Interstate Power and Light Company Receives Wind Ratemaking Principles Decision From Iowa Utilities Board

Interstate Power and Light Company Receives Wind Ratemaking Principles Decision From Iowa Utilities Board

		Alliant Energy is the parent company of two public utility companies--Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL)--and of Alliant Energy Resources, Inc. (AER), the parent company of Alliant Energy's non-regulated operations. (PRNewsFoto/ALLIANT ENERGY CORPORATION) MADISON, WI UNITED STATES

IUB authorizes 11.7 percent return on equity for wind power farm in Iowa CEDAR RAPIDS, Iowa, Feb. 7 /PRNewswire-FirstCall/ -- Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT) received a written decision today from the Iowa Utilities Board (IUB) regarding its request for ratemaking principles pertaining to the company's proposed construction of up to 200 megawatts of wind power farms in Iowa. (Logo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO) In its decision, the IUB approved the terms of a settlement agreement reached between IPL and the Iowa Office of Consumer Advocate on November 15, 2007 which includes a return on equity of 11.7 percent and a 25 year depreciation life for up to 200 megawatts of IPL wind development in Iowa. IPL expects to begin construction on a 200 megawatt wind power project at the Whispering Willow Warm Farm, located in Franklin County, Iowa, in 2009. The project is expected to be completed in 2010 at a cost of $400 million to $450 million dollars. "The IUB's decision is a milestone for our company as we build IPL's first company-owned wind farm and move to position Iowa as a leader in renewable energy," states Tom Aller, president of IPL. "Wind energy, along with our other renewable generation resources, is an important component of our diversified energy portfolio. We are committed to expanding Iowa's renewable economic opportunities that create jobs for Iowans and help make Iowa a leader in renewable energy." Upon completion of the IPL wind projects, approximately six percent of IPL's electricity will be generated from renewable energy sources through either purchased power agreements or company-owned renewable generation. More than 90 percent of IPL's renewable energy will be derived from wind power. In September 2007, IPL filed an application with the IUB for ratemaking principles concerning the company's proposed construction of up to 200 megawatts of wind power farms in Iowa. Given the substantial capital investment required to complete the IPL wind project, the company sought the IUB's approval that the proposed ratemaking principles were reasonable prior to investing in the project. Ratemaking principles are fixed and define how the costs associated with building wind facilities will be recovered in utility rates throughout the life of the project. In January 2007, IPL announced details of its 'Energy for a New Generation' plan. Energy efficiency initiatives and wind energy are key components of the long-term generation plan. About Alliant Energy Alliant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and more than 400,000 natural gas customers. Providing its customers in the Midwest with regulated electric and natural gas service is the company's primary focus. Interstate Power and Light, the company's Iowa utility subsidiary, serves 526,000 electric and 232,000 natural gas customers. Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the company's Web site at http://www.alliantenergy.com. This press release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "expects" or other words of similar import. Similarly, statements that describe future plans or strategies are also forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: state or federal regulatory actions or local government actions, including inability to obtain all necessary approvals and permits; unanticipated construction issues, delays or expenditures; failure of equipment and technology to perform as expected; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of the IPL's plans; political conditions in IPL's service territories; and economic conditions in IPL's service territory. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and IPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.