Alliant Energy's two utility subsidiaries secure federal loan facilities through 2056

Borrowings carry the applicable Treasury rate plus 37.5 basis points, and both facilities run to a final maturity of May 15, 2056.

Two Alliant Energy subsidiaries have signed federal credit facilities to fund energy infrastructure. Wisconsin Power and Light and Interstate Power and Light entered into loan guarantee agreements with the U.S. Department of Energy and note purchase agreements with the Federal Financing Bank. The two utilities can draw on the facilities for eligible energy infrastructure projects.

Wisconsin Power and Light's facility is capped at $1,626,488,000. Interstate Power and Light's facility is capped at $3,500,000,000. Both carry a final maturity date of May 15, 2056. Borrowings bear interest at the applicable Treasury rate plus 37.5 basis points, meaning hundredths of a percentage point. Alliant Energy itself is not a party to either facility and has no direct obligations under them.

The arrangements give both utilities long-dated financing at a fixed spread over Treasury rates through 2056. The combined $5.1 billion of funding capacity is insulated from near-term swings in credit markets. Because the facilities sit at the subsidiary level, the parent's balance sheet stays clear of the debt, while the two utilities can still use low-cost federal financing for grid and generation projects. The fixed spread also removes refinancing uncertainty that utilities with large capital programs typically face. That matters now because energy infrastructure financing carries considerable weight in how utility stocks are currently positioned.