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SEC filingRevenue and net income grew year-over-year, while operating income declined slightly due to higher fuel costs and O&M expenses.
Operating income decreased 3% to $249 million from $257 million in the prior year. The decline was driven by higher electric production fuel costs, which increased due to higher natural gas volumes from increased dispatch of natural gas-fired generating units and higher natural gas prices. Higher operation and maintenance expenses also pressured margins. These items were partially offset by higher revenue requirements from capital investments and higher AFUDC.
Net income increased 5% to $224 million from $213 million, and diluted EPS rose to $0.87 from $0.83. The improvement was supported by higher AFUDC and revenue requirements from capital investments, partially offset by higher fuel costs and O&M expenses. The effective tax rate benefited from changes in state income tax apportionment, with a decrease in Wisconsin apportionment and an increase in Iowa apportionment.
Management highlighted that the actual timing and amount of load increases from data center customers are subject to interconnection and demand factors, with no immediate impact expected. The company also noted potential tariff-related cost recoveries from a Supreme Court ruling, though recovery is not yet probable. WPL's collective bargaining agreement expires in May 2026, covering 85% of its workforce. Overall, Alliant Energy's regulated utility model, supported by rate base growth and cost recovery mechanisms, provides a stable earnings trajectory, though near-term headwinds include higher fuel costs and O&M inflation.