Detailed Narrative
Large Load Customer Development and Pipeline
Alliant Energy is actively integrating significant large load customers, expecting a 60% increase in demand by 2031. Google has energized its transmission service in Cedar Rapids, Iowa, and is ramping load. QTS is making substantial progress on its 7-building data center campus in Cedar Rapids, with initial energization of 300 megawatts anticipated later this year. Meta has entered the vertical construction phase for its data center in Beaver Dam, Wisconsin. The company's customer pipeline currently represents between 2 and 4 gigawatts of potential future load, with QTS's second Iowa project in Clinton (900 megawatts) planning an ICR filing later this year, and a recently signed 370-megawatt data center agreement in Iowa.
Customer Benefits and Regulatory Approach
The company's strategy ensures large load customers pay their own cost of service, which helps existing customers by expanding the local tax base and creating opportunities to reduce costs. A study by the Brow Group reinforces that large new electricity users can improve affordability for existing customers. Alliant Energy amended its fiber conduit lease agreement with Meta and its agreement with QTS Cedar Rapids to support accelerated load growth, allowing QTS to accelerate its load ramp with firm and nonfirm transmission.
Financing Strategy and Equity Needs
Alliant Energy has a disciplined financing strategy to support its 4-year capital investment plan, including cash from operations, tax credit monetization, and new financings (debt, hybrid instruments, common equity). The company has proactively addressed its stated equity needs, raising approximately $1.8 billion of the $2.4 billion announced common equity needs through 2029 via forward equity agreements. This effectively addresses equity needs through 2028, leaving approximately $500 million to be raised through 2029 (excluding DRIP).
Regulatory Progress and Project Execution
In Wisconsin, the company received approval for Meta's individual customer rate agreement in Beaver Dam and expects to file a broader large load tariff later this quarter. Approval was also granted for the expansion of the Bent Tree wind farm, adding 150 megawatts. In Iowa, generation certificates were filed for the 720-megawatt Morgan Valley and 1.2 gigawatt Riverhawk simple cycle natural gas projects, and a 125-megawatt energy storage project. The final two generation enhancement projects at Nina and Sheboygan (260 megawatts) were placed into service, and construction began on the 720-megawatt Bobcat Energy Center and 95-megawatt Rice project.
Load Growth and O&M Trends
Excluding weather impact🌐s, second quarter electric sales were approximately 3% higher year-over-year, driven by continued strength from Wisconsin commercial and industrial customers and initial data center loads ramping in Iowa. Higher operations and maintenance (O&M) expenses in the first half of the year were related to business growth, including generation outages and investments in reliability. The company anticipates a lighter O&M spend in the second half but may continue investments if retail sales remain high to ensure reliability and customer service.