Interstate Power and Light Receives Nuclear Regulatory Commission Approval to Transfer DAEC Operating License to FPL Energy


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Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation, received approval from the Nuclear Regulatory Commission (NRC) to transfer the company's Duane Arnold Energy Center's (DAEC) nuclear operating license to FPL Energy LLC, a subsidiary of FPL Group, Inc. upon closure of the sale transaction.

Pending all appropriate state and federal regulatory approvals and satisfaction of other closing conditions, the transaction is expected to be concluded early in the first quarter of 2006. IPL has received approvals for the sale of DAEC from FERC, the Illinois Commerce Commission, Iowa Utilities Board and Public Service Commission of Wisconsin. The company is awaiting a final decision from the Minnesota Public Utilities Commission.

"The NRC's approval of the transfer of DAEC's operating license completes another step toward the successful closure of this transaction," says Tom Aller, President-IPL. "The sale of DAEC to FPL Energy reduces financial and operational uncertainty for our customers and shareowners and ensures continued access to DAEC's output for our customers in future years. Our IPL customers will significantly benefit from the sale as FPL Energy is committed to being a strong, long-term energy partner within our service area."

In December 2004, IPL announced its intent to sell the company's ownership interest in DAEC. The company believed that a sale would reduce customer and shareowner financial and operational uncertainty associated with nuclear generating facility ownership and operations. Absent a sale of DAEC, the facility would be decommissioned after the nuclear operating license expires in February 2014.

In July 2005, IPL reached a definitive agreement to sell its 70 percent ownership interest in the 598 megawatt nuclear generating facility to FPL Energy. As part of the sale agreement, FPL Energy agreed to purchase the nuclear generating facility, nuclear fuel and inventory for approximately $380 million. In addition, the agreement considers that affiliates of IPL will sell other related assets to FPL Energy for an additional $7 million.

Two other entities, Central Iowa Power Cooperative and Corn Belt Power Cooperative, own the remaining 30% interest in DAEC. IPL's decision is independent of any future actions by the other DAEC owners.

This press release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "is expected" 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: IPL's ability to obtain regulatory approval of the sale of the DAEC; unanticipated events at the DAEC prior to closing of the sale; and changes in legislation or the regulatory climate applicable to the DAEC.

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 IPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.

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