Alliant Energy Corporation

02/20/2026 | Press release | Distributed by Public on 02/20/2026 13:59

Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This MDA includes information relating to Alliant Energy, IPL and WPL (collectively, the Utilities), as well as ATC Holdings, AEF and Corporate Services. Where appropriate, information relating to a specific entity has been segregated and labeled as such. The following discussion and analysis should be read in conjunction with the Financial Statements and Notes included in this report. Unless otherwise noted, all "per share" references in MDA refer to earnings per diluted share. In addition, this MDA includes certain financial information for 2025 compared to 2024. Refer to MDA in the combined 2024 Form 10-Kfor details on certain financial information for 2024 compared to 2023.
OVERVIEW
Mission, Purpose and Strategy
Alliant Energy's mission is to deliver the energy solutions and exceptional service that its customers and communities count on - affordably, safely, reliably and responsibly. This mission aligns with Alliant Energy's purpose - to serve customers and build stronger communities - which guides it through the evolving dynamics of the economy and the energy industry. Alliant Energy leads as a corporate citizen, advancing environmental stewardship and supporting the communities in its service territories. Alliant Energy's mission and purpose are supported by a strategy focused on meeting evolving customer expectations, delivering attractive returns for investors, and advancing emerging technologies and generation to enable safe, secure and future-ready energy production. This strategy includes the following key elements:
Providing affordable energy solutions for customers - Alliant Energy's strategy focuses on affordable energy solutions that support retention and growth of existing customers and attract new customers to its service territories.
Key Highlights-
•Alliant Energy's resource plan is the roadmap for building a strong and resilient energy future to meet the growing energy needs across Iowa and Wisconsin. This long-term plan expands generation capacity and includes a balanced mix of natural gas, energy storage, new renewable generation, improvements at existing natural gas-fired EGUs and refurbishments at existing wind farms. It is designed to deliver the reliable, affordable energy customers count on by efficiently increasing the capabilities of existing generation through gas and wind facility upgrades while also building larger scale natural gas facilities to capture economies of scale. Alliant Energy's industry-leading wind and solar energy resources provide zero-fuel cost generation as well as generate renewable tax credits that are provided to its electric customers. By enhancing new and existing energy sources while maximizing traditional energy sources, Alliant Energy is helping support economic growth, maintain reliability and keep customer bills affordable. At the same time, Alliant Energy is modernizing its distribution system to create a smarter, more adaptable infrastructure that increases resiliency and supports evolving energy technologies. By advancing a responsible approach to energy resources, Alliant Energy can deliver what matters most to the customers and communities it serves - affordably, safely and reliably.
•Higher electric capacity revenues from existing generation resources beginning in 2025 are expected to provide cost benefits to WPL's retail electric customers in the future through its fuel cost recovery mechanism.
•Alliant Energy, IPL and WPL have utilized, and expect to continue to utilize, various provisions of the Inflation Reduction Act of 2022 to enhance tax benefits provided to customers that are expected from wind, solar and energy storage projects in Iowa and Wisconsin, including transferring certain future tax credits from such projects to other corporate taxpayers. Refer to Note 1(c)for discussion of $285 million, $216 million and $98 million of proceeds from renewable tax credits transferred to other corporate taxpayers in 2025, 2024 and 2023, respectively.
•Reductions in Iowa corporate income tax rates resulting from tax reform enacted in 2022 are expected to provide cost benefits to IPL's electric and gas customers in the future. IPL's retail electric and gas customers began receiving these benefits with the new base rates effective October 1, 2024.
•IPL provided billing credits to its retail electric customers through the tax benefit rider of $52 million and $16 million in 2025 and 2024, respectively. IPL also provided its retail electric customers $162 million and $40 million in credits on customers' bills related to production tax credits through its fuel-related cost recovery mechanism in 2025 and 2024, respectively.
•IPL maintaining flat base rates for its retail electric and gas customers from 2021 through September 30, 2024, as well as a retail electric base rate moratorium from October 2025 through September 2029 approved by the IUC in IPL's most recent retail electric rate review.
•Completion of a restructuring and voluntary employee separation program in 2024, which is expected to reduce operation and maintenance expenses in the future. Refer to Note 12for discussion of this program.
•IPL and WPL have entered into conditional commitments with the U.S. Department of Energy Office of Energy Dominance Financing, formerly the Loan Programs Office, for loan guarantees of approximately $1.4 billion and $1.6 billion, respectively. If finalized, such loans would provide low interest financing for IPL's and WPL's expected construction of eligible projects as defined in the governing agreement.
•In July 2024, the U.S. Department of Energy Office of Electricity - formerly administered by the Office of Clean Energy Demonstrations awarded WPL's Columbia Energy Storage Project, an approximately 20 MW compressed CO2-based long-duration energy storage system at the Columbia Energy Center site, up to approximately $30 million in grant funding during construction of the project.
•In April 2025, WPL submitted an application to the U.S. Army Corps of Engineers for up to $45 million in loans through the Corps Water Infrastructure Financing Program. If finalized, such loans would provide low interest financing for various proposed safety projects at WPL's Kilbourn and Prairie du Sac hydro EGUs.
•IPL and WPL executed agreements to enable fiber connectivity to one of its data center customers by leasing underground conduit in their service territories, which is expected to provide cost benefits to IPL's and WPL's existing customers.
Making customer-focused investments - Alliant Energy's strategic priorities include making customer-focused investments to provide reliable, resilient, and sustainable energy solutions. Alliant Energy's capital allocation strategy is focused on:
•Growth: Developing energy resources to meet demand for future phases of economic development and transmission investments through ATC.
•Reliability and Resiliency: Investments to extend the flexibility, efficiency, capacity and optionality of existing resources including coal plant conversions and replacements, resiliency investments in natural gas storage, liquified natural gas and gas delivery, as well as reliability and safety investments in electric and gas distribution.
•Customer Value: Improving customer and employee experiences through technology investments that increase operational efficiency, service effectiveness and organizational agility.
Key Highlights(refer to "Customer Investments" for details) -
•Over the next five years, Alliant Energy currently plans to develop and/or acquire new generation investments to add flexibility with evolving load growth, including approximately 1,600 MW of new natural gas resources, approximately 1,000 MW of new energy storage, approximately 1,300 MW of new renewable generation, improvements of approximately 410 MW at existing natural gas-fired EGUs, and refurbishments at approximately 450 MW of existing wind farms. Alliant Energy is currently evaluating the impact of potential additional demand from large load growth customers and MISO's seasonal resource adequacy requirements on its resource plans and will update these generation investment plans as needed in the future.
•Completion of new solar generation at WPL (1,089 MW in Wisconsin from 2022-2024) and IPL (400 MW in Iowa in 2024), and IPL's refurbishment of the existing Franklin County wind farm in Iowa in 2024.
•Completion of construction of energy storage projects totaling 175 MW at WPL and 99MW at IPL in 2025.
•Completion of the Neenah Unit 1 and Sheboygan Falls Unit 1 advanced gas path projects in 2025, which increased the efficiency and capacity at each of these facilities.
•Alliant Energy continues to partner with its commercial and industrial customers in Iowa and Wisconsin to help develop renewable solutions to support their sustainability initiatives.
Growing customer demand - Alliant Energy's strategy supports expanding electric and gas usage in its service territories by promoting electrification initiatives and economic development to grow at the pace of its customers.
Key Highlights-
•IPL has entered into electric service agreements with two new customers, and WPL has entered into an electric service agreement with one new customer, each of whom is constructing or expects to construct one or more data centers in IPL's or WPL's service territories. IPL's and WPL's currently executed electric service agreements include aggregate, peak demands of approximately 3 gigawatts. The energy resources to serve this expected load are included in the construction and acquisition table in "Liquidity and Capital Resources." The actual timing and amount of increases in IPL's and WPL's load are subject to various factors, including interconnections and actual customer demand, and any executed or future agreements with customers are not expected to result in immediate increases in load.
•The IUC's order for IPL's most recent retail electric rate review includes the creation of an individual customer rate tariff, allowing IPL to attract new load growth to its service territory. In addition, Iowa's Major Economic Growth Attraction program and Iowa's and Wisconsin's sales and use tax exemption for qualified data centers, encourage economic development in Alliant Energy's service territory.
•In May 2025 and October 2025, the IUC issued orders, with certain conditions, approving individual customer rates for data centers expected to be constructed in IPL's service territory. In April 2025, WPL filed a request with the PSCW for approval of an individual customer rate for a data center expected to be constructed in its service territory. A decision from the PSCW is currently expected in the second quarter of 2026.
•Various development-ready sites, which have transmission capabilities, are rail-served and in close proximity to a variety of transportation options, are located throughout Alliant Energy's service territories.
RESULTS OF OPERATIONS
Financial Results Overview- The table below includes diluted EPS for Utilities and Corporate Services, ATC Holdings, and Non-utility and Parent, which are non-GAAP financial measures. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of performance and trends, and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Alliant Energy's net income and EPS attributable to Alliant Energy common shareowners were as follows (dollars in millions, except per share amounts):
2025 2024
Income (Loss) EPS Income (Loss) EPS
Utilities and Corporate Services $875 $3.39 $722 $2.81
ATC Holdings 41 0.16 40 0.16
Non-utility and Parent (106) (0.41) (72) (0.28)
Alliant Energy Consolidated $810 $3.14 $690 $2.69
Alliant Energy's Utilities and Corporate Services net income increased by $153 million in 2025 compared to 2024. The increase was primarily due to higher revenue requirements from capital investments, estimated temperature impacts on retail electric and gas sales, an asset valuation charge for IPL's Lansing Generating Station as a result of the IUC order for IPL's retail electric rate review in 2024, restructuring and voluntary separation charges in 2024, and an ARO charge allocated to the steam business at IPL due to the revised CCR Rule in 2024. These items were partially offset by higher other operation and maintenance expenses, depreciation and financing expenses.
Alliant Energy's Non-utility and Parent net income decreased by $34 million in 2025 compared to 2024, primarily due to an asset valuation charge for Alliant Energy's non-utility business in 2025, higher financing expense and a state income tax apportionment charge in 2025, partially offset by an adjustment of deferred tax assets due to Iowa tax reform in 2024.
Net Income Variances- The following items contributed to increased (decreased) net income for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Revenues:
Changes in electric utility (Refer to details below)
$325 $149 $176
Changes in gas utility (Refer to details below)
60 15 45
Changes in other utility (3) (2) (1)
Changes in non-utility (1) - -
Changes in total revenues 381 162 220
Operating expenses:
Changes in electric production fuel and purchased power (Refer to details below)
(114) (14) (100)
Changes in electric transmission service (Refer to details below)
(12) (5) (7)
Changes in cost of gas sold (Refer to details below)
(39) (7) (32)
Asset valuation charge for IPL's Lansing Generating Station in 2024 (Refer to Note 2for details)
60 60 -
Changes in other operation and maintenance (Refer to details below)
(64) (15) (27)
Changes in depreciation and amortization (Higher primarily due to solar generation placed in service in 2024 and updated electric depreciation rates for IPL effective October 1, 2024) (74) (59) (13)
Changes in taxes other than income taxes 1 1 1
Changes in total operating expenses (242) (39) (178)
Changes in operating income 139 123 42
Other income and deductions:
Changes in interest expense (Higher primarily due to financings completed in 2024 and 2025) (63) (34) (8)
Changes in equity income from unconsolidated investments, net (Refer to Note 6for details)
(1) - -
Changes in AFUDC 14 13 1
Changes in Other (4) (5) (4)
Changes in total other income and deductions (54) (26) (11)
Changes in income before income taxes 85 97 31
Changes in income taxes(Refer to Note 11for details)
35 (2) 25
Changes in net income $120 $95 $56
Electric and Gas Revenues and Sales Summary- Electric and gas revenues (in millions), and MWh and Dth sales (in thousands), were as follows:
Electric Gas
Revenues MWhs Sold Revenues Dths Sold
2025 2024 2025 2024 2025 2024 2025 2024
Alliant Energy
Retail $3,305 $3,009 25,122 24,569 $472 $419 49,363 43,489
Sales for resale:
Wholesale 184 200 2,565 2,783 N/A N/A N/A N/A
Bulk power and other 164 86 5,386 5,620 N/A N/A N/A N/A
Transportation/Other 44 77 56 57 53 46 123,141 123,386
$3,697 $3,372 33,129 33,029 $525 $465 172,504 166,875
IPL
Retail $1,801 $1,662 13,882 13,620 $234 $223 23,710 21,640
Sales for resale:
Wholesale 39 61 481 750 N/A N/A N/A N/A
Bulk power and other 28 (6) 1,777 1,138 N/A N/A N/A N/A
Transportation/Other 28 30 31 32 31 27 44,489 43,075
$1,896 $1,747 16,171 15,540 $265 $250 68,199 64,715
WPL
Retail $1,504 $1,347 11,240 10,949 $238 $196 25,653 21,849
Sales for resale:
Wholesale 145 139 2,084 2,033 N/A N/A N/A N/A
Bulk power and other 136 92 3,609 4,482 N/A N/A N/A N/A
Transportation/Other 16 47 25 25 22 19 78,652 80,311
$1,801 $1,625 16,958 17,489 $260 $215 104,305 102,160
Sales Trends and Temperatures-Alliant Energy's retail electric sales volumes increased 2% in 2025 compared to 2024, primarily due to changes in temperatures and higher sales to commercial and industrial customers. Alliant Energy's retail gas sales volumes increased 14% in 2025 compared to 2024, primarily due to changes in temperatures.
Estimated increases (decreases) to operating income from the impacts of temperatures were as follows (in millions):
Electric Gas
2025 2024 Change 2025 2024 Change
IPL $13 ($14) $27 ($4) ($12) $8
WPL 3 (15) 18 (1) (10) 9
Total Alliant Energy $16 ($29) $45 ($5) ($22) $17
Electric Sales for Resale - Bulk Power and Other- Bulk power and other volume changes were due to changes in sales in the wholesale energy markets operated by MISO. These changes are impacted by several factors, including the availability and dispatch of Alliant Energy's EGUs and electricity demand within these wholesale energy markets. Changes in bulk power and other revenues were largely offset by changes in fuel-related costs, and therefore did not have a significant impact on operating income.
Gas Transportation/Other- Gas transportation/other sales volume changes were largely due to changes in the gas volumes supplied to Alliant Energy's natural gas-fired EGUs caused by the availability and dispatch of such EGUs.
Electric Utility Revenue Variances- The following items contributed to increased (decreased) electric utility revenues for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Higher revenue requirements (a)(b) $333 $271 $62
Higher sales for resale bulk power and other revenues (c) 78 34 44
Estimated changes in sales volumes caused by temperatures 45 27 18
Changes in WPL refunds/collections of previous over-/under-collection of retail electric fuel-related costs (offset in electric production fuel and purchased power expenses) (Refer to Note 1(g))
43 - 43
Higher revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (mostly offset by changes in energy efficiency expense) (Refer to Note 1(g))
18 18 -
Changes in WPL electric fuel-related costs, net of recoveries (d) 8 - 8
Higher (lower) revenues primarily due to changes in retail electric fuel-related costs (Refer to Electric Production Fuel and Purchased Power Expenses Variancesbelow)
5 (10) 15
Lower revenues at IPL due to credits on customers' bills related to production tax credits through its fuel-related cost recovery mechanism (offset by changes in income taxes) (a) (122) (122) -
Lower revenues at IPL due to credits on customers' bills through the tax benefit rider (partially offset by changes in income taxes) (a) (36) (36) -
Lower revenues at IPL from discontinuation of renewable energy rider in 2024 (a) (24) (24) -
Lower wholesale revenues at IPL primarily due to lower sales from the expiration of IPL's wholesale power agreement with Southern Minnesota Energy Cooperative in 2025 (22) (22) -
Other (1) 13 (14)
$325 $149 $176
(a)In September 2024, the IUC issued an order authorizing an annual base rate increase of $185 million for IPL's retail electric customers, with customers receiving partially offsetting credits for the first 12 months through a tax benefit rider, for the October 2024 through September 2025 forward-looking Test Period. Rate changes were effective October 1, 2024, which reflect revenue requirement impacts of increasing electric rate base including investments in solar generation, updated depreciation rates, and certain incremental costs incurred resulting from the 2020 derecho windstorm. In addition, effective October 1, 2024, IPL's renewable energy rider was discontinued, and certain production tax credits are credited to IPL's retail electric customers through IPL's fuel-related cost recovery mechanism. Credits on IPL's customers' bills are expected to be offset by a reduction in income tax expense.
(b)In December 2023, the PSCW issued an order authorizing an annual base rate increase of $60 million for WPL's retail electric customers, covering the 2025 forward-looking Test Period, which reflects revenue requirement impacts of increasing electric rate base including investments in solar generation and energy storage.
(c)Sales for resale bulk power and other revenues increased primarily due to higher prices for electricity and capacity sold by IPL and WPL to MISO wholesale energy markets. These changes were largely offset by changes in electric fuel-related costs.
(d)WPL's cost recovery mechanism for retail fuel-related expenses supports deferrals of amounts that fall outside an approved fuel monitoring range of forecasted fuel-related expenses determined by the PSCW each year. The difference between revenue collected and actual fuel-related expenses incurred within the fuel monitoring range increases or decreases Alliant Energy's and WPL's electric utility revenues. WPL estimates the increase (decrease) to electric utility revenues from amounts within the fuel monitoring range were approximately $4 million and $(4) million in 2025 and 2024, respectively.
Gas Utility Revenue Variances- The following items contributed to increased (decreased) gas utility revenues for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Higher revenues due to changes in gas costs (Refer to Cost of Gas Sold Expense Variancesbelow)
$40 $8 $32
Estimated changes in sales volumes caused by temperatures 17 8 9
Higher revenue requirements (a) 6 6 -
Lower revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (mostly offset by changes in energy efficiency expense) (Refer to Note 1(g))
(8) (8) -
Other 5 1 4
$60 $15 $45
(a)In September 2024, the IUC issued an order authorizing an annual base rate increase of $10 million for IPL's retail gas customers, for the October 2024 through September 2025 forward-looking Test Period. Rate changes were effective October 1, 2024, which reflect revenue requirement impacts of increasing gas rate base.
Electric Production Fuel and Purchased Power Expenses Variances- The following items contributed to (increased) decreased electric production fuel and purchased power expenses for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Higher electric production fuel costs (a) ($63) ($41) ($22)
Changes in WPL refunds/collections of previous over-/under-collection of retail electric fuel-related costs (offset in electric utility revenue) (Refer to Note 1(g))
(43) - (43)
Changes in regulatory recovery of retail electric fuel-related costs (Refer to Note 1(g))
(6) 7 (13)
(Higher) lower purchased power expense (b) (5) 20 (25)
Other 3 - 3
($114) ($14) ($100)
(a)Electric production fuel costs increased primarily due to higher coal volumes due to higher dispatch of coal-fired EGUs and higher natural gas prices, partially offset by lower natural gas volumes due to lower dispatch of natural gas-fired EGUs.
(b)Purchased power expense increased primarily due to higher prices for electricity purchased by WPL, partially offset by lower volumes of electricity purchased at IPL.
Electric Transmission Service Expense Variances- The following items contributed to (increased) decreased electric transmission service expense for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Changes in regulatory recovery for the difference between actual electric transmission service costs and those costs used to determine rates (Refer to Note 1(g))
$15 $4 $11
Other (primarily due to changes in transmission service costs provided by third parties) (27) (9) (18)
($12) ($5) ($7)
Cost of Gas Sold Expense Variances- The following items contributed to (increased) decreased cost of gas sold expense for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Changes in retail gas volumes and natural gas prices ($43) ($12) ($31)
Changes in the regulatory recovery of gas costs (Refer to Note 1(g))
4 5 (1)
($39) ($7) ($32)
Other Operation and Maintenance Expenses Variances - The following items contributed to (increased) decreased other operation and maintenance expenses for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Higher generation and energy delivery expenses ($26) ($8) ($18)
Higher incentive compensation expense (20) (11) (9)
Asset valuation charge for Alliant Energy's non-utility business in 2025 (Refer to Note 17)
(16) - -
Development costs for new generation (14) (6) (8)
Higher energy efficiency expense at IPL (mostly offset by higher revenues) (11) (11) -
Restructuring and voluntary employee separation charges in 2024 (excluding payroll taxes) (Refer to Note 12(a))
27 13 12
ARO charge for steam assets at IPL in 2024 (Refer to Note 13)
20 20 -
Other (24) (12) (4)
($64) ($15) ($27)
Other Future Considerations- In addition to items discussed in this report, the following key items could impact Alliant Energy's, IPL's and WPL's future financial condition or results of operations:
•Financing Plans - Alliant Energy currently expects to issue up to $2.4 billion of common stock in aggregate from 2026 through 2029 through the distribution agreement that was executed in May 2025, its Shareholder Direct Plan (up to $25 million in common stock annually) and additional future equity offerings. Refer to Note 7for discussion of common stock issuances by Alliant Energy in 2025 and Alliant Energy's at-the-market offering program. In 2026, IPL and WPL currently expect to issue up to $500 million and $300 million, respectively, of long-term debt, and AEF and/or Alliant Energy at the parent company level expect to issue up to $400 million of long-term debt in aggregate. AEF and Alliant Energy at the parent company level have $500 million ($300 million term loan was retired in January 2026) and $575 million, respectively, of long-term debt maturing in 2026.
•Common Stock Dividends - Alliant Energy announced a 5% increase in its targeted 2026 annual common stock dividend to $2.14 per share, which is equivalent to a quarterly rate of $0.535 per share, beginning with the February 2026 dividend payment. The timing and amount of future dividends is subject to approval of quarterly dividend declarations from Alliant Energy's Board of Directors, and is dependent upon earnings expectations, capital requirements, and general financial business conditions, among other factors.
•Higher Earnings on Increasing Rate Base - Alliant Energy and WPL currently expect increases in electric utility and gas utility revenues in 2026 compared to 2025 due to impacts from increasing revenue requirements related to investments in the utility business (refer to "Rate Matters" for further discussion). Additionally, Alliant Energy and IPL currently expect electric utility revenues to increase in 2026 compared to 2025 due to the expiration of tax benefit rider credits in 2025. Furthermore, Alliant Energy, IPL and WPL currently expect a decrease in the effective income tax rate in 2026 compared to 2025 due to additional renewable tax credits from renewable generation and energy storage projects placed in service in 2025 and/or expected to be placed in service in 2026. A majority of the differences between actual renewable tax credits and renewable tax credits used to determine rates are recorded in regulatory assets or regulatory liabilities on the balance sheets until they are reflected in future billings to customers. Investment tax credits resulting from IPL energy storage projects placed in service in 2025 and/or expected to be placed in service in 2026 may be utilized to offset any revenue deficiency on an annual basis up to the earnings sharing mechanism threshold included in IPL's retail electric rate review settlement agreement.
•Sales Trends - Alliant Energy, IPL and WPL currently expect an increase in retail electric sales in 2026 compared to 2025 driven by expected load growth from new customers who currently expect to build data centers in IPL's and WPL's service territories. Refer to "Growing Customer Demand" for further discussion.
•Other Operation and Maintenance Expenses- Alliant Energy, IPL and WPL currently expect an increase in other operation and maintenance expenses in 2026 compared to 2025 largely due to higher generation maintenance and energy delivery expenses.
•Depreciation and Amortization Expense -Alliant Energy, IPL and WPL currently expect an increase in depreciation and amortization expense in 2026 compared to 2025 due to capital projects placed in service in 2025 and 2026.
•Interest Expense - Alliant Energy, IPL and WPL currently expect an increase in interest expense in 2026 compared to 2025 due to financings completed in 2025 and planned in 2026 as discussed above.
•Allowance for Funds Used During Construction- Alliant Energy, IPL and WPL currently expect an increase in AFUDC in 2026 compared to 2025 largely due to changes in CWIP balances related to construction activity on capital projects.
CUSTOMER INVESTMENTS
Alliant Energy's, IPL's and WPL's strategic priorities include making significant customer-focused investments toward reliable, resilient and sustainable customer energy solutions. These priorities include:
Resource Planning
Alliant Energy's current resource plan guides the addition of resources in Iowa and Wisconsin to meet customer demand for energy solutions that are affordable, safe, reliable, and responsibly delivered. Over the next five years, Alliant Energy currently plans to develop and/or acquire new generation investments to add flexibility with evolving load growth, including approximately 1,600 MW of new natural gas resources, approximately 1,000 MW of new energy storage, approximately 1,300 MW of new renewable generation, improvements of approximately 410 MW at existing natural gas-fired EGUs, and refurbishments at approximately 450 MW of existing wind farms. Alliant Energy is currently evaluating the impact of potential additional demand from large load growth customers and MISO's seasonal resource adequacy requirements on its resource plans and will update these generation investment plans as needed in the future. Estimated capital expenditures for these planned projects for 2026 through 2029 are included in the "Generation" section in the construction and acquisition table in "Liquidity and Capital Resources." Information on IPL's and WPL's regulatory filings and/or approvals for future generation and energy storage projects, as well as recently completed projects, are as follows:
WPL's Generation and Energy Storage Projects -
New Solar- In 2022 through 2024, WPL completed 1,089 MW of new solar generation projects in Wisconsin. Refer to Note 3for discussion of the construction costs associated with these projects.
New Energy Storage- In 2023, the PSCW issued orders authorizing WPL to construct, own and operate energy storage at the Grant County (100 MW) and Wood County (75 MW) solar projects in Wisconsin, which were placed in service in July and October 2025, respectively, and at the Edgewater Generation Station in Wisconsin (approximately 99 MW), which is currently expected to be placed in service in 2026.
In July 2024, the U.S. Department of Energy Office of Electricity - formerly administered by the Office of Clean Energy Demonstrations - awarded WPL's Columbia Energy Storage Project, an approximately 20 MW compressed CO2-based long-duration energy storage system at the Columbia Energy Center site, up to approximately $30 million in grant funding during construction of the project. In June 2025, WPL received an order from the PSCW authorizing the construction of the energy storage system. Any grant proceeds are expected to reduce the cost of the project for WPL's customers.
In February 2025, WPL filed a CA application with the PSCW for approval to construct a 2 billion cubic feet, or 25 million gallon, liquified natural gas facility in Rock County, Wisconsin. A decision from the PSCW is currently expected in the second quarter of 2026.
New Wind- In April 2025, WPL filed a CA application with the PSCW for approval to construct, own and operate the Bent Tree North EGU, an approximately 153 MW wind farm. A decision from the PSCW is currently expected in the second quarter of 2026. In January 2026, WPL filed a CA application with the PSCW for approval to acquire, construct, own and place into service an approximately 277 MW wind farm in Columbia County, Wisconsin. The CA application also included a request for approval of an agreement between WPL and an affiliated subsidiary of AEF, under which WPL would acquire wind development assets from the affiliate. A decision from the PSCW is currently expected in the first quarter of 2027.
New Natural Gas-fired Electric Generation- In April 2025, the PSCW issued an order authorizing WPL to construct, own and operate a 17.5 MW natural gas-fired EGU using Reciprocating Internal Combustion Engine (RICE) technology, at the site of its Riverside Energy Center.
Existing Natural Gas-Fired Electric Generating Unit Improvements- In April 2024, the PSCW issued orders authorizing WPL to construct improvements at the existing natural gas-fired Neenah Energy Facility and Sheboygan Falls Energy Facility. In 2025, the Neenah Unit 1 and Sheboygan Falls Unit 1 advanced gas path projects were completed, which increased the efficiency and capacity at each of these EGUs. The Neenah Unit 2 and Sheboygan Falls Unit 2 advanced gas path projects are expected to be completed in the second quarter of 2026.
Existing Wind Farm Refurbishment- In May 2025, the PSCW issued an order authorizing WPL to refurbish the Bent Tree wind farm. In December 2025, the PSCW issued an order authorizing WPL to refurbish the Forward Wind Energy Center.
IPL's Generation and Energy Storage Projects -
New Solar- In 2024, IPL completed 400 MW of new solar generation projects in Iowa.
New Energy Storage- In 2024, IPL received approval from the IUC to construct, own and operate up to 99 MW of energy storage, which was placed in service in November 2025 at the site of its Wever solar facility. In July 2025, the IUC issued an order authorizing IPL to construct, own and operate up to 150 MW of energy storage at the site of its retired Lansing Generating Station. In August 2025, the IUC issued an order authorizing IPL to construct, own and operate up to 75 MW of energy storage at the site of its Golden Plains wind farm. In September 2025, the IUC issued an order authorizing IPL to construct, own and operate up to 75 MW of energy storage at the site of its Whispering Willow - North wind farm.
New Natural Gas-fired Electric Generation- In June 2025, IPL received approval from the IUC to construct, own and operate the Cedar River Generating Station, a 94 MW natural gas-fired EGU using RICE technology, at the site of IPL's Prairie Creek Generation Station. In December 2025, IPL received an order from the IUC for approval to construct, own and operate an approximately 720 MW simple-cycle natural gas-fired EGU at the site of its Marshalltown Generating Station, known as the Bobcat Energy Center. In January 2026, IPL received approval from the IUC to construct, own and operate a 94 MW natural gas-fired EGU using RICE technology at the site of its Burlington Generating Station.
New Wind- In July 2025, IPL filed for advance rate-making principles with the IUC for up to 1,000 MW of new wind generation in Iowa. The advance rate-making principles filing included requests for a fixed cost cap of $3,020/kilowatt, including AFUDC and transmission upgrade costs among other costs, and a return on common equity of 11.25%. In December 2025, IPL reached a non-unanimous settlement agreement with the Iowa Office of Consumer Advocate and others, subject to IUC approval, for up to 1,000 MW nameplate capacity of wind generation with a cost cap of $3,020/kW including AFUDC and transmission costs. IPL's return on common equity will be the same as other assets without advance rate-making principles for purposes of setting future rates and IPL's blended return on common equity, which will be updated each year, will be used for IPL's retail electric earnings sharing mechanism calculation. A decision from the IUC is currently expected in the first half of 2026.
Existing Wind Farm Refurbishment- In 2024, IPL completed the refurbishment of the existing Franklin County wind farm in Iowa. IPL currently expects the refurbishment of the existing Whispering Willow - East wind farm to be completed in 2026. These projects are eligible for production tax credits under the Inflation Reduction Act of 2022.
WPL's West Riverside Natural Gas-fired Generating Station - In 2020, WPL completed the construction of West Riverside, a 723 MW natural gas-fired combined-cycle EGU in Beloit, Wisconsin. WPL entered into agreements with neighboring utilities and electric cooperatives that provide each of them options to purchase a partial ownership interest in West Riverside. The purchase price for such options is based on the ownership interest acquired and the net book value of West Riverside on the date of the purchase. The timing and ownership amount of the options are as follows:
Counterparty Option Amount and Timing
WEC Energy Group, Inc. (WEC) In 2023 and 2024, WEC acquired 200 MW in aggregate, pursuant to PSCW and FERC approval (a)
Madison Gas and Electric Company (MGE) In 2023 and 2024, MGE acquired 50 MW in aggregate, pursuant to PSCW and FERC approval
Electric cooperatives Approximately 60 MW were acquired in 2018
(a)WPL may exercise reciprocal options, subject to approval by the PSCW, to purchase up to 200 MW of any natural-gas combined-cycle EGU that WEC places in service prior to May 2030.
Plant Retirements and Fuel Switching - The current strategy includes the retirement, or fuel switch from coal to natural gas, of various EGUs. Subsequent to December 31, 2025, IPL retired Prairie Creek Unit 1 and fuel switched Prairie Creek Unit 3 (65 MW in aggregate) to natural gas. WPL currently plans to continue coal operations at Edgewater Unit 5 (414 MW) and Columbia Units 1 and 2 (595 MW in aggregate) at least through 2029, as well as evaluate the potential conversion of these EGUs to natural gas. Alliant Energy, IPL and WPL are working with MISO, state regulatory commissions and other regulatory agencies, as required, to determine the timing of these actions, which are subject to change depending on operational, regulatory, market and other factors. Refer to Note 3for additional details on Columbia Units 1 and 2.
Environmental Stewardship - Alliant Energy's environmental stewardship is focused on the implementation of a responsible energy strategy. Alliant Energy's strategy and business plans consider the transition to a low-carbon economy as one of several factors driving transformation of the energy industry. Alliant Energy's journey toward carbon reductions includes long-term voluntary goals to eliminate all coal-fired EGUs from its generating fleet by 2040 and aspiring to achieve net-zero GHG emissions from its utility operations by 2050.
Alliant Energy's voluntary Environmental Stewardship goals previously included interim 2030 environmental-related goals for GHG emissions, utility water supply, and electrifying owned light-duty fleet vehicles. In the first quarter of 2026, Alliant Energy decided to remove the interim 2030 voluntary environmental-related goals while remaining focused on its long-term voluntary goals. This decision was made due to a combination of factors, including the need to serve its customers with affordable, safe, and reliable energy, resource adequacy requirements, and increasing customer energy needs.
Alliant Energy's voluntary environmental stewardship goals may be revised, or their achievement may be delayed, based on increasing customer energy needs, reliability and resource adequacy requirements, and tax policy changes. The ability to achieve these goals will depend on future economic developments, evolving energy technologies and emerging trends in Alliant Energy's service territories. These goals are not meant to be considered guidance.
Other Customer-focused Investments
Electric and Gas Distribution Systems - Customer-focused investments include replacing, modernizing and upgrading infrastructure in the electric and gas distribution systems. Electric system investments will focus on areas such as improving reliability and resiliency with more underground electric distribution and upgrades including automation and enabling distributed energy resources. Gas system investments will focus on pipeline replacement to modernize Alliant Energy's gas distribution systems and pipeline expansion to support reliability and economic development. Estimated capital expenditures for expected and current electric and gas distribution infrastructure projects for 2026 through 2029 are included in the "Electric and gas distribution systems" lines in the construction and acquisition expenditures table in "Liquidity and Capital Resources."
Fiber Optic Telecommunication Network - Alliant Energy installed fiber optic routes between its facilities to enhance its communications network to improve resiliency and reliability of, and enable and strengthen, the integrated grid network focused on less densely populated rural areas.
Gas Pipeline Expansion - IPL and WPL currently expect to make investments to extend various gas distribution systems to provide natural gas to unserved or underserved areas in their service territories. Additionally, IPL expects to make investments in gas pipelines to serve new natural gas generating facilities.
Gas Pipeline Safety -The Pipeline and Hazardous Materials Safety Administration published various final rules from 2019 through 2024 that updated safety requirements for gas transmission pipelines, and updated procedures were implemented to address these rules. Plans to address certain requirements for specific pipelines were developed and implemented. The majority of identified remediation efforts have been completed with remaining items to be completed by July 2035. In response to these rule changes, Alliant Energy, IPL and WPL have been assessing, testing and modifying certain of IPL's and WPL's pipelines, and updating practices for assessment and operation of all IPL and WPL pipelines. Alliant Energy, IPL, and WPL also continue to evaluate the impact of these final rules and resulting remediation plans on their financial condition and results of operations.
Technology - Alliant Energy, IPL and WPL currently plan to make investments in technology to enhance productivity and efficiency through automation and customer self-service. Estimated capital expenditures for expected and current technology projects for 2026 through 2029 are included in the "Other" line in the construction and acquisition expenditures table in "Liquidity and Capital Resources."
RATE MATTERS
Rate Reviews
Retail Base Rate Filings - Base rate changes reflect both returns on additions to infrastructure and recovery of changes in costs incurred or expected to be incurred to provide electric and gas service to retail customers. Given that a portion of the rate changes will offset changes in costs, revenues from rate changes should not be expected to result in an equal change in net income for either IPL or WPL.
IPL's Retail Electric and Gas Rate Reviews (October 2024 Through September 2025 Forward-looking Test Period)- In September 2024, the IUC issued an order for IPL's retail electric and gas rate reviews for the October 2024 through September 2025 forward-looking Test Period with rate changes effective October 1, 2024. Key drivers for the rate review included revenue requirement impacts of increasing electric and gas rate base, including investments in solar generation, as well as updated depreciation rates and certain incremental costs incurred resulting from the 2020 derecho windstorm. The IUC's order included the following provisions:
•Annual retail electric base rate increase of $185 million, with customers receiving partially offsetting credits for the first 12 months through a tax benefit rider totaling $52 million and $16 million in 2025 and 2024, respectively, and a subsequent retail electric base rate moratorium through September 2029;
•During the moratorium, IPL may request updated rates if its actual return on common equity is 100 or more basis points below the authorized return on common equity for a single calendar year or 50 or more basis points below the authorized return on common equity for two consecutive years, and/or if a material change in laws or regulations causes the moratorium to become unsustainable;
•Annual retail gas base rate increase of $10 million;
•Electric earnings sharing mechanism beginning in calendar year 2025, where IPL would apply excess earnings to the remaining net book value of IPL's highest earning asset with advance ratemaking principles (currently the Emery Generation Station) based on its authorized return on common equity as follows;
Threshold Above Authorized
Return on Common Equity Sharing
First 50 basis points 75% customers, 25% IPL
>50 to 100 basis points 50% customers, 50% IPL
>100 to 150 basis points 25% customers, 75% IPL
>150 basis points 100% customers
•Investment tax credits resulting from renewable generation and energy storage projects may be utilized to offset any revenue deficiency on an annual basis up to IPL's return on common equity threshold; any remaining investment tax credits, net of the cost of transferability, that are not used to offset any revenue deficiency, will be deferred by IPL and carried forward to offset any revenue deficiency in future years;
•Creation of an individual customer rate tariff, which would allow IPL to attract new load growth to its service territory;
•Electric distribution system investment cap not to exceed $900 million in aggregate or $325 million in any given year from 2026 through 2029, with certain exceptions;
•IPL to retain renewable production tax credits from new generation resources not included in base rates and the repowering of existing wind farms, including the Franklin County wind farm refurbishment, as well as retain energy margins for new generation resources and energy storage;
•Discontinuation of the renewable energy rider; and
•A return of the remaining net book value of the Lansing Generating Station; however, the IUC's order does not include a return on the remaining net book value of Lansing, resulting in Alliant Energy and IPL recording a pre-tax non-cash charge of $60 million to "Asset valuation charge for IPL's Lansing Generating Station" in their income statements in 2024.
IPL filed a subsequent proceeding with the IUC in December 2025 for its October 2024 through September 2025 forward-looking Test Period retail electric and gas rate reviews, which compared actual revenues and costs to those initially forecasted by IPL. IPL currently does not expect any rate adjustments from this subsequent proceeding.
WPL's Retail Electric and Gas Rate Reviews (2026/2027 Forward-looking Test Period)- In December 2025, the PSCW issued an order authorizing annual base rate increases of $69 million and $7 million for WPL's retail electric and gas customers, respectively, effective January 1, 2026, for the 2026 forward-looking Test Period. The PSCW's order also authorized WPL to implement an additional $75 million and $5 million increase in annual rates for its retail electric and gas customers, respectively, effective January 1, 2027, for the 2027 forward-looking Test Period. The key drivers for the annual base rate increases include revenue requirement impacts of increasing electric and gas rate base, including wind refurbishment projects, energy storage, existing natural gas-fired EGU improvements, solar generation costs incurred that exceed the construction cost estimates previously approved by the PSCW (refer to Note 3for further discussion), and electric and gas distribution investments. The order extends, with certain modifications, an earnings sharing mechanism through 2027. Under the earnings sharing mechanism, WPL will defer a portion of its earnings if its annual regulatory return on common equity exceeds 10.05% during the 2026/2027 Test Period. WPL must defer 50% of its excess earnings between 10.05% and 10.55%, and 100% of any excess earnings above 10.55%. The PSCW also authorized an AFUDC applied to 100% of CWIP balances related to construction activity on capital projects requiring PSCW approval and are impacted by federal law changes.
Rate Review Details- Details related to IPL's and WPL's key jurisdictions were as follows:
Average Authorized Return Common Equity
Regulatory Rate Base on Common Component of Regulatory Effective
Body (in millions) Equity (a) Capital Structure Date
IPL Retail Electric (October 2024-September 2025 Test Period) (b)
Marshalltown IUC $484 11.00% 51.0% 10/1/2024
Emery IUC 90 12.23% 51.0% 10/1/2024
Whispering Willow - East IUC 124 11.70% 51.0% 10/1/2024
Wind IUC 1,218 11.00% 51.0% 10/1/2024
Solar IUC 511 10.25% 51.0% 10/1/2024
Other (c) IUC 4,852 9.34% 51.0% 10/1/2024
IPL Retail Gas (October 2024-September 2025 Test Period) (b) IUC 630 9.65% 51.0% 10/1/2024
IPL Wholesale Electric FERC 177 10.97% 50.0%
1/1/2025
WPL Retail Electric and Gas
Electric (2026 Test Period) (d) PSCW 6,234 9.80% 54.5% 1/1/2026
Gas (2026 Test Period) (d) PSCW 558 9.80% 54.5% 1/1/2026
WPL Wholesale Electric FERC 550 10.90% 55.0%
1/1/2025
(a)Authorized returns on common equity may not be indicative of actual returns earned or projections of future returns.
(b)Average rate base amounts reflect IPL's allocated retail share of rate base and do not include CWIP and were calculated using a forecasted 13-month average for the test period.
(c)Average rate base amounts include assets that do not have advance rate-making principles (9.65% return on common equity), production tax credits carryforwards for 1,000 MW of wind generating facilities placed in service in 2019 and 2020 (5% return on common equity), as well as the portion of Whispering Willow - East that does not earn a return on investment.
(d)Average rate base amounts reflect WPL's allocated retail share of rate base and do not include CWIP or a cash working capital allowance, and were calculated using a forecasted 13-month average for the test period. The PSCW provides a return on selected CWIP and a cash working capital allowance by adjusting the percentage return on rate base.
LEGISLATIVE MATTERS
Tax Legislation
In August 2022, the Inflation Reduction Act of 2022 was enacted. The most significant provisions of the legislation for Alliant Energy, IPL and WPL relate to a 10-year extension of tax credits for clean energy projects, a new production tax credit for eligible solar projects, a standalone investment tax credit for energy storage projects, and the right to transfer renewable tax credits generated after 2022 to other corporate taxpayers. The legislation also established a requirement for corporations with income over $1 billion to pay a 15% minimum tax; however, Alliant Energy is currently below this income level. Alliant Energy, IPL and WPL are utilizing various provisions of the Inflation Reduction Act of 2022 to enhance the tax benefits expected from their current and planned renewable generation and energy storage projects, including transferring tax credits from such projects to other corporate taxpayers. Refer to Note 1(c)for discussion of the transfer of renewable tax credits to other corporate taxpayers.
In July 2025, the One Big Beautiful Bill Act was enacted, which modified various clean energy tax credits under the Inflation Reduction Act of 2022, including production tax credits and investment tax credits. The most significant provisions of the new legislation for Alliant Energy, IPL, and WPL relate to the accelerated phase out of clean energy tax credits for eligible wind and solar projects for which construction begins more than 12 months after the enactment date or for projects placed in service after 2027, and restricted access to clean energy tax credits for projects that begin construction after 2025 and receive impermissible amounts of construction support from entities with ties to certain foreign countries, including China. Additionally, in July 2025, the Presidential Administration directed the U.S. Department of the Treasury to strictly enforce the termination of clean energy tax credits, including issuing new and revised guidance in August 2025, to ensure that requirements concerning the beginning of construction are not circumvented.
Refer to "Customer Investments" for discussion of Alliant Energy's, IPL's and WPL's current plans to develop and/or acquire new renewable generation and energy storage projects. Alliant Energy, IPL and WPL currently expect these planned renewable generation and energy storage projects would continue to be eligible for clean energy tax credits. If these renewable generation and energy storage projects do not begin construction within the anticipated timeframes or fail to meet other eligibility requirements, the amount of clean energy tax credits could be significantly reduced, which could adversely impact Alliant Energy's, IPL's and WPL's financial condition and results of operations.
Refer to Note 11for discussion of Iowa tax reform enacted in 2022.
Economic Development
In May 2024, the Major Economic Growth Attraction program was enacted in Iowa, which offers various tax incentives for up to two qualified businesses for certain large-scale projects with capital investments greater than $1 billion constructed on certified sites greater than 250 acres in Iowa. The most significant provision of this program for Alliant Energy encourages economic development in IPL's service territory. Alliant Energy has various development-ready sites throughout Iowa, including the Prairie View Industrial Center Super Park in Ames, Iowa and the River City Industrial Center in Mason City, Iowa.
In July 2023, legislation was enacted in Wisconsin, which creates a sales and use tax exemption for the sale of certain property for qualified data centers. The most significant provision of this legislation for Alliant Energy encourages economic development in WPL's service territory.
Advance Rate-making Principles
In May 2024, legislation was enacted in Iowa related to the advance rate-making principles for certain generation and energy storage investments located in Iowa. The most significant provisions of this legislation for Alliant Energy would allow IPL to include energy storage and nuclear-fired generation projects in the advance rate-making principles request process prior to making these investments in Iowa, and require IPL to obtain a GCU Certificate from the IUC in order to construct energy storage projects.
LIQUIDITY AND CAPITAL RESOURCES
Overview-Alliant Energy, IPL and WPL expect to maintain adequate liquidity to operate their businesses and implement their strategy as a result of operating cash flows generated by their utility business, and available capacity under a single revolving credit facility and IPL's sales of accounts receivable program, supplemented by periodic issuances of long-term debt and Alliant Energy equity securities. As summarized below, Alliant Energy, IPL and WPL believe they have the ability to generate and obtain adequate amounts of cash to meet their requirements and plans for cash in the next 12 months and beyond.
Liquidity Position- At December 31, 2025, Alliant Energy had $556 million of cash and cash equivalents, $1,212 million ($550 million at the parent company, $262 million at IPL and $400 million at WPL) of available capacity under the single revolving credit facility and no available capacity at IPL under its sales of accounts receivable program.
Capital Structure- Alliant Energy, IPL and WPL plan to maintain debt-to-total capitalization ratios that are consistent with investment-grade credit ratings, as well as maintain capital structures consistent with the authorized levels approved by IPL's and WPL's regulators. The following table shows financial capital structures as of December 31, 2025, as well as an adjusted capitalization structure that Alliant Energy believes is consistent with how a majority of the rating agencies currently view its junior subordinated notes:
Alliant Energy IPL WPL
(in millions) Actual Adjusted (a) Actual Actual
Common equity $7,334 $7,697 $4,844 $4,375
Long-term debt (including current maturities) 12,028 11,665 4,680 3,669
Short-term debt 88 88 88 -
Total capitalization $19,450 $19,450 $9,612 $8,044
Total debt $12,116 $11,753 $4,768 $3,669
Ratio of debt to total capitalization 62 % 60 % 50 % 46 %
(a)The long-term debt component of Alliant Energy's financial capital structure includes junior subordinated notes classified as "Long-term debt, net" on Alliant Energy's balance sheet (refer to Note 8(b)for additional information). The adjusted presentation at December 31, 2025 attributes 50% of the junior subordinated notes to common equity and 50% to long-term debt, to align with the debt-to-capital ratio used by the majority of rating agencies. The non-GAAP adjusted presentation reflecting this treatment is useful and relevant to investors in understanding how management and the rating agencies evaluate Alliant Energy's capital structure.
Alliant Energy, IPL and WPL intend to manage their capital structures and liquidity positions in such a way that facilitates their ability to raise funds reliably and at reasonable terms and conditions, while maintaining capital structures consistent with those approved by regulators. In addition to capital structures, other important factors used to determine the characteristics of future financings include financial coverage ratios, capital spending plans, regulatory orders and rate-making considerations, levels of debt and equity imputed by rating agencies, market conditions, the impact of tax initiatives and legislation, and any potential proceeds from asset sales. The PSCW factors certain imputed debt adjustments, including certain lease obligations, in establishing a regulatory capital structure as part of WPL's retail rate reviews. The IUC does not make any explicit adjustments for imputed debt in establishing capital ratios used in determining customer rates, although such adjustments are considered by IPL in recommending an appropriate capital structure. Debt imputations by rating agencies include, among others, AROs, pension and OPEB obligations, the sales of accounts receivable program and certain lease obligations.
Credit and Capital Markets- Alliant Energy, IPL and WPL maintain a single revolving credit facility to provide backstop liquidity to their commercial paper programs, and ensure a committed source of liquidity in the event the commercial paper market becomes disrupted. In addition, IPL maintains a sales of accounts receivable program as an alternative financing source; however, if customer arrears were to exceed certain levels, IPL's access to the program may be restricted.
Primary Sources and Uses of Cash-Alliant Energy's most significant source of cash is from electric and gas sales to IPL's and WPL's customers. Cash from these sales reimburses IPL and WPL for prudently-incurred expenses to provide service to their utility customers and generally provides IPL and WPL a return of and a return on the assets used to provide such services. Capital needed to retire debt and fund capital expenditures related to large strategic projects is expected to be met primarily through external financings.
Cash Flows-Selected information from the cash flows statements was as follows (in millions):
Alliant Energy IPL WPL
2025 2024 2025 2024 2025 2024
Cash, cash equivalents and restricted cash, January 1 $81 $63 $29 $53 $51 $7
Cash flows from (used for):
Operating activities 1,169 1,167 286 357 836 761
Investing activities (1,896) (1,547) (859) (684) (827) (724)
Financing activities 1,202 398 551 303 (23) 7
Net increase (decrease) 475 18 (22) (24) (14) 44
Cash, cash equivalents and restricted cash, December 31 $556 $81 $7 $29 $37 $51
Operating Activities - The following items contributed to increased (decreased) operating activity cash flows for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Higher collections from IPL's and WPL's retail electric and IPL's gas base rate increases $339 $277 $62
Changes in income taxes paid/received (a) 69 (36) 95
Increased collections from IPL's and WPL's retail customers caused by temperature impacts on electric and gas sales 62 35 27
Timing of WPL's fuel-related cost recoveries from retail electric customers 56 - 56
Lower revenues at IPL due to credits on customers' bills related to production tax credits through its fuel-related cost recovery mechanism (122) (122) -
Changes in interest payments (66) (43) (13)
Changes in the sales of accounts receivable at IPL (51) (51) -
Lower revenues at IPL due to credits on customers' bills through the tax benefit rider (36) (36) -
Changes in levels of materials and supplies (31) (8) (23)
Restructuring and voluntary employee separation payments in 2025 (25) (11) (12)
Lower revenues at IPL due to discontinuation of renewable energy rider in 2024 (24) (24) -
Lower wholesale revenues at IPL primarily due to lower sales from the expiration of IPL's wholesale power agreement with Southern Minnesota Energy Cooperative in 2025 (22) (22) -
Other (primarily due to other changes in working capital) (147) (30) (117)
$2 ($71) $75
(a)Refer to the cash flows statements for details of renewable tax credits transferred to other corporate taxpayers in 2024 and 2025.
Income Tax Payments and Receipts- Income tax (payments) receipts were as follows (in millions):
2025 2024
IPL $139 $175
WPL 109 14
Other subsidiaries 18 8
Alliant Energy $266 $197
Alliant Energy, IPL and WPL currently do not expect to make any significant federal income tax payments over the next few years based on their current credit carryforward positions; however, some tax payments and receipts may occur for state taxes and between consolidated group members (including IPL and WPL) under the tax sharing agreement between Alliant Energy and its subsidiaries. Refer to Note 11for discussion of the carryforward positions.
As discussed in "Legislative Matters," the Inflation Reduction Act of 2022 provides the right to transfer renewable tax credits to other corporate taxpayers. Refer to the cash flows statements and Note 1(c)for details of renewable tax credits transferred to other corporate taxpayers. Alliant Energy, IPL and WPL currently intend to transfer all eligible renewable tax credits in the future.
Pension Plan Contributions- Alliant Energy, IPL and WPL currently expect to make $23 million, $3 million and $13 million of pension plan contributions in 2026, respectively, based on the funded status and assumed return on assets for each plan as of the December 31, 2025 measurement date. Refer to Note 12(a)for discussion of pension plan contributions in 2025 and the current funded levels of pension plans.
Investing Activities - The following items contributed to increased (decreased) investing activity cash flows for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
(Higher) lower utility construction and acquisition expenditures (a) ($225) ($249) $24
Proceeds from sales of partial ownership interests in West Riverside in 2024 (123) - (123)
Changes in the amount of cash receipts on sold receivables 35 35 -
Other (36) 39 (4)
($349) ($175) ($103)
(a)Largely due to higher expenditures for IPL's energy storage and gas generation and IPL's and WPL's refurbishment of existing wind farms, partially offset by lower expenditures for IPL's and WPL's solar generation and WPL's energy storage.
Construction and Acquisition Expenditures- Construction and acquisition expenditures and financing plans are reviewed, approved and updated as part of the strategic planning process. Changes may result from a number of reasons, including changes in expected load growth, regulatory requirements, changing legislation, not obtaining favorable and acceptable regulatory approval on certain projects, changing costs of projects due to market conditions and the impact of tariffs, improvements in technology, and improvements to ensure resiliency and reliability of the electric and gas distribution systems. Refer to "Rate Matters" for discussion of an electric distribution system investment cap included in IPL's rate review settlement agreement, which was approved by the IUC in September 2024. Alliant Energy, IPL and WPL have not yet entered into contractual commitments relating to the majority of their anticipated future construction and acquisition expenditures. As a result, they have some discretion with regard to the level and timing of these expenditures. Construction and acquisition expenditures for 2026 through 2029 are currently anticipated as follows (in millions), which are focused on adding renewable generation and energy storage projects and dispatchable gas generation projects to meet growing customer demand for electricity, including expected future data center growth from currently executed electric service agreements, and strengthening the resiliency and reliability of the electric and gas distribution systems. Alliant Energy, IPL and WPL are currently evaluating the impacts of tariffs, recently enacted legislation and additional potential demand from large load growth customers on their resource plans, and will update their anticipated construction and acquisition expenditures as needed in the future. Cost estimates represent Alliant Energy's, IPL's and WPL's portion of construction expenditures and exclude AFUDC and capitalized interest, if applicable. Refer to "Customer Investments" for further discussion of certain key utility business projects impacting construction and acquisition plans, and the related regulatory filings.
Alliant Energy IPL WPL
2026 2027 2028 2029 2026 2027 2028 2029 2026 2027 2028 2029
Generation:
Renewables and energy storage projects $1,055 $1,035 $1,465 $1,495 $625 $830 $625 $1,400 $360 $325 $840 $95
Gas projects 970 1,515 1,135 460 660 1,095 890 400 280 420 245 60
Other 175 125 120 105 70 75 50 45 105 50 70 60
Distribution:
Electric systems 545 540 565 605 275 260 265 270 270 280 300 335
Gas systems 145 135 105 105 80 70 40 40 65 65 65 65
Other 240 230 235 295 45 45 40 60 40 35 35 55
$3,130 $3,580 $3,625 $3,065 $1,755 $2,375 $1,910 $2,215 $1,120 $1,175 $1,555 $670
West Riverside Options- WPL entered into agreements with neighboring utilities that provided them options to purchase a partial ownership interest in West Riverside. Upon exercise of such options and the resulting sales, WPL received proceeds from the sales in 2024. Refer to "Customer Investments" for additional information.
Renewable Tax Credits- IPL and WPL started construction in 2024 and 2025, and currently expect to start construction in the first half of 2026, of certain renewable and energy storage projects, with the intention of preserving the qualification of any renewable tax credits associated with these projects.
Financing Activities -The following items contributed to increased (decreased) financing activity cash flows for 2025 compared to 2024 (in millions):
Alliant Energy IPL WPL
Higher (lower) net proceeds from issuance of long-term debt $857 $245 ($1)
Lower payments to retire long-term debt 509 200 -
Net changes in the amount of commercial paper outstanding (553) (12) (48)
Higher common stock dividends (29) (159) (11)
Higher (lower) capital contributions from IPL's and WPL's parent company, Alliant Energy - (40) 25
Other 20 14 5
$804 $248 ($30)
FERC and Public Utility Holding Company Act Financing Authorizations- Under the Public Utility Holding Company Act of 2005, FERC has authority over the issuance of utility securities, except to the extent that a public utility's primary state regulatory commission has retained jurisdiction over such matters. FERC currently has authority over the issuance of securities by IPL. FERC does not have authority over the issuance of securities by Alliant Energy, WPL, AEF or Corporate Services. In January 2026, IPL received authorization from FERC to issue securities in 2026 and 2027 as follows (in millions):
Initial Authorization
Long-term debt securities issuances in aggregate $2,500
Short-term debt securities outstanding at any time (including borrowings from its parent) 400
Preferred stock issuances in aggregate 300
State Regulatory Financing Authorizations- In March 2023, WPL received authorization from the PSCW to have up to $500 million of short-term borrowings and/or letters of credit outstanding at any time through the expiration date of WPL's credit facility agreement. In January 2026, WPL received authorization from the PSCW to issue up to $2.8 billion of long-term debt securities in aggregate in 2026-2028.
Shelf Registrations- Alliant Energy, IPL and WPL have current shelf registration statements on file with the SEC for availability to issue unspecified amounts of securities through December 2026. Alliant Energy's shelf registration statement may be used to issue common stock, debt and other securities. IPL's and WPL's shelf registration statements may be used to issue preferred stock and debt securities.
Common Stock Dividends- Payment of common stock dividends is subject to dividend declaration by Alliant Energy's Board of Directors and is dependent upon, among other factors, regulatory limitations, earnings, cash flows, capital requirements and general financial condition of subsidiaries. Alliant Energy's general long-term goal is to maintain a dividend payout ratio that is competitive with the industry average. Based on that, Alliant Energy's goal is to maintain a dividend payout ratio of approximately 60% to 70% of consolidated earnings from continuing operations. Refer to "Results of Operations" for discussion of expected common stock dividends in 2026.
Common Stock Issuances- Refer to Note 7for discussion of common stock issuances by Alliant Energy in 2024 and 2025, and "Results of Operations" for discussion of expected issuances of common stock in 2026 through 2029.
Short-term Debt- In December 2025, Alliant Energy, IPL and WPL amended and extended their single revolving credit facility agreement, which expires in December 2030 and is discussed in Note 8(a). There are currently 14 lenders that participate in the credit facility, with respective commitments ranging from $25 million to $130 million. Subject to certain conditions, Alliant Energy, IPL and WPL may exercise one extension option, which would extend the maturity date by one year. The credit facility has a provision to expand the facility size up to an additional $700 million, for a potential total commitment of $2 billion, subject to lender approval for Alliant Energy and subject to lender and regulatory approvals for IPL and WPL.
The credit agreement contains customary events of default, including a cross-default provision that would be triggered if Alliant Energy or certain of its significant subsidiaries (including IPL and WPL) defaults on debt (other than non-recourse debt) totaling $100 million or more. IPL and WPL are subject to a similar cross-default provision with respect to their own respective consolidated debt. A default by Alliant Energy or its non-utility subsidiaries would not trigger a cross-default at IPL or WPL, nor would a default by either of IPL or WPL constitute a cross-default event for the other. If an event of default under the credit agreement occurs and is continuing, then the lenders may declare any outstanding obligations of the defaulting borrower under the credit agreement immediately due and payable.
The single credit facility agreement contains a financial covenant, which requires Alliant Energy, IPL and WPL to maintain certain debt-to-capital ratios in order to borrow under the credit facility. AEF's term loan credit agreement contains a financial covenant, which requires Alliant Energy to maintain a certain debt-to-capital ratio in order to borrow under the term loan credit agreement. The required debt-to-capital ratios compared to the actual debt-to-capital ratios at December 31, 2025 were as follows:
Alliant Energy IPL WPL
Requirement, not to exceed 65% 65% 65%
Actual 59% 50% 47%
The debt component of the capital ratios includes, when applicable, long- and short-term debt (excluding non-recourse debt and hybrid securities (e.g., junior subordinated notes) to the extent the total carrying value of such hybrid securities does not exceed 15% of consolidated capital of the applicable borrower), finance lease obligations, certain letters of credit, guarantees of the foregoing and new synthetic leases. Unfunded vested benefits under qualified pension plans and sales of accounts receivable are not included in the debt-to-capital ratios. The equity component of the capital ratios excludes accumulated other comprehensive income (loss).
Long-term Debt- Refer to Note 8(b)for discussion of issuances and retirements of long-term debt in 2025, and "Results of Operations" for discussion of expected issuances and retirements of long-term debt in 2026. In 2024, IPL issued $350 million of 4.95% senior debentures due 2034 and $300 million of 5.45% senior debentures due 2054, a portion of which was used for the retirement of IPL's $500 million 3.25% senior debentures, and the remainder was used for general corporate purposes. In 2024, WPL issued $300 million of 5.375% green bond debentures due 2034, and an amount equal to or in excess of the net proceeds was disbursed for the development and acquisition of its solar EGUs. In 2024, AEF entered into a $300 million variable rate term loan credit agreement, which amended and restated the term loan credit agreement that expired in March 2024, and retired the $300 million variable rate term loan credit agreement set forth therein. In 2024, AEF issued $375 million of 5.40% senior notes due 2027, and used the net proceeds to reduce Alliant Energy's outstanding commercial paper and for general corporate purposes.
Impact of Credit Ratings on Liquidity and Collateral Obligations-
Ratings Triggers - The long-term debt of Alliant Energy and its subsidiaries is not subject to any repayment requirements as a result of explicit credit rating downgrades or so-called "ratings triggers." However, Alliant Energy and its subsidiaries are parties to various agreements that contain provisions dependent on credit ratings. In the event of a significant downgrade, Alliant Energy or its subsidiaries may need to provide credit support, such as letters of credit or cash collateral equal to the amount of any exposure, or may need to unwind contracts or pay underlying obligations. In the event of a significant downgrade, management believes Alliant Energy, IPL and WPL have sufficient liquidity to cover counterparty credit support or collateral requirements under these various agreements. In addition, a downgrade in the credit ratings of Alliant Energy, IPL or WPL could also result in them paying higher interest rates in future financings, reduce flexibility with future financing plans, reduce their pool of potential lenders, increase their borrowing costs under existing credit facilities or limit their access to the commercial paper market. Credit ratings and outlooks as of the date of this report are as follows:
Standard & Poor's Ratings Services Moody's Investors Service
Alliant Energy: Corporate/issuer BBB+ Baa2
Commercial paper A-2 P-2
Senior unsecured long-term debt BBB N/A
Outlook Stable Stable
IPL: Corporate/issuer BBB+ Baa1
Commercial paper A-2 P-2
Senior unsecured long-term debt BBB+ Baa1
Outlook Stable Stable
WPL: Corporate/issuer A- Baa1
Commercial paper A-2 P-2
Senior unsecured long-term debt A- Baa1
Outlook Stable Stable
Standard & Poor's Ratings Services and Moody's Investors Service issued credit ratings of BBB+ and Baa2, respectively, for the senior notes issued by AEF in 2018, 2020, 2022, 2023 and 2024 (with Alliant Energy as guarantor). Credit ratings are not recommendations to buy or sell securities and are subject to change, and each rating should be evaluated independently of any other rating. Each of Alliant Energy, IPL or WPL assumes no obligation to update their respective credit ratings. Refer to Note 14for additional information on ratings triggers for commodity contracts accounted for as derivatives.
Off-Balance Sheet Arrangements-
Special Purpose Entities - 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 IPL sells its receivables expires in March 2026. In 2025 and 2024, IPL evaluated the third party that purchases IPL's receivable assets under the Receivables Agreement and believes that the third party is a VIE; however, IPL concluded consolidation of the third party was not required.
In addition, IPL's sales of accounts receivable program agreement contains a cross-default provision that is triggered if IPL or Alliant Energy incurs an event of default on debt totaling $100 million or more. If an event of default under IPL's sales of accounts receivable program agreement occurs, then the counterparty could terminate such agreement. Refer to Note 5(b)for additional information regarding IPL's sales of accounts receivable program.
Guarantees and Indemnifications - At December 31, 2025, various guarantees and indemnifications are outstanding related to Alliant Energy's cash equity ownership interest in a non-utility wind farm, prior divestiture activities, transfers of renewable tax credits to other corporate taxpayers and electric transmission infrastructure. Refer to Note 16(d)for additional information.
Certain Financial Commitments-
Contractual Obligations - Alliant Energy, IPL and WPL have various long-term contractual obligations as of December 31, 2025, which include long-term debt maturities in Note 8(b), operating and finance leases in Note 9, capital purchase obligations in Note 16(a), and other purchase obligations in Note 16(b). At December 31, 2025, Alliant Energy, IPL and WPL had no uncertain tax positions recorded as liabilities. Refer to Note 12(a)for anticipated pension and OPEB funding amounts. Refer to "Construction and Acquisition Expenditures" above for additional information on construction and acquisition programs. In addition, at December 31, 2025, there were various other liabilities included on the balance sheets that, due to the nature of the liabilities, the timing of payments cannot be estimated.
OTHER MATTERS
Market Risk Sensitive Instruments and Positions- Primary market risk exposures are associated with commodity prices, counterparty credit risk, investment prices and interest rates. Risk management policies are used to monitor and assist in mitigating these market risks and derivative instruments are used to manage some of the exposures related to commodity prices and interest rates. Refer to Notes 1(h)and 14for further discussion of derivative instruments, and Note 1(g)for details of utility cost recovery mechanisms that significantly reduce commodity risk.
Commodity Price - Alliant Energy, IPL and WPL are exposed to the impact of market fluctuations in the price and transportation costs of commodities they procure and market. Established policies and procedures mitigate risks associated with these market fluctuations, including the use of various commodity derivatives and contracts of various durations for the forward sale and purchase of these commodities. Exposure to commodity price risks in the utility businesses is also significantly mitigated by current rate-making structures in place for recovery of fuel-related costs as well as the cost of natural gas purchased for resale. IPL's electric and gas tariffs and WPL's wholesale electric and gas tariffs provide for subsequent monthly adjustments to their tariff rates for material changes in prudently incurred commodity costs. IPL's and WPL's rate mechanisms, combined with commodity derivatives, significantly reduce commodity risk associated with their electric and gas service. WPL's retail electric service is exposed to the impact of changes in commodity prices due largely to the current retail recovery mechanism in place in Wisconsin for fuel-related costs.
Counterparty Credit Risk - Alliant Energy, IPL, and WPL are exposed to credit risk related to losses resulting from counterparties' nonperformance of their contractual obligations. Alliant Energy, IPL and WPL maintain credit policies intended to minimize overall credit risk and actively monitor these policies to reflect changes and scope of operations. Alliant Energy, IPL, and WPL conduct credit reviews for certain counterparties, and employ credit risk controls such as letters of credit, surety bonds, parental guarantees, master netting agreements and termination provisions. Credit exposure is monitored, and when necessary, activity with a specific counterparty is limited until credit enhancement is provided. Distress in the financial markets could increase Alliant Energy's, IPL's and WPL's credit risk.
Investment Price -Alliant Energy, IPL and WPL are exposed to investment price risk as a result of their investments in securities, largely related to securities held by their pension and OPEB plans, as well as unconsolidated investments accounted for under the equity method of accounting. Refer to Note 12(a)for details of the securities held by their pension and OPEB plans, and Note 6for details of equity investments. Refer to "Critical Accounting Estimates" for the impact on retirement plan costs of changes in the rate of returns earned by plan assets.
Interest Rate -Alliant Energy, IPL and WPL are exposed to risk resulting from changes in interest rates associated with variable-rate borrowings. In addition, Alliant Energy and IPL are exposed to risk resulting from changes in interest rates on cash amounts outstanding under IPL's sales of accounts receivable program. Assuming the impact of a hypothetical 100 basis point increase in interest rates on variable-rate borrowings and cash amounts outstanding under IPL's sales of accounts receivable program at December 31, 2025, Alliant Energy's, IPL's and WPL's annual pre-tax expense would increase by approximately $2 million, $2 million and $0 million, respectively. Refer to Notes 5(b)and 8for additional information on cash amounts outstanding under IPL's sales of accounts receivable program, and short- and long-term variable-rate borrowings, respectively. Refer to "Critical Accounting Estimates" for the impacts of changes in discount rates on retirement plan obligations and costs.
Critical Accounting Estimates- Alliant Energy's, IPL's and WPL's financial statements are prepared in conformity with GAAP, which requires management to apply accounting policies, judgments and assumptions, and make estimates that affect results of operations and the amounts of assets and liabilities reported in the financial statements. The following accounting estimates are critical to the business and the understanding of financial results as they require critical assumptions and judgments by management. The results of these assumptions and judgments form the basis for making estimates regarding the results of operations and the amounts of assets and liabilities that are not readily apparent from other sources. Actual financial results may differ materially from estimates. Management has discussed these critical accounting estimates with the Audit Committee of the Board of Directors. Refer to Note 1for additional discussion of accounting estimates used in the preparation of the financial statements.
Regulatory Assets and Regulatory Liabilities - IPL and WPL are regulated by various federal and state regulatory agencies. As a result, they are subject to GAAP for regulated operations, which recognizes that the actions of a regulator can provide reasonable assurance of the existence of an asset or liability. Regulatory assets or regulatory liabilities arise as a result of a difference between GAAP and actions imposed by the regulatory agencies in the rate-making process. 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. Regulatory assets and regulatory liabilities are recognized in accordance with the rulings of applicable federal and state regulators, and future regulatory rulings may impact the carrying value and accounting treatment of regulatory assets and regulatory liabilities. Note 2provides details of the nature and amounts of regulatory assets and regulatory liabilities assessed at December 31, 2025.
Assumptions and judgments are made each reporting period regarding whether regulatory assets are probable of future recovery and regulatory liabilities are probable future obligations by considering factors such as regulatory environment changes, rate orders issued by the applicable regulatory agencies, historical decisions by such regulatory agencies regarding similar regulatory assets and regulatory liabilities, and subsequent events of such regulatory agencies. The decisions made by regulatory agencies have an impact on the recovery of costs, the rate of return on invested capital and the timing and amount of assets to be recovered by rates. A change in these decisions may result in a material impact on results of operations and the amount of assets and liabilities in the financial statements.
Income Taxes -Alliant Energy, IPL and WPL are subject to income taxes in various jurisdictions. Assumptions and judgments are made each reporting period to estimate income tax assets, liabilities, benefits and expenses. Judgments and assumptions are supported by historical data and reasonable projections. Significant changes in these judgments and assumptions could have a material impact on financial condition and results of operations. Alliant Energy's and IPL's critical assumptions and judgments for 2025 included estimates of qualifying deductions for repairs expenditures, allocation of mixed service costs and state depreciation, and costs related to retirement or removal of depreciable property due to the impact of Iowa rate-making principles on such property-related differences. Critical assumptions and judgments also include projections of future taxable income used to determine the ability to utilize federal credit carryforwards prior to their expiration. Refer to Note 11for further discussion of tax matters.
Effect of Rate-making on Property-related Differences- Alliant Energy's and IPL's effective income tax rates are normally impacted by certain property-related differences at IPL for which deferred tax is not recorded in the income statement pursuant to Iowa rate-making principles. Changes in methods or assumptions regarding the amount of IPL's qualifying repairs expenditures, allocation of mixed service costs and state depreciation, and costs related to retirement or removal of depreciable property, could result in a material impact on Alliant Energy's and IPL's financial condition and results of operations.
Carryforward Utilization- Significant federal tax credit carryforwards exist for Alliant Energy, IPL and WPL as of December 31, 2025. Based on projections of current and future taxable income, Alliant Energy, IPL and WPL plan to utilize all of these carryforwards more than five years before expiration. Changes in tax regulations or assumptions regarding current and future taxable income could require valuation allowances in the future resulting in a material impact on financial condition and results of operations.
Long-Lived Assets -Periodic assessments regarding the recoverability of certain long-lived assets are completed when factors indicate the carrying value of such assets may not be recoverable or such assets are planned to be sold. These assessments require significant assumptions and judgments by management. The long-lived assets assessed for impairment generally include certain assets within regulated operations that may not be fully recovered from IPL's and WPL's customers as a result of regulatory decisions in the future, and assets within non-utility operations that are proposed to be sold or are currently generating operating losses.
Regulated Operations- Long-lived assets within 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 is disallowed recovery of any portion of the carrying value of its regulated property, plant and equipment that has been recently completed or is probable of being retired early, an impairment charge is recognized equal to the amount of the carrying value that was disallowed recovery. If IPL or WPL is disallowed a full or partial return on the carrying value of its regulated property, plant and equipment that has been recently completed or is probable of being retired early, an impairment charge is recognized equal to the difference between the carrying amount of the asset and the present value of the future revenues expected from its regulated property, plant and equipment. Refer to Note 3for further discussion of Alliant Energy's, IPL and WPL's long-lived assets within their regulated operations.
AROs- 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. Alliant Energy, IPL and WPL estimate the fair value of their AROs using present value techniques, in which they make various assumptions, including estimates of the amounts and timing of future cash flows associated with retirement activities, inflation and discount rates. Estimates of the timing and amounts of future cash outlays are based on projections of when and how assets will be retired and the cost of future removal activities. These amounts are expected to be adjusted in the future, as additional information is obtained for the specific site closure plans, including the determination of whether or not individual sites are considered legal obligations and the acceptance and approval of compliance approaches, which could change management assumptions and result in a material change to the recorded ARO amounts. Future updates, including updates due to the enactment of the revised CCR Rule, could have a material impact on Alliant Energy's, IPL's and WPL's financial condition and results of operations. Refer to Note 13for further discussion of AROs.
Pensions and Other Postretirement Benefits - Alliant Energy, IPL and WPL sponsor various defined benefit pension and OPEB plans that provide benefits to a significant portion of their employees and retirees. Assumptions and judgments are made periodically to estimate the obligations and costs related to their retirement plans. There are many judgments and assumptions involved in determining an entity's pension and other postretirement liabilities and costs each period including employee demographics (including life expectancies and compensation levels), discount rates, assumed rates of return and funding. Changes made to plan provisions may also impact current and future benefits costs. Judgments and assumptions are supported by historical data and reasonable projections and are reviewed at least annually. The following table shows the impacts of changing certain key actuarial assumptions discussed above (in millions):
Defined Benefit Pension Plans OPEB Plans
Change in Actuarial Assumption
Impact on Projected Benefit Obligation at December 31, 2025
Impact on 2026 Net Periodic Benefit Costs
Impact on Accumulated Benefit Obligation at December 31, 2025
Impact on 2026 Net Periodic Benefit Costs
Alliant Energy
1% change in discount rate $83 $7 $10 $-
1% change in expected rate of return N/A 7 N/A 1
IPL
1% change in discount rate 39 3 4 -
1% change in expected rate of return N/A 3 N/A 1
WPL
1% change in discount rate 37 3 4 -
1% change in expected rate of return N/A 3 N/A -
Contingencies - Assumptions and judgments are made each reporting period regarding the future outcome of contingent events. Loss contingency amounts are recorded for any contingent events for which the likelihood of loss is probable and able to be reasonably estimated based upon current available information. The amounts recorded may differ from actuals when the uncertainty is resolved. The estimates made in accounting for contingencies, and the gains and losses that are recorded upon the ultimate resolution of these uncertainties, could have a significant effect on results of operations and the amount of assets and liabilities in the financial statements. Certain contingencies require estimation each reporting period of the expected credit losses on those contingencies, which requires significant judgment and may result in the recognition of a credit loss liability. Note 16provides further discussion of contingencies assessed at December 31, 2025 that may have a material impact on financial condition and results of operations, including various pending legal proceedings, guarantees and indemnifications.
Retroactive Tariffs on Solar Cells and Modules- In August 2023, the U.S. Department of Commerce (DOC) issued a final ruling that found solar cells and modules produced in certain Southeast Asian countries, including Cambodia, Malaysia, Thailand and Vietnam, using parts and components produced in China, were circumventing pre-existing antidumping and countervailing duties on China. Consistent with a June 2022 Presidential Proclamation, the DOC issued rules granting duty-free treatment of solar cells and modules imported from these four countries as of June 2022 until June 2024. In August 2025, the U.S. Court of International Trade (CIT) ruled that this two-year duty suspension, as issued, was impermissible. In September 2025, this ruling from the CIT was appealed to the Federal Circuit. The CIT's order has been stayed pending appeal. Alliant Energy, IPL and WPL continue to assess the potential impact of these tariffs on previously completed solar generation projects and are currently unable to predict with certainty the future outcome or impact of these matters, including resolution of ongoing litigation.
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