MADISON, Wis., Aug. 9, 2004 (PRNewswire-FirstCall) — Alliant Energy Corporation announced that it intends to sell its two utility properties in Illinois — the Illinois operations of Interstate Power and Light Co. (IP&L) and South Beloit Water, Gas and Electric Co. (SBWG&E), which is a subsidiary of Wisconsin Power and Light Co. (WP&L). Together, these utility operations serve approximately 35,000 gas and electric customers in and around Galena, Ill., and South Beloit, Ill. The aggregate book capitalization of these businesses, including debt, is approximately $70 million.
According to President and Chief Operating Officer Bill Harvey, the company is pursuing selling these two operations because of the challenge of operating them in a cost-effective manner. “Although we serve relatively few customers in Illinois, those service territories require the same attention and administrative support as a state with a larger number of customers,” Harvey said.
“While we value the relationships we have with our Illinois customers, we also want to operate in a way that addresses their long-term best interests, as well as the interests of our employees and shareowners.”
Alliant Energy hopes to enter into a sales agreement for the properties before year end. Any sales agreement will be subject to regulatory approvals.
In 2002, Alliant Energy announced its plans to sell its water utility businesses in South Beloit and Beloit and Ripon, Wis. The City of Beloit has since purchased the water utility serving that area, and progress continues to be made in closing a deal with the Ripon and South Beloit water systems. Additionally, the sale of the Kewaunee Nuclear Power Plant to Dominion Resources, Inc. continues to move through the regulatory process. The company has no current plans to sell any of its other domestic utility properties.
“The company is firmly focused on the effective and efficient operations of its domestic utility operations in Iowa, Wisconsin and Minnesota,” Harvey said. “But we continue to narrow our business portfolio to operations that either already contribute meaningful earnings and cash flows or those that have the potential to do so,” Harvey said.
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