Presented to: Wisconsin Industrial Energy Group Board of Directors May 8, 2008 Alliant Energy Generation Update

A Balanced Approach New generating facilities Renewable energy Conservation & Efficiency Plus Reliable, affordable, environmentally responsible energy =

WPL Generation Plan (2008 – 2013) Why? 3 percent average growth per year (Nat’l average 1.9 percent) 13 years ~ 1,000 MW Increase

WPL Generation Plan (2008 – 2013) Baseload Plant 300 megawatt expansion of Nelson Dewey Generation Station First WPL baseload plant expansion in over 20 years Will power 300,000 homes

WPL Generation Plan (2008 – 2013) Nelson Dewey Generating Station 4 th quarter 2007 Application deemed complete 2 nd – 4 th quarter 2008 Testimony / Public Hearings 4 th quarter 2008 Expected decision by PSCW 1 st quarter 2009 If approved, start construction of NED 3 and installation of scrubbers on NED 1 & 2 3 rd quarter 2013 Commercial operation

WPL Generation Plan (2008 – 2013) Baseload Plant – Nelson Dewey w/ new unit

WPL Generation Plan (2008 – 2013) Characteristics of Nelson Dewey Site  Circulating Fluidized Bed (CFB)  Intend to rely on renewable resource fuels for 10 percent of the btu input to the facility  Placement on grid allows for 625 MW of additional transmission into state  Barge and rail transport options – helps to keep cost down

WPL Generation Plan (2008 – 2013) Characteristics of Nelson Dewey Site  Environmental controls will reduce emissions by 2015 (reductions: NOx 55%, SO2 90%, Hg 75%)  High level of community support  Positive economic development impact  jobs during construction  26 permanent positions  Sustainable biomass markets

WPL intends to rely on renewable resource fuels for a percentage of the btu input to the facilities  Grasses (switch grass and hay)  Crop residues (corn stover)  Forest by-products (woodchips, bark, dead tree tops) Nelson Dewey Generating Station Helping to Create New Economic Markets

Renewable Fuels Development Benefits of Switch Grass  Wildlife and bird habitat  Reduces water pollution by up to 75%  Reduces flooding  Restores most threatened ecosystem, tall grass prairie

Renewable Fuels Development Corn Stover  “Corn Stover…is the largest under-utilized crop in the U.S.”  USDOE 2005 report

Renewable Fuels Development Waste Wood  Renewable fuel that grows quickly  18% less CO2 than coal  Trees can fix 2-7 tons CO2 per acre/year  Low sulfur, NOx, and mercury emissions

Nelson Dewey Generating Station Benefits of Utilizing Biomass  Sustainable renewable fuel source  Relatively low cost fuel  Local and regional economic development  Positive action on climate change  Sustainable renewable fuel source  Relatively low cost fuel  Local and regional economic development  Positive action on climate change

Nelson Dewey Generating Station We Are the Biomass Belt

Nelson Dewey Generating Station Key Issues for Biomass  Cost/economics  Scale  Public Policy  Transport and distribution system

2008 Labor Summit  Held at Alliant Energy headquarters in April  50+ union and trade representatives attended

Why hybrid coal? Less expensive than natural gas and nuclear Renewables alone cannot meet the need Energy efficiency and conservation alone cannot meet the need

Green Strategy Initiative  Renewables  Energy Efficiency  Energy sustainability (internal)  Climate Change policy & actions  Other Activities

 Wastewater treatment facilities, anaerobic digesters, biogas, hydro and wind energy  Current capacity megawatts  Plan to add 468 megawatts of wind generation by 2010 Green Strategy Initiative Renewable Energy Portfolio

Renewable Energy Wind Regimes

Renewable Energy Cedar Ridge Wind Farm  Located in Eden and Empire Townships (Fond du Lac County)  68 megawatts / 41 wind turbines  Operational by 4 th Quarter 2008  Enough energy to power 17,000 homes Fond du Lac County, WI

Renewable Energy Cedar Ridge Wind Farm Construction began Fall 2007 Foundation Work Laying down access roads

Renewable Energy Bent Tree Wind Farm  Signed letter of intent to develop 200-MW site in Freeborn County, MN  Enough energy to power 100,000 homes  Purchase expected to be complete by October, with commercial operation by 2010 With the addition of Cedar Ridge and Bent Tree Wind Farms, renewables will account for approximately 7% of WPL’s energy.

Green Strategy Initiative Second Nature™ and Shared Savings Second Nature™ Green pricing program Ranked in top ten in the nation in 2006 Almost 10 million kWh of green energy purchased Shared Savings Provides expertise and up- front funding for energy efficiency projects 5 billion kWh saved since 1987

Green Strategy Initiative Advanced Metering Infrastructure (AMI)  Pilot program in Beaver Dam in 2008  Successful implementation could lead to better DSM (demand-side management) opportunities for customers  Huge energy savings potential Out with the old…

Green Strategy Initiative Alliant Energy’s Position on Climate Change We support a national, multi-sector, flexible approach We will continue to invest in energy efficiency and renewable energy We will continue to participate in the development of technological advancements in emissions controls and generation performance