REGULATORY MATTERS

Regulatory Assets and Regulatory Liabilities -

Regulatory assets were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Tax-related		$961.1		$955.3		$932.8		$928.0		$28.3		$27.3
Pension and OPEB costs	555.7		570.2		281.8		287.9		273.9		282.3
AROs	77.9		73.7		44.1		41.4		33.8		32.3
Derivatives	54.1		46.9		26.1		28.0		28.0		18.9
Commodity cost recovery	32.3		31.1		0.5		0.4		31.8		30.7
Emission allowances	26.7		27.4		26.7		27.4		—		—
Other	70.1		79.1		38.7		44.8		31.4		34.3
		$1,777.9		$1,783.7		$1,350.7		$1,357.9		$427.2		$425.8

Regulatory liabilities were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Cost of removal obligations		$410.6		$421.7		$266.6		$279.1		$144.0		$142.6
IPL’s tax benefit riders	201.9		243.0		201.9		243.0		—		—
Energy efficiency cost recovery	58.5		64.3		1.7		—		56.8		64.3
IPL’s electric transmission cost recovery	24.3		19.4		24.3		19.4		—		—
Commodity cost recovery	16.6		15.4		11.6		15.1		5.0		0.3
Other	58.2		57.4		25.9		26.9		32.3		30.5
		$770.1		$821.2		$532.0		$583.5		$238.1		$237.7

Tax-related - Alliant Energy’s and IPL’s tax-related regulatory assets are generally impacted by certain property-related differences at IPL for which deferred tax is not recorded in the income statement pursuant to Iowa rate-making principles. Deferred tax amounts for such property-related differences at IPL are recorded to regulatory assets, along with the necessary revenue requirement tax gross-ups. During the six months ended June 30, 2015, Alliant Energy’s and IPL’s tax-related regulatory assets increased primarily due to property-related differences for qualifying repair expenditures.

Certain tax-related regulatory assets associated with IPL’s Minnesota electric distribution assets were classified as held for sale as of June 30, 2015 on Alliant Energy’s and IPL’s balance sheets.

Derivatives - Refer to Note 12 for discussion of derivative assets and derivative liabilities.

IPL’s tax benefit riders - IPL’s tax benefit riders utilize regulatory liabilities to credit bills of IPL’s Iowa retail electric and gas customers to help offset the impact of rate increases on such customers. These regulatory liabilities are related to tax benefits from tax accounting method changes for repairs expenditures, allocation of mixed service costs, allocation of insurance proceeds from floods in 2008, and cost of removal expenditures. For the six months ended June 30, 2015, Alliant Energy’s and IPL’s “IPL’s tax benefit riders” regulatory liabilities decreased by $41 million as follows (in millions):



Electric tax benefit rider credits		$35
Gas tax benefit rider credits	6
		$41

Refer to Note 8 for additional details regarding IPL’s tax benefit riders.

Utility Rate Cases -

IPL’s Iowa Retail Electric Rate Settlement Agreement - The IUB approved a settlement agreement in 2014 related to rates charged to IPL’s Iowa retail electric customers. The settlement agreement extends IPL’s Iowa retail electric base rates authorized in its 2009 Test Year rate case through 2016 and provides targeted retail electric customer billing credits beginning May 2014. For the three and six months ended June 30, IPL recorded billing credits to reduce retail electric customers’ bills as follows (in millions):



	Three Months			Six Months
	2015	2014		2015		2014
Billing credits to reduce retail electric customers’ bills	$6		$20		$12		$20

WPL’s Retail Fuel-related Rate Filing (2016 Test Year) - In July 2015, WPL filed a request with the PSCW to increase annual rates for WPL’s retail electric customers by $15 million, or approximately 1%, in 2016. The increase reflects anticipated increases in retail electric fuel-related costs in 2016. Any rate changes granted from this request are expected to be effective on January 1, 2016. WPL currently expects a decision from the PSCW regarding this rate filing by the end of 2015.

WPL’s Retail Fuel-related Rate Filing (2014 Test Year) - Pursuant to a 2013 PSCW order, WPL’s 2014 fuel-related costs were subject to deferral since they were outside an annual bandwidth of plus or minus 2% of the approved annual forecasted fuel-related costs. Retail fuel-related costs incurred by WPL through December 31, 2014 were higher than fuel-related costs used to determine rates for such period resulting in an under-collection of fuel-related costs for 2014 of $33 million (including $28 million outside the approved range for 2014). The $28 million of deferred fuel-related costs is included in “Commodity cost recovery” in Alliant Energy’s and WPL’s regulatory assets table above. In July 2015, WPL received an order from the PSCW authorizing an annual retail electric rate increase of $28 million, or approximately 3%, effective January 1, 2016 to recover the 2014 Test Year deferred fuel-related costs.

Regulatory Matters [Line Items]

Regulatory Matters

REGULATORY MATTERS

Regulatory Assets and Regulatory Liabilities -

Regulatory assets were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Tax-related		$961.1		$955.3		$932.8		$928.0		$28.3		$27.3
Pension and OPEB costs	555.7		570.2		281.8		287.9		273.9		282.3
AROs	77.9		73.7		44.1		41.4		33.8		32.3
Derivatives	54.1		46.9		26.1		28.0		28.0		18.9
Commodity cost recovery	32.3		31.1		0.5		0.4		31.8		30.7
Emission allowances	26.7		27.4		26.7		27.4		—		—
Other	70.1		79.1		38.7		44.8		31.4		34.3
		$1,777.9		$1,783.7		$1,350.7		$1,357.9		$427.2		$425.8

Regulatory liabilities were comprised of the following items (in millions):



	Alliant Energy				IPL				WPL
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Cost of removal obligations		$410.6		$421.7		$266.6		$279.1		$144.0		$142.6
IPL’s tax benefit riders	201.9		243.0		201.9		243.0		—		—
Energy efficiency cost recovery	58.5		64.3		1.7		—		56.8		64.3
IPL’s electric transmission cost recovery	24.3		19.4		24.3		19.4		—		—
Commodity cost recovery	16.6		15.4		11.6		15.1		5.0		0.3
Other	58.2		57.4		25.9		26.9		32.3		30.5
		$770.1		$821.2		$532.0		$583.5		$238.1		$237.7

Tax-related - Alliant Energy’s and IPL’s tax-related regulatory assets are generally impacted by certain property-related differences at IPL for which deferred tax is not recorded in the income statement pursuant to Iowa rate-making principles. Deferred tax amounts for such property-related differences at IPL are recorded to regulatory assets, along with the necessary revenue requirement tax gross-ups. During the six months ended June 30, 2015, Alliant Energy’s and IPL’s tax-related regulatory assets increased primarily due to property-related differences for qualifying repair expenditures.

Certain tax-related regulatory assets associated with IPL’s Minnesota electric distribution assets were classified as held for sale as of June 30, 2015 on Alliant Energy’s and IPL’s balance sheets.

Derivatives - Refer to Note 12 for discussion of derivative assets and derivative liabilities.

IPL’s tax benefit riders - IPL’s tax benefit riders utilize regulatory liabilities to credit bills of IPL’s Iowa retail electric and gas customers to help offset the impact of rate increases on such customers. These regulatory liabilities are related to tax benefits from tax accounting method changes for repairs expenditures, allocation of mixed service costs, allocation of insurance proceeds from floods in 2008, and cost of removal expenditures. For the six months ended June 30, 2015, Alliant Energy’s and IPL’s “IPL’s tax benefit riders” regulatory liabilities decreased by $41 million as follows (in millions):



Electric tax benefit rider credits		$35
Gas tax benefit rider credits	6
		$41

Refer to Note 8 for additional details regarding IPL’s tax benefit riders.

Utility Rate Cases -

IPL’s Iowa Retail Electric Rate Settlement Agreement - The IUB approved a settlement agreement in 2014 related to rates charged to IPL’s Iowa retail electric customers. The settlement agreement extends IPL’s Iowa retail electric base rates authorized in its 2009 Test Year rate case through 2016 and provides targeted retail electric customer billing credits beginning May 2014. For the three and six months ended June 30, IPL recorded billing credits to reduce retail electric customers’ bills as follows (in millions):



	Three Months			Six Months
	2015	2014		2015		2014
Billing credits to reduce retail electric customers’ bills	$6		$20		$12		$20

WPL’s Retail Fuel-related Rate Filing (2016 Test Year) - In July 2015, WPL filed a request with the PSCW to increase annual rates for WPL’s retail electric customers by $15 million, or approximately 1%, in 2016. The increase reflects anticipated increases in retail electric fuel-related costs in 2016. Any rate changes granted from this request are expected to be effective on January 1, 2016. WPL currently expects a decision from the PSCW regarding this rate filing by the end of 2015.

WPL’s Retail Fuel-related Rate Filing (2014 Test Year) - Pursuant to a 2013 PSCW order, WPL’s 2014 fuel-related costs were subject to deferral since they were outside an annual bandwidth of plus or minus 2% of the approved annual forecasted fuel-related costs. Retail fuel-related costs incurred by WPL through December 31, 2014 were higher than fuel-related costs used to determine rates for such period resulting in an under-collection of fuel-related costs for 2014 of $33 million (including $28 million outside the approved range for 2014). The $28 million of deferred fuel-related costs is included in “Commodity cost recovery” in Alliant Energy’s and WPL’s regulatory assets table above. In July 2015, WPL received an order from the PSCW authorizing an annual retail electric rate increase of $28 million, or approximately 3%, effective January 1, 2016 to recover the 2014 Test Year deferred fuel-related costs.