Leases

12 Months Ended

Dec. 31, 2018

Leases

LEASES

(a) Operating Leases - Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. In 2018, 2017 and 2016, rental expenses associated with operating leases were not material. At December 31, 2018, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):

	2019		2020		2021		2022		2023		Thereafter		Total
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6

IPL [Member]

Leases

LEASES

(a) Operating Leases - Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. In 2018, 2017 and 2016, rental expenses associated with operating leases were not material. At December 31, 2018, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):

	2019		2020		2021		2022		2023		Thereafter		Total
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6

WPL [Member]

Leases

LEASES

(a) Operating Leases - Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. In 2018, 2017 and 2016, rental expenses associated with operating leases were not material. At December 31, 2018, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):

	2019		2020		2021		2022		2023		Thereafter		Total
Alliant Energy		$5		$5		$3		$3		$2		$12		$30
IPL	3		2		2		2		2		12		23
WPL	2		3		1		—		—		—		6

(b) Capital Leases -

WPL - In 2005, WPL entered into a 20-year agreement with AEF’s Non-utility Generation business to lease the Sheboygan Falls Energy Facility, with an option for two lease renewal periods thereafter. The lease became effective in 2005 when the EGU began commercial operation. WPL is responsible for the operation of the EGU and has exclusive rights to its output, and the PSCW approved this affiliated lease agreement in 2005. The capital lease asset is amortized using the straight-line method over the 20-year lease term. WPL’s retail and wholesale rates include recovery of the Sheboygan Falls Energy Facility lease payments. The Sheboygan Falls Energy Facility lease expenses were included in WPL’s income statements as follows (in millions):

	2018		2017		2016
Interest expense		$8		$9		$9
Depreciation and amortization	6		6		6
		$14		$15		$15

At December 31, 2018, WPL’s estimated future minimum capital lease payments for the Sheboygan Falls Energy Facility were as follows (in millions):

	2019	2020	2021	2022	2023	Thereafter	Total	Less: amount representing interest	Present value of minimum capital lease payments
Sheboygan Falls Energy Facility	$15	$15	$15	$15	$15	$19	$94	$26	$68