ALLIANT ENERGY CORP (LNT, NYSE)
Annual report, fiscal year 2014


# Alliant Energy

2014 ANNUAL REPORT









## WHO WE ARE

Alliant Energy Corporation (NYSE: LNT) is a Midwest U.S. energy company with annual operating revenues of more than $3 billion. Our company is primarily engaged in electric generation and the distribution of electricity and natural gas. Alliant Energy’s utility businesses, Interstate Power and Light and Wisconsin Power and Light, serve approximately 1 million electric customers and 420,000 natural gas customers in Iowa, Wisconsin and Minnesota. Headquartered in Madison, Wis., Alliant Energy has approximately 4,200 employees and more than 29,000 shareowners of record. Based on electric sales, the largest cities served in Iowa and Wisconsin are Cedar Rapids and Janesville, respectively.

Earnings per share – net income



## Dividends per share



*Annual common stock dividend target. Payment of the 2015 dividends is subject to dividend declaration by the Board of Directors.

Five-year return



Comparison of cumulative five-year total return when investing $100 on December 31, 2009.

Alliant Energy Corporation
S&P 500 Index
Edison Electric Institute Stock Index



<table><tr><td>(Dollars in millions, except per share data)</td><td>2014</td><td>2013</td><td>Change</td></tr><tr><td>Operating revenues</td><td>$3,350</td><td>$3,277</td><td>2%</td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td>$383</td><td>$358</td><td>7%</td></tr><tr><td>Earnings per share attributable to Alliant Energy common shareowners</td><td>$3.46</td><td>$3.23</td><td>7%</td></tr><tr><td>Utility electric sales to retail customers (thousands of megawatt-hours)</td><td>25,967</td><td>25,727</td><td>1%</td></tr><tr><td>Total utility electric sales (thousands of megawatt-hours)</td><td>30,043</td><td>30,206</td><td>(1%)</td></tr><tr><td>Utility natural gas sold and transported (thousands of dekatherms)</td><td>123,446</td><td>115,872</td><td>7%</td></tr><tr><td>Cash flows from operating activities</td><td>$892</td><td>$731</td><td>22%</td></tr><tr><td>Construction and acquisition expenditures</td><td>$903</td><td>$798</td><td>13%</td></tr><tr><td>Total assets at year-end</td><td>$12,086</td><td>$11,112</td><td>9%</td></tr><tr><td>Common shares outstanding at year-end (in thousands)</td><td>110,936</td><td>110,944</td><td>-</td></tr><tr><td>Dividends declared per common share (a)</td><td>$2.04</td><td>$1.88</td><td>9%</td></tr><tr><td>Market value per share at year-end</td><td>$66.42</td><td>$51.60</td><td>29%</td></tr><tr><td>Book value per share at year-end</td><td>$31.00</td><td>$29.58</td><td>5%</td></tr><tr><td>Market capitalization at year-end</td><td>$7,368</td><td>$5,725</td><td>29%</td></tr></table>

(a) Effective with the dividend declared and paid in the first quarter of 2015, Alliant Energy’s targeted annualized common stock dividend was increased from $2.04 to $2.20 per share.

The financial data should be read in conjunction with the audited consolidated financial statements and related notes of Alliant Energy. The reported financial data are not necessarily indicative of future operating results or financial position.

The Annual Meeting of Shareowners will be held on Thursday, May 7, 2015 at the Cedar Rapids Marriott, 1200 Collins Road NE, Cedar Rapids, Iowa at 10:30 a.m., Central Daylight Time. We encourage you to attend, meet your board of directors and management team, and allow us to answer any questions you may have.



Forward-looking statements: This annual report contains forward-looking statements. These forward-looking statements should be considered in light of the disclaimer on pages F-4 and F-5. The information contained in the section titled “2014 Financial Information” was filed with the Securities and Exchange Commission (SEC). Alliant Energy disclaims any responsibility to update that information in this annual report.



## My fellow shareowners,

We focused on building
a bright future for our
customers, shareowners and
our company in 2014.

The transformation of our generation fleet continues toward cleaner, more efficient energy sources. We are helping our communities grow by making natural gas available to new customers, and we are recruiting new businesses to our service territories.



Our dedicated and talented employees achieved our goals for safety, reliability, customer service and financial performance. We are proactively building the expertise and talent needed to address increasing retirements in our workforce.

The result was another outstanding year. This wouldn’t happen without the men and women who make Alliant Energy shine and the ongoing support of our shareowners.



## Delivering on our plan

Alliant Energy achieved numerous key milestones in 2014.

The company celebrated the successful completion of two major environmental retrofit projects, one in Wisconsin and one in Iowa, that reduced sulfur dioxide and mercury emissions by 90%.



Construction is underway at our new natural gas-fired Marshalltown, Iowa, generating station.

We announced our plan to construct a new natural gas-fired generating facility in southern Wisconsin called the Riverside Energy Center Expansion.

In partnership with the Indian Creek Nature Center in Cedar Rapids, Iowa, we are creating a self-sustaining solar project that we will use to study and plan future renewable expansion.

Our company is positioned to meet new and existing state and federal environmental targets.

To help maintain competitive costs for our customers in Wisconsin and Iowa, we have retail electric base rate freezes in place through the end of 2016.



## Growing our communities

When our communities thrive and grow, so do we. Our gas business expansion includes a 13-mile pipeline to serve several large industrial customers in Ames, Iowa. In Wisconsin, we are expanding natural gas service to the Oakdale area to stimulate economic development. These projects will provide benefits for years to come.

Our community involvement is central to making our customers’ lives better. In 2014, Alliant Energy and its Foundation invested close to $3 million in creative partnerships.

An example is our partnership with Beloit College in Wisconsin to repurpose Blackhawk Station, a retired generating facility. The building will serve as a campus hub for students for years to come.

The reason we do this is simple. Strong communities mean a vibrant future for the region and for our company.



## Creative problem solving

Our employees seek out solutions for our company and our customers and are applying the best sustainable practices every day.

You can see it in the ways we help customers put energy efficiency to work. You can see it in the new technology that allows us to detect system problems faster and dispatch crews more efficiently.

You will see it in the way we are transforming our customer service with technology to provide additional online options for customers and streamline the customer experience.

Placing a premium on creative thinking is paying off for our customers and our company.

## Creating value

You, and the financial community as a whole, see the excellent value we provide.

The market value of our company grew – surpassing $7 billion for the first time – in 2014. Alliant Energy stock was traded at an all-time high of $69.78 during 2014. And our share price ended the year 29% higher than the close of 2013.



We have increased our common dividend again. That’s 277 consecutive quarters we have paid a dividend.

When combining our strong stock performance and dividend payout over the last five years, we delivered a higher return than you would have earned by investing in the S&P 500 Index or the Edison Electric Institute Stock Index.

We have high expectations for our company’s future. One thing you can always count on: Alliant Energy will operate responsibly, embrace environmental stewardship and continue to earn the trust you have placed in us. Everyone at Alliant Energy thanks you for your support and commitment to our company and our customers.

Sincerely,



Patricia Leonard Kampling
Chairman, President and CEO
March 5, 2015



## Putting innovation to work

A laptop might not seem like new technology, but in the hands of our field employees, these devices help keep the energy flowing. Our tools provide employees with real-time information about gas and electric systems and give them the ability to request needed materials. This speeds up the process for repairs and regular maintenance. These laptops stand up to demanding conditions in the field and streamline operations to serve our customers better.






Environmental stewardship is a core value at Alliant Energy, and making good use of renewable resources is a cornerstone of our strategic plan. Details on our use of renewable resources can be found in our Environmental Report (alliantenergy.com/environmentalreport).





Cleaner air projects,
which included installation
of baghouse and scrubber
systems, were completed in
2014 at the Columbia Energy
Center near Portage, Wis.
The investment in these new
environmental improvements
reduced the amount of sulfur
dioxide and mercury emitted
at the facility by 90%.
We work one-on-one with customers in Iowa and Minnesota to conduct more than 4,000 energy assessments each year and provide more than $88 million to help customers save energy and money. In Wisconsin, we provide approximately $17 million annually to the non-profit Focus on Energy to help customers reduce their overall energy use.






## Safety comes first

Our employees go to work each day with safety as their top priority. Here, gloves for electrical work are tested to make sure they are ready for action. Even the slightest pinhole could cause a hazard, so our equipment testing is stringent.






Helping business customers succeed helps us grow too. Our key account managers work with businesses of all sizes to maximize efficiency, improve operations and boost their bottom line. This partnership helps local businesses position their companies for success.





Our first solar energy generation partnership is underway. Alliant Energy is placing a solar system of between 80 to 100 kilowatts on the Indian Creek Nature Center in Cedar Rapids, Iowa. The effort will allow Alliant Energy to monitor and study new facets of renewable technologies.
Through investments in technology, we are able to perform work in the field faster and more safely than ever before. Advancements like this remote control system help our crews operate equipment at a distance and increase safety. We are constantly researching ways to operate more efficiently. Then, we put that knowledge to use.






## An economic catalyst

Delivering natural gas to new communities and customers expands our markets and grows the local economy. Gas lines, like the one pictured here, are helping businesses grow in places like Ames, Iowa, where a new, 13-mile pipeline is serving several large industrial customers.






# Alliant Energy Corporation
2014
Financial information

## Contents

Management’s Discussion and Analysis of Financial Condition and Results of Operations F-6

Management’s Annual Report on Internal Control over Financial Reporting F-46

Reports of Independent
Registered Public
Accounting Firm F-47

Consolidated Financial Statements F-49

Notes to Consolidated Financial Statements F-53

Selected Financial and Operating Statistics F-101

Our Leaders F-104

Shareowner
Information Inside back cover






## DEFINITIONS

The following abbreviations or acronyms used in this report are defined below:

<table><tr><td>Abbreviation or Acronym</td><td>Definition</td></tr><tr><td>AFUDC</td><td>Allowance for funds used during construction</td></tr><tr><td>Alliant Energy</td><td>Alliant Energy Corporation</td></tr><tr><td>AOCL</td><td>Accumulated other comprehensive loss</td></tr><tr><td>ARO</td><td>Asset retirement obligation</td></tr><tr><td>ARRA</td><td>American Recovery and Reinvestment Act of 2009</td></tr><tr><td>ATC</td><td>American Transmission Company LLC</td></tr><tr><td>ATI</td><td>AE Transco Investments, LLC</td></tr><tr><td>BART</td><td>Best available retrofit technology</td></tr><tr><td>CA</td><td>Certificate of authority</td></tr><tr><td>CAA</td><td>Clean Air Act</td></tr><tr><td>CAIR</td><td>Clean Air Interstate Rule</td></tr><tr><td>Cash Balance Plan</td><td>Alliant Energy Cash Balance Pension Plan</td></tr><tr><td>CAVR</td><td>Clean Air Visibility Rule</td></tr><tr><td>CCR</td><td>Coal combustion residuals</td></tr><tr><td>CDD</td><td>Cooling degree days</td></tr><tr><td>CO2</td><td>Carbon dioxide</td></tr><tr><td>CO2e</td><td>Carbon dioxide-equivalent</td></tr><tr><td>Columbia</td><td>Columbia Energy Center</td></tr><tr><td>Corporate Services</td><td>Alliant Energy Corporate Services, Inc.</td></tr><tr><td>Court</td><td>U.S. District Court for the Western District of Wisconsin</td></tr><tr><td>CPCN</td><td>Certificate of Public Convenience and Necessity</td></tr><tr><td>CRANDIC</td><td>Cedar Rapids and Iowa City Railway Company</td></tr><tr><td>CSAPR</td><td>Cross-State Air Pollution Rule</td></tr><tr><td>CWIP</td><td>Construction work in progress</td></tr><tr><td>DAEC</td><td>Duane Arnold Energy Center</td></tr><tr><td>DCP</td><td>Alliant Energy Deferred Compensation Plan</td></tr><tr><td>DLIP</td><td>Alliant Energy Director Long Term Incentive Plan</td></tr><tr><td>DNR</td><td>Department of Natural Resources</td></tr><tr><td>Dth</td><td>Dekatherm</td></tr><tr><td>Edgewater</td><td>Edgewater Generating Station</td></tr><tr><td>EECR</td><td>Energy efficiency cost recovery</td></tr><tr><td>EEP</td><td>Energy efficiency plan</td></tr><tr><td>EGU</td><td>Electric generating unit</td></tr><tr><td>Emery</td><td>Emery Generating Station</td></tr><tr><td>EPA</td><td>U.S. Environmental Protection Agency</td></tr><tr><td>EPB</td><td>Emissions plan and budget</td></tr><tr><td>EPS</td><td>Earnings per weighted average common share</td></tr><tr><td>FASB</td><td>Financial Accounting Standards Board</td></tr><tr><td>FERC</td><td>Federal Energy Regulatory Commission</td></tr><tr><td>Financial Statements</td><td>Consolidated Financial Statements</td></tr><tr><td>FTIP Act</td><td>Federal Tax Increase Prevention Act</td></tr><tr><td>FTR</td><td>Financial transmission right</td></tr><tr><td>Fuel-related</td><td>Electric production fuel and energy purchases</td></tr><tr><td>FWS</td><td>U.S. Fish and Wildlife Service</td></tr><tr><td>GAAP</td><td>U.S. generally accepted accounting principles</td></tr><tr><td>GHG</td><td>Greenhouse gases</td></tr><tr><td>HAP</td><td>Hazardous air pollutants</td></tr><tr><td>HDD</td><td>Heating degree days</td></tr><tr><td>IPL</td><td>Interstate Power and Light Company</td></tr></table>



<table><tr><td>Abbreviation or Acronym</td><td>Definition</td></tr><tr><td>IRS</td><td>Internal Revenue Service</td></tr><tr><td>ITC</td><td>ITC Midwest LLC</td></tr><tr><td>IUB</td><td>Iowa Utilities Board</td></tr><tr><td>Jo-Carroll</td><td>Jo-Carroll Energy, Inc.</td></tr><tr><td>Kewaunee</td><td>Kewaunee Nuclear Power Plant</td></tr><tr><td>KWh</td><td>Kilowatt-hour</td></tr><tr><td>MACT</td><td>Maximum achievable control technology</td></tr><tr><td>Marshalltown</td><td>Marshalltown Generating Station</td></tr><tr><td>MATS</td><td>Mercury and Air Toxic Standard</td></tr><tr><td>MDA</td><td>Management&#x27;s Discussion and Analysis of Financial Condition and Results of Operations</td></tr><tr><td>MGP</td><td>Manufactured gas plant</td></tr><tr><td>MISO</td><td>Midcontinent Independent System Operator, Inc.</td></tr><tr><td>MPUC</td><td>Minnesota Public Utilities Commission</td></tr><tr><td>MW</td><td>Megawatt</td></tr><tr><td>MWh</td><td>Megawatt-hour</td></tr><tr><td>N/A</td><td>Not applicable</td></tr><tr><td>NAAQS</td><td>National Ambient Air Quality Standards</td></tr><tr><td>Nelson Dewey</td><td>Nelson Dewey Generating Station</td></tr><tr><td>Note(s)</td><td>Notes to Consolidated Financial Statements</td></tr><tr><td>NO2</td><td>Nitrogen dioxide</td></tr><tr><td>NOx</td><td>Nitrogen oxide</td></tr><tr><td>OIP</td><td>Alliant Energy 2010 Omnibus Incentive Plan</td></tr><tr><td>OPEB</td><td>Other postretirement benefits</td></tr><tr><td>PJM</td><td>PJM Interconnection, LLC</td></tr><tr><td>PM</td><td>Particulate matter</td></tr><tr><td>PPA</td><td>Purchased power agreement</td></tr><tr><td>PSCW</td><td>Public Service Commission of Wisconsin</td></tr><tr><td>PSD</td><td>Prevention of Significant Deterioration</td></tr><tr><td>Receivables Agreement</td><td>Receivables Purchase and Sale Agreement</td></tr><tr><td>Resources</td><td>Alliant Energy Resources, LLC</td></tr><tr><td>Riverside</td><td>Riverside Energy Center</td></tr><tr><td>RMT</td><td>RMT, Inc.</td></tr><tr><td>RPS</td><td>Renewable portfolio standard</td></tr><tr><td>SCR</td><td>Selective catalytic reduction</td></tr><tr><td>Sheboygan Falls</td><td>Sheboygan Falls Energy Facility</td></tr><tr><td>SIP</td><td>State implementation plan</td></tr><tr><td>SO2</td><td>Sulfur dioxide</td></tr><tr><td>SSR</td><td>System Support Resource</td></tr><tr><td>TBD</td><td>To be determined</td></tr><tr><td>U.S.</td><td>United States of America</td></tr><tr><td>VEBA</td><td>Voluntary Employees&#x27; Beneficiary Association</td></tr><tr><td>VIE</td><td>Variable interest entity</td></tr><tr><td>WACC</td><td>Weighted-average cost of capital</td></tr><tr><td>Whiting Petroleum</td><td>Whiting Petroleum Corporation</td></tr><tr><td>WPL</td><td>Wisconsin Power and Light Company</td></tr><tr><td>WPL Transco</td><td>WPL Transco, LLC</td></tr></table>



# FORWARD-LOOKING STATEMENTS

Statements contained in this report that are not of historical fact are forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified as such because the statements include words such as "may," "expect," "anticipate," "plan," or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Some, but not all, of the risks and uncertainties of Alliant Energy, IPL and WPL that could materially affect actual results include:

- federal and state regulatory or governmental actions, including the impact of energy, tax, financial and health care 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 fuel costs, operating costs, transmission costs, deferred expenditures, capital expenditures, and remaining costs related to EGUs that may be permanently closed, earning their authorized rates of return, and the payments to their parent of expected levels of dividends;

• the ability to continue cost controls and operational efficiencies;

• the impact of IPL’s retail electric base rate freeze in Iowa during 2015 and 2016;

• the impact of WPL’s retail electric and gas base rate freeze in Wisconsin during 2015 and 2016;

- weather effects on results of utility operations, including impacts of temperature changes in IPL’s and WPL’s service territories on customers’ demand for electricity and gas;

- the impact of the economy in IPL’s and WPL’s service territories and the resulting impacts on sales volumes, margins and the ability to collect unpaid bills;

- the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity;

- the impact of energy efficiency, franchise retention, customer- and third party-owned generation and customer disconnects on sales volumes and margins;

- developments that adversely impact the ability to implement the strategic plan, including unanticipated issues with new emission controls equipment for various coal-fired EGUs of IPL and WPL, IPL’s construction of Marshalltown, WPL’s proposed Riverside expansion, various replacements and expansion of IPL’s and WPL’s natural gas distribution systems, Resources’ electricity output and selling price of such output from its Franklin County wind project, the potential decommissioning of certain EGUs of IPL and WPL, and the anticipated sales of IPL’s electric and gas distribution assets in Minnesota;

- issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, performance below expected or contracted levels of output or efficiency, operator error, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental costs through rates;

• disruptions in the supply and delivery of coal, natural gas and purchased electricity;

- changes in the price of delivered coal, natural gas and purchased electricity due to shifts in supply and demand caused by market conditions and regulations, and the ability to recover and to retain the recovery of related changes in purchased power, fuel and fuel-related costs through rates in a timely manner;

- the impact that price changes may have on IPL’s and WPL’s customers’ demand for electric, gas and steam services and their ability to pay their bills;

- issues associated with environmental remediation and environmental compliance, including compliance with the Consent Decree between WPL, the Sierra Club and the EPA, future changes in environmental laws and regulations, including the EPA’s recently issued proposed regulations for CO \( _{2} \)  emissions reductions from new and existing fossil-fueled EGUs and the final CCR rule, and litigation associated with environmental requirements;

- the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, state natural resources agencies or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims;

- the ability to recover through rates all environmental compliance and remediation costs, including costs for projects put on hold due to uncertainty of future environmental laws and regulations;

- impacts that storms or natural disasters in IPL’s and WPL’s service territories may have on their operations and recovery of, and rate relief for, costs associated with restoration activities;

- the direct or indirect effects resulting from terrorist incidents, including physical attacks and cyber attacks, or responses to such incidents;



- the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns;

- the direct or indirect effects resulting from breakdown or failure of equipment in the operation of natural gas distribution systems, such as leaks, explosions and mechanical problems, and compliance with natural gas distribution safety regulations, such as those that may be issued by the Pipeline and Hazardous Materials Safety Administration;

• risks associated with deployment and integration of a new customer billing and information system expected in 2015;

- impacts of IPL’s future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures and allocation of mixed service costs, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods;

- any material post-closing adjustments related to any past asset divestitures, including the sale of RMT, which could result from, among other things, warranties, parental guarantees or litigation;

• continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;

• inflation and interest rates;

- changes to the creditworthiness of counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters;

- issues related to electric transmission, including operating in Regional Transmission Organization energy and ancillary services markets, the impacts of potential future billing adjustments and cost allocation changes from Regional Transmission Organizations and recovery of costs incurred;

• changes made by FERC to ATC’s authorized return on equity;

• current or future litigation, regulatory investigations, proceedings or inquiries;

• Alliant Energy’s ability to sustain its dividend payout ratio goal;

- employee workforce factors, including changes in key executives, collective bargaining agreements and negotiations, work stoppages or restructurings;

• access to technological developments;

• changes in technology that alter the channels through which electric customers buy or utilize power;

• material changes in retirement and benefit plan costs;

• the impact of performance-based compensation plans accruals;

- the effect of accounting pronouncements issued periodically by standard-setting bodies, including a new revenue recognition standard, which is currently expected to be adopted in 2017;

• the impact of changes to production tax credits for wind projects;

• the impact of adjustments made to deferred tax assets and liabilities from state apportionment assumptions;

- the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire;

- the ability to successfully complete tax audits and changes in tax accounting methods, including changes required by new tangible property regulations with no material impact on earnings and cash flows; and

• factors listed in MDA.

Alliant Energy, IPL and WPL each assume no obligation, and disclaim any duty, to update the forward-looking statements in this report, except as required by law.



# MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This MDA includes information relating to Alliant Energy, IPL and WPL, as well as Resources and Corporate Services. Where appropriate, information relating to a specific entity has been segregated and labeled as such. The following discussion and analysis should be read in conjunction with the Financial Statements and Notes included in this report. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.

## CONTENTS OF MDA

MDA consists of the following information:

• Executive Summary

• Strategic Overview

• Rate Matters

• Environmental Matters

• Legislative Matters

• Results of Operations

• Liquidity and Capital Resources

• Other Matters

• Market Risk Sensitive Instruments and Positions

• New Accounting Pronouncements

• Critical Accounting Policies and Estimates

• Other Future Considerations

## EXECUTIVE SUMMARY

## Description of Business

General - Alliant Energy is an investor-owned public utility holding company whose primary subsidiaries are IPL, WPL, Resources and Corporate Services. IPL is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas in select markets in Iowa and southern Minnesota. WPL is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas in select markets in southern and central Wisconsin. At December 31, 2014, WPL and Resources, through their ownership interests in WPL Transco, in aggregate held an approximate 16% ownership interest in ATC, a transmission-only utility operating primarily in the Midwest. Resources is the parent company for Alliant Energy’s non-regulated businesses. Corporate Services provides administrative services to Alliant Energy and its subsidiaries. An illustration of Alliant Energy’s primary businesses is shown below.



(a) In September 2013, IPL signed definitive agreements to sell its Minnesota electric and natural gas distribution assets. Refer to Note 3 for further discussion of these anticipated sales.

Utilities and Corporate Services - IPL and WPL own a portfolio of EGUs located in Iowa, Wisconsin and Minnesota with a diversified fuel mix including coal, natural gas and renewable resources. The output from these EGUs, supplemented with purchased power, is used to provide electric service to approximately 1 million electric customers in the upper Midwest. The utility business also procures natural gas from various suppliers to provide service to approximately 420,000 retail gas customers in the upper Midwest. Alliant Energy’s utility business is its primary source of earnings and cash flows. The earnings and cash flows from the utilities and Corporate Services business are sensitive to various external factors including, but not limited to, the amount and timing of rates approved by regulatory authorities, the impact of weather and economic conditions on electric and gas sales volumes and other factors listed in “Forward-looking Statements.”



Non-regulated Business and Parent - Resources manages various businesses including Non-regulated Generation (EGU management), Transportation (short-line railway and barge transportation services) and several other modest investments. Parent includes the operations of Alliant Energy (parent holding company).

Financial Results - Details regarding Alliant Energy’s net income and EPS attributable to Alliant Energy common shareowners were as follows (dollars in millions, except per share amount):

<table><tr><td rowspan="2"></td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td>Net Income</td><td>EPS</td><td>Net Income</td><td>EPS</td></tr><tr><td>Continuing operations:</td><td></td><td></td><td></td><td></td></tr><tr><td>Utilities and Corporate Services</td><td>$373.3</td><td>$3.37</td><td>$356.5</td><td>$3.22</td></tr><tr><td>Non-regulated and Parent</td><td>12.2</td><td>0.11</td><td>7.7</td><td>0.07</td></tr><tr><td>Income from continuing operations</td><td>385.5</td><td>3.48</td><td>364.2</td><td>3.29</td></tr><tr><td>Loss from discontinued operations</td><td>(2.4)</td><td>(0.02)</td><td>(5.9)</td><td>(0.06)</td></tr><tr><td>Net income</td><td>$383.1</td><td>$3.46</td><td>$358.3</td><td>$3.23</td></tr></table>

The table above includes utilities and Corporate Services, and non-regulated and parent EPS from continuing operations, which are non-GAAP financial measures. Alliant Energy believes utilities and Corporate Services, and non-regulated and parent EPS from continuing operations are useful to investors because they facilitate an understanding of segment performance and trends and provide additional information about Alliant Energy’s operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Alliant Energy’s management also uses utilities and Corporate Services EPS from continuing operations to determine performance-based compensation.

Utilities and Corporate Services - Higher EPS from continuing operations in 2014 compared to 2013 was primarily due to:

• $0.70 per share of lower purchased electric capacity expense related to the previous DAEC PPA recorded in 2014 compared to 2013;

• $0.33 per share of purchased electric capacity expense related to the Kewaunee PPA that expired in 2013;

• $0.06 per share of lower income tax expense at IPL in 2014 compared to 2013 due to Iowa rate-making practices; and

• $0.06 per share of charges related to preferred stock redemptions at IPL and WPL in 2013.

These items were partially offset by:

- $0.39 per share of retail electric customer billing credits at IPL in 2014 related to an approved settlement agreement for its Iowa retail electric base rates;

• $0.11 per share of higher energy efficiency cost recovery amortizations at WPL in 2014 compared to 2013;

- $0.08 per share of higher generation, distribution and customer service operation and maintenances expenses in 2014 compared to 2013;

- an estimated $0.08 per share of net decreases in revenues from lower electric and gas sales in 2014 compared to 2013 due to weather conditions;

• $0.08 per share of higher depreciation expense in 2014 compared to 2013;

• $0.06 per share of higher interest expense in 2014 compared to 2013;

- $0.05 per share from changes in the revenue requirement adjustment related to certain IPL tax benefits in 2014 compared to 2013;

• $0.05 per share of higher electric transmission service expense, net of recoveries, in 2014 compared to 2013; and

• $0.05 per share of lower electric margins related to changes in the recovery of fuel-related expense at WPL.

Refer to “Results of Operations” for additional details regarding the various factors impacting earnings during 2014, 2013 and 2012.

## Strategic Overview Highlights

The strategic plan focuses on the core business of delivering regulated electric and natural gas service in Iowa and Wisconsin, and is built upon three key elements: competitive costs, safe and reliable service, and responsible resources. Key strategic plan developments include the following. Refer to “Strategic Overview” for a more detailed discussion of strategic plan developments.

- January 2014 - WPL received an order from the PSCW approving a request for generation maintenance and performance improvements at Columbia Units 1 and 2. WPL expects to begin construction in the first half of 2015 and place the projects in service by the end of 2017.



- April 2014 - The scrubber and baghouse at WPL’s Columbia Unit 2 were placed in service. In addition, the scrubber and baghouse at WPL’s Columbia Unit 1 were placed in service in July 2014.

• May 2014 - The scrubber and baghouse at IPL’s George Neal Unit 3 were placed in service.

- June 2014 - After receiving the final necessary regulatory approvals and permits in the second quarter of 2014, IPL began constructing Marshalltown, an approximate 650 MW natural gas-fired combined-cycle EGU. IPL currently expects to place Marshalltown in service in the second quarter of 2017.

- November 2014 - WPL announced plans to file a CPCN application with the PSCW in early 2015 for approval to construct an approximate 650 MW natural gas-fired combined-cycle EGU in Beloit, Wisconsin, referred to as the Riverside expansion. A decision from the PSCW on WPL's request is currently expected by mid-2016. Construction of the Riverside expansion is also subject to the receipt of various approvals and permits necessary to construct and operate the EGU. Subject to such approvals, construction is currently expected to begin in 2016 and be completed by early 2019. Capital expenditures are currently estimated to be approximately $725 million to $775 million to construct the EGU and a pipeline to supply natural gas to the EGU. The estimated capital expenditures exclude transmission network upgrades and AFUDC.

- December 2014 - The MPUC issued an order approving the proposed sale of IPL’s Minnesota natural gas distribution assets. IPL currently expects to complete the sale in 2015 pending completion of various other contingencies. Proceeds from the sale of the natural gas distribution assets, which approximate the carrying value of such assets, are expected to be approximately $10 million, subject to customary closing adjustments.

• December 2014 - The scrubber and baghouse at IPL’s Ottumwa Unit 1 were placed in service.

- January 2015 - WPL received an order from the PSCW approving WPL’s CA application to install an SCR system at Columbia Unit 2 to reduce NOx emissions at the EGU. WPL’s portion of the capital expenditures for the SCR system, excluding AFUDC, is currently estimated to be between $60 million and $80 million. WPL currently expects to place the project in service in 2018.

## Rate Matters Highlights

Federal regulation of wholesale electric rates is administered by FERC and state regulation of retail utility rates is administered by the IUB, PSCW and MPUC. Key regulatory developments include the following. Refer to “Rate Matters” for a more detailed discussion of regulatory developments.

- July 2014 - WPL received an order from the PSCW authorizing WPL to maintain retail electric base rates at their current levels through the end of 2016. The retail electric base rate case included a return of and a return on costs for emission controls projects at Columbia Units 1 and 2 and Edgewater Unit 5, generation performance and reliability improvements at Columbia Units 1 and 2, other ongoing capital expenditures, and an increase in electric transmission service expense. The additional revenue requirement for these cost increases was offset by the impact of changes in the amortization of regulatory liabilities associated with energy efficiency cost recoveries and increased sales volumes. The order also authorized WPL to implement a $5 million decrease in annual retail gas base rates effective January 1, 2015 followed by a freeze of such gas base rates through the end of 2016.

- September 2014 - The IUB approved a settlement agreement, which extends IPL’s Iowa retail electric base rates authorized in its 2009 test year case through 2016 and provides retail electric customer billing credits of $105 million in aggregate, including targeting $70 million in 2014 (beginning May 2014), $25 million in 2015 and $10 million in 2016. In 2014, IPL recorded $72 million of such retail electric customer billing credits. IPL will make adjustments to future billing credits to provide retail electric customer billing credits of $105 million in aggregate. The settlement agreement included the continuation of the energy adjustment clause, transmission cost rider and electric tax benefit rider credits; the ability for IPL to seek rate relief if a significant event occurs; and the ability for parties to the DAEC PPA proceeding to request show cause action if IPL’s Iowa retail electric return on common equity exceeds 11% for 2014, 2015 or 2016.

- December 2014 - WPL received an order from the PSCW authorizing an annual retail electric rate increase of $39 million, or approximately 4%, effective January 1, 2015. The increase includes $39 million of anticipated increases in retail electric fuel-related costs in 2015 attributable to $25 million for higher retail electric fuel-related costs per MWh anticipated in 2015 and $14 million from the impact of increased sales volumes approved in the retail electric base rate case for 2015.

- December 2014 - The IUB issued an order authorizing $75 million of regulatory liabilities from tax benefits to be credited to IPL’s retail electric customers’ bills in Iowa during 2015 through the electric tax benefit rider. In December 2014, the IUB also authorized IPL to reduce the $75 million of billing credits on customers’ bills by $15 million in 2015 to recognize the revenue requirement impact of the changes in tax accounting methods.



## Environmental Matters Highlights

Environmental matters are regulated by various federal, state and local authorities. Key environmental developments include the following. Refer to “Environmental Matters” for a more detailed discussion of environmental developments.

- June 2014 - The EPA issued proposed standards to reduce  \( CO_{2} \)  emissions from existing fossil-fueled EGUs. The EPA is proposing a two-part goal structure: an “interim goal” that each state meets an average threshold over the period from 2020 through 2029, and a “final goal” based on a three-year rolling average that each state meets beginning in 2030. State plans that provide details of how these guidelines are to be met would be required by June 30, 2016. The EPA’s proposal allows for a one-year extension to submit state-only plans and a two-year extension if a state elects to join a regional multi-state program. In August 2014, the EPA’s legal authority to issue the proposed standards was challenged. The EPA is currently expected to issue final standards in 2015.

- August 2014 - The EPA published a final rule related to Section 316(b) of the Federal Clean Water Act rule to regulate cooling water intake structures and minimize adverse environmental impacts to fish and other aquatic life. Compliance with this final rule will be incorporated during periodic facility permit renewal cycles, with final compliance anticipated by 2022.

- December 2014 - The EPA issued the final CCR rule, which regulates CCR as a non-hazardous waste. The final rule establishes minimum criteria for disposing of CCR in landfills and surface impoundments (ash ponds), and allows for continued operation of ash ponds if they meet certain location and performance criteria. The rule is currently anticipated to become effective in 2015.

- January 2015 - CSAPR replaced CAIR. Compliance with CSAPR emissions limits began in 2015, with additional emissions limits reductions beginning in 2017.

## Legislative Matters Highlights

Various legislative developments are monitored, including those relating to energy, tax, financial and other matters. Key legislative developments include the following. Refer to “Legislative Matters” for a more detailed discussion of legislative developments.

- December 2014 - The FTIP Act was enacted. The most significant provisions of the FTIP Act for Alliant Energy, IPL and WPL relate to the extension of bonus depreciation deductions for certain expenditures for property that were incurred through December 31, 2014.

## Liquidity and Capital Resources Highlights

Based on current liquidity positions and capital structures, the additional capital required to implement the strategic plan and to meet long-term contractual obligations is expected to be available. Key financing developments include the following. Refer to “Liquidity and Capital Resources” for a more detailed discussion of financing developments.

- March 2014 - IPL extended through March 2016 the purchase commitment from the third party to which it sells its receivables.

- October 2014 - WPL issued $250 million of 4.1% debentures due 2044. The proceeds from the issuance were used by WPL to reduce commercial paper and for general corporate purposes.

- October 2014 - Alliant Energy entered into a $250 million variable-rate term loan credit agreement and used the proceeds from borrowings under this agreement to retire its $250 million, 4% senior notes. The term loan credit agreement expires in October 2016.

- November 2014 - IPL issued $250 million of 3.25% senior debentures due 2024. The proceeds from the issuance were used by IPL to reduce cash proceeds received from its sales of accounts receivable program, reduce commercial paper classified as long-term debt by $60 million and for general corporate purposes.

- November 2014 - WPL received authorization from the PSCW to issue up to $500 million of long-term debt securities during 2015 and 2016, with no more than $300 million to be issued in either year.

- November 2014 - Alliant Energy, IPL and WPL announced their future financing plans. IPL currently expects to issue up to $300 million of additional long-term debt in 2015. IPL's $150 million, 3.3% senior debentures mature in 2015. Alliant Energy currently expects to issue approximately $150 million of common stock in 2015 through one or more offerings and its Shareowner Direct Plan.

- November 2014 - Alliant Energy announced an increase in its targeted 2015 annual common stock dividend to $2.20 per share, which is equivalent to a quarterly rate of $0.55 per share, beginning with the February 2015 dividend payment.

- December 2014 - Franklin County Holdings LLC, Resources’ wholly-owned subsidiary, entered into a $60 million variable-rate term loan credit agreement and used the proceeds to retire its borrowings under a term loan credit agreement that matured in December 2014. The latest term loan credit agreement expires December 2016.

- December 2014 - At December 31, 2014, Alliant Energy and its subsidiaries had $859 million of available capacity under the revolving credit facilities, $128 million of available capacity at IPL under its sales of accounts receivable program and $57 million of cash and cash equivalents.



## Other Matters Highlights

Other key developments that could impact future financial condition or results of operations include the following. Refer to “Other Matters” for a more detailed discussion of potential impacts to future financial condition and results of operations.

October 2014 - FERC issued an order on a complaint against the MISO transmission owners. The order established hearing and settlement procedures on the return on equity component of the complaint, and established a refund period back to November 12, 2013. FERC also denied a request to limit the regulatory capital structure to 50% of common equity, among other items. Settlement discussions between the parties were held and no agreement was reached. The complaint is now subject to hearing procedures and an initial decision from FERC on the complaint is currently expected in late 2015. Alliant Energy, IPL and WPL are currently unable to determine what, if any, impact the October 2014 FERC order, subsequent hearing procedures and a new methodology FERC established for determining the return on equity may have on the returns authorized by FERC for MISO transmission owners, including ITC and ATC.

- January 2015 - FERC issued an order accepting a request from a group of MISO transmission owners, including ITC and ATC, to implement a 50 basis point incentive adder to their return on equity based on participation in MISO. The implementation of the adder is effective January 2015, subject to certain conditions. Alliant Energy, IPL and WPL are currently unable to determine any resulting changes to future electric transmission service charges.

## STRATEGIC OVERVIEW

Strategic Plan - The strategic plan focuses on the core business of delivering regulated electric and natural gas service in IPL's Iowa and WPL's Wisconsin service territories. The strategic plan is built upon three key elements: competitive costs, safe and reliable service, and responsible resources.

Competitive Costs - Providing competitive and predictable energy costs for customers is a key element of the strategic plan. The majority of energy costs become part of rates charged to IPL's and WPL's customers and any rate increase has an impact on such customers. Given that potential public policy changes and resulting increases in future energy costs are possible, there is a focus on controlling costs with the intent of providing competitive rates to IPL's and WPL's customers. For example, IPL and WPL have retail electric base rate freezes in Iowa and Wisconsin, respectively, during 2015 and 2016. IPL also has electric and gas tax benefit riders, which utilize tax benefits from income tax strategies to provide credits on Iowa retail customers' bills to help offset impacts of rate increases. Refer to Note 2 for additional discussion of the retail electric base rate freezes, and Note 11 and "Rate Matters" for further discussion of the tax benefit riders.

Safe and Reliable Service - The strategic plan also focuses resources on providing safe and reliable electricity and natural gas service. Investments are expected to be targeted in electric and gas distribution system improvements, replacing aging infrastructure and distribution grid efficiency to maintain strong reliability. System performance is monitored and necessary steps are taken to continually improve the safety and reliability of service for customers. Providing exceptional customer service, including emergency and outage response, is part of the mission and commitment to customers.

Responsible Resources - Another key element of the strategic plan is finding innovative ways to meet environmental objectives, improve energy efficiency and provide resource flexibility. A diversified fuel mix for EGUs is important to meet the energy needs of customers and also recognizes the importance of using resources in environmentally responsible ways for the benefit of future generations. The current strategic plan, which is focused on a balanced and flexible portfolio of energy resources to meet IPL's and WPL's customers' short- and long-term energy needs, includes the following diversified and responsible portfolio of energy resources:

- Natural gas - purchasing, constructing and/or converting to natural gas-fired EGUs. IPL is currently constructing Marshalltown, an approximate 650 MW natural gas-fired combined cycle EGU, and M.L. Kapp Unit 2 is expected to switch from coal to natural gas as its only fuel type in 2015. WPL currently plans to file a CPCN application with the PSCW in early 2015 for approval to construct an approximate 650 MW natural gas-fired combined cycle EGU referred to as the Riverside expansion.

- Coal - implementing emission controls and generation performance and reliability improvements at newer, larger and more efficient coal-fired EGUs, and fuel switching at, and retirement of, certain older, smaller and less efficient coal-fired EGUs.

- PPAs - purchasing electricity to meet a portion of customer demand for electricity, including wind power PPAs and a nuclear generation PPA related to DAEC for a term of February 22, 2014 through December 31, 2025.

Renewables - operating hydroelectric generators and current wind projects, as well as evaluating the development of future wind sites and solar projects. IPL and WPL currently have up to 400 MW and 200 MW of undeveloped wind sites, respectively, available for future wind projects. Alliant Energy, IPL and WPL are also exploring opportunities to integrate solar projects into the portfolio of energy resources as the cost to produce solar energy continues to decline.



Installing emission controls at the more efficient coal-fired EGUs, increasing levels of energy produced by natural gas-fired EGUs, and increasing levels of energy produced by wind projects and other renewable energy resources results in significant environmental benefits. As a result of these efforts, SO \( _{2} \)  and NO \( _{x} \)  emissions are currently expected to be reduced by approximately 90% and 80%, respectively, from 2005 levels by 2025. Mercury emissions are currently expected to be reduced by approximately 90% from 2009 levels by 2025. CO \( _{2} \)  emissions have been reduced by approximately 15% from 2005 levels. Additional generation portfolio details, as well as discussion of investments in emission controls and performance and reliability upgrades, are included in “Generation Plans” and “Environmental Compliance Plans” below.

Energy efficiency is also an important part of the strategic plan and provides customers with the opportunity to reduce their energy usage and related costs through the use of new energy efficient equipment, products and practices. IPL currently expects to spend approximately $400 million for electric and natural gas energy efficiency programs in Iowa from 2014 through 2018. In addition, WPL contributes 1.2% of its annual utility revenues to Wisconsin’s Focus on Energy program. Refer to “Energy Efficiency Programs” below for further discussion of energy efficiency programs.

Non-regulated Operations - The strategic plan for Alliant Energy’s non-regulated operations involves maintaining a modest portfolio of businesses that are accretive to earnings and cash flows but not significant users of capital.

Generation Plans - Generation plans are reviewed and updated as deemed necessary and in accordance with regulatory requirements. Alliant Energy, IPL and WPL are currently evaluating the types of capacity and energy additions they will pursue to meet their customers' long-term energy needs and are monitoring several related external factors that could influence those evaluations. Some of these external factors include regulatory policies and decisions, changes in long-term projections of customer demand, availability and cost effectiveness of different generation technologies, forward market prices for fossil fuels, market conditions for obtaining financing, developments related to federal and state RPS, environmental requirements, such as any future requirements relating to GHG emissions or renewable energy sources, and federal and state tax incentives.

## Natural Gas-Fired Generation -

IPL’s Construction of Marshalltown - In 2013, the IUB issued an order approving a siting certificate and establishing rate-making principles for IPL’s construction of an approximate 650 MW natural gas-fired combined-cycle EGU in Marshalltown, Iowa, referred to as Marshalltown. In 2013, IPL accepted the IUB’s rate-making principles, which include the following:

- A cost cap of $920 million, including costs to construct Marshalltown, a pipeline to supply natural gas to Marshalltown and transmission network upgrades to transmit electricity from Marshalltown, as well as AFUDC. Any costs incurred in excess of the cost cap are expected to be incorporated into rates if determined to be reasonable and prudent.

- An 11% return on common equity for the 35-year depreciable life of Marshalltown and a 10.3% return on common equity for the calculation of AFUDC related to the construction of Marshalltown.

- The application of double leverage is deferred until IPL’s next retail electric base rate case or other proceeding.

In 2013, the IUB approved the construction of a pipeline for the transportation of natural gas to Marshalltown. After receiving the final necessary regulatory approvals and permits in the second quarter of 2014, IPL began constructing Marshalltown. IPL currently expects to place Marshalltown in service in the second quarter of 2017.

ITC is currently expected to construct the majority of the required transmission network upgrades for Marshalltown. IPL currently anticipates that ITC will pursue an option under the terms of MISO’s Attachment “X” tariff to self-fund these transmission network upgrades. As a result, ITC would incur the capital expenditures to construct the transmission network upgrades and include a direct charge for such transmission network upgrade costs as part of its electric transmission service costs billed to IPL as the owner of Marshalltown. Refer to Note 3 for further discussion of Marshalltown.

WPL’s Proposed Construction of the Riverside Expansion - WPL currently plans to file a CPCN application with the PSCW in early 2015 for approval to construct an approximate 650 MW natural gas-fired combined-cycle EGU in Beloit, Wisconsin, referred to as the Riverside expansion. A decision from the PSCW on WPL’s request is currently expected by mid-2016. Construction of the Riverside expansion is also subject to the receipt of various approvals and permits necessary to construct and operate the EGU. Subject to such approvals, construction is currently expected to begin in 2016 and be completed by early 2019. Capital expenditures are currently estimated to be approximately $725 million to $775 million to construct the EGU and a pipeline to supply natural gas to the EGU. The estimated capital expenditures exclude transmission network upgrades and AFUDC. The Riverside expansion would replace energy and capacity being eliminated with the expected retirements of Edgewater Units 3 and 4, Nelson Dewey Units 1 and 2, and the Rock River and Sheepskin Combustion Turbine Units, which in aggregate have a nameplate capacity of approximately 700 MW.



In May 2014, the PSCW authorized WPL to defer the retail portion of incremental pre-certification and pre-construction costs associated with this proposed EGU beginning March 2014. WPL currently estimates deferral of such costs will be approximately $11 million in aggregate by December 31, 2015.

## Coal-Fired Generation -

Emission Controls Projects - The strategic plan includes new emission controls at newer, larger and more efficient coal-fired EGUs to continue producing affordable energy for customers and to benefit the environment. Refer to “Environmental Compliance Plans” below for details regarding these emission controls projects including the capital expenditures in 2015 through 2018 currently anticipated for these projects. Refer to Note 3 for discussion of individual emission controls projects placed in service in 2014.

Generation Improvement Projects - The strategic plan includes investments in generation maintenance and performance improvements at newer, larger and more efficient coal-fired EGUs, including WPL's Edgewater Unit 5 and Columbia Units 1 and 2. Refer to “Liquidity and Capital Resources” for details regarding estimated capital expenditures in 2015 through 2018 for these generation maintenance and performance improvement projects. Construction of IPL's Ottumwa Unit 1 generation maintenance and performance improvements was completed in 2014.

Columbia Units 1 and 2 - In January 2014, WPL received an order from the PSCW approving a request for generation maintenance and performance improvements at Columbia Units 1 and 2. WPL's portion of the capital expenditures for the projects, excluding AFUDC, is currently estimated to be between $55 million and $65 million. WPL currently expects to begin construction in the first half of 2015 and place the projects in service by the end of 2017.

Plant Retirements or Fuel Switching - The current strategic plan includes the retirement of several older, smaller and less efficient EGUs in the next few years as follows:

<table><tr><td>EGU (In-Service Year)</td><td>Nameplate Capacity (a)</td><td>Expected Action (b)</td></tr><tr><td>IPL:</td><td></td><td></td></tr><tr><td>Dubuque Units 3 and 4 (1952-1959)</td><td>66 MW</td><td>Retire by December 31, 2016 (c)</td></tr><tr><td>Fox Lake Unit 1 (1950)</td><td>11 MW</td><td>Retire by December 31, 2017</td></tr><tr><td>Fox Lake Unit 3 (1962)</td><td>82 MW</td><td>Retire by December 31, 2017 (c) (d)</td></tr><tr><td>Sutherland Units 1 and 3 (1955-1961)</td><td>119 MW</td><td>Retire by December 31, 2017 (d)</td></tr><tr><td>Other units</td><td>Approximately 200 MW</td><td>Retire by December 31, 2017 (d)</td></tr><tr><td>WPL:</td><td></td><td></td></tr><tr><td>Edgewater Unit 3 (1951)</td><td>69 MW</td><td>Retire by December 31, 2015 (e)</td></tr><tr><td>Nelson Dewey Units 1 and 2 (1959-1962)</td><td>227 MW</td><td>Retire by December 31, 2015 (e)</td></tr><tr><td>Edgewater Unit 4 (1969)</td><td>239 MW (f)</td><td>Retire by December 31, 2018 (g)</td></tr><tr><td>Rock River Combustion Turbine Units 3-6 (1967-1972)</td><td>169 MW</td><td>Retire by December 31, 2019 (g)</td></tr><tr><td>Sheepskin Combustion Turbine Unit 1 (1971)</td><td>42 MW</td><td>Retire by December 31, 2019 (g)</td></tr></table>

(a) Nameplate capacity represents the nominal amount of electricity an EGU is designed to produce. Each EGU is also assessed a generating capacity amount from MISO through its annual resource adequacy process. The generating capacity amount assessed by MISO is subject to change each year and is based upon the current performance capability of the EGU and is based on historical forced outages.

(b) As of December 31, 2014, the aggregate net book value of EGUs that may be retired in the future in the table above was $57 million for IPL and $88 million for WPL.

(c) IPL received approval from MISO to retire Dubuque Units 3 and 4, contingent on completion of transmission network upgrades necessary for system reliability. Final MISO studies could indicate that the retirement of Fox Lake Unit 3 may result in reliability issues and that transmission network upgrades for system reliability are necessary to enable such retirements. Under the current MISO tariff, the specific timing for the retirement of these EGUs could depend on the timing of the required transmission network upgrades as well as various operational, market and other factors.

(d) The retirements of Fox Lake Unit 3, Sutherland Units 1 and 3, and other units are contingent on the construction of Marshalltown as well as various operational, market and other factors.

(e) WPL received approval from MISO to retire Edgewater Unit 3, and Nelson Dewey Units 1 and 2, contingent on completion of transmission network upgrades necessary for system reliability.

(f) Reflects WPL’s 68.2% ownership interest in Edgewater Unit 4.

(g) The retirements of Edgewater Unit 4 and the Rock River and Sheepskin Combustion Turbine Units are contingent on the construction of the Riverside expansion as well as various operational, market and other factors.



In addition, IPL’s M.L. Kapp Unit 2, which was placed in service in 1967 and has a nameplate capacity of 218 MW, is expected to switch from coal to natural gas as its only fuel type in 2015, contingent on approval from MISO.

Alliant Energy, IPL and WPL are working with MISO, state regulatory commissions and other regulatory agencies, as required, to determine the final timing of these actions. The expected dates for the retirement and fuel switching of these EGUs are subject to change depending on operational, regulatory, market and other factors. The potential retirement of other EGUs within the generation fleet continues to be evaluated.

## Nuclear Generation -

IPL’s DAEC PPA - In 2013, the IUB issued an order allowing IPL to proceed with a PPA for the purchase of capacity and energy generated by DAEC located near Palo, Iowa. The IUB also authorized IPL to recover the Iowa retail portion of the cost of the DAEC PPA from Iowa retail electric customers through the energy adjustment clause. The terms of the PPA provide IPL the right to the counterparty’s entire output quantities (70% of the total plant output) in exchange for payment from IPL to the counterparty based on the amount of MWhs received by IPL. IPL will purchase up to 431 MWs of capacity and the resulting energy from DAEC for a term from February 22, 2014 through December 31, 2025. Among the terms and conditions of the PPA are guarantees by the counterparty to provide minimum amounts of capacity and energy. The PPA also contains provisions for the replacement of energy from alternative sources under certain conditions as well as provisions that convey to IPL the potential environmental attributes associated with its portion of the output from DAEC. Refer to “Rate Matters” for further discussion of the IUB’s 2013 order approving the DAEC PPA.

## Wind Generation -

Resources’ Franklin County Wind Project - The Franklin County wind project began generating electricity in 2012. Resources is currently selling the electricity output from the wind project into the MISO market as a merchant generator, and is considering different options for this wind project. Such options include entering into a PPA with an independent third party, IPL or WPL; selling the project to an independent third party, IPL or WPL; or continuing to sell the output into the MISO market as a merchant generator. Refer to Note 3 for further discussion of the Franklin County wind project.

Undeveloped Wind Sites - IPL has up to 400 MW of wind site capacity remaining in Franklin County, Iowa. WPL has approximately 200 MW of wind site capacity remaining in Freeborn County, Minnesota. Future development of the balance of these wind sites will depend on numerous factors such as changes in customer demand, RPS, environmental requirements, electricity and fossil fuel prices, wind project costs, technology advancements and transmission capabilities.

Gas Distribution Systems - The Pipeline and Hazardous Materials Safety Administration is expected to expand and/or strengthen regulations related to natural gas transmission and distribution systems in 2015. These changes are expected to help ensure natural gas transmission and distribution systems are properly maintained and operated safely. These changes are also expected to result in more inspections and potential replacement of certain portions of Alliant Energy’s, IPL’s and WPL’s natural gas transmission and distribution systems. In addition, Alliant Energy, IPL and WPL are currently extending various natural gas transmission and distribution systems in their existing Iowa and Wisconsin service territories to serve new customer demand. Estimated capital expenditures for these expected and current projects for 2015 through 2018 are included in the “Gas distribution systems” line in the construction and acquisition expenditures table in “Liquidity and Capital Resources.”

## Utility Business Divestitures -

IPL’s Minnesota Electric and Natural Gas Distribution Assets - Refer to Note 3 for discussion of the MPUC’s order approving the proposed sale of IPL’s Minnesota natural gas distribution assets, as well as the anticipated sale of IPL’s Minnesota electric distribution assets. Alliant Energy and IPL currently do not expect the sales of these assets to have a significant impact on their earnings for 2015.

Environmental Compliance Plans - Environmental compliance plans have been developed to help ensure cost effective compliance with current and proposed environmental laws and regulations. Significant reductions of future emissions of NOx, SO2, PM, mercury and other HAPs at EGUs are expected to be required as a result of these environmental laws and regulations. Environmental compliance plans are reviewed and updated to address various external factors, as deemed necessary and in accordance with regulatory requirements. Some of these external factors include regulatory decisions regarding proposed emission controls projects, developments related to environmental regulations, outcomes of legal proceedings, settlements reached with environmental agencies and citizens groups, availability and cost effectiveness of different emission reduction technologies, market prices for electricity and fossil fuels, market prices for emission allowances, market conditions for obtaining financings, and federal and state tax incentives. Refer to “Environmental Matters” for details of certain current and proposed environmental regulations, including regulations for which these compliance plans are expected to support. The following table provides current estimates of capital expenditures planned for 2015 through 2018 as



well as the total (past and future) project costs for certain emission controls projects included in current environmental compliance plans (in millions):

<table><tr><td>Generating Unit</td><td>Expected In-service Date</td><td>Technology (a)</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>Total Project Cost</td></tr><tr><td>IPL:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Lansing Unit 4</td><td>2015</td><td>Scrubber</td><td>$15</td><td>$—</td><td>$—</td><td>$—</td><td>$50-$60</td></tr><tr><td>WPL:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Edgewater Unit 5</td><td>2016</td><td>Scrubber &amp; Baghouse</td><td>120</td><td>60</td><td>—</td><td>—</td><td>280-320</td></tr><tr><td>Columbia Unit 2</td><td>2018</td><td>SCR</td><td>15</td><td>20</td><td>25</td><td>10</td><td>60-80</td></tr></table>

(a) Scrubber is a post-combustion process that injects lime or lime slurry into the stream of gases leaving the EGU boiler to remove SO \( _{2} \)  and other acid gases (including hydrochloric acid) and capture them in a solid or liquid waste by-product. A scrubber typically removes more than 90% of the SO \( _{2} \)  emissions.

Baghouse, including carbon injection, is a post-combustion process that injects carbon particles into the stream of gases leaving the EGU boiler to facilitate the capture of mercury in filters or bags. This process can remove more than 85% of mercury emissions.

SCR is a post-combustion process that injects ammonia or urea into the stream of gases leaving the EGU boiler to convert NOx emissions into nitrogen and water. The use of a catalyst enhances the effectiveness of the conversion, enabling NOx emissions reductions of up to 90%.

These capital expenditure estimates represent IPL’s or WPL’s respective portion of the total escalated capital expenditures and exclude AFUDC, if applicable. Capital expenditure estimates are subject to change based on future changes to plant-specific costs of emission controls technologies and environmental requirements.

IPL’s Emission Controls Projects - Under Iowa law, IPL is required to file an EPB biennially. Filing of periodic reports regarding the implementation of IPL’s compliance plan and related budget identified in an EPB is also currently required under a settlement agreement between IPL and the Iowa Office of Consumer Advocate. An EPB provides a utility’s compliance plan and related budget for managing regulated emissions from its coal-fired EGUs in a cost-effective manner. IUB approval of an EPB demonstrates that the IUB believes the EPB is reasonably expected to achieve cost-effective compliance with applicable state environmental requirements. In February 2013, the IUB approved IPL’s EPB, which includes the emission controls project for Lansing Unit 4 listed in the above table. Alliant Energy and IPL currently expect the IUB to issue its decision by mid-2015 on an updated EPB, which also includes the emission controls project for Lansing Unit 4 listed in the above table.

Lansing Unit 4 - IPL is constructing a scrubber at Lansing Unit 4 to reduce SO \( _{2} \)  emissions at the EGU. The scrubber at Lansing Unit 4 is expected to support compliance obligations for current and anticipated air quality regulatory requirements, including CSAPR.

WPL’s Emission Controls Projects - WPL must file a CA application and receive authorization from the PSCW to proceed with any individual emission controls project with an estimated project cost of $10 million or more.

Edgewater Unit 5 - In June 2013, WPL received an order from the PSCW approving WPL’s CA application to install a scrubber and baghouse at Edgewater Unit 5 to reduce SO \( _{2} \)  and mercury emissions at the EGU. The scrubber and baghouse are expected to support compliance obligations under the MATS Rule and CSAPR, as well as the Consent Decree entered into with the EPA and the Sierra Club in 2013.

Columbia Unit 2 - In January 2015, WPL received an order from the PSCW approving WPL’s CA application to install an SCR system at Columbia Unit 2 to reduce NOx emissions at the EGU. The SCR is expected to support compliance obligations for current and anticipated air quality requirements, including CSAPR and requirements under the Consent Decree referenced above.

Refer to Note 16(e) for discussion of a Consent Decree approved by the Court in 2013, which includes a requirement for WPL to install emission controls systems noted above at certain of its EGUs.



Energy Efficiency Programs - Several energy efficiency programs and initiatives help customers reduce their energy usage and related costs through the use of new energy efficient equipment, products and practices. The following are current key energy efficiency programs:

IPL EEP - In 2013, IPL received an order from the IUB approving IPL's EEP for 2014 through 2018. The EEP includes IPL spending approximately $400 million for electric and natural gas energy efficiency programs in Iowa from 2014 through 2018, and is expected to conserve electric and natural gas usage equal to that of more than 100,000 homes. In accordance with Iowa law, IPL is required to file an EEP every five years. An EEP provides a utility's plan and related budget to achieve specified levels of energy savings. IUB approval demonstrates that the IUB believes that IPL's EEP is reasonably expected to achieve cost effective delivery of the energy efficiency programs. To the extent approved by the IUB, costs associated with executing the EEP are recovered from ratepayers through an additional tariff called an EECR factor. The EECR factors are revised annually and include a reconciliation to eliminate any over- or under-recovery of energy efficiency expenses from prior periods. There are no carrying costs associated with the cost recovery factors. The annual EECR factors are based on IPL's approved budget as filed with its EEP, along with any over- or under-collection from prior periods, and therefore are not expected to have a material impact on Alliant Energy's and IPL's financial condition or results of operations.

Focus on Energy Program - In 2014 and 2013, WPL contributed 1.2% of annual utility revenues to help fund Focus on Energy, Wisconsin’s state-wide energy efficiency and renewable energy resource program.

## RATE MATTERS

Overview - Alliant Energy has two utility subsidiaries, IPL and WPL. IPL and WPL are subject to federal regulation by FERC, which has jurisdiction over wholesale electric rates and certain natural gas facilities, and state regulation in Iowa, Wisconsin and Minnesota for retail utility rates and standards of service. Such regulatory oversight also covers IPL's and WPL's plans for construction and financing of new EGUs and related activities.

Retail Base Rate Filings - Details of IPL's and WPL's recent retail base rate cases impacting historical and future results of operations are as follows (dollars in millions; Electric (E); Gas (G)):

<table><tr><td>Retail Base Rate Cases</td><td>Utility Type</td><td>Filing Date</td><td>Interim Increase Implemented (a)(b)</td><td>Interim Effective Date</td><td>Final Increase / (Decrease) Granted (b)</td><td>Final Effective Date</td></tr><tr><td>WPL:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Wisconsin 2015/2016 Test Period</td><td>E/G</td><td>Apr-14</td><td>N/A</td><td>N/A</td><td>E-$0; G-($5)</td><td>Jan-15</td></tr><tr><td>Wisconsin 2013/2014 Test Period</td><td>E/G</td><td>May-12</td><td>N/A</td><td>N/A</td><td>E-$0; G-($13)</td><td>Jan-13</td></tr><tr><td>IPL:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Iowa 2011 Test Year</td><td>G</td><td>May-12</td><td>$9</td><td>Jun-12</td><td>$11</td><td>Jan-13</td></tr></table>

(a) In Iowa, IPL’s interim rates can be implemented 10 days after the filing date, without regulatory review and are subject to refund, pending determination of final rates. In Minnesota, IPL’s interim rates can be implemented 60 days after the filing date, with regulatory review and are subject to refund, pending determination of final rates. The amount of the interim rates is replaced by the amount of final rates once the final rates are effective.

(b) Base rate changes reflect both returns on additions to infrastructure and recovery of changes in costs incurred or expected to be incurred. Given that a portion of the rate changes will offset changes in costs, revenues from rate changes should not be expected to result in an equal change in net income for either IPL or WPL.

WPL’s Wisconsin Retail Electric and Gas Rate Case (2015/2016 Test Period) - In July 2014, WPL received an order from the PSCW authorizing WPL to maintain retail electric base rates at their current levels through the end of 2016. The retail electric base rate case included a return of and a return on costs for emission controls projects at Columbia Units 1 and 2 and Edgewater Unit 5, generation performance and reliability improvements at Columbia Units 1 and 2, other ongoing capital expenditures, and an increase in electric transmission service expense. The additional revenue requirement for these cost increases was offset by the impact of changes in the amortization of regulatory liabilities associated with energy efficiency cost recoveries and increased sales volumes. The order also authorizes WPL to implement a $5 million decrease in annual retail gas base rates effective January 1, 2015 followed by a freeze of such gas base rates through the end of 2016.



The order requires escrow treatment of major transmission charges, allows continuation of an 8.2% AFUDC recovery rate, and allows continuation of a 10.4% return on common equity and the following related provisions: (1) WPL may request a change in retail base rates during the test period if its annual regulatory return on common equity falls below 8.5%; and (2) WPL must defer a portion of its earnings if its annual regulatory return on common equity exceeds 10.65% during the test period. WPL must defer 50% of its excess earnings between 10.65% and 11.40%, and 100% of any excess earnings above 11.40%. In addition, the order allows WPL to maintain its ability to request deferrals based on current practices.

Refer to Note 2 for discussion of WPL’s retail fuel-related filing for 2015. The fuel-related cost component of WPL’s retail electric rates for 2016 will be addressed in a separate filing. Refer to Note 7 for details of WPL’s regulatory limitation on distributions of common stock dividends to its parent company in 2015 and 2016.

WPL’s Wisconsin Retail Electric and Gas Rate Case (2013/2014 Test Period) - In July 2012, WPL received an order from the PSCW authorizing WPL to implement a decrease in annual retail gas base rates of $13 million effective January 1, 2013 followed by a freeze of such gas base rates through the end of 2014. The order also authorized WPL to maintain retail electric base rates at their current levels through the end of 2014. Recovery of the costs for the acquisition of Riverside, the SCR project at Edgewater Unit 5 and the scrubber and baggage projects at Columbia Units 1 and 2 were included in the request. The recovery of the costs for these capital projects were offset by decreases in rate base resulting from increased net deferred tax liabilities, the impact of changes in the amortizations of regulatory assets and regulatory liabilities, and the reduction of capacity payments. The order included continuation of a 10.4% return on common equity and a provision that required WPL to defer a portion of its earnings if its annual regulatory return on common equity exceeds 10.65% during the test period. The amount of earnings WPL must defer is equal to 50% of its excess earnings between 10.66% and 11.40% and 100% of any excess earnings above 11.40%. As of December 31, 2014, Alliant Energy deferred $9 million of WPL’s 2013 and 2014 earnings for this provision.

Refer to Note 2 for details of WPL’s retail fuel-related filings for 2013 and 2014 and details of impacts to “Regulatory assets” on Alliant Energy’s balance sheets from the PSCW’s July 2012 order.

IPL’s Iowa Retail Gas Rate Case (2011 Test Year) - In May 2012, IPL filed a request with the IUB to increase annual rates for its Iowa retail gas customers based on a 2011 historical test year as adjusted for certain known and measurable changes occurring up to 12 months after the commencement of the proceeding. The key drivers for the filing included recovery of capital investments since IPL’s last Iowa retail gas rate case filed in 2005. In conjunction with the filing, IPL implemented an interim retail gas rate increase of $9 million, or approximately 3%, on an annual basis, effective June 4, 2012.

In November 2012, the IUB approved a settlement agreement between IPL, the Iowa Office of Consumer Advocate and the Iowa Consumers Coalition related to IPL’s request resulting in a final increase in annual rates for IPL’s Iowa retail gas customers of $11 million, or approximately 4%, effective January 10, 2013, a 9.6% return on common equity after the application of double leverage and the adoption of IPL’s gas tax benefit rider discussed below.

IPL’s Iowa Retail Electric Rate Settlement Agreement - In January 2013, the IUB issued an order allowing IPL to proceed with its DAEC PPA for a term of February 22, 2014 through December 31, 2025 and authorized IPL to recover the Iowa retail portion of the costs of such PPA from Iowa retail electric customers through the energy adjustment clause beginning February 22, 2014. The January 2013 order encouraged IPL to continue discussions with parties to the DAEC PPA proceeding to reach an agreement to resolve concerns expressed by such parties during the proceeding regarding rate impacts for IPL’s Iowa retail electric customers beginning in 2014.

In September 2014, the IUB approved a settlement agreement, which was based on a unanimous agreement among parties to the DAEC PPA proceeding. The settlement agreement extends IPL’s Iowa retail electric base rates authorized in its 2009 test year case through 2016 and provides retail electric customer billing credits of $105 million in aggregate, including targeting $70 million in 2014 (beginning May 2014), $25 million in 2015 and $10 million in 2016. In 2014, IPL recorded $72 million of such retail electric customer billing credits. IPL will make adjustments to future billing credits to provide retail electric customer billing credits of $105 million in aggregate. The settlement agreement included the continuation of the energy adjustment clause, transmission cost rider and electric tax benefit rider credits; the ability for IPL to seek rate relief if a significant event occurs; and the ability for parties to the DAEC PPA proceeding to request show cause action if IPL’s Iowa retail electric return on common equity exceeds 11% for 2014, 2015 or 2016.



Items considered in settlement discussions included costs for emission controls at Ottumwa Unit 1, George Neal Units 3 and 4, Burlington Unit 1 and Prairie Creek Units 3 and 4, generation performance and reliability improvements at Ottumwa Unit 1, and other ongoing capital expenditures; the elimination of purchased electric capacity payments from the previous DAEC PPA that ended in February 2014; and costs of the new DAEC PPA. IPL assumes no change to its current authorized return on common equity and common equity component of the regulatory capital structure authorized in its 2009 test year case.

WPL’s Retail Fuel-related Rate Filings - Refer to Note 2 for discussion of WPL’s retail fuel-related rate filings for test years 2012 through 2015.

IPL’s Tax Benefit Riders - In 2009, IPL filed a request with the IUB to create a regulatory liability account for potential tax benefits resulting from changes in tax accounting methodologies and tax elections available under the Internal Revenue Code. These potential tax benefits are related to the tax treatment of repairs expenditures, allocation of insurance proceeds from floods in 2008 and allocation of mixed service costs. In 2012, IPL filed a report with the IUB requesting approval of the final amount of the regulatory liability account based on the tax benefits generated from these changes in tax accounting methodologies and tax elections that were sustained under IRS audit. The 2012 report filed by IPL identified approximately $500 million of such tax benefits, which included $452 million allocated for use with the electric tax benefit rider and $48 million allocated for use with the gas tax benefit rider discussed below. Refer to “Property Method Changes” below for discussion of additional tax benefits recorded in 2014 from two additional tax accounting method changes implemented in 2014.

Electric - The electric tax benefit rider, which was approved by the IUB and implemented in 2011, utilizes amounts from the regulatory liability account to credit bills of Iowa retail electric customers to help offset the impact of rate increases on such customers. These credits on customers' electric bills reduce electric revenues based on customers' KWh usage. In December 2014, the IUB issued an order authorizing $75 million of regulatory liabilities from tax benefits to be credited to IPL's retail electric customers' bills in Iowa during 2015 through the electric tax benefit rider. In December 2014, the IUB also authorized IPL to reduce the $75 million of billing credits on customers' bills by $15 million in 2015 to recognize the revenue requirement impact of the changes in tax accounting methods. IPL expects the IUB will approve distribution of any remaining benefits in 2016 and 2017.

Gas - IPL’s May 2012 retail gas rate case filing with the IUB included a proposal to utilize regulatory liabilities to credit bills of Iowa retail gas customers to help mitigate the impact of the proposed final rate increase on such customers. These credits on customers’ gas bills reduce gas revenues based on a fixed amount per day. In November 2012, IPL received an order from the IUB authorizing the gas tax benefit rider. The IUB’s order authorized approximately $12 million of regulatory liabilities from tax benefits to be credited to IPL’s retail gas customers’ bills in Iowa annually from January 2013 through December 2015 through the gas tax benefit rider. Any remaining benefit, including any portion not utilized of the agreed upon amount from January 2013 through December 2015, is expected to be credited to Iowa’s retail gas customers’ bills in 2016.

Utilization of Tax Benefit Riders - IPL’s tax benefit riders regulatory liability account has been utilized to credit bills of Iowa retail electric customers as follows:

<table><tr><td></td><td>Electric</td><td>Gas</td><td>Total</td></tr><tr><td>Regulatory liability account balance approved by IUB</td><td>$452</td><td>$48</td><td>$500</td></tr><tr><td>2011 through 2014 customer billing credits</td><td>(308)</td><td>(23)</td><td>(331)</td></tr><tr><td>2015 customer billing credits (estimate)</td><td>(75)</td><td>(12)</td><td>(87)</td></tr><tr><td>Remaining balance available for future periods</td><td>$69</td><td>$13</td><td>$82</td></tr></table>

Property Method Changes - Refer to Note 2 for discussion of $75 million of additional tax benefits recorded in 2014 in another regulatory liability account from two additional tax accounting method changes implemented in 2014, which IPL currently anticipates refunding to its Iowa retail electric and gas customers in the future.

Refer to Notes 2 and 11 for additional discussion of the impacts of the electric and gas tax benefit riders on Alliant Energy’s and IPL’s regulatory assets and regulatory liabilities, income tax expense and effective income tax rates.



Rate Case Details - Details of the currently effective rate orders in IPL’s and WPL’s key jurisdictions were as follows (Common Equity (CE); Preferred Equity (PE); Long-term Debt (LD); Short-term Debt (SD)):

<table><tr><td rowspan="2">Jurisdictions</td><td rowspan="2">Test Period/Year</td><td rowspan="2">Authorized Return on Common Equity (a)</td><td colspan="4">Regulatory Capital Structure</td><td rowspan="2">After-tax WACC</td><td rowspan="2">Average Rate Base (in millions)</td></tr><tr><td>CE</td><td>PE</td><td>LD</td><td>SD</td></tr><tr><td>IPL:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Iowa retail (IUB):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electric:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>- Emery (b)</td><td>2009</td><td>11.58%</td><td>48.2%</td><td>6.5%</td><td>45.3%</td><td>N/A</td><td>8.85%</td><td>$281 (c)</td></tr><tr><td>- Whispering Willow - East (b)</td><td>2009</td><td>11.09%</td><td>48.2%</td><td>6.5%</td><td>45.3%</td><td>N/A</td><td>8.61%</td><td>266 (c)</td></tr><tr><td>- Other (b)</td><td>2009</td><td>9.53%</td><td>48.2%</td><td>6.5%</td><td>45.3%</td><td>N/A</td><td>7.86%</td><td>1,843 (c)</td></tr><tr><td>Gas (d)</td><td>2011</td><td>9.56%</td><td>48.8%</td><td>5.0%</td><td>46.2%</td><td>N/A</td><td>7.76%</td><td>255 (c)</td></tr><tr><td>Minnesota retail (MPUC):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electric</td><td>2009</td><td>10.35%</td><td>47.7%</td><td>6.3%</td><td>43.9%</td><td>2.1%</td><td>8.11%</td><td>126 (e)(f)</td></tr><tr><td>Gas</td><td>1994</td><td>10.75%</td><td>41.0%</td><td>7.4%</td><td>44.0%</td><td>7.6%</td><td>8.82%</td><td>7 (f)</td></tr><tr><td>Wholesale electric (FERC) (g)</td><td>2014</td><td>10.97%</td><td>47.9%</td><td>5.5%</td><td>46.7%</td><td>N/A</td><td>7.95%</td><td>39 (h)</td></tr><tr><td>WPL:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Wisconsin retail (PSCW):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electric</td><td>2015</td><td>10.40%</td><td>50.5%</td><td>N/A</td><td>48.9%</td><td>0.6%</td><td>7.90%</td><td>2,329 (i)</td></tr><tr><td>Electric</td><td>2016</td><td>10.40%</td><td>51.0%</td><td>N/A</td><td>46.2%</td><td>2.8%</td><td>7.84%</td><td>2,450 (i)</td></tr><tr><td>Gas</td><td>2015</td><td>10.40%</td><td>50.5%</td><td>N/A</td><td>48.9%</td><td>0.6%</td><td>7.90%</td><td>201 (i)</td></tr><tr><td>Gas</td><td>2016</td><td>10.40%</td><td>51.0%</td><td>N/A</td><td>46.2%</td><td>2.8%</td><td>7.84%</td><td>204 (i)</td></tr><tr><td>Wholesale electric (FERC) (j)</td><td>2014</td><td>10.90%</td><td>55.0%</td><td>N/A</td><td>45.0%</td><td>N/A</td><td>8.45%</td><td>274 (k)</td></tr></table>

(a) Authorized returns on common equity may not be indicative of actual returns earned or projections of future returns.

(b) Authorized returns on common equity and after-tax WACC reflect application of double leverage pursuant to a January 2011 IUB order. Prior to the application of double leverage, authorized returns on common equity were: Emery-12.23%, Whispering Willow-East-11.7% and Other-10.0%, and after-tax WACC were: Emery-9.16%, Whispering Willow-East-8.91% and Other-8.09%.

(c) Average rate base is calculated using a 13-month average adjusted for post-test year capital additions placed in service by September 30 following the end of the test year.

(d) Authorized returns on common equity and after-tax WACC reflect application of double leverage pursuant to the unanimous settlement agreement approved in the IUB’s November 2012 order. Prior to the application of double leverage, authorized return on common equity was 10.0% and after-tax WACC was 8.0%.

(e) Average rate base amounts do not include Whispering Willow - East capital costs, which are currently being recovered through a temporary renewable energy rider approved by the MPUC. Refer to Note 3 for details of the final recovery amount of the Whispering Willow - East capital costs.

(f) Average rate base is calculated using a 13-month average adjusted for certain post-test year capital additions.

(g) IPL’s wholesale formula rates reflect annual changes in CE, PE, LD, WACC and rate base.

(h) IPL’s wholesale average rate base reflects production-related rate base calculated as the simple average of the beginning of year and end of year balances in accordance with IPL’s approved formula rates.

(i) Average rate base amounts do not include CWIP or a cash working capital allowance and are calculated using a 13-month average. The PSCW provides a return on selected CWIP and a cash working capital allowance by adjusting the percentage return on rate base.

(j) WPL’s wholesale formula rates reflect annual changes in WACC and rate base.

(k) WPL’s wholesale average rate base reflects production-related rate base calculated as the simple average of the beginning of year and end of year balances in accordance with WPL’s approved formula rates.

## ENVIRONMENTAL MATTERS

Overview - Alliant Energy, IPL and WPL are subject to regulation of environmental matters by federal, state and local authorities as a result of their current and past operations. Alliant Energy, IPL and WPL monitor these environmental matters and address them by installing controls that reduce emissions and by implementing operational modifications or other measures to address compliance obligations. These programs are subject to continuing review and are periodically revised due to various factors, including but not limited to changes in environmental regulations, litigation of environmental requirements, construction plans and compliance costs. There is currently significant regulatory uncertainty with respect to a number of environmental rules and regulations discussed below. Given the dynamic nature of environmental regulations and other related regulatory requirements, Alliant Energy, IPL and WPL have compliance plans to address these environmental



obligations. Future expenditures for environmental compliance are expected to be material, including significant capital investments. Prudent expenditures incurred by IPL and WPL to comply with environmental requirements would likely be recovered in rates from their customers. Refer to “Strategic Overview - Environmental Compliance Plans” for details of environmental compliance plans, including discussion of specific projects and the associated estimated capital expenditures. The following are major environmental matters that could potentially have a significant impact on financial condition and results of operations.

Air Quality - The CAA and its amendments mandate preservation of air quality through existing regulations and periodic reviews to ensure adequacy of the CAA provisions based on scientific data. As part of the basic framework under the CAA, the EPA is required to establish NAAQS rules, which serve to protect public health and welfare. These rules address six “criteria” pollutants, four of which (NOx, SO2, PM and ozone) are particularly relevant to electric utility operations. Ozone is not directly emitted from EGUs; however, NOx emissions may contribute to its formation in the atmosphere. Fine particulate matter may also be formed in the atmosphere from SO2 and NOx emissions.

SIPs document the collection of regulations that individual state agencies will apply to maintain NAAQS rules and related CAA requirements. The EPA must approve each SIP and if a SIP is not acceptable to the EPA or if a state chooses not to issue separate state rules, then the EPA can assume enforcement of the CAA in that state by issuing a federal implementation plan. Routinely monitored locations that do not comply with NAAQS rules may be classified by the EPA as non-attainment and require further actions to reduce emissions. Additional emissions standards may also be applied under the CAA regulatory framework beyond NAAQS rules. The specific federal and state air quality rules that may affect operations are listed in the table below. Refer to the sections below the following tables for detailed discussion of the following air quality rules.

<table><tr><td>Environmental Rule</td><td>Emissions Regulated</td><td>Alliant Energy’s Primary Facilities Potentially Affected</td><td>Actual/Anticipated Compliance Deadline</td></tr><tr><td>CSAPR</td><td>SO2, NOx</td><td>Fossil-fueled EGUs over 25 MW capacity in IA, WI and MN</td><td>Phase I - 2015; Phase II - 2017</td></tr><tr><td>CAVR</td><td>SO2, NOx, PM</td><td>Fossil-fueled EGUs built between 1962 and 1977 in IA and WI</td><td>TBD</td></tr><tr><td>MATS Rule</td><td>Mercury and other HAPs</td><td>Coal-fired EGUs over 25 MW capacity in IA and WI</td><td>April 2015 (a)</td></tr><tr><td>Industrial Boiler and Process Heater MACT Rule</td><td>Mercury and other HAPs</td><td>IPL’s Prairie Creek boilers 1, 2 and 5</td><td>January 2016 (a)</td></tr><tr><td>Ozone NAAQS Rule</td><td>NOx</td><td>Fossil-fueled EGUs in non-attainment areas</td><td>December 2015</td></tr><tr><td>NO2 NAAQS Rule</td><td>NO2</td><td>Fossil-fueled EGUs in non-attainment areas</td><td>TBD</td></tr><tr><td>SO2 NAAQS Rule</td><td>SO2</td><td>Fossil-fueled EGUs in non-attainment areas</td><td>TBD</td></tr><tr><td>CAA Section 111(d)</td><td>CO2</td><td>Existing fossil-fueled EGUs over 25 MW capacity</td><td>Phase I - 2020-2029; Phase II - 2030</td></tr><tr><td>CAA Section 111(b)</td><td>CO2</td><td>Marshalltown and WPL’s proposed Riverside expansion</td><td>Upon startup of EGU</td></tr></table>

(a) An additional year for compliance can be requested, which may be granted on a case-by-case basis by state permitting authorities or the EPA.

The following table lists the fossil-fueled generating facilities by primary fuel type that IPL and WPL currently own or operate with greater than 25 MW of nameplate capacity. All of IPL’s generating facilities listed below are located in Iowa except for Fox Lake Unit 3, which is located in Minnesota. All of WPL’s generating facilities listed below are located in Wisconsin. Refer to “Strategic Overview” for discussion of various generating facilities that may be retired or changed from coal-fired to an alternative fuel source in the next few years.

<table><tr><td colspan="3">IPL</td><td colspan="2">WPL</td></tr><tr><td>Coal</td><td>Natural Gas</td><td>Oil</td><td>Coal</td><td>Natural Gas</td></tr><tr><td>Ottumwa 1</td><td>Emery 1-3</td><td>Marshalltown 1-3</td><td>Columbia 1-2</td><td>Riverside 1-3</td></tr><tr><td>Lansing 4</td><td>Fox Lake 3</td><td>Lime Creek 1-2</td><td>Edgewater 3-5</td><td>Sheboygan Falls 1-2</td></tr><tr><td>M.L. Kapp 2 (a)</td><td>Sutherland 1,3</td><td>Centerville 1-2</td><td>Nelson Dewey 1-2</td><td>Neenah 1-2</td></tr><tr><td>Burlington 1</td><td>Dubuque 3-4</td><td></td><td></td><td>South Fond du Lac 1-4</td></tr><tr><td>George Neal 3-4</td><td></td><td></td><td></td><td>Rock River 3,5-6</td></tr><tr><td>Prairie Creek 3-4</td><td></td><td></td><td></td><td>Sheepskin 1</td></tr><tr><td>Louisa 1</td><td></td><td></td><td></td><td></td></tr></table>



(a) M.L. Kapp Unit 2 is expected to switch from coal to natural gas as the only fuel type in 2015, contingent on approval from MISO.

As discussed in greater detail below, a number of these air regulations are subject to legal challenges, reconsideration and/or other uncertainties that affect the ability to predict with certainty what impact such regulations may have on financial condition and results of operations.

CSAPR - CSAPR is a regional SO2 and NOx cap-and-trade program, where compliance with emission limits may be achieved by purchasing emission allowances and/or reducing emissions through changes in operations or the additions of emission controls. In 2015, CSAPR replaced CAIR. Compliance with CSAPR emissions limits began in 2015, with additional emissions limits reductions beginning in 2017. The emission allowances used for Acid Rain and CAIR program compliance cannot be used for compliance with CSAPR. CSAPR emission allowances may be banked for future year compliance. Alliant Energy, IPL and WPL will continue to monitor legal and regulatory developments related to CSAPR and currently expect to meet the final compliance requirements based on planned and completed emission controls projects for various EGUs.

CAVR - CAVR requires states to develop and implement plans to address visibility impairment in designated national parks and wilderness areas across the U.S. with a national goal of no impairment by 2064. These implementation plans require BART emission controls at certain IPL and WPL fossil-fueled EGUs that were built between 1962 and 1977 and other additional measures needed for reducing state contributions to regional haze. IPL's facilities that may be impacted include Burlington Unit 1, George Neal Units 3 and 4, Prairie Creek Unit 4, M.L. Kapp Unit 2 and Lansing Unit 4. WPL's facilities that may be impacted include Edgewater Unit 4, Nelson Dewey Unit 2, and Columbia Units 1 and 2.

In 2012, the EPA published a final rule (BART-CSAPR Rule) that allowed BART obligations for SO2 and NOx emissions to be fulfilled by compliance with CSAPR. In 2012, the EPA approved Wisconsin's CAVR plan, which relied on the EPA's BART-CSAPR rule. In 2012, the EPA issued a federal plan specifying that Iowa's compliance with CSAPR would be sufficient to meet CAVR requirements. Groups have legally challenged the EPA's reliance on CSAPR to satisfy CAVR BART requirements. Alliant Energy, IPL and WPL currently expect to comply with CSAPR requirements, thereby satisfying CAVR BART requirements.

MATS Rule - In 2011, the EPA issued the final MATS Rule for existing coal-fired EGUs, which requires emission limits for mercury and other HAPs and work practice standards. Compliance with the MATS Rule is required by April 2015; however, an entity can request an additional year for compliance for EGUs that are needed to assure power reliability, EGUs needed while building replacement generation or repowering to gas, or EGUs that need additional time to install air emission controls technology. In February 2014, the Wisconsin DNR approved an extension to the MATS Rule compliance deadline for WPL's Edgewater Unit 3 and Nelson Dewey Units 1 and 2 to April 2016. In February 2015, IPL filed with the EPA for approval to extend the MATS Rule compliance deadline to April 2016 for M.L. Kapp Unit 2. In 2014 and 2013, IPL and WPL implemented emission controls projects at several of their newer, larger and more efficient EGUs. Construction of lower-cost emission controls projects at IPL's Burlington Unit 1 and Prairie Creek Units 3 and 4, and WPL's Edgewater Unit 4 were also completed in 2014. These projects support compliance obligations for current and anticipated air quality regulatory requirements, including the MATS Rule. As a result of these projects and the requests for extension of the compliance deadline for three EGUs, additional capital investments and modifications to IPL's and WPL's EGUs to comply with the MATS Rule are currently not expected to be significant. Given that this rule remains subject to legal challenges, and could possibly be revised or invalidated pending the outcome of court decisions, Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of the MATS Rule on their financial condition and results of operations.

In accordance with Wisconsin Statutes, EGUs complying with the MATS Rule by April 2015 would no longer be subject to the Wisconsin State Mercury Rule.

Industrial Boiler and Process Heater MACT Rule - In 2012, the EPA issued a final reconsidered Industrial Boiler and Process Heater MACT Rule with a compliance deadline of January 2016 for major sources; however, an entity can request an additional year for compliance, which may be granted on a case-by-case basis by state permitting authorities. In December 2014, the EPA issued notices of reconsideration for select elements of the rule. The rule is expected to apply to IPL's Prairie Creek boilers 1, 2 and 5, and fossil-fueled auxiliary boilers and process heaters operated at other IPL and WPL fossil-fueled generating facilities. The rule requires compliance with HAPs emission limitations and work practice standards. Given that this rule remains subject to legal challenges in the U.S. Court of Appeals for the D.C. Circuit, Alliant Energy and IPL are currently unable to predict with certainty the impact of the Industrial Boiler and Process Heater MACT rule on their financial condition and results of operations, but expect that capital investments and/or modifications to their generating facilities to



meet compliance requirements of the rule could be significant. Future capital investments and modifications to WPL's generating facilities to comply with this rule are currently not expected to be significant.

Ozone NAAQS Rule - The 2008 ozone NAAQS rule may require a reduction of NOx emissions in certain non-attainment areas based on classifications assigned by the EPA. There are five non-attainment classifications: marginal, moderate, serious, severe and extreme. In 2012, the EPA issued a final rule that classified Sheboygan County in Wisconsin as marginal ozone non-attainment, which requires this area to achieve the 2008 eight-hour ozone NAAQS by December 2015. WPL operates Edgewater and Sheboygan Falls in Sheboygan County, Wisconsin. The final rule does not list any non-attainment areas in Iowa or Minnesota that impact IPL. In 2013, the EPA issued a proposed rule to assist state agencies in developing SIPs. The SIPs will explain what actions and emission reductions may be required for compliance to achieve attainment. The Edgewater Unit 5 SCR system completed in 2012 is expected to assist with possible compliance obligations under the ozone NAAQS SIP for Wisconsin. In November 2014, the EPA proposed changes to make the current ozone NAAQS rule more stringent. The EPA is expected to issue a final revised ozone NAAQS rule in 2015. Given the Wisconsin DNR has not yet issued an eight-hour ozone non-attainment SIP, and the 2008 standard may be revised, Alliant Energy and WPL are currently unable to predict with certainty the impact of the ozone NAAQS rule on their financial condition and results of operations.

NO2 NAAQS Rule - In 2010, the EPA issued a final rule that establishes a new one-hour NAAQS for NO2. In 2012, the EPA issued a final rule that does not propose to designate any non-attainment areas in Iowa, Wisconsin or Minnesota. The EPA is expected to re-evaluate these designations in 2016 based on expanded monitoring data. Given that the EPA has not yet re-evaluated designations, Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of any potential NO2 NAAQS changes on their financial condition and results of operations.

SO2 NAAQS Rule - In 2010, the EPA issued a final rule that establishes a new one-hour NAAQS for SO2. In 2013, the EPA finalized non-attainment designations for certain areas in the U.S. currently exceeding the SO2 standard based on ambient monitoring data, including part of Iowa and Wisconsin; however, IPL and WPL do not operate any EGUs in these areas. Non-attainment designations for the remainder of the U.S. have been delayed to allow for modeling and collection of additional monitoring data. A monitoring device has been installed near one of IPL's EGUs, which could result in this area receiving a non-attainment designation. Alliant Energy and IPL are currently unable to predict with certainty the outcome of such monitoring activities. In May 2014, the EPA proposed a schedule for completing designations using modeled sources by December 2017 and using monitored sources by December 2020. Given that this rule remains subject to legal challenges and the EPA has not yet designated non-attainment areas for any areas where IPL or WPL operate EGUs, Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of the SO2 NAAQS rule on their financial condition and results of operations.

GHG Emissions - Climate change continues to be assessed by policymakers including consideration of the appropriate actions to mitigate global warming. There is continued debate regarding the public policy response that the U.S. should adopt, involving both domestic actions and international efforts.

In 2009, the EPA issued a finding that GHG emissions contribute to climate change, and therefore, threaten public health and welfare. This enabled the EPA to issue rules to report and regulate GHG emissions under the authority of the CAA. The EPA Mandatory GHG Reporting rule requires sources above certain threshold levels to monitor and report emissions. The primary GHG emitted from Alliant Energy's, IPL's and WPL's utility operations is CO \( _{2} \)  from the combustion of fossil fuels at their larger EGUs. Emissions of GHG are reported at the facility level in CO \( _{2} \) e and include those facilities that emit 25,000 metric tons or more of CO \( _{2} \) e annually. Annual emissions reported to the EPA for electric utility and natural gas distribution operations, in terms of total mass of CO \( _{2} \) e, were as follows (in millions of metric tons):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2013</td><td>2012</td><td>2011</td><td>2013</td><td>2012</td><td>2011</td><td>2013</td><td>2012</td><td></td></tr><tr><td>CO2e emissions (a)</td><td>26.6</td><td>25.2</td><td>26.7</td><td>10.9</td><td>10.8</td><td>12.1</td><td>15.7</td><td>14.4</td><td>14.6</td></tr></table>

(a) CO2e emissions reported to the EPA represent all emissions from the facilities operated by IPL and WPL and do not reflect their share of co-owned facilities operated by other companies.

GHG Tailoring Rule - In 2010, the EPA issued the GHG Tailoring Rule, which establishes a GHG emissions threshold for major sources under the PSD construction permit and Title V operation permit. In June 2014, the Supreme Court ruled that the EPA may not treat GHG emissions as “air pollutants” for determining whether a major source is required to obtain a PSD or Title V permit, but held that the EPA can continue requiring Best Available Control Technology for GHG emissions from sources otherwise subject to review under the PSD program. This rule remains subject to legal challenges and further



rulemaking may also be required to update state regulations implementing the GHG Tailoring Rule to make the Supreme Court’s decision effective.

Clean Air Act Section 111(d) - In June 2014, the EPA issued proposed standards under Section 111(d) of the CAA to reduce CO2 emissions from existing fossil-fueled EGUs. The EPA's proposal is based on broad measures that can reduce CO2 emissions from existing fossil-fueled EGUs, including making existing coal-fired EGUs more efficient, increasing dispatch of existing combined-cycle natural gas-fired EGUs, maintaining or expanding zero- or low-CO2 energy resources such as renewables and nuclear, and reducing customer demand for electricity through energy efficiency programs. The state-specific goals are based on an emissions rate basis measured in pounds per net MWh. The EPA is proposing a two-part goal structure: an “interim goal” that each state meets an average threshold over the period from 2020 through 2029, and a “final goal” based on a three-year rolling average that each state meets beginning in 2030.

State plans will determine the specific compliance requirements applicable to EGUs. Each state has flexibility in determining how to achieve the goals, which can include the broad measures included by the EPA as well as any other enforceable measures that the state can demonstrate will reduce CO \( _2 \)  emissions from existing fossil-fueled EGUs. The EPA also proposed to give states the option to convert the rate-based goal to a mass-based goal measured in tons. States can develop a state-only plan or collaborate in developing regional multi-state plans. State plans that provide details of how these guidelines are to be met would be required by June 30, 2016. If a state needs additional time and provides proper notification and explanation, the EPA's proposal allows for a one-year extension to submit state-only plans and a two-year extension if a state elects to join a regional multi-state program. In August 2014, the EPA's legal authority to issue the proposed standards under Section 111(d) of the CAA was challenged. The EPA is currently expected to issue final standards in 2015. Depending on the measures included in state plans for Iowa and Wisconsin, the expected dates for the retirement and fuel switching of certain of IPL's and WPL's coal-fired EGUs may be impacted by the new requirements. The implications of these new requirements and the resolution of legal challenges remain highly uncertain, and as a result Alliant Energy, IPL and WPL are currently unable to predict with certainty the final outcome of these standards, but expect that expenditures to comply with any regulations to reduce GHG emissions could be significant.

Clean Air Act Section 111(b) - In January 2014, the EPA published revised proposed New Source Performance Standards under Section 111(b) of the CAA for GHG emissions, which would establish CO \( _2 \)  emissions limits for certain new fossil-fueled EGUs. Marshalltown and WPL's proposed Riverside expansion are expected to be impacted by these proposed standards and would be constructed to achieve compliance with these standards. The EPA is currently expected to issue final standards in 2015.

WPL Consent Decree - Refer to Note 16(e) for discussion of a Consent Decree approved by the Court in 2013 and WPL's obligations thereunder. The Consent Decree resolves a notice of violation issued by the EPA in 2009 and complaints filed by the Sierra Club in 2010 regarding alleged air permitting violations at Columbia, Edgewater and Nelson Dewey.

Other Air Quality Matters - IPL, the EPA, the State of Iowa and the Sierra Club are in discussions regarding CAA issues associated with IPL's Iowa operations. Alliant Energy and IPL believe that they are in compliance with the CAA. IPL is pursuing these discussions because IPL believes there is an opportunity to reach an agreement among the parties that avoids potential litigation and the long-term planning and operational uncertainty associated with such litigation. Alliant Energy and IPL believe that any agreement could contain terms similar to those seen in other EPA CAA settlements, including, among others, the installation of emission controls, the retirement or fuel switching of EGUs, compliance with specified emission rates and emission caps, beneficial environmental mitigation projects and penalties, such as those addressed by the WPL Consent Decree. Alliant Energy and IPL are currently unable to predict with certainty the outcome of these discussions and the impact on their financial condition or results of operations.

## Water Quality -

Section 316(b) of Federal Clean Water Act - In August 2014, the EPA published a final rule related to Section 316(b) of the Federal Clean Water Act to regulate cooling water intake structures and minimize adverse environmental impacts to fish and other aquatic life. This rule applies to existing and new cooling water intake structures at certain steam generating and manufacturing facilities. IPL and WPL have identified nine (Ottumwa 1, Prairie Creek Units 3-4, Fox Lake Units 1 and 3, Lansing Unit 4, Dubuque Units 3-4, M.L. Kapp Unit 2, Burlington Unit 1, George Neal Units 3-4 and Louisiana Unit 1) and three (Columbia Units 1-2, Nelson Dewey Units 1-2 and Edgewater Units 3-5) generating facilities, respectively, which may be impacted by the final Section 316(b) Rule. Compliance with this final rule will be incorporated during periodic facility permit renewal cycles, with final compliance anticipated by 2022. Alliant Energy, IPL and WPL have completed a preliminary assessment of the final Section 316(b) rule and expect to begin generating facility studies in 2015. Alliant



Energy, IPL and WPL do not currently believe there will be a significant impact from the EPA’s Section 316(b) rule on their financial condition and results of operations.

Effluent Limitation Guidelines - In 2013, the EPA issued proposed effluent limitation guidelines, which would require changes to discharge limits for wastewater from steam generating facilities. IPL and WPL have identified eleven (Emery Units 1-3, Outmwa Unit 1, Prairie Creek Units 3-4, Fox Lake Units 1 and 3, Lansing Unit 4, Dubuque Units 3-4, M.L. Kapp Unit 2, Burlington Unit 1, Sutherland Units 1 and 3, George Neal Units 3-4 and Louisa Unit 1) and four (Riverside Units 1-3, Columbia Units 1-2, Nelson Dewey Units 1-2 and Edgewater Units 3-5) existing steam generating facilities, respectively, that are expected to be impacted by these guidelines. In addition, Marshalltown and WPL's proposed Riverside expansion are expected to be impacted by these guidelines. Compliance with these proposed guidelines would be required after July 1, 2017 but before July 1, 2022, depending on each facility's wastewater permit cycle for existing steam generating facilities and immediately upon operation for new steam generating facilities constructed after the issuance of the final guidelines. Given that the EPA has not yet issued final guidelines, Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these guidelines on their financial condition and results of operations, but believe the expenditures to comply with these guidelines could be significant.

Hydroelectric Fish Passage Device - In 2002, FERC issued an order requiring WPL to install a fish passage device at its Prairie du Sac hydro plant. WPL has been working with the FWS and the Wisconsin DNR on the final design for the fish passage device. In 2013, the FWS initiated an environmental study of the fish passage device under the National Environmental Policy Act, which could result in changes to the design of the fish passage device. The FWS has indicated that this environmental study will be completed in 2015. In September 2014, FERC issued an order approving an extension of the project deadline to December 31, 2020. Alliant Energy and WPL currently believe the required capital investments and/or modifications to install the currently designed fish passage device at the facility could be approximately $15 million.

## Land and Solid Waste -

Coal Combustion Residuals Rule - In December 2014, the EPA issued the final CCR rule, which regulates CCR as a non-hazardous waste. The final rule establishes minimum criteria for disposing of CCR in landfills and surface impoundments (ash ponds), and allows for continued operation of ash ponds if they meet certain location and performance criteria. Compliance with the final rule is specific for each ash pond and landfill. Individual ash ponds or landfills not meeting performance criteria must initiate corrective action or be subject to closure. The final rule includes an incentive of no further regulation for inactive ash ponds that can be closed within 36 months of the effective date of the CCR rule. IPL and WPL have nine and three existing coal ash ponds related to current and former coal-fired EGUs, respectively. In addition, IPL and WPL have four and two active CCR landfills, respectively. All of these CCR disposal units are subject to the final rule, which is currently anticipated to become effective in 2015. The schedule for compliance with this rule has not yet been established. Alliant Energy, IPL and WPL are currently evaluating the final rule to determine the full impact of the final CCR rule, including any additional AROs that may need to be recognized in 2015 as a result of this rule.

MGP Sites - Refer to Note 16(e) for discussion of IPL's and WPL's MGP sites.

Other - Refer to Note 16(e), “Strategic Overview” and “Liquidity and Capital Resources” for further discussion of environmental matters, including discussion of specific projects and the associated estimated capital expenditures.

## LEGISLATIVE MATTERS

Overview - Various legislative developments are monitored, including those relating to energy, tax, financial and other matters. Key legislative developments include the following:

FTIP Act - In December 2014, the FTIP Act was enacted. The most significant provisions of the FTIP Act for Alliant Energy, IPL and WPL relate to the extension of bonus depreciation deductions for certain expenditures for property that were incurred through December 31, 2014. As a result, Alliant Energy currently estimates its total bonus depreciation deductions to be claimed on its U.S. federal income tax return for calendar year 2014 will be approximately $450 million ($245 million for IPL and $190 million for WPL). For calendar year 2015, Alliant Energy will be allowed bonus depreciation deductions for certain expenditures incurred through December 31, 2014 and placed in service before January 1, 2016. Alliant Energy currently estimates its total bonus depreciation deductions to be claimed on its U.S. federal income tax return for calendar year 2015 for these expenditures will be approximately $50 million ($40 million for IPL and $10 million for WPL).



## RESULTS OF OPERATIONS

Overview - “Executive Summary” provides an overview of Alliant Energy’s 2014 and 2013 earnings and the various components of its business. Additional details of Alliant Energy’s 2014, 2013 and 2012 earnings are discussed below.

Utility Electric Margins - Electric margins are defined as electric operating revenues less electric production fuel, energy purchases and purchased electric capacity expenses. Management believes that electric margins provide a more meaningful basis for evaluating utility operations than electric operating revenues since electric production fuel, energy purchases and purchased electric capacity expenses are generally passed through to customers, and therefore, result in changes to electric operating revenues that are comparable to changes in electric production fuel, energy purchases and purchased electric capacity expenses. Electric margins and MWh sales for Alliant Energy were as follows:

<table><tr><td rowspan="2"></td><td colspan="5">Revenues and Costs (dollars in millions)</td><td colspan="5">MWhs Sold (MWhs in thousands)</td></tr><tr><td>2014</td><td>2013</td><td>(a)</td><td>2012</td><td>(b)</td><td>2014</td><td>2013</td><td>(a)</td><td>2012</td><td>(b)</td></tr><tr><td>Residential</td><td>$994.5</td><td>$1,009.1</td><td>(1%)</td><td>$975.9</td><td>3%</td><td>7,697</td><td>7,824</td><td>(2%)</td><td>7,679</td><td>2%</td></tr><tr><td>Commercial</td><td>658.0</td><td>649.4</td><td>1%</td><td>611.4</td><td>6%</td><td>6,449</td><td>6,432</td><td>—%</td><td>6,352</td><td>1%</td></tr><tr><td>Industrial</td><td>799.0</td><td>765.4</td><td>4%</td><td>741.8</td><td>3%</td><td>11,821</td><td>11,471</td><td>3%</td><td>11,555</td><td>(1%)</td></tr><tr><td>Retail subtotal</td><td>2,451.5</td><td>2,423.9</td><td>1%</td><td>2,329.1</td><td>4%</td><td>25,967</td><td>25,727</td><td>1%</td><td>25,586</td><td>1%</td></tr><tr><td>Sales for resale:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Wholesale</td><td>206.6</td><td>195.4</td><td>6%</td><td>187.6</td><td>4%</td><td>3,586</td><td>3,564</td><td>1%</td><td>3,317</td><td>7%</td></tr><tr><td>Bulk power and other</td><td>2.9</td><td>17.7</td><td>(84%)</td><td>23.8</td><td>(26%)</td><td>335</td><td>763</td><td>(56%)</td><td>1,303</td><td>(41%)</td></tr><tr><td>Other</td><td>52.6</td><td>52.0</td><td>1%</td><td>48.8</td><td>7%</td><td>155</td><td>152</td><td>2%</td><td>151</td><td>1%</td></tr><tr><td>Total revenues/sales</td><td>2,713.6</td><td>2,689.0</td><td>1%</td><td>2,589.3</td><td>4%</td><td>30,043</td><td>30,206</td><td>(1%)</td><td>30,357</td><td>—%</td></tr><tr><td>Electric production fuel expense</td><td>443.9</td><td>431.0</td><td>3%</td><td>367.2</td><td>17%</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Energy purchases expense</td><td>408.2</td><td>294.0</td><td>39%</td><td>345.1</td><td>(15%)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Purchased electric capacity expense</td><td>25.1</td><td>216.8</td><td>(88%)</td><td>271.5</td><td>(20%)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Margins (c)</td><td>$1,836.4</td><td>$1,747.2</td><td>5%</td><td>$1,605.5</td><td>9%</td><td></td><td></td><td></td><td></td><td></td></tr></table>

(a) Reflects the % change from 2013 to 2014. (b) Reflects the % change from 2012 to 2013.

(c) Includes $85 million, $79 million and $83 million of credits on IPL’s Iowa retail electric customers’ bills for 2014, 2013 and 2012, respectively, resulting from the electric tax benefit rider. The electric tax benefit rider resulted in reductions in electric revenues that were offset by reductions in income tax expense for 2014, 2013 and 2012.

Variances between periods in electric margins were as follows (in millions):

<table><tr><td>2014 vs. 2013 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Lower purchased electric capacity expense at IPL related to the previous DAEC PPA, which ended in February 2014</td><td>$129</td><td>$129</td><td>$—</td></tr><tr><td>Purchased electric capacity expense at WPL during 2013 related to the Kewaunee PPA, which ended in December 2013</td><td>61</td><td>—</td><td>61</td></tr><tr><td>Higher revenues at IPL related to changes in recovery amounts for transmission costs through the transmission rider (a)</td><td>18</td><td>18</td><td>—</td></tr><tr><td>Retail electric customer billing credits at IPL (b)</td><td>(72)</td><td>(72)</td><td>—</td></tr><tr><td>Estimated decrease from changes in sales caused by weather conditions</td><td>(17)</td><td>(13)</td><td>(4)</td></tr><tr><td>Lower wholesale margins (c)</td><td>(11)</td><td>(4)</td><td>(7)</td></tr><tr><td>Changes in electric fuel-related costs, net of recoveries at WPL</td><td>(9)</td><td>—</td><td>(9)</td></tr><tr><td>Changes in revenue requirement adjustment related to certain tax benefits from tax accounting method changes at IPL (d)</td><td>(9)</td><td>(9)</td><td>—</td></tr><tr><td>Lower revenues at IPL due to changes in credits on Iowa retail electric customers’ bills resulting from the electric tax benefit rider (d)</td><td>(6)</td><td>(6)</td><td>—</td></tr><tr><td>Other (e)</td><td>5</td><td>(1)</td><td>7</td></tr><tr><td></td><td>$89</td><td>$42</td><td>$48</td></tr></table>



<table><tr><td>2013 vs. 2012 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Higher revenues at IPL related to changes in recovery amounts for transmission costs through the transmission rider (a)</td><td>$60</td><td>$60</td><td>$—</td></tr><tr><td>Purchased electric capacity expense at WPL during 2012 related to the Riverside PPA, which terminated in December 2012</td><td>59</td><td>—</td><td>59</td></tr><tr><td>Changes in revenue requirement adjustment related to certain tax benefits from tax accounting method changes at IPL (d)</td><td>24</td><td>24</td><td>—</td></tr><tr><td>Estimated increase (decrease) from changes in sales caused by weather conditions</td><td>(11)</td><td>1</td><td>(12)</td></tr><tr><td>Other (e)</td><td>10</td><td>(3)</td><td>13</td></tr><tr><td></td><td>$142</td><td>$82</td><td>$60</td></tr></table>

(a) Higher transmission rider revenues were offset by higher electric transmission service expense.

(b) Billing credits began in May 2014 related to the approved settlement agreement for IPL’s Iowa retail electric rates. Refer to “Rate Matters - IPL’s Iowa Retail Electric Rate Settlement Agreement” for further discussion.

(c) Primarily due to lower nuclear capacity costs in 2014 which are included in the rates charged to wholesale customers.

(d) Refer to Note 2 for further discussion of IPL’s revenue requirement adjustment and electric tax benefit rider.

(e) Includes increases in weather-normalized retail sales volumes at WPL in 2014 and 2013. Refer to “Sales Trends” below for more information.

Forecast - Refer to “Rate Matters” for discussion of anticipated reductions of IPL’s retail electric customer billing credits in 2015 related to the approved settlement agreement for IPL’s Iowa retail electric rates and the electric tax benefit rider. Refer to Note 2 for WPL’s retail electric base rate case order received by WPL in July 2014 for the 2015/2016 test period and the order received by WPL in December 2014 for the retail fuel-related rate case for 2015.

Weather Conditions - Electric sales demand is seasonal to some extent with the annual peak normally occurring in the summer months due to air conditioning usage by its residential, commercial and wholesale customers. HDD data is used to measure the variability of temperatures during winter months and is correlated with both electric and gas sales demand. CDD data is used to measure the variability of temperatures during summer months and is correlated with electric sales demand. HDD and CDD in Alliant Energy’s service territories were as follows:

<table><tr><td rowspan="2">HDD (a):</td><td colspan="3">Actual</td></tr><tr><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Cedar Rapids, Iowa (IPL)</td><td>7,657</td><td>7,232</td><td>5,901</td></tr><tr><td>Madison, Wisconsin (WPL)</td><td>7,884</td><td>7,627</td><td>5,964</td></tr><tr><td>CDD (a):</td><td></td><td></td><td></td></tr><tr><td>Cedar Rapids, Iowa (IPL)</td><td>670</td><td>884</td><td>1,052</td></tr><tr><td>Madison, Wisconsin (WPL)</td><td>620</td><td>709</td><td>1,070</td></tr></table>

(a) HDD and CDD are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDD and CDD.

Estimated increases to electric margins from the impacts of weather were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>IPL</td><td>$3</td><td>$16</td><td>$15</td></tr><tr><td>WPL</td><td>5</td><td>9</td><td>21</td></tr><tr><td>Total Alliant Energy</td><td>$8</td><td>$25</td><td>$36</td></tr></table>

Electric Production Fuel and Energy Purchases (Fuel-related) Cost Recoveries - Fossil fuels, such as coal and natural gas, are burned to produce electricity at EGUs. The cost of fossil fuels used during each period is included in electric production fuel expense. Electricity is also purchased to meet customer demand and these costs are charged to energy purchases expense. The impact on electric margins of changes in electricity volumes generated from EGUs, changes in energy volumes purchased and changes in bulk power sales volumes generally offset.

Due to IPL’s cost recovery mechanisms for fuel-related costs, changes in fuel-related costs resulted in comparable changes in electric revenues, and therefore, did not have a significant impact on electric margins. WPL’s cost recovery mechanism for wholesale fuel-related costs also provides for adjustments to its wholesale electric rates for changes in commodity costs, thereby mitigating impacts of changes to commodity costs on electric margins.



WPL’s cost recovery mechanism for retail fuel-related costs provides deferral for amounts that fall outside an approved bandwidth of plus or minus 2%. The difference between revenue collected and actual fuel-related costs incurred within the bandwidth increase or (decrease) electric margins. WPL estimates the increase (decrease) to electric margins from amounts within the bandwidth were approximately (5) million, 4 million and 6 million in 2014, 2013, and 2012, respectively. Refer to Note 2 for discussion of fuel-related costs incurred by WPL that were outside the approved annual bandwidth for 2014 and 2012.

Refer to “Other Matters - Market Risk Sensitive Instruments and Positions” for further discussion of risks associated with increased fuel-related expenses on WPL’s electric margins. Refer to “Rate Matters” and Note 1(g) for additional information relating to recovery mechanisms for fuel-related expenses.

2014 vs. 2013 Summary - Electric production fuel expense increased $13 million in 2014 primarily due to the unseasonably cold weather conditions in Alliant Energy’s service territory in the first quarter of 2014, which resulted in higher commodity prices and increased customer demand in the first quarter of 2014. This contributed to higher MISO dispatch of IPL’s and WPL’s EGUs in the first quarter of 2014. The increase in 2014 was also due to changes in the under-/over-collection of fuel-related costs at IPL. These items were partially offset by deferred fuel-related costs incurred that fell outside the approved bandwidth for 2014 at WPL, as well as lower dispatch at WPL’s coal-fired EGUs during the third quarter of 2014, which included impacts of lower than planned coal deliveries.

Energy purchases expense increased $114 million in 2014 primarily due to increased prices for electricity, partially resulting from IPL’s new DAEC PPA and the expiration of WPL’s Kewaunee PPA, and increased volumes partially due to lower dispatch of WPL’s coal-fired EGUs during the third quarter of 2014. The increase was also due to extremely cold temperatures in the first quarter of 2014 contributing to higher prices for electricity purchased by IPL and WPL from wholesale energy markets (primarily MISO) for 2014.

2013 vs. 2012 Summary - Electric production fuel expense increased $64 million and energy purchases expense decreased $51 million in 2013. Higher MISO dispatch of WPL's generating facilities during 2013 compared to 2012 resulted in an increase in electric production fuel expense and a decrease in energy purchases expense for Alliant Energy and WPL. These changes were partially due to the Riverside PPA being terminated in conjunction with WPL's acquisition of Riverside in December 2012. Partially offsetting the decrease in energy purchases expense for Alliant Energy was an increase in energy purchases expense at IPL primarily due to higher prices for electricity purchased from wholesale energy markets (primarily MISO) in 2013.

Purchased Electric Capacity Expense - PPAs help meet customer demand. Certain of these PPAs included minimum payments for IPL’s and WPL’s rights to electric generating capacity. The previous DAEC PPA expired in February 2014, the Kewaunee PPA expired in December 2013 and the Riverside PPA terminated in conjunction with WPL’s acquisition of Riverside in 2012. Details of purchased electric capacity expense included in the utility electric margins table above were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>DAEC PPA (IPL)</td><td>$25</td><td>$154</td><td>$152</td></tr><tr><td>Kewaunee PPA (WPL)</td><td>—</td><td>61</td><td>59</td></tr><tr><td>Riverside PPA (WPL)</td><td>—</td><td>—</td><td>59</td></tr><tr><td>Other</td><td>—</td><td>2</td><td>2</td></tr><tr><td></td><td>$25</td><td>$217</td><td>$272</td></tr></table>

Forecast - Purchased electric capacity expense at Alliant Energy and IPL is expected to decrease in 2015 compared to 2014 due to the expiration of the previous DAEC PPA in February 2014 and the new DAEC PPA effective February 2014 not containing minimum payments for electric generating capacity.

Sales Trends - Retail sales volumes increased 1% in 2014 and 1% in 2013. The 2014 increase was primarily due to an increase in industrial sales at IPL and WPL due to production expansion at several customers and higher IPL co-generation customer requirements, and modest customer growth in WPL's service territory in 2014. These increases were partially offset by the impact weather conditions had on electric sales in 2014. The unseasonably cold weather conditions in IPL's and WPL's service territories in the first quarter of 2014 increased sales and the cooler than normal summer temperatures during the third quarter of 2014 decreased sales. In comparison, temperatures during the third quarter of 2013 were warmer than normal resulting in increased sales. These changes in weather conditions caused an overall decrease in residential and



commercial sales in 2014 compared to 2013. The 2013 increase was due to increases in weather-normalized retail sales volumes primarily at WPL related to economic recovery and modest customer growth experienced in WPL's service territory. These increases were partially offset by the unseasonably warm weather conditions during the third quarter of 2012 and a decrease in industrial sales volumes at IPL in 2013 due to lower co-generation customer requirements.

Wholesale sales volumes increased 1% in 2014 and 7% in 2013. The 2014 increase was primarily due to increases in sales to one of IPL's full-requirement wholesale customers due to production expansion partially offset by the impact of changes in sales to WPL's partial-requirement wholesale customers that have contractual options to be served by WPL, other power supply sources or the MISO market. The 2013 increase was primarily due to the impact of changes in sales to WPL's partial-requirement wholesale customers.

Bulk power and other revenue changes were largely due to changes in sales in the wholesale energy markets operated by MISO and PJM. These changes are impacted by several factors including the availability and dispatch of Alliant Energy’s EGUs and electricity demand within these wholesale energy markets. Changes in bulk power and other sales revenues were largely offset by changes in fuel-related costs, and therefore, did not have a significant impact on electric margins.

Refer to “Rate Matters” for discussion of the IUB’s approval of IPL’s retail electric rate settlement agreement in September 2014, which includes a retail electric base rate freeze at IPL through the end of 2016. Refer to Note 2 for discussion of WPL’s retail fuel-related rate increases effective January 1, 2014 and 2015, WPL retail rate cases including a retail electric base rate freeze at WPL through the end of 2016, IPL’s electric tax benefit rider, and IPL’s revenue requirement adjustment, which became effective in January 2013. Refer to “Other Future Considerations” for discussion of recent notifications provided to each of IPL and WPL to terminate certain of their wholesale power supply agreements.

Forecast - Alliant Energy, IPL and WPL are currently expecting a modest increase in weather-normalized retail electric sales in 2015 compared to 2014.

Utility Gas Margins - Gas margins are defined as gas operating revenues less cost of gas sold. Management believes that gas margins provide a more meaningful basis for evaluating utility operations than gas operating revenues since cost of gas sold is generally passed through to customers, and therefore, results in changes to gas operating revenues that are comparable to changes in cost of gas sold. Gas margins and Dth sales for Alliant Energy were as follows:

<table><tr><td rowspan="2"></td><td colspan="5">Revenues and Costs (dollars in millions)</td><td colspan="5">Dths Sold (Dths in thousands)</td></tr><tr><td>2014</td><td>2013</td><td>(a)</td><td>2012</td><td>(b)</td><td>2014</td><td>2013</td><td>(a)</td><td>2012</td><td>(b)</td></tr><tr><td>Residential</td><td>$287.5</td><td>$262.5</td><td>10%</td><td>$224.3</td><td>17%</td><td>31,718</td><td>29,916</td><td>6%</td><td>23,071</td><td>30%</td></tr><tr><td>Commercial</td><td>172.8</td><td>150.3</td><td>15%</td><td>124.3</td><td>21%</td><td>23,301</td><td>21,892</td><td>6%</td><td>17,115</td><td>28%</td></tr><tr><td>Industrial</td><td>23.4</td><td>21.1</td><td>11%</td><td>16.7</td><td>26%</td><td>3,710</td><td>3,803</td><td>(2%)</td><td>3,068</td><td>24%</td></tr><tr><td>Retail subtotal</td><td>483.7</td><td>433.9</td><td>11%</td><td>365.3</td><td>19%</td><td>58,729</td><td>55,611</td><td>6%</td><td>43,254</td><td>29%</td></tr><tr><td>Transportation/other</td><td>33.8</td><td>30.9</td><td>9%</td><td>31.0</td><td>—%</td><td>64,717</td><td>60,261</td><td>7%</td><td>57,532</td><td>5%</td></tr><tr><td>Total revenues/sales</td><td>517.5</td><td>464.8</td><td>11%</td><td>396.3</td><td>17%</td><td>123,446</td><td>115,872</td><td>7%</td><td>100,786</td><td>15%</td></tr><tr><td>Cost of gas sold</td><td>327.8</td><td>276.7</td><td>18%</td><td>217.2</td><td>27%</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Margins (c)</td><td>$189.7</td><td>$188.1</td><td>1%</td><td>$179.1</td><td>5%</td><td></td><td></td><td></td><td></td><td></td></tr></table>

(a) Reflects the % change from 2013 to 2014. (b) Reflects the % change from 2012 to 2013.

(c) Includes $12 million and $11 million of credits on IPL's Iowa retail gas customers' bills for 2014 and 2013, respectively, resulting from the gas tax benefit rider. The gas tax benefit rider resulted in reductions in gas revenues that were offset by reductions in income tax expense for 2014 and 2013.

Variances between periods in gas margins were as follows (in millions):

<table><tr><td>2014 vs. 2013 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Estimated increase from changes in sales caused by weather conditions</td><td>$4</td><td>$2</td><td>$2</td></tr><tr><td>Lower revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (a)</td><td>(4)</td><td>(4)</td><td>—</td></tr><tr><td>Other</td><td>2</td><td>(1)</td><td>2</td></tr><tr><td></td><td>$2</td><td>($3)</td><td>$4</td></tr></table>



<table><tr><td>2013 vs. 2012 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Estimated increase from changes in sales caused by weather conditions</td><td>$19</td><td>$9</td><td>$10</td></tr><tr><td>Higher revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (a)</td><td>5</td><td>5</td><td>—</td></tr><tr><td>Lower revenues at IPL due to credits on Iowa retail gas customers&#x27; bills resulting from the gas tax benefit rider in 2013</td><td>(11)</td><td>(11)</td><td>—</td></tr><tr><td>Higher (lower) revenues due to the impact of changes in retail gas base rates effective January 2013</td><td>(9)</td><td>6</td><td>(15)</td></tr><tr><td>Other</td><td>5</td><td>3</td><td>2</td></tr><tr><td></td><td>$9</td><td>$12</td><td>($3)</td></tr></table>

(a) Changes in energy efficiency revenues were mostly offset by changes in energy efficiency expense included in other operation and maintenance expenses.

Natural Gas Cost Recoveries - Cost of gas sold increased $51 million in 2014 and $60 million in 2013. These increases were primarily due to higher retail gas volumes caused by weather discussed below. Refer to Note 1(g) for additional information relating to natural gas cost recoveries.

Weather Conditions - Gas sales demand follows a seasonal pattern with an annual base load of gas and a large heating peak occurring during the winter season. HDD data is used to measure the variability of temperatures during winter months and is correlated with gas sales demand. Refer to “Utility Electric Margins” for HDD data details.

Estimated increases (decreases) to gas margins from the impacts of weather were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>IPL</td><td>$5</td><td>$3</td><td>($6)</td></tr><tr><td>WPL</td><td>5</td><td>3</td><td>(7)</td></tr><tr><td>Total Alliant Energy</td><td>$10</td><td>$6</td><td>($13)</td></tr></table>

Refer to “Rate Matters” for discussion of IPL’s gas tax benefit rider and retail rate cases, including an interim retail gas base rate increase effective June 2012 and final retail gas base rate increase effective January 2013 for IPL’s Iowa customers and retail gas base rate decreases for WPL’s customers effective January 2013 and 2015.

Utility Other Revenues - Variances between periods in utility other revenues were as follows (in millions):

<table><tr><td>2014 vs. 2013 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Lower coal sales at WPL (a)</td><td>($7)</td><td>$—</td><td>($7)</td></tr><tr><td>Higher margins from IPL’s sharing mechanism related to optimizing gas capacity contracts (b)</td><td>4</td><td>4</td><td>—</td></tr><tr><td>Other</td><td>(2)</td><td>1</td><td>(3)</td></tr><tr><td></td><td>($5)</td><td>$5</td><td>($10)</td></tr><tr><td>2013 vs. 2012 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Higher coal sales at WPL (a)</td><td>$7</td><td>$—</td><td>$7</td></tr><tr><td>Capacity revenues recognized by WPL in 2013 (c)</td><td>6</td><td>—</td><td>6</td></tr><tr><td>Other</td><td>2</td><td>1</td><td>1</td></tr><tr><td></td><td>$15</td><td>$1</td><td>$14</td></tr></table>

(a) Changes in utility other revenues related to coal sales were largely offset by changes in utility other operation and maintenance expenses related to coal sales.

(b) Approximately 50% of all margins earned from IPL’s sharing mechanism relating to optimizing gas capacity contracts flow through the purchased gas adjustment clause to reduce retail gas customer bills in Iowa. The remaining margins are retained by IPL and recorded in utility other revenues. Due to the extreme cold temperatures causing natural gas price fluctuations in the first quarter of 2014, margins were higher than normal in 2014.

(c) WPL recognized capacity revenues in 2014 and 2013 related to a PPA with a third party for the sale of a portion of Riverside’s capacity assumed by WPL with the acquisition of Riverside in December 2012. The PPA expired in May



2014. These capacity revenues were mostly offset by contract amortization expense included in utility other operation and maintenance expenses.

Electric Transmission Service Expense - Variances between periods in electric transmission service expense were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">2014 vs. 2013</td><td colspan="3">2013 vs. 2012</td></tr><tr><td>Alliant Energy</td><td>IPL</td><td>WPL</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Higher electric transmission service costs billed from ITC, ATC and MISO (a)</td><td>$38</td><td>$33</td><td>$5</td><td>$52</td><td>$41</td><td>$11</td></tr><tr><td>Changes in the under-/over-collection of electric transmission service expense through the transmission cost rider at IPL (b)</td><td>(11)</td><td>(11)</td><td>—</td><td>22</td><td>22</td><td>—</td></tr><tr><td>Other</td><td>2</td><td>—</td><td>2</td><td>3</td><td>3</td><td>—</td></tr><tr><td></td><td>$29</td><td>$22</td><td>$7</td><td>$77</td><td>$66</td><td>$11</td></tr></table>

(a) Primarily due to increased electric transmission service rates.

(b) IPL is currently recovering the Iowa retail portion of its increased electric transmission service costs from its retail electric customers in Iowa through a transmission cost rider approved by the IUB in January 2011 and extended as part of the rate settlement approved in September 2014. The difference between electric transmission services expense and amounts collected from customers as electric revenues results in temporary costs (credits) recorded in electric transmission service expense until the amounts are reflected in future customer billings.

Refer to Notes 1(g) and 2 for additional information relating to recovery of electric transmission service expenses.

Forecast - Refer to “Other Future Considerations” for discussion of a potential increase in future electric transmission service expense in 2015 compared to 2014.

Utility Other Operation and Maintenance Expenses - Variances between periods in utility other operation and maintenance expenses were as follows (in millions):

<table><tr><td>2014 vs. 2013 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Higher energy efficiency cost recovery amortizations at WPL (a)</td><td>$20</td><td>$—</td><td>$20</td></tr><tr><td>Regulatory-related credit at IPL from a MPUC decision regarding Whispering Willow - East recorded in 2013 (b)</td><td>7</td><td>7</td><td>—</td></tr><tr><td>Higher generation expense (c)</td><td>7</td><td>4</td><td>3</td></tr><tr><td>Higher customer service expense (d)</td><td>6</td><td>4</td><td>2</td></tr><tr><td>Lower employee benefits-related expense (e)</td><td>(8)</td><td>(5)</td><td>(3)</td></tr><tr><td>Lower expense related to coal sales at WPL (f)</td><td>(7)</td><td>—</td><td>(7)</td></tr><tr><td>Other (g)</td><td>13</td><td>9</td><td>4</td></tr><tr><td></td><td>$38</td><td>$19</td><td>$19</td></tr><tr><td>2013 vs. 2012 Summary:</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Higher generation expense (c)</td><td>$16</td><td>$3</td><td>$13</td></tr><tr><td>Higher performance-based compensation expense (h)</td><td>11</td><td>6</td><td>5</td></tr><tr><td>Higher distribution system expense (i)</td><td>10</td><td>6</td><td>4</td></tr><tr><td>Higher expense related to coal sales at WPL (f)</td><td>7</td><td>—</td><td>7</td></tr><tr><td>Higher bad debt expense at IPL (j)</td><td>6</td><td>6</td><td>—</td></tr><tr><td>Regulatory-related credits from WPL’s 2013/2014 rate case decision recorded in 2012 (k)</td><td>5</td><td>—</td><td>5</td></tr><tr><td>Higher cost of capital charges from Corporate Services (l)</td><td>5</td><td>3</td><td>2</td></tr><tr><td>Contract amortization expense at WPL in 2013 (m)</td><td>5</td><td>—</td><td>5</td></tr><tr><td>Lower energy efficiency cost recovery amortizations at WPL (a)</td><td>(20)</td><td>—</td><td>(20)</td></tr><tr><td>Regulatory-related credit at IPL from a MPUC decision regarding Whispering Willow - East recorded in 2013 (b)</td><td>(7)</td><td>(7)</td><td>—</td></tr><tr><td>Other</td><td>(7)</td><td>(5)</td><td>(3)</td></tr><tr><td></td><td>$31</td><td>$12</td><td>$18</td></tr></table>



(a) The July 2012 PSCW order for WPL’s 2013/2014 test period electric and gas base rate case authorized changes in energy efficiency cost recovery amortizations for 2013 and 2014. Regulatory amortizations at WPL related to energy efficiency costs were $42 million, $22 million and $42 million in 2014, 2013 and 2012, respectively.

(b) Refer to Note 3 for details of a regulatory-related credit recorded by IPL in 2013 due to decisions by the MPUC regarding recovery of costs for IPL’s Whispering Willow - East wind project.

(c) Primarily due to the timing and extent of maintenance projects at IPL’s and WPL’s EGUs. The increase in 2013 was also due to additional operation and maintenance expenses related to Riverside, which was acquired in December 2012.

(d) Primarily due to increased customer billing and customer assistance-related expenses.

(e) Primarily due to a decrease in retirement plan costs, partially offset by an increase in other employee benefits-related costs and the reversal of a previously recorded reserve related to the Cash Balance Plan in 2013. Refer to Note 12(a) for details of the Cash Balance Plan reserve.

(f) Changes in expense related to coal sales at WPL were largely offset by changes in coal sales revenue at WPL.

(g) Primarily due to increases in other administrative and general and distribution system expenses.

(h) Performance-based compensation expense is largely based on the achievement of specific operational and financial performance measures compared to targets established within the performance-based compensation plans.

(i) Primarily due to increased maintenance of the electric and gas distribution systems at IPL and WPL.

(j) Higher bad debt expense at IPL in 2013 was largely due to increases in past due accounts receivable during 2013.

(k) Refer to Notes 2 and 3 for details of regulatory-related charges and credits recognized in 2012.

(l) Corporate Services bills IPL and WPL cost of capital charges in accordance with a service agreement. The 2013 increase was primarily due to increased property additions at Corporate Services in 2013.

(m) Resulting from the amortization of capacity rights related to a PPA with a third party for the sale of a portion of Riverside’s capacity WPL assumed with the acquisition of Riverside. The PPA expired in May 2014. These amortization expenses were largely offset by capacity revenues included in utility other revenues.

Forecast - Alliant Energy currently expects its other operation and maintenance expenses to decrease in 2015 compared to 2014 primarily due to decreases in energy efficiency cost recovery amortizations approved by the PSCW in a July 2014 order, partially offset by expected increases in retirement plan costs in 2015 compared to 2014, resulting from decreases in discount rates and a change to the life expectancy assumption.

## Depreciation and Amortization Expenses -

2014 vs. 2013 Summary - Depreciation and amortization expenses increased $17 million in 2014 primarily due to increased property additions, including various emission controls projects at IPL and WPL placed in service in the second half of 2013 and in 2014.

2013 vs. 2012 Summary - Depreciation and amortization expenses increased $39 million in 2013 primarily due to depreciation expense at WPL related to Riverside, WPL's SCR project at Edgewater Unit 5, which was placed in service in the fourth quarter of 2012, new depreciation rates implemented by WPL effective January 2013, and depreciation expense at the Franklin County wind project, which was placed in service in the fourth quarter of 2012.

Forecast - Alliant Energy currently expects its depreciation and amortization expenses to increase in 2015 compared to 2014 due to property additions, including various emission controls projects at IPL and WPL placed in service in 2014 and expected to be placed in service in 2015.

## Interest Expense -

2014 vs. 2013 Summary - Interest expense increased $8 million in 2014 primarily due to $9 million of higher interest expense recorded in 2014 compared to 2013 for IPL’s $250 million 4.7% senior debentures issued in October 2013.

2013 vs. 2012 Summary - Interest expense increased $16 million in 2013 primarily due to $6 million of capitalized interest recognized in 2012 for the Franklin County wind project, $5 million of higher interest expense recorded in 2013 compared to 2012 for WPL’s 2.25% debentures issued in November 2012 to fund a portion of the purchase price of Riverside and $3 million of interest expense recorded in 2013 for IPL’s 4.7% senior debentures issued in October 2013.

Refer to Note 9 for additional details of debt.

Forecast - Alliant Energy currently expects its interest expense to increase in 2015 compared to 2014 due to financings in 2014 and 2015. Refer to Note 9 for additional details of financings in 2014 and “Liquidity and Capital Resources” for details of Alliant Energy’s financings anticipated in 2015.



## AFUDC -

2014 vs. 2013 Summary - AFUDC increased $4 million in 2014 primarily due to increased CWIP balances related to IPL's Marshalltown and changes in AFUDC recognized for IPL's and WPL's emission controls projects.

2013 vs. 2012 Summary - AFUDC increased $9 million in 2013 primarily due to changes in AFUDC recognized for IPL's and WPL's emission controls projects.

Refer to Note 3 for additional details of AFUDC recognized in 2014, 2013 and 2012.

Forecast - Alliant Energy currently expects AFUDC to increase in 2015 compared to 2014 primarily due to increased CWIP balances related to Marshalltown.

Income Taxes - Refer to Note 11 for details of effective income tax rates for continuing operations, including discussion of tax benefit riders, production tax credits, the effect of rate-making on property-related differences and a state apportionment change in 2012 related to the sale of RMT.

Forecast - Alliant Energy currently expects to record lower tax benefits from the effect of rate-making on property-related differences in 2015 compared to 2014 and lower tax benefits from the impacts of the electric tax benefit rider due to lower billing credits on Iowa retail electric customers' bills expected in 2015 compared to 2014.

Loss from Discontinued Operations, Net of Tax - Refer to Note 19 for discussion of discontinued operations.

Preferred Dividend Requirements of Subsidiaries - Preferred dividend requirements of subsidiaries decreased $8 million in 2014 and increased $2 million in 2013 primarily due to IPL and WPL recording charges of $5 million and $1 million in 2013, respectively, related to the redemption of preferred stock. Refer to Note 8 for additional discussion of IPL's and WPL's preferred stock transactions.

## LIQUIDITY AND CAPITAL RESOURCES

Overview - Alliant Energy, IPL and WPL expect to maintain adequate liquidity to operate their businesses and implement their strategic plan as a result of available capacity under their revolving credit facilities and IPL's sales of accounts receivable program, and operating cash flows generated by their utility business, supplemented by periodic issuances of long-term debt and equity securities.

Liquidity Position - At December 31, 2014, Alliant Energy had $57 million of cash and cash equivalents, $859 million ($159 million at the parent company, $300 million at IPL and $400 million at WPL) of available capacity under their revolving credit facilities and $128 million of available capacity at IPL under its sales of accounts receivable program. Refer to “Short-term Debt” below and Note 9(a) for further discussion of the credit facilities. Refer to Note 5(b) for additional information on IPL’s sales of accounts receivable program.

Capital Structure - Alliant Energy, IPL and WPL plan to maintain debt-to-total capitalization ratios that are consistent with their investment-grade credit ratings. Alliant Energy, IPL and WPL currently expect to maintain capital structures in which debt would not exceed 45% to 55% of total capital and preferred stock would not exceed 5% to 10% of total capital. These targets may be adjusted depending on subsequent developments and the impact on their respective WACC and investment-grade credit ratings. Capital structures at December 31, 2014 were as follows (dollars in millions):

<table><tr><td></td><td colspan="2">Alliant Energy (Consolidated)</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>Common equity</td><td>$3,438.7</td><td>45%</td><td>$1,814.1</td><td>48%</td><td>$1,703.8</td><td>52%</td></tr><tr><td>Preferred stock</td><td>200.0</td><td>3%</td><td>200.0</td><td>5%</td><td>—</td><td>—%</td></tr><tr><td>Noncontrolling interest</td><td>1.8</td><td>—%</td><td>—</td><td>—%</td><td>8.5</td><td>—%</td></tr><tr><td>Long-term debt (incl. current maturities)</td><td>3,789.7</td><td>50%</td><td>1,768.7</td><td>47%</td><td>1,573.9</td><td>48%</td></tr><tr><td>Short-term debt</td><td>141.3</td><td>2%</td><td>—</td><td>—%</td><td>—</td><td>—%</td></tr><tr><td></td><td>$7,571.5</td><td>100%</td><td>$3,782.8</td><td>100%</td><td>$3,286.2</td><td>100%</td></tr></table>



Alliant Energy, IPL and WPL intend to manage their capital structures and liquidity positions in such a way that facilitates their ability to raise the necessary funds reliably and on reasonable terms and conditions, while maintaining financial capital structures consistent with those approved by regulators and necessary to maintain appropriate credit quality. In addition to capital structures, other important financial considerations used to determine the characteristics of future financings include anticipated proceeds from asset sales, financial coverage ratios, capital spending plans, regulatory orders and rate-making considerations, levels of debt imputed by rating agencies, market conditions and the impact of tax initiatives and legislation. The most significant debt imputations relate to the sales of accounts receivable program, the DAEC PPA, and pension and OPEB obligations. The PSCW factors certain imputed debt adjustments in establishing a regulatory capital structure as part of WPL's retail rate cases. The IUB and MPUC do not make any explicit adjustments for imputed debt in establishing capital ratios used in determining customer rates, although such adjustments are considered by IPL in recommending an appropriate capital structure.

Credit and Capital Markets - Alliant Energy, IPL and WPL are aware of the potential implications that credit and capital market disruptions might have on the ability to raise external funding required for their respective operations and capital expenditure plans. Alliant Energy, IPL and WPL maintain revolving credit facilities to provide backstop liquidity to their commercial paper programs, ensure a committed source of liquidity in the event the commercial paper market becomes disrupted and efficiently manage their long-term financings. In addition, Alliant Energy and IPL maintain a sales of accounts receivable program at IPL as an alternative financing source.

Primary Sources and Uses of Cash - The most significant source of cash is from electric and gas sales to IPL’s and WPL’s customers. Cash from these sales reimburses IPL and WPL for prudently-incurred expenses to provide service to their utility customers and provides IPL and WPL a return of and a return on the assets used to provide such services. Utility operating cash flows are expected to cover the majority of IPL’s and WPL’s capital expenditures required to maintain their current infrastructure and to pay dividends to Alliant Energy’s shareowners. Capital needed to retire debt and fund capital expenditures related to large strategic projects is expected to be met primarily through external financings.

Cash Flows - Selected information from the cash flows statements was as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2021</td></tr><tr><td>Cash and cash equivalents, January 1</td><td>$9.8</td><td>$21.2</td><td>$11.4</td><td>$4.4</td><td>$4.5</td><td>$2.1</td><td>$0.5</td><td>$0.7</td><td>$2.7</td></tr><tr><td>Cash flows from (used for):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating activities</td><td>891.6</td><td>731.0</td><td>841.1</td><td>406.1</td><td>232.6</td><td>291.0</td><td>424.4</td><td>423.3</td><td>427.4</td></tr><tr><td>Investing activities</td><td>(917.7)</td><td>(754.7)</td><td>(1,155.5)</td><td>(552.7)</td><td>(423.3)</td><td>(331.2)</td><td>(320.1)</td><td>(335.9)</td><td>(710.2)</td></tr><tr><td>Financing activities</td><td>73.2</td><td>12.3</td><td>324.2</td><td>147.5</td><td>190.6</td><td>42.6</td><td>(58.1)</td><td>(87.6)</td><td>280.8</td></tr><tr><td>Net increase (decrease)</td><td>47.1</td><td>(11.4)</td><td>9.8</td><td>0.9</td><td>(0.1)</td><td>2.4</td><td>46.2</td><td>(0.2)</td><td>(2.0)</td></tr><tr><td>Cash and cash equivalents, December 31</td><td>$56.9</td><td>$9.8</td><td>$21.2</td><td>$5.3</td><td>$4.4</td><td>$4.5</td><td>$46.7</td><td>$0.5</td><td>$0.7</td></tr></table>

## Operating Activities -

2014 vs. 2013 - Alliant Energy’s cash flows from operating activities increased $161 million primarily due to $190 million of lower purchased electric capacity payments in 2014 compared to 2013 related to the previous DAEC PPA and the Kewaunee PPA, $94 million of higher cash flows from changes in the level of IPL’s accounts receivable sold during 2014 and 2013, and the final receipt of $26 million related to Alliant Energy’s tax separation and indemnification agreement with Whiting Petroleum in 2014. These items were partially offset by $72 million of retail electric customer base rate freeze billing credits at IPL in 2014, higher fuel-related costs at WPL in 2014 compared to 2013, and lower cash flows from increases in inventory levels of gas stored underground at IPL and WPL during 2014. Refer to Notes 5(b) and 5(c) for discussion of IPL’s sale of accounts receivable program and the tax separation and indemnification agreement with Whiting Petroleum, respectively. Refer to “Rate Matters” for further discussion of IPL’s retail electric customer base rate freeze billing credits. Refer to Note 2 for discussion of WPL’s under-collection of fuel-related costs during 2014.

2013 vs. 2012 - Alliant Energy’s cash flows from operating activities decreased $110 million primarily due to $91 million of lower cash flows from changes in the level of IPL’s accounts receivable sold during 2013 and 2012, $63 million of cash flows from operations at RMT in 2012 due to changes in working capital requirements associated with renewable energy projects, lower cash flows from changes in prepaid gas and inventory levels of gas stored underground at IPL and WPL, and refunds paid by WPL to its retail electric customers during 2013 for over-collected fuel-related costs during 2012. These items were partially offset by $59 million of purchased electric capacity payments by WPL in 2012 related to the Riverside PPA, and the timing of electric fuel-related, natural gas and transmission cost recoveries at IPL.



Electric Fuel-related, Natural Gas and Transmission Cost Recoveries - IPL has cost recovery mechanisms applicable for its retail electric and gas customers to provide for subsequent adjustments to its electric and gas rates for changes in electric fuel-related and natural gas costs. IPL also has a cost recovery mechanism applicable for its Iowa retail electric customers to provide for subsequent adjustments to its electric rates for changes in electric transmission service expense. Changes in the timing of IPL's electric fuel-related, natural gas and transmission cost recoveries resulted in $47 million of higher cash flows from operations for Alliant Energy in 2013 compared to 2012.

Income Tax Payments and Refunds - Income tax (payments) refunds were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>IPL</td><td>$20</td><td>$—</td><td>($3)</td></tr><tr><td>WPL</td><td>(12)</td><td>(23)</td><td>3</td></tr><tr><td>Other subsidiaries</td><td>(3)</td><td>33</td><td>20</td></tr><tr><td>Alliant Energy</td><td>$5</td><td>$10</td><td>$20</td></tr></table>

Alliant Energy’s income tax refunds in 2014, 2013 and 2012 were primarily due to federal and state claims filed related to net operating losses carried back to prior years. Alliant Energy, IPL and WPL currently do not expect to make any significant federal income tax payments through 2017 based on their current federal net operating loss and credit carryforward positions and future amounts of bonus depreciation expected to be claimed on Alliant Energy’s U.S. federal income tax returns for calendar years 2014 and 2015. While no significant federal income tax payments through 2017 are expected to occur, some tax payments and refunds may occur between consolidated group members (including IPL and WPL) under the tax sharing agreement between Alliant Energy and its subsidiaries. Refer to Note 11 for discussion of the carryforward positions.

Pension Plan Contributions - Alliant Energy, IPL and WPL currently do not expect to make any significant pension plan contributions in 2015 through 2018 based on the funded status and assumed return on assets for each plan as of the December 31, 2014 measurement date. Refer to Note 12(a) for discussion of the current funded levels of pension plans.

## Investing Activities -

2014 vs. 2013 - Alliant Energy’s cash flows used for investing activities increased $163 million primarily due to $107 million of higher utility construction expenditures and a $62 million cash grant Alliant Energy received in 2013 related to the Franklin County wind project. The higher utility construction expenditures were largely due to higher expenditures for Marshalltown, IPL’s and WPL’s electric and gas distribution systems and emission controls projects at WPL’s Edgewater Unit 5 in 2014, partially offset by lower expenditures for emission controls projects at WPL’s Columbia Units 1 and 2 in 2014. Refer to Note 5(d) for further discussion of the Franklin County wind project cash grant.

2013 vs. 2012 - Alliant Energy’s cash flows used for investing activities decreased $401 million primarily due to $294 million of lower utility construction and acquisition expenditures, a $62 million cash grant Alliant Energy received during 2013 related to the Franklin County wind project, and expenditures in 2012 for the Franklin County wind project and Corporate Services’ purchase of its corporate headquarters building. The lower utility construction and acquisition expenditures were largely due to expenditures for WPL’s purchase of Riverside in 2012 and for emission controls projects at WPL’s Edgewater Unit 5 in 2012, partially offset by higher expenditures in 2013 for the emission controls projects at WPL’s Columbia Units 1 and 2, and IPL’s George Neal Units 3 and 4 and Lansing Unit 4.

Construction and Acquisition Expenditures - Capital expenditures and financing plans are reviewed, approved and updated as part of the financial planning processes. Changes in anticipated construction and acquisition expenditures may result from a number of reasons including economic conditions, regulatory requirements, changing legislation, ability to obtain adequate and timely rate relief, improvements in technology, failure of generating facilities, changing market conditions, customer and sales growth, funding of pension and OPEB plans, and new opportunities. Alliant Energy, IPL and WPL have not yet entered into contractual commitments relating to the majority of their anticipated future capital expenditures. As a result, they have some discretion with regard to the level and timing of capital expenditures. Construction and acquisition expenditures are currently anticipated as follows (in millions):



<table><tr><td rowspan="2"></td><td colspan="4">Alliant Energy</td><td colspan="4">IPL</td><td colspan="4">WPL</td></tr><tr><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2015</td><td>2020</td><td>2017</td><td>2018</td></tr><tr><td>Utility (a):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Generation:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Marshalltown</td><td>$295</td><td>$180</td><td>$15</td><td>$—</td><td>$295</td><td>$180</td><td>$15</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td></tr><tr><td>WPL&#x27;s proposed Riverside expansion</td><td>10</td><td>195</td><td>315</td><td>215</td><td>—</td><td>—</td><td>—</td><td>—</td><td>10</td><td>195</td><td>315</td><td>215</td><td></td></tr><tr><td>Environmental compliance</td><td>165</td><td>90</td><td>60</td><td>100</td><td>30</td><td>10</td><td>25</td><td>85</td><td>135</td><td>80</td><td>35</td><td>15</td><td></td></tr><tr><td>Maintenance and performance improvements</td><td>135</td><td>165</td><td>160</td><td>115</td><td>70</td><td>85</td><td>90</td><td>50</td><td>65</td><td>80</td><td>70</td><td>65</td><td></td></tr><tr><td>Distribution:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electric systems</td><td>255</td><td>270</td><td>305</td><td>295</td><td>145</td><td>155</td><td>175</td><td>170</td><td>110</td><td>115</td><td>130</td><td>125</td><td></td></tr><tr><td>Gas systems</td><td>115</td><td>115</td><td>135</td><td>145</td><td>65</td><td>70</td><td>80</td><td>100</td><td>50</td><td>45</td><td>55</td><td>45</td><td></td></tr><tr><td>Other</td><td>50</td><td>50</td><td>45</td><td>40</td><td>25</td><td>20</td><td>20</td><td>20</td><td>25</td><td>30</td><td>25</td><td>20</td><td></td></tr><tr><td>Total utility</td><td>1,025</td><td>1,065</td><td>1,035</td><td>910</td><td>$630</td><td>$520</td><td>$405</td><td>$425</td><td>$395</td><td>$545</td><td>$630</td><td>$485</td><td></td></tr><tr><td>Corporate Services and other non-utility (b)</td><td>50</td><td>35</td><td>35</td><td>45</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>$1,075</td><td>$1,100</td><td>$1,070</td><td>$955</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>

(a) Cost estimates represent IPL’s or WPL’s estimated portion of total escalated construction expenditures and exclude AFUDC, if applicable. Refer to “Strategic Overview” for further discussion of key projects impacting construction and acquisition plans related to the utility business.

(b) Cost estimates represent total escalated construction and acquisition expenditures and exclude capitalized interest.

ATC - WPL Transco’s capital contributions to ATC are currently funded by ATI, and are included in “Corporate Services and other non-utility” in the table above. Alliant Energy currently anticipates that ATI will fund capital contributions of approximately $8 million, $19 million, $22 million and $4 million to ATC in 2015, 2016, 2017 and 2018, respectively, to help fund future proposed transmission projects. These future proposed transmission projects require approval from various regulatory agencies to construct. Certain of these future proposed transmission projects are currently being challenged by other utilities and other transmission-only companies who have requested to own a portion of the future transmission projects proposed by ATC. Alliant Energy and WPL are currently unable to determine the impact these challenges may have on ATC’s plans to construct these proposed transmission projects and the resulting impact on ATI’s future capital contributions to ATC and WPL’s and ATI’s equity earnings income and dividends received from ATC.

In 2011, Duke Energy Corporation and ATC announced the creation of Duke-American Transmission Co., a joint venture that is expected to build, own and operate new electric transmission infrastructure in North America. Duke-American Transmission Co. has announced construction of several new transmission lines over the next decade for an aggregate cost of approximately $4 billion. These transmission projects are subject to approval by various regulatory agencies. Alliant Energy and WPL are currently unable to determine what impacts the joint venture and transmission line projects noted above, if constructed, will have on their future equity income, distributions from ATC, capital contributions to ATC, or ownership in ATC. The capital expenditures in the above table do not include any capital contributions for the potential Duke-American Transmission Co. projects.

## Financing Activities -

2014 vs. 2013 - Alliant Energy’s cash flows from financing activities increased $61 million primarily due to $810 million of proceeds from long-term debt issued in 2014 discussed in “Long-term Debt” below and payments of $211 million to redeem IPL’s and WPL’s cumulative preferred stock in 2013. These items were partially offset by $348 million of payments to retire long-term debt in 2014 discussed below, $250 million of proceeds from IPL’s issuance of 4.7% senior debentures in 2013, $200 million of proceeds from IPL’s issuance of cumulative preferred stock in 2013 and net changes in the amount of commercial paper outstanding at Alliant Energy, IPL and WPL.

2013 vs. 2012 - Alliant Energy’s cash flows from financing activities decreased $312 million primarily due to the impacts of $385 million of proceeds from long-term debt issued in 2012 discussed in “Long-term Debt” below, payments of $211 million to redeem IPL’s and WPL’s cumulative preferred stock in 2013 and net changes in the amount of commercial paper outstanding at Alliant Energy, IPL and WPL. These items were partially offset by $250 million of proceeds from the issuance of 4.7% senior debentures by IPL in 2013 and $200 million of proceeds from IPL’s issuance of 5.1% cumulative preferred stock in 2013.



FERC and Public Utility Holding Company Act Financing Authorizations - Under the Public Utility Holding Company Act of 2005, FERC has authority over the issuance of utility securities, except to the extent that a public utility's primary state regulatory commission has retained jurisdiction over such matters. FERC currently has authority over the issuance of securities by IPL. FERC does not have authority over the issuance of securities by Alliant Energy, WPL, Resources or Corporate Services.

In 2013, IPL received authorization from FERC through December 31, 2015 for the following (in millions):

<table><tr><td></td><td>Initial Authorization</td><td>Current Remaining Authority</td></tr><tr><td>Long-term debt securities issuances in aggregate</td><td>$750</td><td>$500</td></tr><tr><td>Short-term debt securities outstanding at any time (including borrowings from its parent)</td><td>750</td><td>750</td></tr><tr><td>Preferred stock issuances in aggregate</td><td>300</td><td>300</td></tr></table>

State Regulatory Financing Authorizations - In 2011, WPL received authorization from the PSCW to have up to $400 million of short-term borrowings and/or letters of credit outstanding at any time through December 2018. In November 2014, WPL received authorization from the PSCW to issue up to $500 million of long-term debt securities during 2015 and 2016, with no more than $300 million to be issued in either year.

In 2010, the MPUC issued an order that determined IPL does not need to obtain authorization to issue securities as long as IPL is not organized under the laws of the state of Minnesota and the securities issued do not encumber any of its property in the state of Minnesota. IPL currently does not have, and does not plan to issue, securities that encumber such property, thus IPL is not currently required to obtain approval from the MPUC for unsecured securities issuances. However, if in the future IPL were to subject its utility property in Minnesota to an encumbrance for the purpose of securing the payment of any indebtedness, IPL would be required to obtain an order from the MPUC approving such securities issuances.

Shelf Registrations - Alliant Energy, IPL and WPL have current shelf registration statements on file with the Securities and Exchange Commission for availability to issue unspecified amounts of securities through December 2017. Alliant Energy’s shelf registration statement may be used to issue common stock, debt and other securities. IPL’s and WPL’s shelf registration statements may be used to issue preferred stock and debt securities.

Common Stock Dividends - Payment of common stock dividends is subject to dividend declaration by Alliant Energy’s Board of Directors. Alliant Energy’s general long-term goal is to maintain a dividend payout ratio that is competitive with the industry average. Based on that, Alliant Energy’s goal is to maintain a dividend payout ratio of approximately 60% to 70% of consolidated earnings from continuing operations. IPL’s and WPL’s goal is to maintain dividend payout ratios of approximately 65% to 75%. Alliant Energy’s, IPL’s and WPL’s dividend payout ratios were 59%, 76% and 66% of their consolidated earnings from continuing operations in 2014, respectively. Refer to “Financing Forecast” below for discussion of expected common stock dividends in 2015. Refer to Note 7 for discussion of IPL’s and WPL’s dividend payment restrictions based on the terms of applicable regulatory limitations and IPL’s outstanding preferred stock.

Common Stock Issuances and Capital Contributions - Alliant Energy issued a modest amount of additional common stock in 2012 through 2014 under its equity-based compensation plans for employees. Refer to “Financing Forecast” below for discussion of expected issuances of common stock and capital contributions in 2015.

Preferred Stock Issuance and Redemptions - Refer to Note 8 for discussion of IPL’s and WPL’s preferred stock redemptions and IPL’s issuance of preferred stock in 2013.

Short-term Debt - Alliant Energy, IPL and WPL maintain committed revolving credit facilities to provide short-term borrowing flexibility and backstop liquidity for commercial paper outstanding. At December 31, 2014, Alliant Energy’s short-term borrowing arrangements included three revolving credit facilities totaling $1 billion ($300 million for Alliant Energy at the parent company level, $300 million for IPL and $400 million for WPL). There are currently 13 lenders that participate in the three credit facilities, with aggregate respective commitments ranging from $10 million to $135 million. In 2014, each of the credit facilities was extended one year through December 2018. There are currently no extension renewal provisions remaining for the credit facilities. Each of the credit facilities has a provision to expand the facility size up to $100 million, subject to lender approval for Alliant Energy and IPL, and subject to lender and regulatory approvals for WPL. During 2014, the Alliant Energy parent company, IPL and WPL issued commercial paper to meet short-term financing requirements and did not borrow directly under their respective credit facilities.



Alliant Energy’s, IPL’s and WPL’s credit facility agreements each contain a financial covenant, which requires the entities to maintain certain debt-to-capital ratios in order to borrow under the credit facilities. The debt-to-capital ratios cannot exceed 65%, 58% and 58% for Alliant Energy, IPL and WPL, respectively. The debt component of the capital ratios includes long-and short-term debt (excluding non-recourse debt and hybrid securities to the extent the total carrying value of such hybrid securities does not exceed 15% of consolidated capital of the applicable borrower), capital lease obligations, letters of credit, guarantees of the foregoing and new synthetic leases. Unfunded vested benefits under qualified pension plans and sales of accounts receivable are not included in the debt-to-capital ratios. The equity component of the capital ratios excludes accumulated other comprehensive income (loss).

The credit agreements contain provisions that prohibit placing liens on any of Alliant Energy’s, IPL’s or WPL’s property or their respective subsidiaries with certain exceptions. Exceptions include among others, liens to secure obligations of up to 5% of the consolidated assets of the applicable borrower (valued at carrying value), liens imposed by government entities, materialmens’ and similar liens, judgment liens, and liens to secure additional non-recourse debt not to exceed $100 million outstanding at any one time at each of IPL and WPL, and $100 million at Alliant Energy’s non-utility subsidiaries, and purchase money liens.

The credit agreements contain provisions that require, during their term, any proceeds from asset sales, with certain exclusions, in excess of 20% of Alliant Energy’s, IPL’s and WPL’s respective consolidated assets be used to reduce commitments under their respective facilities. Exclusions include, among others, certain sale and lease-back transactions and sales of non-regulated assets and accounts receivable.

The credit agreements contain customary events of default. Alliant Energy’s credit agreement contains a cross-default provision that would be triggered if Alliant Energy or any domestic, majority-owned subsidiary of Alliant Energy defaults on debt (other than non-recourse debt) totaling $50 million or more. Accordingly, a cross-default provision would be triggered under the Alliant Energy credit agreement if IPL or WPL, as applicable, or a majority-owned subsidiary accounting for 20% or more of IPL’s or WPL’s, as applicable, consolidated assets (valued at carrying value), defaults on debt totaling $50 million or more. A default by a minority-owned subsidiary and, in the case of the Alliant Energy credit agreement, a default by a foreign subsidiary, would not trigger a cross-default. A default by Alliant Energy, Corporate Services or Resources and its subsidiaries would not trigger a cross-default under either the IPL or WPL credit agreements, nor would a default by either of IPL or WPL constitute a cross-default event for the other. If an event of default under any of the credit agreements occurs and is continuing, then the lenders may declare any outstanding obligations under the credit agreements immediately due and payable. In addition, if any order for relief is entered under bankruptcy laws with respect to Alliant Energy, IPL or WPL, then any outstanding obligations under the respective credit agreements would be immediately due and payable. In addition, IPL’s sales of accounts receivable program agreement contains a cross-default provision that is triggered if IPL or Alliant Energy incurs an event of default on debt totaling $50 million or more. If an event of default under IPL’s sales of accounts receivable program agreement occurs, then the counterparty could terminate such agreement. Refer to Note 5(b) for additional information on amounts outstanding under IPL’s sales of accounts receivable program.

A material adverse change representation is not required for borrowings under the credit agreements.

At December 31, 2014, Alliant Energy, IPL and WPL were in compliance with all material covenants and other provisions of the credit agreements.

Refer to Note 9(a) for additional information on the credit facilities, commercial paper outstanding and debt-to-capital ratios.



Long-term Debt - In 2014, 2013 and 2012, significant issuances of long-term debt were as follows (dollars in millions):

<table><tr><td>Company</td><td>Principal Amount</td><td>Type</td><td>Interest Rate</td><td>Maturity Date</td><td>Use of Proceeds</td></tr><tr><td>2014:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Alliant Energy</td><td>$250</td><td>Variable-rate term loan credit agreement</td><td>1% at December 31, 2014</td><td>Oct-2016</td><td>Retire its $250 million, 4% senior notes due 2014</td></tr><tr><td>IPL</td><td>250</td><td>Senior debentures</td><td>3.25%</td><td>Dec-2024</td><td>Reduce cash proceeds received from its sales of accounts receivable program, reduce commercial paper classified as long-term debt and for general corporate purposes</td></tr><tr><td>WPL</td><td>250</td><td>Debentures</td><td>4.1%</td><td>Oct-2044</td><td>Reduce commercial paper and for general corporate purposes</td></tr><tr><td>Franklin County Holdings LLC</td><td>60</td><td>Variable-rate term loan credit agreement</td><td>1% at December 31, 2014</td><td>Dec-2016</td><td>Retire borrowings under a term loan credit agreement that matured in December 2014</td></tr><tr><td>2013:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>IPL</td><td>250</td><td>Senior debentures</td><td>4.7%</td><td>Oct-2043</td><td>Reduce cash proceeds received from its sales of accounts receivable program, reduce commercial paper classified as long-term debt and for general corporate purposes</td></tr><tr><td>2012:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>WPL</td><td>250</td><td>Debentures</td><td>2.25%</td><td>Nov-2022</td><td>Fund a portion of the purchase price of Riverside</td></tr><tr><td>Corporate Services</td><td>75</td><td>Senior notes</td><td>3.45%</td><td>Sep-2022</td><td>Repay short-term debt primarily incurred for the purchase of the corporate headquarters building and for general corporate purposes</td></tr><tr><td>Franklin County Holdings LLC</td><td>60</td><td>Variable-rate term loan credit agreement</td><td>1% at December 31, 2013</td><td>Dec-2014</td><td>Fund a portion of the costs of the Franklin County wind project</td></tr></table>

In 2014, significant retirements of long-term debt were as follows (dollars in millions):

<table><tr><td>Company</td><td>Principal Amount</td><td>Type</td><td>Interest Rate</td><td>Original Due Date</td></tr><tr><td>Alliant Energy</td><td>$250</td><td>Senior notes</td><td>4%</td><td>Oct-2014</td></tr><tr><td>Franklin County Holdings LLC</td><td>60</td><td>Variable-rate term loan credit agreement</td><td>1% at December 31, 2013</td><td>Dec-2014</td></tr><tr><td>IPL</td><td>38</td><td>Pollution control revenue bonds</td><td>5%</td><td>Jul-2014</td></tr></table>

Alliant Energy’s $250 million term loan credit agreement and Franklin County Holdings LLC’s $60 million term loan credit agreement (with Alliant Energy as guarantor) include substantially the same covenants, including Alliant Energy maintaining a debt-to-capital ratio not to exceed 65% on a consolidated basis and events of default, that are included in Alliant Energy’s revolving credit facility financial covenant discussion above in “Short-term Debt.” At December 31, 2014, Alliant Energy was in compliance with all material covenants and other provisions of the term loan credit agreements.

Refer to Note 9(b) for further discussion of long-term debt.

Financing Forecast - The following financing activities are currently anticipated to occur in the future. The financing activities of Alliant Energy and IPL are contingent on the completion of the sale of IPL’s Minnesota electric and natural gas distribution assets in 2015.

- Long-term Debt - IPL currently expects to issue up to $300 million of additional long-term debt in 2015. IPL’s $150 million, 3.3% senior debentures mature in 2015.

- Common Stock Issuances - Alliant Energy currently expects to issue approximately $150 million of common stock in 2015 through one or more offerings and its Shareowner Direct Plan.

- Common Stock Dividends - In November 2014, Alliant Energy announced an increase in its targeted 2015 annual common stock dividend to $2.20 per share, which is equivalent to a quarterly rate of $0.55 per share, beginning with the February 2015 dividend payment. The timing and amount of future dividends is subject to an approved dividend declaration from its Board of Directors, and is dependent upon earnings expectations, capital requirements, and general financial business conditions, among other factors.



## Impact of Credit Ratings on Liquidity and Collateral Obligations -

Ratings Triggers - The long-term debt of Alliant Energy and its subsidiaries is not subject to any repayment requirements as a result of explicit credit rating downgrades or so-called “ratings triggers.” However, Alliant Energy and its subsidiaries are parties to various agreements that contain provisions dependent on credit ratings. In the event of a significant downgrade, Alliant Energy or its subsidiaries may need to provide credit support, such as letters of credit or cash collateral equal to the amount of the exposure, or may need to unwind the contract or pay the underlying obligation. In the event of a significant downgrade, management believes Alliant Energy, IPL and WPL have sufficient liquidity to cover counterparty credit support or collateral requirements under these various agreements. In addition, a downgrade in the credit ratings of Alliant Energy, IPL or WPL could also result in them paying higher interest rates in future financings, reduce their pool of potential lenders, increase their borrowing costs under existing credit facilities or limit their access to the commercial paper market. Alliant Energy, IPL and WPL are committed to taking the necessary steps required to maintain investment-grade credit ratings. Credit ratings and outlooks as of the date of this report are as follows:

<table><tr><td rowspan="3">Alliant Energy:</td><td>Corporate/issuer</td><td>A-</td><td>A3</td></tr><tr><td>Commercial paper</td><td>A-2</td><td>P-2</td></tr><tr><td>Senior unsecured long-term debt</td><td>BBB+</td><td>A3</td></tr><tr><td rowspan="3">IPL:</td><td>Outlook</td><td>Stable</td><td>Stable</td></tr><tr><td>Corporate/issuer</td><td>A-</td><td>A3</td></tr><tr><td>Commercial paper</td><td>A-2</td><td>P-2</td></tr><tr><td rowspan="3">WPL:</td><td>Senior unsecured long-term debt</td><td>A-</td><td>A3</td></tr><tr><td>Preferred stock</td><td>BBB</td><td>Baa2</td></tr><tr><td>Outlook</td><td>Stable</td><td>Stable</td></tr><tr><td rowspan="4">Special Purpose Entities -</td><td>Corporate/issuer</td><td>A</td><td>A1</td></tr><tr><td>Commercial paper</td><td>A-1</td><td>P-1</td></tr><tr><td>Senior unsecured long-term debt</td><td>A</td><td>A1</td></tr><tr><td>Outlook</td><td>Stable</td><td>Stable</td></tr></table>

Credit ratings are not recommendations to buy or sell securities and are subject to change, and each rating should be evaluated independently of any other rating. Each of Alliant Energy, IPL or WPL assumes no obligation to update their respective credit ratings. Refer to Note 15 for additional information on ratings triggers for commodity contracts accounted for as derivatives.

## Off-Balance Sheet Arrangements -

Special Purpose Entities - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. In 2014, 2013 and 2012, IPL evaluated the third party that purchases IPL's receivable assets under the Receivables Agreement and believes that the third party is a VIE. However, IPL concluded consolidation of the third party was not required. Refer to Note 5(b) for information regarding IPL's sales of accounts receivable program.

Guarantees and Indemnifications - Alliant Energy has guarantees and indemnifications outstanding at December 31, 2014 related to its prior divestiture activities. Refer to Note 16(d) for additional information.

## Certain Financial Commitments -

Contractual Obligations - Consolidated long-term contractual obligations as of December 31, 2014 were as follows (in millions):

<table><tr><td>Alliant Energy</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>Thereafter</td><td>Total</td></tr><tr><td>Operating expense purchase obligations (Note 16(b)):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Purchased power and fuel commitments (a)</td><td>$492</td><td>$318</td><td>$252</td><td>$214</td><td>$153</td><td>$886</td><td>$2,315</td></tr><tr><td>SO2 emission allowances</td><td>12</td><td>14</td><td>8</td><td>—</td><td>—</td><td>—</td><td>34</td></tr><tr><td>Other (b)</td><td>10</td><td>1</td><td>—</td><td>—</td><td>—</td><td>—</td><td>11</td></tr><tr><td>Long-term debt maturities (Note 9(b))</td><td>183</td><td>313</td><td>5</td><td>356</td><td>256</td><td>2,690</td><td>3,803</td></tr><tr><td>Interest - long-term debt obligations</td><td>179</td><td>174</td><td>172</td><td>172</td><td>147</td><td>2,015</td><td>2,859</td></tr><tr><td>Capital purchase obligations (Note 16(a))</td><td>25</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>25</td></tr><tr><td>Operating leases (Note 10(a))</td><td>8</td><td>7</td><td>3</td><td>2</td><td>1</td><td>21</td><td>42</td></tr><tr><td>Capital leases</td><td>1</td><td>1</td><td>—</td><td>—</td><td>—</td><td>—</td><td>2</td></tr><tr><td></td><td>$910</td><td>$828</td><td>$440</td><td>$744</td><td>$557</td><td>$5,612</td><td>$9,091</td></tr></table>



(a) Purchased power and fuel commitments represent normal business contracts used to ensure adequate purchased power, coal and natural gas supplies, and to minimize exposure to market price fluctuations.

(b) Other operating expense purchase obligations represent individual commitments incurred during the normal course of business that exceeded $1 million at December 31, 2014.

At December 31, 2014, Alliant Energy, IPL and WPL had no uncertain tax positions recorded as liabilities. Refer to Note 12(a) for anticipated pension and OPEB funding amounts, which are not included in the above table. Refer to “Construction and Acquisition Expenditures” above for additional information on construction and acquisition programs. In addition, at December 31, 2014, there were various other liabilities included on the balance sheet that, due to the nature of the liabilities, the timing of payments cannot be estimated and are therefore excluded from the above table.

## OTHER MATTERS

Market Risk Sensitive Instruments and Positions - Primary market risk exposures are associated with commodity prices, investment prices and interest rates. Risk management policies are used to monitor and assist in mitigating these market risks and derivative instruments are used to manage some of the exposures related to commodity prices. Refer to Notes 1(h) and 15 for further discussion of derivative instruments.

Commodity Price - Alliant Energy, IPL and WPL are exposed to the impact of market fluctuations in the price and transportation costs of commodities they procure and market. Established policies and procedures mitigate risks associated with these market fluctuations, including the use of various commodity derivatives and contracts of various durations for the forward sale and purchase of these commodities. Exposure to commodity price risks in the utility businesses is also significantly mitigated by current rate-making structures in place for recovery of fuel-related costs as well as the cost of natural gas purchased for resale. IPL's electric and gas tariffs and WPL's wholesale electric and gas tariffs provide for subsequent monthly adjustments to their tariff rates for material changes in prudently incurred commodity costs. IPL's and WPL's rate mechanisms, combined with commodity derivatives, significantly reduce commodity risk associated with their electric and gas margins.

WPL’s retail electric margins have the most exposure to the impact of changes in commodity prices due largely to the current retail recovery mechanism in place in Wisconsin for fuel-related costs. The cost recovery mechanism applicable for WPL’s retail electric customers is based on forecasts of fuel-related costs expected to be incurred during forward-looking test year periods and fuel monitoring ranges determined by the PSCW during each retail electric rate proceeding or in a separate fuel cost plan approval proceeding. Under this cost recovery mechanism, if WPL’s actual fuel-related costs fall outside this fuel monitoring range during the test period, WPL is authorized to defer the incremental under-/over-collection of fuel-related costs from retail electric customers that are outside the approved ranges. Deferral of under-collection of fuel-related costs are reduced to the extent WPL’s return on common equity during the fuel cost plan year exceeds the most recently authorized return on common equity. Refer to Note 2 for discussion of amounts recorded by Alliant Energy on the balance sheet as of December 31, 2014 for fuel-related costs incurred by WPL during 2014 that fell outside the approved bandwidth for 2014.

In December 2014, the PSCW approved annual forecasted fuel-related costs per MWh of $28.00 based on $386 million of variable fuel-related costs applicable for retail and wholesale customers for WPL's 2015 test period. The retail portion of the 2015 fuel-related costs will be monitored using an annual bandwidth of plus or minus 2%. Based on the cost recovery mechanism in Wisconsin, the annual forecasted fuel-related costs approved by the PSCW in December 2014 and an annual bandwidth of plus or minus 2%, Alliant Energy and WPL currently estimate the commodity risk exposure to their retail electric margins in 2015 is approximately $6 million. However, if WPL's return on common equity in 2015 exceeds the most recently authorized return on common equity, the commodity risk exposure to WPL's electric margins in 2015 could increase.

Refer to Note 1(g) for additional details of utility cost recovery mechanisms that significantly reduce commodity risk.

Investment Price - Alliant Energy, IPL and WPL are exposed to investment price risk as a result of their investments in securities, largely related to securities held by their pension and OPEB plans. Refer to Note 12(a) for details of the securities held by their pension and OPEB plans. Refer to “Critical Accounting Policies and Estimates” for the impact on retirement plan costs of changes in the rate of returns earned by plan assets.



Interest Rate - Alliant Energy, IPL and WPL are exposed to risk resulting from changes in interest rates when issuing variable-rate borrowings. In addition, Alliant Energy and IPL are exposed to risk resulting from changes in interest rates as a result of cash proceeds outstanding under IPL's sales of accounts receivable program. Assuming the impact of a hypothetical 100 basis point increase in interest rates on variable-rate borrowings and cash proceeds outstanding under IPL's sales of accounts receivable program at December 31, 2014, Alliant Energy's, IPL's and WPL's annual pre-tax expense would increase by approximately $5 million, $0 and $0, respectively.

Refer to Notes 5(b) and 9 for additional information on cash proceeds outstanding under IPL's sales of accounts receivable program, and short- and long-term variable-rate borrowings, respectively. Refer to “Critical Accounting Policies and Estimates” for the impacts of changes in discount rates on retirement plan obligations and costs.

New Accounting Pronouncements - Refer to Note 1(p) for discussion of new accounting pronouncements impacting Alliant Energy, IPL and WPL.

Critical Accounting Policies and Estimates - The preparation of financial statements in conformity with GAAP requires that management apply accounting policies and make estimates that affect results of operations and the amounts of assets and liabilities reported in the financial statements. The following accounting policies and estimates are critical to the business and the understanding of financial results as they require critical assumptions and judgments by management. The results of these assumptions and judgments form the basis for making estimates regarding the results of operations and the amounts of assets and liabilities that are not readily apparent from other sources. Actual financial results may differ materially from these estimates. Management has discussed these critical accounting policies and estimates with the Audit Committee of the Board of Directors. Refer to Note 1 for additional discussion of accounting policies and the estimates used in the preparation of the financial statements.

Contingencies - Assumptions and judgments are made each reporting period regarding the future outcome of contingent events and loss contingency amounts are recorded for any contingent events that are both probable and able to be reasonably estimated based upon current available information. The amounts recorded may differ from the actual income or expense that occurs when the uncertainty is resolved. The estimates made in accounting for contingencies, and the gains and losses that are recorded upon the ultimate resolution of these uncertainties, could have a significant effect on results of operations and the amount of assets and liabilities in the financial statements. Note 16 provides discussion of contingencies assessed at December 31, 2014, including various pending legal proceedings, guarantees and indemnifications that may have a material impact on financial condition and results of operations.

Regulatory Assets and Regulatory Liabilities - Alliant Energy’s utility subsidiaries (IPL and WPL) are regulated by various federal and state regulatory agencies. As a result, they are subject to GAAP for regulated operations, which recognizes that the actions of a regulator can provide reasonable assurance of the existence of an asset or liability. Regulatory assets or regulatory liabilities arise as a result of a difference between GAAP and actions imposed by the regulatory agencies in the rate-making process. Regulatory assets generally represent incurred costs that have been deferred as such costs are probable of recovery in future customer rates. Regulatory liabilities generally represent obligations to make refunds to customers or amounts collected in rates for which the related costs have not yet been incurred. Regulatory assets and regulatory liabilities are recognized in accordance with the rulings of applicable federal and state regulators, and future regulatory rulings may impact the carrying value and accounting treatment of regulatory assets and regulatory liabilities.

Assumptions and judgments are made each reporting period regarding whether regulatory assets are probable of future recovery and regulatory liabilities are probable future obligations by considering factors such as regulatory environment changes, rate orders issued by the applicable regulatory agencies and historical decisions by such regulatory agencies regarding similar regulatory assets and regulatory liabilities. The decisions made by regulatory authorities have an impact on the recovery of costs, the rate of return on invested capital and the timing and amount of assets to be recovered by rates. A change in these decisions may result in a material impact on results of operations and the amount of assets and liabilities in the financial statements. Note 2 provides details of the nature and amounts of regulatory assets and regulatory liabilities assessed at December 31, 2014 as well as material changes to regulatory assets and regulatory liabilities during 2014.

Long-Lived Assets - Periodic assessments regarding the recoverability of certain long-lived assets are completed when factors indicate the carrying value of such assets may be impaired or such assets are planned to be sold. These assessments require significant assumptions and judgments by management. The long-lived assets assessed for impairment generally include assets within non-regulated operations that are proposed to be sold or are currently generating operating losses, and certain long-lived assets within regulated operations that may not be fully recovered from IPL's and WPL's customers as a result of regulatory decisions in the future.



Non-regulated Operations - Factors considered in determining if an impairment review is necessary for long-lived assets within non-regulated operations include a significant underperformance of the assets relative to historical or projected future operating results, a significant change in the use of the acquired assets or business strategy related to such assets, and significant negative industry, regulatory or economic trends. When an impairment review is deemed necessary, a comparison is made between the expected undiscounted future cash flows and the carrying amount of the asset. If the carrying amount of the asset exceeds the expected undiscounted future cash flows, an impairment loss is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value is determined by the use of quoted market prices, appraisals, or the use of valuation techniques such as expected discounted future cash flows. Long-lived assets within non-regulated operations assessed for impairment indicators in 2014 included the Franklin County wind project for Alliant Energy and a wind site currently expected to be used to develop a future wind project for Alliant Energy and IPL.

Franklin County Wind Project - Alliant Energy completed construction of its 99 MW Franklin County wind project and placed it into service in 2012. In 2012, Alliant Energy performed an impairment test of the carrying value of the Franklin County wind project given a significant change in the use of the asset as a result of it being placed into service, continued downturn in forward electricity prices in 2012 and no long-term off-take arrangement. The test concluded the undiscounted cash flows expected from the Franklin County wind project during its estimated useful life exceeded its carrying value as of December 31, 2012, resulting in no impairment. On a quarterly basis, Alliant Energy evaluates for significant changes in the undiscounted cash flows used in the 2012 impairment test, which may indicate a significant decrease in the market value of the Franklin County wind project. No significant decrease in the undiscounted cash flows have been identified, and as a result, an impairment test has not been required since 2012. Future changes in the estimated cash flows could result in the undiscounted cash flows being less than the carrying amount and a future material impairment could be required. Primary factors that could have an effect on the future expected cash flows for the project include the price of electricity generated from the project during its useful life, the volume of electricity generated, transmission constraints impacting the project, the expected life of the project, probability of selling the wind project, and changes in anticipated operation and maintenance expenses and capital expenditures, including replacement of key turbine components throughout the life of the project. The expected output of the project is, in part, based on transmission upgrades being completed in the next few years. The expected output of the project could be significantly lower if the transmission upgrades are not completed or if the level of congestion reduction is lower than expected. An impairment of the Franklin County wind project could be triggered in the future if long-term electricity prices stay at current levels or decline, or if the expected output or life of the project is significantly reduced. As of December 31, 2014, the carrying value of the Franklin County wind project was $137 million and was recorded in “Property, plant and equipment, net” on Alliant Energy’s balance sheet. Note 3 provides additional discussion of the Franklin County wind project.

Undeveloped Wind Site - As of December 31, 2014, Alliant Energy and IPL have an undeveloped wind site with capitalized costs of $13 million related to IPL's wind site capacity in Franklin County, Iowa of up to 400 MW. Alliant Energy and IPL assessed the recoverability of this undeveloped wind site given the long-term period projected until the site is expected to be utilized and concluded no impairment test was required in 2014. Changes in the future use of this undeveloped wind site could result in a future impairment. The future utilization of this undeveloped wind site is dependent on the future demand of wind energy in the region where the wind site is located. Such future wind energy demand is dependent on various factors including future government incentives for wind projects, energy policy and legislation including federal and state renewable energy standards and regulation of carbon emissions, electricity and fossil fuel prices, transmission constraints in the region where the wind site is located and further technological advancements for wind generation. Alliant Energy and IPL currently believe, based on a combination of the various factors, further wind development in the region where the wind site is located will occur. Alliant Energy and IPL could realize an impairment related to this wind site if one or more of these factors are no longer expected to occur, or actions by regulatory agencies with jurisdiction over IPL indicate the costs of the undeveloped wind site would not be approved to be recovered from customers.

Regulated Operations - Long-lived assets within regulated operations are reviewed for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes. If IPL or WPL is disallowed recovery of any portion of the carrying value of its regulated property, plant and equipment that has been recently completed or is probable of being retired early, an impairment charge is recognized equal to the amount of the carrying value that was disallowed recovery. If IPL or WPL is disallowed a full or partial return on the carrying value of its regulated property, plant and equipment that has been recently completed or is probable of being retired early, an impairment charge is recognized equal to the difference between the carrying amount of the asset and the present value of the future revenues expected from its regulated property, plant and equipment. Alliant Energy's, IPL's and WPL's long-lived assets within their regulated operations that were assessed for impairment in 2014 included IPL's and WPL's generating units subject to early retirement.



Generating Units Subject to Early Retirement - Due to current and proposed environmental regulations, Alliant Energy, IPL and WPL are evaluating future plans for their electric generation fleet and have announced the early retirement of certain older and less-efficient EGUs. When it becomes probable that an EGU will be retired before the end of its useful life, Alliant Energy, IPL and WPL must assess whether the EGU meets the criteria to be considered probable of abandonment. EGUs that are considered probable of abandonment generally have material remaining net book values and are expected to cease operations in the near term significantly before the end of their original estimated useful lives. If an EGU meets such criteria to be considered probable of abandonment, Alliant Energy, IPL and WPL must assess the probability of full recovery of the remaining carrying value of such EGU. If it is probable that regulators will not allow full recovery of and a full return on the remaining carrying amount of the abandoned EGU, an impairment charge is recognized equal to the difference between the remaining carrying value and the present value of the future revenues expected from the abandoned EGU. Alliant Energy, IPL and WPL evaluated their EGUs that are subject to early retirement and determined that Edgewater Unit 3 and Nelson Dewey Units 1 and 2 met the criteria to be considered probable of abandonment as of December 31, 2014. Alliant Energy and WPL concluded that no impairment was required as of December 31, 2014 for Edgewater Unit 3 and Nelson Dewey Units 1 and 2 given that WPL is recovering the remaining net book value of these EGUs over a 10-year period beginning January 1, 2013 pursuant to a PSCW order issued in 2012. Refer to Note 3 for additional details of the EGUs considered probable of abandonment as of December 31, 2014. Refer to “Strategic Overview” for discussion of additional EGUs that may be considered probable of abandonment in future periods, along with the aggregate net book value of such EGUs.

Unbilled Revenues - Unbilled revenues are primarily associated with utility operations. Energy sales to individual customers are based on the reading of customers' meters, which occurs on a systematic basis throughout the month. Amounts of energy delivered to customers since the date of the last meter reading are estimated at the end of each reporting period and the corresponding estimated unbilled revenue is recorded. The unbilled revenue estimate is based on daily system demand volumes, estimated customer usage by class, weather impacts, line losses and the most recent customer rates. Such process involves the use of various judgments and assumptions and significant changes in these judgments and assumptions could have a material impact on results of operations. As of December 31, 2014, unbilled revenues related to Alliant Energy's utility operations were $155 million ($70 million at IPL and $85 million at WPL). Note 5(b) provides discussion of IPL's unbilled revenues as of December 31, 2014 sold to a third party related to its sales of accounts receivable program.

Pensions and Other Postretirement Benefits - Alliant Energy, IPL and WPL sponsor various defined benefit pension and OPEB plans that provide benefits to a significant portion of their employees. Assumptions and judgments are made periodically to estimate the obligations and costs related to their retirement plans. There are many judgments and assumptions involved in determining an entity's pension and other postretirement liabilities and costs each period including employee demographics (including age, life expectancies and compensation levels), discount rates, assumed rates of return and funding. Changes made to plan provisions may also impact current and future benefits costs. Judgments and assumptions are supported by historical data and reasonable projections and are reviewed at least annually. The following table shows the impacts of changing certain key actuarial assumptions discussed above (in millions):

<table><tr><td rowspan="2">Change in Actuarial Assumption</td><td colspan="2">Defined Benefit Pension Plans</td><td colspan="2">OPEB Plans</td></tr><tr><td>Impact on Projected Benefit Obligation at December 31, 2014</td><td>Impact on 2015 Net Periodic Benefit Costs</td><td>Impact on Projected Benefit Obligation at December 31, 2014</td><td>Impact of 2015 Net Periodic Benefit Costs</td></tr><tr><td>1% change in discount rate</td><td>$176</td><td>$12</td><td>$23</td><td>$2</td></tr><tr><td>1% change in expected rate of return</td><td>N/A</td><td>10</td><td>N/A</td><td>1</td></tr></table>

Note 12(a) provides additional details of pension and OPEB plans.

Income Taxes - Alliant Energy, IPL and WPL are subject to income taxes in various jurisdictions. Assumptions and judgments are made each reporting period to estimate income tax assets, liabilities, benefits and expenses. Judgments and assumptions are supported by historical data and reasonable projections. Significant changes in these judgments and assumptions could have a material impact on financial condition and results of operations. Alliant Energy’s and IPL’s critical assumptions and judgments for 2014 include estimates of qualifying deductions for repairs expenditures and allocation of mixed service costs due to the impact of Iowa rate-making principles on such property-related differences. Critical assumptions and judgments also include projections of future taxable income used to determine the ability to utilize net operating losses and credit carryforwards prior to their expiration and the states in which such future taxable income will be apportioned.



Effect of Rate-making on Property-related Differences - Alliant Energy’s and IPL’s effective income tax rates are normally impacted by certain property-related differences at IPL for which deferred tax is not recorded in the income statement pursuant to Iowa rate-making principles. Changes in methods or assumptions regarding the amount of IPL’s qualifying repairs expenditures, allocation of mixed service costs, and costs related to retirement or removal of depreciable property could result in a material impact on Alliant Energy’s and IPL’s financial condition and results of operations. Refer to Note 1(c) for further discussion of regulatory accounting for taxes. Refer to Note 11 for details of how the effect of rate-making on property-related differences impacted Alliant Energy’s and IPL’s effective income tax rates for 2014, 2013 and 2012.

Carryforward Utilization - Significant federal tax credit carryforwards and federal and state net operating loss carryforwards have been generated. Based on projections of current and future taxable income, Alliant Energy, IPL and WPL plan to utilize substantially all of these carryforwards prior to their expiration. Changes in tax regulations or assumptions regarding current and future taxable income could require valuation allowances in the future resulting in a material impact on financial condition and results of operations. Refer to Note 11 for further discussion of federal tax credit carryforwards, and federal and state net operating loss carryforwards.

Other Future Considerations - In addition to items discussed earlier in MDA and the Notes, the following items could impact future financial condition or results of operations:

Electric Transmission Service Expense - IPL and WPL currently receive substantially all their transmission services from ITC and ATC, respectively. Due to the formula rates used by ITC and ATC to charge their customers and possible future changes to these rates as discussed below, there is uncertainty regarding the long-term trends of IPL's and WPL's future electric transmission service expense. Alliant Energy, IPL and WPL currently anticipate changes to their electric transmission service expense in 2015 as follows:

Attachment “O” Rates - The annual transmission service rates that ITC or ATC charge their customers are calculated each calendar year using a FERC-approved cost of service formula rate referred to as Attachment “O.” Because Attachment “O” is a FERC-approved formula rate, ITC and ATC can implement new rates each calendar year without filing a request with FERC. However, new rates are subject to challenge by either FERC or customers. If the rates proposed by ITC or ATC are determined by FERC to be unjust or unreasonable or another mechanism is determined by FERC to be just and reasonable, ITC’s or ATC’s rates would change accordingly. In March 2014, FERC issued an order accepting revised protocols to MISO’s Attachment “O” protocols, which included changes to formalize the process for relevant parties to request information from transmission owners and file disputes related to formula rates, as well as establish timelines for such processes.

2015 Rates Charged by ITC to IPL - In September 2014, ITC filed with MISO the Attachment “O” rate it proposes to charge its customers in 2015 for electric transmission services. The proposed rate was based on ITC’s estimated net revenue requirement for 2015 as well as a true-up adjustment credit related to amounts that ITC over-recovered from its customers in 2013. The 2015 Attachment “O” rate filed with MISO is approximately 5% higher than the rate ITC charged its customers in 2014.

2015 Rates Charged by ATC to WPL - In September 2014, ATC shared with its customers the Attachment “O” rate it proposes to charge them in 2015 for electric transmission services. The proposed rate was based on ATC’s estimated net revenue requirement for 2015 as well as a true-up adjustment credit related to amounts that ATC over-recovered from its customers in 2013 and amounts that ATC estimated to be over-recovered in 2014. The 2015 Attachment “O” rate is approximately 3% higher than the rate ATC charged its customers in 2014.

Escrow Accounting at WPL - Electric revenues established in WPL’s retail electric rate case (2015/2016 Test Period) included recovery of expected increases in electric transmission service expense largely due to SSR costs expected to be incurred. Due to a recent revision in MISO’s method to allocate SSR costs, WPL no longer expects to incur such SSR costs. The difference between actual electric transmission service expense incurred and amounts collected from customers as electric revenues in 2015 and 2016 will be recorded as electric transmission service expense with an offsetting amount recorded to regulatory liabilities due to the escrow treatment WPL received as part of its approved retail electric rate case. Alliant and WPL currently expect an increase in electric transmission service expense in 2015 compared to 2014 as a result of WPL’s escrow treatment of electric transmission service expense.



2015 Electric Transmission Service Expense - Alliant Energy, IPL and WPL currently estimate their total electric transmission service expense in 2015 will be higher than the comparable expense in 2014 by approximately $45 million, $15 million and $30 million, respectively, as a result of the items discussed above.

MISO Transmission Owner Return on Equity Complaint - In 2013, a group of MISO industrial customer organizations filed a complaint with FERC requesting to reduce the base return on equity used by MISO transmission owners, including ITC and ATC, to 9.15%, and institute a regulatory capital structure not to exceed 50% of common equity, among other items. ITC's and ATC's current authorized return on equity is 12.38% and 12.2%, respectively. ITC's and ATC's current authorized regulatory capital structure for common equity is 60% and 50%, respectively.

In October 2014, FERC issued an order on the complaint against the MISO transmission owners, established hearing and settlement procedures on the return on equity component of the complaint, and established a refund period back to November 12, 2013. FERC also denied the request to limit the regulatory capital structure to 50% of common equity, among other items. Settlement discussions between the parties were held and no agreement was reached. The complaint is now subject to hearing procedures and an initial decision from FERC on the complaint is currently expected in late 2015. Alliant Energy, IPL and WPL are currently unable to determine what, if any, impact the October 2014 FERC order, subsequent hearing procedures and a new methodology FERC established for determining the return on equity may have on the returns authorized by FERC for MISO transmission owners, including ITC and ATC.

Any change to ITC’s and ATC’s return on equity would impact the calculation of their respective Attachment “O” rates, resulting in changes to electric transmission service costs billed by ITC and ATC to their customers. Any changes in IPL’s electric transmission service costs billed by ITC to IPL are expected to be passed on to IPL’s Iowa retail electric customers through the transmission cost recovery rider. Any changes in WPL’s electric transmission service costs will be incorporated into WPL’s retail electric rates in a future retail electric base rate proceeding with the PSCW. Pursuant to the July 2014 PSCW order related to WPL’s Wisconsin retail electric and gas rate case (2015/2016 Test Period), WPL received escrow treatment for the difference between actual electric transmission service costs and those costs used to determine rates during 2015 and 2016. Based on these transmission cost recovery mechanisms, IPL and WPL currently do not expect that any changes to electric transmission service costs billed by ITC and ATC due to this complaint will have a material impact on their financial condition and results of operations.

In addition, any change to ATC’s return on equity could result in Alliant Energy and WPL realizing lower equity income and dividends from ATC in the future. Alliant Energy and WPL currently estimate each 25 basis point reduction in ATC’s authorized return on equity would reduce their annual pre-tax equity income from ATC by approximately $1 million. Alliant Energy, IPL and WPL are currently unable to determine the timing and nature of any subsequent FERC action related to these matters and resulting changes to their financial condition and results of operations.

MISO Transmission Owners’ Request for Equity Adder - In January 2015, FERC issued an order accepting a request from a group of MISO transmission owners, including ITC and ATC, to implement a 50 basis point incentive adder to their return on equity based on participation in MISO. The implementation of the adder is effective January 2015, subject to certain conditions. Alliant Energy, IPL and WPL are currently unable to determine any resulting changes to future electric transmission service charges pending a decision by FERC regarding the MISO transmission owner return on equity complaint discussed above.

ITC Request for Equity Adder - In January 2015, ITC requested approval from FERC to implement a 100 basis point incentive adder to their return on equity for being an independent transmission company. The implementation of the adder was requested to be effective April 1, 2015, subject to certain conditions. Alliant Energy and IPL are currently unable to determine the exact timing and nature of any subsequent FERC action related to this matter or any resulting changes to future electric transmission service charges.



ITC’s Attachment “FF” Tariff - In 2012, IPL filed a complaint with FERC regarding ITC’s Attachment “FF” tariff. ITC’s Attachment “FF” tariff determines how much of the transmission network upgrade costs incurred to interconnect an EGU to ITC’s transmission system will be incurred by the owner of such EGU. In the complaint, IPL alleged that its customers have made material incremental payments under ITC’s Attachment “FF” tariff without obtaining equal benefits, as compared to costs that would have been charged under MISO’s Attachment “FF” tariff applicable in the majority of the MISO pricing zones. In July 2013, FERC issued an order requiring MISO, on behalf of ITC, to revise ITC’s Attachment “FF” tariff to conform to the MISO Attachment “FF” tariff. In August 2013, MISO submitted a filing with these tariff revisions, which became effective as of the date of the July 2013 order. Also in August 2013, ITC filed a request for rehearing and/or clarification, and IPL filed a request for clarification. In February 2014, FERC issued an order that denied ITC’s request for rehearing, responded to the requests for clarification, accepted MISO’s tariff revisions and substantially affirmed its July 2013 order. In March 2014, another utility filed a request for rehearing with FERC on the February 2014 order. It is uncertain how or when future FERC action, if any, could change the results of the February 2014 order or the future amount of electric transmission service charges billed by ITC to IPL and WPL. The revised Attachment “FF” tariff is expected to reduce the amount of transmission network upgrade costs billed by ITC to IPL compared to what would have been billed under ITC’s prior Attachment “FF” tariff. Alliant Energy and IPL currently expect to pass on the Iowa retail portion of any changes in electric transmission service costs billed by ITC to IPL from the revision in ITC’s Attachment “FF” tariff to IPL’s retail electric customers in Iowa through the transmission cost recovery rider.

## Sales Trends -

Jo-Carroll - In March 2014, Jo-Carroll provided notice of termination of its wholesale power supply agreement with IPL effective April 1, 2018. Sales to Jo-Carroll represented 3% of IPL's total electric sales in 2014.

WPPI Energy - In November 2014, WPPI Energy provided notice of termination of its wholesale power supply agreement with WPL effective May 31, 2017. Sales to WPPI Energy represented 8% of WPL's total electric sales in 2014.

Great Lakes Utilities - In October 2014, Great Lakes Utilities provided notice of termination of its wholesale power supply agreement with WPL effective December 31, 2017. Sales to Great Lakes Utilities represented approximately 2% of WPL's total electric sales in 2014.

Retirement Plan Costs - Alliant Energy’s, IPL’s and WPL’s net periodic benefit costs related to their defined benefit pension and OPEB plans are currently expected to be higher in 2015 compared to 2014 by approximately $21 million, $11 million and $10 million, respectively. The increase in net periodic benefit costs is primarily due to the use of lower discount rates and a change in life expectancy assumptions as of December 31, 2014. Approximately 30% to 40% of net periodic benefit costs are allocated to capital projects each year. As a result, the increase in net periodic benefit costs is not expected to result in a comparable increase in other operation and maintenance expenses. Refer to Note 12(a) for additional details of defined benefit pension and OPEB plans.

Performance-based Compensation Plans - Alliant Energy’s total compensation package includes a performance-based compensation program, which provides substantially all of its non-bargaining employees an opportunity to receive annual cash payments based on the achievement of specific short-term annual operational and financial performance measures. In addition, the total compensation program for certain key employees includes long-term awards issued under equity-based compensation plans. In 2014, Alliant Energy, IPL and WPL incurred $42 million, $24 million and $17 million, respectively, of performance-based compensation expense. Refer to Note 12(b) for details of the equity-based compensation plans. Alliant Energy, IPL and WPL are currently unable to determine what impacts these performance-based compensation plans will have on their future financial condition or results of operations.



## MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Alliant Energy Corporation and subsidiaries (Alliant Energy) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Alliant Energy’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Because of the inherent limitations of internal control over financial reporting, misstatements may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Alliant Energy’s management assessed the effectiveness of Alliant Energy’s internal control over financial reporting as of December 31, 2014 using the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, Alliant Energy’s management concluded that, as of December 31, 2014, Alliant Energy’s internal control over financial reporting was effective.

Deloitte & Touche LLP, Alliant Energy’s independent registered public accounting firm, has audited Alliant Energy’s internal control over financial reporting. That report is set forth immediately prior to the report of Deloitte & Touche LLP on the financial statements included herein.



Patricia L. Kampling
Chairman, President and Chief Executive Officer



Thomas L. Hanson
Senior Vice President and Chief Financial Officer



Robert J. Durian
Controller and Chief Accounting Officer

February 24, 2015



# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareowners of
Alliant Energy Corporation
Madison, Wisconsin

We have audited the internal control over financial reporting of Alliant Energy Corporation and subsidiaries (the "Company") as of December 31, 2014, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, 2014 of the Company and our report dated February 24, 2015 expressed an unqualified opinion on those financial statements.

Deloitte & Touche LLP

Milwaukee, Wisconsin
February 24, 2015



# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareowners of Alliant Energy Corporation Madison, Wisconsin

We have audited the accompanying consolidated balance sheets of Alliant Energy Corporation and subsidiaries (the "Company") as of December 31, 2014 and 2013, and the related consolidated statements of income, common equity, and cash flows for each of the three years in the period ended December 31, 2014. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2014 and 2013, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2014, based on the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2015 expressed an unqualified opinion on the Company’s internal control over financial reporting.

Deloitte & Touche LLP

Milwaukee, Wisconsin

February 24, 2015



## CONSOLIDATED FINANCIAL STATEMENTS

## CONSOLIDATED STATEMENTS OF INCOME

<table><tr><td rowspan="3"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2014</td><td>2013</td><td>2012</td></tr><tr><td colspan="3">(in millions, except per share amounts)</td></tr><tr><td>Operating revenues:</td><td></td><td></td><td></td></tr><tr><td>Utility:</td><td></td><td></td><td></td></tr><tr><td>Electric</td><td>$2,713.6</td><td>$2,689.0</td><td>$2,589.3</td></tr><tr><td>Gas</td><td>517.5</td><td>464.8</td><td>396.3</td></tr><tr><td>Other</td><td>66.1</td><td>71.3</td><td>56.7</td></tr><tr><td>Non-regulated</td><td>53.1</td><td>51.7</td><td>52.2</td></tr><tr><td>Total operating revenues</td><td>3,350.3</td><td>3,276.8</td><td>3,094.5</td></tr><tr><td>Operating expenses:</td><td></td><td></td><td></td></tr><tr><td>Utility:</td><td></td><td></td><td></td></tr><tr><td>Electric production fuel and energy purchases</td><td>852.1</td><td>725.0</td><td>712.3</td></tr><tr><td>Purchased electric capacity</td><td>25.1</td><td>216.8</td><td>271.5</td></tr><tr><td>Electric transmission service</td><td>447.5</td><td>418.3</td><td>341.3</td></tr><tr><td>Cost of gas sold</td><td>327.8</td><td>276.7</td><td>217.2</td></tr><tr><td>Other operation and maintenance</td><td>658.3</td><td>620.7</td><td>590.0</td></tr><tr><td>Non-regulated operation and maintenance</td><td>6.7</td><td>14.9</td><td>11.9</td></tr><tr><td>Depreciation and amortization</td><td>388.1</td><td>370.9</td><td>332.4</td></tr><tr><td>Taxes other than income taxes</td><td>101.1</td><td>99.6</td><td>98.2</td></tr><tr><td>Total operating expenses</td><td>2,806.7</td><td>2,742.9</td><td>2,574.8</td></tr><tr><td>Operating income</td><td>543.6</td><td>533.9</td><td>519.7</td></tr><tr><td>Interest expense and other:</td><td></td><td></td><td></td></tr><tr><td>Interest expense</td><td>180.6</td><td>172.8</td><td>156.7</td></tr><tr><td>Equity income from unconsolidated investments, net</td><td>(40.4)</td><td>(43.7)</td><td>(41.3)</td></tr><tr><td>Allowance for funds used during construction</td><td>(34.8)</td><td>(30.8)</td><td>(21.9)</td></tr><tr><td>Interest income and other</td><td>(1.8)</td><td>(0.4)</td><td>(4.0)</td></tr><tr><td>Total interest expense and other</td><td>103.6</td><td>97.9</td><td>89.5</td></tr><tr><td>Income from continuing operations before income taxes</td><td>440.0</td><td>436.0</td><td>430.2</td></tr><tr><td>Income taxes</td><td>44.3</td><td>53.9</td><td>89.4</td></tr><tr><td>Income from continuing operations, net of tax</td><td>395.7</td><td>382.1</td><td>340.8</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>(2.4)</td><td>(5.9)</td><td>(5.1)</td></tr><tr><td>Net income</td><td>393.3</td><td>376.2</td><td>335.7</td></tr><tr><td>Preferred dividend requirements of subsidiaries</td><td>10.2</td><td>17.9</td><td>15.9</td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td>$383.1</td><td>$358.3</td><td>$319.8</td></tr><tr><td>Weighted average number of common shares outstanding (basic and diluted)</td><td>110.8</td><td>110.8</td><td>110.8</td></tr><tr><td>Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted):</td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations, net of tax</td><td>$3.48</td><td>$3.29</td><td>$2.93</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>(0.02)</td><td>(0.06)</td><td>(0.04)</td></tr><tr><td>Net income</td><td>$3.46</td><td>$3.23</td><td>$2.89</td></tr><tr><td>Amounts attributable to Alliant Energy common shareowners:</td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations, net of tax</td><td>$385.5</td><td>$364.2</td><td>$324.9</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>(2.4)</td><td>(5.9)</td><td>(5.1)</td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td>$383.1</td><td>$358.3</td><td>$319.8</td></tr></table>

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.



## CONSOLIDATED BALANCE SHEETS

<table><tr><td rowspan="3"></td><td colspan="2">December 31,</td></tr><tr><td>2014</td><td>2013</td></tr><tr><td colspan="2">(in millions, except per share and share amounts)</td></tr><tr><td>ASSETS</td><td></td><td></td></tr><tr><td>Current assets:</td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$56.9</td><td>$9.8</td></tr><tr><td>Accounts receivable, less allowance for doubtful accounts</td><td>427.3</td><td>473.3</td></tr><tr><td>Production fuel, at weighted average cost</td><td>83.8</td><td>103.6</td></tr><tr><td>Materials and supplies, at weighted average cost</td><td>72.9</td><td>69.6</td></tr><tr><td>Gas stored underground, at weighted average cost</td><td>67.1</td><td>38.6</td></tr><tr><td>Regulatory assets</td><td>68.1</td><td>53.9</td></tr><tr><td>Deferred income tax assets</td><td>150.1</td><td>136.7</td></tr><tr><td>Other</td><td>116.9</td><td>125.7</td></tr><tr><td>Total current assets</td><td>1,043.1</td><td>1,011.2</td></tr><tr><td>Property, plant and equipment, net</td><td>8,938.4</td><td>8,326.5</td></tr><tr><td>Investments:</td><td></td><td></td></tr><tr><td>Investment in American Transmission Company LLC</td><td>286.5</td><td>272.1</td></tr><tr><td>Other</td><td>58.4</td><td>57.5</td></tr><tr><td>Total investments</td><td>344.9</td><td>329.6</td></tr><tr><td>Other assets:</td><td></td><td></td></tr><tr><td>Regulatory assets</td><td>1,715.6</td><td>1,359.3</td></tr><tr><td>Deferred charges and other</td><td>43.9</td><td>85.8</td></tr><tr><td>Total other assets</td><td>1,759.5</td><td>1,445.1</td></tr><tr><td>Total assets</td><td>$12,085.9</td><td>$11,112.4</td></tr><tr><td>LIABILITIES AND EQUITY</td><td></td><td></td></tr><tr><td>Current liabilities:</td><td></td><td></td></tr><tr><td>Current maturities of long-term debt</td><td>$183.0</td><td>$358.5</td></tr><tr><td>Commercial paper</td><td>141.3</td><td>279.4</td></tr><tr><td>Accounts payable</td><td>427.9</td><td>365.0</td></tr><tr><td>Regulatory liabilities</td><td>200.1</td><td>196.6</td></tr><tr><td>Other</td><td>262.4</td><td>233.8</td></tr><tr><td>Total current liabilities</td><td>1,214.7</td><td>1,433.3</td></tr><tr><td>Long-term debt, net (excluding current portion)</td><td>3,606.7</td><td>2,977.8</td></tr><tr><td>Other liabilities:</td><td></td><td></td></tr><tr><td>Deferred income tax liabilities</td><td>2,321.1</td><td>2,112.7</td></tr><tr><td>Regulatory liabilities</td><td>621.1</td><td>624.9</td></tr><tr><td>Pension and other benefit obligations</td><td>421.7</td><td>206.6</td></tr><tr><td>Other</td><td>260.1</td><td>273.9</td></tr><tr><td>Total other liabilities</td><td>3,624.0</td><td>3,218.1</td></tr><tr><td>Commitments and contingencies (Note 16)</td><td></td><td></td></tr><tr><td>Equity:</td><td></td><td></td></tr><tr><td>Alliant Energy Corporation common equity:</td><td></td><td></td></tr><tr><td>Common stock - $0.01 par value - 240,000,000 shares authorized; 110,935,680 and 110,943,669 shares outstanding</td><td>1.1</td><td>1.1</td></tr><tr><td>Additional paid-in capital</td><td>1,509.1</td><td>1,507.8</td></tr><tr><td>Retained earnings</td><td>1,938.0</td><td>1,780.7</td></tr><tr><td>Accumulated other comprehensive loss</td><td>(0.6)</td><td>(0.2)</td></tr><tr><td>Shares in deferred compensation trust - 238,935 and 227,469 shares at a weighted average cost of $37.45 and $35.25 per share</td><td>(8.9)</td><td>(8.0)</td></tr><tr><td>Total Alliant Energy Corporation common equity</td><td>3,438.7</td><td>3,281.4</td></tr><tr><td>Cumulative preferred stock of Interstate Power and Light Company</td><td>200.0</td><td>200.0</td></tr><tr><td>Noncontrolling interest</td><td>1.8</td><td>1.8</td></tr><tr><td>Total equity</td><td>3,640.5</td><td>3,483.2</td></tr><tr><td>Total liabilities and equity</td><td>$12,085.9</td><td>$11,112.4</td></tr></table>

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.



## CONSOLIDATED STATEMENTS OF CASH FLOWS

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2014</td><td>2013</td><td>2012</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Cash flows from operating activities:</td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>$393.3</td><td>$376.2</td><td>$335.7</td></tr><tr><td>Adjustments to reconcile net income to net cash flows from operating activities:</td><td></td><td></td><td></td></tr><tr><td>Depreciation and amortization</td><td>388.1</td><td>370.9</td><td>332.9</td></tr><tr><td>Other amortizations</td><td>54.2</td><td>40.2</td><td>55.0</td></tr><tr><td>Deferred taxes and investment tax credits</td><td>55.2</td><td>108.3</td><td>143.3</td></tr><tr><td>Equity income from unconsolidated investments, net</td><td>(40.4)</td><td>(43.7)</td><td>(41.3)</td></tr><tr><td>Distributions from equity method investments</td><td>36.4</td><td>35.4</td><td>34.2</td></tr><tr><td>Equity component of allowance for funds used during construction</td><td>(23.1)</td><td>(20.3)</td><td>(14.1)</td></tr><tr><td>Other</td><td>2.0</td><td>(3.7)</td><td>0.7</td></tr><tr><td>Other changes in assets and liabilities:</td><td></td><td></td><td></td></tr><tr><td>Accounts receivable</td><td>48.7</td><td>(49.2)</td><td>61.3</td></tr><tr><td>Sales of accounts receivable</td><td>(7.0)</td><td>(101.0)</td><td>(10.0)</td></tr><tr><td>Regulatory assets</td><td>(439.8)</td><td>140.5</td><td>(178.1)</td></tr><tr><td>Regulatory liabilities</td><td>10.8</td><td>(90.8)</td><td>16.4</td></tr><tr><td>Deferred income taxes</td><td>138.4</td><td>101.9</td><td>69.7</td></tr><tr><td>Pension and other benefit obligations</td><td>215.1</td><td>(157.4)</td><td>51.3</td></tr><tr><td>Other</td><td>59.7</td><td>23.7</td><td>(15.9)</td></tr><tr><td>Net cash flows from operating activities</td><td>891.6</td><td>731.0</td><td>841.1</td></tr><tr><td>Cash flows used for investing activities:</td><td></td><td></td><td></td></tr><tr><td>Construction and acquisition expenditures:</td><td></td><td></td><td></td></tr><tr><td>Utility business - purchase of Riverside Energy Center</td><td>—</td><td>—</td><td>(403.5)</td></tr><tr><td>Utility business - other</td><td>(838.9)</td><td>(731.6)</td><td>(622.0)</td></tr><tr><td>Alliant Energy Corporate Services, Inc. and non-regulated businesses</td><td>(63.9)</td><td>(66.7)</td><td>(132.6)</td></tr><tr><td>Proceeds from Franklin County wind project cash grant</td><td>—</td><td>62.4</td><td>—</td></tr><tr><td>Other</td><td>(14.9)</td><td>(18.8)</td><td>2.6</td></tr><tr><td>Net cash flows used for investing activities</td><td>(917.7)</td><td>(754.7)</td><td>(1,155.5)</td></tr><tr><td>Cash flows from financing activities:</td><td></td><td></td><td></td></tr><tr><td>Common stock dividends</td><td>(225.8)</td><td>(208.3)</td><td>(199.3)</td></tr><tr><td>Preferred dividends paid by subsidiaries</td><td>(10.2)</td><td>(11.4)</td><td>(15.9)</td></tr><tr><td>Payments to redeem cumulative preferred stock of IPL and WPL</td><td>—</td><td>(211.0)</td><td>—</td></tr><tr><td>Proceeds from issuance of cumulative preferred stock of IPL</td><td>—</td><td>200.0</td><td>—</td></tr><tr><td>Proceeds from issuance of long-term debt</td><td>812.9</td><td>250.0</td><td>385.0</td></tr><tr><td>Payments to retire long-term debt</td><td>(358.5)</td><td>(1.5)</td><td>(1.4)</td></tr><tr><td>Net change in commercial paper</td><td>(138.1)</td><td>11.9</td><td>164.7</td></tr><tr><td>Other</td><td>(7.1)</td><td>(17.4)</td><td>(8.9)</td></tr><tr><td>Net cash flows from financing activities</td><td>73.2</td><td>12.3</td><td>324.2</td></tr><tr><td>Net increase (decrease) in cash and cash equivalents</td><td>47.1</td><td>(11.4)</td><td>9.8</td></tr><tr><td>Cash and cash equivalents at beginning of period</td><td>9.8</td><td>21.2</td><td>11.4</td></tr><tr><td>Cash and cash equivalents at end of period</td><td>$56.9</td><td>$9.8</td><td>$21.2</td></tr><tr><td>Supplemental cash flows information:</td><td></td><td></td><td></td></tr><tr><td>Cash (paid) refunded during the period for:</td><td></td><td></td><td></td></tr><tr><td>Interest, net of capitalized interest</td><td>($180.8)</td><td>($171.7)</td><td>($155.2)</td></tr><tr><td>Income taxes, net</td><td>$5.3</td><td>$9.6</td><td>$20.3</td></tr><tr><td>Significant non-cash investing and financing activities:</td><td></td><td></td><td></td></tr><tr><td>Accrued capital expenditures</td><td>$160.3</td><td>$103.8</td><td>$105.3</td></tr></table>

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.



## CONSOLIDATED STATEMENTS OF COMMON EQUITY

<table><tr><td></td><td>Common Stock</td><td>Additional Paid-In Capital</td><td>Retained Earnings</td><td>Accumulated Other Comprehensive Income (Loss)</td><td>Shares in Deferred Compensation Trust</td><td>Total Alliant Energy Common Equity</td></tr><tr><td></td><td></td><td></td><td></td><td colspan="3">(in millions)</td></tr><tr><td>2012:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beginning balance</td><td>$1.1</td><td>$1,510.8</td><td>$1,510.2</td><td>($0.8)</td><td>($8.3)</td><td>$3,013.0</td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td></td><td></td><td>319.8</td><td></td><td></td><td>319.8</td></tr><tr><td>Common stock dividends ($1.80 per share)</td><td></td><td></td><td>(199.3)</td><td></td><td></td><td>(199.3)</td></tr><tr><td>Other</td><td></td><td>0.4</td><td></td><td></td><td>1.0</td><td>1.4</td></tr><tr><td>Ending balance</td><td>1.1</td><td>1,511.2</td><td>1,630.7</td><td>(0.8)</td><td>(7.3)</td><td>3,134.9</td></tr><tr><td>2013:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td></td><td></td><td>358.3</td><td></td><td></td><td>358.3</td></tr><tr><td>Common stock dividends ($1.88 per share)</td><td></td><td></td><td>(208.3)</td><td></td><td></td><td>(208.3)</td></tr><tr><td>Preferred stock issuance costs</td><td></td><td>(5.4)</td><td></td><td></td><td></td><td>(5.4)</td></tr><tr><td>Other</td><td></td><td>2.0</td><td></td><td></td><td>(0.7)</td><td>1.3</td></tr><tr><td>Other comprehensive income, net of tax</td><td></td><td></td><td></td><td>0.6</td><td></td><td>0.6</td></tr><tr><td>Ending balance</td><td>1.1</td><td>1,507.8</td><td>1,780.7</td><td>(0.2)</td><td>(8.0)</td><td>3,281.4</td></tr><tr><td>2014:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td></td><td></td><td>383.1</td><td></td><td></td><td>383.1</td></tr><tr><td>Common stock dividends ($2.04 per share)</td><td></td><td></td><td>(225.8)</td><td></td><td></td><td>(225.8)</td></tr><tr><td>Other</td><td></td><td>1.3</td><td></td><td></td><td>(0.9)</td><td>0.4</td></tr><tr><td>Other comprehensive loss, net of tax</td><td></td><td></td><td></td><td>(0.4)</td><td></td><td>(0.4)</td></tr><tr><td>Ending balance</td><td>$1.1</td><td>$1,509.1</td><td>$1,938.0</td><td>($0.6)</td><td>($8.9)</td><td>$3,438.7</td></tr></table>

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.



# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

## (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

## (a) General -

Description of Business - Alliant Energy’s financial statements include the accounts of Alliant Energy and its consolidated subsidiaries. Alliant Energy is an investor-owned public utility holding company, whose primary wholly-owned subsidiaries are IPL, WPL, Resources and Corporate Services.

IPL is a direct subsidiary of Alliant Energy and is engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas. IPL is also engaged in the generation and distribution of steam for two customers in Cedar Rapids, Iowa. IPL’s service territories are located in Iowa and southern Minnesota. Refer to Note 3 for discussion of IPL’s anticipated sales of its Minnesota electric and natural gas distribution assets.

WPL is a direct subsidiary of Alliant Energy and is engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas. WPL’s service territories are located in southern and central Wisconsin.

Resources is comprised of Transportation, Non-regulated Generation, ATI and other non-regulated investments. Transportation includes a short-line railway that provides freight service between Cedar Rapids, Iowa and Iowa City, Iowa; barge terminal and hauling services on the Mississippi River; and other transfer and storage services. Non-regulated Generation owns Sheboygan Falls, a 347 MW, simple-cycle, natural gas-fired EGU near Sheboygan Falls, Wisconsin, which is leased to WPL for an initial period of 20 years ending in 2025. In addition, Non-regulated Generation owns the non-regulated 99 MW Franklin County wind project located in Franklin County, Iowa. Refer to Note 6(a) for discussion of ATI, a wholly-owned subsidiary of Resources, which holds a partial interest in WPL Transco. Refer to Note 19 for discussion of Alliant Energy’s RMT business, which was sold in 2013.

Corporate Services is the subsidiary formed to provide administrative services to Alliant Energy and its subsidiaries.

Basis of Presentation - The financial statements reflect investments in controlled subsidiaries on a consolidated basis and Alliant Energy’s proportionate share of jointly-owned utility EGUs. Unconsolidated investments, which Alliant Energy does not control, but does have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method of accounting. Investments that do not meet the criteria for consolidation or the equity method of accounting are accounted for under the cost method. Refer to Notes 1(n) and 6(a) for further discussion of VIEs and equity method investments, respectively.

All intercompany balances and transactions, other than certain transactions affecting the rate-making process at IPL and WPL, have been eliminated from the financial statements. Such transactions not eliminated include costs that are recoverable from customers through rate-making processes. The financial statements are prepared in conformity with GAAP, which give recognition to the rate-making and accounting practices of FERC and state commissions having regulatory jurisdiction. Certain prior period amounts in the Financial Statements and Notes have been reclassified to conform to the current period presentation for comparative purposes. The balance sheets presentation changed from a utility format to a traditional format. This change revised the order of certain balance sheet line items and did not result in any changes in classification of amounts between line items. Unless otherwise noted, the notes herein exclude discontinued operations for all periods presented, and assets and liabilities held for sale as of December 31, 2014.

Use of Estimates - The preparation of the financial statements requires management to make estimates and assumptions that affect: (a) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (b) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(b) Regulatory Assets and Regulatory Liabilities - Alliant Energy, IPL and WPL are subject to regulation by FERC and various state regulatory commissions. As a result, Alliant Energy, IPL and WPL are subject to GAAP provisions for regulated operations, which provide that rate-regulated public utilities record certain costs and credits allowed in the rate-making process in different periods than for non-regulated entities. Regulatory assets generally represent incurred costs that have been deferred as such costs are probable of recovery in future customer rates. Regulatory liabilities generally represent obligations to make refunds to customers or amounts collected in rates for which the related costs have not yet been incurred. Amounts deferred as regulatory assets or accrued as regulatory liabilities are generally recognized in the income statements at the time they are reflected in rates. Refer to Note 2 for additional discussion of regulatory assets and regulatory liabilities.



(c) Income Taxes - The liability method of accounting is followed for deferred income taxes, which requires the establishment of deferred income tax assets and liabilities, as appropriate, for temporary differences between the tax basis of assets and liabilities and the amounts reported in the financial statements. Deferred income taxes are recorded using currently enacted tax rates and estimates of state apportionment rates. Changes in deferred income tax assets and liabilities associated with certain property-related differences at IPL are accounted for differently than other subsidiaries of Alliant Energy due to rate-making practices in Iowa. Rate-making practices in Iowa do not include the impact of certain deferred tax expenses (benefits) in the determination of retail rates. Based on these rate-making practices, deferred tax expense (benefit) related to these property-related differences at IPL is not recorded in the income statement but instead recorded to regulatory assets or regulatory liabilities until these temporary differences reverse. Refer to Note 2 for further discussion of regulatory assets and regulatory liabilities associated with property-related differences at IPL. In Wisconsin, the PSCW has allowed rate recovery of deferred tax expense on all temporary differences since 1991.

Investment tax credits are deferred and amortized to income over the average lives of the related property. Other tax credits reduce income tax expense in the year claimed.

The alternative transition method has been elected to calculate the beginning pool of excess tax benefits available to absorb any tax deficiencies associated with recognition of share-based payment awards.

Alliant Energy files a consolidated federal income tax return, which includes the aggregate taxable income or loss of Alliant Energy and its subsidiaries. In addition, a combined return including Alliant Energy and all of its subsidiaries is filed in Wisconsin. Alliant Energy subsidiaries with a presence in Iowa file as part of a consolidated return in Iowa. Under the terms of a tax sharing agreement between Alliant Energy and its subsidiaries, IPL and WPL calculate state income tax using consolidated apportionment rates applied to separate company taxable income.

(d) Cash and Cash Equivalents - Cash and cash equivalents include short-term liquid investments that have original maturities of less than 90 days.

## (e) Property, Plant and Equipment -

## Utility Plant -

General - Utility plant is recorded at the original cost of acquisition or construction, which includes material, labor, contractor services, AFUDC and allocable overheads, such as supervision, engineering, benefits, certain taxes and transportation. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property's life or functionality are charged to maintenance expense. Ordinary retirements of utility plant and salvage value are netted and charged to accumulated depreciation upon removal from utility plant accounts and no gain or loss is recognized consistent with rate-making policies. Removal costs incurred reduce the regulatory liability. Property, plant and equipment that is probable of being retired early is classified as plant anticipated to be retired early.

Depreciation - IPL and WPL use a combination of remaining life and straight-line depreciation methods as approved by their respective regulatory commissions. The composite or group method of depreciation is used, in which a single depreciation rate is applied to the gross investment in a particular class of property. This method pools similar assets and then depreciates each group as a whole. Periodic depreciation studies are performed to determine the appropriate group lives, net salvage, estimated cost of removal and group depreciation rates. These depreciation studies are subject to review and approval by IPL's and WPL's respective regulatory commissions. Depreciation expense is included within the recoverable cost of service component of rates charged to customers. The average rates of depreciation for electric, gas and other properties, consistent with current rate-making practices, were as follows:

<table><tr><td rowspan="2"></td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013 (a)</td><td>2012</td></tr><tr><td>Electric - generation</td><td>3.6%</td><td>3.6%</td><td>3.7%</td><td>3.2%</td><td>3.3%</td><td>3.2%</td></tr><tr><td>Electric - distribution</td><td>2.5%</td><td>2.5%</td><td>2.5%</td><td>2.7%</td><td>2.7%</td><td>2.9%</td></tr><tr><td>Gas</td><td>3.3%</td><td>3.4%</td><td>3.4%</td><td>2.5%</td><td>2.5%</td><td>2.6%</td></tr><tr><td>Other</td><td>4.2%</td><td>4.4%</td><td>4.5%</td><td>6.0%</td><td>5.1%</td><td>5.3%</td></tr></table>

(a) In 2012, the PSCW issued an order approving the implementation of updated depreciation rates for WPL effective January 1, 2013 as a result of a recently completed depreciation study. In 2013, the PSCW and FERC issued orders approving WPL's requests to revise depreciation rates associated with the acquisition of Riverside effective January 1, 2013.



AFUDC - AFUDC represents costs to finance construction additions including a return on equity component and cost of debt component as required by regulatory accounting. AFUDC for IPL's construction projects is calculated in accordance with FERC guidelines. AFUDC for WPL's retail and wholesale jurisdiction construction projects is calculated in accordance with PSCW and FERC guidelines, respectively. The AFUDC recovery rates, computed in accordance with the prescribed regulatory formula, were as follows:

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>IPL (FERC formula - Marshalltown CWIP) (a)</td><td>8.0%</td><td>—%</td><td>—%</td></tr><tr><td>IPL (FERC formula - other CWIP)</td><td>7.8%</td><td>8.2%</td><td>8.2%</td></tr><tr><td>WPL (PSCW formula - retail jurisdiction)</td><td>8.2%</td><td>8.2%</td><td>8.8%</td></tr><tr><td>WPL (FERC formula - wholesale jurisdiction)</td><td>4.1%</td><td>4.5%</td><td>7.9%</td></tr></table>

(a) In 2013, the IUB issued an order establishing rate-making principles for Marshalltown that requires a 10.3% return on common equity for the calculation of AFUDC related to the construction of such facility.

In accordance with their most recent rate orders, IPL applies its AFUDC recovery rates to 100% of applicable CWIP balances and WPL generally applies its AFUDC recovery rates to 50% of applicable CWIP balances. WPL may apply its AFUDC recovery rates to 100% of the retail portion of the CWIP balances for construction projects requiring a CA or CPCN that were approved by the PSCW after their most recent rate order.

## Non-utility Property -

General - Non-utility property is recorded at the original cost of acquisition or construction, which includes material, labor and contractor services. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Upon retirement or sale of non-utility property, the original cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the income statements.

## (f) Operating Revenues -

Utility - Revenues from Alliant Energy’s utility business are primarily from electricity and natural gas sales and are recognized on an accrual basis as services are rendered or commodities are delivered to customers. Energy sales to individual customers are based on the reading of customers’ meters, which occurs on a systematic basis throughout each reporting period. Amounts of energy delivered to customers since the date of the last meter reading are estimated at the end of each reporting period and the corresponding estimated unbilled revenue is recorded in such reporting period. The unbilled revenue estimate is based on daily system demand volumes, estimated customer usage by class, weather impacts, line losses and the most recent customer rates.

IPL and WPL accrue revenues from their wholesale customers to the extent that the actual net revenue requirements calculated in accordance with FERC-approved formula rates for the reporting period are higher or lower than the amounts billed to wholesale customers during such period. Regulatory assets or regulatory liabilities are recorded as the offset for these accrued revenues under formula rate-making programs. IPL’s estimated recovery amount is recorded in the current period of service and is reflected in customer bills within two years under the provisions of approved formula rates. WPL’s estimated recovery amount is recorded in the current period of service and subject to final adjustments after a customer audit period in the subsequent year. Final settled recovery amounts are reflected in WPL’s customer bills within two years under the provisions of approved formula rates.

IPL and WPL participate in bid/offer-based wholesale energy and ancillary services markets operated by MISO. IPL’s and WPL’s customers and generating resources are located in the MISO region. MISO requires that all load serving entities and generation owners, including IPL and WPL, submit hourly day-ahead and/or real-time bids and offers for energy and ancillary services. The MISO day-ahead and real-time transactions are grouped together, resulting in a net supply to or net purchase from MISO for each hour of each day. The net supply to MISO is recorded in “Electric utility operating revenues” and the net purchase from MISO is recorded in “Electric production fuel and energy purchases” in the income statements. IPL and WPL also engage in transactions in PJM’s bid/offer-based wholesale energy market, which are accounted for similar to the MISO transactions.



Non-regulated - Revenues from Alliant Energy’s non-regulated businesses are primarily from its Transportation business and are recognized on an accrual basis as services are rendered or goods are delivered to customers.

Taxes Collected from Customers - Certain of Alliant Energy’s subsidiaries serve as collection agents for sales or various other taxes and record revenues on a net basis. Operating revenues do not include the collection of the aforementioned taxes.

Revenue Recognition - Refer to Note 1(p) for discussion of a new accounting standard recently issued by FASB, which provides principles for recognizing revenue.

## (g) Utility Cost Recovery Mechanisms -

Electric Production Fuel and Energy Purchases (Fuel-related Costs) - Fuel-related costs are incurred each period to generate and purchase electricity to meet the demand of IPL's and WPL's electric customers. These fuel-related costs include the cost of fossil fuels (primarily coal and natural gas) used during each period to produce electricity at their EGUs, electricity purchased each period from wholesale energy markets (primarily MISO) and under PPAs, costs for allowances acquired to allow certain emissions (primarily SO2 and NOx) from their EGUs and costs for chemicals utilized to control emissions from their EGUs. These fuel-related costs are recorded in “Electric production fuel and energy purchases” in the income statements.

IPL Retail - The cost recovery mechanisms applicable for IPL's retail electric customers provide for subsequent adjustments to their electric rates each month for changes in fuel-related costs. Fuel adjustment clause rules applicable to IPL's Iowa retail jurisdiction also currently allow IPL to recover prudently incurred costs for emission allowances required to comply with EPA regulations, including the Acid Rain program and CAIR, through the fuel adjustment clause. Changes in the under-/over-collection of these costs each period are recognized in "Electric production fuel and energy purchases" in Alliant Energy's income statements. The cumulative effects of the under-/over-collection of these costs are recorded in current "Regulatory assets" or current "Regulatory liabilities" on Alliant Energy's balance sheets until they are reflected in future billings to customers. The fuel adjustment clause rules applicable to IPL's Iowa retail jurisdiction currently do not contain a provision for recovery of emission controls chemical costs to flow through the fuel adjustment clause. The fuel adjustment clause rules applicable to IPL's Minnesota retail jurisdiction currently do not contain a provision for recovery of emission allowance costs or emission controls chemical costs through the fuel adjustment clause.

Effective February 22, 2014, IPL began recovering the Iowa retail portion of the DAEC PPA costs from its Iowa retail electric customers through the fuel adjustment clause pursuant to a January 2013 IUB order. This PPA does not contain minimum payments for electric generating capacity.

WPL Retail - The cost recovery mechanism applicable for WPL's retail electric customers is based on forecasts of certain fuel-related costs expected to be incurred during forward-looking test year periods and fuel monitoring ranges determined by the PSCW during each electric retail rate proceeding or in a separate fuel cost plan approval proceeding. However, if WPL's actual fuel-related costs fall outside these fuel monitoring ranges during the test period, WPL is authorized to defer the incremental under-/over-collection of fuel-related costs that are outside the approved ranges. Deferral of under-collections are reduced to the extent actual return on common equity earned by WPL during the fuel cost plan year exceeds the most recently authorized return on common equity. Deferred amounts for fuel-related costs outside the approved fuel monitoring ranges are recognized in "Electric production fuel and energy purchases" in Alliant Energy's income statements each period. The cumulative effects of these deferred amounts are recorded in current "Regulatory assets" or current "Regulatory liabilities" on Alliant Energy's balance sheets until they are reflected in future billings to customers. WPL's retail fuel-related costs include costs for emission allowances and emission controls chemicals.

IPL and WPL Wholesale - The cost recovery mechanisms applicable for IPL's and WPL's wholesale electric customers provide for subsequent adjustments to their electric rates for changes in fuel-related costs. Changes in the under-/over-collection of these costs are recognized in "Electric production fuel and energy purchases" in the income statements each period. The cumulative effects of the under-/over-collection of these costs are recorded in current "Regulatory assets" or current "Regulatory liabilities" on the balance sheets until they are reflected in future billings to customers. IPL's and WPL's costs for emission allowances and emission controls chemicals are excluded from the fuel-related cost recovery mechanisms and are recovered from their wholesale electric customers through annual changes in base rates determined by a formula rate structure.



Purchased Electric Capacity - PPAs help meet the electricity demand of IPL's and WPL's customers. Certain of these PPAs include minimum payments for IPL's and WPL's rights to electric generating capacity, which are charged each period to "Purchased electric capacity" in the income statements. Purchased electric capacity expenses are recovered from IPL's and WPL's retail electric customers through changes in base rates determined during periodic rate proceedings. Purchased electric capacity expenses are recovered from IPL's and WPL's wholesale electric customers through annual changes in base rates determined by a formula rate structure.

Electric Transmission Service - Costs incurred for the transmission of electricity to meet the demands of IPL's and WPL's customers are charged each period to “Electric transmission service” in the income statements.

IPL Retail - Electric transmission service expense is recovered from IPL's Iowa retail electric customers through a transmission cost rider. This cost recovery mechanism provides for annual adjustments to electric rates charged to Iowa electric retail customers for changes in electric transmission service expense. Changes in the under-/over-collection of these costs are recognized in "Electric transmission service" in Alliant Energy's income statements each period. The cumulative effects of the under-/over-collection of these costs are recorded in current "Regulatory assets" or current "Regulatory liabilities" on Alliant Energy's balance sheets until they are reflected in future billings to customers. The transmission cost rider will remain in effect until the IUB's final decision in IPL's next retail electric base rate case, at which time the rider will continue in its current form, continue in a modified form or be terminated.

WPL Retail - Electric transmission service expense is recovered from WPL's retail electric customers through changes in base rates determined during periodic rate proceedings.

Pursuant to the escrow accounting treatment WPL received as part of its approved retail electric rate case (2015/2016 Test Period) in July 2014 from the PSCW, the difference between actual electric transmission service expense incurred and the amount of electric transmission service costs collected from customers as electric revenues in 2015 and 2016 will be recognized in “Electric transmission service” in Alliant Energy’s income statements each period. An offsetting amount will be recorded in “Regulatory assets” or “Regulatory liabilities” on Alliant Energy’s balance sheets until they are reflected in future billings to customers.

IPL and WPL Wholesale - IPL and WPL arrange transmission service for the majority of their respective wholesale electric customers. Electric transmission service expense is allocated to and recovered from these customers based on a load ratio share computation.

Cost of Gas Sold - Costs are incurred for the purchase, transportation and storage of natural gas to serve IPL's and WPL's gas customers and the costs associated with the natural gas delivered to customers during each period are charged to "Cost of gas sold" in the income statements. The tariffs for IPL's and WPL's retail gas customers provide for subsequent adjustments to their rates each month for changes in the cost of gas sold. Changes in the under-/over-collection of these costs are also recognized in "Cost of gas sold" in the income statements each period. The cumulative effects of the under-/over-collection of these costs are recorded in current "Regulatory assets" or current "Regulatory liabilities" on the balance sheets until they are reflected in future billings to customers.

Energy Efficiency Costs - Costs are incurred to fund energy efficiency programs and initiatives that help customers reduce their energy usage. The costs incurred for these programs and initiatives are charged to “Utility - Other operation and maintenance” in the income statements each period. Energy efficiency costs incurred by IPL are recovered from its retail electric and gas customers in Iowa through an additional tariff called an EECR factor. EECR factors are revised annually and include a reconciliation to eliminate any under-/over-collection of energy efficiency costs from prior periods. Energy efficiency costs incurred by WPL are recovered from retail electric and gas customers through changes in base rates determined during periodic rate proceedings. Reconciliations of any under-/over-collection of energy efficiency costs from prior periods are also addressed in WPL's periodic rate proceedings. Changes in the under-/over-collection of energy efficiency costs each period for IPL and WPL are recognized in “Utility - Other operation and maintenance” in the income statements. The cumulative effects of the under-/over-collection of these costs for IPL and WPL are recorded in current “Regulatory assets” or current “Regulatory liabilities” on the balance sheets until they are reflected in future billings to customers.

Refer to Note 2 for additional information regarding these utility cost recovery mechanisms.



(h) Financial Instruments - Financial instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. The fair value of those financial instruments that are determined to be derivatives are recorded as assets or liabilities on the balance sheets. At the end of each reporting period, derivative instruments representing unrealized gain positions are reported as derivative assets, and derivative instruments representing unrealized loss positions are reported as derivative liabilities. Certain commodity purchase and sales contracts qualify for and have been designated under the normal purchase and sale exception. Based on this designation, such contracts are accounted for on the accrual basis of accounting. Alliant Energy, IPL and WPL have elected to not net the fair value amounts of derivatives subject to a master netting arrangement by counterparty. Alliant Energy, IPL and WPL do not offset fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) against fair value amounts recognized for derivative instruments that are executed with the same counterparty under the same master netting arrangement. Refer to Note 2 for discussion of the recognition of regulatory assets and regulatory liabilities related to the unrealized losses and gains on IPL's and WPL's derivative instruments. Refer to Notes 14, 15 and 16(f) for further discussion of derivatives and related credit risk.

## (i) Asset Impairments -

Property, Plant and Equipment of Regulated Operations - Property, plant and equipment of regulated operations are reviewed for possible impairment whenever events or changes in circumstances indicate all or a portion of the carrying value of the assets may be disallowed for rate-making purposes. If IPL or WPL are disallowed recovery of any portion of the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, an impairment charge is recognized equal to the amount of the carrying value that was disallowed. If IPL or WPL are disallowed a full or partial return on the carrying value of their regulated property, plant and equipment that is under construction, has been recently completed or is probable of abandonment, an impairment charge is recognized equal to the difference between the carrying value and the present value of the future revenues expected from their regulated property, plant and equipment. Refer to Note 3 for discussion of adjustments made by Alliant Energy in 2013 to the carrying value of IPL's Whispering Willow - East wind project, based on the MPUC approving full cost recovery of the Minnesota retail portion of the wind project construction costs in 2013.

Property, Plant and Equipment of Non-regulated Operations - Property, plant and equipment of non-regulated operations are reviewed for possible impairment whenever events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Impairment is indicated if the carrying value of an asset exceeds its undiscounted future cash flows. An impairment charge is recognized equal to the amount the carrying value exceeds the asset’s fair value.

Unconsolidated Equity Investments - If events or circumstances indicate the carrying value of investments accounted for under the equity method of accounting may not be recoverable and the decline in value is other than temporary, potential impairment is assessed. If an impairment is indicated, a charge is recognized equal to the amount the carrying value exceeds the investment’s fair value. Refer to Note 6(a) for additional discussion of investments accounted for under the equity method of accounting.

(j) Emission Allowances - Emission allowances are granted by the EPA at zero cost and permit the holder of the allowances to emit certain gaseous by-products of fossil fuel combustion, including SO \( _{2} \)  and NO \( _{x} \) . Purchased emission allowances are recorded as intangible assets at their original cost and evaluated for impairment as long-lived assets to be held and used. Emission allowances allocated or acquired are held primarily for consumption.

Amortization of emission allowances recorded in “Electric production fuel and energy purchases” in the income statements in 2014, 2013 and 2012 was not material, and is based upon a weighted average cost for each EPA compliance program category of vintage year utilized during the reporting period. As of December 31, 2014, future estimated amortization expense for emission allowances was not material for 2015 through 2019.

Cash inflows and outflows related to sales and purchases of emission allowances are presented in investing activities in the cash flows statements. Refer to Note 2 for information regarding regulatory assets related to emission allowances.

(k) Asset Retirement Obligations - The fair value of a legal obligation associated with the retirement costs of an asset is recorded as a liability with an equivalent amount added to the asset cost when an asset is placed in service, when a legal obligation is subsequently identified or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement costs. The fair value of AROs is determined using discounted cash flows analyses. The liability is accreted to its present value and the capitalized cost is depreciated over the useful life of the related asset. Accretion and depreciation expenses related to AROs for IPL's and WPL's regulated operations are recorded to regulatory assets on the balance sheets. Upon regulatory approval to recover IPL's AROs expenditures, its regulatory assets are



amortized to depreciation and amortization expenses in Alliant Energy’s income statements over the same time period that IPL’s customer rates are increased to recover the ARO expenditures. Effective January 1, 2013, WPL’s regulatory assets related to AROs are being recovered as a component of depreciation rates included in the most recent depreciation study approved by the PSCW in its May 2012 order. Accretion and depreciation expenses related to AROs for Alliant Energy’s non-regulated operations are recorded to depreciation and amortization expenses in Alliant Energy’s income statements. Upon settlement of the ARO liability, an entity settles the obligation for its recorded amount or incurs a gain or loss. Any gains or losses related to AROs for IPL’s and WPL’s regulated operations are recorded to regulatory liabilities or regulatory assets on the balance sheets. Refer to Note 13 for additional discussion of AROs.

(1) Debt Issuance and Retirement Costs - Debt issuance costs and debt premiums or discounts are deferred and amortized over the expected life of each debt issue, considering maturity dates and, if applicable, redemption rights held by others. Alliant Energy’s non-regulated businesses and Corporate Services expense in the period of retirement any unamortized debt issuance costs and debt premiums or discounts on debt retired early. Refer to Note 2 for information on regulatory assets related to IPL’s and WPL’s debt retired early or refinanced.

(m) Allowance for Doubtful Accounts - Allowances for doubtful accounts are recorded for estimated losses resulting from the inability of customers to make required payments. Allowances for doubtful accounts are estimated based on historical write-offs, customer arrears and other economic factors within IPL's and WPL's service territories. Refer to Note 5(a) for details of allowance for doubtful accounts.

(n) Variable Interest Entities - An entity is considered a VIE if its equity investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties, or its equity investors lack any of the following characteristics: (1) power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance; (2) the obligation to absorb expected losses of the entity; or (3) the right to receive expected benefits of the entity. The primary beneficiary of a VIE is required to consolidate the VIE. The financial statements did not reflect any VIEs on a consolidated basis.

(o) Cash Flows Presentation - Alliant Energy presents cash flows from continuing operations together with cash flows from discontinued operations in its cash flows statements.

## (p) New Accounting Pronouncements -

Revenue Recognition - In May 2014, FASB issued an accounting standard providing principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard also requires disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Alliant Energy, IPL and WPL are required to adopt this standard on January 1, 2017 and are currently evaluating the impact on their financial condition and results of operations.

Discontinued Operations - In April 2014, FASB issued an accounting standard that changes the criteria for reporting and qualifying for discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operational and financial results. The new standard also requires additional disclosures about discontinued operations and individually significant components of an entity that are disposed of or that are classified as held for sale and do not qualify for discontinued operations. In the fourth quarter of 2014, Alliant Energy, IPL and WPL elected to early adopt the new standard, which is applied prospectively. As of December 31, 2014, IPL’s Minnesota natural gas distribution assets qualified as held for sale. Alliant Energy and IPL evaluated the anticipated sale of these assets and believe it did not represent a strategic shift that has, or will have, a major effect on their operational and financial results. As a result, the operating results of IPL’s Minnesota natural gas distribution assets have not been separately classified and reported as discontinued operations in Alliant Energy’s income statements. Alliant Energy and IPL are currently evaluating the impact of the new standard on IPL’s anticipated sale of its Minnesota electric distribution assets and currently do not expect the anticipated sale of these assets to qualify as discontinued operations under the new standard. Refer to Note 19 for details of IPL’s Minnesota natural gas distribution assets and liabilities classified as held for sale as of December 31, 2014.



## (2) REGULATORY MATTERS

Regulatory Assets - At December 31, regulatory assets were comprised of the following items (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Tax-related</td><td>$955.3</td><td>$829.7</td><td>$928.0</td><td>$798.6</td><td>$27.3</td><td>$31.1</td></tr><tr><td>Pension and OPEB costs</td><td>570.2</td><td>355.3</td><td>287.9</td><td>174.2</td><td>282.3</td><td>181.1</td></tr><tr><td>AROs</td><td>73.7</td><td>65.7</td><td>41.4</td><td>36.7</td><td>32.3</td><td>29.0</td></tr><tr><td>Derivatives</td><td>46.9</td><td>21.1</td><td>28.0</td><td>5.9</td><td>18.9</td><td>15.2</td></tr><tr><td>Commodity cost recovery</td><td>31.1</td><td>2.0</td><td>0.4</td><td>0.7</td><td>30.7</td><td>1.3</td></tr><tr><td>Emission allowances</td><td>27.4</td><td>30.0</td><td>27.4</td><td>30.0</td><td>—</td><td>—</td></tr><tr><td>Debt redemption costs</td><td>16.1</td><td>17.9</td><td>10.9</td><td>12.2</td><td>5.2</td><td>5.7</td></tr><tr><td>Environmental-related costs</td><td>16.0</td><td>25.0</td><td>11.5</td><td>21.0</td><td>4.5</td><td>4.0</td></tr><tr><td>Other</td><td>47.0</td><td>66.5</td><td>22.4</td><td>34.2</td><td>24.6</td><td>32.3</td></tr><tr><td></td><td>$1,783.7</td><td>$1,413.2</td><td>$1,357.9</td><td>$1,113.5</td><td>$425.8</td><td>$299.7</td></tr></table>

A portion of the regulatory assets in the above table are not earning a return. These regulatory assets are expected to be recovered from customers in future rates; however, the respective carrying costs of these assets are not expected to be recovered from customers in future rates. At December 31, 2014, IPL and WPL had $26 million and $10 million, respectively, of regulatory assets representing past expenditures that were not earning a return. IPL’s regulatory assets that were not earning a return consisted primarily of clean air compliance projects and debt redemption costs. WPL’s regulatory assets that were not earning a return consisted primarily of amounts related to the wholesale portion of under-collected fuel-related costs, which is discussed in Note 1(g), and environmental-related costs. The other regulatory assets reported in the above table either earn a return or the cash has not yet been expended, in which case the assets are offset by liabilities that also do not incur a carrying cost.

Tax-related - IPL and WPL record regulatory assets for certain temporary differences (primarily related to utility property, plant and equipment at IPL) that result in a decrease in current rates charged to customers and an increase in future rates charged to customers based on the timing of income tax expense that is used to determine such rates. These temporary differences include the impacts of qualifying deductions for repairs expenditures and allocation of mixed service costs, and Iowa accelerated tax depreciation, which all contribute to lower current income tax expense during the first part of an asset's useful life and higher current tax expense during the last part of an asset's useful life. These regulatory assets will be recovered from customers in the future when these temporary differences reverse resulting in additional current income tax expense used to determine customers' rates. During 2014, Alliant Energy's and IPL's tax-related regulatory assets increased primarily due to property-related differences for qualifying repair expenditures, allocation of mixed service costs and tax accounting method changes in 2014 for cost of removal expenditures and repair expenditures for electric generation property at IPL. The increase related to the tax accounting method changes was offset by increased regulatory liabilities as discussed below in "IPL's tax benefit riders."

Pension and other postretirement benefits costs - The IUB and the PSCW have authorized IPL and WPL to record the retail portion of their respective previously unrecognized net actuarial gains and losses, and prior service costs and credits, as regulatory assets in lieu of AOCL on the balance sheets, as these amounts are expected to be recovered in future rates. IPL and WPL also recognize the wholesale portion of their previously unrecognized net actuarial gains and losses, and prior service costs and credits, as regulatory assets on the balance sheets because these costs are expected to be recovered in rates in future periods under the formula rate structure. These regulatory assets will be increased or decreased as the net actuarial gains or losses, and prior service costs or credits, are subsequently amortized and recognized as a component of net periodic benefit costs. Regulatory assets are also increased or decreased as a result of the annual defined benefit plan measurement process. During 2014, Alliant Energy's, IPL's and WPL's pension and OPEB costs regulatory assets increased due to an increase in unrecognized net actuarial losses caused by lower discount rates and a change in life expectancy assumptions used in the annual defined benefit plan measurement process as of December 31, 2014 compared to December 31, 2013.

Pension and OPEB costs are included within the recoverable cost of service component of rates charged to IPL’s and WPL’s customers. The recoverable costs included in customers’ rates are based upon pension and OPEB costs determined in accordance with GAAP and are calculated using different methods for the various regulatory jurisdictions in which IPL and WPL operate. The IUB authorized IPL in its 2009 test year Iowa retail electric rate case order to recover from its retail electric customers in Iowa an allocated portion of annual costs equal to a two-year simple average of actual costs incurred during its test year (2009) and an estimate of costs for its forward-looking post-test year (2010). The PSCW authorized WPL



in its Wisconsin retail rate cases for the 2013/2014 and 2015/2016 test periods to recover from its electric and gas retail customers an estimated allocated portion of annual costs equal to the costs expected to be incurred during the respective test year periods. IPL and WPL are authorized to recover from their wholesale customers an allocated portion of actual pension costs incurred each year. In accordance with FERC-approved formula rates, any over- or under-collection of these pension costs each year are refunded to or recovered from customers through subsequent changes to wholesale customer rates. Refer to Note 12(a) for additional details regarding pension and OPEB costs.

AROs - Alliant Energy, IPL and WPL believe it is probable that any differences between expenses accrued for legal AROs related to their regulated operations and expenses recovered currently in rates will be recoverable in future rates, and are deferring the differences as regulatory assets. Refer to Note 13 for additional details of AROs.

Derivatives - In accordance with IPL’s and WPL’s fuel and natural gas recovery mechanisms, prudently incurred costs from derivative instruments are recoverable from customers in the future after any losses are realized and gains from derivative instruments are refundable to customers in the future after any gains are realized. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities/assets resulted in comparable changes to regulatory assets/liabilities on the balance sheets. Refer to Note 15 for additional details of derivative assets and derivative liabilities.

Commodity cost recovery - Refer to Note 1(g) for additional details of IPL's and WPL's cost recovery mechanisms, and "WPL's Retail Fuel-related Rate Filing (2014 Test Year)" below for discussion of the increase in Alliant Energy's and WPL's commodity cost recovery regulatory assets in 2014.

Emission allowances - IPL entered into forward contracts in 2007 to purchase SO2 emission allowances with vintage years of 2014 through 2017 from various counterparties for $34 million to meet future CAIR emission reduction standards. Any SO2 emission allowances acquired under these forward contracts could be used to meet requirements under the existing Acid Rain program regulations or the more stringent CAIR emission reduction standards but are not eligible to be used for compliance requirements under CSAPR. In 2011, the EPA issued CSAPR to replace CAIR with an anticipated effective date in 2012. As a result of the issuance of CSAPR, Alliant Energy and IPL concluded in 2011 that the allowances to be acquired under these forward contracts would not be needed by IPL to comply with expected environmental regulations in the future. The value of these allowances was nominal, which was significantly below the $34 million contract price for these allowances. As a result, Alliant Energy recognized charges of $34 million for these forward contracts in 2011 with an offsetting obligation recorded in other liabilities. Alliant Energy and IPL concluded that $30 million of the charges are probable of recovery from IPL's customers, and therefore, were recorded to regulatory assets in 2011. The current value of these allowances continues to be nominal and significantly below the $34 million contract price for these allowances. Alliant Energy and IPL believe the unamortized balance of this regulatory asset is probable of future recovery.

Debt redemption costs - For debt retired early with no subsequent re-issuance, IPL and WPL defer any debt repayment premiums and unamortized debt issuance costs and discounts as regulatory assets. These regulatory assets are amortized over the remaining original life of the debt retired early. Debt repayment premiums and other losses resulting from the refinancing of debt by IPL and WPL are deferred as regulatory assets and amortized over the life of the new debt issued.

Environmental-related costs - The IUB has permitted IPL to recover prudently incurred costs by allowing a representative level of MGP costs in the recoverable cost of service component of rates, as determined in its most recent retail gas rate case. Under the current rate-making treatment approved by the PSCW, the MGP expenditures of WPL are deferred and collected from retail gas customers over a five-year period after new rates are implemented. Regulatory assets recorded by IPL and WPL reflect the probable future rate recovery of MGP expenditures. Refer to Note 16(e) for additional details of environmental-related MGP costs.

Other - Alliant Energy, IPL and WPL assess whether IPL’s and WPL’s regulatory assets are probable of future recovery by considering factors such as applicable regulations, recent orders by the applicable regulatory agencies, historical treatment of similar costs by the applicable regulatory agencies and regulatory environment changes. Based on these assessments, Alliant Energy, IPL and WPL believe the regulatory assets recognized as of December 31, 2014 in the above table are probable of future recovery. However, no assurance can be made that IPL and WPL will recover all of these regulatory assets in future rates. If future recovery of a regulatory asset ceases to be probable, the regulatory asset will be charged to expense in the period in which future recovery ceases to be probable.



Based on the PSCW’s July 2012 order related to WPL’s 2013/2014 test period Wisconsin retail electric and gas rate case, WPL was authorized to recover previously incurred costs associated with the acquisition of a 25% ownership interest in Edgewater Unit 5 and proposed emission controls projects. As a result, Alliant Energy recorded a $5 million increase to regulatory assets, and a $5 million credit to “Utility - Other operation and maintenance” in the income statement in 2012.

Regulatory Liabilities - At December 31, regulatory liabilities were comprised of the following items (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Cost of removal obligations</td><td>$421.7</td><td>$418.9</td><td>$279.1</td><td>$277.7</td><td>$142.6</td><td>$141.2</td></tr><tr><td>IPL&#x27;s tax benefit riders</td><td>243.0</td><td>265.4</td><td>243.0</td><td>265.4</td><td>—</td><td>—</td></tr><tr><td>Energy efficiency cost recovery</td><td>64.3</td><td>52.7</td><td>—</td><td>9.3</td><td>64.3</td><td>43.4</td></tr><tr><td>IPL&#x27;s electric transmission cost recovery</td><td>19.4</td><td>14.6</td><td>19.4</td><td>14.6</td><td>—</td><td>—</td></tr><tr><td>Commodity cost recovery</td><td>15.4</td><td>7.5</td><td>15.1</td><td>5.5</td><td>0.3</td><td>2.0</td></tr><tr><td>IPL&#x27;s electric transmission assets sale</td><td>11.3</td><td>21.6</td><td>11.3</td><td>21.6</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>46.1</td><td>40.8</td><td>15.6</td><td>20.8</td><td>30.5</td><td>20.0</td></tr><tr><td></td><td>$821.2</td><td>$821.5</td><td>$583.5</td><td>$614.9</td><td>$237.7</td><td>$206.6</td></tr></table>

Regulatory liabilities related to cost of removal obligations, to the extent expensed through depreciation rates, reduce rate base. A significant portion of the remaining regulatory liabilities are not used to reduce rate base in the revenue requirement calculations utilized in IPL’s and WPL’s respective rate proceedings.

Cost of removal obligations - Alliant Energy, IPL and WPL collect in rates future removal costs for many assets that do not have associated legal AROs. Alliant Energy, IPL and WPL record a regulatory liability for the estimated amounts they have collected in rates for these future removal costs less amounts spent on removal activities.

IPL’s tax benefit riders - IPL’s tax benefit riders utilize regulatory liabilities to credit bills of IPL’s Iowa retail electric and gas customers to help offset the impact of rate increases on such customers. These regulatory liabilities are related to tax benefits from tax accounting method changes for repairs expenditures, allocation of mixed service costs, allocation of insurance proceeds from floods in 2008, and cost of removal expenditures. In 2014, Alliant Energy’s and IPL’s “IPL’s tax benefit riders” regulatory liabilities decreased by ($22) million as follows (in millions):

<table><tr><td>Electric tax benefit rider credits</td><td>($85)</td></tr><tr><td>Gas tax benefit rider credits</td><td>(12)</td></tr><tr><td>Tax accounting method changes</td><td>75</td></tr><tr><td></td><td>($22)</td></tr></table>

In 2013, the U.S. Department of the Treasury issued tangible property regulations clarifying the tax treatment of costs incurred to acquire, maintain or improve tangible property and to retire and remove depreciable property. The regulations clarified the ability to deduct cost of removal expenditures on partial dispositions of assets. In 2014, the IRS issued implementation guidance related to these tangible property regulations, which allowed companies to file a tax accounting method change to deduct cost of removal expenditures on partial dispositions that were previously capitalized. In 2014, Alliant Energy, IPL and WPL implemented this tax accounting method change, which will result in the inclusion of additional tax deductions on Alliant Energy’s U.S. federal income tax return for the calendar year 2014. In 2013, the IRS also issued guidance that clarified acceptable units of property to be used when assessing whether costs incurred for electric generation projects may be deducted as repair expenditures or if they must be capitalized. After assessing the guidance, Alliant Energy, IPL and WPL decided in 2014 to implement the new units of property by filing a tax accounting method change as part of Alliant Energy’s U.S. federal income tax return for the calendar year 2013. IPL currently anticipates refunding its related current tax benefits from these two tax accounting method changes to its Iowa retail electric and gas customers in the future, and as a result, Alliant Energy recorded an increase of $75 million to IPL’s tax benefit riders regulatory liabilities and IPL’s tax-related regulatory assets in 2014.

Electric tax benefit rider - The IUB has approved an electric tax benefit rider proposed by IPL, which utilizes regulatory liabilities to credit bills of Iowa retail electric customers beginning in 2011 to help offset the impact of rate increases on such customers. Alliant Energy and IPL recognize an offsetting reduction to income tax expense for the after-tax amounts credited to IPL’s retail electric customers’ bills in Iowa, resulting in no impact to Alliant Energy’s and IPL’s net income from the electric tax benefit rider as follows (in millions):



<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Credit to IPL&#x27;s Iowa retail electric customers&#x27; bills with reduction to electric revenues</td><td>$85</td><td>$79</td><td>$83</td></tr><tr><td>Income tax benefit resulting from decreased taxable income caused by credits</td><td>35</td><td>33</td><td>35</td></tr><tr><td>Income tax benefit representing tax benefits realized from electric tax benefit rider</td><td>50</td><td>46</td><td>48</td></tr></table>

In December 2014, the IUB issued an order authorizing $75 million of regulatory liabilities from tax benefits to be credited to IPL's retail electric customers' bills in Iowa during 2015 through the electric tax benefit rider.

In 2013, the IUB authorized IPL to reduce the electric tax benefit rider billing credits on customers' bills in 2013 and 2014 to recognize the revenue requirement impact of the changes in tax accounting methods. The revenue requirement adjustment resulted in increases to electric revenues in Alliant Energy's income statements and was recognized through the energy adjustment clause as a reduction of the credits on IPL's Iowa retail electric customers' bills from the electric tax benefit rider as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td></tr><tr><td>Revenue requirement adjustment</td><td>$15</td><td>$24</td></tr></table>

In December 2014, the IUB authorized IPL to reduce the $75 million of billing credits on customers' bills by $15 million in 2015 to recognize the revenue requirement impact of the changes in tax accounting methods.

Gas tax benefit rider - The IUB has approved a gas tax benefit rider proposed by IPL, which utilizes approximately $12 million of regulatory liabilities annually to credit bills of Iowa retail gas customers beginning in January 2013 through December 2015 to help offset the impact of rate increases on such customers. Alliant Energy and IPL utilized gas tax benefit rider-related regulatory liabilities to credit IPL's Iowa retail gas customers' bills as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td></tr><tr><td>Credit to IPL&#x27;s Iowa retail gas customers&#x27; bills with reduction to gas revenues</td><td>$12</td><td>$11</td></tr><tr><td>Income tax benefit resulting from decreased taxable income caused by credits</td><td>5</td><td>4</td></tr><tr><td>Income tax benefit representing tax benefits realized from gas tax benefit rider</td><td>7</td><td>7</td></tr></table>

Refer to Note 11 for additional details regarding IPL's tax benefit riders.

Energy efficiency cost recovery - WPL and IPL collect revenues from their customers to offset certain expenditures incurred by WPL and IPL for energy efficiency programs, including state mandated programs and Shared Savings programs. Differences between forecasted costs used to set rates and actual costs for these programs are deferred as a regulatory asset or regulatory liability. The July 2012 PSCW order for WPL's 2013/2014 test period electric and gas base rate case authorized higher energy efficiency cost recovery amortizations for 2014, which contributed to the increase in Alliant Energy's and WPL's "Energy efficiency cost recovery" regulatory liabilities.

IPL’s electric transmission cost recovery - Refer to Note 1(g) for additional details of IPL’s electric transmission service cost recovery mechanism.

Commodity cost recovery - Refer to Note 1(g) for additional details of IPL's and WPL's commodity cost recovery mechanisms.

IPL’s electric transmission assets sale - In 2007, IPL completed the sale of its electric transmission assets to ITC and recognized a gain based on the terms of the agreement. Upon closing of the sale, IPL established a regulatory liability pursuant to conditions established by the IUB when it allowed the transaction to proceed. The regulatory liability represented the present value of IPL’s obligation to refund to its customers payments beginning in the year IPL’s customers experience an increase in rates related to the transmission charges assessed by ITC. The regulatory liability accrues interest at the monthly average U.S. Treasury rate for three-year maturities.

In 2009, the IUB issued an order authorizing IPL to use a portion of this regulatory liability to reduce Iowa retail electric customers' rates by $12 million for the period from July 2009 through February 2010 with billing credits included in the monthly energy adjustment clause. In 2010, the IUB issued an order authorizing IPL to use a portion of this regulatory liability to offset electric transmission service costs expected to be billed to IPL by ITC in 2010 related to ITC's 2008 transmission revenue adjustment. IPL utilized $41 million of this regulatory liability over a five-year period ending December 2014 to offset the Iowa retail portion of transmission costs billed to IPL by ITC in 2010 related to ITC's 2008



transmission revenue adjustment. As a result, IPL amortized $8 million of this regulatory liability annually, with an equal and offsetting amount of amortization for IPL's regulatory asset related to electric transmission service costs.

## Utility Rate Cases -

WPL’s Wisconsin Retail Electric and Gas Rate Case (2015/2016 Test Period) - In July 2014, WPL received an order from the PSCW authorizing WPL to maintain retail electric base rates at their current levels through the end of 2016. The retail electric base rate case included a return of and a return on costs for emission controls projects at Columbia Units 1 and 2 and Edgewater Unit 5, generation performance and reliability improvements at Columbia Units 1 and 2, other ongoing capital expenditures, and an increase in electric transmission service expense. The additional revenue requirement for these cost increases was offset by the impact of changes in the amortization of regulatory liabilities associated with energy efficiency cost recoveries and increased sales volumes. The order also authorizes WPL to implement a $5 million decrease in annual base rates for its retail gas customers effective January 1, 2015 followed by a freeze of such gas base rates through the end of 2016. The order included provisions that require WPL to defer a portion of its earnings if its annual regulatory return on common equity exceeds certain levels during 2015 or 2016 and allows WPL to request a change in retail base rates during this period if its annual regulatory return on common equity falls below a certain level.

WPL’s Wisconsin Retail Electric and Gas Rate Case (2013/2014 Test Period) - In July 2012, WPL received an order from the PSCW authorizing WPL to implement a decrease in annual retail gas base rates of $13 million effective January 1, 2013, followed by a freeze of such gas base rates through the end of 2014. The order also authorized WPL to maintain retail electric base rates at their current levels through the end of 2014. The order included a provision that required WPL to defer a portion of its earnings if its annual regulatory return on common equity exceeds certain levels during 2013 or 2014. As of December 31, 2014, Alliant Energy deferred $9 million of WPL’s 2013 and 2014 earnings for these provisions, which is included in “Other” in Alliant Energy’s and WPL’s regulatory liabilities tables above.

IPL’s Iowa Retail Gas Rate Case (2011 Test Year) - In May 2012, IPL filed a request with the IUB to increase annual rates for its Iowa retail gas customers based on a 2011 historical test year as adjusted for certain known and measurable changes occurring up to 12 months after the commencement of the proceeding. IPL’s request included a proposal to utilize regulatory liabilities to credit bills of Iowa retail gas customers to help mitigate the impact of the proposed final rate increase on such customers. IPL proposed to reduce customer bills utilizing a gas tax benefit rider over a three-year period by approximately $36 million in aggregate. In conjunction with the filing, IPL implemented an interim retail gas rate increase of $9 million, or approximately 3%, on an annual basis, effective June 4, 2012, without regulatory review and subject to refund pending determination of final rates from the request. In 2012, Alliant Energy recorded $5 million in gas revenues from IPL’s Iowa retail gas customers related to the interim retail gas rate increase. In November 2012, the IUB approved a settlement agreement related to IPL’s request, resulting in a final increase in annual rates for IPL’s Iowa retail gas customers of $11 million, or approximately 4%, effective January 10, 2013. The parties to the settlement agreement and the IUB also agreed to IPL’s proposed gas tax benefit rider. Refer to “Regulatory Liabilities” above for additional details on IPL’s gas tax benefit rider.

IPL’s Iowa Retail Electric Rate Settlement Agreement - In September 2014, the IUB approved a settlement agreement related to rates charged to IPL’s Iowa retail electric customers. The settlement agreement extends IPL’s Iowa retail electric base rates authorized in its 2009 test year rate case through 2016 and provides targeted retail electric customer billing credits of $105 million in aggregate, beginning May 2014 as follows (in millions):

<table><tr><td></td><td>2014</td><td>2015</td><td>2016</td></tr><tr><td>Billing credits to reduce retail electric customers’ bills</td><td>$70</td><td>$25</td><td>$10</td></tr></table>

In 2014, IPL recorded $72 million of such retail electric customer billing credits. IPL will make adjustments to future billing credits to provide aggregate retail electric customer billing credits of $105 million in aggregate.

WPL’s Retail Fuel-related Rate Filing (2015 Test Year) - In December 2014, WPL received an order from the PSCW authorizing an annual retail electric rate increase of $39 million, or approximately 4%, effective January 1, 2015. The increase includes $39 million of anticipated increases in retail electric fuel-related costs in 2015 attributable to $25 million for higher retail electric fuel-related costs per MWh anticipated in 2015 and $14 million from the impact of increased sales volumes approved in the retail electric base rate case for 2015. WPL’s 2015 fuel-related costs will be subject to deferral if they fall outside an annual bandwidth of plus or minus 2% of the approved annual forecasted fuel-related costs. Deferral of under-collections are reduced to the extent WPL’s actual return on common equity exceeds the most recently authorized return on common equity.



WPL’s Retail Fuel-related Rate Filing (2014 Test Year) - In 2013, WPL received an order from the PSCW authorizing an annual retail electric rate increase of $19 million, or approximately 2%, effective January 1, 2014 to reflect anticipated increases in retail electric fuel-related costs in 2014 compared to the fuel-related cost estimates used to determine rates for 2013. WPL’s 2014 fuel-related costs were subject to deferral if they fell outside an annual bandwidth of plus or minus 2% of the approved annual forecasted fuel-related costs. Retail fuel-related costs incurred by WPL through December 31, 2014 were higher than fuel-related costs used to determine rates for such period resulting in an under-collection of fuel-related costs for 2014 of $33 million (including $28 million outside the approved range for 2014). As of December 31, 2014, Alliant Energy recorded $28 million in “Regulatory assets” on the balance sheet for the fuel-related costs incurred in 2014 that fell outside the PSCW approved bandwidth. The $28 million of deferred fuel-related costs is included in “Commodity cost recovery” in Alliant Energy’s and WPL’s regulatory assets tables above. Beginning in 2015, the regulatory asset will accrue interest at WPL’s PSCW authorized short-term debt rate. WPL currently expects to file a fuel reconciliation application with the PSCW in the first quarter of 2015 to seek recovery of these deferred fuel-related costs.

WPL’s Retail Fuel-related Rate Filing (2013 Test Year) - In 2012, WPL received an order from the PSCW authorizing an annual retail electric rate decrease of $29 million, or approximately 3%, effective January 1, 2013 to reflect anticipated decreases in retail electric fuel-related costs in 2013 compared to the fuel-related cost estimates used to determine rates for 2012. WPL’s 2013 fuel-related costs were subject to deferral if they fell outside an annual bandwidth of plus or minus 2% of the approved annual forecasted fuel-related costs. Retail fuel-related costs incurred by WPL for 2013 did not fall outside of the bandwidth.

WPL’s Retail Fuel-related Rate Filing (2012 Test Year) - In 2011, WPL received an order from the PSCW authorizing an annual retail electric rate increase of $4 million, effective January 1, 2012 to reflect anticipated increases in retail fuel-related costs in 2012 compared to the fuel-related cost estimates used to determine rates for 2011. The 2012 fuel-related costs were subject to deferral if they fell outside an annual bandwidth of plus or minus 2% of the approved annual forecasted fuel-related costs. Retail fuel-related costs incurred by WPL in 2012 were lower than retail fuel-related costs used to determine rates for such period resulting in an over-collection of fuel-related costs for 2012 of approximately $17 million (including $11 million outside the approved range for 2012). In 2013, WPL received an order from the PSCW to refund $12 million, including interest, to its retail electric customers for these over-collections, which WPL completed in 2013.

## (3) PROPERTY, PLANT AND EQUIPMENT

At December 31, details of property, plant and equipment on the balance sheets were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Utility:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electric plant:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>In service:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Generation (a)</td><td>$5,463.0</td><td>$4,792.0</td><td>$2,872.4</td><td>$2,513.2</td><td>$2,590.6</td><td>$2,278.8</td></tr><tr><td>Distribution</td><td>4,435.4</td><td>4,179.6</td><td>2,471.7</td><td>2,311.2</td><td>1,963.7</td><td>1,868.4</td></tr><tr><td>Other</td><td>309.1</td><td>286.3</td><td>215.5</td><td>210.5</td><td>93.6</td><td>75.8</td></tr><tr><td>Anticipated to be retired early (b)</td><td>157.6</td><td>157.8</td><td>—</td><td>—</td><td>157.6</td><td>157.8</td></tr><tr><td>Total electric plant</td><td>10,365.1</td><td>9,415.7</td><td>5,559.6</td><td>5,034.9</td><td>4,805.5</td><td>4,380.8</td></tr><tr><td>Gas plant in service</td><td>946.2</td><td>909.9</td><td>474.0</td><td>456.8</td><td>472.2</td><td>453.1</td></tr><tr><td>Other plant in service</td><td>539.3</td><td>547.9</td><td>298.8</td><td>302.8</td><td>240.5</td><td>245.1</td></tr><tr><td>Accumulated depreciation</td><td>(3,923.1)</td><td>(3,726.2)</td><td>(2,124.5)</td><td>(2,025.3)</td><td>(1,798.6)</td><td>(1,700.9)</td></tr><tr><td>Net plant</td><td>7,927.5</td><td>7,147.3</td><td>4,207.9</td><td>3,769.2</td><td>3,719.6</td><td>3,378.1</td></tr><tr><td>Leased Sheboygan Falls Energy Facility, net (c)</td><td>—</td><td>—</td><td>—</td><td>—</td><td>64.7</td><td>70.9</td></tr><tr><td>Construction work in progress</td><td>479.1</td><td>677.9</td><td>325.0</td><td>346.4</td><td>154.1</td><td>331.5</td></tr><tr><td>Other, net</td><td>22.3</td><td>22.3</td><td>21.8</td><td>21.2</td><td>0.5</td><td>1.1</td></tr><tr><td>Total utility</td><td>8,428.9</td><td>7,847.5</td><td>4,554.7</td><td>4,136.8</td><td>3,938.9</td><td>3,781.6</td></tr><tr><td>Non-regulated and other:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Non-regulated Generation, net (d)</td><td>240.1</td><td>249.4</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Corporate Services and other, net (e)</td><td>269.4</td><td>229.6</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total non-regulated and other</td><td>509.5</td><td>479.0</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total property, plant and equipment</td><td>$8,938.4</td><td>$8,326.5</td><td>$4,554.7</td><td>$4,136.8</td><td>$3,938.9</td><td>$3,781.6</td></tr></table>



(a) Includes various emission controls projects placed in service in 2014, which are discussed in “Emission Controls Projects” below.

(b) In 2013, WPL received approval from MISO to retire Edgewater Unit 3, and Nelson Dewey Units 1 and 2. WPL currently anticipates retiring these EGUs by December 31, 2015, contingent on completion of transmission network upgrades needed for system reliability. WPL is recovering the remaining net book value of these EGUs over a 10-year period beginning January 1, 2013 pursuant to a May 2012 PSCW order.

(c) Less accumulated amortization of $59.1 million and $52.9 million for WPL as of December 31, 2014 and 2013, respectively.

(d) Less accumulated depreciation of $49.5 million and $40.0 million for Alliant Energy as of December 31, 2014 and 2013, respectively.

(e) Less accumulated depreciation of $229.1 million and $214.2 million for Alliant Energy as of December 31, 2014 and 2013, respectively.

## Utility -

Emission Controls Projects - Various environmental controls projects to install scrubbers and baghouses at certain EGUs have been completed or are currently in progress. The scrubbers and baghouses reduce SO \( _{2} \)  and mercury emissions at the EGUs and are expected to help meet requirements under the MATS Rule and CSAPR.

IPL’s George Neal Unit 3 - Construction of a scrubber and baghouse at George Neal Unit 3 began in 2011 and was completed in 2014, which resulted in a transfer of the capitalized project costs from “Construction work in progress” to “Electric plant - Generation” in the above table for Alliant Energy and IPL in 2014. IPL owns a 28% interest in George Neal Unit 3. As of December 31, 2014, the capitalized project costs consisted of capital expenditures of $60 million and AFUDC of $4 million for IPL’s allocated portion of the George Neal Unit 3 scrubber and baghouse.

IPL’s Ottumwa Unit 1 - Construction of a scrubber and baghouse at Ottumwa Unit 1 began in 2012 and was completed in 2014, which resulted in a transfer of the capitalized projects costs from “Construction work in progress” to “Electric plant - Generation” in the above table for Alliant Energy and IPL in 2014. IPL owns a 48% interest in Ottumwa Unit 1. As of December 31, 2014, the capitalized project costs consisted of capitalized expenditures of $154 million and AFUDC of $21 million for IPL’s allocated portion of the Ottumwa Unit 1 scrubber and baghouse.

WPL’s Columbia Units 1 and 2 - Construction of scrubbers and baghouses at Columbia Units 1 and 2 began in 2012 and was completed in 2014, which resulted in a transfer of the capitalized project costs from “Construction work in progress” to “Electric plant - Generation” in the above table for Alliant Energy and WPL in 2014. WPL owns 46.2% interest in Columbia Units 1 and 2. As of December 31, 2014, the capitalized project costs consisted of capital expenditures of $272 million and AFUDC of $15 million for WPL’s allocated portion of the Columbia Units 1 and 2 scrubbers and baghouses.

WPL’s Edgewater Unit 5 - WPL is currently installing a scrubber and baghouse at Edgewater Unit 5. Construction began in 2014 and is expected to be completed in 2016. As of December 31, 2014, Alliant Energy and WPL recorded capitalized expenditures of $90 million and AFUDC of $3 million for the scrubber and baghouse in “Construction work in progress” in the above table for Alliant Energy and WPL.

## Natural Gas-Fired Generation Project -

IPL’s Marshalltown Generating Station - IPL is currently constructing Marshalltown, an approximate 650 MW natural gas-fired combined-cycle EGU. Construction began in 2014 and is expected to be completed in 2017. As of December 31, 2014, Alliant Energy and IPL recorded capitalized expenditures of $188 million and AFUDC of $4 million for Marshalltown in “Construction work in progress” in the above table for Alliant Energy and IPL.

Anticipated Sales of IPL’s Minnesota Electric and Natural Gas Distribution Assets - In September 2013, IPL signed a definitive agreement to sell its Minnesota electric distribution assets to Southern Minnesota Energy Cooperative, a combined group of various neighboring electric cooperatives. Also in September 2013, IPL signed a definitive agreement to sell its Minnesota natural gas distribution assets to Minnesota Energy Resources Corporation, a subsidiary of Integrys Energy Group, Inc. Proceeds from the sales of the electric and natural gas distribution assets, which approximate the carrying value of such assets, are expected to be approximately $130 million and $10 million, respectively, subject to customary closing adjustments. The proceeds are expected to reduce Alliant Energy’s and IPL’s future financing requirements. In December 2014, the MPUC issued an order approving the proposed sale of IPL’s Minnesota natural gas distribution assets. Pending receipt of remaining regulatory approvals and various other contingencies, the natural gas and electric transactions are currently expected to be concluded in 2015.



The sales price of the assets expected to be sold, which primarily consist of property, plant and equipment, and working capital items, is not expected to result in a material gain or loss. As of December 31, 2014, IPL's assets and liabilities included in the electric sale agreement did not meet the criteria to be classified as held for sale due to uncertainties in the regulatory approval process that existed on such date. Refer to Notes 1(p) and 19 for further discussion of the natural gas distribution assets, which qualified as held for sale as of December 31, 2014.

The electric distribution asset sales agreement includes a wholesale power supply agreement between IPL and Southern Minnesota Energy Cooperative, which is subject to FERC approval. The agreement contains a five-year termination notice, which may not be given until the fifth anniversary of the effective date of the agreement, resulting in a minimum term of 10 years. The agreement remains in effect indefinitely, unless notice to terminate is provided by either party. This wholesale power supply agreement includes standardized pricing mechanisms that are detailed in IPL's current tariffs accepted by FERC through wholesale rate case proceedings. IPL's current return on common equity authorized by FERC related to its wholesale electric rates is 10.97%. As a result of IPL's requirement to supply electricity to Southern Minnesota Energy Cooperative under the wholesale power supply agreement, the sale of the electric distribution assets is not expected to have a significant impact on IPL's current generation plans or operating results.

AFUDC - AFUDC represents costs to finance construction additions including a return on equity component and cost of debt component as required by regulatory accounting. The concurrent credit for the amount of AFUDC capitalized is recorded as “Allowance for funds used during construction” in the income statements. The amount of AFUDC generated by equity and debt components was as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2</td></tr><tr><td>Equity</td><td>$23.1</td><td>$20.3</td><td>$14.1</td><td>$17.1</td><td>$13.8</td><td>$5.2</td><td>$6.0</td><td>$6.5</td><td>$8.9</td></tr><tr><td>Debt</td><td>11.7</td><td>10.5</td><td>7.8</td><td>8.8</td><td>7.2</td><td>3.2</td><td>2.9</td><td>3.3</td><td>4.6</td></tr><tr><td></td><td>$34.8</td><td>$30.8</td><td>$21.9</td><td>$25.9</td><td>$21.0</td><td>$8.4</td><td>$8.9</td><td>$9.8</td><td>$13.5</td></tr></table>

AFUDC related to various construction projects was recognized in the income statements as follows (in millions):

<table><tr><td></td><td colspan="2">2014</td><td colspan="2">2013</td><td colspan="2">2012</td></tr><tr><td>IPL:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Emission controls - Ottumwa Unit 1</td><td>$10.6</td><td></td><td>$8.0</td><td></td><td>$2.0</td><td></td></tr><tr><td>Emission controls - George Neal Units 3 and 4</td><td>1.4</td><td></td><td>5.1</td><td></td><td>0.9</td><td></td></tr><tr><td>Marshalltown</td><td>3.7</td><td></td><td>—</td><td></td><td>—</td><td></td></tr><tr><td>Other</td><td>10.2</td><td></td><td>7.9</td><td></td><td>5.5</td><td></td></tr><tr><td></td><td>25.9</td><td></td><td>21.0</td><td></td><td>8.4</td><td></td></tr><tr><td>WPL:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Emission controls - Columbia Units 1 and 2</td><td>4.0</td><td></td><td>7.2</td><td></td><td>3.9</td><td></td></tr><tr><td>Emission controls - Edgewater Unit 5</td><td>2.7</td><td></td><td>—</td><td></td><td>7.2</td><td></td></tr><tr><td>Other</td><td>2.2</td><td></td><td>2.6</td><td></td><td>2.4</td><td></td></tr><tr><td></td><td>8.9</td><td></td><td>9.8</td><td></td><td>13.5</td><td></td></tr><tr><td>Alliant Energy</td><td>$34.8</td><td></td><td>$30.8</td><td></td><td>$21.9</td><td></td></tr></table>

In addition to the emission controls projects discussed above that were placed in service in 2014, a scrubber and baghouse was placed in service at IPL's George Neal Unit 4 in 2013 and an SCR was placed in service at WPL's Edgewater Unit 5 in 2012.

## Wind Generation Projects -

IPL’s Whispering Willow - East Wind Project - In 2011, IPL received an order from the MPUC approving a temporary recovery rate for the Minnesota retail portion of its Whispering Willow - East wind project construction costs. In its order, the MPUC did not reach a conclusion as to the prudence of these project costs. The prudence of these project costs and the final recovery rate was addressed in a separate proceeding in 2013. The initial recovery rate approved by the MPUC was below the amount required by IPL to recover the Minnesota retail portion of its total project costs. Based on its interpretation of the order, IPL believed that it was probable it would not be allowed to recover the entire Minnesota retail portion of its project costs. IPL estimated the most likely outcome of the final rate proceeding would result in the MPUC effectively disallowing recovery of approximately $8 million of project costs out of a total of approximately $30 million of project costs allocated to the Minnesota retail jurisdiction. As a result, Alliant Energy recognized an $8 million impairment related to this probable disallowance in 2011. In December 2013, IPL received an order from the MPUC approving full cost recovery of



the Minnesota retail portion of IPL’s Whispering Willow - East wind project construction costs effective January 1, 2013. As a result, Alliant Energy recognized a $7 million regulatory-related credit, which was recorded as an increase to property, plant and equipment on the balance sheet and a decrease to “Utility - Other operation and maintenance” in the income statement in 2013.

Non-regulated and Other - The non-regulated and other property, plant and equipment recorded on Alliant Energy’s balance sheets includes the following:

## Non-regulated Generation -

Franklin County Wind Project - The Franklin County wind project was placed into service in 2012 and is depreciated using the straight-line method over a 30-year period. As of December 31, 2014, Alliant Energy recorded $137 million on its balance sheet related to the wind project. Refer to Note 5(d) for discussion of a cash grant received in 2013 related to the wind project.

Sheboygan Falls - Sheboygan Falls was placed into service in 2005 and is depreciated using the straight-line method over a 35-year period. As of December 31, 2014, Alliant Energy recorded $103 million on its balance sheet related to Sheboygan Falls.

Corporate Services and Other - Property, plant and equipment related to Corporate Services includes computer software and the corporate headquarters building located in Madison, Wisconsin. Corporate Services is also implementing a new customer billing and information system for IPL and WPL, which is currently expected to be deployed in 2015. As of December 31, 2014, Alliant Energy recorded capitalized expenditures of $62 million and capitalized interest of $1 million for the customer billing and information system in “Corporate Services and other, net” in the above table for Alliant Energy. Property, plant and equipment related to Transportation includes a short-line railway in Iowa, a barge terminal on the Mississippi River and a coal terminal in Williams, Iowa. The Corporate Services and Other property, plant and equipment is depreciated using the straight-line method over periods ranging from 5 to 30 years.

## (4) JOINTLY-OWNED ELECTRIC UTILITY PLANT

Under joint ownership agreements with other utilities, IPL and WPL have undivided ownership interests in jointly-owned coal-fired EGUs. Each of the respective owners is responsible for the financing of its portion of the construction costs. KWh generation and operating expenses are primarily divided between the joint owners on the same basis as ownership. IPL's and WPL's shares of expenses from jointly-owned coal-fired EGUs are included in the corresponding operating expenses (e.g., electric production fuel, other operation and maintenance, etc.) in the income statements. Refer to Note 2 for further discussion of cost of removal obligations. Information relative to IPL's and WPL's ownership interest in these jointly-owned coal-fired EGUs at December 31, 2014 was as follows (dollars in millions):

<table><tr><td></td><td>In-service Dates</td><td>Ownership Interest %</td><td>Electric Plant</td><td>Accumulated Provision for Depreciation</td><td>Construction Work in Progress</td><td>Cost of Removal Obligations Included in Regulatory Liabilities</td></tr><tr><td>IPL</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Ottumwa Unit 1</td><td>1981</td><td>48.0%</td><td>$488.7</td><td>$131.6</td><td>$1.4</td><td>$11.0</td></tr><tr><td>George Neal Unit 4</td><td>1979</td><td>25.7%</td><td>183.3</td><td>71.3</td><td>0.3</td><td>12.3</td></tr><tr><td>George Neal Unit 3</td><td>1975</td><td>28.0%</td><td>135.2</td><td>41.3</td><td>1.4</td><td>6.0</td></tr><tr><td>Louisa Unit 1</td><td>1983</td><td>4.0%</td><td>35.4</td><td>20.4</td><td>0.1</td><td>3.3</td></tr><tr><td></td><td></td><td></td><td>842.6</td><td>264.6</td><td>3.2</td><td>32.6</td></tr><tr><td>WPL</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Columbia Units 1-2</td><td>1975-1978</td><td>46.2%</td><td>549.0</td><td>166.8</td><td>18.9</td><td>10.2</td></tr><tr><td>Edgewater Unit 4</td><td>1969</td><td>68.2%</td><td>96.5</td><td>55.4</td><td>0.3</td><td>2.5</td></tr><tr><td></td><td></td><td></td><td>645.5</td><td>222.2</td><td>19.2</td><td>12.7</td></tr><tr><td>Alliant Energy</td><td></td><td></td><td>$1,488.1</td><td>$486.8</td><td>$22.4</td><td>$45.3</td></tr></table>



## (5) RECEIVABLES

(a) Accounts Receivable - Details for accounts receivable included on the balance sheets as of December 31 were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Customer, less allowance for doubtful accounts</td><td>$84.5</td><td>$81.8</td><td>$—</td><td>$—</td><td>$77.3</td><td>$73.0</td></tr><tr><td>Unbilled utility revenues</td><td>85.4</td><td>92.3</td><td>—</td><td>—</td><td>85.4</td><td>92.3</td></tr><tr><td>Deferred proceeds</td><td>177.2</td><td>203.5</td><td>177.2</td><td>203.5</td><td>—</td><td>—</td></tr><tr><td>Other, less allowance for doubtful accounts</td><td>80.2</td><td>95.7</td><td>39.5</td><td>43.4</td><td>23.1</td><td>33.1</td></tr><tr><td></td><td>$427.3</td><td>$473.3</td><td>$216.7</td><td>$246.9</td><td>$185.8</td><td>$198.4</td></tr></table>

Allowance for doubtful accounts at December 31 was as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Customer</td><td>$3.7</td><td>$1.4</td><td>$—</td><td>$—</td><td>$3.7</td><td>$1.4</td></tr><tr><td>Other</td><td>1.4</td><td>3.4</td><td>0.4</td><td>0.7</td><td>0.5</td><td>0.3</td></tr><tr><td></td><td>$5.1</td><td>$4.8</td><td>$0.4</td><td>$0.7</td><td>$4.2</td><td>$1.7</td></tr></table>

(b) Sales of Accounts Receivable - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. IPL pays a monthly fee to the third party that varies based on interest rates, seasonal limits on cash proceeds and the amount of cash proceeds received from the third party. In March 2014, IPL extended through March 2016 the purchase commitment from the third party to which it sells its receivables. The transfers of receivables meet the criteria for sale accounting established by the transfer of financial assets accounting rules. In exchange for the receivables sold, IPL receives cash proceeds of up to $180 million from the third party. Cash proceeds are used by IPL to meet short-term financing needs, and cannot exceed the current seasonal limit or amount of receivables available for sale, whichever is less. The seasonal limit on cash proceeds as of December 31, 2014 was $150 million.

As of December 31, 2014, IPL sold $204.6 million of receivables to the third party, received $22.0 million in cash proceeds and recorded deferred proceeds of $177.2 million. Deferred proceeds represent IPL's interest in the receivables sold to the third party. At IPL's request, deferred proceeds are paid to IPL from collections of receivables, after paying any required expenses incurred by the third party and the collection agent. Corporate Services acts as collection agent for the third party and receives a fee for collection services. IPL believes that the allowance for doubtful accounts related to its sales of receivables is a reasonable approximation of credit risk of the customers that generated the receivables. Refer to Note 14 for discussion of the fair value of deferred proceeds.

IPL’s maximum and average outstanding cash proceeds related to the sales of accounts receivable program were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Maximum outstanding aggregate cash proceeds (based on daily outstanding balances)</td><td>$150.0</td><td>$170.0</td><td>$160.0</td></tr><tr><td>Average outstanding aggregate cash proceeds (based on daily outstanding balances)</td><td>46.4</td><td>105.9</td><td>119.8</td></tr></table>

In 2014, 2013 and 2012, IPL’s costs incurred related to the sales of accounts receivable program were not material.



As of December 31, the attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td></tr><tr><td>Customer accounts receivable</td><td>$134.8</td><td>$151.6</td></tr><tr><td>Unbilled utility revenues</td><td>69.7</td><td>86.2</td></tr><tr><td>Other receivables</td><td>0.1</td><td>0.2</td></tr><tr><td>Receivables sold to third party</td><td>204.6</td><td>238.0</td></tr><tr><td>Less: cash proceeds (a)</td><td>22.0</td><td>29.0</td></tr><tr><td>Deferred proceeds</td><td>182.6</td><td>209.0</td></tr><tr><td>Less: allowance for doubtful accounts</td><td>5.4</td><td>5.5</td></tr><tr><td>Fair value of deferred proceeds</td><td>$177.2</td><td>$203.5</td></tr><tr><td>Outstanding receivables past due</td><td>$19.9</td><td>$21.5</td></tr></table>

(a) Changes in cash proceeds are presented in “Sales of accounts receivable” in operating activities in Alliant Energy’s cash flows statements.

Refer to Note 9(b) for discussion of IPL’s issuance of $250 million of senior debentures in 2014. A portion of the proceeds from the issuance was used by IPL in 2014 to reduce cash proceeds received from the third party under its sales of accounts receivable program.

Additional attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Collections reinvested in receivables</td><td>$1,997.9</td><td>$1,880.8</td><td>$1,771.6</td></tr><tr><td>Credit losses, net of recoveries</td><td>11.4</td><td>11.9</td><td>10.0</td></tr></table>

(c) Whiting Petroleum Tax Sharing Agreement - Prior to an initial public offering of Whiting Petroleum in 2003, Alliant Energy and Whiting Petroleum entered into a tax separation and indemnification agreement pursuant to which Alliant Energy and Whiting Petroleum made certain tax elections. These tax elections had the effect of increasing the tax basis of the assets of Whiting Petroleum’s consolidated tax group based on the sales price of Whiting Petroleum’s shares in the initial public offering. The increase in the tax basis of the assets was included in income in Alliant Energy’s U.S. federal income tax return for the calendar year 2003. Pursuant to the tax separation and indemnification agreement, Whiting Petroleum paid Resources the final payment of $26 million in 2014, which represented the present value of certain future tax benefits expected to be realized by Whiting Petroleum through future tax deductions. The final payment resulted in a decrease in “Current assets - Other” on Alliant Energy’s balance sheet in 2014. The $26 million received by Alliant Energy is presented in operating activities in its cash flows statement in 2014.

(d) Franklin County Wind Project Cash Grant - The ARRA provides incentives for wind projects placed into service between January 1, 2009 and December 31, 2012. In accordance with the ARRA, Alliant Energy filed an application with the U.S. Department of the Treasury in February 2013 requesting a cash grant for a portion of the qualifying project expenditures of the Franklin County wind project that was placed into service in December 2012. Alliant Energy elected to record the anticipated cash grant as a reduction of the carrying value of the Franklin County wind project. In 2013, Alliant Energy received $62.4 million of proceeds from the cash grant, which are presented in investing activities in Alliant Energy’s cash flows statement in 2013. The grant proceeds were used by Alliant Energy to reduce short-term borrowings incurred during the construction of the wind project.

## (6) INVESTMENTS

(a) Unconsolidated Equity Investments - Unconsolidated investments accounted for under the equity method of accounting are as follows (in millions):

<table><tr><td rowspan="2"></td><td rowspan="2">Ownership Interest at December 31, 2014</td><td colspan="3">Carrying Value at December 31,</td><td colspan="3">Equity (Income) / Loss</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2012</td><td></td></tr><tr><td>ATC (a)</td><td>16%</td><td>$286.5</td><td>$272.1</td><td>($41.9)</td><td>($42.7)</td><td>($41.3)</td><td></td></tr><tr><td>Wisconsin River Power Company</td><td>50%</td><td>7.8</td><td>7.0</td><td>(0.9)</td><td>(1.0)</td><td>(0.8)</td><td></td></tr><tr><td>Other</td><td>Various</td><td>2.3</td><td>2.3</td><td>2.4</td><td>—</td><td>0.8</td><td></td></tr><tr><td></td><td></td><td>$296.6</td><td>$281.4</td><td>($40.4)</td><td>($43.7)</td><td>($41.3)</td><td></td></tr></table>



(a) Alliant Energy has the ability to exercise significant influence over ATC’s financial and operating policies through its participation on ATC’s Board of Directors. Refer to Note 18 for information regarding related party transactions with ATC.

Summary aggregate financial information from the financial statements of these investments is as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td></tr><tr><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Operating revenues</td><td>$643</td><td>$634</td><td>$611</td></tr><tr><td>Operating income</td><td>330</td><td>334</td><td>326</td></tr><tr><td>Net income</td><td>240</td><td>248</td><td>234</td></tr><tr><td>As of December 31:</td><td></td><td></td><td></td></tr><tr><td>Current assets</td><td>72</td><td>86</td><td></td></tr><tr><td>Non-current assets</td><td>3,773</td><td>3,553</td><td></td></tr><tr><td>Current liabilities</td><td>315</td><td>383</td><td></td></tr><tr><td>Non-current liabilities</td><td>1,871</td><td>1,682</td><td></td></tr></table>

Prior to 2014, WPL owned 100% of WPL Transco, which holds Alliant Energy’s investment in ATC. In January 2014, WPL Transco’s operating agreement was amended to allow ATI, a wholly-owned subsidiary of Resources, to become a member of WPL Transco in addition to WPL. In 2014, ATI began funding capital contributions that WPL Transco makes to ATC. As of December 31, 2014, WPL’s and ATI’s ownership interests in WPL Transco were approximately 95% and 5%, respectively.

In 2014, WPL Transco’s equity income from ATC and ATC dividends received by WPL Transco were allocated between WPL and ATI based on their respective ownership interests at the time the equity income was generated and at the time of the dividend payments. ATI’s ownership interest in WPL Transco is expected to increase as a result of future capital contributions to WPL Transco. Alliant Energy’s aggregate ownership percentage in ATC is not expected to change as a result of WPL Transco’s amended operating agreement.

(b) Cash Surrender Value of Life Insurance Policies - Various life insurance policies cover certain current and former employees and directors. At December 31, the cash surrender value of these investments was as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Cash surrender value</td><td>$47.0</td><td>$46.5</td><td>$18.1</td><td>$17.3</td><td>$11.4</td><td>$12.3</td></tr></table>

## (7) COMMON EQUITY

Common Share Activity - A summary of Alliant Energy’s common stock activity was as follows:

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Shares outstanding, January 1</td><td>110,943,669</td><td>110,987,400</td><td>111,018,821</td></tr><tr><td>Equity-based compensation plans (Note 12(b))</td><td>35,547</td><td>(23,374)</td><td>20,195</td></tr><tr><td>Other</td><td>(43,536)</td><td>(20,357)</td><td>(51,616)</td></tr><tr><td>Shares outstanding, December 31</td><td>110,935,680</td><td>110,943,669</td><td>110,987,400</td></tr></table>

At December 31, 2014, Alliant Energy had a total of 7.8 million shares available for issuance in the aggregate, pursuant to its OIP, Shareowner Direct Plan and 401(k) Savings Plan.

Shareowner Rights Agreement - Alliant Energy has established an amended and restated Shareowner Rights Agreement. The rights under this agreement will only become exercisable if a person or group has acquired, or announced an intention to acquire, 15% or more of Alliant Energy’s outstanding common stock. Each right will initially entitle registered shareowners to purchase from Alliant Energy one-half of one share of Alliant Energy’s common stock. The rights will be exercisable at an initial price of $110.00 per full share, subject to adjustment. If any shareowner acquires 15% or more of the outstanding common stock of Alliant Energy, each right (subject to limitations) will entitle its holder to purchase, at the right’s then current exercise price, a number of common shares of Alliant Energy or of the acquirer having a market value at the time of twice the right’s per full share exercise price. Alliant Energy’s Board of Directors is authorized to reduce the 15% ownership threshold to not less than 10%. The amended and restated Shareowner Rights Agreement expires in December 2018.



Dividend Restrictions - Alliant Energy does not have any significant common stock dividend restrictions. IPL and WPL each have common stock dividend restrictions based on applicable regulatory limitations. IPL also has common stock dividend restrictions based on the terms of its outstanding preferred stock. As of December 31, 2014, IPL and WPL were in compliance with all such dividend restrictions.

IPL is restricted from paying common stock dividends to its parent company, Alliant Energy, if for any past or current dividend period, dividends on its preferred stock have not been paid, or declared and set apart for payment. IPL has paid all dividends on its preferred stock through 2014.

Under the Federal Power Act, IPL may not pay dividends to its parent company in excess of the current amount of its retained earnings. Another limitation on IPL’s distributions to its parent company requires IPL to obtain IUB approval for a reasonable utility capital structure if its actual 13-month average common equity ratio (calculated on a financial basis consistent with IPL’s rate cases) falls below 42% of total capitalization. As of December 31, 2014, IPL’s amount of retained earnings that were free of dividend restrictions was $538 million.

Currently, WPL has a regulatory limitation on distributions to its parent company from an order issued by the PSCW in July 2014. The order prohibits WPL from paying annual common stock dividends to its parent company in excess of $127 million in 2015 and $135 million in 2016 if WPL's actual 13-month average common equity ratio (calculated on a financial basis consistent with WPL's rate cases) would fall below 51.79% for 2015 and 52.25% for 2016. As of December 31, 2014, WPL's amount of retained earnings that were free of dividend restrictions was $127 million for 2015.

Restricted Net Assets of Subsidiaries - IPL and WPL do not have regulatory authority to lend or advance any amounts to their parent company. As of December 31, the amount of net assets of IPL and WPL that were not available to be transferred to their parent company, Alliant Energy, in the form of loans, advances or cash dividends without the consent of IPL's and WPL's regulatory authorities was as follows (in billions):

<table><tr><td></td><td>2014</td><td>2013</td></tr><tr><td>IPL</td><td>$1.3</td><td>$1.2</td></tr><tr><td>WPL</td><td>1.6</td><td>1.5</td></tr></table>

Comprehensive Income - In 2014, 2013 and 2012, Alliant Energy’s other comprehensive income (loss) was ($0.4) million, $0.6 million and $0, respectively; therefore, its comprehensive income was substantially equal to its net income and its comprehensive income attributable to Alliant Energy common shareowners was substantially equal to its net income attributable to Alliant Energy common shareowners for such periods.

## (8) REDEEMABLE PREFERRED STOCK

Information related to the carrying value of IPL’s cumulative preferred stock at December 31 was as follows:

<table><tr><td>Liquidation Preference/Stated Value</td><td>Shares Authorized</td><td>Shares Outstanding</td><td>Series</td><td>2014</td><td>2013</td></tr><tr><td></td><td></td><td></td><td></td><td colspan="2">(in millions)</td></tr><tr><td>$25</td><td>16,000,000</td><td>8,000,000</td><td>5.1%</td><td>$200.0</td><td>$200.0</td></tr></table>

IPL - In 2013, IPL issued 8,000,000 shares of 5.1% cumulative preferred stock and received proceeds of $200 million. The proceeds were used by IPL to redeem its 8.375% cumulative preferred stock, reduce commercial paper classified as long-term debt by $40 million and for other general corporate purposes. Alliant Energy incurred $5 million of issuance costs related to this transaction, which were recorded as a reduction of additional paid-in capital on Alliant Energy’s balance sheet in 2013. On or after March 15, 2018, IPL may, at its option, redeem the 5.1% cumulative preferred stock for cash at a redemption price of $25 per share plus accrued and unpaid dividends up to the redemption date.

The current articles of incorporation of IPL contain a provision that grants the holders of its cumulative preferred stock voting rights to elect two members of IPL’s Board of Directors if preferred dividends equal to six or more quarterly dividend requirements (whether or not consecutive) are in arrears. Such voting rights would not provide the holders of IPL’s preferred stock control of the decision on redemption of IPL’s preferred stock and could not force IPL to exercise its call option. Therefore, IPL’s cumulative preferred stock is presented in total equity on Alliant Energy’s balance sheets in a manner consistent with noncontrolling interests.

In 2013, IPL redeemed all 6,000,000 outstanding shares of its 8.375% cumulative preferred stock for $150 million plus accrued and unpaid dividends to the redemption date. Alliant Energy recorded a $5 million charge in 2013 related to this transaction in “Preferred dividend requirements” in the income statement.



Refer to Note 14 for information on the fair value of cumulative preferred stock.

WPL - In 2013, WPL redeemed all 1,049,225 outstanding shares of its 4.40% through 6.50% cumulative preferred stock for $61 million plus accrued and unpaid dividends to the redemption date. Alliant Energy recorded a $1 million charge in 2013 related to this transaction in “Preferred dividend requirements” in the income statement.

## (9) DEBT

(a) Short-term Debt - Alliant Energy and its subsidiaries maintain committed bank lines of credit to provide short-term borrowing flexibility and back-stop liquidity for commercial paper outstanding. At December 31, 2014, Alliant Energy's short-term borrowing arrangements included three revolving credit facilities totaling $1 billion ($300 million for Alliant Energy at the parent company level, $300 million for IPL and $400 million for WPL), which expire in December 2018. Information regarding commercial paper classified as short-term debt and back-stopped by the credit facilities was as follows (dollars in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>December 31</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial paper:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Amount outstanding</td><td>$141.3</td><td>$279.4</td><td>$—</td><td>$—</td><td>$—</td><td>$183.7</td></tr><tr><td>Weighted average interest rates</td><td>0.4%</td><td>0.2%</td><td>N/A</td><td>N/A</td><td>N/A</td><td>0.1%</td></tr><tr><td>Weighted average remaining maturity</td><td>4 days</td><td>4 days</td><td>N/A</td><td>N/A</td><td>N/A</td><td>6 days</td></tr><tr><td>Available credit facility capacity</td><td>$858.7</td><td>$720.6</td><td>$300.0</td><td>$300.0</td><td>$400.0</td><td>$216.3</td></tr><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>For the year ended</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Maximum amount outstanding (based on daily outstanding balances)</td><td>$353.8</td><td>$293.9</td><td>$38.0</td><td>$26.3</td><td>$204.7</td><td>$190.0</td></tr><tr><td>Average amount outstanding (based on daily outstanding balances)</td><td>$255.9</td><td>$210.5</td><td>$0.2</td><td>$1.3</td><td>$122.9</td><td>$123.5</td></tr><tr><td>Weighted average interest rates</td><td>0.2%</td><td>0.2%</td><td>0.2%</td><td>0.4%</td><td>0.1%</td><td>0.2%</td></tr></table>

The credit facility agreements and Alliant Energy’s term loan credit agreement each contain a financial covenant, which requires Alliant Energy, IPL and WPL to maintain certain debt-to-capital ratios in order to borrow under the credit facilities and term loan credit agreement. The required debt-to-capital ratios compared to the actual debt-to-capital ratios at December 31, 2014 were as follows:

<table><tr><td></td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Requirement, not to exceed</td><td>65%</td><td>58%</td><td>58%</td></tr><tr><td>Actual</td><td>52%</td><td>47%</td><td>49%</td></tr></table>

The debt component of the capital ratios includes long- and short-term debt (excluding non-recourse debt and hybrid securities to the extent the total carrying value of such hybrid securities does not exceed 15% of consolidated capital of the applicable borrower), capital lease obligations, certain letters of credit, guarantees of the foregoing and new synthetic leases. Unfunded vested benefits under qualified pension plans and sales of accounts receivable are not included in the debt-to-capital ratios. The equity component of the capital ratios excludes accumulated other comprehensive income (loss).



(b) Long-Term Debt - Long-term debt, net as of December 31 was as follows (dollars in millions):

<table><tr><td rowspan="2"></td><td colspan="3">2014</td><td colspan="3">2013</td></tr><tr><td>Alliant Energy</td><td>IPL</td><td>WPL</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Senior Debentures:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>3.3%, due 2015</td><td>$150.0</td><td>$150.0</td><td>$—</td><td>$150.0</td><td>$150.0</td><td>$—</td></tr><tr><td>5.875%, due 2018</td><td>100.0</td><td>100.0</td><td>—</td><td>100.0</td><td>100.0</td><td>—</td></tr><tr><td>7.25%, due 2018</td><td>250.0</td><td>250.0</td><td>—</td><td>250.0</td><td>250.0</td><td>—</td></tr><tr><td>3.65%, due 2020</td><td>200.0</td><td>200.0</td><td>—</td><td>200.0</td><td>200.0</td><td>—</td></tr><tr><td>3.25%, due 2024 (a)</td><td>250.0</td><td>250.0</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>5.5%, due 2025</td><td>50.0</td><td>50.0</td><td>—</td><td>50.0</td><td>50.0</td><td>—</td></tr><tr><td>6.45%, due 2033</td><td>100.0</td><td>100.0</td><td>—</td><td>100.0</td><td>100.0</td><td>—</td></tr><tr><td>6.3%, due 2034</td><td>125.0</td><td>125.0</td><td>—</td><td>125.0</td><td>125.0</td><td>—</td></tr><tr><td>6.25%, due 2039</td><td>300.0</td><td>300.0</td><td>—</td><td>300.0</td><td>300.0</td><td>—</td></tr><tr><td>4.7%, due 2043</td><td>250.0</td><td>250.0</td><td>—</td><td>250.0</td><td>250.0</td><td>—</td></tr><tr><td></td><td>1,775.0</td><td>1,775.0</td><td>—</td><td>1,525.0</td><td>1,525.0</td><td>—</td></tr><tr><td>Debentures:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>5%, due 2019</td><td>250.0</td><td>—</td><td>250.0</td><td>250.0</td><td>—</td><td>250.0</td></tr><tr><td>4.6%, due 2020</td><td>150.0</td><td>—</td><td>150.0</td><td>150.0</td><td>—</td><td>150.0</td></tr><tr><td>2.25%, due 2022</td><td>250.0</td><td>—</td><td>250.0</td><td>250.0</td><td>—</td><td>250.0</td></tr><tr><td>6.25%, due 2034</td><td>100.0</td><td>—</td><td>100.0</td><td>100.0</td><td>—</td><td>100.0</td></tr><tr><td>6.375%, due 2037</td><td>300.0</td><td>—</td><td>300.0</td><td>300.0</td><td>—</td><td>300.0</td></tr><tr><td>7.6%, due 2038</td><td>250.0</td><td>—</td><td>250.0</td><td>250.0</td><td>—</td><td>250.0</td></tr><tr><td>4.1%, due 2044 (b)</td><td>250.0</td><td>—</td><td>250.0</td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>1,550.0</td><td>—</td><td>1,550.0</td><td>1,300.0</td><td>—</td><td>1,300.0</td></tr><tr><td>Pollution Control Revenue Bonds:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>5%, due 2015 (c)</td><td>16.0</td><td>—</td><td>16.0</td><td>24.5</td><td>—</td><td>24.5</td></tr><tr><td>5.375%, due 2015</td><td>14.6</td><td>—</td><td>14.6</td><td>14.6</td><td>—</td><td>14.6</td></tr><tr><td>5% (d)</td><td>—</td><td>—</td><td>—</td><td>38.4</td><td>38.4</td><td>—</td></tr><tr><td></td><td>30.6</td><td>—</td><td>30.6</td><td>77.5</td><td>38.4</td><td>39.1</td></tr><tr><td>Other:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Term loan credit agreement through 2016, 1% at December 31, 2014 (e)</td><td>250.0</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Term loan credit agreement through 2016, 1% at December 31, 2014 (f)</td><td>60.0</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>3.45% senior notes, due 2022</td><td>75.0</td><td>—</td><td>—</td><td>75.0</td><td>—</td><td>—</td></tr><tr><td>5.06% senior secured notes, due 2015 to 2024</td><td>58.9</td><td>—</td><td>—</td><td>60.5</td><td>—</td><td>—</td></tr><tr><td>4% senior notes (e)</td><td>—</td><td>—</td><td>—</td><td>250.0</td><td>—</td><td>—</td></tr><tr><td>Term loan credit agreement, 1% at December 31, 2013 (f)</td><td>—</td><td>—</td><td>—</td><td>60.0</td><td>—</td><td>—</td></tr><tr><td>Other, 1% at December 31, 2014, due 2015 to 2025</td><td>3.3</td><td>—</td><td>—</td><td>0.4</td><td>—</td><td>—</td></tr><tr><td></td><td>447.2</td><td>—</td><td>—</td><td>445.9</td><td>—</td><td>—</td></tr><tr><td>Subtotal</td><td>3,802.8</td><td>1,775.0</td><td>1,580.6</td><td>3,348.4</td><td>1,563.4</td><td>1,339.1</td></tr><tr><td>Current maturities</td><td>(183.0)</td><td>(150.0)</td><td>(30.6)</td><td>(358.5)</td><td>(38.4)</td><td>(8.5)</td></tr><tr><td>Unamortized debt (discount) and premium, net</td><td>(13.1)</td><td>(6.3)</td><td>(6.7)</td><td>(12.1)</td><td>(5.0)</td><td>(7.0)</td></tr><tr><td>Long-term debt, net</td><td>$3,606.7</td><td>$1,618.7</td><td>$1,543.3</td><td>$2,977.8</td><td>$1,520.0</td><td>$1,323.6</td></tr></table>

(a) In 2014, IPL issued $250.0 million of 3.25% senior debentures due 2024. The proceeds from the issuance were used by IPL to reduce cash proceeds received from its sales of accounts receivable program, reduce commercial paper classified as long-term debt by $60 million and for general corporate purposes.

(b) In 2014, WPL issued $250.0 million of 4.1% debentures due 2044. The proceeds from the issuance were used by WPL to reduce commercial paper and for general corporate purposes.

(c) In 2014, WPL retired $8.5 million of its 5% pollution control revenue bonds.

(d) In 2014, IPL retired its $38.4 million, 5% pollution control revenue bonds.

(e) In 2014, Alliant Energy entered into a $250.0 million variable-rate term loan credit agreement and used the proceeds from borrowings under this agreement to retire its $250.0 million, 4% senior notes due 2014.

(f) In 2014, Franklin County Holdings LLC, Resources’ wholly-owned subsidiary, entered into a $60.0 million variable-rate term loan credit agreement and used the proceeds to retire its borrowings under a term loan credit agreement that matured in December 2014.



Five-Year Schedule of Debt Maturities - At December 31, 2014, debt maturities for 2015 through 2019 were as follows (in millions):

<table><tr><td></td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td></tr><tr><td>IPL</td><td>$150</td><td>$—</td><td>$—</td><td>$350</td><td>$—</td></tr><tr><td>WPL</td><td>31</td><td>—</td><td>—</td><td>—</td><td>250</td></tr><tr><td>Resources</td><td>2</td><td>63</td><td>5</td><td>6</td><td>6</td></tr><tr><td>Alliant Energy parent company</td><td>—</td><td>250</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Alliant Energy</td><td>$183</td><td>$313</td><td>$5</td><td>$356</td><td>$256</td></tr></table>

At December 31, 2014, there were no significant sinking fund requirements related to the long-term debt on the balance sheet.

Indentures - IPL maintains an indenture related to all of its outstanding senior debentures. WPL maintains an indenture related to all of its outstanding debentures. Sheboygan Power, LLC, Resources' wholly-owned subsidiary, maintains an indenture related to the issuance of its 5.06% senior secured notes due 2015 to 2024.

Optional Redemption Provisions - Alliant Energy and its subsidiaries have certain issuances of long-term debt that contain optional redemption provisions which, if elected by the issuer at its sole discretion, could require material redemption premium payments by the issuer. The redemption premium payments under these optional redemption provisions are variable and dependent on applicable U.S. Treasury rates at the time of redemption. At December 31, 2014, the debt issuances that contained these optional redemption provisions included all of IPL's outstanding senior debentures, all of WPL's outstanding debentures, Corporate Services' senior notes due 2022 and Sheboygan Power, LLC's senior secured notes due 2015 to 2024.

Security Provisions - Sheboygan Power, LLC’s 5.06% senior secured notes due 2015 to 2024 are secured by Sheboygan Falls and related assets.

Financial Covenant - Alliant Energy’s term loan credit agreement contains a financial covenant, which requires it to maintain a certain debt-to-capital ratio in order to borrow under the agreement. Refer to Note 9(a) for further discussion.

Unamortized Debt Issuance Costs - Unamortized debt issuance costs recorded in “Deferred charges and other” on the balance sheets at December 31 were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Unamortized debt issuance costs</td><td>$22.4</td><td>$19.9</td><td>$10.7</td><td>$9.7</td><td>$10.8</td><td>$9.0</td></tr></table>

Carrying Amount and Fair Value of Long-term Debt - Refer to Note 14 for information on the carrying amount and fair value of long-term debt outstanding.

## (10) OPERATING LEASES

Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. Historically, Alliant Energy’s and WPL’s most significant operating lease related to the Riverside PPA, which contained fixed rental payments related to capacity and contingent rental payments related to the energy portion (actual MWhs) of the PPA. Costs associated with the Riverside PPA were included in “Electric production fuel and energy purchases” and “Purchased electric capacity” in Alliant Energy’s income statements based on monthly payments for the Riverside PPA. In December 2012, WPL purchased Riverside, thereby terminating the Riverside PPA. Rental expenses associated with operating leases were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2022</td></tr><tr><td>Operating lease rental expenses (excluding contingent rentals)</td><td>$12</td><td>$9</td><td>$69</td><td>$4</td><td>$4</td><td>$4</td><td>$7</td><td>$5</td><td>$64</td></tr><tr><td>Contingent rentals (primarily related to the Riverside PPA)</td><td>—</td><td>—</td><td>6</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>5</td></tr><tr><td></td><td>$12</td><td>$9</td><td>$75</td><td>$4</td><td>$4</td><td>$4</td><td>$7</td><td>$5</td><td>$69</td></tr></table>



At December 31, 2014, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):

<table><tr><td></td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>Thereafter</td><td>Total</td></tr><tr><td>Alliant Energy</td><td>$8</td><td>$7</td><td>$3</td><td>$2</td><td>$1</td><td>$21</td><td>$42</td></tr><tr><td>IPL</td><td>3</td><td>2</td><td>2</td><td>1</td><td>1</td><td>15</td><td>24</td></tr><tr><td>WPL</td><td>4</td><td>5</td><td>1</td><td>—</td><td>—</td><td>—</td><td>10</td></tr></table>

## (11) INCOME TAXES

Income Tax Expense (Benefit) - The components of “Income tax expense (benefit)” in the income statements were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2 012</td></tr><tr><td>Current tax expense (benefit):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Federal</td><td>$36.6</td><td>$4.4</td><td>($29.3)</td><td>$11.3</td><td>$11.7</td><td>($7.7)</td><td>$0.6</td><td>($5.7)</td><td>$7.2</td></tr><tr><td>State</td><td>9.3</td><td>(3.6)</td><td>11.6</td><td>3.4</td><td>(0.1)</td><td>9.1</td><td>4.4</td><td>6.0</td><td>(0.9)</td></tr><tr><td>IPL&#x27;s tax benefit riders</td><td>(56.7)</td><td>(52.9)</td><td>(48.3)</td><td>(56.7)</td><td>(52.9)</td><td>(48.8)</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Deferred tax expense (benefit):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Federal</td><td>83.5</td><td>123.9</td><td>157.8</td><td>11.1</td><td>20.0</td><td>37.4</td><td>88.9</td><td>92.7</td><td>81.1</td></tr><tr><td>State</td><td>4.6</td><td>15.6</td><td>23.9</td><td>(6.2)</td><td>(0.8)</td><td>3.2</td><td>10.1</td><td>11.8</td><td>20.3</td></tr><tr><td>Production tax credits</td><td>(31.3)</td><td>(31.0)</td><td>(24.8)</td><td>(14.0)</td><td>(14.4)</td><td>(12.5)</td><td>(17.3)</td><td>(16.6)</td><td>(12.3)</td></tr><tr><td>Investment tax credits</td><td>(1.6)</td><td>(1.6)</td><td>(1.7)</td><td>(0.6)</td><td>(0.6)</td><td>(0.6)</td><td>(1.0)</td><td>(1.0)</td><td>(1.1)</td></tr><tr><td>Provision recorded as a change in uncertain tax positions:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Current</td><td>—</td><td>—</td><td>8.0</td><td>—</td><td>—</td><td>8.1</td><td>—</td><td>—</td><td>(0.1)</td></tr><tr><td>Deferred</td><td>—</td><td>(0.4)</td><td>(7.6)</td><td>—</td><td>—</td><td>(8.2)</td><td>—</td><td>(0.4)</td><td>0.6</td></tr><tr><td>Provision recorded as a change in accrued interest</td><td>(0.1)</td><td>(0.5)</td><td>(0.2)</td><td>—</td><td>(0.8)</td><td>(0.3)</td><td>(0.1)</td><td>0.4</td><td>(0.2)</td></tr><tr><td></td><td>$44.3</td><td>$53.9</td><td>$89.4</td><td>($51.7)</td><td>($37.9)</td><td>($19.8)</td><td>$85.6</td><td>$87.2</td><td>$94.6</td></tr></table>

Income Tax Rates - The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2 012</td></tr><tr><td>Statutory federal income tax rate</td><td>35.0%</td><td>35.0%</td><td>35.0%</td><td>35.0%</td><td>30.0%</td><td>35.0%</td><td>35.0%</td><td>35.5%</td><td>35.0%</td></tr><tr><td>State income taxes, net of federal benefits</td><td>5.4</td><td>5.7</td><td>5.7</td><td>5.0</td><td>5.4</td><td>5.8</td><td>5.5</td><td>6.0</td><td>5.5</td></tr><tr><td>IPL&#x27;s tax benefit riders</td><td>(12.9)</td><td>(12.1)</td><td>(11.2)</td><td>(39.6)</td><td>(34.8)</td><td>(37.0)</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Effect of rate-making on property-related differences</td><td>(7.5)</td><td>(6.0)</td><td>(5.0)</td><td>(21.9)</td><td>(15.9)</td><td>(14.2)</td><td>(0.7)</td><td>(0.8)</td><td>(1.1)</td></tr><tr><td>Production tax credits</td><td>(7.1)</td><td>(7.1)</td><td>(5.8)</td><td>(9.8)</td><td>(9.5)</td><td>(9.6)</td><td>(6.5)</td><td>(6.3)</td><td>(4.7)</td></tr><tr><td>Adjustment of prior period taxes</td><td>(1.3)</td><td>(1.3)</td><td>—</td><td>(3.5)</td><td>(3.6)</td><td>0.2</td><td>(0.1)</td><td>(0.1)</td><td>(0.3)</td></tr><tr><td>State apportionment change due to announced sale of RMT</td><td>—</td><td>—</td><td>3.5</td><td>—</td><td>—</td><td>6.2</td><td>—</td><td>—</td><td>2.7</td></tr><tr><td>Other items, net</td><td>(1.5)</td><td>(1.8)</td><td>(1.4)</td><td>(1.4)</td><td>(1.5)</td><td>(1.6)</td><td>(1.1)</td><td>(0.9)</td><td>(0.8)</td></tr><tr><td>Overall income tax rate</td><td>10.1%</td><td>12.4%</td><td>20.8%</td><td>(36.2%)</td><td>(24.9%)</td><td>(15.2%)</td><td>32.1%</td><td>32.9%</td><td>36.3%</td></tr></table>

IPL’s tax benefit riders - Alliant Energy’s and IPL’s effective income tax rates include the impact of reducing income tax expense with offsetting reductions to regulatory liabilities as a result of implementing the tax benefit riders. Refer to Note 2 for additional details on IPL’s tax benefit riders.

Effect of rate-making on property-related differences - Alliant Energy’s and IPL’s income tax expense and benefits are impacted by certain property-related differences at IPL for which deferred tax is not recognized in the income statement pursuant to Iowa rate-making principles. For example, tax expenses and benefits related to mixed service costs and repairs expenditures at IPL are recorded as a component of income tax expense pursuant to Iowa rate-making principles. In 2013,



the primary factor contributing to the increase in the current tax benefits recorded for the effect of rate-making on property-related differences was increased repairs expenditures and the equity component of AFUDC at IPL. In 2014, the increased benefits from property-related differences were primarily due to additional repairs deductions and additional deductions from the allocation of mixed service costs related to Marshalltown.

Production tax credits - Production tax credits are earned from owned and operated wind projects. Production tax credits are based on the electricity generated by each wind project during the first 10 years of operation. Details regarding production tax credits (net of state tax impacts) related to various wind projects are as follows (dollars in millions):

<table><tr><td rowspan="2"></td><td>End of Production</td><td>Nameplate</td><td></td><td></td></tr><tr><td>Tax Credit Generation</td><td>Capacity in MW</td><td>2014</td><td>2013</td></tr><tr><td>Cedar Ridge (WPL)</td><td>December 2018</td><td>68</td><td>$4.0</td><td>$4.1</td></tr><tr><td>Bent Tree - Phase I (WPL)</td><td>February 2021</td><td>201</td><td>13.3</td><td>12.5</td></tr><tr><td>Subtotal (WPL)</td><td></td><td></td><td>17.3</td><td>16.6</td></tr><tr><td>Whispering Willow - East (IPL)</td><td>December 2019</td><td>200</td><td>14.0</td><td>14.4</td></tr><tr><td></td><td></td><td></td><td>$31.3</td><td>$31.0</td></tr></table>

State apportionment change due to announced sale of RMT - State apportionment projections are utilized to record deferred tax assets and liabilities each reporting period. Deferred tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the amounts reported in the financial statements are recorded utilizing currently enacted tax rates and estimates of future state apportionment rates expected to be in effect at the time the temporary differences reverse. These state apportionment projections are most significantly impacted by the estimated amount of revenues expected in the future from each state jurisdiction for Alliant Energy’s consolidated tax groups, including both its regulated and its non-regulated operations. In 2012, Alliant Energy recorded $15 million of deferred income tax expense due to changes in state apportionment projections caused by the announced sale of Alliant Energy’s RMT business.

Deferred Tax Assets and Liabilities - The deferred income tax (assets) and liabilities included on Alliant Energy’s balance sheets at December 31 arise from the following temporary differences (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">2014</td><td colspan="3">2013</td></tr><tr><td>Deferred Tax Assets</td><td>Deferred Tax Liabilities</td><td>Net</td><td>Deferred Tax Assets</td><td>Deferred Tax Liabilities</td><td>Net</td></tr><tr><td>Alliant Energy</td><td>$—</td><td>$2,627.8</td><td>$2,627.8</td><td>$—</td><td>$2,316.3</td><td>$2,316.3</td></tr><tr><td>Investment in ATC</td><td>—</td><td>131.6</td><td>131.6</td><td>—</td><td>120.7</td><td>120.7</td></tr><tr><td>Net operating losses carryforwards - state</td><td>(45.7)</td><td>—</td><td>(45.7)</td><td>(35.3)</td><td>—</td><td>(35.3)</td></tr><tr><td>Regulatory liability - IPL’s tax benefit riders</td><td>(100.9)</td><td>—</td><td>(100.9)</td><td>(107.8)</td><td>—</td><td>(107.8)</td></tr><tr><td>Federal credit carryforwards</td><td>(201.0)</td><td>—</td><td>(201.0)</td><td>(167.8)</td><td>—</td><td>(167.8)</td></tr><tr><td>Net operating losses carryforwards - federal</td><td>(332.8)</td><td>—</td><td>(332.8)</td><td>(251.9)</td><td>—</td><td>(251.9)</td></tr><tr><td>Other</td><td>(88.1)</td><td>180.1</td><td>92.0</td><td>(108.9)</td><td>210.7</td><td>101.8</td></tr><tr><td>Subtotal</td><td>($768.5)</td><td>$2,939.5</td><td>$2,171.0</td><td>($671.7)</td><td>$2,647.7</td><td>$1,976.0</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Current deferred tax assets</td><td></td><td></td><td>2014</td><td></td><td>2013</td><td></td></tr><tr><td>Non-current deferred tax liabilities</td><td></td><td></td><td>($150.1)</td><td></td><td>($136.7)</td><td></td></tr><tr><td>Total net deferred tax liabilities</td><td></td><td></td><td>2,321.1</td><td></td><td>2,112.7</td><td></td></tr><tr><td></td><td></td><td></td><td>$2,171.0</td><td></td><td>$1,976.0</td><td></td></tr></table>

Property - Property-related differences were primarily related to accelerated depreciation, including bonus depreciation. In December 2014, the FTIP Act was enacted. The most significant provisions of the FTIP Act for Alliant Energy, IPL and WPL are related to the extension of bonus depreciation deductions for certain expenditures for property that were incurred through December 31, 2014. As a result, Alliant Energy currently estimates its total bonus depreciation deductions to be claimed on its U.S. federal income tax return for calendar year 2014 will be approximately $450 million ($245 million for IPL and $190 million for WPL). Property-related differences also related to tax accounting method changes for cost of removal expenditures and repair expenditures for electric generation property, which are discussed in Note 2.

Investment in ATC - WPL Transco has a partial ownership interest in ATC, which has generated deferred tax liabilities primarily from tax depreciation deductions taken at ATC in excess of book depreciation. The increase in deferred tax liabilities in 2014 was primarily due to bonus depreciation deductions estimated at ATC.



Carryforwards - At December 31, 2014, tax carryforwards and associated deferred tax assets and expiration dates were estimated as follows (in millions):

<table><tr><td>Alliant Energy</td><td>Tax Carryforwards</td><td>Deferred Tax Assets</td><td>Earliest Expiration Date</td></tr><tr><td>Federal net operating losses</td><td>$970</td><td>$333</td><td>2029</td></tr><tr><td>State net operating losses (a)</td><td>881</td><td>46</td><td>2018</td></tr><tr><td>Federal tax credits</td><td>204</td><td>201</td><td>2022</td></tr><tr><td></td><td></td><td>$580</td><td></td></tr></table>

(a) At December 31, 2014, Alliant Energy’s state net operating losses carryforwards had expiration dates ranging from 2018 to 2033 with 98% expiring after 2024.

Regulatory liability - tax benefit riders - Refer to Note 2 for discussion of regulatory liabilities associated with IPL’s tax benefit riders.

Uncertain Tax Positions - A reconciliation of the beginning and ending amounts of uncertain tax positions, excluding interest, is as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="4">Alliant Energy</td><td colspan="4">IPL</td><td colspan="4">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2021</td><td>2013</td><td>2012</td><td></td></tr><tr><td>Balance, January 1</td><td>$—</td><td>$0.7</td><td>$23.5</td><td>$—</td><td>$—</td><td>$10.9</td><td>$—</td><td>$0.7</td><td>$12.6</td><td></td><td></td><td></td></tr><tr><td>Additions based on tax positions related to the current year</td><td>—</td><td>—</td><td>0.7</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>0.7</td><td></td><td></td></tr><tr><td>Reductions for tax positions of prior years (a)</td><td>—</td><td>(0.7)</td><td>(23.5)</td><td>—</td><td>—</td><td>(10.9)</td><td>—</td><td>(0.7)</td><td>(12.6)</td><td></td><td></td><td></td></tr><tr><td>Balance, December 31</td><td>$—</td><td>$—</td><td>$0.7</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$0.7</td><td></td><td></td><td></td></tr></table>

(a) In 2012, the reductions for tax positions of prior years were due to the finalization of Alliant Energy’s federal income tax return audits for calendar years 2005 through 2009.

At December 31, 2014, 2013 and 2012, there were no penalties accrued related to uncertain tax positions, and interest accrued and tax positions favorably impacting future effective tax rates for continuing operations were not material. As of December 31, 2014, no material changes to unrecognized tax benefits are expected during the next 12 months.

Open tax years - Tax years that remain subject to the statute of limitations in the major jurisdictions are as follows:

<table><tr><td></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>Consolidated federal income tax returns (a)</td><td>2011 - 2013</td><td>2011 - 2013</td><td>2011 - 2013</td><td>2013 - 2013</td><td></td><td></td></tr><tr><td>Consolidated Iowa income tax returns (b)</td><td>2011 - 2013</td><td>2011 - 2013</td><td>2011 - 2013</td><td></td><td></td><td></td></tr><tr><td>Wisconsin combined tax returns (c)</td><td>2010 - 2013</td><td>2010 - 2013</td><td>2010 - 2013</td><td></td><td></td><td></td></tr></table>

(a) These federal tax returns are effectively settled as a result of participation in the IRS Compliance Assurance Program, which allows Alliant Energy and the IRS to work together to resolve issues related to Alliant Energy’s current tax year before filing its federal income tax return. The statute of limitations for these federal tax returns expires three years from each filing date.

(b) The statute of limitations for these Iowa tax returns expires three years from each filing date.

(c) The statute of limitations for these Wisconsin combined tax returns expires four years from each filing date.

## (12) BENEFIT PLANS

(a) Pension and Other Postretirement Benefits Plans - Retirement benefits are provided to substantially all employees through various qualified and non-qualified non-contributory defined benefit pension plans, and/or through defined contribution plans (including 401(k) savings plans). Qualified and non-qualified non-contributory defined benefit pension plans are currently closed to new hires. Benefits of the non-contributory defined benefit pension plans are based on the plan participant's years of service, age and compensation. Benefits of the defined contribution plans are based on the plan participant's years of service, age, compensation and contributions. Certain defined benefit postretirement health care and life benefits are provided to eligible retirees. In general, the retiree health care plans consist of fixed benefit subsidy structures and the retiree life insurance plans are non-contributory.



Assumptions - The assumptions for defined benefit pension and OPEB plans at the measurement date of December 31 were as follows:

<table><tr><td rowspan="2">Alliant Energy</td><td colspan="3">Defined Benefit Pension Plans</td><td colspan="3">OPEB Plans</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Discount rate for benefit obligations</td><td>4.18%</td><td>4.97%</td><td>4.11%</td><td>3.97%</td><td>4.59%</td><td>3.82%</td></tr><tr><td>Discount rate for net periodic cost</td><td>4.97%</td><td>4.11%</td><td>4.86%</td><td>4.59%</td><td>3.82%</td><td>4.60%</td></tr><tr><td>Expected rate of return on plan assets</td><td>7.60%</td><td>7.60%</td><td>7.90%</td><td>7.40%</td><td>7.40%</td><td>7.50%</td></tr><tr><td>Rate of compensation increase</td><td>3.50% - 4.50%</td><td>3.50% - 4.50%</td><td>3.50% -</td><td>N/A</td><td>3.50%</td><td>3.50%</td></tr><tr><td>Medical cost trend on covered charges:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Initial trend rate (end of year)</td><td>N/A</td><td>N/A</td><td>N/A</td><td>6.75%</td><td>7.00%</td><td>7.50%</td></tr><tr><td>Ultimate trend rate</td><td>N/A</td><td>N/A</td><td>N/A</td><td>5.00%</td><td>5.00%</td><td>5.00%</td></tr></table>

Expected rate of return on plan assets - The expected rate of return on plan assets is determined by analysis of projected asset class returns based on the target asset class allocations. A forward-looking building blocks approach is used, and historical returns, survey information and capital market information are reviewed to support the expected rate of return on plan assets assumption. Refer to “Investment Policy and Strategy for Plan Assets” below for additional information related to investment policy, and strategy and mix of assets for the pension and OPEB plans.

Life Expectancy - The life expectancy assumption is used in determining the benefit obligation and net periodic benefit cost for defined benefit pension and OPEB plans. This assumption was updated for the measurement date as of December 31, 2014 to utilize new mortality tables that were released in 2014 by the Society of Actuaries. The updated life expectancy assumption resulted in a significant increase to the associated obligations of the pension and OPEB plans.

Net Periodic Benefit Costs (Credits) - The components of net periodic benefit costs (credits) for sponsored defined benefit pension and OPEB plans are as follows (in millions):

<table><tr><td rowspan="2">Alliant Energy</td><td colspan="3">Defined Benefit Pension Plans</td><td colspan="3">OPEB Plans</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Service cost</td><td>$13.1</td><td>$15.7</td><td>$13.5</td><td>$5.2</td><td>$6.3</td><td>$6.9</td></tr><tr><td>Interest cost</td><td>54.1</td><td>49.0</td><td>51.6</td><td>9.5</td><td>8.5</td><td>10.2</td></tr><tr><td>Expected return on plan assets (a)</td><td>(74.9)</td><td>(74.0)</td><td>(68.8)</td><td>(8.3)</td><td>(8.1)</td><td>(7.5)</td></tr><tr><td>Amortization of prior service cost (credit) (b)</td><td>—</td><td>0.2</td><td>0.3</td><td>(11.9)</td><td>(11.9)</td><td>(12.0)</td></tr><tr><td>Amortization of actuarial loss (c)</td><td>19.5</td><td>36.2</td><td>33.3</td><td>2.4</td><td>4.9</td><td>6.3</td></tr><tr><td>Additional benefit costs (d)</td><td>—</td><td>9.0</td><td>0.1</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Settlement losses (e)</td><td>—</td><td>—</td><td>5.4</td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>$11.8</td><td>$36.1</td><td>$35.4</td><td>($3.1)</td><td>($0.3)</td><td>$3.9</td></tr></table>

(a) The expected return on plan assets is based on the expected rate of return on plan assets and the fair value approach to the market-related value of plan assets.

(b) Unrecognized prior service costs (credits) for the OPEB plans are amortized over the average future service period to fulfill eligibility of the participants of each plan.

(c) Unrecognized net actuarial gains or losses in excess of 10% of the greater of the plans' benefit obligations or assets are amortized over the average future service lives of plan participants, except for the Cash Balance Plan where gains or losses outside the 10% threshold are amortized over the time period the participants are expected to receive benefits.

(d) In 2013, Alliant Energy filed a stipulation agreement with the Court related to the class-action lawsuit against the Cash Balance Plan. As a result, Alliant Energy recognized $9.0 million of additional benefits costs in 2013 related to the agreement.

(e) Settlement losses related to payments made to retired executives of Alliant Energy.



The estimated amortization from “Regulatory assets,” “Regulatory liabilities” and AOCL on Alliant Energy’s balance sheet into net periodic benefit cost in 2015 is as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>Defined Benefit Pension Plans</td><td>OPEB Plans</td><td>Defined Benefit Pension Plans</td><td>OPEB Plans</td><td>Defined Benefit Pension Plans</td><td>OPE B Plans</td></tr><tr><td>Actuarial loss</td><td>$35.4</td><td>$4.9</td><td>$15.3</td><td>$2.3</td><td>$16.8</td><td>$2.3</td></tr><tr><td>Prior service cost (credit)</td><td>(0.3)</td><td>(11.3)</td><td>(0.1)</td><td>(6.1)</td><td>0.2</td><td>(3.5)</td></tr><tr><td></td><td>$35.1</td><td>($6.4)</td><td>$15.2</td><td>($3.8)</td><td>$17.0</td><td>($1.2)</td></tr></table>

Net periodic benefit costs are primarily included in “Utility - Other operation and maintenance” in the income statements.

Benefit Plan Assets and Obligations - A reconciliation of the funded status of Alliant Energy’s qualified and non-qualified defined benefit pension and OPEB plans to the amounts recognized on Alliant Energy’s balance sheets at December 31 was as follows (in millions):

<table><tr><td rowspan="3">Alliant Energy</td><td colspan="4">Defined Benefit</td></tr><tr><td colspan="2">Pension Plans</td><td colspan="2">OPEB Plans</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Change in benefit obligation:</td><td></td><td></td><td></td><td></td></tr><tr><td>Net benefit obligation at January 1</td><td>$1,113.4</td><td>$1,207.5</td><td>$208.7</td><td>$223.2</td></tr><tr><td>Service cost</td><td>13.1</td><td>15.7</td><td>5.2</td><td>6.3</td></tr><tr><td>Interest cost</td><td>54.1</td><td>49.0</td><td>9.5</td><td>8.5</td></tr><tr><td>Plan participants’ contributions</td><td>—</td><td>—</td><td>2.8</td><td>2.6</td></tr><tr><td>Additional benefit costs</td><td>—</td><td>9.0</td><td>—</td><td>—</td></tr><tr><td>Actuarial (gain) loss</td><td>195.8</td><td>(94.1)</td><td>22.3</td><td>(13.2)</td></tr><tr><td>Gross benefits paid</td><td>(74.9)</td><td>(73.7)</td><td>(17.4)</td><td>(18.7)</td></tr><tr><td>Net benefit obligation at December 31</td><td>1,301.5</td><td>1,113.4</td><td>231.1</td><td>208.7</td></tr><tr><td>Change in plan assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fair value of plan assets at January 1</td><td>1,022.9</td><td>965.6</td><td>124.9</td><td>123.1</td></tr><tr><td>Actual return on plan assets</td><td>66.4</td><td>128.5</td><td>5.6</td><td>14.4</td></tr><tr><td>Employer contributions</td><td>3.7</td><td>2.5</td><td>5.7</td><td>3.5</td></tr><tr><td>Plan participants’ contributions</td><td>—</td><td>—</td><td>2.8</td><td>2.6</td></tr><tr><td>Gross benefits paid</td><td>(74.9)</td><td>(73.7)</td><td>(17.4)</td><td>(18.7)</td></tr><tr><td>Fair value of plan assets at December 31</td><td>1,018.1</td><td>1,022.9</td><td>121.6</td><td>124.9</td></tr><tr><td>Under funded status at December 31</td><td>($283.4)</td><td>($90.5)</td><td>($109.5)</td><td>($83.8)</td></tr></table>

<table><tr><td rowspan="3">Alliant Energy</td><td colspan="4">Defined Benefit</td></tr><tr><td colspan="2">Pension Plans</td><td colspan="2">OPEB Plans</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Amounts recognized on the balance sheets consist of:</td><td></td><td></td><td></td><td></td></tr><tr><td>Non-current assets</td><td>$—</td><td>$—</td><td>$6.1</td><td>$14.5</td></tr><tr><td>Other current liabilities</td><td>(2.5)</td><td>(2.4)</td><td>(5.6)</td><td>(4.8)</td></tr><tr><td>Pension and other benefit obligations</td><td>(280.9)</td><td>(88.1)</td><td>(110.0)</td><td>(93.5)</td></tr><tr><td>Net amounts recognized at December 31</td><td>($283.4)</td><td>($90.5)</td><td>($109.5)</td><td>($83.8)</td></tr><tr><td>Amounts recognized in Regulatory Assets, Regulatory Liabilities and AOCL consist of (a):</td><td></td><td></td><td></td><td></td></tr><tr><td>Net actuarial loss</td><td>$533.4</td><td>$348.6</td><td>$60.7</td><td>$38.1</td></tr><tr><td>Prior service credit</td><td>(7.4)</td><td>(7.4)</td><td>(16.7)</td><td>(28.6)</td></tr><tr><td></td><td>$526.0</td><td>$341.2</td><td>$44.0</td><td>$9.5</td></tr></table>

(a) Refer to Note 2 and Alliant Energy’s common equity statements for amounts recognized in “Regulatory assets” and “AOCL,” respectively, on Alliant Energy’s balance sheets. At December 31, 2014 and 2013, $1.1 million and $5.1 million, respectively, of regulatory liabilities were recognized related to Alliant Energy’s OPEB plans.



Included in the following table are accumulated benefit obligations, aggregate amounts applicable to defined benefit pension and OPEB plans with accumulated benefit obligations in excess of plan assets, as well as defined benefit pension plans with projected benefit obligations in excess of plan assets as of the December 31 measurement date (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Defined Benefit Pension Plans</td><td colspan="2">OPEB Plans</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Alliant Energy</td><td>$1,255.0</td><td>$1,071.7</td><td>$231.1</td><td>$208.7</td></tr><tr><td>Accumulated benefit obligations</td><td></td><td></td><td></td><td></td></tr><tr><td>Plans with accumulated benefit obligations in excess of plan assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Accumulated benefit obligations</td><td>1,255.0</td><td>406.5</td><td>231.1</td><td>208.7</td></tr><tr><td>Fair value of plan assets</td><td>1,018.1</td><td>347.6</td><td>121.6</td><td>124.9</td></tr><tr><td>Plans with projected benefit obligations in excess of plan assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Projected benefit obligations</td><td>1,301.5</td><td>1,113.4</td><td>N/A</td><td>N/A</td></tr><tr><td>Fair value of plan assets</td><td>1,018.1</td><td>1,022.9</td><td>N/A</td><td>N/A</td></tr></table>

Estimated Future Employer Contributions and Benefit Payments - Estimated funding for the qualified and non-qualified defined benefit pension and OPEB plans for 2015 is as follows (in millions):

<table><tr><td></td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Defined benefit pension plans (a)</td><td>$2.5</td><td>$0.8</td><td>$0.2</td></tr><tr><td>OPEB plans</td><td>5.7</td><td>—</td><td>5.5</td></tr></table>

(a) Alliant Energy sponsors several non-qualified defined benefit pension plans that cover certain current and former key employees of IPL and WPL. Alliant Energy allocates pension costs to IPL and WPL for these plans. In addition, IPL and WPL amounts reflect funding for their non-bargaining employees who are participants in the Alliant Energy and Corporate Services sponsored qualified and non-qualified defined benefit pension plans.

Expected benefit payments for the qualified and non-qualified defined benefit plans, which reflect expected future service, as appropriate, are as follows (in millions):

<table><tr><td>Alliant Energy</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>2020 - 2024</td></tr><tr><td>Defined benefit pension benefits</td><td>$66.7</td><td>$71.5</td><td>$69.3</td><td>$72.9</td><td>$73.6</td><td>$396.1</td></tr><tr><td>OPEB</td><td>17.6</td><td>16.8</td><td>16.7</td><td>16.9</td><td>17.0</td><td>84.0</td></tr><tr><td></td><td>$84.3</td><td>$88.3</td><td>$86.0</td><td>$89.8</td><td>$90.6</td><td>$480.1</td></tr></table>

Investment Policy and Strategy for Plan Assets - Investment policies and strategies employed with respect to assets of defined benefit pension and OPEB plans are to combine both preservation of principal and prudent and reasonable risk-taking to protect the integrity of plan assets, in order to meet the obligations to plan participants while minimizing benefit costs over the long term. It is recognized that risk and volatility are present with all types of investments. However, risk is mitigated at the total fund level through diversification by asset class including U.S. and international equity and fixed income exposure, global asset and risk parity strategies, the number of individual investments, and sector and industry limits. Global asset and risk parity strategies include investments in global equity, global debt, commodities and currencies.

Defined Benefit Pension Plans Assets - For assets of defined benefit pension plans, the mix among asset classes is controlled by asset allocation targets. Historical performance results and future expectations suggest that equity securities will provide higher total investment returns than debt securities over a long-term investment horizon. Consistent with the goals of meeting obligations to plan participants and minimizing benefit costs over the long-term, the defined benefit pension plans have a long-term investment posture more heavily weighted towards equity holdings. The asset allocation is monitored regularly and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. An overlay management service is also used to help maintain target allocations and meet liquidity needs. The overlay manager is authorized to use derivative financial instruments to facilitate this service. For separately managed accounts, prohibited investment vehicles include, but may not be limited to, direct ownership of real estate, margin trading, oil and gas limited partnerships and securities of the managers' firms or affiliate firms.



At December 31, 2014, the current target ranges and actual allocations for the defined benefit pension plan assets were as follows:

<table><tr><td></td><td>Target Range Allocation</td><td>Actual Allocation</td></tr><tr><td>Cash and equivalents</td><td>0% - 5%</td><td>5%</td></tr><tr><td>Equity securities:</td><td></td><td></td></tr><tr><td>U.S. large cap core</td><td>8% - 18%</td><td>13%</td></tr><tr><td>U.S. large cap value</td><td>2.5% - 12.5%</td><td>7%</td></tr><tr><td>U.S. large cap growth</td><td>2.5% - 12.5%</td><td>7%</td></tr><tr><td> U.S. small cap value</td><td>0% - 4%</td><td>1%</td></tr><tr><td>U.S. small cap growth</td><td>0% - 4%</td><td>2%</td></tr><tr><td>International - developed markets</td><td>7% - 19%</td><td>10%</td></tr><tr><td>International - emerging markets</td><td>0% - 10%</td><td>5%</td></tr><tr><td>Global asset allocation securities</td><td>5% - 15%</td><td>10%</td></tr><tr><td>Risk parity allocation securities</td><td>5% - 15%</td><td>10%</td></tr><tr><td>Fixed income securities</td><td>20% - 40%</td><td>30%</td></tr></table>

Other Postretirement Benefits Plans Assets - OPEB plans assets are comprised of specific assets within certain defined benefit pension plans (401(h) assets) as well as assets held in VEBA trusts. The investment policy and strategy of the 401(h) assets mirrors those of the defined benefit pension plans, which are discussed above. For VEBA trusts with assets greater than $5 million, the mix among asset classes is controlled by allocation targets. The asset allocation is monitored regularly and appropriate steps are taken as needed to rebalance the assets within the prescribed ranges. Mutual funds are used to achieve the desired diversification. At December 31, 2014, the current target ranges and actual allocations for VEBA trusts with assets greater than $5 million were as follows:

<table><tr><td></td><td>Target Range Allocation</td><td>Actual Allocation</td></tr><tr><td>Cash and equivalents</td><td>0% - 5%</td><td>2%</td></tr><tr><td>Equity securities:</td><td></td><td></td></tr><tr><td>Domestic</td><td>25% - 45%</td><td>36%</td></tr><tr><td>International</td><td>10% - 20%</td><td>14%</td></tr><tr><td>Global asset allocation securities</td><td>20% - 40%</td><td>29%</td></tr><tr><td>Fixed income securities</td><td>10% - 30%</td><td>19%</td></tr></table>

Fair Value Measurements - The following tables report a framework for measuring fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. Investments in securities held in registered investment companies and directly held equity securities are valued at the closing price reported in the active market in which the securities are traded.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Investments in common/collective trusts are valued at the net asset value of shares held by the plans, which is based on the fair market value of the underlying investments in the common/collective trusts. Investments in corporate bonds and government and agency obligations are valued at the closing price reported in the active market for similar assets in which the individual securities are traded or based on yields currently available on comparable securities of issuers with similar credit ratings.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation.



The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while Alliant Energy, IPL and WPL believe their valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

At December 31, the fair values of Alliant Energy’s qualified and non-qualified defined benefit pension plans assets by asset category and fair value hierarchy level were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="4">2014</td><td colspan="4">2013</td></tr><tr><td>Fair Value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Fair Value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td></tr><tr><td>Cash and equivalents</td><td>$49.3</td><td>$—</td><td>$49.3</td><td>$—</td><td>$32.6</td><td>$—</td><td>$32.6</td><td>$—</td></tr><tr><td>Equity securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. large cap core</td><td>137.2</td><td>137.2</td><td>—</td><td>—</td><td>134.1</td><td>134.1</td><td>—</td><td>—</td></tr><tr><td>U.S. large cap value</td><td>72.2</td><td>—</td><td>72.2</td><td>—</td><td>77.0</td><td>—</td><td>77.0</td><td>—</td></tr><tr><td>U.S. large cap growth</td><td>73.2</td><td>—</td><td>73.2</td><td>—</td><td>77.4</td><td>—</td><td>77.4</td><td>—</td></tr><tr><td>U.S. small cap value</td><td>15.2</td><td>—</td><td>15.2</td><td>—</td><td>20.7</td><td>—</td><td>20.7</td><td>—</td></tr><tr><td>U.S. small cap growth</td><td>15.9</td><td>15.9</td><td>—</td><td>—</td><td>20.8</td><td>20.8</td><td>—</td><td>—</td></tr><tr><td>International - developed markets</td><td>102.9</td><td>52.1</td><td>50.8</td><td>—</td><td>136.3</td><td>68.0</td><td>68.3</td><td>—</td></tr><tr><td>International - emerging markets</td><td>47.2</td><td>47.2</td><td>—</td><td>—</td><td>48.4</td><td>48.4</td><td>—</td><td>—</td></tr><tr><td>Global asset allocation securities</td><td>99.9</td><td>57.2</td><td>42.7</td><td>—</td><td>99.1</td><td>56.7</td><td>42.4</td><td>—</td></tr><tr><td>Risk parity allocation securities</td><td>102.5</td><td>—</td><td>102.5</td><td>—</td><td>96.1</td><td>—</td><td>96.1</td><td>—</td></tr><tr><td>Fixed income securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Corporate bonds</td><td>0.1</td><td>—</td><td>0.1</td><td>—</td><td>29.2</td><td>—</td><td>29.2</td><td>—</td></tr><tr><td>Government and agency obligations</td><td>—</td><td>—</td><td>—</td><td>—</td><td>49.1</td><td>—</td><td>49.1</td><td>—</td></tr><tr><td>Fixed income funds</td><td>302.7</td><td>0.2</td><td>302.5</td><td>—</td><td>202.2</td><td>0.2</td><td>202.0</td><td>—</td></tr><tr><td></td><td>1,018.3</td><td>$309.8</td><td>$708.5</td><td>$—</td><td>1,023.0</td><td>$328.2</td><td>$694.8</td><td>$—</td></tr><tr><td>Accrued investment income</td><td>0.1</td><td></td><td></td><td></td><td>0.7</td><td></td><td></td><td></td></tr><tr><td>Due to brokers, net (pending trades with brokers)</td><td>(0.3)</td><td></td><td></td><td></td><td>(0.8)</td><td></td><td></td><td></td></tr><tr><td>Total pension plan assets</td><td>$1,018.1</td><td></td><td></td><td></td><td>$1,022.9</td><td></td><td></td><td></td></tr></table>



At December 31, the fair values of Alliant Energy’s OPEB plans assets by asset category and fair value hierarchy level were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="4">2014</td><td colspan="4">2013</td></tr><tr><td>Fair Value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Fair Value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td></tr><tr><td>Cash and equivalents</td><td>$3.7</td><td>$—</td><td>$3.7</td><td>$—</td><td>$3.9</td><td>$—</td><td>$3.9</td><td>$—</td></tr><tr><td>Equity securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. blend</td><td>35.8</td><td>35.8</td><td>—</td><td>—</td><td>36.8</td><td>36.8</td><td>—</td><td>—</td></tr><tr><td>U.S. large cap core</td><td>2.9</td><td>2.9</td><td>—</td><td>—</td><td>2.9</td><td>2.9</td><td>—</td><td>—</td></tr><tr><td>U.S. large cap value</td><td>1.5</td><td>—</td><td>1.5</td><td>—</td><td>1.7</td><td>—</td><td>1.7</td><td>—</td></tr><tr><td>U.S. large cap growth</td><td>1.6</td><td>—</td><td>1.6</td><td>—</td><td>1.7</td><td>—</td><td>1.7</td><td>—</td></tr><tr><td>U.S. small cap value</td><td>0.3</td><td>—</td><td>0.3</td><td>—</td><td>0.5</td><td>—</td><td>0.5</td><td>—</td></tr><tr><td>U.S. small cap growth</td><td>0.4</td><td>0.4</td><td>—</td><td>—</td><td>0.5</td><td>0.5</td><td>—</td><td>—</td></tr><tr><td>International - blend</td><td>14.2</td><td>14.2</td><td>—</td><td>—</td><td>15.4</td><td>15.4</td><td>—</td><td>—</td></tr><tr><td>International - developed markets</td><td>2.2</td><td>1.1</td><td>1.1</td><td>—</td><td>3.0</td><td>1.5</td><td>1.5</td><td>—</td></tr><tr><td>International - emerging markets</td><td>1.0</td><td>1.0</td><td>—</td><td>—</td><td>1.1</td><td>1.1</td><td>—</td><td>—</td></tr><tr><td>Global asset allocation securities</td><td>30.3</td><td>29.4</td><td>0.9</td><td>—</td><td>30.4</td><td>29.5</td><td>0.9</td><td>—</td></tr><tr><td>Risk parity allocation securities</td><td>2.2</td><td>—</td><td>2.2</td><td>—</td><td>2.1</td><td>—</td><td>2.1</td><td>—</td></tr><tr><td>Fixed income securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Corporate bonds</td><td>—</td><td>—</td><td>—</td><td>—</td><td>0.6</td><td>—</td><td>0.6</td><td>—</td></tr><tr><td>Government and agency obligations</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1.1</td><td>—</td><td>1.1</td><td>—</td></tr><tr><td>Fixed income funds</td><td>25.5</td><td>19.0</td><td>6.5</td><td>—</td><td>23.2</td><td>18.8</td><td>4.4</td><td>—</td></tr><tr><td>Total OPEB plan assets</td><td>$121.6</td><td>$103.8</td><td>$17.8</td><td>$—</td><td>$124.9</td><td>$106.5</td><td>$18.4</td><td>$—</td></tr></table>

For the various defined benefit pension and OPEB plans, Alliant Energy common stock represented less than 1% of assets directly held in the plans at December 31, 2014 and 2013.

Cash Balance Plan - Alliant Energy’s defined benefit pension plans include the Cash Balance Plan, which provides benefits for certain non-bargaining unit employees. The Cash Balance Plan has been closed to new hires since 2005. Effective 2008, Alliant Energy amended the Cash Balance Plan by discontinuing additional contributions into employees’ Cash Balance Plan accounts and increased its level of contributions to its 401(k) Savings Plan. In 2009, Alliant Energy amended the Cash Balance Plan by changing participants’ future interest credit formula to use the annual change in the consumer price index. This amendment provides participants an interest crediting rate that is 3% more than the annual change in the consumer price index.

In 2008, a class-action lawsuit was filed against the Cash Balance Plan. The complaint alleged that certain Cash Balance Plan participants who received distributions prior to their normal retirement age did not receive the full benefit to which they were entitled in violation of the Employee Retirement Income Security Act of 1974 because the Cash Balance Plan applied an improper interest crediting rate to project the cash balance account to their normal retirement age. These Cash Balance Plan participants were limited to individuals who, prior to normal retirement age, received a lump-sum distribution or an annuity payment.

The Cash Balance Plan entered into a stipulation agreement with the plaintiffs, which was filed with the Court in 2013 settling all open matters in the case. In January 2014, the Court entered final judgment in the total amount of $9.0 million. Plaintiffs’ attorney’s fees and costs were paid from the final damages. Due to the stipulation agreement filed with the Court in 2013, Alliant Energy recognized the additional benefits to be paid to the plaintiffs in the income statement in 2013. As a result of the January 2014 final Court order requiring plaintiffs’ attorney’s fees and costs to be paid out of the final judgment, Alliant Energy reversed the reserve previously recorded related to payment of plaintiffs’ attorney’s fees and costs. As a result of recognizing the additional benefits of $9.0 million to be paid to the plaintiffs and reversing the previously recorded reserve of $6.7 million for plaintiffs’ attorney’s fees and costs, there was not a net material impact on Alliant Energy’s results of operations for 2013.



401(k) Savings Plans - A significant number of employees participate in defined contribution retirement plans (401(k) savings plans). Alliant Energy common stock represented 12.6% and 11.3% of total assets held in 401(k) savings plans at December 31, 2014 and 2013, respectively. Costs related to the 401(k) savings plans, which are partially based on the participants' contributions, were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL (a)</td><td colspan="3">WPL (a)</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td></td></tr><tr><td>401(k) costs</td><td>$22.5</td><td>$19.2</td><td>$18.5</td><td>$11.1</td><td>$9.9</td><td>$9.6</td><td>$10.5</td><td>$8.5</td><td>$8.1</td></tr></table>

(a) IPL’s and WPL’s amounts include allocated costs associated with Corporate Services employees.

(b) Equity-based Compensation Plans - In 2010, Alliant Energy’s shareowners approved the OIP, which permits the grant of stock options, restricted stock, restricted stock units, performance shares, performance units, and other stock-based awards and performance-based cash awards to key employees. At December 31, 2014, performance shares and restricted stock were outstanding and 3.9 million shares of Alliant Energy’s common stock remained available for grants under the OIP. Alliant Energy satisfies payouts related to equity awards under the OIP through the issuance of new shares of its common stock. Alliant Energy also has the DLIP, which permits the grant of cash-based long-term performance-based awards, including performance units and restricted cash awards to certain key employees. At December 31, 2014, performance units and performance contingent cash awards were outstanding under the DLIP. There is no limit to the number of grants that can be made under the DLIP and Alliant Energy satisfies all payouts under the DLIP through cash payments.

A summary of compensation expense (including amounts allocated to IPL and WPL) and the related income tax benefits recognized for share-based compensation awards was as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td></td></tr><tr><td>Compensation expense</td><td>$15.3</td><td>$12.0</td><td>$6.9</td><td>$8.3</td><td>$6.2</td><td>$3.6</td><td>$6.4</td><td>$5.2</td><td>$3.0</td></tr><tr><td>Income tax benefits</td><td>6.2</td><td>4.8</td><td>2.8</td><td>3.4</td><td>2.5</td><td>1.5</td><td>2.6</td><td>2.1</td><td>1.2</td></tr></table>

As of December 31, 2014, total unrecognized compensation cost related to share-based compensation awards was $6.5 million, which is expected to be recognized over a weighted average period of between 1 and 2 years. Share-based compensation expense is recognized on a straight-line basis over the requisite service periods and is primarily recorded in “Utility - Other operation and maintenance” in the income statements.

Performance Shares and Units - Payouts of performance shares and units to key employees are contingent upon achievement over 3-year periods of specified performance criteria, which currently include metrics of total shareowner return relative to an investor-owned utility peer group. Payouts of nonvested performance shares and units are based on achievement of the performance criteria and are prorated at retirement, death or disability based on time worked during the first year of the performance period and prorated at involuntary termination without cause based on time worked during the entire performance period. Upon achievement of the performance criteria, payouts of these performance shares and units to participants who terminate employment after the first year of the performance period due to retirement, death or disability are not prorated. Participants’ nonvested performance shares and units are forfeited if the participant voluntarily leaves Alliant Energy or is terminated for cause. Nonvested performance shares and units do not have non-forfeitable rights to dividends when dividends are paid to common shareowners. Alliant Energy assumes it will make future payouts of its performance shares and units in cash; therefore, performance shares and units are accounted for as liability awards.

Performance Shares - Performance shares can be paid out in shares of Alliant Energy’s common stock, cash or a combination of cash and stock and are adjusted by a performance multiplier, which ranges from zero to 200% based on the performance criteria. A summary of the performance shares activity was as follows:

<table><tr><td rowspan="2"></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Shares (a)</td><td>Shares (a)</td><td>Shares (a)</td></tr><tr><td>Nonvested shares, January 1</td><td>139,940</td><td>145,277</td><td>236,979</td></tr><tr><td>Granted</td><td>51,221</td><td>49,093</td><td>45,612</td></tr><tr><td>Vested</td><td>(45,235)</td><td>(54,430)</td><td>(111,980)</td></tr><tr><td>Forfeited (b)</td><td>(1,502)</td><td>—</td><td>(25,334)</td></tr><tr><td>Nonvested shares, December 31</td><td>144,424</td><td>139,940</td><td>145,277</td></tr></table>



(a) Share amounts represent the target number of performance shares. Each performance share’s value is based on the closing market price of one share of Alliant Energy’s common stock at the end of the performance period. The actual number of shares that will be paid out upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of shares.

(b) Forfeitures were primarily caused by retirements and voluntary terminations of participants.

Certain performance shares vested, resulting in payouts (a combination of cash and common stock) as follows:

<table><tr><td rowspan="2"></td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td>2011 Grant</td><td>2010 Grant</td><td>2009 Grant</td><td></td></tr><tr><td>Performance shares vested</td><td>45,235</td><td>54,430</td><td>111,980</td><td></td></tr><tr><td>Percentage of target number of performance shares</td><td>147.5%</td><td>197.5%</td><td>162.5%</td><td></td></tr><tr><td>Aggregate payout value (in millions)</td><td>$3.4</td><td>$4.8</td><td>$8.0</td><td></td></tr><tr><td>Payout - cash (in millions)</td><td>$2.9</td><td>$4.4</td><td>$7.8</td><td></td></tr><tr><td>Payout - common stock shares issued</td><td>4,810</td><td>4,177</td><td>6,399</td><td></td></tr></table>

Performance Units - Performance units must be paid out in cash and are adjusted by a performance multiplier, which ranges from zero to 200% based on the performance criteria. A summary of the performance unit activity was as follows:

<table><tr><td rowspan="2"></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Units (a)</td><td>Units (a)</td><td>Units (a)</td></tr><tr><td>Nonvested units, January 1</td><td>65,912</td><td>64,969</td><td>42,996</td></tr><tr><td>Granted</td><td>20,422</td><td>22,201</td><td>24,686</td></tr><tr><td>Vested</td><td>(20,751)</td><td>(19,760)</td><td>—</td></tr><tr><td>Forfeited</td><td>(1,918)</td><td>(1,498)</td><td>(2,713)</td></tr><tr><td>Nonvested units, December 31</td><td>63,665</td><td>65,912</td><td>64,969</td></tr></table>

(a) Unit amounts represent the target number of performance units. Each performance unit’s value is based on the average price of one share of Alliant Energy’s common stock on the grant date of the award. The actual payout for performance units is dependent upon actual performance and may range from zero to 200% of the target number of units.

Certain performance units vested, resulting in cash payouts as follows:

<table><tr><td rowspan="2"></td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td>2011 Grant</td><td>2010 Grant</td><td></td><td></td></tr><tr><td>Performance units vested</td><td>20,751</td><td>19,760</td><td></td><td></td></tr><tr><td>Percentage of target number of performance units</td><td>147.5%</td><td>197.5%</td><td></td><td></td></tr><tr><td>Payout value (in millions)</td><td>$1.2</td><td>$1.3</td><td></td><td></td></tr></table>

Fair Value of Awards - Information related to fair values of nonvested performance shares and units at December 31, 2014, by year of grant, were as follows:

<table><tr><td rowspan="2"></td><td colspan="3">Performance Shares</td><td colspan="3">Performance Units</td></tr><tr><td>2014 Grant</td><td>2013 Grant</td><td>2012 Grant</td><td>2014 Grant</td><td>2013 Grant</td><td>2012 Grant</td></tr><tr><td>Nonvested awards</td><td>49,719</td><td>49,093</td><td>45,612</td><td>19,440</td><td>21,380</td><td>22,845</td></tr><tr><td>Alliant Energy common stock closing price on December 31, 2014</td><td>$66.42</td><td>$66.42</td><td>$66.42</td><td></td><td></td><td></td></tr><tr><td>Alliant Energy common stock closing price on grant date</td><td></td><td></td><td></td><td>$53.77</td><td>$47.58</td><td>$43.05</td></tr><tr><td>Estimated payout percentage based on performance criteria</td><td>125%</td><td>160%</td><td>168%</td><td>125%</td><td>160%</td><td>168%</td></tr><tr><td>Fair values of each nonvested award</td><td>$83.03</td><td>$106.27</td><td>$111.25</td><td>$67.21</td><td>$76.13</td><td>$72.11</td></tr></table>

At December 31, 2014, fair values of nonvested performance shares and units were calculated using a Monte Carlo simulation to determine the anticipated total shareowner returns of Alliant Energy and its investor-owned utility peer group. Expected volatility was based on historical volatilities using daily stock prices over the past three years. Expected dividend yields were calculated based on the most recent quarterly dividend rates announced prior to the measurement date and stock prices at the measurement date. The risk-free interest rate was based on the three-year U.S. Treasury rate in effect as of the measurement date.



Performance-contingent Restricted Stock - Vesting of performance-contingent restricted stock grants are based on the achievement of certain performance targets (currently specified growth of consolidated income from continuing operations). If performance targets are not met within the performance period, which currently ranges from two to four years, these restricted stock grants are forfeited. Payouts of nonvested performance-contingent restricted stock are based on achievement of the performance criteria and are prorated at retirement, death or disability based on time worked during the first year of the performance period and prorated at involuntary termination without cause based on time worked during the entire performance period. Upon achievement of the performance criteria, payouts of this performance-contingent restricted stock to participants who terminate employment after the first year of the performance period due to retirement, death or disability are not prorated. Participants' nonvested performance-contingent restricted stock is forfeited if the participant voluntarily leaves Alliant Energy or is terminated for cause. The fair value of performance-contingent restricted stock is based on the closing market price on the grant date. A summary of the performance-contingent restricted stock activity was as follows:

<table><tr><td rowspan="2"></td><td colspan="2">2014</td><td colspan="2">2013</td><td colspan="2">2012</td></tr><tr><td>Shares</td><td>Weighted Average Fair Value</td><td>Shares</td><td>Weighted Average Fair Value</td><td>Shares</td><td>Weighted Average Fair Value</td></tr><tr><td>Nonvested shares, January 1</td><td>158,922</td><td>$42.71</td><td>211,651</td><td>$32.42</td><td>301,738</td><td>$32.60</td></tr><tr><td>Granted</td><td>51,221</td><td>53.77</td><td>49,093</td><td>47.58</td><td>45,612</td><td>43.05</td></tr><tr><td>Vested (a)</td><td>(90,847)</td><td>40.91</td><td>—</td><td>—</td><td>(65,172)</td><td>32.56</td></tr><tr><td>Forfeited (b)</td><td>(20,484)</td><td>39.85</td><td>(101,822)</td><td>23.67</td><td>(70,527)</td><td>39.93</td></tr><tr><td>Nonvested shares, December 31</td><td>98,812</td><td>50.69</td><td>158,922</td><td>42.71</td><td>211,651</td><td>32.42</td></tr></table>

(a) In 2014, 45,612 and 45,235 performance contingent restricted shares granted in 2012 and 2011, respectively, vested because the specified performance criteria for such shares were met. In 2012, 65,172 performance-contingent restricted shares granted in 2010 vested because the specified performance criteria for such shares were met.

(b) In 2013 and 2012, 101,822 and 65,516 performance-contingent restricted shares granted in 2009 and 2008, respectively, were forfeited because the specified performance criteria for such shares were not met. The remaining forfeitures during 2014 and 2012 were primarily caused by retirements and terminations of participants.

Performance Contingent Cash Awards - Performance contingent cash award payouts to key employees are based on the achievement of certain performance targets (currently specified growth of consolidated income from continuing operations). If performance targets are not met within the performance period, which currently ranges from two to four years, there are no payouts for these awards. Payouts of nonvested awards are based on achievement of the performance criteria and are prorated at retirement, death or disability based on time worked during the first year of the performance period. Upon achievement of the performance criteria, payouts of these awards to participants who terminate employment after the first year of the performance period due to retirement, death or disability are not prorated. Participants' nonvested awards are forfeited if the participant voluntarily leaves Alliant Energy or is terminated for cause. Each performance contingent cash award's value is based on the price of one share of Alliant Energy's common stock at the end of the performance period. Alliant Energy accounts for performance contingent cash awards as liability awards because payouts will be made in the form of cash. A summary of the performance contingent cash awards activity was as follows:

<table><tr><td rowspan="2"></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Awards</td><td>Awards</td><td>Awards</td></tr><tr><td>Nonvested awards, January 1</td><td>96,977</td><td>59,639</td><td>46,676</td></tr><tr><td>Granted</td><td>42,446</td><td>39,530</td><td>36,936</td></tr><tr><td>Vested (a)</td><td>(55,517)</td><td>—</td><td>(21,605)</td></tr><tr><td>Forfeited</td><td>(4,976)</td><td>(2,192)</td><td>(2,368)</td></tr><tr><td>Nonvested awards, December 31</td><td>78,930</td><td>96,977</td><td>59,639</td></tr></table>

(a) In 2014, 34,766 and 20,751 performance contingent cash awards granted in 2012 and 2011 vested, resulting in cash payouts valued at $1.9 million and $1.1 million, respectively. In 2012, 21,605 performance contingent cash awards granted in 2010 vested, resulting in cash payouts valued at $0.9 million.

(c) Deferred Compensation Plan - Alliant Energy maintains a DCP under which key employees may defer up to 100% of base salary and performance-based compensation and directors may elect to defer all or part of their retainer and committee fees. Key employees who have made the maximum allowed contribution to the Alliant Energy 401(k) Savings Plan may receive an additional credit to the DCP. Key employees and directors may elect to have their deferrals credited to a company stock account, an interest account or equity accounts based on certain benchmark funds.



Company Stock Accounts - The DCP does not permit diversification of deferrals credited to the company stock account and all distributions from participants' company stock accounts are made in the form of shares of Alliant Energy common stock. The deferred compensation obligations for participants' company stock accounts are recorded in "Additional paid-in capital" and the shares of Alliant Energy common stock held in a rabbi trust to satisfy this obligation are recorded in "Shares in deferred compensation trust" on Alliant Energy's balance sheets. At December 31, the carrying value of the deferred compensation obligation for the company stock accounts and the shares in the deferred compensation trust based on the historical value of the shares of Alliant Energy common stock contributed to the rabbi trust, and the fair market value of the shares held in the rabbi trust were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td></tr><tr><td>Carrying value</td><td>$8.9</td><td>$8.0</td></tr><tr><td>Fair market value</td><td>15.9</td><td>11.7</td></tr></table>

Interest and Equity Accounts - Distributions from participants’ interest and equity accounts are in the form of cash payments. The deferred compensation obligations for participants’ interest and equity accounts are recorded in “Pension and other benefit obligations” on Alliant Energy’s balance sheets. At December 31, the carrying value of deferred compensation obligations for participants’ interest and equity accounts, which approximates fair market value, was as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Carrying value</td><td>$17.8</td><td>$15.9</td><td>$5.2</td><td>$5.2</td></tr></table>

## (13) ASSET RETIREMENT OBLIGATIONS

Recognized AROs relate to legal obligations for the removal, closure or dismantlement of several assets including, but not limited to, wind projects, certain ash ponds, active ash landfills, certain coal yards and above ground storage tanks. Recognized AROs also include legal obligations for the management and final disposition of asbestos and polychlorinated biphenyls. AROs are recorded in “Other liabilities” on the balance sheets. Refer to Note 2 for information regarding regulatory assets related to AROs. A reconciliation of the changes in AROs associated with long-lived assets is as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Balance, January 1</td><td>$109.7</td><td>$101.5</td><td>$47.9</td><td>$45.5</td><td>$52.4</td><td>$46.9</td></tr><tr><td>Revisions in estimated cash flows</td><td>—</td><td>5.6</td><td>—</td><td>0.1</td><td>—</td><td>5.5</td></tr><tr><td>Liabilities settled</td><td>(3.4)</td><td>(2.3)</td><td>(1.4)</td><td>(0.6)</td><td>(2.0)</td><td>(1.7)</td></tr><tr><td>Liabilities incurred</td><td>3.7</td><td>1.2</td><td>3.5</td><td>1.2</td><td>0.2</td><td>—</td></tr><tr><td>Accretion expense</td><td>4.0</td><td>3.7</td><td>1.8</td><td>1.7</td><td>1.8</td><td>1.7</td></tr><tr><td>Balance, December 31</td><td>$114.0</td><td>$109.7</td><td>$51.8</td><td>$47.9</td><td>$52.4</td><td>$52.4</td></tr></table>

In addition, certain AROs related to EGU assets have not been recognized. Due to an indeterminate remediation date, the fair values of the AROs for these assets cannot be currently estimated. A liability for these AROs will be recorded when fair value is determinable. Removal costs of these EGUs are being recovered in rates and are recorded in regulatory liabilities.

In December 2014, the EPA issued the final CCR rule, which regulates CCR as a non-hazardous waste. IPL and WPL have current and former coal-fired EGUs with existing coal ash surface impoundments, as well as active CCR company-owned landfills that are impacted by this rule. Alliant Energy, IPL and WPL are currently evaluating the final rule to determine the full impact of the final CCR rule, including any additional AROs that may need to be recognized in 2015 as a result of this rule. Expenditures incurred by IPL and WPL to comply with the CCR rule are anticipated to be recovered in rates from their customers. Refer to Note 16(e) for further discussion of the final CCR rule.



## (14) FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at December 31 were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>Carrying Amount</td><td>Fair Value</td><td>Carrying Amount</td><td>Fair Value</td><td>Carrying Amount</td><td>Fair Value</td></tr><tr><td>2014</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Derivative assets (Note 15)</td><td>$38.6</td><td>$38.6</td><td>$28.0</td><td>$28.0</td><td>$10.6</td><td>$10.6</td></tr><tr><td>Deferred proceeds (sales of receivables) (Note 5(b))</td><td>177.2</td><td>177.2</td><td>177.2</td><td>177.2</td><td>—</td><td>—</td></tr><tr><td>Capitalization and liabilities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Long-term debt (including current maturities) (Note 9(b))</td><td>3,789.7</td><td>4,418.2</td><td>1,768.7</td><td>2,053.0</td><td>1,573.9</td><td>1,908.9</td></tr><tr><td>Cumulative preferred stock (Note 8)</td><td>200.0</td><td>200.2</td><td>200.0</td><td>200.2</td><td>—</td><td>—</td></tr><tr><td>Derivative liabilities (Note 15)</td><td>37.6</td><td>37.6</td><td>19.5</td><td>19.5</td><td>18.1</td><td>18.1</td></tr><tr><td>2013</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Derivative assets (Note 15)</td><td>26.7</td><td>26.7</td><td>21.1</td><td>21.1</td><td>5.6</td><td>5.6</td></tr><tr><td>Deferred proceeds (sales of receivables) (Note 5(b))</td><td>203.5</td><td>203.5</td><td>203.5</td><td>203.5</td><td>—</td><td>—</td></tr><tr><td>Capitalization and liabilities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Long-term debt (including current maturities) (Note 9 (b))</td><td>3,336.3</td><td>3,712.3</td><td>1,558.4</td><td>1,726.4</td><td>1,332.1</td><td>1,532.9</td></tr><tr><td>Cumulative preferred stock (Note 8)</td><td>200.0</td><td>167.0</td><td>200.0</td><td>167.0</td><td>—</td><td>—</td></tr><tr><td>Derivative liabilities (Note 15)</td><td>20.8</td><td>20.8</td><td>5.2</td><td>5.2</td><td>15.6</td><td>15.6</td></tr></table>

Valuation Hierarchy - Fair value measurement accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. At each reporting date, Level 1 items included IPL's 5.1% cumulative preferred stock.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. At each reporting date, Level 2 items included certain non-exchange traded commodity contracts and substantially all of the long-term debt instruments.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation. At each reporting date, Level 3 items included FTRs, certain non-exchange traded commodity contracts and IPL's deferred proceeds.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.



## Valuation Techniques -

Derivative assets and derivative liabilities - Derivative instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs, and risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:

<table><tr><td>Risk management purpose</td><td>Type of instrument</td></tr><tr><td>Mitigate pricing volatility for:</td><td></td></tr><tr><td>Electricity purchased to supply customers</td><td>Electric swap and physical forward contracts (IPL and WPL)</td></tr><tr><td>Fuel used to supply natural gas-fired EGUs</td><td>Natural gas swap contracts (IPL and WPL)</td></tr><tr><td></td><td>Natural gas options and physical forward contracts (WPL)</td></tr><tr><td>Natural gas supplied to retail customers</td><td>Natural gas options and physical forward contracts (IPL and WPL)</td></tr><tr><td></td><td>Natural gas swap contracts (IPL)</td></tr><tr><td>Fuel used at coal-fired EGUs</td><td>Coal physical forward contracts (IPL and WPL)</td></tr><tr><td>Optimize the value of natural gas pipeline capacity</td><td>Natural gas physical forward contracts (IPL and WPL)</td></tr><tr><td></td><td>Natural gas swap contracts (IPL)</td></tr><tr><td>Manage transmission congestion costs</td><td>FTRs (IPL and WPL)</td></tr></table>

Swap, option and physical forward commodity contracts were non-exchange-based derivative instruments and were valued using indicative price quotations from a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations, from market publications or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. A portion of these indicative price quotations were corroborated using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. Commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. Swap, option and physical forward commodity contracts were predominantly at liquid trading points. FTRs were valued using monthly or annual auction shadow prices from relevant auctions and were categorized as Level 3. Refer to Note 15 for additional details of derivative assets and derivative liabilities.

The fair value measurements of Level 3 derivative instruments include observable and unobservable inputs. The observable inputs are obtained from third-party pricing sources, counterparties and brokers and include bids, offers, historical transactions (including historical price differences between locations with both observable and unobservable prices) and executed trades. The significant unobservable inputs used in the fair value measurement of commodity contracts are forecasted electricity, natural gas and coal prices, and the expected volatility of such prices. Significant changes in any of those inputs would result in a significantly lower or higher fair value measurement.

Deferred proceeds (sales of receivables) - The fair value of IPL's deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the cost approach valuation technique. The fair value represents the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold due to the short-term nature of the collection period. These inputs were considered unobservable and deferred proceeds were categorized as Level 3. Deferred proceeds represent IPL's maximum exposure to loss related to the receivables sold. Refer to Note 5(b) for additional information regarding deferred proceeds.

Long-term debt (including current maturities) - The fair value of long-term debt instruments was based on quoted market prices for similar liabilities at each reporting date or on a discounted cash flow methodology, which utilizes assumptions of current market pricing curves at each reporting date. Refer to Note 9(b) for additional information regarding long-term debt.

Cumulative preferred stock - The fair value of IPL's 5.1% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange at each reporting date. Refer to Note 8 for additional information regarding cumulative preferred stock.



Items subject to fair value measurement disclosure requirements at December 31 were as follows (in millions):

<table><tr><td rowspan="2">Alliant Energy</td><td colspan="6">2014</td><td colspan="4">2013</td></tr><tr><td>Fair Value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Fair Value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td></td><td></td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Derivatives - commodity contracts</td><td>$38.6</td><td>$—</td><td>$2.6</td><td>$36.0</td><td>$26.7</td><td>$—</td><td>$4.7</td><td>$22.0</td><td></td><td></td></tr><tr><td>Deferred proceeds</td><td>177.2</td><td>—</td><td>—</td><td>177.2</td><td>203.5</td><td>—</td><td>—</td><td>203.5</td><td></td><td></td></tr><tr><td>Capitalization and liabilities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Long-term debt (including current maturities)</td><td>4,418.2</td><td>—</td><td>4,414.9</td><td>3.3</td><td>3,712.3</td><td>—</td><td>3,711.8</td><td>0.5</td><td></td><td></td></tr><tr><td>Cumulative preferred stock</td><td>200.2</td><td>200.2</td><td>—</td><td>—</td><td>167.0</td><td>167.0</td><td>—</td><td>—</td><td></td><td></td></tr><tr><td>Derivatives - commodity contracts</td><td>37.6</td><td>—</td><td>19.5</td><td>18.1</td><td>20.8</td><td>—</td><td>3.2</td><td>17.6</td><td></td><td></td></tr></table>

Unrealized gains and losses from derivative instruments are generally recorded with offsets to regulatory assets or regulatory liabilities, based on fuel and natural gas cost recovery mechanisms, as well as other specific regulatory authorizations. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities resulted in comparable changes to regulatory assets, and the changes in the fair value of derivative assets resulted in comparable changes to regulatory liabilities.

Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):

<table><tr><td rowspan="3">Alliant Energy</td><td colspan="4">Commodity Contract Derivative</td></tr><tr><td colspan="2">Assets and (Liabilities), net</td><td colspan="2">Deferred Proceeds</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Beginning balance, January 1</td><td>$4.4</td><td>$11.9</td><td>$203.5</td><td>$66.8</td></tr><tr><td>Total net gains (losses) (realized/unrealized) included in changes in net assets</td><td>11.1</td><td>(12.7)</td><td>—</td><td>—</td></tr><tr><td>Transfers into Level 3 (a)</td><td>—</td><td>0.1</td><td>—</td><td>—</td></tr><tr><td>Transfers out of Level 3 (b)</td><td>—</td><td>2.0</td><td>—</td><td>—</td></tr><tr><td>Purchases</td><td>76.7</td><td>50.9</td><td>—</td><td>—</td></tr><tr><td>Sales</td><td>(2.2)</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Settlements (c)</td><td>(72.1)</td><td>(47.8)</td><td>(26.3)</td><td>136.7</td></tr><tr><td>Ending balance, December 31</td><td>$17.9</td><td>$4.4</td><td>$177.2</td><td>$203.5</td></tr><tr><td>The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at December 31</td><td>($0.4)</td><td>($12.7)</td><td>$—</td><td>$—</td></tr></table>

(a) Markets for similar assets and liabilities became inactive and observable market inputs became unavailable for transfers into Level 3. The transfers were valued as of the beginning of the period.

(b) Observable market inputs became available for certain commodity contracts previously classified as Level 3 for transfers out of Level 3. The transfers were valued as of the beginning of the period.

(c) Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold.

Commodity Contracts - The fair value of electric, natural gas and coal commodity contracts categorized as Level 3 was recognized as net derivative assets (liabilities) at December 31 as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>Excluding FTRs</td><td>FTRs</td><td>Excluding FTRs</td><td>FTRs</td><td>Excluding FTRs</td><td>FTRs</td></tr><tr><td>2014</td><td>($7.0)</td><td>$24.9</td><td>($3.2)</td><td>$22.6</td><td>($3.8)</td><td>$2.3</td></tr><tr><td>2013</td><td>(13.9)</td><td>18.3</td><td>(2.1)</td><td>16.7</td><td>(11.8)</td><td>1.6</td></tr></table>



## (15) DERIVATIVE INSTRUMENTS

## Commodity Derivatives -

Purpose - Derivative instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. Refer to Note 14 for detailed discussion of derivative instruments.

Notional Amounts - As of December 31, 2014, gross notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts, FTRs and coal contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):

<table><tr><td></td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>Total</td></tr><tr><td>Electricity (MWhs)</td><td>4,067</td><td>1,553</td><td>1,314</td><td>1,314</td><td>8,248</td></tr><tr><td>FTRs (MWhs)</td><td>9,505</td><td>—</td><td>—</td><td>—</td><td>9,505</td></tr><tr><td>Natural gas (Dths)</td><td>56,250</td><td>20,225</td><td>1,829</td><td>—</td><td>78,304</td></tr><tr><td>Coal (tons)</td><td>1,490</td><td>1,899</td><td>1,073</td><td>1,113</td><td>5,575</td></tr></table>

Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheet as assets or liabilities. At December 31, the fair values of current derivative assets are included in “Other current assets,” non-current derivative assets are included in “Deferred charges and other,” current derivative liabilities are included in “Other current liabilities” and non-current derivative liabilities are included in “Other liabilities” on the balance sheets as follows (in millions):

<table><tr><td rowspan="2">Commodity contracts</td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Current derivative assets</td><td>$30.5</td><td>$25.6</td><td>$27.4</td><td>$20.2</td><td>$3.1</td><td>$5.4</td></tr><tr><td>Non-current derivative assets</td><td>8.1</td><td>1.1</td><td>0.6</td><td>0.9</td><td>7.5</td><td>0.2</td></tr><tr><td>Current derivative liabilities</td><td>28.1</td><td>6.7</td><td>16.4</td><td>3.0</td><td>11.7</td><td>3.7</td></tr><tr><td>Non-current derivative liabilities</td><td>9.5</td><td>14.1</td><td>3.1</td><td>2.2</td><td>6.4</td><td>11.9</td></tr></table>

Changes in unrealized gains (losses) from commodity derivative instruments were recorded with offsets to regulatory assets or regulatory liabilities on the balance sheets as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">Alliant Energy</td><td colspan="3">IPL</td><td colspan="3">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2012</td><td>2014</td><td>2013</td><td>2</td></tr><tr><td>Regulatory assets</td><td>($13.8)</td><td>($14.7)</td><td>($37.9)</td><td>($5.8)</td><td>($6.6)</td><td>($16.8)</td><td>($8.0)</td><td>($8.1)</td><td>($21.1)</td></tr><tr><td>Regulatory liabilities</td><td>37.4</td><td>22.2</td><td>20.3</td><td>10.2</td><td>11.8</td><td>13.5</td><td>27.2</td><td>10.4</td><td>6.8</td></tr></table>

Net unrealized gains (losses) from commodity contracts during 2014, 2013 and 2012 were primarily due to changes in electricity and natural gas prices during such periods.

Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided in the form of letters of credit or cash collateral up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. At December 31, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position, as well as amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered, were as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="3">2014</td><td colspan="3">2013</td></tr><tr><td>Alliant Energy</td><td>IPL</td><td>WPL</td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Aggregate fair value</td><td>$37.6</td><td>$19.5</td><td>$18.1</td><td>$20.8</td><td>$5.2</td><td>$15.6</td></tr><tr><td>Credit support to be posted if triggered</td><td>37.4</td><td>19.5</td><td>17.9</td><td>20.8</td><td>5.2</td><td>15.6</td></tr></table>



Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, derivative assets and derivative liabilities related to commodity contracts would have been presented on the balance sheets at December 31 as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>Gross (as reported)</td><td>Net</td><td>Gross (as reported)</td><td>Net</td><td>Gross (as reported)</td><td>Net</td></tr><tr><td>2014</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Derivative assets</td><td>$38.6</td><td>$33.0</td><td>$28.0</td><td>$24.7</td><td>$10.6</td><td>$8.3</td></tr><tr><td>Derivative liabilities</td><td>37.6</td><td>32.0</td><td>19.5</td><td>16.2</td><td>18.1</td><td>15.8</td></tr><tr><td>2013</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Derivative assets</td><td>26.7</td><td>23.5</td><td>21.1</td><td>19.5</td><td>5.6</td><td>4.0</td></tr><tr><td>Derivative liabilities</td><td>20.8</td><td>17.6</td><td>5.2</td><td>3.6</td><td>15.6</td><td>14.0</td></tr></table>

Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.

## (16) COMMITMENTS AND CONTINGENCIES

(a) Capital Purchase Obligations - Various contractual obligations contain minimum future commitments related to capital expenditures for certain construction projects. IPL's projects include the construction of Marshalltown and the installation of a scrubber at Lansing Unit 4 to reduce SO2 emissions. WPL's projects include the installation of a scrubber and baghouse at Edgewater Unit 5 to reduce SO2 and mercury emissions, and generation maintenance and performance improvements at Columbia Units 1 and 2. At December 31, 2014, Alliant Energy's, IPL's and WPL's minimum future commitments related to certain contractual obligations for these projects were $25 million, $6 million and $19 million, respectively.

(b) Operating Expense Purchase Obligations - Various commodity supply, transportation and storage contracts meet obligations to provide electricity and natural gas to utility customers. Other operating expense purchase obligations with various vendors provide other goods and services. At December 31, 2014, minimum future commitments related to these operating expense purchase obligations were as follows (in millions):

<table><tr><td>Alliant Energy</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>Thereafter</td><td>Total</td></tr><tr><td>Purchased power (a):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>DAEC (IPL) (b)</td><td>$119</td><td>$125</td><td>$138</td><td>$131</td><td>$143</td><td>$882</td><td>$1,538</td></tr><tr><td>Other</td><td>74</td><td>46</td><td>44</td><td>44</td><td>—</td><td>—</td><td>208</td></tr><tr><td></td><td>193</td><td>171</td><td>182</td><td>175</td><td>143</td><td>882</td><td>1,746</td></tr><tr><td>Natural gas</td><td>175</td><td>69</td><td>23</td><td>5</td><td>2</td><td>4</td><td>278</td></tr><tr><td>Coal</td><td>124</td><td>78</td><td>47</td><td>34</td><td>8</td><td>—</td><td>291</td></tr><tr><td>SO2 emission allowances (c)</td><td>12</td><td>14</td><td>8</td><td>—</td><td>—</td><td>—</td><td>34</td></tr><tr><td>Other (d)</td><td>10</td><td>1</td><td>—</td><td>—</td><td>—</td><td>—</td><td>11</td></tr><tr><td></td><td>$514</td><td>$333</td><td>$260</td><td>$214</td><td>$153</td><td>$886</td><td>$2,360</td></tr></table>

(a) Includes payments required by PPAs for capacity rights and minimum quantities of MWhs required to be purchased. Refer to Note 18 for additional information on purchased power transactions.

(b) Includes commitments incurred under a PPA, which grants IPL rights to purchase up to 431 MWs of capacity and the resulting energy from DAEC for a term through December 31, 2025. If energy delivered is less than the targeted energy amount, an adjustment payment will be made to IPL, which will be reflected in IPL's fuel adjustment clause.

(c) Refer to Note 2 for discussion of $34 million of charges recognized by Alliant Energy in 2011 for forward contracts to purchase SO2 emission allowances.

(d) Includes individual commitments incurred during the normal course of business that exceeded $1 million at December 31, 2014.

Certain contracts are considered leases and are therefore not included here, but are included in Note 10.



## (c) Legal Proceedings -

Flood Damage Claims - In June 2013, several plaintiffs purporting to represent a class of residential and commercial property owners filed a complaint against CRANDIC, Alliant Energy and various other defendants in the Iowa District Court for Linn County. Plaintiffs assert claims of negligence and strict liability based on their allegations that CRANDIC (along with other defendants) caused or exacerbated flooding of the Cedar River in June 2008. In July 2013, the case was removed from state court to federal court based on federal jurisdiction. In September 2013, the U.S. District Court for the Northern District of Iowa dismissed the Plaintiffs' claims and transferred the case for resolution to the Surface Transportation Board, the administrative agency that oversees the Interstate Commerce Commission Termination Act. In October 2013, the Plaintiffs appealed the federal court's dismissal of the case to the Eighth Circuit Court of Appeals. Alliant Energy and CRANDIC believe the case is without merit and will continue to vigorously contest the case. As a result, Alliant Energy does not currently believe any material losses from these claims are both probable and reasonably estimated, and therefore, has not recognized any material loss contingency amounts for this complaint as of December 31, 2014. Due to the early stages of the claim and the lack of specific damages identified, Alliant Energy is currently unable to provide an estimate of potential loss or range of potential loss.

Other - Alliant Energy, IPL and WPL are involved in other legal and administrative proceedings before various courts and agencies with respect to matters arising in the ordinary course of business. Although unable to predict the outcome of these matters, Alliant Energy, IPL and WPL believe that appropriate reserves have been established and final disposition of these actions will not have a material effect on their financial condition or results of operations.

## (d) Guarantees and Indemnifications -

RMT - In 2013, Alliant Energy sold RMT. RMT provided renewable energy services, including construction and high voltage connection services for wind and solar projects. As part of the sale, Alliant Energy indemnified the buyer for any claims, including claims of warranty under the project obligations that were commenced or are based on actions that occurred prior to the sale, except for liabilities already accounted for through adjustments to the purchase price. The indemnification obligations either cease to exist when the statute of limitation for such claims is met or, in the case of RMT's projects, when the warranty period under the agreements expires. The warranty periods for RMT's projects generally range from 12 to 60 months with the latest expiring in 2016.

Alliant Energy also continues to guarantee RMT’s performance obligations related to certain of RMT’s projects that were commenced prior to Alliant Energy’s sale of RMT. As of December 31, 2014, Alliant Energy had $251 million of performance guarantees outstanding with $128 million, $48 million and $75 million currently expected to expire in 2015, 2016 and 2017, respectively. The expiration of these performance guarantees may be extended depending on when all valid warranty claims are resolved for the respective projects.

Although Alliant Energy has received warranty claims related to certain of these projects, it does not currently believe that material losses are both probable and reasonably estimated, and therefore, has not recognized any material liabilities related to these matters as of December 31, 2014. Due to the early stages of the warranty claims, Alliant Energy is currently unable to provide an estimate of potential loss or range of potential loss. Refer to Note 19 for further discussion of RMT, including amounts, Alliant Energy recorded to “Operating expenses” in 2014 related to certain warranty claims.

Whiting Petroleum - In 2004, Alliant Energy sold its remaining interest in Whiting Petroleum. Whiting Petroleum is an independent oil and gas company. Alliant Energy continues to guarantee the obligations related to the abandonment of certain platforms off the coast of California and related onshore plant and equipment that were owned by Whiting Petroleum prior to Alliant Energy’s sale of Whiting Petroleum. The guarantee does not include a maximum limit. As of December 31, 2014, the present value of the abandonment obligations is estimated at $35 million. Alliant Energy believes that no payments will be made under this guarantee. Alliant Energy has not recognized any material liabilities related to this guarantee as of December 31, 2014.



(e) Environmental Matters - Alliant Energy, IPL and WPL are subject to environmental regulations as a result of their current and past operations. These regulations are designed to protect public health and the environment and have resulted in compliance, remediation, containment and monitoring obligations, which are recorded as environmental liabilities. At December 31, current environmental liabilities were included in “Other current liabilities” and non-current environmental liabilities were included in “Other liabilities” on the balance sheets as follows (in millions):

<table><tr><td rowspan="2"></td><td colspan="2">Alliant Energy</td><td colspan="2">IPL</td><td colspan="2">WPL</td></tr><tr><td>2014</td><td>2013</td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Current environmental liabilities</td><td>$2.0</td><td>$3.6</td><td>$1.7</td><td>$2.8</td><td>$0.3</td><td>$0.8</td></tr><tr><td>Non-current environmental liabilities</td><td>13.5</td><td>15.4</td><td>11.9</td><td>13.6</td><td>1.6</td><td>1.7</td></tr><tr><td></td><td>$15.5</td><td>$19.0</td><td>$13.6</td><td>$16.4</td><td>$1.9</td><td>$2.5</td></tr></table>

MGP Sites - IPL and WPL have current or previous ownership interests in various sites that are previously associated with the production of gas for which IPL and WPL have, or may have in the future, liability for investigation, remediation and monitoring costs. IPL and WPL are working pursuant to the requirements of various federal and state agencies to investigate, mitigate, prevent and remediate, where necessary, the environmental impacts to property, including natural resources, at and around these former MGP sites in order to protect public health and the environment. IPL and WPL are currently monitoring and/or remediating 25 and 5 sites, respectively. Included in IPL's sites is a Minnesota site for which responsibility of monitoring and/or remediating the site is expected to be transferred to the buyer as part of the anticipated sale of IPL's Minnesota natural gas distribution assets.

Environmental liabilities related to these MGP sites are recorded based upon periodic studies. Such amounts are based on the best current estimate of the remaining amount to be incurred for investigation, remediation and monitoring costs for those sites where the investigation process has been or is substantially completed, and the minimum of the estimated cost range for those sites where the investigation is in its earlier stages. There are inherent uncertainties associated with the estimated remaining costs for MGP projects primarily due to unknown site conditions and potential changes in regulatory agency requirements. It is possible that future cost estimates will be greater than current estimates as the investigation process proceeds and as additional facts become known. The amounts recognized as liabilities are reduced for expenditures incurred and are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted. At December 31, 2014, estimated future costs expected to be incurred for the investigation, remediation and monitoring of the MGP sites, as well as environmental liabilities recorded on the balance sheets for these sites, were as follows (in millions):

<table><tr><td></td><td>Alliant Energy</td><td>IPL</td><td>WPL</td></tr><tr><td>Range of estimated future costs</td><td>$12 - $31</td><td>$11 - $29</td><td>$1 - $2</td></tr><tr><td>Current and non-current environmental liabilities</td><td>16</td><td>14</td><td>2</td></tr></table>

Refer to Note 2 for discussion of regulatory assets recorded by IPL and WPL, which reflect the probable future rate recovery of MGP expenditures. Considering the current rate treatment, and assuming no material change therein, Alliant Energy, IPL and WPL believe that the clean-up costs incurred for these MGP sites will not have a material effect on their financial condition or results of operations. Settlement has been reached with all of IPL's and WPL's insurance carriers regarding reimbursement for their MGP-related costs and such amounts have been accounted for as directed by the applicable regulatory jurisdiction.

WPL Consent Decree - In 2009, the EPA sent a notice of violation to WPL as an owner and the operator of Edgewater, Nelson Dewey and Columbia alleging that the owners of such EGUs failed to comply with appropriate pre-construction review and permitting requirements and as a result violated the PSD program requirements, Title V Operating Permit requirements of the CAA and the Wisconsin SIP. In 2010, the Sierra Club filed complaints against WPL, as owner and operator of Nelson Dewey and Columbia, and separately as owner and operator of Edgewater, based on allegations that modifications were made at the facilities without complying with the PSD program requirements, Title V Operating Permit requirements of the CAA and state regulatory counterparts contained within the Wisconsin SIP designed to implement the CAA.



In April 2013, WPL, along with the other owners of Edgewater and Columbia, entered into a Consent Decree with the EPA and the Sierra Club to resolve the claims relating to Edgewater, Columbia and Nelson Dewey, while admitting no liability. In June 2013, the Consent Decree was approved by the Court, thereby resolving all claims against WPL. Under the Consent Decree, WPL is required to install the following emission controls systems:

• SCR system at Edgewater Unit 5 by May 1, 2013 (placed in service in 2012);

• Scrubbers and baghouses at Columbia Units 1 and 2 by December 31, 2014 (placed in service in 2014);

• Scrubber and baghouse at Edgewater Unit 5 by December 31, 2016; and

• SCR system at Columbia Unit 2 by December 31, 2018.

WPL is also required to fuel switch or retire Nelson Dewey Units 1 and 2 and Edgewater Unit 3 by December 31, 2015, and Edgewater Unit 4 by December 31, 2018. In addition, the Consent Decree establishes emission rate limits for SO \( _{2} \) , NO \( _{x} \)  and particulate matter for Columbia Units 1 and 2, Nelson Dewey Units 1 and 2, and Edgewater Units 4 and 5. The Consent Decree also includes annual plant-wide emission caps for SO \( _{2} \)  and NO \( _{x} \)  for Columbia, Edgewater and Nelson Dewey. In addition, WPL will complete approximately 7 million in environmental mitigation projects.

Final recovery of the costs expected to be incurred related to the Consent Decree will be decided by the PSCW in future rate cases or other proceedings. Alliant Energy and WPL currently expect to recover any material costs incurred by WPL related to compliance with the terms of the Consent Decree from WPL's electric customers, except for costs related to certain of the environmental mitigation projects.

Other Environmental Contingencies - In addition to the environmental liabilities discussed above, various environmental rules are monitored that may have a significant impact on future operations. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Given uncertainties regarding the outcome, timing and compliance plans for these environmental matters, the complete financial impact of each of these rules is not able to be determined; however future capital investments and/or modifications to EGUs to comply with certain of these rules could be significant. Specific current, proposed or potential environmental matters are included below, along with a brief description of these environmental rules.

## Air Quality -

CSAPR is an emissions trading program that requires SO \( _{2} \)  and NO \( _{x} \)  emissions reductions at certain IPL and WPL fossil-fueled EGUs through installation of emission controls and/or purchases of allowances. Compliance with emissions limits began in 2015, with additional emissions limits reductions beginning in 2017.

CAVR requires states to develop and implement plans to address visibility impairment in designated national parks and wilderness areas. These implementation plans require BART emission controls at certain IPL and WPL fossil-fueled EGUs and other additional measures needed for reducing state contributions to regional haze.

MATS Rule requires compliance with emission limits for mercury and other HAPs and work practice standards for existing coal-fired EGUs. Compliance is required by April 2015; however, an entity can request an additional year for compliance for certain EGUs. The Wisconsin DNR approved an extension to the MATS compliance deadline to April 2016 for WPL's Edgewater Unit 3 and Nelson Dewey Units 1 and 2.

Industrial Boiler and Process Heater MACT Rule requires compliance with HAPs emission limitations and work practice standards at certain IPL and WPL EGUs and fossil-fueled auxiliary boilers and process heaters located at EGUs by January 2016.

Ozone NAAQS Rule may require a reduction of NOx emissions in certain non-attainment areas based on classifications assigned by the EPA. In 2012, the EPA issued a final rule that classified Sheboygan County in Wisconsin as marginal ozone non-attainment, which requires this area to achieve compliance with the ozone NAAQS by December 2015. WPL operates Edgewater and Sheboygan Falls in Sheboygan County, Wisconsin.

SO \( _{2} \)  NAAQS Rule establishes SO \( _{2} \)  standards for certain areas of the U.S. currently exceeding the SO \( _{2} \)  standard based on ambient monitoring data. IPL and WPL do not currently operate any EGUs in any areas that have non-attainment designations.



CAA Section 111(d) proposal would reduce CO \( _{2} \)  emissions from existing fossil-fueled EGUs. The EPA is proposing a two-part goal structure: an “interim goal” that each state meets an average threshold over the period from 2020 through 2029, and a “final goal” based on a three-year rolling average that each state meets beginning in 2030. State plans that provide details of how these guidelines are to be met would be required by June 30, 2016. The EPA’s proposal allows for a one-year extension to submit state-only plans and a two-year extension if a state elects to join a regional multi-state program. The EPA is currently expected to issue final standards in 2015.

CAA Section 111(b) proposal would establish CO \( _{2} \)  emissions limits for certain new fossil-fueled EGUs. Marshalltown and WPL’s proposed Riverside expansion are expected to be impacted by these proposed standards and would be constructed to achieve compliance with these standards. The EPA is currently expected to issue final standards in 2015.

## Water Quality -

Section 316(b) of the Federal Clean Water Act regulates cooling water intake structures and minimizes adverse environmental impacts to fish and other aquatic life. Compliance will be incorporated during periodic facility permit renewal cycles, with final compliance anticipated by 2022.

Effluent Limitation Guidelines proposal would require changes to discharge limits for wastewater from steam generating facilities. Compliance would be required after July 1, 2017 but before July 1, 2022, depending on each facility’s wastewater permit cycle for existing steam generating facilities and immediately upon operation for new steam generating facilities constructed after the issuance of the final guidelines.

Hydroelectric Fish Passage Device - WPL is currently required to install an agency-approved fish passage device at its Prairie du Sac hydro plant by December 31, 2020.

## Land and Solid Waste -

CCR Rule establishes minimum criteria for disposing of CCR in landfills and surface impoundments (ash ponds), and allows for continued operation of ash ponds if they meet certain performance criteria. The schedule for compliance with this rule has not yet been established.

(f) Credit Risk - IPL and WPL provide regulated electricity and natural gas services to residential, commercial, industrial and wholesale customers in the Midwest region of the U.S. The geographic concentration of these customers did not contribute significantly to overall credit risk exposure. In addition, as a result of a diverse customer base, IPL and WPL did not have any significant credit risk concentration for receivables arising from the sale of electricity or natural gas services.

Alliant Energy, IPL and WPL are subject to credit risk related to the ability of counterparties to meet their contractual payment obligations or the potential non-performance of counterparties to deliver contracted commodities and other goods or services at the contracted price. IPL and WPL are typically net buyers of commodities (primarily electricity, coal and natural gas) required to provide regulated electricity and natural gas services to their customers. As a result, IPL and WPL are also subject to credit risk related to their counterparties' failures to deliver commodities at the contracted price.

Credit policies are maintained to mitigate credit risk. These credit policies include evaluation of the financial condition of certain counterparties, use of credit risk-related contingent provisions in certain commodity agreements that require credit support from counterparties that exceed certain exposure limits, diversification of counterparties to reduce concentrations of credit risk and the use of standardized agreements that facilitate the netting of cash flows associated with certain counterparties.

IPL has a PPA that grants it rights to purchase capacity and the resulting energy from DAEC through December 31, 2025. This PPA exposes Alliant Energy and IPL to risk of counterparty non-performance. However, financial risk is mitigated by IPL’s fuel-related cost recovery mechanisms. Refer to Note 16(b) for further discussion of the DAEC PPA.

Based on these credit policies, counterparty diversification and utility cost recovery mechanisms, it is unlikely that counterparty non-performance would have a material effect on financial condition or results of operations. However, there is no assurance that these items will protect against all losses from counterparty non-performance.

Refer to Notes 5(a) and 15 for details of allowances for doubtful accounts and credit risk-related contingent features, respectively.



## (17) SEGMENTS OF BUSINESS

Alliant Energy - Alliant Energy’s principal businesses as of December 31, 2014 are:

- Utility - includes the operations of IPL and WPL, which serve customers in Iowa, Wisconsin and Minnesota. The utility business has three reportable segments: a) utility electric operations; b) utility gas operations; and c) utility other, which includes steam operations and the unallocated portions of the utility business. Various line items in the following tables are not allocated to the electric and gas segments for management reporting purposes, and therefore, are included only in “Total Utility.”

- Non-regulated, Parent and Other - includes the operations of Resources and its subsidiaries, Corporate Services, the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. Resources’ businesses include Transportation, Non-regulated Generation and other non-regulated investments described in Note 1(a).

Alliant Energy’s administrative support services are directly charged to the applicable segment where practicable. In all other cases, administrative support services are allocated to the applicable segment based on services agreements. Intersegment revenues were not material to Alliant Energy’s operations and there was no single customer whose revenues were 10% or more of Alliant Energy’s consolidated revenues.

Certain financial information relating to Alliant Energy’s business segments, products and services and geographic information was as follows (in millions):

<table><tr><td rowspan="2">2014</td><td colspan="4">Utility</td><td rowspan="2">Non-Regulated, Parent and Other</td><td rowspan="2">Alliant Energy Consolidated</td></tr><tr><td>Electric</td><td>Gas</td><td>Other</td><td>Total</td></tr><tr><td>Operating revenues</td><td>$2,713.6</td><td>$517.5</td><td>$66.1</td><td>$3,297.2</td><td>$53.1</td><td>$3,350.3</td></tr><tr><td>Depreciation and amortization</td><td>347.0</td><td>29.9</td><td>1.8</td><td>378.7</td><td>9.4</td><td>388.1</td></tr><tr><td>Operating income</td><td>442.4</td><td>53.8</td><td>14.0</td><td>510.2</td><td>33.4</td><td>543.6</td></tr><tr><td>Interest expense</td><td></td><td></td><td></td><td>176.3</td><td>4.3</td><td>180.6</td></tr><tr><td>Equity income from unconsolidated investments, net</td><td>(42.8)</td><td>—</td><td>—</td><td>(42.8)</td><td>2.4</td><td>(40.4)</td></tr><tr><td>Income taxes</td><td></td><td></td><td></td><td>33.9</td><td>10.4</td><td>44.3</td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td></td><td></td><td></td><td>364.5</td><td>18.6</td><td>383.1</td></tr><tr><td>Total assets</td><td>9,660.4</td><td>913.5</td><td>1,016.1</td><td>11,590.0</td><td>495.9</td><td>12,085.9</td></tr><tr><td>Investments in equity method subsidiaries</td><td>294.3</td><td>—</td><td>—</td><td>294.3</td><td>2.3</td><td>296.6</td></tr><tr><td>Construction and acquisition expenditures</td><td>774.8</td><td>63.2</td><td>0.9</td><td>838.9</td><td>63.9</td><td>902.8</td></tr></table>

<table><tr><td rowspan="2">2013</td><td colspan="4">Utility</td><td rowspan="2">Non-Regulated, Parent and Other</td><td rowspan="2">Alliant Energy Consolidated</td></tr><tr><td>Electric</td><td>Gas</td><td>Other</td><td>Total</td></tr><tr><td>Operating revenues</td><td>$2,689.0</td><td>$464.8</td><td>$71.3</td><td>$3,225.1</td><td>$51.7</td><td>$3,276.8</td></tr><tr><td>Depreciation and amortization</td><td>333.0</td><td>28.8</td><td>1.5</td><td>363.3</td><td>7.6</td><td>370.9</td></tr><tr><td>Operating income</td><td>444.5</td><td>57.3</td><td>6.3</td><td>508.1</td><td>25.8</td><td>533.9</td></tr><tr><td>Interest expense</td><td></td><td></td><td></td><td>166.3</td><td>6.5</td><td>172.8</td></tr><tr><td>Equity income from unconsolidated investments, net</td><td>(43.7)</td><td>—</td><td>—</td><td>(43.7)</td><td>—</td><td>(43.7)</td></tr><tr><td>Income taxes</td><td></td><td></td><td></td><td>49.3</td><td>4.6</td><td>53.9</td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td></td><td></td><td></td><td>349.5</td><td>8.8</td><td>358.3</td></tr><tr><td>Total assets</td><td>9,018.6</td><td>859.3</td><td>732.5</td><td>10,610.4</td><td>502.0</td><td>11,112.4</td></tr><tr><td>Investments in equity method subsidiaries</td><td>279.1</td><td>—</td><td>—</td><td>279.1</td><td>2.3</td><td>281.4</td></tr><tr><td>Construction and acquisition expenditures</td><td>677.3</td><td>47.0</td><td>7.3</td><td>731.6</td><td>66.7</td><td>798.3</td></tr></table>



<table><tr><td rowspan="2">2012</td><td colspan="4">Utility</td><td rowspan="2">Non-Regulated, Parent and Other</td><td rowspan="2">Alliant Energy Consolidated</td></tr><tr><td>Electric</td><td>Gas</td><td>Other</td><td>Total</td></tr><tr><td>Operating revenues</td><td>$2,589.3</td><td>$396.3</td><td>$56.7</td><td>$3,042.3</td><td>$52.2</td><td>$3,094.5</td></tr><tr><td>Depreciation and amortization</td><td>299.3</td><td>29.1</td><td>1.4</td><td>329.8</td><td>2.6</td><td>332.4</td></tr><tr><td>Operating income</td><td>426.2</td><td>51.5</td><td>7.4</td><td>485.1</td><td>34.6</td><td>519.7</td></tr><tr><td>Interest expense</td><td></td><td></td><td></td><td>158.7</td><td>(2.0)</td><td>156.7</td></tr><tr><td>Equity (income) loss from unconsolidated investments, net</td><td>(42.1)</td><td>—</td><td>—</td><td>(42.1)</td><td>0.8</td><td>(41.3)</td></tr><tr><td>Income taxes</td><td></td><td></td><td></td><td>74.8</td><td>14.6</td><td>89.4</td></tr><tr><td>Net income attributable to Alliant Energy common shareowners</td><td></td><td></td><td></td><td>300.0</td><td>19.8</td><td>319.8</td></tr><tr><td>Total assets</td><td>8,438.8</td><td>814.8</td><td>966.0</td><td>10,219.6</td><td>565.9</td><td>10,785.5</td></tr><tr><td>Investments in equity method subsidiaries</td><td>264.3</td><td>—</td><td>—</td><td>264.3</td><td>2.3</td><td>266.6</td></tr><tr><td>Construction and acquisition expenditures</td><td>994.0</td><td>31.4</td><td>0.1</td><td>1,025.5</td><td>132.6</td><td>1,158.1</td></tr></table>

Products and Services - Alliant Energy’s consolidated operating revenues by segment, which were substantially all related to services, were as follows:

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Utility electric operations</td><td>81%</td><td>82%</td><td>84%</td></tr><tr><td>Utility gas operations</td><td>15%</td><td>14%</td><td>13%</td></tr><tr><td>Utility other</td><td>2%</td><td>2%</td><td>2%</td></tr><tr><td>Other</td><td>2%</td><td>2%</td><td>1%</td></tr><tr><td></td><td>100%</td><td>100%</td><td>100%</td></tr></table>

Geographic Information - At December 31, 2014, 2013 and 2012, Alliant Energy did not have any long-lived assets to be held and used in foreign countries.

## (18) RELATED PARTIES

ATC - Pursuant to various agreements, WPL receives a range of transmission services from ATC. WPL provides operation, maintenance, and construction services to ATC. WPL and ATC also bill each other for use of shared facilities owned by each party. The related amounts billed between the parties were as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>ATC billings to WPL</td><td>$96</td><td>$96</td><td>$90</td></tr><tr><td>WPL billings to ATC</td><td>9</td><td>12</td><td>11</td></tr></table>

As of December 31, 2014 and 2013, WPL owed ATC net amounts of $8 million and $8 million, respectively.

## (19) DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE

In January 2013, Alliant Energy sold RMT to narrow its strategic focus and risk profile. The operating results of RMT have been separately classified and reported as discontinued operations in Alliant Energy’s income statements. A summary of the components of discontinued operations in Alliant Energy’s income statements was as follows (in millions):

<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Operating revenues</td><td>$—</td><td>$0.9</td><td>$289.2</td></tr><tr><td>Operating expenses</td><td>3.7</td><td>9.9</td><td>297.0</td></tr><tr><td>Interest expense and other</td><td>—</td><td>—</td><td>0.7</td></tr><tr><td>Loss before income taxes</td><td>(3.7)</td><td>(9.0)</td><td>(8.5)</td></tr><tr><td>Income tax benefit</td><td>(1.3)</td><td>(3.1)</td><td>(3.4)</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>($2.4)</td><td>($5.9)</td><td>($5.1)</td></tr></table>

Refer to Note 16(d) for further discussion of RMT.



In December 2014, the MPUC issued an order approving the proposed sale of IPL’s Minnesota natural gas distribution assets. As a result, these assets qualified as held for sale as of December 31, 2014. As of December 31, 2014, Alliant Energy’s balance sheets included assets held for sale recorded in “Other current assets” and liabilities held for sale recorded in “Other current liabilities” as follows (in millions):

<table><tr><td>Assets held for sale:</td><td></td></tr><tr><td>Current assets</td><td>$1.1</td></tr><tr><td>Property, plant and equipment, net</td><td>11.0</td></tr><tr><td>Other assets</td><td>7.0</td></tr><tr><td>Total assets held for sale</td><td>19.1</td></tr><tr><td>Liabilities held for sale:</td><td></td></tr><tr><td>Current liabilities</td><td>1.0</td></tr><tr><td>Other liabilities</td><td>7.1</td></tr><tr><td>Total liabilities held for sale</td><td>8.1</td></tr><tr><td>Net assets held for sale</td><td>$11.0</td></tr></table>

The operating results of IPL’s Minnesota natural gas distribution assets have not been separately classified and reported as discontinued operations in Alliant Energy’s income statements. Refer to Note 1(p) for discussion of Alliant Energy’s and IPL’s evaluation of discontinued operations related to these assets. Refer to Note 3 for further discussion of IPL’s anticipated sale of its Minnesota natural gas distribution assets.

## (20) SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)

Alliant Energy - All “per share” references refer to earnings per diluted share. Summation of the individual quarters may not equal annual totals due to rounding. Refer to Note 19 for additional information on discontinued operations.

<table><tr><td rowspan="3"></td><td colspan="4">2014</td><td colspan="4">2013</td></tr><tr><td>March 31</td><td>June 30</td><td>Sep. 30</td><td>Dec. 31</td><td>March 31</td><td>June 30</td><td>Sep. 30</td><td>Dec.31</td></tr><tr><td colspan="8">(in millions, except per share data)</td></tr><tr><td>Operating revenues</td><td>$952.8</td><td>$750.3</td><td>$843.1</td><td>$804.1</td><td>$859.6</td><td>$718.0</td><td>$866.6</td><td>$832.6</td></tr><tr><td>Operating income</td><td>154.2</td><td>103.3</td><td>194.8</td><td>91.3</td><td>120.7</td><td>103.2</td><td>201.4</td><td>108.6</td></tr><tr><td>Amounts attributable to Alliant Energy common shareowners:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations, net of tax</td><td>108.0</td><td>62.1</td><td>155.2</td><td>60.2</td><td>72.9</td><td>65.9</td><td>158.9</td><td>66.5</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>—</td><td>(0.3)</td><td>(1.9)</td><td>(0.2)</td><td>(3.0)</td><td>(0.6)</td><td>(1.3)</td><td>(1.0)</td></tr><tr><td>Net income</td><td>108.0</td><td>61.8</td><td>153.3</td><td>60.0</td><td>69.9</td><td>65.3</td><td>157.6</td><td>65.5</td></tr><tr><td>Earnings per weighted average common share attributable to Alliant Energy common shareowners:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations, net of tax</td><td>0.97</td><td>0.56</td><td>1.40</td><td>0.54</td><td>0.66</td><td>0.59</td><td>1.43</td><td>0.60</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>—</td><td>—</td><td>(0.02)</td><td>—</td><td>(0.03)</td><td>—</td><td>(0.01)</td><td>(0.01)</td></tr><tr><td>Net income</td><td>0.97</td><td>0.56</td><td>1.38</td><td>0.54</td><td>0.63</td><td>0.59</td><td>1.42</td><td>0.59</td></tr></table>



## SELECTED FINANCIAL AND OPERATING STATISTICS

<table><tr><td>Financial Information</td><td>2014 (a)</td><td>2013 (a)</td><td>2012 (a)</td><td>2011</td><td>2010</td></tr><tr><td></td><td colspan="5">(dollars in millions, except per share data)</td></tr><tr><td>Income Statement Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues</td><td>$3,350.3</td><td>$3,276.8</td><td>$3,094.5</td><td>$3,221.4</td><td>$3,262.1</td></tr><tr><td>Income from continuing operations, net of tax</td><td>395.7</td><td>382.1</td><td>340.8</td><td>341.4</td><td>310.2</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>(2.4)</td><td>(5.9)</td><td>(5.1)</td><td>(19.5)</td><td>(3.9)</td></tr><tr><td>Net income</td><td>393.3</td><td>376.2</td><td>335.7</td><td>321.9</td><td>306.3</td></tr><tr><td>Amounts attributable to Alliant Energy common shareowners:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations, net of tax</td><td>385.5</td><td>364.2</td><td>324.9</td><td>323.1</td><td>291.5</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>(2.4)</td><td>(5.9)</td><td>(5.1)</td><td>(19.5)</td><td>(3.9)</td></tr><tr><td>Net income</td><td>383.1</td><td>358.3</td><td>319.8</td><td>303.6</td><td>287.6</td></tr><tr><td>Common Stock Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations, net of tax</td><td>$3.48</td><td>$3.29</td><td>$2.93</td><td>$2.92</td><td>$2.64</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>($0.02)</td><td>($0.06)</td><td>($0.04)</td><td>($0.18)</td><td>($0.04)</td></tr><tr><td>Net income</td><td>$3.46</td><td>$3.23</td><td>$2.89</td><td>$2.74</td><td>$2.60</td></tr><tr><td>Common shares outstanding at year-end (000s)</td><td>110,936</td><td>110,944</td><td>110,987</td><td>111,019</td><td>110,894</td></tr><tr><td>Dividends declared per common share</td><td>$2.04</td><td>$1.88</td><td>$1.80</td><td>$1.70</td><td>$1.58</td></tr><tr><td>Market value per share at year-end</td><td>$66.42</td><td>$51.60</td><td>$43.91</td><td>$44.11</td><td>$36.77</td></tr><tr><td>Book value per share at year-end</td><td>$31.00</td><td>$29.58</td><td>$28.25</td><td>$27.14</td><td>$26.09</td></tr><tr><td>Market capitalization at year-end</td><td>$7,368.4</td><td>$5,724.7</td><td>$4,873.4</td><td>$4,897.0</td><td>$4,077.6</td></tr><tr><td>Other Selected Financial Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash flows from operating activities</td><td>$891.6</td><td>$731.0</td><td>$841.1</td><td>$702.7</td><td>$984.9</td></tr><tr><td>Construction and acquisition expenditures</td><td>$902.8</td><td>$798.3</td><td>$1,158.1</td><td>$673.4</td><td>$866.9</td></tr><tr><td>Total assets at year-end</td><td>$12,085.9</td><td>$11,112.4</td><td>$10,785.5</td><td>$9,687.9</td><td>$9,282.9</td></tr><tr><td>Long-term obligations, net</td><td>$3,791.1</td><td>$3,338.1</td><td>$3,141.5</td><td>$2,708.0</td><td>$2,710.3</td></tr><tr><td>Times interest earned before income taxes (b)</td><td>3.44X</td><td>3.52X</td><td>3.75X</td><td>3.59X</td><td>3.81X</td></tr><tr><td>Capitalization ratios:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Common equity</td><td>45%</td><td>46%</td><td>47%</td><td>50%</td><td>49%</td></tr><tr><td>Preferred stock of subsidiaries</td><td>3%</td><td>3%</td><td>3%</td><td>3%</td><td>4%</td></tr><tr><td>Long- and short-term debt</td><td>52%</td><td>51%</td><td>50%</td><td>47%</td><td>47%</td></tr><tr><td>Total</td><td>100%</td><td>100%</td><td>100%</td><td>100%</td><td>100%</td></tr></table>

(a) Refer to “Results of Operations” in MDA for discussion of the 2014, 2013 and 2012 results of operations.

(b) Represents the sum of income from continuing operations before income taxes plus interest expense, divided by interest expense.



<table><tr><td>Electric Operating Information</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Operating Revenues (in millions):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>$994.5</td><td>$1,009.1</td><td>$975.9</td><td>$985.8</td><td>$1,001.5</td></tr><tr><td>Commercial</td><td>658.0</td><td>649.4</td><td>611.4</td><td>612.1</td><td>619.0</td></tr><tr><td>Industrial</td><td>799.0</td><td>765.4</td><td>741.8</td><td>748.9</td><td>762.8</td></tr><tr><td>Retail subtotal</td><td>2,451.5</td><td>2,423.9</td><td>2,329.1</td><td>2,346.8</td><td>2,383.3</td></tr><tr><td>Sales for resale:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Wholesale</td><td>206.6</td><td>195.4</td><td>187.6</td><td>189.8</td><td>196.8</td></tr><tr><td>Bulk power and other</td><td>2.9</td><td>17.7</td><td>23.8</td><td>52.2</td><td>44.1</td></tr><tr><td>Other</td><td>52.6</td><td>52.0</td><td>48.8</td><td>47.0</td><td>50.0</td></tr><tr><td>Total</td><td>$2,713.6</td><td>$2,689.0</td><td>$2,589.3</td><td>$2,635.8</td><td>$2,674.2</td></tr><tr><td>Electric Sales (000s MWh):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>7,697</td><td>7,824</td><td>7,679</td><td>7,740</td><td>7,836</td></tr><tr><td>Commercial</td><td>6,449</td><td>6,432</td><td>6,352</td><td>6,253</td><td>6,219</td></tr><tr><td>Industrial</td><td>11,821</td><td>11,471</td><td>11,555</td><td>11,504</td><td>11,213</td></tr><tr><td>Retail subtotal</td><td>25,967</td><td>25,727</td><td>25,586</td><td>25,497</td><td>25,268</td></tr><tr><td>Sales for resale:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Wholesale</td><td>3,586</td><td>3,564</td><td>3,317</td><td>3,372</td><td>3,325</td></tr><tr><td>Bulk power and other</td><td>335</td><td>763</td><td>1,303</td><td>1,757</td><td>1,378</td></tr><tr><td>Other</td><td>155</td><td>152</td><td>151</td><td>151</td><td>153</td></tr><tr><td>Total</td><td>30,043</td><td>30,206</td><td>30,357</td><td>30,777</td><td>30,124</td></tr><tr><td>Customers (End of Period):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>850,322</td><td>847,350</td><td>844,388</td><td>842,780</td><td>841,726</td></tr><tr><td>Commercial</td><td>139,138</td><td>138,520</td><td>137,791</td><td>136,732</td><td>135,832</td></tr><tr><td>Industrial</td><td>2,871</td><td>2,881</td><td>2,842</td><td>2,895</td><td>2,875</td></tr><tr><td>Other</td><td>3,662</td><td>3,657</td><td>3,647</td><td>3,638</td><td>3,632</td></tr><tr><td>Total</td><td>995,993</td><td>992,408</td><td>988,668</td><td>986,045</td><td>984,065</td></tr><tr><td>Other Selected Electric Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Maximum summer peak hour demand (MW)</td><td>5,426</td><td>5,820</td><td>5,886</td><td>5,734</td><td>5,425</td></tr><tr><td>Maximum winter peak hour demand (MW)</td><td>4,803</td><td>4,648</td><td>4,368</td><td>4,423</td><td>4,591</td></tr><tr><td>Cooling degree days (a):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cedar Rapids, Iowa (IPL) (normal - 755)</td><td>670</td><td>884</td><td>1,052</td><td>887</td><td>923</td></tr><tr><td>Madison, Wisconsin (WPL) (normal - 658)</td><td>620</td><td>709</td><td>1,070</td><td>814</td><td>829</td></tr><tr><td>Sources of electric energy (000s MWh):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Coal</td><td>13,818</td><td>14,873</td><td>14,680</td><td>16,440</td><td>16,366</td></tr><tr><td>Purchased power:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Nuclear (b)</td><td>3,133</td><td>5,544</td><td>5,483</td><td>5,483</td><td>5,667</td></tr><tr><td>Wind (c)</td><td>1,252</td><td>1,201</td><td>1,188</td><td>1,285</td><td>1,254</td></tr><tr><td>Other (c)</td><td>8,074</td><td>5,541</td><td>7,053</td><td>6,244</td><td>6,260</td></tr><tr><td>Gas</td><td>2,971</td><td>2,224</td><td>1,285</td><td>588</td><td>633</td></tr><tr><td>Wind (c)</td><td>1,390</td><td>1,375</td><td>1,198</td><td>1,188</td><td>588</td></tr><tr><td>Other (c)</td><td>212</td><td>200</td><td>183</td><td>225</td><td>232</td></tr><tr><td>Total</td><td>30,850</td><td>30,958</td><td>31,070</td><td>31,453</td><td>31,000</td></tr><tr><td>Revenue per KWh sold to retail customers (cents)</td><td>9.44</td><td>9.42</td><td>9.10</td><td>9.20</td><td>9.43</td></tr></table>

(a) Cooling degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical cooling degree days. Refer to “Gas Operating Information” below for details of heating degree days.

(b) 2013 MWhs include replacement energy provided under the Kewaunee PPA after Kewaunee was shut down in May 2013.

(c) All or some of the renewable energy attributes associated with generation from these sources may be used in future years to comply with renewable energy standards or other regulatory requirements, or sold to third parties in the form of renewable energy credits or other environmental commodities.



<table><tr><td>Gas Operating Information</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Operating Revenues (in millions):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>$287.5</td><td>$262.5</td><td>$224.3</td><td>$269.7</td><td>$273.7</td></tr><tr><td>Commercial</td><td>172.8</td><td>150.3</td><td>124.3</td><td>155.1</td><td>154.2</td></tr><tr><td>Industrial</td><td>23.4</td><td>21.1</td><td>16.7</td><td>24.5</td><td>27.3</td></tr><tr><td>Retail subtotal</td><td>483.7</td><td>433.9</td><td>365.3</td><td>449.3</td><td>455.2</td></tr><tr><td>Transportation/other</td><td>33.8</td><td>30.9</td><td>31.0</td><td>27.4</td><td>25.4</td></tr><tr><td>Total</td><td>$517.5</td><td>$464.8</td><td>$396.3</td><td>$476.7</td><td>$480.6</td></tr><tr><td>Gas Sales (000s Dths):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>31,718</td><td>29,916</td><td>23,071</td><td>26,891</td><td>27,128</td></tr><tr><td>Commercial</td><td>23,301</td><td>21,892</td><td>17,115</td><td>19,271</td><td>18,691</td></tr><tr><td>Industrial</td><td>3,710</td><td>3,803</td><td>3,068</td><td>3,848</td><td>4,158</td></tr><tr><td>Retail subtotal</td><td>58,729</td><td>55,611</td><td>43,254</td><td>50,010</td><td>49,977</td></tr><tr><td>Transportation/other</td><td>64,717</td><td>60,261</td><td>57,532</td><td>52,210</td><td>50,408</td></tr><tr><td>Total</td><td>123,446</td><td>115,872</td><td>100,786</td><td>102,220</td><td>100,385</td></tr><tr><td>Retail Customers at End of Period:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>373,319</td><td>370,895</td><td>368,708</td><td>367,497</td><td>366,261</td></tr><tr><td>Commercial</td><td>46,180</td><td>45,874</td><td>45,684</td><td>45,667</td><td>45,552</td></tr><tr><td>Industrial</td><td>428</td><td>441</td><td>456</td><td>496</td><td>549</td></tr><tr><td>Total</td><td>419,927</td><td>417,210</td><td>414,848</td><td>413,660</td><td>412,362</td></tr><tr><td>Other Selected Gas Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Heating degree days (a):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cedar Rapids, Iowa (IPL) (normal - 6,763)</td><td>7,657</td><td>7,232</td><td>5,901</td><td>6,745</td><td>6,868</td></tr><tr><td>Madison, Wisconsin (WPL) (normal - 7,031)</td><td>7,884</td><td>7,627</td><td>5,964</td><td>6,992</td><td>6,798</td></tr><tr><td>Revenue per Dth sold to retail customers</td><td>$8.24</td><td>$7.80</td><td>$8.45</td><td>$8.98</td><td>$9.11</td></tr><tr><td>Purchased gas costs per Dth sold to retail customers</td><td>$5.52</td><td>$4.90</td><td>$4.94</td><td>$5.88</td><td>$6.05</td></tr></table>

(a) Heating degree days are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical heating degree days.



Board of directors



Patricia L. Kampling
Chairman of the Board
President and Chief
Executive Officer
Director since 2012
Age 55



Darryl B. Hazel
Former Senior Vice
President, Ford Motor
Company
Director since 2006
Age 66



Dean C. Oestreich
Former Chairman
Pioneer Hi-Bred
International, Inc.
Director since 2005
Age 63



Ages are as of April 1, 2015. The election date represents the first year of board affiliation with the company.



For detailed information on each board member, please refer to the proxy statement for the 2015 Annual Meeting of Shareowners.



Singleton B.
McAllister
Partner, Husch Blackwell
Director since 2001
Age 63



Carol P. Sanders
Executive Vice President
and Chief Financial Officer
Sentry Insurance
Director since 2005
Age 48





Michael L. Bennett
Former President and
Chief Executive Officer
Terra Industries, Inc.
Director since 2003
Age 61



Ann K. Newhall
Former Executive Vice
President and Chief Operating
Officer, Rural Cellular Corp.
Director since 2003
Age 64



Susan D. Whiting
Former Vice Chair
Nielsen, N.V.
Director since 2013
Age 58

Alliant Energy corporate officers

Patricia L. Kampling, 55 [2005]*
Chairman, President and CEO

Thomas L. Hanson, 61 [1980]*
Senior Vice President
and Chief Financial Officer

James H. Gallegos, 54 [2010]*
Senior Vice President, General Counsel
and Corporate Secretary

Douglas R. Kopp, 61 [1992]*
Senior Vice President
President – Interstate Power and Light

John O. Larsen, 51 [1988]*
Senior Vice President
President – Wisconsin Power and Light

Vern A. Gebhart, 61 [1975]
Vice President

Terry L. Kouba, 56 [1981]
Vice President

John E. Kratchmer, 52 [1985]
Vice President and Treasurer

Gregg E. Lawry, 55 [1983]
Vice President

Linda K. Mattes, 54 [1982]
Vice President

Wayne A. Reschke, 59 [2009]
Vice President

Joel J. Schmidt, 51 [1988]
Vice President

Robert J. Durian, 44 [1992]*
Controller and Chief Accounting Officer

Benjamin M. Bilitz, 40 [2011]
Assistant Controller

Amy L. Cralam, 41 [2006]
Assistant General Counsel
and Assistant Corporate Secretary

Neil M. Krebsbach, 55 [1995]
Assistant Treasurer

Non-regulated business officer

Kevin P. Burke, 56 [1981]
President – Alliant Energy Transportation

 \( ^{*} \) Executive officer

Officers and ages are as of April 1, 2015.

Dates in brackets represent the year each person joined the company or a predecessor company that ultimately became part of Alliant Energy.



<table><tr><td>Stock Exchange Listings</td><td>Trading Exchange</td><td>Trading Symbol</td></tr><tr><td>Alliant Energy - Common</td><td>New York Stock Exchange</td><td>LNT</td></tr><tr><td>Interstate Power and Light Company - 5.1% Preferred</td><td>New York Stock Exchange</td><td>IPL Pr D</td></tr></table>

<table><tr><td colspan="6">Alliant Energy Common Stock Quarterly Price Ranges and Dividends</td></tr><tr><td></td><td colspan="2">2014</td><td colspan="3">2013</td></tr><tr><td>Quarter</td><td>High</td><td>Low</td><td>Dividend</td><td>High</td><td>Low</td></tr><tr><td>First</td><td>$56.99</td><td>$50.00</td><td>$ .51</td><td>$ 50.23</td><td>$ 43.73</td></tr><tr><td>Second</td><td>60.88</td><td>55.47</td><td>.51</td><td>53.52</td><td>46.79</td></tr><tr><td>Third</td><td>60.89</td><td>54.69</td><td>.51</td><td>54.18</td><td>48.17</td></tr><tr><td>Fourth</td><td>69.78</td><td>55.38</td><td>.51</td><td>53.69</td><td>48.83</td></tr><tr><td>Year</td><td>69.78</td><td>50.00</td><td>2.04</td><td>54.18</td><td>43.73</td></tr></table>

Alliant Energy Corporation 2014 year-end common stock closing price: $66.42.

## Annual Meeting

The 2015 Annual Meeting of Shareowners will be held on Thursday, May 7 at the Cedar Rapids Marriott, 1200 Collins Road NE, Cedar Rapids, Iowa at 10:30 a.m., Central Daylight Time (CDT).

## Form 10-K Information

Upon request, the Company will provide, without charge, copies of the Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission (SEC). All reports filed with the SEC are also available through our website at alliantenergy.com/investors.

## Analyst Inquiries

Inquiries from the financial community may be directed to:
Susan Trapp Gille
Manager – Investor Relations
4902 N. Biltmore Lane
Madison, WI 53718-2148
Phone: (608) 458-3956
Fax: (608) 458-0132
Email:
susangille@alliantenergy.com

## Shareowner Direct Plan

The Shareowner Direct Plan is available to all shareowners of record and first-time investors. Through the plan, shareowners may buy common stock directly through the company without paying any brokerage commissions. Full details are in the prospectus, which can be obtained through our website or by calling Wells Fargo Shareowner Services. Contact information is listed on this page.

## Electronic Access to Alliant Energy’s Annual Report, Proxy Statement and Form 10-K

Alliant Energy offers shareowners access to its Annual Report, Proxy Statement and Form 10-K online at alliantenergy.com/investors as a convenient and cost-effective alternative to mailing the printed materials.

Shareowners who have access to the Internet are encouraged to enroll in the electronic access program at the website: shareowneronline.com.

## Direct Deposit

Shareowners who have a desire to re-invest their dividends through the Shareowner Direct Plan may choose to have their quarterly dividend electronically deposited into their checking or savings account. Electronic deposit may be initiated or changed through the website at shareowneronline.com or by calling Wells Fargo Shareowner Services. Contact information is listed on this page.

## Duplicate Mailings

Shares owned by one person but held in different forms of the same name result in duplicate mailing of shareowner information at added expense to the Company. Such duplication can be eliminated only at the direction of the shareowner. Please notify Wells Fargo Shareowner Services in order to eliminate duplication. Contact information is listed on this page.

## 2015 Record and Dividend Payment Dates

Anticipated record and payment dates are as follows:

Common Stock

<table><tr><td>Record dates</td><td>Payment dates</td></tr><tr><td>Jan. 30</td><td>Feb. 13</td></tr><tr><td>Apr. 30</td><td>May 15</td></tr><tr><td>July 31</td><td>Aug. 14</td></tr><tr><td>Oct. 30</td><td>Nov. 13</td></tr></table>

Alliant Energy Corporation had 29,493 shareowners of record as of December 31, 2014. Shareowner records were maintained by Wells Fargo Shareowner Services in St. Paul, Minn.

## Stock Transfer Agent, Registrar and Dividend Payments

Wells Fargo Shareowner Services
1110 Centre Pointe Curve
Suite 101
MAC N9173-010
Mendota Heights, MN 55120
or
P.O. Box 64856
St. Paul, MN 55164-9442
Phone: 1-800-356-5343
7 a.m. to 7 p.m. CDT,
Monday through Friday.
shareowneronline.com
Fax: (651) 450-4033

## Historical Research/Other Company Information

For assistance with account history for calculating your cost basis or requests for copies of our Annual Report, Proxy Statement and Form 10-K, please contact Alliant Energy Shareowner Services in Madison, Wis. using the contact information below.

## Additional Corporate Inquiries/Information

Alliant Energy
Shareowner Services
4902 N. Biltmore Lane
P.O. Box 14720
Madison, WI 53708-0720
Phone: 1-800-353-1089
Email: shareownerservices@alliantenergy.com



ALLIANT ENERGY AT A GLANCE

344
wind turbines

generating enough
electricity to power
142,000 homes

$3 million

given for low-income
customers for energy
assistance in 2014
through our Hometown
Care program





40,922

trees planted from
2010-2014 to improve
our environment

LNT
THE WORLD
NYSE
The common stock of Alliant Energy Corp. is traded on the New York Stock Exchange under the symbol LNT.

OVER $100 million
invested in helping customers save energy in 2014

4,212

unique, creative problem-solvers at Alliant Energy bringing you safe, reliable and cost-effective energy solutions



Alliant Energy
Corporate Headquarters

4902 N. Blitmore Lane, Suite 1000
Madison, WI 53718-2148

General information: 1-800-ALLIANT

Individual shareowner questions
Alliant Energy Shareowner Services: 1-800-353-1089

Stock Transfer Agent and Registrar
Wells Fargo Shareowner Services: 1-800-356-5343

alliantenergy.com