Leases

12 Months Ended

Dec. 31, 2011

Leases

(3) LEASES

(a) Operating Leases - Alliant Energy, IPL and WPL have entered into various agreements related to property, plant and equipment rights that are accounted for as operating leases. Alliant Energy's and WPL's most significant operating leases relate to certain PPAs. These PPAs contain fixed rental payments related to capacity and contingent rental payments related to the energy portion (actual MWhs) of the respective PPAs. Rental expenses associated with Alliant Energy's, IPL's and WPL's operating leases were as follows (in millions):

	Alliant Energy						IPL						WPL
	2011		2010		2009		2011		2010		2009		2011		2010		2009
Operating lease rental expenses (excluding contingent rentals)	$	72	$	73	$	79	$	4	$	4	$	4	$	63	$	63	$	68
Contingent rentals related to certain PPAs		4		4		7		—		—		—		4		4		7
Other contingent rentals		1		1		1		1		1		1		—		—		—
	$	77	$	78	$	87	$	5	$	5	$	5	$	67	$	67	$	75

At Dec. 31, 2011, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total
Alliant Energy
Riverside Energy Center (Riverside) PPA (a)	$	59	$	17	$	—	$	—	$	—	$	—	$	76
Synthetic leases (b)		43		2		4		1		—		—		50
Other		8		9		4		4		3		20		48
	$	110	$	28	$	8	$	5	$	3	$	20	$	174
IPL
Operating leases	$	4	$	4	$	3	$	3	$	2	$	17	$	33
WPL
Riverside PPA (a)	$	59	$	17	$	—	$	—	$	—	$	—	$	76
Synthetic leases (b)		1		2		4		1		—		—		8
Other		4		5		1		—		—		1		11
	$	64	$	24	$	5	$	1	$	—	$	1	$	95

(a) In November 2011, WPL filed a Certificate of Authority with the PSCW for the purchase of Riverside in the fourth quarter of 2012. A decision from the PSCW is expected in April 2012. If Riverside is purchased in the fourth quarter of 2012, capacity payments scheduled for 2013 will not occur. Refer to Note 20 for additional information on the Riverside PPA.

(b) The synthetic leases relate to the financing of certain corporate headquarters (Alliant Energy) and utility railcars (Alliant Energy and WPL). The entities that lease these assets to Alliant Energy and WPL do not meet consolidation requirements and are not included on Alliant Energy's or WPL's Consolidated Balance Sheets. Alliant Energy and WPL have guaranteed the residual value of the related assets, which total $45 million and $4 million, respectively, in the aggregate. The guarantees extend through the maturity of each respective underlying lease with remaining terms up to four years. Residual value guarantee amounts have been included in the future minimum operating lease payments. Alliant Energy currently plans to exercise its option under the corporate headquarters lease and purchase the building at the expiration of the lease term in April 2012.

(b) Capital Leases -

Alliant Energy - At Dec. 31, 2011 and 2010, Alliant Energy's gross assets under its capital leases (excluding capital leases between related parties) were $7 million and $9 million, and the related accumulated amortization was $4 million and $3 million, respectively. At Dec. 31, 2011, Alliant Energy's future minimum capital lease payments were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total		Less: amount representing interest		Present value of net minimum capital lease payments
Capital leases	$	1	$	1	$	1	$	—	$	—	$	1	$	4	$	1	$	3

WPL - In 2005, WPL entered into a 20-year agreement with Resources' Non-regulated Generation business to lease the Sheboygan Falls Energy Facility (SFEF), with an option for two lease renewal periods thereafter. The lease became effective in 2005 when SFEF began commercial operation. WPL is responsible for the operation of SFEF and has exclusive rights to its output. In 2005, the PSCW approved this affiliated lease agreement with initial monthly payments of approximately $1.3 million. The lease payments were based on a 50% debt to capital ratio, a return on equity of 10.9%, a cost of debt based on the cost of senior notes issued by Resources' Non-regulated Generation business in 2005 and certain costs incurred to construct the facility. In accordance with its order approving the lease agreement, the PSCW reserved the right to review the capital structure, return on equity and cost of debt every five years from the date of the order. No revisions to the lease were made in 2010. The capital lease asset is amortized using the straight-line method over the 20-year lease term. Since the inception of the lease in 2005, WPL's retail and wholesale rates have included recovery of the monthly SFEF lease payments. SFEF lease expenses were included in WPL's Consolidated Statements of Income as follows (in millions):

	2011		2010		2009
Interest expense	$	11.7	$	12.0	$	12.3
Depreciation and amortization		6.2		6.2		6.2
	$	17.9	$	18.2	$	18.5

At Dec. 31, 2011, WPL's estimated future minimum capital lease payments for SFEF were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total		Less: amount representing interest		Present value of net minimum capital lease payments
SFEF	$	15	$	15	$	15	$	15	$	15	$	128	$	203	$	96	$	107

IPL [Member]

Leases

(3) LEASES

(a) Operating Leases - Alliant Energy, IPL and WPL have entered into various agreements related to property, plant and equipment rights that are accounted for as operating leases. Alliant Energy's and WPL's most significant operating leases relate to certain PPAs. These PPAs contain fixed rental payments related to capacity and contingent rental payments related to the energy portion (actual MWhs) of the respective PPAs. Rental expenses associated with Alliant Energy's, IPL's and WPL's operating leases were as follows (in millions):

	Alliant Energy						IPL						WPL
	2011		2010		2009		2011		2010		2009		2011		2010		2009
Operating lease rental expenses (excluding contingent rentals)	$	72	$	73	$	79	$	4	$	4	$	4	$	63	$	63	$	68
Contingent rentals related to certain PPAs		4		4		7		—		—		—		4		4		7
Other contingent rentals		1		1		1		1		1		1		—		—		—
	$	77	$	78	$	87	$	5	$	5	$	5	$	67	$	67	$	75

At Dec. 31, 2011, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total
Alliant Energy
Riverside Energy Center (Riverside) PPA (a)	$	59	$	17	$	—	$	—	$	—	$	—	$	76
Synthetic leases (b)		43		2		4		1		—		—		50
Other		8		9		4		4		3		20		48
	$	110	$	28	$	8	$	5	$	3	$	20	$	174
IPL
Operating leases	$	4	$	4	$	3	$	3	$	2	$	17	$	33
WPL
Riverside PPA (a)	$	59	$	17	$	—	$	—	$	—	$	—	$	76
Synthetic leases (b)		1		2		4		1		—		—		8
Other		4		5		1		—		—		1		11
	$	64	$	24	$	5	$	1	$	—	$	1	$	95

(a) In November 2011, WPL filed a Certificate of Authority with the PSCW for the purchase of Riverside in the fourth quarter of 2012. A decision from the PSCW is expected in April 2012. If Riverside is purchased in the fourth quarter of 2012, capacity payments scheduled for 2013 will not occur. Refer to Note 20 for additional information on the Riverside PPA.

(b) The synthetic leases relate to the financing of certain corporate headquarters (Alliant Energy) and utility railcars (Alliant Energy and WPL). The entities that lease these assets to Alliant Energy and WPL do not meet consolidation requirements and are not included on Alliant Energy's or WPL's Consolidated Balance Sheets. Alliant Energy and WPL have guaranteed the residual value of the related assets, which total $45 million and $4 million, respectively, in the aggregate. The guarantees extend through the maturity of each respective underlying lease with remaining terms up to four years. Residual value guarantee amounts have been included in the future minimum operating lease payments. Alliant Energy currently plans to exercise its option under the corporate headquarters lease and purchase the building at the expiration of the lease term in April 2012.

(b) Capital Leases -

Alliant Energy - At Dec. 31, 2011 and 2010, Alliant Energy's gross assets under its capital leases (excluding capital leases between related parties) were $7 million and $9 million, and the related accumulated amortization was $4 million and $3 million, respectively. At Dec. 31, 2011, Alliant Energy's future minimum capital lease payments were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total		Less: amount representing interest		Present value of net minimum capital lease payments
Capital leases	$	1	$	1	$	1	$	—	$	—	$	1	$	4	$	1	$	3

WPL - In 2005, WPL entered into a 20-year agreement with Resources' Non-regulated Generation business to lease the Sheboygan Falls Energy Facility (SFEF), with an option for two lease renewal periods thereafter. The lease became effective in 2005 when SFEF began commercial operation. WPL is responsible for the operation of SFEF and has exclusive rights to its output. In 2005, the PSCW approved this affiliated lease agreement with initial monthly payments of approximately $1.3 million. The lease payments were based on a 50% debt to capital ratio, a return on equity of 10.9%, a cost of debt based on the cost of senior notes issued by Resources' Non-regulated Generation business in 2005 and certain costs incurred to construct the facility. In accordance with its order approving the lease agreement, the PSCW reserved the right to review the capital structure, return on equity and cost of debt every five years from the date of the order. No revisions to the lease were made in 2010. The capital lease asset is amortized using the straight-line method over the 20-year lease term. Since the inception of the lease in 2005, WPL's retail and wholesale rates have included recovery of the monthly SFEF lease payments. SFEF lease expenses were included in WPL's Consolidated Statements of Income as follows (in millions):

	2011		2010		2009
Interest expense	$	11.7	$	12.0	$	12.3
Depreciation and amortization		6.2		6.2		6.2
	$	17.9	$	18.2	$	18.5

At Dec. 31, 2011, WPL's estimated future minimum capital lease payments for SFEF were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total		Less: amount representing interest		Present value of net minimum capital lease payments
SFEF	$	15	$	15	$	15	$	15	$	15	$	128	$	203	$	96	$	107

WPL [Member]

Leases

(3) LEASES

(a) Operating Leases - Alliant Energy, IPL and WPL have entered into various agreements related to property, plant and equipment rights that are accounted for as operating leases. Alliant Energy's and WPL's most significant operating leases relate to certain PPAs. These PPAs contain fixed rental payments related to capacity and contingent rental payments related to the energy portion (actual MWhs) of the respective PPAs. Rental expenses associated with Alliant Energy's, IPL's and WPL's operating leases were as follows (in millions):

	Alliant Energy						IPL						WPL
	2011		2010		2009		2011		2010		2009		2011		2010		2009
Operating lease rental expenses (excluding contingent rentals)	$	72	$	73	$	79	$	4	$	4	$	4	$	63	$	63	$	68
Contingent rentals related to certain PPAs		4		4		7		—		—		—		4		4		7
Other contingent rentals		1		1		1		1		1		1		—		—		—
	$	77	$	78	$	87	$	5	$	5	$	5	$	67	$	67	$	75

At Dec. 31, 2011, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total
Alliant Energy
Riverside Energy Center (Riverside) PPA (a)	$	59	$	17	$	—	$	—	$	—	$	—	$	76
Synthetic leases (b)		43		2		4		1		—		—		50
Other		8		9		4		4		3		20		48
	$	110	$	28	$	8	$	5	$	3	$	20	$	174
IPL
Operating leases	$	4	$	4	$	3	$	3	$	2	$	17	$	33
WPL
Riverside PPA (a)	$	59	$	17	$	—	$	—	$	—	$	—	$	76
Synthetic leases (b)		1		2		4		1		—		—		8
Other		4		5		1		—		—		1		11
	$	64	$	24	$	5	$	1	$	—	$	1	$	95

(a) In November 2011, WPL filed a Certificate of Authority with the PSCW for the purchase of Riverside in the fourth quarter of 2012. A decision from the PSCW is expected in April 2012. If Riverside is purchased in the fourth quarter of 2012, capacity payments scheduled for 2013 will not occur. Refer to Note 20 for additional information on the Riverside PPA.

(b) The synthetic leases relate to the financing of certain corporate headquarters (Alliant Energy) and utility railcars (Alliant Energy and WPL). The entities that lease these assets to Alliant Energy and WPL do not meet consolidation requirements and are not included on Alliant Energy's or WPL's Consolidated Balance Sheets. Alliant Energy and WPL have guaranteed the residual value of the related assets, which total $45 million and $4 million, respectively, in the aggregate. The guarantees extend through the maturity of each respective underlying lease with remaining terms up to four years. Residual value guarantee amounts have been included in the future minimum operating lease payments. Alliant Energy currently plans to exercise its option under the corporate headquarters lease and purchase the building at the expiration of the lease term in April 2012.

(b) Capital Leases -

Alliant Energy - At Dec. 31, 2011 and 2010, Alliant Energy's gross assets under its capital leases (excluding capital leases between related parties) were $7 million and $9 million, and the related accumulated amortization was $4 million and $3 million, respectively. At Dec. 31, 2011, Alliant Energy's future minimum capital lease payments were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total		Less: amount representing interest		Present value of net minimum capital lease payments
Capital leases	$	1	$	1	$	1	$	—	$	—	$	1	$	4	$	1	$	3

WPL - In 2005, WPL entered into a 20-year agreement with Resources' Non-regulated Generation business to lease the Sheboygan Falls Energy Facility (SFEF), with an option for two lease renewal periods thereafter. The lease became effective in 2005 when SFEF began commercial operation. WPL is responsible for the operation of SFEF and has exclusive rights to its output. In 2005, the PSCW approved this affiliated lease agreement with initial monthly payments of approximately $1.3 million. The lease payments were based on a 50% debt to capital ratio, a return on equity of 10.9%, a cost of debt based on the cost of senior notes issued by Resources' Non-regulated Generation business in 2005 and certain costs incurred to construct the facility. In accordance with its order approving the lease agreement, the PSCW reserved the right to review the capital structure, return on equity and cost of debt every five years from the date of the order. No revisions to the lease were made in 2010. The capital lease asset is amortized using the straight-line method over the 20-year lease term. Since the inception of the lease in 2005, WPL's retail and wholesale rates have included recovery of the monthly SFEF lease payments. SFEF lease expenses were included in WPL's Consolidated Statements of Income as follows (in millions):

	2011		2010		2009
Interest expense	$	11.7	$	12.0	$	12.3
Depreciation and amortization		6.2		6.2		6.2
	$	17.9	$	18.2	$	18.5

At Dec. 31, 2011, WPL's estimated future minimum capital lease payments for SFEF were as follows (in millions):

	2012		2013		2014		2015		2016		Thereafter		Total		Less: amount representing interest		Present value of net minimum capital lease payments
SFEF	$	15	$	15	$	15	$	15	$	15	$	128	$	203	$	96	$	107