Exhibit 10.38

SEVERANCE AGREEMENT AND
RELEASE

This
SEVERANCE AGREEMENT AND RELEASE (Agreement) is entered into by and between
Thomas M. Walker (Employee) and Alliant Energy Corporate Services, Inc.
(Employer). In consideration for the mutual promises set forth herein, the
parties agree as follows:

|1. | Severance Date. Employees employment with Employer will terminate
          effective November 15, 2003 (Severance Date). Employee shall receive
          Employees current salary and benefits, including payment for unused
          vacation, through the Severance Date. Except as expressly provided herein, all
          obligations of Employer to Employee will terminate as of the Severance Date.
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|2. | Severance Benefits. In consideration for the release set forth in
          Paragraph 5 of this Agreement and the restrictions set forth in Paragraph 8 of
          this Agreement, Employer will pay to Employee the sum of six hundred eighty
          thousand dollars ($680,000.00), subject to appropriate federal and state
          withholdings, by the next regular pay period following the expiration of the
          seven (7) day revocation period specified in Paragraph 12.
          
Employer
will also pay Employee reasonable attorneys fees, as determined by Employer, incurred by
Employee in the negotiation of this Agreement.
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|3. | Outplacement
Services or Tuition Reimbursement. In further consideration                for the
release set forth in Paragraph 5 of this Agreement and the restrictions
               set forth in Paragraph 8 of the Agreement, Employer will provide Employee
with                up to twenty thousand dollars ($20,000.00) in either outplacement
services or                tuition reimbursement. Outplacement services must be used
within six (6) months                of the Severance Date and tuition reimbursement
benefits must be used within                twenty-four (24) months of the Severance
Date.
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|4. | Other
Benefits. Employee will cease to be eligible to participate under                any
stock option, bonus, equity, incentive compensation, medical, dental, life
               insurance, retirement, pension, and other compensation or benefit plans of
               Employer following the Severance Date except as set forth below.
Thereafter,                Employee will have no rights under such plans, except as
follows:
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|a. |  | If Employee is currently enrolled in a medical plan and/or dental plan of
               Employer, such coverage shall continue through November 30, 2003. Thereafter,
               Employee may elect to continue coverage under federal COBRA provisions for up to
               eighteen (18) months. If Employee elects continued coverage, Employer will pay
               for the COBRA coverage for up to eighteen (18) months.
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|b. |  | If Employee is currently enrolled in any life insurance, spouse life insurance
               or child life insurance plans, such coverage shall continue through November 30,
               2003. Thereafter, Employee may elect to continue coverage in accordance with the
               provisions of those plans at his own cost.
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|c. |  | If Employee is currently enrolled in any accidental death & dismemberment or
               long term disability insurance plans, such coverage will cease on the Severance
               Date.
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|d. |  | Employee will retain any vested rights under all qualified retirement plans of
               Employer in which Employee is a participant and all rights associated with such
               benefits, as determined by the official terms of those plans including the
               Alliant Energy Cash Balance Plan, the Alliant Energy Excess Plan and the Alliant
               Energy 401 (k) Plan. Employees balances in the Alliant Energy Cash Balance
               Plan and the Alliant Energy Excess Plan as of January 1, 2003, were $68,056.35
               and $57,100.18, respectively, for a total of $125,156.53.
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|e. |  | Employee will retain his rights under the Alliant Energy Corporation Key
               Employee Deferred Compensation Plan. Employees entire balance in this plan
               is in the Company stock account and is currently approximately 17,833 shares.
               The balance of this account will be paid to Employee in accordance with the
               terms of the plan.
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|5. | Employees
Release. In exchange for the promises made by Employer                contained in
this Agreement, Employee hereby releases and forever discharges                Employer,
its parent, subsidiaries, affiliates, agents, employees, officers,
               directors, shareholders, successors, and assigns from all claims,
liabilities,                demands and causes of action whether known or unknown, fixed
or contingent,                arising out of or in any way connected with Employees
employment with                Employer or the termination thereof. This Agreement
includes, but is not limited                to, all matters in law, in equity, in
contract, or in tort, pursuant to statute,                including any claim arising
under the Age Discrimination in Employment Act,                Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act,                the Fair Labor
Standards Act, or any other applicable federal, state, or local                law or
ordinance. This Agreement does not apply to any claim or rights that may
               arise under the Age Discrimination in Employment Act after the date this
               Agreement is executed. It is expressly agreed Employee will not institute,
cause                to be instituted, prosecute, or take any award of money or other
damages from                any action, lawsuit, complaint, or proceeding against
Employer which relates to,                or arises out of, Employees employment
with Employer or the termination                thereof; provided, however, that this
provision shall not be deemed to prohibit                either party from taking such
steps as are necessary to enforce the terms and                conditions of this
Agreement.
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|6. | Employers
Release. In exchange for the promises made by Employee                contained in
this Agreement, Employer hereby releases and forever discharges                Employee,
his heirs, executors, estates, personal representatives, legal
               representatives, successors and assigns from all claims, liabilities,
demands                and causes of action of whatsoever kind or nature which Employer
now has or may                hereafter have as a result of Employees employment
with Employer except as                provided in this paragraph and elsewhere in this
Agreement. This release does                not preclude Employer from seeking damages
from Employee for any actions of                Employee which occur after the date of
execution of this Agreement or for any                actions of Employee which occurred
prior to the date of execution of this                Agreement if said actions were not
known to Employer or its attorneys at the                time of execution of this
Agreement.
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|7. | Indemnification;
Cooperation. In the event that Employee is named as an                individual
under investigation or named as a party in any litigation arising out                of
Employees employment with Employer, Employer shall, to the fullest
               extent permitted or required by Sections 180.0850 to 180.0859, inclusive,
of the                Wisconsin Business Corporation Law, including any amendments
thereto, and by any                insurance policies purchased by Employer, indemnify
Employee against any and all                liabilities, and advance any and all
reasonable expenses, incurred by Employee                with regard to such proceeding.
Employee agrees that he shall also fully                cooperate with Employer in any
investigation Employer may conduct or which may                be conducted by a
government agency or entity or in any litigation in which                Employee or
Company may become involved. Such cooperation shall include                Employees
making himself reasonably available for interviews by Employer                or its
counsel, depositions and/or court appearances upon Employers
               request. Employer shall attempt to schedule such cooperation at mutually
               convenient times and places. Employer shall reimburse Employee for
reasonable                expenses, such as telephone, travel, lodging and meal expenses,
incurred by                Employee at Employers request consistent with Employers
generally                applicable policies for employee expenses.
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|8. | Restrictions.
Notwithstanding anything in this Agreement to the contrary,                it is
expressly agreed that all payments under this Agreement shall terminate,
               and that Employer shall have no further obligation under this Agreement,
upon                any violation of the provisions of this Paragraph 8. Payments
pursuant to                this Agreement are intended to serve asconsideration
for these                restrictions. If Employee received payments pursuant to
Paragraph 2 and                violates Paragraph 8, Employee shall repay to Employer the
portion of the                benefits previously received.
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|a. |  | Covenant Not To Compete. The restrictions of this paragraph apply from
               the Severance Date until the second anniversary of the Severance Date and within
               the states of Wisconsin and Iowa. The Employee shall not accept employment with,
               or become a consultant to, any business in any capacity in which his job duties
               would entail assisting that business to compete with the Employers
               business in the above-described geographic area, unless approval is obtained in
               advance from the Employers President. If the Employee advises
               Employers President in writing of a position with a business that he would
               like to accept, Employers President shall respond in writing within a
               reasonable period not to exceed ten (10) business days from the date of receipt
               of the request. Employers President has granted approval to Employee to
               accept employment with, or become a consultant to, Mirant with respect to
               Mirants business interests in Wisconsin and Iowa. Employee shall not
               become a partner or a shareholder in any business that is in competition with
               Employers business in the above-described geographic area, although
               Employee may hold up to a five percent interest in any company without violating
               the provisions of this Paragraph 8.a. The restrictions of this Paragraph 8.a
               shall terminate immediately upon 1) any liquidation or dissolution of Employer
               or 2) any sale of stock, sale of substantially all of the assets, merger,
               reorganization or other transactions that result in 50% or more of the ownership
               or control of Employer being in the hands of persons or entities other than the
               shareholders of the Employer.
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|b. |  | Confidentiality. Employee agrees to hold in strictest of confidence, and
               not use to compete with Employer or disclose to anyone except as expressly
               authorized in writing by Employer, any proprietary or confidential information
               of Employer or other information and data pertaining to the activities and
               operations of Employer and not made available to the general public by Employer
               or with Employers consent. Proprietary and confidential information
               includes, but is not limited to, trade secrets, information relating to the
               business, financial, legal and personnel matters of Employer, information
               relating to the internal operations of Employer such as operations methods,
               equipment, and quality control procedures, information relating to development
               projects, information relating to actual or potential customers or suppliers,
               marketing plans, price and cost data, and proprietary information of other
               companies or individuals which has been disclosed to Employer under a
               requirement of secrecy. Proprietary and confidential information may or may not
               be in documentary form and includes computer software programs, drawings, plans,
               letters and databases. This obligation shall remain in effect for so long as
               Employee has knowledge or possession of information that remains confidential
               and secret. Employee shall promptly return to Employer, and not deliver to
               anyone else, all documents and materials containing proprietary and confidential
               information, including the original and all copies and summaries of such
               documents and materials. In the event Employee breaches the terms of this
               Paragraph 8.b, Employee shall be responsible for whatever damages Employer
               incurs as a result of said breach, including reasonable costs and
               attorneys fees of an action to enforce the Agreement. In addition to all
               of the remedies otherwise available to Employer, Employer shall have the right
               to injunctive relief to restrain and enjoin any actual or threatened breach of
               this Paragraph 8.b.
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|c. |  | Non-Disparagement. Employee agrees that he will not criticize, denigrate
               or disparage Employer in any public forum or in the media or to any third
               parties. For purposes of this paragraph disparage shall mean any
               statements, actions or insinuations, made either directly or through a third
               party, that would tend to lessen the standing or stature of Employer in the eyes
               of an ordinary person.
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| | The
Employee agrees that the restrictions set forth in this Paragraph 8, including but not
limited to, the time period and the geographical area of such restrictions are fair and
reasonable and are reasonably required for the protection of the interests of the Company
and its affiliated companies. In the event that, notwithstanding the foregoing, any of the
provisions of this Paragraph 8 shall be held to be invalid or unenforceable, the remaining
provisions thereof shall nevertheless continue to be valid and enforceable as though the
invalid or unenforceable parts had not been included. In the event that any provision of
this Paragraph 8 relating to the time period and/or the areas of restriction shall be
declared by a court of competent jurisdiction to exceed the maximum time period or areas
such court deems reasonable and enforceable, the time period and/or areas of restriction
deemed reasonable and enforceable by said court shall become and thereafter be the maximum
time period and/or areas.
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|9. | Waiver of Reinstatement and Reemployment. Employee acknowledges, agrees
          and covenants that Employee is not entitled to reemployment or reinstatement of
          employment in any position, capacity, or context with Employer and/or its
          parent, subsidiaries or affiliates, and that Employee will not initiate contact
          with Employer, its parent, subsidiaries or affiliates for the purpose of
          applying for or seeking reemployment or reinstatement of employment in any
          position, capacity or context.
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|10. | Entire Agreement. This Agreement contains the entire agreement between
          the parties, and there are no other understandings or terms, either express or
          implied. This Agreement shall be amended only by a written agreement signed by
          both parties.
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|11. | Voluntary Agreement; Advice of Counsel; 21-Day Period. Employee
          acknowledges and states that (i) Employee has read this Agreement, understands
          its legal and binding effect, and is acting voluntarily and freely in executing
          this Agreement; (ii) Employee has had an opportunity to seek and was advised in
          writing to seek, legal counsel prior to signing this Agreement; and (iii)
          Employee was given at least 21 days to consider the terms of this Agreement
          prior to signing it.
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|12. | Revocation. Employee and Employer expressly agree that Employee has the
          right to revoke this Agreement by providing written notice of Employees
          intent to revoke this Agreement to Erroll B. Davis, Jr. at Alliant Energy P.O.
          Box 77007 Madison, WI 53707-1007 within seven calendar days after Employee signs
          the Agreement. This Agreement shall not become effective or enforceable if
          revoked. Any revocation, however, does not affect Employees separation
          from employment effective as of the Severance Date set forth in Paragraph 1.
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|13. | Effective Date. The Effective Date of this Agreement shall be the eighth
          day following Employees execution of this Agreement if Employee does not
          revoke the Agreement pursuant to Paragraph 12 above.
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|14. | Choice of Law. This Agreement shall be construed under the laws of the
          State of Wisconsin.
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|15. | Binding Effect. This Agreement shall inure to the benefit of and is
          binding upon the parties hereto and their respective heirs, executors, estates,
          personal representatives, legal representative, parents, subsidiaries,
          affiliates, successors and assigns.
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|16. | Employee Acknowledgement.Employee expressly acknowledges the following:
          I HAVE CAREFULLY READ THIS AGREEMENT. I HAVE BEEN ADVISED IN WRITING BY EMPLOYER
          TO TAKE THIS AGREEMENT TO AN ATTORNEY OF MY CHOOSING FOR REVIEW AND EXPLANATION.
          I FULLY UNDERSTAND THE BINDING EFFECT OF THIS AGREEMENT AND THAT IT CONTAINS
          VOLUNTARY RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, RELATING TO, OR ARISING OUT
          OF, MY EMPLOYMENT WITH EMPLOYER OR THE TERMINATION OF THAT EMPLOYMENT. I AM
          SIGNING THIS AGREEMENT VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING
          EMPLOYER FROM ALL CLAIMS RELATING TO, OR ARISING OUT OF, MY EMPLOYMENT OR THE
          TERMINATION OF THAT EMPLOYMENT.
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| | Date: | 11/14/03 | By: | /s/ Thomas M. Walker                          
| | ----- | -------- | --- | ----------------------------------------------
| |       |          |     | [Employee]  Thomas M. Walker                  
| |       |          |     |                                               
| |       |          |     |                                               
| | Date: | 11/14/03 | By: | /s/ Erroll B. Davis, Jr.                      
| |       |          |     | [Name]  Erroll B. Davis, Jr.                  
| |       |          |     | [Title]  President and Chief Executive Officer