Aliant Energy Corporation (‘Alliant Energy’) operates as a regulated investor-owned public utility holding company.
The company’s purpose-driven strategy is to serve its customers and build stronger communities. Alliant Energy’s primary focus is to provide regulated electric and natural gas service to approximately 1,000,000 electric, and approximately 430,000 natural gas customers in the Midwest through its two public utility subsidiaries, Interstate Power and Light Company (IPL) and Wisconsin...
Aliant Energy Corporation (‘Alliant Energy’) operates as a regulated investor-owned public utility holding company.
The company’s purpose-driven strategy is to serve its customers and build stronger communities. Alliant Energy’s primary focus is to provide regulated electric and natural gas service to approximately 1,000,000 electric, and approximately 430,000 natural gas customers in the Midwest through its two public utility subsidiaries, Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL). The primary first-tier wholly-owned subsidiaries of Alliant Energy are as follows:
IPL - is a public utility engaged principally in the generation and distribution of electricity, and the distribution and transportation of natural gas to retail customers in select markets in Iowa. IPL provides utility services to incorporated communities, as directed by the Iowa Utilities Commission (IUC), and utilizes non-exclusive franchises, which cover the use of public right-of-ways for utility facilities in incorporated communities for a maximum term of 25 years. As of December 31, 2024, IPL supplied electric and natural gas service to approximately 500,000, and 230,000 retail customers, respectively, in Iowa. IPL also sells electricity to wholesale customers in Minnesota (IPL’s related wholesale power agreement expires July 2025), Illinois, and Iowa. IPL is also engaged in the generation and distribution of steam for two customers in Cedar Rapids, Iowa, which are each under contract through 2025 for taking minimum quantities of annual steam usage, with certain conditions.
WPL - is a public utility engaged principally in the generation and distribution of electricity, and the distribution and transportation of natural gas to retail customers in select markets in Wisconsin. WPL operates in municipalities pursuant to permits of indefinite duration, and state statutes authorizing utility operation in areas annexed by a municipality. As of December 31, 2024, WPL supplied electric and natural gas service to approximately 500,000, and 200,000 retail customers, respectively. WPL also sells electricity to wholesale customers in Wisconsin.
Corporate Services - provides administrative services to Alliant Energy, IPL, WPL, and AEF.
Alliant Energy Finance, LLC (AEF) - Alliant Energy’s non-utility holdings are organized under AEF, which manages a portfolio of wholly-owned subsidiaries and additional holdings, including the following distinct platforms:
AE Transco Investments, LLC (ATI) - holds all of Alliant Energy’s interest in ATC Holdings. ATC Holdings comprises a 16% ownership interest in ATC, and a 20% ownership interest in ATC Holdco LLC. ATC is an independent, for-profit, transmission-only company. ATC Holdco LLC holds an interest in Duke-American Transmission Company, LLC, a joint venture between Duke Energy Corporation and ATC, that owns electric transmission infrastructure in North America.
Corporate Venture Investments - includes various minority ownership interests in regional and national venture funds, including a global coalition of energy companies working together to help identify and research innovative technologies and business models within the emerging energy economy.
Non-utility Wind Farm - includes a 50% cash equity ownership interest in a 225 MW non-utility wind farm located in Oklahoma.
Sheboygan Falls Energy Facility - is a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is currently leased to WPL through 2044.
Travero - is a supply chain solutions company, including a short-line rail freight service in Iowa, a Mississippi River barge, rail, and truck freight terminal in Illinois, freight brokerage services, wind turbine blade recycling services, and a rail-served warehouse in Iowa.
Development-ready Sites - includes various rail-served and ready-to-build manufacturing and industrial sites throughout Alliant Energy’s service territories, with access to various airports, and interstate freeways.
Utility Operations
Alliant Energy’s utility business includes the operations of IPL (electric, gas, and steam operations) and WPL (electric and gas operations), which are both reportable segments.
Electric Utility Operations
General - Alliant Energy’s electric utility operations are located in the Midwest, with IPL providing retail and wholesale electric service in Iowa, and WPL providing retail and wholesale electric service in Wisconsin. IPL also sells electricity to wholesale customers in Minnesota, and Illinois.
Customers - IPL and WPL provide electric utility service to a large base of retail customers in several industries, with concentrations in the farming, agriculture, industrial manufacturing, chemical (including ethanol), packaging, and food industries. IPL and WPL also sell electricity to wholesale customers, which primarily consist of municipalities, and rural electric cooperatives.
Seasonality - Electric sales are seasonal to some extent, with the annual peak normally occurring in the summer months due to air conditioning requirements. Electric sales are also impacted to a certain extent in the winter months due to heating requirements.
Electric Supply - Alliant Energy, IPL, and WPL have met, and expect to continue meeting, customer demand for electricity through a mix of electric supply, including owned EGUs (Electric generating units), PPAs (Purchased power agreements), and additional purchases from wholesale energy markets. Long-term generation plans are intended to meet growing customer demand, reduce air emissions and water impacts, reduce reliance on wholesale market purchases, and mitigate the impacts of future EGU retirements while maintaining compliance with long-term electric demand planning reserve margins, renewable energy standards established by regulators, among other requirements.
Generation Fuel Supply - IPL and WPL own a portfolio of EGUs located in Iowa, Wisconsin, and Minnesota with a fuel mix that includes natural gas, renewable resources, and coal.
Natural Gas - Alliant Energy, IPL, and WPL own several natural gas-fired EGUs, and WPL also has exclusive rights to the output of AEF’s Sheboygan Falls Energy Facility under an affiliated lease agreement. These facilities help meet customer demand for electricity when natural gas prices are low enough to make natural gas-fired generation economical compared to other fuel sources. Alliant Energy manages the gas supply to these gas-fired EGUs and helps ensure an adequate supply is available at known prices through a combination of gas commodity, pipeline transportation, and storage agreements held by IPL and WPL for numerous years.
Coal - Coal is one of the fuel sources for owned EGUs. Coal contracts entered into with different entities help ensure that a specified supply of coal is available, and delivered, at known prices for IPL’s and WPL’s coal-fired EGUs. All of the coal utilized by IPL and WPL is from the Wyoming Powder River Basin.
The coal procurement process supports periodic purchases, staggering of contract terms, stair-stepped levels of supply going forward, and different suppliers. Similarly, given the term lengths of their transportation agreements and strategic alignment of agreement expirations for negotiation purposes.
Purchased Power - IPL and WPL periodically enter into PPAs, and purchase electricity from wholesale energy markets to meet a portion of their customer demand for electricity.
Electric Transmission - IPL and WPL do not own electric transmission service assets and receive transmission services from ITC (ITC Midwest LLC) and ATC (American Transmission Company LLC), respectively. ITC and ATC are independent, for-profit, transmission-only companies and are transmission-owning members of the Midcontinent Independent System Operator, Inc. (MISO) Regional Transmission Organization, Midwest Reliability Organization, and Reliability First Corporation Regional Entities. The annual transmission service rates that ITC or ATC charges their customers are calculated each calendar year using a FERC (Federal Energy Regulatory Commission)-approved cost of service formula rate. However, new rates are subject to challenge by either FERC or customers.
MISO Markets - IPL and WPL are members of MISO, a FERC-approved Regional Transmission Organization, which is responsible for monitoring and ensuring equal access to the transmission system in their footprint. IPL and WPL participate in the wholesale energy and ancillary services markets operated by MISO. As agent for IPL and WPL, Corporate Services enters into energy, capacity, ancillary services, and transmission sale and purchase transactions within MISO. Corporate Services assigns such sales and purchases between IPL and WPL based on statements received from MISO.
Wholesale Energy Market - IPL and WPL sell and purchase power in the day-ahead and real-time wholesale energy markets operated by MISO.
Ancillary Services Market - IPL and WPL also participate in MISO’s ancillary services market, which integrates the procurement and use of regulation and contingency reserves with the existing wholesale energy market to ensure reliability of electricity supply. MISO’s ancillary services market has had the overall impact of lowering ancillary services costs in the MISO footprint.
Financial Transmission Rights and Auction Revenue Rights - In areas of constrained transmission capacity, energy costs could be higher due to congestion and its impact on locational marginal prices. Financial transmission rights (FTRs) provide a hedge for certain congestion costs that occur in the MISO energy market. MISO allocates auction revenue rights to IPL and WPL annually based on a fiscal year from June 1 through May 31, and historical use of the transmission system. The allocated auction revenue rights are used by IPL and WPL to acquire FTRs through the FTR auctions operated by MISO.
Gas Utility Operations
General - Alliant Energy’s gas utility operations are located in the Midwest, with IPL providing gas service in Iowa, and WPL providing gas service in Wisconsin.
Customers - IPL and WPL provide gas utility service to a large base of retail customers and industries, including research, education, hospitality, manufacturing, and chemicals (including ethanol). In addition, IPL and WPL provide transportation service to commercial and industrial customers by moving customer-owned gas through Alliant Energy’s distribution systems to the customers’ meters.
Seasonality - Gas sales follow a seasonal pattern, with an annual base-load of gas, and a large heating peak occurring during the winter season. Natural gas obtained from producers, marketers, and brokers, as well as gas in storage, is utilized to meet the peak heating season requirements. Storage contracts generally allow IPL and WPL to purchase gas in the summer and inject it into underground storage fields, and remove it from storage fields in the winter to deliver to customers.
Gas Supply - IPL and WPL maintain purchase agreements with numerous suppliers of natural gas from various gas-producing regions of the U.S. and Canada. In providing gas commodity service to retail customers, Corporate Services administers a portfolio of transportation and storage contracts on behalf of IPL and WPL. The tariffs for IPL’s and WPL’s retail gas customers provide for subsequent adjustments to their rates for the cost of gas sold to these customers. As a result, natural gas prices do not have a material impact on IPL’s or WPL’s operating income.
Other Utility Operations - Steam - IPL’s Prairie Creek facility provides steam for IPL’s two high-pressure steam customers in Iowa. These customers are each under contract through 2025 for taking minimum quantities of annual steam usage, with certain conditions.
Properties
IPL and WPL own overhead electric distribution lines, underground electric distribution cables, and substation distribution transformers, substantially all of which are located in Iowa for IPL, and Wisconsin for WPL.
Gas - IPL’s and WPL’s gas properties consist primarily of mains and services, meters, regulating and gate stations, and other related transmission and distribution equipment. IPL’s and WPL’s gas distribution facilities include gas mains located in Iowa and Wisconsin, respectively.
Other - IPL’s other property includes steam service assets.
AEF - AEF’s principal properties included
Non-utility Generation - Includes the Sheboygan Falls Energy Facility, a 347 MW, simple-cycle, natural gas-fired facility near Sheboygan Falls, Wisconsin, that was placed in service and is leased to WPL. The summer installed generating capacity included in MISO’s resource adequacy process for the planning period from June 2024 through May 2025 for the Sheboygan Falls Energy Facility was 298 MW.
Travero - Includes a short-line rail freight service in Iowa, a Mississippi River barge, rail, and truck freight terminal in Illinois, wind turbine blade recycling services, and a rail-served warehouse in Iowa.
Development-ready Sites - includes various rail-served and ready-to-build manufacturing and industrial sites throughout Iowa and Wisconsin, with access to various airports, interstate freeways, and Alliant Energy’s electric services.
Regulation
Alliant Energy is registered with FERC as a public utility holding company, pursuant to the Public Utility Holding Company Act of 2005, and is required to maintain certain records, and to report certain transactions involving its public utilities, service company, and other entities regulated by FERC. Corporate Services, IPL, and WPL are subject to regulation by FERC under the Public Utility Holding Company Act of 2005 for various matters including, but not limited to, affiliate transactions, public utility mergers, acquisitions, and dispositions, and books, records, and accounting requirements.
Midwest Reliability Organization, which is a regional member of North American Electric Reliability Corporation, has direct responsibility for mandatory electric reliability standards for IPL and WPL.
FERC also has jurisdiction, under the Federal Power Act of 1935, over certain electric utility facilities and operations, electric wholesale sales, interstate electric transmission rates, dividend payments, issuance of IPL’s securities, and accounting practices of Corporate Services, IPL, and WPL.
FERC has authority over IPL's and WPL's wholesale electric market-based rates.
FERC regulates the transportation and sale for resale of natural gas in interstate commerce under the Natural Gas Act. Under the Natural Gas Act, FERC has authority over certain natural gas facilities and operations of IPL and WPL.
IPL is subject to regulation by the IUC for various matters including, but not limited to, retail utility rates and standards of service, accounting requirements, the construction of EGUs, and the acquisition, sale, or lease of assets with values that exceed 3% of IPL’s revenues.
In accordance with Iowa law, IPL is required to file an energy efficiency plan (EEP) every five years with the IUC.
IPL must obtain a certificate of public convenience, use, and necessity (GCU Certificate) from the IUC in order to construct a new, or significantly alter (including fuel switching) an existing, EGU or energy storage facility located in Iowa with a nameplate generating capacity of 25 MW or more. IPL’s ownership and operation of EGUs (including those located outside the state of Iowa) to serve Iowa customers is subject to retail utility rate regulation by the IUC.
WPL is subject to regulation by the Public Service Commission of Wisconsin (PSCW) related to its operations in Wisconsin for various matters, including, but not limited to, retail utility rates and standards of service, accounting requirements, issuance and use of proceeds of securities, affiliate transactions, approval of the location and construction of EGUs, and certain other additions and extensions to facilities. In addition, Alliant Energy is subject to regulation by the PSCW for the type and amount of Alliant Energy’s holdings in non-utility businesses and other affiliated interest activities, among other matters.
WPL must obtain a Certificate of Public Convenience and Necessity (CPCN) from the PSCW in order to construct a new EGU (including energy storage) in Wisconsin with a capacity of 100 MW or more. In addition, WPL’s ownership and operation of EGUs (including those located outside the state of Wisconsin) to serve Wisconsin customers are subject to retail utility rate regulation by the PSCW.
In May 2024, the U.S. Environmental Protection Agency (EPA) enacted the final Section 111(d) rule under the CAA for certain fossil-fueled EGUs, which requires states to implement plans to reduce CO2 emissions through various Best System of Emission Reduction (BSER) measures at affected sources, including retirement, enforceable limits on operational capacity, co-firing with low-GHG fuels, or carbon capture and energy storage technology. State plans are subject to EPA approval, and must be submitted by May 2026. The final rule’s compliance requirements will be phased in beginning in 2030 and covers fossil-fueled EGUs that utilize steam boilers to generate electricity, including IPL’s coal-fired Ottumwa Generating Station, George Neal Generating Station, Prairie Creek Generating Station Unit 3, and Louisa Generating Station, WPL’s coal-fired Edgewater Generating Station Unit 5 (WPL currently plans to convert Edgewater Unit 5 to natural gas in 2028, subject to regulatory approvals), and IPL’s natural gas-fired Burlington Generating Station and Prairie Creek Generating Station Unit 4. The final rule does not apply to EGUs that are retired by January 2032. If WPL’s coal-fired Columbia Energy Center is retired by the end of 2029, the final rule would not be applicable; however, if WPL converts Columbia Unit 1 and/or Unit 2 to natural gas, then the final rule would be applicable for the EGUs that are converted. In addition, the final rule does not impact existing natural gas-fired combustion turbines, including IPL’s Marshalltown Generating Station and Emery Generating Station, and WPL’s Riverside Energy Center and West Riverside Energy Center; however, these EGUs could be subject to future Section 111(d) rules to reduce CO2 emissions from existing combustion turbines. Alliant Energy, IPL, and WPL are currently unable to predict with certainty the future outcome or impact of these matters, including resolution of ongoing litigation.
WPL receives, and expects to receive in the future, enough Cross-State Air Pollution Rule (CSAPR) emission allowances to ensure ongoing compliance without the need to purchase additional allowances or materially curtail operations.
Iowa and Wisconsin have renewable energy standards, which establish the minimum amount of energy IPL and WPL must supply from renewable resources. IPL primarily relies upon renewable energy generated from the wind, or solar resources it owns, and renewable energy acquired under PPAs to meet these requirements. WPL utilizes its current renewable portfolio, which primarily consists of wind, solar, and hydro energy, both owned and acquired under PPAs, to meet these requirements. IPL and WPL currently exceed their respective renewable energy standards requirements.
History
The company was formerly known as Interstate Energy Corp. and changed its name to Alliant Energy Corporation in 1999.
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