Warm winter cools Alliant revenue

Warmer-than-normal temperatures in the first quarter of 2016 gave Alliant Energy customers a break on their heating bills, but had a negative impact on the company's profit and revenue.

The Madison, Wis.-based company, corporate parent of Interstate Power and Light Co. in Cedar Rapids, reported first-quarter net income of $96.5 million, or 86 cents per share, compared with $96.6 million, or 87 cents per share, for the same period last year.

Operating revenue slipped to $843.8 million for the three-month period that ended on March 31 from $897.4 million in the comparable period of 2015.

'First quarter temperatures, as measured by heating degree days, were approximately 10 percent warmer than normal in our service territory, resulting in 5 cents per share of lower earnings,” said Patricia Kampling, Alliant Energy chairwoman, president and CEO, in a news release.

'With the exception of the mild weather, results were in line with our expectations, allowing us to reaffirm our 2016 earnings guidance.”

Alliant Energy said lower earnings per share were partially offset by a higher allowance for funds used during construction projects and lower retail electric customer billing credits at Interstate Power & Light, and lower energy efficiency cost recovery amortizations at Wisconsin Power & Light.

Kampling, in a conference call with analysts, said construction of the Marshalltown natural gas fired generating facility is progressing well and is about 73 percent complete. Total capital expenditures is anticipated to be approximately $700 million.

'Marshalltown is on time and on budget and is expected to go in service in spring 2017,” Kampling said.

She added that several new federal Environmental Protection Agency regulations are expected to impact nine of the company's generating facilities located across Iowa and Wisconsin.

Kampling said Alliant continues to invest in and purchase renewable energy.

'We own 568 megawatts of wind generation and purchased approximately 470 megawatts of energy from renewable sources,” she said. 'Our 10-year capital plan includes additional investments to meet customer energy needs.”