CEDAR RAPIDS, Iowa, Jan. 5 /PRNewswire-FirstCall/ -- Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE:LNT) received an oral decision from the Iowa Utilities Board (IUB) regarding its request to increase its annual electric retail revenues. (Logo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO) In its oral decision, the IUB approved no additional changes to interim rates implemented in March 2009 which increased revenues by approximately $84 million, or 8 percent. However, the IUB approved increased funding for transmission costs, as well as recovery of Sutherland Generating Station Unit 4 cancellation costs. The IUB accepted the proposal presented by IPL and several interveners in the case to offset a portion of the 2008 and 2009 transmission costs with funds previously set aside from the sale of the company's transmission assets, rather than increase customer rates. In addition, the IUB approved using funds from the Regulatory Liability account from the sale of the Duane Arnold Energy Center to offset the recovery of costs associated with the cancelled Sutherland Generating Station Unit 4 project. The IUB also deferred the company's proposal to implement an automatic adjustment clause to reflect future price changes assessed by the company's transmission service provider, ITC Midwest, LLC. If approved in a subsequent rate case, the automatic transmission adjustment clause would enable IPL to recover transmission costs incurred for the benefit of customers in a more consistent and timely manner. The IUB established a return on common equity of 10.5 percent for all non-related Emery Generating Station capital. The return on common equity for Emery Generating Station-related capital is 12.2 percent. IPL anticipates that the written decision, which is expected to be issued by the IUB by January 19, 2010, will provide additional details concerning the revenue and rate design issues presented in the case. "The IUB's decision recognizes the challenges our company and customers have confronted over the past several years," states Tom Aller, President - IPL. "Over the past five years, our company has invested more than $600 million in our Iowa electric system and we expect to continue to invest in Iowa's energy future to meet the needs of our customers. The IUB's decision strikes a balance between mitigating the cost impact on customers and our commitment to providing customers with safe, reliable and environmentally responsible energy service." Parties have 20 days to ask the IUB to rehear its decision once the written order is issued. IPL expects final rates to become effective in the first quarter of 2010. IPL expects to file an electric rate case with the IUB in March 2010, in which it plans to seek to recover costs related to infrastructure investments, including the construction of the 200 megawatt Whispering Willow -East wind project, which is IPL's first owned-and-operating wind farm in Iowa, and an emission reduction project at its Lansing power plant. The Whispering Willow - East wind project , located in Franklin County, Iowa, started commercial operations in late 2009. The IUB previously approved a return on common equity of 11.7 percent for the Whispering Willow Wind - East wind project. About Alliant Energy Alliant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and over 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 Company, headquartered in Cedar Rapids, Iowa, is the company's Iowa and Minnesota utility subsidiary and 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 http://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 "plans," "believes," "expects" or other words of similar import. Similarly, statements that describe expected outcomes in the rate case filed or to be 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, deferred expenditures and capital expenditures, including any construction costs incurred over the predetermined level included in the advanced rate making principles for IPL's Whispering Willow - East wind project, costs related to generating units that may be permanently closed, the earning of reasonable rates of return, and the payment of expected levels of dividends; economic and political conditions in IPL's service territory; the impact of fuel and fuel-related prices as well as transmission and transmission-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. http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO http://photoarchive.ap.org/ DATASOURCE: Alliant Energy Corporation CONTACT: Ryan Stensland, +1-319-786-4171, or Investor Relations, Susan Trapp Gille, +1-608-458-3956 Web Site: http://www.alliantenergy.com/

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