MADISON, Wis., Oct. 31 /PRNewswire-FirstCall/ -- Alliant Energy Corp.
(NYSE: LNT) today announced net income and earnings per share (EPS) for the
third quarter of 2008 of $108.5 million and $0.98, respectively, compared to
$119.6 million and $1.08 for the same period in 2007. A summary of Alliant
Energy's third quarter earnings is as follows (net income in millions):
Earnings from
continuing 2008 2007
operations: Net Income EPS Net Income EPS
Utility $101.1 $0.92 $106.6 $0.96
Non-regulated 7.1 0.06 8.4 0.08
Parent (primarily
interest income) 0.9 0.01 1.2 0.01
Total earnings from
continuing operations 109.1 0.99 116.2 1.05
Income (loss) from
discontinued operations (0.6) (0.01) 3.4 0.03
Net income $108.5 $0.98 $119.6 $1.08
(Logo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO)
EPS for Alliant Energy's utility business continued to be impacted by the
clean-up and restoration costs resulting from severe flooding in Iowa earlier
this year. The other key drivers that reduced utility earnings include the
sale of Interstate Power and Light Company (IPL) electric transmission assets
that occurred in December 2007 and the impacts of cooler weather on its
electric margins. These items were partially offset by lower operating
expenses and increased allowance for funds used during construction resulting
from wind projects under development in both Iowa and Wisconsin.
EPS for Alliant Energy's non-regulated businesses continued to experience
solid growth at RMT and WindConnect(R). This growth was more than offset by
lower earnings at Non-regulated Generation resulting from a new purchased
power agreement associated with the Neenah Energy Facility as well as various
income tax-related items.
"We have made tremendous progress in getting our Cedar Rapids area
operations back in business since the June flooding in Iowa. While we still
have much work to do at two of our generating stations, our electric load has
been restored to over 99 percent of pre-flood levels," said Bill Harvey,
Alliant Energy Chairman, President, and CEO. "Excluding the impacts of the
floods and the mild summer weather, our core utility operations posted results
in line with our expectations, and RMT and WindConnect(R) continued to deliver
strong results to our non-regulated business. Based on our year-to-date
results we are narrowing our earnings guidance range for 2008 but leaving the
midpoint unchanged."
Additional details regarding Alliant Energy's third quarter EPS from
continuing operations for 2008 and 2007 are as follows:
2008 2007 Variance
Utility operations:
Electric margins:
Net impact of weather
and weather hedges (0.04) 0.01 (0.05)
Leasing costs for standby
generating units required
due to June 2008 flooding (0.03) -- (0.03)
Electric service disruption
at IPL due to June 2008
flooding (0.02) -- (0.02)
Lower purchased power
capacity costs at
Wisconsin Power and
Light Co (WPL) 0.03
Gas margins 0.01
Other revenues (higher third
party commodity sales) 0.02
Operating expenses:
Net impact from IPL's
electric transmission
assets sale (0.07)
Midwest flooding costs in
Q3 2008, net of estimated
insurance recoveries (0.06) -- (0.06)
Incentive-related
compensation (0.01) (0.06) 0.05
Impact of new depreciation
rates at WPL effective
July 1, 2008 0.02 -- 0.02
Other 0.01
Allowance for funds used
during construction
(primarily due to wind
projects) 0.03
Equity earnings from
unconsolidated subsidiaries 0.01
Changes in effective income
tax rate:
U.S. federal income tax
audit settlement in
Q3 2007 -- 0.04 (0.04)
Other 0.04
Accretive effect of fewer
shares outstanding 0.01
Total utility operations 0.92 0.96 (0.04)
Non-regulated operations:
RMT and WindConnect(R) 0.06 0.03 0.03
Non-regulated Generation 0.02 0.04 (0.02)
Transportation 0.02 0.02 --
Other (primarily taxes) (0.04) (0.01) (0.03)
Total non-regulated operations 0.06 0.08 (0.02)
Parent company (primarily
interest income) 0.01 0.01 --
Earnings per share from
continuing operations $0.99 $1.05 ($0.06)
The following comments are offered to further explain the larger drivers
of earnings performance during the third quarter of 2008:
Midwest flooding: Electric margins, as well as operating and maintenance
expenses, continued to be adversely impacted by the June 2008 flooding that
occurred in IPL's service territory. The flood-related impact recorded in the
third quarter reduced earnings by $0.11 per share. When combined with the
$0.07 per share earnings reduction from the second quarter, the year-to-date
flood-related reduction to earnings is $0.18 per share.
Weather: Cooling degree days for the third quarter of 2008 were 43% and
18% below normal at IPL and WPL, respectively. The resulting impact of $13
million of lower electric margins was partially offset by summer weather
hedges at both IPL and WPL. A $6 million gain from the weather hedge was
recorded in the third quarter as a result of the cooler than normal weather.
In total, cooler weather reduced third quarter electric margins by $7 million,
an EPS impact of $0.04.
Other operating expenses: Alliant Energy does not currently anticipate a
payout under its short-term incentive compensation plan in 2008 and therefore
made no accrual in the third quarter. In the third quarter of 2007, an $11
million pre-tax accrual was recorded under the plan for that year. Under the
short-term plan incentives are paid only if the utilities produce earnings
that exceed the midpoint of their guidance established at the beginning of the
year. For 2008, the midpoint of utility guidance at the beginning of the year
was $2.33 per share; the midpoint of the current utility range is $2.30 per
share. Operating expenses were also lower for the third quarter of 2008 as
the result of new depreciation rates that went into effect at the beginning of
the third quarter at WPL.
Allowance for funds used during construction: As of September 30, 2008,
the construction work in progress balance for IPL's Whispering Willow - East
Wind Farm and WPL's Cedar Ridge Wind Farm were $156 million and $136 million,
respectively. The Cedar Ridge project is expected to be in service in the
fourth quarter of 2008. The Whispering Willow - East project is expected to
be in service in 2010.
Changes in effective income tax rate and non-regulated operations - other:
The utility effective income tax rate was unchanged at 35% in the third
quarter of 2008 versus the same period a year ago. In the third quarter of
2007, the utility effective rate benefited from settlement of a U.S. federal
income tax audit, while in the third quarter of 2008 higher claimed research
and development expenditures provided a similar result. Non-regulated
operations experienced an effective income tax rate of 57% for the third
quarter of 2008 versus 42% in the third quarter of 2007. The higher 2008 rate
for non-regulated operations resulted from the impacts of adjustments from on-
going federal income tax audits.
2008 Earnings Guidance
Alliant Energy is narrowing its 2008 earnings guidance range for earnings
from continuing operations to $2.65 - $2.75 per share, which also includes
narrowing the utility business earnings range to $2.25 - $2.35 per share.
2008 earnings guidance for non-regulated businesses has been reduced modestly
due to a higher forecasted effective tax rate. Details of the current and
prior guidance for 2008 are as follows:
Current Prior
Utility business $2.25 - 2.35 $2.20 - 2.40
Non-regulated businesses 0.28 - 0.32 0.30 - 0.34
Parent company 0.08 - 0.10 0.08 - 0.10
Alliant Energy $2.65 - 2.75 $2.60 - 2.80
The guidance does not include the impact of certain non-cash valuation
adjustments that Alliant Energy may incur, the impact of any future
adjustments made to Alliant Energy's deferred tax asset valuation allowances,
the impacts of any cumulative effects of changes in accounting principles, any
gains/losses and related tax impact that may be realized from possible sales
of certain Alliant Energy assets that would be reported in earnings from
continuing operations, or the potential tax impacts of capital costs
components of the flooding yet to be finalized for which deferred tax expense
is not recorded pursuant to Iowa tax rate making principles. Finally, the
guidance also assumes that no businesses will be re-classified to
"discontinued operations."
Drivers for Alliant Energy's earnings estimates include, but are not
limited to:
-- Flood-related issues, including anticipated amount of operating and
maintenance expenses, levels of steam margins, and insurance and
regulatory recoveries
-- Normal weather conditions in its utility service territories for the
remainder of 2008
-- Ability to recover future purchased power, fuel and fuel-related
costs through rates in a timely manner
-- State of economy in its utility service territory and resulting
implications on sales
-- Continuing cost controls and operational efficiencies
-- Ability of IPL and WPL to recover their operating costs and deferred
expenditures, and to earn a reasonable rate of return in current and
future rate proceedings
-- Execution of IPL's and WPL's generation build-out and environmental
expenditure plans
-- Ability to utilize tax capital losses generated to-date, and those
that may be generated in the future, before they expire
-- Execution of RMT and WindConnect(R) projects as planned
Earnings Conference Call
A conference call to review the third quarter 2008 results is scheduled
for Friday, October 31st at 9:00 a.m. central time. Alliant Energy Chairman,
President and Chief Executive Officer William D. Harvey and Senior Executive
Vice President and Chief Financial Officer Eliot G. Protsch will host the
call. The conference call is open to the public and can be accessed in two
ways. Interested parties may listen to the call by dialing 866-454-4207
(United States or Canada) or 913-312-6697 (International), passcode 4623087.
Interested parties may also listen to a webcast at
http://www.alliantenergy.com/investors. A replay of the call will be
available through November 7, 2008, at 888-203-1112 (United States or Canada)
or 719-457-0820 (International), passcode 4623087. An archive of the webcast
will be available on the Company's Web site at
http://www.alliantenergy.com/investors for 12 months.
Alliant Energy is the parent company of two public utility companies --
Interstate Power and Light Company and Wisconsin Power and Light Company --
and of Alliant Energy Resources, Inc., the parent company of Alliant Energy's
non-regulated operations. Alliant Energy is an energy-services provider with
subsidiaries serving approximately 1 million electric and 400,000 natural gas
customers. Providing its customers in the Midwest with regulated electricity
and natural gas service is the Company's primary focus. Alliant Energy,
headquartered in Madison, Wis., is a Fortune 1000 company traded on the New
York Stock Exchange under the symbol LNT. For more information, visit the
Company's Web site at http://www.alliantenergy.com.
This press release includes forward-looking statements. These forward-
looking statements can be identified as such because the statements include
words such as "expect" or other words of similar import. Similarly,
statements that describe future financial performance or plans or strategies
are forward-looking statements. Such statements are subject to certain risks
and uncertainties that could cause actual results to differ materially from
those currently anticipated. Actual results could be affected by the
following factors, among others: federal and state regulatory or governmental
actions, including the impact of energy-related and tax legislation and
regulatory agency orders; IPL's and WPL's ability to obtain adequate and
timely rate relief to allow for, among other things, the recovery of operating
costs, capital expenditures and deferred expenditures, the earning of
reasonable rates of return and the payment of expected levels of dividends;
current or future litigation, regulatory investigations, proceedings or
inquiries; Alliant Energy Resources, Inc.'s (AER) ability to successfully
defend against, and any liabilities arising out of, the alleged default by AER
under the Indenture related to its Exchangeable Senior Notes due 2030
(PHONES); Alliant Energy's ability to successfully defend against, and any
liabilities arising out of, the alleged violation of ERISA by the cash balance
pension plan; developments that adversely impact the ability to implement
strategic plans including unanticipated issues in connection with construction
of their new generating facilities and WPL's potential purchases of the
Riverside Energy Center and AER's electric generating facility in Neenah,
Wisconsin; issues related to the availability of generating facilities and the
supply and delivery of fuel and purchased electricity and price thereof,
including the ability to recover and retain purchased power, fuel and fuel-
related costs through rates in a timely manner; the impact fuel and fuel-
related prices and other economic conditions may have on IPL's and WPL's
customers' demand for utility services; IPL's and WPL's ability to collect
unpaid utility bills; issues associated with environmental remediation efforts
and with environmental compliance generally including changing environmental
laws and regulations (including the impacts of the CAIR vacatur and the
vacatur's impact on emission allowance forward contracts) and the ability to
recover through rates all environmental compliance costs; potential impacts of
any future laws or regulations regarding global climate change or carbon
emissions reductions; weather effects on results of operations; financial
impacts of hedging strategies, including the impact of weather hedges on
earnings; unplanned outages at generating facilities and risks related to
recovery of incremental costs through rates; impacts that storms or natural
disasters in IPL's and WPL's service territories may have on IPL's and WPL's
operations, including uncertainties associated with efforts to remediate the
effects of the June 2008 Midwest flooding, reimbursement of storm-related
costs covered by insurance, rate relief for costs associated with restoration
and impacts of the flooding on the economic conditions of the affected service
territories; economic and political conditions in IPL's and WPL's service
territories; the growth rate of ethanol and biodiesel production in IPL's and
WPL's service territories; Alliant Energy's ability to achieve and/or sustain
its dividend payout ratio goal; any material post-closing adjustments related
to any of their past asset divestitures; employee workforce factors, including
changes in key executives, collective bargaining agreements or work stoppages;
continued access to the capital markets under competitive terms and rates;
access to technological developments; issues related to electric transmission,
including operating in the Midwest Independent Transmission System Operator
(MISO) energy market, the impacts of potential future billing adjustments from
MISO and recovery of costs incurred; inflation and interest rates; the impact
of necessary accruals for the terms of incentive compensation plans; the
effect of accounting pronouncements issued periodically by standard-setting
bodies; the ability to continue cost controls and operational efficiencies;
the ability to utilize tax capital losses generated to date, and those that
may be generated in the future, before they expire; the direct or indirect
effects resulting from terrorist incidents or responses to such incidents; the
ability to successfully complete ongoing tax audits and appeals with no
material impact on earnings and cash flows. Without limitation, the
expectations with respect to projected earnings in the "2008 Earnings
Guidance" section of this press release are forward-looking statements and are
based in part on certain assumptions made by Alliant Energy, some of which are
referred to in the forward-looking statements. Alliant Energy cannot provide
any assurance that the assumptions referred to in the forward-looking
statements or otherwise are accurate or will prove to be correct. Any
assumptions that are inaccurate or do not prove to be correct could have a
material adverse effect on Alliant Energy's ability to achieve the estimates
or other targets included in the forward-looking statements. The forward-
looking statements included herein are made as of the date hereof and Alliant
Energy undertakes no obligation to update publicly such statements to reflect
subsequent events or circumstances.
Note: Unless otherwise noted, all "per share" references in this release
refer to earnings per diluted share.
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
(dollars in millions, except per share amounts)
Operating revenues:
Utility:
Electric $714.0 $733.5 $1,858.4 $1,852.5
Gas 73.5 56.3 503.1 438.6
Other 30.8 16.2 64.3 49.6
Non-regulated 162.0 101.3 373.9 225.5
980.3 907.3 2,799.7 2,566.2
Operating expenses:
Utility:
Electric production
fuel and purchased
power 317.2 323.6 876.3 855.6
Electric
transmission
service 49.2 22.9 139.3 68.5
Cost of gas sold 46.9 31.7 365.8 304.5
Other operation
and maintenance 151.3 149.5 442.6 452.0
Non-regulated operation
and maintenance 141.5 83.9 318.8 185.3
Depreciation and
amortization 57.9 65.3 181.2 197.3
Taxes other than
income taxes 25.8 26.8 78.1 81.6
789.8 703.7 2,402.1 2,144.8
Operating income 190.5 203.6 397.6 421.4
Interest expense and
other:
Interest expense 30.0 29.0 90.0 86.3
Equity income from
unconsolidated
investments, net (9.6) (7.2) (24.3) (21.7)
Allowance for funds
used during
construction (8.4) (2.1) (15.8) (5.5)
Preferred dividend
requirements of
subsidiaries 4.6 4.6 14.0 14.0
Interest income
and other (2.8) (2.1) (14.1) (13.0)
13.8 22.2 49.8 60.1
Income from continuing
operations before
income taxes 176.7 181.4 347.8 361.3
Income taxes 67.6 65.2 118.8 134.9
Income from continuing
operations 109.1 116.2 229.0 226.4
Income (loss) from
discontinued
operations, net of tax (0.6) 3.4 8.4 5.7
Net income $108.5 $119.6 $237.4 $232.1
Weighted average
number of common
shares outstanding
(basic) (000s) 110,182 110,881 110,166 113,026
Weighted average
number of common
shares outstanding
(diluted) (000s) 110,313 111,056 110,313 113,279
Earnings per weighted
average common share
(basic and diluted):
Income from
continuing
operations $0.99 $1.05 $2.08 $2.00
Income (loss) from
discontinued
operations (0.01) 0.03 0.07 0.05
Net income $0.98 $1.08 $2.15 $2.05
Dividends declared
per common share $0.35 $0.3175 $1.05 $0.9525
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, December 31,
ASSETS 2008 2007
(in millions)
Property, plant and equipment:
Utility:
Electric plant in service $5,743.5 $5,633.7
Gas plant in service 750.5 726.3
Other plant in service 468.5 466.8
Accumulated depreciation (accum. depr.) (2,725.6) (2,692.5)
Net plant 4,236.9 4,134.3
Construction work in progress:
Whispering Willow - East Wind Farm 156.1 --
Cedar Ridge Wind Farm 136.3 41.8
Other 225.7 153.6
Other, less accum. depr. 21.9 4.6
Total utility 4,776.9 4,334.3
Non-regulated and other:
Non-regulated Generation, less
accum. depr. 232.5 240.5
Other non-regulated investments,
less accum. depr. 63.8 66.1
Alliant Energy Corporate Services, Inc.
and other, less accum. depr. 44.0 39.0
Total non-regulated and other 340.3 345.6
5,117.2 4,679.9
Current assets:
Cash and cash equivalents 379.4 745.6
Accounts receivable:
Customer, less allowance for doubtful
accounts 134.4 154.7
Unbilled utility revenues 90.8 151.6
Other, less allowance for doubtful
accounts 95.9 40.6
Production fuel, at weighted average cost 107.8 92.2
Materials and supplies, at weighted
average cost 50.0 45.6
Gas stored underground, at weighted
average cost 83.8 70.5
Regulatory assets 53.5 58.5
Derivative assets 31.5 34.1
Other 91.5 78.9
1,118.6 1,472.3
Investments:
Investment in American Transmission
Company LLC 188.6 172.2
Other 63.7 65.7
252.3 237.9
Other assets:
Regulatory assets 506.1 491.7
Deferred charges and other 302.4 307.9
808.5 799.6
Total assets $7,296.6 $7,189.7
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued)
September 30, December 31,
CAPITALIZATION AND LIABILITIES 2008 2007
(in millions, except per
share and share amounts)
Capitalization:
Common stock - $0.01 par value -
authorized 240,000,000 shares;
outstanding 110,449,099 and
110,359,314 shares $1.1 $1.1
Additional paid-in capital 1,495.5 1,483.4
Retained earnings 1,324.2 1,205.2
Accumulated other comprehensive income -- 0.2
Shares in deferred compensation trust -
248,377 and 294,196 shares at a weighted
average cost of $30.95 and $29.65
per share (7.7) (8.7)
Total common equity 2,813.1 2,681.2
Cumulative preferred stock of
subsidiaries, net 243.8 243.8
Long-term debt, net (excluding
current portion) 1,255.1 1,404.5
4,312.0 4,329.5
Current liabilities:
Current maturities of long-term debt 286.8 140.1
Commercial paper 67.9 81.8
Other short-term borrowings -- 29.5
Accounts payable 396.4 346.7
Regulatory liabilities 63.5 86.5
Accrued taxes 52.6 74.7
Derivative liabilities 44.8 24.3
Other 138.0 153.4
1,050.0 937.0
Other long-term liabilities and
deferred credits:
Deferred income taxes 860.4 822.9
Regulatory liabilities 659.1 656.4
Pension and other benefit obligations 199.9 206.4
Other 213.1 233.6
1,932.5 1,919.3
Minority interest 2.1 3.9
Total capitalization and liabilities $7,296.6 $7,189.7
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Nine Months
Ended September 30,
2008 2007
(in millions)
Cash flows from operating activities:
Net income $237.4 $232.1
Adjustments to reconcile net income to
net cash flows from operating activities:
Depreciation and amortization 181.2 197.3
Other amortizations 34.8 35.8
Deferred tax expense and investment
tax credits 4.2 48.5
Equity income from unconsolidated
investments, net (24.3) (21.7)
Distributions from equity method investments 20.9 16.4
Other (1.2) (16.8)
Other changes in assets and liabilities:
Accounts receivable (26.2) 42.7
Sale of accounts receivable 50.0 (75.0)
Production fuel (15.6) (19.3)
Gas stored underground (13.3) (10.1)
Regulatory assets (32.0) 52.9
Accounts payable 45.3 (6.0)
Accrued taxes (21.9) 11.2
Derivative liabilities 25.7 (53.7)
Regulatory liabilities (24.6) (31.9)
Accrued incentive compensation and other (39.1) (24.5)
Net cash flows from operating activities 401.3 377.9
Cash flows used for investing activities:
Construction and acquisition expenditures:
Utility business (619.1) (353.6)
Alliant Energy Corporate Services, Inc.
and non-regulated businesses (21.2) (17.5)
Proceeds from asset sales 10.1 127.8
Purchases of emission allowances -- (23.9)
Other 21.5 25.6
Net cash flows used for investing
activities (608.7) (241.6)
Cash flows used for financing activities:
Common stock dividends (115.7) (108.2)
Repurchase of common stock (1.7) (296.7)
Proceeds from issuance of common stock 1.3 32.9
Proceeds from issuance of long-term debt -- 300.0
Reductions in long-term debt (3.1) (222.5)
Net change in short-term borrowings (43.4) (19.0)
Other 3.8 19.3
Net cash flows used for financing
activities (158.8) (294.2)
Net decrease in cash and cash equivalents (366.2) (157.9)
Cash and cash equivalents at beginning
of period 745.6 266.0
Cash and cash equivalents at end of period $379.4 $108.1
KEY FINANCIAL STATISTICS
Sep. 30, 2008 Sep. 30, 2007
Common shares outstanding (000s) 110,449 110,316
Book value per share $25.47 $22.77
Quarterly common dividend rate per share $0.35 $0.3175
KEY OPERATING STATISTICS
Three Months Ended Nine Months Ended
Sep. 30, Sep. 30,
2008 2007 2008 2007
Utility electric sales
(000s of MWh)
Residential 2,075 2,300 5,816 5,960
Commercial 1,651 1,692 4,638 4,665
Industrial 3,203 3,267 9,395 9,510
Retail subtotal 6,929 7,259 19,849 20,135
Sales for resale:
Wholesale 1,010 967 2,834 2,650
Bulk power and other 66 534 658 1,663
Other 38 40 125 126
Total 8,043 8,800 23,466 24,574
Utility retail electric
customers (at Sep. 30)
Residential 839,625 838,285
Commercial 134,209 133,533
Industrial 2,953 2,939
Total 976,787 974,757
Utility gas sold and
transported (000s
of Dth)
Residential 1,645 1,511 20,731 19,236
Commercial 2,004 1,737 14,926 13,309
Industrial 988 739 3,464 3,220
Retail subtotal 4,637 3,987 39,121 35,765
Interdepartmental 509 1,243 1,244 2,080
Transportation /
other 13,555 14,038 44,832 43,597
Total 18,701 19,268 85,197 81,442
Utility retail gas
customers (at Sep. 30)
Residential 362,804 360,424
Commercial 44,956 44,881
Industrial 570 591
Total 408,330 405,896
Margin increases
(decreases) from
net impacts of
weather (in
millions) -
Electric margins -
Weather impacts on
demand compared
to normal weather ($13) $5 ($13) $6
Gains (losses)
from weather
derivatives 6 (3) 6 (3)
Net weather impact ($7) $2 ($7) $3
Gas margins -
Weather impacts on
demand compared
to normal weather $-- $-- $9 $--
Gains (losses)
from weather
derivatives -- -- (3) (2)
Net weather impact $-- $-- $6 ($2)
Three Months Ended Nine Months Ended
Sep. 30, Sep. 30,
2008 2007 Normal(b) 2008 2007 Normal(b)
Cooling degree
days (CDDs) (a)
Cedar Rapids,
Iowa (IPL) 142 262 248 168 351 347
Madison,
Wisconsin (WPL) 157 251 191 185 320 261
Heating degree
days (HDDs) (a)
Cedar Rapids,
Iowa (IPL) 117 97 147 4,840 4,207 4,148
Madison,
Wisconsin (WPL) 105 124 198 4,885 4,384 4,527
(a) Alliant Energy entered into weather derivatives based on CDDs and
HDDs to reduce potential volatility on its margins from the impacts
of weather during the months of June through August and January
through March, respectively.
(b) Normal degree days are calculated using a 20-year rolling average.
