What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-18 compared with 2021-02-19 · 68 added, 63 removed, 357 unchanged (27% of the section changed)

18 unchanged sentences

ATC Holdco LLC holds Duke-American Transmission Company, LLC, a joint venture between Duke Energy Corporation and ATC, that owns electric transmission infrastructure in North America.

Corporate Venture Investments - includes various minority ownership interests in regional and national venture funds, including a coalition with different energy companies across the U.S., working together to help identify and research innovative products, technologies and business models within the emerging energy economy.

Non-utility Wind Farm - includes a 50% cash equity ownership interest in a 225 MW non-utility wind farm located in Oklahoma.

Sheboygan Falls Energy Facility - is a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is leased to WPL for an initial period of 20 years ending in 2025.

Travero - formerly known as Transportation, Travero owns and operates a short-line rail freight service in Iowa;

a barge, rail and truck freight terminal on the Mississippi River;

freight brokerage and logistics management services;

and a rail-served warehouse in Alliant Energy’s Big Cedar Industrial Center Mega-site in Cedar Rapids, Iowa, which is currently scheduled to open later in 2021.

Table of Cont ents

Travero - is a diversified supply chain solutions company, including a short-line rail freight service in Iowa;

a Mississippi River barge, rail and truck freight terminal in Illinois;

freight brokerage services;

and a rail-served warehouse in Iowa, which began operations in 2021.

INFORMATION RELATING TO ALLIANT ENERGY ON A CONSOLIDATED BASIS

1) HUMAN CAPITAL MANAGEMENT - Our purpose to serve customers and build strong communities, as well as our values, are the foundation of our culture, guide our actions, and describe how we accomplish our strategy.

We work to attract, retain, reward and develop a diverse and qualified workforce of high-performing employees and teams because our employees and culture are critical to our strategy.

1) HUMAN CAPITAL MANAGEMENT - Alliant Energy’s core purpose is to serve customers and build strong communities.

We constantly strive to attract, retain and develop a diverse and qualified workforce of high-performing employees, and create and foster an environment of inclusion and belonging for all employees.

Employees - At December 31, 2021, Alliant Energy, IPL and WPL had the following full- and part-time employees:

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We focus on the proactive management of our safety performance.

Our comprehensive program includes leading indicators such as tracking and reporting near misses and unsafe conditions, which we believe helps prevent similar incidents from occurring elsewhere.

We also conduct internal safety assessments of our generating facilities.

We maintain executive and local safety leadership teams to establish our safety vision, strategy and priorities, as well as ensure education and recognition of employee actions that improve our safety culture.

Our comprehensive behavioral safety-based program consists of leading indicators, lagging indicators and targeted focus programs.

We utilize a formal safety management system to capture and track best practices, near misses, job site briefings, safety observations, safety conversations and any unsafe conditions.

This system provides the insights needed to help drive a positive safety culture and help ensure compliance with safety rules, processes and procedures.

We also use this system to broadly share lessons learned in support of shaping the mindsets and behaviors needed to help prevent similar events from occurring elsewhere.

Collectively, this information is used to evaluate the safety performance of the executive and management teams related to their goals, and safety metrics are factored into short-term incentive awards.

We maintain executive and local safety leadership teams to establish our safety vision, strategy and priorities, and ensure education and recognition of employee actions that improve our safety culture.

This leadership provides strong support for sustained growth of both employee and public safety programs and initiatives.

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We offer awareness campaigns, natural gas and electric public safety presentations, and free online resources and training programs and guidance to assist local emergency responders.

Total Rewards - Our market-competitive Total Rewards programs are designed to meet the varied and evolving needs of our employees and their families.

Through a variety of flexible health and wellness programs, we offer employees choice, support their financial, physical, and mental well-being, provide tools and resources to help improve or maintain their health status, and promote engagement in healthy behaviors.

Refer to “ Overview – COVID-19” in MDA for discussion of certain employee safety protocols related to COVID-19.

Total Rewards - Our market-competitive Total Rewards programs are designed to meet the varied and evolving needs of our employees.

Through a variety of health, welfare and compensation programs, we offer employees choice and control, while supporting their financial, physical, and mental well-being.

Tools and resources are provided to employees to help maintain and improve their health.

Short- and long-term incentive plans are designed with a mix of operational and financial metrics that align employees with strategic corporate and social goals.

In addition to competitive salaries and wages, our Total Rewards programs include:

• competitive short- and long-term incentive compensation;

• a 401(k) savings plan with an employer match;

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• paid time off to use for vacation, personal time, sick time, holidays, bereavement, jury duty, military leave, parental leave, maternity leave, and adoption leave;

• family care resources;

• adoption assistance;

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It is one of our Values – “Care for others:

Together we create a workplace where people feel like they belong and can use their unique backgrounds, talents and perspectives to their fullest potential.”

Together we create a workplace where people feel like they belong and can use their unique backgrounds, talents and perspectives to their fullest potential.” Alliant Energy is driven by DE&I and believes the achievement of its strategic objectives can only be achieved with a focused and engaged workforce.

Alliant Energy’s corporate officers group currently has approximately 40% gender diversity and 27% ethnic diversity.

Our efforts to create a diverse and inclusive workforce include:

• learning opportunities for employees, such as inviting employees to participate in area diversity summits and supporting company-wide listening sessions, speakers and programs;

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• Employee Resource Groups that foster a diverse and inclusive workplace that supports employee well-being while promoting professional development and enhancing community relationships;

• a DE&I Leadership Team that partners with the Human Resources recruiting department and hiring managers to attract more diverse applicants.

• a DE&I Leadership Team that partners with the Human Resources recruiting department and hiring managers to attract more diverse applicants that represent the diversity of the communities we serve.

Our DE&I initiatives also include a focus on building a diverse Board of Directors.

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• received a perfect score on the Corporate Equality Index administered by the Human Rights Campaign Foundation to benchmark LGBTQ+ rights, policies and practices;

• held a Day of Understanding where executives met with employees and held conversations about unconscious bias;

• selected for the 2021 Bloomberg Gender-Equality Index;

Alliant Energy’s short-term incentive compensation plan includes diversity metrics to drive leadership accountability for efforts to advance a diverse and inclusive culture.

• held a Day of Understanding where executives met with employees and held conversations around creating a culture of belonging where employees can do the best work of their lives.

Alliant Energy’s short- and long-term incentive compensation plans include diversity metrics to drive leadership accountability for efforts to advance a diverse and inclusive culture.

Talent Development and Workforce Readiness - We support employees in the growth of their careers through several training opportunities and development programs.

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Corporate Services, IPL and WPL are subject to regulation by FERC under the Public Utility Holding Company Act of 2005 for various matters including, but not limited to, affiliate transactions, public utility mergers, acquisitions and dispositions, and books, records and accounting requirements.

Energy Policy Act - The Energy Policy Act requires creation of an Electric Reliability Organization to provide oversight by FERC.

Energy Policy Act of 2005 - The Energy Policy Act of 2005 requires creation of an Electric Reliability Organization to provide oversight by FERC.

FERC designated North American Electric Reliability Corporation as the overarching Electric Reliability Organization.

Midwest Reliability Organization, which is a regional member of North American Electric Reliability Corporation, has direct responsibility for mandatory electric reliability standards for IPL and WPL.

Federal Power Act - FERC also has jurisdiction, under the Federal Power Act, over certain electric utility facilities and operations, electric wholesale and transmission rates, dividend payments, issuance of IPL’s securities, and accounting practices of Corporate Services, IPL and WPL.

Electric Wholesale Rates - IPL and WPL receive wholesale electric market-based rate authority from FERC.

Market-based rate authorization allows for wholesale sales of electricity within the MISO market and in transactions directly with third parties, based on the market value of the transactions.

Federal Power Act of 1935 - FERC also has jurisdiction, under the Federal Power Act of 1935, over certain electric utility facilities and operations, electric wholesale sales, interstate electric transmission rates, dividend payments, issuance of IPL’s securities, and accounting practices of Corporate Services, IPL and WPL.

Electric Wholesale Rates - FERC has authority over IPL's and WPL's wholesale electric market-based rates.

Market-based rate authorization allows for wholesale sales of electricity within FERC’s wholesale markets, including the MISO market, and in transactions directly with third parties, based on the market value of the transactions.

IPL and WPL also have FERC-approved cost of service formula-based rates related to the provision of firm full- and partial-requirement wholesale electric sales, which allow for true-ups to actual costs, including fuel costs.

Electric Transmission Rates - FERC regulates the rates charged for electric transmission facilities used in interstate commerce.

IPL and WPL do not own or operate electric transmission facilities;

IPL and WPL do not own or operate FERC-regulated electric transmission facilities;

however, both IPL and WPL pay for the use of the interstate electric transmission system based upon FERC-regulated rates.

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Under the Natural Gas Act, FERC has authority over certain natural gas facilities and operations of IPL and WPL.

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IUB - IPL is subject to regulation by the IUB for various matters including, but not limited to, retail utility rates and standards of service, accounting requirements, sales of assets with values that exceed 3% of IPL’s revenues, and approval of the location and construction of EGUs.

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The historical test periods may be adjusted for certain known and measurable changes to capital investments, cost of capital and operating and maintenance expenses consistent with IUB rules and regulations.

Forward-looking test periods must follow established regulatory principles as applied to the forecasted information and include a requirement for a subsequent proceeding review after the close of the forward-looking test period to evaluate whether actual costs and revenue were reasonably consistent with the forward-looking test period.

In June 2021, the IUB adopted new rules that establish minimum filing requirements for rate reviews using a forward-looking test period, and a related subsequent proceeding review after the close of the forward-looking test period.

The rules provide that in the subsequent proceeding review, a utility’s actual costs and revenues will be presumed to be reasonably consistent with the forward-looking test period if the utility’s actual return on common equity falls within a standard of reasonableness of 50 basis points above to 50 basis points below the authorized return on common equity.

If the utility’s actual return on common equity is outside of this range, future rates could be adjusted.

Energy Efficiency - In accordance with Iowa law, IPL is required to file an EEP every five years with the IUB.

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Advance Rate-making Principles - Iowa law provides Iowa utilities with rate-making principles prior to making certain generation investments in Iowa.

As a result, IPL may file for, and the IUB must render a decision on, rate-making principles for certain new EGUs located in Iowa, including any alternative energy production facility (such as a wind or solar facility), combined-cycle natural gas-fired EGU, and certain base-load EGUs with a nameplate generating capacity of 300 MW or more (such as nuclear or coal-fired generation).

Advance rate-making principles are also available for the repowering of an alternative energy production facility or certain significant alterations of an existing EGU.

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Currently, WPL is required to defer a portion of its earnings if its annual regulatory return on common equity exceeds certain levels.

Through 2023, any such deferral is required to be offset against the remaining net book value of Edgewater Unit 5, which is currently expected to be retired by early 2023.

Public Benefits - WPL contributes 1.2% of its annual retail utility revenues to help fund Focus on Energy, Wisconsin’s state-wide energy efficiency and renewable energy resource program.

In addition, WPL contributes to a program that provides assistance to income-eligible residents in Wisconsin.

These contributions are recovered from customers through a bill surcharge of up to 3% of customers’ utilities bills.

These contributions are recovered from customers through a monthly bill surcharge of the lesser of 3% of customers’ utilities bills or $750.

Refer to Note 1(g) for discussion of the recovery of these costs from WPL’s retail electric and gas customers.

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In addition, WPL’s ownership and operation of EGUs (including those located outside the state of Wisconsin) to serve Wisconsin customers are subject to retail utility rate regulation by the PSCW.

Table of Cont ents

Electric Generating Unit Upgrades and Electric Distribution Projects - A CA application is required to be filed with the PSCW for construction approval of any additions to EGUs, including environmental controls projects, as well as electric distribution projects, with estimated project costs of $11.9 million or more.

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There is currently significant regulatory uncertainty with respect to environmental rules and regulations discussed below.

Given the dynamic nature of environmental regulations and other related regulatory requirements, Alliant Energy, IPL and WPL have compliance plans to address these environmental obligations.

Given the evolving nature of environmental regulations and other related regulatory requirements, Alliant Energy, IPL and WPL develop and periodically update their compliance plans to address these environmental obligations.

Prudent expenditures incurred by IPL and WPL to comply with environmental requirements are eligible to be recovered in rates from their customers.

The following are major environmental matters that could potentially have a significant impact on financial condition and results of operations.

Climate Change and Greenhouse Gases Regulations - There is continued deliberation on the public policy that the U.S.

should adopt to address climate change, including assessment of both domestic actions and international efforts.

In 2007, the Supreme Court provided direction on the EPA’s authority to regulate GHG and ruled that these emissions are covered by the CAA.

In 2009, the EPA issued a ruling that found GHG emissions contribute to climate change, and therefore, threaten public health and welfare, which was the prerequisite for implementing carbon reduction standards under the CAA.

Climate Change and Greenhouse Gas Regulations - In 2007, the Supreme Court provided direction on the EPA’s authority to regulate GHG and ruled that these emissions are covered by the CAA.

While the EPA’s rules to regulate GHG issued under the authority of the CAA remain subject to further review, growing emphasis on climate change and evolving energy technologies are driving efforts to decarbonize the environment through voluntary emissions reductions.

The primary GHG directly emitted from Alliant Energy’s utility operations is CO2 from the combustion of fossil fuels at their larger EGUs.

Clean Air Act Section 111(d) - In 2015, the EPA published final standards under Section 111(d) of the CAA, referred to as the Clean Power Plan, to reduce CO2 emissions from existing fossil-fueled EGUs.

In July 2019, the EPA published the final Affordable Clean Energy rule, which repealed the Clean Power Plan effective September 6, 2019.

The Affordable Clean Energy rule established emission guidelines for states to develop plans by July 2022 to reduce CO2 emissions from existing coal-fired EGUs.

In January 2021, the U.S.

Court of Appeals for the District of Columbia Circuit vacated the Affordable Clean Energy rule and remanded the rule back to the EPA for reconsideration.

Clean Air Act Section 111(d) - In 2015, the EPA issued the Clean Power Plan under Section 111(d) of the CAA to reduce CO2 emissions from existing fossil-fueled EGUs through broad electricity system-wide measures.

This was replaced by the Affordable Clean Energy rule in 2019, to reduce CO2 emissions from existing coal-fueled EGUs through heat rate improvements.

In 2021, the U.S.

Court of Appeals for the District of Columbia Circuit vacated and remanded the Affordable Clean Energy rule to the EPA for reconsideration.

The EPA is working on a new set of Section 111(d) emission guidelines for states to implement Best System of Emission Reduction standards for GHG emissions from existing fossil-fueled EGUs, and has stated that it intends to issue a proposed rule in 2022 and a final rule in 2023, although such a timeline cannot be predicted with certainty.

In addition, the Supreme Court granted review of appeals regarding the extent of the EPA’s authority under Section 111(d) to regulate GHG emissions, with a decision anticipated by June 2022.

Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these matters.

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Marshalltown and West Riverside are subject to the EPA’s Section 111(b) regulation and have been designed to achieve compliance with these standards.

Litigation related to Section 111(b) is suspended while the EPA revises Section 111(b), and Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these standards.

In January 2021, the EPA published a final rule establishing that EGUs are a significant source of GHG and reaffirming that CO2 emissions from EGUs can be regulated under Section 111 of the CAA.

The EPA is reviewing the Section 111(b) standards, and has stated it intends to issue a proposed rule in 2022 and a final rule in 2023, although a timeline cannot be predicted with certainty.

Litigation related to Section 111(b) is suspended while the EPA revises its Section 111(b) regulations, and Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these standards.

Water Quality -

Effluent Limitation Guidelines - In 2015, the EPA published final effluent limitation guidelines, which required changes to discharge limits for wastewater from certain IPL and WPL steam EGUs.

In December 2020, revised effluent limitation guidelines became effective, which incorporated flexibility to the 2015 rule, including a new subcategory for coal-fired EGUs that will be retired or converted to no longer burn coal before 2028.

In 2020, revised effluent limitation guidelines (2020 Reconsideration Rule) became effective, which incorporated flexibility to the 2015 rule, including a new subcategory for coal-fired EGUs that will be retired or converted to no longer burn coal before 2028.

Compliance for existing steam-electric generating facilities is determined by each facility’s wastewater discharge permit and will generally be required by December 31, 2025.

Projects required for compliance are facility-specific.

Estimated capital expenditures to comply with the December 2020 guidelines for 2021 through 2024 are included in the “Other Generation” line in the construction and acquisition expenditures table in “ Liquidity and Capital Resources ” in MDA.

In January 2021, the new Presidential Administration issued an Executive Order requiring the review and possible revision of environmental regulations issued during the prior Administration.

Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of the January 2021 Executive Order.

Estimated capital expenditures to comply with the 2020 Reconsideration Rule for 2022 through 2025 are included in the “Other Generation” line in the construction and acquisition expenditures table in “ Liquidity and Capital Resources ” in MDA.

In January 2021, the current Presidential Administration issued an Executive Order requiring the review and possible revision of environmental regulations issued during the prior Administration.

As a result, the EPA will undertake a supplemental rule-making to revise the 2020 Reconsideration Rule, and has stated that it intends to issue a proposed rule in 2022.

As part of the rule-making process, the EPA is expected to determine whether more stringent limitations and standards are appropriate.

The 2020 Reconsideration Rule will remain in effect while the EPA undertakes this new rule-making.

Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of the anticipated supplemental rule-making.

Land and Solid Waste -

Coal Combustion Residuals Rule - The final CCR Rule, which regulates CCR as a non-hazardous waste, became effective in 2015.

Coal Combustion Residuals Rule - The CCR Rule, which became effective in 2015, regulates CCR as a non-hazardous waste.

IPL and WPL have coal-fired EGUs with coal ash ponds and active CCR landfills that are impacted by this rule.

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Litigation related to the CCR Rule remains on-going and has resulted in various proposed rule updates.

Compliance obligations associated with the CCR Rule may be subject to change due to future EPA CCR Rule updates, on-going litigation related to the CCR Rule, and any actions taken to-date that may be challenged.

Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these updates.

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IPL and WPL currently exceed their respective renewable energy standards requirements.

3) STRATEGY - Refer to “ Overview ” in MDA for discussion of Alliant Energy’s strategy, which supports its mission to deliver energy solutions and exceptional service that its customers and communities count on - safely, efficiently and responsibly.

INFORMATION RELATING TO UTILITY OPERATIONS

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Electric Supply - Alliant Energy, IPL and WPL have met, and expect to continue meeting, customer demand of electricity through a mix of electric supply, including owned EGUs, PPAs and additional purchases from wholesale energy markets.

Alliant Energy expects its mix of electric supply to change in the next several years with IPL’s and WPL’s planned solar generation and the proposed retirement and/or fuel switching of various EGUs, as well as the potential sale of partial interests in West Riverside to neighboring utilities.

Long-term generation plans are intended to meet customer demand, reduce air emissions and water impacts, reduce reliance on wholesale market purchases and mitigate the impacts of future EGU

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retirements while maintaining compliance with long-term electric demand planning reserve margins, renewable energy standards established by regulators and other various requirements.

Alliant Energy expects its mix of electric supply to change in the next several years with its planned transition away from coal-fired EGUs by incorporating renewable energy such as solar generation, distributed energy resources including community solar and energy storage systems, as well as the actual and potential sale of partial interests in West Riverside to neighboring utilities.

Long-term generation plans are intended to meet customer demand, reduce air emissions and water impacts, reduce reliance on wholesale market purchases and mitigate the impacts of future EGU retirements while maintaining compliance with long-term electric demand planning reserve margins, renewable energy standards established by regulators and other various requirements.

Electric Demand Planning Reserve Margin - IPL and WPL are required to maintain a planning reserve margin above their load at the time of the MISO-wide peak to ensure reliability of electric service to their customers.

The required installed capacity reserve margin is 17.9% and the required unforced capacity reserve margin is 8.7% for the June 1, 2022 through May 31, 2023 MISO planning year.

IPL and WPL currently have adequate capacity to meet such MISO planning reserve margin requirements.

IPL and WPL utilize accredited capacity from EGUs they own, and have rights to through PPAs, to meet a substantial portion of their current MISO planning reserve margin requirements and periodically rely on short-term market capacity purchases to supplement the accredited capacity from such EGUs.

Generation Fuel Supply - IPL and WPL own a portfolio of EGUs located in Iowa, Wisconsin and Minnesota with a diversified fuel mix that includes natural gas, renewable resources and coal.

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Refer to Note 1(g) for discussion of a transmission cost rider utilized by IPL for recovery of its electric transmission service expense, and discussion of WPL’s electric transmission service expense, which is recovered from its retail electric customers through changes in base rates determined during periodic rate proceedings.

Refer to Note 17( g ) for discussion of MISO transmission owner return on equity complaints.

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MISO Markets - IPL and WPL are members of MISO, a FERC-approved Regional Transmission Organization, which is responsible for monitoring and ensuring equal access to the transmission system in their footprint.

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In order for an EGU to receive accredited capacity, it must meet MISO capacity accreditation requirements, which can include satisfying transmission requirements identified in its interconnection agreement prior to the MISO planning year.

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In November 2021, MISO issued proposals to change its methodology for procuring capacity in the energy market effective with the 2023/2024 MISO Planning Year, as a result of changes in the overall generation resource mix due to the shift to renewable generation and the retirement of certain fossil-fueled generation.

MISO proposes to change the capacity construct from the current Summer-based annual construct to four distinct seasons to help ensure the continued reliability of the electric transmission grid.

MISO’s proposal includes establishing planning reserve margin requirements for all market participants on a seasonal basis and determining a seasonal accredited capacity value for certain classes of generating resources.

These changes, if implemented, may require IPL and WPL to adjust their current resource plans, and may result in limited accredited capacity for solar generation during the Winter season and higher accredited capacity for wind generation during the non-Summer seasons.

IPL and WPL may need to develop and/or acquire additional resources in order to comply with the new methodology, as well as procure capacity in the market until the new resources are placed in service and accredited by MISO.

Alliant Energy, IPL and WPL are currently unable to predict with certainty the future outcome or impact of these matters.

Electric Operating Information - Alliant Energy 2021 2020 2019

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Purchased power:

Nuclear 2,347 3,748 3,538

Wind (b) 3,529 3,683 2,383

Nuclear — 2,347 3,748

Other (b) 2,642 2,521 3,264

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(b) All or some of the renewable energy attributes associated with generation from these sources may be used in future years to comply with renewable energy standards or other regulatory requirements.

Table of Cont ents

Electric Operating Information IPL WPL

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Purchased power:

Nuclear 2,347 3,748 3,538 N/A N/A N/A

Wind (b) 2,285 2,359 1,788 1,244 1,324 595

Nuclear — 2,347 3,748 N/A N/A N/A

Other (b) 1,166 391 326 1,476 2,130 2,938

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Seasonality - Gas sales follow a seasonal pattern with an annual base-load of gas and a large heating peak occurring during the winter season.

Natural gas obtained from producers, marketers and brokers, as well as gas in storage, is utilized to meet

Table of Cont ents

the peak heating season requirements.

Natural gas obtained from producers, marketers and brokers, as well as gas in storage, is utilized to meet the peak heating season requirements.

Storage contracts generally allow IPL and WPL to purchase gas in the summer and inject it into underground storage fields, and remove it from storage fields in the winter to deliver to customers.

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Purchased gas costs per Dth sold to retail customers $5.29 $3.67 $3.89

Table of Cont ents

Gas Operating Information IPL WPL

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business