Wisconsin Power and Light Waives Acceptance of Fixed Financial Parameters for Cedar Ridge Wind Farm

MADISON, Wis., May 17 /PRNewswire-FirstCall/ — Wisconsin Power and Light Company (WPL), a subsidiary of Alliant Energy Corporation (NYSE:LNT) , today waived acceptance of an Order it had received from the Public Service Commission of Wisconsin (PSCW) under the provisions of Wisconsin Act 7 for the Cedar Ridge Wind Farm. Wisconsin Act 7 is an alternative to traditional rate recovery principles that allows Wisconsin utilities to request, in advance, the principal financial terms and conditions that will apply irrevocably to a new electric generating facility. In the PSCW’s Act 7 Order, the Commission set the authorized return on common equity at 10.5 percent.

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“We have thoroughly evaluated the Order and determined that fixing the return on equity at 10.5 percent is inadequate for the proposed 20-year wind generating facility,” said William D. Harvey, Chairman, President and CEO of Alliant Energy. WPL will proceed with the Cedar Ridge facility, applying traditional rate-making procedures to the recovery of and return on its capital costs.

The wind farm is expected to be operational by the end of 2008 at an estimated cost of approximately $180 million. When complete, Cedar Ridge Wind Farm will generate between 60 and 99 megawatts of energy, or enough to power between 15,000 and 25,000 average residential homes. The wind farm will consist of 41 wind turbines spread out over a 12.2-square mile area in the townships of Eden and Empire in Fond du Lac County, Wisconsin.

This press release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as “expects,” “estimated,” “plans,” or other words of similar import. Similarly, statements that describe future plans or strategies are also forward-looking statements. 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 such factors as: state regulatory actions which delay, prevent or alter the proposed wind farm, including inability to obtain all necessary approvals; unanticipated construction issues, delays or expenditures; changes to WPL’s access to capital markets; political conditions in WPL’s service territories; unanticipated delays or other problems acquiring turbines; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of WPL’s plans; failure of equipment and technology to perform as expected; and economic conditions in WPL’s service territory. 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 WPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.

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. Wisconsin Power and Light, the company’s Wisconsin utility subsidiary, serves 446,000 electric and 173,000 natural gas customers. 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/.

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Source: Alliant Energy