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Interstate Power and Light Company Seeks Cost Recovery for Investments in Electric Reliability and Damages From Recent Natural Disasters

Posted on: Tuesday, 17 March 2009, 13:15 CDT

CEDAR RAPIDS, Iowa, March 17 /PRNewswire-FirstCall/ -- Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), filed today a proposal with the Iowa Utilities Board (IUB) to increase its Iowa retail electric rates. IPL is requesting a rate increase that is expected to increase revenues by approximately $171 million, or 17 percent. The impact of the proposed change in rates will vary depending on customer class. This is the company's first Iowa electric base rate case since 2004.

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

The company expects the proposed change in electric rates to impact customers' electric bills in two stages - interim and final rates. IPL anticipates implementing interim electric rates on March 27, 2009. During this interim period, the company expects the typical residential customer monthly electric bill to increase by approximately $7.21, or 8.9 percent.

The increase in interim rates is expected to increase revenues by approximately $84 million, or 8 percent. Interim rates will remain in effect until the IUB issues a decision on the company's final electric rate request, expected in the first quarter of 2010. If the final electric rates approved by the IUB are lower than the interim rates, IPL will grant refunds in the difference between the interim and final rates, plus interest.

If the IUB approves IPL's proposal to increase final electric rates, the company expects the typical residential customer monthly electric bill to increase by an additional $7.45, or 9.2 percent. The company anticipates implementing any final change in electric rates in the first quarter of 2010.

IPL believes the proposal to adjust electric rates is necessary to recover costs related to the 2007 ice storms and 2008 floods that impacted the company's Iowa electric service area; investments made over the past five years to further the company's commitment to environmental stewardship and enhance the reliability of the company's electric system; and general operational costs necessary to provide customers with safe and reliable power.

"Over the past five years, our company has invested nearly $1 billion in Iowa's energy future," says Tom Aller, President-IPL. "These investments have been focused on rebuilding our electric system after the devastating natural disasters to help Iowa recover and move forward; enhancing the reliability and safety of our energy infrastructure to foster economic opportunities for Iowa's working families; and reducing our impact upon the environment. Through our continued investments we are creating a bright energy future for Iowa.

"However, we recognize that while these investments benefit our customers, there is also an impact on their monthly bills. We understand that our customers face difficult financial choices in the midst of this economic downturn. We encourage our customers to take advantage of the number of programs our company offers to help customers manage their energy costs. We will also be proposing to use proceeds from previous asset divestitures to reduce part of the increase in electric rates. If approved, this would reduce our final rate request by approximately $20 million."

Additional information for customers on the rate case and energy-saving ways to reduce the impact of the proposed rate changes is available at www.alliantenergy.com/iowarates.

Additional information for the investment community on the rate case will be available in a Current Report on Form 8-K furnished later today with the Securities and Exchange Commission.

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 includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "proposed," "expected," "anticipates," "believes" or other words of similar import. Similarly, statements that describe expected outcomes in the rate case filed with the IUB are forward-looking. 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 the following factors, among others:

• state regulatory or governmental actions, and future regulatory proceedings, including regulatory decisions regarding IPL's proposed rate increase;
• IPL's ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of operating costs, capital expenditures and deferred expenditures, the earning of reasonable rates of return and the payment of expected levels of dividends;
• economic and political conditions in IPL's service territory; and
• the impact of fuel and fuel-related prices and the effectiveness of continued cost control efforts and operating efficiencies.

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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