Alliant Energy (LNT) Q2 FY26 earnings call: guidance and Q&A

Concerns about increasing political noise and potential moratoriums regarding data center development in Iowa, asking for management's perspective on the political landscape.

Lisa Barton stated that while some PJM narratives are being repeated, local moratoriums are not impacting their projects or pipeline. She emphasized that Iowa remains open for business, and growth helps keep rates flat for existing customers, reinforcing the benefits of data centers.

“I mean while it's always disappointing that some PJM narratives are being repeated more broadly, we tend to see just more from election standpoint, look, the map is self-explanatory by growing, we're able to keep rates flat in Iowa and the more we grow, the longer we can do that quite frankly.”

asked by Shahriar Pourreza · answered by Lisa Barton

Inquiring if the company will return to a specific EPS CAGR range in Q3, moving away from the '7% plus' guidance, given new growth opportunities.

Robert Durian confirmed they will update their 4- to 5-year capital expenditure plan in Q3 and provide more transparency and specificity on the EPS CAGR, potentially moving back to a range or more specific annual targets, acknowledging the lumpiness of capital managers.

“So more to come on that in Yes, we're evaluating probably wanting to probably provide more transparency in how we characterize more details in the future. And so historically, when we were going into last year, and we wanted to use the plus to give us a little more flexibility, but I think we'll have more confidence in when we get to the third quarter and provide a little more specificity if that will help the investors.”

asked by Shahriar Pourreza · answered by Robert Durian

Asking how the accelerated load ramp for QTS, enabled by recent amendments, impacts the financial plan, particularly regarding capital deployment and tax credit utilization.

Robert Durian stated that the CapEx plan is aligned with current ramp rates, so no significant change is expected there. However, higher revenues are anticipated in 2027 and 2028, which could benefit existing customers by reducing the need for tax credits and potentially extending the period before the next rate case. QTS currently has over 40 MW of load.

“Yes, Steve, I think about it, our CapEx plan is aligned with the ramp rates right now. So I wouldn't expect much of a change there for CapEx, but we are expecting to have higher revenues, specifically in the years 2027 and 2028. And what that really does for us. It really helps our existing customers in the sense of allows us to not use as many tax credits through the kind of the growth phase of our business here and could potentially translate into helping us to stay out over a longer period of time.”

asked by Stephen D’Ambrisi · answered by Robert Durian

Seeking clarification on whether the Linn County data center moratorium impacts Alliant Energy's projects in Cedar Rapids or potential expansions there.

Lisa Barton confirmed that the moratorium has no impact on their data center growth opportunities in Cedar Rapids, as it applies only to the unincorporated area of Linn County. She highlighted strong local advocacy for data centers.

“No impact -- it's the unincorporated area of Linn County. It has no impact. on the data center growth opportunity.”

asked by Andrew Weisel · answered by Lisa Barton

Asking about the impact of heightened credit requirements being circulated in Wisconsin on the potential for new sites and if it's shifting focus more towards Iowa.

Lisa Barton stated that Alliant will file a tariff in Wisconsin aligned with Excel's slice system approach. She noted that credit requirements apply to all large loads and that the commission is taking a measured approach. She expressed confidence that their track record with high-quality counterparties means no adverse impact on their growth trajectory.

“So with respect to tariffs, you've seen that a number of utilities have filed tariffs. So we will be filing a tariff in Wisconsin later this year. Ours will very much be aligned with Excel. We see that benefits associated with the slice system approach.”

asked by Nathan Richardson · answered by Lisa Barton

Asking about the potential benefits of a policy decision allowing self-funded network upgrades, in terms of CapEx or ease of customer activity.

Robert Durian views it as a potential opportunity for additional CapEx and customer benefits. He explained that if they can invest in transmission upgrades for their generation projects, their lower cost of capital could result in a win-win for investors and customers.

“But there is quite a few projects that we're building right now from a generation standpoint that will require some transmission upgrades that could provide us the opportunity if we so choose to invest in those for ourselves. We see that as a potential opportunity for not only additional CapEx, but it could provide some customer benefits as a result of our cost of capital being slightly lower than what we see with the transmission company.”

asked by Julien Dumoulin-Smith · answered by Robert Durian

Inquiring how much the QTS ramp-up and future data center growth could extend the current Iowa retail electric rate freeze beyond 2029.

Robert Durian confirmed their commitment to stay out of Iowa retail electric rate reviews through 2029. He stated that adding more data centers and accelerating load could provide an opportunity to stay out even longer, depending on the number of additional data centers signed up.

“So it will largely depend on how many additional data centers we sign up, probably more so than what I would consider the ramping if we can add several hundred megawatts more of data centers in multiple different examples, we could see an opportunity to potentially go beyond 2019 into the future.”

asked by Paul Fremont · answered by Robert Durian