Alliant Energy Earnings Call Nuggets: New Base and Cash Benefit in 2015

Alliant Energy Corporation (NYSE:LNT) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

New Base

John Ali – Decade Capital: I apologize, but I missed the first few minutes of the call. I was wondering your CAGR is 5% to 7%, what is the new base and how many years does that extend to?

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Patricia Kampling – Chairman, President and CEO: Sure. At the beginning of the call, we mentioned that the new base would be 2012 non-GAAP with the normalized earnings. So that number is $2.93 per share and we should go out five years and its five years.

Cash Benefit in 2015

Brian Russo – Ladenburg Thalmann: I apologize, but if you could just run through the impacts of bonus, depreciation, again at the two utilities that would be helpful?

Thomas L. Hanson – VP and CFO: Yeah, Brian, we are going to see the cash benefit in 2015 and that’s because of our NOL position, we however will see a slight rate base reduction in 2014 and 2015 of $20 million and $60 million. So, if we just look at that in isolation that’s what we would see in terms of the rate base reduction compared to the information we’ve previously shared.

Patricia Kampling – Chairman, President and CEO: But the cash for the tax benefit of about $150 million.

Thomas L. Hanson – VP and CFO: We will be receiving that in 2015.

Brian Russo – Ladenburg Thalmann: So, $150 million of cash benefit in the cash flow statement in 2015, and then $20 million and $60 million in ’14, ’15 rate base adjustments are split evenly between the two utilities?

Thomas L. Hanson – VP and CFO: That is correct.

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Brian Russo – Ladenburg Thalmann: So, when we look at your total rate base of $5.6 billion or so, this bonus depreciation seems to be fairly immaterial.

Thomas L. Hanson – VP and CFO: That is correct.

Patricia Kampling – Chairman, President and CEO: That’s correct Brian.

Brian Russo – Ladenburg Thalmann: Then the Marshalltown review and approval process. Could you just comment on the RFP process that I think has concluded?

Patricia Kampling – Chairman, President and CEO: There is two RFPs processes, so I apologize if I go back in history a little bit. We recently did an RFP process to see if there was a better alternative to the market Marshalltown facility, and that’s when the DAAC proposal was put on the table as well. There is another RFP process going on right now for the construction of the facilities, and that’s still underway.

Brian Russo – Ladenburg Thalmann: So do we have any details on the outcome of the first RFP on that other alternatives?

Patricia Kampling – Chairman, President and CEO: Yes, and that’s part of the – that will be part of the case.

Brian Russo – Ladenburg Thalmann: Okay. So, it’s not public yet.

Patricia Kampling – Chairman, President and CEO: No.

Brian Russo – Ladenburg Thalmann: Then lastly, just the IPO rate stabilization plan that you’re working on, any idea on the timing of when we might see a filing?

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Patricia Kampling – Chairman, President and CEO: No. I wish I could give you a timing at this point but we really can’t. We will be working with all the interested parties, make sure that we get a good conclusion on this. But I don’t want to commit to some time frame at this point.

Brian Russo – Ladenburg Thalmann: So maybe second half of ’13 type of filing?

Patricia Kampling – Chairman, President and CEO: It could. We can’t speculate at this point.