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EEI Financial Conference – November 9-12, 2008 1
Alliant Energy Corporation
EEI Financial ConferenceNovember 9-12, 2008
EEI Financial Conference – November 9-12, 2008 2
Safe Harbor
This presentation contains statements that may be considered forward looking statements, such as management’s expectations of financial
objectives and projections, capital expenditures, new generation plans, customer rate projections, regulatory action and compliance, and plans
and strategies. These statements speak of the Company’s plans, goals, beliefs, or expectations, refer to estimates or use similar terms. Actual results could differ materially, because the realization of those results is subject to many uncertainties including regulatory approvals and results, unanticipated construction costs or delays, economic conditions in our service territories, and other factors, some of which are discussed in
more detail in the Company’s Form 10-K for the year ended December 31, 2007 and its Form 10-Q for the period ended September 30,
2008. All forward looking statements included in this presentation are based upon information presently available, and the Company assumes
no obligation to update any forward looking statements.
EEI Financial Conference – November 9-12, 2008 3
Today’s Discussion
• Corporate Profile• Regulated Utility Overview• Liquidity & Credit Metrics• Regulatory Calendar• WindConnect® Profile• Investment Considerations
EEI Financial Conference – November 9-12, 2008 4
Corporate Profile
2008 EPS Based on Midpoint of Guidance Estimates Provided October 31, 2008 in Earnings Release
Alliant Energy Continuing Operations: $2.69
Regulated Utilities
16% Investment
In ATC
$0.19
RMT andWindConnect
$0.16
• Transportation• Non-regulatedgeneration• Other
$0.14
Parent
$0.09
Utility Non-regulated
$2.11
EEI Financial Conference – November 9-12, 2008 5
Chicago
Minneapolis
Regulated Utility Profile
Service Territory Advantages• Favorable commission rankings by independent groups• Advanced ratemaking for new generation• Economic diversity and stability• Renewable portfolio standards and superior wind and
biomass resources to achieve those standards
2,8163,085Peak Demand (MW)
47,55866,192Gas Sales (000’s Dths)
175,887233,903Gas Customers
14,98517,946Electric Sales (GWh)
453,051527,799Electric Customers
WPLIPL2007 data
IOWA
WISCONSIN
EEI Financial Conference – November 9-12, 2008 6
Regulated Utility Profile (cont.)
• Advanced rate making principles– Iowa: House File 577
• Must be applied to base-load additions over 300 MW and all natural gas and renewable generation
• Emery Generating Station – 565 MW natural gas (2004 –12.23% ROE)
• Whispering Willow Wind Farm – 200 MW wind (2009 – 11.7% ROE)
• Sutherland Generating Station #4 – have requested 12.55% ROE for 350 MW base-load unit
– Wisconsin: Act 7• Optional for any electric generating facility• Nelson Dewey Generating Station #3 – have requested 12.5%
ROE for 300 MW base-load unit
EEI Financial Conference – November 9-12, 2008 7
Balanced Generation Plan
• 68 MW Cedar Ridge Wind Farm (WPL / 2008)• 200 MW Whispering Willow Wind Farm - East (IPL / 2010)• 200 MW Bent Tree Wind Farm (WPL / 2010)• 200 MW WPL Wind Farm (WPL / 2013)
• 300 MW Neenah Energy Facility• WPL / 2009 (Purchase from non-regulated affiliate)
• 600 MW Riverside Energy Center• WPL / 2013 (Currently PPA with Calpine)
• 350 MW Sutherland Generating Station #4• 2013 In Service / 10% Biomass / Super Critical
• 300 MW Nelson Dewey Generating Station #3•2013 In-Service / 20% Biomass / CFB
EEI Financial Conference – November 9-12, 2008 8
Biomass Commitment
• Challenges: Creating markets, inventory
• Opportunities: Economic development, strong local markets
Proposed Fuel MixSGS 4NED 3
100%100%Total
1%2%Native grasses
9%3%Corn stalks
0%15%Wood chips
90%80%Coal blend
EEI Financial Conference – November 9-12, 2008 9
Generation Plan Approvals
Transfer of Neenah from non-regulated to WPL (June 2009)Natural Gas:
Q1 2009WPL 200 MW Bent Tree Wind Farm (Wisconsin)IPL 200 MW Whispering Willow Wind Farm
Wind:
February 2009Nelson Dewey #3 Air PermitNovember 2008Nelson Dewey #3 Ratemaking PrinciplesNovember 2008Nelson Dewey #3 Siting Application (CPCN)
January 2009Sutherland #4 Air PermitJanuary 2009Sutherland #4 Ratemaking Principles (RPU)
Sutherland #4 Siting Application (GCU)Baseload:
EEI Financial Conference – November 9-12, 2008 10
Other Capital Initiatives
• Environmental– Major projects planned through 2013
• Advanced Metering Infrastructure– Implementation underway on $85 million program in Wisconsin– Evaluating options for IPL
3
1
2
ApprovalProcess
30Scrubbers (SO2)
11SCR (NOX)
00Baghouses (Mercury)
PlanningUnder
Construction
EEI Financial Conference – November 9-12, 2008 11
$0
$500
$1,000
$1,500
$2,000
$2,500
2006 2007 2008 2009 2010
mill
ions
Maint Capex Baseload Environmental Wind
Utility Capital Expenditure Profile
$516
$1,020
$1,715
$2,085
$368
• Various projects subject to regulatory and Alliant Board of Director’s approval. Excludes AFUDC, if applicable
EEI Financial Conference – November 9-12, 2008 12
Liquidity & Credit Ratings
$335-$235$100$100AEC / Other
$150
-
$150A/R Sales TotalCashAvailableLimitas of 10/30/2008
$650
$250
$300
Credit Facility
$650
$250
$300
$1,230$430Total
$370$120WPL
$525$75IPL
LIQUIDITY millions
A-2P-1WPL – Commercial Paper
A-2P-2IPL – Commercial Paper
A-A2WPL – Unsecured long-term debt
BBB+A3IPL – Unsecured long-term debt
S&PMoody’sCREDIT RATINGS
EEI Financial Conference – November 9-12, 2008 13
Other Regulatory Items
WPL
IPL
2009• Edgewater 5 SCR decision1st Half 2009• Nelson Dewey Units 1 & 2 Scrubber decision
Q4 2008• 2009/2010 General Rate Case decisionExpected Date
March 2009• Iowa 2008 test year electric rate caseexpected filing
Q1 2009• 5 Year Energy Efficiency Plan decisionApproved 10/29/08• Emissions Plan & Budget decision
Expected Date
EEI Financial Conference – November 9-12, 2008 14
RMT WindConnect® Profile
• Leading provider of wind energy facility development, engineering and construction
• Over 3,100 MW constructed in 20 states• Competitive advantage is full value chain expertise:
– In-house permitting, engineering and construction management– Self performance of crucial construction work– Proven track record, repeat customers and unparalleled safety performance
$0.03
$0.08
$0.16
2006 2007 2008
RMT and WindConnect® Earnings Per ShareCompleted & Current Projects
EEI Financial Conference – November 9-12, 2008 15
Investment Considerations
• Attractive service territory– Well regarded regulators– Advanced rate making for new generation– Wind and biomass in our backyard
• Balanced rate base growth strategy• Strong balance sheet, liquidity and access
to capital markets• Target dividend payout of 60-70% of utility
earnings
EEI Financial Conference – November 9-12, 2008 16
Appendix
38-47• Current Operations32-37• Regulatory17-31• New Generation PlansSlides
EEI Financial Conference – November 9-12, 2008 17
New Generation Plans
EEI Financial Conference – November 9-12, 2008 18
Fixed Financial Parameters
100% AFUDCCWIP/AFUDC25Depreciationn/aEquity %
11.70%Decision expected Q4
2008
Decision expected Q4
2008
ROEApproval
100% AFUDC100% AFUDC100% CWIPCWIP/AFUDC25n/a40Depreciationn/an/a50%Equity %
12.30%12.55%12.50% ROERequest
IPL Whispering Willow (wind)
IPL SGS 4 (baseload)
WPL NED 3 (baseload)
EEI Financial Conference – November 9-12, 2008 19
Generation Mix
54%
6%0% 0% 1%
15%24%
62%
9% 7% 1% 1%14%
6%
0%
25%
50%
75%
Coal Gas Wind Biomass Other Purchased -Nuclear
Purchased -Other
20072014 (Projected)
Energy Mix
45%
29%
0% 0% 2%9%
15%
47%40%
1% 1% 2%8%
1%0%
25%
50%
75%
Coal Gas Wind Biomass Other Purchased -Nuclear
Purchased -Other
20072014 (Projected)
Capacity Mix
Plan Reduces Purchased Power Exposure
EEI Financial Conference – November 9-12, 2008 20
Sales – Historical & Long-Term Forecast
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sale
s - 0
00s
MW
h
IPL WPL
1.7%1.6%Forecasted (2008-2014)
1.8%1.3%Historical (2003-2007)
WPLIPLCAGR
* Excludes bulk power sales
* Forecast levels are consistent with most recent Integrated Resource Plan filings with the various state commissions
EEI Financial Conference – November 9-12, 2008 21
0500
1,0001,5002,0002,5003,0003,5004,0004,500
2008 2009 2010 2011 2012 2013 2014
meg
awat
ts
Owned Capacity PPA Capacity Wind Net Capacity Coal - SGS4 Capacity Need
IPL Load and Capacity
EEI Financial Conference – November 9-12, 2008 22
0500
1,0001,5002,0002,5003,0003,5004,0004,500
2008 2009 2010 2011 2012 2013 2014
meg
awat
ts
Owned Capacity PPA Capacity Neenah RiversideWind Net Capacity Coal - NED3 Capacity Need
WPL Load and Capacity
EEI Financial Conference – November 9-12, 2008 23
$1,200 - $1,300$1,200 - $1,300Cost (millions)
20132013In Service
Project Overviews
Q4 2008 (CPCN)Approved April 2008Applications
Q4 2008 (Act 7)Q4 2008 (RPU-08-1)Financial Parameters
Q1 2009Q4 2008Air Permit
Anticipated Decisions
Washington Group Int’lKiewit / Black & Veatch EPC Contractor
20%10%Biomass Capable
Circulating Fluidized Bed (CFB)Super CriticalTechnology
300 MW (100% Share)350 MW (54% Share)Capacity
Nelson Dewey Unit #3 (WPL)Sutherland Unit #4 (IPL)
Baseload Investments
EEI Financial Conference – November 9-12, 2008 24
Wind Generation Investments
200 MW
$425 - $475
Vestas V-82
2010
Regulatory
200 MW
WPL
TBD300 MW---Extra Capacity @ Site
TBD$400 - $450$155Cost Estimate (millions)
TBD* 100 MW remain from
Vestas Contract
Vestas V-82Vestas V-82Turbines Procured
By 20132010Q4 2008In Service
PlanningUnder ConstructionUnder Construction
Status
200 MW200 MW68 MWSize
WPLIPLWPLSubsidiary
TBDWIND FARM
EEI Financial Conference – November 9-12, 2008 25
Wind Resources
Alliant Energy service territory
EEI Financial Conference – November 9-12, 2008 26
Biomass Resources
EEI Financial Conference – November 9-12, 2008 27
Bio-Fuels Investment
SGS4NED3
100%100%Total
1%2%Native grasses
9%3%Corn stover
0%15%Wood chips
90%80%Coal blend
Fuel Mix - Proposed
11515100Native grasses bale
801565Corn stover bale
14811135Native grasses pellet
11111100Corn stover pellet
$ 56$ 21$ 35Wood chips
TotalDeliverFuelFuel prices
14.00Natural gas
10.393Native grasses pellet (bio-fuel)
7.893Corn stover pellet (bio-fuel)
6.123Wood chips (bio-fuel)
2.389Black thunder (coal)
$ 1.429Pet coke (coal)
$/mmbtuProjected Fuel Prices
Bio-Fuel Compared to Other Fuel Sources
EEI Financial Conference – November 9-12, 2008 28
Bio-Fuels Advantages
• Grasses– Improves wildlife habitat– Reduces water pollution by up to 75%– Reduces flooding– Restores most threatened ecosystem, tall grass prairie– Increases carbon sequestration potential
• Wood– 90-95% less CO2 than coal – Trees can fix up to 6 tons of CO2/acre/year– Low sulfur, NOx, and mercury emissions– Targeting underutilized, low quality material (target TSI and FCL)
• Stover– DOE report called corn stover “…the largest under utilized crop
in the U.S.”
EEI Financial Conference – November 9-12, 2008 29
Nelson Dewey Unit #3 Siting and Ratemaking Application
Q4 2008PSCW decision
Sep. 29-30, 2008Public hearings
Sep. 19, 2008Technical hearings
Sep. 15, 2008Surrebuttal testimony
Sep. 8, 2008Rebuttal testimony and remaining direct testimony
Aug.11, 2008Intervenors direct testimony and rebuttal testimony
June 13, 2008WPL direct testimony
On or beforeProcedural Schedule
EEI Financial Conference – November 9-12, 2008 30
Sutherland Unit #4 Ratemaking Principles Application
Oct. 12, 2008Intervenor supplemental direct testimony
Dec. 29, 2008Post-hearing briefs
Q1 2009IUB decision
Dec. 1, 2008Hearing/testimony and cross examination
Nov. 10, 2008IPL supplemental rebuttal testimony
Aug. 22, 2008Joint statement of the issues
Aug. 18, 2008Intervenors surrebuttal testimony
Aug. 4, 2008IPL rebuttal testimony
July 8, 2008Intervenors direct testimony
June 6, 2008Petitions to intervene
On or beforeProcedural Schedule
EEI Financial Conference – November 9-12, 2008 31
Renewable Portfolio Standards
MinnesotaIowaWisconsin
None500 MW by 2013800 MW by 2018
1,600 MW by 2028
10% by 201320% by 202025% by 2025
Proposed Revisions to Current Standards
Announced projects achieve 2025 standards
AchievedAnnounced projects achieve 2015
standards
Plan To Meet Current Standards
12% by 2012, gradual increases to 25% by 2025
50 MW~5% by 2010~9% by 2015
Current Standards
EEI Financial Conference – November 9-12, 2008 32
Regulatory
EEI Financial Conference – November 9-12, 2008 33
Act 7N/AHF 577Financial Parameters for New Generation
666Term (years)
10.54%Sep. 2006
Pass Through
Historical or partially forecasted test year
D: 2 R:3
Appointed
5
Minnesota
10.75%Dec. 2007
10.97%Dec. 2007
Latest Electric ROE in state
Fuel ClausePass ThroughFuel
Forecasted
Historical w/ post test year
adjustments for 9 month period
Rate Case Test Year
D:3 R:0D: 2 R: 1Party Affil.
AppointedAppointedElected / Appoint
33Commissioners
WisconsinIowa
State Commission Overview
EEI Financial Conference – November 9-12, 2008 34
RRA Ranking of State Commissions
Regulatory Research Associates (RRA) maintains three principal rating categories for regulatory climates: Above Average, Average, and Below Average. Within the principal rating categories, the numbers 1, 2, and 3 indicate
relative position. The designation 1 indicates a stronger rating; 2, a mid-range rating; and, 3, a weaker rating. The evaluations are assigned from an investor perspective and indicate the
relative regulatory risk associated with the ownership of securities issued by the
jurisdiction’s utilities. The evaluation reflects our assessment of the probable level and
quality of the earnings to be realized by the state’s utilities as a result of regulatory,
legislative, and court actions.
Wisconsin and Iowa are two of the top ranked commissions from an
investor perspective
Alabama Above Average / 2Florida Above Average / 2Indiana Above Average / 2Mississippi Above Average / 2North Carolina Above Average / 2Wisconsin Above Average / 2Iowa Above Average / 3Virginia Above Average / 3California Average / 1Delaware Average / 1Georgia Average / 1Massachusetts Average / 1South Carolina Average / 1Tennessee Average / 1Colorado Average / 2District of Columbia Average / 2Hawaii Average / 2Kansas Average / 2Kentucky Average / 2Louisiana Average / 2Maine Average / 2Michigan Average / 2Minnesota Average / 2
EEI Financial Conference – November 9-12, 2008 35
FERC Jurisdiction
• WPL wholesale customers
– ~20% of WPL’s MWh sales
– Formula rates effective June 1, 2007, subject to refund (10.9% ROE, 55% equity)
– Monthly fuel adjustment
• WPL investment in American Transmission Company
– 16.4% equity interest at Sep. 30, 2008
– 12.2% authorized ROE (annual true-up)
– ATC forecasted capex of $2.8 billion over 10 years
• IPL wholesale ~2% of IPL’s MWh sales
– Formula rates approved with monthly fuel adjustment
EEI Financial Conference – November 9-12, 2008 36
Authorized Capital StructuresBased on approved retail rate orders
MPUC (Minnesota)n/an/a1.5%41.6%7.7%49.1%Electric Servicen/an/a7.6%44.0%7.4%41.1%Gas Service
n/an/a8.4%33.7%3.8%54.1%Gas Servicen/an/a8.4%33.7%3.8%54.1%Electric Service
Regulatory1.0%10.4%6.8%27.6%3.1%51.0%Gas Service1.0%10.4%6.8%27.6%3.1%51.0%Electric Service
FinancialPSCW (Wisconsin)
n/an/an/a42.3%8.3%49.3%Gas Servicen/an/an/a44.8%7.3%47.9%
Emery Generating Station
n/an/an/a44.8%7.3%47.9%Electric ServiceIUB (Iowa)
AssociatesObligationsDebtDebtStockEquity
%Advances From
%Debt Equivalent
O.B.S.%Short-term%Long-term%Preferred%Common
EEI Financial Conference – November 9-12, 2008 37
Retail Rate Base BreakdownBased on approved rate orders
$7
$136
$197$1,051
$212
$354
$1,621
Millions
10.8%
10.4%
10.8%10.8%
10.4%
12.2%
10.7%
ROE%Authorized
Emery Generating Station
Gas Service
PSCW (Wisconsin)Retail Electric ServiceGas Service
Retail Electric Service
IUB (Iowa)
Retail Electric Service
MPUC (Minnesota)
Gas Service
EEI Financial Conference – November 9-12, 2008 38
Current Operations
EEI Financial Conference – November 9-12, 2008 39
IPL Sales (for the year-ended Dec. 31, 2007)
Electric Sales - MWh
Industrial, 43% Commercial
, 22%
Residential, 23%
Sales For Resale /
Other, 12%
Gas Sales - Dths
Industrial, 6%
Commercial, 17%
Residential, 25%Transport /
Other, 52%
527,799 customers
$1.3 billion revenue
233,903 customers
$0.4 billion revenue
EEI Financial Conference – November 9-12, 2008 40
WPL Sales (for the year-ended Dec. 31, 2007)
Electric Sales - MWh
Industrial, 33%
Commercia, 15%
Residential, 24%
Sales For Resale /
Other, 28%
Gas Sales - Dths
Industrial, 2%
Commercial, 18%
Residential, 24%
Transport / Other, 56%
453,051 customers
$1.1 billion revenue
175,887 customers
$0.3 billion revenue
EEI Financial Conference – November 9-12, 2008 41
Gas Business Overview
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2003 2004 2005 2006 2007
Sale
s - 0
00s
Dth
s
$0
$50
$100
$150
$200
$250
Mar
gins
- m
illio
ns
Sales - Retail Sales - Transport Margins
EEI Financial Conference – November 9-12, 2008 42
Coal Plants: Equivalent Availability Factor (EAF) and Fuel Cost Per MWh2003-2007 Five Year Average
1 Megawatts represent 100% of unit, not Alliant Energy share2 Source is GADS (Generating Availability Data System)3 Source is FERC Form 1
$11.3484.5%190BurlingtonIPL
$16.0988.4%200Kapp 2IPL
$18.4681.2%240Lansing 4IPL
$9.9278.7%675OttumwaIPL
$15.4091.1%408Edgewater 5WPL
$16.2486.3%348Edgewater 4WPL
$13.5284.4%535Columbia 2WPL
$13.6684.6%535Columbia 1WPL
Fuel $/MWh3EAF2MW1Plant
EEI Financial Conference – November 9-12, 2008 43
Reliability ComparisonSAIDI and SAIFI Calculations - Excluding Major Storms
System Average Interruption Duration Index (SAIDI)
Source: DMS (and OMS)
0
20
40
60
80
100
120
140
160
180
Min
utes
IPL 124.2 90 114.6 155.4 114.6 115.2 107.5 115.3 84.06 112.3
WPL 166.2 134.4 118.2 155.4 120 101.3 93.3 116.2 102.7 127
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
System Average Interruption Frequency Index (SAIFI)
Source: DMS (and OMS)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
IPL 1.36 1.2 1.5 1.7 1.45 1.35 1.04 1.27 1.02 1.1503
WPL 1.43 1.41 1.26 1.18 1.3 1.255 0.99 1.03 0.97 1.3161
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
EEI Financial Conference – November 9-12, 2008 44
Electric Rate Comparison Typical Monthly Bill (1)
$31,512$1,577$91WPL average$31,354$1,479$89WE
$26,794$1,397$92WPS
$37,203$1,560$109MGEWisconsin:
$33,557$1,300$93IPL average$19,993$917$68Mid-American average
Iowa:Industrial(4)Commercial(3)Residential(2)
Source: EEI(1) Annualized rates in effect June 30, 2008(2) Based on 750 KWh/month(3) Based on 14,000 KWh/month and 40 KW demand(4) Based on 400,000 KWh/month and 1,000 KW demand
EEI Financial Conference – November 9-12, 2008 45
WisconsinComparison of Total Overall Retail Rates (Ending 12/31)
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2001 2002 2003 2004 2005 2006 2007
cent
s/kW
h
MG&E (WI) Wisc Elec (WI) WPS (WI) NSP (WI) WPL (WI)
Source: Edison Electric Institute
Iowa and Minnesota Comparison of Total Overall Retail Rates (Ending 12/31)
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2001 2002 2003 2004 2005 2006 2007
cent
s/kW
h
IPL (IA ) MID A M (IA ) IPL (MN) MPC (MN) NSPC (MN) OTTER (MN)
Source: Edison Electric Institute
Our goal is to maintain rate increases of an average of less than 6 percent annually during our build out years, including fuel costs. Plans to manage those increases are as follows:
Utilize program management to efficiently execute our new generation and environmental compliance plansFocus on cost reduction and operational efficiency in all aspects of the business by utilizing Lean Six Sigma (LSS)Deploy technology that improves operational efficiency and/or permanently reduces costs while enhancing customer experienceImplement energy efficiency and demand-side management programs that enable customers to better manage their individual costsHedge fuel costs according to plans approved by our regulators
Customer Rates - Overview
EEI Financial Conference – November 9-12, 2008 46
Midwest Region - Customer Satisfaction Scores 659
642
636
630
621
620
618
616
607
601
600
597
592
591
556
550
M idA merican Energy
We Energies
Xcel Energy-M idwest
A lliant Energy
Indianapo lis P o wer & Light
D etro it Ediso n
Westar Energy
D uke Energy
A EP Ohio
M ID WEST R EGION A L A VER A GE
C o nsumers Energy
Ohio Ediso n
T he Illuminat ing C o mpany
A merenUE
C o mEd
A meren Illino is Ut ilit ies
2008 JD Power Electric Business (Retail Customers) Study
EEI Financial Conference – November 9-12, 2008 47
2008 JD Power Electric Business (Industrial Customers) Study
Midwest Region - Customer Satisfaction Scores
728
719712711710
704703
692690689
686675
671
666641
612
728E.ON USM idA merican Energy
A quilaC o nsumers Energy
Xcel Energy-M idwestA lliant Energy
Kansas C ity P o wer & LightWe Energies
A EP -M idwestD uke Energy-M idwestF irstEnergy-M idwest
M ID WEST R EGION A VER A GED etro it Ediso nExelo n-C o mEd
N iSo urceWestar Energy
A meren