MADISON, Wis., April 20, 2005 (PRNewswire-FirstCall) — Wisconsin Power and Light Company (WP&L), a subsidiary of Alliant Energy Corporation, received approval from the Public Service Commission of Wisconsin (PSCW) to defer continuing fuel-related incremental costs associated with the extension of the unplanned outage at the Kewaunee Nuclear Power Plant (KNPP). Deferred fuel-related costs, covering the period April 15 through mid to late May, are expected to be approximately $13.2 million.
Approval of this deferral means that WP&L is authorized deferred accounting treatment for the replacement of incremental fuel costs and the lost value of unburned fuel while KNPP is out of service.
Last week, the PSCW approved WP&L’s $26.4 million fuel-only rate case filed in March of 2005 to recover increased fuel and purchased power costs caused, in part, by the unplanned outage at KNPP. The timeframe for KNPP costs included in that rate case was through mid-April, when the plant was originally expected to return to service. This deferral represents incremental fuel-related costs beyond those included in the recently-approved fuel-only rate case, as the plant is now expected to return to service in mid to late May.
The PSCW also separately approved deferral of additional operating and maintenance costs related to the unplanned outage.
“The extended unplanned outage at KNPP continues to increase our costs, particularly for fuel and purchased power because of the need to replace low-cost nuclear energy with higher cost replacement power,” says Barbara J. Swan, president of WP&L. “However, our retail electric customers will not immediately experience the rate impact of our total increased KNPP-related costs due to deferral. While this approach does not eliminate the need to recover these costs, it delays potential recovery to a future date.”
About Alliant Energy [ www.alliantenergy.com ]
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. Wisconsin Power and Light, the company’s Wisconsin utility subsidiary, serves 445,000 electric and 176,000 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.