LNT 6.30.2013 10-Q
Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
 
 
 
FORM 10-Q
 
 
 
 
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2013
 
or
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    
 
Commission
File Number
  
Name of Registrant, State of Incorporation,
Address of Principal Executive Offices and Telephone Number
  
IRS Employer
Identification Number
1-9894
  
ALLIANT ENERGY CORPORATION
  
39-1380265
 
  
(a Wisconsin corporation)
  
 
 
  
4902 N. Biltmore Lane
  
 
 
  
Madison, Wisconsin 53718
  
 
 
  
Telephone (608) 458-3311
  
 
 
 
 
1-4117
  
INTERSTATE POWER AND LIGHT COMPANY
  
42-0331370
 
  
(an Iowa corporation)
  
 
 
  
Alliant Energy Tower
  
 
 
  
Cedar Rapids, Iowa 52401
  
 
 
  
Telephone (319) 786-4411
  
 
 
 
 
0-337
  
WISCONSIN POWER AND LIGHT COMPANY
  
39-0714890
 
  
(a Wisconsin corporation)
  
 
 
  
4902 N. Biltmore Lane
  
 
 
  
Madison, Wisconsin 53718
  
 
 
  
Telephone (608) 458-3311
  
 
This combined Form 10-Q is separately filed by Alliant Energy Corporation, Interstate Power and Light Company and Wisconsin Power and Light Company. Information contained in the Form 10-Q relating to Interstate Power and Light Company and Wisconsin Power and Light Company is filed by each such registrant on its own behalf. Each of Interstate Power and Light Company and Wisconsin Power and Light Company makes no representation as to information relating to registrants other than itself.
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.    Yes x  No  ¨
Indicate by check mark whether the registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files).    Yes  x    No  ¨
Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, or smaller reporting companies. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large Accelerated Filer
  
Accelerated Filer
  
Non-accelerated Filer
  
Smaller Reporting Company Filer
Alliant Energy Corporation
x
  
 
  
 
  
 
Interstate Power and Light Company
 
  
 
  
x
  
 
Wisconsin Power and Light Company
 
  
 
  
x
  
 
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x
Number of shares outstanding of each class of common stock as of June 30, 2013:
Alliant Energy Corporation
Common stock, $0.01 par value, 110,943,669 shares outstanding
 
 
Interstate Power and Light Company
Common stock, $2.50 par value, 13,370,788 shares outstanding (all of which are owned beneficially and of record by Alliant Energy Corporation)
 
 
Wisconsin Power and Light Company
Common stock, $5 par value, 13,236,601 shares outstanding (all of which are owned beneficially and of record by Alliant Energy Corporation)



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TABLE OF CONTENTS
 
Page
Alliant Energy Corporation:
 
Interstate Power and Light Company:
 
Wisconsin Power and Light Company:
 


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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 “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 Corporation (Alliant Energy), Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (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 operating costs, fuel costs, transmission costs, deferred expenditures, capital expenditures, and remaining costs related to generating units 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 WPL’s retail electric and gas base rate freeze in Wisconsin through 2014;
weather effects on results of utility operations, including the 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 energy efficiency, franchise retention and customer owned generation on sales volumes and margins;
developments that adversely impact Alliant Energy’s, IPL’s and WPL’s ability to implement their strategic plan, including unanticipated issues with new emission controls equipment for various coal-fired electric generating facilities of IPL and WPL, IPL’s construction of its proposed natural gas-fired electric generating facility in Iowa, Alliant Energy Resources, LLC’s (Resources’) selling price of the electricity output from its 100 megawatt (MW) Franklin County wind project, and the potential decommissioning of certain generating facilities of IPL and WPL;
issues related to the availability of generating facilities and the supply and delivery of fuel and purchased electricity and the price thereof, including the ability to recover and to retain the recovery of purchased power, fuel and fuel-related costs through rates in a timely manner;
the impact that fuel and fuel-related prices may have on IPL’s and WPL’s customers’ demand for utility services;
issues associated with environmental remediation and environmental compliance, including compliance with the Consent Decree between WPL, the Sierra Club and the United States of America (U.S.) Environmental Protection Agency (EPA), future changes in environmental laws and regulations, and litigation associated with environmental requirements;
the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, or third parties, such as the Sierra Club;
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;
the direct or indirect effects resulting from terrorist incidents, including cyber terrorism, 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;
impacts of future tax benefits from deductions for repairs expenditures and mixed service costs and temporary differences from historical tax benefits from such deductions that are included in rates when the differences reverse in future periods;

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any material post-closing adjustments related to any past asset divestitures, including the sale of RMT, Inc. (RMT);
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 (RTO) energy and ancillary services markets, the impacts of potential future billing adjustments and cost allocation changes from RTOs and recovery of costs incurred;
unplanned outages, transmission constraints or operational issues impacting fossil or renewable generating facilities and risks related to recovery of resulting incremental costs through rates;
Alliant Energy’s ability to successfully pursue appropriate appeals with respect to, and any liabilities arising out of, the alleged violation of the Employee Retirement Income Security Act of 1974 (ERISA) by the Alliant Energy Cash Balance Pension Plan (Cash Balance Plan);
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 additional restructurings;
impacts that storms or natural disasters in IPL’s and WPL’s service territories, including floods, droughts and forest or prairie fires, may have on their operations and recovery of, and rate relief for, costs associated with restoration activities;
the impact of distributed generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity;
access to technological developments;
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;
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, changes in tax accounting methods and appeals with no material impact on earnings and cash flows; and
factors listed in Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Item 1A Risk Factors in the combined Annual Report on Form 10-K filed by Alliant Energy, IPL and WPL for the year ended December 31, 2012 (2012 Form 10-K).
Alliant Energy, IPL and WPL each assume no obligation, and disclaim any duty, to update the forward-looking statements in this report.


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PART I. FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
For the Three Months
 
For the Six Months
 
Ended June 30,
 
Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
(dollars in millions, except per share amounts)
Operating revenues:
 
 
 
 
 
 
 
Utility:
 
 
 
 
 
 
 
Electric

$612.1

 

$612.6

 

$1,245.3

 

$1,185.0

Gas
73.4

 
50.0

 
270.7

 
217.1

Other
17.8

 
13.8

 
35.0

 
27.5

Non-regulated
14.7

 
13.9

 
26.6

 
26.4

Total operating revenues
718.0

 
690.3

 
1,577.6

 
1,456.0

Operating expenses:
 
 
 
 
 
 
 
Utility:
 
 
 
 
 
 
 
Electric production fuel and energy purchases
158.0

 
168.9

 
337.1

 
328.8

Purchased electric capacity
52.0

 
70.7

 
109.0

 
132.2

Electric transmission service
99.6

 
79.4

 
203.3

 
160.8

Cost of gas sold
38.9

 
18.6

 
166.9

 
123.4

Other operation and maintenance
147.2

 
137.9

 
297.4

 
287.9

Non-regulated operation and maintenance
3.1

 
0.7

 
5.3

 
4.9

Depreciation and amortization
92.7

 
80.8

 
185.3

 
163.8

Taxes other than income taxes
23.3

 
24.5

 
49.4

 
49.8

Total operating expenses
614.8

 
581.5

 
1,353.7

 
1,251.6

Operating income
103.2

 
108.8

 
223.9

 
204.4

Interest expense and other:
 
 
 
 
 
 
 
Interest expense
42.5

 
38.6

 
85.1

 
77.5

Equity income from unconsolidated investments, net
(10.9
)
 
(10.6
)
 
(21.6
)
 
(20.0
)
Allowance for funds used during construction
(7.0
)
 
(4.8
)
 
(12.6
)
 
(8.6
)
Interest income and other
(0.3
)
 
(0.6
)
 
(1.1
)
 
(1.7
)
Total interest expense and other
24.3

 
22.6

 
49.8

 
47.2

Income from continuing operations before income taxes
78.9

 
86.2

 
174.1

 
157.2

Income taxes
10.5

 
16.8

 
22.6

 
44.5

Income from continuing operations, net of tax
68.4

 
69.4

 
151.5

 
112.7

Income (loss) from discontinued operations, net of tax
(0.6
)
 
0.4

 
(3.6
)
 
(4.0
)
Net income
67.8

 
69.8

 
147.9

 
108.7

Preferred dividend requirements of subsidiaries
2.5

 
3.9

 
12.7

 
7.9

Net income attributable to Alliant Energy common shareowners

$65.3

 

$65.9

 

$135.2

 

$100.8

Weighted average number of common shares outstanding (basic) (000s)
110,776

 
110,756

 
110,772

 
110,736

Weighted average number of common shares outstanding (diluted) (000s)
110,780

 
110,769

 
110,778

 
110,755

Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted):
 
 
 
 
 
 
 
Income from continuing operations, net of tax

$0.59

 

$0.60

 

$1.25

 

$0.95

Loss from discontinued operations, net of tax

 

 
(0.03
)
 
(0.04
)
Net income

$0.59

 

$0.60

 

$1.22

 

$0.91

Amounts attributable to Alliant Energy common shareowners:
 
 
 
 
 
 
 
Income from continuing operations, net of tax

$65.9

 

$65.5

 

$138.8

 

$104.8

Income (loss) from discontinued operations, net of tax
(0.6
)
 
0.4

 
(3.6
)
 
(4.0
)
Net income attributable to Alliant Energy common shareowners

$65.3

 

$65.9

 

$135.2

 

$100.8

Dividends declared per common share

$0.47

 

$0.45

 

$0.94

 

$0.90


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

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ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
June 30, 2013
 
December 31, 2012
 
(in millions)
ASSETS
 
 
 
Property, plant and equipment:
 
 
 
Utility:
 
 
 
Electric plant in service

$9,165.1

 

$9,070.7

Gas plant in service
892.4

 
878.4

Other plant in service
516.0

 
506.2

Accumulated depreciation
(3,632.0
)
 
(3,513.0
)
Net plant
6,941.5

 
6,942.3

Construction work in progress:
 
 
 
Columbia Energy Center Units 1 and 2 emission controls (WPL)
215.3

 
130.4

Ottumwa Generating Station Unit 1 emission controls (IPL)
110.8

 
73.7

George Neal Generating Station Units 3 and 4 emission controls (IPL)
95.0

 
66.9

Other
189.3

 
147.8

Other, less accumulated depreciation
21.0

 
21.2

Total utility
7,572.9

 
7,382.3

Non-regulated and other:
 
 
 
Non-regulated Generation, less accumulated depreciation
253.5

 
258.6

Alliant Energy Corporate Services, Inc. and other, less accumulated depreciation
200.8

 
197.1

Total non-regulated and other
454.3

 
455.7

Total property, plant and equipment
8,027.2

 
7,838.0

Current assets:
 
 
 
Cash and cash equivalents
11.5

 
21.2

Accounts receivable, less allowance for doubtful accounts:
 
 
 
Customer
85.0

 
94.9

Unbilled utility revenues
69.3

 
81.4

Other
190.1

 
209.4

Production fuel, at weighted average cost
99.7

 
103.1

Materials and supplies, at weighted average cost
68.3

 
63.1

Gas stored underground, at weighted average cost
23.2

 
37.7

Regulatory assets
78.3

 
83.5

Deferred income tax assets
142.3

 
170.2

Other
125.7

 
129.8

Total current assets
893.4

 
994.3

Investments:
 
 
 
Investment in American Transmission Company LLC
264.4

 
257.0

Other
56.9

 
62.0

Total investments
321.3

 
319.0

Other assets:
 
 
 
Regulatory assets
1,533.8

 
1,528.9

Deferred charges and other
111.9

 
105.3

Total other assets
1,645.7

 
1,634.2

Total assets

$10,887.6

 

$10,785.5


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

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ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued)

 
June 30, 2013
 
December 31, 2012
 
(in millions, except per
share and share amounts)
CAPITALIZATION AND LIABILITIES
 
 
 
Capitalization:
 
 
 
Alliant Energy Corporation common equity:
 
 
 
Common stock - $0.01 par value - 240,000,000 shares authorized; 110,943,669 and 110,987,400 shares outstanding

$1.1

 

$1.1

Additional paid-in capital
1,506.0

 
1,511.2

Retained earnings
1,661.7

 
1,630.7

Accumulated other comprehensive loss
(0.8
)
 
(0.8
)
Shares in deferred compensation trust - 217,404 and 216,030 shares at a weighted average cost of $34.48 and $33.61 per share
(7.5
)
 
(7.3
)
Total Alliant Energy Corporation common equity
3,160.5

 
3,134.9

Cumulative preferred stock of Interstate Power and Light Company
200.0

 
145.1

Noncontrolling interest
1.8

 
1.8

Total equity
3,362.3

 
3,281.8

Cumulative preferred stock of Wisconsin Power and Light Company

 
60.0

Long-term debt, net (excluding current portion)
3,141.4

 
3,136.6

Total capitalization
6,503.7

 
6,478.4

Current liabilities:
 
 
 
Current maturities of long-term debt
1.5

 
1.5

Commercial paper
223.1

 
217.5

Accounts payable
391.1

 
339.3

Regulatory liabilities
212.8

 
189.7

Other
244.0

 
272.0

Total current liabilities
1,072.5

 
1,020.0

Other long-term liabilities and deferred credits:
 
 
 
Deferred income tax liabilities
1,991.1

 
1,934.2

Regulatory liabilities
685.3

 
726.4

Pension and other benefit obligations
359.2

 
364.0

Other
275.8

 
262.5

Total long-term liabilities and deferred credits
3,311.4

 
3,287.1

Commitments and contingencies (Note 12)


 


Total capitalization and liabilities

$10,887.6

 

$10,785.5


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


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ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
For the Six Months
 
Ended June 30,
 
2013
 
2012
 
(in millions)
Cash flows from operating activities:
 
 
 
Net income

$147.9

 

$108.7

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation and amortization
185.3

 
164.3

Other amortizations
19.3

 
27.6

Deferred taxes and investment tax credits
40.8

 
56.3

Equity income from unconsolidated investments, net
(21.6
)
 
(20.0
)
Distributions from equity method investments
17.4

 
16.8

Other
(9.6
)
 
(7.6
)
Other changes in assets and liabilities:
 
 
 
Accounts receivable
(16.4
)
 
54.0

Sales of accounts receivable
5.0

 
(27.0
)
Derivative assets
(34.3
)
 
(28.7
)
Accounts payable
53.3

 
28.9

Regulatory liabilities
(15.1
)
 
(43.5
)
Deferred income taxes
43.4

 
26.7

Other
7.9

 
(17.3
)
Net cash flows from operating activities
423.3

 
339.2

Cash flows used for investing activities:
 
 
 
Construction and acquisition expenditures:
 
 
 
Utility business
(341.5
)
 
(247.3
)
Alliant Energy Corporate Services, Inc. and non-regulated businesses
(27.5
)
 
(75.1
)
Proceeds from Franklin County wind project cash grant
62.4

 

Other
(15.6
)
 
0.6

Net cash flows used for investing activities
(322.2
)
 
(321.8
)
Cash flows from (used for) financing activities:
 
 
 
Common stock dividends
(104.2
)
 
(99.7
)
Preferred dividends paid by subsidiaries
(6.3
)
 
(7.9
)
Payments to redeem cumulative preferred stock of IPL and WPL
(211.0
)
 

Proceeds from issuance of cumulative preferred stock of IPL
200.0

 

Net change in commercial paper
10.6

 
110.0

Other
0.1

 
(0.4
)
Net cash flows from (used for) financing activities
(110.8
)
 
2.0

Net increase (decrease) in cash and cash equivalents
(9.7
)
 
19.4

Cash and cash equivalents at beginning of period
21.2

 
11.4

Cash and cash equivalents at end of period

$11.5

 

$30.8

Supplemental cash flows information:
 
 
 
Cash paid (refunded) during the period for:
 
 
 
Interest, net of capitalized interest

$86.7

 

$77.4

Income taxes, net of refunds

($9.7
)
 

($0.9
)
Significant non-cash investing and financing activities:
 
 
 
Accrued capital expenditures

$94.1

 

$100.3


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

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INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
For the Three Months
 
For the Six Months
 
Ended June 30,
 
Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Operating revenues:
 
 
 
 
 
 
 
Electric utility

$329.6

 

$321.0

 

$679.8

 

$614.1

Gas utility
42.0

 
26.8

 
156.3

 
119.6

Steam and other
11.8

 
12.9

 
25.2

 
25.7

Total operating revenues
383.4

 
360.7

 
861.3

 
759.4

Operating expenses:
 
 
 
 
 
 
 
Electric production fuel and energy purchases
74.9

 
82.0

 
171.6

 
156.1

Purchased electric capacity
36.2

 
36.0

 
77.6

 
77.0

Electric transmission service
71.4

 
52.9

 
146.0

 
108.4

Cost of gas sold
21.8

 
10.3

 
93.9

 
67.6

Other operation and maintenance
83.2

 
83.8

 
173.7

 
170.7

Depreciation and amortization
47.6

 
47.1

 
95.2

 
93.8

Taxes other than income taxes
13.6

 
13.2

 
27.5

 
26.5

Total operating expenses
348.7

 
325.3

 
785.5

 
700.1

Operating income
34.7

 
35.4

 
75.8

 
59.3

Interest expense and other:
 
 
 
 
 
 
 
Interest expense
19.7

 
19.6

 
39.3

 
39.3

Allowance for funds used during construction
(4.7
)
 
(1.7
)
 
(8.5
)
 
(3.2
)
Interest income and other
(0.1
)
 

 
(0.2
)
 
(0.2
)
Total interest expense and other
14.9

 
17.9

 
30.6

 
35.9

Income before income taxes
19.8

 
17.5

 
45.2

 
23.4

Income tax expense (benefit)
(4.9
)
 
(2.1
)
 
(11.0
)
 
5.3

Net income
24.7

 
19.6

 
56.2

 
18.1

Preferred dividend requirements
2.5

 
3.0

 
11.1

 
6.2

Earnings available for common stock

$22.2

 

$16.6

 

$45.1

 

$11.9

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 
June 30, 2013
 
December 31, 2012
 
(in millions)
ASSETS
 
Property, plant and equipment:
 
 
 
Electric plant in service

$4,862.4

 

$4,815.2

Gas plant in service
447.3

 
441.4

Steam and other plant in service
294.2

 
289.1

Accumulated depreciation
(1,983.3
)
 
(1,930.7
)
Net plant
3,620.6

 
3,615.0

Construction work in progress:
 
 
 
Ottumwa Generating Station Unit 1 emission controls
110.8

 
73.7

George Neal Generating Station Units 3 and 4 emission controls
95.0

 
66.9

Other
116.7

 
82.8

Other, less accumulated depreciation
19.8

 
19.8

Total property, plant and equipment
3,962.9

 
3,858.2

Current assets:
 
 
 
Cash and cash equivalents
5.1

 
4.5

Accounts receivable, less allowance for doubtful accounts
115.7

 
95.0

Income tax refunds receivable
8.5

 
14.9

Production fuel, at weighted average cost
71.1

 
75.2

Materials and supplies, at weighted average cost
37.7

 
33.3

Gas stored underground, at weighted average cost
10.2

 
17.2

Regulatory assets
46.0

 
47.6

Deferred income tax assets
86.2

 
79.3

Other
50.5

 
24.6

Total current assets
431.0

 
391.6

Investments
18.0

 
17.6

Other assets:
 
 
 
Regulatory assets
1,178.2

 
1,170.3

Deferred charges and other
21.0

 
19.3

Total other assets
1,199.2

 
1,189.6

Total assets

$5,611.1

 

$5,457.0


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

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INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued)

 
June 30, 2013
 
December 31, 2012
 
(in millions, except per
share and share amounts)
CAPITALIZATION AND LIABILITIES
 
Capitalization:
 
 
 
Interstate Power and Light Company common equity:
 
 
 
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding

$33.4

 

$33.4

Additional paid-in capital
1,092.9

 
1,037.8

Retained earnings
429.6

 
448.0

Total Interstate Power and Light Company common equity
1,555.9

 
1,519.2

Cumulative preferred stock
200.0

 
145.1

Total equity
1,755.9

 
1,664.3

Long-term debt, net
1,364.7

 
1,359.5

Total capitalization
3,120.6

 
3,023.8

Current liabilities:
 
 
 
Commercial paper

 
26.3

Accounts payable
213.5

 
163.2

Accounts payable to associated companies
30.4

 
29.3

Regulatory liabilities
146.3

 
130.1

Other
137.6

 
119.9

Total current liabilities
527.8

 
468.8

Other long-term liabilities and deferred credits:
 
 
 
Deferred income tax liabilities
1,131.6

 
1,087.3

Regulatory liabilities
526.1

 
571.3

Pension and other benefit obligations
121.1

 
122.9

Other
183.9

 
182.9

Total other long-term liabilities and deferred credits
1,962.7

 
1,964.4

Commitments and contingencies (Note 12)


 


Total capitalization and liabilities

$5,611.1

 

$5,457.0


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

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INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 
For the Six Months
 
Ended June 30,
 
2013
 
2012
 
(in millions)
Cash flows from operating activities:
 
 
 
Net income

$56.2

 

$18.1

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation and amortization
95.2

 
93.8

Deferred tax expense (benefit) and investment tax credits
(6.0
)
 
8.2

Other
(2.7
)
 
1.8

Other changes in assets and liabilities:
 
 
 
Accounts receivable
(33.7
)
 
(0.5
)
Sales of accounts receivable
5.0

 
(27.0
)
Derivative assets
(27.6
)
 
(20.9
)
Accounts payable
51.3

 
13.1

Regulatory liabilities
(27.1
)
 
(61.5
)
Accrued taxes
10.4

 
23.4

Deferred income taxes
43.1

 
25.7

Other
9.6

 
2.2

Net cash flows from operating activities
173.7

 
76.4

Cash flows used for investing activities:
 
 
 
Utility construction and acquisition expenditures
(180.0
)
 
(109.9
)
Other
(9.8
)
 
(10.4
)
Net cash flows used for investing activities
(189.8
)
 
(120.3
)
Cash flows from financing activities:
 
 
 
Common stock dividends
(63.5
)
 
(60.8
)
Preferred stock dividends
(5.7
)
 
(6.2
)
Capital contributions from parent
60.0

 
50.0

Payments to redeem cumulative preferred stock
(150.0
)
 

Proceeds from issuance of cumulative preferred stock
200.0

 

Net change in commercial paper
(21.3
)
 
58.3

Other
(2.8
)
 
3.3

Net cash flows from financing activities
16.7

 
44.6

Net increase in cash and cash equivalents
0.6

 
0.7

Cash and cash equivalents at beginning of period
4.5

 
2.1

Cash and cash equivalents at end of period

$5.1

 

$2.8

Supplemental cash flows information:
 
 
 
Cash paid (refunded) during the period for:
 
 
 
Interest

$41.5

 

$39.2

Income taxes, net of refunds

$2.2

 

($15.4
)
Significant non-cash investing and financing activities:
 
 
 
Accrued capital expenditures

$56.2

 

$61.1


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

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WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
For the Three Months
 
For the Six Months
 
Ended June 30,
 
Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Operating revenues:
 
 
 
 
 
 
 
Electric utility

$282.5

 

$291.6

 

$565.5

 

$570.9

Gas utility
31.4

 
23.2

 
114.4

 
97.5

Other
6.0

 
0.9

 
9.8

 
1.8

Total operating revenues
319.9

 
315.7

 
689.7

 
670.2

Operating expenses:
 
 
 
 
 
 
 
Electric production fuel and energy purchases
83.1

 
86.9

 
165.5

 
172.7

Purchased electric capacity
15.8

 
34.7

 
31.4

 
55.2

Electric transmission service
28.2

 
26.5

 
57.3

 
52.4

Cost of gas sold
17.1

 
8.3

 
73.0

 
55.8

Other operation and maintenance
64.0

 
54.1

 
123.7

 
117.2

Depreciation and amortization
43.2

 
33.2

 
86.3

 
69.0

Taxes other than income taxes
8.8

 
10.5

 
20.1

 
21.8

Total operating expenses
260.2

 
254.2

 
557.3

 
544.1

Operating income
59.7

 
61.5

 
132.4

 
126.1

Interest expense and other:
 
 
 
 
 
 
 
Interest expense
21.3

 
19.9

 
42.6

 
39.9

Equity income from unconsolidated investments
(10.8
)
 
(10.6
)
 
(21.6
)
 
(20.7
)
Allowance for funds used during construction
(2.3
)
 
(3.1
)
 
(4.1
)
 
(5.4
)
Interest income and other
0.1

 
0.1

 

 

Total interest expense and other
8.3

 
6.3

 
16.9

 
13.8

Income before income taxes
51.4

 
55.2

 
115.5

 
112.3

Income taxes
17.0

 
19.1

 
37.5

 
44.3

Net income
34.4

 
36.1

 
78.0

 
68.0

Preferred dividend requirements

 
0.9

 
1.6

 
1.7

Earnings available for common stock

$34.4

 

$35.2

 

$76.4

 

$66.3

Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 
June 30, 2013
 
December 31, 2012
 
(in millions)
ASSETS
 
Property, plant and equipment:
 
 
 
Electric plant in service

$4,302.7

 

$4,255.5

Gas plant in service
445.1

 
437.0

Other plant in service
221.8

 
217.1

Accumulated depreciation
(1,648.7
)
 
(1,582.3
)
Net plant
3,320.9

 
3,327.3

Leased Sheboygan Falls Energy Facility, less accumulated amortization
74.0

 
77.0

Construction work in progress:
 
 
 
Columbia Energy Center Units 1 and 2 emission controls
215.3

 
130.4

Other
72.6

 
65.0

Other, less accumulated depreciation
1.2

 
1.4

Total property, plant and equipment
3,684.0

 
3,601.1

Current assets:
 
 
 
Cash and cash equivalents
2.5

 
0.7

Accounts receivable, less allowance for doubtful accounts:
 
 
 
Customer
74.9

 
83.3

Unbilled utility revenues
69.3

 
81.4

Other
45.8

 
48.5

Production fuel, at weighted average cost
28.6

 
27.9

Materials and supplies, at weighted average cost
29.0

 
28.5

Gas stored underground, at weighted average cost
13.0

 
20.5

Regulatory assets
32.3

 
35.9

Deferred income tax assets
43.0

 
85.6

Other
57.3

 
56.4

Total current assets
395.7

 
468.7

Investments:
 
 
 
Investment in American Transmission Company LLC
264.4

 
257.0

Other
19.6

 
19.6

Total investments
284.0

 
276.6

Other assets:
 
 
 
Regulatory assets
355.6

 
358.6

Deferred charges and other
63.0

 
57.6

Total other assets
418.6

 
416.2

Total assets

$4,782.3

 

$4,762.6


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

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WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued)

 
June 30, 2013
 
December 31, 2012
 
(in millions, except per
share and share amounts)
CAPITALIZATION AND LIABILITIES
 
Capitalization:
 
 
 
Wisconsin Power and Light Company common equity:
 
 
 
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding

$66.2

 

$66.2

Additional paid-in capital
959.1

 
959.2

Retained earnings
575.8

 
557.6

Total Wisconsin Power and Light Company common equity
1,601.1

 
1,583.0

Cumulative preferred stock

 
60.0

Long-term debt, net
1,331.9

 
1,331.5

Total capitalization
2,933.0

 
2,974.5

Current liabilities:
 
 
 
Commercial paper
148.9

 
86.6

Accounts payable
124.0

 
126.4

Accounts payable to associated companies
13.2

 
13.2

Regulatory liabilities
66.5

 
59.6

Accrued taxes
11.0

 
28.3

Other
72.2

 
71.4

Total current liabilities
435.8

 
385.5

Other long-term liabilities and deferred credits:
 
 
 
Deferred income tax liabilities
843.8

 
844.1

Regulatory liabilities
159.2

 
155.1

Capital lease obligations - Sheboygan Falls Energy Facility
96.9

 
99.1

Pension and other benefit obligations
158.0

 
159.7

Other
155.6

 
144.6

Total long-term liabilities and deferred credits
1,413.5

 
1,402.6

Commitments and contingencies (Note 12)


 


Total capitalization and liabilities

$4,782.3

 

$4,762.6


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

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WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
For the Six Months
 
Ended June 30,
 
2013
 
2012
 
(in millions)
Cash flows from operating activities:
 
 
 
Net income

$78.0

 

$68.0

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation and amortization
86.3

 
69.0

Other amortizations
14.4

 
21.8

Deferred taxes and investment tax credits
39.1

 
43.3

Equity income from unconsolidated investments
(21.6
)
 
(20.7
)
Distributions from equity method investments
17.4

 
16.8

Other
(3.6
)
 
(6.5
)
Other changes in assets and liabilities:
 
 
 
Accounts receivable
19.7

 
8.4

Income tax refunds receivable
1.3

 
(10.9
)
Regulatory liabilities
12.0

 
18.0

Accrued taxes
(17.3
)
 
(3.9
)
Other
(0.5
)
 
(21.4
)
Net cash flows from operating activities
225.2

 
181.9

Cash flows used for investing activities:
 
 
 
Utility construction and acquisition expenditures
(161.5
)
 
(137.4
)
Other
(2.8
)
 
4.0

Net cash flows used for investing activities
(164.3
)
 
(133.4
)
Cash flows used for financing activities:
 
 
 
Common stock dividends
(58.2
)
 
(56.0
)
Preferred stock dividends
(0.6
)
 
(1.7
)
Payments to redeem cumulative preferred stock
(61.0
)
 

Net change in commercial paper
62.3

 
9.9

Other
(1.6
)
 
(0.9
)
Net cash flows used for financing activities
(59.1
)
 
(48.7
)
Net increase (decrease) in cash and cash equivalents
1.8

 
(0.2
)
Cash and cash equivalents at beginning of period
0.7

 
2.7

Cash and cash equivalents at end of period

$2.5

 

$2.5

Supplemental cash flows information:
 
 
 
Cash paid during the period for:
 
 
 
Interest

$42.5

 

$40.0

Income taxes, net of refunds

$8.5

 

$15.8

Significant non-cash investing and financing activities:
 
 
 
Accrued capital expenditures

$36.8

 

$20.8


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

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ALLIANT ENERGY CORPORATION
INTERSTATE POWER AND LIGHT COMPANY
WISCONSIN POWER AND LIGHT COMPANY

COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) General - The interim unaudited condensed consolidated financial statements included herein have been prepared by Alliant Energy, IPL and WPL pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. (GAAP) have been condensed or omitted, although management believes that the disclosures are adequate to make the information presented not misleading. Alliant Energy’s condensed consolidated financial statements include the accounts of Alliant Energy and its consolidated subsidiaries (including IPL, WPL, Resources and Alliant Energy Corporate Services, Inc. (Corporate Services)). IPL’s condensed consolidated financial statements include the accounts of IPL and its consolidated subsidiary. WPL’s condensed consolidated financial statements include the accounts of WPL and its consolidated subsidiary. These financial statements should be read in conjunction with the financial statements and the notes thereto included in Alliant Energy’s, IPL’s and WPL’s latest combined Annual Report on Form 10-K.

In the opinion of management, all adjustments, which unless otherwise noted are normal and recurring in nature, necessary for a fair presentation of the condensed consolidated results of operations for the three and six months ended June 30, 2013 and 2012, the condensed consolidated financial position at June 30, 2013 and December 31, 2012, and the condensed consolidated statements of cash flows for the six months ended June 30, 2013 and 2012 have been made. Results for the six months ended June 30, 2013 are not necessarily indicative of results that may be expected for the year ending December 31, 2013. A change in management’s estimates or assumptions could have a material impact on Alliant Energy’s, IPL’s and WPL’s respective financial condition and results of operations during the period in which such change occurred. Certain prior period amounts in the Condensed Consolidated Financial Statements and Combined Notes to Condensed Consolidated Financial Statements have been reclassified to conform to the current period presentation for comparative purposes. Unless otherwise noted, the notes herein have been revised to exclude discontinued operations and assets and liabilities held for sale for all periods presented.

(b) Regulatory Assets and Regulatory Liabilities -
Regulatory assets were comprised of the following items (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
June 30, 2013
 
December 31, 2012
 
June 30, 2013
 
December 31, 2012
 
June 30, 2013
 
December 31, 2012
Tax-related

$793.1

 

$770.7

 

$768.2

 

$746.2

 

$24.9

 

$24.5

Pension and other postretirement benefits costs
533.2

 
549.2

 
271.7

 
279.3

 
261.5

 
269.9

Asset retirement obligations (AROs)
66.6

 
62.4

 
39.2

 
38.6

 
27.4

 
23.8

Derivatives
37.1

 
40.2

 
10.0

 
16.3

 
27.1

 
23.9

Environmental-related costs
31.5

 
34.9

 
27.2

 
30.3

 
4.3

 
4.6

Emission allowances
30.0

 
30.0

 
30.0

 
30.0

 

 

Other
120.6

 
125.0

 
77.9

 
77.2

 
42.7

 
47.8

 

$1,612.1

 

$1,612.4

 

$1,224.2

 

$1,217.9

 

$387.9

 

$394.5



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Regulatory liabilities were comprised of the following items (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
June 30, 2013
 
December 31, 2012
 
June 30, 2013
 
December 31, 2012
 
June 30, 2013
 
December 31, 2012
Cost of removal obligations

$412.8

 

$408.7

 

$273.1

 

$268.0

 

$139.7

 

$140.7

IPL’s tax benefit riders
313.0

 
355.8

 
313.0

 
355.8

 

 

Energy conservation cost recovery
62.1

 
55.1

 
16.7

 
10.0

 
45.4

 
45.1

IPL’s electric transmission assets sale
27.1

 
32.5

 
27.1

 
32.5

 

 

Commodity cost recovery
25.0

 
17.7

 
7.4

 
5.2

 
17.6

 
12.5

Other
58.1

 
46.3

 
35.1

 
29.9

 
23.0

 
16.4

 

$898.1

 

$916.1

 

$672.4

 

$701.4

 

$225.7

 

$214.7


Tax-related - Alliant Energy’s and IPL’s tax-related regulatory assets are generally 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. Deferred tax amounts are recorded to regulatory assets, along with the necessary revenue requirement tax gross-ups. During the six months ended June 30, 2013, Alliant Energy’s and IPL’s tax-related regulatory assets increased primarily due to qualifying repair expenditures at IPL.

IPL’s tax benefit riders - Alliant Energy’s and IPL’s “IPL’s tax benefit riders” regulatory liabilities in the above table decreased $43 million during the six months ended June 30, 2013 due to the following items:

Electric tax benefit rider - In January 2011, the Iowa Utilities Board (IUB) approved an electric tax benefit rider proposed by IPL, which utilizes regulatory liabilities to credit bills of Iowa retail electric customers beginning in February 2011 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 and allocation of insurance proceeds from floods in 2008. IPL utilized $38 million of regulatory liabilities to credit Iowa retail electric customers’ bills during the six months ended June 30, 2013.

Gas tax benefit rider - In November 2012, the IUB approved a gas tax benefit rider proposed by IPL, which utilizes regulatory liabilities to credit bills of Iowa retail gas customers beginning in January 2013 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 and allocation of insurance proceeds from floods in 2008. IPL utilized $5 million of regulatory liabilities to credit Iowa retail gas customers’ bills during the six months ended June 30, 2013.

Refer to Note 4 for additional details regarding IPL’s tax benefit riders.

Other - Based on the Public Service Commission of Wisconsin’s (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 clean air compliance plan projects. As a result, Alliant Energy and WPL recorded a $5 million increase to regulatory assets, and a $5 million credit to “Utility - Other operation and maintenance” in their Condensed Consolidated Statements of Income in the second quarter of 2012.

(c) Comprehensive Income - For the three and six months ended June 30, 2013 and 2012, Alliant Energy had no other comprehensive income; therefore, its comprehensive income was equal to its net income and its comprehensive income attributable to Alliant Energy common shareowners was equal to its net income attributable to Alliant Energy common shareowners for such periods. For the three and six months ended June 30, 2013 and 2012, IPL and WPL had no other comprehensive income; therefore, their comprehensive income was equal to their net income and their comprehensive income available for common stock was equal to their earnings available for common stock for such periods.


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Table of Contents


(2) UTILITY RATE CASES
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 base rates for WPL’s retail gas customers 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 customer base rates for its retail electric customers at their current levels through the end of 2014. The order included provisions that require WPL to defer a portion of its earnings if its annual return on common equity exceeds certain levels during the test period and allows WPL to request a change in retail base rates during the test period if its annual return on common equity falls below a certain level. As of June 30, 2013, WPL did not record any deferred amounts for these provisions.

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. IPL’s request included a proposal 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. In November 2012, the IUB approved a settlement agreement between IPL, the Iowa Office of Consumer Advocate (OCA) 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. The parties and the IUB also agreed to IPL’s proposed gas tax benefit rider. Refer to Note 1(b) for additional details on IPL’s gas tax benefit rider.

IPL’s Iowa Retail Electric Rate Case (2009 Test Year) - In February 2013, the IUB issued an order allowing IPL to recognize a revenue requirement adjustment of $24 million for the year ended December 31, 2013 related to certain tax benefits from tax accounting method changes. The revenue requirement adjustment is 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. For the three and six months ended June 30, 2013, Alliant Energy and IPL recognized $5 million and $11 million, respectively, of the revenue requirement adjustment resulting in increases to electric revenues on their Condensed Consolidated Statements of Income.

WPL’s Retail Fuel-related Rate Filing (2014 Test Year) - In July 2013, WPL filed a request with the PSCW to increase annual rates for WPL’s retail electric customers by $31 million, or approximately 3%, to reflect anticipated increases in retail electric production fuel and energy purchases costs (fuel-related costs) in 2014.

WPL’s Retail Fuel-related Rate Filing (2013 Test Year) - In December 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 fuel-related costs in 2013 compared to the fuel-related cost estimates used to determine rates for 2012. WPL’s 2013 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.

(3) RECEIVABLES
(a) Sales of Accounts Receivable - IPL maintains a Receivables Purchase and Sale Agreement (Agreement) whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third-party financial institution through wholly-owned and consolidated special purpose entities. In exchange for the receivables sold, IPL receives cash proceeds from the third-party financial institution (based on seasonal limits up to $180 million, including $150 million as of June 30, 2013), and deferred proceeds recorded in “Accounts receivable” on Alliant Energy’s and IPL’s Condensed Consolidated Balance Sheets.

As of June 30, 2013 and December 31, 2012, IPL sold $206.3 million and $198.4 million aggregate amounts of receivables, respectively. IPL’s maximum and average outstanding cash proceeds, and costs incurred related to the sales of accounts receivable program for the three and six months ended June 30 were as follows (in millions):
 
Three Months
 
Six Months
 
2013
 
2012
 
2013
 
2012
Maximum outstanding aggregate cash proceeds (based on daily outstanding balances)
$150.0
 
$150.0
 
$170.0
 
$160.0
Average outstanding aggregate cash proceeds (based on daily outstanding balances)
125.6
 
135.1
 
132.4
 
139.0
Costs incurred
0.4
 
0.3
 
0.7
 
0.7


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The attributes of IPL’s receivables sold under the Agreement were as follows (in millions):
 
June 30, 2013
 
December 31, 2012
Customer accounts receivable
$128.2
 
$118.2
Unbilled utility revenues
78.0
 
77.4
Other receivables
0.1
 
2.8
Receivables sold
206.3
 
198.4
Less: cash proceeds (a)
135.0
 
130.0
Deferred proceeds
71.3
 
68.4
Less: allowance for doubtful accounts
2.0
 
1.6
Fair value of deferred proceeds
$69.3
 
$66.8
Outstanding receivables past due
$19.1
 
$16.1

(a)
Changes in cash proceeds are recorded in “Sales of accounts receivable” in operating activities in Alliant Energy’s and IPL’s Condensed Consolidated Statements of Cash Flows.

Additional attributes of IPL’s receivables sold under the Agreement for the three and six months ended June 30 were as follows (in millions):
 
Three Months
 
Six Months
 
2013
 
2012
 
2013
 
2012
Collections reinvested in receivables
$435.0
 
$369.5
 
$926.3
 
$811.8
Credit losses, net of recoveries
2.0
 
2.2
 
3.9
 
4.3

(b) Franklin County Wind Project Cash Grant - In accordance with the American Recovery and Reinvestment Act of 2009, 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. In March 2013, Alliant Energy received the proceeds from the cash grant, resulting in a $62.4 million decrease in “Accounts receivable - other” on its Condensed Consolidated Balance Sheets during the six months ended June 30, 2013. The grant proceeds were used by Alliant Energy to reduce short-term borrowings incurred during the construction of the wind project.

(4) INCOME TAXES
Income Tax Rates - The provision for income taxes for earnings from continuing operations is based on an estimated annual effective income tax rate that excludes the impact of significant unusual or infrequently occurring items, discontinued operations or extraordinary items. The effective income tax rates for Alliant Energy, IPL and WPL differ from the federal statutory rate of 35% generally due to effects of enacted tax legislation, utility rate-making, including IPL’s tax benefit riders, tax credits, state income taxes and certain non-deductible expenses. Changes in state apportionment rates caused by the planned sale of Alliant Energy’s RMT business also impacted the effective income tax rates for the six months ended June 30, 2012 for Alliant Energy, IPL and WPL. The effective income tax rates shown in the following table for the three and six months ended June 30 were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.
 
Three Months
 
Six Months
 
2013
 
2012
 
2013
 
2012
Alliant Energy
13.3
%
 
19.5
%
 
13.0
%
 
28.3
%
IPL
(24.7
%)
 
(12.0
%)
 
(24.3
%)
 
22.6
%
WPL
33.1
%
 
34.6
%
 
32.5
%
 
39.4
%

State apportionment change due to planned sale of RMT - Alliant Energy, IPL and WPL utilize state apportionment projections to record their 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 condensed consolidated 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 the first quarter of 2012,

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Alliant Energy, IPL and WPL recorded $15 million, $8 million and $7 million, respectively, of deferred income tax expense due to changes in state apportionment projections caused by the planned sale of Alliant Energy’s RMT business. These income tax expense amounts recognized during the first quarter of 2012 increased Alliant Energy’s, IPL’s and WPL’s effective income tax rates for continuing operations for the six months ended June 30, 2012 by 9.7%, 34.6% and 6.2%, respectively.

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. The tax impacts of the tax benefit riders decreased Alliant Energy’s and IPL’s effective income tax rates for continuing operations for the three and six months ended June 30 as follows. Refer to Note 1(b) for additional details of IPL’s tax benefit riders.
 
Three Months
 
Six Months
 
2013
 
2012
 
2013
 
2012
Alliant Energy
(11.7
%)
 
(11.7
%)
 
(12.3
%)
 
(11.9
%)
IPL
(33.3
%)
 
(34.9
%)
 
(35.6
%)
 
(35.5
%)

Production tax credits - Alliant Energy has three wind projects that are currently generating production tax credits: WPL’s 68 MW Cedar Ridge wind project, which began generating electricity in late 2008; IPL’s 200 MW Whispering Willow - East wind project, which began generating electricity in late 2009; and WPL’s 200 MW Bent Tree - Phase I wind project, which began generating electricity in late 2010. For the three and six months ended June 30, production tax credits (net of state tax impacts) resulting from these wind projects were as follows (in millions):
 
Three Months
 
Six Months
 
2013
 
2012
 
2013
 
2012
Cedar Ridge (WPL)

$1.1

 

$1.0

 

$2.3

 

$2.3

Bent Tree - Phase I (WPL)
3.5

 
2.7

 
7.0

 
4.2

Subtotal (WPL)
4.6

 
3.7

 
9.3

 
6.5

Whispering Willow - East (IPL)
4.1

 
3.1

 
8.0

 
6.7

 

$8.7

 

$6.8

 

$17.3

 

$13.2


The tax impacts of the production tax credits decreased Alliant Energy’s, IPL’s and WPL’s effective income tax rates for continuing operations for the three and six months ended June 30 as follows:
 
Three Months
 
Six Months
 
2013
 
2012
 
2013
 
2012
Alliant Energy
(7.9
%)
 
(6.3
%)
 
(7.7
%)
 
(6.6
%)
IPL
(10.5
%)
 
(8.6
%)
 
(10.1
%)
 
(8.9
%)
WPL
(7.2
%)
 
(6.5
%)
 
(7.0
%)
 
(6.4
%)

Effect of rate-making on property-related differences - Alliant Energy’s and IPL’s effective income tax rates are impacted by certain property-related differences for which deferred tax is not recognized in the income statement pursuant to rate-making principles, the majority of which relates to IPL. The tax impacts of the effect of rate-making on property-related differences decreased Alliant Energy’s and IPL’s effective income tax rates for continuing operations for the three and six months ended June 30 as follows. The primary factor contributing to the increase in the current tax benefits recorded for the effect of rate-making on property-related differences during the three and six months ended June 30, 2013 was repair expenditures at IPL.
 
Three Months
 
Six Months
 
2013
 
2012
 
2013
 
2012
Alliant Energy
(6.4
%)
 
(4.0
%)
 
(5.6
%)
 
(3.6
%)
IPL
(17.4
%)
 
(8.1
%)
 
(15.5
%)
 
(7.7
%)


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Deferred Tax Assets and Liabilities - For the six months ended June 30, 2013, Alliant Energy’s and WPL’s current deferred tax assets decreased $27.9 million and $42.6 million, respectively. These decreases were primarily due to a transfer of deferred tax assets from current deferred tax assets to non-current deferred tax liabilities during the six months ended June 30, 2013 caused by a decrease in the amount of federal net operating loss carryforwards expected to be utilized during the next 12 months. The decrease in the amount of net operating loss carryforwards expected to be utilized during the next 12 months was impacted by the extension of bonus depreciation deductions in the first quarter of 2013 with the enactment of the American Taxpayer Relief Act of 2012 (ATR Act) in January 2013.

For the six months ended June 30, 2013, Alliant Energy’s and IPL’s non-current deferred tax liabilities increased $56.9 million and $44.3 million, respectively. These increases were primarily due to property-related differences resulting from bonus depreciation deductions and the effect of rate-making on property-related differences recorded during the six months ended June 30, 2013, partially offset by the transfer of certain deferred tax assets discussed above.

Carryforwards - At June 30, 2013, tax carryforwards and associated deferred tax assets and expiration dates were estimated as follows (dollars in millions):
Alliant Energy
Carryforward
Amount