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Interstate Power and Light and Minnesota Department of Commerce File Rate Case Settlement Agreement

Posted on: Friday, 4 November 2005, 15:00 CST

ALBERT LEA, Minn., Nov. 4 /PRNewswire-FirstCall/ -- Interstate Power and Light Company (IP&L), a subsidiary of Alliant Energy Corporation and the Minnesota Department of Commerce (Department) filed a settlement agreement before the Minnesota Office of Administrative Hearings today. The filing details a settlement between the utility and the Department on IP&L's April 2005 electric rate case filing. In the agreement, the parties agreed to a final rate change of $1.2 million, or approximately 1.9 percent, and an authorized return on equity of 10.39 percent.

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

In its original filing, IP&L had requested an increase of $4.8 million, or an increase in rates of approximately 7.1 percent. Beginning on July 15, 2005, the Minnesota Public Utilities Commission (Commission) granted the utility an interim increase of $3.4 million, or five percent. The interim rates are subject to refund with interest.

The proposed settlement requires approval by the Commission before it can go into effect. That decision is expected in March, 2006. If approved, IP&L will refund the difference between interim and final rates, for the period that interim rates were in effect, to customers through a method approved by the Commission.

"Our staff and the staff of the Minnesota Department of Commerce have worked very hard to come to a fair agreement," said Theresa Mulford, vice president of regulatory affairs for Alliant Energy. "We appreciate the Department's recognition of the need to upgrade our infrastructure, build new power generation and to keep power flowing to our Minnesota customers."

Recent efforts by IP&L to reduce costs in its utility operations offset some of the increases needed to cover costs for infrastructure upgrades and the new Emery Generating Station in Mason City, Iowa. These efforts have taken place since the company's original rate case filing. "We've been successfully carrying out a plan to reduce costs to customers without reducing the high level of service our Minnesota customers enjoy," Tom Aller, president of Interstate Power and Light explained. "The settlement reflects the savings from these cost reductions that we are passing on to our customers."

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 serves 535,000 electric and 238,000 natural gas customers, including 41,400 electric and 10,500 gas customers in Minnesota. 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/ .

Photo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com

Alliant Energy Corporation

CONTACT: Media, Scott Drzycimski, +1-319-786-7500, or InvestorRelations, Becky Johnson, +1-608-458-3267, both of Alliant Energy

Web site: http://www.alliantenergy.com/

Source: PRNewswire-FirstCall

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