Interstate Power and Light Company Files Sutherland Generating Station Unit 4 Advanced...

Interstate Power and Light Company Files Sutherland Generating Station Unit 4
Advanced Ratemaking Principles Application With Iowa Utilities Board
Application demonstrates that proposed facility is the most reasonable and
cost-effective option for customers

CEDAR RAPIDS, Iowa, March 31 /PRNewswire-FirstCall/ -- Interstate Power
and Light Company (IPL), a subsidiary of Alliant Energy Corporation
(NYSE: LNT), filed with the Iowa Utilities Board (IUB) today an application
for advanced ratemaking principles concerning IPL's proposed construction of
the Sutherland Generating Station Unit 4, located in Marshalltown, Iowa.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO )
"Construction of Sutherland Generating Station Unit 4 is the right choice
for our customers, economy and environment," says Tom Aller, president of IPL.
"We believe the decision to construct and operate Sutherland Generating
Station Unit 4 is the most reasonable and cost-effective option for our
customers as it reduces exposure to volatile purchased power markets. We
expect that construction of the facility will bolster Iowa's economy with more
than 1,400 on-site construction jobs and a project payroll of approximately
$343 million. Upon completion, the power plant expects to employ more than 85
employees with an annual operational payroll of approximately $8.5 million."
In addition, an economic development impact analysis recently completed
indicates that the facility could support the growth of 105,000 Iowa jobs with
a total labor payroll of approximately $3.65 billion.
Iowa statute requires the IUB to issue a ruling on ratemaking principles
that are to be applicable for any baseload generating facility over 300
megawatts. Ratemaking principles define how construction costs will be
recovered in utility rates throughout the life of the generating facility. IPL
is requesting a 12.55 percent return on common equity as part of the filing.
IPL expects to receive an IUB decision on its application for ratemaking
principles for Sutherland Generating Station Unit 4 in the third quarter of
2008.
IPL filed Sutherland Generating Station Unit 4's siting application for
the project in July 2007. IPL expects a decision from the IUB on this
application in May 2008. Approval of both the siting application and
ratemaking principles application are necessary before construction begins.
IPL is requesting that the ratemaking principles apply to up to 432.5
megawatts of the proposed 649 megawatt facility. IPL will own 350 megawatts of
the facility's output. Central Iowa Power Cooperative and Corn Belt Power
Cooperative will each receive 100 megawatts of output. North Iowa Municipal
Electric Cooperative Association's participating municipal members will
receive approximately 16.5 megawatts. IPL expects to attain additional
partners or enter into purchased power agreements for the remaining 82.5
megawatts of capacity above its previously announced planned 350 megawatt
share.
IPL expects its total cost in escalated dollars for the company's 350
megawatt share of the facility, excluding allowance for funds used during
construction, to be approximately $950 million to $1,050 million.
As announced in February 2008, IPL's advanced ratemaking principles
application includes details on the company's stated plans to permanently
reduce greenhouse gas emissions when the proposed Sutherland Generating
Station Unit 4 becomes operable in 2013. IPL's proposal includes the
retirement or fuel switching of less efficient coal-fired generating stations,
aggressively pursuing energy efficiency and investing in renewables. Combined,
IPL expects its plan will more than offset its 350-megawatt ownership share of
Sutherland Generating Station Unit 4's expected CO2 emissions in 2013 when the
facility is operational.
"Sutherland Generating Station Unit 4 will enable our company to
permanently reduce carbon dioxide emissions," adds Mr. Aller. "With an
obligation to serve, it is critical that our company pursue a long-term plan
that balances the need to meet growing energy demand and strengthen Iowa's
economy with mitigating the impact to our environment. The proposal filed
today provides a balanced approach to positioning Iowa for a bright energy
future."
The power plant's design consists of a hybrid technology, which allows the
facility to utilize switch grass, corn stalks or other similar agriculturally
based products for up to 10 percent of its fuel source. As a result, IPL
expects to reduce the amount of coal burned at the facility. The power plant
is a 630-megawatt facility with an additional 19 megawatt equivalent of steam
cogeneration that will be available for use by nearby industries.
About Alliant Energy
Alliant Energy is an energy-services provider with subsidiaries serving
approximately 1 million electric and 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 headquartered in Cedar Rapids, Iowa, serves approximately
530,000 electric and 235,000 natural gas customers. Alliant Energy 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
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," "believe," "approximately," 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; 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; failure of equipment and technology to perform as expected;
unsuccessful negotiations with potential utility partners for co-ownership or
purchased power arrangements; inability to find additional partners; 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.
SOURCE Alliant Energy

Media: Ryan Stensland, +1-319-786-4171, or Investor Relations: Jamie Freeman,
+1-608-458-3274, of Alliant Energy