantees if the affiliate of Whiting Petroleum is unable to meet its partnership obligations.

As of September 30, 2021, the currently known partnership obligations for the abandonment obligations are estimated at $68 million, which represents Alliant Energy’s currently estimated maximum exposure under the guarantees. Alliant Energy estimates its expected loss to be a portion of the $68 million of known partnership abandonment obligations of the Whiting Petroleum affiliate and the other partners. Alliant Energy is not aware of any material liabilities related to these guarantees that it is probable that it will be obligated to pay; however, as of both September 30, 2021 and December 31, 2020, a liability of $5 million is recorded in “Other liabilities” on Alliant Energy’s balance sheets for expected credit losses related to the contingent obligations that are in the scope of these guarantees.

Non-utility Wind Farm in Oklahoma - In 2017, a wholly-owned subsidiary of AEF acquired a cash equity ownership interest in a non-utility wind farm located in Oklahoma. The wind farm provides electricity to a third party under a long-term PPA. Alliant Energy provided a parent guarantee of its subsidiary’s indemnification obligations under the related operating agreement and PPA. Alliant Energy’s obligations under the operating agreement were $67 million as of September 30, 2021 and will reduce annually until expiring in July 2047. Alliant Energy’s obligations under the PPA are subject to a maximum limit of $17 million and expire in December 2031, subject to potential extension. Alliant Energy is not aware of any material liabilities related to this guarantee that it is probable that it will be obligated to pay and therefore has not recognized any material liabilities related to this guarantee as of September 30, 2021 and December 31, 2020.

NOTE 14(d) Environmental Matters -

Manufactured Gas Plant (MGP) Sites - IPL and WPL have current or previous ownership interests in various sites that are previously associated with the production of gas for which IPL and WPL have, or may have in the future, liability for investigation, remediation and monitoring costs. IPL and WPL are working pursuant to the requirements of various federal and state agencies to investigate, mitigate, prevent and remediate, where necessary, the environmental impacts to property, including natural resources, at and around these former MGP sites in order to protect public health and the environment. At September 30, 2021, estimated future costs expected to be incurred for the investigation, remediation and monitoring of the MGP sites, as well as environmental liabilities recorded on the balance sheets for these sites, which are not discounted, were as follows (in millions). At September 30, 2021, such amounts for WPL were not material.


			22


	Alliant Energy			IPL
Range of estimated future costs	$9	-	$24	$6	-	$19
Current and non-current environmental liabilities	$12			$9

IPL Consent Decree - In 2015, the U.S. District Court for the Northern District of Iowa approved a Consent Decree that IPL entered into with the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, thereby resolving potential Clean Air Act issues associated with emissions from IPL’s coal-fired generating facilities in Iowa. IPL has completed various requirements under the Consent Decree. IPL’s remaining requirements include fuel switching or retiring Burlington by December 31, 2021 and Prairie Creek Units 1 and 3 by December 31, 2025. Alliant Energy and IPL currently expect to recover material costs incurred by IPL related to compliance with the terms of the Consent Decree from IPL’s electric customers.

Other Environmental Contingencies - In addition to the environmental liabilities discussed above, various environmental rules are monitored that may have a significant impact on future operations. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Given uncertainties regarding the outcome, timing and compliance plans for these environmental matters, the complete financial impact of each of these rules is not able to be determined; however, future capital investments and/or modifications to EGUs and electric and gas distribution systems to comply with certain of these rules could be significant. Specific current, proposed or potential environmental matters include, among others: Effluent Limitation Guidelines, Coal Combustion Residuals Rule, and various legislation and EPA regulations to monitor and regulate the emission of greenhouse gases, including the Clean Air Act.

NOTE 15. SEGMENTS OF BUSINESS

Certain financial information relating to Alliant Energy’s, IPL’s and WPL’s business segments is as follows. Intersegment revenues were not material to their respective operations.


Alliant Energy					ATC Holdings,	Alliant
	Utility				Non-Utility,	Energy
	Electric	Gas	Other	Total	Parent and Other	Consolidated
	(in millions)
Three Months Ended September 30, 2021
Revenues	$939	$50	$13	$1,002	$22	$1,024
Operating income (loss)	290	(5)	(5)	280	9	289



Net income attributable to Alliant Energy common shareowners				250	6	256
Three Months Ended September 30, 2020
Revenues	$852	$42	$10	$904	$16	$920
Operating income (loss)	251	(1)	1	251	21	272



Net income attributable to Alliant Energy common shareowners				221	25	246



Alliant Energy					ATC Holdings,	Alliant
	Utility				Non-Utility,	Energy
	Electric	Gas	Other	Total	Parent and Other	Consolidated
	(in millions)
Nine Months Ended September 30, 2021
Revenues	$2,357	$289	$36	$2,682	$60	$2,742
Operating income (loss)	601	42	(4)	639	24	663



Net income attributable to Alliant Energy common shareowners				537	34	571
Nine Months Ended September 30, 2020
Revenues	$2,257	$253	$32	$2,542	$57	$2,599
Operating income	549	48	5	602	26	628



Net income attributable to Alliant Energy common shareowners				510	40	550


			23


IPL	Electric	Gas	Other	Total
	(in millions)
Three Months Ended September 30, 2021
Revenues	$555	$31	$13	$599
Operating income (loss)	186	(3)	(3)	180
Net income available for common stock				157
Three Months Ended September 30, 2020
Revenues	$519	$24	$10	$553
Operating income	159	1	2	162
Net income available for common stock				148
Nine Months Ended September 30, 2021
Revenues	$1,343	$165	$35	$1,543
Operating income (loss)	365	30	(1)	394
Net income available for common stock				322
Nine Months Ended September 30, 2020
Revenues	$1,332	$141	$31	$1,504
Operating income	308	34	5	347
Net income available for common stock				290


WPL	Electric	Gas	Other	Total
	(in millions)
Three Months Ended September 30, 2021
Revenues	$384	$19	$—	$403
Operating income (loss)	104	(2)	(2)	100
Net income				93
Three Months Ended September 30, 2020
Revenues	$333	$18	$—	$351
Operating income (loss)	92	(2)	(1)	89
Net income				73
Nine Months Ended September 30, 2021
Revenues	$1,014	$124	$1	$1,139
Operating income (loss)	236	12	(3)	245
Net income				215
Nine Months Ended September 30, 2020
Revenues	$925	$112	$1	$1,038
Operating income	241	14	—	255
Net income				220

NOTE 16. RELATED PARTIES

Service Agreements - Pursuant to service agreements, IPL and WPL receive various administrative and general services from an affiliate, Corporate Services. These services are billed to IPL and WPL at cost based on expenses incurred by Corporate Services for the benefit of IPL and WPL, respectively. These costs consisted primarily of employee compensation and benefits, fees associated with various professional services, depreciation and amortization of property, plant and equipment, and a return on net assets. Corporate Services also acts as agent on behalf of IPL and WPL pursuant to the service agreements. As agent, Corporate Services enters into energy, capacity, ancillary services, and transmission sale and purchase transactions within MISO. Corporate Services assigns such sales and purchases among IPL and WPL based on statements received from MISO. The amounts billed for services provided, sales credited and purchases for the three and nine months ended September 30 were as follows (in millions):


	IPL				WPL
	Three Months		Nine Months		Three Months		Nine Months
	2021	2020	2021	2020	2021	2020	2021	2020
Corporate Services billings	$50	$53	$138	$134	$37	$41	$113	$108
Sales credited	4	10	9	35	16	—	23	4
Purchases billed	105	110	347	248	24	39	71	79

Net intercompany payables to Corporate Services were as follows (in millions):


	IPL		WPL
	September 30, 2021	December 31, 2020	September 30, 2021	December 31, 2020
Net payables to Corporate Services	$109	$110	$80	$73


			24

ATC - Pursuant to various agreements, WPL receives a range of transmission services from ATC. WPL provides operation, maintenance, and construction services to ATC. WPL and ATC also bill each other for use of shared facilities owned by each party. The related amounts billed between the parties for the three and nine months ended September 30 were as follows (in millions):


	Three Months		Nine Months
	2021	2020	2021	2020
ATC billings to WPL	$29	$27	$91	$80
WPL billings to ATC	4	2	13	8

WPL owed ATC net amounts of $8 million as of September 30, 2021 and $9 million as of December 31, 2020.

Previous: Cover and table of contents · Next: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS