Morningstar | Alliant's Renewable Energy Investment Opportunities Drive Growth
Our projected five-year, $7.0 billion capital investment plan supports Alliant's 6.5% earnings growth projection, consistent with management's 5%-7% target. Alliant Energy currently expects $5.7 billion in capital spend beyond 2023, supporting growth beyond our five-year forecast.At Interstate Power & Light, or IPL, the focus will turn toward renewable energy after completing the 600 MW Marshall Generating Station in 2017. IPL received approval for 1,000 MW of wind generation in Iowa with an 11.0% allowed return. We wouldn't be surprised if management is able to identify future investments given the state's appetite for wind energy, which benefits from great wind resources and is a significant economic driver in the region.Alliant recently entered into an agreement to amend its PPA at the nuclear Duane Arnold Energy Center, ending the PPA in December 2020, five years before expiration. The generation will be replaced by approximatley 300 MW of wind energy beginning in 2020 and 2021. This continues Alliant's renewable energy push, and we think it bodes well for further renewable energy investments in the state.At Wisconsin Power & Light, or WPL, Alliant's 730 MW West Riverside Energy Center Expansion replaces retiring coal generation. The project is expected to be in service in 2019, with three electric cooperatives signing on for 65 MW of the power. Management has identified 200 MW of wind generation opportunities in the state. Alliant benefits from operating in what we consider two of the most favorable regulatory jurisdictions. To maintain earned returns near allowed returns during this period of high investment, management has reduced regulatory lag risk via a new transmission cost rider in Iowa, new fuel-cost recovery rules in Wisconsin that limit its exposure to volatile fuel costs, and an objective to keep operating costs flat for the near term. American Transmission, which we consider a wide-moat business, is tucked away from consolidated results (16% equity interest). Year-end rate base was $3.5 billion, with ATC forecasting an additional $2.8 billion to $3.4 billion in transmission investments through 2027.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.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.