Alliant Energy Corporation (LNT) Q4 2022 Earnings Call Transcript

Alliant Energy Corporation (NASDAQ:LNT) Q4 2022 Earnings Conference Call February 24, 2023 10:00 AM ET

Company Participants

Susan Gille - IR Manager

John Larsen - Chair, President and CEO

Robert Durian - EVP and CFO

Conference Call Participants

Shahriar Pourreza - Guggenheim Partners

Julien Dumoulin-Smith - Bank of America

Nicholas Campanella - Credit Suisse

Andrew Weisel - Scotiabank

Alexander Mortimer - Mizuho

Ashar Khan - Verition

Operator

Good morning, and invited to Alliant Energy's Conference Call for Fourth Quarter and Year End 2022 Results. This telephone is being recorded for rebroadcast. [Operator Instructions]

I would now for illustration to move nan telephone complete to your host, Susan Gille, Investor Relations Manager astatine Alliant Energy.

Susan Gille

Good morning. I'd for illustration to convey each of you connected nan telephone and nan webcast for joining america today. We admit your participation. Joining maine connected this telephone are John Larsen, Chair, President, and CEO and Robert Durian, Executive Vice President and CFO. Following prepared remarks by John and Robert, we will person clip to return questions from nan finance community.

We issued a news merchandise past nighttime announcing Alliant Energy's 4th fourth and year-end 2022 financial results and affirmed our 2023 net guidance. This merchandise arsenic good arsenic an net position will -- which will beryllium referenced during today's telephone are disposable connected nan Investor page of our website astatine www.alliantenergy.com.

Before we begin, I request to punctual you nan remarks we make connected this telephone and our answers to your questions see forward-looking statements. These forward-looking statements are taxable to risks that could origin existent results to beryllium materially different. Those risks include, among others, matters discussed successful Alliant Energy's property merchandise issued past nighttime and successful our filings pinch nan Securities and Exchange Commission. We disclaim immoderate responsibility to update these forward-looking statements.

In addition, this position contains references to non-GAAP financial measures. The reconciliation betwixt non-GAAP and GAAP measures are provided successful nan net merchandise which is disposable connected our website.

At this point, I'll move nan telephone complete to John.

John Larsen

Thank you, Susan. Hello, everyone, and convey you for joining us. 2022 was different successful twelvemonth of coagulated operations and financial performance. This was our 13th consecutive twelvemonth of delivering results successful our 5% to 7% adjusted EPS maturation scope and nan 20th year, 2 decades straight, of consecutive dividend increases. We had 1 of our champion reliability years connected grounds pinch top-tier performance. Our upwind procreation produced nan astir upwind power successful our history, providing astir $160 cardinal of substance costs savings for our customers.

We continued our advancement towards nett zero, decreasing c dioxide by astir 40% disconnected of 2005 levels, and we kept up 2022 pinch very beardown economical improvement successful some Iowa and Wisconsin pinch complete 100 megawatts of announced load that will bring caller jobs and caller investments.

As I bespeak connected nan past year, what makes maine astir proud of Alliant Energy is nan continued dedication and work from our employees. As they fortify our relationship pinch nan customers and communities we proudly serve. In 2023, we will beryllium celebrating Alliant Energy's 25th year. I'm proud to beryllium portion of Alliant Energy. I'm proud of our team, and I'm inspired by our intent to service customers and build stronger communities. Our labor attraction connected this intent has enabled america to erstwhile again, present nan results you person travel to expect from Alliant Energy. Our intent continues to beryllium nan root of our spot and guides america done nan ever-changing dynamics, wrong our system and our industry.

I'll item a fewer areas of advancement and past move it complete to Robert to recap financial results and supply an update connected regulatory proceedings. In 2022, we proceed to execute connected our Clean Energy Blueprint by adding renewables successful nan states wherever our customers live, which allows america to put successful nan communities we served and adhd skilled national jobs and section revenues. This is different illustration of really our intent is astatine nan halfway of our strategy.

We added 250 megawatts of star astatine our Bear Creek, North Rock and Wood County Wisconsin sites, positioning america arsenic nan largest owner-operator of star procreation successful Wisconsin. We are connected way to bring into work an further 850 megawatts of utility-scale solar, by nan first half of 2024 successful Wisconsin.

We proceed to advancement our Clean Energy Blueprint successful Iowa, advancing renewables and our efforts to spot electrical lines underground, improving nan reliability of our system. And while we are not yet astatine nan conclusion of nan precocious ratemaking process successful Iowa for our star and retention projects, we proceed to travel nan well-defined steps wrong nan regulatory and procedural process to show that these projects are cost-effective and reasonable. We stay assured these projects are successful nan champion liking of our customers and will proviso nan energy, reliability and resilience, that our customers dangle on.

Another awesome occurrence communicative is nan advancement of star gardens. We are building 1 adjacent Cedar Rapids, Iowa pinch Transamerica and Aegon arsenic our main customers. And we're partnering pinch Mercury Marine successful Wisconsin to build a akin star facility. These projects thief beforehand nan sustainability objectives of our customers. And we besides usage these section investments to beforehand our attraction connected nan societal portion of ESG, providing immoderate of nan star power to partners for illustration Habitat for Humanity.

This continued attraction connected economical improvement and our customers were contributing factors, successful being named a apical inferior successful economical improvement by Site Selection magazine, for nan 4th twelvemonth successful a row. And I'm proud to opportunity that this activity besides contributed to nan precocious being awarded nan Chairman's Award for Workforce Development leadership, which is nan halfway for power workforce development's highest honor.

While we were proud to person galore recognitions this past twelvemonth for nan activity that we do successful our communities, nan nickname I'm astir proud of, focuses connected our worker experience. For nan 5th twelvemonth successful a row, we were named by nan Human Rights Campaign Foundation, arsenic nan champion spot to work. And for nan 5th twelvemonth successful a statement to Forbes database of America's champion midsized employers. And speaking pinch galore of you, 1 of nan things I'm reminded of is our beardown halfway finance thesis. That is why you take to put successful our company.

Simply put, we delivered accordant results. Our well-executed forward-thinking and elastic strategy, coupled pinch constructive regulatory jurisdictions, has been a awesome portion of our success. We not only present near-term results, but proceed to return steps to thief trim early risks and supply nan stableness investors person travel to expect from our company.

A well-executed strategy has positioned america arsenic a leader connected nan way to a clean, reliable and affordable power future. We are good positioned to quickly accommodate to a move economical situation and upwind challenges, while delivering connected investor and customer expectations. 2022 was a clear illustration of this. Our efforts to move lines underground, proceed nan advancement of star projects and beardown operations successful nan look of upwind events. While delivering coagulated results for our investors and reliable work for our customers, underscores nan elasticity of our strategy and nan dedication of nan team, I americium privileged to lead.

And speaking of dedication, I want to walk connected my appreciation to our labor that person worked done difficult conditions successful nan caller upwind arena to safely reconstruct our powerfulness to our customers.

As we move guardant successful 2023, you tin person assurance that we will proceed to return nan required action that is needed to meet our customers' needs. We convey each 1 of you for continuing to beryllium engaged successful our travel and we look guardant to connecting pinch you passim 2023.

At this time, I will now move nan telephone complete to Robert.

Robert Durian

Thanks, John. Good morning, everyone. Yesterday, we announced 2022 GAAP net of $2.73 per stock compared to $2.63 per stock successful 2021. On an adjusted basis, which excluded nan impacts of temperatures and non-recurring adjustments, our net per stock accrued 6% from 2021. Looking year-over-year, nan summation successful 2022 was driven by higher net from superior investments astatine our Wisconsin inferior and higher electrical and state margins. These favorable drivers were partially offset by higher financing and depreciation expenses.

Our divers unit customer guidelines supported nan higher electrical and state margins successful 2022. Residential temperature-normalized electrical income accrued by almost 1%, mostly owed to beardown customer growth. We besides saw higher-than-expected income from commercialized customers pinch continued betterment from COVID for respective business sectors successful our work territory.

These were offset by little business sales, chiefly owed to impermanent works shutdowns astatine immoderate of our larger customers. In 2022, we besides saw a amended than expected temperature-normalized earthy state income enabled by coagulated customer growth. The 2022 results we are sharing coming are consequence of our accordant efforts to negociate done and mitigate ongoing inflationary pressures. We're highly proud that we kept 2022 inferior operating expenses successful statement pinch 2021 and we were capable to negociate done and offset nan antagonistic impacts connected net from rising liking and substance costs.

Our activity successful 2022 accelerated strategical initiatives that will group america up for galore years to come. We invested successful economical improvement and electrification that will alteration early income growth. We updated our assets readying to maximize Inflation Reduction Act benefits, and meet nan caller MISO seasonal reliability requirements. And we accelerated exertion and automation investments to amended efficiency.

As we look to 2023, we expect operating and attraction expenses will beryllium little than 2022, continuing our inclination of level to declining O&M to alteration costs savings for our customers.

We recorded a fewer nonrecurring adjustments successful 2022. These included $0.03 per stock related to nan Iowa authorities income taxation complaint change, $0.02 per stock related to status scheme colony losses, astatine nan extremity of 2022 and $0.02 per stock related to a reserve accommodation for American Transmission Companies guidelines ROE changes.

Turning to 2023. We are positioned for different twelvemonth of accordant 5% to 7% net per stock growth. We are affirming our 2023 net guidance scope pinch a midpoint of $2.89 per share, representing a 6% summation complete 2022 adjusted earnings.

Our 2023 net drivers see net connected customer investments successful our halfway inferior business, and our continued efforts to trim costs to summation customer value. Higher depreciation and financing expenses associated pinch these investments will partially offset these affirmative drivers. Our efforts to support customer worth done making smart investments successful our early support our expertise to consistently present beardown financial results.

Other cardinal assumptions for 2023 see increasing income by astir 0.5% of 1%, led by higher income to our commercialized and business customers. And we estimate a consolidated effective taxation complaint of 1%, pinch important accumulation taxation credits generated by our ample upwind portfolio and increasing star portfolio, helping america support debased effective taxation rates for nan upcoming twelvemonth and respective much years to come. The benefits from these accumulation taxation credits are passed connected to our electrical customers to thief them negociate their bills and therefore, are mostly net neutral.

Our financing plans for 2023 see a operation of caller indebtedness supplemented pinch humble caller communal equity to finance our investments successful renewable projects and to support refinancing a $400 cardinal indebtedness maturity successful 2023. In December, we launched an At The Market aliases ATM programme arsenic our intended attack for raising up to $225 cardinal of caller communal equity passim 2023, which is successful summation to nan $25 cardinal of communal equity that we expect to raise nether our DRIP finance.

And successful January, we entered into an liking complaint switch to thief trim nan consequence of rising liking rates related to a information of our variable-rate debt. The 2023 financing scheme is driven by robust superior expenditure plans and supports our nonsubjective to support nan superior structures astatine our 2 utilities accordant pinch our astir caller regulatory decisions.

Next, I'll item this year's cardinal regulatory initiatives. Last month, we provided further grounds and grounds to nan Iowa Utilities Board and IPL's precocious remaking proceeding. This grounds and grounds further demonstrates that IPL is taking prudent actions to meet its customers' request for capacity by advancing Iowa-based star and retention projects that correspond cost-effective solutions compared to replacement options disposable successful nan market. We besides informed nan IUB that we person identified our self-developed Creston and Wever projects arsenic nan 2nd 200 megawatts of star products, successful summation to nan 200 megawatts build transportation star projects astatine nan Duane Arnold site. To date, we've provided each nan accusation requested by nan IUB demonstrating that these projects are successful nan champion liking of our customers.

The IUB's determination this week to region nan precocious complaint making process is procedural. We are moving done some nan regulatory and judicial processes successful parallel, and pursuing nan well-defined process to move these projects forward. Next, we expect nan IUB to record a consequence pinch nan District Court successful early March. We are assured these projects will supply sizeable customer benefits, including reliability and resiliency and stay committed to executing these projects while we await nan IUB's last rule.

In Wisconsin, we are awaiting a determination from nan PSCW connected WEC Energy's acquisition of a information of our West Riverside earthy state generating facility. We are besides anticipating decisions from nan PSCW successful 2023 connected WPL's petition for 274 megawatts of artillery storage. 175 megawatts of these artillery projects would complement 2 of WPL star projects and 99 megawatts of nan artillery projects will beryllium located by our Edgewater Generating Station to return advantage of nan existing infrastructure and transmission authorities astatine that location.

Finally, we scheme connected filing a normal biennial electrical and state complaint reappraisal successful Wisconsin for trial years 2024 and 2025 successful nan 2nd quarter. In some states, we are besides anticipating making filings to support further resources for increasing dispatchable procreation capacity, needed to amended seasonal reliability and meet customer power needs. As always, we proceed to move guardant proposing power investments that support some sustainability and resiliency, keeping our customers' needs apical of mind.

I will reason pinch a recap of nan salient authorities enacted this past twelvemonth that has group america up for a coagulated early financial success, while providing important customer costs benefits. Alliant Energy is simply a beardown beneficiary of nan Inflation Reduction Act. As it straight supports our strategical plans to beforehand cleaner power for our customers, while providing important customer and investor benefits. The IRA enables further complaint guidelines opportunities while besides lowering customer costs pinch a displacement from taxation equity to afloat ownership for our planned star and artillery projects.

In our November 2022 refreshed superior expenditure plan, we incorporated nan benefits of nan IRA on pinch nan changes from nan MISO seasonal construct, which provides visibility to our planned 8% complaint guidelines maturation done 2026.

Another cardinal constituent of nan IRA improves our rate flows, done nan expertise to transportation renewable taxation credits starting pinch those generated successful 2023. With a ample information of upwind and star projects, we expect that we'll beryllium capable to transportation up to astir $150 cardinal of 2023 taxation credits. As we proceed to adhd much star and artillery projects complete nan adjacent fewer years, nan magnitude of yearly transferable credits will proceed to grow. We expect this to positively effect our in installments metrics done acceleration of rate and simplification successful early outer financing needs and to little our customer costs by reducing sharing costs connected taxation in installments carryforwards.

The IRA will supply important benefits for our customers and investors pinch nary notable downsides arsenic we expect to stay exempt from nan replacement minimum taxation for nan foreseeable future. And finally, we besides expect to use from caller authorities taxation authorities enacted successful Iowa successful 2022, which is lowering authorities firm taxation rates, enabling america to walk millions of dollars of yearly savings onto our customers successful Iowa for decades into nan future. We admit your continued support of our institution and look guardant to gathering pinch galore of you successful nan coming months.

At this time, I'll move nan telephone backmost complete to nan usability to facilitate nan question-and-answer session.

Question-and-Answer Session

Operator

Thank you, Mr. Durian. At this time, nan institution will unfastened nan telephone to questions from members of nan finance community. [Operator Instructions] Your first mobility comes from nan statement of Shar Pourreza from Guggenheim Partners. Please spell ahead.

Shahriar Pourreza

Hey. Good morning, guys.

John Larsen

Good morning, Shar.

Shahriar Pourreza

Good morning. So, conscionable 2 speedy ones here. I conjecture nan first 1 is, arsenic we benignant of look astatine -- look up to nan complaint lawsuit filing successful Wisconsin, you guys built up a important substance deferral past twelvemonth astatine WPL. How should we beryllium reasoning about, I guess, your regulatory pathways to spreading this out, and much broadly, I conjecture really should we beryllium reasoning astir nan full complaint increases you're targeting, i.e., is location a double-digit guardrail here? Thanks.

Robert Durian

Yeah, acknowledgment Shar. This is Robert. So deliberation of those will beryllium abstracted proceedings. So we'll spell done nan process pinch nan 2022 substance costs, validating nan prudency of those costs. And past astir apt starting possibly moreover later this year, nan betterment process of those costs.

Regarding nan complaint lawsuit successful Wisconsin, deliberation of that arsenic a abstracted process. Most likely, we'll record that sometime successful early 2nd quarter. And we'll beryllium identifying what those recoveries for really, what I would opportunity is very transparent complaint guidelines additions that we've been signaling to nan committee for immoderate time. That complaint lawsuit is mostly going beryllium centered astir nan star projects, nan 1,100 megawatts that they've been talking about, particularly moving from taxation equity to afloat ownership.

So that connected apical of nan artillery projects that I mentioned successful my prepared remarks, are going to beryllium nan cardinal complaint guidelines drivers. And truthful that is going to beryllium good transparent pinch nan committee and we deliberation that will spell complete beautiful well. As acold arsenic nan increases for customers' bills, we're targeting single-digit percentages for 2024 and 2025 erstwhile you facet successful each of those pieces, including what we spot is immoderate bully benefits, arsenic acold arsenic substance costs reductions from those star projects will beryllium putting into work arsenic good arsenic nan taxation benefits.

Shahriar Pourreza

Okay, perfect. The past constituent was what I was trying to get at. And past conscionable I guess, possibly a acquainted mobility astatine this point, but immoderate benignant of incremental clarity aliases thoughts connected really we should beryllium reasoning astir nan equity needs station 2023, arsenic you activity done nan rate travel impacts of nan IRA? And are you still targeting astir $100 cardinal to $200 cardinal of rate travel benefits from nan ITC PTCs?

John Larsen

Yeah. I deliberation you've sewage nan number right, Shar connected nan -- connected nan IRA benefits. So, I deliberation that's -- it really hasn't changed a full lot. The 1 point I'd adhd is, fixed our continued attraction connected star and renewables, we do deliberation we'll beryllium 1 of nan early adopters and beneficiaries of nan IRA pinch nan projects we person successful formation correct now.

Shahriar Pourreza

Okay, perfect. That was bully and simple. Appreciate it, guys.

John Larsen

Yeah. Thanks, Shar.

Operator

Thank you. Your adjacent mobility comes from nan statement of Julien Dumoulin-Smith from Bank of America. Please spell ahead.

Julien Dumoulin-Smith

Hey, bully greeting to you. Hope you guys are well. Thank you for nan time. Appreciate it. Perhaps conscionable picking up wherever Shar near off, conscionable a small spot further if I tin for nan liking of it. On Columbia and nan substance business there, really are you managing that effect connected Wisconsin complaint payers, and possibly much specifically, really are you managing ember supplies coming considering nan backdrop? Just benignant of wherever do we guidelines today? I mean, are we mostly done immoderate of these issues aliases what's nan latest, if you will?

John Larsen

Yeah. Maybe I'll return nan ember proviso part. We've done a batch of activity connected a number of fronts successful 2022, Shar, and moreover a spot up of that connected nan ember supply. So, we consciousness successful very bully style arsenic we spell guardant connected nan ember proviso and possibly I'll fto Robert if you want to talk a small spot astir -- much connected nan substance part.

Robert Durian

Yeah, Julien, convey you for that. We're looking astatine a bunch of different options correct now arsenic acold arsenic spreading those substance costs recoveries complete aggregate years, really to thief arsenic I indicated before, negociate nan customer bills to reasonable levels arsenic acold arsenic increases complete nan adjacent mates of years.

Julien Dumoulin-Smith

Got it. Okay. Fair enough. I appreciate. Just talk to america a small spot astir nan halfway challenge, nan determination to create benignant of a parallel pathway present successful pursuing immoderate grade of certainty connected that construct, if you will, conscionable nan strategy, right? Typically, we spot these kinds of much nuanced issues proceed to stay wrong nan confines of regulatory processes. Maybe that's nan measurement I'd framework it.

Robert Durian

Yeah, erstwhile we deliberation astir really we're approaching that aliases possibly talk a small spot astir nan procedures that we person been done since nan past clip we talked successful nan -- successful nan 3rd 4th call. So, successful December of 2022, nan IUB did assistance america nan authority to move -- fundamentally reconsider nan 200 megawatts of star astatine nan Duane Arnold sites. But they did not let america to reconsider nan 2nd 200 megawatts of solar. Really what they were looking for location is immoderate much circumstantial specifications connected nan location of nan projects that hadn't been identified yet.

And truthful erstwhile we took nan opportunity past successful January to do is supply each nan accusation nan IUB was requesting, including grounds that now demonstrates a beautiful broad grounds that shows that our projects are nan astir costs effective and reasonable solutions for nan customers, erstwhile you comparison them to immoderate of nan different replacement sources of proviso that are available.

As portion of that process, we really didn't person a pathway guardant for nan 2nd 200 megawatts of star aliases 75 megawatts of battery. So we revenge a judicial reappraisal to let america to move that forward, and proceed to advancement that arsenic acold arsenic nan opportunity for nan beforehand remaking principles. So arsenic portion of benignant of nan astir caller developments pinch that earlier this week, nan IUB issued an bid really causing nan determination to fto nan accepted process to move forward, and we expect nan IUB -- we'll beryllium making a filing aliases filing immoderate accusation pinch nan courts, astir apt by nan first portion of March and aft which, past we'll astir apt beryllium making immoderate -- besides immoderate filings connected that. And I benignant of deliberation of these, arsenic each procedural steps to really let america to proceed to move guardant pinch nan process to beryllium capable to get those precocious banking principles.

I deliberation it's really important for america to item that we stay committed to these projects. We deliberation they're awesome projects for our customers and they're very costs effective. So we're assured successful our expertise to move guardant pinch them, but we person to spell done these procedural steps to really let america nan opportunity to person those precocious complaint purchases.

Julien Dumoulin-Smith

Awesome. Alright, convey you, guys, very much. And past conscionable quickly adjacent complaint lawsuit successful Iowa, conscionable really does it fresh successful here, if you will, if there's immoderate information astir that?

John Larsen

Yes, Julien, we signaled by nan first half of 2024. But deliberation of it arsenic nan timing pinch nan adjacent complaint lawsuit is going to beryllium astir our adjacent CapEx that we have, and Robert talked astir that pinch solar. Right now, nan existent schedule of those star projects are successful work by extremity of 2024. So if you deliberation of those arsenic tied together, but we'll tighten up that clip framework arsenic nan twelvemonth progresses.

Julien Dumoulin-Smith

Excellent guys. Thank you. Good luck, alright. Thank you for nan time.

John Larsen

Yeah. Thanks, Julien.

Operator

Thank you. Your adjacent mobility comes from nan statement of Nicholas Campanella from Credit Suisse. Please spell ahead.

Nicholas Campanella

Hey, everyone. Good morning. Thanks for taking my question. Happy Friday. So tin you conscionable -- I conscionable wanted to necktie disconnected nan almanac here. Can you conscionable springiness america a consciousness of really agelong nan judicial process lasts earlier nan precocious ratemaking docket will resume, essentially?

Robert Durian

Yes. Nick, this is Robert. So there's nary definitive clip framework regarding nan judicial process, but we person asked for expedited reappraisal is really I'd qualify it. Largely because arsenic we proceed to move guardant pinch these projects, for illustration a batch of nan different utilities, we are seeing costs proceed to increase. So we person a desire to effort and get these in, arsenic soon arsenic imaginable to make them arsenic costs effective arsenic imaginable for our customers. But location is nary definitive clip frame, but we'll beryllium continuing to activity intimately pinch some nan IUB arsenic good arsenic nan judicial process to effort and get these done arsenic quickly arsenic possible.

Nicholas Campanella

Got it. And obviously, you person a agelong history of these RPUs providing coagulated returns for your renewables investments. I conjecture conscionable if you were to benignant of prosecute a scheme wherever you're moving immoderate of these caller investments much into that unit guidelines complaint successful a accepted -- successful a much benignant of accepted complaint filing. Is nan midpoint of your semipermanent guidance for 6% still achievable connected that strategy? Just trying to understand if it's a headwind aliases not. Thank you.

John Larsen

Yeah Nick, John here. And we're still very assured successful our 5% to 7% successful midpoint.

Nicholas Campanella

Great. And past conscionable 1 past 1 for me, is conscionable pinch each nan attraction connected deferred substance and arsenic we benignant of advancement done recovery, person you quantified really overmuch of a resistance that is connected your in installments presently and what nan betterment could be?

Robert Durian

Yes. Nick, erstwhile we look at, I'll say, AEC arsenic an full company, specifically astatine nan FFO to indebtedness metric, we are somewhat beneath nan targeted level for AEC, mostly because of nan timing of those substance costs recoveries, arsenic good arsenic immoderate further star building costs. We incurred financing on, successful 2022 arsenic a consequence of pivoting distant from a taxation equity business to afloat ownership. .

We expect those in installments metrics to amended materially erstwhile you look retired astir 12 months. As we statesman to retrieve those substance costs arsenic good arsenic we get to nan adjacent complaint lawsuit successful Wisconsin wherever we'll commencement recovering those further star costs arsenic well. So we consciousness very assured astir nan ability, for illustration I said, wrong nan adjacent 12 period model to beryllium capable to amended those metrics.

We're besides cautiously optimistic that arsenic early arsenic 2023, we mightiness beryllium capable to commencement realizing nan benefits of our taxation credits that person disposable to beryllium sold now into nan marketplace arsenic a consequence of nan IRA. So a batch of affirmative developments we spot complete nan adjacent 12 months erstwhile it comes to those in installments metrics.

Nicholas Campanella

Thanks for nan clip today.

Operator

Thank you. Your adjacent mobility comes from nan statement of Andrew Weisel from Scotiabank. Please spell ahead.

Andrew Weisel

Hey, bully morning, everybody.

John Larsen

Hey, Andrew.

Andrew Weisel

[Technical Difficulty] you tin spot past rate-making process is done. If so, tin nan ROE beryllium modified during aliases aft building aliases will nan building not statesman until that's resolved?

Robert Durian

Yes, Andrew, I would deliberation of it, arsenic we'll proceed to activity nan process pinch nan precocious complaint making principles complete nan adjacent fewer months. We still person a small spot of time, I would qualify to beryllium capable to get done that process, and not request to commencement those building projects. But erstwhile we get to nan 2nd half of this year, I would expect that we'll beryllium starting nan construction. And hopefully, we'll person each of nan RPU process that's completed, and get an reply from nan IUB to support them.

Andrew Weisel

Okay. I conjecture what astir nan portion astir -- do nan ROE request to beryllium locked in, earlier construction? Or tin that -- tin nan uncertainty proceed during construction?

Robert Durian

No, we would expect that we'll beryllium locking successful nan ROE earlier building starts. We request to, for illustration I said, travel those procedural steps to make that happen. But I don't deliberation that we'll beryllium starting that building until we person amended clarity connected that.

Andrew Weisel

Okay. Very good. Then switching to Wisconsin. I cognize you're going to record successful nan adjacent mates of months, 2nd 4th of this year. Obviously, your neighbors saw immoderate bumps successful nan roadworthy pinch their complaint lawsuit past year. My mobility is, are you capable to stock immoderate lessons learned from that aliases immoderate changes to your approach? And do you deliberation nan colony mightiness still beryllium imaginable aliases is that disconnected nan table?

John Larsen

Yes. Andrew, I'd opportunity we're -- we consciousness good positioned for nan filing that we have. So it really isn't a alteration for us. We've utilized what we telephone our Clean Energy Blueprint process to beryllium very transparent connected nan projects that we'll have. And successful fact, galore of them person already been successful beforehand of nan committee aliases vetted and very beardown costs management. So we understand nan equilibrium pinch affordability.

As acold arsenic settlement, it's surely ever a anticipation arsenic we deliberation astir filing. We're surely good positioned, if we'll spell done nan full process, but besides spot nan opportunity for imaginable colony on nan way.

Andrew Weisel

Very good. Thank you truthful much.

Operator

Thank you. Your adjacent mobility comes from nan statement of Alex Mortimer from Mizuho. Please spell ahead.

Alexander Mortimer

Hi, bully morning. Thank you very much. So, I cognize you mentioned nan transportation of astir $150 cardinal of taxation credits successful 2023 and past yet having that turn to location astir $200 million. I'm conscionable funny what nan maturation trajectory of that looks for illustration if that's a 2024, 2025 communicative aliases if there's benignant of a later day that you're looking astatine nan $200 cardinal number for?

Robert Durian

Yeah Alex, this is Robert. So deliberation of that $100 cardinal to $200 cardinal was identified arsenic nan 2023 number, which we picked nan midpoint location of $150 million. As we complete nan building of nan 1,100 megawatts of star successful Wisconsin, we proceed to adhd up to 350 megawatts of caller artillery projects. Those taxation credits really get astir apt person to $300 cardinal to $400 cardinal connected an yearly basis. And deliberation of that complete astir apt erstwhile you get to nan 2025 clip frame, you'll spot those types of levels. So -- truthful that's what gives america a batch of optimism astir early rate travel opportunities, erstwhile it comes to nan transferability of these taxation credits.

Alexander Mortimer

Okay, wonderful. And then, you mentioned FFO to indebtedness target. Just what is nan -- what's nan magnitude you're targeting for that? And past benignant of what's nan timeline you're looking astatine getting location pinch each nan tailwinds provided from nan IRA?

Robert Durian

Yeah, correct now for AEC, our consolidated group, deliberation of that successful that 14% to 15% range, and we expect to beryllium astatine that point, for illustration I said, successful nan adjacent 12 months successful that 2024 clip frame.

Alexander Mortimer

Okay, acknowledgment very much.

Operator

Thank you. Your adjacent mobility comes from nan statement of Ashar Khan from Verition. Please spell ahead.

Ashar Khan

Hi, I deliberation immoderate of my mobility has been answered, but if I tin conscionable summarize it. So by nan clip we travel -- and hopefully, I'm judge you'll beryllium capable to do it, but if I tin conscionable put it successful my notebook. So by nan clip we travel to nan 2nd 4th telephone successful extremity of July aliases early August, you're expecting immoderate benignant of solution by nan courts and IUB, connected nan precocious complaint making process because that is erstwhile I conjecture you request to commencement construction. Is that a adjacent benignant of like, clip statement by which this rumor has to beryllium resolved by?

Robert Durian

I deliberation that's a reasonable estimation of nan clip line. When we deliberation astir nan 2nd half of 2023 and nan commencement of construction, we're looking for nan opportunity to get done each of nan IUB and present a reuse by that constituent successful time. We don't person complete power complete that. But again, we're going to petition nan truth that our expeditious reappraisal of this will really thief support our customers and bring it successful those cost-effective solutions for them quicker. So, I deliberation your clip framework is, mostly speaking, a bully one.

Ashar Khan

Okay. And past if I'm right, conscionable I cognize I dream we don't get into this situation, but I deliberation truthful you person said that, that if successful lawsuit it doesn't spell our way, you tin past substitute that CapEx pinch thing beautiful quickly, thing other successful its spot truthful nan complaint guidelines maturation and nan net maturation do not get harmed from nan hold successful nan task aliases nan cancellation of nan project. Is that correct -- is that nan correct presumption arsenic well?

Robert Durian

Yeah. I would opportunity location is simply a beardown request for capacity erstwhile you deliberation astir arsenic we task retired and arsenic portion of our assets readying pinch nan status of our Lansing ember plants present successful nan first half of 2023. We cognize we request further resources. We deliberation these are nan champion assets options for us. But if they're not supported by nan process that we're going through, we do person different imaginable avenues for capacity resources that we'll request to put into place.

Ashar Khan

Okay. And my past point if I may, I mightiness not person heard it properly. So, what is nan apt timing of nan adjacent Iowa complaint case?

John Larsen

Yeah. What I had shared was, we'll pass it by nan first half of 2024. And again, arsenic we noted, that's going to beryllium tied to nan last timing of our star projects wrong IPL.

Ashar Khan

Okay, convey you truthful much.

Operator

Thank you. There are nary further questions astatine this time. I would now move nan telephone backmost complete to Ms. Susan Gille for closing remarks.

Susan Gille

This concludes Alliant Energy's 4th fourth and year-end net call. Thank you for your continued support of Alliant Energy and consciousness free to interaction maine pinch immoderate follow-up questions.

Operator

Thank you. Ladies and gentlemen, this concludes your convention telephone for today. We convey you for participating and ask, that you please disconnect your lines. Have a beautiful day.