MADISON, Wis., Feb. 6 /PRNewswire-FirstCall/ — Alliant Energy Corp. (NYSE:LNT) today announced income and earnings per share (EPS) from continuing operations for 2007 of $425.6 million and $3.78, respectively, compared to $338.3 million and $2.89 in 2006. The income from continuing operations in 2007 includes an after-tax gain of $122.7 million, or $1.09 per share, from the sale of Interstate Power and Light Company’s (IPL’s) electric transmission assets. The income from continuing operations in 2006 includes an after-tax gain of $150.1 million, or $1.28 per share, from the sale of Alliant Energy New Zealand Ltd. (AENZ) stock and after-tax charges related to debt reductions within Alliant Energy’s non-regulated businesses of $56.8 million, or $0.48 per share. Alliant Energy’s net income and EPS for 2007 were $426.2 million and $3.79, respectively, compared to $315.7 million and $2.69 in 2006.
Excluding IPL’s gain from selling its electric transmission assets in 2007, earnings from continuing operations for Alliant Energy’s utility business were higher in 2007 as compared to 2006 primarily due to increased electric margins resulting from improved fuel cost recoveries and weather-related impacts, lower costs from retirement and incentive compensation plans and the accretive effect of fewer shares outstanding following the completion of Alliant Energy’s common stock repurchase program. These items were partially offset by a higher effective income tax rate in 2007, costs related to major winter storms in IPL’s service territory in 2007 and lower gas margins due to reduced gains from Wisconsin Power and Light Co.’s (WPL’s) discontinued performance-based gas commodity recovery program.
Excluding the gain from selling AENZ stock and debt reduction charges in 2006, earnings from continuing operations for Alliant Energy’s non-regulated businesses were higher in 2007 as compared to 2006 primarily due to a lower effective income tax rate partially due to $0.06 of reversals of deferred tax asset valuation allowances in 2007, a loss from selling steam turbine equipment in 2006, lower interest costs, currency-related losses from AENZ in 2006 prior to its sale and improved earnings from its Non-regulated Generation, RMT and WindConnect(R) businesses in 2007.
In December 2007, IPL completed the sale of its electric transmission assets located in Iowa, Minnesota and Illinois to ITC Midwest LLC, a wholly owned subsidiary of ITC Holdings Corporation, for net proceeds of $772 million, subject to post-closing adjustments. IPL used the proceeds to issue a $400 million dividend to Alliant Energy, to retire $150 million of its short-term debt and to fund investments in short-term securities and for general corporate purposes. At December 31, 2007, Alliant Energy had approximately $750 million of cash and short-term securities.
“We are pleased with our accomplishments during 2007,” said Bill Harvey, Alliant Energy’s Chairman, President and CEO. “Operationally, our organization responded admirably to major ice storms and our generating stations continued to perform at a high level. Financially, we produced strong and predictable earnings in our core utility and non-regulated businesses, and we recently increased our dividend for the third year in a row. Finally, with the groundbreaking at our Cedar Ridge Wind Farm in Wisconsin, we launched our extensive generation build-out program. With the sale of our IPL transmission assets, we enter our build-out program in a very strong financial position to meet the future energy needs of our customers with a plan that balances reliability, economics, and the environment.”
Full Year Results
A summary of Alliant Energy’s 2007 and 2006 earnings is as follows (net income
in millions):Earnings (loss) from continuing 2007 2006
operations: Net Income EPS Net Income EPS
Utility (excl. IPL’s electric
transmission assets gain) (a) $263.3 $2.34 $259.0 $2.21
Non-regulated (excl. New Zealand
gain and debt charges) (b) 34.7 0.31 (24.3) (0.21)
Parent (interest income and
taxes) 4.9 0.04 10.3 0.09
Total excl. trans. assets gain,
New Zealand gain & debt charges 302.9 2.69 245.0 2.09
Gain on sale of IPL’s electric
transmission assets (a) 122.7 1.09 — —
Gain on sale of Alliant Energy New
Zealand Ltd. stock (b) — — 150.1 1.28
Non-regulated charges related to
debt reductions (b) — — (56.8) (0.48)
Total earnings from continuing
operations 425.6 3.78 338.3 2.89
Income (loss) from discontinued
operations 0.6 0.01 (22.6) (0.20)
Net income $426.2 $3.79 $315.7 $2.69
(a) Total income from continuing operations for the utility business in
2007 and 2006 was $386.0 million and $259.0 million, or $3.43 and
$2.21 per share, respectively.
(b) Total income from continuing operations for the non-regulated
businesses in 2007 and 2006 was $34.7 million and $69.0 million, or
$0.31 and $0.59 per share, respectively.
Additional details regarding Alliant Energy’s EPS from continuing operations for 2007 and 2006 are as follows:
2007 2006 Variance
Utility operations (excl. IPL’s electric
transmission assets gain):
Electric margins:
Retail fuel-related impacts at WPL
(incl. fuel case settlement in
Q3 2006) $0.08 $(0.01) $0.09
Net impact of weather and weather
hedges 0.02 (0.07) 0.09
Unbilled revenue estimate adjustments
in Q2 (0.03) 0.03 (0.06)
Capacity costs related to Duane
Arnold Energy Center PPA (0.05)
Other (primarily due to increase in
weather-normalized retail sales) 0.06
Gas margins:
Gains from performance-based gas
commodity recovery program at WPL 0.02 0.07 (0.05)
Net impact of weather and weather
hedges (0.02) (0.01) (0.01)
Operating expenses:
Pension and other postretirement
benefit costs (0.14) (0.22) 0.08
Winter storm costs in IPL’s service
territories in Q1 2007 and Q4 2007 (0.05) — (0.05)
Incentive-related compensation costs (0.14) (0.19) 0.05
Other (0.01)
Changes in effective income tax rate:
Income tax benefits related to Duane
Arnold Energy Center sale in Q1 2006 — 0.06 (0.06)
Federal income tax audit settlement
in Q3 2007 0.04 — 0.04
Other (0.07)
Accretive effect of fewer shares
outstanding 0.09
Other (0.01)
Total utility operations (excl. IPL’s electric
transmission assets gain) 2.34 2.21 0.13
Non-regulated operations (excl. New Zealand
gain and debt reduction charges):
Loss on sale of steam turbine equipment
(sold in Q4 2006) — (0.08) 0.08
Non-regulated Generation 0.12 0.05 0.07
New Zealand (excluding gain; sold in
Q4 2006) — (0.06) 0.06
RMT and WindConnect(R) 0.08 0.03 0.05
Reversal of capital loss deferred tax
asset valuation allowances 0.06 0.03 0.03
Transportation 0.07 0.07 —
Other (primarily interest and taxes) (0.02) (0.25) 0.23
Total non-regulated operations (excl. NZ
gain and debt reduction charges) 0.31 (0.21) 0.52
Parent company (primarily interest income
and taxes) 0.04 0.09 (0.05)
Total excl. transmission assets gain, New
Zealand gain & debt charges 2.69 2.09 0.60
Gain on sale of IPL’s electric transmission
assets 1.09 — 1.09
Gain on sale of Alliant Energy New Zealand
Ltd. stock — 1.28 (1.28)
Charges related to non-regulated debt
reductions — (0.48) 0.48
Earnings per share from continuing operations $3.78 $2.89 $0.89Fourth Quarter Results
A summary of Alliant Energy’s fourth quarter earnings is as follows (net
income in millions):Earnings (loss) from continuing 2007 2006
operations: Net Income EPS Net Income EPS
Utility (excl. IPL’s electric
transmission assets gain) (a) $59.7 $0.55 $66.1 $0.57
Non-regulated (excl. New Zealand
gain) (b) 16.9 0.15 (26.9) (0.23)
Parent (interest income and
taxes) (0.1) — 2.0 0.02
Total excl. transmission assets
gain & New Zealand gain 76.5 0.70 41.2 0.36
Gain on sale of IPL’s electric
transmission assets (a) 122.7 1.11 — —
Gain on sale of Alliant Energy New
Zealand Ltd. stock (b) — — 150.1 1.29
Total earnings from continuing
operations 199.2 1.81 191.3 1.65
Income (loss) from discontinued
operations (5.1) (0.05) 1.8 0.01
Net income $194.1 $1.76 $193.1 $1.66(a) Total income from continuing operations for the utility business in
the fourth quarter of 2007 and 2006 was $182.4 million and $66.1
million, or $1.66 and $0.57 per share, respectively.
(b) The total income from continuing operations for the non-regulated
businesses in the fourth quarter of 2007 and 2006 was $16.9 million
and $123.2 million, or $0.15 and $1.06 per share, respectively.
Additional details regarding Alliant Energy’s fourth quarter EPS from continuing operations for 2007 and 2006 are as follows:
2007 2006 VarianceUtility operations (excl. IPL’s electric
transmission assets gain):
Electric margins
Retail fuel-related impacts at WPL $– $0.03 ($0.03)
Other (0.04)
Gas margins (0.03)
Operating expenses:
Incentive-related (0.06) (0.11) 0.05
compensation costs
Pension and other
postretirement benefit costs (0.03) (0.05) 0.02
Other 0.05
Accretive effect of fewer shares 0.03
outstanding
Other (primarily higher effective
income tax rate) (0.07)
Total utility operations (excl. IPL’s
electric transmission assets gain) 0.55 0.57 (0.02)Non-regulated operations (excl. New
Zealand gain):
New Zealand (excluding gain; sold in Q4
2006) — (0.09) 0.09
Loss on sale of steam turbine equipment
(sold in Q4 2006) — (0.08) 0.08
Reversal of capital loss deferred tax
asset valuation allowances 0.06 0.01 0.05
RMT and WindConnect(R) 0.03 0.01 0.02
Non-regulated Generation 0.02 0.02 —
Transportation 0.02 0.02 —
Other (primarily interest and taxes) 0.02 (0.12) 0.14
Total non-regulated operations (excl.
New Zealand gain) 0.15 (0.23) 0.38
Parent company (primarily interest
income and taxes) — 0.02 (0.02)
Total excl. electric transmission assets
gain & New Zealand gain 0.70 0.36 0.34
Gain on sale of IPL’s electric
transmission assets 1.11 — 1.11
Gain on sale of Alliant Energy New
Zealand Ltd. stock — 1.29 (1.29)
Earnings per share from continuing
operations $1.81 $1.65 $0.162008 Earnings Guidance
Alliant Energy’s earnings guidance for 2008 is as follows:
Utility business $2.23 – 2.43
Non-regulated businesses 0.19 – 0.23
Parent company 0.10 – 0.12
Alliant Energy $2.55 – 2.75
The guidance does not include the impact of any potential asset valuation charges that Alliant Energy may incur, the impact of certain non-cash mark-to-market adjustments, the impact of any future adjustments made to Alliant Energy’s deferred tax asset valuation allowances, the impacts of any cumulative effects of changes in accounting principles or any gains/losses and related tax impact that may be realized from possible sales of certain Alliant Energy assets that would be reported in earnings from continuing operations. Finally, the guidance also assumes that no businesses will be re-classified to or from “discontinued operations”.
Drivers for Alliant Energy’s earnings estimates include, but are not limited to:
— Normal weather conditions in its utility service territories
— Continuing economic development and sales growth in its utility service
territories
— Continuing cost controls and operational efficiencies
— Ability of its utility subsidiaries to recover their operating costs
and deferred expenditures, and to earn a reasonable rate of return in
current and future rate proceedings, as well as their ability to
recover purchased power, fuel and fuel-related costs through rates in a
timely manner
— Execution of its utility subsidiaries’ generation build-out and
environmental expenditure plans
— Ability to utilize tax capital losses generated to-date, and those that
may be generated in the future, before they expireProjected Capital Expenditures
Alliant Energy is updating its previously announced capital expenditures for 2008 through 2010 to reflect changes in the timing of expenditures for certain environmental compliance projects (in millions):
2008 2009 2010
Utility business:
Generation – new facilities $420 $570 $1,355
Environmental 190 220 215
Other utility capital expenditures 430 430 430
Non-regulated businesses 10 10 10
Alliant Energy $1,050 $1,230 $2,010Earnings Conference Call
A conference call to review the 2007 results is scheduled for Wednesday, February 6th at 9:00 a.m. central time. Alliant Energy Chairman, President and Chief Executive Officer William D. Harvey and Senior Executive Vice President and Chief Financial Officer Eliot G. Protsch will host the call. The conference call is open to the public and can be accessed in two ways. Interested parties may listen to the call by dialing 866-454-4207 (United States or Canada) or 913-312-6697 (International), passcode 4784982. Interested parties may also listen to a webcast at http://www.alliantenergy.com/investors. In conjunction with the information in this earnings announcement and conference call, Alliant Energy posted on its Web site supplemental information. A replay of the call will be available through February 13, 2008, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 4784982. An archive of the webcast will be available on the Company’s Web site at http://www.alliantenergy.com/investors for at least twelve months.
Alliant Energy is the parent company of two public utility companies — Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL) — and of Alliant Energy Resources, Inc., the parent company of Alliant Energy’s non-regulated operations. Alliant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and 400,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the Company’s primary focus. Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the Company’s Web site at http://www.alliantenergy.com/.
This press release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as “expect” or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by the following factors, among others: federal and state regulatory or governmental actions, including the impact of energy-related and tax legislation and regulatory agency orders; the ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of operating costs and deferred expenditures, the earning of reasonable rates of return and the payment of expected levels of dividends; current or future litigation, regulatory investigations, proceedings or inquiries; economic and political conditions in Alliant Energy’s service territories; the growth rate of biomass and ethanol production in Alliant Energy’s service territories; issues related to the availability of Alliant Energy’s generating facilities and the supply and delivery of fuel and purchased electricity and price thereof, including the ability to recover and retain purchased power, fuel and fuel-related costs through rates in a timely manner; the impact fuel and fuel-related prices and other economic conditions may have on customer demand for utility services; Alliant Energy’s ability to collect unpaid utility bills; unanticipated issues in connection with Alliant Energy’s construction of new generating facilities; unanticipated issues in connection with WPL’s proposed purchase of Alliant Energy Resources’ electric generating facility in Neenah, Wisconsin; unanticipated construction and acquisition expenditures; issues associated with Alliant Energy’s environmental remediation efforts and with environmental compliance generally; potential impacts of any future laws or regulations regarding global climate change or carbon emissions reductions; financial impacts of Alliant Energy’s hedging strategies, including the impact of weather hedges on Alliant Energy’s utility earnings; issues related to electric transmission, including operating in the Midwest Independent System Operator (MISO) energy market, the impacts of potential future billing adjustments from MISO and recovery of costs incurred; unanticipated issues related to the Calpine Corporation bankruptcy that could adversely impact Alliant Energy’s purchased power agreements; the direct or indirect effects resulting from terrorist incidents or responses to such incidents; unplanned outages at Alliant Energy’s generating facilities and risks related to recovery of incremental costs through rates; continued access to the capital markets; inflation and interest rates; Alliant Energy’s ability to sustain its dividend payout ratio goal; developments that adversely impact Alliant Energy’s ability to implement its strategic plan; any material post-closing adjustments related to any of Alliant Energy’s past asset divestitures; employee workforce factors, including changes in key executives, collective bargaining agreements or work stoppages; access to technological developments; the impact of necessary accruals or adjustments for the terms of Alliant Energy’s incentive compensation plans; the effect of accounting pronouncements issued periodically by standard-setting bodies; the ability to utilize tax capital losses and net operating losses before they expire; the ability to successfully complete ongoing tax audits and appeals with no material impact on Alliant Energy’s earnings and cash flows; and the factors listed in the “2008 Earnings Guidance” section of this press release. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. Without limitation, the expectations with respect to projected earnings in the “2008 Earnings Guidance” section of this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy’s ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Note: Unless otherwise noted, all “per share” references in this release refer to earnings per diluted share.
ALLIANT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOMEQuarter Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(dollars in millions, except per share amounts)
Operating revenues:
Utility:
Electric $560.5 $552.6 $2,413.0 $2,443.0
Gas 191.6 191.7 630.2 633.3
Other 22.1 26.6 71.7 79.8
Non-regulated 99.4 70.4 324.9 203.3
873.6 841.3 3,439.8 3,359.4Operating expenses:
Utility:
Electric production fuel
and purchased power 285.7 263.8 1,202.7 1,257.4
Cost of gas sold 136.6 131.4 441.1 431.7
Other operation and
maintenance 150.2 171.9 609.3 622.3
Non-regulated operation and
maintenance 85.6 75.6 270.9 184.9
Depreciation and
amortization 65.0 65.5 262.3 261.4
Taxes other than income
taxes 27.1 27.8 108.7 108.2
750.2 736.0 2,895.0 2,865.9Gain on sale of IPL’s electric
transmission assets 218.8 — 218.8 —Operating income 342.2 105.3 763.6 493.5
Interest expense and other:
Interest expense 30.4 38.1 116.7 145.7
Loss on early extinguishment
of debt — — — 90.8
Equity income from
unconsolidated investments (7.6) (10.1) (29.3) (45.5)
Gain on sale of Alliant Energy
New Zealand Ltd. stock — (253.9) — (253.9)
Allowance for funds used during
construction (2.3) (1.1) (7.8) (8.1)
Preferred dividend
requirements of
subsidiaries 4.7 4.7 18.7 18.7
Interest income and other (2.7) 16.7 (15.7) 4.5
22.5 (205.6) 82.6 (47.8)Income from continuing
operations
before income taxes 319.7 310.9 681.0 541.3Income taxes 120.5 119.6 255.4 203.0
Income from continuing
operations 199.2 191.3 425.6 338.3Income (loss) from discontinued
operations, net of tax (5.1) 1.8 0.6 (22.6)Net income $194.1 $193.1 $426.2 $315.7
Weighted average number of
common shares outstanding
(basic) (000s) 110,058 115,854 112,284 116,826Earnings per weighted average
common share (basic):
Income from continuing
operations $1.81 $1.65 $3.79 $2.90
Income (loss) from
discontinued
operations (0.05) 0.02 0.01 (0.20)
Net income $1.76 $1.67 $3.80 $2.70Weighted average number of
common shares outstanding
(diluted) (000s) 110,249 116,231 112,521 117,190Earnings per weighted average
common share (diluted):
Income from continuing
operations $1.81 $1.65 $3.78 $2.89
Income (loss) from
discontinued
operations (0.05) 0.01 0.01 (0.20)
Net income $1.76 $1.66 $3.79 $2.69Dividends declared per common
share $0.3175 $0.2875 $1.27 $1.15ALLIANT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETSDecember 31, December 31,
ASSETS 2007 2006
(in millions)
Property, plant and equipment:
Utility:
Electric plant in service $5,633.7 $5,407.0
Gas plant in service 726.3 696.7
Other plant in service 466.8 459.1
(2,692.1) (2,580.0)
Accumulated depreciation
Net plant 4,134.7 3,982.8
Construction work in progress 195.9 138.3
Other, less accumulated depreciation
(accum. depr.) 4.6 4.3
Total utility 4,335.2 4,125.4
Non-regulated and other:
Non-regulated Generation, less accum.
depr. 240.5 252.2
Other non-regulated investments, less
accum. depr. 66.1 69.2
Alliant Energy Corporate Services, Inc.
and other, less accum. depr. 39.0 42.0
Total non-regulated and other 345.6 363.4
4,680.8 4,488.8Current assets:
Cash and cash equivalents 745.6 265.2
Accounts receivable:
Customer, less allowance for doubtful
accounts 154.7 127.4
Unbilled utility revenues 151.6 120.5
Other, less allowance for doubtful
accounts 40.6 101.9
Production fuel, at weighted average cost 92.2 73.2
Materials and supplies, at weighted average
cost 45.6 41.1
Gas stored underground, at weighted average
cost 70.5 63.9
Regulatory assets 58.5 133.7
Derivative assets 34.1 7.2
Assets held for sale (including IPL’s
electric transmission assets) — 581.9
Other 78.9 113.9
1,472.3 1,629.9Investments:
Investment in American Transmission Company
LLC 172.2 166.2
Other 65.7 61.7
237.9 227.9Other assets:
Regulatory assets 491.7 508.7
Deferred charges and other 307.9 228.8
799.6 737.5Total assets $7,190.6 $7,084.1
ALLIANT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS (Continued)December 31, December 31,
CAPITALIZATION AND LIABILITIES 2007 2006
(in millions, except per
share and share amounts)
Capitalization:
Common stock – $0.01 par value –
authorized 240,000,000 shares;
outstanding 110,359,314 and 116,126,599
shares $1.1 $1.2
Additional paid-in capital 1,483.4 1,743.0
Retained earnings 1,206.1 923.6
Accumulated other comprehensive income
(loss) 0.2 (8.7)
Shares in deferred compensation trust –
294,196 and 276,995 shares
at a weighted average cost of $29.65 and
$28.15 per share (8.7) (7.8)
Total common equity 2,682.1 2,651.3Cumulative preferred stock of
subsidiaries, net 243.8 243.8
Long-term debt, net (excluding current
portion) 1,404.5 1,323.3
4,330.4 4,218.4Current liabilities:
Current maturities 140.1 194.6
Commercial paper 81.8 178.8
Other short-term borrowings 29.5 —
Accounts payable 346.7 294.1
Regulatory liabilities 84.3 67.8
Accrued taxes 73.5 94.2
Derivative liabilities 24.3 88.0
Liabilities held for sale (including IPL’s
electric transmission liabilities) — 59.2
Other 156.0 170.7
936.2 1,147.4Other long-term liabilities and deferred
credits:
Deferred income taxes 823.7 758.3
Regulatory liabilities 656.4 563.9
Pension and other benefit obligations 206.4 198.6
Other 233.6 192.6
1,920.1 1,713.4Minority interest 3.9 4.9
Total capitalization and liabilities $7,190.6 $7,084.1
ALLIANT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended December 31,
2007 2006
(in millions)
Cash flows from operating activities:
Net income $426.2 $315.7
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation and amortization 262.3 261.4
Other amortizations 47.3 45.2
Deferred tax expense and investment tax
credits 100.5 201.9
Equity income from unconsolidated
investments, net (29.3) (45.5)
Distributions from equity method
investments 21.8 28.9
Loss on early extinguishment of debt — 90.8
Gains on dispositions of assets, net (236.9) (245.1)
Non-cash valuation charges 2.4 37.8
Currency transaction losses and other 1.7 14.1
Other changes in assets and liabilities:
Accounts receivable 30.0 20.5
Sale of utility accounts receivable (25.0) 25.0
Income tax refunds receivable 3.2 (17.0)
Production fuel (19.0) (14.7)
Gas stored underground (6.6) 28.2
Prepaid pension costs (43.0) (23.8)
Current deferred tax assets 33.1 (20.9)
Regulatory assets 129.3 (77.7)
Derivative assets (27.9) 21.4
Accounts payable 31.5 (68.9)
Accrued interest (0.2) (17.4)
Accrued taxes 8.8 (92.6)
Regulatory liabilities 6.5 (72.8)
Derivative liabilities (66.5) 65.1
Deferred income taxes (41.6) 48.3
Pension and other benefit obligations (0.9) (84.9)
Other (18.4) (19.7)
Net cash flows from operating
activities 589.3 403.3Cash flows from investing activities:
Construction and acquisition expenditures:
Utility business (516.5) (367.7)
Alliant Energy Corporate Services,
Inc. and non-regulated businesses (26.0) (31.3)
Proceeds from asset sales 900.8 797.0
Purchases of emission allowances (23.9) (9.7)
Sales of emission allowances — 35.1
Purchases of securities within nuclear
decommissioning trusts — (3.5)
Sales of securities within nuclear
decommissioning trusts — 51.7
Changes in restricted cash within nuclear
decommissioning trusts — (19.0)
Other (5.9) 13.2
Net cash flows from investing
activities 328.5 465.8
Cash flows used for financing activities:
Common stock dividends (143.2) (134.4)
Repurchase of common stock (296.8) (105.1)
Proceeds from issuance of common stock 34.1 49.6
Proceeds from issuance of long-term debt 300.0 39.1
Reductions in long-term debt (273.2) (538.6)
Net change in short-term borrowings (67.5) (17.0)
Debt repayment premiums — (83.0)
Other 8.4 (29.7)
Net cash flows used for financing
activities (438.2) (819.1)Net increase in cash and cash equivalents 479.6 50.0
Total cash and cash equivalents at beginning
of period 266.0 216.0
Total cash and cash equivalents at end of
period 745.6 266.0
Less: cash and cash equivalents classified as
held for sale at end of period — 0.8
Cash and cash equivalents at end of period $745.6 $265.2KEY FINANCIAL AND OPERATING STATISTICS
Dec. 31, 2007 Dec. 31, 2006
Common shares outstanding (000s) 110,359 116,127
Book value per share $24.30 $22.83
Quarterly common dividend rate per share $0.3175 $0.2875Quarter Ended Dec. 31, Year Ended Dec. 31,
2007 2006 2007 2006
Utility electric sales
(000s of MWh) (a)
Residential 1,793 1,841 7,753 7,670
Commercial 1,557 1,540 6,222 6,187
Industrial 3,182 3,223 12,692 12,808
Retail subtotal 6,532 6,604 26,667 26,665
Sales for resale:
Wholesale 897 712 3,547 3,064
Bulk power and other 887 867 2,550 2,632
Other 41 45 167 171
Total 8,357 8,228 32,931 32,532Utility retail electric customers
(at Dec. 31) (a)Residential 840,122 855,948
Commercial 134,235 135,822
Industrial 2,964 3,064
Total 977,321 994,834Utility gas sold and transported
(000s of Dth) (a)
Residential 8,901 8,947 28,137 26,406
Commercial 6,108 6,470 19,417 18,707
Industrial 1,474 1,405 4,694 4,498
Retail subtotal 16,483 16,822 52,248 49,611
Interdepartmental 511 707 2,591 2,468
Transportation and other 15,314 14,743 58,911 53,436
Total 32,308 32,272 113,750 105,515Utility retail gas customers
(at Dec. 31) (a)Residential 363,825 374,494
Commercial 45,374 46,319
Industrial 591 657
Total 409,790 421,470Margin increases
(decreases) from net
impacts of weather (in
millions) –
Electric margins –
Weather impacts on
demand compared to
normal weather $3 ($1) $9 ($9)
Gains (losses) from
weather derivatives (2) 1 (5) (5)
Net weather impact $1 $- $4 ($14)Gas margins –
Weather impacts on demand
compared to normal
weather $– ($2) $– ($9)
Gains (losses) from (2) 1 (4) 7
weather derivatives
Net weather impact ($2) ($1) ($4) ($2)For The Quarter For The Year Ended
Ended Dec. 31, Dec. 31,2007 2006 Normal(c) 2007 2006 Normal(c)
Cooling degree days
(CDDs) (b)
Cedar Rapids, Iowa
(IPL) 15 7 2 366 332 349
Madison, Wisconsin
(WPL) 16 1 1 336 284 259
Heating degree days
(HDDs) (b)
Cedar Rapids, Iowa
(IPL) 2,521 2,389 2,505 6,728 6,211 6,653
Madison, Wisconsin
(WPL) 2,530 2,429 2,599 6,914 6,499 7,148(a) In February 2007, Alliant Energy sold its electric distribution and
natural gas properties in Illinois. At the date of the sale, Alliant
Energy had approximately 22,000 electric retail customers and 14,000
gas retail customers in Illinois. Prior to the asset sales, the
electric and gas sales to retail customers in Illinois are included in
residential, commercial and industrial sales in the tables above.
Following the asset sales, the electric and gas sales associated with
these customers are included in wholesale electric sales and
transportation and other gas sales, respectively.
(b) Alliant Energy entered into weather derivatives based on CDDs and HDDs
to reduce potential volatility on its margins from the impacts of
weather during the months of June through August and November through
March, respectively.
(c) Normal degree days are calculated using a 20-year average.
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Source: Alliant Energy Corp.
