Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This MDA includes information relating to Alliant Energy, and IPL and WPL (collectively, the Utilities), as well as ATC Holdings, AEF and Corporate Services. Where appropriate, information relating to a specific entity has been segregated and labeled as such. The following discussion and analysis should be read in conjunction with the Financial Statements and the Notes included in this report, as well as the financial statements, notes and MDA included in the 2020 Form 10-K. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.

2021 HIGHLIGHTS

Key highlights since the filing of the 2020 Form 10-K include the following:

Customer Investments (refer to “Customer Investments” for details):

• In March 2021, WPL filed its second Certificate of Authority with the PSCW for approval to acquire, construct, own, and operate up to 414 MW of new solar generation in various Wisconsin counties.

• In June 2021, WPL received an order from the PSCW for its first Certificate of Authority authorizing WPL to acquire, own and operate 675 MW of new solar generation in various Wisconsin counties.

• In November 2021, IPL filed for advance rate-making principles with the IUB for up to 400 MW of new solar generation and up to 75 MW of new battery storage.

Rate Matters:

• In May 2021, WPL filed a proposed settlement with the PSCW for annual base rate increases of $70 million and $15 million for WPL’s retail electric and gas customers, respectively, covering the 2022/2023 forward-looking Test Period, which was based on a stipulated agreement between WPL and certain intervenor groups. In November 2021, WPL filed updated information with the PSCW to reflect anticipated increases in retail fuel-related costs in 2022. As a result, annual rates for WPL’s retail electric customers are currently expected to increase by an additional $45 million in 2022, for a total of $115 million. The key drivers for the proposed annual base rate increases include lower excess deferred income tax benefits in 2022 and 2023 and revenue requirement impacts of increasing electric and gas rate base, including investments in solar generation. In addition, the settlement proposes WPL maintain its current authorized return on common equity of 10%, implement a 54% common equity component of regulatory capital structure, as well as receive a recovery of and a return on the remaining net book value of Edgewater Unit 5, which is currently expected to be retired by the end of 2022. WPL currently expects any rate changes granted from this request to be effective on January 1, 2022 and extend through the end of 2023.

• In June 2021, the IUB adopted new rules that establish minimum filing requirements for rate reviews using a forward-looking test period, and the related subsequent proceeding review after the close of the forward-looking test period. The rules provide that in the subsequent proceeding review, a utility’s actual costs and revenues shall be presumed to be reasonably consistent with the forward-looking test period if the utility’s actual return on common equity falls within a standard of reasonableness of 50 basis points above to 50 basis points below the authorized return on common equity. If the utility’s actual return on common equity is outside of this range, future rates could be adjusted.

• In August 2021, the IUB issued an order for IPL’s 2020 forward-looking Test Period gas subsequent proceeding, authorizing IPL to maintain its current retail gas rates.

• In November 2021, the IUB issued an order for IPL’s 2020 forward-looking Test Period electric subsequent proceeding, authorizing IPL to maintain its current retail electric rates.

Legislative Matters:

• In March 2021, the American Rescue Plan Act of 2021 (Act) was enacted. The most significant provision of the Act for Alliant Energy is reduced minimum pension plan funding requirements, which Alliant Energy adopted in August 2021. The Act also provides additional funding to the Low Income Home Energy Assistance Program, which assists certain of Alliant Energy’s customers with managing their energy costs, as well as provides financial support for certain of Alliant Energy’s residential, small business and non-profit customers.

• In April 2021, legislation was enacted in Iowa prohibiting counties and cities from regulating the sale of natural gas and propane, which supports IPL’s ability to provide gas utility service to a diversified base of retail customers and industries.

			25

Financings and Common Stock Dividends:

• 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.

• Refer to “Results of Operations” for discussion of expected issuances of common stock dividends and expected future issuances and retirements of long-term debt by the end of 2022.

RESULTS OF OPERATIONS

Results of operations include financial information prepared in accordance with GAAP as well as utility electric margins and utility gas margins, which are not measures of financial performance under GAAP. Utility electric margins are defined as electric revenues less electric production fuel, purchased power and electric transmission service expenses. Utility gas margins are defined as gas revenues less cost of gas sold. Utility electric margins and utility gas margins are non-GAAP financial measures because they exclude other utility and non-utility revenues, other operation and maintenance expenses, depreciation and amortization expenses, and taxes other than income tax expense.

Management believes that utility electric and gas margins provide a meaningful basis for evaluating and managing utility operations since electric production fuel, purchased power and electric transmission service expenses and cost of gas sold are generally passed through to customers, and therefore, result in changes to electric and gas revenues that are comparable to changes in such expenses. The presentation of utility electric and gas margins herein is intended to provide supplemental information for investors regarding operating performance. These utility electric and gas margins may not be comparable to how other entities define utility electric and gas margin. Furthermore, these measures are not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance.

Additionally, the table below includes EPS for Utilities and Corporate Services, ATC Holdings, and Non-utility and Parent, which are non-GAAP financial measures. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends, and provide additional information about Alliant Energy’s operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.

Financial Results Overview - Alliant Energy’s net income and EPS attributable to Alliant Energy common shareowners for the three months ended September 30 were as follows (dollars in millions, except per share amounts):

			2021												2020
			Income (Loss)						EPS						Income						EPS
Utilities and Corporate Services			$254						$1.01						$224						$0.89
ATC Holdings			8						0.03						8						0.03
Non-utility and Parent			(6)						(0.02)						14						0.06
Alliant Energy Consolidated			$256						$1.02						$246						$0.98

Alliant Energy’s Utilities and Corporate Services net income increased by $30 million for the three-month period, primarily due to higher earnings resulting from IPL’s and WPL’s increasing rate base, as well as higher sales due in part to the derecho windstorm in Iowa and COVID-19 sales impacts in the third quarter of 2020. These items were partially offset by higher depreciation expense and lower AFUDC.

Alliant Energy’s Non-utility and Parent net income decreased by $20 million for the three-month period, primarily due to an adjustment in 2020 to the credit loss liability related to legacy guarantees associated with an affiliate of Whiting Petroleum and timing of income taxes.

			26

For the three and nine months ended September 30, operating income and a reconciliation of utility electric and gas margins to the most directly comparable GAAP measure, operating income, was as follows (in millions):

			Alliant Energy												IPL												WPL
Three Months			2021						2020						2021						2020						2021						2020
Operating income			$289						$272						$180						$162						$100						$89
Electric utility revenues			$939						$852						$555						$519						$384						$333
Electric production fuel and purchased power expenses			(207)						(179)						(101)						(102)						(105)						(78)
Electric transmission service expense			(148)						(132)						(103)						(93)						(44)						(39)
Utility Electric Margin (non-GAAP)			584						541						351						324						235						216
Gas utility revenues			50						42						31						24						19						18
Cost of gas sold			(18)						(11)						(12)						(6)						(6)						(4)
Utility Gas Margin (non-GAAP)			32						31						19						18						13						14
Other utility revenues			13						10						13						10						—						—
Non-utility revenues			22						16						—						—						—						—
Other operation and maintenance expenses			(171)						(143)						(95)						(85)						(66)						(65)
Depreciation and amortization expenses			(165)						(156)						(94)						(89)						(70)						(65)
Taxes other than income tax expense			(26)						(27)						(14)						(16)						(12)						(11)
Operating income			$289						$272						$180						$162						$100						$89

			Alliant Energy												IPL												WPL
Nine Months			2021						2020						2021						2020						2021						2020
Operating income			$663						$628						$394						$347						$245						$255
Electric utility revenues			$2,357						$2,257						$1,343						$1,332						$1,014						$925
Electric production fuel and purchased power expenses			(478)						(527)						(215)						(304)						(263)						(223)
Electric transmission service expense			(403)						(326)						(274)						(212)						(128)						(114)
Utility Electric Margin (non-GAAP)			1,476						1,404						854						816						623						588
Gas utility revenues			289						253						165						141						124						112
Cost of gas sold			(149)						(117)						(84)						(63)						(65)						(53)
Utility Gas Margin (non-GAAP)			140						136						81						78						59						59
Other utility revenues			36						32						35						31						1						1
Non-utility revenues			60						57						—						—						—						—
Other operation and maintenance expenses			(477)						(465)						(253)						(269)						(194)						(172)
Depreciation and amortization expenses			(494)						(454)						(281)						(264)						(209)						(186)
Taxes other than income tax expense			(78)						(82)						(42)						(45)						(35)						(35)
Operating income			$663						$628						$394						$347						$245						$255

Operating Income Variances - Variances between periods in operating income for the three and nine months ended September 30, 2021 compared to the same periods in 2020 were as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Total higher utility electric margin variance (Refer to details below)			$43						$27						$19						$72						$38						$35
Total higher (lower) utility gas margin variance (Refer to details below)			1						1						(1)						4						3						—
Total (higher) lower other operation and maintenance expenses variance (Refer to details below)			(28)						(10)						(1)						(12)						16						(22)
Higher depreciation and amortization expense primarily due to additional plant in service in 2020 and 2021, including IPL’s new wind generation, and WPL’s West Riverside Energy Center and Kossuth wind farm			(9)						(5)						(5)						(40)						(17)						(23)
Other			10						5						(1)						11						7						—
			$17						$18						$11						$35						$47						($10)

			27

Electric and Gas Revenues and Sales Summary - Electric and gas revenues (in millions), and MWh and Dth sales (in thousands), for the three and nine months ended September 30 were as follows:

Alliant Energy			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2021						2020						2021						2020						2021						2020						2021						2020
Three Months
Retail			$845						$779						7,031						6,762						$40						$34						3,264						3,500
Sales for resale			78						54						1,853						1,453						N/A						N/A						N/A						N/A
Transportation/Other			16						19						18						17						10						8						26,365						24,842
			$939						$852						8,902						8,232						$50						$42						29,629						28,342
Nine Months
Retail			$2,124						$2,049						19,262						18,496						$258						$224						33,299						32,545
Sales for resale			181						162						4,411						4,962						N/A						N/A						N/A						N/A
Transportation/Other			52						46						53						53						31						29						74,111						79,546
			$2,357						$2,257						23,726						23,511						$289						$253						107,410						112,091

IPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2021						2020						2021						2020						2021						2020						2021						2020
Three Months
Retail			$525						$480						3,914						3,743						$25						$19						1,702						1,873
Sales for resale			21						25						487						765						N/A						N/A						N/A						N/A
Transportation/Other			9						14						9						9						6						5						9,308						9,020
			$555						$519						4,410						4,517						$31						$24						11,010						10,893
Nine Months
Retail			$1,259						$1,227						10,810						10,414						$145						$122						17,268						16,950
Sales for resale			49						75						1,160						3,090						N/A						N/A						N/A						N/A
Transportation/Other			35						30						26						27						20						19						29,727						29,127
			$1,343						$1,332						11,996						13,531						$165						$141						46,995						46,077

WPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2021						2020						2021						2020						2021						2020						2021						2020
Three Months
Retail			$320						$299						3,117						3,019						$15						$15						1,562						1,627
Sales for resale			57						29						1,366						688						N/A						N/A						N/A						N/A
Transportation/Other			7						5						9						8						4						3						17,057						15,822
			$384						$333						4,492						3,715						$19						$18						18,619						17,449
Nine Months
Retail			$865						$822						8,452						8,082						$113						$102						16,031						15,595
Sales for resale			132						87						3,251						1,872						N/A						N/A						N/A						N/A
Transportation/Other			17						16						27						26						11						10						44,384						50,419
			$1,014						$925						11,730						9,980						$124						$112						60,415						66,014

Sales Trends and Temperatures - Alliant Energy’s retail electric and gas sales volumes increased 4% and decreased 7%, respectively, for the three months ended September 30, 2021 compared to the same period in 2020, primarily due to COVID-19 impacts in Alliant Energy’s service territories, impacts from the derecho windstorm in IPL’s service territory in August 2020 and changes in temperatures. Alliant Energy’s retail electric and gas sales volumes increased 4% and 2%, respectively, for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to changes in temperatures, COVID-19 impacts in Alliant Energy’s service territories and impacts from the derecho windstorm in IPL’s service territory in August 2020, partially offset by the impact on sales of the additional day due to leap year in 2020. For the three and nine months ended September 30, 2021, changes in COVID-19 impacts resulted in decreases for retail electric residential sales volumes and increases for retail electric commercial and industrial sales.

			28

Estimated increases (decreases) to electric and gas margins from the impacts of temperatures for the three and nine months ended September 30 were as follows (in millions):

			Electric Margins																																				Gas Margins
			Three Months																		Nine Months																		Three Months																		Nine Months
			2021						2020						Change						2021						2020						Change						2021						2020						Change						2021						2020						Change
IPL			$5						$3						$2						$16						$2						$14						($1)						$—						($1)						$1						$—						$1
WPL			—						3						(3)						9						3						6						—						—						—						—						(1)						1
Total Alliant Energy			$5						$6						($1)						$25						$5						$20						($1)						$—						($1)						$1						($1)						$2

Electric Sales for Resale - Electric sales for resale volume changes were largely due to changes in sales in the wholesale energy markets operated by MISO. These changes are impacted by several factors, including the availability and dispatch of Alliant Energy’s EGUs and electricity demand within these wholesale energy markets. Changes in sales for resale revenues were largely offset by changes in fuel-related costs, and therefore, did not have a significant impact on electric margins.

Gas Transportation/Other - Gas transportation/other sales volume changes were largely due to changes in the gas volumes supplied to Alliant Energy’s natural gas-fired EGUs caused by the availability and dispatch of such EGUs. Changes in these transportation/other revenues did not have a significant impact on gas margins.

Utility Electric Margin Variances - The following items contributed to increased utility electric margins for the three and nine months ended September 30, 2021 compared to the same periods in 2020 as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Higher revenue requirements due to increasing rate base (a) (b)			$12						$9						$3						$38						$28						$10
Estimated changes in sales volumes caused by temperatures			(1)						2						(3)						20						14						6
Higher wholesale margins at WPL partially due to a new wholesale customer in 2021			2						—						2						4						—						4
Lower revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (mostly offset by changes in energy efficiency expense)			(3)						(3)						—						(11)						(11)						—
Higher (lower) revenues at IPL due to changes in credits on customers’ bills related to excess deferred income tax benefits amortization through the tax benefit rider (offset by changes in income tax)			8						8						—						(4)						(4)						—
(Higher) lower WPL electric fuel-related costs, net of recoveries			5						—						5						(2)						—						(2)
Other (includes higher temperature-normalized sales primarily due to derecho windstorm in 2020 and COVID-19 impacts)			20						11						12						27						11						17
			$43						$27						$19						$72						$38						$35

(a)IPL’s final retail electric base rate increase was effective February 26, 2020. Effective with final rates, the recovery of, and return on, IPL’s new wind generation placed in service in 2019 and 2020 is provided through the renewable energy rider. The final rate increase includes a reduction for anticipated production tax credits for IPL’s new wind generation. This reduction is expected to be offset by a reduction in income tax expense resulting from production tax credits recognized from this new wind generation. In September 2020, IPL made a buyout payment of $110 million in exchange for shortening the terms of its DAEC PPA by 5 years. The higher revenue requirements from the buyout payment, including a return on such costs, is being recovered from IPL’s retail customers from 2021 through the end of 2025.

(b)In December 2020, the PSCW issued an order authorizing WPL to maintain its current retail electric base rates through the end of 2021. WPL will utilize anticipated fuel-related cost savings and excess deferred income tax benefits in 2021 to offset the revenue requirement impacts of increasing electric rate base, including the Kossuth wind farm, which was placed in service in October 2020. The lower fuel expense benefits are recognized in electric margin and the additional amount of excess deferred income tax benefits is recognized as a reduction in income tax expense.

Utility Gas Margin Variances - The following items contributed to increased (decreased) utility gas margins for the three and nine months ended September 30, 2021 compared to the same periods in 2020 as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Estimated changes in sales volumes caused by temperatures			($1)						($1)						$—						$2						$1						$1
Other			2						2						(1)						2						2						(1)
			$1						$1						($1)						$4						$3						$—

			29

Other Operation and Maintenance Expenses Variances - The following items contributed to (increased) decreased other operation and maintenance expenses for the three and nine months ended September 30, 2021 compared to the same periods in 2020 as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Higher generation operation and maintenance expenses			($10)						($8)						($2)						($21)						($12)						($9)
Credit loss adjustments in 2020 related to guarantees for an affiliate of Whiting Petroleum			(15)						—						—						(7)						—						—
Lower energy efficiency expense at IPL (primarily offset by lower revenues)			2						2						—						10						10						—
(Higher) lower bad debt expense at IPL			(2)						(2)						—						8						8						—
Other			(3)						(2)						1						(2)						10						(13)
			($28)						($10)						($1)						($12)						$16						($22)

Other Income and Deductions Variances - The following items contributed to increased other income and deductions for the three and nine months ended September 30, 2021 compared to the same periods in 2020 as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Lower interest expense			$—						$1						$1						$1						$1						$1
Lower AFUDC primarily due to changes in construction work in progress balances related to IPL’s new wind generation, and WPL’s West Riverside Energy Center and Kossuth wind farm placed in service in 2020			(6)						(4)						(1)						(35)						(14)						(20)
Other			(2)						1						(1)						1						1						—
			($8)						($2)						($1)						($33)						($12)						($19)

Income Taxes - Refer to Note 9 for details of effective income tax rates.

Other Future Considerations - In addition to items discussed in this report, the following key items could impact Alliant Energy’s, IPL’s and WPL’s future financial condition or results of operations:

• Financing Plans - In the fourth quarter of 2021, IPL currently expects to issue up to $300 million of long-term debt and redeem all of its cumulative preferred stock at par value for approximately $200 million plus accrued and unpaid dividends up to the redemption date. WPL and AEF currently expect to issue up to $300 million and $800 million of long-term debt, respectively, in 2022. WPL, AEF and Corporate Services have $250 million, $300 million and $75 million of long-term debt maturing in 2022, respectively. Alliant Energy currently expects to issue approximately $25 million of common stock in 2022 through its Shareowner Direct Plan.

• Common Stock Dividends -** Alliant Energy announced a 6% increase in its targeted 2022 annual common stock dividend to $1.71 per share, which is equivalent to a quarterly rate of $0.4275 per share, beginning with the February 2022 dividend payment. The timing and amount of future dividends is subject to an approved dividend declaration from Alliant Energy’s Board of Directors, and is dependent upon earnings expectations, capital requirements, and general financial business conditions, among other factors.

• Higher Earnings on Increasing Rate Base -** Alliant Energy and WPL currently expect an increase in earnings in 2022 compared to 2021 due to impacts from increasing revenue requirements related to investments in the utility business, including WPL’s solar investments. WPL’s increased revenue requirements are expected to be offset by higher income tax expense as a result of lower tax benefits.

• Other Operation and Maintenance Expenses - Alliant Energy, IPL and WPL currently expect a decrease in other operation and maintenance expenses in 2022 compared to 2021 due to cost reductions resulting from operating efficiencies.

• Depreciation and Amortization Expenses - Alliant Energy, IPL and WPL currently expect an increase in depreciation and amortization expenses in 2022 compared to 2021 due to property additions, including WPL’s expansion of solar generation.

• Interest Expense -** Alliant Energy, IPL and WPL currently expect an increase in interest expense in 2022 compared to 2021 due to financings completed in 2021 and planned in 2021 and 2022 as discussed above.

• Allowance for Funds Used During Construction -** Alliant Energy and WPL currently expect AFUDC to increase in 2022 compared to 2021 primarily due to increased construction work in progress balances related to WPL’s solar generation.

			30

CUSTOMER INVESTMENTS

Renewable Generation

Alliant Energy’s cleaner energy strategy, or Clean Energy Blueprints, currently includes the planned development and acquisition of additional renewable energy, including approximately 1,100 MW of solar generation at WPL with in-service dates in 2022-2024, approximately 400 MW of solar generation at IPL with in-service dates in 2023-2024 and approximately 75 MW of battery storage in 2024 at IPL. Alliant Energy, IPL and WPL continue to evaluate additional opportunities to add more renewable generation, including wind repowering, and additional solar generation and distributed energy resources, including community solar and energy storage systems. Estimated capital expenditures for these projects for 2021 through 2025 are included in the “Renewable projects” line in the construction and acquisition table in “Liquidity and Capital Resources.” These estimates include current expectations for higher costs for various projects, as supply constraints and commodity inflation continue to be prevalent in the solar market. In addition, these estimates reflect later expected in-service dates for certain solar projects to reflect the tight market for solar panels. IPL and WPL currently assume that a portion of the construction costs for the new solar generation will be financed by a tax equity partner, which is discussed in “IPL and WPL Solar Project Tax Equity Credits” in “Liquidity and Capital Resources.”

WPL’s Solar Generation and Distributed Energy Resources - In June 2021, WPL received an order from the PSCW for its first Certificate of Authority authorizing WPL to acquire, own and operate 675 MW of new solar generation in the following Wisconsin counties: Grant (200 MW), Sheboygan (150 MW), Wood (150 MW), Jefferson (75 MW), Richland (50 MW) and Rock (50 MW). In July 2021, WPL notified the PSCW that it currently expects estimated construction costs and related rate base additions associated with its 675 MW of new solar generation will exceed amounts approved by the PSCW in June 2021 by approximately 7-10%. In September 2021, WPL filed revised estimated construction costs and related rate base additions for its second Certificate of Authority with the PSCW for approval to acquire, construct, own, and operate up to 414 MW of new solar generation in the following Wisconsin counties: Dodge (150 MW), Waushara (99 MW), Rock (65 MW), Grant (50 MW) and Green (50 MW). These projects are expected to be placed in-service in 2022-2024. The 1,089 MW of new solar generation would replace energy and capacity being eliminated with the planned retirement of the coal-fired Edgewater Generating Station (414 MW) by the end of 2022, and Columbia Unit 1 by the end of 2023 and Columbia Unit 2 by the end of 2024 (595 MW in aggregate), which are the last coal-fired EGUs at WPL. The retirement of these coal-fired EGUs supports Alliant Energy’s strategy, which is focused on meeting its customers’ energy needs in an economical, efficient and sustainable manner. As a result of WPL’s neighboring utilities anticipated exercise of their options to purchase a partial ownership interest in West Riverside, WPL anticipates additional capacity needs by 2024, which may include additional solar generation and distributed energy resources such as community solar and energy storage systems.

IPL’s Solar Generation and Distributed Energy Resources - In November 2021, IPL filed for advance rate-making principles with the IUB for up to 400 MW of solar generation with in-service dates in 2023 and 2024 and approximately 75 MW of battery storage in 2024. The advance rate-making principles filing included requests for a fixed cost cap of $1,575/kilowatt, including AFUDC and transmission upgrade costs among other costs, and a return on common equity of 11.40%, and proposes that a portion of the construction be financed by tax equity partners. In addition, the filing included a request that any costs incurred in excess of the cost cap be incorporated into rates if determined to be reasonable and prudent. The 400 MW of new solar generation and 75 MW of battery storage would help replace a portion of the energy and capacity expected to be eliminated with the planned retirement of the coal-fired Lansing Generating Station (275 MW) by the end of 2022 and the expected reduction of energy and capacity resulting from the planned fuel switch of the Burlington Generating Station (212 MW) from coal to natural gas by the end of 2021. In addition, IPL’s plans include additional distributed energy resources, including community solar and energy storage systems, to add energy and capacity.

LIQUIDITY AND CAPITAL RESOURCES

The liquidity and capital resources summary included in the 2020 Form 10-K has not changed materially, except as described below.

Liquidity Position - At September 30, 2021, Alliant Energy had $20 million of cash and cash equivalents, $684 million ($187 million at the parent company, $100 million at IPL and $397 million at WPL) of available capacity under the single revolving credit facility and $60 million of available capacity at IPL under its sales of accounts receivable program.

			31

Capital Structure - Capital structures at September 30, 2021 were as follows (Long-term Debt (including current maturities) (LD); Short-term Debt (SD); Common Equity (CE); IPL’s Preferred Stock (PS)):

Cash Flows - Selected information from the cash flows statements was as follows (in millions):

			Alliant Energy												IPL												WPL
			2021						2020						2021						2020						2021						2020
Cash, cash equivalents and restricted cash, January 1			$56						$18						$50						$9						$3						$4
Cash flows from (used for):
Operating activities			477						436						95						19						349						402
Investing activities			(452)						(679)						122						(202)						(510)						(465)
Financing activities			(57)						419						(254)						359						162						61
Net increase (decrease)			(32)						176						(37)						176						1						(2)
Cash, cash equivalents and restricted cash, September 30			$24						$194						$13						$185						$4						$2

Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for the nine months ended September 30, 2021 compared to the same period in 2020 (in millions):

			Alliant Energy						IPL						WPL
DAEC PPA amendment buyout payment in 2020			$110						$110						$—
Credits issued to IPL’s retail electric customers in 2020 through its transmission cost rider for amounts previously collected in rates			42						42						—
Increased collections from IPL’s and WPL’s retail customers caused by temperature impacts on electric and gas sales			22						15						7
Changes in the sales of accounts receivable at IPL			(68)						(68)						—
Refunds received in 2020 related to the MISO transmission owner return on equity complaint FERC orders			(20)						(15)						(5)
Higher natural gas cost payments primarily from extreme temperatures in February 2021 resulting in under-recovered natural gas costs at IPL (Refer to Note 2)			(15)						(15)						—
Credits issued to IPL’s retail electric customers in 2021 through its transmission cost rider for refunds received in 2020 for the MISO transmission owner return on equity complaints			(14)						(14)						—
Changes in income taxes paid/refunded			(7)						40						(29)
Other (primarily due to other changes in working capital)			(9)						(19)						(26)
			$41						$76						($53)

Investing Activities - The following items contributed to increased (decreased) investing activity cash flows for the nine months ended September 30, 2021 compared to the same period in 2020 (in millions):

			Alliant Energy						IPL						WPL
(Higher) lower utility construction and acquisition expenditures (a)			$163						$180						($17)
Changes in the amount of cash receipts on sold receivables			105						105						—
Refund from ATC in 2020 for construction deposits WPL previously provided to ATC for transmission network upgrades for West Riverside			(42)						—						(42)
Other			1						39						14
			$227						$324						($45)

(a)Largely due to lower expenditures for IPL’s and WPL’s expansion of wind generation, IPL’s and WPL’s electric and gas distribution systems and WPL’s West Riverside Energy Center, partially offset by higher expenditures for WPL’s solar generation.

			32

Construction and Acquisition Expenditures - Construction and acquisition expenditures and financing plans are reviewed, approved and updated as part of the strategic planning process. Changes may result from a number of reasons, including regulatory requirements, changing legislation, not obtaining favorable and acceptable regulatory approval on certain projects, improvements in technology and improvements to ensure reliability of the electric and gas distribution systems. Construction and acquisition expenditures for 2021 through 2025 are currently anticipated as follows (in millions), and are focused on the transition to cleaner energy and strengthening the resiliency of Alliant Energy’s, IPL’s and WPL’s electric grid. Cost estimates represent Alliant Energy’s, IPL’s and WPL’s portion of construction expenditures and exclude AFUDC and capitalized interest, if applicable. Such estimates do not reflect the assumption that a portion of the construction is expected to be financed by tax equity partners, as discussed below in “IPL and WPL Solar Project Tax Equity Credits.” Refer to "Customer Investments" for further discussion of certain key projects impacting construction and acquisition plans related to the utility business.

			Alliant Energy																		IPL																		WPL
			2021			2022			2023			2024			2025						2021			2022			2023			2024			2025						2021			2022			2023			2024			2025
Generation:
Renewable projects			$385			$550			$520			$1,270			$675						$20			$80			$200			$510			$340						$365			$470			$320			$760			$335
Other			90			105			185			190			90						55			65			150			140			45						35			40			35			50			45
Distribution:
Electric systems			490			445			560			605			625						265			210			300			340			350						225			235			260			265			275
Gas systems			70			70			80			70			75						35			35			40			35			35						35			35			40			35			40
Other			165			185			185			185			205						25			30			30			35			40						20			25			25			35			30
			$1,200			$1,355			$1,530			$2,320			$1,670						$400			$420			$720			$1,060			$810						$680			$805			$680			$1,145			$725

Financing Activities - The following items contributed to increased (decreased) financing activity cash flows for the nine months ended September 30, 2021 compared to the same period in 2020 (in millions):

			Alliant Energy						IPL						WPL
Lower net proceeds from issuance of long-term debt			($750)						($400)						($50)
Lower net proceeds from common stock issuances			(219)						—						—
Net changes in the amount of commercial paper outstanding			(158)						—						(225)
(Higher) lower common stock dividends			(23)						(124)						1
Lower payments to retire long-term debt			650						200						150
Higher (lower) capital contributions from IPL’s and WPL’s parent company, Alliant Energy			—						(295)						220
Other			24						6						5
			($476)						($613)						$101

IPL and WPL Solar Project Tax Equity Credits - IPL and WPL each propose to own and operate their planned solar projects discussed in “Customer Investments,” which are currently expected to qualify for 26% to 30% investment tax credits, through a tax equity partnership, with approximately 25% to 45% of the construction costs financed with capital from the tax equity partner. Assuming a portion of the construction costs are financed by the tax equity partner, IPL would receive approximately $25 million in 2023 and $260 million in 2024 from the tax equity partner, and WPL would receive approximately $190 million in 2022, $100 million in 2023, $320 million in 2024 and $170 million in 2025 from the tax equity partner. IPL and WPL would expect to include their portion of capital expenditures, less the amounts financed by the tax equity partner, in their respective rate base.

Common Stock Issuances and Common Stock Dividends - Refer to Note 5 for discussion of common stock issuances by Alliant Energy in 2021. Refer to “Results of Operations” for discussion of expected common stock dividends in 2022.

Short- and Long-term Debt - Refer to Note 7(a) for discussion of changes to Alliant Energy's, IPL's and WPL's credit facility capacity amounts in the third quarter of 2021. Refer to Note 7(b) for discussion of WPL’s issuance of long-term debt in 2021. Refer to “Results of Operations” for discussion of expected future issuances and retirements of long-term debt by the end of 2022.

Off-Balance Sheet Arrangements and Certain Financial Commitments - A summary of Alliant Energy’s and IPL’s off-balance sheet arrangements and Alliant Energy’s, IPL’s and WPL’s contractual obligations is included in the 2020 Form 10-K and has not changed materially from the items reported in the 2020 Form 10-K, except for the items described in Notes 3, 7 and 14.

			33

OTHER MATTERS

Critical Accounting Policies and Estimates - The summary of critical accounting policies and estimates included in the 2020 Form 10-K has not changed materially, except as described below.

Long-Lived Assets -

Regulated Operations -

Generating Units Subject to Early Retirement - Refer to Note 1(b) for discussion of the anticipated retirement of Columbia Unit 1 by the end of 2023 and Columbia Unit 2 by the end of 2024, and Alliant Energy’s and WPL’s conclusion that these EGUs met the criteria to be considered probable of abandonment and no disallowance was required as of September 30, 2021.