116 3rd St SE
Cedar Rapids, Iowa 52401
Alliant earnings, revenue decline
George C. Ford
Feb. 25, 2015 12:00 am
Unfavorable weather in the fourth quarter of 2014 resulted in lower net income and revenue from electric and natural gas sales for Alliant Energy.
The Madison, Wis.-based corporate parent of Interstate Power and Light in Cedar Rapids posted fourth-quarter 2014 net income of $62.5 million, or 54 cents per share, down from $68.1 million, or 59 cents per share, in the fourth quarter of 2013. Revenue slid to $804.1 million in the final quarter of 2015 from $832.6 million in the final quarter of 2013.
For the year that ended on Dec. 31, 2014, Alliant Energy recorded net income of $393.3 million, up from $376.2 million in 2013.
Revenue edged up to $3.5 billion in 2014 from $3.3 billion in 2013.
Tom Hanson, Alliant Energy senior vice president and chief financial officer, said the company's higher 2014 earnings primarily were because of lower capacity charges related to IPL's Duane Arnold and Wisconsin Power and Light's Kewaunee purchased power agreements.
'These positive earnings drivers were partially offset by retail electric customer billing credits at IPL, higher energy efficiency cost amortizations at WPL, lower electric, and gas sales attributed to weather and higher depreciation expense,” Hanson told analysts Tuesday in a conference call.
'We accelerated some generation, distribution, and customer service operation and maintenance expense into 2014, which also was an offset to earnings.”
A rate settlement approved by the Iowa Utilities Board requires IPL to credit customer bills by about $25 million this year.
Hanson said Alliant Energy is assuming that the credits will be paid out over the course of the year.
Hanson said site construction is well underway at IPL's combined cycle natural gas fired Marshalltown Generating Station.
'The gas pipeline to the facility is planned to be built later this year,” Hanson said.