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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    

Name of Registrant, State of Incorporation, Address of Principal Executive Offices, Telephone Number, Commission File Number, IRS Employer Identification Number

ALLIANT ENERGY CORPORATION

(a Wisconsin Corporation)

4902 N. Biltmore Lane

Madison, Wisconsin 53718

Telephone (608) 458-3311

Commission File Number - 1-9894

IRS Employer Identification Number - 39-1380265

INTERSTATE POWER & LIGHT COMPANY

(an Iowa corporation)

Alliant Energy Tower

Cedar Rapids, Iowa 52401

Telephone (319) 786-4411

Commission File Number - 1-4117

IRS Employer Identification Number - 42-0331370

WISCONSIN POWER & LIGHT COMPANY

(a Wisconsin corporation)

4902 N. Biltmore Lane

Madison, Wisconsin 53718

Telephone (608) 458-3311

Commission File Number - 0-337

IRS Employer Identification Number - 39-0714890

This combined Form 10-Q is separately filed by Alliant Energy Corporation, Interstate Power and Light Company and Wisconsin Power and Light Company. Information contained in the Form 10-Q relating to Interstate Power and Light Company and Wisconsin Power and Light Company is filed by each such registrant on its own behalf. Each of Interstate Power and Light Company and Wisconsin Power and Light Company makes no representation as to information relating to registrants other than itself.

Securities registered pursuant to Section 12(b) of the Act:

Alliant Energy Corporation, Common Stock, $0.01 Par Value, Trading Symbol LNT, Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Alliant Energy Corporation - Yes ☒ No ☐

Interstate Power and Light Company - Yes ☒ No ☐

Wisconsin Power and Light Company - Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Alliant Energy Corporation - Yes ☒ No ☐

Interstate Power and Light Company - Yes ☒ No ☐

Wisconsin Power and Light Company - Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Alliant Energy Corporation - Large Accelerated Filer ☒ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

Interstate Power and Light Company - Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☒ Smaller Reporting Company ☐ Emerging Growth Company ☐

Wisconsin Power and Light Company - Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☒ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Alliant Energy Corporation ☐

Interstate Power and Light Company ☐

Wisconsin Power and Light Company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Alliant Energy Corporation - Yes ☐ No ☒

Interstate Power and Light Company - Yes ☐ No ☒

Wisconsin Power and Light Company - Yes ☐ No ☒

Number of shares outstanding of each class of common stock as of June 30, 2022:

Alliant Energy Corporation, Common Stock, $0.01 par value, 250,926,232 shares outstanding

Interstate Power and Light Company, Common Stock, $2.50 par value, 13,370,788 shares outstanding (all outstanding shares are owned beneficially and of record by Alliant Energy Corporation)

Wisconsin Power and Light Company, Common Stock, $5 par value, 13,236,601 shares outstanding (all outstanding shares are owned beneficially and of record by Alliant Energy Corporation)

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TABLE OF CONTENTS

	Page
Definitions	1
Forward-looking Statements	1
Part I. Financial Information	3
Item 1. Condensed Consolidated Financial Statements (Unaudited)	3
Alliant Energy Corporation	3
Interstate Power and Light Company	6
Wisconsin Power and Light Company	9
Combined Notes to Condensed Consolidated Financial Statements	12
1. Summary of Significant Accounting Policies	12
2. Regulatory Matters	13
3. Property, Plant and Equipment	13
4. Receivables	14
5. Investments	14
6. Common Equity	14
7. Debt	17
8. Revenues	18
9. Income Taxes	18
10. Benefit Plans	19
11. Derivative Instruments	20
12. Fair Value Measurements	21
13. Commitments and Contingencies	23
14. Segments of Business	24
15. Related Parties	26
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3. Quantitative and Qualitative Disclosures About Market Risk	33
Item 4. Controls and Procedures	33
Part II. Other Information	33
Item 1. Legal Proceedings	33
Item 1A. Risk Factors	33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 6. Exhibits	34
Signatures	34

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DEFINITIONS

The following abbreviations or acronyms used in this report are defined below:

Abbreviation or Acronym	Definition	Abbreviation or Acronym	Definition
2021 Form 10-K	Combined Annual Report on Form 10-K filed by Alliant Energy, IPL and WPL for the year ended Dec. 31, 2021	IPL	Interstate Power and Light Company
AEF	Alliant Energy Finance, LLC	IUB	Iowa Utilities Board
AFUDC	Allowance for funds used during construction	MDA	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Alliant Energy	Alliant Energy Corporation	MISO	Midcontinent Independent System Operator, Inc.
ATC	American Transmission Company LLC	MW	Megawatt
ATC Holdings	Interest in American Transmission Company LLC and ATC Holdco LLC	MWh	Megawatt-hour
Corporate Services	Alliant Energy Corporate Services, Inc.	N/A	Not applicable
DAEC	Duane Arnold Energy Center	Note(s)	Combined Notes to Condensed Consolidated Financial Statements
Dth	Dekatherm	OPEB	Other postretirement benefits
EGU	Electric generating unit	PPA	Purchased power agreement
EPA	U.S. Environmental Protection Agency	PSCW	Public Service Commission of Wisconsin
EPS	Earnings per weighted average common share	SEC	Securities and Exchange Commission
FERC	Federal Energy Regulatory Commission	U.S.	United States of America
Financial Statements	Condensed Consolidated Financial Statements	West Riverside	West Riverside Energy Center
FTR	Financial transmission right	Whiting Petroleum	Whiting Petroleum Corporation
GAAP	U.S. generally accepted accounting principles	WPL	Wisconsin Power and Light Company

FORWARD-LOOKING STATEMENTS

Statements contained in this report that are not of historical fact are forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified as such because the statements include words such as “may,” “believe,” “expect,” “anticipate,” “plan,” “project,” “will,” “projections,” “estimate,” or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Some, but not all, of the risks and uncertainties of Alliant Energy, IPL and WPL that could materially affect actual results include:

•the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns;

•the direct or indirect effects resulting from terrorist incidents, including physical attacks and cyber attacks, or responses to such incidents;

•the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity;

•the impact of energy efficiency, franchise retention and customer disconnects on sales volumes and margins;

•the impact that price changes may have on IPL’s and WPL’s customers’ demand for electric, gas and steam services and their ability to pay their bills;

•IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of and/or the return on costs, including fuel costs, operating costs, transmission costs, deferred expenditures, deferred tax assets, tax expense, capital expenditures, and remaining costs related to EGUs that may be permanently closed and certain other retired assets, decreases in sales volumes, earning their authorized rates of return, and the payments to their parent of expected levels of dividends;

•federal and state regulatory or governmental actions, including the impact of legislation, and regulatory agency orders;

•the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire;

•the impacts of changes in the tax code, including tax rates, minimum tax rates, and adjustments made to deferred tax assets and liabilities;

•the ability to complete construction of renewable generation and storage projects by planned in-service dates and within the cost targets set by regulators due to cost increases of and access to materials, equipment and commodities including due to tariffs, duties or other assessments, such as any additional tariffs resulting from U.S. Department of Commerce investigations into the sourcing of solar project materials and equipment from certain countries, labor issues or supply shortages, the ability to successfully resolve warranty issues or contract disputes, the ability to achieve the expected level of tax benefits based on tax guidelines and project costs, and the ability to efficiently utilize the renewable generation and storage project tax benefits for the benefit of customers;

•employee workforce factors, including changes in key executives, ability to hire and retain employees with specialized skills, ability to create desired corporate culture, collective bargaining agreements and negotiations, work stoppages or restructurings;

•inflation and higher interest rates;

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•changes in the price of delivered natural gas, transmission, purchased electricity and coal, particularly during elevated market prices, and any resulting changes to counterparty credit risk, due to shifts in supply and demand caused by market conditions, regulations and MISO’s annual resource adequacy process;

•changes to the creditworthiness of, or performance of obligations by, counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters;

•any material post-closing payments related to any past asset divestitures, including the sale of Whiting Petroleum, which could result from, among other things, indemnification agreements, warranties, guarantees or litigation;

•weather effects on results of utility operations;

•the direct or indirect effects resulting from the ongoing novel coronavirus (COVID-19) pandemic and the spread of variant strains, including any vaccine mandates and testing requirements, on sales volumes, margins, operations, employees, labor markets, contractors, vendors, the ability to complete construction projects, supply chains, customers’ inability to pay bills, suspension of disconnects, the market value of the assets that fund pension plans and the potential for additional funding requirements, the ability of counterparties to meet their obligations, compliance with regulatory requirements, the ability to implement regulatory plans, economic conditions and access to capital markets;

•issues associated with environmental remediation and environmental compliance, including compliance with all environmental and emissions permits, the Coal Combustion Residuals Rule, future changes in environmental laws and regulations, including federal, state or local regulations for carbon dioxide emissions reductions from new and existing fossil-fueled EGUs, and litigation associated with environmental requirements;

•increased pressure from customers, investors and other stakeholders to more rapidly reduce carbon dioxide emissions;

•the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, state natural resources agencies or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims;

•continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;

•disruptions to ongoing operations and the supply of materials, services, equipment and commodities needed to construct solar generation, battery storage and electric and gas distribution projects, which may result from geopolitical issues, supplier manufacturing constraints, labor issues or transportation issues, as well as affect the ability to meet capacity requirements and result in increased capacity expense;

•possible changes to MISO’s methodology establishing capacity planning reserve margin and capacity accreditation requirements that may impact how and when new generating facilities such as IPL’s and WPL’s additional solar generation may be accredited with energy capacity and may require IPL and WPL to adjust their current resource plans, the need to add resources to comply with MISO’s proposal, or procure capacity in the market whereby such costs might not be recovered in rates;

•disruptions in the supply and delivery of natural gas, purchased electricity and coal;

•the direct or indirect effects resulting from breakdown or failure of equipment in the operation of electric and gas distribution systems, such as mechanical problems and explosions or fires, and compliance with electric and gas transmission and distribution safety regulations, including regulations promulgated by the Pipeline and Hazardous Materials Safety Administration;

•issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, availability of warranty coverage for equipment breakdowns or failures, performance below expected or contracted levels of output or efficiency, operator error, employee safety, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental operating, fuel-related and capital costs through rates;

•impacts that excessive heat, excessive cold, storms or natural disasters may have on Alliant Energy’s, IPL’s and WPL’s operations and recovery of costs associated with restoration activities or on the operations of Alliant Energy’s investments;

•Alliant Energy’s ability to sustain its dividend payout ratio goal;

•changes to costs of providing benefits and related funding requirements of pension and OPEB plans due to the market value of the assets that fund the plans, economic conditions, financial market performance, interest rates, timing and form of benefits payments, life expectancies and demographics;

•material changes in employee-related benefit and compensation costs, including settlement losses related to pension plans;

•risks associated with operation and ownership of non-utility holdings;

•changes in technology that alter the channels through which customers buy or utilize Alliant Energy’s, IPL’s or WPL’s products and services;

•impacts on equity income from unconsolidated investments from valuations and potential changes to ATC’s authorized return on equity;

•impacts of IPL’s future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures, allocation of mixed service costs and state depreciation, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods;

•current or future litigation, regulatory investigations, proceedings or inquiries;

•reputational damage from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions;

•the effect of accounting standards issued periodically by standard-setting bodies;

•the ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and

•other factors listed in MDA and Risk Factors in Item 1A in the 2021 Form 10-K.

Alliant Energy, IPL and WPL each assume no obligation, and disclaim any duty, to update the forward-looking statements in this report, except as required by law.

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PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	For the Three Months		For the Six Months
	Ended June 30,		Ended June 30,
	2022	2021	2022	2021
	(in millions, except per share amounts)
Revenues:
Electric utility	$812	$717	$1,586	$1,418
Gas utility	94	69	356	239
Other utility	13	10	23	23
Non-utility	24	21	47	38
Total revenues	943	817	2,012	1,718
Operating expenses:
Electric production fuel and purchased power	191	138	359	271
Electric transmission service	133	121	271	255
Cost of gas sold	48	31	216	131
Other operation and maintenance	166	160	320	306
Depreciation and amortization	166	165	332	329
Taxes other than income taxes	27	26	54	52
Total operating expenses	731	641	1,552	1,344
Operating income	212	176	460	374
Other (income) and deductions:
Interest expense	78	69	152	138
Equity income from unconsolidated investments, net	(16)	(19)	(32)	(34)
Allowance for funds used during construction	(13)	(5)	(24)	(9)
Other	—	2	1	4
Total other (income) and deductions	49	47	97	99
Income before income taxes	163	129	363	275
Income tax expense (benefit)	4	(17)	12	(45)
Net income	159	146	351	320
Preferred dividend requirements of Interstate Power and Light Company	—	2	—	5
Net income attributable to Alliant Energy common shareowners	$159	$144	$351	$315
Weighted average number of common shares outstanding:
Basic	250.9	250.2	250.7	250.1
Diluted	251.1	250.6	251.0	250.5
Earnings per weighted average common share attributable to Alliant Energy common shareowners:
Basic	$0.63	$0.58	$1.40	$1.26
Diluted	$0.63	$0.57	$1.40	$1.26

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30, 2022	December 31, 2021
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$19	$39
Accounts receivable, less allowance for expected credit losses	490	440
Production fuel, at weighted average cost	55	51
Gas stored underground, at weighted average cost	64	82
Materials and supplies, at weighted average cost	121	113
Regulatory assets	188	104
Other	371	240
Total current assets (a)	1,308	1,069
Property, plant and equipment, net (a)	15,453	14,987
Investments:
ATC Holdings	351	338
Other	195	179
Total investments	546	517
Other assets:
Regulatory assets	1,863	1,836
Deferred charges and other	221	144
Total other assets	2,084	1,980
Total assets	$19,391	$18,553

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$733	$633
Commercial paper	399	515
Accounts payable	584	436
Accrued taxes	58	58
Regulatory liabilities	218	186
Other	284	226
Total current liabilities	2,276	2,054
Long-term debt, net (excluding current portion)	6,981	6,735
Other liabilities:
Deferred tax liabilities	1,971	1,927
Regulatory liabilities	1,145	1,085
Pension and other benefit obligations	356	374
Other	496	388
Total other liabilities (a)	3,968	3,774
Commitments and contingencies (Note 13)
Equity:
Alliant Energy Corporation common equity:
Common stock - $0.01 par value - 480,000,000 shares authorized; 250,926,232 and 250,474,529 shares outstanding	3	3
Additional paid-in capital	2,759	2,749
Retained earnings	3,387	3,250
Shares in deferred compensation trust - 388,363 and 383,532 shares at a weighted average cost of $31.72 and $30.59 per share	(12)	(12)
Total Alliant Energy Corporation common equity	6,137	5,990
Noncontrolling interest	29	—
Total equity	6,166	5,990
Total liabilities and equity	$19,391	$18,553

(a)As of June 30, 2022, Alliant Energy’s assets of a consolidated VIE that may be used only to settle obligations of that VIE include $1 million of current assets and $428 million of property, plant and equipment, net, and Alliant Energy’s liabilities of that VIE that creditors do not have recourse to include $8 million of other liabilities. Refer to Note 1(b) for additional information.

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the Six Months
	Ended June 30,
	2022	2021
	(in millions)
Cash flows from operating activities:
Net income	$351	$320
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	332	329
Deferred tax expense (benefit) and tax credits	12	(42)
Other	(16)	2
Other changes in assets and liabilities:
Accounts receivable	(283)	(265)
Derivative assets	(183)	(68)
Regulatory assets	(116)	4
Accounts payable	95	11
Regulatory liabilities	74	(69)
Derivative liabilities	86	(22)
Deferred income taxes	34	93
Pension and other benefit obligations	(18)	(34)
Other	(68)	(52)
Net cash flows from operating activities	300	207
Cash flows used for investing activities:
Construction and acquisition expenditures:
Utility business	(550)	(426)
Other	(43)	(32)
Cash receipts on sold receivables	233	295
Other	(10)	(27)
Net cash flows used for investing activities	(370)	(190)
Cash flows from (used for) financing activities:
Common stock dividends	(215)	(203)
Proceeds from issuance of long-term debt	650	—
Payments to retire long-term debt	(304)	(4)
Net change in commercial paper	(116)	146
Contributions from noncontrolling interest	29	—
Other	6	4
Net cash flows from (used for) financing activities	50	(57)
Net decrease in cash, cash equivalents and restricted cash	(20)	(40)
Cash, cash equivalents and restricted cash at beginning of period	40	56
Cash, cash equivalents and restricted cash at end of period	$20	$16
Supplemental cash flows information:
Cash paid during the period for:
Interest	($146)	($137)
Income taxes, net	($4)	($1)
Significant non-cash investing and financing activities:
Accrued capital expenditures	$200	$139
Beneficial interest obtained in exchange for securitized accounts receivable	$244	$154

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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INTERSTATE POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	For the Three Months		For the Six Months
	Ended June 30,		Ended June 30,
	2022	2021	2022	2021
	(in millions)
Revenues:
Electric utility	$442	$402	$843	$788
Gas utility	52	43	191	134
Steam and other	12	10	22	22
Total revenues	506	455	1,056	944
Operating expenses:
Electric production fuel and purchased power	83	55	150	114
Electric transmission service	91	79	188	171
Cost of gas sold	27	22	112	72
Other operation and maintenance	87	81	171	158
Depreciation and amortization	95	93	189	187
Taxes other than income taxes	14	14	28	28
Total operating expenses	397	344	838	730
Operating income	109	111	218	214
Other (income) and deductions:
Interest expense	37	34	74	69
Allowance for funds used during construction	(3)	(3)	(5)	(5)
Other	—	2	(1)	2
Total other (income) and deductions	34	33	68	66
Income before income taxes	75	78	150	148
Income tax benefit	(12)	(10)	(23)	(22)
Net income	87	88	173	170
Preferred dividend requirements	—	2	—	5
Net income available for common stock	$87	$86	$173	$165

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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INTERSTATE POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30, 2022	December 31, 2021
	(in millions, except per share and share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$13	$34
Accounts receivable, less allowance for expected credit losses	269	241
Income tax refunds receivable	8	8
Production fuel, at weighted average cost	37	29
Gas stored underground, at weighted average cost	27	40
Materials and supplies, at weighted average cost	73	70
Regulatory assets	111	73
Other	149	69
Total current assets	687	564
Property, plant and equipment, net	7,997	7,983
Other assets:
Regulatory assets	1,379	1,370
Deferred charges and other	121	79
Total other assets	1,500	1,449
Total assets	$10,184	$9,996

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$225	$173
Accounts payable to associated companies	37	39
Regulatory liabilities	100	84
Accrued taxes	51	56
Accrued interest	35	36
Other	115	67
Total current liabilities	563	455
Long-term debt, net	3,645	3,643
Other liabilities:
Deferred tax liabilities	1,106	1,083
Regulatory liabilities	651	607
Pension and other benefit obligations	121	127
Other	316	312
Total other liabilities	2,194	2,129
Commitments and contingencies (Note 13)
Equity:
Interstate Power and Light Company common equity:
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding	33	33
Additional paid-in capital	2,807	2,807
Retained earnings	942	929
Total Interstate Power and Light Company common equity	3,782	3,769
Total liabilities and equity	$10,184	$9,996

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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INTERSTATE POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the Six Months
	Ended June 30,
	2022	2021
	(in millions)
Cash flows from operating activities:
Net income	$173	$170
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	189	187
Other	(9)	(13)
Other changes in assets and liabilities:
Accounts receivable	(256)	(270)
Derivative assets	(123)	(27)
Regulatory assets	(52)	(14)
Accounts payable	67	1
Regulatory liabilities	53	(36)
Derivative liabilities	63	(11)
Deferred income taxes	24	30
Other	(46)	1
Net cash flows from operating activities	83	18
Cash flows from investing activities:
Construction and acquisition expenditures	(172)	(191)
Cash receipts on sold receivables	233	295
Other	(1)	(6)
Net cash flows from investing activities	60	98
Cash flows used for financing activities:
Common stock dividends	(160)	(200)
Capital contributions from parent	—	50
Other	(4)	(5)
Net cash flows used for financing activities	(164)	(155)
Net decrease in cash, cash equivalents and restricted cash	(21)	(39)
Cash, cash equivalents and restricted cash at beginning of period	34	50
Cash, cash equivalents and restricted cash at end of period	$13	$11
Supplemental cash flows information:
Cash (paid) refunded during the period for:
Interest	($74)	($69)
Income taxes, net	$19	$27
Significant non-cash investing and financing activities:
Accrued capital expenditures	$45	$32
Beneficial interest obtained in exchange for securitized accounts receivable	$244	$154

Refer to accompanying Combined Notes to Condensed Consolidated Financial Statements.

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WISCONSIN POWER AND LIGHT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	For the Three Months		For the Six Months
	Ended June 30,		Ended June 30,
	2022	2021	2022	2021
	(in millions)
Revenues:
Electric utility	$370	$315	$743	$630
Gas utility	42	26	165	105
Other	1	—	1	1
Total revenues	413	341	909	736
Operating expenses:
Electric production fuel and purchased power	108	84	209	158
Electric transmission service	41	42	83	84
Cost of gas sold	21	9	104	59
Other operation and maintenance	67	69	123	128
Depreciation and amortization	69	70	139	139
Taxes other than income taxes	12	12	24	23
Total operating expenses	318	286	682	591
Operating income	95	55	227	145
Other (income) and deductions:
Interest expense	28	26	55	52
Allowance for funds used during construction	(10)	(2)	(18)	(4)
Other	—	—	—