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

This MDA includes information relating to Alliant Energy, and IPL and WPL (collectively, the Utilities), as well as ATC Holdings, AEF and Corporate Services. Where appropriate, information relating to a specific entity has been segregated and labeled as such. The following discussion and analysis should be read in conjunction with the Financial Statements and the Notes included in this report, as well as the financial statements, notes and MDA included in the 2022 Form 10-K. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.

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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. 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 October 2023, the IUB issued an order approving a modified non-unanimous settlement agreement with the Iowa Office of Consumer Advocate among other stakeholders, for up to 400 MW of solar generation, subject to a cost target of $1,650/kilowatt, including AFUDC and transmission upgrade costs among other costs, and a related return on common equity of no less than 10.25% with the opportunity to request a higher return on common equity in future IPL retail electric rate review filings. Any reasonable and prudent costs incurred in excess of the cost target are eligible for recovery at the return on common equity determined in IPL retail electric rate review filings. The IUB’s order also included a consumer protection plan, which monitors IPL’s achievement of certain aggregate summer capacity factors for the up to 400 MW of solar generation projects during June, July and August each calendar year over 30 years. Actual three-year rolling average summer capacity factors will be compared to target capacity factors, which may result in surpluses or deficits that would be offset against one another and contribute to an accumulated balance in a given calendar year. Surpluses or deficits will be capped at $3 million in aggregate per year. At the end of the program, any accumulated deficit balance would be addressed in IPL’s next rate review, and any accumulated surplus balance would not result in any return to IPL. In November 2023, IPL accepted these advance rate-making principles.

• In October 2023, WPL received an oral decision from the PSCW authorizing WPL to construct, own and operate approximately 99 MW of battery storage at the Edgewater Generating Station.

• In August 2023, WPL received an order 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.

• 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. A decision from the PSCW is currently expected by the second quarter of 2024.

• In April 2023, the IUB issued a certificate of public convenience, use and necessity (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. In March 2023, the IUB issued a 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. These solar projects are included in the IUB’s October 2023 order approving advance rate-making principles for up to 400 MW of solar generation.

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 currently expected by the end of 2023.

• In October 2023, IPL filed a retail electric and gas rate review with the IUB for the October 2024 through September 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 repowering of the existing Franklin County wind farm. The filing requested approval for IPL to implement increases in annual rates for its retail electric and gas customers of $160 million and $14 million, respectively, with any granted rate changes expected to be effective on October 1, 2024. IPL’s filing also requested approval to implement an additional $124 million increase in annual rates for its retail electric customers in 2025, with any granted rate changes expected to be effective on October 1, 2025. IPL also requested a return on common equity of 10% and a 52% common equity component of its regulatory capital structure, as well as to receive continued recovery of and a return on the remaining net book value of the Lansing Generating Station through 2037, which was retired in May 2023. A decision from the IUB is currently expected by the third quarter of 2024.

• In August 2023, the PSCW authorized WPL to collect $117 million in higher rates, plus interest, from its retail electric customers from October 2023 through December 2025 for fuel-related costs incurred by WPL in 2022 that were higher than fuel-related costs used to determine rates for such period.

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Legislative Matters:

• Refer to Note 9 for discussion of the Iowa corporate income tax rate that will be effective January 1, 2024, pursuant to Iowa tax reform enacted in 2022.

Financings and Common Stock Dividends:

• Refer to “Results of Operations” for discussion of expected future issuances of common stock and common stock dividends, and expected future issuances and retirements of long-term debt, by the end of 2024.

RESULTS OF OPERATIONS

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

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

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

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

			2023												2022
			Income (Loss)						EPS						Income (Loss)						EPS
Utilities and Corporate Services			$281						$1.11						$249						$0.99
ATC Holdings			9						0.03						5						0.02
Non-utility and Parent			(31)						(0.12)						(27)						(0.11)
Alliant Energy Consolidated			$259						$1.02						$227						$0.90

Alliant Energy’s Utilities and Corporate Services net income increased by $32 million for the three-month period, primarily due to higher revenue requirements and AFUDC from WPL’s capital investments, and lower other operation and maintenance expenses. These items were partially offset by higher interest expense.

Alliant Energy’s Non-utility and Parent net income decreased by $4 million for the three-month period, primarily due to higher interest expense.

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

			Alliant Energy												IPL												WPL
Three Months			2023						2022						2023						2022						2023						2022
Operating income			$322						$309						$173						$171						$142						$131
Electric utility revenues			$995						$1,039						$551						$596						$444						$443
Electric production fuel and purchased power expenses			(231)						(274)						(99)						(140)						(132)						(134)
Electric transmission service expense			(154)						(157)						(115)						(115)						(39)						(42)
Utility Electric Margin (non-GAAP)			610						608						337						341						273						267
Gas utility revenues			47						62						31						33						16						29
Cost of gas sold expense			(12)						(26)						(12)						(14)						—						(13)
Utility Gas Margin (non-GAAP)			35						36						19						19						16						16
Other utility revenues			13						11						12						11						1						—
Non-utility revenues			22						23						—						—						—						—
Other operation and maintenance expenses			(160)						(172)						(84)						(90)						(64)						(70)
Depreciation and amortization expenses			(170)						(169)						(97)						(95)						(71)						(71)
Taxes other than income taxes expense			(28)						(28)						(14)						(15)						(13)						(11)
Operating income			$322						$309						$173						$171						$142						$131

			Alliant Energy												IPL												WPL
Nine Months			2023						2022						2023						2022						2023						2022
Operating income			$760						$769						$379						$389						$363						$357
Electric utility revenues			$2,562						$2,624						$1,370						$1,438						$1,192						$1,186
Electric production fuel and purchased power expenses			(553)						(633)						(213)						(290)						(341)						(343)
Electric transmission service expense			(438)						(428)						(316)						(303)						(122)						(125)
Utility Electric Margin (non-GAAP)			1,571						1,563						841						845						729						718
Gas utility revenues			400						418						224						224						176						194
Cost of gas sold expense			(226)						(242)						(127)						(126)						(99)						(117)
Utility Gas Margin (non-GAAP)			174						176						97						98						77						77
Other utility revenues			38						35						36						34						2						1
Non-utility revenues			66						70						—						—						—						—
Other operation and maintenance expenses			(499)						(492)						(264)						(260)						(197)						(193)
Depreciation and amortization expenses			(503)						(501)						(288)						(285)						(208)						(211)
Taxes other than income taxes expense			(87)						(82)						(43)						(43)						(40)						(35)
Operating income			$760						$769						$379						$389						$363						$357

Operating Income Variances - Variances between periods in operating income for the three and nine months ended September 30, 2023 compared to the same periods in 2022 were as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Total higher (lower) utility electric margin variance (Refer to details below)			$2						($4)						$6						$8						($4)						$11
Total lower utility gas margin variance (Refer to details below)			(1)						—						—						(2)						(1)						—
Total (higher) lower other operation and maintenance expenses variance (Refer to details below)			12						6						6						(7)						(4)						(4)
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)						(2)						—						(2)						(3)						3
Other			1						2						(1)						(6)						2						(4)
			$13						$2						$11						($9)						($10)						$6

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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 nine months ended September 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			$895						$908						6,821						6,788						$37						$50						3,283						3,584
Sales for resale:
Wholesale			59						68						795						774						N/A						N/A						N/A						N/A
Bulk power and other			25						47						1,409						985						N/A						N/A						N/A						N/A
Transportation/Other			16						16						14						16						10						12						29,776						30,982
			$995						$1,039						9,039						8,563						$47						$62						33,059						34,566
Nine Months
Retail			$2,310						$2,327						19,005						19,304						$367						$379						31,897						37,284
Sales for resale:
Wholesale			154						168						2,172						2,172						N/A						N/A						N/A						N/A
Bulk power and other			62						83						3,756						2,989						N/A						N/A						N/A						N/A
Transportation/Other			36						46						43						46						33						39						88,167						83,241
			$2,562						$2,624						24,976						24,511						$400						$418						120,064						120,525

IPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2023						2022						2023						2022						2023						2022						2023						2022
Three Months
Retail			$520						$559						3,736						3,736						$25						$25						1,658						1,739
Sales for resale:
Wholesale			21						19						213						208						N/A						N/A						N/A						N/A
Bulk power and other			3						9						332						373						N/A						N/A						N/A						N/A
Transportation/Other			7						9						8						9						6						8						9,999						9,743
			$551						$596						4,289						4,326						$31						$33						11,657						11,482
Nine Months
Retail			$1,291						$1,358						10,599						10,821						$204						$199						16,065						19,118
Sales for resale:
Wholesale			47						49						578						581						N/A						N/A						N/A						N/A
Bulk power and other			12						4						1,188						1,019						N/A						N/A						N/A						N/A
Transportation/Other			20						27						24						25						20						25						31,588						31,917
			$1,370						$1,438						12,389						12,446						$224						$224						47,653						51,035

WPL			Electric																								Gas
			Revenues												MWhs Sold												Revenues												Dths Sold
			2023						2022						2023						2022						2023						2022						2023						2022
Three Months
Retail			$375						$349						3,085						3,052						$12						$25						1,625						1,845
Sales for resale:
Wholesale			38						49						582						566						N/A						N/A						N/A						N/A
Bulk power and other			22						38						1,077						612						N/A						N/A						N/A						N/A
Transportation/Other			9						7						6						7						4						4						19,777						21,239
			$444						$443						4,750						4,237						$16						$29						21,402						23,084
Nine Months
Retail			$1,019						$969						8,406						8,483						$163						$180						15,832						18,166
Sales for resale:
Wholesale			107						119						1,594						1,591						N/A						N/A						N/A						N/A
Bulk power and other			50						79						2,568						1,970						N/A						N/A						N/A						N/A
Transportation/Other			16						19						19						21						13						14						56,579						51,324
			$1,192						$1,186						12,587						12,065						$176						$194						72,411						69,490

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Sales Trends and Temperatures - Alliant Energy’s retail electric and gas sales volumes increased 1% and decreased 8%, respectively, for the three months ended September 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 2% and 14%, respectively, for the nine months ended September 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 nine months ended September 30 were as follows (in millions):

			Electric Margins																																				Gas Margins
			Three Months																		Nine Months																		Three Months																		Nine Months
			2023						2022						Change						2023						2022						Change						2023						2022						Change						2023						2022						Change
IPL			$7						$4						$3						$3						$15						($12)						($1)						$—						($1)						($4)						$4						($8)
WPL			3						—						3						(2)						10						(12)						—						—						—						(4)						2						(6)
Total Alliant Energy			$10						$4						$6						$1						$25						($24)						($1)						$—						($1)						($8)						$6						($14)

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 nine months ended September 30, 2023 compared to the same periods in 2022 as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Lower (higher) WPL electric fuel-related costs, net of recoveries			($1)						$—						($1)						$12						$—						$12
Higher (lower) revenues at IPL due to changes in the renewable energy rider (mostly offset by changes in income taxes)			(3)						(3)						—						9						9						—
Estimated changes in sales volumes caused by temperatures			6						3						3						(24)						(12)						(12)
Other			—						(4)						4						11						(1)						11
			$2						($4)						$6						$8						($4)						$11

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

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Estimated changes in sales volumes caused by temperatures			($1)						($1)						$—						($14)						($8)						($6)
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)			—						—						—						7						7						—
Higher revenue requirements at WPL (a)			1						—						1						6						—						6
Other			(1)						1						(1)						(1)						—						—
			($1)						$—						$—						($2)						($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 nine months ended September 30, 2023 compared to the same periods in 2022 as follows (in millions):

			Three Months																		Nine Months
			Alliant Energy						IPL						WPL						Alliant Energy						IPL						WPL
Higher energy efficiency expense at IPL (mostly offset by higher revenues)			($1)						($1)						$—						($10)						($10)						$—
Lower (higher) generation and energy delivery expenses			3						1						2						(8)						—						(8)
Other			10						6						4						11						6						4
			$12						$6						$6						($7)						($4)						($4)

Other Income and Deductions Variances - The following items contributed to (increased) decreased other income and deductions for the three and nine months ended September 30, 2023 compared to the same periods in 2022 as follows (in millions):

			Three Months																		Nine 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			($16)						($1)						($7)						($54)						($2)						($24)
Higher AFUDC primarily due to changes in construction work in progress balances related to WPL’s solar generation			18						3						15						37						5						32
Other			8						(3)						2						6						(5)						3
			$10						($1)						$10						($11)						($2)						$11

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

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

• Financing Plans - Alliant Energy currently expects to issue up to $225 million of common stock in 2024 through one or more offerings and its Shareowner Direct Plan. The amount of common stock issued in 2024 will largely be used to fund capital contributions from Alliant Energy to WPL, which is dependent on the PSCW's decision on WPL's common equity component of its capital structure for the 2024/2025 forward-looking Test Period. IPL and AEF currently expect to issue up to $700 million and $1.0 billion of long-term debt, respectively, by the end of 2024. IPL and AEF have $500 million and $400 million of long-term debt, respectively, and AEF has $50 million of short-term borrowings, maturing in 2024.

• Common Stock Dividends - Alliant Energy announced a 6% increase in its expected targeted 2024 annual common stock dividend to $1.92 per share, which is equivalent to a quarterly rate of $0.48 per share, beginning with the February 2024 dividend payment. The timing and amount of future dividends is subject to approved quarterly dividend declarations from Alliant Energy’s Board of Directors, and is dependent upon earnings expectations, capital requirements, and general financial business conditions, among other factors.

• Cash Flows From Operating Activities - Alliant Energy, IPL and WPL currently expect an increase in future cash flows from operating activities resulting from the transfer of future renewable tax credits to other corporate taxpayers pursuant to the Inflation Reduction Act of 2022.

• Higher Earnings on Increasing Rate Base - Alliant Energy, IPL and WPL currently expect an increase in earnings in 2024 compared to 2023 due to impacts from increasing revenue requirements related to investments in the utility business.

• Depreciation and Amortization Expense - Alliant Energy, IPL and WPL currently expect an increase in depreciation and amortization expense in 2024 compared to 2023 due to capital projects placed in service in 2023 and 2024 and lower amortization of WPL’s West Riverside liquidated damages. Refer to Note 2 for discussion of WPL’s West Riverside liquidated damages.

• Interest Expense - Alliant Energy, IPL and WPL currently expect an increase in interest expense in 2024 compared to 2023 due to financings completed in 2023 and planned by the end of 2024 as discussed above, as well as expected higher interest rates.

• AFUDC - Alliant Energy and WPL currently expect a decrease and IPL currently expects an increase in AFUDC in 2024 compared to 2023 largely due to changes in construction work in progress balances related to construction activity on capital projects.

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.

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Liquidity Position - At September 30, 2023, Alliant Energy had $206 million of cash and cash equivalents, $549 million ($119 million at the parent company, $250 million at IPL and $180 million at WPL) of available capacity under the single revolving credit facility and $109 million of available capacity at IPL under its sales of accounts receivable program.

Capital Structure - Capital structures at September 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			622						485						191						166						437						279
Investing activities			(952)						(599)						(177)						84						(680)						(612)
Financing activities			515						421						159						(239)						254						630
Net increase			185						307						173						11						11						297
Cash, cash equivalents and restricted cash, September 30			$209						$347						$188						$45						$16						$299

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

			Alliant Energy						IPL						WPL
Timing of WPL’s fuel-related cost recoveries from retail electric customers			$137						$—						$137
Changes in levels of gas stored underground and prepaid gas costs			97						46						51
Changes in the sales of accounts receivable at IPL			36						36						—
Changes in interest payments			(60)						4						(28)
Decreased collections from IPL’s and WPL’s retail customers caused by temperature impacts on electric and gas sales			(38)						(20)						(18)
Other (primarily due to other changes in working capital)			(35)						(41)						16
			$137						$25						$158

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

			Alliant Energy						IPL						WPL
Higher utility construction and acquisition expenditures (a)			($328)						($158)						($170)
Changes in the amount of cash receipts on sold receivables			(52)						(52)						—
Higher non-utility construction and acquisition expenditures			(23)						—						—
Proceeds from sales of partial ownership interest in West Riverside in 2023			120						—						120
Other			(70)						(51)						(18)
			($353)						($261)						($68)

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

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Construction and Acquisition Expenditures - Construction and acquisition expenditures and financing plans are reviewed, approved and updated as part of the strategic planning process. Changes may result from a number of reasons, including regulatory requirements, changing legislation, not obtaining favorable and acceptable regulatory approval on certain projects, improvements in technology, and improvements to ensure resiliency and reliability of the electric and gas distribution systems. Construction and acquisition expenditures for 2023 through 2027 are currently anticipated as follows (in millions), which are focused on the transition to cleaner energy and strengthening the resiliency and reliability of IPL’s and WPL’s electric grid, and include renewables and battery storage projects, dispatchable gas generation projects and wind repowering projects. Cost estimates represent Alliant Energy’s, IPL’s and WPL’s portion of construction expenditures and exclude AFUDC and capitalized interest, if applicable.

			Alliant Energy																		IPL																		WPL
			2023			2024			2025			2026			2027						2023			2024			2025			2026			2027						2023			2024			2025			2026			2027
Generation:
Renewables and battery storage projects			$790			$1,140			$665			$780			$775						$350			$575			$275			$445			$205						$440			$565			$390			$335			$570
Gas projects			40			120			325			610			500						10			55			135			310			125						30			15			125			295			375
Other			95			100			80			50			40						55			55			40			20			15						40			45			40			30			25
Distribution:
Electric systems			565			610			620			670			685						305			355			365			380			395						260			255			255			290			290
Gas systems			80			85			85			85			85						35			40			40			40			40						45			45			45			45			45
Other			220			220			205			240			280						50			45			50			50			45						35			40			30			25			30
			$1,790			$2,275			$1,980			$2,435			$2,365						$805			$1,125			$905			$1,245			$825						$850			$965			$885			$1,020			$1,335

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

			Alliant Energy						IPL						WPL
Higher net proceeds from common stock issuances			$182						$—						$—
Distributions to noncontrolling interest in 2022			29						—						29
Higher (lower) capital contributions from IPL’s and WPL’s parent company, Alliant Energy			—						60						(175)
Higher (lower) net proceeds from issuance of long-term debt			(80)						296						(291)
Capital contributions from noncontrolling interest in 2022			(29)						—						(29)
Higher payments to retire long-term debt			(25)						—						—
(Higher) lower common stock dividends			(19)						30						(5)
Net changes in the amount of commercial paper and other short-term borrowings outstanding			(9)						—						66
Other			45						12						29
			$94						$398						($376)

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 and Common Stock Dividends - Refer to Note 6 for discussion of common stock issuances by Alliant Energy in 2023. Refer to “Results of Operations” for discussion of expected issuances of common stock and common stock dividends in 2024.

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. Refer to “Results of Operations” for discussion of expected future issuances and retirements of long-term debt by the end of 2024.

Interest Rate Risk - As of September 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 and IPL’s issuance of senior debentures, all of which were executed in 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 September 30, 2023, Alliant Energy’s annual pre-tax expense would increase by approximately $6 million.

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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 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 September 30, 2023. Refer to Note 2 for further discussion of the Lansing retirement.

IPL’s Solar Generation Projects Under Construction - As discussed in “2023 Highlights,” IPL accepted the IUB’s advance rate-making principles approved in October 2023 for 400 MW of solar generation. Alliant Energy and IPL review property, plant and equipment for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes. If IPL is disallowed recovery of any portion of, or is only allowed a partial return on, the carrying value of the solar generation projects under construction, then an impairment charge is recognized. IPL currently expects estimated construction costs associated with the 400 MW of new solar generation will exceed the cost target approved by the IUB by approximately 10%. Alliant Energy and IPL concluded that there was not a probable disallowance of anticipated higher rate base amounts as of September 30, 2023 given construction costs were reasonably and prudently incurred.

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.

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

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.