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Interstate Power and Light Company Cancels Plans for Sutherland Generating Station Unit 4

Posted on: Thursday, 5 March 2009, 07:30 CST

Alliant Energy's utility subsidiaries near-term focus remains on renewable energy, energy efficiency, and reducing environmental emissions

MARSHALLTOWN, Iowa, March 5 /PRNewswire-FirstCall/ -- Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), has cancelled plans to construct the proposed Sutherland Generating Station Unit 4 in Marshalltown, Iowa.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO)

The decision to cancel the project is based on a combination of factors including the current economic and financial climate; increasing environmental, legislative and regulatory uncertainty regarding regulation of future greenhouse gas emissions and the terms placed on the proposed power plant by regulators.

"When combined with the Public Service Commission of Wisconsin's denial of Wisconsin Power and Light Company (WPL)'s proposed expansion of Nelson Dewey last December, the decision not to move forward with Sutherland Generating Station Unit 4 removes the option of adding new coal-based capacity to meet our customers' future energy needs," said Bill Harvey, Chairman, President, and CEO of Alliant Energy. "While we believe the plants we proposed were the best energy options for our customers, we understand that the current financial, political, and environmental landscape made their permitting and construction a significant challenge.

Both IPL and WPL will continue to focus on three key areas where they already have a strong track record of achievement; utility owned wind energy development; energy efficiency programs, including our advanced metering infrastructure investments and reducing environmental emissions. However, the obligation to serve our customers with safe, reliable and environmentally-responsible electric service at a reasonable cost remains. Over the next six to twelve months, we plan to evaluate various energy supply options to meet IPL's and WPL's customers' future energy needs."

As a result of the decision to cancel the new unit at Sutherland Generating Station Unit 4, Alliant Energy's capital expenditure forecast is expected to decrease by $205 million, $455 million, and $285 million for the years 2009, 2010, and 2011 respectively when compared to the levels disclosed in Alliant Energy's form 10-K filed with the Securities and Exchange Commission on February 27, 2009.

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 and Minnesota utility subsidiary, 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.

Alliant Energy forward looking statement

This press release contains forward looking statements. These forward-looking statements can be identified as such because the statements include words such as "expects," "expected," "plan," "believe," 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 allowing for, among other things, the recovery of operating costs, capital expenditures and deferred expenditures, the earning of reasonable rates of return; economic and political conditions in IPL's service territory; potential impacts of any future laws or regulations regarding global climate change or carbon emissions reductions; and current or future litigation, regulatory investigations, proceedings or inquiries. 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 Corporation

Source: PR Newswire

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