LEASES
Operating Leases - Alliant Energy’s, IPL’s and WPL’s operating leases primarily include leases of space on telecommunication towers and leases of property. Operating lease details are as follows (dollars in millions):
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| December 31, 2025 | | December 31, 2024 |
| Alliant Energy | | IPL | | WPL | | Alliant Energy | | IPL | | WPL |
| Property, plant and equipment, net | $21 | | $11 | | $9 | | $22 | | $12 | | $9 |
| Other current liabilities | $2 | | $1 | | $1 | | $2 | | $1 | | $1 |
| Other liabilities | 19 | | 10 | | 8 | | 20 | | 11 | | 8 |
| Total operating lease liabilities | $21 | | $11 | | $9 | | $22 | | $12 | | $9 |
| Weighted average remaining lease term | 10 years | | 10 years | | 11 years | | 11 years | | 11 years | | 12 years |
| Weighted average discount rate | 4% | | 4% | | 4% | | 4% | | 4% | | 4% |
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Finance Leases - WPL is currently leasing the Sheboygan Falls Energy Facility from AEF’s Non-utility Generation business. WPL is responsible for the operation of the EGU and has exclusive rights to its output. In 2024, WPL renewed this financing lease through 2044. There are no lease renewal periods remaining. In 2025, WPL’s rent payments increased following the completion of certain enhancements to the Sheboygan Falls Energy Facility, resulting in a lease modification and remeasurement. For Alliant Energy, the leased Sheboygan Falls Energy Facility is eliminated upon consolidation and therefore is not reflected in Alliant Energy’s amounts below.
Related to their investments in solar generation, IPL and WPL entered into various land lease agreements with unaffiliated parties that have commenced. The leases have various terms with optional renewal periods that are assumed to be extended through the end of the estimated useful lives of the solar generating facilities. The leases do not contain purchase options and are fixed lease payments.
Finance lease details are as follows (dollars in millions):
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| December 31, 2025 | | December 31, 2024 |
| Alliant Energy | | IPL | | WPL | | Alliant Energy | | IPL | | WPL |
| Property, plant and equipment, net: | | | | | | | | | | | |
| Sheboygan Falls Energy Facility | N/A | | N/A | | $110 | | N/A | | N/A | | $74 |
| Leased land for solar generation | $190 | | $52 | | 138 | | $189 | | $53 | | 136 |
| $190 | | $52 | | $248 | | $189 | | $53 | | $210 |
| Other current liabilities: | | | | | | | | | | | |
| Sheboygan Falls Energy Facility | N/A | | N/A | | $4 | | N/A | | N/A | | $7 |
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| $— | | $— | | $4 | | $— | | $— | | $7 |
| Other liabilities: | | | | | | | | | | | |
| Sheboygan Falls Energy Facility | N/A | | N/A | | $106 | | N/A | | N/A | | $71 |
| Leased land for solar generation | 190 | | 52 | | 138 | | 189 | | 53 | | 136 |
| 190 | | 52 | | 244 | | 189 | | 53 | | 207 |
| Total finance lease liabilities | $190 | | $52 | | $248 | | $189 | | $53 | | $214 |
| Weighted average remaining lease term | 30 years | | 27 years | | 26 years | | 31 years | | 28 years | | 28 years |
| Weighted average discount rate | 5% | | 5% | | 6% | | 5% | | 5% | | 5% |
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| Alliant Energy | | IPL | | WPL |
| 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 |
| Depreciation and amortization expenses | $— | | | $— | | | $1 | | | $— | | | $— | | | $— | | | $2 | | | $4 | | | $6 | |
| Interest expense | 9 | | | 8 | | | 6 | | | 3 | | | 2 | | | 1 | | | 11 | | | 10 | | | 8 | |
| Total finance lease expense | $9 | | | $8 | | | $7 | | | $3 | | | $2 | | | $1 | | | $13 | | | $14 | | | $14 | |
Finance lease liabilities arising from obtaining leased assets, which represent non-cash financing activities, were as follows (in millions):
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| Alliant Energy | | IPL | | WPL |
| 2025 | | 2024 | | | | 2025 | | 2024 | | | | 2025 | | 2024 | | |
Finance lease liabilities arising from obtaining leased assets | $1 | | | $20 | | | | | $— | | | $20 | | | | | $39 | | | $— | | | |
Expected Maturities - As of December 31, 2025, expected maturities of lease liabilities were as follows (in millions):
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| 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | Thereafter | | Total | | Less: amount representing interest | | Present value of minimum lease payments |
| Operating Leases: | | | | | | | | | | | | | | | | | |
| Alliant Energy | $3 | | | $3 | | | $3 | | | $3 | | | $2 | | | $13 | | $27 | | $6 | | $21 |
| IPL | 2 | | | 1 | | | 1 | | | 1 | | | 1 | | | 8 | | 14 | | 3 | | 11 |
| WPL | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 7 | | 12 | | 3 | | 9 |
| Finance Leases: | | | | | | | | | | | | | | | | | |
| Alliant Energy | 9 | | | 10 | | | 10 | | | 10 | | | 10 | | | 328 | | 377 | | 187 | | 190 |
| IPL | 3 | | | 3 | | | 3 | | | 3 | | | 3 | | | 87 | | 102 | | 50 | | 52 |
| WPL | 18 | | | 18 | | | 19 | | | 19 | | | 19 | | | 386 | | 479 | | 231 | | 248 |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.