COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 1(a) General -
Description of Business - Alliant Energy’s financial statements include the accounts of Alliant Energy and its consolidated subsidiaries. Alliant Energy is a Midwest U.S. energy holding company, whose primary wholly-owned subsidiaries are IPL, WPL, AEF and Corporate Services.
IPL’s financial statements include the accounts of IPL and its consolidated subsidiary, IPL SPE LLC, which is used for IPL’s sales of accounts receivable program. IPL is a direct subsidiary of Alliant Energy and 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 also sells electricity to wholesale customers in Minnesota, Illinois and Iowa, and is engaged in the generation and distribution of steam for two customers in Cedar Rapids, Iowa.
WPL’s financial statements include the accounts of WPL and its consolidated subsidiary. WPL is a direct subsidiary of Alliant Energy and 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 also sells electricity to wholesale customers in Wisconsin.
AEF is comprised of Travero (formerly known as Transportation), ATI, a non-utility wind farm, the Sheboygan Falls Energy Facility and other non-utility holdings. Travero includes a short-line rail freight service in Iowa; a barge, rail and truck freight terminal on the Mississippi River; and freight brokerage and logistics management services. ATI, a wholly-owned subsidiary of AEF, holds all of Alliant Energy’s interest in ATC Holdings. The non-utility wind farm includes a 50% cash equity ownership interest in a 225 MW wind farm located in Oklahoma. The Sheboygan Falls Energy Facility is a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is leased to WPL for an initial period of 20 years ending in 2025.
Corporate Services is the subsidiary formed to provide administrative services to Alliant Energy and its subsidiaries.
In March 2020, COVID-19 was declared a global pandemic, which has resulted in widespread travel restrictions, closures of commercial spaces and industrial facilities, and more people working from home in Alliant Energy’s service territories. For 2020, Alliant Energy, IPL and WPL considered the impact of COVID-19 on their overall business operations, financial condition, results of operations and cash flows, along with assumptions and estimates used. While the total expected impact of COVID-19 on future sales is currently unknown, Alliant Energy, IPL and WPL have experienced higher electric residential sales and lower electric commercial and industrial sales since the outset of the pandemic. The degree to which the COVID-19 pandemic may impact Alliant Energy, IPL and WPL in the future is currently unknown and will depend on future developments of the pandemic as well as possible additional actions by government and regulatory authorities.
Basis of Presentation - The financial statements reflect investments in controlled subsidiaries on a consolidated basis and Alliant Energy’s, IPL’s and WPL’s proportionate shares of jointly-owned utility EGUs. Unconsolidated investments that Alliant Energy and WPL do not control are accounted for under the equity method of accounting. Under the equity method of accounting, Alliant Energy and WPL initially record the investment at cost, and adjust the carrying amount of the investment to recognize their respective share of the earnings or losses of the investee. Dividends received from an investee reduce the carrying amount of the equity investment. Investments that do not meet the criteria for consolidation or the equity method of accounting are accounted for under the cost method.
All intercompany balances and transactions, other than certain transactions affecting the rate-making process at IPL and WPL, have been eliminated from the financial statements. Such transactions not eliminated include costs that are recoverable from customers through rate-making processes. The financial statements are prepared in conformity with GAAP, which give recognition to the rate-making practices of FERC and state commissions having regulatory jurisdiction.
Certain prior period amounts in the Financial Statements and Notes have been reclassified to conform to the current period presentation for comparative purposes.
Use of Estimates - The preparation of the financial statements requires management to make estimates and assumptions that affect: (a) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (b) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
NOTE 1(b) Regulatory Assets and Regulatory Liabilities - Alliant Energy, IPL and WPL are subject to regulation by FERC and various state regulatory commissions. As a result, Alliant Energy, IPL and WPL are subject to GAAP provisions for regulated operations, which provide that rate-regulated public utilities record certain costs and credits allowed in the rate-
making process in different periods than for non-utility entities. Regulatory assets generally represent incurred costs that have been deferred as such costs are probable of recovery in future customer rates. Regulatory liabilities generally represent obligations to make refunds to customers or amounts collected in rates for which the related costs have not yet been incurred. Amounts recorded as regulatory assets or regulatory liabilities are generally recognized in the income statements at the time they are reflected in rates.
NOTE 1(c) Income Taxes - The liability method of accounting is followed for deferred taxes, which requires the establishment of deferred tax assets and liabilities, as appropriate, for temporary differences between the tax basis of assets and liabilities and the amounts reported in the financial statements. Deferred taxes are recorded using currently enacted tax rates and estimates of state apportionment. Changes in deferred tax assets and liabilities associated with certain property-related differences at IPL are accounted for differently than other subsidiaries of Alliant Energy due to rate-making practices in Iowa. Rate-making practices in Iowa do not include the impact of certain deferred tax expenses (benefits) in the determination of retail rates. Based on these rate-making practices, deferred tax expense (benefit) related to these property-related differences at IPL is not recorded in the income statement but instead recorded to regulatory assets or regulatory liabilities until these temporary differences reverse. In Wisconsin, the PSCW allows rate recovery of deferred tax expense on all temporary differences.
Investment tax credits are deferred and amortized to income over the average lives of the related property. Federal Tax Reform repealed corporate federal alternative minimum tax and allowed unutilized alternative minimum tax credits to be refunded over four tax years beginning with the U.S. federal tax return for calendar year 2018. Pursuant to the Coronavirus Aid, Relief, and Economic Security Act, Alliant Energy received the remaining alternative minimum tax credits refunds in 2020. Other tax credits reduce income tax expense in the year claimed.
Alliant Energy files a consolidated federal income tax return and a combined return in Wisconsin, which include Alliant Energy and its subsidiaries. Alliant Energy subsidiaries with a presence in Iowa file as part of a consolidated return in Iowa.
Alliant Energy allocates consolidated income tax expense to its subsidiaries that are members of the group that file a consolidated or combined income tax return. IPL and WPL use the modified separate return approach for calculating their income tax provisions and related deferred tax assets and liabilities. IPL and WPL are assumed to file separate tax returns with the federal and state taxing authorities, except that net operating losses (and other current or deferred tax attributes) are characterized as realized (or realizable) by IPL and WPL when those tax attributes are realized (or realizable) by the consolidated tax return group of Alliant Energy (even if IPL and WPL would not otherwise have realized the attributes on a stand-alone basis). The difference in the income taxes recorded for IPL and WPL under the modified separate return method compared to the income taxes recorded on a separate return basis was not material in 2020, 2019 and 2018.
NOTE 1(d) Cash, Cash Equivalents and Restricted Cash - Cash and cash equivalents include short-term liquid investments that have original maturities of less than 90 days. At December 31, 2020, Alliant Energy’s and IPL’s cash and cash equivalents included $44 million and $44 million of money market fund investments, with interest rates of 0.04% and 0.04%, respectively. At December 31, 2020 and 2019, restricted cash primarily related to requirements in Sheboygan Power, LLC’s debt agreement.
NOTE 1(e) Property, Plant and Equipment -
Utility Plant -
General - Utility plant is recorded at the original cost of acquisition or construction, which includes material, labor, contractor services, AFUDC and allocable overheads, such as supervision, engineering, benefits, certain taxes and transportation. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Property, plant and equipment that is probable of being retired early is classified as plant anticipated to be retired early. Generally, ordinary retirements of utility plant and salvage value are netted and charged to accumulated depreciation upon removal from utility plant accounts and no gain or loss is recognized consistent with rate-making principles. However, if regulators have approved recovery of the remaining net book value of property, plant and equipment that is retired early, or such approval by regulators is probable, the remaining net book value is reclassified from property, plant and equipment to regulatory assets upon retirement.
Depreciation - IPL and WPL use a combination of remaining life and straight-line depreciation methods as approved by their respective regulatory commissions. The composite or group method of depreciation is used, in which a single depreciation rate is applied to the gross investment in a particular class of property. This method pools similar assets and then depreciates each group as a whole. Periodic depreciation studies are performed to determine the appropriate group lives, net salvage, estimated cost of removal and group depreciation rates. These depreciation studies are subject to review and approval by IPL’s and WPL’s respective regulatory commissions. Depreciation expense is included within the recoverable cost of service component of rates collected from customers. The average rates of depreciation for electric, gas and other properties, consistent with current rate-making practices, were as follows:
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IPL
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WPL
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2020
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2019
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2018
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2020
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2019
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2018
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Electric - generation
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3.5%
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3.8%
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3.6%
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3.5%
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3.6%
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3.6%
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Electric - distribution
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2.8%
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2.9%
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2.8%
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2.6%
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2.6%
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2.6%
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Electric - other
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5.2%
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5.3%
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4.7%
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6.1%
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5.8%
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5.7%
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Gas
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3.3%
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3.3%
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3.2%
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2.4%
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2.5%
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2.5%
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Other
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6.3%
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5.9%
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5.2%
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5.9%
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5.6%
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5.8%
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AFUDC - AFUDC represents costs to finance construction additions, including a return on equity component and cost of debt component as required by regulatory accounting. AFUDC for IPL’s construction projects is calculated in accordance with FERC guidelines. AFUDC for WPL’s retail and wholesale jurisdiction construction projects is calculated in accordance with PSCW and FERC guidelines, respectively. The AFUDC rates, computed in accordance with the prescribed regulatory formula, were as follows:
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2020
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2019
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2018
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IPL (Wind generation CWIP)
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7.1%
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7.4%
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7.5%
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IPL (other CWIP)
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7.2%
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7.5%
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7.5%
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WPL (retail jurisdiction)
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7.0%
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6.8%
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7.7%
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WPL (wholesale jurisdiction)
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6.3%
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6.9%
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7.2%
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In accordance with their respective regulatory commission decisions, IPL applies its AFUDC rates to 100% of applicable CWIP balances and WPL generally applies its AFUDC rates to 50% of applicable CWIP balances. WPL may apply its AFUDC rates to 100% of the retail portion of the CWIP balances for construction projects requiring a CA or CPCN that were approved by the PSCW after its then most recent rate order, including West Riverside.
Non-utility and Other Property -
General - Non-utility property is recorded at the original cost of acquisition or construction, which includes material, labor and contractor services. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Upon retirement or sale of non-utility property, the original cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the income statements.
Costs related to software developed or obtained for internal use are capitalized and amortized on a straight-line basis over the estimated useful life of the related software. If software is retired prior to being fully amortized, the remaining book value is recorded as a loss in the income statements.
NOTE 1(f) Revenue Recognition -
Utility - Revenues from Alliant Energy’s utility business are primarily from electric and gas sales to customers. Utility revenues are recognized over time as services are rendered or commodities are delivered to customers, and include billed and unbilled components. The billed component is based on the reading of customers’ meters, which occurs on a systematic basis throughout each reporting period and represents the fair value of the services provided or commodities delivered. The unbilled component is estimated and recorded at the end of each reporting period based on estimated amounts of energy delivered to customers since the end of each customer’s last billing period. The unbilled component is based on estimates of daily system demand volumes, customer usage by class, temperature impacts, line losses and the most recent customer rates.
IPL and WPL accrue revenues from their wholesale customers to the extent that the actual net revenue requirements calculated in accordance with FERC-approved formula rates for the reporting period are higher or lower than the amounts billed to wholesale customers during such period. Regulatory assets or regulatory liabilities are recorded as the offset for these accrued revenues under formulaic rate-making programs. As of December 31, 2020, the related amounts accrued for IPL and WPL were not material.
IPL and WPL participate in bid/offer-based wholesale energy and ancillary services markets operated by MISO. The MISO transactions are grouped together, resulting in a net supply to or net purchase from MISO for each hour of each day. The net supply to MISO is recorded as bulk power sales in “Electric utility revenues” and the net purchase from MISO is recorded in “Electric production fuel and purchased power” in the income statements.
Non-utility - Revenues from Alliant Energy’s non-utility businesses are primarily from its Travero business and are recognized over time as services are rendered to customers.
Taxes Collected from Customers - Sales or various other taxes collected by certain of Alliant Energy’s subsidiaries on behalf of other agencies are recorded on a net basis and are not included in revenues.
Other - Alliant Energy, IPL and WPL do not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one year or less; and (ii) contracts for which revenue is recognized at the amount to which they have the right to invoice for services performed.
NOTE 1(g) Utility Cost Recovery Mechanisms
Electric Production Fuel and Purchased Power (Fuel-related Costs) - Fuel-related costs are incurred to generate and purchase electricity to meet the demand of IPL’s and WPL’s electric customers. These fuel-related costs include the cost of fossil fuels (primarily natural gas and coal) used to produce electricity at their EGUs, and electricity purchased from MISO wholesale energy markets and under PPAs. These fuel-related costs are recorded in “Electric production fuel and purchased power” in the income statements.
IPL Retail - The cost recovery mechanisms for IPL’s retail electric customers provide for monthly adjustments to their electric rates for changes in fuel-related costs. Changes in the under-/over-collection of these costs are recognized in “Electric production fuel and purchased power” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.
WPL Retail - The cost recovery mechanism for WPL’s retail electric customers is based on forecasts of certain fuel-related costs expected to be incurred during forward-looking test periods and fuel monitoring ranges determined by the PSCW during each retail electric rate proceeding or in a separate fuel cost plan approval proceeding. If WPL’s actual fuel-related costs fall outside these fuel monitoring ranges, WPL is authorized to defer the incremental under-/over-collection of fuel-related costs that are outside the approved ranges. Deferral of under-collections are reduced to the extent actual return on common equity earned by WPL during the fuel cost plan year exceeds the most recently authorized return on common equity. Deferred amounts for fuel-related costs outside the approved fuel monitoring ranges are recognized in “Electric production fuel and purchased power” in Alliant Energy’s and WPL’s income statements. The cumulative effects of these deferred amounts are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and WPL’s balance sheets until they are reflected in future billings to customers.
IPL and WPL Wholesale - The cost recovery mechanisms for IPL’s and WPL’s wholesale electric customers provide for subsequent adjustments to their electric rates for changes in fuel-related costs. Changes in the under-/over-collection of these costs are recognized in “Electric production fuel and purchased power” in the income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.
Purchased Electric Capacity - PPAs help meet the electricity demand of IPL’s and WPL’s customers. Certain PPAs include minimum payments for IPL’s and WPL’s rights to electric generating capacity, which are charged each period to “Electric production fuel and purchased power” in the income statements. Purchased electric capacity expenses are recovered from IPL’s and WPL’s retail electric customers through changes in base rates determined during periodic rate proceedings. Purchased electric capacity expenses are recovered from IPL’s and WPL’s wholesale electric customers through annual changes in base rates determined by a formula rate structure.
Electric Transmission Service - Costs incurred for the transmission of electricity to meet the demands of IPL’s and WPL’s customers are charged to “Electric transmission service” in the income statements.
IPL Retail - Electric transmission service expense is recovered from IPL’s retail electric customers through a transmission cost rider. This cost recovery mechanism provides for periodic adjustments to electric rates charged to retail electric customers for changes in electric transmission service expense. Changes in the under-/over-collection of these costs are recognized in “Electric transmission service” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.
WPL Retail - Electric transmission service expense is recovered from WPL’s retail electric customers through changes in base rates determined during periodic rate proceedings. Pursuant to escrow accounting treatment approved by the PSCW, the difference between actual electric transmission service expense incurred and the amount of electric transmission service costs collected from customers as electric revenues is recognized in “Electric transmission service” in Alliant Energy’s and WPL’s income statements. An offsetting amount is recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and WPL’s balance sheets until reflected in future billings to customers.
IPL and WPL Wholesale - IPL and WPL arrange transmission service for the majority of their respective wholesale electric customers. Electric transmission service expense is allocated to and recovered from these customers based on a load ratio share computation.
Cost of Gas Sold - Costs are incurred for the purchase, transportation and storage of natural gas to serve IPL’s and WPL’s gas customers and the costs associated with the natural gas delivered to customers are charged to “Cost of gas sold” in the income statements. The tariffs for IPL’s and WPL’s retail gas customers provide for subsequent adjustments to their rates
each month for changes in the cost of gas sold. Changes in the under-/over-collection of these costs are also recognized in “Cost of gas sold” in the income statements. The cumulative effects of the under-/over-collection of these costs are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.
Energy Efficiency Costs - Costs incurred to fund energy efficiency programs and initiatives that help customers reduce their energy usage are charged to “Other operation and maintenance” in the income statements. Energy efficiency costs incurred by IPL are recovered from its retail electric and gas customers through energy efficiency and demand response cost recovery factor tariffs, which are revised annually and include a reconciliation to eliminate any under-/over-collection of energy efficiency costs from prior periods. Energy efficiency costs incurred by WPL are recovered from retail electric and gas customers through changes in base rates determined during periodic rate proceedings. Reconciliations of any under-/over-collection of energy efficiency costs from prior periods are also addressed in WPL’s periodic rate proceedings. Changes in the under-/over-collection of energy efficiency costs for IPL and WPL are recognized in “Other operation and maintenance” in the income statements. The cumulative effects of the under-/over-collection of these costs for IPL and WPL are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers.
Renewable Energy Rider - Effective with the implementation of final rates covering the 2020 forward-looking Test Period, IPL recovers a return of, as well as earn a return on, its new wind generation placed in service in 2019 and 2020 from its retail electric customers through a renewable energy rider. Other applicable costs and tax benefits associated with the new wind generation, excluding operation and maintenance expenses, are also included in the rider. This cost recovery mechanism provides for annual adjustments to electric rates charged to IPL’s retail electric customers for actual renewable energy costs and tax benefits. Changes in the under-/over-collection of these costs are recognized in “Electric utility revenue” in Alliant Energy’s and IPL’s income statements. The cumulative effects of the under-/over-collection of these costs for IPL are recorded in regulatory assets or regulatory liabilities on Alliant Energy’s and IPL’s balance sheets until they are reflected in future billings to customers.
NOTE 1(h) Financial Instruments - Financial instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. The fair value of those financial instruments that are determined to be derivatives are recorded as assets or liabilities on the balance sheets. Certain commodity purchase and sales contracts qualified for and were designated under the normal purchase and sale exception, and were accounted for on the accrual basis of accounting. Alliant Energy, IPL and WPL have elected to not net the fair value amounts of derivatives subject to a master netting arrangement by counterparty. Alliant Energy, IPL and WPL do not offset fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) against fair value amounts recognized for derivative instruments that are executed with the same counterparty under the same master netting arrangement. Refer to Note 2 for discussion of the recognition of regulatory assets and regulatory liabilities related to the unrealized losses and gains on derivative instruments. Refer to Notes 15, 16 and 17(f) for further discussion of derivatives and related credit risk.
NOTE 1(i) Asset Impairments -
Property, Plant and Equipment of Regulated Operations - Property, plant and equipment of regulated operations are reviewed for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes. If IPL or WPL are disallowed recovery of any portion of the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, or conclude it is probable recovery will be disallowed, an impairment charge is recognized equal to the amount of the carrying value that was disallowed or is probable of being disallowed. If IPL or WPL are only allowed a partial return on the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, or conclude it is probable a full return will not be allowed, an impairment charge is recognized equal to the difference between the carrying value and the present value of the future revenues expected from their regulated property, plant and equipment.
Property, Plant and Equipment of Non-utility Operations - Property, plant and equipment of non-utility operations are reviewed for possible impairment whenever events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Impairment is indicated if the carrying value of an asset exceeds its undiscounted future cash flows. If an impairment is indicated, a charge is recognized equal to the amount the carrying value exceeds the asset’s fair value.
Unconsolidated Equity Investments - If events or circumstances indicate the carrying value of investments accounted for under the equity method of accounting exceeds fair value and the decline in value is other than temporary, potential impairment is assessed. If an impairment is indicated, a charge is recognized equal to the amount the carrying value exceeds the investment’s fair value.
NOTE 1(j) Asset Retirement Obligations - The fair value of a legal obligation associated with the retirement of an asset is recorded as a liability when an asset is placed in service, when a legal obligation is subsequently identified or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement costs. When an ARO is recorded as a liability, an equivalent amount is added to the asset cost. The fair value of AROs at inception is determined using discounted cash flows analyses. The liability is accreted to its present value and the capitalized cost is depreciated over the useful life of the related asset. Accretion and depreciation expenses related to AROs for IPL’s and WPL’s regulated
operations are recorded to regulatory assets on the balance sheets. Upon regulatory approval to recover IPL’s AROs expenditures, its regulatory assets are amortized to depreciation and amortization expenses in Alliant Energy’s and IPL’s income statements over the same time period the ARO expenditures are recovered from IPL’s customers. WPL’s regulatory assets related to AROs are recovered as a component of depreciation rates pursuant to PSCW and FERC orders. Accretion and depreciation expenses related to AROs for Alliant Energy’s non-utility operations are recorded to depreciation and amortization expenses in Alliant Energy’s income statements. Upon settlement of the ARO liability, an entity settles the obligation for its recorded amount or incurs a gain or loss. Any gains or losses related to AROs for IPL’s and WPL’s regulated operations are recorded to regulatory liabilities or regulatory assets on the balance sheets.
NOTE 1(k) Debt Issuance and Retirement Costs - Debt issuance costs and debt premiums or discounts are presented on the balance sheets as a direct adjustment to the carrying amount of the related debt liability, and are deferred and amortized over the expected life of each debt issue, considering maturity dates and, if applicable, redemption rights held by others. Alliant Energy’s non-utility businesses and Corporate Services record to interest expense in the period of retirement any unamortized debt issuance costs and debt premiums or discounts on debt retired early.
NOTE 1(l) Current Expected Credit Losses Estimates - Current expected credit losses are estimated for trade and other receivables and credit exposures on guarantees of the performance by third parties. The current expected credit losses for short-term trade receivables are based on estimates of losses resulting from the inability of customers to make required payments. The methodology used to estimate losses is based on historical write-offs, regional economic conditions, significant events that could impact collectability, such as impacts related to COVID-19, the derecho windstorm and related regulatory actions, and forecasted changes to the accounts receivable aging portfolio and write-offs. The current expected credit losses related to guarantees of the performance by third parties are estimated using both quantitative and qualitative information, which utilizes potential outcomes in a range of possible estimated amounts.
NOTE 1(m) Variable Interest Entities - An entity is considered a VIE if its equity investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties, the entity is structured with disproportionate voting rights and substantially all of the entity’s activities are conducted on behalf of the investor with disproportionately fewer voting rights, or its equity investors lack any of the following characteristics: (1) power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance; (2) the obligation to absorb expected losses of the entity; or (3) the right to receive expected benefits of the entity. The primary beneficiary of a VIE is required to consolidate the VIE. The financial statements do not reflect any consolidation of VIEs.
NOTE 1(n) Leases - The determination of whether an arrangement qualifies as a lease occurs at the inception of the arrangement. Arrangements that qualify as leases are classified as either operating or finance. Operating and finance lease liabilities represent obligations to make payments arising from the lease. Operating and finance lease assets represent the right to use an underlying asset for the lease term and are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Leases with initial terms less than 12 months are not recognized as leases. For operating leases, an incremental borrowing rate, as determined at the lease commencement date, is used to determine the present value of the lease payments. For finance leases, the rate implicit in the lease, if known, is used to determine the present value of the lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the expected lease term. Finance lease expense is comprised of depreciation and interest expenses. Finance lease assets are depreciated on a straight-line basis over the shorter of the useful life of the underlying asset or the lease term.
NOTE 1(o) New Accounting Standards -
Credit Losses - In 2016, the Financial Accounting Standards Board issued an accounting standard requiring use of a current expected credit loss model rather than an incurred loss method, which is intended to result in more timely recognition of credit losses on trade receivables, certain other assets and off-balance sheet credit exposures. Alliant Energy, IPL and WPL adopted this standard on January 1, 2020 using a modified retrospective method of adoption, which required cumulative effect adjustments to retained earnings on January 1, 2020. IPL and WPL did not record a cumulative effect adjustment to retained earnings and Alliant Energy recorded a pre-tax $12 million (after-tax $9 million) cumulative effect adjustment to decrease retained earnings related to Alliant Energy’s guarantees in the partnership obligations of an affiliate of Whiting Petroleum (refer to Note 17(d) for further discussion). This adjustment is included in “Adoption of new accounting standard” in Alliant Energy’s equity statement for 2020.
NOTE 2. REGULATORY MATTERS
Regulatory Assets - Alliant Energy, IPL and WPL assess whether IPL’s and WPL’s regulatory assets are probable of future recovery by considering factors such as applicable regulations, recent orders by the applicable regulatory agencies, historical treatment of similar costs by the applicable regulatory agencies and regulatory environment changes. Based on these assessments, Alliant Energy, IPL and WPL believe the regulatory assets recognized as of December 31, 2020 are probable of future recovery. However, no assurance can be made that IPL and WPL will recover all of these regulatory assets in future rates. If future recovery of a regulatory asset ceases to be probable, the regulatory asset will be charged to expense. At December 31, regulatory assets were comprised of the following items (in millions):
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Alliant Energy
|
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IPL
|
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WPL
|
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2020
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2019
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2020
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2019
|
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2020
|
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2019
|
Tax-related
|
$890
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|
|
$818
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|
|
$843
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|
|
$777
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|
|
$47
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|
|
$41
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|
Pension and OPEB costs
|
580
|
|
|
524
|
|
|
291
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|
|
263
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|
289
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|
|
261
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AROs
|
119
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|
|
112
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|
81
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76
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38
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|
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36
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|
Assets retired early
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113
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134
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77
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88
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36
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46
|
|
IPL’s DAEC PPA amendment
|
110
|
|
|
108
|
|
|
110
|
|
|
108
|
|
|
—
|
|
|
—
|
|
WPL’s Western Wisconsin gas distribution expansion investments
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
Derivatives
|
26
|
|
|
39
|
|
|
13
|
|
|
18
|
|
|
13
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
117
|
|
|
110
|
|
|
68
|
|
|
70
|
|
|
49
|
|
|
40
|
|
|
$2,010
|
|
|
$1,845
|
|
|
$1,483
|
|
|
$1,400
|
|
|
$527
|
|
|
$445
|
|
At December 31, 2020, IPL and WPL had $81 million and $11 million, respectively, of regulatory assets that were not earning a return. IPL’s regulatory assets that were not earning a return consisted primarily of retired analog electric meters, emission allowances, clean air compliance projects and debt redemption costs. WPL’s regulatory assets that were not earning a return consisted primarily of costs for future expansion projects and environmental-related costs. The other regulatory assets reported in the above table either earn a return or the cash has not yet been expended, in which case the assets are offset by liabilities that also do not incur a carrying cost.
Tax-related - IPL and WPL record regulatory assets for certain temporary differences (primarily related to utility property, plant and equipment at IPL) that result in a decrease in current rates charged to customers and an increase in future rates charged to customers based on the timing of income tax expense that is used to determine such rates. These temporary differences for IPL include the impacts of qualifying deductions for repairs expenditures, allocation of mixed service costs, and Iowa accelerated tax depreciation, which all contribute to lower current income tax expense during the first part of an asset’s useful life and higher current income tax expense during the latter part of an asset’s useful life. These regulatory assets will be recovered from customers in the future when these temporary differences reverse resulting in additional current income tax expense used to determine customers’ rates.
Pension and other postretirement benefits costs - The IUB, PSCW and FERC have authorized IPL and WPL to record the previously unrecognized net actuarial gains and losses, and prior service costs and credits, as regulatory assets in lieu of accumulated other comprehensive loss on the balance sheets, as these amounts are expected to be recovered in future rates. These regulatory assets will be increased or decreased as the net actuarial gains or losses, and prior service costs or credits, are subsequently amortized and recognized as a component of net periodic benefit costs. Regulatory assets are also increased or decreased as a result of the annual defined benefit plan measurement process. Pension and OPEB costs are included within the recoverable cost of service component of rates charged to IPL’s and WPL’s retail and wholesale customers, which are based upon pension and OPEB costs determined in accordance with GAAP and are calculated in accordance with IPL’s and WPL’s respective regulatory jurisdictions.
AROs - Alliant Energy, IPL and WPL believe it is probable that certain differences between expenses accrued for legal AROs related to their utility operations and expenses recovered currently in rates will be recoverable in future rates, and are deferring the differences as regulatory assets.
Assets retired early - IPL and WPL have retired various natural gas- and coal-fired EGUs, and IPL has retired certain analog electric meters. As a result, the remaining net book value of these assets was reclassified from property, plant and equipment to a regulatory asset on their respective balance sheets. Details regarding the recovery of the remaining net book value of these assets from IPL’s and WPL’s customers are as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity
|
|
Asset
|
|
Retirement Date
|
|
Regulatory Asset Balance as of Dec. 31, 2020
|
|
Recovery
|
|
Regulatory Approval
|
IPL
|
|
Sutherland Units 1 and 3
|
|
2017
|
|
$23
|
|
Return of and return on remaining net book value through 2027
|
|
IUB and FERC
|
IPL
|
|
M.L. Kapp Unit 2
|
|
2018
|
|
21
|
|
Return of and return on remaining net book value through 2029
|
|
IUB and FERC
|
IPL
|
|
Analog electric meters
|
|
2019
|
|
33
|
|
Return of remaining net book value through 2028
|
|
IUB and FERC
|
WPL
|
|
Nelson Dewey Units 1 and 2 and Edgewater Unit 3
|
|
2015
|
|
13
|
|
Return of and return on remaining net book value through 2022
|
|
PSCW and FERC
|
WPL
|
|
Edgewater Unit 4
|
|
2018
|
|
23
|
|
Return of and return on remaining net book value through 2028
|
|
PSCW and FERC
|
IPL’s DAEC PPA Amendment - In September 2020, IPL made a buyout payment of $110 million in exchange for shortening the term of its DAEC PPA by 5 years. The payment was recorded as a reduction to “Other current liabilities” on Alliant Energy’s and IPL’s balance sheets and was included in “DAEC PPA amendment buyout payment” in Alliant Energy’s and IPL’s
cash flows used for operating activities in 2020. The buyout payment, including a return on, will be recovered from IPL’s retail and wholesale customers from 2021 through the end of 2025.
WPL’s Western Wisconsin gas distribution expansion investments - WPL made contributions in aid of construction to a third party for investments as part of its Western Wisconsin gas distribution expansion project. Pursuant to authorization by the PSCW, Alliant Energy and WPL have recorded a regulatory asset for these costs, and are authorized by the PSCW to recover these amounts from WPL’s retail gas customers in base rates beginning in 2021.
Derivatives - In accordance with IPL’s and WPL’s fuel and natural gas recovery mechanisms, prudently incurred costs from derivative instruments are recoverable from customers in the future after any losses are realized, and gains from derivative instruments are refundable to customers in the future after any gains are realized. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities/assets resulted in comparable changes to regulatory assets/liabilities on the balance sheets.
Regulatory Liabilities - At December 31, regulatory liabilities were comprised of the following items (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tax-related
|
$732
|
|
$836
|
|
$331
|
|
$351
|
|
$401
|
|
$485
|
Cost of removal obligations
|
367
|
|
388
|
|
238
|
|
257
|
|
129
|
|
131
|
Electric transmission cost recovery
|
68
|
|
88
|
|
39
|
|
51
|
|
29
|
|
37
|
WPL’s West Riverside liquidated damages
|
38
|
|
—
|
|
—
|
|
—
|
|
38
|
|
—
|
Derivatives
|
28
|
|
20
|
|
25
|
|
17
|
|
3
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
73
|
|
92
|
|
43
|
|
39
|
|
30
|
|
53
|
|
$1,306
|
|
$1,424
|
|
$676
|
|
$715
|
|
$630
|
|
$709
|
Tax-related regulatory liabilities reduce revenue requirement calculations utilized in IPL’s and WPL’s respective rate proceedings. Cost of removal obligations, to the extent expensed through depreciation rates, reduce rate base. A significant portion of the remaining regulatory liabilities is not used to adjust revenue requirement calculations.
Tax-related - Alliant Energy’s, IPL’s and WPL’s tax-related regulatory liabilities are primarily related to excess deferred tax benefits resulting from the remeasurement of accumulated deferred income taxes caused by Federal Tax Reform. The majority of these benefits related to accelerated depreciation are subject to tax normalization rules. These rules limit the rate at which these tax benefits are allowed to be passed on to customers.
Cost of removal obligations - Alliant Energy, IPL and WPL collect in rates future removal costs for many assets that do not have associated legal AROs. Alliant Energy, IPL and WPL record a regulatory liability for the amounts collected in rates for these future removal costs and reduce the regulatory liability for amounts spent on removal activities. Cash payments related to cost of removal obligations are included in “Other” in cash flows used for investing activities.
Electric transmission cost recovery - Refer to Note 1(g) for details of IPL’s and WPL’s electric transmission cost recovery mechanisms. In 2020, pursuant to a June 2020 IUB order, IPL issued $42 million of credits to its retail electric customers through its transmission cost rider for amounts previously collected in rates, which resulted in a reduction in regulatory liabilities and a corresponding reduction to “Electric transmission service” expense in Alliant Energy’s and IPL’s income statements during 2020.
Refer to Note 17(g) for discussion of refunds received by IPL and WPL in 2020 related to MISO transmission owner return on equity complaints, which were recorded to regulatory liabilities in 2020.
WPL’s West Riverside liquidated damages - Pursuant to terms included in the related West Riverside construction procurement contracts, WPL reached agreement with the contractor on liquidated damages in 2020. A significant portion of the liquidated damages was settled by WPL offsetting amounts owed to the contractor that were previously withheld for payment, which were non-cash investing activities. In December 2020, the PSCW authorized WPL to record the liquidated damages as a regulatory liability, which is expected to be returned to WPL’s customers as determined in future regulatory proceedings.
Derecho Windstorm - In August 2020, a derecho windstorm caused considerable damage to IPL’s electric distribution system in its service territory, and over 250,000 of its customers lost power. IPL completed its initial restoration and rebuilding efforts in August 2020 and permanent repairs to the system will continue into 2021. IPL’s current estimate of the total cost of the windstorm is approximately $140 million, and as of December 31, 2020, approximately $135 million was recorded substantially to “Property, plant and equipment, net” on Alliant Energy’s and IPL’s balance sheets. In December 2020, IPL received approval from the IUB for utilization of a regulatory account to track certain incremental costs and benefits incurred resulting from the windstorm until IPL’s next rate proceeding. Tax benefits and the incremental operation and maintenance expenses
resulting from the windstorm were deferred and recorded as a net regulatory liability of $7 million as of December 31, 2020, which is included in “Other” regulatory liabilities in the above table.
Rate Reviews -
IPL’s Retail Electric Rate Review (2020 Forward-looking Test Period) - In March 2019, IPL filed a request with the IUB to increase annual electric base rates for its Iowa retail electric customers based on a 2020 forward-looking Test Period. The key drivers for IPL’s request included recovery of capital projects, including new wind generation. IPL concurrently filed for interim retail electric rates based on 2018 historical data as adjusted for certain known and measurable changes occurring in the first quarter of 2019. An interim retail electric base rate increase of $90 million, on an annual basis, was implemented effective April 1, 2019. In October 2019, IPL reached a settlement agreement with certain intervenor groups for an annual retail electric base rate increase of $127 million. In January 2020, the IUB issued an order approving the settlement with final rates, which were effective February 26, 2020. The agreement includes both the recovery of and a return on IPL’s early retired EGUs, and the recovery of IPL’s retired analog electric meters. In addition, as discussed in Note 1(g), the net impact of certain costs and benefits resulting from IPL’s 1,000 MW expansion of wind generation in 2019 and 2020 is being recovered from its retail electric customers through the renewable energy rider. The agreement also includes IPL providing retail electric billing credits, which began in the third quarter of 2020 and will continue through June 2021, and in aggregate include $27 million of excess deferred tax benefits and $8 million from a partial refund of interim rates implemented in 2019.
IPL’s Retail Gas Rate Review (2020 Forward-looking Test Period) - In March 2019, IPL filed a request with the IUB to increase annual gas base rates for its Iowa retail gas customers based on a 2020 forward-looking Test Period. In October 2019, IPL reached a settlement agreement with intervenor groups for an annual retail gas base rate increase of $12 million. In December 2019, the IUB issued an order approving the settlement with final rates, which were effective January 10, 2020.
IPL’s Retail Electric Rate Review (2016 Test Year) - In April 2017, IPL filed a request with the IUB to increase annual electric base rates for its Iowa retail electric customers based on a 2016 historical Test Year. An interim retail electric base rate increase of $102 million, on an annual basis, was implemented effective April 13, 2017. In September 2017, IPL reached a partial, non-unanimous settlement agreement with intervenor groups for an annual retail electric base rate increase of $130 million. In February 2018, the IUB issued an order approving the settlement with final rates effective May 1, 2018.
WPL’s Retail Electric and Gas Rate Review (2019/2020 Forward-looking Test Period) - In December 2018, the PSCW issued an order approving WPL’s proposed settlement for its retail electric and gas rate review covering the 2019/2020 Test Period, which was based on a stipulated agreement between WPL and intervenor groups. Under the settlement, WPL retail electric and gas base rates did not change from then current levels through the end of 2020. In September 2020, pursuant to an August 2020 PSCW order, WPL refunded $12 million of 2019 fuel-related cost over-collections to its retail electric customers. In addition, WPL’s amortization of excess deferred taxes resulting from the remeasurement of accumulated deferred income taxes caused by Federal Tax Reform was used to offset increases in WPL’s 2020 increased revenue requirements.
WPL’s Retail Fuel-related Rate Filing (2020 Forward-looking Test Period) - In December 2019, WPL received an order from the PSCW authorizing an annual retail electric rate decrease of $29 million, or approximately 2%, effective January 1, 2020. The decrease primarily reflected a change in expected fuel-related costs in 2020.
NOTE 3. PROPERTY, PLANT AND EQUIPMENT
At December 31, details of property, plant and equipment on the balance sheets were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Utility:
|
|
|
|
|
|
|
|
|
|
|
|
Electric plant:
|
|
|
|
|
|
|
|
|
|
|
|
Generation in service
|
$8,222
|
|
|
$7,625
|
|
|
$4,884
|
|
|
$4,432
|
|
|
$3,338
|
|
|
$3,193
|
|
Distribution in service
|
6,216
|
|
|
5,783
|
|
|
3,470
|
|
|
3,190
|
|
|
2,746
|
|
|
2,593
|
|
Other in service
|
536
|
|
|
457
|
|
|
358
|
|
|
299
|
|
|
178
|
|
|
158
|
|
Anticipated to be retired early (a)
|
1,269
|
|
|
—
|
|
|
459
|
|
|
—
|
|
|
810
|
|
|
—
|
|
Total electric plant
|
16,243
|
|
|
13,865
|
|
|
9,171
|
|
|
7,921
|
|
|
7,072
|
|
|
5,944
|
|
Gas plant in service
|
1,563
|
|
|
1,463
|
|
|
844
|
|
|
802
|
|
|
719
|
|
|
661
|
|
Other plant in service
|
534
|
|
|
520
|
|
|
354
|
|
|
345
|
|
|
180
|
|
|
175
|
|
Accumulated depreciation
|
(4,868)
|
|
|
(4,602)
|
|
|
(2,671)
|
|
|
(2,499)
|
|
|
(2,197)
|
|
|
(2,103)
|
|
Net plant
|
13,472
|
|
|
11,246
|
|
|
7,698
|
|
|
6,569
|
|
|
5,774
|
|
|
4,677
|
|
Leased Sheboygan Falls Energy Facility, net (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
32
|
|
Construction work in progress
|
405
|
|
|
1,835
|
|
|
185
|
|
|
907
|
|
|
220
|
|
|
928
|
|
Other, net
|
7
|
|
|
6
|
|
|
6
|
|
|
5
|
|
|
1
|
|
|
1
|
|
Total utility
|
13,884
|
|
|
13,087
|
|
|
7,889
|
|
|
7,481
|
|
|
6,022
|
|
|
5,638
|
|
Non-utility and other:
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility Generation, net (c)
|
79
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Corporate Services and other, net (d)
|
373
|
|
|
357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total non-utility and other
|
452
|
|
|
440
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total property, plant and equipment
|
$14,336
|
|
|
$13,527
|
|
|
$7,889
|
|
|
$7,481
|
|
|
$6,022
|
|
|
$5,638
|
|
(a)In 2020, IPL and WPL received approval from MISO to retire Lansing and Edgewater Unit 5, respectively, and currently anticipate retiring these EGUs by the end of 2022. Alliant Energy and IPL concluded that Lansing, and Alliant Energy and WPL concluded that Edgewater Unit 5, met the criteria to be considered probable of abandonment as of December 31, 2020. IPL and WPL are currently allowed a full recovery of and a full return on its respective EGU from both its retail and wholesale customers.
(b)Less accumulated amortization of $95 million and $89 million for WPL as of December 31, 2020 and 2019, respectively. The leased Sheboygan Falls Energy Facility is eliminated from WPL upon consolidation and is included in the “Non-utility Generation, net” line within Alliant Energy’s consolidated property, plant and equipment.
(c)Less accumulated depreciation of $63 million and $59 million for Alliant Energy as of December 31, 2020 and 2019, respectively.
(d)Less accumulated depreciation of $210 million and $172 million for Alliant Energy as of December 31, 2020 and 2019, respectively.
AFUDC - AFUDC represents costs to finance construction additions, including a return on equity component and cost of debt component as required by regulatory accounting. The concurrent credit for the amount of AFUDC capitalized is recorded as “Allowance for funds used during construction” in the income statements. The amount of AFUDC generated by equity and debt components was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Equity
|
$39
|
|
$66
|
|
$51
|
|
$17
|
|
$35
|
|
$29
|
|
$22
|
|
$31
|
|
$22
|
Debt
|
16
|
|
27
|
|
25
|
|
7
|
|
15
|
|
13
|
|
9
|
|
12
|
|
12
|
|
$55
|
|
$93
|
|
$76
|
|
$24
|
|
$50
|
|
$42
|
|
$31
|
|
$43
|
|
$34
|
Non-utility and Other - The non-utility and other property, plant and equipment recorded on Alliant Energy’s balance sheets include the following:
Non-utility Generation - The Sheboygan Falls Energy Facility was placed into service in 2005 and is depreciated using the straight-line method over a 35-year period.
Corporate Services and Other - Property, plant and equipment related to Corporate Services include a customer billing and information system for IPL and WPL and other computer software, and the corporate headquarters building located in Madison, Wisconsin. The customer billing and information system is amortized using the straight-line method over a 12-year period. The majority of the remaining software is amortized over a 5-year period. Other property, plant and equipment include Travero assets (a short-line railway in Iowa and a barge terminal on the Mississippi River). All Corporate Services and Other property, plant and equipment are depreciated using the straight-line method over periods ranging from 5 to 30 years.
NOTE 4. JOINTLY-OWNED ELECTRIC UTILITY PLANT
Under joint ownership agreements with other utilities, IPL and WPL have undivided ownership interests in jointly-owned EGUs. Each of the respective owners is responsible for the financing of its portion of the construction costs. IPL’s and WPL’s shares of expenses from jointly-owned EGUs are included in the corresponding operating expenses (e.g., electric production fuel, other operation and maintenance, etc.) in the income statements. Information relative to IPL’s and WPL’s ownership interest in these jointly-owned EGUs at December 31, 2020 was as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership
|
|
Electric
|
|
Accumulated Provision
|
|
Construction
|
|
Interest %
|
|
Plant
|
|
for Depreciation
|
|
Work in Progress
|
IPL
|
|
|
|
|
|
|
|
Ottumwa Unit 1
|
48.0%
|
|
$580
|
|
$195
|
|
$22
|
George Neal Unit 4
|
25.7%
|
|
192
|
|
96
|
|
2
|
George Neal Unit 3
|
28.0%
|
|
171
|
|
67
|
|
—
|
Louisa Unit 1
|
4.0%
|
|
39
|
|
22
|
|
—
|
|
|
|
982
|
|
380
|
|
24
|
WPL
|
|
|
|
|
|
|
|
Columbia Units 1-2
|
53.5%
|
|
786
|
|
289
|
|
4
|
West Riverside
|
91.8%
|
|
686
|
|
12
|
|
13
|
Forward Wind Energy Center
|
42.6%
|
|
120
|
|
46
|
|
—
|
|
|
|
1,592
|
|
347
|
|
17
|
Alliant Energy
|
|
|
$2,574
|
|
$727
|
|
$41
|
NOTE 5. RECEIVABLES
NOTE 5(a) Accounts Receivable - Details for accounts receivable included on the balance sheets as of December 31 were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Customer
|
$101
|
|
|
$92
|
|
|
$—
|
|
|
$—
|
|
|
$92
|
|
|
$84
|
|
Unbilled utility revenues
|
82
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
Deferred proceeds
|
188
|
|
|
188
|
|
|
188
|
|
|
188
|
|
|
—
|
|
|
—
|
|
Other
|
59
|
|
|
47
|
|
|
23
|
|
|
16
|
|
|
35
|
|
|
31
|
|
Allowance for expected credit losses
|
(18)
|
|
|
(7)
|
|
|
(1)
|
|
|
(1)
|
|
|
(17)
|
|
|
(6)
|
|
|
$412
|
|
|
$402
|
|
|
$210
|
|
|
$203
|
|
|
$192
|
|
|
$191
|
|
NOTE 5(b) Sales of Accounts Receivable - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. The purchase commitment from the third party to which it sells its receivables expires in March 2021. IPL currently expects to amend and extend the purchase commitment. IPL pays a monthly fee to the third party that varies based on interest rates, limits on cash proceeds and cash amounts received from the third party. Deferred proceeds represent IPL’s interest in the receivables sold to the third party. At IPL’s request, deferred proceeds are paid to IPL from collections of receivables, after paying any required expenses incurred by the third party and the collection agent. Corporate Services acts as collection agent for the third party and receives a fee for collection services. The Receivables Agreement can be terminated by the third party if arrears or write-offs exceed certain levels. The transfers of receivables meet the criteria for sale accounting established by the transfer of financial assets accounting rules. IPL believes that the allowance for expected credit losses related to its sales of receivables is a reasonable approximation of credit risk of the customers that generated the receivables. Refer to Note 16 for discussion of the fair value of deferred proceeds.
Under the Receivables Agreement, IPL has the right to receive cash proceeds, up to a certain limit, from the third party in exchange for the receivables sold. The limit on cash proceeds fluctuates between $90 million and $110 million. Cash proceeds are used by IPL to meet short-term financing needs, and cannot exceed the current limit or amount of receivables available for sale, whichever is less. As of December 31, 2020, IPL had $109 million of available capacity under its sales of accounts receivable program. IPL’s maximum and average outstanding aggregate cash proceeds (based on daily outstanding balances) related to the sales of accounts receivable program were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum
|
|
Average
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Outstanding aggregate cash proceeds
|
$96
|
|
$108
|
|
$116
|
|
$9
|
|
$36
|
|
$53
|
As of December 31, the attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Customer accounts receivable
|
$114
|
|
$125
|
Unbilled utility revenues
|
92
|
|
95
|
Other receivables
|
—
|
|
1
|
Receivables sold to third party
|
206
|
|
221
|
Less: cash proceeds
|
1
|
|
27
|
Deferred proceeds
|
205
|
|
194
|
Less: allowance for expected credit losses
|
17
|
|
6
|
Fair value of deferred proceeds
|
$188
|
|
$188
|
Outstanding receivables past due
|
$27
|
|
$26
|
Additional attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2018
|
Collections
|
$2,025
|
|
$2,193
|
|
$2,077
|
Write-offs, net of recoveries
|
7
|
|
19
|
|
21
|
NOTE 6. INVESTMENTS
Unconsolidated Equity Investments - Alliant Energy’s unconsolidated investments accounted for under the equity method of accounting are as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership Interest at
|
|
Carrying Value at December 31,
|
|
Equity (Income) / Loss
|
|
December 31, 2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2018
|
ATC Holdings
|
16%, 20%
|
|
$331
|
|
$320
|
|
($47)
|
|
($45)
|
|
($38)
|
Non-utility wind farm in Oklahoma
|
50%
|
|
103
|
|
105
|
|
(8)
|
|
(5)
|
|
(16)
|
Other
|
Various
|
|
42
|
|
33
|
|
(6)
|
|
(3)
|
|
(1)
|
|
|
|
$476
|
|
$458
|
|
($61)
|
|
($53)
|
|
($55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary aggregate financial information from the financial statements of these holdings is as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
|
|
2020
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Revenues
|
$801
|
|
|
$783
|
|
|
$724
|
|
|
|
|
|
|
|
Operating income
|
376
|
|
|
359
|
|
|
325
|
|
|
|
|
|
|
|
Net income
|
343
|
|
|
340
|
|
|
217
|
|
|
|
|
|
|
|
As of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
121
|
|
|
139
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
6,388
|
|
|
5,964
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
317
|
|
|
507
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
2,997
|
|
|
2,659
|
|
|
|
|
|
|
|
|
|
Noncontrolling interest
|
192
|
|
|
208
|
|
|
|
|
|
|
|
|
|
ATC Holdings - As of December 31, 2020, Alliant Energy has a 16% ownership interest in ATC and a 20% ownership interest in ATC Holdco LLC, collectively referred to as ATC Holdings. ATC is an independent, for-profit, transmission-only company. ATC Holdco LLC holds Duke-American Transmission Company, LLC, a joint venture between Duke Energy Corporation and ATC, that owns electric transmission infrastructure in North America.
Non-utility Wind Farm in Oklahoma - The non-utility wind farm located in Oklahoma provides electricity to a third-party under a long-term PPA, and has both cash and tax equity ownership. The equity income recognized in 2018 was primarily related to the impacts of Federal Tax Reform. The liquidation method utilized to recognize Alliant Energy’s share of the wind farm’s earnings includes utilizing the federal income tax rate in effect as of the end of the measurement period. The lower federal income tax rate effective as of January 1, 2018 resulted in an acceleration of earnings attributable to Alliant Energy’s interest in the Oklahoma wind farm. This increase in earnings is expected to reverse over time. Alliant Energy does not maintain or operate the wind farm, and provided a parent guarantee of its subsidiary’s indemnification obligations under the operating agreement and PPA. Refer to Note 17(d) for discussion of the guarantee.
NOTE 7. COMMON EQUITY
Common Share Activity - A summary of Alliant Energy’s common stock activity was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2018
|
Shares outstanding, January 1
|
245,022,800
|
|
|
236,063,279
|
|
|
231,348,646
|
|
Equity forward agreements
|
4,275,127
|
|
|
8,358,973
|
|
|
—
|
|
At-the-market offering programs
|
—
|
|
|
—
|
|
|
4,171,013
|
|
Shareowner Direct Plan
|
472,283
|
|
|
501,808
|
|
|
576,965
|
|
Equity-based compensation plans
|
98,205
|
|
|
101,478
|
|
|
5,078
|
|
Other
|
—
|
|
|
(2,738)
|
|
|
(38,423)
|
|
Shares outstanding, December 31
|
249,868,415
|
|
|
245,022,800
|
|
|
236,063,279
|
|
At December 31, 2020, Alliant Energy had a total of 15 million shares available for issuance in the aggregate, pursuant to its 2020 OIP, Shareowner Direct Plan and 401(k) Savings Plan.
Equity Forward Agreements - In 2018, Alliant Energy entered into forward sale agreements with various counterparties in connection with a public offering of 8,358,973 shares of Alliant Energy common stock. In 2019, Alliant Energy settled $366 million under the forward sale agreements by delivering 8,358,973 shares of newly issued Alliant Energy common stock at a weighted average forward sale price of $43.75 per share. Alliant Energy used the net proceeds from the settlements for general corporate purposes.
In 2019, Alliant Energy entered into forward sale agreements with a counterparty in connection with a public offering of 4,275,127 shares of Alliant Energy common stock. In 2020, Alliant Energy settled $222 million under the forward sale agreements by delivering 4,275,127 shares of newly issued Alliant Energy common stock at a weighted average forward sale price of $51.98 per share. Alliant Energy used the net proceeds from the settlements for general corporate purposes.
At-the-Market Offering Program - In 2018, Alliant Energy filed a prospectus supplement under which it could sell up to $175 million of its common stock through an at-the-market offering program. In 2018, Alliant Energy issued 4,171,013 shares of common stock through this program and received cash proceeds of $173 million, net of $2 million in commissions and fees. The 2018 at-the-market offering program has expired.
Shareowner Direct Plan - Alliant Energy satisfies its requirements under the Shareowner Direct Plan (dividend reinvestment and stock purchase plan) by acquiring Alliant Energy common stock through original issue, rather than on the open market.
NOTE 8. PREFERRED STOCK
IPL is authorized to issue up to 16,000,000 shares of cumulative preferred stock in aggregate. Information related to the carrying value of IPL’s cumulative preferred stock at December 31 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series
|
|
Liquidation Preference/Stated Value
|
|
Shares Authorized
|
|
Shares Outstanding
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
(in millions)
|
5.1%
|
|
$25
|
|
8,000,000
|
|
8,000,000
|
|
$200
|
|
|
$200
|
|
IPL may, at its option, redeem the 5.1% cumulative preferred stock for cash at a redemption price of $25 per share plus accrued and unpaid dividends up to the redemption date. The current articles of incorporation of IPL contain a provision that grants the holders of its cumulative preferred stock voting rights to elect two members of IPL’s Board of Directors if preferred dividends equal to six or more quarterly dividend requirements (whether or not consecutive) are in arrears. Such voting rights would not provide the holders of IPL’s preferred stock control of the Board of Directors and could not force IPL to redeem its preferred stock.
NOTE 9. DEBT
NOTE 9(a) Short-term Debt - Alliant Energy and its subsidiaries maintain committed bank lines of credit to provide short-term borrowing flexibility and back-stop liquidity for commercial paper outstanding. At December 31, 2020, the short-term borrowing capacity under a single credit facility agreement, which expires in August 2023, totaled $1 billion ($450 million for Alliant Energy at the parent company level, $250 million for IPL and $300 million for WPL). Subject to certain conditions, Alliant Energy (at the parent company level), IPL and WPL may each reallocate and change its sublimit up to $500 million, $400 million and $500 million, respectively, within the $1 billion total commitment. Information regarding Alliant Energy’s, IPL’s and WPL’s commercial paper, and Alliant Energy’s and WPL’s borrowings under the single credit facility, classified as short-term debt was as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
December 31
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Amount outstanding
|
$389
|
|
$337
|
|
$—
|
|
$—
|
|
$257
|
|
$168
|
Weighted average interest rates
|
0.2%
|
|
1.9%
|
|
N/A
|
|
N/A
|
|
0.1%
|
|
1.8%
|
Available credit facility capacity
|
$611
|
|
$663
|
|
$250
|
|
$250
|
|
$43
|
|
$132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
For the year ended
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Maximum amount outstanding (based on daily outstanding balances)
|
$495
|
|
$601
|
|
$8
|
|
$50
|
|
$266
|
|
$195
|
Average amount outstanding (based on daily outstanding balances)
|
$292
|
|
$453
|
|
$—
|
|
$—
|
|
$117
|
|
$93
|
Weighted average interest rates
|
0.7%
|
|
2.5%
|
|
0.5%
|
|
2.8%
|
|
0.7%
|
|
2.4%
|
NOTE 9(b) Long-Term Debt - Long-term debt, net as of December 31 was as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
Senior Debentures (a):
|
|
|
|
|
|
|
|
|
|
|
|
3.25%, due 2024
|
$500
|
|
|
$500
|
|
|
$—
|
|
|
$500
|
|
|
$500
|
|
|
$—
|
|
3.4%, due 2025
|
250
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|
250
|
|
|
—
|
|
5.5%, due 2025
|
50
|
|
|
50
|
|
|
—
|
|
|
50
|
|
|
50
|
|
|
—
|
|
4.1%, due 2028
|
500
|
|
|
500
|
|
|
—
|
|
|
500
|
|
|
500
|
|
|
—
|
|
3.6%, due 2029
|
300
|
|
|
300
|
|
|
—
|
|
|
300
|
|
|
300
|
|
|
—
|
|
2.3%, due 2030 (b)
|
400
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
6.45%, due 2033
|
100
|
|
|
100
|
|
|
—
|
|
|
100
|
|
|
100
|
|
|
—
|
|
6.3%, due 2034
|
125
|
|
|
125
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|
—
|
|
6.25%, due 2039
|
300
|
|
|
300
|
|
|
—
|
|
|
300
|
|
|
300
|
|
|
—
|
|
4.7%, due 2043
|
250
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|
250
|
|
|
—
|
|
3.7%, due 2046
|
300
|
|
|
300
|
|
|
—
|
|
|
300
|
|
|
300
|
|
|
—
|
|
3.5%, due 2049
|
300
|
|
|
300
|
|
|
—
|
|
|
300
|
|
|
300
|
|
|
—
|
|
3.65% (Retired in 2020)
|
—
|
|
|
—
|
|
|
—
|
|
|
200
|
|
|
200
|
|
|
—
|
|
|
3,375
|
|
|
3,375
|
|
|
—
|
|
|
3,175
|
|
|
3,175
|
|
|
—
|
|
Debentures (a):
|
|
|
|
|
|
|
|
|
|
|
|
2.25%, due 2022
|
250
|
|
|
—
|
|
|
250
|
|
|
250
|
|
|
—
|
|
|
250
|
|
3.05%, due 2027
|
300
|
|
|
—
|
|
|
300
|
|
|
300
|
|
|
—
|
|
|
300
|
|
3%, due 2029
|
350
|
|
|
—
|
|
|
350
|
|
|
350
|
|
|
—
|
|
|
350
|
|
6.25%, due 2034
|
100
|
|
|
—
|
|
|
100
|
|
|
100
|
|
|
—
|
|
|
100
|
|
6.375%, due 2037
|
300
|
|
|
—
|
|
|
300
|
|
|
300
|
|
|
—
|
|
|
300
|
|
7.6%, due 2038
|
250
|
|
|
—
|
|
|
250
|
|
|
250
|
|
|
—
|
|
|
250
|
|
4.1%, due 2044
|
250
|
|
|
—
|
|
|
250
|
|
|
250
|
|
|
—
|
|
|
250
|
|
3.65%, due 2050 (c)
|
350
|
|
|
—
|
|
|
350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
4.6% (Retired in 2020)
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
150
|
|
|
2,150
|
|
|
—
|
|
|
2,150
|
|
|
1,950
|
|
|
—
|
|
|
1,950
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
AEF term loan credit agreement through March 2022, 1% at December 31, 2020 (with Alliant Energy as guarantor) (d)
|
300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Corporate Services 3.45% senior notes, due 2022 (a)
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
—
|
|
AEF 3.75% senior notes, due 2023 (with Alliant Energy as guarantor) (a)
|
400
|
|
|
—
|
|
|
—
|
|
|
400
|
|
|
—
|
|
|
—
|
|
AEF 1.4% senior notes, due 2026 (with Alliant Energy as guarantor) (a)(e)
|
200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
AEF 4.25% senior notes, due 2028 (with Alliant Energy as guarantor) (a)
|
300
|
|
|
—
|
|
|
—
|
|
|
300
|
|
|
—
|
|
|
—
|
|
Sheboygan Power, LLC 5.06% senior secured notes, due 2021 to 2024 (secured by the Sheboygan Falls Energy Facility and related assets) (a)
|
31
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
AEF term loan credit agreement, 2% at December 31, 2019 (with Alliant Energy as guarantor) (Retired in 2020)
|
—
|
|
|
—
|
|
|
—
|
|
|
300
|
|
|
—
|
|
|
—
|
|
Other, 1% at December 31, 2020, due 2021 to 2025
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1,308
|
|
|
—
|
|
|
—
|
|
|
1,115
|
|
|
—
|
|
|
—
|
|
Subtotal
|
6,833
|
|
|
3,375
|
|
|
2,150
|
|
|
6,240
|
|
|
3,175
|
|
|
1,950
|
|
Current maturities
|
(8)
|
|
|
—
|
|
|
—
|
|
|
(657)
|
|
|
(200)
|
|
|
(150)
|
|
Unamortized debt issuance costs
|
(41)
|
|
|
(22)
|
|
|
(14)
|
|
|
(37)
|
|
|
(21)
|
|
|
(11)
|
|
Unamortized debt (discount) and premium, net
|
(15)
|
|
|
(8)
|
|
|
(6)
|
|
|
(13)
|
|
|
(7)
|
|
|
(6)
|
|
Long-term debt, net (f)
|
$6,769
|
|
|
$3,345
|
|
|
$2,130
|
|
|
$5,533
|
|
|
$2,947
|
|
|
$1,783
|
|
(a)Contains optional redemption provisions which, if elected by the issuer at its sole discretion, could require material redemption premium payments by the issuer. The redemption premium payments under these optional redemption provisions are variable and dependent on applicable U.S. Treasury rates at the time of redemption.
(b)In June 2020, IPL issued $400 million of 2.3% senior debentures due 2030. The net proceeds from the issuance were used by IPL to retire its $200 million 3.65% senior debentures that would have matured in September 2020 and for general corporate purposes.
(c)In April 2020, WPL issued $350 million of 3.65% debentures due 2050. The net proceeds from the issuance were used by WPL to reduce borrowings under the single credit facility and for general corporate purposes.
(d)In March 2020, AEF entered into a $300 million variable-rate term loan credit agreement and used the borrowings under this agreement to retire its $300 million variable-rate term loan credit agreement that would have expired in April 2020.
(e)In November 2020, AEF issued $200 million of 1.4% senior notes due 2026. The net proceeds from the issuance were used to reduce Alliant Energy’s outstanding commercial paper and for general corporate purposes.
(f)There were no significant sinking fund requirements related to the outstanding long-term debt.
Five-Year Schedule of Long-term Debt Maturities - At December 31, 2020, long-term debt maturities for 2021 through 2025 were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
IPL
|
$—
|
|
$—
|
|
$—
|
|
$500
|
|
$300
|
WPL
|
—
|
|
250
|
|
—
|
|
—
|
|
—
|
Corporate Services
|
—
|
|
75
|
|
—
|
|
—
|
|
—
|
AEF
|
8
|
|
308
|
|
408
|
|
9
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
$8
|
|
$633
|
|
$408
|
|
$509
|
|
$300
|
Fair Value of Long-term Debt - Refer to Note 16 for information on the fair value of long-term debt outstanding.
NOTE 10. LEASES
Operating Leases - Alliant Energy’s, IPL’s and WPL’s operating leases primarily include leases of space on telecommunication towers and leases of property. At December 31, operating lease details are as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
Property, plant and equipment, net
|
$15
|
|
$9
|
|
$6
|
|
$16
|
|
$10
|
|
$6
|
Other current liabilities
|
$2
|
|
$1
|
|
$1
|
|
$2
|
|
$1
|
|
$1
|
Other liabilities
|
13
|
|
8
|
|
5
|
|
14
|
|
9
|
|
5
|
Total operating lease liabilities
|
$15
|
|
$9
|
|
$6
|
|
$16
|
|
$10
|
|
$6
|
Weighted average remaining lease term
|
10 years
|
|
11 years
|
|
9 years
|
|
11 years
|
|
12 years
|
|
10 years
|
Weighted average discount rate
|
4%
|
|
4%
|
|
4%
|
|
4%
|
|
4%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance Lease - WPL is currently leasing the Sheboygan Falls Energy Facility from AEF’s Non-utility Generation business through 2025, the initial lease term. WPL is responsible for the operation of the EGU and has exclusive rights to its output. This finance lease contains two lease renewal periods, which are not included in the finance lease obligation, as well as an option to purchase the facility at the end of the initial lease term. WPL’s finance lease details are as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
December 31, 2019
|
Property, plant and equipment, net
|
$27
|
|
$32
|
Other current liabilities
|
$9
|
|
$9
|
Finance lease obligations - Sheboygan Falls Energy Facility
|
42
|
|
51
|
Total finance lease liabilities
|
$51
|
|
$60
|
Remaining lease term
|
4 years
|
|
5 years
|
Discount rate
|
11%
|
|
11%
|
|
|
|
|
|
2020
|
|
2019
|
Depreciation expense
|
$6
|
|
$6
|
Interest expense
|
6
|
|
7
|
Total finance lease expense
|
$12
|
|
$13
|
Expected Maturities - As of December 31, 2020, expected maturities of lease liabilities were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
Thereafter
|
|
Total
|
|
Less: amount representing interest
|
|
Present value of minimum lease payments
|
Operating Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
$2
|
|
|
$2
|
|
|
$2
|
|
|
$2
|
|
|
$2
|
|
|
$8
|
|
$18
|
|
$3
|
|
$15
|
IPL
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
6
|
|
11
|
|
2
|
|
9
|
WPL
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
7
|
|
1
|
|
6
|
WPL’s Finance Lease:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheboygan Falls Energy Facility
|
15
|
|
|
15
|
|
|
15
|
|
|
15
|
|
|
5
|
|
|
—
|
|
65
|
|
14
|
|
51
|
NOTE 11. REVENUES
Revenues from Alliant Energy’s, IPL’s and WPL’s utility businesses are primarily from electric and gas sales provided to customers based on approved tariffs or specific contracts with customers. IPL’s and WPL’s primary performance obligations under such arrangements are to deliver electricity and gas, and their customers simultaneously receive and consume the electricity and gas. For such arrangements, revenues are recognized equivalent to the value of the electricity or gas supplied during each period, including amounts billed during each period and changes in amounts estimated to be billed at the end of each period. IPL and WPL apply the right to invoice method to measure progress towards completing performance obligations to transfer electricity and gas to their customers.
IPL provides retail electric and gas service to customers in Iowa, and WPL provides retail and wholesale electric and retail gas service to customers in Wisconsin. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa, as well as steam from its Prairie Creek Generating Station to high-pressure steam customers in Iowa.
IPL’s and WPL’s retail electric and gas revenues include sales to residential, commercial and industrial customers. IPL’s and WPL’s retail electric and gas customer prices are based on IPL’s and WPL’s cost of service and are determined through general rate review proceedings and various tariff filings with the IUB and PSCW, respectively. Such tariff-based services provide electricity or gas to customers without a defined contractual term.
IPL and WPL have wholesale electric market-based rate authority from FERC allowing them to participate in wholesale energy markets (e.g. MISO) and transact directly with third parties. This authority from FERC allows sales of electricity referred to as bulk power sales based on current market values. FERC also allows IPL and WPL to enter into power supply agreements with municipalities and rural electric cooperatives with defined contractual terms, which include standard pricing mechanisms that are detailed in current tariffs accepted by FERC through wholesale rate review proceedings.
Revenues from Alliant Energy’s non-utility business customers are primarily from its Travero business, which includes a short-line rail freight service in Iowa; a barge, rail and truck freight terminal on the Mississippi River; and freight brokerage and logistics management services.
Disaggregation of revenues from contracts with customers, which correlates to revenues for each reportable segment, was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Electric Utility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail - residential
|
$1,093
|
|
|
$1,092
|
|
|
$1,063
|
|
|
$602
|
|
|
$601
|
|
|
$590
|
|
|
$491
|
|
|
$491
|
|
|
$473
|
|
Retail - commercial
|
718
|
|
|
770
|
|
|
736
|
|
|
474
|
|
|
510
|
|
|
487
|
|
|
244
|
|
|
260
|
|
|
249
|
|
Retail - industrial
|
841
|
|
|
889
|
|
|
889
|
|
|
488
|
|
|
504
|
|
|
501
|
|
|
353
|
|
|
385
|
|
|
388
|
|
Wholesale
|
168
|
|
|
177
|
|
|
188
|
|
|
57
|
|
|
64
|
|
|
71
|
|
|
111
|
|
|
113
|
|
|
117
|
|
Bulk power and other
|
100
|
|
|
136
|
|
|
124
|
|
|
74
|
|
|
102
|
|
|
82
|
|
|
26
|
|
|
34
|
|
|
42
|
|
Total Electric Utility
|
2,920
|
|
|
3,064
|
|
|
3,000
|
|
|
1,695
|
|
|
1,781
|
|
|
1,731
|
|
|
1,225
|
|
|
1,283
|
|
|
1,269
|
|
Gas Utility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail - residential
|
214
|
|
|
259
|
|
|
254
|
|
|
116
|
|
|
149
|
|
|
152
|
|
|
98
|
|
|
110
|
|
|
102
|
|
Retail - commercial
|
107
|
|
|
133
|
|
|
133
|
|
|
59
|
|
|
75
|
|
|
76
|
|
|
48
|
|
|
58
|
|
|
57
|
|
Retail - industrial
|
12
|
|
|
16
|
|
|
15
|
|
|
8
|
|
|
12
|
|
|
10
|
|
|
4
|
|
|
4
|
|
|
5
|
|
Transportation/other
|
40
|
|
|
47
|
|
|
45
|
|
|
25
|
|
|
28
|
|
|
28
|
|
|
15
|
|
|
19
|
|
|
17
|
|
Total Gas Utility
|
373
|
|
|
455
|
|
|
447
|
|
|
208
|
|
|
264
|
|
|
266
|
|
|
165
|
|
|
191
|
|
|
181
|
|
Other Utility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steam
|
36
|
|
|
37
|
|
|
35
|
|
|
36
|
|
|
37
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other utility
|
13
|
|
|
9
|
|
|
13
|
|
|
8
|
|
|
7
|
|
|
10
|
|
|
5
|
|
|
2
|
|
|
3
|
|
Total Other Utility
|
49
|
|
|
46
|
|
|
48
|
|
|
44
|
|
|
44
|
|
|
45
|
|
|
5
|
|
|
2
|
|
|
3
|
|
Non-Utility and Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Travero and other
|
74
|
|
|
83
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total Non-Utility and Other
|
74
|
|
|
83
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total revenues
|
$3,416
|
|
|
$3,648
|
|
|
$3,534
|
|
|
$1,947
|
|
|
$2,089
|
|
|
$2,042
|
|
|
$1,395
|
|
|
$1,476
|
|
|
$1,453
|
|
NOTE 12. INCOME TAXES
Income Tax Expense (Benefit) - The components of “Income tax expense (benefit)” in the income statements were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Current tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
$1
|
|
|
($7)
|
|
|
($1)
|
|
|
$6
|
|
|
($11)
|
|
|
$15
|
|
|
($11)
|
|
|
$12
|
|
|
($9)
|
|
State
|
8
|
|
|
24
|
|
|
(5)
|
|
|
(1)
|
|
|
24
|
|
|
(7)
|
|
|
7
|
|
|
13
|
|
|
(5)
|
|
IPL’s tax benefit riders
|
—
|
|
|
(4)
|
|
|
(13)
|
|
|
—
|
|
|
(4)
|
|
|
(13)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Deferred tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
22
|
|
|
70
|
|
|
68
|
|
|
30
|
|
|
26
|
|
|
10
|
|
|
(9)
|
|
|
31
|
|
|
44
|
|
State
|
8
|
|
|
42
|
|
|
30
|
|
|
(2)
|
|
|
31
|
|
|
7
|
|
|
10
|
|
|
6
|
|
|
22
|
|
Production tax credits
|
(95)
|
|
|
(55)
|
|
|
(30)
|
|
|
(80)
|
|
|
(42)
|
|
|
(14)
|
|
|
(15)
|
|
|
(13)
|
|
|
(15)
|
|
Investment tax credits
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($57)
|
|
|
$69
|
|
|
$48
|
|
|
($47)
|
|
|
$24
|
|
|
($3)
|
|
|
($19)
|
|
|
$49
|
|
|
$36
|
|
Income Tax Rates - The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Statutory federal income tax rate
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
|
21
|
%
|
State income taxes, net of federal benefits
|
2
|
|
|
7
|
|
|
7
|
|
|
(1)
|
|
|
8
|
|
|
8
|
|
|
6
|
|
|
6
|
|
|
6
|
|
Production tax credits
|
(17)
|
|
|
(9)
|
|
|
(5)
|
|
|
(28)
|
|
|
(13)
|
|
|
(5)
|
|
|
(7)
|
|
|
(5)
|
|
|
(7)
|
|
Amortization of excess deferred taxes (Refer to Note 2)
|
(13)
|
|
|
(1)
|
|
|
(1)
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
(26)
|
|
|
(2)
|
|
|
—
|
|
Effect of rate-making on property-related differences
|
(3)
|
|
|
(6)
|
|
|
(8)
|
|
|
(4)
|
|
|
(10)
|
|
|
(14)
|
|
|
(2)
|
|
|
(3)
|
|
|
(2)
|
|
Adjustment for prior period taxes
|
1
|
|
|
1
|
|
|
(2)
|
|
|
1
|
|
|
3
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
IPL’s tax benefit riders
|
—
|
|
|
(1)
|
|
|
(2)
|
|
|
—
|
|
|
(1)
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Federal Tax Reform adjustments
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
Other items, net
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Overall income tax rate
|
(10
|
%)
|
|
11
|
%
|
|
8
|
%
|
|
(16
|
%)
|
|
8
|
%
|
|
(1
|
%)
|
|
(8
|
%)
|
|
17
|
%
|
|
15
|
%
|
Deferred Tax Assets and Liabilities - The deferred tax assets and liabilities included on the balance sheets at December 31 arise from the following temporary differences (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Property
|
$2,232
|
|
|
$2,022
|
|
|
$1,312
|
|
|
$1,184
|
|
|
$854
|
|
|
$770
|
|
ATC Holdings
|
116
|
|
|
111
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
|
101
|
|
|
84
|
|
|
83
|
|
|
76
|
|
|
41
|
|
|
32
|
|
Total deferred tax liabilities
|
2,449
|
|
|
2,217
|
|
|
1,395
|
|
|
1,260
|
|
|
895
|
|
|
802
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
|
Federal credit carryforwards
|
454
|
|
|
355
|
|
|
258
|
|
|
175
|
|
|
175
|
|
|
160
|
|
Net operating losses carryforwards - federal
|
77
|
|
|
60
|
|
|
71
|
|
|
56
|
|
|
1
|
|
|
1
|
|
Net operating losses carryforwards - state
|
37
|
|
|
37
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Other
|
73
|
|
|
61
|
|
|
30
|
|
|
20
|
|
|
18
|
|
|
16
|
|
Subtotal deferred tax assets
|
641
|
|
|
513
|
|
|
360
|
|
|
252
|
|
|
194
|
|
|
177
|
|
Valuation allowances
|
(6)
|
|
|
(10)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Total deferred tax assets
|
635
|
|
|
503
|
|
|
360
|
|
|
252
|
|
|
193
|
|
|
176
|
|
Total deferred tax liabilities, net
|
$1,814
|
|
|
$1,714
|
|
|
$1,035
|
|
|
$1,008
|
|
|
$702
|
|
|
$626
|
|
Carryforwards - At December 31, 2020, carryforwards and expiration dates were estimated as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range of Expiration Dates
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
Federal net operating losses
|
2037
|
|
$366
|
|
$339
|
|
$3
|
State net operating losses
|
2021-2040
|
|
622
|
|
10
|
|
2
|
Federal tax credits
|
2022-2040
|
|
454
|
|
258
|
|
175
|
Valuation Allowances - Alliant Energy currently expects its federal net operating losses carryforwards will not be fully utilized until 2023. Because taxable income must be reduced by federal net operating losses carryforwards prior to utilizing federal tax credit carryforwards, Alliant Energy currently does not expect to utilize 2002 vintage federal credit carryforwards prior to their expiration in 2022, resulting in valuation allowances that remain as of December 31, 2020. Alliant Energy currently expects to be able to utilize 2003 vintage federal credit carryforwards prior to their expiration in 2023, and as a result, in 2020, Alliant Energy reversed $4 million of previously recorded valuation allowances related to these federal credit carryforwards.
Uncertain Tax Positions - At December 31, 2020, 2019 and 2018, there were no uncertain tax positions or penalties accrued related to uncertain tax positions. As of December 31, 2020, no material changes to unrecognized tax benefits are expected during the next 12 months.
Open tax years - Tax years that remain subject to the statute of limitations in the major jurisdictions for each of Alliant Energy, IPL and WPL are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated federal income tax returns (a)
|
2017
|
-
|
2019
|
Consolidated Iowa income tax returns (b)
|
2017
|
-
|
2019
|
Wisconsin combined tax returns (c)
|
2016
|
-
|
2019
|
(a)The 2017 federal tax return is effectively settled as a result of participation in the IRS Compliance Assurance Program, which allows Alliant Energy and the IRS to work together to resolve issues related to Alliant Energy’s current tax year before filing its federal income tax return. The statute of limitations for these federal tax returns expires three years from each filing date.
(b)The statute of limitations for these Iowa tax returns expires three years from each filing date.
(c)The statute of limitations for these Wisconsin combined tax returns expires four years from each filing date.
Federal Tax Reform Adjustments - In 2018, additional rules were issued related to Federal Tax Reform, including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for the calendar year 2017. As a result of these clarifying rules, Alliant Energy, IPL and WPL recorded tax benefits of $6 million, $1 million and $5 million, respectively, in 2018.
Iowa Tax Reform - In 2018, Iowa tax reform was enacted, resulting in a reduction in the Iowa income tax rate from 12% to 9.8%, effective January 1, 2021, and the elimination of the deduction for federal income taxes, effective January 1, 2022, for taxes related to 2020 and prior.
NOTE 13. BENEFIT PLANS
NOTE 13(a) Pension and Other Postretirement Benefits Plans - Retirement benefits are provided to substantially all employees through various qualified and non-qualified non-contributory defined benefit pension plans (currently closed to new hires), and/or through defined contribution plans (including 401(k) savings plans). Benefits of the non-contributory defined benefit pension plans are based on the plan participant’s years of service, age and compensation. Benefits of the defined contribution plans are based on the plan participant’s years of service, age, compensation and contributions. Certain defined benefit postretirement health care and life benefits are provided to eligible retirees. In general, the retiree health care plans consist of fixed benefit subsidy structures and the retiree life insurance plans are non-contributory.
IPL and WPL account for their participation in Alliant Energy and Corporate Services sponsored plans as multiple-employer plans. For IPL and WPL, amounts below represent the amounts for their plan participants covered under plans they sponsor, as well as amounts directly assigned to them related to certain participants in the Alliant Energy and Corporate Services sponsored plans.
Assumptions - The assumptions for defined benefit pension and OPEB plans at the measurement date of December 31 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
Alliant Energy
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Discount rate for benefit obligations
|
2.57%
|
|
3.48%
|
|
4.34%
|
|
2.31%
|
|
3.40%
|
|
4.24%
|
Discount rate for net periodic cost
|
3.48%
|
|
4.34%
|
|
3.66%
|
|
3.40%
|
|
4.24%
|
|
3.53%
|
Expected rate of return on plan assets
|
7.10%
|
|
7.60%
|
|
7.60%
|
|
4.50%
|
|
5.44%
|
|
5.44%
|
Interest crediting rate for Alliant Energy Cash Balance Pension Plan
|
4.76%
|
|
5.52%
|
|
5.04%
|
|
N/A
|
|
N/A
|
|
N/A
|
Rate of compensation increase
|
3.65%
|
-
|
4.50%
|
|
3.65%
|
-
|
4.50%
|
|
3.65%
|
-
|
4.50%
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualified Defined Benefit Pension Plan
|
|
OPEB Plans
|
IPL
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Discount rate for benefit obligations
|
2.61%
|
|
3.51%
|
|
4.35%
|
|
2.28%
|
|
3.39%
|
|
4.23%
|
Discount rate for net periodic cost
|
3.51%
|
|
4.35%
|
|
3.68%
|
|
3.39%
|
|
4.23%
|
|
3.51%
|
Expected rate of return on plan assets
|
7.10%
|
|
7.60%
|
|
7.60%
|
|
4.50%
|
|
5.60%
|
|
5.60%
|
Rate of compensation increase
|
3.65%
|
|
3.65%
|
|
3.65%
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualified Defined Benefit Pension Plan
|
|
OPEB Plans
|
WPL
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Discount rate for benefit obligations
|
2.64%
|
|
3.50%
|
|
4.35%
|
|
2.27%
|
|
3.39%
|
|
4.23%
|
Discount rate for net periodic cost
|
3.50%
|
|
4.35%
|
|
3.69%
|
|
3.39%
|
|
4.23%
|
|
3.51%
|
Expected rate of return on plan assets
|
7.10%
|
|
7.60%
|
|
7.60%
|
|
3.28%
|
|
3.81%
|
|
3.84%
|
Rate of compensation increase
|
3.65%
|
|
3.65%
|
|
3.65%
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected rate of return on plan assets - The expected rate of return on plan assets is based on projected asset class returns using target allocations. A forward-looking building blocks approach is used, and historical returns, survey information and capital market information are analyzed to support the expected rate of return on plan assets assumption. Refer to “Investment Strategy for Plan Assets” below for additional information related to investment strategy and mix of assets for the pension and OPEB plans.
Life Expectancy - The life expectancy assumption is used in determining the benefit obligation and net periodic benefit cost for defined benefit pension and OPEB plans. This assumption utilizes base mortality tables that were released in 2019 by the Society of Actuaries and mortality projection tables that were released in 2020 by the Society of Actuaries.
Net Periodic Benefit Costs - The components of net periodic benefit costs for sponsored defined benefit pension and OPEB plans are included below (in millions). The service cost component of net periodic benefit costs is included in “Other operation and maintenance” expenses in the income statements and all other components of net periodic benefit costs are included in “Other (income) and deductions” in the income statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Service cost
|
$11
|
|
|
$10
|
|
|
$12
|
|
|
$3
|
|
|
$3
|
|
|
$4
|
|
Interest cost
|
43
|
|
|
50
|
|
|
47
|
|
|
7
|
|
|
9
|
|
|
8
|
|
Expected return on plan assets (a)
|
(70)
|
|
|
(60)
|
|
|
(69)
|
|
|
(5)
|
|
|
(5)
|
|
|
(6)
|
|
Amortization of prior service credit (b)
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amortization of actuarial loss (c)
|
34
|
|
|
36
|
|
|
35
|
|
|
3
|
|
|
3
|
|
|
3
|
|
Settlement losses (d)
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$30
|
|
|
$35
|
|
|
$24
|
|
|
$8
|
|
|
$10
|
|
|
$9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPL
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Service cost
|
$7
|
|
|
$6
|
|
|
$7
|
|
|
$1
|
|
|
$1
|
|
|
$2
|
|
Interest cost
|
20
|
|
|
23
|
|
|
21
|
|
|
3
|
|
|
3
|
|
|
3
|
|
Expected return on plan assets (a)
|
(33)
|
|
|
(28)
|
|
|
(32)
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of actuarial loss (c)
|
15
|
|
|
15
|
|
|
15
|
|
|
1
|
|
|
2
|
|
|
1
|
|
Settlement losses (d)
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$16
|
|
|
$16
|
|
|
$11
|
|
|
$1
|
|
|
$2
|
|
|
$2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPL
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Service cost
|
$4
|
|
|
$3
|
|
|
$4
|
|
|
$2
|
|
|
$1
|
|
|
$2
|
|
Interest cost
|
19
|
|
|
21
|
|
|
20
|
|
|
3
|
|
|
3
|
|
|
3
|
|
Expected return on plan assets (a)
|
(31)
|
|
|
(26)
|
|
|
(30)
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
Amortization of prior service credit (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
Amortization of actuarial loss (c)
|
16
|
|
|
18
|
|
|
17
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
$8
|
|
|
$16
|
|
|
$11
|
|
|
$5
|
|
|
$5
|
|
|
$6
|
|
(a)The expected return on plan assets is based on the expected rate of return on plan assets and the fair value approach to the market-related value of plan assets.
(b)Unrecognized prior service credits for the OPEB plans are amortized over the average future service period to full eligibility of the participants of each plan.
(c)Unrecognized net actuarial gains or losses in excess of 10% of the greater of the plans’ benefit obligations or assets are amortized over the average future service lives of plan participants, except for the Alliant Energy Cash Balance Pension Plan where gains or losses outside the 10% threshold are amortized over the time period the participants are expected to receive benefits.
(d)Settlement losses related to payments made to retired executives of Alliant Energy and lump sum payments related to IPL’s qualified defined benefit pension plan.
Benefit Plan Assets and Obligations - A reconciliation of the funded status of qualified and non-qualified defined benefit pension and OPEB plans to the amounts recognized on the balance sheets at December 31 was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
Alliant Energy
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Change in benefit obligation:
|
|
|
|
|
|
|
|
Net benefit obligation at January 1
|
$1,280
|
|
|
$1,175
|
|
|
$214
|
|
|
$206
|
|
Service cost
|
11
|
|
|
10
|
|
|
3
|
|
|
3
|
|
Interest cost
|
43
|
|
|
50
|
|
|
7
|
|
|
9
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss
|
132
|
|
|
124
|
|
|
18
|
|
|
14
|
|
|
|
|
|
|
|
|
|
Gross benefits paid
|
(115)
|
|
|
(79)
|
|
|
(19)
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
Net benefit obligation at December 31
|
1,351
|
|
|
1,280
|
|
|
227
|
|
|
214
|
|
Change in plan assets:
|
|
|
|
|
|
|
|
Fair value of plan assets at January 1
|
931
|
|
|
809
|
|
|
105
|
|
|
99
|
|
Actual return on plan assets
|
108
|
|
|
168
|
|
|
11
|
|
|
15
|
|
Employer contributions
|
60
|
|
|
33
|
|
|
7
|
|
|
9
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
4
|
|
|
3
|
|
Gross benefits paid
|
(115)
|
|
|
(79)
|
|
|
(19)
|
|
|
(21)
|
|
Fair value of plan assets at December 31
|
984
|
|
|
931
|
|
|
108
|
|
|
105
|
|
Under funded status at December 31
|
($367)
|
|
|
($349)
|
|
|
($119)
|
|
|
($109)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
Alliant Energy
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Amounts recognized on the balance sheets consist of:
|
|
|
|
|
|
|
|
Non-current assets
|
$—
|
|
|
$—
|
|
|
$8
|
|
|
$10
|
|
Current liabilities
|
(2)
|
|
|
(14)
|
|
|
(8)
|
|
|
(8)
|
|
Pension and other benefit obligations
|
(365)
|
|
|
(335)
|
|
|
(119)
|
|
|
(111)
|
|
Net amounts recognized at December 31
|
($367)
|
|
|
($349)
|
|
|
($119)
|
|
|
($109)
|
|
Amounts recognized in Regulatory Assets consist of:
|
|
|
|
|
|
|
|
Net actuarial loss
|
$533
|
|
|
$485
|
|
|
$54
|
|
|
$45
|
|
Prior service credit
|
(5)
|
|
|
(5)
|
|
|
(1)
|
|
|
(1)
|
|
|
$528
|
|
|
$480
|
|
|
$53
|
|
|
$44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
IPL
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Change in benefit obligation:
|
|
|
|
|
|
|
|
Net benefit obligation at January 1
|
$581
|
|
|
$534
|
|
|
$86
|
|
|
$83
|
|
Service cost
|
7
|
|
|
6
|
|
|
1
|
|
|
1
|
|
Interest cost
|
20
|
|
|
23
|
|
|
3
|
|
|
3
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss
|
60
|
|
|
56
|
|
|
8
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Gross benefits paid
|
(53)
|
|
|
(38)
|
|
|
(8)
|
|
|
(8)
|
|
|
|
|
|
|
|
|
|
Net benefit obligation at December 31
|
615
|
|
|
581
|
|
|
91
|
|
|
86
|
|
Change in plan assets:
|
|
|
|
|
|
|
|
Fair value of plan assets at January 1
|
436
|
|
|
378
|
|
|
72
|
|
|
67
|
|
Actual return on plan assets
|
51
|
|
|
79
|
|
|
7
|
|
|
10
|
|
Employer contributions
|
19
|
|
|
17
|
|
|
2
|
|
|
2
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Gross benefits paid
|
(53)
|
|
|
(38)
|
|
|
(8)
|
|
|
(8)
|
|
Fair value of plan assets at December 31
|
453
|
|
|
436
|
|
|
74
|
|
|
72
|
|
Under funded status at December 31
|
($162)
|
|
|
($145)
|
|
|
($17)
|
|
|
($14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
IPL
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Amounts recognized on the balance sheets consist of:
|
|
|
|
|
|
|
|
Non-current assets
|
$—
|
|
|
$—
|
|
|
$4
|
|
|
$7
|
|
Current liabilities
|
(1)
|
|
|
(1)
|
|
|
(2)
|
|
|
(2)
|
|
Pension and other benefit obligations
|
(161)
|
|
|
(144)
|
|
|
(19)
|
|
|
(19)
|
|
Net amounts recognized at December 31
|
($162)
|
|
|
($145)
|
|
|
($17)
|
|
|
($14)
|
|
Amounts recognized in Regulatory Assets consist of:
|
|
|
|
|
|
|
|
Net actuarial loss
|
$228
|
|
|
$208
|
|
|
$20
|
|
|
$17
|
|
Prior service credit
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
$227
|
|
|
$207
|
|
|
$20
|
|
|
$17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
WPL
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Change in benefit obligation:
|
|
|
|
|
|
|
|
Net benefit obligation at January 1
|
$550
|
|
|
$507
|
|
|
$85
|
|
|
$83
|
|
Service cost
|
4
|
|
|
3
|
|
|
2
|
|
|
1
|
|
Interest cost
|
19
|
|
|
21
|
|
|
3
|
|
|
3
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss
|
55
|
|
|
54
|
|
|
5
|
|
|
5
|
|
|
|
|
|
|
|
|
|
Gross benefits paid
|
(40)
|
|
|
(35)
|
|
|
(8)
|
|
|
(9)
|
|
|
|
|
|
|
|
|
|
Net benefit obligation at December 31
|
588
|
|
|
550
|
|
|
89
|
|
|
85
|
|
Change in plan assets:
|
|
|
|
|
|
|
|
Fair value of plan assets at January 1
|
406
|
|
|
352
|
|
|
17
|
|
|
17
|
|
Actual return on plan assets
|
48
|
|
|
73
|
|
|
2
|
|
|
1
|
|
Employer contributions
|
22
|
|
|
16
|
|
|
5
|
|
|
6
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Gross benefits paid
|
(40)
|
|
|
(35)
|
|
|
(8)
|
|
|
(9)
|
|
Fair value of plan assets at December 31
|
436
|
|
|
406
|
|
|
18
|
|
|
17
|
|
Under funded status at December 31
|
($152)
|
|
|
($144)
|
|
|
($71)
|
|
|
($68)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
WPL
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Amounts recognized on the balance sheets consist of:
|
|
|
|
|
|
|
|
Non-current assets
|
$—
|
|
|
$—
|
|
|
$3
|
|
|
$3
|
|
Current liabilities
|
—
|
|
|
—
|
|
|
(6)
|
|
|
(6)
|
|
Pension and other benefit obligations
|
(152)
|
|
|
(144)
|
|
|
(68)
|
|
|
(65)
|
|
Net amounts recognized at December 31
|
($152)
|
|
|
($144)
|
|
|
($71)
|
|
|
($68)
|
|
Amounts recognized in Regulatory Assets consist of:
|
|
|
|
|
|
|
|
Net actuarial loss
|
$233
|
|
|
$212
|
|
|
$25
|
|
|
$22
|
|
Prior service credit
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
$232
|
|
|
$211
|
|
|
$24
|
|
|
$21
|
|
Actuarial losses related to benefit obligations in 2020 for defined benefit pension and OPEB plans were primarily due to decreases in the discount rates, partially offset by the impact of updated mortality projection tables. Actuarial losses related to benefit obligations in 2019 for defined benefit pension and OPEB plans were primarily due to decreases in the discount rates and experience losses, partially offset by the impact of the updated base mortality table.
Accumulated benefit obligations, aggregate amounts applicable to defined benefit pension and OPEB plans with accumulated benefit obligations in excess of plan assets, as well as defined benefit pension plans with projected benefit obligations in excess of plan assets as of the December 31 measurement date are as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
Alliant Energy
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Accumulated benefit obligations
|
$1,305
|
|
|
$1,234
|
|
|
$227
|
|
|
$214
|
|
Plans with accumulated benefit obligations in excess of plan assets:
|
|
|
|
|
|
|
|
Accumulated benefit obligations
|
1,305
|
|
|
1,234
|
|
|
227
|
|
|
214
|
|
Fair value of plan assets
|
984
|
|
|
931
|
|
|
108
|
|
|
105
|
|
Plans with projected benefit obligations in excess of plan assets:
|
|
|
|
|
|
|
|
Projected benefit obligations
|
1,351
|
|
|
1,280
|
|
|
N/A
|
|
N/A
|
Fair value of plan assets
|
984
|
|
|
931
|
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
IPL
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Accumulated benefit obligations
|
$589
|
|
|
$558
|
|
|
$91
|
|
|
$86
|
|
Plans with accumulated benefit obligations in excess of plan assets:
|
|
|
|
|
|
|
|
Accumulated benefit obligations
|
589
|
|
|
558
|
|
|
91
|
|
|
86
|
|
Fair value of plan assets
|
453
|
|
|
436
|
|
|
74
|
|
|
72
|
|
Plans with projected benefit obligations in excess of plan assets:
|
|
|
|
|
|
|
|
Projected benefit obligations
|
615
|
|
|
581
|
|
|
N/A
|
|
N/A
|
Fair value of plan assets
|
453
|
|
|
436
|
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
OPEB Plans
|
WPL
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Accumulated benefit obligations
|
$573
|
|
|
$536
|
|
|
$89
|
|
|
$85
|
|
Plans with accumulated benefit obligations in excess of plan assets:
|
|
|
|
|
|
|
|
Accumulated benefit obligations
|
573
|
|
|
536
|
|
|
89
|
|
|
85
|
|
Fair value of plan assets
|
436
|
|
|
406
|
|
|
18
|
|
|
17
|
|
Plans with projected benefit obligations in excess of plan assets:
|
|
|
|
|
|
|
|
Projected benefit obligations
|
588
|
|
|
550
|
|
|
N/A
|
|
N/A
|
Fair value of plan assets
|
436
|
|
|
406
|
|
|
N/A
|
|
N/A
|
In addition to the amounts recognized in regulatory assets in the above tables for IPL and WPL, regulatory assets were recognized for amounts associated with Corporate Services employees participating in other Alliant Energy sponsored benefit plans that were allocated to IPL and WPL at December 31 as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Regulatory assets
|
$44
|
|
$39
|
|
$34
|
|
$29
|
|
|
|
|
|
|
|
|
Estimated Future Employer Contributions and Benefit Payments - Estimated funding for the qualified and non-qualified defined benefit pension and OPEB plans for 2021 is as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
Defined benefit pension plans (a)
|
$39
|
|
$17
|
|
$18
|
OPEB plans
|
8
|
|
2
|
|
6
|
(a)Alliant Energy sponsors several non-qualified defined benefit pension plans that cover certain current and former key employees of IPL and WPL. Alliant Energy allocates pension costs to IPL and WPL for these plans. In addition, IPL and WPL amounts reflect funding for their non-bargaining employees who are participants in the Alliant Energy and Corporate Services sponsored qualified and non-qualified defined benefit pension plans.
Expected benefit payments for the qualified and non-qualified defined benefit plans, which reflect expected future service, as appropriate, are as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
2026 - 2030
|
Defined benefit pension benefits
|
$76
|
|
|
$78
|
|
|
$79
|
|
|
$79
|
|
|
$80
|
|
|
$398
|
OPEB
|
18
|
|
|
18
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
74
|
|
$94
|
|
|
$96
|
|
|
$96
|
|
|
$96
|
|
|
$97
|
|
|
$472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPL
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
2026 - 2030
|
Defined benefit pension benefits
|
$38
|
|
|
$38
|
|
|
$39
|
|
|
$38
|
|
|
$38
|
|
|
$181
|
OPEB
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
29
|
|
$45
|
|
|
$45
|
|
|
$46
|
|
|
$45
|
|
|
$45
|
|
|
$210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPL
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
2026 - 2030
|
Defined benefit pension benefits
|
$32
|
|
|
$32
|
|
|
$32
|
|
|
$33
|
|
|
$33
|
|
|
$162
|
OPEB
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
6
|
|
|
29
|
|
$39
|
|
|
$39
|
|
|
$39
|
|
|
$40
|
|
|
$39
|
|
|
$191
|
Investment Strategy for Plan Assets - Investment strategies for defined benefit pension and OPEB plan assets combine preservation of principal and prudent risk-taking to protect the integrity of plan assets, in order to meet the obligations to plan participants while minimizing benefit costs over the long term. Investment risk of plan assets is mitigated through diversification, including U.S. and international equity, fixed income, global asset and risk parity strategies. Global asset and risk parity strategies may include investments in global equity, global debt, commodities and currencies.
Defined Benefit Pension Plan Assets - The asset mix of defined benefit pension plans is governed by allocation targets. The asset allocation is monitored regularly, and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. An overlay management service is also used to help maintain target allocations and meet liquidity needs. The overlay manager is authorized to use derivative financial instruments to facilitate this service. For separately managed accounts, prohibited investments include, but are not limited to, direct ownership of real estate, oil and gas limited partnerships, securities of the managers’ firms or affiliate firms, and Alliant Energy securities. At December 31, 2020, the current target ranges and actual allocations for the defined benefit pension plan assets were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Target Range
|
|
Actual
|
|
Allocation
|
|
Allocation
|
Cash and equivalents
|
0%
|
-
|
5%
|
|
5%
|
Equity securities - U.S.
|
11%
|
-
|
41%
|
|
26%
|
Equity securities - international
|
14%
|
-
|
34%
|
|
23%
|
Global asset securities
|
5%
|
-
|
15%
|
|
9%
|
Risk parity securities
|
5%
|
-
|
15%
|
|
9%
|
Fixed income securities
|
20%
|
-
|
40%
|
|
28%
|
Other Postretirement Benefits Plan Assets - OPEB plan assets are comprised of specific assets within certain defined benefit pension plans (401(h) assets) as well as assets held in VEBA trusts. The investment strategy of the Corporate Services 401(h) assets mirrors those of the defined benefit pension plans, which are discussed above. For VEBA trusts with assets greater than $5 million and the WPL 401(h) assets, the mix among asset classes is governed by allocation targets. The asset allocation is monitored regularly, and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. At December 31, 2020, the current target ranges and actual allocations for VEBA trusts with assets greater than $5 million and the WPL 401(h) assets were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Target Range
|
|
Actual
|
|
Allocation
|
|
Allocation
|
Cash and equivalents
|
0%
|
-
|
5%
|
|
1%
|
Equity securities - U.S.
|
0%
|
-
|
46%
|
|
25%
|
Equity securities - international
|
0%
|
-
|
34%
|
|
1%
|
|
|
|
|
|
|
Fixed income securities
|
20%
|
-
|
100%
|
|
73%
|
Fair Value Measurements - Fair value measurement accounting establishes three levels of fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value. Refer to Note 16 for discussion of levels within the fair value hierarchy. Level 1 items include investments in securities held in registered investment companies and directly held equity securities, which are valued at the closing price reported in the active market in which the securities are traded. Level 2 items include fixed income securities consisting of corporate and government bonds, which are valued at the closing price reported in the active market for similar assets in which the individual securities are traded or based on yields currently available on comparable securities of issuers with similar credit ratings. Certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. These fair value amounts are included below to reconcile the fair value hierarchy to the respective total plan assets.
At December 31, the fair values of qualified and non-qualified defined benefit pension plan assets were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
Alliant Energy
|
Value
|
|
1
|
|
2
|
|
3
|
|
Value
|
|
1
|
|
2
|
|
3
|
Cash and equivalents
|
$46
|
|
|
$—
|
|
|
$46
|
|
|
$—
|
|
|
$46
|
|
|
$4
|
|
|
$42
|
|
|
$—
|
|
Equity securities - U.S.
|
182
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
161
|
|
|
—
|
|
|
—
|
|
Equity securities - international
|
151
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
136
|
|
|
—
|
|
|
—
|
|
Global asset securities
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
47
|
|
|
—
|
|
|
—
|
|
Fixed income securities
|
134
|
|
|
56
|
|
|
78
|
|
|
—
|
|
|
131
|
|
|
58
|
|
|
73
|
|
|
—
|
|
Total assets in fair value hierarchy
|
558
|
|
|
$434
|
|
|
$124
|
|
|
$—
|
|
|
521
|
|
|
$406
|
|
|
$115
|
|
|
$—
|
|
Assets measured at net asset value
|
426
|
|
|
|
|
|
|
|
|
410
|
|
|
|
|
|
|
|
Accrued investment income
|
1
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
Due to brokers, net (pending trades with brokers)
|
(1)
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
Total pension plan assets
|
$984
|
|
|
|
|
|
|
|
|
$931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
IPL
|
Value
|
|
1
|
|
2
|
|
3
|
|
Value
|
|
1
|
|
2
|
|
3
|
Cash and equivalents
|
$21
|
|
|
$—
|
|
|
$21
|
|
|
$—
|
|
|
$22
|
|
|
$2
|
|
|
$20
|
|
|
$—
|
|
Equity securities - U.S.
|
84
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
75
|
|
|
—
|
|
|
—
|
|
Equity securities - international
|
69
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
64
|
|
|
—
|
|
|
—
|
|
Global asset securities
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
Fixed income securities
|
62
|
|
|
26
|
|
|
36
|
|
|
—
|
|
|
61
|
|
|
27
|
|
|
34
|
|
|
—
|
|
Total assets in fair value hierarchy
|
257
|
|
|
$200
|
|
|
$57
|
|
|
$—
|
|
|
244
|
|
|
$190
|
|
|
$54
|
|
|
$—
|
|
Assets measured at net asset value
|
196
|
|
|
|
|
|
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pension plan assets
|
$453
|
|
|
|
|
|
|
|
|
$436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
WPL
|
Value
|
|
1
|
|
2
|
|
3
|
|
Value
|
|
1
|
|
2
|
|
3
|
Cash and equivalents
|
$20
|
|
|
$—
|
|
|
$20
|
|
|
$—
|
|
|
$20
|
|
|
$2
|
|
|
$18
|
|
|
$—
|
|
Equity securities - U.S.
|
81
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
70
|
|
|
—
|
|
|
—
|
|
Equity securities - international
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
59
|
|
|
—
|
|
|
—
|
|
Global asset securities
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
Fixed income securities
|
59
|
|
|
25
|
|
|
34
|
|
|
—
|
|
|
57
|
|
|
25
|
|
|
32
|
|
|
—
|
|
Total assets in fair value hierarchy
|
247
|
|
|
$193
|
|
|
$54
|
|
|
$—
|
|
|
227
|
|
|
$177
|
|
|
$50
|
|
|
$—
|
|
Assets measured at net asset value
|
189
|
|
|
|
|
|
|
|
|
179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pension plan assets
|
$436
|
|
|
|
|
|
|
|
|
$406
|
|
|
|
|
|
|
|
At December 31, the fair values of OPEB plan assets were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
Alliant Energy
|
Value
|
|
1
|
|
2
|
|
3
|
|
Value
|
|
1
|
|
2
|
|
3
|
Cash and equivalents
|
$2
|
|
|
$—
|
|
|
$2
|
|
|
$—
|
|
|
$3
|
|
|
$3
|
|
|
$—
|
|
|
$—
|
|
Equity securities - U.S.
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
Equity securities - international
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income securities
|
72
|
|
|
71
|
|
|
1
|
|
|
—
|
|
|
69
|
|
|
68
|
|
|
1
|
|
|
—
|
|
Total assets in fair value hierarchy
|
81
|
|
|
$78
|
|
|
$3
|
|
|
$—
|
|
|
79
|
|
|
$78
|
|
|
$1
|
|
|
$—
|
|
Assets measured at net asset value
|
27
|
|
|
|
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total OPEB plan assets
|
$108
|
|
|
|
|
|
|
|
|
$105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
IPL
|
Value
|
|
1
|
|
2
|
|
3
|
|
Value
|
|
1
|
|
2
|
|
3
|
Cash and equivalents
|
$1
|
|
|
$—
|
|
|
$1
|
|
|
$—
|
|
|
$2
|
|
|
$2
|
|
|
$—
|
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income securities
|
51
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
48
|
|
|
—
|
|
|
—
|
|
Total assets in fair value hierarchy
|
52
|
|
|
$51
|
|
|
$1
|
|
|
$—
|
|
|
50
|
|
|
$50
|
|
|
$—
|
|
|
$—
|
|
Assets measured at net asset value
|
22
|
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total OPEB plan assets
|
$74
|
|
|
|
|
|
|
|
|
$72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
|
Fair
|
|
Level
|
|
Level
|
|
Level
|
WPL
|
Value
|
|
1
|
|
2
|
|
3
|
|
Value
|
|
1
|
|
2
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income securities
|
$18
|
|
|
$18
|
|
|
$—
|
|
|
$—
|
|
|
$17
|
|
|
$17
|
|
|
$—
|
|
|
$—
|
|
Total OPEB plan assets
|
$18
|
|
|
$18
|
|
|
$—
|
|
|
$—
|
|
|
$17
|
|
|
$17
|
|
|
$—
|
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the various defined benefit pension and OPEB plans, Alliant Energy common stock represented less than 1% of assets directly held in the plans at December 31, 2020 and 2019.
401(k) Savings Plans - A significant number of employees participate in defined contribution retirement plans (401(k) savings plans). Alliant Energy common stock directly held by participants represented 9% and 11% of total assets in the 401(k) savings plans at December 31, 2020 and 2019, respectively. Costs related to the 401(k) savings plans, which are partially based on the participants’ contributions and include allocated costs associated with Corporate Services employees for IPL and WPL, were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
401(k) costs
|
$25
|
|
|
$25
|
|
|
$25
|
|
|
$13
|
|
|
$13
|
|
|
$13
|
|
|
$12
|
|
|
$12
|
|
|
$11
|
|
NOTE 13(b) Equity-based Compensation Plans - In 2020, Alliant Energy’s shareowners approved the 2020 OIP, which permits the grant of shares of Alliant Energy common stock, restricted stock, restricted stock units, performance shares, performance units, and other stock-based or cash-based awards to key employees. The 2020 OIP replaced the Amended and Restated 2010 OIP, which permitted similar grants. At December 31, 2020, performance shares and restricted stock units (performance- and time-vesting) were outstanding under the 2020 OIP and the Amended and Restated 2010 OIP, and 9 million shares of Alliant Energy common stock remained available for grants under the 2020 OIP. Alliant Energy satisfies share payouts related to equity awards through the issuance of new shares of its common stock. Alliant Energy also has the DLIP, which permits the grant of cash-based long-term awards, including performance units, restricted cash awards and restricted units, to certain key employees. At December 31, 2020, performance units and restricted units (performance- and time-vesting) were outstanding under the DLIP, and the amount of nonvested restricted units was not material. There is no limit to the number of grants that can be made under the DLIP and Alliant Energy satisfies all payouts under the DLIP through cash payments. Nonvested awards generally do not have non-forfeitable rights to dividends or dividend equivalents when dividends are paid to common shareowners. A summary of compensation expense, including amounts allocated to IPL and WPL, and the related income tax benefits recognized for share-based compensation awards was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Compensation expense
|
$16
|
|
|
$26
|
|
|
$17
|
|
|
$9
|
|
|
$15
|
|
|
$9
|
|
|
$6
|
|
|
$10
|
|
|
$7
|
|
Income tax benefits
|
4
|
|
|
7
|
|
|
5
|
|
|
2
|
|
|
4
|
|
|
3
|
|
|
2
|
|
|
3
|
|
|
2
|
|
As of December 31, 2020, Alliant Energy’s, IPL’s and WPL’s total unrecognized compensation cost related to share-based compensation awards was $5 million, $3 million and $2 million, respectively, which is expected to be recognized over a weighted average period of between one year and two years. Share-based compensation expense is recognized on a straight-line basis over the requisite service periods and is recorded in “Other operation and maintenance” in the income statements. As of December 31, 2020, 537,485 shares were included in the calculation of diluted EPS related to the nonvested equity awards.
Performance Shares - Equity Awards - Payouts of 2020 and 2019 performance shares are contingent upon achievement over a three-year period of specified performance criteria, which currently is total shareowner return relative to an investor-owned utility peer group. Performance shares granted in 2020 and 2019 are to be paid out in shares of Alliant Energy common stock and are accounted for as equity awards. The fair value of each performance share granted in 2020 and 2019 is based on the fair value of the underlying common stock on the grant date and the probability of satisfying the market condition contained in the agreement during a three-year performance period. The actual number of 2020 and 2019 performance shares that will be paid out upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of shares. If minimum performance targets are not met during the performance period, these performance
shares are forfeited. Compensation expense is recorded ratably over the performance period based on the fair value of the awards at the grant date. A summary of the 2020 and 2019 performance shares activity, with amounts representing the target number of awards, was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Performance Shares - Equity
|
|
Weighted Average
Grant Date Fair Value
|
|
Performance Shares - Equity
|
|
Weighted Average
Grant Date Fair Value
|
Nonvested awards, January 1
|
74,193
|
|
|
$47.44
|
|
—
|
|
|
$—
|
Granted
|
56,204
|
|
|
64.04
|
|
91,816
|
|
|
47.23
|
|
|
|
|
|
|
|
|
Forfeited
|
(1,241)
|
|
|
50.94
|
|
(17,623)
|
|
|
46.35
|
Nonvested awards, December 31
|
129,156
|
|
|
54.63
|
|
74,193
|
|
|
47.44
|
Performance Shares and Performance Units - Liability Awards - Payouts of performance shares granted prior to 2019 under the Amended and Restated 2010 OIP and performance units under the DLIP to key employees are contingent upon achievement over three-year periods of specified performance criteria, which currently is total shareowner return relative to an investor-owned utility peer group. Performance shares granted prior to 2019 can be paid out in shares of Alliant Energy common stock, cash or a combination of cash and stock. Performance units must be paid out in cash. Alliant Energy assumes it will make future payouts of its performance shares granted prior to 2019 and performance units in cash; therefore, these performance shares and performance units are accounted for as liability awards. Compensation expense for these performance shares and performance units is recorded ratably over the performance period based on the fair value of the awards at each reporting period. A summary of these performance shares and performance units activity, with amounts representing the target number of awards, was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Shares (granted prior to 2019)
|
|
Performance Units (granted prior to 2019)
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Nonvested awards, January 1
|
131,872
|
|
|
203,188
|
|
|
223,511
|
|
|
34,574
|
|
|
57,761
|
|
|
71,737
|
|
Granted
|
—
|
|
|
—
|
|
|
74,163
|
|
|
—
|
|
|
—
|
|
|
19,840
|
|
Vested
|
(63,565)
|
|
|
(66,322)
|
|
|
(90,806)
|
|
|
(16,661)
|
|
|
(20,131)
|
|
|
(31,910)
|
|
Forfeited
|
—
|
|
|
(4,994)
|
|
|
(3,680)
|
|
|
(1,112)
|
|
|
(3,056)
|
|
|
(1,906)
|
|
Nonvested awards, December 31
|
68,307
|
|
|
131,872
|
|
|
203,188
|
|
|
16,801
|
|
|
34,574
|
|
|
57,761
|
|
Fair Value of Awards - The fair value of each performance share and performance unit accounted for as a liability award is based on the closing market price of one share of Alliant Energy common stock at the end of the performance period. The actual payout for performance shares and performance units is dependent upon actual performance and may range from zero to 200% of the target number of awards. At December 31, 2020, the Alliant Energy common stock closing price was $51.53, and additional information related to the fair value of nonvested performance shares and performance units granted in 2018 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Shares
|
|
Performance Units
|
Nonvested awards at target
|
68,307
|
|
16,801
|
Estimated payout percentage based on performance criteria
|
172.5%
|
|
172.5%
|
Fair values of each nonvested award
|
$88.89
|
|
$88.89
|
Vested Awards - Certain performance shares and performance units vested, resulting in payouts (a combination of cash and common stock for the performance shares and cash only for the performance units) as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Shares (granted prior to 2019)
|
|
Performance Units (granted prior to 2019)
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
|
2017 Grant
|
|
2016 Grant
|
|
2015 Grant
|
|
2017 Grant
|
|
2016 Grant
|
|
2015 Grant
|
Performance awards vested
|
63,565
|
|
66,322
|
|
90,806
|
|
16,661
|
|
20,131
|
|
31,910
|
Percentage of target number of performance awards
|
155.0%
|
|
142.5%
|
|
137.5%
|
|
155.0%
|
|
142.5%
|
|
137.5%
|
Aggregate payout value (in millions)
|
$6
|
|
$4
|
|
$5
|
|
$2
|
|
$1
|
|
$1
|
Payout - cash (in millions)
|
$5
|
|
$4
|
|
$5
|
|
$2
|
|
$1
|
|
$1
|
Payout - common stock shares issued
|
9,543
|
|
6,447
|
|
5,078
|
|
N/A
|
|
N/A
|
|
N/A
|
Restricted Stock Units - Equity Awards - Payouts of 2020 and 2019 restricted stock units are based on the expiration of a three-year time-vesting period. Restricted stock units granted in 2020 and 2019 are to be paid out in shares of Alliant Energy common stock and are accounted for as equity awards. The fair value of each restricted stock unit granted in 2020 and 2019 is based on the closing market price of one share of Alliant Energy common stock on the grant date of the award. Compensation expense is recorded ratably over the performance period based on the fair value of the awards on the grant date. A summary of the 2020 and 2019 restricted stock units activity was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
|
Restricted Stock Units - Equity
|
|
Weighted Average
Grant Date Fair Value
|
|
Restricted Stock Units - Equity
|
|
Weighted Average
Grant Date Fair Value
|
Nonvested units, January 1
|
|
89,281
|
|
|
$46.04
|
|
—
|
|
|
$—
|
Granted
|
|
61,056
|
|
|
59.42
|
|
105,348
|
|
|
45.98
|
|
|
|
|
|
|
|
|
|
Forfeited
|
|
(3,788)
|
|
|
49.01
|
|
(16,067)
|
|
|
45.63
|
Nonvested units, December 31
|
|
146,549
|
|
|
51.54
|
|
89,281
|
|
|
46.04
|
Restricted Stock Units - Liability Awards - Payouts of restricted stock units granted prior to 2019 are based on the expiration of a three-year time-vesting period and can be paid out in shares of Alliant Energy common stock, cash or a combination of cash and stock. Alliant Energy assumes it will make future payouts of its restricted stock units granted prior to 2019 in cash; therefore, restricted stock units granted prior to 2019 are accounted for as liability awards. The fair value of each restricted stock unit granted prior to 2019 is based on the closing market price of one share of Alliant Energy common stock at the end of the time-vesting period. Compensation expense is recorded ratably over the performance period based on the fair value of the awards at each reporting period. A summary of the restricted stock units granted prior to 2019 activity was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2018
|
Nonvested units, January 1
|
113,033
|
|
|
174,163
|
|
|
113,749
|
|
Granted
|
—
|
|
|
—
|
|
|
63,568
|
|
Vested
|
(54,483)
|
|
|
(56,849)
|
|
|
—
|
|
Forfeited
|
—
|
|
|
(4,281)
|
|
|
(3,154)
|
|
Nonvested units, December 31
|
58,550
|
|
|
113,033
|
|
|
174,163
|
|
Performance Restricted Stock Units - Equity Awards - Payouts of performance restricted stock units are based upon achievement of certain performance targets during a three-year performance period, which currently includes specified growth of consolidated net income from continuing operations. The actual number of units that will be paid out upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of units. If minimum performance targets are not met during the performance period, these units are forfeited. Performance restricted stock units generally must be paid out in shares and are accounted for as equity awards. The fair value of each performance restricted stock unit is based on the closing market price of one share of Alliant Energy common stock on the grant date of the award. Compensation expense is recorded ratably over the performance period based on a probability assessment of payouts for the awards at each reporting period. A summary of the performance restricted stock units activity, with amounts representing the target number of units, was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2018
|
|
Units
|
|
Weighted Average
Grant Date Fair Value
|
|
Units
|
|
Weighted Average
Grant Date Fair Value
|
|
Units
|
|
Weighted Average
Grant Date Fair Value
|
Nonvested units, January 1
|
206,065
|
|
|
$41.50
|
|
203,188
|
|
|
$37.23
|
|
132,705
|
|
|
$36.50
|
Granted
|
56,204
|
|
|
59.37
|
|
91,816
|
|
|
46.10
|
|
74,163
|
|
|
38.60
|
Vested
|
(63,565)
|
|
|
39.12
|
|
(66,322)
|
|
|
33.93
|
|
—
|
|
|
—
|
Forfeited
|
(1,241)
|
|
|
49.25
|
|
(22,617)
|
|
|
44.00
|
|
(3,680)
|
|
|
38.60
|
Nonvested units, December 31
|
197,463
|
|
|
47.31
|
|
206,065
|
|
|
41.50
|
|
203,188
|
|
|
37.23
|
NOTE 13(c) Deferred Compensation Plan - Alliant Energy maintains a DCP under which key employees may defer up to 100% of base salary and short-term cash incentive compensation and directors may elect to defer all or part of their retainer and committee fees. Key employees who have made the maximum allowed contribution to the Alliant Energy 401(k) Savings Plan may receive an additional credit to the DCP. Key employees and directors may elect to have their deferrals credited to a company stock account, an interest account, equity accounts or mutual fund accounts based on certain benchmark funds.
Company Stock Account - The DCP does not permit diversification of deferrals credited to the company stock account and all distributions from participants’ company stock accounts are made in the form of shares of Alliant Energy common stock. The deferred compensation obligations for participants’ company stock accounts are recorded in “Additional paid-in capital” and the shares of Alliant Energy common stock held in a rabbi trust to satisfy this obligation are recorded in “Shares in deferred compensation trust” on Alliant Energy’s balance sheets. At December 31, the carrying value of the deferred compensation obligation for the company stock account and the shares in the deferred compensation trust based on the historical value of the shares of Alliant Energy common stock contributed to the rabbi trust, and the fair market value of the shares held in the rabbi trust, were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Carrying value
|
$11
|
|
|
$10
|
|
Fair market value
|
20
|
|
|
21
|
|
Interest, Equity and Mutual Fund Accounts - Distributions from participants’ interest, equity and mutual fund accounts are in the form of cash payments. The deferred compensation obligations for participants’ interest, equity and mutual fund accounts are recorded in “Pension and other benefit obligations” on the balance sheets. At December 31, 2020 and 2019, the carrying value of Alliant Energy’s deferred compensation obligations for participants’ interest, equity and mutual fund accounts, which approximates fair market value, was $22 million and $21 million, respectively.
NOTE 14. ASSET RETIREMENT OBLIGATIONS
Recognized AROs relate to legal obligations for the removal, closure or dismantlement of several assets including, but not limited to, wind farms, ash ponds, active ash landfills, above ground storage tanks, coal yards and solar generation. Recognized AROs also include legal obligations for the management and final disposition of asbestos and polychlorinated biphenyls. AROs are recorded in “Other current liabilities” and “Other liabilities” on the balance sheets. Refer to Note 2 for information regarding regulatory assets related to AROs. A reconciliation of the changes in AROs associated with long-lived assets is as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Balance, January 1
|
$196
|
|
|
$177
|
|
|
$134
|
|
|
$118
|
|
|
$62
|
|
|
$59
|
|
Revisions in estimated cash flows
|
13
|
|
|
(6)
|
|
|
9
|
|
|
(7)
|
|
|
4
|
|
|
1
|
|
Liabilities settled
|
(13)
|
|
|
(8)
|
|
|
(9)
|
|
|
(8)
|
|
|
(4)
|
|
|
—
|
|
Liabilities incurred (a)
|
48
|
|
|
26
|
|
|
38
|
|
|
26
|
|
|
10
|
|
|
—
|
|
Accretion expense
|
7
|
|
|
7
|
|
|
5
|
|
|
5
|
|
|
2
|
|
|
2
|
|
Balance, December 31
|
$251
|
|
|
$196
|
|
|
$177
|
|
|
$134
|
|
|
$74
|
|
|
$62
|
|
(a)In 2020, IPL placed in service the Whispering Willow North, Golden Plains and Richland wind sites, and WPL placed in service the Kossuth wind site. As a result, Alliant Energy, IPL and WPL recognized additional AROs in 2020, which resulted in corresponding increases in property, plant and equipment, net on the respective balance sheets.
NOTE 15. DERIVATIVE INSTRUMENTS
Commodity Derivatives -
Purpose - Derivative instruments are used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices, transmission congestion costs and rail transportation costs. Risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:
|
|
|
|
|
|
Risk management purpose
|
Type of instrument
|
Mitigate pricing volatility for:
|
|
Fuel used to supply natural gas-fired EGUs
|
Natural gas swap, options and physical forward contracts (IPL and WPL)
|
Natural gas supplied to retail customers
|
Natural gas swap, options and physical forward contracts (IPL and WPL)
|
Fuel used at coal-fired EGUs
|
Coal physical forward contracts (IPL and WPL)
|
Optimize the value of natural gas pipeline capacity
|
Natural gas physical forward contracts (IPL and WPL)
|
|
Natural gas swap contracts (IPL)
|
Manage transmission congestion costs
|
FTRs (IPL and WPL)
|
Manage rail transportation costs
|
Diesel fuel swap contracts (WPL)
|
Notional Amounts - As of December 31, 2020, gross notional amounts and settlement/delivery years related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTRs
|
|
Natural Gas
|
|
Coal
|
|
Diesel Fuel
|
|
|
|
|
|
MWhs
|
|
Years
|
|
Dths
|
|
Years
|
|
Tons
|
|
Years
|
|
Gallons
|
|
Years
|
Alliant Energy
|
|
|
|
|
9,285
|
|
|
2021
|
|
208,542
|
|
|
2021-2028
|
|
5,648
|
|
|
2021-2023
|
|
5,544
|
|
|
2021-2022
|
IPL
|
|
|
|
|
3,398
|
|
|
2021
|
|
109,063
|
|
|
2021-2028
|
|
2,548
|
|
|
2021-2023
|
|
—
|
|
|
—
|
WPL
|
|
|
|
|
5,887
|
|
|
2021
|
|
99,479
|
|
|
2021-2027
|
|
3,100
|
|
|
2021-2023
|
|
5,544
|
|
|
2021-2022
|
Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheet as assets or liabilities. At December 31, the fair values of current derivative assets are included in “Other current assets,” non-current derivative assets are included in “Deferred charges and other,” current derivative liabilities are included in “Other current liabilities” and non-current derivative liabilities are included in “Other liabilities” on the balance sheets as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Current derivative assets
|
$24
|
|
$16
|
|
$20
|
|
$12
|
|
$4
|
|
$4
|
Non-current derivative assets
|
10
|
|
11
|
|
9
|
|
10
|
|
1
|
|
1
|
Current derivative liabilities
|
9
|
|
19
|
|
3
|
|
9
|
|
6
|
|
10
|
Non-current derivative liabilities
|
16
|
|
19
|
|
9
|
|
9
|
|
7
|
|
10
|
Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided in the form of letters of credit or cash collateral up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. At December 31, 2020 and 2019, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position was not materially different than amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered.
Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, amounts would not be materially different from gross amounts of derivative assets and derivative liabilities at December 31, 2020 and 2019. Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.
NOTE 16. FAIR VALUE MEASUREMENTS
Valuation Hierarchy - Fair value measurement accounting establishes three levels of fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value. Level 1 pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. Level 3 pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation.
The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.
Valuation Techniques -
Derivative assets and derivative liabilities - Swap, option and physical forward commodity contracts were non-exchange-based derivative instruments and were valued using indicative price quotations from a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations, from market publications or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. A portion of these indicative price quotations were corroborated using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. Commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. Swap, option and physical forward commodity contracts were predominately at liquid trading points. FTRs were valued using auction prices and were categorized as Level 3. Refer to Note 15 for additional details of derivative assets and derivative liabilities.
Deferred proceeds (sales of receivables) - The fair value of IPL’s deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the cost approach valuation technique. The fair value represents the carrying amount of receivables sold less the allowance for expected credit losses associated with the receivables sold and cash amounts received from the receivables sold due to the short-term nature of the collection period. These inputs were considered unobservable and deferred proceeds were categorized as Level 3. Deferred proceeds represent IPL’s maximum exposure to loss related to the receivables sold. Refer to Note 5(b) for additional information regarding deferred proceeds.
Long-term debt (including current maturities) - The fair value of long-term debt instruments was based on a discounted cash flow methodology using observable data from comparably traded securities with similar credit profiles, and was substantially classified as Level 2. Refer to Note 9(b) for additional information regarding long-term debt.
Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at December 31 were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
2020
|
|
2019
|
|
|
|
Fair Value
|
|
|
|
Fair Value
|
|
Carrying
|
|
Level
|
|
Level
|
|
Level
|
|
|
|
Carrying
|
|
Level
|
|
Level
|
|
Level
|
|
|
|
Amount
|
|
1
|
|
2
|
|
3
|
|
Total
|
|
Amount
|
|
1
|
|
2
|
|
3
|
|
Total
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund investments
|
$44
|
|
|
$44
|
|
|
$—
|
|
|
$—
|
|
|
$44
|
|
|
$5
|
|
|
$5
|
|
|
$—
|
|
|
$—
|
|
|
$5
|
|
Derivatives
|
34
|
|
|
—
|
|
|
5
|
|
|
29
|
|
|
34
|
|
|
27
|
|
|
—
|
|
|
5
|
|
|
22
|
|
|
27
|
|
Deferred proceeds
|
188
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|
188
|
|
|
188
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|
188
|
|
Liabilities and equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
38
|
|
|
—
|
|
|
37
|
|
|
1
|
|
|
38
|
|
Long-term debt (incl. current maturities)
|
6,777
|
|
|
—
|
|
|
8,107
|
|
|
2
|
|
|
8,109
|
|
|
6,190
|
|
|
—
|
|
|
6,918
|
|
|
2
|
|
|
6,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPL
|
2020
|
|
2019
|
|
|
|
Fair Value
|
|
|
|
Fair Value
|
|
Carrying
|
|
Level
|
|
Level
|
|
Level
|
|
|
|
Carrying
|
|
Level
|
|
Level
|
|
Level
|
|
|
|
Amount
|
|
1
|
|
2
|
|
3
|
|
Total
|
|
Amount
|
|
1
|
|
2
|
|
3
|
|
Total
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market fund investments
|
$44
|
|
|
$44
|
|
|
$—
|
|
|
$—
|
|
|
$44
|
|
|
$5
|
|
|
$5
|
|
|
$—
|
|
|
$—
|
|
|
$5
|
|
Derivatives
|
29
|
|
|
—
|
|
|
3
|
|
|
26
|
|
|
29
|
|
|
22
|
|
|
—
|
|
|
3
|
|
|
19
|
|
|
22
|
|
Deferred proceeds
|
188
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|
188
|
|
|
188
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|
188
|
|
Liabilities and equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
18
|
|
|
—
|
|
|
17
|
|
|
1
|
|
|
18
|
|
Long-term debt (incl. current maturities)
|
3,345
|
|
|
—
|
|
|
4,021
|
|
|
—
|
|
|
4,021
|
|
|
3,147
|
|
|
—
|
|
|
3,489
|
|
|
—
|
|
|
3,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPL
|
2020
|
|
2019
|
|
|
|
Fair Value
|
|
|
|
Fair Value
|
|
Carrying
|
|
Level
|
|
Level
|
|
Level
|
|
|
|
Carrying
|
|
Level
|
|
Level
|
|
Level
|
|
|
|
Amount
|
|
1
|
|
2
|
|
3
|
|
Total
|
|
Amount
|
|
1
|
|
2
|
|
3
|
|
Total
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
$5
|
|
|
$—
|
|
|
$2
|
|
|
$3
|
|
|
$5
|
|
|
$5
|
|
|
$—
|
|
|
$2
|
|
|
$3
|
|
|
$5
|
|
Liabilities and equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
Long-term debt (incl. current maturities)
|
2,130
|
|
|
—
|
|
|
2,690
|
|
|
—
|
|
|
2,690
|
|
|
1,933
|
|
|
—
|
|
|
2,268
|
|
|
—
|
|
|
2,268
|
|
Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
Commodity Contract Derivative
|
|
|
|
Assets and (Liabilities), net
|
|
Deferred Proceeds
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Beginning balance, January 1
|
$21
|
|
|
$12
|
|
|
$188
|
|
|
$119
|
|
Total net gains included in changes in net assets (realized/unrealized)
|
11
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Transfers out of Level 3 (a)
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
Purchases
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
Sales
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Settlements (b)
|
(16)
|
|
|
(17)
|
|
|
—
|
|
|
69
|
|
Ending balance, December 31
|
$29
|
|
|
$21
|
|
|
$188
|
|
|
$188
|
|
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at December 31
|
$11
|
|
|
$11
|
|
|
$—
|
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPL
|
Commodity Contract Derivative
|
|
|
|
Assets and (Liabilities), net
|
|
Deferred Proceeds
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Beginning balance, January 1
|
$18
|
|
|
$9
|
|
|
$188
|
|
|
$119
|
|
Total net gains included in changes in net assets (realized/unrealized)
|
10
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Transfers out of Level 3 (a)
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
Purchases
|
11
|
|
|
9
|
|
|
—
|
|
|
—
|
|
Sales
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Settlements (b)
|
(12)
|
|
|
(13)
|
|
|
—
|
|
|
69
|
|
Ending balance, December 31
|
$26
|
|
|
$18
|
|
|
$188
|
|
|
$188
|
|
The amount of total net gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at December 31
|
$10
|
|
|
$12
|
|
|
$—
|
|
|
$—
|
|
(a)Observable market inputs became available for certain commodity contracts previously classified as Level 3 for transfers out of Level 3.
(b)Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for expected credit losses associated with the receivables sold and cash amounts received from the receivables sold.
Commodity Contracts - The fair value of FTR and natural gas commodity contracts categorized as Level 3 was recognized as net derivative assets at December 31 as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
|
WPL
|
|
Excluding FTRs
|
|
FTRs
|
|
Excluding FTRs
|
|
FTRs
|
|
Excluding FTRs
|
|
FTRs
|
2020
|
$18
|
|
|
$11
|
|
|
$17
|
|
|
$9
|
|
|
$1
|
|
|
$2
|
|
2019
|
15
|
|
|
7
|
|
|
14
|
|
|
5
|
|
|
1
|
|
|
2
|
|
NOTE 17. COMMITMENTS AND CONTINGENCIES
NOTE 17(a) Capital Purchase Commitments - Various contractual obligations contain minimum future commitments related to capital expenditures for certain construction projects, including WPL’s expansion of solar generation. At December 31, 2020, Alliant Energy’s and WPL’s minimum future commitments in 2021 for these projects were $8 million and $7 million, respectively.
NOTE 17(b) Other Purchase Commitments - Various commodity supply, transportation and storage contracts help meet obligations to provide electricity and natural gas to utility customers. In addition, there are various purchase commitments associated with other goods and services. At December 31, 2020, the related minimum future commitments were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
Thereafter
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
252
|
|
174
|
|
137
|
|
105
|
|
68
|
|
185
|
|
921
|
Coal
|
70
|
|
27
|
|
17
|
|
—
|
|
—
|
|
—
|
|
114
|
Other (a)
|
61
|
|
17
|
|
11
|
|
8
|
|
3
|
|
29
|
|
129
|
|
$383
|
|
$218
|
|
$165
|
|
$113
|
|
$71
|
|
$214
|
|
$1,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPL
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
Thereafter
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
130
|
|
88
|
|
79
|
|
68
|
|
38
|
|
71
|
|
474
|
Coal
|
32
|
|
16
|
|
13
|
|
—
|
|
—
|
|
—
|
|
61
|
Other (a)
|
25
|
|
5
|
|
4
|
|
2
|
|
2
|
|
27
|
|
65
|
|
$187
|
|
$109
|
|
$96
|
|
$70
|
|
$40
|
|
$98
|
|
$600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPL
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
Thereafter
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
122
|
|
86
|
|
58
|
|
37
|
|
30
|
|
114
|
|
447
|
Coal
|
38
|
|
11
|
|
4
|
|
—
|
|
—
|
|
—
|
|
53
|
Other (a)
|
26
|
|
2
|
|
1
|
|
1
|
|
1
|
|
1
|
|
32
|
|
$186
|
|
$99
|
|
$63
|
|
$38
|
|
$31
|
|
$115
|
|
$532
|
(a)Includes individual commitments incurred during the normal course of business that exceeded $1 million at December 31, 2020.
NOTE 17(c) Legal Proceedings - Alliant Energy, IPL and WPL are involved in legal and administrative proceedings before various courts and agencies with respect to matters arising in the ordinary course of business. Although unable to predict the outcome of these matters, Alliant Energy, IPL and WPL believe that appropriate reserves have been established and final disposition of these actions will not have a material effect on their financial condition or results of operations.
NOTE 17(d) Guarantees and Indemnifications -
Whiting Petroleum - Whiting Petroleum is an independent oil and gas company. In 2004, Alliant Energy sold its remaining interest in Whiting Petroleum. Alliant Energy Resources, LLC, as the successor to a predecessor entity that owned Whiting Petroleum, and a wholly-owned subsidiary of AEF, continues to guarantee the partnership obligations of an affiliate of Whiting Petroleum under multiple general partnership agreements in the oil and gas industry. The guarantees do not include a maximum limit. Based on information made available to Alliant Energy by Whiting Petroleum, the Whiting Petroleum affiliate holds an approximate 6% share in the partnerships, and currently known obligations include costs associated with the future abandonment of certain facilities owned by the partnerships. The general partnerships were formed under California law, and Alliant Energy Resources, LLC may need to perform under the guarantees if the affiliate of Whiting Petroleum is unable to meet its partnership obligations.
As of December 31, 2020, the currently known partnership obligations for the abandonment obligations are estimated at $68 million, which represents Alliant Energy’s currently estimated maximum exposure under the guarantees. Alliant Energy estimates its expected loss to be a portion of the $68 million of known partnership abandonment obligations of the Whiting Petroleum affiliate and the other partners. Alliant Energy is not aware of any material liabilities related to these guarantees that it is probable that it will be obligated to pay; however, the new credit loss accounting standard adopted on January 1, 2020 requires recognition of a liability for expected credit losses related to the contingent obligations that are in the scope of these guarantees. With the adoption of this standard, Alliant Energy recorded a pre-tax $12 million cumulative effect adjustment to decrease the opening balance of retained earnings as of January 1, 2020.
In April 2020, Whiting Petroleum filed for bankruptcy, and in September 2020, Whiting Petroleum completed its reorganization and emerged from bankruptcy. As a result of Whiting Petroleum’s completed bankruptcy proceedings, as well as additional information regarding the guarantees obtained from the bankruptcy proceedings, the credit loss liability was decreased to $5 million in 2020. The credit loss liability is recorded in “Other liabilities” on Alliant Energy’s balance sheet as of December 31, 2020. In 2020, the pre-tax credit loss adjustment of $7 million was recorded as a reduction in Alliant Energy’s “Other operation and maintenance” expenses.
Non-utility Wind Farm in Oklahoma - In 2017, a wholly-owned subsidiary of AEF acquired a cash equity ownership interest in a non-utility wind farm located in Oklahoma. The wind farm provides electricity to a third-party under a long-term PPA. Alliant Energy provided a parent guarantee of its subsidiary’s indemnification obligations under the related operating agreement and PPA. Alliant Energy’s obligations under the operating agreement were $74 million as of December 31, 2020 and will reduce annually until expiring in July 2047. Alliant Energy’s obligations under the PPA are subject to a maximum limit of $17 million and expire in December 2031, subject to potential extension. Alliant Energy is not aware of any material liabilities related to this guarantee that it is probable that it will be obligated to pay and therefore has not recognized any material liabilities related to this guarantee as of December 31, 2020 and 2019.
NOTE 17(e) Environmental Matters - Alliant Energy, IPL and WPL are subject to environmental regulations as a result of their current and past operations. These regulations are designed to protect public health and the environment and have resulted in compliance, remediation, containment and monitoring obligations, which are recorded as current and non-current environmental liabilities. Substantially all of the environmental liabilities recorded on the balance sheets relate to MGP sites.
MGP Sites - IPL and WPL have current or previous ownership interests in various sites that are previously associated with the production of gas for which IPL and WPL have, or may have in the future, liability for investigation, remediation and monitoring
costs. IPL and WPL are working pursuant to the requirements of various federal and state agencies to investigate, mitigate, prevent and remediate, where necessary, the environmental impacts to property, including natural resources, at and around these former MGP sites in order to protect public health and the environment. At December 31, 2020, estimated future costs expected to be incurred for the investigation, remediation and monitoring of the MGP sites, as well as environmental liabilities recorded on the balance sheets for these sites, which are not discounted, were as follows (in millions). At December 31, 2020, such amounts for WPL were not material.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alliant Energy
|
|
IPL
|
Range of estimated future costs
|
$11
|
|
-
|
$28
|
|
$8
|
|
-
|
$22
|
Current and non-current environmental liabilities
|
15
|
|
12
|
IPL Consent Decree - In 2015, the U.S. District Court for the Northern District of Iowa approved a Consent Decree that IPL entered into with the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, thereby resolving potential CAA issues associated with emissions from IPL’s coal-fired generating facilities in Iowa. IPL has completed various requirements under the Consent Decree. IPL’s remaining requirements include fuel switching or retiring Burlington by December 31, 2021 and Prairie Creek Units 1 and 3 by December 31, 2025. Alliant Energy and IPL currently expect to recover material costs incurred by IPL related to compliance with the terms of the Consent Decree from IPL’s electric customers.
Other Environmental Contingencies - In addition to the environmental liabilities discussed above, various environmental rules are monitored that may have a significant impact on future operations. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Given uncertainties regarding the outcome, timing and compliance plans for these environmental matters, the complete financial impact of each of these rules is not able to be determined; however future capital investments and/or modifications to EGUs and electric and gas distribution systems to comply with certain of these rules could be significant. Specific current, proposed or potential environmental matters include, among others: Effluent Limitation Guidelines, CCR Rule, and various legislation and EPA regulations to monitor and regulate the emission of GHG, including the CAA.
NOTE 17(f) Credit Risk - IPL provides retail electric and gas services in Iowa and wholesale electric service in Minnesota, Illinois and Iowa. WPL provides retail electric and gas services and wholesale electric service in Wisconsin. The geographic concentration of IPL’s and WPL’s customers did not contribute significantly to overall credit risk exposure. In addition, as a result of a diverse customer base, IPL and WPL did not have any significant credit risk concentration for receivables arising from the sale of electricity or gas services.
Alliant Energy, IPL and WPL are subject to credit risk related to the ability of counterparties to meet their contractual payment obligations or the potential non-performance of counterparties to deliver contracted commodities and other goods or services at the contracted price. Credit policies are maintained to mitigate credit risk. These credit policies include evaluation of the financial condition of certain counterparties, use of credit risk-related contingent provisions in certain agreements that require credit support from counterparties not meeting specific criteria, diversification of counterparties to reduce concentrations of credit risk and the use of standardized agreements that facilitate the netting of cash flows associated with certain counterparties. Based on these credit policies and counterparty diversification, as well as utility cost recovery mechanisms, it is unlikely that counterparty non-performance would have a material effect on financial condition or results of operations. However, there is no assurance that these items will protect against all losses from counterparty non-performance.
Refer to Notes 5(a) and 15 for details of allowances for expected credit losses and credit risk-related contingent features, respectively.
NOTE 17(g) MISO Transmission Owner Return on Equity Complaints - A group of MISO cooperative and municipal utilities previously filed complaints with FERC requesting a reduction to the base return on equity used by MISO transmission owners, including ITC and ATC. The first complaint covered the period from November 12, 2013 through February 11, 2015. In 2017, IPL and WPL received refunds related to the first complaint period, which were subsequently refunded to their retail and wholesale customers. The second complaint covered the period from February 12, 2015 through May 11, 2016. In November 2019, FERC issued an order on the previously filed complaints and reduced the base return on equity used by the MISO transmission owners to 9.88% effective for the first complaint period and subsequent to September 28, 2016. The November 2019 FERC order also dismissed the second complaint; therefore, FERC did not direct refunds to be made for that complaint. In May 2020, FERC issued an order in response to various rehearing requests and increased the base return on equity used by the MISO transmission owners from 9.88% to 10.02% for the first complaint period and subsequent to September 28, 2016, which reduces the refunds originally anticipated to be received by IPL and WPL as a result of FERC’s November 2019 order.
In 2020, IPL and WPL received $15 million and $5 million, respectively, in refunds related to the FERC orders. In October 2020, FERC extended the time to complete additional refunds to September 2021. IPL currently expects that all refunds will be returned to its retail electric customers after refund amounts and timing are known and a refund plan is approved by the IUB. IPL currently expects that a portion of the refunds will be returned to its retail electric customers in 2021. Pursuant to PSCW authorization, WPL will retain the refunds to maintain its current retail electric base rates through the end of 2021. WPL currently expects that any refunds not utilized to maintain base rates would be returned to its customers in WPL’s next retail
electric rate review proceeding. Any further changes in FERC’s decisions may have an impact on Alliant Energy’s share of ATC’s future earnings and customer costs.
NOTE 18. SEGMENTS OF BUSINESS
Alliant Energy - Alliant Energy’s principal businesses as of December 31, 2020 are:
•Utility - includes the operations of IPL and WPL, which primarily serve retail customers in Iowa and Wisconsin. The utility business has three reportable segments: a) utility electric operations; b) utility gas operations; and c) utility other, which includes steam operations and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total Utility.”
•ATC Holdings, Non-utility, Parent and Other - includes the operations of AEF and its subsidiaries, Corporate Services, the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. AEF is comprised of Alliant Energy’s interest in ATC Holdings, Travero, a non-utility wind farm, the Sheboygan Falls Energy Facility and other non-utility holdings.
Alliant Energy’s administrative support services are directly charged to the applicable segment where practicable. In all other cases, administrative support services are allocated to the applicable segment based on services agreements. Intersegment revenues were not material to Alliant Energy’s operations and there was no single customer whose revenues were 10% or more of Alliant Energy’s consolidated revenues. All of Alliant Energy’s operations and assets are located in the U.S. Certain financial information relating to Alliant Energy’s business segments, which represent the services provided to its customers, was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATC Holdings,
|
|
|
|
Utility
|
|
Non-utility,
|
|
Alliant Energy
|
2020
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
|
Parent and Other
|
|
Consolidated
|
Revenues
|
$2,920
|
|
|
$373
|
|
|
$49
|
|
|
$3,342
|
|
|
$74
|
|
$3,416
|
Depreciation and amortization
|
556
|
|
|
49
|
|
|
5
|
|
|
610
|
|
|
5
|
|
615
|
Operating income (loss)
|
643
|
|
|
74
|
|
|
(1)
|
|
|
716
|
|
|
24
|
|
740
|
Interest expense
|
|
|
|
|
|
|
243
|
|
|
32
|
|
275
|
Equity income from unconsolidated investments, net
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(59)
|
|
(61)
|
Income tax expense (benefit)
|
|
|
|
|
|
|
(66)
|
|
|
9
|
|
(57)
|
Net income attributable to Alliant Energy common shareowners
|
|
|
|
|
|
|
573
|
|
|
41
|
|
614
|
Total assets
|
14,358
|
|
|
1,413
|
|
|
990
|
|
|
16,761
|
|
|
949
|
|
17,710
|
Investments in equity method subsidiaries
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
465
|
|
476
|
Construction and acquisition expenditures
|
1,109
|
|
|
182
|
|
|
2
|
|
|
1,293
|
|
|
73
|
|
1,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATC Holdings,
|
|
|
|
Utility
|
|
Non-utility,
|
|
Alliant Energy
|
2019
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
|
Parent and Other
|
|
Consolidated
|
Revenues
|
$3,064
|
|
|
$455
|
|
|
$46
|
|
|
$3,565
|
|
|
$83
|
|
$3,648
|
Depreciation and amortization
|
513
|
|
|
47
|
|
|
3
|
|
|
563
|
|
|
4
|
|
567
|
Operating income
|
679
|
|
|
70
|
|
|
1
|
|
|
750
|
|
|
28
|
|
778
|
Interest expense
|
|
|
|
|
|
|
229
|
|
|
44
|
|
273
|
Equity income from unconsolidated investments, net
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(52)
|
|
(53)
|
Income tax expense (benefit)
|
|
|
|
|
|
|
73
|
|
|
(4)
|
|
69
|
Net income attributable to Alliant Energy common shareowners
|
|
|
|
|
|
|
517
|
|
|
40
|
|
557
|
Total assets
|
13,659
|
|
|
1,269
|
|
|
856
|
|
|
15,784
|
|
|
917
|
|
16,701
|
Investments in equity method subsidiaries
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
449
|
|
458
|
Construction and acquisition expenditures
|
1,439
|
|
|
100
|
|
|
—
|
|
|
1,539
|
|
|
101
|
|
1,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATC Holdings,
|
|
|
|
Utility
|
|
Non-utility,
|
|
Alliant Energy
|
2018
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
|
Parent and Other
|
|
Consolidated
|
Revenues
|
$3,000
|
|
|
$447
|
|
|
$48
|
|
|
$3,495
|
|
|
$39
|
|
$3,534
|
Depreciation and amortization
|
457
|
|
|
42
|
|
|
3
|
|
|
502
|
|
|
5
|
|
507
|
Operating income
|
610
|
|
|
53
|
|
|
1
|
|
|
664
|
|
|
30
|
|
694
|
Interest expense
|
|
|
|
|
|
|
217
|
|
|
30
|
|
247
|
Equity income from unconsolidated investments, net
|
(1)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(54)
|
|
(55)
|
Income taxes
|
|
|
|
|
|
|
33
|
|
|
15
|
|
48
|
Net income attributable to Alliant Energy common shareowners
|
|
|
|
|
|
|
472
|
|
|
40
|
|
512
|
Total assets
|
12,486
|
|
|
1,184
|
|
|
893
|
|
|
14,563
|
|
|
863
|
|
15,426
|
Investments in equity method subsidiaries
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
413
|
|
421
|
Construction and acquisition expenditures
|
1,422
|
|
|
147
|
|
|
—
|
|
|
1,569
|
|
|
65
|
|
1,634
|
IPL - IPL is a utility primarily serving retail customers in Iowa and includes three reportable segments: a) electric operations; b) gas operations; and c) other, which includes steam operations and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total.” Intersegment revenues were not material to IPL’s operations and there was no single customer whose revenues were 10% or more of IPL’s consolidated revenues. All of IPL’s operations and assets are located in the U.S. Certain financial information relating to IPL’s business segments, which represent the services provided to its customers, was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
Revenues
|
$1,695
|
|
$208
|
|
$44
|
|
$1,947
|
|
Depreciation and amortization
|
321
|
|
30
|
|
5
|
|
356
|
|
Operating income
|
358
|
|
50
|
|
2
|
|
410
|
|
Interest expense
|
|
|
|
|
|
|
139
|
|
Income tax benefit
|
|
|
|
|
|
|
(47)
|
|
Net income available for common stock
|
|
|
|
|
|
|
324
|
|
Total assets
|
8,518
|
|
766
|
|
565
|
|
9,849
|
|
Construction and acquisition expenditures
|
626
|
|
59
|
|
2
|
|
687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
Revenues
|
$1,781
|
|
$264
|
|
$44
|
|
$2,089
|
|
Depreciation and amortization
|
295
|
|
29
|
|
3
|
|
327
|
|
Operating income
|
360
|
|
39
|
|
4
|
|
403
|
|
Interest expense
|
|
|
|
|
|
|
127
|
|
Income taxes
|
|
|
|
|
|
|
24
|
|
Net income available for common stock
|
|
|
|
|
|
|
284
|
|
Total assets
|
8,075
|
|
734
|
|
468
|
|
9,277
|
|
Construction and acquisition expenditures
|
964
|
|
56
|
|
—
|
|
1,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
Revenues
|
$1,731
|
|
$266
|
|
$45
|
|
$2,042
|
|
Depreciation and amortization
|
255
|
|
25
|
|
3
|
|
283
|
|
Operating income
|
318
|
|
28
|
|
5
|
|
351
|
|
Interest expense
|
|
|
|
|
|
|
119
|
|
Income tax benefit
|
|
|
|
|
|
|
(3)
|
|
Net income available for common stock
|
|
|
|
|
|
|
264
|
|
Total assets
|
7,220
|
|
687
|
|
504
|
|
8,411
|
|
Construction and acquisition expenditures
|
891
|
|
100
|
|
—
|
|
991
|
|
WPL - WPL is a utility serving customers in Wisconsin and includes three reportable segments: a) electric operations; b) gas operations; and c) other, which includes the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total.” Intersegment revenues were not material to WPL’s operations and there was no single customer whose revenues were 10% or more of WPL’s consolidated revenues. All of WPL’s operations and assets are located in the U.S. Certain financial information relating to WPL’s business segments, which represent the services provided to its customers, was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
Revenues
|
$1,225
|
|
|
$165
|
|
|
$5
|
|
|
$1,395
|
|
Depreciation and amortization
|
235
|
|
|
19
|
|
|
—
|
|
|
254
|
|
Operating income (loss)
|
285
|
|
|
24
|
|
|
(3)
|
|
|
306
|
|
Interest expense
|
|
|
|
|
|
|
104
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
|
|
|
(19)
|
|
Net income
|
|
|
|
|
|
|
249
|
|
Total assets
|
5,840
|
|
|
647
|
|
|
425
|
|
|
6,912
|
|
|
|
|
|
|
|
|
|
Construction and acquisition expenditures
|
483
|
|
|
123
|
|
|
—
|
|
|
606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
Revenues
|
$1,283
|
|
|
$191
|
|
|
$2
|
|
|
$1,476
|
|
Depreciation and amortization
|
218
|
|
|
18
|
|
|
—
|
|
|
236
|
|
Operating income (loss)
|
319
|
|
|
31
|
|
|
(3)
|
|
|
347
|
|
Interest expense
|
|
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
49
|
|
Net income
|
|
|
|
|
|
|
233
|
|
Total assets
|
5,584
|
|
|
535
|
|
|
388
|
|
|
6,507
|
|
|
|
|
|
|
|
|
|
Construction and acquisition expenditures
|
475
|
|
|
44
|
|
|
—
|
|
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
Electric
|
|
Gas
|
|
Other
|
|
Total
|
Revenues
|
$1,269
|
|
|
$181
|
|
|
$3
|
|
|
$1,453
|
|
Depreciation and amortization
|
202
|
|
|
17
|
|
|
—
|
|
|
219
|
|
Operating income (loss)
|
292
|
|
|
25
|
|
|
(4)
|
|
|
313
|
|
Interest expense
|
|
|
|
|
|
|
98
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
36
|
|
Net income
|
|
|
|
|
|
|
208
|
|
Total assets
|
5,266
|
|
|
497
|
|
|
389
|
|
|
6,152
|
|
|
|
|
|
|
|
|
|
Construction and acquisition expenditures
|
531
|
|
|
47
|
|
|
—
|
|
|
578
|
|
NOTE 19. RELATED PARTIES
Service Agreements - Pursuant to service agreements, IPL and WPL receive various administrative and general services from an affiliate, Corporate Services. These services are billed to IPL and WPL at cost based on expenses incurred by Corporate Services for the benefit of IPL and WPL, respectively. These costs consisted primarily of employee compensation and benefits, fees associated with various professional services, depreciation and amortization of property, plant and equipment, and a return on net assets. Corporate Services also acts as agent on behalf of IPL and WPL pursuant to the service agreements. As agent, Corporate Services enters into energy, capacity, ancillary services, and transmission sale and purchase transactions within MISO. Corporate Services assigns such sales and purchases among IPL and WPL based on statements received from MISO. The amounts billed for services provided, sales credited and purchases were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPL
|
|
WPL
|
|
2020
|
|
2019
|
|
2018
|
|
2020
|
|
2019
|
|
2018
|
Corporate Services billings
|
$176
|
|
$185
|
|
$170
|
|
$142
|
|
$142
|
|
$132
|
Sales credited
|
35
|
|
68
|
|
48
|
|
3
|
|
7
|
|
28
|
Purchases billed
|
329
|
|
331
|
|
358
|
|
108
|
|
120
|
|
81
|
As of December 31, net intercompany payables to Corporate Services were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
IPL
|
$110
|
|
$112
|
WPL
|
73
|
|
85
|
ATC - Pursuant to various agreements, WPL receives a range of transmission services from ATC. WPL provides operation, maintenance, and construction services to ATC. WPL and ATC also bill each other for use of shared facilities owned by each party. The related amounts billed between the parties were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2018
|
ATC billings to WPL
|
$108
|
|
$109
|
|
$106
|
WPL billings to ATC
|
10
|
|
13
|
|
11
|
As of December 31, 2020 and 2019, WPL owed ATC net amounts of $9 million and $9 million, respectively.
In 2020, WPL received $46 million from ATC related to construction deposits WPL previously provided ATC for transmission network upgrades for West Riverside, which is substantially recorded in “Other” in Alliant Energy’s and WPL’s cash flows from investing activities.
WPL’s Sheboygan Falls Energy Facility Lease - Refer to Note 10 for discussion of WPL’s Sheboygan Falls Energy Facility lease.