MADISON, Wis., Dec. 20 /PRNewswire-FirstCall/ — Alliant Energy Corporation (NYSE:LNT) announced today that its board of directors has approved an increase in its 2007 expected annual common stock dividend to $1.27 per share from the current annual dividend of $1.15 per share. Payment of the 2007 quarterly dividends will be subject to the actual dividend declaration by the board of directors, which is expected in January for the initial quarterly dividend. The increase is consistent with the Company’s previously announced desire to achieve a targeted dividend payout ratio of 60 to 70 percent of the earnings of its utility subsidiaries.
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“I am pleased to announce the Board has approved an increase of more than 10 percent in our dividend target,” said William D. Harvey, Alliant Energy’s Chairman, President and CEO. “This increase reflects our strong performance, healthy outlook, and our commitment to deliver value to our shareowners.”
2007 Guidance
Alliant Energy also announced guidance for 2007 earnings from continuing operations of $2.38-2.58 per share. Additional details of the guidance are as follows:
Utility business $2.17-2.37
Non-regulated business 0.10-0.14
Parent company 0.08-0.10
Alliant Energy $2.38-2.58
The guidance does not include any potential asset valuation charges that Alliant Energy may incur in 2007, the impact of certain non-cash mark-to- market adjustments, the impact of any future adjustments made to Alliant Energy’s deferred tax asset valuation allowances, the impact of any cumulative effects of changes in accounting principles or any gains/losses that may be realized from possible sales of certain Alliant Energy investments that would be reported in earnings from continuing operations. The guidance does include Alliant Energy’s assumptions for the impact of its share repurchase program on its 2007 results. Finally, the guidance also assumes that no businesses will be re-classified to or from “discontinued operations” in 2007.
Drivers for Alliant Energy’s earnings from continuing operations estimates include, but are not limited to:
– Normal weather conditions in its utility service territories
– Continuing economic development and sales growth in its utility service
territories
– Continuing cost controls and operational efficiencies
– Ability of its utility subsidiaries to recover their operating costs and
deferred expenditures and to earn a reasonable rate of return in current
and future rate proceedings, as well as their ability to recover
purchased power, fuel and fuel-related costs through rates in a timely
manner
– Closing of the pending sale in New Zealand in 2006
– No additional material permanent declines in the fair market value of,
or expected cash flows from, Alliant Energy’s investments
– Other stable business conditions
– Ability to utilize any tax capital losses generated to-date, and those
that may be generated in the future, before they expireProjected Capital Expenditures
Alliant Energy’s anticipated capital expenditures for 2007 are as follows (in millions):
Utility business
Transmission and distribution (electric and gas) $265
Generation – new facilities 60
Generation – existing plants 70
Environmental 60
Other miscellaneous utility property 70
Non-regulated business 10
Alliant Energy $ 5352006 Guidance
Alliant Energy affirmed its 2006 earnings guidance for its utility business of $2.10 to $2.20 per share. Alliant Energy has withdrawn its 2006 earnings guidance for its non-regulated business as a result of pending asset sale transactions, including the impacts of continued movement in foreign currency rates on the results of its New Zealand investments, and potential income tax adjustments. Alliant Energy plans to report its 2006 financial results on February 8, 2007.
