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Actionable news in LNT: ALLIANT ENERGY Corp,

SECURITIES AND EXCHANGE COMMISSION

CommissionFile NumberName of Registrant, State of Incorporation,Address of Principal Executive Offices and Telephone NumberIRS EmployerIdentification Number
1-9894ALLIANT ENERGY CORPORATION39-1380265
(a Wisconsin corporation)
4902 N. Biltmore Lane
Madison, Wisconsin 53718
Telephone (608) 458-3311
1-4117INTERSTATE POWER AND LIGHT COMPANY42-0331370
(an Iowa corporation)
Alliant Energy Tower
Cedar Rapids, Iowa 52401
Telephone (319) 786-4411
0-337WISCONSIN POWER AND LIGHT COMPANY39-0714890
(a Wisconsin corporation)
4902 N. Biltmore Lane
Madison, Wisconsin 53718
Telephone (608) 458-3311
Large Accelerated FilerAccelerated FilerNon-accelerated FilerSmaller Reporting CompanyEmerging Growth Company
Alliant Energy Corporation
Interstate Power and Light Company
Wisconsin Power and Light Company
Alliant Energy CorporationCommon stock, $0.01 par value, 231,204,360 shares outstanding
Interstate Power and Light CompanyCommon 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 CompanyCommon stock, $5 par value, 13,236,601 shares outstanding (all of which are owned beneficially and of record by Alliant Energy Corporation)
Page
Definitions1
Forward-looking Statements1
Part I. Financial Information3
Item 1. Condensed Consolidated Financial Statements (Unaudited)3
Alliant Energy Corporation3
Interstate Power and Light Company6
Wisconsin Power and Light Company9
Combined Notes to Condensed Consolidated Financial Statements12
1. Summary of Significant Accounting Policies12
2. Regulatory Matters13
3. Property, Plant and Equipment15
4. Receivables16
5. Investments17
6. Common Equity17
7. Debt18
8. Income Taxes19
9. Benefit Plans19
10. Fair Value Measurements21
11. Derivative Instruments24
12. Commitments and Contingencies24
13. Segments of Business27
14. Related Parties28
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations29
Item 3. Quantitative and Qualitative Disclosures About Market Risk42
Item 4. Controls and Procedures42
Part II. Other Information42
Item 1A. Risk Factors42
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds43
Item 6. Exhibits43
Signatures44
Abbreviation or AcronymDefinitionAbbreviation or AcronymDefinition
2016 Form 10-KCombined Annual Report on Form 10-K filed by Alliant Energy, IPL and WPL for the year ended Dec. 31, 2016ITCITC Midwest LLC
AEFAlliant Energy Finance, LLCIUBIowa Utilities Board
AFUDCAllowance for funds used during constructionMarshalltownMarshalltown Generating Station
Alliant EnergyAlliant Energy CorporationMDAManagement’s Discussion and Analysis of Financial Condition and Results of Operations
ATCAmerican Transmission CompanyMISOMidcontinent Independent System Operator, Inc.
ATIAE Transco Investments, LLCMWMegawatt
CDDCooling degree daysMWhMegawatt-hour
Corporate ServicesAlliant Energy Corporate Services, Inc.N/ANot applicable
DthDekathermNote(s)Combined Notes to Condensed Consolidated Financial Statements
EGUElectric generating unitNOxNitrogen oxide
EPAU.S. Environmental Protection AgencyOPEBOther postretirement benefits
EPSEarnings per weighted average common sharePSCWPublic Service Commission of Wisconsin
FERCFederal Energy Regulatory CommissionRiversideRiverside Energy Center
Financial StatementsCondensed Consolidated Financial StatementsRMTRMT, Inc.
FTRFinancial transmission rightSCRSelective catalytic reduction
Fuel-relatedElectric production fuel and purchased powerSO2Sulfur dioxide
GAAPU.S. generally accepted accounting principlesU.S.United States of America
HDDHeating degree daysWhiting PetroleumWhiting Petroleum Corporation
IPLInterstate Power and Light CompanyWPLWisconsin Power and Light Company
IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, earning a return on rate base additions and the recovery of costs, including fuel costs, operating costs, transmission costs, environmental compliance and remediation costs, deferred expenditures, deferred tax assets, 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;
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 qualify for the full level of production tax credits on planned new wind farms and the impact of changes to production tax credits for existing wind farms;
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;
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;
impacts on equity income from unconsolidated investments due to further potential changes to ATC LLC’s authorized return on equity;
issues associated with environmental remediation and environmental compliance, including compliance with the Consent Decree between WPL, the EPA and the Sierra Club, the Consent Decree between IPL, the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, the Coal Combustion Residuals Rule, the Clean Power Plan, 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;
impacts that storms or natural disasters in IPL’s and WPL’s service territories may have on their operations and recovery of costs associated with restoration activities;
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;
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;
impacts of IPL’s future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures and allocation of mixed service costs, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods;
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, warranties, parental guarantees or litigation;
continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;
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;
reputational damage from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions;
employee workforce factors, including changes in key executives, collective bargaining agreements and negotiations, work stoppages or restructurings;
changes in technology that alter the channels through which electric customers buy or utilize electricity;
the effect of accounting standards issued periodically by standard-setting bodies;
the impact of adjustments made to deferred tax assets and liabilities from state apportionment assumptions;
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 ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and
For the Three MonthsFor the Nine Months
Ended September 30,Ended September 30,
2017201620172016
(in millions, except per share amounts)
Operating revenues:
Electric utility
$840.6

$864.3

$2,199.1

$2,209.1
Gas utility45.8
39.5
262.7
248.7
Other utility11.2
9.4
34.4
35.0
Non-regulated9.3
11.4
29.9
30.2
Total operating revenues906.9
924.6
2,526.1
2,523.0
Operating expenses:
Electric production fuel and purchased power222.6
245.9
614.7
646.3
Electric transmission service121.0
138.6
363.3
396.8
Cost of gas sold15.0
12.5
135.5
132.3
Asset valuation charges for Franklin County wind farm
86.4

86.4
Other operation and maintenance169.1
148.6
467.1
438.2
Depreciation and amortization120.7
104.1
342.7
308.7
Taxes other than income taxes27.0
25.9
79.1
77.2
Total operating expenses675.4
762.0
2,002.4
2,085.9
Operating income231.5
162.6
523.7
437.1
Interest expense and other:
Interest expense53.9
48.8
159.0
144.8
Equity income from unconsolidated investments, net(10.1)(9.2)(32.9)(28.8)
Allowance for funds used during construction(9.6)(15.8)(36.7)(44.3)
Interest income and other(0.2)(0.1)(0.4)(0.3)
Total interest expense and other34.0
23.7
89.0
71.4
Income from continuing operations before income taxes197.5
138.9
434.7
365.7
Income taxes26.1
7.5
64.9
47.2
Income from continuing operations, net of tax171.4
131.4
369.8
318.5
Income (loss) from discontinued operations, net of tax
(0.4)1.4
(2.0)
Net income171.4
131.0
371.2
316.5
Preferred dividend requirements of Interstate Power and Light Company2.6
2.6
7.7
7.7
Net income attributable to Alliant Energy common shareowners
$168.8

$128.4

$363.5

$308.8
Weighted average number of common shares outstanding (basic and diluted)231.0
227.2
229.2
227.0
Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted):
Income from continuing operations, net of tax
$0.73

$0.57

$1.58

$1.37
Income (loss) from discontinued operations, net of tax

0.01
(0.01)
Net income
$0.73

$0.57

$1.59

$1.36
Amounts attributable to Alliant Energy common shareowners:
Income from continuing operations, net of tax
$168.8

$128.8

$362.1

$310.8
Income (loss) from discontinued operations, net of tax
(0.4)1.4
(2.0)
Net income
$168.8

$128.4

$363.5

$308.8
Dividends declared per common share
$0.315

$0.29375

$0.945

$0.88125
September 30,
2017
December 31,
2016
(in millions, except pershare and share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$9.2

$8.2
Accounts receivable, less allowance for doubtful accounts336.1
493.3
Production fuel, at weighted average cost80.9
98.1
Gas stored underground, at weighted average cost40.6
37.6
Materials and supplies, at weighted average cost99.1
86.6
Regulatory assets84.2
57.8
Other101.4
95.5
Total current assets751.5
877.1
Property, plant and equipment, net10,931.1
10,279.2
Investments:
ATC Investment339.2
317.6
Other119.4
20.0
Total investments458.6
337.6
Other assets:
Regulatory assets1,952.3
1,857.3
Deferred charges and other21.4
22.6
Total other assets1,973.7
1,879.9
Total assets
$14,114.9

$13,373.8
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt
$105.2

$4.6
Commercial paper390.3
244.1
Other short-term borrowings95.0

Accounts payable478.1
445.3
Regulatory liabilities145.1
186.2
Accrued taxes39.4
59.5
Other217.0
222.3
Total current liabilities1,470.1
1,162.0
Long-term debt, net (excluding current portion)4,255.1
4,315.6
Other liabilities:
Deferred tax liabilities2,774.7
2,570.2
Regulatory liabilities483.4
494.8
Pension and other benefit obligations481.3
489.9
Other296.1
279.3
Total other liabilities4,035.5
3,834.2
Commitments and contingencies (Note 12)



Equity:
Alliant Energy Corporation common equity:
Common stock - $0.01 par value - 480,000,000 shares authorized; 231,204,360 and 227,673,654 shares outstanding2.3
2.3
Additional paid-in capital1,838.2
1,693.1
Retained earnings2,324.8
2,177.0
Accumulated other comprehensive loss(0.4)(0.4)
Shares in deferred compensation trust - 454,532 and 441,695 shares at a weighted average cost of $23.52 and $22.71 per share(10.7)(10.0)
Total Alliant Energy Corporation common equity4,154.2
3,862.0
Cumulative preferred stock of Interstate Power and Light Company200.0
200.0
Total equity4,354.2
4,062.0
Total liabilities and equity
$14,114.9

$13,373.8
For the Nine Months
Ended September 30,
20172016
(in millions)
Cash flows from operating activities:
Net income
$371.2

$316.5
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization342.7
308.7
Deferred tax expense and tax credits102.7
76.7
Asset valuation charges for Franklin County wind farm
86.4
Other(7.1)(44.0)
Other changes in assets and liabilities:
Accounts receivable72.8
(101.0)
Sales of accounts receivable91.0
(4.0)
Regulatory assets(108.9)36.6
Regulatory liabilities(64.8)(66.5)
Deferred income taxes101.0
71.8
Other(17.2)(27.2)
Net cash flows from operating activities883.4
654.0
Cash flows used for investing activities:
Construction and acquisition expenditures:
Utility business(909.7)(743.6)
Alliant Energy Corporate Services, Inc. and non-regulated businesses(139.7)(43.3)
Other(22.9)15.1
Net cash flows used for investing activities(1,072.3)(771.8)
Cash flows from financing activities:
Common stock dividends(215.7)(199.8)
Proceeds from issuance of common stock, net143.2
20.4
Proceeds from issuance of long-term debt
300.0
Net change in commercial paper and other short-term borrowings281.2
78.5
Other(18.8)(2.4)
Net cash flows from financing activities189.9
196.7
Net increase in cash and cash equivalents1.0
78.9
Cash and cash equivalents at beginning of period8.2
5.8
Cash and cash equivalents at end of period
$9.2

$84.7
Supplemental cash flows information:
Cash paid during the period for:
Interest, net of capitalized interest
($158.5)
($140.7)
Income taxes, net
($11.4)
($8.3)
Significant non-cash investing and financing activities:
Accrued capital expenditures
$197.2

$99.9
For the Three MonthsFor the Nine Months
Ended September 30,Ended September 30,
2017201620172016
(in millions)
Operating revenues:
Electric utility
$489.0

$483.2

$1,217.6

$1,209.2
Gas utility27.4
23.9
147.2
142.6
Steam and other11.0
9.1
33.3
34.1
Total operating revenues527.4
516.2
1,398.1
1,385.9
Operating expenses:
Electric production fuel and purchased power122.5
125.0
330.0
324.8
Electric transmission service78.2
95.9
235.0
270.7
Cost of gas sold9.9
8.0
74.6
76.3
Other operation and maintenance104.4
94.8
288.7
279.8
Depreciation and amortization66.2
52.7
181.0
157.8
Taxes other than income taxes14.4
13.9
41.1
40.6
Total operating expenses395.6
390.3
1,150.4
1,150.0
Operating income131.8
125.9
247.7
235.9
Interest expense and other:
Interest expense27.9
25.5
83.5
75.4
Allowance for funds used during construction(4.7)(13.8)(25.1)(36.2)
Interest income and other(0.1)
(0.2)(0.1)
Total interest expense and other23.1
11.7
58.2
39.1
Income before income taxes108.7
114.2
189.5
196.8
Income tax benefit(14.3)(2.5)(18.6)(2.5)
Net income123.0
116.7
208.1
199.3
Preferred dividend requirements2.6
2.6
7.7
7.7
Earnings available for common stock
$120.4

$114.1

$200.4

$191.6
September 30,
2017
December 31,
2016
(in millions, except pershare and share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$4.7

$3.3
Accounts receivable, less allowance for doubtful accounts143.5
240.7
Production fuel, at weighted average cost56.7
70.3
Gas stored underground, at weighted average cost21.6
16.3
Materials and supplies, at weighted average cost52.6
46.5
Regulatory assets38.9
17.7
Other39.3
27.7
Total current assets357.3
422.5
Property, plant and equipment, net5,764.9
5,435.6
Other assets:
Regulatory assets1,552.0
1,441.1
Deferred charges and other8.5
5.5
Total other assets1,560.5
1,446.6
Total assets
$7,682.7

$7,304.7
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt
$100.0

$—
Commercial paper4.0

Accounts payable224.6
186.3
Accounts payable to associated companies56.4
43.3
Regulatory liabilities85.9
149.6
Accrued taxes39.3
53.8
Other92.8
88.8
Total current liabilities603.0
521.8
Long-term debt, net (excluding current portion)2,095.0
2,153.5
Other liabilities:
Deferred tax liabilities1,643.5
1,511.8
Regulatory liabilities298.9
281.2
Pension and other benefit obligations171.4
173.2
Other238.5
214.2
Total other liabilities2,352.3
2,180.4
Commitments and contingencies (Note 12)



Equity:
Interstate Power and Light Company common equity:
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding33.4
33.4
Additional paid-in capital1,697.8
1,597.8
Retained earnings701.2
617.8
Total Interstate Power and Light Company common equity2,432.4
2,249.0
Cumulative preferred stock200.0
200.0
Total equity2,632.4
2,449.0
Total liabilities and equity
$7,682.7

$7,304.7
For the Nine Months
Ended September 30,
20172016
(in millions)
Cash flows from operating activities:
Net income
$208.1

$199.3
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization181.0
157.8
Other26.2
24.3
Other changes in assets and liabilities:
Accounts receivable12.4
(66.5)
Sales of accounts receivable91.0
(4.0)
Regulatory assets(107.8)(14.1)
Regulatory liabilities(49.6)(64.5)
Deferred income taxes88.9
67.7
Other20.4
(43.5)
Net cash flows from operating activities470.6
256.5
Cash flows used for investing activities:
Utility construction and acquisition expenditures(470.1)(436.5)
Other(23.5)1.1
Net cash flows used for investing activities(493.6)(435.4)
Cash flows from financing activities:
Common stock dividends(117.0)(114.0)
Capital contributions from parent100.0
65.0
Proceeds from issuance of long-term debt
300.0
Net change in commercial paper44.0

Other(2.6)1.1
Net cash flows from financing activities24.4
252.1
Net increase in cash and cash equivalents1.4
73.2
Cash and cash equivalents at beginning of period3.3
4.5
Cash and cash equivalents at end of period
$4.7

$77.7
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest
($84.1)
($72.5)
Income taxes, net
$13.2

$0.7
Significant non-cash investing and financing activities:
Accrued capital expenditures
$71.0

$44.5
For the Three MonthsFor the Nine Months
Ended September 30,Ended September 30,
2017201620172016
(in millions)
Operating revenues:
Electric utility
$351.6

$381.1

$981.5

$999.9
Gas utility18.4
15.6
115.5
106.1
Other0.2
0.3
1.1
0.9
Total operating revenues370.2
397.0
1,098.1
1,106.9
Operating expenses:
Electric production fuel and purchased power100.1
120.9
284.7
321.5
Electric transmission service42.8
42.7
128.3
126.1
Cost of gas sold5.1
4.5
60.9
56.0
Other operation and maintenance66.1
54.2
179.7
157.2
Depreciation and amortization53.6
48.7
158.8
143.5
Taxes other than income taxes11.8
11.0
35.3
33.8
Total operating expenses279.5
282.0
847.7
838.1
Operating income90.7
115.0
250.4
268.8
Interest expense and other:
Interest expense23.1
22.9
69.1
68.7
Equity income from unconsolidated investments(0.2)(9.3)(0.4)(29.0)
Allowance for funds used during construction(4.9)(2.0)(11.6)(8.1)
Interest income and other(0.1)0.1
(0.2)(0.2)
Total interest expense and other17.9
11.7
56.9
31.4
Income before income taxes72.8
103.3
193.5
237.4
Income taxes23.0
33.7
60.1
77.1
Net income49.8
69.6
133.4
160.3
Net income attributable to noncontrolling interest
0.6

1.6
Earnings available for common stock
$49.8

$69.0

$133.4

$158.7
September 30,
2017
December 31,
2016
(in millions, except pershare and share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$3.2

$4.2
Accounts receivable, less allowance for doubtful accounts185.8
226.3
Production fuel, at weighted average cost24.2
27.8
Gas stored underground, at weighted average cost19.0
21.3
Materials and supplies, at weighted average cost43.6
36.3
Regulatory assets45.3
40.1
Other64.6
60.5
Total current assets385.7
416.5
Property, plant and equipment, net4,782.4
4,426.7
Other assets:
Regulatory assets400.3
416.2
Deferred charges and other25.7
30.9
Total other assets426.0
447.1
Total assets
$5,594.1

$5,290.3
LIABILITIES AND EQUITY
Current liabilities:
Commercial paper
$224.6

$52.3
Accounts payable197.2
192.9
Regulatory liabilities59.2
36.6
Other108.7
112.9
Total current liabilities589.7
394.7
Long-term debt, net1,536.2
1,535.2
Other liabilities:
Deferred tax liabilities1,035.2
971.6
Regulatory liabilities184.5
213.6
Capital lease obligations - Sheboygan Falls Energy Facility72.0
77.2
Pension and other benefit obligations204.2
207.8
Other162.6
159.4
Total other liabilities1,658.5
1,629.6
Commitments and contingencies (Note 12)

Equity:
Wisconsin Power and Light Company common equity:
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding66.2
66.2
Additional paid-in capital1,059.0
1,019.0
Retained earnings684.5
645.6
Total Wisconsin Power and Light Company common equity1,809.7
1,730.8
Total liabilities and equity
$5,594.1

$5,290.3
For the Nine Months
Ended September 30,
20172016
(in millions)
Cash flows from operating activities:
Net income
$133.4

$160.3
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization158.8
143.5
Deferred tax expense and tax credits60.1
97.9
Other4.8
(20.3)
Other changes in assets and liabilities:
Accounts receivable41.8
(12.8)
Regulatory assets(1.1)50.7
Other(36.6)20.0
Net cash flows from operating activities361.2
439.3
Cash flows used for investing activities:
Utility construction and acquisition expenditures(454.0)(307.1)
Other(16.2)(19.6)
Net cash flows used for investing activities(470.2)(326.7)
Cash flows from (used for) financing activities:
Common stock dividends(94.5)(101.2)
Capital contribution from parent40.0

Net change in commercial paper172.3
(8.1)
Other(9.8)1.9
Net cash flows from (used for) financing activities108.0
(107.4)
Net increase (decrease) in cash and cash equivalents(1.0)5.2
Cash and cash equivalents at beginning of period4.2
0.4
Cash and cash equivalents at end of period
$3.2

$5.6
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest
($68.1)
($67.7)
Income taxes, net
($20.2)
$19.6
Significant non-cash investing and financing activities:
Accrued capital expenditures
$122.3

$50.8
Alliant EnergyIPLWPL
September 30,
2017
December 31,
2016
September 30,
2017
December 31,
2016
September 30,
2017
December 31,
2016
Tax-related
$1,147.9

$1,055.6

$1,107.9

$1,022.4

$40.0

$33.2
Pension and OPEB costs547.8
578.7
279.3
294.0
268.5
284.7
Asset retirement obligations107.9
105.9
71.9
64.3
36.0
41.6
EGUs retired early67.4
41.4
32.9

34.5
41.4
Derivatives49.9
30.7
22.3
10.0
27.6
20.7
Emission allowances25.6
26.2
25.6
26.2


Other90.0
76.6
51.0
41.9
39.0
34.7

$2,036.5

$1,915.1

$1,590.9

$1,458.8

$445.6

$456.3
Alliant EnergyIPLWPL
September 30,
2017
December 31,
2016
September 30,
2017
December 31,
2016
September 30,
2017
December 31,
2016
Cost of removal obligations
$412.1

$411.6

$272.9

$269.4

$139.2

$142.2
Electric transmission cost recovery94.8
72.0
35.9
35.7
58.9
36.3
IPL’s tax benefit riders45.0
83.5
45.0
83.5


Commodity cost recovery21.2
30.8
15.0
17.8
6.2
13.0
Energy efficiency cost recovery20.0
20.5


20.0
20.5
Derivatives10.9
31.5
5.8
12.1
5.1
19.4
Other24.5
31.1
10.2
12.3
14.3
18.8

$628.5

$681.0

$384.8

$430.8

$243.7

$250.2
Electric tax benefit rider credits
($51)
Gas tax benefit rider credits(5)
Rate-making accounting change17

($39)
Electric plant in service
$40
Current assets2
Total assets acquired42
Other liabilities10
Net assets acquired
$32
September 30, 2017December 31, 2016
Customer accounts receivable
$153.6

$157.6
Unbilled utility revenues89.1
90.4
Other receivables1.1
0.1
Receivables sold to third party243.8
248.1
Less: cash proceeds (a)112.0
21.0
Deferred proceeds131.8
227.1
Less: allowance for doubtful accounts16.5
16.0
Fair value of deferred proceeds
$115.3

$211.1
Alliant EnergyWPL
Three MonthsNine MonthsThree MonthsNine Months
20172016201720162017201620172016
ATC Investment
($10.1)
($9.1)
($32.7)
($28.6)
$—

($9.1)
$—

($28.6)
Other
(0.1)(0.2)(0.2)(0.2)(0.2)(0.4)(0.4)

($10.1)
($9.2)
($32.9)
($28.8)
($0.2)
($9.3)
($0.4)
($29.0)
Shares outstanding, January 1, 2017227,673,654
At-the-market offering program3,074,931
Shareowner Direct Plan issuances496,437
Equity-based compensation plans (Note 9(b))5,185
Other(45,847)
Shares outstanding, September 30, 2017231,204,360
Alliant EnergyIPLWPL
Three Months Ended September 30201720162017201620172016
Maximum amount outstanding (based on daily outstanding balances)$424.4$248.0$20.0$3.1$271.2$55.4
Average amount outstanding (based on daily outstanding balances)$386.2$220.1$0.4$0.1$217.0$36.4
Weighted average interest rates1.3%0.6%1.4%0.6%1.1%0.4%
Nine Months Ended September 30
Maximum amount outstanding (based on daily outstanding balances)$424.4$248.0$20.0$3.1$271.2$62.9
Average amount outstanding (based on daily outstanding balances)$323.9$210.7$0.5$—$144.2$33.2
Weighted average interest rates1.1%0.6%1.2%0.6%1.0%0.4%
Alliant EnergyIPLWPL
Three Months Ended September 30201720162017201620172016
Statutory federal income tax rate35.0 %35.0 %35.0%35.0%35.0 %35.0 %
Effect of rate-making on property-related differences(10.1)(11.9)(22.6)(16.5)(1.9)(0.7)
IPL’s tax benefit riders(8.3)(13.1)(20.9)(20.1)

Production tax credits(6.2)(9.0)(7.0)(6.0)(7.0)(5.7)
Other items, net2.8
4.4
2.3
5.4
5.5
4.0
Overall income tax rate13.2%5.4%(13.2%)(2.2%)31.6%32.6%
Alliant EnergyIPLWPL
Nine Months Ended September 30201720162017201620172016
Statutory federal income tax rate35.0 %35.0 %35.0%35.0%35.0 %35.0 %
Effect of rate-making on property-related differences(9.1)(8.2)(20.6)(14.8)(1.8)(0.8)
IPL’s tax benefit riders(8.1)(10.2)(20.1)(19.6)

Production tax credits(6.0)(7.2)(6.8)(6.1)(7.0)(6.1)
Other items, net3.1
3.5
2.7
4.2
4.9
4.4
Overall income tax rate14.9%12.9%(9.8%)(1.3%)31.1%32.5%
Defined Benefit Pension PlansOPEB Plans
Three MonthsNine MonthsThree MonthsNine Months
Alliant Energy20172016201720162017201620172016
Service cost
$3.1

$3.2

$9.3

$9.5

$1.2

$1.4

$3.7

$4.0
Interest cost12.7
13.2
38.3
39.7
2.2
2.3
6.5
7.0
Expected return on plan assets(16.3)(16.3)(49.1)(49.1)(1.5)(1.6)(4.6)(4.6)
Amortization of prior service credit(0.1)(0.1)(0.3)(0.2)(0.1)(1.0)(0.2)(3.1)
Amortization of actuarial loss9.4
9.3
28.2
28.0
1.0
1.2
2.9
3.6
Settlement losses (a)0.9

0.9






$9.7

$9.3

$27.3

$27.9

$2.8

$2.3

$8.3

$6.9
Defined Benefit Pension PlansOPEB Plans
Three MonthsNine MonthsThree MonthsNine Months
IPL20172016201720162017201620172016
Service cost
$1.8

$1.8

$5.5

$5.6

$0.5

$0.5

$1.6

$1.7
Interest cost5.9
6.1
17.6
18.4
0.8
1.0
2.6
2.9
Expected return on plan assets(7.7)(7.7)(23.1)(23.2)(1.0)(1.0)(3.2)(3.2)
Amortization of prior service credit

(0.1)(0.1)
(0.7)
(2.0)
Amortization of actuarial loss4.0
4.2
12.1
12.4
0.5
0.7
1.5
2.0

$4.0

$4.4

$12.0

$13.1

$0.8

$0.5

$2.5

$1.4
Defined Benefit Pension PlansOPEB Plans
Three MonthsNine MonthsThree MonthsNine Months
WPL20172016201720162017201620172016
Service cost
$1.2

$1.3

$3.6

$3.7

$0.5

$0.5

$1.4

$1.5
Interest cost5.5
5.5
16.4
16.7
0.9
0.9
2.6
2.8
Expected return on plan assets(7.2)(7.0)(21.4)(21.2)(0.2)(0.2)(0.6)(0.6)
Amortization of prior service cost (credit)0.1

0.1
0.1
(0.1)(0.3)(0.2)(0.7)
Amortization of actuarial loss4.6
4.4
13.9
13.2
0.4
0.5
1.2
1.4

$4.2

$4.2

$12.6

$12.5

$1.5

$1.4

$4.4

$4.4
Alliant EnergyIPLWPL
Three MonthsNine MonthsThree MonthsNine MonthsThree MonthsNine Months
201720162017201620172016201720162017201620172016
Compensation expense
$5.1

$4.4

$9.9

$16.8

$2.8

$2.4

$5.4

$8.9

$2.1

$1.9

$4.1

$7.3
Income tax benefits2.1
1.7
4.0
6.8
1.1
1.0
2.2
3.7
0.9
0.7
1.7
2.9
Performance SharesPerformance Units
Nonvested awards, January 1257,599
93,320
Granted65,350
21,558
Vested(99,438)(37,395)
Forfeited
(4,243)
Nonvested awards, September 30223,511
73,240
Performance SharesPerformance Units
Performance awards vested99,438
37,395
Percentage of target number of performance awards147.5%147.5%
Aggregate payout value (in millions)
$5.6

$1.5
Payout - cash (in millions)
$5.1

$1.5
Payout - common stock shares issued5,185
N/A
Performance SharesPerformance Units
2017 Grant2016 Grant2015 Grant2017 Grant2016 Grant2015 Grant
Nonvested awards at target65,350
67,355
90,806
19,531
21,751
31,958
Alliant Energy common stock closing price on September 29, 2017
$41.57

$41.57

$41.57

$41.57

$41.57
N/A
Alliant Energy common stock closing price on grant dateN/AN/AN/AN/AN/A
$32.55
Estimated payout percentage based on performance criteria100%138%113%100%138%113%
Fair values of each nonvested award
$41.57

$57.37

$46.97

$41.57

$57.37

$36.78
UnitsWeighted AverageGrant Date Fair Value
Nonvested units, January 167,355

$33.96
Granted65,350
39.12
Nonvested units, September 30132,705
36.50
Alliant EnergySeptember 30, 2017December 31, 2016
Fair ValueFair Value
CarryingLevelLevelLevelCarryingLevelLevelLevel
Amount123TotalAmount123Total
Assets:
Derivatives
$29.4

$—

$2.9

$26.5

$29.4

$41.4

$—

$4.6

$36.8

$41.4
Deferred proceeds115.3


115.3
115.3
211.1


211.1
211.1
Liabilities and equity:
Derivatives45.1

14.9
30.2
45.1
28.6

0.5
28.1
28.6
Long-term debt (incl. current maturities)4,360.3

4,893.3
2.9
4,896.2
4,320.2

4,795.7
3.3
4,799.0
Cumulative preferred stock of IPL200.0
202.3


202.3
200.0
194.8


194.8
IPLSeptember 30, 2017December 31, 2016
Fair ValueFair Value
CarryingLevelLevelLevelCarryingLevelLevelLevel
Amount123TotalAmount123Total
Assets:
Derivatives
$21.1

$—

$1.6

$19.5

$21.1

$20.8

$—

$2.8

$18.0

$20.8
Deferred proceeds115.3


115.3
115.3
211.1


211.1
211.1
Liabilities and equity:
Derivatives18.7

4.5
14.2
18.7
8.3

0.4
7.9
8.3
Long-term debt (incl. current maturities)2,195.0

2,430.1

2,430.1
2,153.5

2,352.3

2,352.3
Cumulative preferred stock200.0
202.3


202.3
200.0
194.8


194.8
WPLSeptember 30, 2017December 31, 2016
Fair ValueFair Value
CarryingLevelLevelLevelCarryingLevelLevelLevel
Amount123TotalAmount123Total
Assets:
Derivatives
$8.3

$—

$1.3

$7.0

$8.3

$20.6

$—

$1.8

$18.8

$20.6
Liabilities:
Derivatives26.4

10.4
16.0
26.4
20.3

0.1
20.2
20.3
Long-term debt1,536.2

1,829.3

1,829.3
1,535.2

1,807.4

1,807.4
Alliant EnergyCommodity Contract Derivative
Assets and (Liabilities), netDeferred Proceeds
Three Months Ended September 302017201620172016
Beginning balance, July 1
$9.2

$0.6

$170.0

$74.4
Total net losses included in changes in net assets (realized/unrealized)(4.3)(5.1)

Transfers out of Level 3
0.8


Sales(0.1)(0.2)

Settlements (a)(8.5)(4.0)(54.7)165.3
Ending balance, September 30
($3.7)
($7.9)
$115.3

$239.7
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at September 30
($4.2)
($5.0)
$—

$—
Alliant EnergyCommodity Contract Derivative
Assets and (Liabilities), netDeferred Proceeds
Nine Months Ended September 302017201620172016
Beginning balance, January 1
$8.7

($32.7)
$211.1

$172.0
Total net gains (losses) included in changes in net assets (realized/unrealized)(31.3)8.0


Transfers into Level 3
0.9


Transfers out of Level 312.2
1.2


Purchases28.3
22.0


Sales(0.3)(0.9)

Settlements (a)(21.3)(6.4)(95.8)67.7
Ending balance, September 30
($3.7)
($7.9)
$115.3

$239.7
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at September 30
($29.4)
$9.7

$—

$—
IPLCommodity Contract Derivative
Assets and (Liabilities), netDeferred Proceeds
Three Months Ended September 302017201620172016
Beginning balance, July 1
$17.1

$18.3

$170.0

$74.4
Total net losses included in changes in net assets (realized/unrealized)(4.4)(0.4)

Transfers out of Level 3
0.3


Sales(0.1)(0.2)

Settlements (a)(7.3)(4.6)(54.7)165.3
Ending balance, September 30
$5.3

$13.4

$115.3

$239.7
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at September 30
($4.5)
($0.4)
$—

$—
IPLCommodity Contract Derivative
Assets and (Liabilities), netDeferred Proceeds
Nine Months Ended September 302017201620172016
Beginning balance, January 1
$10.1

($1.9)
$211.1

$172.0
Total net gains (losses) included in changes in net assets (realized/unrealized)(13.9)4.8


Transfers into Level 3
0.5


Transfers out of Level 33.1
0.2


Purchases24.6
20.6


Sales(0.2)(0.9)

Settlements (a)(18.4)(9.9)(95.8)67.7
Ending balance, September 30
$5.3

$13.4

$115.3

$239.7
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at September 30
($12.6)
$5.7

$—

$—
WPLCommodity Contract Derivative
Assets and (Liabilities), net
Three Months Ended September 3020172016
Beginning balance, July 1
($7.9)
($17.7)
Total net gains (losses) included in changes in net assets (realized/unrealized)0.1
(4.7)
Transfers out of Level 3
0.5
Settlements(1.2)0.6
Ending balance, September 30
($9.0)
($21.3)
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at September 30
$0.3

($4.6)
WPLCommodity Contract Derivative
Assets and (Liabilities), net
Nine Months Ended September 3020172016
Beginning balance, January 1
($1.4)
($30.8)
Total net gains (losses) included in changes in net assets (realized/unrealized)(17.4)3.2
Transfers into Level 3
0.4
Transfers out of Level 39.1
1.0
Purchases3.7
1.4
Sales(0.1)
Settlements(2.9)3.5
Ending balance, September 30
($9.0)
($21.3)
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at September 30
($16.8)
$4.0
(a)Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash amounts received from the receivables sold.
ElectricityFTRsNatural GasCoalDiesel Fuel
MWhsYearsMWhsYearsDthsYearsTonsYearsGallonsYears
Alliant Energy1,645
2017-201814,745
2017-2018173,234
2017-20264,963
2017-20197,308
2017-2019
IPL
9,219
2017-201879,561
2017-20261,820
2017-2019
WPL1,645
2017-20185,526
2017-201893,673
2017-20263,143
2017-20187,308
2017-2019
Alliant EnergyIPLWPL
September 30,
2017
December 31,
2016
September 30,
2017
December 31,
2016
September 30,
2017
December 31,
2016
Current derivative assets
$26.7

$29.4

$20.3

$19.1

$6.4

$10.3
Non-current derivative assets2.7
12.0
0.8
1.7
1.9
10.3
Current derivative liabilities18.5
13.3
4.6
2.7
13.9
10.6
Non-current derivative liabilities26.6
15.3
14.1
5.6
12.5
9.7
Alliant EnergyIPLWPL
Purchased power (a)
$1,278

$1,194

$84
Natural gas847
422
425
Coal (b)144
66
78
Other (c)34
25
1

$2,303

$1,707

$588
(a)Includes payments required by purchased power agreements for capacity rights and minimum quantities of MWhs required to be purchased.
(b)Corporate Services entered into system-wide coal contracts on behalf of IPL and WPL that include minimum future commitments. These commitments were assigned to IPL and WPL based on information available as of September 30, 2017 regarding expected future usage, which is subject to change.
Utility (a)Non-Regulated,Alliant Energy
ElectricGasOtherTotalParent and OtherConsolidated
(in millions)
Three Months Ended September 30, 2017
Operating revenues
$840.6

$45.8

$11.2

$897.6

$9.3

$906.9
Operating income (loss)232.6
(2.4)(7.7)222.5
9.0
231.5
Net income (loss) attributable to Alliant Energy common shareowners176.3
(7.5)168.8
Three Months Ended September 30, 2016
Operating revenues
$864.3

$39.5

$9.4

$913.2

$11.4

$924.6
Operating income (loss)244.2
(3.7)0.4
240.9
(78.3)162.6
Amounts attributable to Alliant Energy common shareowners:
Income (loss) from continuing operations, net of tax183.1
(54.3)128.8
Loss from discontinued operations, net of tax
(0.4)(0.4)
Net income (loss)183.1
(54.7)128.4
Utility (a)Non-Regulated,Alliant Energy
ElectricGasOtherTotalParent and OtherConsolidated
(in millions)
Nine Months Ended September 30, 2017
Operating revenues
$2,199.1

$262.7

$34.4

$2,496.2

$29.9

$2,526.1
Operating income (loss)475.4
29.5
(6.8)498.1
25.6
523.7
Amounts attributable to Alliant Energy common shareowners:
Income from continuing operations, net of tax353.5
8.6
362.1
Income from discontinued operations, net of tax
1.4
1.4
Net income353.5
10.0
363.5
Nine Months Ended September 30, 2016
Operating revenues
$2,209.1

$248.7

$35.0

$2,492.8

$30.2

$2,523.0
Operating income (loss)473.3
27.0
4.4
504.7
(67.6)437.1
Amounts attributable to Alliant Energy common shareowners:
Income (loss) from continuing operations, net of tax350.3
(39.5)310.8
Loss from discontinued operations, net of tax
(2.0)(2.0)
Net income (loss)350.3
(41.5)308.8
ElectricGasOtherTotal
(in millions)
Three Months Ended September 30, 2017
Operating revenues
$489.0

$27.4

$11.0

$527.4
Operating income (loss)138.3
(2.1)(4.4)131.8
Earnings available for common stock120.4
Three Months Ended September 30, 2016
Operating revenues
$483.2

$23.9

$9.1

$516.2
Operating income (loss)125.9
(1.4)1.4
125.9
Earnings available for common stock114.1
Nine Months Ended September 30, 2017
Operating revenues
$1,217.6

$147.2

$33.3

$1,398.1
Operating income (loss)234.5
14.7
(1.5)247.7
Earnings available for common stock200.4
Nine Months Ended September 30, 2016
Operating revenues
$1,209.2

$142.6

$34.1

$1,385.9
Operating income213.8
15.3
6.8
235.9
Earnings available for common stock191.6
ElectricGasOtherTotal
(in millions)
Three Months Ended September 30, 2017
Operating revenues
$351.6

$18.4

$0.2

$370.2
Operating income (loss)94.3
(0.3)(3.3)90.7
Earnings available for common stock49.8
Three Months Ended September 30, 2016
Operating revenues
$381.1

$15.6

$0.3

$397.0
Operating income (loss)118.3
(2.3)(1.0)115.0
Earnings available for common stock69.0
Nine Months Ended September 30, 2017
Operating revenues
$981.5

$115.5

$1.1

$1,098.1
Operating income (loss)240.9
14.8
(5.3)250.4
Earnings available for common stock133.4
Nine Months Ended September 30, 2016
Operating revenues
$999.9

$106.1

$0.9

$1,106.9
Operating income (loss)259.5
11.7
(2.4)268.8
Earnings available for common stock158.7
IPLWPL
Three MonthsNine MonthsThree MonthsNine Months
20172016201720162017201620172016
Corporate Services billings
$48

$41

$130

$124

$37

$33

$100

$103
Sales credited8
4
15
7
6
3
8
6
Purchases billed109
126
271
324
32
23
99
65
Alliant Energy
Utilities, ATC Investment and Corporate ServicesNon-regulated and Parent
- Retail electric and gas services in IA (IPL) - Transportation (AEF)
- Retail electric and gas services in WI (WPL) - Non-regulated wind investment (AEF)
- ATC Investment (ATI) - Sheboygan Falls Energy Facility (AEF)
- Wholesale electric service in MN, IL & IA (IPL) - Parent Company
- Wholesale electric service in WI (WPL)
- Corporate Services
20172016
Income (Loss)EPSIncome (Loss)EPS
Continuing operations:
Utilities, ATC Investment and Corporate Services
$179.7

$0.78

$186.7

$0.82
Non-regulated and Parent(10.9)(0.05)(57.9)(0.25)
Income from continuing operations168.8
0.73
128.8
0.57
Loss from discontinued operations

(0.4)
Net income
$168.8

$0.73

$128.4

$0.57
Marshalltown Generating Station - IPL’s construction of Marshalltown, an approximate 660 MW natural gas-fired combined-cycle EGU, was completed in April 2017. Final capital expenditures are currently estimated to be approximately $645 million to construct the EGU and a pipeline to supply natural gas to the EGU, excluding transmission network upgrades and AFUDC.
WPL’s Construction of West Riverside - In October 2017, WPL received an order from the PSCW authorizing various electric cooperatives, which currently have wholesale power supply agreements with WPL, to acquire approximately 65 MW of West Riverside while the EGU is being constructed. As part of the electric cooperatives’ acquisitions, which are currently expected to be completed in the fourth quarter of 2017, the current wholesale power supply agreements with the various electric cooperatives will be extended by at least four years until 2026 with automatic continuation of such agreements unless terminated by either party, with a five-year notice requirement.
IPL’s Retail Electric Rate Review (2016 Test Year) - In April 2017, IPL filed a request with the IUB to increase annual electric base rates for its Iowa retail electric customers. The request was based on a 2016 historical Test Year as adjusted for certain known and measurable changes occurring up to 12 months after the commencement of the proceeding. The key drivers for the filing included recovery of capital projects, primarily power grid modernization and investments that
WPL’s Retail Fuel-related Rate Filing (2018 Test Year) - In July 2017, WPL filed a request with the PSCW to increase annual rates for WPL’s retail electric customers by $6 million, or approximately 1%, in 2018. The increase primarily reflects a change in expected fuel-related costs in 2018, which are expected to be offset by $3 million of over-collections from WPL’s 2016 fuel-related costs. Any rate changes granted from this request are expected to be effective January 1, 2018.
MISO Transmission Owner Return on Equity Complaints - A group of MISO cooperative and municipal utilities previously filed two complaints with FERC requesting a reduction to the base return on equity used by MISO transmission owners, including ITC and ATC LLC, to determine electric transmission costs billed to utilities, including IPL and WPL. In September 2016, FERC issued an order on the first complaint and established a base return on equity of 10.32%, excluding any incentive adders granted by FERC, effective September 28, 2016, and for the refund period from November 12, 2013 through February 11, 2015 (first complaint period). During the nine months ended September 30, 2017, Alliant Energy, IPL and WPL received the refunds for the first complaint period of $50 million, $39 million and $11 million, respectively, after final true-ups. Pursuant to IUB approval, IPL’s retail portion of the refund from ITC is currently being refunded to its retail customers in 2017. WPL’s retail portion of the refund from ATC LLC will remain in a regulatory liability until such refunds are approved to be returned to retail customers in a future rate proceeding.
Credit Facility Agreement - In August 2017, Alliant Energy, IPL and WPL entered into a single new credit facility agreement, which expires in August 2022. The new credit facility agreement includes financial covenants similar to those that were included in the previous credit facility agreements. As of September 30, 2017, the short-term borrowing capacity totaled $1 billion ($300 million for Alliant Energy at the parent company level, $300 million for IPL and $400 million for WPL).
At-the-Market Offering Program - In the second quarter of 2017, Alliant Energy issued 3.1 million shares of common stock through an at-the-market offering program and received cash proceeds of $124 million, net of $1 million in commissions and fees. The proceeds from the issuances of common stock were used for general corporate purposes.
Financing Plans - Alliant Energy currently expects to issue up to $200 million of common stock in 2018 through one or more offerings and its Shareowner Direct Plan. IPL currently expects to issue up to $700 million of long-term debt securities in 2018, of which $350 million would be used to retire maturing long-term debt in 2018. AEF currently expects to issue up to $1.0 billion of long-term debt in 2018, of which $595 million would be used to refinance term loans.
Common Stock Dividends - Alliant Energy announced a 6% increase in its targeted 2018 annual common stock dividend to $1.34 per share, which is equivalent to a quarterly rate of $0.335 per share, beginning with the February 2018 dividend payment. The timing and amount of future dividends is subject to an approved dividend declaration from Alliant Energy’s Board of Directors, and is dependent upon earnings expectations, capital requirements, and general financial business conditions, among other factors.
Depreciation and Amortization Expenses - Alliant Energy and IPL currently expect an increase in depreciation and amortization expenses in 2018 compared to 2017 due to property additions, and the implementation of updated depreciation rates for IPL as a result of a recently completed depreciation study, which is expected to be effective with the implementation of final rates from IPL’s retail electric rate review (2016 Test Year).
Interest Expense - Alliant Energy currently expects interest expense to increase in 2018 compared to 2017 due to financings completed in 2017 and planned in 2018 as discussed above.
Alliant EnergyIPLWPL
Three Months201720162017201620172016
Electric utility operating revenues
$840.6

$864.3

$489.0

$483.2

$351.6

$381.1
Electric production fuel and purchased power expenses(222.6)(245.9)(122.5)(125.0)(100.1)(120.9)
Electric transmission service expense(121.0)(138.6)(78.2)(95.9)(42.8)(42.7)
Utility Electric Margin (non-GAAP)497.0
479.8
288.3
262.3
208.7
217.5
Gas utility operating revenues45.8
39.5
27.4
23.9
18.4
15.6
Cost of gas sold(15.0)(12.5)(9.9)(8.0)(5.1)(4.5)
Utility Gas Margin (non-GAAP)30.8
27.0
17.5
15.9
13.3
11.1
Other utility operating revenues11.2
9.4
11.0
9.1
0.2
0.3
Non-regulated operating revenues9.3
11.4




Asset valuation charges for Franklin County wind farm
(86.4)



Other operation and maintenance expenses(169.1)(148.6)(104.4)(94.8)(66.1)(54.2)
Depreciation and amortization expenses(120.7)(104.1)(66.2)(52.7)(53.6)(48.7)
Taxes other than income tax expense(27.0)(25.9)(14.4)(13.9)(11.8)(11.0)
Operating income
$231.5

$162.6

$131.8

$125.9

$90.7

$115.0
Alliant EnergyIPLWPL
Nine Months201720162017201620172016
Electric utility operating revenues
$2,199.1

$2,209.1

$1,217.6

$1,209.2

$981.5

$999.9
Electric production fuel and purchased power expenses(614.7)(646.3)(330.0)(324.8)(284.7)(321.5)
Electric transmission service expense(363.3)(396.8)(235.0)(270.7)(128.3)(126.1)
Utility Electric Margin (non-GAAP)1,221.1
1,166.0
652.6
613.7
568.5
552.3
Gas utility operating revenues262.7
248.7
147.2
142.6
115.5
106.1
Cost of gas sold(135.5)(132.3)(74.6)(76.3)(60.9)(56.0)
Utility Gas Margin (non-GAAP)127.2
116.4
72.6
66.3
54.6
50.1
Other utility operating revenues34.4
35.0
33.3
34.1
1.1
0.9
Non-regulated operating revenues29.9
30.2




Asset valuation charges for Franklin County wind farm
(86.4)



Other operation and maintenance expenses(467.1)(438.2)(288.7)(279.8)(179.7)(157.2)
Depreciation and amortization expenses(342.7)(308.7)(181.0)(157.8)(158.8)(143.5)
Taxes other than income tax expense(79.1)(77.2)(41.1)(40.6)(35.3)(33.8)
Operating income
$523.7

$437.1

$247.7

$235.9

$250.4

$268.8
Three MonthsNine Months
Alliant EnergyIPLWPLAlliant EnergyIPLWPL
Asset valuation charges for Franklin County wind farm in 2016 (refer to Note 3 for details)
$86

$—

$—

$86

$—

$—
Total utility electric margin variance (refer to details below)17
26
(9)55
39
16
Total utility gas margin variance (refer to details below)4
2
2
11
6
5
Total other operation and maintenance expenses variance (refer to details below)(21)(10)(12)(29)(9)(23)
Higher depreciation expense primarily due to additional plant in service in 2017, including impacts from Marshalltown(9)(9)(2)(20)(18)(6)
Higher depreciation expense at WPL due to updated depreciation rates effective January 2017 approved by the PSCW and FERC(3)
(3)(9)
(9)
Higher depreciation expense at IPL due to write-down of regulatory assets resulting from the proposed IPL electric rate review settlement in 2017(5)(5)
(5)(5)
Other
2

(2)(1)(1)

$69

$6

($24)
$87

$12

($18)
Alliant EnergyElectricGas
RevenuesMWhs SoldRevenuesDths Sold
20172016201720162017201620172016
Three Months
Retail
$745.7

$772.5
6,722
6,935

$37.4

$30.9
3,744
3,926
Sales for resale75.6
77.5
1,390
1,271




Transportation/Other19.3
14.3
22
24
8.4
8.6
19,787
20,302

$840.6

$864.3
8,134
8,230

$45.8

$39.5
23,531
24,228
Nine Months
Retail
$1,950.4

$1,970.4
18,851
19,139

$236.9

$222.9
30,971
32,720
Sales for resale204.8
204.9
3,564
3,372




Transportation/Other43.9
33.8
72
75
25.8
25.8
54,849
61,615

$2,199.1

$2,209.1
22,487
22,586

$262.7

$248.7
85,820
94,335
IPLElectricGas
RevenuesMWhs SoldRevenuesDths Sold
20172016201720162017201620172016
Three Months
Retail
$443.3

$443.7
3,784
3,898

$22.0

$18.9
2,189
2,486
Sales for resale33.6
29.5
692
389




Transportation/Other12.1
10.0
9
11
5.4
5.0
9,374
8,783

$489.0

$483.2
4,485
4,298

$27.4

$23.9
11,563
11,269
Nine Months
Retail
$1,105.5

$1,110.8
10,761
10,944

$129.9

$127.2
16,548
18,097
Sales for resale83.5
75.5
1,527
1,056




Transportation/Other28.6
22.9
30
31
17.3
15.4
29,092
27,066

$1,217.6

$1,209.2
12,318
12,031

$147.2

$142.6
45,640
45,163
WPLElectricGas
RevenuesMWhs SoldRevenuesDths Sold
20172016201720162017201620172016
Three Months
Retail
$302.4

$328.8
2,938
3,037

$15.4

$12.0
1,555
1,440
Sales for resale42.0
48.0
698
882




Transportation/Other7.2
4.3
13
13
3.0
3.6
10,413
11,519

$351.6

$381.1
3,649
3,932

$18.4

$15.6
11,968
12,959
Nine Months
Retail
$844.9

$859.6
8,090
8,195

$107.0

$95.7
14,423
14,623
Sales for resale121.3
129.4
2,037
2,316




Transportation/Other15.3
10.9
42
44
8.5

$10.4
25,757
34,549

$981.5

$999.9
10,169
10,555

$115.5

$106.1
40,180
49,172
20172016Resulting Impact in 2017 Compared to 2016
First quarter (HDD)13% warmer than normal10% warmer than normalDecrease in IPL’s and WPL’s electric and gas sales due to lower demand by customers for heating
Second quarter (CDD)2% cooler - 13% warmer than normal10% - 35% warmer than normalDecrease in IPL’s and WPL’s electric sales due to lower demand by customers for air cooling
Third quarter (CDD)7% - 14% cooler than normal20% warmer than normalDecrease in IPL’s and WPL’s electric sales due to lower demand by customers for air cooling
Electric MarginsGas Margins
Three MonthsNine MonthsThree MonthsNine Months
20172016Change20172016Change20172016Change20172016Change
IPL
($4)
$7

($11)
($8)
$7

($15)
$—

$—

$—

($3)
($2)
($1)
WPL(4)4
(8)(9)3
(12)(1)(1)
(3)(2)(1)
Total Alliant Energy
($8)
$11

($19)
($17)
$10

($27)
($1)
($1)
$—

($6)
($4)
($2)
Three MonthsNine Months
Alliant EnergyIPLWPLAlliant EnergyIPLWPL
Higher margins at IPL from the impact of its 2016 Test Year interim retail electric base rate increase (a)
$34

$34

$—

$54

$54

$—
Higher margins at WPL from the impact of its 2017/2018 Test Period retail electric base rate increase (b)4

4
42

42
Retail electric customer billing credits at IPL in 20163
3

7
7

Estimated changes in sales caused by temperatures (Refer to “Temperatures” above for details)(19)(11)(8)(27)(15)(12)
Changes in electric fuel-related costs, net of recoveries at WPL (c)(2)
(2)(11)
(11)
Revenue requirement adjustment in 2016 related to certain tax benefits from tax accounting method changes at IPL(4)(4)
(11)(11)
Lower wholesale margins at WPL primarily due to the expiration of a wholesale power supply agreement on May 31, 2017(6)
(6)(8)
(8)
Other 7
4
3
9
4
5

$17

$26

($9)
$55

$39

$16
(b)In December 2016, WPL received an order from the PSCW authorizing WPL to implement an increase in annual retail electric rates of $9 million, or approximately 1%. The $9 million net annual retail electric rate increase reflects a $60 million increase in base rates, partially offset by a $51 million reduction in fuel-related costs, using an estimate for 2017 fuel-related costs. The increase was effective January 1, 2017 and extends through the end of 2018. WPL no longer has winter rates that are lower than summer rates. Thus, the quarter-over-quarter variances resulting from the retail electric base rate increase will be smaller during the summer quarters, compared to the winter quarters.
(c)WPL estimates the decrease to electric margins from amounts within the approved bandwidth of plus or minus 2% of forecasted fuel-related expenses determined by the PSCW each year was approximately $6 million for the nine months ended September 30, 2017. WPL estimates the increases to electric margins from amounts within the bandwidth were approximately $2 million and $5 million for the three and nine months ended September 30, 2016, respectively.
Three MonthsNine Months
Alliant EnergyIPLWPLAlliant EnergyIPLWPL
Higher margins at WPL from the impact of its 2017/2018 Test Period retail gas base rate increase (a)
$2

$—

$2

$6

$—

$6
Higher revenues at IPL due to lower gas tax benefit rider credits on customer’s bills (Refer to Note 2 for details)1
1

4
4

Estimated changes in sales caused by temperatures (Refer to “Temperatures” above for details)


(2)(1)(1)
Other1
1

3
3


$4

$2

$2

$11

$6

$5
Three MonthsNine Months
Alliant EnergyIPLWPLAlliant EnergyIPLWPL
Higher energy efficiency cost recovery amortizations at WPL (a)
($7)
$—

($7)
($20)
$—

($20)
(Higher) lower bad debt expense(1)1
(2)(9)(3)(6)
Charges related to cancelled software projects in 2017(6)(3)(3)(6)(3)(3)
Write-down of regulatory assets due to the proposed IPL electric rate review settlement in 2017(4)(4)
(4)(4)
(Higher) lower equity-based performance compensation expense(1)

7
4
3
Other(2)(4)
3
(3)3

($21)
($10)
($12)
($29)
($9)
($23)
Three MonthsNine Months
Alliant EnergyIPLWPLAlliant EnergyIPLWPL
Higher interest expense primarily due to higher average outstanding long-term debt balances
($5)
($2)
$—

($14)
($8)
$—
Lower equity income from unconsolidated investments at WPL from the transfer of its investment in ATC LLC to ATI on December 31, 2016

(9)

(29)
Higher (lower) AFUDC primarily due to increased (decreased) construction work in progress balances(6)(9)3
(8)(11)4
Other1


4

(1)

($10)
($11)
($6)
($18)
($19)
($26)
(a)IPL and WPL believe their respective planned expansion of wind generation will qualify for the full level of production tax credits as a result of progress payments in 2016 for wind turbines, and plan to place these wind projects into service by the fourth quarter of 2020.
(b)The amount and timing of these wind projects will largely depend on regulatory approvals and the acquisition of wind sites.
Up to 500 MW of additional wind generation that qualifies for the full level of production tax credits, as long as the project is located in Iowa, with a cost cap of $1,780/kilowatt, including AFUDC and transmission costs. Any costs incurred in excess of this $1,780/kilowatt cost cap are expected to be incorporated into rates if determined to be reasonable and prudent.
An 11.0% return on common equity, with the exception of certain transmission facilities classified as intangible assets, which would earn the rate of return on common equity the IUB finds reasonable during a future rate review.
A return on common equity for the calculation of AFUDC during the construction period that is the greater of 10.0% or the percentage the IUB finds reasonable during IPL’s retail electric rate review for the 2016 Test Year.
The application of double leverage is deferred until IPL’s next retail electric base rate review or other future proceeding.
Interim RatesFinal Rates (Proposed Settlement)
Regulatory capital structure:
Common equity49.1%49.0%
Long-term debt46.3%46.8%
Preferred equity4.6%4.2%
After-tax weighted-average cost of capital:
Marshalltown (ROE - 11.0%)8.1%8.0%
Emery (ROE - 12.23%)8.7%8.6%
Whispering Willow - East (ROE - 11.7%)8.4%8.3%
Other (ROE - 9.6%) (a)7.4%7.3%
Retail electric rate base (b)$3.8 billion$4.0 billion
(a)Other ROE of 9.6% for interim rates reflects the application of double leverage. Prior to application of double leverage, Other ROE for interim rates was 10.0%. Other ROE of 9.6% for final rates (based on proposed settlement) does not reflect the application of double leverage.
(b)The retail electric rate base for interim rates includes post-test year capital additions placed in service prior to the rate filing in April 2017, including Marshalltown and the Franklin County wind farm. The retail electric rate base for final rates (based on proposed settlement) also includes deferred tax assets for production tax credits generated by Whispering Willow - East and post-test year capital additions placed in service by September 30, 2017.
Alliant EnergyIPLWPL
201720162017201620172016
Cash and cash equivalents, January 1
$8.2

$5.8

$3.3

$4.5

$4.2

$0.4
Cash flows from (used for):
Operating activities883.4
654.0
470.6
256.5
361.2
439.3
Investing activities(1,072.3)(771.8)(493.6)(435.4)(470.2)(326.7)
Financing activities189.9
196.7
24.4
252.1
108.0
(107.4)
Net increase (decrease)1.0
78.9
1.4
73.2
(1.0)5.2
Cash and cash equivalents, September 30
$9.2

$84.7

$4.7

$77.7

$3.2

$5.6
Alliant EnergyIPLWPL
Changes in the level of cash proceeds from IPL’s sales of accounts receivable
$95

$95

$—
Higher collections at IPL due to interim retail electric base rate increase effective April 13, 201754
54

Higher collections at WPL due to new retail electric and gas base rates in 201748

48
Changes in cash collateral balances38


Changes in levels of production fuel11
23
(12)
Timing of WPL’s fuel-related cost recoveries from customers(49)
(49)
Changes in income taxes paid/refunded(3)13
(40)
Other (primarily due to other changes in working capital)35
29
(25)

$229

$214

($78)
Alliant EnergyIPLWPL
Higher utility construction expenditures (a)
($166)
($34)
($147)
Non-regulated wind investment in Oklahoma (Refer to Note 5(a) for details)(98)

Proceeds from the liquidation of company-owned life insurance policies in 2016(31)(19)
Other(6)(5)3

($301)
($58)
($144)
Alliant EnergyIPLWPL
201720182019202020212017201820192020202120172018201920202021
Generation:
Renewable projects
$180

$655

$850

$140

$85

$210

$565

$725

$50

$85

$—

$90

$125

$90

$—
West Riverside235
225
90
10






235
225
90
10

Marshalltown30




30









Other220
140
95
150
140
85
60
50
80
75
135
80
45
70
65
Distribution:
Electric systems480
440
435
485
560
290
260
250
290
345
190
180
185
195
215
Gas systems130
130
95
90
115
90
75
50
55
65
40
55
45
35
50
Other210
130
110
125
100
30
25
20
25
20
10
10
10
10
10

$1,485

$1,720

$1,675

$1,000

$1,000

$735

$985

$1,095

$500

$590

$610

$640

$500

$410

$340
Alliant EnergyIPLWPL
Lower net proceeds from issuance of long-term debt
($300)
($300)
$—
Net changes in the amount of commercial paper and other short-term borrowings outstanding203
44
180
Higher net proceeds from common stock issuances123


Higher capital contributions from IPL’s and WPL’s parent company, Alliant Energy
35
40
Other (includes higher dividend payments in 2017)(33)(7)(5)

($7)
($228)
$215
Total NumberAverage PriceTotal Number of SharesMaximum Number (or Approximate
of SharesPaid PerPurchased as Part ofDollar Value) of Shares That May
PeriodPurchased (a)SharePublicly Announced PlanYet Be Purchased Under the Plan (a)
July 1 through July 312,299

$39.81
N/A
August 1 through August 313,727
41.93
N/A
September 1 through September 30337
42.45
N/A
6,363
41.19
(a)All shares were purchased on the open market and held in a rabbi trust under the Alliant Energy Deferred Compensation Plan. There is no limit on the number of shares of Alliant Energy common stock that may be held under the Deferred Compensation Plan, which currently does not have an expiration date.

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