Alliant Energy Corp. on Aug. 3 unveiled its plans to add up to 500 MW of wind energy in Iowa, which, when combined with previously approved expansions, would represent a $1.8 billion investment and add up to 1,000 MW of new wind capacity in the state.
Through its Interstate Power & Light Co. subsidiary, Alliant Energy filed an application with the Iowa Utilities Board seeking approval for the proposed wind investment, as well as for advance rate-making principles. The company is seeking a cost cap of $1,780/kW, including allowance for funds used during construction and transmission costs, an 11% return on common equity, a 40-year depreciable life and a 10% AFUDC ROE used for modeling that allows for the higher of 10% or the 2016 test-year base rate review result. (RPU-2017-0002)
The state regulator is expected to make a decision in early 2018. The projects are expected go online by the end of 2020.
On the earnings side, Alliant Energy reported second-quarter net income attributable to its common shareholders of $94.3 million, or 41 cents per share, compared to $83.9 million, or 37 cents per share, in the comparable quarter of 2016. The S&P Capital IQ consensus normalized EPS estimate for the quarter was 38 cents.
The company generated $765.3 million in operating revenues for the quarter, up from $754.6 million a year ago, and reported operating income of $149.3 million from $128.6 million in the second quarter of 2015.
"The second quarter results were in line with our expectations and reflect earnings on our increasing rate base," Alliant Energy Chairman, President and CEO Patricia Kampling said. "With the solid earnings to date, we are reaffirming 2017 earnings per share guidance."
The company continues to target full-year 2017 EPS in the range of $1.92 to $2.06.