- Company name
- Alliant Energy
- Sector
- Electric & gas utility
- About
- Alliant Energy is a regulated utility holding company based in Madison, Wisconsin. Its two utilities, Interstate Power and Light in Iowa and Wisconsin Power and Light in Wisconsin, serve about 1,010,000 electric customers and 435,000 natural gas customers. The utilities generate, transmit and distribute electricity and distribute natural gas. They own wind, solar, battery storage and natural gas plants, and they plan to add more generation for new large customers such as data centers. State regulators in Iowa and Wisconsin set the rates, so earnings grow mostly with the rate base, which is the investment on which the utilities may earn a return. Alliant Energy also owns a share of American Transmission Company and some non-utility businesses.
- Thesis
- The market prices Alliant Energy as a utility that must spend a lot of money and issue new shares to serve data centers. The company expects load growth of 60% by 2031, and it has applied for large new natural gas plants in Iowa, such as a 720 MW unit in Linn County and the 1,200 MW Riverhawk Energy Center. To pay for this, it sells new shares through a $1 billion at-the-market program and issues new debt. In the first half of 2026, operating income covered interest expense only 1.5 times. Investors fear that new shares and higher interest costs lower earnings growth, and that data center load comes late. For the gap to close, three things must be true. Alliant Energy must earn 2026 EPS in the upper half of its $3.36 to $3.46 guidance, as it said in July 2026. The data centers in its area must start to use power as planned. The Iowa Utilities Commission must approve the new gas plants on terms that let the company earn a fair return, with decisions expected in Q1 and Q2 2027. The Q3 2026 report, expected in early November 2026, and the 2027 guidance give the next evidence. If these checks pass, the gap can close over the next two to four quarters. The main reason it may not close is a regulatory decision that limits the return on the new investment.
- Risks
- The building plan needs much new debt and new shares. In Q2 2026, Alliant Energy sold forward 6.55 million shares for $482 million under its at-the-market program. More shares lower the growth in EPS, and higher interest rates raise the cost of new debt.
Much of the growth depends on data centers. If these customers delay or reduce their projects, the utilities may build generation that customers do not use, and regulators may not allow the full cost in rates.
Regulators in Iowa and Wisconsin decide how much the utilities may earn. Decisions on the new gas plants are expected in 2027, and the new large load tariff in Wisconsin will set the terms for large customers.
Weather affects sales. Temperatures lowered retail electric and gas sales by about $0.03 per share in Q2 2026.
- Balance sheet
- Cash: $25M
Debt: $11.7B
Net debt: $11.7B
Interest cover: 1.5×
Debt due within 12 months: $1.1B
At June 30, 2026, debt was $11.72 billion: long-term debt of $10.64 billion, current maturities of $374 million and commercial paper of $708 million. The amount due within 12 months includes the current maturities and the commercial paper. Cash was $25 million, which is normal for a utility that uses commercial paper. Interest cover is operating income divided by interest expense for the first half of 2026, which is low because of the large building plan. In August 2026, Interstate Power and Light sold $500 million of senior debentures due 2031. Alliant Energy also has forward sale agreements for shares worth $482 million, which it has not yet settled.
As of 2026-06-30.
- Checkpoints
- Oct 30, 2026 (estimate): Q3 2026 earnings: 2026 guidance. Pending. Watch: Year-to-date results on track for the upper half of the $3.36 to $3.46 guidance pass; a cut to the guidance fails.
Mar 2027 (estimate): Iowa decision on the Linn County gas plant. Pending. Watch: Approval of the 720 MW plant on terms that allow a normal return passes; a denial or a cost cap well below the plan fails.
- Recent events
- 2026-08-21: Interstate Power and Light, a subsidiary of Alliant Energy, sold $500 million of 5.100% senior debentures due September 30, 2031. It plans to use the money to reduce commercial paper and capital under its receivables program, and for general corporate purposes.
2026-07-31: Alliant Energy's Q2 2026 quarterly report listed new steps for data centers. In April 2026, Interstate Power and Light signed an agreement with a customer that plans a data center in Iowa, with a contracted peak demand of about 370 MW. In June 2026, Wisconsin regulators approved a customer rate for a data center in Wisconsin Power and Light's area and told the utility to file a large load tariff for customers of 100 MW or more. In July 2026, Interstate Power and Light applied to build the Riverhawk Energy Center, a natural gas plant of about 1,200 MW, with a decision expected in Q2 2027.
2026-07-30: Alliant Energy reported Q2 2026 results. GAAP EPS was $0.65, compared with $0.68 a year earlier. Higher rate base at both utilities raised earnings, and higher operating, financing and depreciation costs and mild weather lowered them. The company kept its 2026 ongoing EPS guidance of $3.36 to $3.46 and said that it trends in the upper half of the range. It expects load growth of 60% by 2031.