REVENUES
Revenues from Alliant Energy’s, IPL’s and WPL’s utility businesses are primarily from electric and gas sales provided to customers based on approved tariffs or specific contracts with customers. IPL’s and WPL’s primary performance obligations under such arrangements are to deliver electricity and gas, and their customers simultaneously receive and consume the electricity and gas. For such arrangements, revenues are recognized equivalent to the value of the electricity or gas supplied during each period, including amounts billed during each period and changes in amounts estimated to be billed at the end of each period. IPL and WPL apply the right to invoice method to measure progress towards completing performance obligations to transfer electricity and gas to their customers.
IPL provides retail electric and gas service to customers in Iowa, and WPL provides retail and wholesale electric and retail gas service to customers in Wisconsin. IPL also provides electricity to wholesale customers in Illinois and Iowa. IPL’s wholesale power agreement with Southern Minnesota Energy Cooperative expired in July 2025. IPL provided steam from its Prairie Creek Generating Station to high-pressure steam customers in Iowa through 2025.
IPL’s and WPL’s retail electric and gas revenues include sales to residential, commercial and industrial customers. IPL’s and WPL’s retail electric and gas customer prices are based on IPL’s and WPL’s cost of service and are determined through general rate review proceedings and various tariff filings with the IUC and PSCW, respectively. Such tariff-based services provide electricity or gas to customers without a defined contractual term.
IPL and WPL have wholesale electric market-based rate authority from FERC allowing them to participate in wholesale energy markets (e.g. MISO) and transact directly with third parties. This authority from FERC allows sales of electricity referred to as bulk power sales based on current market values. FERC also allows IPL and WPL to enter into power supply agreements with municipalities and rural electric cooperatives with defined contractual terms, which include standard pricing mechanisms that are detailed in current tariffs accepted by FERC through wholesale rate review proceedings.
Revenues from Alliant Energy’s non-utility business customers are primarily from its Travero business, which includes a short-line rail freight service in Iowa; a Mississippi River barge, rail and truck freight terminal in Illinois; freight brokerage services; and a rail-served warehouse in Iowa.
Disaggregation of revenues from contracts with customers is provided for each reportable segment (IPL and WPL), as well as by customer class within electric and gas sales, as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Alliant Energy | | IPL | | WPL |
| 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 |
| Electric Utility: | | | | | | | | | | | | | | | | | |
| Retail - residential | $1,339 | | | $1,236 | | | $1,220 | | | $661 | | | $640 | | | $641 | | | $678 | | | $596 | | | $579 | |
| Retail - commercial | 932 | | | 821 | | | 820 | | | 609 | | | 525 | | | 519 | | | 323 | | | 296 | | | 301 | |
| Retail - industrial | 1,034 | | | 952 | | | 968 | | | 531 | | | 497 | | | 501 | | | 503 | | | 455 | | | 467 | |
| Wholesale | 184 | | | 200 | | | 213 | | | 39 | | | 61 | | | 62 | | | 145 | | | 139 | | | 151 | |
| Bulk power and other | 208 | | | 163 | | | 124 | | | 56 | | | 24 | | | 38 | | | 152 | | | 139 | | | 86 | |
| Total Electric Utility | 3,697 | | | 3,372 | | | 3,345 | | | 1,896 | | | 1,747 | | | 1,761 | | | 1,801 | | | 1,625 | | | 1,584 | |
| Gas Utility: | | | | | | | | | | | | | | | | | |
| Retail - residential | 306 | | | 275 | | | 316 | | | 155 | | | 148 | | | 176 | | | 151 | | | 127 | | | 140 | |
| Retail - commercial | 153 | | | 133 | | | 163 | | | 72 | | | 68 | | | 86 | | | 81 | | | 65 | | | 77 | |
| Retail - industrial | 13 | | | 11 | | | 16 | | | 7 | | | 7 | | | 11 | | | 6 | | | 4 | | | 5 | |
| Transportation/other | 53 | | | 46 | | | 45 | | | 31 | | | 27 | | | 27 | | | 22 | | | 19 | | | 18 | |
| Total Gas Utility | 525 | | | 465 | | | 540 | | | 265 | | | 250 | | | 300 | | | 260 | | | 215 | | | 240 | |
| Other Utility: | | | | | | | | | | | | | | | | | |
| Steam | 37 | | | 40 | | | 45 | | | 37 | | | 40 | | | 45 | | | — | | | — | | | — | |
| Other utility | 14 | | | 14 | | | 7 | | | 10 | | | 9 | | | 4 | | | 4 | | | 5 | | | 3 | |
| Total Other Utility | 51 | | | 54 | | | 52 | | | 47 | | | 49 | | | 49 | | | 4 | | | 5 | | | 3 | |
| Non-Utility and Other: | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Travero and other | 89 | | | 90 | | | 90 | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total Non-Utility and Other | 89 | | | 90 | | | 90 | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total revenues | $4,362 | | | $3,981 | | | $4,027 | | | $2,208 | | | $2,046 | | | $2,110 | | | $2,065 | | | $1,845 | | | $1,827 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.