Alliant Energy (LNT) Q1 FY26 earnings call: guidance and Q&A

Will the new 370 MW ESA and the 2-4 GW pipeline lead to more definable EPS guidance, given the current 7%+ growth and improving visibility?

Management will provide a full update on the resource plan and EPS growth trajectory, including the generation needed for the 370 MW, during the Q3 earnings call and at EEI.

“Our third quarter update will include a refreshed Iowa resource plan, reflecting any incremental load beyond the 3 gigawatts already in our plan as well as the impact of updated MISO accreditation assumptions. We expect to finance these incremental investments with a balanced mix of equity and debt to maintain a resilient financial profile.”

asked by Shahriar Pourreza · answered by Lisa Barton

Are hyperscalers still looking at Wisconsin, or are they more focused on Iowa due to local pushback in Wisconsin?

Iowa has more land and strong transmission, but conversations continue in Wisconsin. The company is awaiting a decision on its Beaver Dam facility and actively addresses concerns about existing customers paying for data center infrastructure.

“We are very much looking forward and awaiting a decision by the Wisconsin Public Utilities Commission with respect to our Dam facility. And there's rhetoric that's out there that I think is spillover, quite frankly, from PJM. We are actively addressing countering that as we mentioned in our remarks, we have our customer pledge, making sure that everybody knows that they are not paying for data centers, the cost of supporting data centers.”

asked by Shahriar Pourreza · answered by Lisa Barton

What is the typical dollar per kilowatt cost for simple cycle natural gas facilities being built to support new ESAs?

The company cannot disclose specific costs due to confidentiality agreements but expects them to be in line with market rates. The unit will be sized according to the resource plan, which will be updated at EEI.

“We cannot disclose the cost due to confidentiality agreements, but you can expect those to be in line with what you're seeing in the marketplace today.”

asked by Nicholas Campanella · answered by Lisa Barton

Should we expect future deals to be around 300-500 MW, or could there be larger 1 GW deals within the 2-4 GW pipeline?

There's no specific answer as opportunities vary in size. The 2-4 GW pipeline consists of mature opportunities with high confidence, including new entities and potential expansions from existing customers, with land control and transmission studies underway.

“So there really is no one specific answer to any of that. These represent conversations with all different size entities. What I can say about the 2% to 4% is, remember, we hold ourselves to a very high standard. These are mature opportunities where we have a higher level of confidence than maybe out there.”

asked by Nicholas Campanella · answered by Lisa Barton

Why is Alliant pursuing simple cycle gas turbines and batteries instead of larger baseload generation, and could these assets be converted to combined cycle gas turbines (CCGTs) later?

The strategy prioritizes speed to market, customer affordability, and flexibility, leveraging Iowa's wind-rich environment. Simple cycles and batteries work well for capacity needs. Simple cycles can be converted to combined cycles by adding a steam turbine if energy market needs change and data centers are interested.

“And what it also does is it allows us to -- when that energy market changes, when these data centers are interested in having that provided by us, we can also add basically the steam turbine to have the simple cycle converted into combined cycles.”

asked by Andrew Weisel · answered by Lisa Barton

How does the additional 370 MW load, and future large loads, impact the ability to extend the Iowa rate stay-out period beyond the current 5 years?

Incrementally, it will be beneficial as the company aims to capture margin from data center loads to share with other customers. However, it's too early to provide a definitive timeframe for extending the stay-out, as the load ramp is also a critical factor.

“Incrementally, it's going to be beneficial. When we go through the process of contracting these data center loads as well as the new generation need to support it. We're always focused on ensuring that we capture some level of margin such that we'll be able to share back with the rest of the customers, the differential between the revenue stream from those data centers and cost related to the generation.”

asked by Steve Debris · answered by Robert Durian