Alliant Energy’s Wisconsin utility plans to seek recovery of incremental costs associated with coal conservation efforts

MADISON, Wis., August 1, 2005 (PRNewswire-FirstCall) — Alliant Energy announced that Wisconsin Power and Light Company (WP&L) plans to take steps to recover incremental purchased power energy costs associated with coal conservation efforts currently underway. WP&L plans to file a deferral request with the Public Service Commission of Wisconsin (PSCW) to seek and obtain recovery of such incremental retail electric costs, currently estimated to range from $14 million to $22 million. WP&L wholesale customers are currently being charged these incremental costs through their fuel adjustment clause.

Alliant Energy implemented a coal supply management plan in May after two separate railroad train derailments occurred in the Powder River Basin in northeast Wyoming causing damage to heavily-used joint railroad lines that supply coal to the company’s generation facilities and other generation facilities in the United States. Coal deliveries from the Powder River Basin are expected to remain limited until the damaged lines are repaired. Repair work could extend into next spring before it is completed.

“Alliant Energy initiated a coal conservation plan to manage our coal supplies during this uncertain time period and respond to system demands in an economical manner under these circumstances,” says Tim Bennington, vice president of Generation. “We continue to manage our coal supplies by reducing coal-fired generation during weekday off-peak hours and weekends, which are more economical times to purchase replacement power. This replacement power, however, has resulted in increased energy costs.”

WP&L plans to request deferral treatment next week which, if approved, would delay the potential recovery of these costs to a future date.

To the extent this issue has caused a financial impact at Alliant Energy’s other domestic utility, Interstate Power and Light Company, the increased costs are currently being collected from retail electric customers through the energy adjustment clause.

About Alliant Energy [ ]

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. Alliant Energy’s domestic utility subsidiaries, Interstate Power and Light and Wisconsin Power and Light, serve 982,000 electric and 416,000 natural gas customers. 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.

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