Morningstar | Alliant on Track to Meet Full-Year Expectations, Reports First-Quarter Earnings
We are reaffirming our $41 per share value estimate after Alliant Energy reported first-quarter operating earnings of $0.53, up from $0.52 in the same year-ago period. Management reaffirmed its 2019 earnings guidance of $2.17 to $2.31, in line with our estimate. We continue to forecast future dividend increases will continue in line with earnings growth, which we estimate at 6%.On the regulatory front, Alliant Energy's Interstate Power and Light subsidiary filed for a base rate review with a historical 2018 test year for interim electric rates and a forecast 2020 test year for electric and gas. This regulatory construct is consistent with constructive regulatory jurisdictions. We continue to expect an outcome in line with previous cases, which we viewed as constructive. The procedural schedules have been set, with an outcome expected by year-end.
Management is also progressing well on its capital plan. Its current five-year $7 billion capital plan focuses on renewable energy and gas distribution investments. Alliant Energy currently expects $5.7 billion in capital spend from 2023 to 2027, which we think should support 5%-6% annual earnings growth during those years. On the renewable energy front, Alliant placed into service 470 megawatts in March in Iowa, part of the company's plan to install 1.0 GW of wind generation in the state.
For the quarter, earnings were supported by rate base increases at both Interstate Power and Light and Wisconsin Power and Light. Colder-than-normal weather also helped results. Financing plans in 2019 include issuing up to $400 million in equity, and $750 million in debt when including $250 million in maturities.
Alliant Energy is a public utility holding company, engaged in providing regulated electric and natural gas service. The company's subsidiaries are: Interstate Power and Light Company, which is 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; Wisconsin Power and Light Company, which is 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; and Alliant Energy Finance, LLC, which manages a portfolio of wholly-owned subsidiaries and additional holdings.
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