This MDA includes information relating to Alliant Energy, and 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 the Notes included in this report, as well as the financial statements, notes and MDA included in the 2020 Form 10-K . Unless otherwise noted, all "per share" references in MDA refer to earnings per diluted share.



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Table of Contents


                                2021 HIGHLIGHTS

Key highlights since the filing of the 2020 Form 10-K include the following:

Customer Investments: •In March 2021, WPL filed a Certificate of Authority with the PSCW for approval to acquire, construct, own, and operate up to 414 MW of new solar generation by the end of 2023 in the following Wisconsin counties: Dodge (150 MW), Waushara (99 MW), Rock (65 MW), Grant (50 MW) and Green (50 MW). In June 2021, WPL received an order from the PSCW authorizing WPL to acquire, own and operate 675 MW of new solar generation in various Wisconsin counties. The 1,089 MW of new solar generation would replace energy and capacity being eliminated with the planned retirement of the coal-fired Edgewater Generating Station (414 MW) by the end of 2022, and Columbia Unit 1 by the end of 2023 and Columbia Unit 2 by the end of 2024 (595 MW in aggregate), which are the last coal-fired EGUs at WPL. The retirement of these coal-fired EGUs supports Alliant Energy's strategy, which is focused on meeting its customers' energy needs in an economical, efficient and sustainable manner.



Rate Matters:
•In May 2021, WPL filed a proposed settlement with the PSCW for annual base rate
increases of $70 million and $15 million for WPL's retail electric and gas
customers, respectively, covering the 2022/2023 forward-looking Test Period,
which was based on a stipulated agreement between WPL and certain intervenor
groups. The key drivers for the proposed annual base rate increases include
lower excess deferred income tax benefits in 2022 and 2023 and revenue
requirement impacts of increasing electric and gas rate base, including
investments in solar generation. In addition, the settlement proposes WPL
maintain its current authorized return on common equity of 10%, implement a 54%
common equity component of regulatory capital structure, as well as receive a
recovery of and a return on the remaining net book value of Edgewater Unit 5,
which is currently expected to be retired by the end of 2022. WPL currently
expects any rate changes granted from this request to be effective on January 1,
2022 and extend through the end of 2023.
•In June 2021, the IUB adopted new rules that establish minimum filing
requirements for rate reviews using a forward-looking test period, and the
related subsequent proceeding review after the close of the forward-looking test
period. The rules provide that in the subsequent proceeding review, a utility's
actual costs and revenues shall be presumed to be reasonably consistent with the
forward-looking test period if the utility's actual return on common equity
falls with a standard of reasonableness of 50 basis points above or 50 basis
points below the authorized return on common equity. If the utility's actual
return on common equity is outside of this range, future rates could be
adjusted.

Legislative Matters: •In March 2021, the American Rescue Plan Act of 2021 (Act) was enacted. The most significant provision of the Act for Alliant Energy is reduced minimum pension plan funding requirements, which Alliant Energy is currently evaluating. The Act also provides additional funding to the Low Income Home Energy Assistance Program, which assists certain of Alliant Energy's customers with managing their energy costs, as well as provides financial support for certain of Alliant Energy's residential, small business and non-profit customers. •In April 2021, legislation was enacted in Iowa prohibiting counties and cities from regulating the sale of natural gas and propane, which supports IPL's ability to provide gas utility service to a diversified base of retail customers and industries.



                             RESULTS OF OPERATIONS

Results of operations include financial information prepared in accordance with GAAP as well as utility electric margins and utility gas margins, which are not measures of financial performance under GAAP. Utility electric margins are defined as electric revenues less electric production fuel, purchased power and electric transmission service expenses. Utility gas margins are defined as gas revenues less cost of gas sold. Utility electric margins and utility gas margins are non-GAAP financial measures because they exclude other utility and non-utility revenues, other operation and maintenance expenses, depreciation and amortization expenses, and taxes other than income tax expense.

Management believes that utility electric and gas margins provide a meaningful basis for evaluating and managing utility operations since electric production fuel, purchased power and electric transmission service expenses and cost of gas sold are generally passed through to customers, and therefore, result in changes to electric and gas revenues that are comparable to changes in such expenses. The presentation of utility electric and gas margins herein is intended to provide supplemental information for investors regarding operating performance. These utility electric and gas margins may not be comparable to how other entities define utility electric and gas margin. Furthermore, these measures are not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance.

Additionally, the table below includes 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 segment 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.



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Table of Contents Financial Results Overview - Alliant Energy's net income and EPS attributable to Alliant Energy common shareowners for the three months ended June 30 were as follows (dollars in millions, except per share amounts):

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