Press Release

Alliant Energy announces 2009 results and 2010 guidance

MADISON, Wis. – February 4, 2010 – Alliant Energy Corporation (NYSE: LNT) today announced income and earnings per share (EPS) from continuing operations for 2009 of $110.7 million and $1.01, respectively.  A summary of Alliant Energy’s 2009 results compared to 2008 results is as follows (net income in millions):

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EPS for the utility, non-regulated, and parent in 2009 were impacted by a total of $0.36 per share for various non-recurring, non-cash state income tax items. EPS for the parent in 2009 were also impacted by the one time $1.16 per share of charges related to Alliant Energy’s tender offer for its Exchangeable Senior Notes due 2030 (Notes).  EPS for the utility in 2009 also included the $0.10 per share of non-recurring charges for proposed coal plants, $0.04 per share of regulatory-related credits for the recovery of flood costs and $0.09 per share of non-recurring restructuring charges and impairment of steam assets.  EPS amounts recorded in 2009, excluding these identified non-recurring items are as follows:

Excluding the non-recurring items identified in the table above, Alliant Energy’s 2009 EPS from continuing operations were $1.96 per share which was $0.58 per share lower than 2008.  These lower earnings for Alliant Energy’s utility business were due to the impacts of historically cool summer weather in 2009, higher depreciation and interest expense as a result of planned capital expenditures, lower industrial sales due to unfavorable economic conditions, and income tax benefits resulting from tax audit settlements and known adjustments for future tax audits recognized in 2008.  These items were partially offset by cost saving initiatives and the minimal 2008 flood clean-up and restoration costs incurred in 2009 when compared to 2008, and allowance for funds used during construction due to utility wind project construction. 

Lower RMT earnings reduced EPS from Alliant Energy’s non-regulated business by $0.13 per share.  The prolonged economic recession and the credit crisis decreased new construction of wind energy megawatts in the United States by 35-40% in 2009 when compared to 2008.  Lack of wind project financing, lower demand for energy, lower natural gas prices, and the distribution of a large portion of the American Recovery and Reinvestment Act of 2009 cash grants to completed wind energy, all combined to dampen new construction.   Competition among the balance of plant contractors, due to the decreased new construction, also resulted in lower margins at RMT.

Lower earnings at Alliant Energy’s parent company, excluding the non-recurring state income tax items and charges related to the tender offer, reflect lower interest income, higher short-term financing expenses related to the tender offer of the Notes and higher professional expenses.

“The two primary drivers in the year-over-year negative results are weather and the economy,” said Bill Harvey, Alliant Energy Chairman, President, and CEO.  “The negative economic conditions in our utility and non-regulated businesses were too great to overcome, even with our continued commitment to control costs at all levels of the organization.  With normal weather and new retail electric rates in both Iowa and Wisconsin we expect a brighter financial picture in 2010.”

Additional details of 2009 full year and fourth quarter earnings from continuing operations are available in the financial and operating statistical table section appearing in the full release.

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2010 Earnings Guidance

Alliant Energy’s earnings per share guidance for 2010 is as follows:

The guidance does not include the impacts of any non-cash valuation adjustments, future regulatory-related charges or credits resulting from decisions by regulators, reorganization or restructuring charges, future changes in laws or regulations, future adjustments made to deferred tax asset valuation allowances, adverse impacts of pending lawsuits and disputes, or changes in accounting principles that may impact the reported results of Alliant Energy.
 
Drivers for Alliant Energy’s 2010 earnings guidance include, but are not limited to:

• Anticipated interim rate increases implemented by IPL
• No further significant decline in the economy and resulting implications on utility sales
• Normal weather and operating conditions in its utility service territories
• Ability to recover future purchased power, fuel and fuel-related costs through rates in a timely manner
• Ability of IPL and WPL to recover their operating costs, deferred expenditures and capital expenditures, and to earn a reasonable rate of return in future rate proceedings
• Continuing cost controls and operational efficiencies
• Execution of IPL’s and WPL’s wind projects and environmental expenditure plans
• Ability to utilize federal net operating losses and federal credit carry forwards
• RMT estimated cost controls, market share, and project execution

“In 2010, we expect earnings benefits from returns on IPL’s Whispering Willow - East wind project, which began commercial operation in the fourth quarter of 2009, and construction of phase one of WPL’s Bent Tree wind project during 2010,” said Harvey.  “While we are realizing savings related to corporate cost-control measures, and will continue to seek out ways to mitigate costs to customers, our utilities are planning to file retail rate cases in Iowa, Wisconsin, and Minnesota in 2010.   These rate cases are expected to contribute to our earnings growth by further capturing the benefits of renewable, environmental, and reliability initiatives across the service territory and adjusting rates to reflect our current sales load.”

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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 current economic conditions;
• weather effects on results of operations;
• developments that adversely impact the ability to implement strategic plans including unanticipated issues in connection with construction and operation of IPL’s and WPL’s new wind generating facilities, WPL’s potential purchase of the Riverside Energy Center (Riverside), and unfavorable regulatory outcomes;
• 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 IPL’s and WPL’s service territories may have on their operations and rate relief for costs associated with restoration activities;
• 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, such as the EPA, 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;
• the ability to continue cost controls and operational efficiencies;
• potential impacts of any future laws or regulations regarding global climate change or carbon emissions reductions, including those which contain a proposed greenhouse gas cap-and-trade program;
• 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 weather hedges on earnings;
• sales and project execution for RMT, Inc., the level of growth in the wind and solar 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 Regional Transmission Organizations (RTOs) energy and ancillary services markets, the impacts of potential future billing adjustments from RTOs and recovery of costs incurred;
• unplanned outages or operational issues at fossil or renewable 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;
• 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;
• 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 and negotiations, work stoppages or additional restructurings;
• access to technological developments;
• any material post-closing adjustments related to 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;
• increased retirement and benefit plan costs;
• the ability to successfully complete ongoing tax audits and appeals with no material impact on earnings and cash flows;
• inflation and interest rates; and
• factors listed in the “2010 Earnings Guidance” section of this press release.

Without limitation, the expectations with respect to 2010 Earnings Guidance and Projected Capital Expenditures 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.