Despite two rate increases that took effect earlier this year, Alliant Energy’s third-quarter results were down year over year because of mild weather this summer.
The Madison, Wis.-based company announced a quarterly profit of $174.3 million ($0.75/share), down from $179.7 million ($0.80/share) a year earlier. Alliant attributed the slump to mild conditions, higher depreciation expenses and higher energy efficiency cost recovery amortization at subsidiary Wisconsin Power and Light (WPL).
CEO Patricia Kampling said earnings would have been on target with earlier estimates had summer temperatures been on par with historical averages.
“This quarter, we continued to produce solid financial and operational results,” Kampling said. “With three quarters of the year behind us, I am pleased to report that our anticipated … temperature-normalized earnings for fiscal year 2017 are in line with the original midpoint of our 2017 earnings guidance. However, taking into account year-to-date temperatures, which resulted in an estimated 6 cents/share of lower earnings, we are updating 2017 adjusted earnings per share guidance to a midpoint of $1.93.”
Alliant provided year-end guidance between $1.89 and $1.97/share.
The earnings announcement follows regulatory approval of two Alliant rate hikes this year. Interstate Power and Light’s interim electric base rate increase was approved in April, while WPL’s electric and gas base rate increases were implemented in January. They will boost annual revenues by $102 million and $18 million per year, respectively. Also in January, Alliant discontinued WPL’s practice of offering winter rates that are lower than summer rates.
— Amanda Durish Cook
