Wisconsin Power and Light to Hold Base Rates Flat in 2009
Alliant Energy is the parent company of two public utility companies--Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL)--and of Alliant Energy Resources, Inc. (AER), the parent company of Alliant Energy's non-regulated operations. (PRNewsFoto/ALLIANT ENERGY CORPORATION)
MADISON, WI UNITED STATES
Company, sharing pain of economic downturn, decides against filing for emergency rate relief
MADISON, Wis., Feb. 23 /PRNewswire-FirstCall/ -- Despite a double digit
drop in sales among nearly half of its top twenty customers, Wisconsin Power
and Light Company (WPL), a subsidiary of Alliant Energy Corporation
(NYSE: LNT), will hold base rates flat in 2009.
"While we believe the facts support the filing of an emergency rate relief
request, we recognize the challenges the current economic downturn has placed
on many of our customers," said Barbara Swan, President-Wisconsin Power and
Light. "We are hopeful this decision provides some stability to our customers
-- large and small -- during this challenging time."
In December 2008, it was announced that WPL's projected retail sales were
expected to be about six percent below the levels assumed in retail customer
rates. Given the forward-looking test year that Wisconsin regulators use for
rate-making purposes, the sudden and dramatic sales decline makes it nearly
impossible for the company to recover costs authorized by the Public Service
Commission of Wisconsin (PSCW) in its recent rate case.
"We have taken a series of actions to reduce costs in 2009, including
freezing salaries at all levels of the company," said Swan. "At the same time,
we are committed to maintaining the necessary investments needed to provide a
safe and reliable source of energy to our customers. This decision, and its
potential economic impact, does not change that."
As part of a rate case settlement announced in December 2008, WPL has the
ability to request new rates to go into effect in January 2010. The company
currently expects to file an application with the PSCW with such a request
during the second quarter of this year. WPL also continues to monitor the fuel
market for any price volatility which might warrant a fuel adjustment in 2009.
Alliant Energy's 2009 earnings per share guidance that was issued in
December and affirmed earlier this month did not include the potential
positive impacts of emergency rate relief at WPL.
Alliant Energy is an energy-services provider with subsidiaries serving
approximately 1 million electric and over 400,000 natural gas customers.
Providing its customers in the Midwest with regulated electric and natural gas
service is the company's primary focus. Wisconsin Power and Light, the
company's Wisconsin utility subsidiary, serves approximately 450,000 electric
and 175,000 natural gas customers. Alliant Energy, headquartered in Madison,
Wis., is a Fortune 1000 company traded on the New York Stock Exchange under
the symbol LNT. For more information, visit the company's Web site at
http://www.alliantenergy.com.
