TOLEDO CHRONICLE –

CEDAR RAPIDS (SPECIAL) Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporationwill file today a proposal with the Iowa Utilities Board (IUB) to increase its Iowa retail electric rates. IPL’s request seeks to increase annual revenues by approximately $163 million, or 14 percent. The impact of the proposed change in electric rates will vary depending on customer class.

“We are investing nearly $1 billion in 2009 and 2010 to create a clean and reliable energy future for all Iowans,” says Tom Aller, President-IPL. “Our investments focus on expanding renewables, reducing emissions and enhancing reliability. With our investment in the Whispering Willow-East Wind Farm in Franklin County, Iowa, we are powering the equivalent of nearly 50,000 homes with clean, renewable energy. Also, our investments in power plant emissions reduction controls and our electric distribution system are providing Iowans with safe, reliable and environmentally responsible energy.”

Customer impact

The company expects the proposed change in electric rates to impact customers’ electric bills in two stages – interim and final rates.

Interim rates

IPL anticipates implementing interim electric rates on March 20, 2010 and expects interim rates to increase annual electric revenues by approximately $119 million, or 10 percent.

For residential customers, IPL expects interim rates to increase the typical monthly electric bill by approximately $10.62 or 11.7 percent. The impact is based on a monthly energy usage of about 750 kilowatt-hours for residential customers.

Interim rates will remain in effect until the IUB issues a decision on the company’s electric rate request, expected in the first quarter of 2011. If the final electric revenues approved by the IUB are lower than the interim revenue levels, IPL will grant refunds equal to the difference between the interim and final rate levels, plus interest.

Final rates

In final rates, IPL expects the typical residential customer monthly electric bill to increase by an additional two to eight percent or approximately $1.90 to $6.98. The increase will vary by geographic pricing zone for residential customers as IPL is proposing to implement the fifth, and final, step of the electric rate equalization plan previously approved by the IUB in 2006.

Plan to reduce impact of final rates

IPL is also proposing a customer cost management plan designed to reduce the impact of this rate increase for all customer types over the next several years. If approved by the IUB, IPL expects the cost management plan to:

•Reduce billing impacts in 2011 by about $90 million, which would be approximately a four percent reduction from interim rates. The percentage impact will vary by customer type.

•The decrease would be reflected in the energy (fuel) cost part of customers’ bills.

•Phase-in billing impacts over a three year period, beginning in 2011.

The proposed plan intends to utilize the remaining proceeds from previous asset sales, as well as pending tax benefits, to temporarily offset the impacts of the rate increase.

If the customer cost management plan is not approved, the average final rate increase for all customer classes is expected to be approximately four percent above interim rates.

“We are currently in an increasing cost environment as we transition to a green energy future,” adds Aller. “We recognize that while these types of investments provide our customers with safe, reliable and cleaner energy, there are cost impacts on our customers. Our proposed customer cost management plan would reduce the impact of final rates on our customers in the near term, which is important given the difficult economy in which we still find ourselves.”

Energy efficiency programs

Customers can also manage their energy costs through a variety of energy efficiency actions and programs. “We encourage our customers to take advantage of the number of programs our company offers to help customers further manage their energy costs,” says Aller. “We have updated our Web site to make these options even easier to understand and implement.”

Both no-cost and low-cost options for customers to improve their energy efficiency include:

Replace bulbs in your five most-used fixtures with compact fluorescent bulbs, which could save approximately $60 per year.

Reduce your energy bill by getting rid of your older, less efficient, refrigerator or freezer could potentially lower your energy bills by $100-$240 per year.

Learn more about cash-back rewards and tax incentives at alliantenergy.com/rewards or call 1-866-255-4268.

Calculate energy savings opportunities at the company’s www.powerthinkers.com.

Additional information for customers on the rate case and energy-saving ways to reduce the impact of the proposed rate changes is available at www.alliantenergy.com/iowarates. Documents relating to this filing can be found on the IUB Web site at www.iowa.gov/iub.