Cold weather boosts Alliant Energy profit

While many companies have been citing the negative impacts of the severe cold on their first-quarter earnings, Alliant Energy reported the weather enhanced its earnings.

The Madison, Wis.-based corporate parent of Interstate Power and Light in Cedar Rapids posted net income of $108 million, or 97 cents per share, in the first quarter, up sharply from $72.9 million, or 63 cents per share, in the same period of 2013. Operating revenue increased to $952.8 million in the quarter that ended on March 31 from $859.6 million in the same quarter last year.

Alliant Energy attributed 12 cents per share of earnings to the impact of higher electric and natural gas sales due to unseasonably cold weather in Iowa and Wisconsin. That represents a 10-cents-per-share increase from the first quarter of 2013.

'We anticipated higher electric earnings from the expiration of the Duane Arnold Energy Center and Kewaunee Nuclear Power Plant purchased power agreements in this quarter,' said Patricia Kampling, Alliant Energy chairwoman, president and CEO. 'In addition, the unexpected extremely cold temperatures increased earnings from both electric and gas sales.

'We will continue to monitor sales to determine if the weather (related) sales growth experienced in the last quarter of 2013 and the first quarter of this year represent a sustainable growth trend.'

With the increase in first-quarter earnings due to higher electric and natural gas sales, Kampling said the company's full-year profit is projected near the high end of the company's earnings guidance range of $3.20 to $3.55 per share.

The expiration of Interstate Power and Light's purchased power agreement with NextEra Energy, majority owner of the Duane Arnold Energy Center near Palo, reduced capacity charges by 13 cents per share in the quarter.

Kampling, in a Friday conference call with analysts, said industrial customers should start to see credits on their electric bills due to a settlement agreement that calls for a freeze of retail electric base rates for Iowa customers through 2016.

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