Alliant Energy Corporation’s LNT systematic investment plans in natural gas projects and stable returns from regulated assets should further drive its bottom line. The company’s focus on electricity generated from clean assets is likely to help serve its expanding customer base.
However, LNT faces risks related to its dependence on third-party assets for transmission activity.
Alliant Energy plans to invest substantially over the next four years to strengthen the electric and gas distribution network, as well as add natural gas and renewable assets to the generation portfolio. The company expects investments of $10.9 billion during 2025-2028. Its strong and flexible investment plans will support a 10% rate base CAGR during the same period. More than 40% of Alliant Energy’s 2025 to 2028 capital expenditure plan includes investments in wind, solar and energy storage.
Alliant Energy’s earnings prospects look attractive due to ongoing additions to electric and natural gas customer volumes. Its geographic location and favorable regulatory developments bode well for the development of wind projects and long-term earnings growth. In addition, a diverse customer mix provides stability to sales as the company does not depend on a single group for revenues.
The ongoing economic development in its service territories and increasing customer base are also creating fresh demand for utility services and boosting its performance. As the company is not experiencing any disruption in the supply chain, it is currently targeting long-term annual earnings growth in the range of 5-7%.
The company’s utility operations — IPL and WPL — use the interstate electric transmission system that they do not own or control. Rates charged to these subsidiaries are regulated by the Federal Energy Regulatory Commission. If transmission costs go up and LNT is unable to recover those costs from its customers, operational expenses are bound to rise.
A fall in the performance of the third-party electric transmission system should limit Alliant Energy’s ability to transmit electricity within its service territories and adversely impact its operations.
Cleaner energy sources are progressively being used by the U.S. electric power industry to generate electricity. The majority of companies support the advancement of new technology and strive to replace fossil fuels with renewable energy sources. In the upcoming years, they promise to offer only sustainable energy and meet the zero-emission goal.
To reap the benefits of the expanding renewable energy market, certain companies from the same industry, such as Xcel Energy Inc. XEL, PPL Corp. PPL and Dominion Energy D, are also making investments towards clean energy.
Xcel Energy aims to spend $45 billion during the 2025-2029 period. These investments are aimed at strengthening and expanding XEL’s transmission, distribution, electric generation and renewable projects.
The company is reducing coal usage and targets to lower emissions by at least 80% within 2030 and achieve carbon neutrality by 2050.
PPL aims to make investments to strengthen its grid, electricity and gas distribution and electricity transmission and expand renewable generation capacity. It expects a regulated capital investment of $20 billion during 2025-2028.
PPL plans to achieve its carbon emission target of 70% and 80% by 2035 and 2040, respectively, from its 2010 level. It will do so through the introduction of new carbon capture technology and the addition of more renewable sources to its generation portfolio. The company also aims to become carbon neutral by 2050.
Dominion Energy has a well-chalked-out long-term capital expenditure plan to strengthen and expand its infrastructure. The company plans to invest $12.1 billion in 2025 and $52.3 billion in the 2025-2029 period.
The company aims to attain net-zero carbon and methane emissions from its electric generation and natural gas infrastructure by 2050. D aims to cut emissions by 70-80% by 2035 from the level of 2005. By 2035, the company also intends to make zero and low-emitting resources accountable for 99% of its electric generation.
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