(10) DERIVATIVE INSTRUMENTS

Commodity Derivatives—

Purpose—Alliant Energy, IPL and WPL periodically use derivative instruments for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. Refer to Note 9 for detailed discussion of Alliant Energy's, IPL's and WPL's derivative instruments as of March 31, 2012 and Dec. 31, 2011.

Notional Amounts—As of March 31, 2012, notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):


	2012		2013		2014		Total
Alliant Energy
Electricity (megawatt-hours (MWhs))		3,994		3,530		509		8,033
FTRs (MWs)		8		—		—		8
Natural gas (dekatherms (Dths))		41,958		20,460		4,145		66,563

IPL
Electricity (MWhs)		2,416		1,725		71		4,212
FTRs (MWs)		5		—		—		5
Natural gas (Dths)		26,291		9,237		1,420		36,948

WPL
Electricity (MWhs)		1,578		1,805		438		3,821
FTRs (MWs)		3		—		—		3
Natural gas (Dths)		15,667		11,223		2,725		29,615

The notional amounts in the above table were computed by aggregating the absolute value of purchase and sale positions within commodities for each delivery year.

Financial Statement Presentation—Alliant Energy, IPL and WPL record derivative instruments at fair value each reporting date on the balance sheet as assets or liabilities. At March 31, 2012 and Dec. 31, 2011, the fair values of current derivative assets were included in "Prepayments and other," non-current derivative assets were included in "Deferred charges and other," current derivative liabilities were included in "Derivative liabilities" and non-current derivative liabilities were included in "Other long-term liabilities and deferred credits" on the Condensed Consolidated Balance Sheets as follows (in millions):


	Alliant Energy				IPL				WPL
	March 31,		Dec. 31,		March 31,		Dec. 31,		March 31,		Dec. 31,
Commodity contracts	2012		2011		2012		2011		2012		2011
Current derivative assets	$	5.6	$	12.7	$	3.9	$	9.2	$	1.7	$	3.5
Non-current derivative assets		4.8		3.0		2.0		1.4		2.8		1.6
Current derivative liabilities		61.9		55.9		30.1		24.5		31.8		31.4
Non-current derivative liabilities		21.3		22.1		8.0		9.1		13.3		13.0

Alliant Energy, IPL and WPL generally record gains and losses from IPL's and WPL's derivative instruments with offsets to regulatory assets or regulatory liabilities, based on their fuel and natural gas cost recovery mechanisms, as well as other specific regulatory authorizations. For the three months ended March 31, 2012 and 2011, gains and losses from commodity derivative instruments not designated as hedging instruments were recorded as follows (in millions):


	Gains (Losses)
Location Recorded	Alliant Energy						IPL						WPL
on Balance Sheets	2012			2011			2012			2011			2012			2011
Regulatory assets	($	39.7	)	($	4.0	)	($	22.2	)	($	2.4	)	($	17.5	)	($	1.6	)
Regulatory liabilities		1.4			1.5			—			0.8			1.4			0.7

Losses from commodity contracts during the three months ended March 31, 2012 were primarily due to impacts of decreases in electricity and natural gas prices during such period.

Credit Risk-related Contingent Features—Alliant Energy, IPL and WPL have entered into various agreements that contain credit risk-related contingent features including requirements for them to maintain certain credit ratings from each of the major credit rating agencies and limitations on their liability positions under the various agreements based upon their credit ratings. In the event of a downgrade in their credit ratings or if their liability positions exceed certain contractual limits, Alliant Energy, IPL or WPL may need to provide credit support in the form of letters of credit or cash collateral up to the amount of their exposure under the contracts, or may need to unwind the contracts and pay the underlying liability positions.

Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. The aggregate fair value of all derivatives with credit risk-related contingent features that were in a net liability position on March 31, 2012 was $83.2 million, $38.1 million and $45.1 million for Alliant Energy, IPL and WPL, respectively. At March 31, 2012, Alliant Energy, IPL and WPL all had investment-grade credit ratings. However, IPL exceeded its liability position with one counterparty requiring it to post $1.0 million of cash collateral. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on March 31, 2012, Alliant Energy, IPL and WPL would be required to post an additional $82.2 million, $37.1 million and $45.1 million, respectively, of credit support to their counterparties.

Derivative Instruments

(10) DERIVATIVE INSTRUMENTS

Commodity Derivative—

Purpose—Alliant Energy, IPL and WPL periodically use derivative instruments for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. Refer to Note 9 for detailed discussion of Alliant Energy's, IPL's and WPL's derivative instruments as of March 31, 2012 and Dec. 31, 2011.

Notional Amounts—As of March 31, 2012, notional amounts related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):


	2012		2013		2014		Total
Alliant Energy
Electricity (megawatt-hours (MWhs))		3,994		3,530		509		8,033
FTRs (MWs)		8		—		—		8
Natural gas (dekatherms (Dths))		41,958		20,460		4,145		66,563

IPL
Electricity (MWhs)		2,416		1,725		71		4,212
FTRs (MWs)		5		—		—		5
Natural gas (Dths)		26,291		9,237		1,420		36,948

WPL
Electricity (MWhs)		1,578		1,805		438		3,821
FTRs (MWs)		3		—		—		3
Natural gas (Dths)		15,667		11,223		2,725		29,615

The notional amounts in the above table were computed by aggregating the absolute value of purchase and sale positions within commodities for each year.

Financial Statement Presentation—Alliant Energy, IPL and WPL record derivative instruments at fair value each reporting date on the balance sheet as assets or liabilities. At March 31, 2012 and Dec. 31, 2011, the fair values of current derivative assets were included in "Prepayments and other," non-current derivative assets were included in "Deferred charges and other," current derivative liabilities were included in "Derivative liabilities" and non-current derivative liabilities were included in "Other long-term liabilities and deferred credits" on the Condensed Consolidated Balance Sheets as follows (in millions):


	Alliant Energy				IPL				WPL
	March 31,		Dec. 31,		March 31,		Dec. 31,		March 31,		Dec. 31,
Commodity contracts	2012		2011		2012		2011		2012		2011
Current derivative assets	$	5.6	$	12.7	$	3.9	$	9.2	$	1.7	$	3.5
Non-current derivative assets		4.8		3.0		2.0		1.4		2.8		1.6
Current derivative liabilities		61.9		55.9		30.1		24.5		31.8		31.4
Non-current derivative liabilities		21.3		22.1		8.0		9.1		13.3		13.0

Alliant Energy, IPL and WPL generally record gains and losses from IPL's and WPL's derivative instruments with offsets to regulatory assets or regulatory liabilities, based on their fuel and natural gas cost recovery mechanisms, as well as other specific regulatory authorizations. For the three months ended March 31, 2012 and 2011, gains and losses from commodity derivative instruments not designated as hedging instruments were recorded as follows (in millions):


	Gains (Losses)
Location Recorded	Alliant Energy						IPL						WPL
on Balance Sheets	2012			2011			2012			2011			2012			2011
Regulatory assets	($	39.7	)	($	4.0	)	($	22.2	)	($	2.4	)	($	17.5	)	($	1.6	)
Regulatory liabilities		1.4			1.5			—			0.8			1.4			0.7

Losses from commodity contracts during the three months ended March 31, 2012 were primarily due to impacts of decreases in electricity and natural gas prices during such period.

Credit Risk-related Contingent Features—Alliant Energy, IPL and WPL have entered into various agreements that contain credit risk-related contingent features including requirements for them to maintain certain credit ratings from each of the major credit rating agencies and limitations on their liability positions under the various agreements based upon their credit ratings. In the event of a downgrade in their credit ratings or if their liability positions exceed certain contractual limits, Alliant Energy, IPL or WPL may need to provide credit support in the form of letters of credit or cash collateral up to the amount of their exposure under the contracts, or may need to unwind the contracts and pay the underlying liability positions.

Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. The aggregate fair value of all derivatives with credit risk-related contingent features that were in a net liability position on March 31, 2012 was $83.2 million, $38.1 million and $45.1 million for Alliant Energy, IPL and WPL, respectively. At March 31, 2012, Alliant Energy, IPL and WPL all had investment-grade credit ratings. However, IPL exceeded its liability position with one counterparty requiring it to post $1.0 million of cash collateral. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on March 31, 2012, Alliant Energy, IPL and WPL would be required to post an additional $82.2 million, $37.1 million and $45.1 million, respectively, of credit support to their counterparties.

Derivative Instruments

(10) DERIVATIVE INSTRUMENTS

Commodity Derivative—

Purpose—Alliant Energy, IPL and WPL periodically use derivative instruments for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. Refer to Note 9 for detailed discussion of Alliant Energy's, IPL's and WPL's derivative instruments as of March 31, 2012 and Dec. 31, 2011.

Notional Amounts—As of March 31, 2012, notional amounts related to outstanding swap contracts, option contracts, physical forward contracts and FTRs that were accounted for as commodity derivative instruments were as follows (units in thousands):


	2012		2013		2014		Total
Alliant Energy
Electricity (megawatt-hours (MWhs))		3,994		3,530		509		8,033
FTRs (MWs)		8		—		—		8
Natural gas (dekatherms (Dths))		41,958		20,460		4,145		66,563

IPL
Electricity (MWhs)		2,416		1,725		71		4,212
FTRs (MWs)		5		—		—		5
Natural gas (Dths)		26,291		9,237		1,420		36,948

WPL
Electricity (MWhs)		1,578		1,805		438		3,821
FTRs (MWs)		3		—		—		3
Natural gas (Dths)		15,667		11,223		2,725		29,615

The notional amounts in the above table were computed by aggregating the absolute value of purchase and sale positions within commodities for each year.

Financial Statement Presentation—Alliant Energy, IPL and WPL record derivative instruments at fair value each reporting date on the balance sheet as assets or liabilities. At March 31, 2012 and Dec. 31, 2011, the fair values of current derivative assets were included in "Prepayments and other," non-current derivative assets were included in "Deferred charges and other," current derivative liabilities were included in "Derivative liabilities" and non-current derivative liabilities were included in "Other long-term liabilities and deferred credits" on the Condensed Consolidated Balance Sheets as follows (in millions):


	Alliant Energy				IPL				WPL
	March 31,		Dec. 31,		March 31,		Dec. 31,		March 31,		Dec. 31,
Commodity contracts	2012		2011		2012		2011		2012		2011
Current derivative assets	$	5.6	$	12.7	$	3.9	$	9.2	$	1.7	$	3.5
Non-current derivative assets		4.8		3.0		2.0		1.4		2.8		1.6
Current derivative liabilities		61.9		55.9		30.1		24.5		31.8		31.4
Non-current derivative liabilities		21.3		22.1		8.0		9.1		13.3		13.0

Alliant Energy, IPL and WPL generally record gains and losses from IPL's and WPL's derivative instruments with offsets to regulatory assets or regulatory liabilities, based on their fuel and natural gas cost recovery mechanisms, as well as other specific regulatory authorizations. For the three months ended March 31, 2012 and 2011, gains and losses from commodity derivative instruments not designated as hedging instruments were recorded as follows (in millions):


	Gains (Losses)
Location Recorded	Alliant Energy						IPL						WPL
on Balance Sheets	2012			2011			2012			2011			2012			2011
Regulatory assets	($	39.7	)	($	4.0	)	($	22.2	)	($	2.4	)	($	17.5	)	($	1.6	)
Regulatory liabilities		1.4			1.5			—			0.8			1.4			0.7

Losses from commodity contracts during the three months ended March 31, 2012 were primarily due to impacts of decreases in electricity and natural gas prices during such period.

Credit Risk-related Contingent Features—Alliant Energy, IPL and WPL have entered into various agreements that contain credit risk-related contingent features including requirements for them to maintain certain credit ratings from each of the major credit rating agencies and limitations on their liability positions under the various agreements based upon their credit ratings. In the event of a downgrade in their credit ratings or if their liability positions exceed certain contractual limits, Alliant Energy, IPL or WPL may need to provide credit support in the form of letters of credit or cash collateral up to the amount of their exposure under the contracts, or may need to unwind the contracts and pay the underlying liability positions.

Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. The aggregate fair value of all derivatives with credit risk-related contingent features that were in a net liability position on March 31, 2012 was $83.2 million, $38.1 million and $45.1 million for Alliant Energy, IPL and WPL, respectively. At March 31, 2012, Alliant Energy, IPL and WPL all had investment-grade credit ratings. However, IPL exceeded its liability position with one counterparty requiring it to post $1.0 million of cash collateral. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on March 31, 2012, Alliant Energy, IPL and WPL would be required to post an additional $82.2 million, $37.1 million and $45.1 million, respectively, of credit support to their counterparties.