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Alliant Energy (LNT) Benefits From Clean Portfolio, Investments

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Alliant Energy Corporation’s (LNT - Free Report) systematic investment plans in natural gas projects and stable returns from regulated assets should further drive its bottom line. The company’s focus on electricity generated from clean assets is likely to help serve its expanding customer base.

However, LNT faces risks related to its dependence on third-party assets for transmission activity.


Alliant Energy plans to invest substantially over the next four years to strengthen its electric and gas distribution network as well as add natural gas and renewable assets to its generation portfolio. It expects investments of $9.1 billion during 2024-2027. LNT has achieved a new level of efficiency in Wisconsin and undergrounded more than 25% of its distribution system, further improving its infrastructure.

The company’s geographic location and favorable regulatory improvements bode well for the development of its wind projects and long-term earnings growth.

Alliant Energy’s earnings prospects look attractive due to the ongoing additions to its electric and natural gas customer volumes. In addition, a diverse customer mix provides stability to sales as the company does not depend on a single group for revenues.

With a focus on expanding its solar energy portfolio, Alliant Energy plans to bring 400 megawatts (MW) of solar energy online in Iowa in 2024. By the end of the year, nearly 1,500 MW of additional energy used by its customers will be from clean, zero-fuel-cost energy resources.


The company’s utility operations — IPL and WPL — use the interstate electric transmission system that they do not own or control. Rates charged to these subsidiaries are regulated by the Federal Energy Regulatory Commission. If transmission costs go up and LNT is unable to recover those costs from its customers, operational expenses are bound to rise.

A fall in the performance of the third-party electric transmission system should limit Alliant Energy’s ability to transmit electricity within its service territories and adversely impact its operations.

Focus on Renewable Energy

Cleaner energy sources are progressively being used by the U.S. electric power industry to generate electricity. The majority of companies support the advancement of new technology and strive to replace fossil fuels with renewable energy sources. In the upcoming years, they promise to offer only sustainable energy and meet the zero-emission goal.

To reap the benefits of the expanding renewable energy market, certain companies from the same industry, such as Xcel Energy Inc. (XEL - Free Report) , PPL Corp. (PPL - Free Report) and Dominion Energy (D - Free Report) , are also transitioning faster toward clean energy.

Xcel Energy aims to spend $39 billion during the 2024-2028 period. These investments are aimed at strengthening and expanding XEL’s transmission, distribution, electric generation and renewable projects.

The company is reducing coal usage and targets to lower emissions by at least 80% within 2030 and achieve carbon neutrality by 2050.

PPL aims to make investments to strengthen its grid, electricity and gas distribution, electricity transmission and expand renewable generation capacity. It expects a regulated capital investment of $14.3 billion during 2024-2027.

PPL plans to achieve its carbon emission target of 70% and 80% by 2035 and 2040, respectively, from its 2010 level. It will do so through the introduction of new carbon capture technology and the addition of more renewable sources to its generation portfolio. The company also aims to become carbon neutral by 2050.

Dominion Energy has a well-chalked-out long-term capital expenditure plan to strengthen and expand its infrastructure. It has plans to invest $11.8 billion in its various segments in 2024 to further strengthen its renewable portfolio.

The company aims to attain net-zero carbon and methane emissions from its electric generation and natural gas infrastructure by 2050. D aims to cut emissions by 70-80% by 2035 from the level of 2005. By 2035, the company also intends to make zero and low-emitting resources accountable for 99% of its electric generation.


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