Press Release

Alliant Energy announces Third Quarter 2009 results

Records one-time charge for recently completed tender offer; Updates 2009 earnings guidance

MADISON, Wis. – October 30, 2009 – Alliant Energy Corporation (NYSE: LNT) today announced net loss for the third quarter of 2009 of ($44.3) million or ($0.40) per share compared to net income of $108.5 million or earnings per share (EPS) of $0.98 for the same period in 2008.  A summary of Alliant Energy’s third quarter earnings is as follows (net income / (loss) in millions):

Excluding the one-time non-cash $1.16 per share charge related to the Alliant Energy’s tender offer for the Exchangeable Senior Notes due 2030 (the “Notes”), Alliant Energy’s EPS for the third quarter of 2009 decreased $0.22 per share when compared to the same period in 2008.  Earnings for Alliant Energy’s utility business were negatively impacted by cool weather and lower industrial and wholesale sales due to unfavorable economic conditions.  These items were partially offset by the lack of 2008 flood clean-up and restoration costs this quarter compared to the same period last year, and interim rate relief at IPL effective March 2009.
 
Lower RMT earnings reduced EPS from Alliant Energy’s non-regulated business by $0.07 per share.  RMT currently has fewer active contracts for wind farm engineering and construction projects than it had one year ago, in part as a result of customers’ difficulties in raising capital to finance renewable energy projects.

Lower earnings at Alliant Energy’s parent company reflect higher professional expenses, short-term financing expenses related to the tender offer for the Notes, and higher income tax expense. 

“Weather played a significant role in the negative quarter-over-quarter earnings results,” said Bill Harvey, Alliant Energy Chairman, President, and CEO.  “The quarter’s results show that WPL continues to significantly under-earn, and the wind development market has not yet benefited from the intended impacts of either the American Recovery and Reinvestment Act of 2009, or pending legislation intended to increase growth in the renewable energy market place.  We expect a brighter 2010 driven by anticipated constructive outcomes from the pending WPL and IPL rate cases, and an expected resurgence of the wind development market.”

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Media Contact: Rob Crain, (608) 458-4469
Investor Relations: Susan Gille, (608) 458-3956

This press release includes forward-looking statements.  These forward-looking statements can be identified as such because the statements include words such as “expect” or other words of similar import.  Similarly, statements that describe future financial performance or plans or strategies are 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 the following factors, among others:

• federal and state regulatory or governmental actions, including the impact of energy-related and tax legislation and of regulatory agency orders;
• IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of operating costs, deferred expenditures and capital expenditures, including any construction costs incurred over the predetermined level included in the advanced rate making principles for IPL’s Whispering Willow - East wind project, costs related to generating units that may be permanently closed, the earning of reasonable rates of return, and the payment of expected levels of dividends;
• the state of the economy in IPL’s and WPL’s service territories and resulting implications on sales, margins, and ability to collect unpaid bills, in particular as a result of the economic recession;
• weather effects on results of operations;
• developments that adversely impact IPL’s and WPL’s ability to implement their strategic plans including unfavorable regulatory outcomes, unanticipated issues in connection with construction of their new wind generating facilities, WPL’s potential purchase of the Riverside Energy Center and unfavorable regulatory outcomes;
• IPL’s ability to reduce the impact of transmission rate increases for 2009 and future years either through regulatory proceedings with the Federal Energy Regulatory Commission or by recovery of costs in rates;
• issues related to the availability of generating facilities and the supply and delivery of fuel and purchased electricity and price thereof, including the ability to recover, and to retain the recovery of purchased power, fuel and fuel-related costs through rates in a timely manner;
• the impact that fuel and fuel-related prices and other economic conditions may have on IPL’s and WPL’s customers’ demand for utility services;
• impacts that storms or natural disasters in their service territories may have on their operations and rate relief for costs associated with restoration;
• issues associated with environmental remediation efforts and with environmental compliance generally, including changing environmental laws and regulations, the ability to defend against environmental claims brought by state and federal agencies or third parties such as the Sierra Club, and the ability to recover through rates all environmental compliance costs, including costs for projects put on hold due to uncertainty of future environmental laws and regulations;
• potential impacts of any future laws or regulations regarding global climate change or carbon emissions reductions, including the American Clean Energy and Security Act, which contains a proposed greenhouse gas cap-and-trade program;
• the growth rate of ethanol and biodiesel production in IPL’s and WPL’s service territories;
• continued access to the capital markets on competitive terms and rates;
• financial impacts of risk hedging strategies, including the impact of weather hedges or the absence of hedges on earnings;
• sales and project execution for RMT, Inc., the level of growth in the wind development market and the impact of the American Recovery and Reinvestment Act of 2009 and pending legislation;
• issues related to electric transmission, including operating in the Midwest Independent Transmission System Operator (MISO) energy and ancillary services markets, the impacts of potential future billing adjustments from MISO and recovery of costs incurred;
• unplanned outages at generating facilities and risks related to recovery of resulting incremental costs through rates;
• Alliant Energy’s ability to successfully defend against, and any liabilities arising out of, the purported shareowner derivative complaint stemming from the Exchangeable Senior Notes due 2030 litigation;
• Alliant Energy’s ability to successfully defend against, and any liabilities arising out of, the alleged violation of the Employee Retirement Income Security Act of 1974 by Alliant Energy’s Cash Balance Pension Plan;
• IPL’s ability to successfully resolve the dispute with the partners to the joint operating agreement for Sutherland #4;
• current or future litigation, regulatory investigations, proceedings or inquiries;
• Alliant Energy’s ability to sustain its dividend payout ratio goal;
• the direct or indirect effects resulting from terrorist incidents or responses to such incidents;
• employee workforce factors, including changes in key executives, collective bargaining agreements, work stoppages, or additional restructurings;
• access to technological developments;
• any material post-closing adjustments related to any past asset divestitures;
• the impact of necessary accruals for the terms of incentive compensation plans;
• the effect of accounting pronouncements issued periodically by standard-setting bodies;
• the ability to continue cost controls and operational efficiencies;
• increased retirement plan costs due to decreases in the market value of retirement plan assets;
• the ability to utilize tax capital losses and net operating losses generated to date, and those that may be generated in the future, before they expire;
• the ability to successfully complete ongoing tax audits and appeals with no material impact on earnings and cash flows; and
• inflation and interest rates.

Without limitation, the expectations with respect to 2009 Earnings Guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements.  Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct.  Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy’s ability to achieve the estimates or other targets included in the forward-looking statements.  The forward-looking statements included herein are made as of the date hereof and Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
 
Note: Unless otherwise noted, all “per share” references in this release refer to earnings per diluted share.