Alliant Energy Corporation (NASDAQ:LNT) Q4 2023 Earnings Call Transcript

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Lisa Barton: So we are actively and aggressively marketing our mega sites that are located in both Iowa and Wisconsin and that would really be the locations to be looking at?

Operator: The next question will be from Andrew Weisel at Scotiabank.

Andrew Weisel: Just wanted to clarify a little bit of — I think, Robert, you talked about this in the prepared remarks but I want to ask about O&M and the weather impact. The $0.06 of negative weather, that is not included in the adjusted earnings, I think. So first question is, is that a change? Have you historically done that?

Robert Durian: No, Andrew. So we’ve consistently, probably for more than a decade now, removed the weather impacts from our adjusted earnings. Really, we think that’s the appropriate way to manage the business. We’ve seen more efficiencies from an operational perspective to avoid ramping up and ramping down cost profiles of our operations group. And so that’s something we’ve done, I think, for the entire 14 years that we’ve been able to achieve at least 5% growth.

Andrew Weisel: Okay. I guess I don’t mean to be critical but you’ve got a great track record of meeting or exceeding the midpoint in, I think going back to 2015 or so. And obviously, this one was a little bit light. Anything to look into there? Obviously, it was a tough year with the interest rates and all that. But anything philosophically changing around either O&Ms or the midpoint as a target?

Robert Durian: No, Andrew. I think we’re managing the business as we’ve always managed the business. I think what you’re seeing is the first time in the last 6 years where we’ve actually seen the temperature impacts come in with lower earnings and the previous 5 years, we let that additional earnings flow through to the bottom line and didn’t offset that with additional spending. So we feel like we’re being very consistent with the way we’re operating the business.

Andrew Weisel: And then lastly, apologies if I missed it but what’s your outlook for O&Ms in 2024?

Robert Durian: Yes. Right now, we think it will be relatively flat. We are obviously facing inflationary pressures. We also have some additional O&M that we’re expecting from the large amount of new generation that we’re putting into service with solar projects and battery projects but we have a lot of confidence in the team to be able to offset those impacts with our continued cost control measures.

Operator: Ms. Gille, at this time, there are no further questions.

Susan Gille: With no more questions, this concludes our call. A replay will be available on our investor website. Thank you for your continued support of Alliant Energy and feel free to contact me with any follow-up questions.

Operator: Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines. Have a good weekend.

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