Alliant Energy 10-Q 2023-06-30

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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, 2023

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, 2023:

Alliant Energy Corporation, Common Stock, $0.01 par value, 252,719,092 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			12
3. Property, Plant and Equipment			13
4. Receivables			13
5. Investments			14
6. Common Equity			14
7. Debt			16
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			25
15. Related Parties			26
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			27
Item 3. Quantitative and Qualitative Disclosures About Market Risk			35
Item 4. Controls and Procedures			35
Part II. Other Information			35
Item 1. Legal Proceedings			35
Item 1A. Risk Factors			35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			35
Item 5. Other Information			35
Item 6. Exhibits			36
Signatures			36

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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
2022 Form 10-K			Combined Annual Report on Form 10-K filed by Alliant Energy, IPL and WPL for the year ended Dec. 31, 2022			IUB			Iowa Utilities Board
AEF			Alliant Energy Finance, LLC			MDA			Management’s Discussion and Analysis of Financial Condition and Results of Operations
AFUDC			Allowance for funds used during construction			MISO			Midcontinent Independent System Operator, Inc.
Alliant Energy			Alliant Energy Corporation			MW			Megawatt
ATC			American Transmission Company LLC			MWh			Megawatt-hour
ATC Holdings			Interest in American Transmission Company LLC and ATC Holdco LLC			N/A			Not applicable
Corporate Services			Alliant Energy Corporate Services, Inc.			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
Financial Statements			Condensed Consolidated Financial Statements			U.S.			United States of America
FTR			Financial transmission right			West Riverside			West Riverside Energy Center and Solar Facility
GAAP			U.S. generally accepted accounting principles			Whiting Petroleum			Whiting Petroleum Corporation
IPL			Interstate Power and Light Company			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 direct or indirect effects resulting from cyber security incidents or attacks on Alliant Energy’s, IPL’s or WPL’s physical infrastructure, 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;

• inflation and higher interest rates;

• changes in the price of delivered natural gas, transmission, purchased electricity and delivered 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 seasonal resource adequacy process;

• 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, capacity costs, deferred expenditures, deferred tax assets, tax expense, interest 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;

• the ability to obtain regulatory approval for construction projects with acceptable conditions;

• 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, which could result from tariffs, duties or other assessments, such as any additional tariffs resulting from U.S. Department of Commerce investigations into and any decisions made regarding 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;

• the ability to utilize tax credits generated to date, and those that may be generated in the future, before they expire, as well as the ability to transfer tax credits that may be generated in the future at adequate pricing;

• 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, and thus affect the ability to meet capacity requirements and result in increased capacity expense;

• the future development of technologies related to electrification, and the ability to reliably store and manage electricity;

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

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

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

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

• 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;

• 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;

• impacts that terrorist attacks 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;

• 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;

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

• changes to MISO’s resource adequacy process establishing capacity planning reserve margin and capacity accreditation requirements that may impact how and when new and existing generating facilities, including 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, to add resources to meet the requirements of MISO’s process, or procure capacity in the market whereby such costs might not be recovered in rates;

• issues associated with environmental remediation and environmental compliance, including compliance with all environmental and emissions permits and future changes in environmental laws and regulations, including changes to the Coal Combustion Residuals Rule, Cross-State Air Pollution Rule emissions allowances and federal, state or local regulations for greenhouse gases emissions reductions from new and existing fossil-fueled EGUs under the Clean Air Act, and litigation associated with environmental requirements;

• increased pressure from customers, investors and other stakeholders to more rapidly reduce greenhouse gases 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;

• 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 and successful resolution of warranty issues or contract disputes 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 construction activities, and recovery of costs associated with restoration activities, or on the operations of Alliant Energy’s investments;

• the direct or indirect effects resulting from the ongoing novel coronavirus (COVID-19) pandemic and the spread of variant strains;

• 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 changes in valuations of the assets held, as well as 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 2022 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.

Available Information. Alliant Energy routinely posts important information on its website and considers the Investors section of its website, www.alliantenergy.com/investors, a channel of distribution for material information. Information contained on Alliant Energy’s website is not incorporated herein.

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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,
			2023						2022						2023						2022
			(in millions, except per share amounts)
Revenues:
Electric utility			$799						$812						$1,567						$1,586
Gas utility			77						94						353						356
Other utility			13						13						25						23
Non-utility			23						24						45						47
Total revenues			912						943						1,990						2,012
Operating expenses:
Electric production fuel and purchased power			166						191						322						359
Electric transmission service			138						133						284						271
Cost of gas sold			33						48						215						216
Other operation and maintenance			163						166						338						320
Depreciation and amortization			167						166						333						332
Taxes other than income taxes			28						27						59						54
Total operating expenses			695						731						1,551						1,552
Operating income			217						212						439						460
Other (income) and deductions:
Interest expense			96						78						190						152
Equity income from unconsolidated investments, net			(14)						(16)						(31)						(32)
Allowance for funds used during construction			(24)						(13)						(43)						(24)
Other			(1)						—						2						1
Total other (income) and deductions			57						49						118						97
Income before income taxes			160						163						321						363
Income tax expense (benefit)			—						4						(2)						12
Net income attributable to Alliant Energy common shareowners			$160						$159						$323						$351
Weighted average number of common shares outstanding:
Basic			251.7						250.9						251.4						250.7
Diluted			251.9						251.1						251.6						251.0
Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted)			$0.64						$0.63						$1.28						$1.40

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

			June 30, 2023						December 31, 2022
			(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents			$13						$20
Accounts receivable, less allowance for expected credit losses			428						516
Production fuel, at weighted average cost			64						53
Gas stored underground, at weighted average cost			69						132
Materials and supplies, at weighted average cost			172						140
Regulatory assets			196						166
Other			196						223
Total current assets			1,138						1,250
Property, plant and equipment, net			16,306						16,247
Investments:
ATC Holdings			372						358
Other			212						201
Total investments			584						559
Other assets:
Regulatory assets			2,148						1,880
Deferred charges and other			207						227
Total other assets			2,355						2,107
Total assets			$20,383						$20,163

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt			$409						$408
Commercia

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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 2022 Form 10-K. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.

2023 HIGHLIGHTS

Key highlights since the filing of the 2022 Form 10-K include the following:

Customer Investments:

• In 2021, IPL filed for advance rate-making principles with the IUB for up to 400 MW of solar generation and 75 MW of battery storage. In April 2023, the IUB approved advance rate-making principles for up to 200 MW of solar generation. The IUB’s order included a cost target of $1,575/kilowatt, including AFUDC and transmission upgrade costs among other costs. Any reasonable and prudent costs incurred in excess of the cost target, as well as the related return on common equity, would need to be addressed in future IPL retail electric rate review filings. In May 2023, IPL requested reconsideration of certain ratemaking principles for the up to 200 MW of solar generation, including the cost target and return on common equity. In June 2023, IPL and the IUB filed a joint motion for remand of the other 200 MW of solar generation and 75 MW of battery storage for further reconsideration by the IUB, which was granted by the court. In June 2023, the IUB granted reconsideration of advance rate-making principles for the 400 MW of solar generation and 75 MW of battery storage. In August 2023, IPL reached a non-unanimous settlement agreement with the Iowa Office of Consumer Advocate, subject to IUB approval, for up to 400 MW of solar generation with a cost target of $735 million, including AFUDC and transmission upgrade costs, and a related return on common equity of 10.75%.

• In June 2023, WPL received an oral decision from the PSCW authorizing WPL to construct, own and operate 175 MW of battery storage, with 100 MW and 75 MW at the Grant County and Wood County solar projects, respectively. A written order from the PSCW is currently expected in the third quarter of 2023.

• In June 2023, WPL filed requests with the PSCW for approval to construct improvements at the natural gas-fired Neenah Energy Facility and Sheboygan Falls Energy Facility, which would increase the capacity and efficiency of the EGUs. Estimated construction costs for these projects are included in the anticipated construction and acquisition expenditures included in “Liquidity and Capital Resources” in the 2022 Form 10-K.

• In March 2023, the IUB issued a certificate of public convenience, use and necessity (GCU Certificate) granting IPL approval to construct, own and operate up to 50 MW of solar generation and up to 25 MW of battery storage at the Creston project in Union County, Iowa.

• In April 2023, the IUB issued a GCU Certificate granting IPL approval to construct, own and operate up to 150 MW of solar generation and up to 75 MW of battery storage at the Wever project in Lee County, Iowa.

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Rate Matters:

• In April 2023, WPL filed a retail electric and gas rate review with the PSCW for the 2024/2025 forward-looking Test Period. The key drivers for the filing include revenue requirement impacts of increasing electric and gas rate base, including investments in solar generation and battery storage. The filing requested approval for WPL to implement increases in annual rates for its retail electric and gas customers of $111 million and $17 million in 2024, respectively, with any granted rate changes expected to be effective on January 1, 2024. WPL’s filing also requested approval to implement an additional $71 million increase in annual rates for its retail electric customers in 2025, with any granted rate changes expected to be effective on January 1, 2025. WPL also requested to maintain its current authorized return on common equity of 10% and implement an approximate 56% common equity component of its regulatory capital structure, as well as receive continued recovery of and a return on the remaining net book value of Edgewater Unit 5, which is currently expected to be retired by June 1, 2025. A decision from the PSCW is expected by the end of 2023.

• IPL currently expects to file a retail electric and gas rate review with the IUB in the third quarter of 2023. The key drivers for the anticipated filing include revenue requirement impacts of increasing electric and gas rate base, including investments in solar generation.

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 June 30 were as follows (dollars in millions, except per share amounts):

			2023												2022
			Income (Loss)						EPS						Income (Loss)						EPS
Utilities and Corporate Services			$164						$0.65						$154						$0.61
ATC Holdings			8						0.03						8						0.03
Non-utility and Parent			(12)						(0.04)						(3)						(0.01)
Alliant Energy Consolidated			$160						$0.64						$159						$0.63

Alliant Energy’s Utilities and Corporate Services net income increased by $10 million for the three-month period, primarily due to higher revenue requirements and AFUDC from WPL’s capital investments, and lower electric fuel-related costs, net of recoveries at WPL. These items were partially offset by lower retail electric and gas sales due to the impact of temperatures on customer demand and higher interest expense.

Alliant Energy’s Non-utility and Parent net income decreased by $9 million for the three-month period, primarily due to higher interest expense.

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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			2023						2022						2023						2022						2023						2022
Operating income			$217						$212						$110						$109						$99						$95
Electric utility revenues			$799						$812						$431						$442						$368						$370
Electric production fuel and purchased power expenses			(166)						(191)						(66)						(83)						(99)						(108)
Electric transmission service expense			(138)						(133)						(96)						(91)						(42)						(41)
Utility Electric Margin (non-GAAP)			495						488						269						268						227						221
Gas utility revenues			77						94						44						52						33						42
Cost of gas sold expense			(33)						(48)						(20)						(27)						(13)						(21)
Utility Gas Margin (non-GAAP)			44						46						24						25						20						21
Other utility revenues			13						13						12						12						1						1
Non-utility revenues			23						24						—						—						—						—
Other operation and maintenance expenses			(163)						(166)						(85)						(87)						(67)						(67)
Depreciation and amortization expenses			(167)						(166)						(96)						(95)						(69)						(69)
Taxes other than income taxes expense			(28)						(27)						(14)						(14)						(13)						(12)
Operating income			$217						$212						$110						$109						$99						$95

			Alliant Energy												IPL												WPL
Six Months			2023						2022						2023						2022						2023						2022
Operating income			$439						$460						$206						$218						$220						$227
Electric utility revenues			$1,567						$1,586						$819						$843						$748						$743
Electric production fuel and purchased power expenses			(322)						(359)						(113)						(150)						(209)						(209)
Electric transmission service expense			(284)						(271)						(201)						(188)						(83)						(83)
Utility Electric Margin (non-GAAP)			961						956						505						505						456						451
Gas utility revenues			353						356						194						191						159						165
Cost of gas sold expense			(215)						(216)						(116)						(112)						(99)						(104)
Utility Gas Margin (non-GAAP)			138						140						78						79						60						61
Other utility revenues			25						23						24						22						1						1
Non-utility revenues			45						47						—						—						—						—
Other operation and maintenance expenses			(338)						(320)						(181)						(171)						(133)						(123)
Depreciation and amortization expenses			(333)						(332)						(191)						(189)						(137)						(139)
Taxes other than income taxes expense			(59)						(54)						(29)						(28)						(27)						(24)
Operating income			$439						$460						$206						$218						$220						$227

Operating Income Variances - Variances between periods in operating income for the three and six months ended June 30, 2023 compared to the same periods in 2022 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)			$7						$1						$6						$5						$—						$5
Total lower utility gas margin variance (Refer to details below)			(2)						(1)						(1)						(2)						(1)						(1)
Total (higher) lower other operation and maintenance expenses variance (Refer to details below)			3						2						—						(18)						(10)						(10)
Total (higher) lower depreciation and amortization expenses (Refer to Note 2 for discussion of reductions to WPL's depreciation and amortization expense, which was partially offset by WPL's solar generation placed in service in 2022)			(1)						(1)						—						(1)						(2)						2
Other			(2)						—						(1)						(5)						1						(3)
			$5						$1						$4						($21)						($12)						($7)

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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
			2023						2022						2023						2022						2023						2022						2023						2022
Three Months
Retail			$730						$729						5,982						6,127						$67						$81						6,303						7,605
Sales for resale:
Wholesale			49						54						678						677						N/A						N/A						N/A						N/A
Bulk power and other			13						15						1,104						779						N/A						N/A						N/A						N/A
Transportation/Other			7						14						14						15						10						13						25,778						22,382
			$799						$812						7,778						7,598						$77						$94						32,081						29,987
Six Months
Retail			$1,414						$1,420						12,182						12,516						$329						$330						28,614						33,701
Sales for resale:
Wholesale			95						101						1,376						1,398						N/A						N/A						N/A						N/A
Bulk power and other			37						36						2,347						2,004						N/A						N/A						N/A						N/A
Transportation/Other			21						29						29						31						24						26						58,392						52,260
			$1,567						$1,586						15,934						15,949						$353						$356						87,006						85,961

IPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2023						2022						2023						2022						2023						2022						2023						2022
Three Months
Retail			$410						$421						3,320						3,434						$38						$44						2,946						3,778
Sales for resale:
Wholesale			14						16						178						179						N/A						N/A						N/A						N/A
Bulk power and other			1						(3)						360						243						N/A						N/A						N/A						N/A
Transportation/Other			6						8						8						8						6						8						9,555						10,154
			$431						$442						3,866						3,864						$44						$52						12,501						13,932
Six Months
Retail			$771						$800						6,863						7,085						$179						$174						14,406						17,380
Sales for resale:
Wholesale			26						31						365						373						N/A						N/A						N/A						N/A
Bulk power and other			9						(5)						856						646						N/A						N/A						N/A						N/A
Transportation/Other			13						17						16						16						15						17						21,589						22,174
			$819						$843						8,100						8,120						$194						$191						35,995						39,554

WPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2023						2022						2023						2022						2023						2022						2023						2022
Three Months
Retail			$320						$308						2,662						2,693						$29						$37						3,357						3,827
Sales for resale:
Wholesale			35						38						500						498						N/A						N/A						N/A						N/A
Bulk power and other			12						18						744						536						N/A						N/A						N/A						N/A
Transportation/Other			1						6						6						7						4						5						16,223						12,228
			$368						$370						3,912						3,734						$33						$42						19,580						16,055
Six Months
Retail			$643						$620						5,319						5,431						$150						$156						14,208						16,321
Sales for resale:
Wholesale			69						70						1,011						1,025						N/A						N/A						N/A						N/A
Bulk power and other			28						41						1,491						1,358						N/A						N/A						N/A						N/A
Transportation/Other			8						12						13						15						9						9						36,803						30,086
			$748						$743						7,834						7,829						$159						$165						51,011						46,407

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Sales Trends and Temperatures - Alliant Energy’s retail electric and gas sales volumes decreased 2% and 17%, respectively, for the three months ended June 30, 2023 compared to the same period in 2022, primarily due to changes in temperatures. Alliant Energy’s retail electric and gas sales volumes decreased 3% and 15%, respectively, for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to changes in temperatures.

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
			2023						2022						Change						2023						2022						Change						2023						2022						Change						2023						2022						Change
IPL			$—						$7						($7)						($4)						$11						($15)						($1)						$2						($3)						($4)						$4						($8)
WPL			—						8						(8)						(5)						10						(15)						(1)						—						(1)						(3)						2						(5)
Total Alliant Energy			$—						$15						($15)						($9)						$21						($30)						($2)						$2						($4)						($7)						$6						($13)

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, 2023 compared to the same periods in 2022 as follows (in millions):

			Three Months																		Six Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Lower WPL electric fuel-related costs, net of recoveries			$12						$—						$12						$13						$—						$13
Higher revenues at IPL due to changes in the renewable energy rider (mostly offset by changes in income taxes)			5						5						—						12						12						—
Estimated changes in sales volumes caused by temperatures			(15)						(7)						(8)						(30)						(15)						(15)
Other			5						3						2						10						3						7
			$7						$1						$6						$5						$—						$5

Utility Gas Margin Variances - The following items contributed to increased (decreased) utility gas margins for the three and six months ended June 30, 2023 compared to the same periods in 2022 as follows (in millions):

			Three Months																		Six Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Estimated changes in sales volumes caused by temperatures			($4)						($3)						($1)						($13)						($8)						($5)
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)			1						1						—						7						7						—
Higher revenue requirements at WPL (a)			1						—						1						5						—						5
Other			—						1						(1)						(1)						—						(1)
			($2)						($1)						($1)						($2)						($1)						($1)

(a)In December 2022, the PSCW issued an order authorizing an annual base rate increase of $9 million for WPL’s retail gas customers, covering the 2023 forward-looking Test Period, which reflects changes in weighted average cost of capital, updated depreciation rates and modifications to certain regulatory asset and regulatory liability amortizations. These retail gas rate changes were effective on January 1, 2023 and extend through the end of 2023.

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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, 2023 compared to the same periods in 2022 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)			($2)						($2)						$—						($9)						($9)						$—
Higher generation operation and maintenance expenses			(9)						(3)						(6)						(14)						(1)						(13)
Other			14						7						6						5						—						3
			$3						$2						$—						($18)						($10)						($10)

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, 2023 compared to the same periods in 2022 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 2023 and 2022, and higher interest rates			($18)						$—						($8)						($38)						$—						($17)
Higher AFUDC primarily due to changes in construction work in progress balances related to WPL’s solar generation			11						1						9						19						3						17
Other			(1)						(1)						4						(2)						(4)						3
			($8)						$—						$5						($21)						($1)						$3

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

LIQUIDITY AND CAPITAL RESOURCES

The liquidity and capital resources summary included in the 2022 Form 10-K has not changed materially, except as described below.

Liquidity Position - At June 30, 2023, Alliant Energy had $13 million of cash and cash equivalents, $554 million ($103 million at the parent company, $195 million at IPL and $256 million at WPL) of available capacity under the single revolving credit facility and $50 million of available capacity at IPL under its sales of accounts receivable program.

Capital Structure - Capital structures at June 30, 2023 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
			2023						2022						2023						2022						2023						2022
Cash, cash equivalents and restricted cash, January 1			$24						$40						$15						$34						$5						$2
Cash flows from (used for):
Operating activities			311						300						52						83						268						198
Investing activities			(482)						(370)						(15)						60						(402)						(384)
Financing activities			161						50						(43)						(164)						132						188
Net increase (decrease)			(10)						(20)						(6)						(21)						(2)						2
Cash, cash equivalents and restricted cash, June 30			$14						$20						$9						$13						$3						$4

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Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for the six months ended June 30, 2023 compared to the same period in 2022 (in millions):

			Alliant Energy						IPL						WPL
Changes in levels of gas stored underground and prepaid gas costs			$49						$21						$28
Timing of WPL’s fuel-related cost recoveries from retail electric customers			41						—						41
Changes in cash collateral and deposit balances at Corporate Services			14						—						—
Timing of intercompany payments and receipts			—						8						35
Decreased collections from IPL’s and WPL’s retail customers caused by temperature impacts on electric and gas sales			(43)						(23)						(20)
Changes in interest payments			(33)						—						(15)
Higher contributions to qualified defined benefit pension plans			(12)						—						(12)
Other (primarily due to other changes in working capital)			(5)						(37)						13
			$11						($31)						$70

Investing Activities - The following items contributed to increased (decreased) investing activity cash flows for the six months ended June 30, 2023 compared to the same period in 2022 (in millions):

			Alliant Energy						IPL						WPL
Higher utility construction and acquisition expenditures (a)			($208)						($79)						($129)
Higher other construction and acquisition expenditures			(19)						—						—
Proceeds from sales of partial ownership interest in West Riverside			120						—						120
Changes in the amount of cash receipts on sold receivables			39						39						—
Other			(44)						(35)						(9)
			($112)						($75)						($18)

(a)Largely due to higher expenditures for IPL and WPL’s solar generation.

Construction and Acquisition Expenditures - In March 2023, WPL notified the PSCW that it currently expects estimated construction costs and related rate base additions associated with its 414 MW of new solar generation will exceed amounts approved by the PSCW in June 2022 by approximately 10-14% due to higher commodity, labor and other site-specific costs. A significant portion of these higher estimated construction costs are included in the anticipated construction and acquisition expenditures included in “Liquidity and Capital Resources” in the 2022 Form 10-K.

Financing Activities - The following items contributed to increased (decreased) financing activity cash flows for the six months ended June 30, 2023 compared to the same period in 2022 (in millions):

			Alliant Energy						IPL						WPL
Higher net proceeds from issuance of long-term debt			$212						$—						$297
Higher net proceeds from common stock issuances			63						—						—
Higher payments to retire long-term debt			(100)						—						—
Net changes in the amount of commercial paper and other short-term borrowings outstanding			(30)						55						(232)
Capital contributions from noncontrolling interest			(29)						—						(29)
(Higher) lower common stock dividends			(11)						20						(3)
Higher (lower) capital contributions from IPL’s and WPL’s parent company, Alliant Energy			—						40						(85)
Other			6						6						(4)
			$111						$121						($56)

State Regulatory Financing Authorization - In March 2023, WPL received authorization from the PSCW to have up to $500 million of short-term borrowings and/or letters of credit outstanding at any time through the expiration date of WPL’s credit facility agreement.

Common Stock Issuances - Refer to Note 6 for discussion of common stock issuances by Alliant Energy in 2023.

Short-term Debt - Refer to Note 7(a) for discussion of Alliant Energy’s, IPL’s and WPL’s single credit facility agreement that was amended and extended in March 2023, which includes a revised cross-default provision related to prepayment of material debt prior to the stated maturity and certain other confirming changes, as well as details for proceeds from AEF’s December 2022 term loan credit agreement.

Long-term Debt - Refer to Note 7(b) for discussion of various issuances and retirements of long-term debt by Alliant Energy, AEF, IPL and WPL in 2023.

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Interest Rate Risk - As of June 30, 2023, Alliant Energy’s exposure to risk resulting from changes in interest rates associated with variable-rate borrowings was mitigated primarily due to its issuance of convertible senior notes and an interest rate swap on a portion of its variable-rate term loan borrowings, as well as WPL’s issuance of green bonds, all of which were executed in the first quarter of 2023. Assuming the impact of a hypothetical 100 basis point increase in interest rates on variable-rate borrowings and cash amounts outstanding under IPL’s sales of accounts receivable program at June 30, 2023, Alliant Energy’s annual pre-tax expense would increase by approximately $7 million.

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 2022 Form 10-K and has not changed materially from the items reported in the 2022 Form 10-K, except for the items described in Notes 4, 7 and 13.

OTHER MATTERS

Critical Accounting Policies and Estimates - The summary of critical accounting policies and estimates included in the 2022 Form 10-K has not changed materially, except as described below.

Long-Lived Assets -

Regulated Operations -

Generating Units Subject to Early Retirement - In May 2023, IPL retired the Lansing Generating Station. IPL is currently allowed a full recovery of and a full return on this EGU from both its retail and wholesale customers, and as a result, Alliant Energy and IPL concluded that no impairment was required as of June 30, 2023. Refer to Note 2 for further discussion of the Lansing retirement.

Environmental Matters - The summary of environmental matters included in the 2022 Form 10-K has not changed materially, except as described below.

Environmental Regulation -

Clean Air Act (CAA) Section 111(d) - In May 2023, the EPA published proposed standards under Section 111(d) of the CAA, which establish emission guidelines for states to implement Best System of Emission Reduction standards for greenhouse gases emissions from existing fossil-fueled EGUs and certain combustion turbines, and would be phased in beginning in 2030. The EPA also proposed to repeal the Affordable Clean Energy rule. The EPA’s proposed standards would require states to implement plans to reduce carbon dioxide emissions from existing fossil-fueled EGUs and certain combustion turbines through various measures, including retirement, enforceable limits on operational capacity, co-firing with low-greenhouse gases fuels, or other technological controls. State plans must be submitted within 24 months of the final rule’s effective date and are subject to EPA approval. The proposed standards could impact IPL’s coal-fired Ottumwa Generating Station, George Neal Generating Station, Prairie Creek Generating Station Unit 3 and Louisa Generating Station, and IPL’s natural gas-fired Burlington Generating Station and Prairie Creek Generating Station Unit 4. In addition, the proposed standards could impact natural gas-fired combustion turbines with a capacity of 300 MW or more, including IPL’s Marshalltown Generating Station and Emery Generating Station, and WPL’s Riverside Energy Center and West Riverside Energy Center. The proposed standards are currently not expected to impact WPL’s coal-fired Columbia Energy Center or Edgewater Generating Station given current plans to retire these EGUs prior to the proposed 2030 implementation deadline. The timeline for expected issuance of the EPA’s final reconsidered 111(d) rule cannot be predicted with certainty, but is expected to be issued in 2024. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these matters.

Clean Air Act Section 111(b) - In May 2023, the EPA published proposed standards under Section 111(b) of the CAA, which establish carbon dioxide emissions limits from certain new and reconstructed fossil-fueled EGUs and would apply prospectively. The timeline for expected issuance of the EPA’s final reconsidered 111(b) rule cannot be predicted with certainty, but is expected to be issued in 2024. Marshalltown and West Riverside are currently subject to the EPA’s Section 111(b) regulation. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these standards.

Coal Combustion Residuals (CCR) Rule - In May 2023, the EPA published proposed amendments to the CCR Rule, which regulates CCR as a non-hazardous waste. These proposed amendments would expand the scope of regulation to include coal ash ponds at sites that no longer produce electricity and inactive landfills, including some IPL and WPL facilities. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these updates.

Environmental Stewardship - Alliant Energy’s current voluntary environmental-related goals include the following:

• By 2030, reduce greenhouse gases emissions from its utility operations by 50% from 2005 levels, reduce its electric utility water supply by 75% from 2005 levels and electrify 100% of its owned light-duty fleet vehicles.

• By 2040, eliminate all coal-fired EGUs from its generating fleet and reduce greenhouse gases emissions from its utility operations by 80% from 2005 levels.

• By 2050, aspire to achieve net-zero greenhouse gases emissions from its utility operations.

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Alliant Energy’s aspirational greenhouse gases goal includes EPA reportable emissions based on applicable regulatory compliance requirements for carbon dioxide, methane and nitrous oxide from its owned fossil-fueled EGUs and distribution of natural gas. In addition, Alliant Energy’s environmental stewardship efforts include a goal to partner to plant more than 1 million trees by the end of 2030. Future updates to sustainable energy plans and attaining these goals will depend on future economic developments, evolving energy technologies and emerging trends in Alliant Energy’s service territories.