Summer heat kind to Alliant earnings

The exceptionally hot, dry summer may seem cruel to a lot of Midwesterners, but it's been kind to Alliant Energy's earnings.

Weather factors added about six cents per share to the second-quarter earnings of the Madison, Wis.-based energy company and parent of Interstate Power and Light Co. in Iowa.

Alliant's net profit from continuing operation rose 30.2 percent in the quarter ending June 30. The company reported net profit of $65.5 million, or 60 cents per share, up from $50.3 million, or 45 cents per share, in the year-earlier quarter.

Operating revenues dropped 3 percent, but operating expenses fell by an even greater 9 percent. The company beat analysts projections, which had averaged profits of 46 cents per share.

"Second quarter non-GAAP results were above our expectations, largely due to weather-related sales," said Patricia Kampling, Alliant Energy chairman, president and chief operating officer. "With the warmer July weather, we are forecasting 2012 earnings toward the top end of our 2012 earnings guidance range."

The range Kampling discussed was a fairly wide one. Alliant had projected that fiscal year earnings could fall anywhere between $2.75 per share and $3.05 per share.

In Iowa, June weather was the 28th warmest and 21st driest in 140 years of records. Temperatures averaged 71.6 degrees, or 1.9 degrees above normal.

Cooling degree days in June - a measure of the amount of air conditioning needed to achieve a normal comfort level - averaged 36 percent greater than June 20011 and 35 percent more than a normal year.

Near-record heat in July is expected to be an even greater boon to Alliant earnings. Electric demand surges during hot spells due to increased power load for air conditioners, fans and water pumps.