Alliant Energy: Targets federal stimulus money to further Smart Grid efforts

Media Contact: Steve Schultz (608) 458-3285

Investor Relations: Jamie Freeman (608) 458-3274

Nearly $10 million in potential federal grants would help build a smart energy future

MADISON, WI – August 5, 2009 – Alliant Energy Corporation’s (NYSE: LNT) Wisconsin Power and Light Company (Alliant Energy) subsidiary will file four American Recovery and Reinvestment Act (ARRA) grant applications with the U.S. Department of Energy’s Smart Grid Investment Grant Program. The grants all involve projects connected to Alliant Energy’s implementation of Advanced Metering Infrastructure (AMI) technology.

If awarded, the four grants could cover up to half of the projects’ $20 million estimated costs. The grants focus on leveraging and expanding our AMI technology deployment, the foundation for Smart Grid, throughout our service territory. Alliant Energy’s grant applications are for the following projects:

* Demand Response Pilot: 1,200 residential customers would participate in four different programs evaluating energy-saving Smart Grid technologies such as programmable communicating thermostats and online real-time energy usage tools for customers.

* Distribution Automation: An investment to make our existing infrastructure more efficient and reduce the need for equipment upgrades.

* Response Automation: Improve our efficiency in responding to and restoring electric outages.

* Complex Commercial & Industrial Customer AMI Implementation: Implement AMI technology for a select group of C&I customers currently delayed or out of scope for the AMI 2009 and 2010 rollout.

“Partnering with our customers to build a smart energy future is expected to bring them long-term cost savings and empower them by providing the insight and tools needed to manage their own energy usage while also creating operational efficiencies at Alliant Energy,” said Barbara Swan, President – Alliant Energy’s Wisconsin Power and Light Company. “By establishing these opportunities for our customers now, we’re able to provide customer choices so they can become more energy efficient sooner rather than later.”

Alliant Energy’s Wisconsin Power and Light Company is currently more than halfway through its AMI deployment project which is expected to total nearly 645,000 electric and gas meters when complete. This deployment will provide a foundation for Smart Grid.

Smart Grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce costs and increase reliability. Smart Grid is also an important component of Alliant Energy’s renewable energy future, allowing greater integration of renewable and distributed energy resources.

“By applying for these grants, Alliant Energy is also attempting to bring more ARRA money into Wisconsin, which we believe not only benefits our customers, but the entire state,” adds Swan. “These grants are expected to help create local jobs and help balance growing energy demands in Wisconsin.”

The Department of Energy is expected to begin awarding grants in the 4th quarter of 2009.

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