Interstate Power and Light Company Announces Agreement to Sell Iowa Hydroelectric Facilities to North American Hydro

Interstate Power and Light Company Announces Agreement to Sell Iowa Hydroelectric Facilities to North American Hydro

		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) MADISON, WI USA

Agreement Includes the Sale of Company's Three Iowa Hydro Facilities and a Contract for Energy Output Through October 2015 CEDAR RAPIDS, Iowa, Oct. 6 /PRNewswire-FirstCall/ -- Interstate Power and Light Company (IP&L), a subsidiary of Alliant Energy Corporation (NYSE: LNT), announced today that the company has signed a definitive agreement to sell its ownership interest in three Iowa hydroelectric generating facilities to North American Hydro (NAH). NAH specializes in hydroelectric generation. The three hydroelectric generating facilities are located in Anamosa, Iowa Falls and Maquoketa, Iowa. (Logo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO ) As part of the sale agreement, NAH agreed to purchase the three hydroelectric generating facilities for approximately one-half million dollars. In the agreement, IP&L will enter into a long-term Power Purchase Agreement (PPA) with NAH to buy energy and capacity from the three hydroelectric generating facilities. The structure of the PPA will result in costs for IP&L electric customers similar to the anticipated costs under continued IP&L ownership. The PPA will extend through October 2015 and reaffirms IP&L's commitment to renewable energy. The transaction is expected to be concluded in the fourth quarter of 2005. No federal regulatory approvals are necessary as the facilities are either exempt or not under Federal Regulatory Energy Commission (FERC) jurisdiction. NAH will continue to operate the hydroelectric generating facilities in accordance with all Federal and State regulations. NAH will work to increase the combined generating capacity of the three hydroelectric facilities. Currently, the Anamosa, Iowa Falls and Lakehurst Dam, which is located in Maquoketa, have a nameplate generating capacity of .25 megawatts (MW), .54 MW and 1.2 MW respectively. As part of the sale agreement, employees affected by the sale transaction will maintain employment within IP&L. "This sale is a win-win for everyone," states Kim Zuhlke, Alliant Energy vice president of new generation resources. "NAH will potentially increase the amount of renewable energy from these units and IP&L customers will continue to reap the benefits of renewable energy. This is part of our continued commitment to provide our electric customers safe, reliable and environmentally friendly electric service." "NAH has been the primary maintenance provider for the three units for several years, so they were a logical choice when IP&L was ready to sell," adds Zuhlke. "NAH is a leader in hydroelectric generation, as the company specializes in owning and operating hydroelectric facilities." Alliant Energy Corporation is an energy-services provider with subsidiaries serving more than three million customers. Providing its customers in the Midwest with regulated electricity and natural gas service remains the company's primary focus. Interstate Power and Light, the company's Iowa utility subsidiary, serves 535,000 electric and 238,000 natural gas customers. Other business platforms include the international energy market and non-regulated domestic generation. 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 .