Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at December 31 were as follows (in millions):

	Alliant Energy				IPL				WPL
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
2014
Assets:
Derivative assets (Note 15)		$38.6		$38.6		$28.0		$28.0		$10.6		$10.6
Deferred proceeds (sales of receivables) (Note 5(b))	177.2		177.2		177.2		177.2		—		—
Capitalization and liabilities:
Long-term debt (including current maturities) (Note 9(b))	3,789.7		4,418.2		1,768.7		2,053.0		1,573.9		1,908.9
Cumulative preferred stock (Note 8)	200.0		200.2		200.0		200.2		—		—
Derivative liabilities (Note 15)	37.6		37.6		19.5		19.5		18.1		18.1
2013
Assets:
Derivative assets (Note 15)	26.7		26.7		21.1		21.1		5.6		5.6
Deferred proceeds (sales of receivables) (Note 5(b))	203.5		203.5		203.5		203.5		—		—
Capitalization and liabilities:
Long-term debt (including current maturities) (Note 9(b))	3,336.3		3,712.3		1,558.4		1,726.4		1,332.1		1,532.9
Cumulative preferred stock (Note 8)	200.0		167.0		200.0		167.0		—		—
Derivative liabilities (Note 15)	20.8		20.8		5.2		5.2		15.6		15.6

Valuation Hierarchy - Fair value measurement accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. At each reporting date, Level 1 items included IPL’s 5.1% cumulative preferred stock.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. At each reporting date, Level 2 items included certain non-exchange traded commodity contracts and substantially all of the long-term debt instruments.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation. At each reporting date, Level 3 items included FTRs, certain non-exchange traded commodity contracts and IPL’s deferred proceeds.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Valuation Techniques -

Derivative assets and derivative liabilities - Derivative instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs, and risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:

Risk management purpose	Type of instrument
Mitigate pricing volatility for:
Electricity purchased to supply customers	Electric swap and physical forward contracts (IPL and WPL)
Fuel used to supply natural gas-fired EGUs	Natural gas swap contracts (IPL and WPL)
	Natural gas options and physical forward contracts (WPL)
Natural gas supplied to retail customers	Natural gas options and physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Fuel used at coal-fired EGUs	Coal physical forward contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacity	Natural gas physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Manage transmission congestion costs	FTRs (IPL and WPL)

Swap, option and physical forward commodity contracts were non-exchange-based derivative instruments and were valued using indicative price quotations from a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations, from market publications or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. A portion of these indicative price quotations were corroborated using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. Commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. Swap, option and physical forward commodity contracts were predominately at liquid trading points. FTRs were valued using monthly or annual auction shadow prices from relevant auctions and were categorized as Level 3. Refer to Note 15 for additional details of derivative assets and derivative liabilities.

The fair value measurements of Level 3 derivative instruments include observable and unobservable inputs. The observable inputs are obtained from third-party pricing sources, counterparties and brokers and include bids, offers, historical transactions (including historical price differences between locations with both observable and unobservable prices) and executed trades. The significant unobservable inputs used in the fair value measurement of commodity contracts are forecasted electricity, natural gas and coal prices, and the expected volatility of such prices. Significant changes in any of those inputs would result in a significantly lower or higher fair value measurement.

Deferred proceeds (sales of receivables) - The fair value of IPL’s deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the cost approach valuation technique. The fair value represents the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold due to the short-term nature of the collection period. These inputs were considered unobservable and deferred proceeds were categorized as Level 3. Deferred proceeds represent IPL’s maximum exposure to loss related to the receivables sold. Refer to Note 5(b) for additional information regarding deferred proceeds.

Long-term debt (including current maturities) - The fair value of long-term debt instruments was based on quoted market prices for similar liabilities at each reporting date or on a discounted cash flow methodology, which utilizes assumptions of current market pricing curves at each reporting date. Refer to Note 9(b) for additional information regarding long-term debt.

Cumulative preferred stock - The fair value of IPL’s 5.1% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange at each reporting date. Refer to Note 8 for additional information regarding cumulative preferred stock.

Items subject to fair value measurement disclosure requirements at December 31 were as follows (in millions):

Alliant Energy	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$38.6		$—		$2.6		$36.0		$26.7		$—		$4.7		$22.0
Deferred proceeds	177.2		—		—		177.2		203.5		—		—		203.5
Capitalization and liabilities:
Long-term debt (including current maturities)	4,418.2		—		4,414.9		3.3		3,712.3		—		3,711.8		0.5
Cumulative preferred stock	200.2		200.2		—		—		167.0		167.0		—		—
Derivatives - commodity contracts	37.6		—		19.5		18.1		20.8		—		3.2		17.6

IPL	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$28.0		$—		$2.4		$25.6		$21.1		$—		$3.0		$18.1
Deferred proceeds	177.2		—		—		177.2		203.5		—		—		203.5
Capitalization and liabilities:
Long-term debt (including current maturities)	2,053.0		—		2,053.0		—		1,726.4		—		1,726.4		—
Cumulative preferred stock	200.2		200.2		—		—		167.0		167.0		—		—
Derivatives - commodity contracts	19.5		—		13.3		6.2		5.2		—		1.7		3.5

WPL	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$10.6		$—		$0.2		$10.4		$5.6		$—		$1.7		$3.9
Capitalization and liabilities:
Long-term debt (including current maturities)	1,908.9		—		1,908.9		—		1,532.9		—		1,532.9		—
Derivatives - commodity contracts	18.1		—		6.2		11.9		15.6		—		1.5		14.1

Unrealized gains and losses from derivative instruments are generally recorded with offsets to regulatory assets or regulatory liabilities, based on fuel and natural gas cost recovery mechanisms, as well as other specific regulatory authorizations. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities resulted in comparable changes to regulatory assets, and the changes in the fair value of derivative assets resulted in comparable changes to regulatory liabilities.

Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):

Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2014			2013			2014			2013
Beginning balance, January 1		$4.4			$11.9			$203.5			$66.8
Total net gains (losses) (realized/unrealized) included in changes in net assets	11.1			(12.7		)	—			—
Transfers into Level 3 (a)	—			0.1			—			—
Transfers out of Level 3 (b)	—			2.0			—			—
Purchases	76.7			50.9			—			—
Sales	(2.2		)	—			—			—
Settlements (c)	(72.1		)	(47.8		)	(26.3		)	136.7
Ending balance, December 31		$17.9			$4.4			$177.2			$203.5
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at December 31		($0.4	)		($12.7	)		$—			$—

IPL	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2014			2013			2014			2013
Beginning balance, January 1		$14.6			$12.5			$203.5			$66.8
Total net losses (realized/unrealized) included in changes in net assets	(5.9		)	(4.6		)	—			—
Transfers out of Level 3 (b)	—			1.0			—			—
Purchases	68.8			46.1			—			—
Sales	(2.0		)	—			—			—
Settlements (c)	(56.1		)	(40.4		)	(26.3		)	136.7
Ending balance, December 31		$19.4			$14.6			$177.2			$203.5
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at December 31		($9.3	)		($4.6	)		$—			$—

WPL	Commodity Contract Derivative
	Assets and (Liabilities), net
	2014			2013
Beginning balance, January 1		($10.2	)		($0.6	)
Total net gains (losses) (realized/unrealized) included in changes in net assets	17.0			(8.1		)
Transfers into Level 3 (a)	—			0.1
Transfers out of Level 3 (b)	—			1.0
Purchases	7.9			4.8
Sales	(0.2		)	—
Settlements	(16.0		)	(7.4		)
Ending balance, December 31		($1.5	)		($10.2	)
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at December 31		$8.9			($8.1	)

(a) Markets for similar assets and liabilities became inactive and observable market inputs became unavailable for transfers into Level 3. The transfers were valued as of the beginning of the period.

(b) Observable market inputs became available for certain commodity contracts previously classified as Level 3 for transfers out of Level 3. The transfers were valued as of the beginning of the period.

(c) Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold.

Commodity Contracts - The fair value of electric, natural gas and coal commodity contracts categorized as Level 3 was recognized as net derivative assets (liabilities) at December 31 as follows (in millions):

	Alliant Energy					IPL					WPL
	Excluding FTRs			FTRs		Excluding FTRs			FTRs		Excluding FTRs			FTRs
2014		($7.0	)		$24.9		($3.2	)		$22.6		($3.8	)		$2.3
2013	(13.9		)	18.3		(2.1		)	16.7		(11.8		)	1.6

IPL [Member]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at December 31 were as follows (in millions):

	Alliant Energy				IPL				WPL
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
2014
Assets:
Derivative assets (Note 15)		$38.6		$38.6		$28.0		$28.0		$10.6		$10.6
Deferred proceeds (sales of receivables) (Note 5(b))	177.2		177.2		177.2		177.2		—		—
Capitalization and liabilities:
Long-term debt (including current maturities) (Note 9(b))	3,789.7		4,418.2		1,768.7		2,053.0		1,573.9		1,908.9
Cumulative preferred stock (Note 8)	200.0		200.2		200.0		200.2		—		—
Derivative liabilities (Note 15)	37.6		37.6		19.5		19.5		18.1		18.1
2013
Assets:
Derivative assets (Note 15)	26.7		26.7		21.1		21.1		5.6		5.6
Deferred proceeds (sales of receivables) (Note 5(b))	203.5		203.5		203.5		203.5		—		—
Capitalization and liabilities:
Long-term debt (including current maturities) (Note 9(b))	3,336.3		3,712.3		1,558.4		1,726.4		1,332.1		1,532.9
Cumulative preferred stock (Note 8)	200.0		167.0		200.0		167.0		—		—
Derivative liabilities (Note 15)	20.8		20.8		5.2		5.2		15.6		15.6

Valuation Hierarchy - Fair value measurement accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. At each reporting date, Level 1 items included IPL’s 5.1% cumulative preferred stock.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. At each reporting date, Level 2 items included certain non-exchange traded commodity contracts and substantially all of the long-term debt instruments.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation. At each reporting date, Level 3 items included FTRs, certain non-exchange traded commodity contracts and IPL’s deferred proceeds.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Valuation Techniques -

Derivative assets and derivative liabilities - Derivative instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs, and risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:

Risk management purpose	Type of instrument
Mitigate pricing volatility for:
Electricity purchased to supply customers	Electric swap and physical forward contracts (IPL and WPL)
Fuel used to supply natural gas-fired EGUs	Natural gas swap contracts (IPL and WPL)
	Natural gas options and physical forward contracts (WPL)
Natural gas supplied to retail customers	Natural gas options and physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Fuel used at coal-fired EGUs	Coal physical forward contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacity	Natural gas physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Manage transmission congestion costs	FTRs (IPL and WPL)

Swap, option and physical forward commodity contracts were non-exchange-based derivative instruments and were valued using indicative price quotations from a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations, from market publications or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. A portion of these indicative price quotations were corroborated using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. Commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. Swap, option and physical forward commodity contracts were predominately at liquid trading points. FTRs were valued using monthly or annual auction shadow prices from relevant auctions and were categorized as Level 3. Refer to Note 15 for additional details of derivative assets and derivative liabilities.

The fair value measurements of Level 3 derivative instruments include observable and unobservable inputs. The observable inputs are obtained from third-party pricing sources, counterparties and brokers and include bids, offers, historical transactions (including historical price differences between locations with both observable and unobservable prices) and executed trades. The significant unobservable inputs used in the fair value measurement of commodity contracts are forecasted electricity, natural gas and coal prices, and the expected volatility of such prices. Significant changes in any of those inputs would result in a significantly lower or higher fair value measurement.

Deferred proceeds (sales of receivables) - The fair value of IPL’s deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the cost approach valuation technique. The fair value represents the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold due to the short-term nature of the collection period. These inputs were considered unobservable and deferred proceeds were categorized as Level 3. Deferred proceeds represent IPL’s maximum exposure to loss related to the receivables sold. Refer to Note 5(b) for additional information regarding deferred proceeds.

Long-term debt (including current maturities) - The fair value of long-term debt instruments was based on quoted market prices for similar liabilities at each reporting date or on a discounted cash flow methodology, which utilizes assumptions of current market pricing curves at each reporting date. Refer to Note 9(b) for additional information regarding long-term debt.

Cumulative preferred stock - The fair value of IPL’s 5.1% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange at each reporting date. Refer to Note 8 for additional information regarding cumulative preferred stock.

Items subject to fair value measurement disclosure requirements at December 31 were as follows (in millions):

Alliant Energy	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$38.6		$—		$2.6		$36.0		$26.7		$—		$4.7		$22.0
Deferred proceeds	177.2		—		—		177.2		203.5		—		—		203.5
Capitalization and liabilities:
Long-term debt (including current maturities)	4,418.2		—		4,414.9		3.3		3,712.3		—		3,711.8		0.5
Cumulative preferred stock	200.2		200.2		—		—		167.0		167.0		—		—
Derivatives - commodity contracts	37.6		—		19.5		18.1		20.8		—		3.2		17.6

IPL	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$28.0		$—		$2.4		$25.6		$21.1		$—		$3.0		$18.1
Deferred proceeds	177.2		—		—		177.2		203.5		—		—		203.5
Capitalization and liabilities:
Long-term debt (including current maturities)	2,053.0		—		2,053.0		—		1,726.4		—		1,726.4		—
Cumulative preferred stock	200.2		200.2		—		—		167.0		167.0		—		—
Derivatives - commodity contracts	19.5		—		13.3		6.2		5.2		—		1.7		3.5

WPL	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$10.6		$—		$0.2		$10.4		$5.6		$—		$1.7		$3.9
Capitalization and liabilities:
Long-term debt (including current maturities)	1,908.9		—		1,908.9		—		1,532.9		—		1,532.9		—
Derivatives - commodity contracts	18.1		—		6.2		11.9		15.6		—		1.5		14.1

Unrealized gains and losses from derivative instruments are generally recorded with offsets to regulatory assets or regulatory liabilities, based on fuel and natural gas cost recovery mechanisms, as well as other specific regulatory authorizations. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities resulted in comparable changes to regulatory assets, and the changes in the fair value of derivative assets resulted in comparable changes to regulatory liabilities.

Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):

Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2014			2013			2014			2013
Beginning balance, January 1		$4.4			$11.9			$203.5			$66.8
Total net gains (losses) (realized/unrealized) included in changes in net assets	11.1			(12.7		)	—			—
Transfers into Level 3 (a)	—			0.1			—			—
Transfers out of Level 3 (b)	—			2.0			—			—
Purchases	76.7			50.9			—			—
Sales	(2.2		)	—			—			—
Settlements (c)	(72.1		)	(47.8		)	(26.3		)	136.7
Ending balance, December 31		$17.9			$4.4			$177.2			$203.5
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at December 31		($0.4	)		($12.7	)		$—			$—

IPL	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2014			2013			2014			2013
Beginning balance, January 1		$14.6			$12.5			$203.5			$66.8
Total net losses (realized/unrealized) included in changes in net assets	(5.9		)	(4.6		)	—			—
Transfers out of Level 3 (b)	—			1.0			—			—
Purchases	68.8			46.1			—			—
Sales	(2.0		)	—			—			—
Settlements (c)	(56.1		)	(40.4		)	(26.3		)	136.7
Ending balance, December 31		$19.4			$14.6			$177.2			$203.5
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at December 31		($9.3	)		($4.6	)		$—			$—

WPL	Commodity Contract Derivative
	Assets and (Liabilities), net
	2014			2013
Beginning balance, January 1		($10.2	)		($0.6	)
Total net gains (losses) (realized/unrealized) included in changes in net assets	17.0			(8.1		)
Transfers into Level 3 (a)	—			0.1
Transfers out of Level 3 (b)	—			1.0
Purchases	7.9			4.8
Sales	(0.2		)	—
Settlements	(16.0		)	(7.4		)
Ending balance, December 31		($1.5	)		($10.2	)
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at December 31		$8.9			($8.1	)

(a) Markets for similar assets and liabilities became inactive and observable market inputs became unavailable for transfers into Level 3. The transfers were valued as of the beginning of the period.

(b) Observable market inputs became available for certain commodity contracts previously classified as Level 3 for transfers out of Level 3. The transfers were valued as of the beginning of the period.

(c) Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold.

Commodity Contracts - The fair value of electric, natural gas and coal commodity contracts categorized as Level 3 was recognized as net derivative assets (liabilities) at December 31 as follows (in millions):

	Alliant Energy					IPL					WPL
	Excluding FTRs			FTRs		Excluding FTRs			FTRs		Excluding FTRs			FTRs
2014		($7.0	)		$24.9		($3.2	)		$22.6		($3.8	)		$2.3
2013	(13.9		)	18.3		(2.1		)	16.7		(11.8		)	1.6

WPL [Member]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at December 31 were as follows (in millions):

	Alliant Energy				IPL				WPL
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
2014
Assets:
Derivative assets (Note 15)		$38.6		$38.6		$28.0		$28.0		$10.6		$10.6
Deferred proceeds (sales of receivables) (Note 5(b))	177.2		177.2		177.2		177.2		—		—
Capitalization and liabilities:
Long-term debt (including current maturities) (Note 9(b))	3,789.7		4,418.2		1,768.7		2,053.0		1,573.9		1,908.9
Cumulative preferred stock (Note 8)	200.0		200.2		200.0		200.2		—		—
Derivative liabilities (Note 15)	37.6		37.6		19.5		19.5		18.1		18.1
2013
Assets:
Derivative assets (Note 15)	26.7		26.7		21.1		21.1		5.6		5.6
Deferred proceeds (sales of receivables) (Note 5(b))	203.5		203.5		203.5		203.5		—		—
Capitalization and liabilities:
Long-term debt (including current maturities) (Note 9(b))	3,336.3		3,712.3		1,558.4		1,726.4		1,332.1		1,532.9
Cumulative preferred stock (Note 8)	200.0		167.0		200.0		167.0		—		—
Derivative liabilities (Note 15)	20.8		20.8		5.2		5.2		15.6		15.6

Valuation Hierarchy - Fair value measurement accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. At each reporting date, Level 1 items included IPL’s 5.1% cumulative preferred stock.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. At each reporting date, Level 2 items included certain non-exchange traded commodity contracts and substantially all of the long-term debt instruments.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation. At each reporting date, Level 3 items included FTRs, certain non-exchange traded commodity contracts and IPL’s deferred proceeds.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Valuation Techniques -

Derivative assets and derivative liabilities - Derivative instruments are periodically used for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs, and risk policies are maintained that govern the use of such derivative instruments. Derivative instruments were not designated as hedging instruments and included the following:

Risk management purpose	Type of instrument
Mitigate pricing volatility for:
Electricity purchased to supply customers	Electric swap and physical forward contracts (IPL and WPL)
Fuel used to supply natural gas-fired EGUs	Natural gas swap contracts (IPL and WPL)
	Natural gas options and physical forward contracts (WPL)
Natural gas supplied to retail customers	Natural gas options and physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Fuel used at coal-fired EGUs	Coal physical forward contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacity	Natural gas physical forward contracts (IPL and WPL)
	Natural gas swap contracts (IPL)
Manage transmission congestion costs	FTRs (IPL and WPL)

Swap, option and physical forward commodity contracts were non-exchange-based derivative instruments and were valued using indicative price quotations from a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations, from market publications or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. A portion of these indicative price quotations were corroborated using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. Commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. Swap, option and physical forward commodity contracts were predominately at liquid trading points. FTRs were valued using monthly or annual auction shadow prices from relevant auctions and were categorized as Level 3. Refer to Note 15 for additional details of derivative assets and derivative liabilities.

The fair value measurements of Level 3 derivative instruments include observable and unobservable inputs. The observable inputs are obtained from third-party pricing sources, counterparties and brokers and include bids, offers, historical transactions (including historical price differences between locations with both observable and unobservable prices) and executed trades. The significant unobservable inputs used in the fair value measurement of commodity contracts are forecasted electricity, natural gas and coal prices, and the expected volatility of such prices. Significant changes in any of those inputs would result in a significantly lower or higher fair value measurement.

Deferred proceeds (sales of receivables) - The fair value of IPL’s deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the cost approach valuation technique. The fair value represents the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold due to the short-term nature of the collection period. These inputs were considered unobservable and deferred proceeds were categorized as Level 3. Deferred proceeds represent IPL’s maximum exposure to loss related to the receivables sold. Refer to Note 5(b) for additional information regarding deferred proceeds.

Long-term debt (including current maturities) - The fair value of long-term debt instruments was based on quoted market prices for similar liabilities at each reporting date or on a discounted cash flow methodology, which utilizes assumptions of current market pricing curves at each reporting date. Refer to Note 9(b) for additional information regarding long-term debt.

Cumulative preferred stock - The fair value of IPL’s 5.1% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange at each reporting date. Refer to Note 8 for additional information regarding cumulative preferred stock.

Items subject to fair value measurement disclosure requirements at December 31 were as follows (in millions):

Alliant Energy	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$38.6		$—		$2.6		$36.0		$26.7		$—		$4.7		$22.0
Deferred proceeds	177.2		—		—		177.2		203.5		—		—		203.5
Capitalization and liabilities:
Long-term debt (including current maturities)	4,418.2		—		4,414.9		3.3		3,712.3		—		3,711.8		0.5
Cumulative preferred stock	200.2		200.2		—		—		167.0		167.0		—		—
Derivatives - commodity contracts	37.6		—		19.5		18.1		20.8		—		3.2		17.6

IPL	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$28.0		$—		$2.4		$25.6		$21.1		$—		$3.0		$18.1
Deferred proceeds	177.2		—		—		177.2		203.5		—		—		203.5
Capitalization and liabilities:
Long-term debt (including current maturities)	2,053.0		—		2,053.0		—		1,726.4		—		1,726.4		—
Cumulative preferred stock	200.2		200.2		—		—		167.0		167.0		—		—
Derivatives - commodity contracts	19.5		—		13.3		6.2		5.2		—		1.7		3.5

WPL	2014								2013
	Fair		Level		Level		Level		Fair		Level		Level		Level
	Value		1		2		3		Value		1		2		3
Assets:
Derivatives - commodity contracts		$10.6		$—		$0.2		$10.4		$5.6		$—		$1.7		$3.9
Capitalization and liabilities:
Long-term debt (including current maturities)	1,908.9		—		1,908.9		—		1,532.9		—		1,532.9		—
Derivatives - commodity contracts	18.1		—		6.2		11.9		15.6		—		1.5		14.1

Unrealized gains and losses from derivative instruments are generally recorded with offsets to regulatory assets or regulatory liabilities, based on fuel and natural gas cost recovery mechanisms, as well as other specific regulatory authorizations. Based on these recovery mechanisms, the changes in the fair value of derivative liabilities resulted in comparable changes to regulatory assets, and the changes in the fair value of derivative assets resulted in comparable changes to regulatory liabilities.

Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):

Alliant Energy	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2014			2013			2014			2013
Beginning balance, January 1		$4.4			$11.9			$203.5			$66.8
Total net gains (losses) (realized/unrealized) included in changes in net assets	11.1			(12.7		)	—			—
Transfers into Level 3 (a)	—			0.1			—			—
Transfers out of Level 3 (b)	—			2.0			—			—
Purchases	76.7			50.9			—			—
Sales	(2.2		)	—			—			—
Settlements (c)	(72.1		)	(47.8		)	(26.3		)	136.7
Ending balance, December 31		$17.9			$4.4			$177.2			$203.5
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at December 31		($0.4	)		($12.7	)		$—			$—

IPL	Commodity Contract Derivative
	Assets and (Liabilities), net						Deferred Proceeds
	2014			2013			2014			2013
Beginning balance, January 1		$14.6			$12.5			$203.5			$66.8
Total net losses (realized/unrealized) included in changes in net assets	(5.9		)	(4.6		)	—			—
Transfers out of Level 3 (b)	—			1.0			—			—
Purchases	68.8			46.1			—			—
Sales	(2.0		)	—			—			—
Settlements (c)	(56.1		)	(40.4		)	(26.3		)	136.7
Ending balance, December 31		$19.4			$14.6			$177.2			$203.5
The amount of total net losses for the period included in changes in net assets attributable to the change in unrealized losses relating to assets and liabilities held at December 31		($9.3	)		($4.6	)		$—			$—

WPL	Commodity Contract Derivative
	Assets and (Liabilities), net
	2014			2013
Beginning balance, January 1		($10.2	)		($0.6	)
Total net gains (losses) (realized/unrealized) included in changes in net assets	17.0			(8.1		)
Transfers into Level 3 (a)	—			0.1
Transfers out of Level 3 (b)	—			1.0
Purchases	7.9			4.8
Sales	(0.2		)	—
Settlements	(16.0		)	(7.4		)
Ending balance, December 31		($1.5	)		($10.2	)
The amount of total net gains (losses) for the period included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets and liabilities held at December 31		$8.9			($8.1	)

(a) Markets for similar assets and liabilities became inactive and observable market inputs became unavailable for transfers into Level 3. The transfers were valued as of the beginning of the period.

(b) Observable market inputs became available for certain commodity contracts previously classified as Level 3 for transfers out of Level 3. The transfers were valued as of the beginning of the period.

(c) Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold.

Commodity Contracts - The fair value of electric, natural gas and coal commodity contracts categorized as Level 3 was recognized as net derivative assets (liabilities) at December 31 as follows (in millions):

	Alliant Energy					IPL					WPL
	Excluding FTRs			FTRs		Excluding FTRs			FTRs		Excluding FTRs			FTRs
2014		($7.0	)		$24.9		($3.2	)		$22.6		($3.8	)		$2.3
2013	(13.9		)	18.3		(2.1		)	16.7		(11.8		)	1.6