MADISON, WI – Alliant Energy Corp (NASDAQ:LNT) and its subsidiary Interstate Power and Light Company (IPL) announced today that they will record a one-time charge of approximately $60 million before taxes, or $45 million per net of taxes, in the next quarterly financial results. This non-monetary charge, equal to approximately $0.17 per diluted share, is related to a settlement agreement related to the review of IPL’s retail electricity rates.
The charge is the result of a recent agreement with the Office of Consumer Advocate and the Iowa Business Energy Coalition. Under the terms of the agreement, it was determined that IPL is not likely to earn a return from its retail customers on the regulatory asset associated with the now-retired, coal-fired Lansing Generating Station. This conclusion was reached on Thursday last week and the final tariffs are expected to be implemented later in the year.
Alliant Energy has cautioned that statements regarding this asset rating charge are forward-looking and subject to risks and uncertainties. These could potentially cause actual results to differ materially from those anticipated. Some of the risks include receiving final regulatory approvals and final asset valuations.
In other recent news, Alliant Energy Corporation’s wholly owned subsidiary, Alliant Energy Finance, LLC, launched a private offering of $375 million in senior unsecured notes due 2027. Proceeds from the offering are earmarked for redemption of commercial paper in circulation and for general corporate purposes. However, the company said it cannot guarantee that the offering will be completed as expected or at all.
At the same time, Alliant Energy reported earnings of $0.62 per share for the first quarter of 2024, despite unusually mild weather. The company also reaffirmed its 2024 earnings guidance of $2.99 to $3.13 per share, indicating a path to steady growth.
In addition to financial developments, Alliant Energy has made significant progress in expanding its renewable energy portfolio. Notably, the company has become the largest owner-operator of solar facilities in Wisconsin. Additionally, Alliant Energy issued a $300 million green bond and plans to refinance $800 million of debt, highlighting its ongoing efforts to strengthen its financial position. These recent developments reflect Alliant Energy’s commitment to financial stability and renewable energy.
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