Wisconsin Power and Light Announces Further Details of 2006 - 2013 Gen

Wisconsin Power and Light Announces Further Details of 2006 - 2013 Generation Plan

Company Announces Sites Selected to Expand Baseload Capacity Expansion, Plans to Expand Its Wind Portfolio, and Possible Wind Farm Ownership


MADISON, Wis., April 17 /PRNewswire-FirstCall/ -- Wisconsin Power and Light Company (WP&L), an Alliant Energy Company (NYSE: LNT - News), announced today new details of its utility supply plan for the 2006-2013 time period. The supply plan reflects increased growth in demand and the need to increase both baseload generation and wind generation resources to meet the growing energy needs of WP&L's customers.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020405/LNTLOGO )

"Electricity demand in our service territories has grown on average about 3 percent per year, and we expect this growth rate to continue," said Barb Swan, WP&L President. "The plan we've developed to meet this growing demand is balanced and will keep our rates competitive."

The plan, originally announced last August, called for the addition of 250 megawatts (MW) of baseload generation and 100 MW of wind. To achieve maximum economies of scale with chosen technology, WP&L has increased the size of the baseload plant to 300 MW. The company has also added an additional 200 MW of wind generation to the plan. The wind generation may be owned or purchased by the company.

Wind Farm Ownership Details

WP&L has entered into an option-to-purchase agreement with Midwest Wind Energy (MWE) for development rights to the Cedar Ridge Wind Farm, which is located in the Towns of Eden and Empire, approximately eight miles southeast of Fond du Lac, Wis. WP&L will decide by July 31, 2006 whether it will take ownership of Cedar Ridge Wind Farm. Since 2004, MWE has been procuring necessary entitlements, permits, leases and other development rights to allow for the construction and operation of approximately 40 wind turbines. WP&L is actively evaluating the site and MWE's remaining development activities. If WP&L decides to purchase the Cedar Ridge Wind Farm site, the company expects the wind farm will be fully operational by the end of 2007 and have a total nameplate capacity ranging from 80 to 99 MW.

The company is also actively pursuing additional wind purchase power agreements and ownership opportunities in Wisconsin, Iowa and Minnesota for WP&L customers.

Baseload Plant Details

After a thorough review of the transmission impacts on potential sites, the company plans to locate an additional unit at one of two existing baseload generating sites: Nelson Dewey Generating Station in Cassville, Wis., or Columbia Energy Center located in the Town of Pacific, near Portage, Wis. Wisconsin law requires a utility to propose alternatives in order to give the Public Service Commission of Wisconsin (PSCW) a choice of sites. The company's preferred option is to expand generation capacity at the current Nelson Dewey Generating Station by adding a 300 MW circulating fluidized bed (CFB) unit to the two existing coal fired units. The alternative option is to build a subcritical pulverized coal unit near two existing coal fired units at the Columbia Energy Center.

Preliminary transmission studies, conducted by the American Transmission Company (ATC), concluded an additional unit at Nelson Dewey would have a significant positive impact on the transmission system. According to the report, because of its unique location in the transmission system, an additional unit at Nelson Dewey has the potential to increase the import capability into the state of Wisconsin by 400 to 600 MW. Currently, Wisconsin's import capability is limited to approximately 1900 MW. Additional studies are currently underway by ATC.

Nelson Dewey Site

The Nelson Dewey site is the company's preferred site for the expansion based on the preliminary ATC studies and the site's access to a number of different fuels. Access to both rail and barge transportation allows for diverse fuel supplies to be utilized by the proposed plant's CFB boiler. Due to the inherent fuel flexibility of CFB boilers, they are well suited for use of renewable fuels such as dedicated energy crops, woody biomass, agricultural waste, and paper production waste. WP&L is currently studying the feasibility and economics of transporting and consuming renewable fuels at the site.

In addition to the new unit, the company plans to add emission control technologies to the two 100 MW existing units. If the new plant is constructed, electricity production at the site would increase by 150 percent, while emissions from the site would decrease significantly when compared to 2004 emissions levels. As proposed, site emissions are targeted to be reduced by approximately 90 percent for sulfur dioxide (SO2), 55 percent for nitrogen oxides (NOx), and 25 percent for mercury.

"Nelson Dewey is an excellent choice for expansion," said Kim Zuhlke, Vice President of New Energy Resources. "The ATC study suggests an additional unit at Nelson Dewey could increase our state's import capability significantly, perhaps by more than 25 percent. And, with the addition of emission control technology to units one and two, nitrogen oxide and sulfur dioxide emissions from the site and WPL's overall fleet will decrease dramatically." Zuhlke also noted the site's access to rail and barge transportation will allow the company to look at several types of fuel and delivery options.

Columbia Energy Site

Expanding generation capacity at the Columbia Energy Center is WP&L's alternative option. If chosen by the PSCW, the plant would utilize subcritical pulverized coal technology with the best available emission control technologies. Since 2002, WP&L has voluntarily reduced NOx emissions by 60 percent at the Columbia Energy Center and continues to evaluate options for future controls at Columbia.

"Columbia, too, is an excellent option for expansion," Zuhlke said. "The existing infrastructure would allow us to add an additional unit without creating a need for new transmission lines or new rail lines."

Renewable and Conservation Commitment

Over the last 10 years, WP&L has implemented energy efficiency programs, such as Shared Savings, that have reduced customer electricity needs by approximately 150 MW. Shared Savings is a WP&L sponsored program that assists agricultural, commercial and industrial customers in identifying and implementing energy efficiency programs. WP&L has asked for approval from the PSCW to increase Shared Savings spending for electric energy efficiency projects to $13 million to reduce future electricity demand. If the spending increase is approved, Shared Savings could reduce demand by 13 megawatts per year between 2005 and 2013. In addition, the company plans to add approximately 20 additional on-farm anaerobic digesters to harvest electricity from cow manure.

Community Payments

Power plants are property tax exempt; however, local communities do receive "Shared Revenue" payments from the state. Based on the Shared Revenue formula, if approved and constructed, the Nelson Dewey unit would provide approximately $580,000 to the Village of Cassville and $380,000 to Grant County annually. If the PSCW decides to approve WP&L's alternative site, an additional unit at Columbia would provide approximately $380,000 to the Town of Pacific and $580,000 to Columbia County.

WP&L plans to file applications for a Certificate of Authority for construction of the wind farm and a Certificate of Public Convenience and Necessity (CPCN) for the baseload plant with the PSCW later this summer, and will seek fixed-rate financing treatment for both facilities. At that time, WP&L will provide updated project cost information.

Alliant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and over 400,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the company's primary focus. Wisconsin Power and Light, the company's Wisconsin utility subsidiary, serves 446,000 electric and 177,000 natural gas customers. Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the company's Web site at http://www.alliantenergy.com .

This press release includes forward-looking statements. These forward- looking statements can be identified as such because the statements include words such as "expect" or "expects" or "targeted" or other words of similar import. Similarly, statements that describe future plans or strategies are also forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: state or federal regulatory actions or local government actions, including inability to obtain all necessary approvals and permits; unanticipated construction issues, delays or expenditures; political conditions in WP&L's service territories; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of the WP&L's plans; inability to find farming partners for anaerobic digesters; failure of equipment and technology to perform as expected; and economic conditions in WP&L's service territory. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and WP&L undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.




--------------------------------------------------------------------------------
Source: Alliant Energy Corporation



yahoo