Alliant Energy Corporation
Alliant Energy Corporation is a public resource organization founded in 1981 in Madison, Wisconsin. Its goods are electricity and natural gas, and the firm has four major subsidiaries.
Subsidiaries
The four subsidiaries are Interstate Power and Light Company (IPL), Wisconsin Power and Light Company (WPL), Alliant Energy Resource, and Corporate Services. The Interstate Power and Light Company is a government utility that distributes and generates electricity and also transports and distributes natural gas in Lowa. Wisconsin Power and Light Company (WPL) provides the same utilities as IPL in southern and central Wisconsin. The Alliant Energy resource is responsible for managing non-regulated investments, and the Corporate Services provides administrative services to Alliant Energy and its subsidiaries.
Impact and Challenges
Being in the energy industry for more than three decades, Alliant Energy is among the best service providers that have helped in improving the lives of many people in the United States by providing electricity and gas. It has also helped improve the infrastructure as well as the livelihood of many. As a business, the company faces challenges in the market such as competition from other companies and diversity within the workforce (Berry, 2010).
Organizational Analysis
The main players at Alliant Energy are William D Harvey, Chairman, and CEO and Jamie Toledo who is the head of the supplier diversity program. As at 2017, the company shares are mainly held by investors Blackrock, Vanguard Group, State Street Corporation and others. Market capitalization is a measure of business value focusing on the number of outstanding shares and share price. Alliant Energy completed its at-the-market equity early in 2017. The company sold about 3.1 million shares on common stock for a total of about $125 million. It plans to use the shareowners direct plan to release the remaining stock to achieve its target equity assurance amount of about $150 million for 2017 (Ballou, Heitger, Landes, & Adams, 2006).
GENCO Operations Manager
Kelvin Schaefer is the GENCO operations manager at Alliant Energy. The company has about 958,318 electric customers and 411,758 natural gas customers.
Strategic Plan
In the energy sector, Alliant Energy has two energy generation and distribution subsidiaries, one in Lowa and the other one in Wisconsin. The company has a plan built upon two key elements: Optimization and Growth. The growth element of the plan includes speeding up the growth of customers’ electric and gas usage and increasing the strategy of energy resources to include clean and renewable energy. The other key element of the strategic plan aims at giving reliable electric and natural gas services to customers in Wisconsin and Lowa service areas. This is done through upgrades to the gas distribution system and continued modernization of the power grid system and optimizing the generation fleet. They also own portfolios of electric generating facilities operating on a mix of fuels, including natural gas, coal, and renewable resources. These outputs are supplemented with purchased power. Alliant Energy Resources as the parent company of Alliant Energy Non-regulated business involves balancing a portfolio of businesses adding to earnings but do not need large capitals. Alliant Energy has many achievements as a business. It has managed to meet many of its demands and provides full sustainability to its customers, regarding growth and expansion, this company has evidently grown (Ma, Iman, Lu, Sears, Kong, Rokanuzzaman, & Benson, 2007).
Environmental Laws and Regulations
Alliant Energy is subject to several environmental laws and regulations such as Environmental Protection Agency regulations, federal or state regulatory actions, changes in tax among other regulations. The Environmental Protection Agency regulations deal with litigation related to environmental requirements and carbon dioxide emissions reductions (Ma, Iman, Lu, Sears, Kong, Rokanuzzaman, & Benson, 2007).
Critical Incidences
Alliant Energy just like other energy industries faces some challenges that they have to deal with. They include unsustainable pressure on the natural resources and the environment. It becomes inevitable if energy demand is not de-coupled from economic growth and demand for fossil fuel is reduced. Increased emission of carbon dioxide could raise global temperatures causing an irreversible change in the environment. Alliant Energy also celebrates a number of its achievement both socially and economically. Since its establishment, the company has created employment for many members of the society. It has also provided efficient services to its customers and made profits. It has also awarded scholarships to students to help them achieve their goals in life (Laird, Hunter, & Davidchack, 2012).
Investment Potential
The stock analysis as on Thursday 17th August 2017 shows that Alliant Energy Corporation is at the upper part of the horizontal trend. This would pose an excellent selling opportunity, but a break-up through the top trend line will seem a strong buy signal and a trend shift may be expected. With this horizontal trend, we expect Alliant Energy Corporation with 90 percent probability to be traded between $39.49 and $42.09 at the end of this period with 90 percent probability. A break of a horizontal trend is often followed by a significant rise in volume. It is evident that the corporation buys signals from both long and short-term moving averages. The stock had a golden star signal once in July and early August 2017. The risk is considered as low since the stock is traded daily at a good volume. At other times the stock is overbought. Strong dividend growth of Alliant Energy makes it a profitable venture to buy or invest in. The Earnings Per Share (EPS), is previewed to grow by six percent in the next financial year. It has solid earnings plus a steady history of dividend growth markets it to the investors. Potential goals for growth for this corporation include growing profits, a growing market, well-managed debts, and good credit and growing dividends that are supported by earnings. Current issues to be addressed include the state of affairs at Lowa where an impressive portfolio of renewable energy leading the USA in biofuel and ethanol production has been established (Ballou, Heitger, Landes, & Adams, 2006).
Future of Lowa
Lowa also became the first nation to produce more than 36 percent of its yearly electricity from wind resources. This kind of market could rise to 40 percent by the year 2020 brought about by more than 10 billion worth of investments brought by two largest investors. With such great investments, Lowa is expected to advance and meet its objectives over time (Laird, Hunter, & Davidchack, 2012).
Recommendations
Alliant Energy Corporation is a well-established company that is still growing. For this energy company, I recommend that the company administration should ensure the company continues to provide safe and reliable energy. They should also ensure that they provide true and reliable information for the customers with a reliable source. The company should also engage the clients in their brands and keep up communicating to create consumer satisfaction. It is also advisable to be more human to clients and create a relationship with them evident from the scholarships that Alliant Energy gives to students among other charitable activities within the company. The regular motivation of workers is also another factor to consider. Happy workers mean more productivity. A motivated worker will ensure they do their part well, therefore bringing a positive impact to the company and the customers. The company should also understand and mind the safety of its clients. With all these factors, customer satisfaction will be achieved as well as objectives being met, and therefore, the potential growth of the industry will be met.
References:
- Ballou, B., Heitger, D. L., Landes, C. E., & Adams, M. (2006). The future of corporate sustainability reporting. Journal of Accountancy, 202(6), 65.
- Berry, D. (2010). Delivering energy savings through community-based organizations. The Electricity Journal, 23(9), 65-74.
- Laird, B. B., Hunter, A., & Davidchack, R. L. (2012). Interfacial free energy of a hard-sphere fluid in contact with curved hard surfaces. Physical Review E, 86(6), 060602.
- Ma, Z., Iman, F., Lu, P., Sears, R., Kong, L., Rokanuzzaman, A. S., & Benson, S. A. (2007). A comprehensive slagging and fouling prediction tool for coal-fired boilers and its validation/application. Fuel Processing Technology, 88(11), 1035-1043.
