Alliant Energy 10-Q 2022-06-30

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Name of Registrant, State of Incorporation, Address of Principal Executive Offices, Telephone Number, Commission File Number, IRS Employer Identification Number

ALLIANT ENERGY CORPORATION

(a Wisconsin Corporation)

4902 N. Biltmore Lane

Madison, Wisconsin 53718

Telephone (608) 458-3311

Commission File Number - 1-9894

IRS Employer Identification Number - 39-1380265

INTERSTATE POWER & LIGHT COMPANY

(an Iowa corporation)

Alliant Energy Tower

Cedar Rapids, Iowa 52401

Telephone (319) 786-4411

Commission File Number - 1-4117

IRS Employer Identification Number - 42-0331370

WISCONSIN POWER & LIGHT COMPANY

(a Wisconsin corporation)

4902 N. Biltmore Lane

Madison, Wisconsin 53718

Telephone (608) 458-3311

Commission File Number - 0-337

IRS Employer Identification Number - 39-0714890

This combined Form 10-Q is separately filed by Alliant Energy Corporation, Interstate Power and Light Company and Wisconsin Power and Light Company. Information contained in the Form 10-Q relating to Interstate Power and Light Company and Wisconsin Power and Light Company is filed by each such registrant on its own behalf. Each of Interstate Power and Light Company and Wisconsin Power and Light Company makes no representation as to information relating to registrants other than itself.

Securities registered pursuant to Section 12(b) of the Act:

Alliant Energy Corporation, Common Stock, $0.01 Par Value, Trading Symbol LNT, Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Alliant Energy Corporation - Yes ☒ No ☐

Interstate Power and Light Company - Yes ☒ No ☐

Wisconsin Power and Light Company - Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Alliant Energy Corporation - Yes ☒ No ☐

Interstate Power and Light Company - Yes ☒ No ☐

Wisconsin Power and Light Company - Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Alliant Energy Corporation - Large Accelerated Filer ☒ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

Interstate Power and Light Company - Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☒ Smaller Reporting Company ☐ Emerging Growth Company ☐

Wisconsin Power and Light Company - Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☒ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Alliant Energy Corporation ☐

Interstate Power and Light Company ☐

Wisconsin Power and Light Company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Alliant Energy Corporation - Yes ☐ No ☒

Interstate Power and Light Company - Yes ☐ No ☒

Wisconsin Power and Light Company - Yes ☐ No ☒

Number of shares outstanding of each class of common stock as of June 30, 2022:

Alliant Energy Corporation, Common Stock, $0.01 par value, 250,926,232 shares outstanding

Interstate Power and Light Company, Common Stock, $2.50 par value, 13,370,788 shares outstanding (all outstanding shares are owned beneficially and of record by Alliant Energy Corporation)

Wisconsin Power and Light Company, Common Stock, $5 par value, 13,236,601 shares outstanding (all outstanding shares are owned beneficially and of record by Alliant Energy Corporation)

Table of Contents

TABLE OF CONTENTS

			Page
Definitions			1
Forward-looking Statements			1
Part I. Financial Information			3
Item 1. Condensed Consolidated Financial Statements (Unaudited)			3
Alliant Energy Corporation			3
Interstate Power and Light Company			6
Wisconsin Power and Light Company			9
Combined Notes to Condensed Consolidated Financial Statements			12
1. Summary of Significant Accounting Policies			12
2. Regulatory Matters			13
3. Property, Plant and Equipment			13
4. Receivables			14
5. Investments			14
6. Common Equity			14
7. Debt			17
8. Revenues			18
9. Income Taxes			18
10. Benefit Plans			19
11. Derivative Instruments			20
12. Fair Value Measurements			21
13. Commitments and Contingencies			23
14. Segments of Business			24
15. Related Parties			26
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			33
Item 4. Controls and Procedures			33
Part II. Other Information			33
Item 1. Legal Proceedings			33
Item 1A. Risk Factors			33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			33
Item 6. Exhibits			34
Signatures			34

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DEFINITIONS

The following abbreviations or acronyms used in this report are defined below:

Abbreviation or Acronym			Definition			Abbreviation or Acronym			Definition
2021 Form 10-K			Combined Annual Report on Form 10-K filed by Alliant Energy, IPL and WPL for the year ended Dec. 31, 2021			IPL			Interstate Power and Light Company
AEF			Alliant Energy Finance, LLC			IUB			Iowa Utilities Board
AFUDC			Allowance for funds used during construction			MDA			Management’s Discussion and Analysis of Financial Condition and Results of Operations
Alliant Energy			Alliant Energy Corporation			MISO			Midcontinent Independent System Operator, Inc.
ATC			American Transmission Company LLC			MW			Megawatt
ATC Holdings			Interest in American Transmission Company LLC and ATC Holdco LLC			MWh			Megawatt-hour
Corporate Services			Alliant Energy Corporate Services, Inc.			N/A			Not applicable
DAEC			Duane Arnold Energy Center			Note(s)			Combined Notes to Condensed Consolidated Financial Statements
Dth			Dekatherm			OPEB			Other postretirement benefits
EGU			Electric generating unit			PPA			Purchased power agreement
EPA			U.S. Environmental Protection Agency			PSCW			Public Service Commission of Wisconsin
EPS			Earnings per weighted average common share			SEC			Securities and Exchange Commission
FERC			Federal Energy Regulatory Commission			U.S.			United States of America
Financial Statements			Condensed Consolidated Financial Statements			West Riverside			West Riverside Energy Center
FTR			Financial transmission right			Whiting Petroleum			Whiting Petroleum Corporation
GAAP			U.S. generally accepted accounting principles			WPL			Wisconsin Power and Light Company

FORWARD-LOOKING STATEMENTS

Statements contained in this report that are not of historical fact are forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified as such because the statements include words such as “may,” “believe,” “expect,” “anticipate,” “plan,” “project,” “will,” “projections,” “estimate,” or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Some, but not all, of the risks and uncertainties of Alliant Energy, IPL and WPL that could materially affect actual results include:

• the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns;

• the direct or indirect effects resulting from terrorist incidents, including physical attacks and cyber attacks, or responses to such incidents;

• the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity;

• the impact of energy efficiency, franchise retention and customer disconnects on sales volumes and margins;

• the impact that price changes may have on IPL’s and WPL’s customers’ demand for electric, gas and steam services and their ability to pay their bills;

• IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of and/or the return on costs, including fuel costs, operating costs, transmission costs, deferred expenditures, deferred tax assets, tax expense, capital expenditures, and remaining costs related to EGUs that may be permanently closed and certain other retired assets, decreases in sales volumes, earning their authorized rates of return, and the payments to their parent of expected levels of dividends;

• federal and state regulatory or governmental actions, including the impact of legislation, and regulatory agency orders;

• the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire;

• the impacts of changes in the tax code, including tax rates, minimum tax rates, and adjustments made to deferred tax assets and liabilities;

• the ability to complete construction of renewable generation and storage projects by planned in-service dates and within the cost targets set by regulators due to cost increases of and access to materials, equipment and commodities including due to tariffs, duties or other assessments, such as any additional tariffs resulting from U.S. Department of Commerce investigations into the sourcing of solar project materials and equipment from certain countries, labor issues or supply shortages, the ability to successfully resolve warranty issues or contract disputes, the ability to achieve the expected level of tax benefits based on tax guidelines and project costs, and the ability to efficiently utilize the renewable generation and storage project tax benefits for the benefit of customers;

• employee workforce factors, including changes in key executives, ability to hire and retain employees with specialized skills, ability to create desired corporate culture, collective bargaining agreements and negotiations, work stoppages or restructurings;

• inflation and higher interest rates;

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• changes in the price of delivered natural gas, transmission, purchased electricity and coal, particularly during elevated market prices, and any resulting changes to counterparty credit risk, due to shifts in supply and demand caused by market conditions, regulations and MISO’s annual resource adequacy process;

• changes to the creditworthiness of, or performance of obligations by, counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters;

• any material post-closing payments related to any past asset divestitures, including the sale of Whiting Petroleum, which could result from, among other things, indemnification agreements, warranties, guarantees or litigation;

• weather effects on results of utility operations;

• the direct or indirect effects resulting from the ongoing novel coronavirus (COVID-19) pandemic and the spread of variant strains, including any vaccine mandates and testing requirements, on sales volumes, margins, operations, employees, labor markets, contractors, vendors, the ability to complete construction projects, supply chains, customers’ inability to pay bills, suspension of disconnects, the market value of the assets that fund pension plans and the potential for additional funding requirements, the ability of counterparties to meet their obligations, compliance with regulatory requirements, the ability to implement regulatory plans, economic conditions and access to capital markets;

• issues associated with environmental remediation and environmental compliance, including compliance with all environmental and emissions permits, the Coal Combustion Residuals Rule, future changes in environmental laws and regulations, including federal, state or local regulations for carbon dioxide emissions reductions from new and existing fossil-fueled EGUs, and litigation associated with environmental requirements;

• increased pressure from customers, investors and other stakeholders to more rapidly reduce carbon dioxide emissions;

• the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, state natural resources agencies or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims;

• continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;

• disruptions to ongoing operations and the supply of materials, services, equipment and commodities needed to construct solar generation, battery storage and electric and gas distribution projects, which may result from geopolitical issues, supplier manufacturing constraints, labor issues or transportation issues, as well as affect the ability to meet capacity requirements and result in increased capacity expense;

• possible changes to MISO’s methodology establishing capacity planning reserve margin and capacity accreditation requirements that may impact how and when new generating facilities such as IPL’s and WPL’s additional solar generation may be accredited with energy capacity and may require IPL and WPL to adjust their current resource plans, the need to add resources to comply with MISO’s proposal, or procure capacity in the market whereby such costs might not be recovered in rates;

• disruptions in the supply and delivery of natural gas, purchased electricity and coal;

• the direct or indirect effects resulting from breakdown or failure of equipment in the operation of electric and gas distribution systems, such as mechanical problems and explosions or fires, and compliance with electric and gas transmission and distribution safety regulations, including regulations promulgated by the Pipeline and Hazardous Materials Safety Administration;

• issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, availability of warranty coverage for equipment breakdowns or failures, performance below expected or contracted levels of output or efficiency, operator error, employee safety, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental operating, fuel-related and capital costs through rates;

• impacts that excessive heat, excessive cold, storms or natural disasters may have on Alliant Energy’s, IPL’s and WPL’s operations and recovery of costs associated with restoration activities or on the operations of Alliant Energy’s investments;

• Alliant Energy’s ability to sustain its dividend payout ratio goal;

• changes to costs of providing benefits and related funding requirements of pension and OPEB plans due to the market value of the assets that fund the plans, economic conditions, financial market performance, interest rates, timing and form of benefits payments, life expectancies and demographics;

• material changes in employee-related benefit and compensation costs, including settlement losses related to pension plans;

• risks associated with operation and ownership of non-utility holdings;

• changes in technology that alter the channels through which customers buy or utilize Alliant Energy’s, IPL’s or WPL’s products and services;

• impacts on equity income from unconsolidated investments from valuations and potential changes to ATC’s authorized return on equity;

• impacts of IPL’s future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures, allocation of mixed service costs and state depreciation, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods;

• current or future litigation, regulatory investigations, proceedings or inquiries;

• reputational damage from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions;

• the effect of accounting standards issued periodically by standard-setting bodies;

• the ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and

• other factors listed in MDA and Risk Factors in Item 1A in the 2021 Form 10-K.

Alliant Energy, IPL and WPL each assume no obligation, and disclaim any duty, to update the forward-looking statements in this report, except as required by law.

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PART I. FINANCIAL INFORMATION

ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

			For the Three Months												For the Six Months
			Ended June 30,												Ended June 30,
			2022						2021						2022						2021
			(in millions, except per share amounts)
Revenues:
Electric utility			$812						$717						$1,586						$1,418
Gas utility			94						69						356						239
Other utility			13						10						23						23
Non-utility			24						21						47						38
Total revenues			943						817						2,012						1,718
Operating expenses:
Electric production fuel and purchased power			191						138						359						271
Electric transmission service			133						121						271						255
Cost of gas sold			48						31						216						131
Other operation and maintenance			166						160						320						306
Depreciation and amortization			166						165						332						329
Taxes other than income taxes			27						26						54						52
Total operating expenses			731						641						1,552						1,344
Operating income			212						176						460						374
Other (income) and deductions:
Interest expense			78						69						152						138
Equity income from unconsolidated investments, net			(16)						(19)						(32)						(34)
Allowance for funds used during construction			(13)						(5)						(24)						(9)
Other			—						2						1						4
Total other (income) and deductions			49						47						97						99
Income before income taxes			163						129						363						275
Income tax expense (benefit)			4						(17)						12						(45)
Net income			159						146						351						320
Preferred dividend requirements of Interstate Power and Light Company			—						2						—						5
Net income attributable to Alliant Energy common shareowners			$159						$144						$351						$315
Weighted average number of common shares outstanding:
Basic			250.9						250.2						250.7						250.1
Diluted			251.1						250.6						251.0						250.5
Earnings per weighted average common share attributable to Alliant Energy common shareowners:
Basic			$0.63						$0.58						$1.40						$1.26
Diluted			$0.63						$0.57						$1.40						$1.26

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

			June 30, 2022						December 31, 2021
			(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents			$19						$39
Accounts receivable, less allowance for expected credit losses			490						440
Production fuel, at weighted average cost			55						51
Gas stored underground, at weighted average cost			64						82
Materials and supplies, at weighted average cost			121						113
Regulatory assets			188						104
Other			371						240
Total current assets (a)			1,308						1,069
Property, plant and equipment, net (a)			15,453						14,987
Investments:
ATC Holdings			351						338
Other			195						179
Total investments			546						517
Other assets:
Regulatory assets			1,863						1,836
Deferred charges and other			221						144
Total other assets			2,084						1,980
Total assets			$19,391						$18,553

LIABILITIES AND EQUITY
**Current l

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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 2021 Form 10-K. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.

2022 HIGHLIGHTS

Key highlights since the filing of the 2021 Form 10-K include the following:

Customer Investments:

• In response to a petition from a U.S.-based solar panel assembler, in March 2022, the U.S. Department of Commerce initiated an investigation into whether the sourcing of solar project materials and equipment from certain Southeast Asian countries circumvent tariffs and duties imposed on such materials and equipment imported from China. In June 2022, a presidential executive order postponed through 2024 any additional tariffs on solar project materials and equipment while the U.S. Department of Commerce completes its investigation. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these matters, including from any related legal challenges; however, this could result in delays and/or higher costs for IPL’s and WPL’s planned development and acquisition of additional renewable energy, and impact Alliant Energy’s, IPL’s and WPL’s anticipated future construction and acquisition expenditures.

• In June 2022, the PSCW issued an order approving WPL’s second certificate of authority 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).

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• In June 2022, IPL filed for a revised fixed cost cap of $1,934/kilowatt with the IUB related to IPL’s November 2021 advance rate-making principles filing 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, which reflects higher materials, labor and shipping costs. The revised fixed cost cap includes allowance for funds used during construction and transmission upgrade costs among other costs, and excludes estimated tax equity partner contributions. IPL currently expects a decision from the IUB on its filing by the end of 2022.

• Refer to Note 3 for discussion of revised expected timing for the retirements of various IPL and WPL coal-fired EGUs.

• Refer to Notes 1(b) and 6 for discussion of contributions to the joint venture associated with certain WPL solar generation projects made in the second quarter of 2022 by WPL and the tax equity partner.

Rate Matters:

• In June 2022, WPL filed a limited reopener request with the PSCW to increase annual retail gas rates for the 2023 forward-looking Test Period by approximately $10 million, which reflects changes in weighted average cost of capital, updated depreciation rates and modifications to certain regulatory asset and regulatory liability amortizations. In July 2022, WPL filed a request with the PSCW to decrease annual retail electric rates by approximately $37 million effective January 1, 2023, which reflects a change in expected fuel-related costs in 2023. WPL currently expects decisions from the PSCW on its requests by the end of 2022.

Legislative Matters:

• Refer to Note 9 for discussion of Iowa tax reform enacted in March 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 (loss) and EPS attributable to Alliant Energy common shareowners for the three months ended June 30 were as follows (dollars in millions, except per share amounts):

			2022												2021
			Income (Loss)						EPS						Income						EPS
Utilities and Corporate Services			$154						$0.61						$128						$0.51
ATC Holdings			8						0.03						8						0.03
Non-utility and Parent			(3)						(0.01)						8						0.03
Alliant Energy Consolidated			$159						$0.63						$144						$0.57

Alliant Energy’s Utilities and Corporate Services net income increased by $26 million for the three-month period, primarily due to higher AFUDC, timing of income tax expense and higher temperature-normalized sales. These items were partially offset by higher interest expense.

Alliant Energy’s Non-utility and Parent net income decreased by $11 million for the three-month period primarily due to the timing of income taxes.

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For the three and six months ended June 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			2022						2021						2022						2021						2022						2021
Operating income			$212						$176						$109						$111						$95						$55
Electric utility revenues			$812						$717						$442						$402						$370						$315
Electric production fuel and purchased power expenses			(191)						(138)						(83)						(55)						(108)						(84)
Electric transmission service expense			(133)						(121)						(91)						(79)						(41)						(42)
Utility Electric Margin (non-GAAP)			488						458						268						268						221						189
Gas utility revenues			94						69						52						43						42						26
Cost of gas sold			(48)						(31)						(27)						(22)						(21)						(9)
Utility Gas Margin (non-GAAP)			46						38						25						21						21						17
Other utility revenues			13						10						12						10						1						—
Non-utility revenues			24						21						—						—						—						—
Other operation and maintenance expenses			(166)						(160)						(87)						(81)						(67)						(69)
Depreciation and amortization expenses			(166)						(165)						(95)						(93)						(69)						(70)
Taxes other than income tax expense			(27)						(26)						(14)						(14)						(12)						(12)
Operating income			$212						$176						$109						$111						$95						$55

			Alliant Energy												IPL												WPL
Six Months			2022						2021						2022						2021						2022						2021
Operating income			$460						$374						$218						$214						$227						$145
Electric utility revenues			$1,586						$1,418						$843						$788						$743						$630
Electric production fuel and purchased power expenses			(359)						(271)						(150)						(114)						(209)						(158)
Electric transmission service expense			(271)						(255)						(188)						(171)						(83)						(84)
Utility Electric Margin (non-GAAP)			956						892						505						503						451						388
Gas utility revenues			356						239						191						134						165						105
Cost of gas sold			(216)						(131)						(112)						(72)						(104)						(59)
Utility Gas Margin (non-GAAP)			140						108						79						62						61						46
Other utility revenues			23						23						22						22						1						1
Non-utility revenues			47						38						—						—						—						—
Other operation and maintenance expenses			(320)						(306)						(171)						(158)						(123)						(128)
Depreciation and amortization expenses			(332)						(329)						(189)						(187)						(139)						(139)
Taxes other than income tax expense			(54)						(52)						(28)						(28)						(24)						(23)
Operating income			$460						$374						$218						$214						$227						$145

Operating Income Variances - Variances between periods in operating income for the three and six months ended June 30, 2022 compared to the same periods in 2021 were as follows (in millions):

			Three Months																		Six Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Total higher utility electric margin variance (Refer to details below)			$30						$—						$32						$64						$2						$63
Total higher utility gas margin variance (Refer to details below)			8						4						4						32						17						15
Total (higher) lower other operation and maintenance expenses variance (Refer to details below)			(6)						(6)						2						(14)						(13)						5
Other			4						—						2						4						(2)						(1)
			$36						($2)						$40						$86						$4						$82

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

Alliant Energy			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2022						2021						2022						2021						2022						2021						2022						2021
Three Months
Retail			$729						$643						6,127						5,959						$81						$61						7,605						6,604
Sales for resale			69						58						1,456						1,487						N/A						N/A						N/A						N/A
Transportation/Other			14						16						15						16						13						8						22,382						23,056
			$812						$717						7,598						7,462						$94						$69						29,987						29,660
Six Months
Retail			$1,420						$1,279						12,516						12,231						$330						$218						33,701						30,035
Sales for resale			137						103						3,402						2,558						N/A						N/A						N/A						N/A
Transportation/Other			29						36						31						35						26						21						52,260						47,746
			$1,586						$1,418						15,949						14,824						$356						$239						85,961						77,781

IPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2022						2021						2022						2021						2022						2021						2022						2021
Three Months
Retail			$421						$373						3,434						3,314						$44						$38						3,778						3,428
Sales for resale			13						17						422						386						N/A						N/A						N/A						N/A
Transportation/Other			8						12						8						7						8						5						10,154						9,241
			$442						$402						3,864						3,707						$52						$43						13,932						12,669
Six Months
Retail			$800						$734						7,085						6,896						$174						$120						17,380						15,566
Sales for resale			26						28						1,019						673						N/A						N/A						N/A						N/A
Transportation/Other			17						26						16						17						17						14						22,174						20,419
			$843						$788						8,120						7,586						$191						$134						39,554						35,985

WPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2022						2021						2022						2021						2022						2021						2022						2021
Three Months
Retail			$308						$270						2,693						2,645						$37						$23						3,827						3,176
Sales for resale			56						41						1,034						1,101						N/A						N/A						N/A						N/A
Transportation/Other			6						4						7						9						5						3						12,228						13,815
			$370						$315						3,734						3,755						$42						$26						16,055						16,991
Six Months
Retail			$620						$545						5,431						5,335						$156						$98						16,321						14,469
Sales for resale			111						75						2,383						1,885						N/A						N/A						N/A						N/A
Transportation/Other			12						10						15						18						9						7						30,086						27,327
			$743						$630						7,829						7,238						$165						$105						46,407						41,796

Sales Trends and Temperatures - Alliant Energy’s retail electric and gas sales volumes increased 3% and 15%, respectively, for the three months ended June 30, 2022 compared to the same period in 2021, primarily due to COVID-19 impacts in 2021 and increases in the number of retail customers. Alliant Energy’s retail electric and gas sales volumes increased 2% and 12%, respectively, for the six months ended June 30, 2022 compared to the same period in 2021, primarily due to changes in temperatures, COVID-19 impacts in 2021 and increases in the number of retail customers.

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

			Electric Margins																																				Gas Margins
			Three Months																		Six Months																		Three Months																		Six Months
			2022						2021						Change						2022						2021						Change						2022						2021						Change						2022						2021						Change
IPL			$7						$9						($2)						$11						$11						$—						$2						$—						$2						$4						$2						$2
WPL			8						8						—						10						9						1						—						—						—						2						—						2
Total Alliant Energy			$15						$17						($2)						$21						$20						$1						$2						$—						$2						$6						$2						$4

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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 (decreased) utility electric margins for the three and six months ended June 30, 2022 compared to the same periods in 2021 as follows (in millions):

			Three Months																		Six Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Higher revenue requirements at WPL due to increasing rate base (a)			$26						$—						$26						$53						$—						$53
Higher 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)			5						5						—						11						11						—
Lower revenues at IPL due to changes in the renewable energy rider (mostly offset by changes in income tax)			(6)						(6)						—						(18)						(18)						—
Other (includes higher temperature-normalized sales in 2022)			5						1						6						18						9						10
			$30						$—						$32						$64						$2						$63

(a)In December 2021, the PSCW issued an order authorizing annual base rate increases of $114 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 stakeholders. The key drivers for the annual base rate increases include higher retail fuel-related costs in 2022, lower excess deferred income tax benefits in 2022 and 2023 compared to 2021, and revenue requirement impacts of increasing electric and gas rate base, including investments in solar generation. Retail electric rate changes were effective on January 1, 2022 and extend through the end of 2023. Retail gas rate changes were effective on January 1, 2022 and extend through the end of 2022. The higher fuel expense costs are recognized in electric margin and the lower amount of excess deferred income tax benefits is recognized as a reduction in income tax.

Utility Gas Margin Variances - The following items contributed to increased (decreased) utility gas margins for the three and six months ended June 30, 2022 compared to the same periods in 2021 as follows (in millions):

			Three Months																		Six Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Higher 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)			$2						$2						$—						$11						$11						$—
Higher revenue requirements at WPL due to increasing rate base (refer to (a) above)			2						—						2						9						—						9
Other (includes higher temperature-normalized sales in 2022)			4						2						2						12						6						6
			$8						$4						$4						$32						$17						$15

Other Operation and Maintenance Expenses Variances - The following items contributed to (increased) decreased other operation and maintenance expenses for the three and six months ended June 30, 2022 compared to the same periods in 2021 as follows (in millions):

			Three Months																		Six Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Higher energy efficiency expense at IPL (mostly offset by higher revenues)			$—						$—						$—						($8)						($8)						$—
Non-utility Travero (mostly offset by higher revenues)			(4)						—						—						(7)						—						—
Other			(2)						(6)						2						1						(5)						5
			($6)						($6)						$2						($14)						($13)						$5

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Other Income and Deductions Variances - The following items contributed to (increased) decreased other income and deductions for the three and six months ended June 30, 2022 compared to the same periods in 2021 as follows (in millions):

			Three Months																		Six Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Higher interest expense primarily due to financings completed in 2022 and 2021 and higher interest rates			($9)						($3)						($2)						($14)						($5)						($3)
Higher AFUDC primarily due to changes in construction work in progress balances related to WPL’s solar generation			8						—						8						15						—						14
Other			(1)						2						—						1						3						1
			($2)						($1)						$6						$2						($2)						$12

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

Preferred Dividend Requirements of IPL - Alliant Energy’s and IPL’s preferred dividend requirements decreased for the three and six months ended June 30, 2022 compared to the same periods in 2021 due to the redemption of IPL’s 5.1% cumulative preferred stock in December 2021.

LIQUIDITY AND CAPITAL RESOURCES

The liquidity and capital resources summary included in the 2021 Form 10-K has not changed materially, except as described below.

Liquidity Position - At June 30, 2022, Alliant Energy had $19 million of cash and cash equivalents, $601 million ($273 million at the parent company, $250 million at IPL and $78 million at WPL) of available capacity under the single revolving credit facility and $95 million of available capacity at IPL under its sales of accounts receivable program.

Capital Structure - Capital structures at June 30, 2022 were as follows (Long-term Debt (including current maturities) (LD); Short-term Debt (SD); Common Equity (CE)):

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

			Alliant Energy												IPL												WPL
			2022						2021						2022						2021						2022						2021
Cash, cash equivalents and restricted cash, January 1			$40						$56						$34						$50						$2						$3
Cash flows from (used for):
Operating activities			300						207						83						18						198						200
Investing activities			(370)						(190)						60						98						(384)						(253)
Financing activities			50						(57)						(164)						(155)						188						53
Net increase (decrease)			(20)						(40)						(21)						(39)						2						—
Cash, cash equivalents and restricted cash, June 30			$20						$16						$13						$11						$4						$3

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Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for the six months ended June 30, 2022 compared to the same period in 2021 (in millions):

			Alliant Energy						IPL						WPL
Higher collections from WPL’s increasing base rate			$62						$—						$62
Lower contributions to qualified defined benefit pension plans			19						9						9
Natural gas cost payments from extreme temperatures in February 2021 resulting in under-recovered natural gas costs at IPL in 2021			14						14						—
Credits issued to IPL’s retail electric customers in 2021 through its transmission cost rider for refunds received in 2020 for MISO transmission owner return on equity complaints			12						12						—
Timing of WPL’s fuel-related cost recoveries from customers			(37)						—						(37)
Timing of intercompany payments and receipts			—						(1)						(10)
Other (primarily due to other changes in working capital)			23						31						(26)
			$93						$65						($2)

Investing Activities - The following items contributed to increased (decreased) investing activity cash flows for the six months ended June 30, 2022 compared to the same period in 2021 (in millions):

			Alliant Energy						IPL						WPL
(Higher) lower utility construction and acquisition expenditures (a)			($124)						$19						($143)
Changes in the amount of cash receipts on sold receivables			(62)						(62)						—
Other			6						5						12
			($180)						($38)						($131)

(a)Largely due to higher expenditures for WPL’s solar generation, partially offset by lower expenditures for IPL’s and WPL’s electric and gas distribution systems.

Construction and Acquisition Expenditures - Alliant Energy, IPL and WPL are currently evaluating potential impacts from cost pressures prevalent in the solar generation and battery storage markets and the pending U.S. Department of Commerce investigation on the timing and estimated costs for IPL’s and WPL’s planned development and acquisition of additional renewable energy, which could impact their anticipated future construction and acquisition expenditures. Refer to “2022 Highlights” for further discussion of the U.S. Department of Commerce investigation, as well as information on IPL’s revised fixed cost cap filing with the IUB in June 2022 for up to 400 MW of solar generation and approximately 75 MW of battery storage.

Financing Activities - The following items contributed to increased (decreased) financing activity cash flows for the six months ended June 30, 2022 compared to the same period in 2021 (in millions):

			Alliant Energy						IPL						WPL
Higher net proceeds from issuance of long-term debt			$650						$—						$—
Capital contributions from noncontrolling interest			29						—						29
Higher payments to retire long-term debt			(300)						—						—
Net changes in the amount of commercial paper outstanding			(262)						—						51
(Higher) lower common stock dividends			(12)						40						(4)
Higher (lower) capital contributions from IPL’s and WPL’s parent company, Alliant Energy			—						(50)						55
Other			2						1						4
			$107						($9)						$135

IPL and WPL Solar Project Tax Equity Financing - Alliant Energy, IPL and WPL are currently evaluating potential impacts from cost pressures prevalent in the solar generation and battery storage markets, as well as the U.S. Department of Commerce investigation discussed in “2022 Highlights,” on the timing and estimated costs for IPL’s and WPL’s planned development and acquisition of additional renewable energy, which could result in changes to their proposed solar project tax equity financing.

Common Stock Issuances - Refer to Note 6 for discussion of common stock issuances by Alliant Energy in 2022.

Long-term Debt - Refer to Note 7(b) for discussion of AEF’s issuance of long-term debt in 2022. AEF’s current term loan credit agreement that expires in March 2024 includes an option to increase the amount outstanding up to $400 million in aggregate with the same maturity, subject to bank approval, and includes substantially the same financial covenants that are included in Alliant Energy’s credit facility agreement.

Impact of Credit Ratings on Liquidity and Collateral Obligations -

Ratings Triggers - In June 2022, Standard & Poor’s Ratings Services changed WPL’s outlook from stable to negative. This outlook change is not expected to have a material impact on Alliant Energy and WPL’s liquidity or collateral obligations.

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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 2021 Form 10-K and has not changed materially from the items reported in the 2021 Form 10-K, except for the items described in Notes 4, 7 and 13.