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Derivative Instruments
 12 Months Ended
Dec. 31, 2012
Derivative [Line Items]  
Derivative Instruments
DERIVATIVE INSTRUMENTS
Commodity and Foreign Exchange 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 11 for detailed discussion of Alliant Energy’s, IPL’s and WPL’s derivative instruments as of December 31, 2012 and 2011.

Notional Amounts - As of December 31, 2012, notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts, FTRs and coal contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):
 
2013
 
2014
 
2015
 
Total
Alliant Energy
 
 
 
 
 
 
 
Electricity (MWhs)
4,130

 
2,670

 
876

 
7,676

FTRs (MWs)
28

 
—

 
—

 
28

Natural gas (dekatherms (Dths))
72,105

 
7,747

 
450

 
80,302

Coal (tons)
896

 
981

 
562

 
2,439

IPL
 
 
 
 
 
 
 
Electricity (MWhs)
2,209

 
549

 
—

 
2,758

FTRs (MWs)
15

 
—

 
—

 
15

Natural gas (Dths)
57,731

 
3,535

 
225

 
61,491

WPL
 
 
 
 
 
 
 
Electricity (MWhs)
1,921

 
2,121

 
876

 
4,918

FTRs (MWs)
13

 
—

 
—

 
13

Natural gas (Dths)
14,374

 
4,212

 
225

 
18,811

Coal (tons)
896

 
981

 
562

 
2,439



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 December 31, 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 Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
Commodity contracts
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Current derivative assets

$23.5

 

$12.7

 

$17.0

 

$9.2

 

$6.5

 

$3.5

Non-current derivative assets
2.7

 
3.0

 
0.5

 
1.4

 
2.2

 
1.6

Current derivative liabilities
31.1

 
55.9

 
14.1

 
24.5

 
17.0

 
31.4

Non-current derivative liabilities
9.3

 
22.1

 
2.0

 
9.1

 
7.3

 
13.0



Changes in unrealized gains (losses) from derivative instruments not designated as hedging instruments were recorded with offsets to regulatory assets or regulatory liabilities on the Consolidated Balance Sheets as follows (in millions):
 
 
Alliant Energy
 
IPL
 
WPL
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Commodity contracts
Regulatory assets

($37.9
)
 

($79.6
)
 

($78.4
)
 

($16.8
)
 

($42.4
)
 

($47.8
)
 

($21.1
)
 

($37.2
)
 

($30.6
)
Commodity contracts
Regulatory liabilities
20.3

 
9.3

 
11.5

 
13.5

 
6.4

 
10.6

 
6.8

 
2.9

 
0.9

Foreign exchange contracts
Regulatory liabilities
—

 
—

 
3.8

 
—

 
—

 
3.8

 
—

 
—

 
—



Net unrealized losses from commodity contracts during 2012, 2011 and 2010 were primarily due to impacts of decreases in electricity and natural gas prices during such periods.

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/or 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 December 31, 2012 was $40.4 million, $16.1 million and $24.3 million for Alliant Energy, IPL and WPL, respectively. At December 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 $0.5 million of cash collateral. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on December 31, 2012, Alliant Energy, IPL and WPL would be required to post an additional $39.9 million, $15.6 million and $24.3 million, respectively, of credit support to their counterparties.
IPL [Member]
  
Derivative [Line Items]  
Derivative Instruments
DERIVATIVE INSTRUMENTS
Commodity and Foreign Exchange 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 11 for detailed discussion of Alliant Energy’s, IPL’s and WPL’s derivative instruments as of December 31, 2012 and 2011.

Notional Amounts - As of December 31, 2012, notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts, FTRs and coal contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):
 
2013
 
2014
 
2015
 
Total
Alliant Energy
 
 
 
 
 
 
 
Electricity (MWhs)
4,130

 
2,670

 
876

 
7,676

FTRs (MWs)
28

 
—

 
—

 
28

Natural gas (dekatherms (Dths))
72,105

 
7,747

 
450

 
80,302

Coal (tons)
896

 
981

 
562

 
2,439

IPL
 
 
 
 
 
 
 
Electricity (MWhs)
2,209

 
549

 
—

 
2,758

FTRs (MWs)
15

 
—

 
—

 
15

Natural gas (Dths)
57,731

 
3,535

 
225

 
61,491

WPL
 
 
 
 
 
 
 
Electricity (MWhs)
1,921

 
2,121

 
876

 
4,918

FTRs (MWs)
13

 
—

 
—

 
13

Natural gas (Dths)
14,374

 
4,212

 
225

 
18,811

Coal (tons)
896

 
981

 
562

 
2,439



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 December 31, 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 Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
Commodity contracts
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Current derivative assets

$23.5

 

$12.7

 

$17.0

 

$9.2

 

$6.5

 

$3.5

Non-current derivative assets
2.7

 
3.0

 
0.5

 
1.4

 
2.2

 
1.6

Current derivative liabilities
31.1

 
55.9

 
14.1

 
24.5

 
17.0

 
31.4

Non-current derivative liabilities
9.3

 
22.1

 
2.0

 
9.1

 
7.3

 
13.0



Changes in unrealized gains (losses) from derivative instruments not designated as hedging instruments were recorded with offsets to regulatory assets or regulatory liabilities on the Consolidated Balance Sheets as follows (in millions):
 
 
Alliant Energy
 
IPL
 
WPL
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Commodity contracts
Regulatory assets

($37.9
)
 

($79.6
)
 

($78.4
)
 

($16.8
)
 

($42.4
)
 

($47.8
)
 

($21.1
)
 

($37.2
)
 

($30.6
)
Commodity contracts
Regulatory liabilities
20.3

 
9.3

 
11.5

 
13.5

 
6.4

 
10.6

 
6.8

 
2.9

 
0.9

Foreign exchange contracts
Regulatory liabilities
—

 
—

 
3.8

 
—

 
—

 
3.8

 
—

 
—

 
—



Net unrealized losses from commodity contracts during 2012, 2011 and 2010 were primarily due to impacts of decreases in electricity and natural gas prices during such periods.

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/or 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 December 31, 2012 was $40.4 million, $16.1 million and $24.3 million for Alliant Energy, IPL and WPL, respectively. At December 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 $0.5 million of cash collateral. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on December 31, 2012, Alliant Energy, IPL and WPL would be required to post an additional $39.9 million, $15.6 million and $24.3 million, respectively, of credit support to their counterparties.
WPL [Member]
  
Derivative [Line Items]  
Derivative Instruments
DERIVATIVE INSTRUMENTS
Commodity and Foreign Exchange 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 11 for detailed discussion of Alliant Energy’s, IPL’s and WPL’s derivative instruments as of December 31, 2012 and 2011.

Notional Amounts - As of December 31, 2012, notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts, FTRs and coal contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):
 
2013
 
2014
 
2015
 
Total
Alliant Energy
 
 
 
 
 
 
 
Electricity (MWhs)
4,130

 
2,670

 
876

 
7,676

FTRs (MWs)
28

 
—

 
—

 
28

Natural gas (dekatherms (Dths))
72,105

 
7,747

 
450

 
80,302

Coal (tons)
896

 
981

 
562

 
2,439

IPL
 
 
 
 
 
 
 
Electricity (MWhs)
2,209

 
549

 
—

 
2,758

FTRs (MWs)
15

 
—

 
—

 
15

Natural gas (Dths)
57,731

 
3,535

 
225

 
61,491

WPL
 
 
 
 
 
 
 
Electricity (MWhs)
1,921

 
2,121

 
876

 
4,918

FTRs (MWs)
13

 
—

 
—

 
13

Natural gas (Dths)
14,374

 
4,212

 
225

 
18,811

Coal (tons)
896

 
981

 
562

 
2,439



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 December 31, 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 Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
Commodity contracts
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Current derivative assets

$23.5

 

$12.7

 

$17.0

 

$9.2

 

$6.5

 

$3.5

Non-current derivative assets
2.7

 
3.0

 
0.5

 
1.4

 
2.2

 
1.6

Current derivative liabilities
31.1

 
55.9

 
14.1

 
24.5

 
17.0

 
31.4

Non-current derivative liabilities
9.3

 
22.1

 
2.0

 
9.1

 
7.3

 
13.0



Changes in unrealized gains (losses) from derivative instruments not designated as hedging instruments were recorded with offsets to regulatory assets or regulatory liabilities on the Consolidated Balance Sheets as follows (in millions):
 
 
Alliant Energy
 
IPL
 
WPL
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Commodity contracts
Regulatory assets

($37.9
)
 

($79.6
)
 

($78.4
)
 

($16.8
)
 

($42.4
)
 

($47.8
)
 

($21.1
)
 

($37.2
)
 

($30.6
)
Commodity contracts
Regulatory liabilities
20.3

 
9.3

 
11.5

 
13.5

 
6.4

 
10.6

 
6.8

 
2.9

 
0.9

Foreign exchange contracts
Regulatory liabilities
—

 
—

 
3.8

 
—

 
—

 
3.8

 
—

 
—

 
—



Net unrealized losses from commodity contracts during 2012, 2011 and 2010 were primarily due to impacts of decreases in electricity and natural gas prices during such periods.

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/or 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 December 31, 2012 was $40.4 million, $16.1 million and $24.3 million for Alliant Energy, IPL and WPL, respectively. At December 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 $0.5 million of cash collateral. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on December 31, 2012, Alliant Energy, IPL and WPL would be required to post an additional $39.9 million, $15.6 million and $24.3 million, respectively, of credit support to their counterparties.