Company Quick10K Filing
Quick10K
Alliant Energy
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$46.28 237 $10,990
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-06-17 Other Events, Exhibits
8-K 2019-05-16 Shareholder Vote
8-K 2019-05-02 Earnings, Exhibits
8-K 2019-02-21 Earnings, Exhibits
8-K 2019-02-11 Officers
8-K 2018-12-13 Officers
8-K 2018-12-13 Enter Agreement, Other Events, Exhibits
8-K 2018-12-13 Amend Bylaw, Other Events, Exhibits
8-K 2018-11-06 Earnings, Exhibits
8-K 2018-09-19 Other Events, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-07-25 Officers, Amend Bylaw, Exhibits
8-K 2018-06-06 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-05-17 Shareholder Vote
8-K 2018-04-26 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-03-09 Officers, Amend Bylaw, Exhibits
8-K 2018-02-22 Earnings, Exhibits
8-K 2018-01-15 Shareholder Rights, Exhibits
ALV Autoliv 6,450
ROLL RBC Bearings 3,410
URBN Urban Outfitters 2,940
AXGN Axogen 936
ARVN Arvinas 691
GRAM Grana & Montero 619
PRGX Prgx Global 175
VVUS Vivus 42
VXEL Vitaxel Group 0
FIL American Cryostem 0
LNT 2019-03-31
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Note 1. Summary of Significant Accounting Policies
Note 1(C) New Accounting Standards -
Note 2. Regulatory Matters
Note 3. Receivables
Note 4. Investments and Acquisitions
Note 5. Common Equity
Note 6. Debt
Note 7. Leases
Note 8. Revenues
Note 9. Income Taxes
Note 10. Benefit Plans
Note 10(A) Pension and Opeb Plans -
Note 11. Asset Retirement Obligations
Note 12. Derivative Instruments
Note 13. Fair Value Measurements
Note 14. Commitments and Contingencies
Note 14(C) Guarantees and Indemnifications -
Note 14(D) Environmental Matters -
Note 15. Segments of Business
Note 16. Related Parties
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 lnt331201910-qex311.htm
EX-31.2 lnt331201910-qex312.htm
EX-31.3 lnt331201910-qex313.htm
EX-31.4 lnt331201910-qex314.htm
EX-31.5 lnt331201910-qex315.htm
EX-31.6 lnt331201910-qex316.htm
EX-32.1 lnt331201910-qex321.htm
EX-32.2 lnt331201910-qex322.htm
EX-32.3 lnt331201910-qex323.htm

Alliant Energy Earnings 2019-03-31

LNT 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 lnt331201910-q.htm 10-Q Document

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 March 31, 2019
 
or
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    

alliantenergylogo.jpg
Commission
File Number
 
Name of Registrant, State of Incorporation,
Address of Principal Executive Offices and Telephone Number
 
IRS Employer
Identification Number
1-9894
 
ALLIANT ENERGY CORPORATION
 
39-1380265
 
 
(a Wisconsin corporation)
 
 
 
 
4902 N. Biltmore Lane
 
 
 
 
Madison, Wisconsin 53718
 
 
 
 
Telephone (608) 458-3311
 
 
 
 
 
1-4117
 
INTERSTATE POWER AND LIGHT COMPANY
 
42-0331370
 
 
(an Iowa corporation)
 
 
 
 
Alliant Energy Tower
 
 
 
 
Cedar Rapids, Iowa 52401
 
 
 
 
Telephone (319) 786-4411
 
 
 
 
 
0-337
 
WISCONSIN POWER AND LIGHT COMPANY
 
39-0714890
 
 
(a Wisconsin corporation)
 
 
 
 
4902 N. Biltmore Lane
 
 
 
 
Madison, Wisconsin 53718
 
 
 
 
Telephone (608) 458-3311
 
 
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.

Indicate by check mark whether the registrants (1) have 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 registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.    Yes   No 
Indicate by check mark whether the registrants have 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 registrants were required to submit such files).    Yes   No 
Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies, or emerging growth companies. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large Accelerated Filer
  
Accelerated Filer
  
Non-accelerated Filer
  
Smaller Reporting Company
 
Emerging Growth Company
Alliant Energy Corporation
  
 
  
 
  
 
 
 
Interstate Power and Light Company
 
  
 
  
  
 
 
 
Wisconsin Power and Light 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.
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).    Yes   No 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Alliant Energy Corporation
Common Stock, $0.01 Par Value
LNT
Nasdaq Global Select Market
Interstate Power and Light Company
5.100% Series D Cumulative Perpetual Preferred Stock, $0.01 Par Value
IPLDP
Nasdaq Global Select Market
Number of shares outstanding of each class of common stock as of March 31, 2019:
Alliant Energy Corporation
Common stock, $0.01 par value, 237,394,409 shares outstanding
 
 
Interstate Power and Light Company
Common stock, $2.50 par value, 13,370,788 shares outstanding (all of which 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 of which are owned beneficially and of record by Alliant Energy Corporation)




TABLE OF CONTENTS
 
Page



DEFINITIONS
The following abbreviations or acronyms used in this report are defined below:
Abbreviation or Acronym
Definition
Abbreviation or Acronym
Definition
2018 Form 10-K
Combined Annual Report on Form 10-K filed by Alliant Energy, IPL and WPL for the year ended Dec. 31, 2018
Fuel-related
Electric production fuel and purchased power
AEF
Alliant Energy Finance, LLC
GAAP
U.S. generally accepted accounting principles
Alliant Energy
Alliant Energy Corporation
IPL
Interstate Power and Light Company
ATC
American Transmission Company LLC
IUB
Iowa Utilities Board
ATC Holdings
Interest in American Transmission Company LLC and ATC Holdco LLC
MDA
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Corporate Services
Alliant Energy Corporate Services, Inc.
MISO
Midcontinent Independent System Operator, Inc.
DAEC
Duane Arnold Energy Center
MWh
Megawatt-hour
Dth
Dekatherm
N/A
Not applicable
EGU
Electric generating unit
Note(s)
Combined Notes to Condensed Consolidated Financial Statements
EPA
U.S. Environmental Protection Agency
OPEB
Other postretirement benefits
EPS
Earnings per weighted average common share
PPA
Purchased power agreement
Federal Tax Reform
Tax Cuts and Jobs Act
U.S.
United States of America
Financial Statements
Condensed Consolidated Financial Statements
Whiting Petroleum
Whiting Petroleum Corporation
FTR
Financial transmission right
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:

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, environmental compliance and remediation costs, deferred expenditures, deferred tax assets, tax expense, capital expenditures, and remaining costs related to EGUs that may be permanently closed, earning their authorized rates of return, and the payments to their parent of expected levels of dividends;
federal and state regulatory or governmental actions, including the impact of energy, tax, financial and health care legislation, and regulatory agency orders;
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;
the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire;
the direct or indirect effects resulting from terrorist incidents, including physical attacks and cyber attacks, or responses to such incidents;
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;
employee workforce factors, including changes in key executives, ability to hire and retain employees with specialized skills, ability to create desired corporate culture, collective bargaining agreements and negotiations, work stoppages or restructurings;
weather effects on results of utility operations;

 
1
 


issues associated with environmental remediation and environmental compliance, including compliance with all environmental and emissions permits, the Coal Combustion Residuals Rule, future changes in environmental laws and regulations, including the EPA’s regulations for carbon dioxide emissions reductions from new and existing fossil-fueled EGUs, and litigation associated with environmental requirements;
the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, state natural resources agencies or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims;
continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;
inflation and interest rates;
the impact of the economy in IPL’s and WPL’s service territories and the resulting impacts on sales volumes, margins and the ability to collect unpaid bills;
the ability to complete construction of wind projects within the cost caps set by regulators and to meet all requirements to qualify for the full level of production tax credits;
changes in the price of delivered natural gas, purchased electricity and coal due to shifts in supply and demand caused by market conditions and regulations;
disruptions in the supply and delivery of natural gas, purchased electricity and coal;
changes in the price of transmission services and the ability to recover the cost of transmission services in a timely manner;
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;
issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, 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 costs through rates;
impacts that storms or natural disasters may have on Alliant Energy’s, IPL’s and WPL’s operations and recovery of costs associated with restoration activities, or on the operations of Alliant Energy’s investments;
any material post-closing adjustments related to any past asset divestitures, including the sales of IPL’s Minnesota electric and natural gas assets, and Whiting Petroleum, which could result from, among other things, indemnification agreements, warranties, parental guarantees or litigation;
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, life expectancies and demographics;
material changes in employee-related benefit and compensation costs;
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 due to further 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;
the impacts of adjustments made to deferred tax assets and liabilities from changes in the tax laws;
changes to the creditworthiness of counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters;
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
factors listed in MDA and Risk Factors in Item 1A in the 2018 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.

 
2
 


PART I. FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
For the Three Months
 
Ended March 31,
 
2019
 
2018
 
(in millions, except per share amounts)
Revenues:
 
 
 
Electric utility

$743.4

 

$708.7

Gas utility
215.8

 
185.6

Other utility
11.1

 
13.2

Non-utility
16.9

 
8.8

Total revenues
987.2

 
916.3

Operating expenses:
 
 
 
Electric production fuel and purchased power
218.4

 
203.2

Electric transmission service
123.0

 
126.4

Cost of gas sold
121.6

 
111.2

Other operation and maintenance
181.2

 
162.4

Depreciation and amortization
136.9

 
120.4

Taxes other than income taxes
29.3

 
27.0

Total operating expenses
810.4

 
750.6

Operating income
176.8

 
165.7

Other (income) and deductions:
 
 
 
Interest expense
66.3

 
59.2

Equity income from unconsolidated investments, net
(10.9
)
 
(21.3
)
Allowance for funds used during construction
(25.4
)
 
(14.9
)
Other
4.0

 
2.4

Total other (income) and deductions
34.0

 
25.4

Income before income taxes
142.8

 
140.3

Income taxes
15.1

 
16.8

Net income
127.7

 
123.5

Preferred dividend requirements of Interstate Power and Light Company
2.6

 
2.6

Net income attributable to Alliant Energy common shareowners

$125.1

 

$120.9

Weighted average number of common shares outstanding (basic)
236.5

 
231.4

Weighted average number of common shares outstanding (diluted)
236.6

 
231.4

Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted)

$0.53

 

$0.52


Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
3
 


ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
March 31,
2019
 
December 31,
2018
 
(in millions, except per
share and share amounts)
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents

$10.1

 

$20.9

Accounts receivable, less allowance for doubtful accounts
417.9

 
350.4

Production fuel, at weighted average cost
47.0

 
61.4

Gas stored underground, at weighted average cost
15.9

 
49.0

Materials and supplies, at weighted average cost
105.1

 
101.4

Regulatory assets
65.8

 
79.8

Other
153.4

 
122.2

Total current assets
815.2

 
785.1

Property, plant and equipment, net
12,665.2

 
12,462.4

Investments:
 
 
 
ATC Holdings
295.0

 
293.6

Other
138.6

 
137.7

Total investments
433.6

 
431.3

Other assets:
 
 
 
Regulatory assets
1,726.6

 
1,657.5

Deferred charges and other
72.8

 
89.7

Total other assets
1,799.4

 
1,747.2

Total assets

$15,713.4

 

$15,426.0

LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Current maturities of long-term debt

$256.5

 

$256.5

Commercial paper
514.7

 
441.2

Accounts payable
387.7

 
543.3

Regulatory liabilities
179.8

 
142.7

Other
249.0

 
260.4

Total current liabilities
1,587.7

 
1,644.1

Long-term debt, net (excluding current portion)
5,362.2

 
5,246.3

Other liabilities:
 
 
 
Deferred tax liabilities
1,642.0

 
1,603.1

Regulatory liabilities
1,302.6

 
1,350.5

Pension and other benefit obligations
493.6

 
509.1

Other
442.9

 
287.2

Total other liabilities
3,881.1

 
3,749.9

Commitments and contingencies (Note 14)


 


Equity:
 
 
 
Alliant Energy Corporation common equity:
 
 
 
Common stock - $0.01 par value - 480,000,000 shares authorized; 237,394,409 and 236,063,279 shares outstanding
2.4

 
2.4

Additional paid-in capital
2,100.0

 
2,045.5

Retained earnings
2,587.3

 
2,545.9

Accumulated other comprehensive income
2.4

 
1.7

Shares in deferred compensation trust - 375,542 and 384,580 shares at a weighted average cost of $25.93 and $25.60 per share
(9.7
)
 
(9.8
)
Total Alliant Energy Corporation common equity
4,682.4

 
4,585.7

Cumulative preferred stock of Interstate Power and Light Company
200.0

 
200.0

Total equity
4,882.4

 
4,785.7

Total liabilities and equity

$15,713.4

 

$15,426.0


Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
4
 


ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
For the Three Months
 
Ended March 31,
 
2019
 
2018
 
(in millions)
Cash flows from operating activities:
 
 
 
Net income

$127.7

 

$123.5

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation and amortization
136.9

 
120.4

Deferred tax expense and tax credits
21.7

 
17.6

Other
(10.1
)
 
(14.8
)
Other changes in assets and liabilities:
 
 
 
Accounts receivable
(121.6
)
 
(80.6
)
Gas stored underground
33.1

 
28.2

Accounts payable
(42.7
)
 
(59.6
)
Regulatory liabilities
14.1

 
34.2

Other
22.0

 
(12.6
)
Net cash flows from operating activities
181.1

 
156.3

Cash flows used for investing activities:
 
 
 
Construction and acquisition expenditures:
 
 
 
Utility business
(374.0
)
 
(335.2
)
Other
(32.1
)
 
(20.3
)
Cash receipts on sold receivables
53.4

 
217.3

Other
(12.1
)
 
(14.0
)
Net cash flows used for investing activities
(364.8
)
 
(152.2
)
Cash flows from (used for) financing activities:
 
 
 
Common stock dividends
(83.7
)
 
(77.5
)
Proceeds from issuance of common stock, net
54.6

 
6.3

Net change in commercial paper
188.5

 
62.1

Other
16.6

 
(0.7
)
Net cash flows from (used for) financing activities
176.0

 
(9.8
)
Net decrease in cash, cash equivalents and restricted cash
(7.7
)
 
(5.7
)
Cash, cash equivalents and restricted cash at beginning of period
25.5

 
33.9

Cash, cash equivalents and restricted cash at end of period

$17.8

 

$28.2

Supplemental cash flows information:
 
 
 
Cash (paid) refunded during the period for:
 
 
 
Interest, net of capitalized interest

($62.9
)
 

($54.2
)
Income taxes, net

$6.8

 

$—

Significant non-cash investing and financing activities:
 
 
 
Accrued capital expenditures

$167.5

 

$144.9

Beneficial interest obtained in exchange for securitized accounts receivable

$178.3

 

$120.9


Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
5
 


INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
For the Three Months
 
Ended March 31,
 
2019
 
2018
 
(in millions)
Revenues:
 
 
 
Electric utility

$419.8

 

$405.7

Gas utility
124.6

 
108.1

Steam and other
10.7

 
12.0

Total revenues
555.1

 
525.8

Operating expenses:
 
 
 
Electric production fuel and purchased power
128.9

 
114.6

Electric transmission service
87.7

 
90.8

Cost of gas sold
63.3

 
60.6

Other operation and maintenance
108.0

 
105.5

Depreciation and amortization
77.1

 
64.8

Taxes other than income taxes
16.6

 
13.9

Total operating expenses
481.6

 
450.2

Operating income
73.5

 
75.6

Other (income) and deductions:
 
 
 
Interest expense
29.4

 
29.8

Allowance for funds used during construction
(15.8
)
 
(7.4
)
Other
1.9

 
0.8

Total other (income) and deductions
15.5

 
23.2

Income before income taxes
58.0

 
52.4

Income taxes
2.1

 
3.1

Net income
55.9

 
49.3

Preferred dividend requirements
2.6

 
2.6

Earnings available for common stock

$53.3

 

$46.7

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.
Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
6
 


INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
March 31,
2019
 
December 31,
2018
 
(in millions, except per
share and share amounts)
ASSETS
 
Current assets:
 
 
 
Cash and cash equivalents

$3.9

 

$9.7

Accounts receivable, less allowance for doubtful accounts
209.5

 
153.5

Production fuel, at weighted average cost
31.2

 
44.8

Gas stored underground, at weighted average cost
5.4

 
26.1

Materials and supplies, at weighted average cost
56.9

 
55.4

Regulatory assets
27.0

 
39.2

Other
21.3

 
43.1

Total current assets
355.2

 
371.8

Property, plant and equipment, net
6,947.9

 
6,781.5

Other assets:
 
 
 
Regulatory assets
1,324.4

 
1,239.8

Deferred charges and other
19.5

 
18.3

Total other assets
1,343.9

 
1,258.1

Total assets

$8,647.0

 

$8,411.4

LIABILITIES AND EQUITY
 
Current liabilities:
 
 
 
Commercial paper

$—

 

$50.4

Accounts payable
227.3

 
304.9

Regulatory liabilities
107.3

 
90.0

Other
150.3

 
161.8

Total current liabilities
484.9

 
607.1

Long-term debt, net
2,667.8

 
2,552.3

Other liabilities:
 
 
 
Deferred tax liabilities
970.9

 
957.3

Regulatory liabilities
641.5

 
664.9

Pension and other benefit obligations
174.6

 
178.4

Other
365.3

 
220.7

Total other liabilities
2,152.3

 
2,021.3

Commitments and contingencies (Note 14)


 


Equity:
 
 
 
Interstate Power and Light Company common equity:
 
 
 
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding
33.4

 
33.4

Additional paid-in capital
2,322.8

 
2,222.8

Retained earnings
785.8

 
774.5

Total Interstate Power and Light Company common equity
3,142.0

 
3,030.7

Cumulative preferred stock
200.0

 
200.0

Total equity
3,342.0

 
3,230.7

Total liabilities and equity

$8,647.0

 

$8,411.4


Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
7
 


INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
For the Three Months
 
Ended March 31,
 
2019
 
2018
 
(in millions)
Cash flows from operating activities:
 
 
 
Net income

$55.9

 

$49.3

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation and amortization
77.1

 
64.8

Other
(10.1
)
 

Other changes in assets and liabilities:
 
 
 
Accounts receivable
(112.6
)
 
(99.7
)
Gas stored underground
20.7

 
16.7

Accounts payable
(15.0
)
 
(34.3
)
Regulatory liabilities
17.4

 
21.7

Other
43.3

 
(16.7
)
Net cash flows from operating activities
76.7

 
1.8

Cash flows used for investing activities:
 
 
 
Construction and acquisition expenditures
(261.3
)
 
(218.2
)
Cash receipts on sold receivables
53.4

 
217.3

Other
(13.9
)
 
(10.5
)
Net cash flows used for investing activities
(221.8
)
 
(11.4
)
Cash flows from financing activities:
 
 
 
Common stock dividends
(42.0
)
 
(41.9
)
Capital contributions from parent
100.0

 

Net change in commercial paper
64.6

 
45.9

Other
17.0

 
4.9

Net cash flows from financing activities
139.6

 
8.9

Net decrease in cash, cash equivalents and restricted cash
(5.5
)
 
(0.7
)
Cash, cash equivalents and restricted cash at beginning of period
12.4

 
7.2

Cash, cash equivalents and restricted cash at end of period

$6.9

 

$6.5

Supplemental cash flows information:
 
 
 
Cash (paid) refunded during the period for:
 
 
 
Interest

($36.0
)
 

($28.2
)
Income taxes, net

$6.8

 

$—

Significant non-cash investing and financing activities:
 
 
 
Accrued capital expenditures

$106.6

 

$68.3

Beneficial interest obtained in exchange for securitized accounts receivable

$178.3

 

$120.9


Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
8
 


WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
For the Three Months
 
Ended March 31,
 
2019
 
2018
 
(in millions)
Revenues:
 
 
 
Electric utility

$323.6

 

$303.0

Gas utility
91.2

 
77.5

Other
0.4

 
1.2

Total revenues
415.2

 
381.7

Operating expenses:
 
 
 
Electric production fuel and purchased power
89.5

 
88.6

Electric transmission service
35.3

 
35.6

Cost of gas sold
58.3

 
50.6

Other operation and maintenance
63.5

 
56.3

Depreciation and amortization
58.6

 
54.6

Taxes other than income taxes
11.9

 
12.0

Total operating expenses
317.1

 
297.7

Operating income
98.1

 
84.0

Other (income) and deductions:
 
 
 
Interest expense
25.8

 
24.7

Allowance for funds used during construction
(9.6
)
 
(7.5
)
Other
1.6

 
1.1

Total other (income) and deductions
17.8

 
18.3

Income before income taxes
80.3

 
65.7

Income taxes
14.6

 
11.7

Earnings available for common stock

$65.7

 

$54.0

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.
Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
9
 


WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
March 31,
2019
 
December 31,
2018
 
(in millions, except per
share and share amounts)
ASSETS
 
Current assets:
 
 
 
Cash and cash equivalents

$3.4

 

$8.7

Accounts receivable, less allowance for doubtful accounts
198.7

 
190.1

Production fuel, at weighted average cost
15.8

 
16.6

Gas stored underground, at weighted average cost
10.5

 
22.9

Materials and supplies, at weighted average cost
45.3

 
42.9

Regulatory assets
38.8

 
40.6

Other
103.5

 
62.8

Total current assets
416.0

 
384.6

Property, plant and equipment, net
5,322.8

 
5,287.3

Other assets:
 
 
 
Regulatory assets
402.2

 
417.7

Deferred charges and other
24.0

 
62.9

Total other assets
426.2

 
480.6

Total assets

$6,165.0

 

$6,152.5

LIABILITIES AND EQUITY
 
Current liabilities:
 
 
 
Current maturities of long-term debt

$250.0

 

$250.0

Commercial paper
138.4

 
105.5

Accounts payable
104.5

 
180.9

Regulatory liabilities
72.5

 
52.7

Other
112.5

 
105.5

Total current liabilities
677.9

 
694.6

Long-term debt, net (excluding current portion)
1,585.4

 
1,584.9

Other liabilities:
 
 
 
Deferred tax liabilities
601.0

 
582.0

Regulatory liabilities
661.1

 
685.6

Finance lease obligations - Sheboygan Falls Energy Facility
57.9

 
60.0

Pension and other benefit obligations
214.2

 
217.7

Other
188.3

 
178.2

Total other liabilities
1,722.5

 
1,723.5

Commitments and contingencies (Note 14)

 

Equity:
 
 
 
Wisconsin Power and Light Company common equity:
 
 
 
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding
66.2

 
66.2

Additional paid-in capital
1,309.0

 
1,309.0

Retained earnings
804.0

 
774.3

Total Wisconsin Power and Light Company common equity
2,179.2

 
2,149.5

Total liabilities and equity

$6,165.0

 

$6,152.5


Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
10
 


WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
For the Three Months
 
Ended March 31,
 
2019
 
2018
 
(in millions)
Cash flows from operating activities:
 
 
 
Net income

$65.7

 

$54.0

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation and amortization
58.6

 
54.6

Deferred tax expense and tax credits
14.8

 
6.7

Other
(2.0
)
 
(4.7
)
Other changes in assets and liabilities:
 
 
 
Accounts receivable
(10.3
)
 
18.7

Accounts payable
(28.7
)
 
(23.0
)
Other
24.1

 
35.4

Net cash flows from operating activities
122.2

 
141.7

Cash flows used for investing activities:
 
 
 
Construction and acquisition expenditures
(112.7
)
 
(117.0
)
Other
(7.6
)
 
(11.7
)
Net cash flows used for investing activities
(120.3
)
 
(128.7
)
Cash flows used for financing activities:
 
 
 
Common stock dividends
(36.0
)
 
(35.0
)
Net change in commercial paper
32.9

 
5.6

Other
(3.3
)
 
(1.9
)
Net cash flows used for financing activities
(6.4
)
 
(31.3
)
Net decrease in cash, cash equivalents and restricted cash
(4.5
)
 
(18.3
)
Cash, cash equivalents and restricted cash at beginning of period
9.2

 
24.2

Cash, cash equivalents and restricted cash at end of period

$4.7

 

$5.9

Supplemental cash flows information:
 
 
 
Cash paid during the period for:
 
 
 
Interest

($22.5
)
 

($21.5
)
Significant non-cash investing and financing activities:
 
 
 
Accrued capital expenditures

$57.3

 

$73.9


Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

 
11
 


ALLIANT ENERGY CORPORATION
INTERSTATE POWER AND LIGHT COMPANY
WISCONSIN POWER AND LIGHT COMPANY

COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 1(a) General - The interim unaudited Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, although management believes that the disclosures are adequate to make the information presented not misleading. These Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the latest combined Annual Report on Form 10-K.

In the opinion of management, all adjustments, which unless otherwise noted are normal and recurring in nature, necessary for a fair presentation of the results of operations, financial position and cash flows have been made. Results for the three months ended March 31, 2019 are not necessarily indicative of results that may be expected for the year ending December 31, 2019. A change in management’s estimates or assumptions could have a material impact on financial condition and results of operations during the period in which such change occurred. Certain prior period amounts in the Financial Statements and Notes have been reclassified to conform to the current period presentation for comparative purposes, including modifications to the presentation of cash receipts on sold receivables in the cash flows statements as discussed in Note 1(c).

NOTE 1(b) Leases - The determination of whether an arrangement qualifies as a lease occurs at the inception of the arrangement. Arrangements that qualify as leases are classified as either operating or finance. Operating and finance lease liabilities represent obligations to make payments arising from the lease. Operating and finance lease assets represent the right to use an underlying asset for the lease term and are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Leases with initial terms less than 12 months are not recognized as leases. For operating leases, an incremental borrowing rate, as determined at the lease commencement date, is used to determine the present value of the lease payments. For finance leases, the rate implicit in the lease is used to determine the present value of the lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the expected lease term. Finance lease expense is comprised of depreciation and interest expenses. Finance lease assets are depreciated on a straight-line basis over the shorter of the useful life of the underlying asset or the lease term.

NOTE 1(c) New Accounting Standards -
Leases - In February 2016, the Financial Accounting Standards Board issued an accounting standard requiring lease assets and lease liabilities, including operating leases, to be recognized on the balance sheet. The accounting for capital leases, now referred to as finance leases, remains unchanged with the adoption of this standard. Alliant Energy, IPL and WPL adopted this standard on January 1, 2019 using an optional transition approach and there was no cumulative effect adjustment to the balance sheets as of January 1, 2019. Prior period amounts have not been restated to reflect the adoption of this standard and continue to be reported under the accounting standards in effect for those periods. Upon transition to the new standard, Alliant Energy, IPL and WPL elected the land easement transition practical expedient, for which existing land easements that were not previously accounted for as leases under the original accounting standards did not need to be evaluated under the new accounting standard. In addition, Alliant Energy, IPL and WPL evaluated land easements that were previously accounted for as leases and determined that the majority of these land easements relate to joint-use land sites, and do not meet the criteria for leases under the new accounting standard. Therefore, these land easement arrangements are no longer reflected as operating leases effective January 1, 2019. Refer to Note 7 for further discussion of leases.

Cash Flows Statements - On January 1, 2018, Alliant Energy and IPL adopted an accounting standard that requires classification of the consideration received for the beneficial interest obtained for transferring accounts receivable from IPL’s sales of accounts receivable program as an investing activity, instead of an operating activity. Alliant Energy and IPL currently use a method of presentation that allocates cash flows between operating and investing activities based on daily transactional activity. For the three months ended March 31, 2018, Alliant Energy and IPL initially utilized a method of presentation that allocated cash flows between operating and investing activities based on monthly transactional activity. The change in method of presentation to daily transactional activity increases Alliant Energy’s operating cash flows by $67.0 million to $156.3 million and increases IPL’s operating cash flows by $67.0 million to $1.8 million for the three months ended March 31, 2018.

 
12
 



NOTE 2. REGULATORY MATTERS
Regulatory Assets and Regulatory Liabilities -
Regulatory assets were comprised of the following items (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
Tax-related

$802.9

 

$820.6

 

$770.2

 

$783.1

 

$32.7

 

$37.5

Pension and OPEB costs
532.6

 
542.3

 
269.3

 
274.0

 
263.3

 
268.3

Asset retirement obligations
112.1

 
110.8

 
77.5

 
76.3

 
34.6

 
34.5

EGUs retired early
107.3

 
111.6

 
53.6

 
55.4

 
53.7

 
56.2

IPL’s DAEC PPA amendment
106.5

 

 
106.5

 

 

 

Emission allowances
23.0

 
23.6

 
23.0

 
23.6

 

 

Derivatives
16.9

 
28.0

 
8.0

 
15.1

 
8.9

 
12.9

Other
91.1

 
100.4

 
43.3

 
51.5

 
47.8

 
48.9

 

$1,792.4

 

$1,737.3

 

$1,351.4

 

$1,279.0

 

$441.0

 

$458.3


Regulatory liabilities were comprised of the following items (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
 
March 31,
2019
 
December 31,
2018
Tax-related

$858.1

 

$890.6

 

$366.2

 

$390.1

 

$491.9

 

$500.5

Cost of removal obligations
402.7

 
401.2

 
273.4

 
273.3

 
129.3

 
127.9

Electric transmission cost recovery
104.8

 
104.0

 
53.0

 
47.7

 
51.8

 
56.3

Commodity cost recovery
43.2

 
16.8

 
32.2

 
11.9

 
11.0

 
4.9

WPL’s earnings sharing mechanism
25.0

 
25.4

 

 

 
25.0

 
25.4

Other
48.6

 
55.2

 
24.0

 
31.9

 
24.6

 
23.3

 

$1,482.4

 

$1,493.2

 

$748.8

 

$754.9

 

$733.6

 

$738.3


IPL’s DAEC PPA Amendment - In January 2019, IPL incurred an obligation to make a September 2020 buyout payment of $110 million in exchange for shortening the term of IPL’s DAEC nuclear generation PPA by five years. The IUB approved recovery of the buyout payment from IPL’s retail customers over a five-year period following the payment. The offsetting obligation has been discounted and is recorded in “Other liabilities” on Alliant Energy’s and IPL’s balance sheets.

Utility Rate Reviews
IPL’s Retail Electric Rate Review (2020 Forward Test Period) - In March 2019, IPL filed a request with the IUB to increase annual electric base rates for its Iowa retail electric customers by $204 million, based on a 2020 forward-looking Test Period. IPL currently expects the proposed retail electric base rate increase to be largely offset by cost reductions in non-base rate factors, including lower electric transmission, fuel-related and energy efficiency costs. IPL concurrently filed for interim retail electric rates based on 2018 historical data as adjusted for certain known and measurable changes occurring in the first quarter of 2019. An interim retail electric rate base increase of $90 million, on an annual basis, was implemented effective April 1, 2019. Implementing interim rates does not require regulatory approval; however, interim rates are subject to refund pending the IUB’s final rate review decision. Interveners have challenged, among other issues, the return on common equity percentage used in interim rates, and IPL expects that the IUB will address this issue in its final decision. The IUB generally must decide on requests for retail rate changes within 10 months of the date of the application for which changes are filed. IPL currently expects a final decision from the IUB in the fourth quarter of 2019 on the interim rate increase, as well as the remaining $114 million of final rates, which would be effective in the first quarter of 2020. The key drivers for IPL’s request included recovery of capital projects, including new wind generation.

IPL’s Retail Gas Rate Review (2020 Forward Test Period) - In March 2019, IPL filed a request with the IUB to increase annual gas base rates for its Iowa retail gas customers by $21 million, based on a 2020 forward-looking Test Period. IPL currently expects the proposed retail gas base rate increase will be more than offset by cost reductions in non-base rate factors, including lower cost of gas sold and energy efficiency costs. The key drivers for IPL’s request included recovery of capital projects. IPL currently expects a decision from the IUB in the fourth quarter of 2019 with final rates effective in the first quarter of 2020.


 
13
 


NOTE 3. RECEIVABLES
Sales of Accounts Receivable - IPL maintains a Receivables Purchase and Sale Agreement (Receivables Agreement) whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. The transfers of receivables meet the criteria for sale accounting established by the transfer of financial assets accounting rules. As of March 31, 2019, IPL had $21.0 million of available capacity under its sales of accounts receivable program. IPL’s maximum and average outstanding cash proceeds (based on daily outstanding balances) related to the sales of accounts receivable program for the three months ended March 31 were as follows (in millions):
 
2019
 
2018
Maximum outstanding aggregate cash proceeds

$108.0

 

$116.0

Average outstanding aggregate cash proceeds
81.0

 
61.1


The attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):
 
March 31, 2019
 
December 31, 2018
Customer accounts receivable

$169.9

 

$140.1

Unbilled utility revenues
86.8

 
97.1

Other receivables
0.1

 
0.1

Receivables sold to third party
256.8

 
237.3

Less: cash proceeds
69.0

 
108.0

Deferred proceeds
187.8

 
129.3

Less: allowance for doubtful accounts
9.5

 
9.9

Fair value of deferred proceeds

$178.3

 

$119.4


As of March 31, 2019, outstanding receivables past due under the Receivables Agreement were $38.8 million. Additional attributes of IPL’s receivables sold under the Receivables Agreement for the three months ended March 31 were as follows (in millions):
 
2019
 
2018
Collections

$555.8

 

$517.0

Write-offs, net of recoveries
5.5

 
6.1


NOTE 4. INVESTMENTS AND ACQUISITIONS
Unconsolidated Equity Investments - Alliant Energy’s equity (income) loss from unconsolidated investments accounted for under the equity method of accounting for the three months ended March 31 was as follows (in millions):
 
2019
 
2018
ATC Holdings

($9.5
)
 

($8.7
)
Non-utility wind farm in Oklahoma
(1.1
)
 
(12.1
)
Other
(0.3
)
 
(0.5
)
 

($10.9
)
 

($21.3
)

Non-utility Transportation Acquisitions - In the first quarter of 2019, Alliant Energy, through its wholly-owned non-utility subsidiaries, completed acquisitions of freight management companies located in Cedar Rapids, Iowa and Stoughton, Wisconsin. These acquisitions were purchased for $21 million, including contingent consideration of $8 million, which is expected to be paid within two years. The purchase price was largely allocated to intangibles and the remainder was allocated to working capital and property.

NOTE 5. COMMON EQUITY
Common Share Activity - A summary of Alliant Energy’s common stock activity was as follows:
Shares outstanding, January 1, 2019
236,063,279

Equity forward agreements
1,090,300

Shareowner Direct Plan issuances
142,090

Equity-based compensation plans
101,478

Other
(2,738
)
Shares outstanding, March 31, 2019
237,394,409



 
14
 


Equity Forward Agreements - In December 2018, Alliant Energy entered into forward sale agreements with various counterparties in connection with a public offering of 8,358,973 shares of Alliant Energy common stock. The initial forward sale price of $44.33 per share is subject to daily adjustment based on a floating interest rate factor, and will decrease by other fixed amounts specified in the forward sale agreements. In the first quarter of 2019, Alliant Energy settled $48 million under the forward sale agreements by delivering 1,090,300 shares of newly issued Alliant Energy common stock at a forward sale price of $44.13 per share. Alliant Energy used the net proceeds from the settlement for general corporate purposes. As of March 31, 2019, 96,261 shares were included in the calculation of diluted EPS related to the remaining securities under the forward sale agreements.

Changes in Shareowners’ Equity - A summary of changes in shareowners’ equity was as follows (in millions):
Alliant Energy
Total Alliant Energy Common Equity
 
 
 
 
 
 
 
 
 
 
 
Accumulated
 
Shares in
 
Cumulative
 
 
 
 
 
Additional
 
 
 
Other
 
Deferred
 
Preferred
 
 
 
Common
 
Paid-In
 
Retained
 
Comprehensive
 
Compensation
 
Stock
 
Total
 
Stock
 
Capital
 
Earnings
 
Income (Loss)
 
Trust
 
of IPL
 
Equity
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1

$2.4

 

$2,045.5

 

$2,545.9

 

$1.7

 

($9.8
)
 

$200.0

 

$4,785.7

Net income attributable to Alliant Energy common shareowners
 
 
 
 
125.1

 
 
 
 
 
 
 
125.1

Common stock dividends ($0.355 per share)
 
 
 
 
(83.7
)
 
 
 
 
 
 
 
(83.7
)
Equity forward settlements and Shareowner Direct Plan issuances


 
54.6

 
 
 
 
 
 
 
 
 
54.6

Equity-based compensation plans and other
 
 
(0.1
)
 
 
 
 
 
0.1

 
 
 

Other comprehensive income, net of tax
 
 
 
 
 
 
0.7

 
 
 
 
 
0.7

Ending balance, March 31

$2.4

 

$2,100.0

 

$2,587.3

 

$2.4

 

($9.7
)
 

$200.0

 

$4,882.4

Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1

$2.3

 

$1,845.5

 

$2,346.0

 

($0.5
)
 

($11.1
)
 

$200.0

 

$4,382.2

Net income attributable to Alliant Energy common shareowners
 
 
 
 
120.9

 
 
 
 
 
 
 
120.9

Common stock dividends ($0.335 per share)
 
 
 
 
(77.5
)
 
 
 
 
 
 
 
(77.5
)
Shareowner Direct Plan issuances
 
 
6.3

 
 
 
 
 
 
 
 
 
6.3

Equity-based compensation plans
 
 
(0.4
)
 
 
 
 
 
 
 
 
 
(0.4
)
Ending balance, March 31

$2.3

 

$1,851.4

 

$2,389.4

 

($0.5
)
 

($11.1
)
 

$200.0

 

$4,431.5

IPL
Total IPL Common Equity
 
 
 
 
 
 
 
Additional
 
 
 
Cumulative
 
 
 
Common
 
Paid-In
 
Retained
 
Preferred
 
Total
 
Stock
 
Capital
 
Earnings
 
Stock
 
Equity
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
Beginning balance, January 1

$33.4

 

$2,222.8

 

$774.5

 

$200.0

 

$3,230.7

Earnings available for common stock
 
 
 
 
53.3

 
 
 
53.3

Common stock dividends
 
 
 
 
(42.0
)
 
 
 
(42.0
)
Capital contribution from parent
 
 
100.0

 
 
 
 
 
100.0

Ending balance, March 31

$33.4

 

$2,322.8

 

$785.8

 

$200.0

 

$3,342.0

Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
Beginning balance, January 1

$33.4

 

$1,797.8

 

$678.5

 

$200.0

 

$2,709.7

Earnings available for common stock
 
 
 
 
46.7

 
 
 
46.7

Common stock dividends
 
 
 
 
(41.9
)
 
 
 
(41.9
)
Ending balance, March 31

$33.4

 

$1,797.8

 

$683.3

 

$200.0

 

$2,714.5


 
15
 


WPL
 
 
Additional
 
 
 
Total
 
Common
 
Paid-In
 
Retained
 
Common
 
Stock
 
Capital
 
Earnings
 
Equity
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Beginning balance, January 1

$66.2

 

$1,309.0

 

$774.3

 

$2,149.5

Earnings available for common stock
 
 
 
 
65.7

 
65.7

Common stock dividends
 
 
 
 
(36.0
)
 
(36.0
)
Ending balance, March 31

$66.2

 

$1,309.0

 

$804.0

 

$2,179.2

Three Months Ended March 31, 2018
 
 
 
 
 
 
 
Beginning balance, January 1

$66.2

 

$1,109.0

 

$706.3

 

$1,881.5

Earnings available for common stock
 
 
 
 
54.0

 
54.0

Common stock dividends
 
 
 
 
(35.0
)
 
(35.0
)
Ending balance, March 31

$66.2

 

$1,109.0

 

$725.3

 

$1,900.5


Comprehensive Income - For the three months ended March 31, 2019 and 2018, Alliant Energy’s other comprehensive income was not material; therefore, its comprehensive income was substantially equal to its net income and its comprehensive income attributable to Alliant Energy common shareowners was substantially equal to its net income attributable to Alliant Energy common shareowners for such periods. For the three months ended March 31, 2019 and 2018, IPL and WPL had no other comprehensive income; therefore, their comprehensive income was equal to their net income and their comprehensive income available for common stock was equal to their earnings available for common stock for such periods.

NOTE 6. DEBT
NOTE 6(a) Short-term Debt - In March 2019, Alliant Energy, IPL and WPL extended their single credit facility agreement by one year, which currently expires in August 2023. As of March 31, 2019, the short-term borrowing capacity under the agreement totaled $1 billion ($450 million for Alliant Energy at the parent company, $250 million for IPL and $300 million for WPL). Information regarding commercial paper classified as short-term debt was as follows (dollars in millions):
March 31, 2019
Alliant Energy
 
IPL
 
WPL
Commercial paper outstanding
$514.7
 
$—
 
$138.4
Commercial paper weighted average interest rates
2.6%
 
N/A
 
2.5%
Available credit facility capacity (a)
$370.3
 
$135.0
 
$161.6
 
Alliant Energy
 
IPL
 
WPL
Three Months Ended March 31
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Maximum amount outstanding (based on daily outstanding balances)
$600.6
 
$336.4
 
$50.4
 
$3.0
 
$195.1
 
$36.7
Average amount outstanding (based on daily outstanding balances)
$498.8
 
$310.1
 
$0.6
 
$—
 
$138.1
 
$11.5
Weighted average interest rates
2.7%
 
1.9%
 
2.8%
 
1.8%
 
2.5%
 
1.6%

(a)
Alliant Energy’s and IPL’s available credit facility capacities reflect outstanding commercial paper classified as both short- and long-term debt at March 31, 2019.

NOTE 6(b) Long-term Debt - As of March 31, 2019, $115.0 million of commercial paper was recorded in “Long-term debt, net” on Alliant Energy’s and IPL’s balance sheets due to the existence of a long-term credit facility that back-stops this commercial paper balance, along with Alliant Energy’s and IPL’s intent and ability to refinance these balances on a long-term basis. As of March 31, 2019, this commercial paper balance had a 2.7% interest rate.

In April 2019, IPL issued $300 million of 3.6% senior debentures due 2029. The senior debentures were issued as green bonds, and all of the net proceeds were allocated for the construction and development of IPL’s wind projects.

NOTE 7. LEASES
Operating Leases - Alliant Energy’s, IPL’s and WPL’s operating leases primarily include leases of space on telecommunication towers and leases of property. Operating lease details are as follows (dollars in millions):

 
16
 


 
Alliant Energy
 
IPL
 
WPL
March 31, 2019
 
 
 
 
 
Property, plant and equipment, net

$18

 

$10

 

$7

Other current liabilities

$3

 

$1

 

$1

Other liabilities
15

 
9

 
6

Total operating lease liabilities

$18

 

$10

 

$7

Three Months Ended March 31, 2019
 
 
 
 
 
Operating lease cost

$1

 

$—

 

$—

Weighted average remaining lease term
12 years

 
13 years

 
10 years

Weighted average discount rate
4
%
 
4
%
 
4
%

Finance Lease - WPL’s finance lease is an agreement for WPL to lease the Sheboygan Falls Energy Facility from AEF’s Non-utility Generation business through 2025, the initial lease term. WPL is responsible for the operation of the EGU and has exclusive rights to its output. This finance lease contains two lease renewal periods, which are not included in the finance lease obligation, as well as an option to purchase the facility at the end of the initial lease term. WPL’s retail and wholesale rates include recovery of the Sheboygan Falls Energy Facility lease payments. WPL’s finance lease details are as follows (dollars in millions):
March 31, 2019
 
Property, plant and equipment, net

$37

Other current liabilities

$8

Finance lease obligations - Sheboygan Falls Energy Facility
58

Total finance lease liabilities

$66

Three Months Ended March 31, 2019
 
Depreciation expense

$1

Interest expense
2

Total finance lease expense

$3

Remaining lease term
6 years

Discount rate
11
%

Expected Maturities - As of March 31, 2019, expected maturities of lease liabilities were as follows (in millions):
 
Remainder of 2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
 
Less: amount representing interest
 
Present value of minimum lease payments
Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alliant Energy

$2

 

$2

 

$2

 

$2

 

$2

 

$13

 

$23

 

$5

 

$18

IPL
1

 
1

 
1

 
1

 
1

 
9

 
14

 
4

 
10

WPL
1

 
1

 
1

 
1

 
1

 
3

 
8

 
1

 
7

WPL’s Finance Lease:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sheboygan Falls Energy Facility
11

 
15

 
15

 
15

 
15

 
20

 
91

 
25

 
66


Prior period amounts have not been restated to reflect the adoption of the new lease accounting standard and continue to be reported under the accounting standards in effect for those periods. As of December 31, 2018, future minimum operating (excluding contingent rentals) and capital lease payments were as follows (in millions):
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
 
Less: amount representing interest
 
Present value of minimum capital lease payments
Operating Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alliant Energy

$5

 

$5

 

$3