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

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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 2023 Form 10-K. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.


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2024 HIGHLIGHTS

Key highlights since the filing of the 2023 Form 10-K include the following:

Customer Investments:

In March 2024, IPL completed construction of the first phase of the Duane Arnold solar facility (50 MW in Linn County, Iowa).
In April 2024, the PSCW issued orders authorizing WPL 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.
In April 2024 and June 2024, IPL and WPL entered into agreements to transfer a portion of the renewable tax credits generated in 2024 and 2025 from certain wind, solar and battery storage facilities to other corporate taxpayers in exchange for cash.
In May 2024, WPL completed construction of the Grant County solar facility (200 MW in Grant County, Wisconsin).
In May 2024, WPL announced updated plans to convert the coal-fired Edgewater Unit 5 to natural gas in 2028, subject to regulatory approvals. WPL previously planned to retire the EGU by June 1, 2025.
In July 2024, the U.S. Department of Energy Office of Clean Energy Demonstrations awarded WPL’s Columbia Energy Storage Project, a 20 MW carbon dioxide-based long-duration energy storage system at the Columbia Energy Center site, up to approximately $30 million in grant funding during construction of the project. In August 2024, WPL filed a certificate of authority application with the PSCW for construction approval of the energy storage system. A decision from the PSCW is currently expected in 2025.
In July 2024, WPL filed a certificate of authority application with the PSCW for approval to refurbish the Bent Tree wind farm, which would be eligible for production tax credits under the Inflation Reduction Act of 2022. A decision from the PSCW is currently expected in 2025.
In October 2024, IPL completed construction of the Creston solar facility (50 MW in Union County, Iowa).
In October 2024, the U.S. Department of Energy Office of Grid Deployment selected WPL’s Smart Power Automation for Rural Communities program application to move into the final stage of award negotiations for up to $50 million in grant funding under the Grid Resilience and Innovation Partnerships Program. WPL currently expects to submit project plans to the PSCW in 2025 when award negotiations are nearing completion. Any grant proceeds would reduce the cost of the project for WPL’s customers.

Rate Matters:

In October 2023, IPL filed a retail electric and gas rate review with the IUC for the October 2024 through September 2025 forward-looking Test Period. In June 2024, IPL reached a partial, non-unanimous settlement agreement with certain stakeholders, which was approved by the IUC in September 2024. Rate changes were effective October 1, 2024, and are currently subject to procedural reviews by the IUC. The IUC’s order reflects the following:
Annual retail electric base rate increase of $185 million, with customers receiving partially offsetting credits for the first 12 months through a tax benefit rider, a subsequent retail electric base rate moratorium through September 2029, and an average retail electric rate base of $7,279 million;
During the moratorium, IPL may request updated rates if its actual return on common equity is 100 or more basis points below the authorized return on common equity for a single calendar year or 50 or more basis points below the authorized return on common equity for two consecutive years, and/or if a material change in laws or regulations causes the moratorium to become unsustainable;
Annual retail gas base rate increase of $10 million, and an average retail gas rate base of $630 million;
Return on common equity of 9.65% (for all assets that to do not have advance ratemaking principles) and a 51% common equity component of its regulatory capital structure;
Key drivers include revenue requirement impacts of increasing electric and gas rate base, including investments in solar generation, as well as updated depreciation rates and certain incremental costs and benefits incurred resulting from the 2020 derecho windstorm;
Electric earnings sharing mechanism beginning in calendar year 2025, where IPL would apply excess earnings to the remaining net book value of IPL’s highest earning asset with advance ratemaking principles (currently the Emery Generation Station) based on its authorized return on common equity as follows;


Threshold Above Authorized
Return on Common Equity						Sharing
First 50 basis points						75% customers, 25% IPL
>50 to 100 basis points						50% customers, 50% IPL
>100 to 150 basis points						25% customers, 75% IPL
>150 basis points						100% customers

Investment tax credits resulting from renewable generation and battery storage projects may be utilized to offset any revenue deficiency on an annual basis up to IPL’s return on common equity threshold. Any remaining investment tax credits, net of the cost of transferability, that are not used to offset any revenue deficiency, will be deferred by IPL and carried forward to offset any revenue deficiency in future years.
Creation of an individual customer rate tariff, which would allow IPL to attract new load growth to its service territory;


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Electric distribution system investment cap not to exceed $900 million in aggregate or $325 million in any given year from 2026 through 2029, with certain exceptions;
IPL to retain renewable tax benefits from new generation resources and the repowering of existing wind farms, including the Franklin County wind farm, as well as retain energy margins for new generation resources and battery storage;
Discontinuation of the renewable energy rider; and
A return of the remaining net book value of the Lansing Generating Station; however, the agreement does not include a return on the remaining net book value of Lansing, resulting in Alliant Energy and IPL recording a pre-tax non-cash charge of $60 million to “Asset valuation charge for IPL’s Lansing Generating Station” in their income statements for the nine months ended September 30, 2024.
In August 2024, the PSCW issued an order authorizing WPL to refund $34 million, plus interest, to its retail electric customers in the fourth quarter of 2024 for fuel-related costs incurred by WPL in 2023 that were lower than fuel-related costs used to determine rates for such period.
Refer to Note 3 for discussion of the PSCW’s September 2024 order related to the recovery and deferral of the return on incremental solar generation construction costs in 2024 and 2025.
WPL currently expects to file a retail electric and gas rate review with the PSCW in the second quarter of 2025 for the 2026/2027 forward-looking Test Period. The key drivers for the anticipated filing include revenue requirement impacts of increasing electric and gas rate base. Any rate changes granted from this pending request are expected to be effective on January 1, 2026, with a decision from the PSCW expected by the end of 2025.

Growing Customer Demand:

Alliant Energy, IPL and WPL are pursuing opportunities for customer growth, including new customers at Alliant Energy’s development-ready sites in Iowa and Wisconsin. Alliant Energy has entered into electric service agreements with two new customers, who currently expect to build data centers at the Big Cedar Industrial Center Mega-site in Cedar Rapids, Iowa. The electric service agreements are subject to IUC approval under the individual customer rate tariff, which was included in the IUC’s September 2024 order for IPL’s retail electric rate review. The timing and amount of increases in load are subject to various factors, including interconnections, and any executed or future agreements with customers are not expected to result in immediate increases in load.

Environmental Matters:

In May 2024, the EPA enacted the revised CCR Rule, which significantly expands 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. As a result, as discussed in Note 11, Alliant Energy, IPL and WPL recorded additional AROs in the second quarter of 2024. Alliant Energy, IPL and WPL continue to evaluate the revised CCR Rule and are unable to predict with certainty the future outcome or impact of these updates, including resolution of ongoing litigation.
In May 2024, the EPA enacted the final Section 111(d) rule for certain fossil-fueled EGUs and repealed the Affordable Clean Energy rule. The final Section 111(d) rule requires states to implement plans to reduce carbon dioxide emissions through various Best System of Emission Reduction measures at affected sources, including retirement, enforceable limits on operational capacity, co-firing with low-greenhouse gases fuels, or carbon capture and storage technology. State plans are subject to EPA approval, and must be submitted by May 2026. The final rule’s compliance requirements will be phased in beginning in 2030 and covers fossil-fueled EGUs that utilize steam boilers to generate electricity, including IPL’s coal-fired Ottumwa Generating Station, George Neal Generating Station, Prairie Creek Generating Station Unit 3 and Louisa Generating Station, WPL’s coal-fired Edgewater Generating Station Unit 5 (WPL currently plans to convert Edgewater Unit 5 to natural gas in 2028, subject to regulatory approvals), and IPL’s natural gas-fired Burlington Generating Station and Prairie Creek Generating Station Unit 4. The final rule does not apply to EGUs that are retired by January 2032 and is not currently expected to impact WPL’s coal-fired Columbia Energy Center given current plans to retire this EGU prior to the deadline. In addition, the final rule does not impact existing natural gas-fired combustion turbines, including IPL’s Marshalltown Generating Station and Emery Generating Station, and WPL’s Riverside Energy Center and West Riverside Energy Center; however, these EGUs could be subject to future Section 111(d) rules to reduce carbon dioxide emissions from existing combustion turbines. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these matters, including resolution of ongoing litigation.
In May 2024, the EPA enacted final revised standards under Section 111(b), which establishes carbon dioxide emissions limits from certain new and reconstructed fossil-fueled EGU combustion turbines that commenced operation after May 23, 2023 with a capacity greater than 25 MW. The final revised standards do not apply to IPL’s Marshalltown Generating Station or WPL’s West Riverside Energy Center, which commenced operation prior to the applicability date of the final revised standards. Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these revised standards, including resolution of ongoing litigation.
In May 2024, the EPA enacted a final rule that revises discharge limits for specific categories of wastewater from existing coal-fired EGUs. The new limitations will be implemented in each facility’s wastewater discharge permits issued by state agencies and become effective as soon as possible but no later than December 31, 2029. Alliant Energy, IPL and WPL are currently evaluating the final rule and are unable to predict with certainty future compliance impacts, including resolution of ongoing litigation; however, costs to comply with this rule could have a material impact on their financial condition and results of operations.


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

Legislative Matters:

In May 2024, the Major Economic Growth Attraction program was enacted in Iowa, which offers various tax incentives for up to two qualified businesses for certain large-scale projects with capital investments greater than $1 billion constructed on certified sites greater than 250 acres in Iowa. The most significant provision of this program for Alliant Energy encourages economic development in IPL’s service territory. Alliant Energy has various development-ready sites throughout Iowa, including the Big Cedar Industrial Center Mega-site in Cedar Rapids, Iowa, and the Prairie View Industrial Center Super Park in Ames, Iowa.
In May 2024, legislation was enacted in Iowa related to the advance rate-making principles for certain investments in Iowa. The most significant provisions of this legislation for Alliant Energy would allow IPL to include electric storage and nuclear-fired generation projects in the advance rate-making principles request process prior to making these investments in Iowa, and require IPL to obtain a certificate of public convenience, use and necessity (GCU Certificate) from the IUC in order to construct electric storage projects.

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 in 2025.

RESULTS OF OPERATIONS

Financial Results Overview - 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. 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):


	2024		2023
	Income (Loss)	EPS	Income (Loss)	EPS

Utilities and Corporate Services	$308	$1.20	$281	$1.11
ATC Holdings	9	0.04	9	0.03
Non-utility and Parent	(22)	(0.09)	(31)	(0.12)


Alliant Energy Consolidated	$295	$1.15	$259	$1.02

Alliant Energy’s Utilities and Corporate Services net income increased by $27 million for the three-month period, primarily due to higher revenue requirements from WPL’s capital investments and the timing of income taxes. These items were partially offset by higher financing and depreciation expenses, and estimated temperature impacts on retail electric and gas sales.

Alliant Energy’s Non-utility and Parent net income increased $9 million for the three-month period, primarily due to charges related to the remeasurement of deferred tax assets due to Iowa corporate income tax rate changes recorded in the third quarter of 2023.


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Net Income Variances - The following items contributed to increased (decreased) net income for the three and nine months ended September 30, 2024 compared to the same periods in 2023 (in millions):


	Three Months			Nine Months
	Alliant Energy	IPL	WPL	Alliant Energy	IPL	WPL
Revenues:
Changes in electric utility (Refer to details below)	$4	($28)	$32	$17	($52)	$69
Changes in gas utility (Refer to details below)	2	(4)	6	(78)	(49)	(29)
Changes in other utility	(1)	(1)	—	(2)	(2)	—
Changes in non-utility	(1)	—	—	2	—	—
Changes in total revenues	4	(33)	38	(61)	(103)	40
Operating expenses:
Changes in electric production fuel and purchased power (Refer to details below)	39	20	20	60	18	43
Changes in electric transmission service (Refer to details below)	(11)	—	(10)	(26)	(1)	(26)
Changes in cost of gas sold (Refer to details below)	(1)	4	(5)	74	42	32
Asset valuation charge for IPL’s Lansing Generating Station in the second quarter of 2024 (Refer to Note 2 for details)	—	—	—	(60)	(60)	—
Changes in other operation and maintenance (Refer to details below)	(14)	(12)	(8)	(11)	(17)	(3)
Changes in depreciation and amortization (Higher primarily due to WPL’s solar generation placed in service in 2024 and 2023, as well as WPL’s amortization of liquidated damages related to West Riverside procurement contracts, which resulted in reductions to depreciation and amortization expenses in 2023)	(25)	(3)	(20)	(68)	(6)	(61)
Changes in taxes other than income taxes	(1)	—	(1)	(3)	(2)	(1)
Changes in total operating expenses	(13)	9	(24)	(34)	(26)	(16)
Changes in operating income	(9)	(24)	14	(95)	(129)	24
Other income and deductions:
Changes in interest expense (Higher primarily due to financings completed in 2024 and 2023)	(15)	(6)	(4)	(40)	(15)	(14)
Changes in equity income from unconsolidated investments, net (Refer to Note 5 for details)	—	—	—	(1)	—	—
Changes in allowance for funds used during construction (Primarily due to changes in levels of construction work in progress balances related to solar generation and battery storage)	(8)	7	(15)	(13)	21	(34)
Changes in Other	1	6	(5)	—	7	(7)
Changes in total other income and deductions	(22)	7	(24)	(54)	13	(55)
Changes in income before income taxes	(31)	(17)	(10)	(149)	(116)	(31)
Changes in income taxes (Refer to Note 9 for details)	67	37	17	107	57	34


Changes in net income	$36	$20	$7	($42)	($59)	$3


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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
	2024	2023	2024	2023	2024	2023	2024	2023
Three Months
Retail	$887	$895	6,697	6,821	$38	$37	3,281	3,283
Sales for resale:
Wholesale	58	59	782	795	N/A	N/A	N/A	N/A
Bulk power and other	31	25	1,363	1,409	N/A	N/A	N/A	N/A
Transportation/Other	23	16	14	14	11	10	30,239	29,776
	$999	$995	8,856	9,039	$49	$47	33,520	33,059
Nine Months
Retail	$2,312	$2,310	18,633	19,005	$289	$367	29,128	31,897
Sales for resale:
Wholesale	147	154	2,115	2,172	N/A	N/A	N/A	N/A
Bulk power and other	66	62	4,120	3,756	N/A	N/A	N/A	N/A
Transportation/Other	54	36	43	43	33	33	93,248	88,167
	$2,579	$2,562	24,911	24,976	$322	$400	122,376	120,064


IPL	Electric				Gas
	Revenues		MWhs Sold		Revenues		Dths Sold
	2024	2023	2024	2023	2024	2023	2024	2023
Three Months
Retail	$497	$520	3,647	3,736	$21	$25	1,606	1,658
Sales for resale:
Wholesale	19	21	212	213	N/A	N/A	N/A	N/A
Bulk power and other	—	3	248	332	N/A	N/A	N/A	N/A
Transportation/Other	7	7	8	8	6	6	10,337	9,999
	$523	$551	4,115	4,289	$27	$31	11,943	11,657
Nine Months
Retail	$1,259	$1,291	10,302	10,599	$156	$204	14,491	16,065
Sales for resale:
Wholesale	45	47	568	578	N/A	N/A	N/A	N/A
Bulk power and other	(5)	12	777	1,188	N/A	N/A	N/A	N/A
Transportation/Other	19	20	24	24	19	20	31,621	31,588
	$1,318	$1,370	11,671	12,389	$175	$224	46,112	47,653


WPL	Electric				Gas
	Revenues		MWhs Sold		Revenues		Dths Sold
	2024	2023	2024	2023	2024	2023	2024	2023
Three Months
Retail	$390	$375	3,050	3,085	$17	$12	1,675	1,625
Sales for resale:
Wholesale	39	38	570	582	N/A	N/A	N/A	N/A
Bulk power and other	31	22	1,115	1,077	N/A	N/A	N/A	N/A
Transportation/Other	16	9	6	6	5	4	19,902	19,777
	$476	$444	4,741	4,750	$22	$16	21,577	21,402
Nine Months
Retail	$1,053	$1,019	8,331	8,406	$133	$163	14,637	15,832
Sales for resale:
Wholesale	102	107	1,547	1,594	N/A	N/A	N/A	N/A
Bulk power and other	71	50	3,343	2,568	N/A	N/A	N/A	N/A
Transportation/Other	35	16	19	19	14	13	61,627	56,579
	$1,261	$1,192	13,240	12,587	$147	$176	76,264	72,411


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Sales Trends and Temperatures - Alliant Energy’s retail electric sales volumes decreased 2% for both the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to changes in sales volumes at IPL’s industrial customers due to standby service customers that can use other generation and changes in temperatures. Alliant Energy’s retail gas sales volumes were unchanged and decreased 9% for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, primarily due to changes in temperatures.

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


	Electric						Gas
	Three Months			Nine Months			Three Months			Nine Months
	2024	2023	Change	2024	2023	Change	2024	2023	Change	2024	2023	Change
IPL	$1	$7	($6)	($7)	$3	($10)	($1)	($1)	$—	($8)	($4)	($4)
WPL	—	3	(3)	(11)	(2)	(9)	(1)	—	(1)	(7)	(4)	(3)
Total Alliant Energy	$1	$10	($9)	($18)	$1	($19)	($2)	($1)	($1)	($15)	($8)	($7)

Electric Sales for Resale - Bulk Power and Other - Bulk power and other volume changes were 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 bulk power and other revenues were largely offset by changes in fuel-related costs, and therefore did not have a significant impact on operating income.

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.

Electric Utility Revenue Variances - The following items contributed to increased (decreased) electric utility revenues for the three and nine months ended September 30, 2024 compared to the same periods in 2023 (in millions):


	Three Months			Nine Months
	Alliant Energy	IPL	WPL	Alliant Energy	IPL	WPL




Higher revenue requirements at WPL (a)	$44	$—	$44	$118	$—	$118
Higher (lower) sales for resale bulk power and other revenues	6	(3)	9	4	(17)	21
Lower revenues due to changes in retail electric fuel-related costs (Refer to Electric Production Fuel and Purchased Power Expenses Variances below) (a)	(47)	(18)	(29)	(81)	(6)	(75)
Estimated changes in sales volumes caused by temperatures	(9)	(6)	(3)	(19)	(10)	(9)
Lower revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (mostly offset by changes in energy efficiency expense)	(1)	(1)	—	(10)	(10)	—

Changes in WPL electric fuel-related costs, net of recoveries (b)	(2)	—	(2)	(9)	—	(9)
Other	13	—	13	14	(9)	23
	$4	($28)	$32	$17	($52)	$69

(a)In December 2023, the PSCW issued an order authorizing an annual base rate increase of $49 million for WPL’s retail electric customers, covering the 2024 forward-looking Test Period, which reflects revenue requirement impacts of increasing electric rate base and lower forecasted fuel-related expenses.

(b)WPL’s cost recovery mechanism for retail fuel-related expenses supports deferrals of amounts that fall outside an approved fuel monitoring range of forecasted fuel-related expenses determined by the PSCW each year. The difference between revenue collected and actual fuel-related expenses incurred within the fuel monitoring range increases or decreases Alliant Energy’s and WPL’s electric utility revenues. WPL estimates the increase (decrease) to electric utility revenues from amounts within the fuel monitoring range were approximately $0 and ($4) million for the three and nine months ended September 30, 2024, respectively, compared to $2 million and $5 million for the three and nine months ended September 30, 2023, respectively.


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Gas Utility Revenue Variances - The following items contributed to increased (decreased) gas utility revenues for the three and nine months ended September 30, 2024 compared to the same periods in 2023 (in millions):


	Three Months			Nine Months
	Alliant Energy	IPL	WPL	Alliant Energy	IPL	WPL
Higher (lower) revenues due to changes in gas costs (Refer to Cost of Gas Sold Expense Variances below)	$2	($3)	$5	($74)	($42)	($32)
Estimated changes in sales volumes caused by temperatures	(1)	—	(1)	(7)	(4)	(3)
Higher revenue requirements at WPL (a)	1	—	1	7	—	7

Other	—	(1)	1	(4)	(3)	(1)
	$2	($4)	$6	($78)	($49)	($29)

(a)In December 2023, the PSCW issued an order authorizing an annual base rate increase of $13 million for WPL’s retail gas customers, covering the 2024 forward-looking Test Period, which reflects revenue requirement impacts of increasing gas rate base.

Electric Production Fuel and Purchased Power Expenses Variances - The following items contributed to (increased) decreased electric production fuel and purchased power expenses for the three and nine months ended September 30, 2024 compared to the same periods in 2023 (in millions):


	Three Months			Nine Months
	Alliant Energy	IPL	WPL	Alliant Energy	IPL	WPL
Lower electric production fuel costs (a)	$39	$17	$22	$114	$74	$40
Changes in regulatory recovery of retail electric fuel-related costs	4	3	1	7	(19)	26
(Higher) lower purchased power expense (b)	4	1	3	(51)	(37)	(14)

Other	(8)	(1)	(6)	(10)	—	(9)
	$39	$20	$20	$60	$18	$43

(a)Electric production fuel costs decreased for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to lower natural gas prices at IPL and WPL, and lower coal volumes at IPL due to lower dispatch of IPL’s coal-fired EGUs in 2024. Also contributing to the three-month decrease were lower coal volumes at WPL due to lower dispatch of WPL’s coal-fired EGUs in the third quarter of 2024. Also contributing to the nine-month decrease were lower natural gas volumes at IPL due to lower dispatch of IPL’s natural gas-fired EGUs in 2024.

(b)Purchased power expense increased for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to higher prices for electricity purchased by IPL and WPL and increased volumes of electricity purchased at IPL, partially offset by decreased volumes of electricity purchased at WPL.

Electric Transmission Service Expense Variances - The following items contributed to (increased) decreased electric transmission service expense for the three and nine months ended September 30, 2024 compared to the same periods in 2023 (in millions):


	Three Months			Nine Months
	Alliant Energy	IPL	WPL	Alliant Energy	IPL	WPL

Changes in regulatory recovery for the difference between actual electric transmission service costs and those costs used to determine rates	($13)	($6)	($7)	($23)	($7)	($16)

Other (primarily due to changes in transmission service costs provided by third parties)	2	6	(3)	(3)	6	(10)
	($11)	$—	($10)	($26)	($1)	($26)

Cost of Gas Sold Expense Variances - The following items contributed to (increased) decreased cost of gas sold expense for the three and nine months ended September 30, 2024 compared to the same periods in 2023 (in millions):


	Three Months			Nine Months
	Alliant Energy	IPL	WPL	Alliant Energy	IPL	WPL
(Higher) lower natural gas prices and lower retail gas volumes	$2	$3	($1)	$88	$60	$28
Changes in the regulatory recovery of gas costs	(4)	—	(4)	(14)	(18)	4
Other	1	1	—	—	—	—
	($1)	$4	($5)	$74	$42	$32


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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, 2024 compared to the same periods in 2023 (in millions):


	Three Months			Nine Months
	Alliant Energy	IPL	WPL	Alliant Energy	IPL	WPL
Lower energy efficiency expense at IPL (mostly offset by lower revenues)	$2	$2	$—	$14	$14	$—

ARO charge for steam assets at IPL in the second quarter of 2024	—	—	—	(20)	(20)	—

Other	(16)	(14)	(8)	(5)	(11)	(3)
	($14)	($12)	($8)	($11)	($17)	($3)

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 $25 million of common stock in 2025 through its Shareowner Direct Plan. In 2025, IPL currently expects to issue up to $600 million of long-term debt, and AEF and/or Alliant Energy at the parent company level expect to issue up to $600 million of long-term debt in aggregate. IPL and AEF each have $300 million of long-term debt maturing in 2025.
Common Stock Dividends** - Alliant Energy announced a 6% increase in its targeted 2025 annual common stock dividend to $2.03 per share, which is equivalent to a quarterly rate of $0.5075 per share, beginning with the February 2025 dividend payment. The timing and amount of future dividends is subject to approval of 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.
Restructuring and Voluntary Employee Separation Charges -** In the fourth quarter of 2024, Alliant Energy announced restructuring activities, including offering certain employees a voluntary separation package to help align resources with evolving business and customer needs, and reduce customer costs. Approximately 5% of Alliant Energy employees accepted the package, and as a result of the announced restructuring activities, Alliant Energy currently expects to record pre-tax charges of $25 million to $30 million in the fourth quarter of 2024.
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. In addition, Alliant Energy, IPL and WPL currently expect an increase in future cash flows from operating activities resulting from higher earnings on increasing rate base at IPL and WPL.
Higher Earnings on Increasing Rate Base** - Alliant Energy, IPL and WPL currently expect increases in electric utility and gas utility revenues in 2025 compared to 2024 due to impacts from increasing revenue requirements related to investments in the utility business. In addition, Alliant Energy, IPL and WPL currently expect a decrease in the effective income tax rate in 2025 compared to 2024 due to additional renewable tax credits from renewable generation and battery storage projects placed in service in 2024 and expected to be placed in service in 2025. A majority of the differences between actual renewable tax credits and renewable tax credits used to determine rates are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers. Investment tax credits resulting from IPL battery storage projects expected to be placed in service in 2025 may be utilized to offset any revenue deficiency on an annual basis up to the earnings sharing mechanism threshold included in IPL’s retail electric rate review settlement agreement discussed in “2024 Highlights.”
Sales Trends and Temperatures -** In July 2025, IPL’s wholesale power agreement with Southern Minnesota Energy Cooperative (SMEC) will expire (sales to SMEC represented approximately 5% of IPL’s total electric sales in 2023), which is not expected to have a material impact on Alliant Energy’s or IPL’s future financial condition and results of operations. For the nine months ended September 30, 2024, warmer than normal temperatures in the winter and cooler than normal temperatures in the summer in Alliant Energy’s, IPL’s and WPL’s service territories resulted in lower retail electric and gas sales volumes and operating income.
Other Operation and Maintenance Expenses** - Alliant Energy, IPL and WPL currently expect a decrease in other operation and maintenance expenses in 2025 compared to 2024 largely due to the asset valuation charge for IPL’s Lansing Generating Station and ARO charge for steam assets at IPL recorded in 2024, and the charges expected to be recorded in the fourth quarter of 2024 and expected future costs savings related to Alliant Energy’s restructuring activities. These items are expected to be partially offset by higher generation maintenance and energy delivery expenses.
Depreciation and Amortization Expense** - Alliant Energy, IPL and WPL currently expect an increase in depreciation and amortization expense in 2025 compared to 2024 due to capital projects placed in service in 2024 and 2025.
Interest Expense** - Alliant Energy, IPL and WPL currently expect an increase in interest expense in 2025 compared to 2024 due to financings completed in 2024 and planned in 2025 as discussed above.

LIQUIDITY AND CAPITAL RESOURCES

The liquidity and capital resources summary included in the 2023 Form 10-K has not changed materially, except as described below.


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Liquidity Position - At September 30, 2024, Alliant Energy had $827 million of cash and cash equivalents, $670 million ($120 million at the parent company, $250 million at IPL and $300 million at WPL) of available capacity under the single revolving credit facility and $4 million of available capacity at IPL under its sales of accounts receivable program.

Capital Structure - Capital structures at September 30, 2024 were as follows (Long-term Debt (including current maturities) (LD); Short-term Debt (SD); Common Equity (CE)):

636 637 638

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


	Alliant Energy		IPL		WPL
	2024	2023	2024	2023	2024	2023
Cash, cash equivalents and restricted cash, January 1	$63	$24	$53	$15	$7	$5
Cash flows from (used for):
Operating activities	913	622	231	191	651	437
Investing activities	(940)	(952)	(332)	(177)	(464)	(680)
Financing activities	794	515	804	159	(125)	254
Net increase	767	185	703	173	62	11
Cash, cash equivalents and restricted cash, September 30	$830	$209	$756	$188	$69	$16

Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for the nine months ended September 30, 2024 compared to the same period in 2023 (in millions):


	Alliant Energy	IPL	WPL
Changes in income taxes paid/received (a)	$164	$78	$99
Higher collections from WPL’s retail electric and gas base rate increases	125	—	125
Timing of WPL’s fuel-related cost recoveries from retail electric customers	15	—	15


Timing of intercompany payments and receipts	—	(36)	(21)
Changes in interest payments	(46)	(15)	(17)
Changes in the sales of accounts receivable at IPL	(38)	(38)	—
Changes in gas stored underground	(27)	(11)	(16)



Decreased collections from IPL’s and WPL’s retail customers caused by temperature impacts on electric and gas sales	(26)	(14)	(12)
Other (primarily due to other changes in working capital)	124	76	41
	$291	$40	$214

(a)Refer to the cash flows statements for details of renewable tax credits transferred to other corporate taxpayers during the nine months ended September 30, 2024.

Investing Activities - The following items contributed to increased (decreased) investing activity cash flows for the nine months ended September 30, 2024 compared to the same period in 2023 (in millions):


	Alliant Energy	IPL	WPL
Changes in the amount of cash receipts on sold receivables	$93	$93	$—
(Higher) lower utility construction and acquisition expenditures (a)	(79)	(275)	196
Higher non-utility construction and acquisition expenditures	(62)	—	—

Other	60	27	20
	$12	($155)	$216

(a)Largely due to higher expenditures for WPL’s battery storage and IPL’s solar generation, partially offset by lower expenditures for 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, changing costs of projects due to market conditions, changes in expected load growth, improvements in technology, and improvements to ensure resiliency and reliability of the electric and gas distribution systems. Refer to “2024 Highlights” for discussion of an electric distribution system investment cap included in IPL’s rate review settlement agreement, which was approved by the IUC in September 2024. Construction and acquisition expenditures for 2024 through 2028 are currently anticipated as follows (in millions), which are focused on transitioning to cleaner sources of energy, adding generation to meet growing customer demand for electricity, and strengthening the resiliency and reliability of the electric grid, and include renewable generation and battery storage projects, dispatchable gas generation projects, converting certain coal-fired EGUs to natural gas, and wind repowering projects. Cost estimates represent Alliant Energy’s, IPL’s and WPL’s portion of construction expenditures and exclude allowance for funds used during construction and capitalized interest, if applicable.


	Alliant Energy					IPL					WPL
	2024	2025	2026	2027	2028	2024	2025	2026	2027	2028	2024	2025	2026	2027	2028
Generation:
Renewables and battery storage projects	$915	$800	$1,115	$1,325	$1,340	$660	$455	$540	$595	$565	$255	$345	$575	$730	$775
Gas projects	90	390	570	780	655	40	145	175	365	355	15	195	365	415	300
Other	120	130	120	55	55	60	65	55	25	15	60	65	65	30	40
Distribution:
Electric systems	615	585	570	560	580	345	310	275	280	280	270	275	295	280	300
Gas systems	80	80	85	85	85	35	35	40	40	40	45	45	45	45	45
Other	205	220	220	215	245	50	45	50	60	45	45	30	25	30	30
	$2,025	$2,205	$2,680	$3,020	$2,960	$1,190	$1,055	$1,135	$1,365	$1,300	$690	$955	$1,370	$1,530	$1,490

Financing Activities - The following items contributed to increased (decreased) financing activity cash flows for the nine months ended September 30, 2024 compared to the same period in 2023 (in millions):


	Alliant Energy	IPL	WPL
Higher net proceeds from issuance of long-term debt	$455	$347	$—
Lower payments to retire long-term debt	99	—	—
Higher (lower) capital contributions from IPL’s and WPL’s parent company, Alliant Energy	—	265	(190)
Lower net proceeds from common stock issuances	(183)	—	—
(Higher) lower common stock dividends	(28)	59	(9)
Net changes in the amount of commercial paper and other short-term borrowings outstanding	(4)	—	(148)


Other	(60)	(26)	(32)
	$279	$645	($379)

Common Stock Issuances and Common Stock Dividends - Refer to Note 6 for discussion of common stock issuances by Alliant Energy in 2024. Refer to “Results of Operations” for discussion of expected future issuances of common stock and common stock dividends in 2025.

Long-term Debt - Refer to Note 7 (b) for discussion of various issuances and/or retirements of long-term debt by AEF, IPL and WPL in 2024. Refer to “Results of Operation s” for discussion of expected future issuances and retirements of long-term debt in 2025.

Impact of Credit Ratings on Liquidity and Collateral Obligations -

Ratings Triggers - In March 2024, Standard & Poor’s Ratings Services changed Alliant Energy’s and IPL’s outlooks from stable to negative. These outlook changes are not expected to have a material impact on Alliant Energy’s and IPL’s liquidity or collateral obligations.

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 2023 Form 10-K and has not changed materially from the items reported in the 2023 Form 10-K, except for the items described in Notes 4, 7 and 1 4.


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OTHER MATTERS

Critical Accounting Estimates - The summary of critical accounting estimates included in the 2023 Form 10-K has not changed materially, except as described below.

Regulatory Assets and Regulatory Liabilities - In May 2023, IPL retired the Lansing Generating Station. IPL was previously allowed a full recovery of and a full return on this EGU from both its retail and wholesale customers. In September 2024, the IUC approved IPL’s June 2024 settlement agreement with certain stakeholders for IPL’s retail electric rate review for the October 2024 through September 2025 forward-looking Test Period. The agreement includes a return of the remaining net book value of Lansing; however, the agreement does not include a return on the remaining net book value of Lansing, therefore the return on the remaining net book value is no longer recoverable from IPL’s retail electric customers. As a result, a pre-tax non-cash charge of $60 million was recorded to “Asset valuation charge for IPL’s Lansing Generating Station” in Alliant Energy’s and IPL’s income statements for the nine months ended September 30, 2024, with a corresponding decrease in Alliant Energy’s and IPL’s assets retired early regulatory assets.

Long-Lived Assets -

Regulated Operations -

Generating Units Subject to Early Retirement - In May 2024, WPL announced updated plans to convert the coal-fired Edgewater Unit 5 to natural gas in 2028, subject to regulatory approvals. WPL previously planned to retire the EGU by June 1, 2025. As a result, Alliant Energy and WPL concluded Edgewater Unit 5 no longer meets the criteria to be considered probable of abandonment as of September 30, 2024. Refer to Note 3 for further discussion of Edgewater Unit 5.

Solar Generation Projects Recently Completed or Under Construction - Alliant Energy and WPL currently expect construction costs associated with WPL’s approximately 1,100 MW of new solar generation will exceed the construction cost estimates previously approved by the PSCW by approximately $195 million. In February 2024, the PSCW issued an order approving deferral of the incremental solar generation construction costs. The PSCW’s order did not authorize a deferral for the return on such costs. In March 2024, WPL filed for judicial review of the PSCW’s retail electric rate review order (2024/2025 forward-looking Test Period) and solar generation construction cost deferral order related to the recovery and deferral of the return on the incremental solar generation construction costs in 2024 and 2025. In September 2024, the PSCW issued an order modifying its February 2024 order and approving the deferral of the return on the incremental solar generation construction costs, and in October 2024, WPL withdrew its filing for judicial review. Alliant Energy and WPL concluded that there was not a probable disallowance of anticipated higher rate base amounts as of September 30, 2024 given construction costs were reasonably and prudently incurred.

In September 2024, the IUC approved IPL’s settlement agreement with certain stakeholders for its retail electric rate review for the October 2024 through September 2025 forward-looking Test Period. The settlement agreement allows IPL to recover construction costs associated with its 400 MW of new solar generation, including allowance for funds used during construction and transmission upgrade costs among other costs, above the original cost target of $1,650/kilowatt up to $1,837.5/kilowatt. The costs up to the original cost target of $1,650/kilowatt will earn a return on common equity of 10.25%. The costs between $1,650/kilowatt and $1,837.5/kilowatt will earn a return on common equity that is the same as other assets without advance rate-making principles, without having to establish that such costs were reasonably and prudently incurred. Alliant Energy and IPL currently do not expect these construction costs will exceed $1,837.5/kilowatt.

AROs - The fair value of a legal obligation associated with the retirement of an asset is recorded as a liability when an asset is placed in service, when a legal obligation is subsequently identified or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement costs. Alliant Energy, IPL and WPL estimate the fair value of their AROs using present value techniques, in which they make various assumptions, including estimates of the amounts and timing of future cash flows associated with retirement activities, inflation and discount rates. Estimates of the timing and amounts of future cash outlays are based on projections of when and how assets will be retired and the cost of future removal activities. The estimates are subject to change and future updates could have a material impact on Alliant Energy’s, IPL’s and WPL’s financial condition and results of operations. In the second quarter of 2024, substantially due to the enactment of the revised CCR Rule, which significantly expands the scope of regulation to include coal ash ponds at sites that no longer produce electricity and inactive landfills, Alliant Energy, IPL and WPL recorded additional AROs of $355 million, $102 million and $253 million, respectively. These amounts are expected to be adjusted in the future as additional information is obtained for the specific site closure plans, including the determination of whether or not individual sites are considered legal obligations and the acceptance and approval of compliance approaches, which could change management assumptions and result in a material change to the recorded ARO amounts. Refer to Note 11 for further discussion of AROs.

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