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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
     
FORM 10-Q
     
x☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 20152016
 
or
 
¨☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    
 
Commission
File Number
 
Name of Registrant, State of Incorporation,
Address of Principal Executive Offices and Telephone Number
 
IRS Employer
Identification Number
1-9894 ALLIANT ENERGY CORPORATION 39-1380265
  (a Wisconsin corporation)  
  4902 N. Biltmore Lane  
  Madison, Wisconsin 53718  
  Telephone (608) 458-3311  
   
1-4117 INTERSTATE POWER AND LIGHT COMPANY 42-0331370
  (an Iowa corporation)  
  Alliant Energy Tower  
  Cedar Rapids, Iowa 52401  
  Telephone (319) 786-4411  
   
0-337 WISCONSIN POWER AND LIGHT COMPANY 39-0714890
  (a Wisconsin corporation)  
  4902 N. Biltmore Lane  
  Madison, Wisconsin 53718  
  Telephone (608) 458-3311  
This combined Form 10-Q is separately filed by Alliant Energy Corporation, Interstate Power and Light Company and Wisconsin Power and Light Company. Information contained in the Form 10-Q relating to Interstate Power and Light Company and Wisconsin Power and Light Company is filed by each such registrant on its own behalf. Each of Interstate Power and Light Company and Wisconsin Power and Light Company makes no representation as to information relating to registrants other than itself.
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.    Yes x☒  No ¨☐
Indicate by check mark whether the registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files).    Yes x☒  No ¨☐
Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, or smaller reporting companies. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 Large Accelerated Filer  Accelerated Filer  Non-accelerated Filer  Smaller Reporting Company Filer
Alliant Energy Corporationx☒         
Interstate Power and Light Company      x☒   
Wisconsin Power and Light Company      x☒   
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨☐  No x☒
Number of shares outstanding of each class of common stock as of September 30, 20152016:
Alliant Energy CorporationCommon stock, $0.01 par value, 113,360,425227,500,428 shares outstanding
  
Interstate Power and Light CompanyCommon stock, $2.50 par value, 13,370,788 shares outstanding (all of which are owned beneficially and of record by Alliant Energy Corporation)
  
Wisconsin Power and Light CompanyCommon stock, $5 par value, 13,236,601 shares outstanding (all of which are owned beneficially and of record by Alliant Energy Corporation)



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TABLE OF CONTENTS
 Page
Definitions
1
Forward-looking Statements
2
Part I. Financial Information
4
Item 1. Condensed Consolidated Financial Statements (Unaudited)
4
Alliant Energy Corporation: 
Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 20152016 and 20142015
4
Condensed Consolidated Balance Sheets as of September 30, 20152016 and December 31, 20142015
5
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 20152016 and 20142015
6
Interstate Power and Light Company: 
Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 20152016 and 20142015
7
Condensed Consolidated Balance Sheets as of September 30, 20152016 and December 31, 20142015
8
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 20152016 and 20142015
9
Wisconsin Power and Light Company: 
Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 20152016 and 20142015
10
Condensed Consolidated Balance Sheets as of September 30, 20152016 and December 31, 20142015
11
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 20152016 and 20142015
12
Combined Notes to Condensed Consolidated Financial Statements
13
1. Summary of Significant Accounting Policies
13
2. Regulatory Matters
1314
3. Property, Plant and Equipment
15
4. Receivables
16
5. Investments
17
6. Common Equity
17
7. Debt
18
8. Income Taxes
1819
9. Benefit Plans
19
10. Asset Retirement Obligations
2223
11. Fair Value Measurements
2324
12. Derivative Instruments
27
13. Commitments and Contingencies
28
14. Segments of Business
3331
15. Related Parties
3533
16. Discontinued Operations and Assets and Liabilities Held for Sale
3534
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
3634
Executive Summary
36
Strategic Overview
39
Rate Matters
41
Environmental Matters
41
Legislative Matters
4234
Results of Operations
4237
Strategic Overview
45
Rate Matters
46
Environmental Matters
48
Legislative Matters
48
Liquidity and Capital Resources
5248
Other Matters
5551
Market Risk Sensitive Instruments and Positions
5551
New Accounting PronouncementsStandards
5551
Critical Accounting Policies and Estimates
5551
Other Future Considerations
5551
Item 3. Quantitative and Qualitative Disclosures About Market Risk
5753
Item 4. Controls and Procedures
5753
Part II. Other Information
57
Item 1. Legal Proceedings
5753
Item 1A. Risk Factors
5753
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
58
Item 5. Other Information
5853
Item 6. Exhibits
5853
Signatures
5954


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DEFINITIONS
The following abbreviations or acronyms used in this Form 10-Q are defined below:
Abbreviation or Acronym Definition
20142015 Form 10-K Combined Annual Report on Form 10-K filed by Alliant Energy, IPL and WPL for the year ended Dec. 31, 20142015
AEFAlliant Energy Finance, LLC
AFUDC Allowance for funds used during construction
Alliant Energy Alliant Energy Corporation
AROs Asset retirement obligations
ATC American Transmission Company LLC
CAA Clean Air Act
CCR Coal Combustion Residuals
CDD Cooling degree days
CEO Chief Executive Officer
CFO Chief Financial Officer
Columbia Columbia Energy Center
Corporate Services Alliant Energy Corporate Services, Inc.
CRANDIC Cedar Rapids and Iowa City Railway Company
DAEC Duane Arnold Energy Center
Dth Dekatherm
Edgewater Edgewater Generating Station
EGU Electric generating unit
EPA U.S. Environmental Protection Agency
EPS Earnings per weighted average common share
FERC Federal Energy Regulatory Commission
Financial Statements Condensed Consolidated Financial Statements
FTR Financial transmission right
Fuel-related Electric production fuel and energy purchasespurchased power
GAAP U.S. generally accepted accounting principles
HDD Heating degree days
IPL Interstate Power and Light Company
ITC ITC Midwest LLC
IUB Iowa Utilities Board
Marshalltown Marshalltown Generating Station
MDA Management’s Discussion and Analysis of Financial Condition and Results of Operations
MGP Manufactured gas plant
MISO Midcontinent Independent System Operator, Inc.
MW Megawatt
MWh Megawatt-hour
N/A Not applicable
NAAQS National Ambient Air Quality Standards
Nelson Dewey Nelson Dewey Generating Station
Note(s) Combined Notes to Condensed Consolidated Financial Statements
NOx Nitrogen oxide
OPEB Other postretirement benefits
PJMPJM Interconnection, LLC
PPAPurchased power agreement
PSCW Public Service Commission of Wisconsin
Receivables Agreement Receivables Purchase and Sale Agreement
Resources Alliant Energy Resources, LLC
Riverside Riverside Energy Center
RMT RMT, Inc.
SCR Selective catalytic reduction
SO2 Sulfur dioxide
U.S. United States of America
Whiting Petroleum Whiting Petroleum Corporation
WPL Wisconsin Power and Light Company


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FORWARD-LOOKING STATEMENTS

Statements contained in this report that are not of historical fact are forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified as such because the statements include words such as “may,” “believe,” “expect,” “anticipate,” “plan,” “project,” “will,” “projections,” “estimate,” or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Some, but not all, of the risks and uncertainties of Alliant Energy, IPL and WPL that could materially affect actual results include:

federal and state regulatory or governmental actions, including the impact of energy, tax, financial and health care legislation, and of regulatory agency orders;
IPL’s and WPL’s ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of fuel costs, operating costs, transmission costs, deferred expenditures, capital expenditures, and remaining costs related to EGUs that may be permanently closed, earning their authorized rates of return, and the payments to their parent of expected levels of dividends;
the ability to continue cost controls and operational efficiencies;
the impact of IPL’s retail electric base rate freeze in Iowa during 2015 and 2016;
the impactimpacts of WPL’s retail electric and gas base rate freeze in Wisconsin during 20152016 and 2016;WPL’s pending retail base rate case for the 2017/2018 Test Period;
weather effects on results of utility operations, including impacts of temperature changes in IPL’s and WPL’s service territories on customers’ demand for electricity and gas;
the impact of the economy in IPL’s and WPL’s service territories and the resulting impacts on sales volumes, margins and the ability to collect unpaid bills;
the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL’s and WPL’s service territories on system reliability, operating expenses and customers’ demand for electricity;
the impact of energy efficiency, franchise retention, customer- and third party-owned generation and customer disconnects on sales volumes and margins;
the impact that price changes may have on IPL’s and WPL’s customers’ demand for electric, gas and steam services and their ability to pay their bills;
developments that adversely impact the ability to implement the strategic plan, including unanticipated issues with planned and potential new emission controlswind generation projects, IPL’s Marshalltown EGU, WPL’s Riverside expansion and related third party purchase options, new environmental control equipment for various coal-firedfossil-fueled EGUs of IPL and WPL, IPL’s construction of Marshalltown, WPL’s proposed Riverside expansion, various replacements, modernization and expansion of IPL’s and WPL’s electric and gas distribution systems, Resources’ electricity output and selling pricethe proposed transfer of such output from itsthe Franklin County wind farm to IPL, and the potential decommissioning of certain EGUs of IPL and WPL;
the ability to qualify for the full level of production tax credits on planned and potential new wind farms and the impact of changes to production tax credits for wind farms;
issues related to the availability and operations of EGUs, including start-up risks, breakdown or failure of equipment, performance below expected or contracted levels of output or efficiency, operator error, employee safety, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental costs through rates;
disruptions in the supply and delivery of coal, natural gas, purchased electricity and purchased electricity;coal, including due to the bankruptcy of coal mining companies;
changes in the price of delivered coal, natural gas and purchased electricity due to shifts in supply and demand caused by market conditions and regulations, and the ability to recover and to retain the recovery of related changes in purchased power, fuel and fuel-related costs through rates in a timely manner;
impacts on equity income from unconsolidated investments due to further potential changes to ATC’s authorized return on equity;
issues associated with environmental remediation and environmental compliance, including compliance with the Consent Decree between WPL, the EPA and the Sierra Club, the Consent Decree between IPL, the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, the CCR Rule, the Clean Power Plan, future changes in environmental laws and regulations, including the EPA’s regulations for carbon dioxide emissions reductions from new and existing fossil-fueled EGUs, and litigation associated with environmental requirements;
the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, state natural resources agencies or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims;

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the ability to recover through rates all environmental compliance and remediation costs, including costs for projects put on hold due to uncertainty of future environmental laws and regulations;
impacts that storms or natural disasters in IPL’s and WPL’s service territories may have on their operations and recovery of, and rate relief for, costs associated with restoration activities;
the direct or indirect effects resulting from terrorist incidents, including physical attacks and cyber attacks, or responses to such incidents;
the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns;
the direct or indirect effects resulting from breakdown or failure of equipment in the operation of gas distribution systems, such as leaks, explosions and mechanical problems, and compliance with gas transmission and distribution safety regulations, such as those that may beproposed rules recently issued by the Pipeline and Hazardous Materials Safety Administration;
risks associated with implementationintegration of a new customer billing and information system, which is currently expected to bewas completed by the end ofin the first quarter of 2016;
impacts of IPL’s future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures and allocation of mixed service costs, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods;
any material post-closing adjustments related to any past asset divestitures, including the sales of IPL’s Minnesota electric and natural gas distribution assets, RMT and RMT,Whiting Petroleum, which could result from, among other things, warranties, parental guarantees or litigation;
continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;
inflation and interest rates;
changes to the creditworthiness of counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters;
issues related to electric transmission, including operating in Regional Transmission Organization energy and ancillary services markets, the impacts of potential future billing adjustments and cost allocation changes from Regional Transmission Organizations and recovery of costs incurred;
current or future litigation, regulatory investigations, proceedings or inquiries, including the floodinquiries;
reputational damage lawsuit pending against CRANDIC;from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions;
Alliant Energy’s ability to sustain its dividend payout ratio goal;
employee workforce factors, including changes in key executives, collective bargaining agreements and negotiations, work stoppages or restructurings;
inability to access technological developments, including those related to technological developments;wind turbines, solar generation, smart technology, battery storage and other future technologies;
changes in technology that alter the channels through which electric customers buy or utilize power;
impacts of ATC’s potential restructuring;
material changes in retirement and benefit plan costs;
the impact of performance-based compensation plans accruals;
the effect of accounting pronouncementsstandards issued periodically by standard-setting bodies, including a new revenue recognition standard, which is currently expected to be adopted in 2018;
the impact of changes to production tax credits for wind farms;and lease standards;
the impact of adjustments made to deferred tax assets and liabilities from state apportionment assumptions;
the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire;
impacts of the extension of bonus depreciation deductions;
the ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and
•
factors listed in MDA and Risk Factors in Item 1A in the 20142015 Form 10-K.

Alliant Energy, IPL and WPL each assume no obligation, and disclaim any duty, to update the forward-looking statements in this report, except as required by law.


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PART I. FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months For the Nine MonthsFor the Three Months For the Nine Months
Ended September 30, Ended September 30,Ended September 30, Ended September 30,
2015 2014 2015 20142016 2015 2016 2015
(in millions, except per share amounts)(in millions, except per share amounts)
Operating revenues:              
Utility:       
Electric
$835.8
 
$771.2
 
$2,147.5
 
$2,090.9
Gas38.0
 47.2
 288.1
 364.8
Other13.4
 12.2
 44.6
 50.6
Electric utility
$864.3
 
$835.8
 
$2,209.1
 
$2,147.5
Gas utility39.5
 38.0
 248.7
 288.1
Other utility9.4
 13.4
 35.0
 44.6
Non-regulated11.7
 12.5
 33.3
 39.9
11.4
 11.7
 30.2
 33.3
Total operating revenues898.9
 843.1
 2,513.5
 2,546.2
924.6
 898.9
 2,523.0
 2,513.5
Operating expenses:              
Electric production fuel and purchased power245.8
 230.8
 646.9
 683.6
245.9
 245.8
 646.3
 646.9
Electric transmission service127.6
 114.0
 367.7
 333.6
138.6
 127.6
 396.8
 367.7
Cost of gas sold13.6
 21.8
 166.3
 228.7
12.5
 13.6
 132.3
 166.3
Asset valuation charges for Franklin County wind farm86.4
 —
 86.4
 —
Other operation and maintenance151.1
 159.0
 456.3
 483.8
148.6
 151.1
 438.2
 456.3
Depreciation and amortization99.3
 97.1
 299.9
 288.4
104.1
 99.3
 308.7
 299.9
Taxes other than income taxes25.6
 25.6
 78.6
 75.8
25.9
 25.6
 77.2
 78.6
Total operating expenses663.0
 648.3
 2,015.7
 2,093.9
762.0
 663.0
 2,085.9
 2,015.7
Operating income235.9
 194.8
 497.8
 452.3
162.6
 235.9
 437.1
 497.8
Interest expense and other:              
Interest expense46.4
 44.6
 139.5
 134.9
48.8
 46.4
 144.8
 139.5
Equity income from unconsolidated investments, net(11.1) (11.5) (28.9) (34.2)(9.2) (11.1) (28.8) (28.9)
Allowance for funds used during construction(9.7) (8.3) (25.1) (25.8)(15.8) (9.7) (44.3) (25.1)
Interest income and other(0.1) (0.2) (0.4) (1.8)(0.1) (0.1) (0.3) (0.4)
Total interest expense and other25.5
 24.6
 85.1
 73.1
23.7
 25.5
 71.4
 85.1
Income from continuing operations before income taxes210.4
 170.2
 412.7
 379.2
138.9
 210.4
 365.7
 412.7
Income taxes27.8
 12.4
 59.5
 46.2
7.5
 27.8
 47.2
 59.5
Income from continuing operations, net of tax182.6
 157.8
 353.2
 333.0
131.4
 182.6
 318.5
 353.2
Loss from discontinued operations, net of tax(0.1) (1.9) (1.4) (2.2)(0.4) (0.1) (2.0) (1.4)
Net income182.5
 155.9
 351.8
 330.8
131.0
 182.5
 316.5
 351.8
Preferred dividend requirements of Interstate Power and Light Company2.6
 2.6
 7.7
 7.7
2.6
 2.6
 7.7
 7.7
Net income attributable to Alliant Energy common shareowners
$179.9
 
$153.3
 
$344.1
 
$323.1

$128.4
 
$179.9
 
$308.8
 
$344.1
Weighted average number of common shares outstanding (basic and diluted)(a)113.2
 110.8
 112.5
 110.8
227.2
 226.4
 227.0
 225.0
Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted):
       
Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted) (a):
       
Income from continuing operations, net of tax
$1.59
 
$1.40
 
$3.07
 
$2.94

$0.57
 
$0.79
 
$1.37
 
$1.54
Loss from discontinued operations, net of tax—
 (0.02) (0.01) (0.02)—
 —
 (0.01) (0.01)
Net income
$1.59
 
$1.38
 
$3.06
 
$2.92

$0.57
 
$0.79
 
$1.36
 
$1.53
Amounts attributable to Alliant Energy common shareowners:              
Income from continuing operations, net of tax
$180.0
 
$155.2
 
$345.5
 
$325.3

$128.8
 
$180.0
 
$310.8
 
$345.5
Loss from discontinued operations, net of tax(0.1) (1.9) (1.4) (2.2)(0.4) (0.1) (2.0) (1.4)
Net income
$179.9
 
$153.3
 
$344.1
 
$323.1

$128.4
 
$179.9
 
$308.8
 
$344.1
Dividends declared per common share(a)
$0.55
 
$0.51
 
$1.65
 
$1.53

$0.29375
 
$0.275
 
$0.88125
 
$0.825

(a)
Amounts reflect the effects of a two-for-one common stock split distributed in May 2016. Refer to Note 6 for additional details.

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 September 30,
2016		 December 31,
2015
 
(in millions, except per
share and share amounts)
ASSETS   
Current assets:   
Cash and cash equivalents
$84.7
 
$5.8
Accounts receivable, less allowance for doubtful accounts491.5
 397.6
Production fuel, at weighted average cost92.6
 98.8
Gas stored underground, at weighted average cost37.8
 43.3
Materials and supplies, at weighted average cost89.5
 81.4
Regulatory assets63.1
 120.2
Other98.9
 79.7
Total current assets958.1
 826.8
Property, plant and equipment, net9,920.4
 9,519.1
Investments:   
Investment in American Transmission Company LLC309.9
 293.3
Other19.7
 53.0
Total investments329.6
 346.3
Other assets:   
Regulatory assets1,811.7
 1,788.4
Deferred charges and other9.4
 14.6
Total other assets1,821.1
 1,803.0
Total assets
$13,029.2
 
$12,495.2
LIABILITIES AND EQUITY   
Current liabilities:   
Current maturities of long-term debt
$314.0
 
$313.4
Commercial paper238.3
 159.8
Accounts payable365.1
 402.4
Regulatory liabilities178.4
 187.1
Other273.9
 296.6
Total current liabilities1,369.7
 1,359.3
Long-term debt, net (excluding current portion)3,816.9
 3,522.2
Other liabilities:   
Deferred tax liabilities2,530.6
 2,381.2
Regulatory liabilities497.4
 550.6
Pension and other benefit obligations455.3
 451.8
Other300.2
 306.0
Total other liabilities3,783.5
 3,689.6
Commitments and contingencies (Note 13)


 

Equity:   
Alliant Energy Corporation common equity:   
Common stock - $0.01 par value - 480,000,000 shares authorized; 227,500,428 and 226,918,432 shares outstanding (a)2.3
 2.3
Additional paid-in capital1,686.0
 1,661.8
Retained earnings2,181.0
 2,068.9
Accumulated other comprehensive loss(0.4) (0.4)
Shares in deferred compensation trust - 432,619 and 430,186 shares at a weighted average cost of $22.54 and $19.84 per share (a)(9.8) (8.5)
Total Alliant Energy Corporation common equity3,859.1
 3,724.1
Cumulative preferred stock of Interstate Power and Light Company200.0
 200.0
Total equity4,059.1
 3,924.1
Total liabilities and equity
$13,029.2
 
$12,495.2
(a)
Share and per share amounts reflect the effects of a two-for-one common stock split distributed in May 2016. Refer to Note 6 for additional details.

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 For the Nine Months
 Ended September 30,
 2016 2015
 (in millions)
Cash flows from operating activities:   
Net income
$316.5
 
$351.8
Adjustments to reconcile net income to net cash flows from operating activities:   
Depreciation and amortization308.7
 299.9
Deferred tax expense and investment tax credits76.7
 101.0
Asset valuation charges for Franklin County wind farm86.4
 —
Other(44.0) (2.5)
Other changes in assets and liabilities:   
Accounts receivable(101.0) 11.7
Sales of accounts receivable(4.0) (21.0)
Regulatory assets36.6
 (51.3)
Regulatory liabilities(66.5) (61.5)
Deferred income taxes71.8
 74.1
Other(27.2) (6.9)
Net cash flows from operating activities654.0
 695.3
Cash flows used for investing activities:   
Construction and acquisition expenditures:   
Utility business(743.6) (678.9)
Alliant Energy Corporate Services, Inc. and non-regulated businesses(43.3) (47.5)
Proceeds from Minnesota electric and natural gas distribution asset sales—
 138.1
Other15.1
 (24.7)
Net cash flows used for investing activities(771.8) (613.0)
Cash flows from financing activities:   
Common stock dividends(199.8) (185.1)
Proceeds from issuance of common stock, net20.4
 145.4
Proceeds from issuance of long-term debt300.0
 250.7
Payments to retire long-term debt(1.9) (182.0)
Net change in commercial paper78.5
 (32.2)
Other(0.5) 3.2
Net cash flows from financing activities196.7
 —
Net increase in cash and cash equivalents78.9
 82.3
Cash and cash equivalents at beginning of period5.8
 56.9
Cash and cash equivalents at end of period
$84.7
 
$139.2
Supplemental cash flows information:   
Cash (paid) refunded during the period for:   
Interest, net of capitalized interest
($140.7) 
($133.9)
Income taxes, net
($8.3) 
$—
Significant non-cash investing and financing activities:   
Accrued capital expenditures
$99.9
 
$180.0

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

4
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ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 September 30,
2015		 December 31,
2014
 
(in millions, except per
share and share amounts)
ASSETS   
Current assets:   
Cash and cash equivalents
$139.2
 
$56.9
Accounts receivable, less allowance for doubtful accounts427.3
 427.3
Production fuel, at weighted average cost87.8
 83.8
Materials and supplies, at weighted average cost83.7
 72.9
Gas stored underground, at weighted average cost40.0
 67.1
Regulatory assets92.3
 68.1
Other217.4
 267.0
Total current assets1,087.7
 1,043.1
Property, plant and equipment, net9,366.5
 8,938.4
Investments:   
Investment in American Transmission Company LLC296.7
 286.5
Other56.4
 58.4
Total investments353.1
 344.9
Other assets:   
Regulatory assets1,715.6
 1,715.6
Deferred charges and other35.7
 43.9
Total other assets1,751.3
 1,759.5
Total assets
$12,558.6
 
$12,085.9
LIABILITIES AND EQUITY   
Current liabilities:   
Current maturities of long-term debt
$3.0
 
$183.0
Commercial paper109.1
 141.3
Accounts payable438.3
 427.9
Regulatory liabilities189.7
 200.1
Other250.7
 262.4
Total current liabilities990.8
 1,214.7
Long-term debt, net (excluding current portion)3,855.8
 3,606.7
Other liabilities:   
Deferred income tax liabilities2,462.1
 2,321.1
Regulatory liabilities554.4
 621.1
Pension and other benefit obligations416.4
 421.7
Other333.0
 260.1
Total other liabilities3,765.9
 3,624.0
Commitments and contingencies (Note 13)


 

Equity:   
Alliant Energy Corporation common equity:   
Common stock - $0.01 par value - 240,000,000 shares authorized; 113,360,425 and 110,935,680 shares outstanding1.1
 1.1
Additional paid-in capital1,656.0
 1,509.1
Retained earnings2,097.0
 1,938.0
Accumulated other comprehensive loss(0.6) (0.6)
Shares in deferred compensation trust - 210,647 and 238,935 shares at a weighted average cost of $39.28 and $37.45 per share(8.3) (8.9)
Total Alliant Energy Corporation common equity3,745.2
 3,438.7
Cumulative preferred stock of Interstate Power and Light Company200.0
 200.0
Noncontrolling interest0.9
 1.8
Total equity3,946.1
 3,640.5
Total liabilities and equity
$12,558.6
 
$12,085.9

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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Table of Contents


ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 For the Nine Months
 Ended September 30,
 2015 2014
 (in millions)
Cash flows from operating activities:   
Net income
$351.8
 
$330.8
Adjustments to reconcile net income to net cash flows from operating activities:   
Depreciation and amortization299.9
 288.4
Deferred tax expense and investment tax credits101.0
 54.2
Other(2.5) 13.6
Other changes in assets and liabilities:   
Accounts receivable11.7
 87.1
Sales of accounts receivable(21.0) 9.0
Regulatory assets(51.3) (154.3)
Regulatory liabilities(61.5) 61.1
Deferred income taxes74.1
 109.5
Other(6.9) (35.5)
Net cash flows from operating activities695.3
 763.9
Cash flows used for investing activities:   
Construction and acquisition expenditures:   
Utility business(678.9) (587.4)
Alliant Energy Corporate Services, Inc. and non-regulated businesses(47.5) (45.1)
Proceeds from Minnesota electric and natural gas distribution asset sales138.1
 —
Other(24.7) (7.9)
Net cash flows used for investing activities(613.0) (640.4)
Cash flows used for financing activities:   
Common stock dividends(185.1) (169.3)
Proceeds from issuance of common stock, net145.4
 —
Proceeds from issuance of long-term debt250.7
 2.9
Payments to retire long-term debt(182.0) (47.7)
Net change in commercial paper(32.2) 74.4
Other3.2
 17.4
Net cash flows used for financing activities—
 (122.3)
Net increase in cash and cash equivalents82.3
 1.2
Cash and cash equivalents at beginning of period56.9
 9.8
Cash and cash equivalents at end of period
$139.2
 
$11.0
Supplemental cash flows information:   
Cash (paid) refunded during the period for:   
Interest, net of capitalized interest
($133.9) 
($131.8)
Income taxes, net
$—
 
$5.3
Significant non-cash investing and financing activities:   
Accrued capital expenditures
$180.0
 
$141.1

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months For the Nine MonthsFor the Three Months For the Nine Months
Ended September 30, Ended September 30,Ended September 30, Ended September 30,
2015 2014 2015 20142016 2015 2016 2015
(in millions)(in millions)
Operating revenues:              
Electric utility
$468.6
 
$435.9
 
$1,170.6
 
$1,164.7

$483.2
 
$468.6
 
$1,209.2
 
$1,170.6
Gas utility23.1
 28.7
 164.1
 208.1
23.9
 23.1
 142.6
 164.1
Steam and other12.9
 11.6
 41.1
 44.2
9.1
 12.9
 34.1
 41.1
Total operating revenues504.6
 476.2
 1,375.8
 1,417.0
516.2
 504.6
 1,385.9
 1,375.8
Operating expenses:              
Electric production fuel and purchased power131.4
 132.2
 332.0
 395.1
125.0
 131.4
 324.8
 332.0
Electric transmission service87.5
 82.7
 249.3
 241.7
95.9
 87.5
 270.7
 249.3
Cost of gas sold9.4
 14.6
 93.4
 128.4
8.0
 9.4
 76.3
 93.4
Other operation and maintenance94.3
 89.8
 287.5
 279.1
94.8
 94.3
 279.8
 287.5
Depreciation and amortization51.2
 49.3
 155.1
 146.9
52.7
 51.2
 157.8
 155.1
Taxes other than income taxes13.8
 13.7
 42.2
 40.4
13.9
 13.8
 40.6
 42.2
Total operating expenses387.6
 382.3
 1,159.5
 1,231.6
390.3
 387.6
 1,150.0
 1,159.5
Operating income117.0
 93.9
 216.3
 185.4
125.9
 117.0
 235.9
 216.3
Interest expense and other:              
Interest expense23.8
 21.9
 71.8
 67.0
25.5
 23.8
 75.4
 71.8
Allowance for funds used during construction(7.3) (6.6) (19.3) (18.6)(13.8) (7.3) (36.2) (19.3)
Interest income and other0.1
 —
 —
 (0.1)—
 0.1
 (0.1) —
Total interest expense and other16.6
 15.3
 52.5
 48.3
11.7
 16.6
 39.1
 52.5
Income before income taxes100.4
 78.6
 163.8
 137.1
114.2
 100.4
 196.8
 163.8
Income tax benefit(19.6) (26.5) (25.8) (34.9)(2.5) (18.7) (2.5) (24.4)
Net income120.0
 105.1
 189.6
 172.0
116.7
 119.1
 199.3
 188.2
Preferred dividend requirements2.6
 2.6
 7.7
 7.7
2.6
 2.6
 7.7
 7.7
Earnings available for common stock
$117.4
 
$102.5
 
$181.9
 
$164.3

$114.1
 
$116.5
 
$191.6
 
$180.5
Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of IPL’s common stock outstanding during the periods presented.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30,
2015		 December 31,
2014		September 30,
2016		 December 31,
2015
(in millions, except per
share and share amounts)
(in millions, except per
share and share amounts)
ASSETS  
Current assets:      
Cash and cash equivalents
$99.4
 
$5.3

$77.7
 
$4.5
Accounts receivable, less allowance for doubtful accounts235.7
 216.7
266.8
 200.0
Production fuel, at weighted average cost51.0
 52.7
70.0
 60.2
Gas stored underground, at weighted average cost17.4
 18.2
Materials and supplies, at weighted average cost46.6
 42.0
50.0
 45.7
Gas stored underground, at weighted average cost20.7
 30.8
Regulatory assets33.4
 38.7
15.0
 39.6
Other115.0
 169.9
37.2
 28.2
Total current assets601.8
 556.1
534.1
 396.4
Property, plant and equipment, net4,804.7
 4,554.7
5,220.1
 4,925.1
Investments19.4
 19.1
0.8
 19.6
Other assets:      
Regulatory assets1,336.8
 1,319.2
1,402.2
 1,363.0
Deferred charges and other16.8
 12.7
3.8
 5.0
Total other assets1,353.6
 1,331.9
1,406.0
 1,368.0
Total assets
$6,779.5
 
$6,461.8

$7,161.0
 
$6,709.1
LIABILITIES AND EQUITY  
Current liabilities:      
Current maturities of long-term debt
$—
 
$150.0
Accounts payable251.3
 259.6

$172.6
 
$197.2
Accounts payable to associated companies49.2
 31.3
55.0
 37.7
Regulatory liabilities126.3
 129.7
132.5
 130.9
Accrued taxes41.2
 67.6
Other125.1
 135.3
85.9
 97.7
Total current liabilities551.9
 705.9
487.2
 531.1
Long-term debt, net (excluding current portion)1,868.5
 1,618.7
2,153.1
 1,856.9
Other liabilities:      
Deferred income tax liabilities1,419.9
 1,341.4
Deferred tax liabilities1,493.6
 1,378.0
Regulatory liabilities376.2
 453.8
298.9
 358.3
Pension and other benefit obligations141.0
 142.4
161.2
 160.2
Other231.0
 185.5
229.1
 229.3
Total other liabilities2,168.1
 2,123.1
2,182.8
 2,125.8
Commitments and contingencies (Note 13)


 



 

Equity:      
Interstate Power and Light Company common equity:      
Common stock - $2.50 par value - 24,000,000 shares authorized; 13,370,788 shares outstanding33.4
 33.4
33.4
 33.4
Additional paid-in capital1,342.8
 1,242.8
1,472.8
 1,407.8
Retained earnings614.8
 537.9
631.7
 554.1
Total Interstate Power and Light Company common equity1,991.0
 1,814.1
2,137.9
 1,995.3
Cumulative preferred stock200.0
 200.0
200.0
 200.0
Total equity2,191.0
 2,014.1
2,337.9
 2,195.3
Total liabilities and equity
$6,779.5
 
$6,461.8

$7,161.0
 
$6,709.1

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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INTERSTATE POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Nine MonthsFor the Nine Months
Ended September 30,Ended September 30,
2015 20142016 2015
(in millions)(in millions)
Cash flows from operating activities:      
Net income
$189.6
 
$172.0

$199.3
 
$188.2
Adjustments to reconcile net income to net cash flows from operating activities:      
Depreciation and amortization155.1
 146.9
157.8
 155.1
Other30.9
 (12.8)24.3
 32.3
Other changes in assets and liabilities:      
Accounts receivable(8.3) 57.1
(66.5) (8.3)
Sales of accounts receivable(21.0) 9.0
(4.0) (21.0)
Regulatory assets(38.1) (126.1)(14.1) (38.1)
Accounts payable(24.6) 17.9
Regulatory liabilities(63.1) 14.8
(64.5) (63.1)
Deferred income taxes72.0
 112.5
67.7
 72.0
Other25.5
 (17.7)(43.5) 0.9
Net cash flows from operating activities318.0
 373.6
256.5
 318.0
Cash flows used for investing activities:      
Utility construction and acquisition expenditures(432.6) (358.2)(436.5) (432.6)
Proceeds from Minnesota electric and natural gas distribution asset sales138.1
 —
—
 138.1
Other(24.9) (18.3)1.1
 (24.9)
Net cash flows used for investing activities(319.4) (376.5)(435.4) (319.4)
Cash flows from financing activities:      
Common stock dividends(105.0) (105.0)(114.0) (105.0)
Capital contributions from parent100.0
 90.0
65.0
 100.0
Proceeds from issuance of long-term debt250.0
 —
300.0
 250.0
Payments to retire long-term debt(150.0) (38.4)—
 (150.0)
Net change in commercial paper—
 38.0
Other0.5
 18.5
1.1
 0.5
Net cash flows from financing activities95.5
 3.1
252.1
 95.5
Net increase in cash and cash equivalents94.1
 0.2
73.2
 94.1
Cash and cash equivalents at beginning of period5.3
 4.4
4.5
 5.3
Cash and cash equivalents at end of period
$99.4
 
$4.6

$77.7
 
$99.4
Supplemental cash flows information:      
Cash (paid) refunded during the period for:      
Interest
($66.7) 
($64.2)
($72.5) 
($66.7)
Income taxes, net
$31.1
 
$21.0

$0.7
 
$31.1
Significant non-cash investing and financing activities:      
Accrued capital expenditures
$115.5
 
$96.7

$44.5
 
$115.5

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.



9
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Table of Contents


WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months For the Nine MonthsFor the Three Months For the Nine Months
Ended September 30, Ended September 30,Ended September 30, Ended September 30,
2015 2014 2015 20142016 2015 2016 2015
(in millions)(in millions)
Operating revenues:              
Electric utility
$367.2
 
$335.3
 
$976.9
 
$926.2

$381.1
 
$367.2
 
$999.9
 
$976.9
Gas utility14.9
 18.5
 124.0
 156.7
15.6
 14.9
 106.1
 124.0
Other0.5
 0.6
 3.5
 6.4
0.3
 0.5
 0.9
 3.5
Total operating revenues382.6
 354.4
 1,104.4
 1,089.3
397.0
 382.6
 1,106.9
 1,104.4
Operating expenses:              
Electric production fuel and purchased power114.4
 98.6
 314.9
 288.5
120.9
 114.4
 321.5
 314.9
Electric transmission service40.1
 31.3
 118.4
 91.9
42.7
 40.1
 126.1
 118.4
Cost of gas sold4.2
 7.2
 72.9
 100.3
4.5
 4.2
 56.0
 72.9
Other operation and maintenance57.0
 66.9
 167.7
 199.3
54.2
 57.0
 157.2
 167.7
Depreciation and amortization45.7
 45.6
 137.5
 135.0
48.7
 45.7
 143.5
 137.5
Taxes other than income taxes10.9
 10.9
 33.6
 32.7
11.0
 10.9
 33.8
 33.6
Total operating expenses272.3
 260.5
 845.0
 847.7
282.0
 272.3
 838.1
 845.0
Operating income110.3
 93.9
 259.4
 241.6
115.0
 110.3
 268.8
 259.4
Interest expense and other:              
Interest expense23.1
 21.0
 69.5
 63.2
22.9
 23.1
 68.7
 69.5
Equity income from unconsolidated investments(11.1) (11.4) (30.2) (34.2)(9.3) (11.1) (29.0) (30.2)
Allowance for funds used during construction(2.4) (1.7) (5.8) (7.2)(2.0) (2.4) (8.1) (5.8)
Interest income and other(0.3) 0.5
 (0.3) 0.8
0.1
 (0.3) (0.2) (0.3)
Total interest expense and other9.3
 8.4
 33.2
 22.6
11.7
 9.3
 31.4
 33.2
Income before income taxes101.0
 85.5
 226.2
 219.0
103.3
 101.0
 237.4
 226.2
Income taxes33.1
 23.9
 74.0
 68.0
33.7
 32.6
 77.1
 73.0
Net income67.9
 61.6
 152.2
 151.0
69.6
 68.4
 160.3
 153.2
Net income attributable to noncontrolling interest0.4
 —
 1.1
 —
0.6
 0.4
 1.6
 1.1
Earnings available for common stock
$67.5
 
$61.6
 
$151.1
 
$151.0

$69.0
 
$68.0
 
$158.7
 
$152.1
Earnings per share data is not disclosed given Alliant Energy Corporation is the sole shareowner of all shares of WPL’s common stock outstanding during the periods presented.
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

10
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Table of Contents


WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 September 30,
2016		 December 31,
2015
 
(in millions, except per
share and share amounts)
ASSETS 
Current assets:   
Cash and cash equivalents
$5.6
 
$0.4
Accounts receivable, less allowance for doubtful accounts190.7
 185.4
Production fuel, at weighted average cost22.6
 38.6
Gas stored underground, at weighted average cost20.4
 25.1
Materials and supplies, at weighted average cost35.7
 33.5
Regulatory assets48.1
 80.6
Other53.9
 59.9
Total current assets377.0
 423.5
Property, plant and equipment, net4,289.1
 4,103.7
Investments:   
Investment in American Transmission Company LLC309.9
 293.3
Other13.4
 15.4
Total investments323.3
 308.7
Other assets:   
Regulatory assets409.5
 425.4
Deferred charges and other6.9
 9.1
Total other assets416.4
 434.5
Total assets
$5,405.8
 
$5,270.4
LIABILITIES AND EQUITY 
Current liabilities:   
Commercial paper
$11.8
 
$19.9
Accounts payable122.3
 136.0
Accounts payable to associated companies32.8
 21.6
Regulatory liabilities45.9
 56.2
Other91.0
 103.2
Total current liabilities303.8
 336.9
Long-term debt, net (excluding current portion)1,534.9
 1,533.9
Other liabilities:   
Deferred tax liabilities1,108.8
 1,005.4
Regulatory liabilities198.5
 192.3
Capital lease obligations - Sheboygan Falls Energy Facility78.9
 83.6
Pension and other benefit obligations186.2
 188.7
Other162.4
 162.0
Total other liabilities1,734.8
 1,632.0
Commitments and contingencies (Note 13)

 
Equity:   
Wisconsin Power and Light Company common equity:   
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding66.2
 66.2
Additional paid-in capital959.0
 959.0
Retained earnings788.6
 731.1
Total Wisconsin Power and Light Company common equity1,813.8
 1,756.3
Noncontrolling interest18.5
 11.3
Total equity1,832.3
 1,767.6
Total liabilities and equity
$5,405.8
 
$5,270.4
 September 30,
2015		 December 31,
2014
 
(in millions, except per
share and share amounts)
ASSETS 
Current assets:   
Cash and cash equivalents
$35.7
 
$46.7
Accounts receivable, less allowance for doubtful accounts173.6
 185.8
Production fuel, at weighted average cost36.8
 31.1
Materials and supplies, at weighted average cost35.3
 29.2
Gas stored underground, at weighted average cost19.3
 36.3
Regulatory assets58.9
 29.4
Other94.1
 98.7
Total current assets453.7
 457.2
Property, plant and equipment, net4,094.4
 3,938.9
Investments:   
Investment in American Transmission Company LLC296.7
 286.5
Other19.1
 19.5
Total investments315.8
 306.0
Other assets:   
Regulatory assets378.8
 396.4
Deferred charges and other20.3
 29.7
Total other assets399.1
 426.1
Total assets
$5,263.0
 
$5,128.2
The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

11
Table of Contents


WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
LIABILITIES AND EQUITY 
Current liabilities:   
Current maturities of long-term debt
$—
 
$30.6
Accounts payable122.5
 112.9
Accounts payable to associated companies23.3
 25.5
Regulatory liabilities63.4
 70.4
Other86.5
 70.9
Total current liabilities295.7
 310.3
Long-term debt, net (excluding current portion)1,543.6
 1,543.3
Other liabilities:   
Deferred income tax liabilities1,030.1
 970.0
Regulatory liabilities178.2
 167.3
Capital lease obligations - Sheboygan Falls Energy Facility85.1
 89.4
Pension and other benefit obligations178.2
 180.4
Other181.6
 155.2
Total other liabilities1,653.2
 1,562.3
Commitments and contingencies (Note 13)

 
Equity:   
Wisconsin Power and Light Company common equity:   
Common stock - $5 par value - 18,000,000 shares authorized; 13,236,601 shares outstanding66.2
 66.2
Additional paid-in capital959.0
 959.0
Retained earnings734.4
 678.6
Total Wisconsin Power and Light Company common equity1,759.6
 1,703.8
Noncontrolling interest10.9
 8.5
Total equity1,770.5
 1,712.3
Total liabilities and equity
$5,263.0
 
$5,128.2
 For the Nine Months
 Ended September 30,
 2016 2015
 (in millions)
Cash flows from operating activities:   
Net income
$160.3
 
$153.2
Adjustments to reconcile net income to net cash flows from operating activities:   
Depreciation and amortization143.5
 137.5
Deferred tax expense and investment tax credits97.9
 60.0
Other(20.3) (8.3)
Other changes in assets and liabilities:   
Regulatory assets50.7
 (13.2)
Derivative liabilities(13.3) 19.0
Other20.5
 27.7
Net cash flows from operating activities439.3
 375.9
Cash flows used for investing activities:   
Utility construction and acquisition expenditures(307.1) (246.3)
Other(19.6) (13.3)
Net cash flows used for investing activities(326.7) (259.6)
Cash flows used for financing activities:   
Common stock dividends(101.2) (95.3)
Payments to retire long-term debt—
 (30.6)
Other(6.2) (1.4)
Net cash flows used for financing activities(107.4) (127.3)
Net increase (decrease) in cash and cash equivalents5.2
 (11.0)
Cash and cash equivalents at beginning of period0.4
 46.7
Cash and cash equivalents at end of period
$5.6
 
$35.7
Supplemental cash flows information:   
Cash (paid) refunded during the period for:   
Interest
($67.7) 
($69.2)
Income taxes, net
$19.6
 
($10.0)
Significant non-cash investing and financing activities:   
Accrued capital expenditures
$50.8
 
$57.2

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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WISCONSIN POWER AND LIGHT COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 For the Nine Months
 Ended September 30,
 2015 2014
 (in millions)
Cash flows from operating activities:   
Net income
$152.2
 
$151.0
Adjustments to reconcile net income to net cash flows from operating activities:   
Depreciation and amortization137.5
 135.0
Other amortizations4.0
 36.1
Deferred tax expense and investment tax credits61.0
 58.4
Other(12.3) (14.3)
Other changes in assets and liabilities:   
Derivative assets8.8
 (32.8)
Regulatory liabilities1.6
 46.3
Derivative liabilities19.0
 (9.7)
Other4.1
 (4.2)
Net cash flows from operating activities375.9
 365.8
Cash flows used for investing activities:   
Utility construction and acquisition expenditures(246.3) (229.2)
Other(13.3) (4.6)
Net cash flows used for investing activities(259.6) (233.8)
Cash flows used for financing activities:   
Common stock dividends(95.3) (89.1)
Payments to retire long-term debt(30.6) (8.5)
Net change in commercial paper—
 (37.0)
Other(1.4) 4.4
Net cash flows used for financing activities(127.3) (130.2)
Net increase (decrease) in cash and cash equivalents(11.0) 1.8
Cash and cash equivalents at beginning of period46.7
 0.5
Cash and cash equivalents at end of period
$35.7
 
$2.3
Supplemental cash flows information:   
Cash paid during the period for:   
Interest
($69.2) 
($65.6)
Income taxes, net
($10.0) 
($8.7)
Significant non-cash investing and financing activities:   
Accrued capital expenditures
$57.2
 
$39.9

The accompanying Combined Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

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ALLIANT ENERGY CORPORATION
INTERSTATE POWER AND LIGHT COMPANY
WISCONSIN POWER AND LIGHT COMPANY

COMBINED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)NOTE 1(a) General - The interim unaudited Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, although management believes that the disclosures are adequate to make the information presented not misleading. These Financial Statements should be read in conjunction with the financial statements and the notes thereto included in the latest combined Annual Report on Form 10-K.

In the opinion of management, all adjustments, which unless otherwise noted are normal and recurring in nature, necessary for a fair presentation of the results of operations, financial position and cash flows have been made. Results for the nine months ended September 30, 20152016 are not necessarily indicative of results that may be expected for the year ending December 31, 2015.2016. A change in management’s estimates or assumptions could have a material impact on financial condition and results of operations during the period in which such change occurred. Certain prior period amounts in the Financial Statements and Notes have been reclassified to conform to the current period presentation for comparative purposes. Unless otherwise noted, the Notes herein exclude discontinued operations for all periods presented. In addition, the Notesfourth quarter of 2015, IPL and WPL implemented a change in method of recording income taxes that impacts the separate financial statements of IPL and WPL. As discussed in Note 6, all Alliant Energy share and per share amounts have been adjusted to reflect a two-for-one common stock split distributed in May 2016. As required by GAAP, all prior period financial statements and disclosures presented herein exclude assetshave been restated to reflect the tax method change and liabilities held for sale.common stock split.

(b)NOTE 1(b) New Accounting PronouncementsStandards -
Revenue Recognition - In May 2014, the Financial Accounting Standards Board issued an accounting standard providing principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard also requires disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the Financial Accounting Standards Board approved the deferral of the effective date of this standard. As a result, Alliant Energy, IPL and WPL are now requiredcurrently expect to adopt this standard on January 1, 2018. Early adoption on January 1, 2017 is permitted. Alliant Energy, IPL2018 and WPL are currently evaluating the impact of this standard on their financial condition and results of operations.

Presentation of Debt Issuance CostsLeases - In April 2015,February 2016, the Financial Accounting Standards Board issued an accounting standard requiring lease assets and lease liabilities, including operating leases, to simplify the presentation of debt issuance costs on the balance sheet. Under the new standard, debt issuance costs related to abe recognized debt liability will be presented on the balance sheet as a direct deduction from the carrying amountfor all leases with terms longer than 12 months. The standard also requires disclosure of that debt liability, consistent with debt discounts.key information about leasing arrangements. Alliant Energy, IPL and WPL are required to adopt this standard byon January 1, 2016. Debt issuance costs represent less than 1%2019 and are currently evaluating the impact of total long-term debt.this standard on their financial condition and results of operations. Early adoption of this standard is permitted.

NOTE 1(c) Property, Plant and Equipment -
Utility Plant -
Depreciation - In September 2016, the PSCW issued an order approving the implementation of updated depreciation rates for WPL effective January 1, 2017 as a result of a recently completed depreciation study. WPL estimates the new average rates of depreciation for its electric generation, electric distribution and gas properties will be approximately 3.2%, 2.6% and 2.3%, respectively, during 2017.


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NOTE 2. REGULATORY MATTERS
Regulatory Assets and Regulatory Liabilities -
Regulatory assets were comprised of the following items (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
September 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014		September 30,
2016		 December 31,
2015		 September 30,
2016		 December 31,
2015		 September 30,
2016		 December 31,
2015
Tax-related
$976.5
 
$955.3
 
$947.3
 
$928.0
 
$29.2
 
$27.3

$1,033.5
 
$987.7
 
$1,000.7
 
$958.2
 
$32.8
 
$29.5
Pension and OPEB costs548.4
 570.2
 278.6
 287.9
 269.8
 282.3
551.0
 579.5
 284.7
 298.1
 266.3
 281.4
AROs81.8
 73.7
 47.6
 41.4
 34.2
 32.3
103.9
 92.4
 61.5
 50.8
 42.4
 41.6
WPL’s EGUs retired early43.1
 45.0
 —
 —
 43.1
 45.0
Derivatives68.4
 46.9
 29.3
 28.0
 39.1
 18.9
39.0
 70.6
 10.6
 28.2
 28.4
 42.4
Emission allowances26.3
 26.9
 26.3
 26.9
 —
 —
Commodity cost recovery33.2
 31.1
 1.2
 0.4
 32.0
 30.7
10.1
 35.9
 0.4
 2.8
 9.7
 33.1
Emission allowances26.5
 27.4
 26.5
 27.4
 —
 —
Other73.1
 79.1
 39.7
 44.8
 33.4
 34.3
67.9
 70.6
 33.0
 37.6
 34.9
 33.0

$1,807.9
 
$1,783.7
 
$1,370.2
 
$1,357.9
 
$437.7
 
$425.8

$1,874.8
 
$1,908.6
 
$1,417.2
 
$1,402.6
 
$457.6
 
$506.0


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Regulatory liabilities were comprised of the following items (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
September 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014		September 30,
2016		 December 31,
2015		 September 30,
2016		 December 31,
2015		 September 30,
2016		 December 31,
2015
Cost of removal obligations
$406.2
 
$421.7
 
$261.3
 
$279.1
 
$144.9
 
$142.6

$410.6
 
$406.0
 
$267.2
 
$260.4
 
$143.4
 
$145.6
IPL’s tax benefit riders179.5
 243.0
 179.5
 243.0
 —
 —
103.1
 159.2
 103.1
 159.2
 —
 —
Electric transmission cost recovery54.5
 43.5
 25.0
 21.9
 29.5
 21.6
Commodity cost recovery39.1
 37.6
 15.1
 23.5
 24.0
 14.1
Energy efficiency cost recovery53.0
 64.3
 —
 —
 53.0
 64.3
28.0
 48.3
 —
 —
 28.0
 48.3
Commodity cost recovery33.8
 15.4
 22.9
 15.1
 10.9
 0.3
Electric transmission cost recovery31.4
 19.4
 15.8
 19.4
 15.6
 —
Other40.2
 57.4
 23.0
 26.9
 17.2
 30.5
40.5
 43.1
 21.0
 24.2
 19.5
 18.9

$744.1
 
$821.2
 
$502.5
 
$583.5
 
$241.6
 
$237.7

$675.8
 
$737.7
 
$431.4
 
$489.2
 
$244.4
 
$248.5

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 nine months ended September 30, 2015,2016, Alliant Energy’s and IPL’s tax-related regulatory assets increased primarily due to property-related differences for qualifying repair expenditures.

The July 2015 sale of IPL’s Minnesota electric distribution assets resulted in a reduction of certain tax-related regulatory assets on Alliant Energy’s and IPL’s balance sheets in 2015.

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 nine months ended September 30, 20152016, Alliant Energy’s and IPL’s “IPL’s tax benefit riders” regulatory liabilities decreased by $64$56 million as follows (in millions):
Electric tax benefit rider credits
$5547
Gas tax benefit rider credits9
 
$6456

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

Electric transmission cost recovery -Utility Rate Cases -
WPL’s Wisconsin Retail Electric revenues establishedand Gas Rate Case (2017/2018 Test Period) - In May 2016, WPL filed a retail base rate case with the PSCW based on a forward-looking test period that includes 2017 and 2018. WPL’s filing was based on a stipulated agreement reached between PSCW staff, intervener groups and WPL. The filing requested approval for WPL to implement a $13 million, or approximately 1%, increase in annual rates for WPL’s retail electric customers. The net requested increase for 2017 compared to WPL’s retail electric rate case (2015/for the 2015/2016 Test Period) included recoveryPeriod reflected a $65 million increase in base rates, partially offset by a $52 million reduction in fuel-related costs, using a preliminary estimate for 2017 fuel-related costs. The filing also requested approval for WPL to implement a $9 million, or approximately 13%, increase in

14
Table of expected increases in electric transmission service expense largely due to System Support Resource costsContents


annual base rates for WPL’s retail gas customers. Any rate changes granted from this request are expected to be incurred. Due toeffective January 1, 2017 and extend through the end of 2018. WPL currently expects a revisiondecision from the PSCW regarding this base rate case filing in MISO’s method to allocate System Support Resource costs, WPL no longer expects to incur certain System Support Resource costs. The difference between actual electric transmission service expense incurred and amounts collected from customers as electric revenues in 2015 are recorded as electric transmission service expense with an offsetting amount recorded to regulatory liabilities due to the escrow treatment authorized for WPL in its 2015/2016 Test Period retail electric rate case.fourth quarter of 2016.

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.credits. For the three and nine months ended September 30, IPL recorded billing credits to reduce retail electric customers’ bills as follows (in millions):
 Three Months Nine Months
 2015 2014 2015 2014
Billing credits to reduce retail electric customers’ bills$7 
$26
 
$19
 
$46
 Three Months Nine Months
 2016 2015 2016 2015
Billing credits to reduce retail electric customers’ bills$3 
$7
 
$7
 
$19


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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 (2015 Test Year) -Pursuant to a 20142015 PSCW order, WPL’s 20152016 fuel-related costs will be subject to deferral if they are 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 September 30, 20152016 were lower than fuel-related costs used to determine rates for such period resulting in an over-collection of fuel-related costs. As of September 30, 2015,2016, fuel-related costs outside of the approved range were $5$9 million and are included in “Commodity cost recovery” in Alliant Energy’s and WPL’s regulatory liabilities table above.

WPL’s Retail Fuel-related Rate Filing (2014(2015 Test Year) - Pursuant to a 20132014 PSCW order, WPL’s 20142015 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, 2014in 2015 were higherlower than fuel-related costs used to determine rates for such period resulting in an under-collectionover-collection of fuel-related costs for 2014 of $33costs. Pursuant to an August 2016 PSCW order, WPL will refund $10 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 annualincluding interest, to its retail electric rate increasecustomers in the fourth quarter of $28 million, or approximately 3%, effective January 1, 2016 to recover the 2014 Test Year deferred fuel-related costs.for these over-collections.

NOTE 3. PROPERTY, PLANT AND EQUIPMENT
Utility -
Emission Controls Project -
WPL’s Edgewater Unit 5 - WPL is currently constructing aConstruction of the scrubber and baghouse at Edgewater Unit 5 to reduce SO2 and mercury emissions at the EGU. Construction beganwas completed in 2014 and is expected to be completed inJuly 2016. As of September 30, 20152016, Alliant Energy and WPL recorded capitalized expenditures for construction work in progress of $171$223 million and AFUDC of $6$12 million for the scrubber and baghouse in “Property, plant and equipment, net” on their balance sheets.

Natural Gas-Fired Generation Project -
IPL’s Marshalltown Generating Station - IPL is currently constructing Marshalltown, an approximate 650 MW natural gas-fired combined-cycle EGU. Construction began in 2014 and is expected to be completed in the second quarter of 2017. As of September 30, 20152016, Alliant Energy and IPL recorded capitalized expenditures for construction work in progress of $414$600 million and AFUDC of $17$56 million for Marshalltown in “Property, plant and equipment, net” on their balance sheets.

Sales of IPL’s Minnesota Electric and Natural Gas Distribution Assets - In April 2015, IPL completed the sale of its Minnesota natural gas distribution assets and received proceeds of $11 million subject to post-closing adjustments based on the value of the net assets as of the closing date, and a promissory note of $2 million. In July 2015, IPL completed the sale of its Minnesota electric distribution assets (primarily related to property, plant and equipment) and received proceeds of $127 million, subject to post-closing adjustments based on the value of the net assets as of the closing date.$129 million. The proceeds from the natural gas distribution assets were used for general corporate purposes and the proceeds from the electric distribution assets were used to reduce cash proceedsamounts received from IPL’s sales of accounts receivable program. The premium received over the book value of the property, plant and equipment sold was more than offset by a reduction in tax-related regulatory assets associated with the distribution assets. As a result, Alliant Energy and IPL recorded pre-tax charges of $9 million and $3 million for the Minnesota electric and natural gas distribution asset transactions, respectively, in “Other operation and maintenance” in their income statements duringfor the nine months ended September 30, 2015.

In July 2015, FERC approved the wholesale power supply agreement between IPL and Southern Minnesota Energy Cooperative, which became effective upon the sale of IPL’s Minnesota electric distribution assets.

Non-regulated and Other -
Non-regulated Generation -
Corporate Services and OtherFranklin County Wind Farm - Corporate Services is implementing a new customer billing and information systemBased on an evaluation of the strategic options for IPL and WPL. Asthe Franklin County wind farm performed in the third quarter of 2016, Alliant Energy concluded, as of September 30, 2015,2016, it was probable the Franklin County wind farm will be transferred to IPL. As a result, Alliant Energy performed an impairment analysis of such assets in the third quarter of 2016. The impairment analysis evaluated the value of the assets and a reasonable estimate of the amount of costs associated with the Franklin County wind farm that would be allowed for recovery for IPL’s electric rate-making purposes. Based on various analyses, including discounted cash flows projected from the Franklin County wind farm, recently executed purchased power agreements associated with wind generating facilities located near the Franklin County wind farm, and the

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cost of new wind farms identified through IPL’s planned wind expansion, the current value of the Franklin County wind farm assets as of September 30, 2016 was determined to be approximately $33 million, subject to working capital adjustments. Alliant Energy concluded such value represents a reasonable estimate of the amount IPL will be allowed for recovery for IPL’s electric rate-making purposes. As a result, the carrying amount of the Franklin County wind farm was reduced to its current value, resulting in non-cash, pre-tax asset valuation charges of $86 million (after-tax charges of $51 million, or $0.23 per share) in the third quarter of 2016. Alliant Energy recorded capitalized expenditures of $87 million and capitalized interest of $2 million for the system insuch charges as a reduction to “Property, plant and equipment, net” on its balance sheet.sheet in 2016 and charges to “Asset valuation charges for Franklin County wind farm” in its income statements for the three and nine months ended September 30, 2016.


15
TableIPL currently anticipates requesting approval from FERC in the fourth quarter of Contents2016 to transfer the Franklin County wind farm to IPL and expects to complete such transfer in the first quarter of 2017. The final amount to be recovered for IPL’s electric rate-making purposes will be determined by the IUB as part of IPL’s Iowa retail electric rate case for the 2016 Test Year, currently anticipated to be filed in the second quarter of 2017, and therefore the final asset valuation charges are subject to change.


NOTE 4. RECEIVABLES
(a) Sales of Accounts Receivable - IPL maintains a Receivables Agreement whereby it may sell its customer accounts receivables, unbilled revenues and certain other accounts receivables to a third party through wholly-owned and consolidated special purpose entities. In March 2016, IPL extended through March 2018 the purchase commitment from the third party to which it sells its receivables. The transfers of receivables meet the criteria for sale accounting established by the transfer of financial assets accounting rules. As of September 30, 20152016, IPL sold $201.2$252.9 million of receivables to the third party, received $1.0 million in cash proceeds and recorded deferred proceeds of $195.5$239.7 million.

IPL’s maximum and average outstanding cash proceeds related to the sales of accounts receivable program for the three and nine months ended September 30 were as follows (in millions):
Three Months Nine MonthsThree Months Nine Months
2015 2014 2015 20142016 2015 2016 2015
Maximum outstanding aggregate cash proceeds (based on daily outstanding balances)
$137.0
 
$92.0
 
$137.0
 
$92.0

$172.0
 
$137.0
 
$172.0
 
$137.0
Average outstanding aggregate cash proceeds (based on daily outstanding balances)41.2
 54.5
 62.1
 38.9
112.3
 41.2
 91.5
 62.1

For the three and nine months ended September 30, 20152016 and 2014,2015, IPL’s costs incurred related to the sales of accounts receivable program were not material.

The attributes of IPL’s receivables sold under the Receivables Agreement were as follows (in millions):
September 30, 2015 December 31, 2014September 30, 2016 December 31, 2015
Customer accounts receivable
$128.1
 
$134.8

$172.9
 
$109.7
Unbilled utility revenues72.8
 69.7
79.8
 71.3
Other receivables0.3
 0.1
0.2
 0.1
Receivables sold to third party201.2
 204.6
252.9
 181.1
Less: cash proceeds (a)1.0
 22.0
1.0
 5.0
Deferred proceeds200.2
 182.6
251.9
 176.1
Less: allowance for doubtful accounts4.7
 5.4
12.2
 4.1
Fair value of deferred proceeds
$195.5
 
$177.2

$239.7
 
$172.0
Outstanding receivables past due
$15.4
 
$19.9

(a)Changes in cash proceeds are presented in “Sales of accounts receivable” in operating activities in Alliant Energy’s and IPL’s cash flows statements.

As of September 30, 2016, outstanding receivables past due under the Receivables Agreement were $64.5 million. Additional attributes of IPL’s receivables sold under the Receivables Agreement for the three and nine months ended September 30 were as follows (in millions):
Three Months Nine MonthsThree Months Nine Months
2015 2014 2015 20142016 2015 2016 2015
Collections reinvested in receivables
$480.1
 
$520.1
 
$1,403.1
 
$1,537.3

$499.7
 
$480.1
 
$1,362.1
 
$1,403.1
Credit losses, net of recoveries3.3
 6.4
 6.8
 12.8
Write-offs (recoveries), net(0.3) 3.3
 (0.6) 6.8

(b) Whiting Petroleum Tax Sharing Agreement - Prior to an initial public offering of Whiting Petroleum in 2003, Alliant Energy and Whiting Petroleum entered into a tax separation and indemnification agreement pursuant to which Alliant Energy and Whiting Petroleum made certain tax elections. These tax elections had the effect of increasing the tax basis of the assets of Whiting Petroleum’s consolidated tax group based on the sales price of Whiting Petroleum’s shares in the initial public offering. The increase in the tax basis of the assets was included in income in Alliant Energy’s U.S. federal income tax return for the calendar year 2003. Pursuant to the tax separation and indemnification agreement, Whiting Petroleum paid Resources the final payment of $26 million in March 2014, which represented the present value of certain future tax benefits expected to be realized by Whiting Petroleum through future tax deductions. The $26 million received by Alliant Energy is presented in operating activities in its cash flows statement for the nine months ended September 30, 2014.


16
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In connection with the implementation of IPL’s new customer billing and information system in the first quarter of 2016, IPL postponed the write-off of customer bills, resulting in lower write-offs for the three and nine months ended September 30, 2016.

NOTE 5. INVESTMENTS
NOTE 5(a) Unconsolidated Equity Investments - Equity (income) loss from unconsolidated investments accounted for under the equity method of accounting for the three and nine months ended September 30 was as follows (in millions):
Alliant Energy WPLAlliant Energy WPL
Three Months Nine Months Three Months Nine MonthsThree Months Nine Months Three Months Nine Months
2015 2014 2015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015 2016 2015
ATC
($10.9) 
($11.2) 
($29.6) 
($33.5) 
($10.9) 
($11.2) 
($29.6) 
($33.5)
($9.1) 
($10.9) 
($28.6) 
($29.6) 
($9.1) 
($10.9) 
($28.6) 
($29.6)
Other(0.2) (0.3) 0.7
 (0.7) (0.2) (0.2) (0.6) (0.7)(0.1) (0.2) (0.2) 0.7
 (0.2) (0.2) (0.4) (0.6)

($11.1) 
($11.5) 
($28.9) 
($34.2) 
($11.1) 
($11.4) 
($30.2) 
($34.2)
($9.2) 
($11.1) 
($28.8) 
($28.9) 
($9.3) 
($11.1) 
($29.0) 
($30.2)

MISO Transmission Owner Return on Equity Complaints- A group of MISO cooperative and municipal utilities previously filed two complaints with FERC requesting a reduction of the base return on equity used by MISO transmission owners, including ATC. In September 2016, FERC issued an order on the first complaint to reduce the base return on equity for the refund period from November 12, 2013 through February 11, 2015. In June 2016, a FERC administrative law judge issued an initial decision regarding the second complaint recommending a reduction of the base return on equity for the refund period from February 12, 2015 through May 11, 2016. A final decision on the second complaint from FERC is currently expected in the first half of 2017. Alliant Energy and WPL have realized a cumulative $24 million of reductions in the amount of equity income from ATC as a result of the two complaints through September 30, 2016, including $9 million during the nine months ended September 30, 2016.

NOTE 5(b) Cash Surrender Value of Life Insurance Policies - During the nine months ended September 30, 2016, certain of Alliant Energy’s and IPL’s company-owned life insurance policies were liquidated. The related proceeds of $31 million and $19 million were recorded in investing activities in Alliant Energy’s and IPL’s cash flows statements, respectively.

NOTE 6. COMMON EQUITY
Common Share Activity - A summary of Alliant Energy’s common stock activity was as follows:
Shares outstanding, January 1, 20152016110,935,680
At-the-market offering program2,186,617226,918,432
Shareowner Direct Plan issuances204,213559,588
Equity-based compensation plans (Note 9(b))
56,37822,408
Other(22,463)
Shares outstanding, September 30, 20152016113,360,425227,500,428

At-the-Market Offering Program - In MarchDuring the nine months ended September 30, 2015, Alliant Energy filed a prospectus supplement under which it may sell up to $150 millionissued 4,373,234 shares of its common stock through an at-the-market offering program. As of September 30, 2015, Alliant Energy issued 2,186,617 shares of common stock through this program and received cash proceeds of $133 million, net of $2 million in fees and commissions. The proceeds from the issuances of common stock were used for general corporate purposes.

Common Stock Split - On April 20, 2016, Alliant Energy’s Board of Directors approved a two-for-one common stock split and a proportionate increase in the number of authorized shares of common stock of Alliant Energy currently has no plansfrom 240 million shares to issue any480 million shares to implement the stock split. Alliant Energy shareowners of record at the close of business on May 4, 2016 received one additional share of Alliant Energy common stock throughfor each share held on that date. The proportionate interest that a shareowner owns in Alliant Energy did not change as a result of the at-the-market offering program.stock split. The additional shares were distributed on May 19, 2016 and post-split trading began on May 20, 2016. All Alliant Energy share and per share amounts in this report have been reflected on a post-split basis.

Dividend Restrictions - As of September 30, 20152016, IPL’s amount of retained earnings that were free of dividend restrictions was $615632 million. As of September 30, 20152016, WPL’s amount of retained earnings that were free of dividend restrictions was $3234 million for the remainder of 20152016.

Restricted Net Assets of Subsidiaries - As of September 30, 20152016, the amount of net assets of IPL and WPL that were not available to be transferred to their parent company, Alliant Energy, in the form of loans, advances or cash dividends without the consent of IPL’s and WPL’s regulatory authorities was $1.41.5 billion and $1.71.8 billion, respectively.

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Capital Transactions with Subsidiaries - For the nine months ended September 30, 2015,2016, IPL received capital contributions of $100.0$65.0 million from its parent company. For the nine months ended September 30, 20152016, IPL and WPL each paid common stock dividends of $105.0114.0 million and $95.3101.2 million, respectively, to itstheir parent company.

Comprehensive Income - For the three and nine months ended September 30, 20152016 and 20142015, Alliant Energy had no other comprehensive income; therefore, its comprehensive income was equal to its net income and its comprehensive income attributable to Alliant Energy common shareowners was equal to its net income attributable to Alliant Energy common shareowners for such periods. For the three and nine months ended September 30, 20152016 and 2014,2015, IPL and WPL had no other comprehensive income; therefore, their comprehensive income was equal to their net income and their comprehensive income available for common stock was equal to their earnings available for common stock for such periods.


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NOTE 7. DEBT
(a)NOTE 7(a) Short-term Debt - Information regarding commercial paper classified as short-term debt and back-stopped by the credit facilities was as follows (dollars in millions):
Alliant Energy Parent Alliant Energy Parent 
September 30, 2015(Consolidated) Company IPL WPL
September 30, 2016(Consolidated) Company IPL WPL
Commercial paper:  
Amount outstanding$109.1 $109.1 $— $—$238.3 $226.5 $— $11.8
Weighted average remaining maturity3 days 3 days N/A N/A4 days 4 days N/A 3 days
Weighted average interest rates0.4% 0.4% N/A N/A0.6% 0.7% N/A 0.4%
Available credit facility capacity$890.9 $190.9 $300.0 $400.0$761.7 $73.5 $300.0 $388.2
Alliant Energy IPL WPLAlliant Energy IPL WPL
Three Months Ended September 302015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015
Maximum amount outstanding
(based on daily outstanding balances)

$181.2
 
$353.8
 
$18.4
 
$38.0
 $— 
$185.0

$248.0
 
$181.2
 
$3.1
 
$18.4
 $55.4 $—
Average amount outstanding
(based on daily outstanding balances)

$122.4
 
$307.1
 
$0.5
 
$0.4
 $— 
$157.9

$220.1
 
$122.4
 
$0.1
 
$0.5
 $36.4 $—
Weighted average interest rates0.4% 0.2% 0.4% 0.3% N/A 0.1%0.6% 0.4% 0.6% 0.4% 0.4% N/A
Nine Months Ended September 30                 
Maximum amount outstanding
(based on daily outstanding balances)

$181.2
 
$353.8
 
$18.4
 
$38.0
 $— 
$204.7

$248.0
 
$181.2
 
$3.1
 
$18.4
 $62.9 $—
Average amount outstanding
(based on daily outstanding balances)

$114.5
 
$281.9
 
$0.2
 
$0.3
 $— 
$157.5

$210.7
 
$114.5
 
$—
 
$0.2
 $33.2 $—
Weighted average interest rates0.4% 0.2% 0.4% 0.2% N/A 0.1%0.6% 0.4% 0.6% 0.4% 0.4% N/A

(b)NOTE 7(b) Long-term Debt - In June 2015, IPL retired its $150.0 million, 3.3% senior debentures. In August 2015,September 2016, IPL issued $250.0$300 million of 3.4%3.7% senior debentures due 2025.2046. The proceeds from the issuance were used by IPL to reduce commercial paper classified as long-term debt by $111 million, reduce cash proceedsamounts received from its sales of accounts receivable program, reduce commercial paper classified as long-term debt by $100 million and for general corporate purposes.

In August 2015, WPL retired its $14.6October 2016, AEF entered into a $500 million 5.375% pollution control revenue bonds. In September 2015, WPL retired its $16.0 million, 5% pollution control revenue bonds.variable-rate (1.3% at October 31, 2016) term loan credit agreement and used the proceeds from borrowings under this agreement to retire borrowings under Alliant Energy’s and Franklin County Holdings LLC’s variable-rate term loan credit agreements that matured in 2016, reduce outstanding commercial paper and for general corporate purposes. AEF’s term loan credit agreement expires in October 2018 and includes substantially the same financial covenants that are included in Alliant Energy’s credit facility agreement.


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NOTE 8. INCOME TAXES
Income Tax Rates - The provision for income taxes for earnings from continuing operations is based on an estimated annual effective income tax rate that excludes the impact of significant unusual or infrequently occurring items, discontinued operations or extraordinary items. The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.
Alliant Energy IPL WPLAlliant Energy IPL WPL
Three Months Ended September 302015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015
Statutory federal income tax rate35.0 % 35.0 % 35.0% 35.0% 35.0 % 35.0 %35.0 % 35.0 % 35.0% 35.0% 35.0 % 35.0 %
IPL’s tax benefit riders(11.0) (13.0) (30.0) (39.2) —
 —
(13.1) (11.0) (20.1) (30.0) —
 —
Effect of rate-making on property-related differences(7.1) (8.6) (18.7) (22.4) (0.7) (0.8)(11.9) (7.1) (16.5) (18.7) (0.7) (0.7)
Production tax credits(6.7) (6.8) (8.7) (9.3) (6.0) (6.2)(9.0) (6.7) (6.0) (8.6) (5.7) (6.1)
Other items, net3.0
 0.7
 2.9
 2.2
 4.5
 —
4.4
 3.0
 5.4
 3.7
 4.0
 4.1
Overall income tax rate13.2% 7.3% (19.5%) (33.7%) 32.8% 28.0%5.4% 13.2% (2.2%) (18.6%) 32.6% 32.3%

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Alliant Energy IPL WPLAlliant Energy IPL WPL
Nine Months Ended September 302015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015
Statutory federal income tax rate35.0 % 35.0 % 35.0% 35.0% 35.0 % 35.0 %35.0 % 35.0 % 35.0% 35.0% 35.0 % 35.0 %
IPL’s tax benefit riders(10.6) (12.4) (28.2) (36.5) —
 —
(10.2) (10.6) (19.6) (28.2) —
 —
Effect of rate-making on property-related differences(7.1) (6.7) (17.9) (18.4) (0.6) (0.7)(8.2) (7.1) (14.8) (17.9) (0.8) (0.6)
Production tax credits(6.6) (6.6) (8.2) (8.8) (6.2) (6.2)(7.2) (6.6) (6.1) (8.0) (6.1) (6.3)
Other items, net3.7
 2.9
 3.5
 3.2
 4.5
 3.0
3.5
 3.7
 4.2
 4.2
 4.4
 4.2
Overall income tax rate14.4% 12.2% (15.8%) (25.5%) 32.7% 31.1%12.9% 14.4% (1.3%) (14.9%) 32.5% 32.3%

IPL’s tax benefit riders - Alliant Energy’s and IPL’s effective income tax rates include the impact of reducing income tax expense with offsetting reductions to regulatory liabilities as a result of implementing IPL’s tax benefit riders. Refer to Note 2 for additional details of the tax benefit riders.

Deferred Tax Assets and Liabilities - For the nine months ended September 30, 20152016, Alliant Energy’s, IPL’s and WPL’s non-current deferred tax liabilities increased $141.0$149.4 million, $78.5$115.6 million and $60.1$103.4 million, respectively. These increases in non-current deferred tax liabilities were primarily due to utilization of federal net operating loss carryforwards, and property-related differences recorded during the nine months ended September 30, 2015, including an increase in qualifying repairs expenditures.2016.

Carryforwards - At September 30, 20152016, tax carryforwards and associated deferred tax assets and expiration dates were estimated as follows (dollars in millions):
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Earliest
Expiration Date
 Tax Carryforwards 
Deferred
Tax Assets
 Tax Carryforwards 
Deferred
Tax Assets
 Tax Carryforwards 
Deferred
Tax Assets
Earliest
Expiration Date
 Tax Carryforwards 
Deferred
Tax Assets
 Tax Carryforwards 
Deferred
Tax Assets
 Tax Carryforwards 
Deferred
Tax Assets
Federal net operating losses2030 
$527
 
$180
 
$231
 
$79
 
$218
 
$75
2030 
$587
 
$201
 
$255
 
$86
 
$242
 
$85
State net operating losses2018 731
 37
 183
 9
 126
 6
2018 674
 35
 15
 1
 3
 —
Federal tax credits2022 227
 224
 80
 78
 89
 87
2022 264
 260
 95
 91
 108
 107
   
$441
   
$166
   
$168
   
$496
   
$178
   
$192

NOTE 9. BENEFIT PLANS
(a)NOTE 9(a) Pension and Other Postretirement Benefits Plans -
Net Periodic Benefit Costs (Credits) - The components of net periodic benefit costs (credits) for sponsored defined benefit pension and OPEB plans for the three and nine months ended September 30 are included in the tables below (in millions). In the “IPL”IPL’s and “WPL”WPL’s tables below, the defined benefit pension plans costs represent those respective costs for IPL’s and WPL’stheir bargaining unit employees covered under the qualified plans that are sponsored by IPL and WPL, respectively,they sponsor, as well as amounts directly assigned to each of IPL and WPLthem related to their current and former non-bargaining employees who are participants in the Alliant Energy and Corporate Services sponsored qualified and non-qualified defined benefit pension plans. In the “IPL”IPL’s and “WPL”WPL’s tables below, the OPEB plans costs (credits) represent respective costs (credits) for IPL and WPLtheir employees, respectively, as well as amounts directly assigned to each of IPL and WPLthem related to their current and former non-bargaining employees who are participants in the Corporate Services sponsored OPEB plan.

 Defined Benefit Pension Plans OPEB Plans
 Three Months Nine Months Three Months Nine Months
Alliant Energy2015 2014 2015 2014 2015 2014 2015 2014
Service cost
$4.0
 
$3.3
 
$11.9
 
$9.9
 
$1.3
 
$1.3
 
$4.1
 
$3.9
Interest cost13.5
 13.6
 40.3
 40.6
 2.3
 2.4
 6.8
 7.1
Expected return on plan assets(18.7) (18.8) (56.2) (56.3) (2.1) (2.1) (6.3) (6.2)
Amortization of prior service credit(0.1) —
 (0.2) —
 (2.8) (3.0) (8.4) (8.9)
Amortization of actuarial loss8.8
 4.8
 26.5
 14.6
 1.2
 0.6
 3.6
 1.8
Additional benefit costs0.1
 —
 0.4
 —
 —
 —
 —
 —
 
$7.6
 
$2.9
 
$22.7
 
$8.8
 
($0.1) 
($0.8) 
($0.2) 
($2.3)

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 Defined Benefit Pension Plans OPEB Plans
 Three Months Nine Months Three Months Nine Months
IPL2015 2014 2015 2014 2015 2014 2015 2014
Service cost
$2.2
 
$1.8
 
$6.6
 
$5.4
 
$0.6
 
$0.6
 
$1.8
 
$1.8
Interest cost6.2
 6.2
 18.7
 18.8
 0.9
 1.0
 2.8
 3.0
Expected return on plan assets(8.9) (8.9) (26.8) (26.8) (1.4) (1.5) (4.2) (4.4)
Amortization of prior service credit—
 —
 (0.1) —
 (1.5) (1.6) (4.6) (4.7)
Amortization of actuarial loss3.8
 2.0
 11.5
 6.0
 0.6
 0.3
 1.7
 0.8
 
$3.3
 
$1.1
 
$9.9
 
$3.4
 
($0.8) 
($1.2) 
($2.5) 
($3.5)
Defined Benefit Pension Plans OPEB PlansDefined Benefit Pension Plans OPEB Plans
Three Months Nine Months Three Months Nine MonthsThree Months Nine Months Three Months Nine Months
WPL2015 2014 2015 2014 2015 2014 2015 2014
Alliant Energy2016 2015 2016 2015 2016 2015 2016 2015
Service cost
$1.4
 
$1.3
 
$4.3
 
$3.7
 
$0.5
 
$0.5
 
$1.6
 
$1.5

$3.2
 
$4.0
 
$9.5
 
$11.9
 
$1.4
 
$1.3
 
$4.0
 
$4.1
Interest cost5.6
 5.7
 16.9
 17.0
 0.9
 1.0
 2.7
 2.9
13.2
 13.5
 39.7
 40.3
 2.3
 2.3
 7.0
 6.8
Expected return on plan assets(8.1) (8.1) (24.3) (24.3) (0.3) (0.4) (1.1) (1.0)(16.3) (18.7) (49.1) (56.2) (1.6) (2.1) (4.6) (6.3)
Amortization of prior service cost (credit)0.1
 —
 0.2
 0.2
 (0.9) (1.0) (2.6) (2.9)
Amortization of prior service credit(0.1) (0.1) (0.2) (0.2) (1.0) (2.8) (3.1) (8.4)
Amortization of actuarial loss4.2
 2.3
 12.6
 6.9
 0.6
 0.3
 1.7
 0.9
9.3
 8.8
 28.0
 26.5
 1.2
 1.2
 3.6
 3.6
Additional benefit costs0.1
 —
 0.4
 —
 —
 —
 —
 —
—
 0.1
 —
 0.4
 —
 —
 —
 —

$3.3
 
$1.2
 
$10.1
 
$3.5
 
$0.8
 
$0.4
 
$2.3
 
$1.4

$9.3
 
$7.6
 
$27.9
 
$22.7
 
$2.3
 
($0.1) 
$6.9
 
($0.2)
 Defined Benefit Pension Plans OPEB Plans
 Three Months Nine Months Three Months Nine Months
IPL2016 2015 2016 2015 2016 2015 2016 2015
Service cost
$1.8
 
$2.2
 
$5.6
 
$6.6
 
$0.5
 
$0.6
 
$1.7
 
$1.8
Interest cost6.1
 6.2
 18.4
 18.7
 1.0
 0.9
 2.9
 2.8
Expected return on plan assets(7.7) (8.9) (23.2) (26.8) (1.0) (1.4) (3.2) (4.2)
Amortization of prior service credit—
 —
 (0.1) (0.1) (0.7) (1.5) (2.0) (4.6)
Amortization of actuarial loss4.2
 3.8
 12.4
 11.5
 0.7
 0.6
 2.0
 1.7
 
$4.4
 
$3.3
 
$13.1
 
$9.9
 
$0.5
 
($0.8) 
$1.4
 
($2.5)
 Defined Benefit Pension Plans OPEB Plans
 Three Months Nine Months Three Months Nine Months
WPL2016 2015 2016 2015 2016 2015 2016 2015
Service cost
$1.3
 
$1.4
 
$3.7
 
$4.3
 
$0.5
 
$0.5
 
$1.5
 
$1.6
Interest cost5.5
 5.6
 16.7
 16.9
 0.9
 0.9
 2.8
 2.7
Expected return on plan assets(7.0) (8.1) (21.2) (24.3) (0.2) (0.3) (0.6) (1.1)
Amortization of prior service cost (credit)—
 0.1
 0.1
 0.2
 (0.3) (0.9) (0.7) (2.6)
Amortization of actuarial loss4.4
 4.2
 13.2
 12.6
 0.5
 0.6
 1.4
 1.7
Additional benefit costs—
 0.1
 —
 0.4
 —
 —
 —
 —
 
$4.2
 
$3.3
 
$12.5
 
$10.1
 
$1.4
 
$0.8
 
$4.4
 
$2.3

401(k) Savings PlansPlan - A significant number of employees participate in a defined contribution retirement plansplan (401(k) savings plans)plan). For the three and nine months ended September 30, costs related to the 401(k) savings plans,plan, which are partially based on the participants’ contributions and include allocated costs associated with Corporate Services employees for IPL and WPL, were as follows (in millions):
 Alliant Energy IPL WPL
 Three Months Nine Months Three Months Nine Months Three Months Nine Months
 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
401(k) costs
$6.4
 
$5.3
 
$18.7
 
$17.3
 
$3.3
 
$2.7
 
$9.6
 
$8.4
 
$2.9
 
$2.4
 
$8.4
 
$8.3
 Alliant Energy IPL WPL
 Three Months Nine Months Three Months Nine Months Three Months Nine Months
 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
401(k) costs
$5.6
 
$6.4
 
$17.5
 
$18.7
 
$2.8
 
$3.3
 
$8.8
 
$9.6
 
$2.6
 
$2.9
 
$8.0
 
$8.4

Voluntary Employee Separation Charges - In the third quarter of 2015, Alliant Energy offered certain employees a voluntary separation package. Approximately 2% of total Alliant Energy employees accepted this package, which resulted in Alliant Energy, IPL and WPL recording charges of $8 million, $5 million and $3 million, respectively, in the third quarter of 2015.

(b)NOTE 9(b) Equity-based Compensation Plans - All shares, units and awards included below have been adjusted to reflect the common stock split discussed in Note 6.


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A summary of compensation expense, (includingincluding amounts allocated to IPL and WPL)WPL, and the related income tax benefits recognized for share-based compensation awards for the three and nine months ended September 30 was as follows (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
Three Months Nine Months Three Months Nine Months Three Months Nine MonthsThree Months Nine Months Three Months Nine Months Three Months Nine Months
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
Compensation expense
$0.3
 
$1.2
 
$5.8
 
$7.4
 
$0.2
 
$0.6
 
$3.1
 
$4.0
 
$0.1
 
$0.5
 
$2.5
 
$3.1

$4.4
 
$0.3
 
$16.8
 
$5.8
 
$2.4
 
$0.2
 
$8.9
 
$3.1
 
$1.9
 
$0.1
 
$7.3
 
$2.5
Income tax benefits0.2
 0.5
 2.4
 3.0
 0.1
 0.2
 1.3
 1.6
 —
 0.3
 1.0
 1.3
1.7
 0.2
 6.8
 2.4
 1.0
 0.1
 3.7
 1.3
 0.7
 —
 2.9
 1.0

As of September 30, 20152016, total unrecognized compensation cost related to share-based compensation awards was $6.0$8.2 million, which is expected to be recognized over a weighted average period of between 1one and 2two years. Share-based compensation expense is recognized on a straight-line basis over the requisite service periods and is primarily recorded in “Other operation and maintenance” in the income statements.


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Performance Shares and Performance Units -
Performance Shares - A summary of the performance shares and performance units activity, with share amounts representing the target number of performance shares,awards, was as follows:
2015 2014Performance Shares Performance Units
Nonvested shares, January 1144,424
 139,940
2016 2015 2016 2015
Nonvested awards, January 1288,430
 288,848
 116,412
 127,330
Granted45,403
 51,221
68,585
 90,806
 23,918
 35,674
Vested(45,612) (45,235)(98,186) (91,224) (42,760) (45,690)
Forfeited—
 (1,502)(1,230) —
 (4,250) (902)
Nonvested shares, September 30144,215
 144,424
Nonvested awards, September 30257,599
 288,430
 93,320
 116,412

Granted Awards - For performance units granted in 2016, the final value is based on the closing market price of one share of Alliant Energy’s common stock at the end of the performance period. Compensation expense for performance shares and performance units is recorded ratably over the performance period based on the fair value of the awards at each reporting period.

Vested Awards - During the nine months ended September 30, certain performance shares and performance units vested, resulting in payouts (a combination of cash and common stock) as follows:
 2015 2014
 2012 Grant 2011 Grant
Performance shares vested45,612
 45,235
Percentage of target number of performance shares167.5% 147.5%
Aggregate payout value (in millions)
$5.1
 
$3.4
Payout - cash (in millions)
$3.2
 
$2.9
Payout - common stock shares issued10,975
 4,810

Performance Units - A summary ofstock for the performance units activity, with unit amounts representingshares and cash only for the target number of performance units, wasunits) as follows:
 2015 2014
Nonvested units, January 163,665
 65,912
Granted17,837
 20,422
Vested(22,845) (20,751)
Forfeited(451) (958)
Nonvested units, September 3058,206
 64,625

During the nine months ended September 30, certain performance units vested, resulting in cash payouts as follows:
 2015 2014
 2012 Grant 2011 Grant
Performance units vested22,845
 20,751
Percentage of target number of performance units167.5% 147.5%
Payout value (in millions)
$1.6
 
$1.2
 Performance Shares Performance Units
 2016 2015 2016 2015
 2013 Grant 2012 Grant 2013 Grant 2012 Grant
Performance awards vested98,186
 91,224
 42,760
 45,690
Percentage of target number of performance awards165.0% 167.5% 165.0% 167.5%
Aggregate payout value (in millions)
$5.1
 
$5.1
 
$1.7
 
$1.6
Payout - cash (in millions)
$2.9
 
$3.2
 
$1.7
 
$1.6
Payout - common stock shares issued22,408
 21,950
 N/A N/A

Fair Value of Awards - Information related to fair values of nonvested performance shares and performance units at September 30, 20152016, by year of grant, was as follows:
Performance Shares Performance UnitsPerformance Shares Performance Units
2015 Grant 2014 Grant 2013 Grant 2015 Grant 2014 Grant 2013 Grant2016 Grant 2015 Grant 2014 Grant 2016 Grant 2015 Grant 2014 Grant
Nonvested awards45,403
 49,719
 49,093
 17,386
 19,440
 21,380
67,355
 90,806
 99,438
 22,657
 33,268
 37,395
Alliant Energy common stock closing price on September 30, 2015
$58.49
 
$58.49
 
$58.49
      
Alliant Energy common stock closing price on September 30, 2016
$38.31
 
$38.31
 
$38.31
 
$38.31
 N/A N/A
Alliant Energy common stock closing price on grant date      
$65.09
 
$53.77
 
$47.58
N/A N/A N/A N/A 
$32.55
 
$26.89
Estimated payout percentage based on performance criteria70% 105% 150% 70% 105% 150%125% 168% 175% 125% 168% 175%
Fair values of each nonvested award
$40.94
 
$61.41
 
$87.74
 
$45.56
 
$56.46
 
$71.37

$47.89
 
$64.36
 
$67.04
 
$47.89
 
$54.68
 
$47.05


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At September 30, 2015, fair values of nonvested performance shares and units were calculated based on Alliant Energy’s stock price and anticipated total shareowner returns of Alliant Energy and its investor-owned utility peer group over the performance period. The portion of the fair values based on anticipated total shareowner returns was estimated using a model that incorporates the probability of meeting performance targets based on historical returns relative to the peer group.

Performance Contingent Restricted Stock - A summary of the performance contingent restricted stock activity was as follows:
2015 20142016 2015
Shares 
Weighted
Average
Fair Value
 Shares 
Weighted
Average
Fair Value
Shares 
Weighted Average
Grant Date Fair Value
 Shares 
Weighted Average
Grant Date Fair Value
Nonvested shares, January 198,812
 
$50.69
 158,922
 
$42.71
190,244
 
$29.59
 197,624
 
$25.35
Granted45,403
 65.09
 51,221
 53.77
—
 —
 90,806
 32.55
Vested (a)(49,093) 47.58
 (90,847) 40.91
—
 —
 (98,186) 23.79
Forfeited—
 —
 (20,484) 39.85
Nonvested shares, September 3095,122
 59.17
 98,812
 50.69
190,244
 29.59
 190,244
 29.59

(a)In 2015, 49,09398,186 performance contingent restricted shares granted in 2013 vested because the specified performance criteria for such shares were met. In 2014, 45,612 and 45,235 performance contingent restricted shares granted in 2012 and 2011, respectively, vested because the specified performance criteria for such shares were met.

Performance ContingentRestricted Stock Units and Performance Restricted Units - Alliant Energy granted new types of share-based compensation awards to key employees in the first quarter of 2016 referred to as performance restricted stock units, performance restricted units and key employee performance restricted units. Payouts of these units are based on the achievement of certain performance targets (currently specified growth of consolidated income from continuing operations) during the three-year performance period. The actual number of units that will be paid out upon vesting is dependent upon actual performance and may range from zero to 200% of the target number of units. If performance targets are not met during the performance period, these units are forfeited. Subject to achievement of the performance criteria, payouts of nonvested units are prorated in the event of retirement, death or disability during the first year of the performance period based on time worked during the first year of the period, and are prorated upon involuntary termination without cause based on time worked during the entire period. Subject to achievement of the performance criteria, payouts of units to participants who terminate employment after the first year of the performance period due to retirement, death or disability are not prorated. Participants’ nonvested units are forfeited if the participant voluntarily leaves Alliant Energy or is terminated for cause during the performance period.

Performance Restricted Stock Units - Performance restricted stock units must be paid out in shares and are accounted for as equity awards. Each performance restricted stock unit’s value is based on the closing market price of one share of Alliant Energy’s common stock on the grant date of the award. A summary of the performance restricted stock units activity, with amounts representing the target number of units, was as follows:
 2016
 Units 
Weighted Average
Grant Date Fair Value
Granted68,585
 
$33.96
Forfeited(1,230) 33.90
Nonvested units, September 3067,355
 33.96

Performance Restricted Units - Performance restricted units must be paid out in cash and are accounted for as liability awards. Each performance restricted unit’s final value is based on the closing market price of one share of Alliant Energy’s common stock at the end of the performance period. Compensation expense is recorded ratably over the performance period based on the fair value of the awards at each reporting period. A summary of the performance restricted units activity, with amounts representing the target number of units, was as follows:
2016
Granted23,918
Forfeited(1,261)
Nonvested units, September 3022,657

Key Employee Performance Restricted Units - Key employee performance restricted units must be paid out in cash and are accounted for as liability awards. Each key employee performance restricted unit’s final value is based on the closing market price of one share of Alliant Energy’s common stock on the grant date of the award. Compensation expense is recorded ratably over the performance period based on a probability assessment of payouts for the awards at each reporting period. A summary of the key employee performance restricted units activity, with amounts representing the target number of units, was as follows:

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2016
Granted45,056
Forfeited(2,016)
Nonvested units, September 3043,040

Restricted Stock Units and Restricted Units - Alliant Energy granted new types of share-based compensation awards to key employees in the first quarter of 2016 referred to as restricted stock units and restricted units. Payouts of these units are based on the expiration of a three-year time-vesting period. Payouts of nonvested units are prorated in the event of retirement, death or disability during the first year of the time-vesting period based on time worked during the first year of the period, and are prorated upon involuntary termination without cause based on time worked during the entire period. Upon expiration of the time-vesting period, payouts of units to participants who terminate employment after the first year of the period due to retirement, death or disability are not prorated. Participants’ nonvested units are forfeited if the participant voluntarily leaves Alliant Energy or is terminated for cause during the time-vesting period. Each restricted stock unit’s and restricted unit’s final value is based on the closing market price of one share of Alliant Energy’s common stock at the end of the time-vesting period. Compensation expense is recorded ratably over the performance period based on the fair value of the awards at each reporting period. Restricted stock units can be paid out in shares of Alliant Energy common stock, cash or a combination of cash and stock. Restricted units must be paid out in cash. Alliant Energy assumes it will make future payouts of its restricted stock units and restricted units in cash; therefore, restricted stock units and restricted units are accounted for as liability awards. A summary of the restricted stock units and restricted units activity was as follows:
 2016
 Restricted Stock Units Restricted Units
Granted58,790
 20,502
Forfeited(1,054) (1,082)
Nonvested units, September 3057,736
 19,420

Performance-Contingent Cash Awards - A summary of the performance contingentperformance-contingent cash awards activity was as follows:
2015 20142016 2015
Nonvested awards, January 178,930
 96,977
163,752
 157,860
Granted41,105
 42,446
—
 82,210
Vested (a)(37,332) (55,517)—
 (74,664)
Forfeited(827) (4,295)(3,652) (1,654)
Nonvested awards, September 3081,876
 79,611
160,100
 163,752

(a)
In 2015, 37,332 performance contingent74,664 performance-contingent cash awards granted in 2013 vested, resulting in cash payouts valued at $2.4 million. In 2014, 34,766 and 20,751 performance contingent cash awards granted in 2012 and 2011 vested, resulting in cash payouts valued at $1.9 million and $1.1 million, respectively.

NOTE 10. ASSET RETIREMENT OBLIGATIONS
A reconciliation of the changes in AROs associated with long-lived assets is as follows (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
2015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015
Balance, January 1
$114.0
 
$109.7
 
$51.8
 
$47.9
 
$52.4
 
$52.4

$214.0
 
$114.0
 
$132.9
 
$51.8
 
$71.9
 
$52.4
Revisions in estimated cash flows(a)8.9
 —
 11.9
 —
 (1.9) —
3.9
 8.9
 4.2
 11.9
 (0.3) (1.9)
Liabilities settled(7.1) (1.0) (3.1) (0.5) (4.0) (0.5)(11.2) (7.1) (5.0) (3.1) (6.2) (4.0)
Liabilities incurred (a)76.1
 16.5
 59.9
 16.3
 16.2
 0.2
2.6
 76.1
 0.7
 59.9
 1.9
 16.2
Accretion expense3.4
 3.3
 1.6
 1.6
 1.4
 1.3
4.8
 3.4
 2.8
 1.6
 1.7
 1.4
Balance, September 30
$195.3
 
$128.5
 
$122.1
 
$65.3
 
$64.1
 
$53.4

$214.1
 
$195.3
 
$135.6
 
$122.1
 
$69.0
 
$64.1

(a)In April 2015, the EPA published the final CCR Rule, which regulates CCR as a non-hazardous waste and iswas effective October 2015. IPL and WPL have nine and three coal-fired EGUs, respectively, with coal ash ponds that are impacted by this rule. In addition, IPL and WPL have four and two active CCR landfills, respectively, that are impacted by this rule. During the nine months ended September 30, 2015, Alliant Energy, IPL and WPL recognized additional AROs of $74 million, $57 million and $17 million, respectively, as a result of the final CCR Rule. The increases in AROs resulted in corresponding increases in “Property,property, plant and equipment, net”net on the respective balance sheets. Actual costs resulting from the CCR rule may be different than the amounts recorded during the nine months ended September 30, 2015 due to potential changes in compliance strategies that will be used, as well as other potential cost estimate changes. Expenditures incurred by IPL and WPL to comply with the CCR Rule are anticipated to be recovered in rates from their customers.


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NOTE 11. 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 were as follows (in millions):
 Alliant Energy IPL WPL
September 30, 2015
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Assets:           
Derivative assets (Note 12)

$20.3
 
$20.3
 
$18.5
 
$18.5
 
$1.8
 
$1.8
Deferred proceeds (sales of receivables) (Note 4(a))
195.5
 195.5
 195.5
 195.5
 —
 —
Capitalization and liabilities:           
Long-term debt (including current maturities) (Note 7(b))
3,858.8
 4,394.3
 1,868.5
 2,115.3
 1,543.6
 1,825.5
Cumulative preferred stock200.0
 201.3
 200.0
 201.3
 —
 —
Derivative liabilities (Note 12)
59.1
 59.1
 22.0
 22.0
 37.1
 37.1
 Alliant Energy IPL WPL
December 31, 2014
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Assets:           
Derivative assets (Note 12)

$38.6
 
$38.6
 
$28.0
 
$28.0
 
$10.6
 
$10.6
Deferred proceeds (sales of receivables) (Note 4(a))
177.2
 177.2
 177.2
 177.2
 —
 —
Capitalization and liabilities:           
Long-term debt (including current maturities) (Note 7(b))
3,789.7
 4,418.2
 1,768.7
 2,053.0
 1,573.9
 1,908.9
Cumulative preferred stock200.0
 200.2
 200.0
 200.2
 —
 —
Derivative liabilities (Note 12)
37.6
 37.6
 19.5
 19.5
 18.1
 18.1

Valuation Hierarchy - At each reporting date, Level 1 items included IPL’s 5.1% cumulative preferred stock, Level 2 items included certain non-exchange traded commodity contracts and substantially all of the long-term debt instruments, and Level 3 items included FTRs, certain non-exchange traded commodity contracts and IPL’s deferred proceeds.

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 riskrail transportation costs. 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 purposeType of instrument
Mitigate pricing volatility for: 
Electricity purchased to supply customersElectric swap and physical forward contracts (IPL and WPL)
Fuel used to supply natural gas-fired EGUsNatural gas swap and physical forward contracts (IPL and WPL)
Natural gas supplied to retail customersNatural gas options and physical forward contracts (IPL and WPL)
 Natural gas swap contracts (IPL)
Fuel used at coal-fired EGUsCoal physical forward contracts (IPL and WPL)
Optimize the value of natural gas pipeline capacityNatural gas physical forward contracts (IPL and WPL)
 Natural gas swap contracts (IPL)
Manage transmission congestion costsFTRs (IPL and WPL)
Manage rail transportation costsDiesel fuel swap contracts (WPL)


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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 12 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 proceedsamounts 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 4(a)4 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 7(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.

Items subject to fair value measurement disclosure requirements were as follows (in millions):
Alliant EnergySeptember 30, 2015 December 31, 2014
 Fair Level Level Level Fair Level Level Level
 Value 1 2 3 Value 1 2 3
Assets:               
Derivatives - commodity contracts
$20.3
 
$—
 
$2.6
 
$17.7
 
$38.6
 
$—
 
$2.6
 
$36.0
Deferred proceeds195.5
 —
 —
 195.5
 177.2
 —
 —
 177.2
Capitalization and liabilities:               
Long-term debt (including current maturities)4,394.3
 —
 4,390.6
 3.7
 4,418.2
 —
 4,414.9
 3.3
Cumulative preferred stock201.3
 201.3
 —
 —
 200.2
 200.2
 —
 —
Derivatives - commodity contracts59.1
 —
 16.8
 42.3
 37.6
 —
 19.5
 18.1

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IPLSeptember 30, 2015 December 31, 2014
 Fair Level Level Level Fair Level Level Level
 Value 1 2 3 Value 1 2 3
Assets:               
Derivatives - commodity contracts
$18.5
 
$—
 
$2.1
 
$16.4
 
$28.0
 
$—
 
$2.4
 
$25.6
Deferred proceeds195.5
 —
 —
 195.5
 177.2
 —
 —
 177.2
Capitalization and liabilities:               
Long-term debt (including current maturities)2,115.3
 —
 2,115.3
 —
 2,053.0
 —
 2,053.0
 —
Cumulative preferred stock201.3
 201.3
 —
 —
 200.2
 200.2
 —
 —
Derivatives - commodity contracts22.0
 —
 9.4
 12.6
 19.5
 —
 13.3
 6.2
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 related estimated fair values of other financial instruments were as follows (in millions):
WPLSeptember 30, 2015 December 31, 2014
 Fair Level Level Level Fair Level Level Level
 Value 1 2 3 Value 1 2 3
Assets:               
Derivatives - commodity contracts
$1.8
 
$—
 
$0.5
 
$1.3
 
$10.6
 
$—
 
$0.2
 
$10.4
Capitalization and liabilities:               
Long-term debt (including current maturities)1,825.5
 —
 1,825.5
 —
 1,908.9
 —
 1,908.9
 —
Derivatives - commodity contracts37.1
 —
 7.4
 29.7
 18.1
 —
 6.2
 11.9
Alliant EnergySeptember 30, 2016 December 31, 2015
   Fair Value   Fair Value
 Carrying Level Level Level   Carrying Level Level Level  
 Amount 1 2 3 Total Amount 1 2 3 Total
Assets:                   
Derivatives
$27.8
 
$—
 
$1.9
 
$25.9
 
$27.8
 
$18.4
 
$—
 
$2.5
 
$15.9
 
$18.4
Deferred proceeds239.7
 —
 —
 239.7
 239.7
 172.0
 —
 —
 172.0
 172.0
Liabilities and equity:                   
Derivatives36.9
 —
 3.1
 33.8
 36.9
 64.6
 —
 16.0
 48.6
 64.6
Long-term debt (including current maturities)4,130.9
 —
 4,868.3
 3.3
 4,871.6
 3,835.6
 —
 4,332.4
 3.7
 4,336.1
Cumulative preferred stock of IPL200.0
 215.4
 —
 —
 215.4
 200.0
 206.6
 —
 —
 206.6
IPLSeptember 30, 2016 December 31, 2015
   Fair Value   Fair Value
 Carrying Level Level Level   Carrying Level Level Level  
 Amount 1 2 3 Total Amount 1 2 3 Total
Assets:                   
Derivatives
$22.2
 
$—
 
$1.2
 
$21.0
 
$22.2
 
$15.5
 
$—
 
$2.0
 
$13.5
 
$15.5
Deferred proceeds239.7
 —
 —
 239.7
 239.7
 172.0
 —
 —
 172.0
 172.0
Liabilities and equity:                   
Derivatives9.0
 —
 1.4
 7.6
 9.0
 23.4
 —
 8.0
 15.4
 23.4
Long-term debt (including current maturities)2,153.1
 —
 2,495.8
 —
 2,495.8
 1,856.9
 —
 2,092.7
 —
 2,092.7
Cumulative preferred stock200.0
 215.4
 —
 —
 215.4
 200.0
 206.6
 —
 —
 206.6
WPLSeptember 30, 2016 December 31, 2015
   Fair Value   Fair Value
 Carrying Level Level Level   Carrying Level Level Level  
 Amount 1 2 3 Total Amount 1 2 3 Total
Assets:                   
Derivatives
$5.6
 
$—
 
$0.7
 
$4.9
 
$5.6
 
$2.9
 
$—
 
$0.5
 
$2.4
 
$2.9
Liabilities and equity:                   
Derivatives27.9
 —
 1.7
 26.2
 27.9
 41.2
 —
 8.0
 33.2
 41.2
Long-term debt (including current maturities)1,534.9
 —
 1,920.4
 —
 1,920.4
 1,533.9
 —
 1,793.0
 —
 1,793.0

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.


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Information for fair value measurements using significant unobservable inputs (Level 3 inputs) was as follows (in millions):
Alliant EnergyCommodity Contract Derivative  Commodity Contract Derivative  
Assets and (Liabilities), net Deferred ProceedsAssets and (Liabilities), net Deferred Proceeds
Three Months Ended September 302015 2014 2015 20142016 2015 2016 2015
Beginning balance, July 1
$0.6
 
$101.2
 
$73.4
 
$193.7

$0.6
 
$0.6
 
$74.4
 
$73.4
Total net losses (realized/unrealized) included in changes in net assets(21.1) (12.7) —
 —
Total net losses included in changes in net assets (realized/unrealized)(5.1) (21.1) —
 —
Transfers out of Level 30.8
 —
 —
 —
Sales(0.4) (1.2) —
 —
(0.2) (0.4) —
 —
Settlements (a)(3.7) (19.0) 122.1
 (33.4)(4.0) (3.7) 165.3
 122.1
Ending balance, September 30
($24.6) 
$68.3
 
$195.5
 
$160.3

($7.9) 
($24.6) 
$239.7
 
$195.5
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 September 30
($18.4) 
($10.3) 
$—
 
$—

($5.0) 
($18.4) 
$—
 
$—

25
Alliant EnergyCommodity Contract Derivative  
 Assets and (Liabilities), net Deferred Proceeds
Nine Months Ended September 302016 2015 2016 2015
Beginning balance, January 1
($32.7) 
$17.9
 
$172.0
 
$177.2
Total net gains (losses) included in changes in net assets (realized/unrealized)8.0
 (58.2) —
 —
Transfers into Level 30.9
 —
 —
 —
Transfers out of Level 31.2
 0.6
 —
 —
Purchases22.0
 36.9
 —
 —
Sales(0.9) (1.7) —
 —
Settlements (a)(6.4) (20.1) 67.7
 18.3
Ending balance, September 30
($7.9) 
($24.6) 
$239.7
 
$195.5
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 September 30
$9.7
 
($52.2) 
$—
 
$—
IPLCommodity Contract Derivative  
 Assets and (Liabilities), net Deferred Proceeds
Three Months Ended September 302016 2015 2016 2015
Beginning balance, July 1
$18.3
 
$18.3
 
$74.4
 
$73.4
Total net losses included in changes in net assets (realized/unrealized)(0.4) (8.6) —
 —
Transfers out of Level 30.3
 —
 —
 —
Sales(0.2) (0.4) —
 —
Settlements (a)(4.6) (5.5) 165.3
 122.1
Ending balance, September 30
$13.4
 
$3.8
 
$239.7
 
$195.5
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 September 30
($0.4) 
($8.0) 
$—
 
$—
IPLCommodity Contract Derivative  
 Assets and (Liabilities), net Deferred Proceeds
Nine Months Ended September 302016 2015 2016 2015
Beginning balance, January 1
($1.9) 
$19.4
 
$172.0
 
$177.2
Total net gains (losses) included in changes in net assets (realized/unrealized)4.8
 (26.0) —
 —
Transfers into Level 30.5
 —
 —
 —
Transfers out of Level 30.2
 —
 —
 —
Purchases20.6
 33.1
 —
 —
Sales(0.9) (1.6) —
 —
Settlements (a)(9.9) (21.1) 67.7
 18.3
Ending balance, September 30
$13.4
 
$3.8
 
$239.7
 
$195.5
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 September 30
$5.7
 
($21.2) 
$—
 
$—

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Alliant EnergyCommodity Contract Derivative  
 Assets and (Liabilities), net Deferred Proceeds
Nine Months Ended September 302015 2014 2015 2014
Beginning balance, January 1
$17.9
 
$4.4
 
$177.2
 
$203.5
Total net gains (losses) (realized/unrealized) included in changes in net assets(58.2) 43.0
 —
 —
Transfers out of Level 30.6
 —
 —
 —
Purchases36.9
 76.7
 —
 —
Sales(1.7) (1.2) —
 —
Settlements (a)(20.1) (54.6) 18.3
 (43.2)
Ending balance, September 30
($24.6) 
$68.3
 
$195.5
 
$160.3
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 September 30
($52.2) 
$34.6
 
$—
 
$—
IPLCommodity Contract Derivative  
WPLCommodity Contract Derivative
Assets and (Liabilities), net Deferred ProceedsAssets and (Liabilities), net
Three Months Ended September 302015 2014 2015 20142016 2015
Beginning balance, July 1
$18.3
 
$64.2
 
$73.4
 
$193.7

($17.7) 
($17.7)
Total net losses (realized/unrealized) included in changes in net assets(8.6) (10.1) —
 —
Sales(0.4) (1.0) —
 —
Total net losses included in changes in net assets (realized/unrealized)(4.7) (12.5)
Transfers out of Level 30.5
 —
Settlements (a)(5.5) (16.6) 122.1
 (33.4)0.6
 1.8
Ending balance, September 30
$3.8
 
$36.5
 
$195.5
 
$160.3

($21.3) 
($28.4)
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 September 30
($8.0) 
($9.6) 
$—
 
$—

($4.6) 
($10.4)
IPLCommodity Contract Derivative  
 Assets and (Liabilities), net Deferred Proceeds
Nine Months Ended September 302015 2014 2015 2014
Beginning balance, January 1
$19.4
 
$14.6
 
$177.2
 
$203.5
Total net losses (realized/unrealized) included in changes in net assets(26.0) (5.1) —
 —
Purchases33.1
 68.8
 —
 —
Sales(1.6) (1.0) —
 —
Settlements (a)(21.1) (40.8) 18.3
 (43.2)
Ending balance, September 30
$3.8
 
$36.5
 
$195.5
 
$160.3
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 September 30
($21.2) 
($6.0) 
$—
 
$—
WPLCommodity Contract Derivative
 Assets and (Liabilities), net
Three Months Ended September 302015 2014
Beginning balance, July 1
($17.7) 
$37.0
Total net losses (realized/unrealized) included in changes in net assets(12.5) (2.6)
Sales—
 (0.2)
Settlements1.8
 (2.4)
Ending balance, September 30
($28.4) 
$31.8
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 September 30
($10.4) 
($0.7)

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WPLCommodity Contract DerivativeCommodity Contract Derivative
Assets and (Liabilities), netAssets and (Liabilities), net
Nine Months Ended September 302015 20142016 2015
Beginning balance, January 1
($1.5) 
($10.2)
($30.8) 
($1.5)
Total net gains (losses) (realized/unrealized) included in changes in net assets(32.2) 48.1
Total net gains (losses) included in changes in net assets (realized/unrealized)3.2
 (32.2)
Transfers into Level 30.4
 —
Transfers out of Level 30.6
 —
1.0
 0.6
Purchases3.8
 7.9
1.4
 3.8
Sales(0.1) (0.2)—
 (0.1)
Settlements1.0
 (13.8)3.5
 1.0
Ending balance, September 30
($28.4) 
$31.8

($21.3) 
($28.4)
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 September 30
($31.0) 
$40.6

$4.0
 
($31.0)

(a)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) as follows (in millions):
 Alliant Energy IPL WPL
 Excluding FTRs FTRs Excluding FTRs FTRs Excluding FTRs FTRs
September 30, 2015
($39.4) 
$14.8
 
($10.9) 
$14.7
 
($28.5) 
$0.1
December 31, 2014(7.0) 24.9
 (3.2) 22.6
 (3.8) 2.3
 Alliant Energy IPL WPL
 Excluding FTRs FTRs Excluding FTRs FTRs Excluding FTRs FTRs
September 30, 2016
($26.3) 
$18.4
 
($3.5) 
$16.9
 
($22.8) 
$1.5
December 31, 2015(43.1) 10.4
 (12.3) 10.4
 (30.8) —

NOTE 12. DERIVATIVE INSTRUMENTS
Commodity Derivatives -
Purpose - Derivative instruments are periodically used 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 derivative instruments.

Notional Amounts - As of September 30, 2015,2016, gross notional amounts and settlement/delivery years related to outstanding swap contracts, option contracts, physical forward contracts, FTRs, coal contracts and coaldiesel fuel contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):
Electricity FTRs Natural Gas CoalElectricity FTRs Natural Gas Coal Diesel Fuel
MWhs Years MWhs Years Dths Years Tons YearsMWhs Years MWhs Years Dths Years Tons Years Gallons Years
Alliant Energy7,024
 2015-2018 15,793
 2015-2016 103,867
 2015-2020 4,918
 2015-20183,427
 2016-2018 14,437 2016-2017 82,277
 2016-2020 4,640
 2016-2019 3,780
 2016-2017
IPL1,302
 2015-2016 8,880
 2015-2016 67,910
 2015-2020 1,585
 2015-2018187
 2016 8,865
 2016-2017 47,141
 2016-2020 2,202
 2016-2019 —
 —
WPL5,722
 2015-2018 6,913
 2015-2016 35,957
 2015-2017 3,333
 2015-20183,240
 2016-2018 5,572
 2016-2017 35,136
 2016-2020 2,438
 2016-2018 3,780
 2016-2017


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Financial Statement Presentation - Derivative instruments are recorded at fair value each reporting date on the balance sheets as assets or liabilities. The fair values of current derivative assets are included in “Other current assets,” non-current derivative assets are included in “Deferred charges and other,” current derivative liabilities are included in “Other current liabilities” and non-current derivative liabilities are included in “Other liabilities” on the balance sheets as follows (in millions):
 Alliant Energy IPL WPL
Commodity contractsSeptember 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014
Current derivative assets
$19.5
 
$30.5
 
$17.8
 
$27.4
 
$1.7
 
$3.1
Non-current derivative assets0.8
 8.1
 0.7
 0.6
 0.1
 7.5
Current derivative liabilities35.4
 28.1
 15.2
 16.4
 20.2
 11.7
Non-current derivative liabilities23.7
 9.5
 6.8
 3.1
 16.9
 6.4

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 Alliant Energy IPL WPL
Commodity contractsSeptember 30,
2016		 December 31,
2015		 September 30,
2016		 December 31,
2015		 September 30,
2016		 December 31,
2015
Current derivative assets
$25.1
 
$15.1
 
$20.5
 
$13.8
 
$4.6
 
$1.3
Non-current derivative assets2.7
 3.3
 1.7
 1.7
 1.0
 1.6
Current derivative liabilities21.2
 47.3
 5.4
 18.5
 15.8
 28.8
Non-current derivative liabilities15.7
 17.3
 3.6
 4.9
 12.1
 12.4



Changes inUnrealized gains (losses)and losses from commodity derivative instruments were recorded with offsets to regulatory assets or regulatory liabilities on the balance sheets as follows (in millions):
 Alliant Energy IPL WPL
 2015 2014 2015 2014 2015 2014
Three Months Ended September 30           
Regulatory assets
($27.4) 
$8.3
 
($9.5) 
$7.3
 
($17.9) 
$1.0
Regulatory liabilities(2.5) (6.2) (1.2) (2.0) (1.3) (4.2)
Nine Months Ended September 30           
Regulatory assets(69.5) 13.8
 (33.3) 8.7
 (36.2) 5.1
Regulatory liabilities(4.9) 63.2
 1.0
 13.9
 (5.9) 49.3
sheets. Refer to Notes 2 and 11 for further discussion.

Credit Risk-related Contingent Features - Various agreements contain credit risk-related contingent features, including requirements to maintain certain credit ratings and/or limitations on liability positions under the agreements based on credit ratings. Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. In the event of a material change in creditworthiness or if liability positions exceed certain contractual limits, credit support may need to be provided in the form of letters of credit or cash collateral up to the amount of exposure under the contracts, or the contracts may need to be unwound and underlying liability positions paid. TheAt September 30, 2016 and December 31, 2015, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a net liability position as well aswas not materially different than amounts that would be required to be posted as credit support to counterparties by Alliant Energy, IPL or WPL if the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered, were as follows (in millions):triggered.
 Alliant Energy IPL WPL
 September 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014		 September 30,
2015		 December 31,
2014
Aggregate fair value
$59.1
 
$37.6
 
$22.0
 
$19.5
 
$37.1
 
$18.1
Credit support to be posted if triggered59.0
 37.4
 22.0
 19.5
 37.0
 17.9

Balance Sheet Offsetting - The fair value amounts of derivative instruments subject to a master netting arrangement are not netted by counterparty on the balance sheets. However, if the fair value amounts of derivative instruments by counterparty were netted, amounts would not be materially different from gross amounts of derivative assets and derivative liabilities related to commodity contracts would have been presented on the balance sheets as follows (in millions):
 Alliant Energy IPL WPL
 Gross   Gross   Gross  
 (as reported) Net (as reported) Net (as reported) Net
September 30, 2015           
Derivative assets
$20.3
 
$18.0
 
$18.5
 
$17.3
 
$1.8
 
$0.7
Derivative liabilities59.1
 56.8
 22.0
 20.8
 37.1
 36.0
December 31, 2014           
Derivative assets38.6
 33.0
 28.0
 24.7
 10.6
 8.3
Derivative liabilities37.6
 32.0
 19.5
 16.2
 18.1
 15.8

at September 30, 2016 and December 31, 2015. Fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement.

NOTE 13. COMMITMENTS AND CONTINGENCIES
(a)NOTE 13(a) Capital Purchase Obligations - Various contractual obligations contain minimum future commitments related to capital expenditures for certain construction projects. IPL’s projects include generation maintenance and performance improvements for Marshalltown Combustion Turbine Units 1-3.the installation of an SCR system at Ottumwa Unit 1 to reduce NOx emissions at the EGU. WPL’s projects include the installation of a scrubber and baghouse at Edgewater Unit 5 to reduce SO2 and mercury emissions, generation maintenance and performance improvements at Columbia Units 1 and 2, andRiverside expansion, the installation of an SCR system at Columbia Unit 2 to reduce NOx emissions at the EGU.EGU, and generation maintenance and performance improvements at Columbia Units 1 and 2. At September 30, 2015,2016, Alliant Energy’s, IPL’s and WPL’s minimum future commitments related to certain contractual obligations for these projects were $27 million, $8$1 million and $19$26 million, respectively.


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(b)NOTE 13(b) Operating Expense Purchase Obligations - Various commodity supply, transportation and storage contracts help meet obligations to provide electricity and natural gas to utility customers. Other operating expense purchase obligations with various vendors provide other goods and services. At September 30, 20152016, minimum future commitments related to these operating expense purchase obligations were as follows (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
Purchased power (a):          
DAEC (IPL)
$1,448
 
$1,448
 
$—

$1,320
 
$1,320
 
$—
Other183
 1
 182
139
 1
 138
1,631
 1,449
 182
1,459
 1,321
 138
Natural gas389
 265
 124
557
 231
 326
Coal (b)262
 117
 145
193
 85
 108
SO2 emission allowances22
 22
 —
8
 8
 —
Other (c)11
 8
 3
21
 4
 1

$2,315
 
$1,861
 
$454

$2,238
 
$1,649
 
$573

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(a)Includes payments required by PPAspurchased power agreements for capacity rights and minimum quantities of MWhs required to be purchased.
(b)
Corporate Services entered into system-wide coal contracts on behalf of IPL and WPL that include minimum future commitments. These commitments were assigned to IPL and WPL based on information available as of September 30, 20152016 regarding expected future usage, which is subject to change.
(c)
Includes individual commitments incurred during the normal course of business that exceeded $1 million at September 30, 20152016.

(c)NOTE 13(c) Legal Proceedings -
Flood Damage Claims - In June 2013, several plaintiffs purporting to represent a class of residential and commercial property owners filed a complaint against CRANDIC, Alliant Energy and various other defendants in the Iowa District Court for Linn County. Plaintiffs assert claims of negligence and strict liability based on their allegations that CRANDIC (along with other defendants) caused or exacerbated flooding of the Cedar River in June 2008. In July 2013, the case was removed from state court to federal court based on federal jurisdiction. In September 2013, the U.S. District Court for the Northern District of Iowa dismissed the Plaintiffs’ claims and transferred the case for resolution to the Surface Transportation Board, the administrative agency that oversees the Interstate Commerce Commission Termination Act. In October 2013, the Plaintiffs appealed the federal court’s dismissal of the case to the Eighth Circuit Court of Appeals. In May 2015, the Eighth Circuit Court of Appeals vacated the U.S. District Court for the Northern District of Iowa’s decision and ordered the case remanded back toFebruary 2016, the Iowa District Court for Linn County.County ruled in favor of Alliant Energy and CRANDIC believeand dismissed all claims against them, resulting in no loss. In August 2016, the case is without merit and will continue to vigorously contestIowa District Court for Linn County dismissed all claims against the case. Asremaining defendants. In September 2016, plaintiffs filed a result,notice of appeal with the Supreme Court of Iowa. Alliant Energy does not currently believe any material losses from these claimsfor this complaint are both probable and reasonably estimated, and therefore has not recognized any material loss contingency amounts for this complaint as of September 30, 2015. Due to the lack of specific damages identified and the procedural nature of the activity to date, Alliant Energy is currently unable to provide an estimate of potential loss or range of potential loss.2016.

(d)NOTE 13(d) Guarantees and Indemnifications -
RMT - In 2013, Alliant Energy sold RMT. RMT provided renewable energy services, including construction and high voltage connection services for wind and solar projects. As part of the sale, Alliant Energy indemnified the buyer for any claims, including claims of warranty under the project obligations that were commenced or are based on actions that occurred prior to the sale, except for liabilities already accounted for through adjustments to the purchase price. The indemnification obligations either cease to exist when the statute of limitation for such claims is met or, in the case of RMT’s projects, when the warranty period under the agreements expires. The contractual warranty periods for RMT’s projects generally range from 12 to 60 months with the latest expiring in 2016. Limited warranties may be extended in certain cases for warranty work performed.

Alliant Energy also continues to guarantee RMT’s performance obligations related to certain of RMT’s projects that were commenced prior to Alliant Energy’s sale of RMT. As of September 30, 2015,2016, Alliant Energy had $123 million of performance guarantees outstanding, with $48 million and $75 million currently expected to expire in 2016 and 2017, respectively. The expiration of these performance guarantees may be extended depending on when all valid warranty claims are resolved for the respective projects.


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Although Alliant Energy has received warranty claims related to certain of these projects, it does not currently believe that material losses are both probable and reasonably estimated, and therefore, has not recognized any material liabilities related to these matters as of September 30, 2015.2016. Alliant Energy does not currently believe that the range of future potential loss from any warranty claims will be material. Refer to Note 16 for further discussion of RMT, including amounts Alliant Energy recorded to “Operating expenses” during the nine months ended September 30, 20152016 and 20142015 related to certain warranty claims.

Whiting Petroleum - In 2004, Alliant Energy sold its remaining interest in Whiting Petroleum. Whiting Petroleum is an independent oil and gas company. Alliant EnergyResources, as the successor to a predecessor entity that owned Whiting Petroleum, continues to guarantee the partnership obligations relatedof an affiliate of Whiting Petroleum under general partnership agreements in the oil and gas industry, including with respect to the future abandonment of certain platforms off the coast of California and related onshore plant and equipment that were owned by Whiting Petroleum prior to Alliant Energy’s sale of Whiting Petroleum.the partnerships. The guarantee doesguarantees do not include a maximum limit. As of September 30, 20152016, the present value of the abandonment obligations is estimated at $27$30 million. Alliant Energy believesis not aware of any material liabilities related to these guarantees of which it is probable that no paymentsResources will be made under this guarantee. Alliant Energyobligated to pay and therefore has not recognized any material liabilities related to this guarantee as of September 30, 2015.2016.

IPL’s Minnesota Electric Distribution Assets - IPL provided indemnifications associated with the July 2015 sale of its Minnesota electric distribution assets for losses resulting from potential breach of IPL’s representations, warranties and obligations under the sale agreement. Alliant Energy and IPL believe the likelihood of having to make any material cash payments under these indemnifications is remote. IPL has not recorded any material liabilities related to these indemnifications as of September 30, 2015.2016. The general terms of the indemnifications provided by IPL included a maximum limit of $17 million and expire in October 2020. Refer to Note 3 for further discussion of the sale of IPL’s Minnesota electric distribution assets.

(e)
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NOTE 13(e) Environmental Matters -
MGP Sites - IPL and WPL have current or previous ownership interests in various sites that are previously associated with the production of gas for which IPL and WPL have, or may have in the future, liability for investigation, remediation and monitoring costs. IPL and WPL are working pursuant to the requirements of various federal and state agencies to investigate, mitigate, prevent and remediate, where necessary, the environmental impacts to property, including natural resources, at and around these former MGP sites in order to protect public health and the environment. IPL and WPL are currently monitoring and/or remediating 2423 and 5 sites, respectively. No longer included in IPL’s sites is a Minnesota site for which responsibility of the site was transferred to the buyer as part of the sale of IPL’s Minnesota natural gas distribution assets completed in April 2015.

Environmental liabilities related to the MGP sites are recorded based upon periodic studies. Such amounts are based on the best current estimate of the remaining amount to be incurred for investigation, remediation and monitoring costs for those sites where the investigation process has been or is substantially completed, and the minimum of the estimated cost range for those sites where the investigation is in its earlier stages. There are inherent uncertainties associated with the estimated remaining costs for MGP projects primarily due to unknown site conditions and potential changes in regulatory agency requirements. It is possible that future cost estimates will be greater than current estimates as the investigation process proceeds and as additional facts become known. The amounts recognized as liabilities are reduced for expenditures incurred and are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted. At September 30, 20152016, estimated future costs expected to be incurred for the investigation, remediation and monitoring of the MGP sites, as well as environmental liabilities recorded on the balance sheets for these sites, were as follows (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
Range of estimated future costs
$11
-$29 
$10
-$26 
$1
-$3
$11
-$27 
$9
-$23 
$2
-$4
Current and non-current environmental liabilities16 13 315 12 3

WPL Consent Decree - In 2009,2013, the U.S. District Court for the Western District of Wisconsin approved a Consent Decree that WPL, along with the other owners of Edgewater and Columbia, entered into with the EPA sent a notice of violation to WPL as an owner and the operatorSierra Club, thereby resolving claims against WPL. Such claims included allegations that the owners of Edgewater, Nelson Dewey and Columbia alleging that the owners of such EGUs failed to comply with appropriate pre-construction review and permitting requirements and as a result violated the Prevention of Significant Deterioration program requirements, Title V Operating Permit requirements of the CAA and the Wisconsin State Implementation Plan. In 2010, the Sierra Club filed complaints against WPL, as owner and operator of Nelson Dewey and Columbia, and separately as owner and operator of Edgewater, based on allegations that modifications were made at the facilities without complying with the Prevention of Significant Deterioration program requirements, Title V Operating Permit requirements of the CAA and state regulatory counterparts contained within the Wisconsin State Implementation Plan designed to implement the CAA.


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In April 2013, WPL along with the other owners of Edgewater and Columbia, entered into a Consent Decree with the EPA and the Sierra Club to resolve the claims relating to Edgewater, Columbia and Nelson Dewey, while admitting no liability. In June 2013,has completed various requirements under the Consent Decree was approved by the U.S. District Court for the Western District of Wisconsin, thereby resolving all claims against WPL. Under the Consent Decree, WPL is required to install the following emission controls systems:

SCR system at Edgewater Unit 5 by May 1, 2013 (placed in service in 2012);
Scrubbers and baghouses at Columbia Units 1 and 2 by December 31, 2014 (placed in service in 2014);
Scrubber and baghouse at Edgewater Unit 5 by December 31, 2016; and
Decree. WPL’s remaining requirements include installing an SCR system at Columbia Unit 2 by December 31, 2018.

WPL is also required to fuel switch or retire Nelson Dewey Units 1 and 2 and Edgewater Unit 3 by December 31, 2015, and Edgewater Unit 4 by December 31, 2018. In addition, the Consent Decree establishes emission rate limits for SO2, NOx and particulate matter for Columbia Units 1 and 2, Nelson Dewey Units 1 and 2 and Edgewater Units 4 and 5. The Consent Decree also includes annual plant-wide emission caps for SO2 and NOx for Columbia Edgewater and Nelson Dewey. In addition,Edgewater. WPL will completeis in the process of completing approximately $7$7 million in environmental mitigation projects.

Final recovery of the costs expected to be incurred related to the Consent Decree will be decided by the PSCW in future rate cases or other proceedings. Alliant Energy and WPL currently expect to recover any material costs incurred by WPL related to compliance with the terms of the Consent Decree from WPL’s electric customers. The recovery of such costs will be decided by the PSCW in future rate cases or other proceedings.

IPL Consent Decree - In July 2015, the U.S. District Court for the Northern District of Iowa approved a Consent Decree that IPL entered into a Consent Decree with the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa, to resolvethereby resolving potential claims regarding CAA issues associated with emissions from IPL’s coal-fired generating facilities in Iowa, while admitting no liability. In September 2015,Iowa. IPL has completed various requirements under the Consent Decree was approved by the U.S. District Court for the Northern District of Iowa, thereby resolving all potential claims against IPL. Under the Consent Decree, IPL is required to install the following emission controls systems:

Scrubber and baghouse at the Ottumwa Generating Station by December 31, 2015 (placed in service in 2014);
Scrubber and baghouse at the Lansing Generating Station by December 31, 2016 (scrubber was placed in service in June 2015 and baghouse was placed in service in 2010); and
Decree. IPL’s remaining requirements include installing an SCR system or equivalent NOx reduction system at the Ottumwa Generating Station by December 31, 2019.

IPL is also required to2019; fuel switchswitching or retire the following EGUs:

M.L. Kapp Generating Station by August 31, 2015 (switched the fuel type from coal to natural gas in June 2015);
retiring Prairie Creek Unit 4 by June 1, 2018;
2018, the Burlington Generating Station by December 31, 2021;2021 and
Prairie Creek Units 1 and 3 by December 31, 2025.

In addition, IPL is required to2025; and either installinstalling combined cycle technology at, or retire,retiring, the Dubuque and Sutherland GenerationGenerating Stations by June 1, 2019. IPL previously switched the fuel type from coal to natural gas at these EGUs.

The Consent Decree also establishes SO2, NOx and particulate matter emission rate limits with varying averaging times for the Burlington, Lansing, M.L. Kapp, Ottumwa and Prairie Creek Generating Stations. In addition, the Consent Decree includes calendar-year SO2 and NOx emission caps for the Prairie Creek Generating Station, and calendar-year SO2 and NOx emission caps in aggregate for the Burlington, Dubuque, Lansing, M.L. Kapp, Ottumwa, Prairie Creek and Sutherland Generating Stations. Pursuant to the Consent Decree, IPL paid a civil penalty of $1 million in September 2015 and will also complete approximately $6 million in environmental mitigation projects.


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Alliant Energy and IPL currently expect to recover material costs incurred by IPL related to the emissionenvironmental control systems and environmental mitigation projects from IPL’s electric customers. The recovery of such costs will be decided by IPL’s regulators in future rate cases or other proceedings. Alliant Energy and IPL currently do not expect to recover costs related to the civil penalty from IPL’s electric customers.


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Other Environmental Contingencies - In addition to the environmental liabilities discussed above, various environmental rules are monitored that may have a significant impact on future operations. Several of these environmental rules are subject to legal challenges, reconsideration and/or other uncertainties. Given uncertainties regarding the outcome, timing and compliance plans for these environmental matters, the complete financial impact of each of these rules is not able to be determined; however future capital investments and/or modifications to EGUs to comply with certain of these rules could be significant. Specific current, proposed or potential environmental matters include, among others: Cross-State Air Pollution Rule, Clean Air Visibility Rule, Mercury and Air Toxic Standard Rule, Industrial Boiler and Process Heater Maximum Achievable Control Technology Rule, Ozone NAAQS Rule, SO2 NAAQS Rule, Federal Clean Water Act including Section 316(b), Effluent Limitation Guidelines, Hydroelectric Fish Passage Device, CCR Rule, and various legislation and EPA regulations to monitor and regulate the emission of greenhouse gases, including carbon emissions from new (CAA Section 111(b)) and existing (CAA Section 111(d)) fossil-fueled EGUs. Some recent developments concerning these environmental matters are included below:

Air Quality -
Ozone NAAQS Rule - In October 2015, the EPA published a final revised Ozone NAAQS Rule, which is more stringent than the previous version of the rule and may require NOx emission reductions in certain non-attainment areas designated by the EPA. The EPA’s final designations of non-attainment areas for this revised rule are currently expected to be issued by October 2017. Compliance deadlines range from 2020 through 2037 depending on the level of NOx emissions in non-attainment areas.

Clean Air Act Section 111(d) - In October 2015, the EPA published final standards under Section 111(d) of the CAA, which establish guidelines for states to follow in developing plans to reduce carbon dioxide emissions from existing fossil-fueled EGUs. The final standards include an interim compliance period from 2022 through 2029 and a final compliance requirement beginning in 2030. The EPA also published a proposed federal plan that would be implemented in states that do not complete a fully approved state plan.

Clean Air Act Section 111(b) - In October 2015, the EPA published final standards under Section 111(b) of the CAA, which establish carbon dioxide emissions limits for certain new fossil-fueled EGUs. Marshalltown and WPL’s proposed Riverside expansion are expected to be impacted by these standards. Marshalltown is being constructed, and WPL’s proposed Riverside expansion is being designed, to achieve compliance with these standards.

Water Quality -
Effluent Limitation Guidelines - In November 2015, the EPA published final effluent limitation guidelines, which require changes to discharge limits for wastewater from steam generating facilities. Compliance will be required after November 1, 2018 but before December 31, 2023, depending on each facility’s wastewater permit renewal cycle for existing steam generating facilities and immediately upon operation for new steam generating facilities constructed after the effective date of the final guidelines.

Land and Solid Waste -
CCR Rule - Refer to Note 10 for discussion of the final CCR Rule, including additional AROs that were recognized during the nine months ended September 30, 2015 related to such rule.


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NOTE 14. SEGMENTS OF BUSINESS
Alliant Energy - Certain financial information relating to Alliant Energy’s business segments is as follows. Intersegment revenues were not material to Alliant Energy’s operations. Refer to Note 3 for discussion of asset valuation charges recorded in the third quarter of 2016 related to the Franklin County wind farm, which decreased the assets for “Non-Regulated, Parent and Other.”
Utility Non-Regulated, Alliant EnergyUtility Non-Regulated, Alliant Energy
Electric Gas Other Total Parent and Other ConsolidatedElectric Gas Other Total Parent and Other Consolidated
(in millions)(in millions)
Three Months Ended September 30, 2016           
Operating revenues
$864.3
 
$39.5
 
$9.4
 
$913.2
 
$11.4
 
$924.6
Operating income (loss)244.2
 (3.7) 0.4
 240.9
 (78.3) 162.6
Amounts attributable to Alliant Energy common shareowners:           
Income (loss) from continuing operations, net of tax      183.1
 (54.3) 128.8
Loss from discontinued operations, net of tax      —
 (0.4) (0.4)
Net income (loss)      183.1
 (54.7) 128.4
Three Months Ended September 30, 2015                      
Operating revenues
$835.8
 
$38.0
 
$13.4
 
$887.2
 
$11.7
 
$898.9

$835.8
 
$38.0
 
$13.4
 
$887.2
 
$11.7
 
$898.9
Operating income (loss)232.8
 (5.7) 0.2
 227.3
 8.6
 235.9
232.8
 (5.7) 0.2
 227.3
 8.6
 235.9
Amounts attributable to Alliant Energy common shareowners:                      
Income (loss) from continuing operations, net of tax      184.9
 (4.9) 180.0
      184.5
 (4.5) 180.0
Loss from discontinued operations, net of tax      —
 (0.1) (0.1)      —
 (0.1) (0.1)
Net income (loss)      184.9
 (5.0) 179.9
      184.5
 (4.6) 179.9
Three Months Ended September 30, 2014           
Operating revenues
$771.2
 
$47.2
 
$12.2
 
$830.6
 
$12.5
 
$843.1
Operating income (loss)190.8
 (4.4) 1.4
 187.8
 7.0
 194.8
Amounts attributable to Alliant Energy common shareowners:           
Income (loss) from continuing operations, net of tax      164.1
 (8.9) 155.2
Loss from discontinued operations, net of tax      —
 (1.9) (1.9)
Net income (loss)      164.1
 (10.8) 153.3

 Utility Non-Regulated, Alliant Energy
 Electric Gas Other Total Parent and Other Consolidated
 (in millions)
Nine Months Ended September 30, 2015           
Operating revenues
$2,147.5
 
$288.1
 
$44.6
 
$2,480.2
 
$33.3
 
$2,513.5
Operating income438.4
 28.6
 8.7
 475.7
 22.1
 497.8
Amounts attributable to Alliant Energy common shareowners:          

Income from continuing operations, net of tax      333.0
 12.5
 345.5
Loss from discontinued operations, net of tax      —
 (1.4) (1.4)
Net income      333.0
 11.1
 344.1
Nine Months Ended September 30, 2014           
Operating revenues
$2,090.9
 
$364.8
 
$50.6
 
$2,506.3
 
$39.9
 
$2,546.2
Operating income374.2
 41.3
 11.5
 427.0
 25.3
 452.3
Amounts attributable to Alliant Energy common shareowners:           
Income from continuing operations, net of tax      315.3
 10.0
 325.3
Loss from discontinued operations, net of tax      —
 (2.2) (2.2)
Net income      315.3
 7.8
 323.1


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 Utility Non-Regulated, Alliant Energy
 Electric Gas Other Total Parent and Other Consolidated
 (in millions)
Nine Months Ended September 30, 2016           
Operating revenues
$2,209.1
 
$248.7
 
$35.0
 
$2,492.8
 
$30.2
 
$2,523.0
Operating income (loss)473.3
 27.0
 4.4
 504.7
 (67.6) 437.1
Amounts attributable to Alliant Energy common shareowners:           
Income (loss) from continuing operations, net of tax      350.3
 (39.5) 310.8
Loss from discontinued operations, net of tax      —
 (2.0) (2.0)
Net income (loss)      350.3
 (41.5) 308.8
Nine Months Ended September 30, 2015           
Operating revenues
$2,147.5
 
$288.1
 
$44.6
 
$2,480.2
 
$33.3
 
$2,513.5
Operating income438.4
 28.6
 8.7
 475.7
 22.1
 497.8
Amounts attributable to Alliant Energy common shareowners:           
Income from continuing operations, net of tax      332.6
 12.9
 345.5
Loss from discontinued operations, net of tax      —
 (1.4) (1.4)
Net income      332.6
 11.5
 344.1

IPL - Certain financial information relating to IPL’s business segments is as follows. Intersegment revenues were not material to IPL’s operations.
Electric Gas Other TotalElectric Gas Other Total
(in millions)(in millions)
Three Months Ended September 30, 2016       
Operating revenues
$483.2
 
$23.9
 
$9.1
 
$516.2
Operating income (loss)125.9
 (1.4) 1.4
 125.9
Earnings available for common stock      114.1
Three Months Ended September 30, 2015              
Operating revenues
$468.6
 
$23.1
 
$12.9
 
$504.6

$468.6
 
$23.1
 
$12.9
 
$504.6
Operating income (loss)119.4
 (2.9) 0.5
 117.0
119.4
 (2.9) 0.5
 117.0
Earnings available for common stock      117.4
      116.5
Three Months Ended September 30, 2014       
Nine Months Ended September 30, 2016       
Operating revenues
$435.9
 
$28.7
 
$11.6
 
$476.2

$1,209.2
 
$142.6
 
$34.1
 
$1,385.9
Operating income (loss)94.7
 (2.8) 2.0
 93.9
Operating income213.8
 15.3
 6.8
 235.9
Earnings available for common stock      102.5
      191.6
Nine Months Ended September 30, 2015              
Operating revenues
$1,170.6
 
$164.1
 
$41.1
 
$1,375.8

$1,170.6
 
$164.1
 
$41.1
 
$1,375.8
Operating income193.6
 15.3
 7.4
 216.3
193.6
 15.3
 7.4
 216.3
Earnings available for common stock      181.9
      180.5
Nine Months Ended September 30, 2014       
Operating revenues
$1,164.7
 
$208.1
 
$44.2
 
$1,417.0
Operating income150.2
 22.1
 13.1
 185.4
Earnings available for common stock      164.3


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WPL - Certain financial information relating to WPL’s business segments is as follows. Intersegment revenues were not material to WPL’s operations.
Electric Gas Other TotalElectric Gas Other Total
(in millions)(in millions)
Three Months Ended September 30, 2016       
Operating revenues
$381.1
 
$15.6
 
$0.3
 
$397.0
Operating income (loss)118.3
 (2.3) (1.0) 115.0
Earnings available for common stock      69.0
Three Months Ended September 30, 2015              
Operating revenues
$367.2
 
$14.9
 
$0.5
 
$382.6

$367.2
 
$14.9
 
$0.5
 
$382.6
Operating income (loss)113.4
 (2.8) (0.3) 110.3
113.4
 (2.8) (0.3) 110.3
Earnings available for common stock      67.5
      68.0
Three Months Ended September 30, 2014       
Nine Months Ended September 30, 2016       
Operating revenues
$335.3
 
$18.5
 
$0.6
 
$354.4

$999.9
 
$106.1
 
$0.9
 
$1,106.9
Operating income (loss)96.1
 (1.6) (0.6) 93.9
259.5
 11.7
 (2.4) 268.8
Earnings available for common stock      61.6
      158.7
Nine Months Ended September 30, 2015              
Operating revenues
$976.9
 
$124.0
 
$3.5
 
$1,104.4

$976.9
 
$124.0
 
$3.5
 
$1,104.4
Operating income244.8
 13.3
 1.3
 259.4
244.8
 13.3
 1.3
 259.4
Earnings available for common stock      151.1
      152.1
Nine Months Ended September 30, 2014       
Operating revenues
$926.2
 
$156.7
 
$6.4
 
$1,089.3
Operating income (loss)224.0
 19.2
 (1.6) 241.6
Earnings available for common stock      151.0


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NOTE 15. RELATED PARTIES
Service Agreements - IPL and WPL are parties to service agreements with an affiliate, Corporate Services. Pursuant to these service agreements, IPL and WPL receive various administrative and general services. These services are billed to IPL and WPL at cost based on expenses incurred by Corporate Services for the benefit of IPL and WPL, respectively. These costs consisted primarily of employee compensation and benefits, fees associated with various professional services, depreciation and amortization of property, plant and equipment, and a return on net assets. Corporate Services also acts as agent on behalf of IPL and WPL pursuant to the service agreements. As agent, Corporate Services enters into energy, capacity, ancillary services, and transmission sale and purchase transactions within MISO and PJM.MISO. Corporate Services assigns such sales and purchases among IPL and WPL based on statements received from MISO and PJM.MISO. The amounts billed for services provided, sales credited and purchases for the three and nine months ended September 30 were as follows (in millions):
IPL WPLIPL WPL
Three Months Nine Months Three Months Nine MonthsThree Months Nine Months Three Months Nine Months
2015 2014 2015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015 2016 2015
Corporate Services billings
$38
 
$37
 
$114
 
$111
 
$30
 
$30
 
$90
 
$89

$41
 
$38
 
$124
 
$114
 
$33
 
$30
 
$103
 
$90
Sales credited2
 2
 8
 6
 9
 2
 21
 4
4
 2
 7
 8
 3
 9
 6
 21
Purchases billed110
 106
 278
 313
 16
 34
 49
 92
126
 110
 324
 278
 23
 16
 65
 49

Net intercompany payables to Corporate Services were as follows (in millions):
 IPL WPL
 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014
Net payables to Corporate Services$101 $84 $55 $58
 IPL WPL
 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015
Net payables to Corporate Services$114 $93 $68 $54

ATC - Pursuant to various agreements, WPL receives a range of transmission services from ATC. WPL provides operation, maintenance, and construction services to ATC. WPL and ATC also bill each other for use of shared facilities owned by each party. The related amounts billed between the parties for the three and nine months ended September 30 were as follows (in millions):
Three Months Nine MonthsThree Months Nine Months
2015 2014 2015 20142016 2015 2016 2015
ATC billings to WPL
$25
 
$24
 
$75
 
$72

$28
 
$25
 
$82
 
$75
WPL billings to ATC4
 3
 9
 7
4
 4
 10
 9

WPL owed ATC net amounts of $7$9 million as of September 30, 20152016 and $8 million as of December 31, 20142015.


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Franklin County Wind Farm - Refer to Note 3 for discussion of IPL’s anticipated filing with FERC in the fourth quarter of 2016 requesting approval to transfer the Franklin County wind farm assets from AEF to IPL in 2017.

NOTE 16. DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
In 2013, Alliant Energy sold RMT to narrow its strategic focus and risk profile. The operating results of RMT have been separately classified and reported as discontinued operations in Alliant Energy’s income statements. A summary of the components of discontinued operations in Alliant Energy’s income statements for the three and nine months ended September 30 was as follows (in millions):
Three Months Nine MonthsThree Months Nine Months
2015 2014 2015 20142016 2015 2016 2015
Operating expenses
$0.3
 
$2.8
 
$2.3
 
$3.4

$0.6
 
$0.3
 
$3.3
 
$2.3
Loss before income taxes(0.3) (2.8) (2.3) (3.4)(0.6) (0.3) (3.3) (2.3)
Income tax benefit(0.2) (0.9) (0.9) (1.2)(0.2) (0.2) (1.3) (0.9)
Loss from discontinued operations, net of tax
($0.1) 
($1.9) 
($1.4) 
($2.2)
($0.4) 
($0.1) 
($2.0) 
($1.4)

Refer to Note 13(d) for further discussion of warranty claims associated with RMT that have resulted in operating expenses subsequent to the sale.

In April 2015, IPL completed the sale of its Minnesota natural gas distribution assets, which qualified as held for sale as of December 31, 2014. In July 2015, IPL completed the sale of its Minnesota electric distribution assets. Alliant Energy and IPL evaluated the sales of IPL’s Minnesota electric and natural gas distribution assets and believe such sales did not represent a strategic shift that has, or will have, a major effect on their operational and financial results. As a result, the operating results of IPL’s Minnesota electric and natural gas distribution assets have not been separately classified and reported as discontinued operations in Alliant Energy’s and IPL’s income statements.

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As of December 31, 2014, Alliant Energy’s and IPL’s balance sheets included assets held for sale related to IPL’s Minnesota natural gas distribution assets recorded in “Other current assets” and liabilities held for sale recorded in “Other current liabilities” as follows (in millions):
Assets held for sale:
Current assets
$1.1
Property, plant and equipment, net11.0
Non-current regulatory assets7.0
Total assets held for sale19.1
Liabilities held for sale:
Current liabilities1.0
Other liabilities7.1
Total liabilities held for sale8.1
Net assets held for sale
$11.0

Refer to Note 3 for further discussion of IPL’s sales of its Minnesota electric and natural gas distribution assets.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This MDA includes information relating to Alliant Energy, IPL and WPL, as well as ResourcesAEF and Corporate Services. Where appropriate, information relating to a specific entity has been segregated and labeled as such. The following discussion and analysis should be read in conjunction with the Financial Statements and the Notes included in this report as well as the financial statements, notes and MDA included in the 20142015 Form 10-K. Unless otherwise noted, all “per share” references in MDA refer to earnings per diluted share.

CONTENTS OF MDA

MDA consists of the following information:

•
Executive Summary
•
Strategic Overview
•
Rate Matters
•
Environmental Matters
•
Legislative Matters
•
Results of Operations
•
Liquidity and Capital Resources
•
Other Matters
•
Market Risk Sensitive Instruments and Positions
•
New Accounting Pronouncements
•
Critical Accounting Policies and Estimates
•
Other Future Considerations

EXECUTIVE SUMMARY

Description of Business
General - Alliant Energy is an investor-owned public utility holding company whose primary subsidiaries are IPL, WPL, ResourcesAEF and Corporate Services. IPL is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas to retail customers in select markets in Iowa. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa. WPL is a public utility engaged principally in the generation and distribution of electricity and the distribution and transportation of natural gas to retail customers in select markets in southern and centralWisconsin. WPL also sells electricity to wholesale customers in Wisconsin. At September 30, 2015,2016, WPL and Resources, through their ownership interests in WPL Transco, LLC, in aggregate held an approximate 16% ownership interest in ATC, a transmission-only utility operating primarily in the Midwest. ResourcesEffective October 1, 2016, AEF is the parent company for Alliant Energy’s non-regulated businesses. Corporate Services provides administrative services to Alliant Energy and its subsidiaries. An illustration of Alliant Energy’s primary businesses is shown below.

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  Alliant Energy  
      
     
Utilities, ATC and Corporate Services Non-regulated and Parent
 - ElectricRetail electric and gas services in IA (IPL)  - Transportation (Resources)(AEF)
 - ElectricRetail electric and gas services in WI (WPL)  - Non-regulated Generation (Resources)(AEF)
 - 16% interest in ATC (primarily WPL)  - Parent Company
 - Wholesale electric service in MN, IL & IA (IPL)
 - Wholesale electric service in WI (WPL)  
 - Corporate Services 


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Financial Results - Alliant Energy’s net income and EPS attributable to Alliant Energy common shareowners for the third quarter were as follows (dollars in millions, except per share amounts):
2015 20142016 2015
Income (Loss) EPS Income (Loss) EPSIncome (Loss) EPS (a) Income (Loss) EPS (a)
Continuing operations:              
Utilities, ATC and Corporate Services
$188.1
 
$1.66
 
$166.7
 
$1.50

$186.7
 
$0.82
 
$187.7
 
$0.83
Non-regulated and Parent(8.1) (0.07) (11.5) (0.10)(57.9) (0.25) (7.7) (0.04)
Income from continuing operations180.0
 1.59
 155.2
 1.40
128.8
 0.57
 180.0
 0.79
Loss from discontinued operations(0.1) —
 (1.9) (0.02)(0.4) —
 (0.1) —
Net income
$179.9
 
$1.59
 
$153.3
 
$1.38

$128.4
 
$0.57
 
$179.9
 
$0.79

(a)
Amounts reflect the effects of a two-for-one common stock split distributed in May 2016. Refer to Note 6 for additional details.

The table above includes EPS from continuing operations for utilities, ATC and Corporate Services, and non-regulated and parent, which are non-GAAP financial measures. Alliant Energy believes EPS from continuing operations for utilities, ATC and Corporate Services, and non-regulated and parent are useful to investors because they facilitate an understanding of segment performance and trends and provide additional information about Alliant Energy’s operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.

Utilities, ATCLower net income and Corporate Services - Higher EPS from continuing operations in the third quarter of 20152016 compared to the third quarter of 20142015 was primarily due to:
$0.11 per share of lower retail electric customer billing credits at IPLto asset valuation charges related to the Franklin County wind farm in the third quarter of 2015 compared to the third quarter2016, timing of 2014 related to an approved settlement agreement in 2014income tax expense, higher reserves for its IowaATC return on equity at WPL, and higher stock-based performance compensation expense. These items were partially offset by estimated temperature impacts on retail electric base rates;
an estimated $0.06 per share of higher estimated temperature-normalized retail electricand gas sales in the third quarter of 2015 compared to the third quarter of 2014;
$0.06 per share of lower energy efficiency cost recovery amortizations at WPL in the third quarter of 2015 compared to the third quarter of 2014;
an estimated $0.05 per share of increases in revenues from2016, higher electric sales in the third quarter of 2015 compared to the third quarter of 2014 due to colder temperatures in the third quarter of 2014;AFUDC, and
$0.04 per share of lower other operation and maintenance expenses.

These items were partially offset by:
$0.04 per share of higher electric transmission service expense at WPL in the third quarter of 2015 compared to the third quarter of 2014;
$0.04 per share related to the dilution impact of shares issued under the at-the-market offering program and Shareowner Direct Plan in 2015; and
$0.04 per share related to voluntary employee separation charges in the third quarter of 2015.

Non-regulated and Parent - Higher EPS in the third quarter of 2015 compared to the third quarter of 2014 was primarily due to $0.02 per share related to the timing of income tax expense at the Parent in the third quarter of 2015 compared to the third quarter of 2014, which is not expected to have a material impact on the full year results.

Refer to “Results of Operations” for additional details regarding the various factors impacting earnings during the third quarters of 20152016 and 20142015.


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Strategic Overview Highlights
The2016 Overview - Alliant Energy, IPL and WPL continue to focus on achieving financial objectives and executing their strategic plan, focuses on the core business of delivering regulated electric and natural gas service in Iowa and Wisconsin, and is built upon three key elements:including providing competitive value and exceptional service for their customers and responsiblefinding innovative ways to operate the business more efficiently and provide flexible energy resources. Key strategic plan developments since the filing of the 20142015 Form 10-K include the following.following:
•
IPL’s Expansion of Wind Generation - In October 2016, IPL and the Iowa Office of Consumer Advocate, among other customer groups, filed a settlement agreement with the IUB regarding the appropriate rate-making principles for up to 500 MW of additional wind generation at IPL. In October 2016, the IUB issued an order approving the settlement agreement, with limited modifications, and establishing rate-making principles, which IPL accepted, with key terms as follows. Refer to “Strategic Overview” for further discussion.
▪Up to 500 MW of additional wind generation that qualifies for the full level of production tax credits, regardless of the location in Iowa, with a cost cap of $1,830/kilowatt, including AFUDC and transmission costs. Any costs incurred in excess of this $1,830/kilowatt cost cap are expected to be incorporated into rates if determined to be reasonable and prudent.
▪A depreciable life of the wind generation of 40 years, unless changed as a result of a contested case before the IUB.
▪An 11.0% return on common equity, with the exception of certain transmission facilities classified as intangible assets, which would earn the rate of return on common equity the IUB finds reasonable during a future rate case.
Franklin County Wind Farm - In addition to “Strategic Overview” for a more detailed discussionIPL’s expansion of strategic plan developments.wind generation discussed above, IPL currently anticipates requesting approval from FERC in the fourth quarter of 2016 to transfer the 99 MW Franklin County wind farm from AEF to IPL in 2017.
March 2015 - The IUB approved IPL’s most recent Emissions Plan and Budget, which includes a scrubber that IPL placed in service at Lansing Unit 4 in June 2015 to reduce SO2 emissions at the EGU.
April 2015IPL’s and WPL’s Potential Expansion of Wind Generation - In addition to IPL’s 500 MW expansion of wind generation and planned transfer of the 99 MW Franklin County wind farm to IPL in 2017 discussed above, IPL and WPL filed a Certificateare exploring options to own and operate up to 400 MW of Public Convenience and Necessity application withadditional new wind generation in aggregate.
WPL’s Construction of the Riverside Expansion - In May 2016, WPL received an order from the PSCW for approvalauthorizing WPL to construct an approximate 650MWa natural gas-fired combined-cycle EGU in Beloit, Wisconsin, referred to as the Riverside expansion. In November 2015,After receiving the final necessary regulatory approvals and permits in the third quarter of 2016, WPL filed testimony with the PSCW that included an updated cost estimate forbegan constructing the Riverside expansion. Capital expenditures, excluding AFUDC, areWPL currently estimatedexpects to beplace the Riverside expansion in service by early 2020. In November 2016, various electric cooperatives notified WPL of their intent to exercise their options to acquire approximately $680 million to $720 million to construct60 MW of the Riverside expansion while the EGU and a pipeline to supply natural gas to the EGU. A decision from the PSCW on WPL’s application is currently expected by May 2016.
April 2015 - IPL completed the sale of its Minnesota natural gas distribution assets and received proceeds of $11 million and a promissory note of $2 million. The proceeds were used for general corporate purposes.
July 2015 - IPL completed the sale of its Minnesota electric distribution assets and received proceeds of $127 million, which were used to reduce cash proceeds received from IPL’s sales of accounts receivable program.
July 2015 - Alliant Energy announced plans to fuel switch Prairie Creek Unit 4 by December 31, 2017 and the Burlington Generating Station by December 31, 2021, and fuel switch or retire Prairie Creek Units 1 and 3 by December 31, 2025. Alliant Energy also plans to install an SCR system at Ottumwa Unit 1 by December 31, 2019 to reduce NOx emissions at the EGU. IPL’s portion of the capital expenditures, excluding AFUDC, for the SCR system is currently estimated to be between $75 million and $100 million.

Rate Matters Highlights
Federal regulation of wholesale electric rates is administered by FERC and state regulation of retail utility rates is administered by the IUB and PSCW. Key regulatory developments since the filing of the 2014 Form 10-K include the following. Refer to “Rate Matters” for a more detailed discussion of regulatory developments.
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-rated costs in 2016. Any rate changes granted from this request are expected to be effective on January 1, 2016.
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 2014 Test Year deferred fuel-related costs.

Environmental Matters Highlights
Environmental matters are regulated by various federal, state and local authorities. Key environmental developments since the filing of the 2014 Form 10-K include the following. Refer to “Environmental Matters” for a more detailed discussion of environmental developments.
April 2015 - The EPA published the final CCR Rule, which regulates CCR as a non-hazardous waste and is effective October 2015. IPL and WPL have nine and three coal-fired EGUs, respectively, with coal ash ponds that are impacted by this rule. In addition, IPL and WPL have four and two active CCR landfills, respectively, that are impacted by this rule. During the nine months ended September 30, 2015, Alliant Energy, IPL and WPL recognized additional AROs of $74 million, $57 million and $17 million, respectively, asbeing constructed. As a result of the final CCR Rule. Expenditures incurred by IPL and WPL to comply with the CCR Rule are anticipated to be recovered in rates from their customers.various electric
July 2015 - IPL entered into a Consent Decree with the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa to resolve potential claims regarding CAA issues associated with emissions from IPL’s coal-fired generating facilities in Iowa, while admitting no liability. In September 2015, the Consent Decree was approved by the U.S. District Court for the Northern District of Iowa thereby resolving all potential claims against IPL.
October 2015 - The EPA published a final revised Ozone NAAQS Rule, which is more stringent than the previous version of the rule and may require NOx emission reductions in certain non-attainment areas designated by the EPA. The EPA’s final designations of non-attainment areas for this revised rule are currently expected to be issued by October 2017. Compliance deadlines range from 2020 through 2037 depending on the level of NOx emissions in non-attainment areas.
October 2015 - The EPA published final standards under Section 111(d) of the CAA, which establish guidelines for states to follow in developing plans to reduce carbon dioxide emissions from existing fossil-fueled EGUs. The final standards include an interim compliance period from 2022 through 2029 and a final compliance requirement beginning in 2030. The EPA also published a proposed federal plan that would be implemented in states that do not complete a fully approved state plan.

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October 2015 - The EPA published final standards under Section 111(b)cooperatives funding a portion of the CAA, which establish carbon dioxide emissions limits for certain new fossil-fueled EGUs. Marshalltown andcapital expenditures during construction, WPL’s proposed Riverside expansion areestimated portion of capital expenditures is now expected to be impacted by these standards.approximately $640 million.
November 2015 - The EPA published final effluent limitation guidelines, which require changes to discharge limits for wastewater from steam generating facilities. Compliance with the final guidelines will be required after November 1, 2018 but before December 31, 2023, depending on each facility’s wastewater permit renewal cycle for existing steam generating facilities and immediately upon operation for new steam generating facilities constructed after the effective date of the final guidelines.

Liquidity and Capital Resources Highlights
Based on current liquidity positions and capital structures, the additional capital required to implement the strategic plan and to meet long-term contractual obligations is expected to be available. Key financing developments since the filing of the 2014 Form 10-K include the following. Refer to “Liquidity and Capital Resources” for a more detailed discussion of financing developments.
March 2015 - Alliant Energy filed a prospectus supplement under which it may sell up to $150 million of its common stock through an at-the-market offering program. As of September 30, 2015, Alliant Energy issued 2,186,617 shares of common stock through this program and received net cash proceeds of $133 million. Alliant Energy currently has no plans to issue any additional common stock through the at-the-market offering program.
June 2015 - IPL retired its $150 million, 3.3% senior debentures.
August 2015 - IPL issued $250 million of 3.4% senior debentures due 2025. The proceeds from the issuance were used by IPL to reduce commercial paper classified as long-term debt by $111 million, reduce cash proceeds received from its sales of accounts receivable program and for general corporate purposes.
August 2015 - Moody’s Investors Service changed each of Alliant Energy’s, IPL’s and WPL’s outlooks from stable to negative.
September 2015 - At September 30, 2015, Alliant Energy and its subsidiaries had $891 million of available capacity under the revolving credit facilities, $179 million of available capacity at IPL under its sales of accounts receivable program and $139 million of cash and cash equivalents.
November 2015 - Alliant Energy, IPL and WPL announced their future financing plans. Alliant Energy currently expects to issue approximately $25 million of common stock in 2016 through its Shareowner Direct Plan. IPL currently expects to issue up to $300 million of long-term debt in 2016. Alliant Energy and Franklin County Holdings LLC currently anticipate refinancing $250 million and $60 million, respectively, of variable-rate term loan credit agreements in 2016.
November 2015 - Alliant Energy announced an increase in its targeted 2016 annual common stock dividend to $2.35 per share, which is equivalent to a quarterly rate of $0.5875 per share, beginning with the February 2016 dividend payment.

Other Matters Highlights
Other key developments since the filing of the 2014 Form 10-K that could impact future financial condition or results of operations include the following. Refer to “Other Matters” for a more detailed discussion of potential impacts to future financial condition and results of operations.
March 2015 - FERC issued an order allowing ITC to implement a 50 basis point incentive adder to its return on equity for being an independent transmission company. The implementation of the adder will be retroactively applied back to April 2015 after resolution of a MISO transmission owner return on equity complaint filed in 2013 by a group of MISO industrial customer organizations. Alliant Energy and IPL are currently unable to determine any resulting changes to future electric transmission service charges pending a decision by FERC on the 2013 complaint.

STRATEGIC OVERVIEW

A strategic overview summary is included in the 2014 Form 10-K and has not changed materially from the items reported in the 2014 Form 10-K, except as described below.


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Generation Plans -
Natural Gas-Fired Generation -
WPL’s Proposed Construction of the Riverside Expansion - In April 2015, WPL filed a Certificate of Public Convenience and Necessity application with the PSCW for approval to construct an approximate 650MW natural gas-fired combined-cycle EGU in Beloit, Wisconsin, referred to as the Riverside expansion. In November 2015, WPL filed testimony with the PSCW that included an updated cost estimate for the Riverside expansion. Capital expenditures, excluding AFUDC, are currently estimated to be approximately $680 million to $720 million to construct the EGU and a pipeline to supply natural gas to the EGU. Intervenors in the docket have challenged the Riverside expansion by raising questions about the project need and have offered alternatives. A decision from the PSCW on WPL’s application is currently expected by May 2016. The Riverside expansion is also subject to the receipt of various approvals and permits necessary to construct and operate the EGU and connect such EGU to the transmission system.

Coal-Fired Generation -
Plant Retirements or Fuel Switching - IPL currently plans to fuel switch from coal to natural gas at, or retire, the following EGUs:
EGU (In-Service Year)Nameplate CapacityExpected Action
Prairie Creek Unit 4 (1967)149 MWFuel switch by December 31, 2017
Burlington Generating Station (1968)212 MWFuel switch by December 31, 2021
Prairie Creek Units 1 and 3 (1997 and 1958, respectively)64 MWFuel switch or retire by December 31, 2025

In addition, IPL’s M.L. Kapp Unit 2 fuel type was switched from coal to natural gas in June 2015.

The above plans are consistent with IPL’s requirements specified in the Consent Decree, which is discussed in Note 13(e).

Electric and Gas Distribution Systems - An important aspect of the strategic plan focuses resources on providing safe and reliable electric and natural gas service to IPL’s and WPL’s customers. Investments are expected to be targeted in replacing, modernizing and upgrading aging infrastructure in the electric and gas distribution systems. These investments will make the electric distribution system more resilient, robust and flexible to be able to meet customers’ changing and growing needs. Investments are also expected in the gas distribution system to ensure the system is appropriately maintained and operated safely. In addition, investments are expected to be made to extend various gas transmission and distribution systems in IPL’s and WPL’s service territories to serve new customer demand. Estimated capital expenditures for these expected and current projects for 2015 through 2019 are included in the “Electric and gas distribution systems” lines in the construction and acquisition expenditures table in “Liquidity and Capital Resources.”

IPL’s Proposed Clinton Natural Gas Pipeline - In September 2015, IPL filed a petition with the IUB for a pipeline permit to construct, maintain, and operate a natural gas pipeline in Scott and Clinton Counties in Iowa, referred to as the Clinton pipeline. IPL currently expects to receive the IUB’s decision on its petition in the second quarter of 2016. Subject to such approval, construction is expected to be completed by December 31, 2016. Capital expenditures to construct the pipeline, excluding AFUDC, are currently estimated to be approximately $60 million to $70 million.

Utility Business Divestitures -
IPL’s Minnesota Electric and Natural Gas Distribution Assets - Refer to Note 3 for discussion of the sales of IPL’s Minnesota electric and natural gas distribution assets, which were completed in July 2015 and April 2015, respectively.

Environmental Compliance Plans - Environmental compliance plans have been developed to help ensure cost effective compliance with current and proposed environmental laws and regulations. The following table provides current estimates of the total (past and future) project costs for certain emission controls projects included in the current environmental compliance plans (in millions):
  Actual/Expected   Total
Generating Unit In-service Date Technology Project Cost
IPL:      
Lansing Unit 4 2015 Scrubber $55
Ottumwa Unit 1 2018/2019 SCR 75-100
WPL:      
Edgewater Unit 5 2016 Scrubber & Baghouse 260-280
Columbia Unit 2 2018 SCR 40-60

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These capital expenditure estimates represent IPL’s or WPL’s respective portion of the total escalated capital expenditures and exclude AFUDC, if applicable. Capital expenditure estimates are subject to change based on future changes to plant-specific costs of emission controls technologies and environmental requirements.

IPL’s Emission Controls Projects - In March 2015, the IUB approved IPL’s most recent Emissions Plan and Budget, which includes a scrubber that IPL placed in service at Lansing Unit 4 in June 2015 to reduce SO2 emissions at the EGU. IPL’s previous Emissions Plan and Budget also included the scrubber at Lansing Unit 4.

Ottumwa Unit 1 - IPL currently plans to install an SCR system at Ottumwa Unit 1 to reduce NOx emissions at the EGU. The SCR is expected to support compliance obligations for current and anticipated air quality requirements, including the Cross-State Air Pollution Rule, and requirements under IPL’s Consent Decree.

RATE MATTERS

A rate matters summary is included in the 2014 Form 10-K and has not changed materially from the items reported in the 2014 Form 10-K, except as described below.

WPL’s Retail Fuel-related Rate Filings - Refer to Note 2 for discussion of WPL’s retail fuel-related rate filings for the Test Years 2014 though 2016.

Planned Utility Rate Cases -
WPL’s Wisconsin Retail Electric and Gas Rate Case (2017/2018 Test Period) - In May 2016, WPL currently expects to makefiled a retail electric and gasbase rate filing by June 30, 2016case with the PSCW based on a forward-looking test period that may include calendar yearsincludes 2017 and 2018. WPL’s filing was based on a stipulated agreement reached between PSCW staff, intervener groups and WPL. The key driversfiling requested approval for WPL to implement a $13 million, or approximately 1%, increase in annual rates for WPL’s retail electric customers. Based on updated fuel-related cost information at the anticipated filing include recoverytime of rate case hearings in September 2016, the current estimate of the SCR project at Columbia Unit 2, return on construction worknet increase in progress capital expendituresannual rates for the proposed Riverside expansion and other capital projects.WPL’s retail electric customers is $17 million. The filing also requested approval for WPL to implement a $9 million, or approximately 13%, increase in annual base rates for WPL’s retail gas customers. Any rate changes granted from this request are expected to be effective January 1, 2017 and extend through the end of 2018. WPL currently expects a decision from the PSCW regarding this base rate filing in Januarythe fourth quarter of 2016.
MISO Transmission Owner Return on Equity Complaints - A group of MISO cooperative and municipal utilities previously filed two complaints with FERC requesting a reduction to the base return on equity used by MISO transmission owners, including ITC and ATC. In September 2016, FERC issued an order on the first complaint and established a base return on equity of 10.32%, excluding any incentive adders granted by FERC, for the refund period from November 12, 2013 through February 11, 2015. In October 2016, in response to MISO’s and the MISO transmission owners’ request, FERC ordered the related refunds be issued by July 2017. In June 2016, a FERC administrative law judge issued an initial decision regarding the second complaint and recommended a base return on equity of 9.70%, excluding any incentive adders granted by FERC, for the refund period from February 12, 2015 through May 11, 2016. A final decision from FERC on the second complaint is currently expected in the first half of 2017.
WPL’s Future Transfer of Investment in ATC - In June 2016, WPL received an order from the PSCW requiring WPL to transfer its investment in ATC to Alliant Energy or an Alliant Energy subsidiary by December 31, 2022. In addition, WPL is required to obtain PSCW approval prior to transferring any additional capital or assets to ATC.Subsequent to WPL transferring its investment in ATC, future contributions to, and equity earnings and dividends from, the investment in ATC would occur at the entity to which the investment in ATC was transferred and would not be reflected in WPL’s consolidated financial statements. As a result, WPL’s earnings and cash flows from operations are expected to decrease subsequent to the transfer. This transfer is not expected to impact Alliant Energy’s consolidated financial statements.
Credit Ratings - In July 2016, Moody’s Investors Service changed Alliant Energy’s and IPL’s corporate/issuer and senior unsecured long-term debt credit ratings from A3 to Baa1. IPL’s preferred stock credit rating also changed from Baa2 to Baa3. In addition, WPL’s corporate/issuer and senior unsecured long-term debt credit ratings changed from A1 to A2. Alliant Energy’s, IPL’s and WPL’s outlooks also changed from negative to stable. Alliant Energy’s, IPL’s and WPL’s commercial paper ratings remained unchanged. These credit ratings changes are not expected to have a material impact on Alliant Energy’s, IPL’s, and WPL’s liquidity or collateral obligations.
Common Stock Split-In April 2016, Alliant Energy’s Board of Directors approved a two-for-one common stock split and a proportionate increase in the number of authorized shares of common stock of Alliant Energy from 240 million shares to 480 million shares to implement the stock split. Alliant Energy shareowners of record at the close of business on May 4, 2016 received one additional share of Alliant Energy common stock for each share held on that date. The proportionate interest that a shareowner owns in Alliant Energy did not change as a result of the stock split. The additional shares were distributed on May 19, 2016 and post-split trading began on May 20, 2016. All Alliant Energy share and per share amounts in this report have been reflected on a post-split basis.

IPL’s Iowa Retail Electric and Gas Rate Cases (2016 Test Year)Future Developments - IPL currently expects to make separate retail electric and gas rate filings in the second quarter of 2017 based on a 2016 historical test year. The following includes key drivers for the anticipated filings include recovery of capital projects, including Marshalltown for the electric filing and the proposed Clinton natural gas pipeline for the gas filing. Any rate changes areitems expected to be implemented in two phases with interim rates effective approximately 10 days after the filing and final rates effective approximately 10 months after the filing date.

Planned Retirement of WPL’s Nelson Dewey Units 1 and 2 and Edgewater Unit 3 - WPL previously announced plans to retire Nelson Dewey Units 1 and 2 and Edgewater Unit 3 by December 31, 2015. WPL is currently recovering the remaining net book value of these EGUs from both its retail and wholesale customers over a 10-year period beginning January 1, 2013 pursuant to orders previously issued by the PSCW and FERC. In October 2015, WPL filed a request with FERC to continue recovery of the wholesale portion of the remaining net book value of these EGUs over the same 10-year recovery period subsequent to the retirement of such EGUs. A decision is currently expected from FERC by December 31, 2015. Continued recovery of the retail portion of the remaining net book value of these EGUs is expected to be addressed in WPL’s next retail electric base rate case.

ENVIRONMENTAL MATTERS

An environmental matters summary is included in the 2014 Form 10-K and has not changed materially from the items reported in the 2014 Form 10-K, except as described below.

Air Quality -
Ozone NAAQS Rule - In October 2015, the EPA published a final revised Ozone NAAQS Rule, which is more stringent than the previous version of the rule and may require NOx emission reductions in certain non-attainment areas designated by the EPA. The EPA’s final designations of non-attainment areas for this revised rule are currently expected to be issued by October 2017. Compliance deadlines range from 2020 through 2037 depending on the level of NOx emissions in non-attainment areas. Depending on the level and location of non-attainment areas,impact Alliant Energy, IPL and WPL may be subjectin the future that have been identified since the filing of the 2015 Form 10-K:

2017 Forecast - In 2017, the following financing activities, and impacts to additional NOx emissions reduction requirementsresults of operations, are currently anticipated to meet the revised ozone NAAQS rule. However, occur:
Financing Plans - Alliant Energy currently expects to issue up to $150 million of common stock in 2017 through one or more offerings and its Shareowner Direct Plan. IPL and WPL currently expect to receive capital contributions of approximately $150 million and $90 million, respectively, from their parent company, Alliant Energy, in 2017. IPL and WPL currently expect to issue up to $250 million and $300 million, respectively, of long-term debt securities in 2017.
Common Stock Dividends - Alliant Energy announced an increase in its targeted 2017 annual common stock dividend to $1.26 per share, which is equivalent to a quarterly rate of $0.315 per share, beginning with the February 2017 dividend payment. The timing and amount of future dividends is subject to an approved dividend declaration from Alliant Energy’s Board of Directors, and is dependent upon earnings expectations, capital requirements, and general financial business conditions, among other factors. In addition, IPL and WPL currently expect to pay common stock dividends of $156 million and $126 million, respectively, to their parent company in 2017.

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Electric Transmission Service Expense - Alliant Energy currently expects a decrease in electric transmission service expense in 2017 compared to 2016 primarily due to expected lower return on equity resulting from the MISO transmission owner return on equity complaints. Alliant Energy’s estimated 2017 electric transmission service expense remains subject to change pending the IUB’s approval of IPL’s 2017 transmission rates and the PSCW’s final decision in WPL’s retail electric rate case for the 2017/2018 Test Period. Based on IPL’s and WPL’s electric transmission cost recovery mechanisms, IPL and WPL currently do not currently believe thereexpect that any changes to electric transmission service costs billed by ITC and ATC will behave a significantmaterial impact on their financial condition and results of operations.


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Greenhouse Gases Emissions -
Clean Air Act Section 111(d) - In October 2015, the EPA published final standards under Section 111(d) of the CAA, which establish guidelines for states to follow in developing plans to reduce carbon dioxide emissions from existing fossil-fueled EGUs. The final standards include an interim compliance period from 2022 through 2029 and a final compliance requirement beginning in 2030. The EPA also published a proposed federal plan that would be implemented in states that do not complete a fully approved state plan. Given Alliant Energy, IPL and WPL are currently reviewingcould have a material impact on their cash flows depending on the final standards and proposed federal plan,timing of refunds resulting from the MISO return on equity complaints, and the EPA’s rulemaking remains subjectsubsequent timing of the refunds being credited to legal challenges, Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these standards, but expect that expenditures to comply with these standards could be significant.their customers.

Clean Air Act Section 111(b) - In October 2015, the EPA published final standards under Section 111(b) of the CAA, which establish carbon dioxide emissions limits for certain new fossil-fueled EGUs. Marshalltown and WPL’s proposed Riverside expansion are expected to be impacted by these standards. Marshalltown is being constructed, and WPL’s proposed Riverside expansion is being designed, to achieve compliance with these standards.

IPL Consent Decree - Refer to Note 13(e) for discussion of a Consent Decree approved by the U.S. District Court for the Northern District of Iowa in September 2015 and IPL’s obligations thereunder. The Consent Decree resolves discussions regarding CAA issues associated with emissions from IPL’s coal-fired generating facilities in Iowa.

Water Quality -
Effluent Limitation Guidelines - In November 2015, the EPA published final effluent limitation guidelines, which require changes to discharge limits for wastewater from steam generating facilities. IPL and WPL have identified ten (Emery Units 1-3, Ottumwa Unit 1, Prairie Creek Units 3-4, Fox Lake Units 1 and 3, Lansing Unit 4, Dubuque Units 3-4, Burlington Unit 1, Sutherland Units 1 and 3, George Neal Units 3-4 and Louisa Unit 1) and four (Riverside Units 1-3, Columbia Units 1-2, Nelson Dewey Units 1-2 and Edgewater Units 3-5) existing steam generating facilities, respectively, that are expected to be impacted by these guidelines. In addition, Marshalltown and WPL’s proposed Riverside expansion are expected to be impacted by these guidelines. Compliance with the final guidelines will be required after November 1, 2018 but before December 31, 2023, depending on each facility’s wastewater permit renewal cycle for existing steam generating facilities and immediately upon operation for new steam generating facilities constructed after the effective date of the final guidelines. Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these guidelines on their financial condition and results of operations, but believe the expenditures to comply with these guidelines could be significant.

Land and Solid Waste -
Coal Combustion Residuals Rule - Refer to Note 10 for discussion of the final CCR Rule, including additional AROs that were recognized by Alliant Energy, IPL and WPL during the nine months ended September 30, 2015 related to such rule.

LEGISLATIVE MATTERS

A legislative matters summary is included in the 2014 Form 10-K and has not changed materially from the items reported in the 2014 Form 10-K.

RESULTS OF OPERATIONS

Overview - Third Quarter Results -
Alliant Energy - “Executive Summary” provides an overview of Alliant Energy’s third quarter 20152016 and 20142015 earnings and the various components of its business. Additional details of Alliant Energy’s earnings for the three months ended September 30, 2015 and 2014 are discussed below.

IPL - Earnings available for common stock increased $15decreased $2 million primarily due to lowertiming of income tax expense, partially offset by higher retail electric customer billing creditssales due to changes in temperatures in IPL’s service territory and higher AFUDC in the third quarter of 20152016 compared to the third quarter of 2014 and higher electric sales.2015 related to Marshalltown.

WPL - Earnings available for common stock increased $6$1 million primarily due to lower energy efficiency cost recovery amortizations during the third quarter of 20152016 and higher retail electric sales. These items weresales due to changes in temperatures in WPL’s service territory, partially offset by higher electric transmission service expense in thelower equity income from WPL’s ATC investment.

Additional details of Alliant Energy’s, IPL’s and WPL’s third quarter of 2015.2016 and 2015 earnings are discussed below.


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Utility Electric Margins - Electric margins are defined as electric operating revenues less electric production fuel, energy purchasespurchased power and purchased electric capacitytransmission service expenses. Management believes that electric margins provide a more meaningful basis for evaluating utility operations than electric operating revenues since electric production fuel, energy purchasespurchased power and purchased electric capacitytransmission service expenses are generally passed through to customers, and therefore, result in changes to electric operating revenues that are comparable to changes in electric production fuel, energy purchases and purchased electric capacitysuch expenses.

Third Quarter 20152016 vs. Third Quarter 20142015 Summary - Electric margins and MWh sales for the three months ended September 30 were as follows:
Alliant EnergyRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)Revenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential (a)
$303.2
 
$279.8
 8% 2,047
 1,945
 5%
$313.5
 
$303.2
 3% 2,091
 2,047
 2%
Commercial (a)200.3
 188.9
 6% 1,694
 1,643
 3%212.8
 200.3
 6% 1,771
 1,694
 5%
Industrial (a)243.9
 233.1
 5% 3,091
 3,098
 —%
Industrial - IPL co-generation customers15.4
 16.9
 (9%) 218
 242
 (10%)
Industrial - other (a)230.8
 227.0
 2% 2,855
 2,849
 —%
Retail subtotal (a)747.4
 701.8
 6% 6,832
 6,686
 2%772.5
 747.4
 3% 6,935
 6,832
 2%
Sales for resale:                      
Wholesale (a)66.6
 53.5
 24% 1,028
 921
 12%73.0
 66.6
 10% 1,120
 1,028
 9%
Bulk power and other9.5
 2.4
 296% 378
 80
 373%4.5
 9.5
 (53%) 151
 378
 (60%)
Other12.3
 13.5
 (9%) 28
 34
 (18%)14.3
 12.3
 16% 24
 28
 (14%)
Total revenues/sales835.8
 771.2
 8% 8,266
 7,721
 7%864.3
 835.8
 3% 8,230
 8,266
 —%
Electric production fuel expense155.7
 119.4
 30%      139.1
 155.7
 (11%)      
Energy purchases expense89.6
 111.3
 (19%)      
Purchased electric capacity expense0.5
 0.1
 400%      
Purchased power expense106.8
 90.1
 19%      
Electric transmission service expense138.6
 127.6
 9%      
Electric margins (b)
$590.0
 
$540.4
 9%      
$479.8
 
$462.4
 4%      

IPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
 2015 2014 Change 2015 2014 Change
Residential (a)
$173.7
 
$162.9
 7% 1,081
 1,055
 2%
Commercial (a)126.5
 119.7
 6% 1,053
 1,027
 3%
Industrial (a)138.2
 135.9
 2% 1,782
 1,846
 (3%)
Retail subtotal (a)438.4
 418.5
 5% 3,916
 3,928
 —%
Sales for resale:           
Wholesale (a)20.4
 8.3
 146% 275
 124
 122%
Bulk power and other1.1
 0.1
 1,000% 28
 23
 22%
Other8.7
 9.0
 (3%) 14
 21
 (33%)
Total revenues/sales468.6
 435.9
 8% 4,233
 4,096
 3%
Electric production fuel expense72.0
 67.7
 6%      
Energy purchases expense59.3
 64.4
 (8%)      
Purchased electric capacity expense0.1
 0.1
 —%      
Electric margins (b)
$337.2
 
$303.7
 11%      

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WPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
IPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential(a)
$129.5
 
$116.9
 11% 966
 890
 9%
$173.7
 
$173.7
 —% 1,062
 1,081
 (2%)
Commercial(a)73.8
 69.2
 7% 641
 616
 4%133.1
 126.5
 5% 1,092
 1,053
 4%
Industrial105.7
 97.2
 9% 1,309
 1,252
 5%
Retail subtotal309.0
 283.3
 9% 2,916
 2,758
 6%
Industrial - IPL co-generation customers15.4
 16.9
 (9%) 218
 242
 (10%)
Industrial - other (a)121.5
 121.3
 —% 1,526
 1,540
 (1%)
Retail subtotal (a)443.7
 438.4
 1% 3,898
 3,916
 —%
Sales for resale:                      
Wholesale46.2
 45.2
 2% 753
 797
 (6%)
Wholesale (a)28.1
 20.4
 38% 366
 275
 33%
Bulk power and other8.4
 2.3
 265% 350
 57
 514%1.4
 1.1
 27% 23
 28
 (18%)
Other3.6
 4.5
 (20%) 14
 13
 8%10.0
 8.7
 15% 11
 14
 (21%)
Total revenues/sales367.2
 335.3
 10% 4,033
 3,625
 11%483.2
 468.6
 3% 4,298
 4,233
 2%
Electric production fuel expense83.7
 51.7
 62%      54.7
 72.0
 (24%)      
Energy purchases expense30.3
 46.9
 (35%)      
Purchased electric capacity expense0.4
 —
 100%      
Electric margins
$252.8
 
$236.7
 7%      
Purchased power expense70.3
 59.4
 18%      
Electric transmission service expense95.9
 87.5
 10%      
Electric margins (b)
$262.3
 
$249.7
 5%      
WPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
 2016 2015 Change 2016 2015 Change
Residential
$139.8
 
$129.5
 8% 1,029
 966
 7%
Commercial79.7
 73.8
 8% 679
 641
 6%
Industrial109.3
 105.7
 3% 1,329
 1,309
 2%
Retail subtotal328.8
 309.0
 6% 3,037
 2,916
 4%
Sales for resale:           
Wholesale44.9
 46.2
 (3%) 754
 753
 —%
Bulk power and other3.1
 8.4
 (63%) 128
 350
 (63%)
Other4.3
 3.6
 19% 13
 14
 (7%)
Total revenues/sales381.1
 367.2
 4% 3,932
 4,033
 (3%)
Electric production fuel expense84.4
 83.7
 1%      
Purchased power expense36.5
 30.7
 19%      
Electric transmission service expense42.7
 40.1
 6%      
Electric margins
$217.5
 
$212.7
 2%      

(a)InOn July 31, 2015, IPL sold its electric distribution assets in Minnesota.Minnesota to Southern Minnesota Energy Cooperative. Prior to the asset sale, the electric sales to retail customers are included in residential, commercial and industrial sales. Subsequent to the asset sale, the related electric sales are included in wholesale electric sales pursuant to the wholesale power supply agreement between IPL and Southern Minnesota Energy Cooperative.
(b)
Includes $20$17 million and $22$20 million of credits on IPL’s Iowa retail electric customers’ bills for the third quarters of 20152016 and 2014,2015, respectively, resulting from the electric tax benefit rider. The electric tax benefit rider results in reductions in electric revenues that are offset by reductions in income tax expense for the years ended December 31, 20152016 and 2014.2015.


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Nine Months Ended September 30, 20152016 vs. Nine Months Ended September 30, 20142015 Summary - Electric margins and MWh sales for the nine months ended September 30 were as follows:
Alliant EnergyRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)Revenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential (a)
$775.7
 
$769.5
 1% 5,679
 5,830
 (3%)
$779.9
 
$775.7
 1% 5,518
 5,679
 (3%)
Commercial (a)512.9
 505.9
 1% 4,816
 4,820
 —%543.0
 512.9
 6% 4,904
 4,816
 2%
Industrial (a)634.3
 618.7
 3% 8,917
 8,880
 —%
Industrial - IPL co-generation customers48.2
 45.5
 6% 704
 700
 1%
Industrial - other (a)599.3
 588.8
 2% 8,013
 8,217
 (2%)
Retail subtotal (a)1,922.9
 1,894.1
 2% 19,412
 19,530
 (1%)1,970.4
 1,922.9
 2% 19,139
 19,412
 (1%)
Sales for resale:                      
Wholesale (a)165.5
 158.5
 4% 2,663
 2,709
 (2%)196.7
 165.5
 19% 3,025
 2,663
 14%
Bulk power and other24.2
 0.6
 3,933% 1,051
 276
 281%8.2
 24.2
 (66%) 347
 1,051
 (67%)
Other34.9
 37.7
 (7%) 102
 112
 (9%)33.8
 34.9
 (3%) 75
 102
 (26%)
Total revenues/sales2,147.5
 2,090.9
 3% 23,228
 22,627
 3%2,209.1
 2,147.5
 3% 22,586
 23,228
 (3%)
Electric production fuel expense376.3
 349.2
 8%      325.8
 376.3
 (13%)      
Energy purchases expense269.4
 309.5
 (13%)      
Purchased electric capacity expense1.2
 24.9
 (95%)      
Purchased power expense320.5
 270.6
 18%      
Electric transmission service expense396.8
 367.7
 8%      
Electric margins (b)
$1,500.6
 
$1,407.3
 7%      
$1,166.0
 
$1,132.9
 3%      

44
IPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
 2016 2015 Change 2016 2015 Change
Residential (a)
$422.2
 
$434.8
 (3%) 2,827
 3,055
 (7%)
Commercial (a)336.1
 318.9
 5% 3,076
 3,043
 1%
Industrial - IPL co-generation customers48.2
 45.5
 6% 704
 700
 1%
Industrial - other (a)304.3
 307.6
 (1%) 4,337
 4,591
 (6%)
Retail subtotal (a)1,110.8
 1,106.8
 —% 10,944
 11,389
 (4%)
Sales for resale:           
Wholesale (a)72.7
 35.6
 104% 1,012
 509
 99%
Bulk power and other2.8
 4.0
 (30%) 44
 163
 (73%)
Other22.9
 24.2
 (5%) 31
 54
 (43%)
Total revenues/sales1,209.2
 1,170.6
 3% 12,031
 12,115
 (1%)
Electric production fuel expense120.6
 162.6
 (26%)      
Purchased power expense204.2
 169.4
 21%      
Electric transmission service expense270.7
 249.3
 9%      
Electric margins (b)
$613.7
 
$589.3
 4%      
WPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
 2016 2015 Change 2016 2015 Change
Residential
$357.7
 
$340.9
 5% 2,691
 2,624
 3%
Commercial206.9
 194.0
 7% 1,828
 1,773
 3%
Industrial295.0
 281.2
 5% 3,676
 3,626
 1%
Retail subtotal859.6
 816.1
 5% 8,195
 8,023
 2%
Sales for resale:           
Wholesale124.0
 129.9
 (5%) 2,013
 2,154
 (7%)
Bulk power and other5.4
 20.2
 (73%) 303
 888
 (66%)
Other10.9
 10.7
 2% 44
 48
 (8%)
Total revenues/sales999.9
 976.9
 2% 10,555
 11,113
 (5%)
Electric production fuel expense205.2
 213.7
 (4%)      
Purchased power expense116.3
 101.2
 15%      
Electric transmission service expense126.1
 118.4
 7%      
Electric margins
$552.3
 
$543.6
 2%      


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IPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
 2015 2014 Change 2015 2014 Change
Residential (a)
$434.8
 
$436.2
 —% 3,055
 3,165
 (3%)
Commercial (a)318.9
 317.0
 1% 3,043
 3,039
 —%
Industrial (a)353.1
 360.0
 (2%) 5,291
 5,350
 (1%)
Retail subtotal (a)1,106.8
 1,113.2
 (1%) 11,389
 11,554
 (1%)
Sales for resale:           
Wholesale (a)35.6
 24.7
 44% 509
 365
 39%
Bulk power and other4.0
 1.1
 264% 163
 37
 341%
Other24.2
 25.7
 (6%) 54
 62
 (13%)
Total revenues/sales1,170.6
 1,164.7
 1% 12,115
 12,018
 1%
Electric production fuel expense162.6
 181.3
 (10%)      
Energy purchases expense169.2
 188.9
 (10%)      
Purchased electric capacity expense0.2
 24.9
 (99%)      
Electric margins (b)
$838.6
 
$769.6
 9%      
WPLRevenues and Costs (dollars in millions) MWhs Sold (MWhs in thousands)
 2015 2014 Change 2015 2014 Change
Residential
$340.9
 
$333.3
 2% 2,624
 2,665
 (2%)
Commercial194.0
 188.9
 3% 1,773
 1,781
 —%
Industrial281.2
 258.7
 9% 3,626
 3,530
 3%
Retail subtotal816.1
 780.9
 5% 8,023
 7,976
 1%
Sales for resale:           
Wholesale129.9
 133.8
 (3%) 2,154
 2,344
 (8%)
Bulk power and other20.2
 (0.5) 4,140% 888
 239
 272%
Other10.7
 12.0
 (11%) 48
 50
 (4%)
Total revenues/sales976.9
 926.2
 5% 11,113
 10,609
 5%
Electric production fuel expense213.7
 167.9
 27%      
Energy purchases expense100.2
 120.6
 (17%)      
Purchased electric capacity expense1.0
 —
 100%      
Electric margins
$662.0
 
$637.7
 4%      

(a)InOn July 31, 2015, IPL sold its electric distribution assets in Minnesota. Prior to the asset sale, the electric sales to retail customers are included in residential, commercial and industrial sales. Subsequent to the asset sale, the related electric sales are included in wholesale electric sales pursuant to the wholesale power supply agreement between IPL and Southern Minnesota Energy Cooperative.
(b)Includes $55$47 million and $64$55 million of credits on Iowa retail electric customers’ bills for the nine months ended September 30, 20152016 and 2014,2015, respectively, resulting from IPL’s electric tax benefit rider. The electric tax benefit rider results in reductions in electric revenues that are offset by reductions in income tax expense for the years ended December 31, 20152016 and 2014.2015.


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Variances - Variances between periods in electric margins for the three and nine months ended September 30, 20152016 compared to the same periods in 20142015 were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Retail electric customer billing credits at IPL (a)
$19
 
$19
 
$—
 
$27
 
$27
 
$—
Purchased electric capacity expense at IPL in 2014 (b)—
 —
 —
 25
 25
 —
Changes in electric fuel-related costs, net of recoveries at WPL2
 —
 2
 12
 —
 12
Higher revenues at IPL due to changes in credits on Iowa retail electric customers’ bills resulting from the electric tax benefit rider (Refer to Note 2 for further details)
2
 2
 —
 9
 9
 —
Higher revenues at WPL from the impact of increased sales volumes approved in its retail electric base rate case for 2015 (c)2
 —
 2
 6
 —
 6
Higher revenues at IPL related to changes in recovery amounts for transmission costs through the transmission rider (d)4
 4
 —
 5
 5
 —
Estimated changes in sales caused by temperatures10
 5
 5
 (7) (4) (3)
Other (e)11
 4
 7
 16
 7
 9
 
$50
 
$34
 
$16
 
$93
 
$69
 
$24

(a)
Refer to Note 2 for further discussion of billing credits that began in May 2014 related to the approved settlement agreement for IPL’s Iowa retail electric rates.
(b)IPL’s previous DAEC PPA that expired in February 2014 included minimum payments for IPL’s rights to electric generating capacity. IPL’s new DAEC PPA effective February 2014 does not contain minimum payments for electric generating capacity.
(c)The PSCW order received for WPL’s retail fuel-related rate filing (2015 Test Year) contained an increase in retail electric fuel-related revenues in 2015. A portion of the approved increase was attributable to the impact of increased sales volumes approved in WPL’s retail electric base rate case for 2015 resulting in higher electric margin in 2015.
(d)Higher transmission rider revenues were offset by higher electric transmission service expense.
(e)Includes increases in temperature-normalized retail sales volumes at IPL and WPL for the three- and nine-month periods. Refer to “Sales Trends” below for further details.

Forecast - Refer to Note 2 for discussion of WPL’s retail fuel-related rate cases for 2014 through 2016. IPL currently expects to reduce the amount of billing credits on its Iowa retail electric customers’ bills in 2016 compared to 2015 related to the approved settlement agreement for IPL’s Iowa retail electric rates.
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Retail electric customer billing credits at IPL (Refer to Note 2 for further details)

$4
 
$4
 
$—
 
$12
 
$12
 
$—
Estimated changes in sales caused by temperatures12
 9
 3
 10
 9
 1
Higher revenues at IPL due to changes in credits on Iowa retail electric customers’ bills resulting from the electric tax benefit rider (Refer to Note 2 for further details)
3
 3
 —
 8
 8
 —
Higher retail electric sales due to one additional day in 2016 for leap year—
 —
 —
 4
 2
 2
Other(2) (3) 2
 (1) (7) 6
 
$17
 
$13
 
$5
 
$33
 
$24
 
$9

Temperatures - HDD and CDD are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDD and CDD. HDD and CDD in Alliant Energy’s service territories for the three and nine months ended September 30 were as follows:
Three Months Nine MonthsThree Months Nine Months
Actual   Actual  Actual   Actual  
2015 2014 Normal 2015 2014 Normal2016 2015 Normal 2016 2015 Normal
HDD (a):           
HDD:           
Cedar Rapids, Iowa (IPL)83
 160
 140
 4,355
 5,063
 4,258
39
 83
 142
 3,759
 4,355
 4,276
Madison, Wisconsin (WPL)98
 183
 173
 4,653
 5,255
 4,512
49
 98
 175
 4,135
 4,653
 4,529
CDD (a):           
CDD:           
Cedar Rapids, Iowa (IPL)530
 407
 535
 730
 670
 756
651
 530
 534
 948
 730
 754
Madison, Wisconsin (WPL)503
 387
 474
 664
 620
 656
570
 503
 474
 771
 664
 655

(a)HDD and CDD are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDD and CDD.


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The following table summarizes the approximate quarterly temperature statistics and resulting impacts on IPL’s and WPL’s electric and gas sales.
2015 2014 Resulting Impact in 2015 Compared to 20142016 2015 Resulting Impact in 2016 Compared to 2015
First quarter (HDD)10% colder than normal 20%-25% colder than normal Decrease in IPL’s and WPL’s electric and gas sales due to lower demand by customers for heating10% warmer than normal 10% colder than normal Decrease in IPL’s and WPL’s electric and gas sales due to lower demand by customers for heating
Second quarter (CDD)10% colder than normal 20%-30% warmer than normal Decrease in IPL’s and WPL’s electric sales due to lower demand by customers for air cooling10% - 35% warmer than normal 10% colder than normal Increase in IPL’s and WPL’s electric sales due to higher demand by customers for air cooling
Third quarter (CDD)Normal 20% colder than normal Increase in IPL’s and WPL’s electric sales due to higher demand by customers for air cooling20% warmer than normal Normal Increase in IPL’s and WPL’s electric sales due to higher demand by customers for air cooling

Estimated increases (decreases) to electric margins from the impacts of temperatures for the three and nine months ended September 30 were as follows (in millions):
Three Months Nine MonthsThree Months Nine Months
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
IPL
($2) 
($7) 
$5
 
($2) 
$2
 
($4)
$7
 
($2) 
$9
 
$7
 
($2) 
$9
WPL1
 (4) 5
 2
 5
 (3)4
 1
 3
 3
 2
 1
Total Alliant Energy
($1) 
($11) 
$10
 
$—
 
$7
 
($7)
$11
 
($1) 
$12
 
$10
 
$—
 
$10


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Sales Trends - Alliant Energy’s retail sales volumes increased 2% and decreased 1% for the three and nine months ended September 30, 20152016 compared to the same periods in 2014,2015, respectively. The three-month increase was primarily due to the impact of temperatures on residential and commercial sales due to the colderwarmer than normal temperatures and resulting lowerhigher air cooling demand in the third quarter of 2014.2016. The nine-month decrease was primarily due to the impact of temperatures on residential and commercialdecreases in IPL’s industrial sales due to the extremely cold temperatureslarge customer maintenance outages in 2016 and resulting higher heating demanddecreased retail sales related to IPL’s sale of its Minnesota electric distribution assets in July 2015, partially offset by an extra day of retail sales during the first quarter of 2014, partially offset by the warmer temperatures in the third quarter of 2015 compared2016 due to the same periodleap year, and increases in 2014.WPL’s commercial and industrial sales due to customer expansions.

IPL’s industrialAlliant Energy’s wholesale sales volumes decreased 3%increased 9% and 1%14% for the three and nine months ended September 30, 20152016 compared to the same periods in 2014, respectively,2015, respectively. These increases were primarily due to lower usage by industrial customers that have their own generation. WPL’s industrialadditional sales volumes increased 5% and 3% for the three and nine months ended September 30, 2015 compared to the same periods in 2014, respectively, primarily due to industrial customer expansions.

Alliant Energy’s wholesale sales volumes increased 12% and decreased 2% for the three and nine months ended September 30, 2015 compared to the same periods in 2014, respectively. The three-month increase was primarily due to afrom IPL’s new wholesale power supply agreement between IPL andwith Southern Minnesota Energy Cooperative. The new wholesale power supply agreement becameCooperative effective in July 2015 following the sale of IPL’s Minnesota electric distribution assets. The nine-month decrease was primarily due toAugust 1, 2015. These increases were partially offset by decreased sales to WPL’s partial-requirement wholesale customers that have contractual options to be served by WPL, other power supply sources or the MISO market, and the impact of the extremely cold temperatures during the first quarter of 2014. These decreases were partially offset by additional sales from IPL’s new wholesale power supply agreement with Southern Minnesota Energy Cooperative.market.

Alliant Energy’s bulk power and other revenuesales volumes changes were largely due to changes in sales in the wholesale energy markets operated by MISO and PJM.MISO. These changes are impacted by several factors, including the availability and dispatch of Alliant Energy’s EGUs and electricity demand within these wholesale energy markets. Changes in bulk power and other sales revenues were largely offset by changes in fuel-related costs, and therefore, did not have a significant impact on electric margins.

Forecast - Alliant Energy, IPL and WPL are currently expecting a modest increase in temperature-normalized retail electric sales in 2016 compared to 2015.


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Electric Production Fuel and Energy PurchasesPurchased Power (Fuel-related) Cost RecoveriesExpenses - Fossil fuels, such as coalnatural gas and natural gas,coal, are burned to produce electricity at EGUs. The cost of fossil fuels used during each period is included in electric production fuel expense. Electricity is also purchased to meet customer demand and these costs are charged to energy purchasespurchased power expense.

Due to IPL’s cost recovery mechanisms for fuel-related costs,expenses, changes in fuel-related costsexpenses resulted in comparable changes in electric revenues and, therefore, did not have a significant impact on Alliant Energy’s and IPL’s electric margins. WPL’s cost recovery mechanism for wholesale fuel-related costsexpenses also provides for adjustments to its wholesale electric rates for changes in commodity costs, thereby mitigating impacts of changes to commodity costs on Alliant Energy’s and WPL’s electric margins.

WPL’s cost recovery mechanism for retail fuel-related costsexpenses supports deferrals of amounts that fall outside an approved bandwidth of plus or minus 2% of forecasted fuel-related costsexpenses determined by the PSCW each year. The difference between revenue collected and actual fuel-related costsexpenses incurred within the bandwidth increases or decreases Alliant Energy’s and WPL’s electric margins. WPL estimates the increaseincreases to electric margins from amounts within the bandwidth were approximately $2 million and $5 million for the three and nine months ended September 30, 2016, respectively. WPL estimates the increases to electric margins from amounts within the bandwidth were approximately $2 million and $6 million for the three and nine months ended September 30, 2015, respectively. WPL estimates the decrease to

Alliant Energy’s electric margins from amounts within the bandwidth were approximately $0production fuel expense decreased $17 million and $6$51 million for the three and nine months ended September 30, 2016 compared to the same periods in 2015, respectively. The decreases were primarily due to lower dispatch of IPL’s and WPL’s coal-fired EGUs during the three and nine months ended September 30, 2016 partially due to lower wholesale energy market prices and WPL’s retirement of Nelson Dewey Units 1 and 2 in December 2015. The decreases were also due to changes in the under-/over-collection of fuel-related expenses at IPL and lower natural gas prices. These items were partially offset by amortizations during the three and nine months ended September 30, 2016 of $8 million and $22 million, respectively, of under-recovered fuel-related expenses deferred by WPL in 2014, respectively. Refer to Note 2and $4 million and $9 million of deferrals recorded during the three and nine months ended September 30, 2016, respectively, for discussion of an order received fromover-recovered fuel-related costs in 2016 that were outside the PSCW inapproved bandwidth for WPL. The amortizations are based upon a July 2015 PSCW order authorizing WPL to recover $28 million, including interest, from its retail electric customers beginning induring 2016 for deferred fuel-related costsexpenses incurred in 2014.

Alliant Energy’s electric production fuelpurchased power expense increased $36$17 million and $27$50 million for the three and nine months ended September 30, 2016 compared to the same periods in 2015, respectively. The increases wererespectively, primarily due to deferrals recorded during the three and nine months ended September 30, 2014 for fuel-related costs that were outside the approved bandwidth at WPL, and higherincreased volumes purchased resulting from lower dispatch of IPL’s and WPL’s coal-fired EGUs during the third quarterthree- and nine-month periods.

Electric Transmission Service Expense - Costs incurred each period for the transmission of 2015. The nine-month increase was partially offset byelectricity to meet the demands of IPL’s and WPL’s customers are included in electric transmission service expense. Electric transmission service expense is recovered from IPL’s Iowa retail electric customers through a transmission cost rider and from WPL’s retail electric customers through changes in the under-/over-collection of fuel-related costs at IPL.base rates determined during periodic rate proceedings, subject to an over/under escrow

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treatment. IPL and WPL arrange transmission service for the majority of their respective wholesale electric customers. The wholesale portion of electric transmission service expense is allocated to and recovered from these wholesale customers based on a load ratio share computation. Due to IPL’s and WPL’s cost recovery mechanisms for electric transmission service expense, changes in electric transmission service expense resulted in comparable changes in electric revenues and, therefore, did not have a significant impact on Alliant Energy’s, energy purchasesIPL’s and WPL’s electric margins. Alliant Energy’s electric transmission service expense decreased $22increased $11 million and $40$29 million for the three and nine months ended September 30, 2016 compared to the same periods in 2015, respectively, primarily due to lower prices for electricity purchasedhigher electric transmission service rates billed by IPLITC, ATC and WPL from wholesale energy markets (primarily MISO) during the three- and nine-month periods and decreased volumes purchased. The decreased volumes purchased were due to higher dispatch of WPL’s coal-fired EGUs during the third quarter of 2015 and lower retail and wholesale electric sales during the nine-month period.MISO.

Utility Gas Margins - Gas margins are defined as gas operating revenues less cost of gas sold. Management believes that gas margins provide a more meaningful basis for evaluating utility operations than gas operating revenues since cost of gas sold is generally passed through to customers, and therefore, results in changes to gas operating revenues that are comparable to changes in cost of gas sold.

Third Quarter 20152016 vs. Third Quarter 20142015 Summary - Gas margins and Dth sales for the three months ended September 30 were as follows:
Alliant EnergyRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
 2015 2014 Change 2015 2014 Change
Residential
$17.6
 
$21.7
 (19%) 1,204
 1,452
 (17%)
Commercial11.0
 15.0
 (27%) 1,616
 1,746
 (7%)
Industrial2.4
 3.9
 (38%) 541
 620
 (13%)
Retail subtotal31.0
 40.6
 (24%) 3,361
 3,818
 (12%)
Transportation/other7.0
 6.6
 6% 18,772
 14,910
 26%
Total revenues/sales38.0
 47.2
 (19%) 22,133
 18,728
 18%
Cost of gas sold13.6
 21.8
 (38%)      
Gas margins (a)
$24.4
 
$25.4
 (4%)      

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IPLRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
Alliant EnergyRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential
$10.3
 
$12.8
 (20%) 638
 824
 (23%)
$17.8
 
$17.6
 1% 1,397
 1,204
 16%
Commercial6.8
 8.9
 (24%) 854
 952
 (10%)10.6
 11.0
 (4%) 1,972
 1,616
 22%
Industrial2.0
 3.3
 (39%) 442
 518
 (15%)2.5
 2.4
 4% 557
 541
 3%
Retail subtotal19.1
 25.0
 (24%) 1,934
 2,294
 (16%)30.9
 31.0
 —% 3,926
 3,361
 17%
Transportation/other4.0
 3.7
 8% 7,819
 7,062
 11%8.6
 7.0
 23% 20,302
 18,772
 8%
Total revenues/sales23.1
 28.7
 (20%) 9,753
 9,356
 4%39.5
 38.0
 4% 24,228
 22,133
 9%
Cost of gas sold9.4
 14.6
 (36%)      12.5
 13.6
 (8%)      
Gas margins (a)
$13.7
 
$14.1
 (3%)      
$27.0
 
$24.4
 11%      
WPLRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
IPLRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential
$7.3
 
$8.9
 (18%) 566
 628
 (10%)
$10.3
 
$10.3
 —% 799
 638
 25%
Commercial4.2
 6.1
 (31%) 762
 794
 (4%)6.6
 6.8
 (3%) 1,245
 854
 46%
Industrial0.4
 0.6
 (33%) 99
 102
 (3%)2.0
 2.0
 —% 442
 442
 —%
Retail subtotal11.9
 15.6
 (24%) 1,427
 1,524
 (6%)18.9
 19.1
 (1%) 2,486
 1,934
 29%
Transportation/other3.0
 2.9
 3% 10,953
 7,848
 40%5.0
 4.0
 25% 8,783
 7,819
 12%
Total revenues/sales14.9
 18.5
 (19%) 12,380
 9,372
 32%23.9
 23.1
 3% 11,269
 9,753
 16%
Cost of gas sold4.2
 7.2
 (42%)      8.0
 9.4
 (15%)      
Gas margins(a)
$10.7
 
$11.3
 (5%)      
$15.9
 
$13.7
 16%      
WPLRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
 2016 2015 Change 2016 2015 Change
Residential
$7.5
 
$7.3
 3% 598
 566
 6%
Commercial4.0
 4.2
 (5%) 727
 762
 (5%)
Industrial0.5
 0.4
 25% 115
 99
 16%
Retail subtotal12.0
 11.9
 1% 1,440
 1,427
 1%
Transportation/other3.6
 3.0
 20% 11,519
 10,953
 5%
Total revenues/sales15.6
 14.9
 5% 12,959
 12,380
 5%
Cost of gas sold4.5
 4.2
 7%      
Gas margins
$11.1
 
$10.7
 4%      

(a)
Includes $3 million of credits on IPL’s Iowa retail gas customers’ bills for both the third quarters of 20152016 and 20142015 resulting from the gas tax benefit rider. The gas tax benefit rider results in reductions in gas revenues that are offset by reductions in income tax expense for the years ended December 31, 20152016 and 2014.2015.


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Nine Months Ended September 30, 20152016 vs. Nine Months Ended September 30, 20142015 - Gas margins and Dth sales for the nine months ended September 30 were as follows:
Alliant EnergyRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)Revenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential
$162.1
 
$206.7
 (22%) 19,475
 22,347
 (13%)
$135.7
 
$162.1
 (16%) 17,317
 19,475
 (11%)
Commercial91.3
 117.8
 (22%) 13,879
 15,458
 (10%)77.1
 91.3
 (16%) 13,194
 13,879
 (5%)
Industrial10.4
 15.5
 (33%) 2,092
 2,377
 (12%)10.1
 10.4
 (3%) 2,209
 2,092
 6%
Retail subtotal263.8
 340.0
 (22%) 35,446
 40,182
 (12%)222.9
 263.8
 (16%) 32,720
 35,446
 (8%)
Transportation/other24.3
 24.8
 (2%) 57,213
 46,521
 23%25.8
 24.3
 6% 61,615
 57,213
 8%
Total revenues/sales288.1
 364.8
 (21%) 92,659
 86,703
 7%248.7
 288.1
 (14%) 94,335
 92,659
 2%
Cost of gas sold166.3
 228.7
 (27%)      132.3
 166.3
 (20%)      
Gas margins (a)
$121.8
 
$136.1
 (11%)      
$116.4
 
$121.8
 (4%)      
IPLRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)Revenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential
$90.9
 
$117.0
 (22%) 10,709
 12,575
 (15%)
$76.5
 
$90.9
 (16%) 9,477
 10,709
 (12%)
Commercial50.7
 64.7
 (22%) 7,335
 8,289
 (12%)43.7
 50.7
 (14%) 7,119
 7,335
 (3%)
Industrial7.6
 11.2
 (32%) 1,562
 1,744
 (10%)7.0
 7.6
 (8%) 1,501
 1,562
 (4%)
Retail subtotal149.2
 192.9
 (23%) 19,606
 22,608
 (13%)127.2
 149.2
 (15%) 18,097
 19,606
 (8%)
Transportation/other14.9
 15.2
 (2%) 25,962
 22,858
 14%15.4
 14.9
 3% 27,066
 25,962
 4%
Total revenues/sales164.1
 208.1
 (21%) 45,568
 45,466
 —%142.6
 164.1
 (13%) 45,163
 45,568
 (1%)
Cost of gas sold93.4
 128.4
 (27%)      76.3
 93.4
 (18%)      
Gas margins (a)
$70.7
 
$79.7
 (11%)      
$66.3
 
$70.7
 (6%)      

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WPLRevenues and Costs (dollars in millions) Dths Sold (Dths in thousands)Revenues and Costs (dollars in millions) Dths Sold (Dths in thousands)
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
Residential
$71.2
 
$89.7
 (21%) 8,766
 9,772
 (10%)
$59.2
 
$71.2
 (17%) 7,840
 8,766
 (11%)
Commercial40.6
 53.1
 (24%) 6,544
 7,169
 (9%)33.4
 40.6
 (18%) 6,075
 6,544
 (7%)
Industrial2.8
 4.3
 (35%) 530
 633
 (16%)3.1
 2.8
 11% 708
 530
 34%
Retail subtotal114.6
 147.1
 (22%) 15,840
 17,574
 (10%)95.7
 114.6
 (16%) 14,623
 15,840
 (8%)
Transportation/other9.4
 9.6
 (2%) 31,251
 23,663
 32%10.4
 9.4
 11% 34,549
 31,251
 11%
Total revenues/sales124.0
 156.7
 (21%) 47,091
 41,237
 14%106.1
 124.0
 (14%) 49,172
 47,091
 4%
Cost of gas sold72.9
 100.3
 (27%)      56.0
 72.9
 (23%)      
Gas margins
$51.1
 
$56.4
 (9%)      
$50.1
 
$51.1
 (2%)      

(a)Includes $9 million of credits on IPL’s Iowa retail gas customers’ bills for both the nine months ended September 30, 20152016 and 20142015 resulting from the gas tax benefit rider. The gas tax benefit rider results in reductions in gas revenues that are offset by reductions in income tax expense for the years ended December 31, 20152016 and 2014.2015.

Variances - Variances between periods in gas margins for the three and nine months ended September 30, 20152016 compared to the same periods in 20142015 were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Estimated decrease from changes in sales caused by temperatures
($1) 
$—
 
($1) 
($7) 
($3) 
($4)
Lower revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (a)—
 —
 —
 (6) (6) —
Lower revenues at WPL due to the impact of changes in retail gas base rates effective January 2015—
 —
 —
 (3) —
 (3)
Other—
 —
 —
 2
 —
 2
 
($1) 
$—
 
($1) 
($14) 
($9) 
($5)
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Estimated changes in sales caused by temperatures
$—
 
$—
 
$—
 
($5) 
($3) 
($2)
Higher (lower) revenues at IPL related to changes in recovery amounts for energy efficiency costs through the energy efficiency rider (a)1
 1
 —
 (3) (3) —
Other2
 1
 —
 3
 2
 1
 
$3
 
$2
 
$—
 
($5) 
($4) 
($1)

(a)Changes in gas energy efficiency revenues were mostly offset by changes in energy efficiency expense included in other operation and maintenance expenses.


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Temperatures - Estimated increases (decreases) to gas margins from the impacts of temperatures for the three and nine months ended September 30 were as follows (in millions):
Three Months Nine MonthsThree Months Nine Months
2015 2014 Change 2015 2014 Change2016 2015 Change 2016 2015 Change
IPL
$—
 
$—
 
$—
 
$1
 
$4
 
($3)
$—
 
$—
 
$—
 
($2) 
$1
 
($3)
WPL(1) —
 (1) —
 4
 (4)(1) (1) —
 (2) —
 (2)
Total Alliant Energy
($1) 
$—
 
($1) 
$1
 
$8
 
($7)
($1) 
($1) 
$—
 
($4) 
$1
 
($5)

Refer to “Utility Electric Margins” for HDD data details. Refer to Note 2 for discussion of IPL’s gas tax benefit rider.

Utility Other RevenuesAsset Valuation Charges for Franklin County Wind Farm - Variances between periodsRefer to Note 3 for details of asset valuation charges recorded in utility other revenuesthe third quarter of 2016 by Alliant Energy for the three and nine months ended September 30, 2015 compared to the same periods in 2014 were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Lower margins from IPL’s sharing mechanism related to optimizing gas capacity contracts (a)
$—
 
$—
 
$—
 
($4) 
($4) 
$—
Other1
 1
 —
 (2) 1
 (3)
 
$1
 
$1
 
$—
 
($6) 
($3) 
($3)


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(a)Approximately 50% of all margins earned from IPL’s sharing mechanism relating to optimizing gas capacity contracts flow through the purchased gas adjustment clause to reduce retail gas customer bills in Iowa. The remaining margins are retained by IPL and recorded in utility other revenues. Due to the extreme cold temperatures causing natural gas price fluctuations in the first quarter of 2014, margins were higher than normal for the nine months ended September 30, 2014.

Electric Transmission Service Expense- Variances between periods in electric transmission service expense for the three and nine months ended September 30, 2015 compared to the same periods in 2014 were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Higher electric transmission service costs billed from ITC, ATC and MISO (a)
$9
 
$6
 
$3
 
$19
 
$10
 
$9
Escrow treatment for the difference between actual electric transmission service costs and those costs used to determine rates during 2015 at WPL (Refer to Note 2 for further details)
4
 —
 4
 16
 —
 16
Other1
 (1) 2
 (1) (2) 2
 
$14
 
$5
 
$9
 
$34
 
$8
 
$27

(a)Primarily due to increased electric transmission service rates.

Forecast - Refer to “Other Future Considerations” for discussion of a potential increase in future electric transmission service expense in 2016 compared to 2015.Franklin County wind farm.

Other Operation and Maintenance Expenses - Variances between periods in other operation and maintenance expenses for the three and nine months ended September 30, 20152016 compared to the same periods in 20142015 were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Lower energy efficiency cost recovery amortizations at WPL (a)
($10) 
$—
 
($10) 
($29) 
$—
 
($29)
Lower generation expense (b)(5) (1) (4) (9) (5) (4)
Changes in energy efficiency expense at IPL (c)1
 1
 —
 (3) (3) —
Losses on sales of IPL’s Minnesota distribution assets recorded in the second quarter of 2015 (Refer to Note 3 for further details)
—
 —
 —
 12
 12
 —
Higher employee benefits-related expense (d)3
 2
 1
 9
 5
 4
Voluntary employee separation charges (e)8
 5
 3
 8
 5
 3
Other (includes lower costs due to cost controls and operational efficiencies)(5) (2) —
 (16) (6) (6)
 
($8) 
$5
 
($10) 
($28) 
$8
 
($32)
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Losses on sales of IPL’s Minnesota distribution assets recorded in the second quarter of 2015 (Refer to Note 3 for further details)

$—
 
$—
 
$—
 
($12) 
($12) 
$—
Lower energy efficiency cost recovery amortizations at WPL (a)(4) —
 (4) (11) —
 (11)
Voluntary employee separation charges in the third quarter of 2015 (Refer to Note 9(a) for further details)
(8) (5) (3) (8) (5) (3)
Changes in energy efficiency expense at IPL (b)—
 —
 —
 (4) (4) —
Higher stock-based performance compensation expense4
 2
 2
 11
 6
 5
Higher employee benefits-related expense2
 1
 1
 5
 4
 1
Other3
 3
 1
 1
 3
 (3)
 
($3) 
$1
 
($3) 
($18) 
($8) 
($11)

(a)The July 2014 PSCW order for WPL’s 2015/2016 Test Period electric and gas base rate case authorized lower energy efficiency cost recovery amortizations for 2015.2015 and 2016.
(b)Primarily resulting from the timing of maintenance projects at IPL’s and WPL’s EGUs.
(c)Changes in IPL’s energy efficiency expense were offset by changes in electric and gas energy efficiency revenues.
(d)Primarily due to an increase in retirement plans costs and other employee benefits-related costs. The increased retirement plan costs were largely due to decreases in discount rates and a change to the life expectancy assumption in 2014.
(e)In the third quarter of 2015, Alliant Energy offered certain employees voluntary separation agreements of which approximately 2% of total Alliant Energy employees accepted.

Forecast - Alliant Energy and WPL currently expect decreases in energy efficiency cost recovery amortizations at WPL in 2016 compared to 2015 as approved by the PSCW in a July 2014 order. Partially offsetting this expected decrease, Alliant Energy, IPL and WPL currently expect an increase in retirement plan costs in 2016 compared to 2015, resulting from lower than expected returns on retirement plan assets in 2015.


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Depreciation and Amortization Expenses - Variances between periods in depreciation and amortization expenses for the three and nine months ended September 30, 20152016 compared to the same periods in 20142015 were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Higher depreciation expense for IPL’s Ottumwa Unit 1 scrubber and baghouse completed in 2014
$1
 
$1
 
$—
 
$4
 
$4
 
$—
Higher depreciation expense for WPL’s Columbia Units 1 and 2 scrubbers and baghouses completed in 2014—
 —
 —
 2
 —
 2
Other1
 1
 —
 6
 4
 1
 
$2
 
$2
 
$—
 
$12
 
$8
 
$3

Forecast - Alliant Energy currently expects its depreciation and amortization expenses to increase in 2016 compared to 2015 due to property additions, including various emission controls projects at IPL and WPL placed in service in 2015 and expected to be placed in service in 2016.

Interest Expense - Variances between periods in interest expense for the three and nine months ended September 30, 2015 compared to the same periods in 2014 were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Higher interest expense from the issuance of WPL’s $250 million, 4.1% debentures in October 2014
$3
 
$—
 
$3
 
$8
 
$—
 
$8
Higher interest expense from the issuance of IPL’s $250 million, 3.25% senior debentures in November 20142
 2
 —
 6
 6
 —
Lower interest expense from the retirement of Alliant Energy’s $250 million, 4% senior notes in October 2014(3) —
 —
 (8) —
 —
Other—
 —
 (1) (1) (1) (2)
 
$2
 
$2
 
$2
 
$5
 
$5
 
$6

Forecast - Alliant Energy currently expects its interest expense to increase in 2016 compared to 2015 due to financings in 2015 and 2016. Refer to “Liquidity and Capital Resources” for details of Alliant Energy’s financing forecast.
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Higher amortization expense from the new customer billing and information system placed in service in 2015
$3
 
$2
 
$1
 
$7
 
$4
 
$3
Lower depreciation expense from the sale of IPL’s Minnesota distribution assets in 2015—
 —
 —
 (3) (3) —
Other (includes the impact of property additions)2
 —
 2
 5
 2
 3
 
$5
 
$2
 
$3
 
$9
 
$3
 
$6

Equity Income from Unconsolidated Investments, Net - Alliant Energy’s and WPL’s equity income from unconsolidated investments both decreased $5 million and $4$2 million for the nine-monththree-month period, respectively, primarily due to higher reserves for rate refunds recorded at ATC during the ninethree months ended September 30, 2015 at ATC.2016 compared to the same period in 2015. Refer to “Other Future Considerations” for discussion of a complaint pending with FERC regarding the levelWPL’s future transfer of return on equity that MISO transmission owners (including ATC) should be allowedits investment in ATC to utilize in calculating the rates they charge their customers.Alliant Energy or an Alliant Energy subsidiary.


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AFUDC -
Forecast - Alliant Energy currently expectsVariances between periods in AFUDC to increase infor the three and nine months ended September 30, 2016 compared to the same periods in 2015 primarily due to increased construction work in progress balances related to Marshalltown.were as follows (in millions):
 Three Months Nine Months
 Alliant Energy IPL WPL Alliant Energy IPL WPL
Marshalltown (IPL)
$5
 
$5
 
$—
 
$17
 
$17
 
$—
Other1
 2
 —
 2
 —
 2
 
$6
 
$7
 
$—
 
$19
 
$17
 
$2

Income Taxes - Refer to Note 8 for details of effective income tax rates for continuing operations.

STRATEGIC OVERVIEW

The strategic overview summary included in the 2015 Form 10-K has not changed materially, except as described below.

ForecastGas Transmission and Distribution Systems - In April 2016, the Pipeline and Hazardous Materials Safety Administration published proposed regulations to update safety requirements for gas transmission pipelines. The proposed regulations would add new assessment and repair criteria for gas pipelines, and require a systematic approach to verify a pipeline’s maximum allowable operating pressure. Alliant Energy, IPL and WPL currently anticipate final regulations will be issued in 2017. Given that the Pipeline and Hazardous Materials Safety Administration has not finalized these gas transmission regulations, Alliant Energy, IPL and WPL are currently unable to predict with certainty the impact of these regulations on their financial condition and results of operations.

IPL’s Clinton Natural Gas Pipeline - In August 2016, IPL received an order from the IUB authorizing IPL to construct, maintain, and operate a natural gas pipeline in Scott and Clinton Counties in Iowa, referred to as the Clinton pipeline. Construction is expected to be completed in the first quarter of 2017. Capital expenditures to construct the pipeline, excluding AFUDC, are currently estimated to be approximately $30 million to $35 million.

Generation Plans -
Natural Gas-Fired Generation -
WPL’s Construction of the Riverside Expansion - In May 2016, WPL received an order from the PSCW authorizing WPL to construct a natural gas-fired combined-cycle EGU in Beloit, Wisconsin, referred to as the Riverside expansion. In June 2016, WPL executed a design, engineering, procurement and construction contract for the Riverside expansion. After receiving the final necessary regulatory approvals and permits in the third quarter of 2016, WPL began constructing the Riverside expansion. WPL currently expects to place the Riverside expansion in service by early 2020.

In November 2016, various electric cooperatives notified WPL of their intent to exercise their options to acquire approximately 60 MW of the Riverside expansion while the EGU is being constructed. As a result of the various electric cooperatives funding a portion of the capital expenditures during construction, WPL’s estimated portion of capital expenditures is now expected to be approximately $640 million. The capital expenditures include costs to construct the EGU and a pipeline to supply natural gas to the EGU and exclude transmission network upgrades and AFUDC. Upon exercise of their options, the current wholesale power supply agreements with the various electric cooperatives will be extended by at least four years until 2026 with automatic continuation of such agreements unless terminated by either party, with a five-year notice requirement.

Pursuant to agreements WPL entered into with Wisconsin Public Service Corporation (WPSC) and Madison Gas and Electric Company (MGE) related to the Riverside expansion, WPL, WPSC and MGE filed a request with the PSCW seeking approval of amendments to the Columbia joint operating agreement. In October 2016, WPL received a decision from the PSCW approving such amendments, which allow WPSC and MGE to forgo certain capital expenditures at Columbia, resulting in WPL incurring these additional capital expenditures in exchange for a proportional increase in its ownership share of Columbia. Based upon the additional capital expenditures WPL currently expects to incur through June 1, 2020, WPL’s ownership interest in Columbia is expected to increase from 46.2% to 53.4%. WPL currently expects to file a request with FERC in the fourth quarter of 2016 for approval of these amendments to the Columbia joint operating agreement.

IPL’s Construction of Marshalltown - IPL began constructing Marshalltown in the second quarter of 2014 after receiving the final necessary regulatory approvals and permits. IPL executed an engineering, procurement and construction contract for Marshalltown after a competitive bidding process. In September 2016, Marshalltown’s engineering, procurement and construction contractor announced that costs to construct Marshalltown will exceed its expectations and that it expects to

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seek compensation from vendors performing work on Marshalltown. IPL does not currently anticipate it will be responsible for these increased costs. Capital expenditures are currently estimated to be approximately $700 million to construct the EGU and a pipeline to supply natural gas to the EGU. The estimated capital expenditures exclude transmission network upgrades and AFUDC. IPL expects to place Marshalltown in service by the second quarter of 2017.

Wind Generation - The strategic plan includes the planned and potential addition of wind generation of up to 1,000 MW to Alliant Energy’s resources portfolio as follows. Estimated capital expenditures for the planned and potential wind generation projects for 2016 through 2020 are included in the “Renewable projects” line in the construction and acquisition expenditures table in “Liquidity and Capital Resources.”

IPL’s Expansion of Wind Generation - In October 2016, IPL and the Iowa Office of Consumer Advocate, among other customer groups, filed a settlement agreement with the IUB regarding the appropriate rate-making principles for up to 500 MW of additional wind generation at IPL. In October 2016, the IUB issued an order approving the settlement agreement, with limited modifications, and establishing rate-making principles, which IPL accepted, as follows:

Up to 500 MW of additional wind generation that qualifies for the full level of production tax credits, regardless of the location in Iowa, with a cost cap of $1,830/kilowatt, including AFUDC and transmission costs. Any costs incurred in excess of this $1,830/kilowatt cost cap are expected to be incorporated into rates if determined to be reasonable and prudent.
A depreciable life of the wind generation of 40 years, unless changed as a result of a contested case before the IUB.
An 11.0% return on common equity, with the exception of certain transmission facilities classified as intangible assets, which would earn the rate of return on common equity the IUB finds reasonable during a future rate case.
A return on common equity for the calculation of AFUDC during the construction period that is the greater of 10.0% or the percentage the IUB finds reasonable during IPL’s next rate case.
The application of double leverage is deferred until IPL’s next retail electric base rate case or other future proceeding.
Amortization over a 10-year period of IPL’s prudently incurred and unreimbursed costs, effective with IPL’s next retail electric base rate case, if IPL cancels the construction of the wind generation.
Withdrawal of IPL’s proposed renewable energy rider, which would have allowed IPL to commence recovery of the wind projects from its retail electric customers at the time the additional wind generation was placed in service.

IPL currently expects to add wind generation near its Whispering Willow - East wind farm, and is evaluating other siting options to build and operate the 500 MW of additional wind. IPL plans to commence the construction process in 2016, and as a result, be eligible for the full level of production tax credits from the electricity generated during the first 10 years of operation. IPL anticipates placing the 500 MW of additional wind generation in service in 2019 and 2020.

Franklin County Wind Farm - In addition to IPL’s expansion of wind generation discussed above, refer to Note 3 for discussion of IPL’s anticipated filing with FERC in the fourth quarter of 2016 requesting approval to transfer the 99 MW Franklin County wind farm assets from AEF to IPL in 2017.

IPL’s and WPL’s Potential Expansion of Wind Generation - In addition to IPL’s 500 MW expansion of wind generation and planned transfer of the 99 MW Franklin County wind farm to IPL in 2017 discussed above, IPL and WPL are exploring options to own and operate up to 400 MW of additional new wind generation in aggregate. The estimated capital expenditures included in “Liquidity and Capital Resources” assume this 400 MW of additional new wind generation will be equally allocated between IPL and WPL. The final amount and allocation of this potential expansion of wind generation for IPL and WPL is subject to change pending further evaluation.

Coal-Fired Generation -
Environmental Controls Projects - Refer to Note 3 for further discussion of a scrubber and baghouse project at Edgewater Unit 5, which was completed in July 2016.

RATE MATTERS

The rate matters summary included in the 2015 Form 10-K has not changed materially, except as described below.

WPL’s Wisconsin Retail Electric and Gas Rate Case (2017/2018 Test Period) - In May 2016, WPL filed a retail base rate case with the PSCW based on a forward-looking test period that includes 2017 and 2018. WPL’s filing was based on a stipulated agreement reached between PSCW staff, intervener groups and WPL. The filing requested approval for WPL to

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implement a $13 million, or approximately 1%, increase in annual rates for WPL’s retail electric customers. The net requested increase for 2017 compared to WPL’s retail electric rate case for the 2015/2016 Test Period reflects a $65 million increase in base rates, partially offset by a $52 million reduction in fuel-related costs, using a preliminary estimate for 2017 fuel-related costs. Based on updated fuel-related cost information at the time of rate case hearings in September 2016, the current estimate of the net increase in annual rates for WPL’s retail electric customers is $17 million, consisting of the original $65 million increase in base rates, partially offset by a $48 million reduction in fuel-related costs. The filing also requested approval for WPL to implement a $9 million, or approximately 13%, increase in annual base rates for WPL’s retail gas customers. Any rate changes granted from this request are expected to be effective January 1, 2017 and extend through the end of 2018. The key drivers for the electric and gas base rate increases are recovery of the costs for environmental controls projects at Edgewater and Columbia, and investments in electric and gas distribution systems, including expansion of natural gas pipeline infrastructure. The filing also included utilization of amounts that WPL previously over-recovered from its customers for energy efficiency cost recovery and electric transmission cost recovery, as well as amounts deferred under the return on common equity sharing mechanism for the 2013/2014 Test Period to reduce the requested base rate increases. The fuel-related cost component of WPL’s retail electric rates for 2018 will be addressed in a separate filing, which is currently expected to be filed in the second or third quarter of 2017.

WPL’s May 2016 retail base rate filing included a return on common equity of 10.0% and continues a regulatory return on common equity sharing mechanism, whereby WPL must defer a portion of its earnings if its annual regulatory return on common equity exceeds 10.25% during the 2017 and 2018 Test Period. WPL must defer 50% of its excess earnings between 10.25% and 11.00%, and 100% of any excess earnings above 11.00%. The May 2016 filing also included the following key assumptions (Common Equity (CE); Long-term Debt (LD); Short-term Debt (SD); Weighted-average Cost of Capital (WACC)):
Utility Test Regulatory Capital Structure After-tax Average Retail Rate
Type Period CE LD SD WACCBase (in millions) (a)
Electric 2017 52.23% 43.92% 3.85% 7.57% 
$2,699
Electric 2018 52.20% 45.16% 2.64% 7.59% 2,851
Gas 2017 52.23% 43.92% 3.85% 7.57% 259
Gas 2018 52.20% 45.16% 2.64% 7.59% 284

(a)Average rate base is calculated using a 13-month average.

The May 2016 retail base rate filing also reflected the impact of the anticipated transfer of ATC from WPL to Alliant Energy or one of its subsidiaries by December 31, 2016 as discussed in “Other Future Considerations,” approved changes to depreciation rates pursuant to a September 2016 PSCW order, continued escrow treatment of transmission charges and application of AFUDC rates to 100% of the retail portion of the CWIP balances for the Riverside expansion. If WPL does not complete the anticipated transfer of ATC to Alliant Energy or one of its subsidiaries by December 31, 2016, WPL would expect to defer the revenue requirement impacts until such time the transfer occurs or until WPL’s next base rate case filing. The filing also assumed deferral of any potential changes in revenue requirement due to anticipated increases in WPL’s ownership share of Columbia resulting from the Riverside expansion agreements WPL previously entered into with neighboring utilities.

WPL currently expects a decision from the PSCW regarding this base rate filing in the fourth quarter of 2016.

WPL’s Retail Fuel-related Rate Filings - Refer to Note 2 for discussion of WPL’s retail fuel-related rate filings for the 2015 and 2016 Test Years.

WPL’s Depreciation Study - Refer to Note 1(c) for discussion of a September 2016 PSCW order approving updated depreciation rates for WPL effective January 1, 2017 as a result of a recently completed depreciation study. The September 2016 PSCW order also authorized WPL to recover the remaining net book value of Edgewater Unit 4 over a 10-year period beginning the later of the retirement date of the EGU or January 1, 2019.

IPL’s Tax Benefit Riders - Pursuant to a 2015 IUB order, IPL established tax benefit riders regulatory liabilities in 2014 to record higheradditional tax savings related to repair expenditures and cost of removal expenditures on partial dispositions that were previously capitalized to help offset the impact of future rate increases on IPL’s retail electric and gas customers. In November 2016, IPL filed a tariff with the IUB to facilitate refunds of approximately $75 million of the related tax benefits to IPL’s retail electric and gas customers in 2017. IPL currently expects a decision from the effect of rate-making on property related differencesIUB in 2016 compared to 2015.December 2016.


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ENVIRONMENTAL MATTERS

The environmental matters summary included in the 2015 Form 10-K has not changed materially, except as described below.

Air Quality -
Ozone NAAQS Rule - The 2008 Ozone NAAQS Rule may require a reduction of NOx emissions in certain non-attainment areas designated by the EPA. Sheboygan County in Wisconsin is currently the only non-attainment area for the 2008 Ozone NAAQS Rule in Alliant Energy’s service territory. WPL operates Edgewater and the Sheboygan Falls Energy Center in Sheboygan County, Wisconsin. The compliance deadline for Sheboygan County to meet the 2008 Ozone NAAQS Rule was July 2016. Alliant Energy and WPL are currently in compliance with applicable requirements resulting from the 2008 Ozone NAAQS rule.

LEGISLATIVE MATTERS

The legislative matters summary included in the 2015 Form 10-K has not changed materially.

LIQUIDITY AND CAPITAL RESOURCES

AThe liquidity and capital resources matters summary is included in the 20142015 Form 10-K and has not changed materially, from the items reported in the 2014 Form 10-K, except as described below.

Liquidity Position - At September 30, 20152016, Alliant Energy had $139$85 million of cash and cash equivalents, $891$762 million ($19174 million at the parent company, $300 million at IPL and $400$388 million at WPL) of available capacity under the revolving credit facilities and $179 million of available capacity at IPL under its sales of accounts receivable program.


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Capital Structures - Capital structures at September 30, 20152016 were as follows (dollars in millions):
Alliant Energy
(Consolidated)
 IPL WPL
Alliant Energy
(Consolidated)
 IPL WPL
Common equity
$3,745.2
 47% 
$1,991.0
 49% 
$1,759.6
 53%
$3,859.1
 46% 
$2,137.9
 48% 
$1,813.8
 54%
Preferred stock200.0
 3% 200.0
 5% —
 —%
Preferred stock of IPL200.0
 2% 200.0
 4% —
 —%
Noncontrolling interest0.9
 —% —
 —% 10.9
 —%—
 —% —
 —% 18.5
 1%
Long-term debt (incl. current maturities)3,858.8
 49% 1,868.5
 46% 1,543.6
 47%4,130.9
 49% 2,153.1
 48% 1,534.9
 45%
Short-term debt109.1
 1% —
 —% —
 —%238.3
 3% —
 —% 11.8
 —%

$7,914.0
 100% 
$4,059.5
 100% 
$3,314.1
 100%
$8,428.3
 100% 
$4,491.0
 100% 
$3,379.0
 100%

Cash Flows - Selected information from the cash flows statements was as follows (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
2015 2014 2015 2014 2015 20142016 2015 2016 2015 2016 2015
Cash and cash equivalents, January 1
$56.9
 
$9.8
 
$5.3
 
$4.4
 
$46.7
 
$0.5

$5.8
 
$56.9
 
$4.5
 
$5.3
 
$0.4
 
$46.7
Cash flows from (used for):                      
Operating activities695.3
 763.9
 318.0
 373.6
 375.9
 365.8
654.0
 695.3
 256.5
 318.0
 439.3
 375.9
Investing activities(613.0) (640.4) (319.4) (376.5) (259.6) (233.8)(771.8) (613.0) (435.4) (319.4) (326.7) (259.6)
Financing activities—
 (122.3) 95.5
 3.1
 (127.3) (130.2)196.7
 —
 252.1
 95.5
 (107.4) (127.3)
Net increase (decrease)82.3
 1.2
 94.1
 0.2
 (11.0) 1.8
78.9
 82.3
 73.2
 94.1
 5.2
 (11.0)
Cash and cash equivalents, September 30
$139.2
 
$11.0
 
$99.4
 
$4.6
 
$35.7
 
$2.3

$84.7
 
$139.2
 
$77.7
 
$99.4
 
$5.6
 
$35.7


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Operating Activities -
Nine Months Ended September 30, 20152016 vs. Nine Months Ended September 30, 20142015 - The following items contributed to increased (decreased) operating activity cash flows for the nine months ended September 30, 20152016 compared to the same period in 20142015 (in millions):
 Alliant Energy IPL WPL
Changes in the level of IPL’s accounts receivable sold (Refer to Note 4(a) for details)

($30) 
($30) 
$—
Final receipt related to Alliant Energy’s tax separation and indemnification agreement with Whiting Petroleum in 2014 (Refer to Note 4(b) for details)
(26) —
 —
Changes in IPL’s retail electric customer billing credits27
 27
 —
Other (a)(40) (53) 10
 
($69) 
($56) 
$10
 Alliant Energy IPL WPL
Changes in cash collateral balances
($29) 
$—
 
$—
Changes in levels of gas stored underground and prepaid gas costs(20) (10) (10)
Changes in income taxes paid/refunded(8) (30) 30
Timing of WPL’s fuel-related cost recoveries from customers25
 —
 25
Changes in levels of production fuel10
 (12) 22
Other(19) (10) (4)
 
($41) 
($62) 
$63

(a)Includes other changes in working capital largely related to changes in inventory levels and the timing of fuel-related cost recoveries from customers.

Investing Activities -
Nine Months Ended September 30, 20152016 vs. Nine Months Ended September 30, 20142015 - The following items contributed to increased (decreased) investing activity cash flows for the nine months ended September 30, 20152016 compared to the same period in 20142015 (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
Proceeds from IPL’s Minnesota distribution asset sales in 2015
$138
 
$138
 
$—

($138) 
($138) 
$—
Higher utility construction expenditures, including Marshalltown expenditures for Alliant Energy and IPL(92) (74) (17)
Higher utility construction expenditures(65) (4) (61)
Proceeds from the liquidation of company-owned life insurance policies31
 19
 —
Other(19) (7) (9)13
 7
 (6)

$27
 
$57
 
($26)
($159) 
($116) 
($67)


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Construction and Acquisition Expenditures - Construction and acquisition expenditures for 20152016 through 20192020 are currently anticipated as follows (in millions). Cost estimates represent Alliant Energy’s, IPL’s and WPL’s estimated portion of total escalated construction expenditures and exclude AFUDC and capitalized interest, if applicable. Such estimates reflect impacts to Alliant Energy’s and WPL’s capital expenditures resulting from the intent to exercise purchase options by certain electric cooperatives for a partial ownership interest in the Riverside expansion, as well as additional capital expenditures related to Columbia that WPL is expected to incur related to agreements entered into with Wisconsin Public Service Corporation and Madison Gas and Electric Company. Refer to “Strategic Overview” for further discussion of certain key projects impacting construction and acquisition plans related to the utility business.
Alliant Energy IPL WPLAlliant Energy IPL WPL
20152016201720182019 20152016201720182019 2015201620172018201920162017201820192020 20162017201820192020 20162017201820192020
Generation:          
Renewable projects
$100

$140

$345

$340

$325
 
$70

$175

$325

$270

$115
 
$30

$—

$20

$70

$210
Riverside expansion75
295
180
85
5
 —
—
—
—
—
 75
295
180
85
5
Marshalltown
$280

$190

$10

$—

$—
 
$280

$190

$10

$—

$—
 
$—

$—

$—

$—

$—
185
20
—
—
—
 185
20
—
—
—
 —
—
—
—
—
Proposed Riverside expansion10
100
325
240
30
 —
—
—
—
—
 10
100
325
240
30
Environmental compliance145
100
70
60
25
 30
25
40
50
10
 115
75
30
10
15
Other120
175
170
135
140
 55
80
75
60
60
 65
95
95
75
80
270
235
185
180
160
 90
115
105
105
80
 180
120
80
75
80
Distribution:          
Electric systems280
280
355
430
470
 175
150
220
230
225
 105
130
135
200
245
305
425
440
475
475
 175
230
255
285
295
 130
195
185
190
180
Gas systems95
200
150
210
165
 45
155
90
115
95
 50
45
60
95
70
170
110
145
100
220
 120
70
75
60
160
 50
40
70
40
60
Other120
90
170
175
260
 30
25
35
40
80
 20
35
35
20
15
105
155
120
100
100
 35
40
35
25
25
 20
15
10
10
10

$1,050

$1,135

$1,250

$1,250

$1,090
 
$615

$625

$470

$495

$470
 
$365

$480

$680

$640

$455

$1,210

$1,380

$1,415

$1,280

$1,285
 
$675

$650

$795

$745

$675
 
$485

$665

$545

$470

$545


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Financing Activities -
Nine Months Ended September 30, 20152016 vs. Nine Months Ended September 30, 20142015 - The following items contributed to increased (decreased) financing activity cash flows for the nine months ended September 30, 20152016 compared to the same period in 20142015 (in millions):
Alliant Energy IPL WPLAlliant Energy IPL WPL
Proceeds from the issuance of IPL’s 3.4% senior debentures in August 2015
$250
 
$250
 
$—
Net proceeds from common stock issuances in 2015145
 —
 —
Payments to retire IPL’s 5% pollution control revenue bonds in July 201438
 38
 —
Proceeds from the issuance of IPL’s 3.7% senior debentures in September 2016
$300
 
$300
 
$—
Payments to retire IPL’s 3.3% senior debentures in June 2015(150) (150) —
150
 150
 —
Net changes in the amount of commercial paper outstanding(107) (38) 37
111
 —
 (8)
Payments to retire WPL’s pollution control revenue bonds in the third quarter of 2015(31) —
 (31)31
 —
 31
Proceeds from the issuance of IPL’s 3.4% senior debentures in August 2015(250) (250) —
Proceeds from Alliant Energy’s at-the-market offering program in 2015(133) —
 —
Lower capital contributions from IPL’s parent company, Alliant Energy—
 (35) —
Other(23) (8) (3)(12) (8) (3)

$122
 
$92
 
$3

$197
 
$157
 
$20

FERC Financing Authorization - After issuing $250$300 million of long-term debt securities in August 2015,September 2016, IPL currently has remaining authority to issue up to $250 million of long-term debt securities in aggregate in 2015through December 31, 2017 pursuant to a 2013December 2015 FERC order.

State Regulatory Financing Authorizations - In September 2016, WPL received authorization from the PSCW to have up to $400 million of short-term borrowings and/or letters of credit outstanding at any time through the earlier of the expiration date of WPL’s credit facility agreement (including extensions) or December 2024.

WPL previously had remaining authority to issue up to $300 million of long-term debt securities in aggregate in 2016 pursuant to a November 2014 PSCW order. As a result of the Moody’s Investors Service’s credit ratings changes in July 2016 discussed below, WPL no longer has authority to issue long-term debt securities in 2016. WPL currently has no plans to issue long-term debt securities in 2016.

Common Stock Dividends and Common Stock Split -As discussed in Note 6, Alliant Energy’s Board of Directors approved a two-for-one common stock split, which was distributed in May 2016. After the two-for-one common stock split, the targeted 2016 quarterly common stock dividend payment is $0.29375 per share. Refer to “Executive Summary” for discussion of expected common stock dividends in 2017.

Common Stock Issuances and Capital Contributions - Refer to Note 6 for discussion of common stock issuances by Alliant Energy, payments of common stock dividends by IPL and WPL to their parent company, and capital contributions from Alliant Energy to IPL during the nine months ended September 30, 2015.2016. Refer to “Note 9(b)Executive Summary” for discussion of Alliant Energy’sexpected common stock issuances during the nine months ended September 30, 2015 under its equity-based compensation plans for employees.and capital contributions in 2017.

Long-term Debt - Refer to Note 7(b) for discussion of various long-term debt issuances and retirements. Refer to “


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Financing Forecast - The following financing activities are currently anticipated to occur in the future:

Long-term Debt - IPL currently expects to issue up to $300 millionexpected issuances of additional long-term debt in 2016. In addition, Alliant Energy and Franklin County Holdings LLC currently anticipate refinancing $250 million and $60 million, respectively, of variable-rate term loan credit agreements in 2016.
Common Stock Issuances and Capital Contributions - Alliant Energy currently expects to issue approximately $25 million of common stock in 2016 through its Shareowner Direct Plan. IPL and WPL currently expect to receive capital contributions of approximately $165 million and $25 million, respectively, from their parent company in 2016.
Common Stock Dividends - In November 2015, Alliant Energy announced an increase in its targeted 2016 annual common stock dividend to $2.35 per share, which is equivalent to a quarterly rate of $0.5875 per share, beginning with the February 2016 dividend payment. The timing and amount of future dividends is subject to an approved dividend declaration from its Board of Directors, and is dependent upon earnings expectations, capital requirements, and general financial business conditions, among other factors. In addition, IPL and WPL currently expect to pay common stock dividends of approximately $150 million and $135 million, respectively, to their parent company in 2016.2017.

Impact of Credit Ratings on Liquidity and Collateral Obligations -
Ratings Triggers - In August 2015,July 2016, Moody’s Investors Service changed each ofAlliant Energy’s and IPL’s corporate/issuer and senior unsecured long-term debt credit ratings from A3 to Baa1. IPL’s preferred stock credit rating also changed from Baa2 to Baa3. In addition, WPL’s corporate/issuer and senior unsecured long-term debt credit ratings changed from A1 to A2. Alliant Energy’s, IPL’s and WPL’s outlooks also changed from stablenegative to negative. As discussed in the 2014 Form 10-K, the long-term debt ofstable. Alliant EnergyEnergy’s, IPL’s and its subsidiaries isWPL’s commercial paper ratings remained unchanged. These credit ratings changes are not subjectexpected to any repayment requirements ashave a result of explicit credit rating downgradesmaterial impact on Alliant Energy’s, IPL’s, and WPL’s liquidity or so-called “ratings triggers.”collateral obligations.

Off-Balance Sheet Arrangements - A summary of Alliant Energy’s off-balance sheet arrangements is included in the 20142015 Form 10-K and has not changed materially from the items reported in the 20142015 Form 10-K, except as described below. Refer to Note 4(a)4 for information regarding IPL’s sales of accounts receivable program. IPL currently expects to amend and extend inIn March 2016, IPL extended through March 2018 the purchase commitment from the third party to which it sells its receivables. Refer to Note 13(d) for information regarding various guarantees and indemnifications related to Alliant Energy’s and IPL’s prior divestiture activities.


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Certain Financial Commitments -
Contractual Obligations - A summary of Alliant Energy’s, IPL’s and WPL’s contractual obligations is included in the 20142015 Form 10-K and has not changed materially from the items reported in the 20142015 Form 10-K, except for the items described in Notes 7(b), 13(a) and 13(b).

OTHER MATTERS

Market Risk Sensitive Instruments and Positions - A summary ofThe market risks issummary included in the 20142015 Form 10-K and such market risks havehas not changed materially, from those reported in the 2014 Form 10-K, except as described below.

Commodity Price - Refer to Note 2 for discussion of WPL’s retail fuel-related rate filings for the 2015 and 2016 Test Years 2014 though 2016.Years.

New Accounting PronouncementsStandards - Refer to Note 1(b) for discussion of new accounting pronouncementsstandards impacting Alliant Energy, IPL and WPL.

Critical Accounting Policies and Estimates - AThe summary of critical accounting policies and estimates is included in the 20142015 Form 10-K and such policies and estimates havehas not changed materially, from those reportedexcept as described below.

Long-Lived Assets -
Non-regulated Operations -
Franklin County Wind Farm - On a quarterly basis, Alliant Energy evaluates if there are any impairment indicators present related to the Franklin County wind farm. Based on an evaluation of the strategic options for the Franklin County wind farm performed in the third quarter of 2016, Alliant Energy concluded, as of September 30, 2016, it was probable the Franklin County wind farm will be transferred to IPL. As a result, Alliant Energy performed an impairment analysis of such assets in the third quarter of 2016. Refer to 2014Note 3 Form 10-K.for discussion of the impairment analysis, which resulted in non-cash, pre-tax asset valuation charges of $86 million recorded by Alliant Energy in the third quarter of 2016.

Other Future Considerations - AThe summary of other future considerations is included in the 20142015 Form 10-K and has not changed materially, from the items reported in the 2014 Form 10-K except as described below, and as discussed earlier in MDA and the Notes in Item 1 and “Risk Factors” in Item 1A.1.

Electric Transmission Service Expense -IPL and WPL currently receive substantially all their transmission services from ITC and ATC, respectively. Due to the formula rates used by ITC and ATC to charge their customers and possible future changes to these rates as discussed below, there is uncertainty regarding the long-term trends of IPL’s and WPL’s future electric transmission service expense. Alliant Energy, IPL and WPL currently anticipate future changes to their electric transmission service expense in 2016 as follows:

2017 Electric Transmission Service Expense - Alliant Energy, IPL and WPL currently estimate their total electric transmission service expense in 2017 will be lower than the comparable expense in 2016 by approximately $20 million, $15 million and $5 million, respectively. Such decreases are primarily due to expected lower return on equity resulting from the MISO transmission owner return on equity complaints. Alliant Energy’s, IPL’s and WPL’s estimated 2017 electric transmission service expense remains subject to change pending the IUB’s approval of IPL’s 2017 transmission rates and the PSCW’s final decision in WPL’s retail electric rate case for the 2017/2018 Test Period.

MISO Transmission Owner Return on Equity Complaints - A group of MISO cooperative and municipal utilities previously filed two complaints with FERC requesting a reduction to the base return on equity used by MISO transmission owners, including ITC and ATC. In September 2016, FERC issued an order on the first complaint and established a base return on equity of 10.32%, excluding any incentive adders granted by FERC, for the refund period from November 12, 2013 through February 11, 2015. In October 2016, in response to MISO’s and the MISO transmission owners’ request, FERC ordered the related refunds be issued by July 2017.

In June 2016, a FERC administrative law judge issued an initial decision regarding the second complaint and recommended a base return on equity of 9.70%, excluding any incentive adders granted by FERC, for the refund period from February 12, 2015 through May 11, 2016. A final decision from FERC on the second complaint is currently expected in the first half of 2017.


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Alliant Energy and WPL have realized a cumulative $24 million of reductions in the amount of equity income from ATC as a result of the two complaints through September 30, 2016, including $9 million during the nine months ended September 30, 2016. These reductions are based upon a 10.32% base return on equity for the first complaint period and assume a 10.2% return on equity (9.70% base return on equity plus 50 basis point incentive adder approved in a previous FERC order) for the second complaint period and thereafter.

Attachment “O” Rates - The annual transmission service rates that ITC or ATC charges their customers are calculated each calendar year using a FERC-approved cost of service formula rate referred to as Attachment “O.” Because Attachment “O” is a FERC-approved formula rate, ITC and ATC can implement new rates each calendar year without filing a request with FERC. However, new rates are subject to challenge by either FERC or customers. If the rates proposed by ITC or ATC are determined by FERC to be unjust or unreasonable or another mechanism is determined by FERC to be just and reasonable, ITC’s or ATC’s rates would change accordingly.

2016 Rates Charged by ITC to IPL - In August 2015, ITC filed with MISO the Attachment “O” rate it proposes to charge its customers in 2016 for electric transmission services. The proposed rate was based on ITC’s estimated net revenue requirement for 2016 as well as a true-up adjustment credit related to amounts that ITC over-recovered from its customers in 2014. Amounts billed under the 2016 Attachment “O” rate are currently expected to be approximately 6% higher than the amounts ITC is charging its customers in 2015.

20162017 Rates Charged by ATC to WPL - In September 2015,October 2016, ATC shared with its customers the Attachment “O” rate it proposes to charge them in 20162017 for electric transmission services. The proposed rate was based on ATC’s estimated net revenue requirement for 20162017 as well as a true-up adjustment credit related to amounts that ATC over-recovered from its customers in 2014.2015 and expects to over-recover from its customers in 2016. Amounts billed under the 20162017 Attachment “O” rate are currently expected to be approximately 7% higher5% lower than the amounts ATC is charging its customers in 2015.2016. The proposed rate for 2017 reflects a 10.82% return on equity for the impact of FERC’s September 2016 order to lower the base return on equity for MISO transmission owners to 10.32% discussed above, plus a 50 basis point incentive return on equity adder based on ATC’s participation in MISO.

MISO Transmission Charges Billed2017 Rates Charged by ITC to IPL and WPL - In October 2016, ITC filed with MISO tariffs billedthe Attachment “O” rate it proposes to IPL and WPL include costscharge its customers in 2017 for electric transmission services. The proposed rate was based on ITC’s estimated net revenue requirement for 2017 as well as a true-up adjustment related to various shared transmission projects including Multi-value Projects. Multi-value Projects include new large scale transmission projectsamounts that enableITC under-recovered from its customers in 2015. Amounts billed under the reliable and economic delivery of energy in support of documented energy policy mandates or provide economic value across multiple pricing zones within MISO. Multi-value Project costs2017 Attachment “O” rate are socialized across the entire MISO footprint based on energy usage of each MISO participant. MISO tariffs billed to IPL and WPL also include costs related to other shared transmission projects, including projects designed to reduce market congestion, to provide interconnection to the transmission grid for new generation, and to ensure compliance with applicable reliability standards. The costs of these projects are primarily allocated to MISO participants in a way that is commensurate with the benefit to the participants’ pricing zone. The MISO transmission charges billed to IPL and WPL are expected to increase in the future due to the number of shared transmission projectscurrently expected to be completedapproximately 4% higher than the amounts ITC is charging its customers in 2016. The proposed rate for 2017 reflects an 11.32% return on equity for the impact of FERC’s September 2016 order to lower the base return on equity for MISO region.transmission owners to 10.32% discussed above, plus a 50 basis point incentive return on equity adder based on ITC’s participation in MISO, as well as a 50 basis point incentive return on equity adder for ITC being an independent transmission company. The proposed rate for 2017 also reflects the impacts of bonus tax depreciation deductions for 2015, 2016 and 2017 in response to FERC’s March 2016 order discussed below.

2016 Electric Transmission Service ExpenseITC Bonus Tax Depreciation Deductions - In December 2015, IPL filed a complaint with FERC regarding ITC’s Attachment “O” rate pursuant to FERC-approved Attachment “O” protocols. IPL’s complaint alleged that ITC acted imprudently by failing to take advantage of tax savings benefits available through bonus tax depreciation deductions, which results in higher Attachment “O” rates being billed by ITC to IPL. In March 2016, FERC issued an order concluding that ITC acted imprudently by failing to take advantage of tax savings benefits available through bonus tax depreciation deductions. The FERC order requires ITC to recalculate its Attachment “O” rate effective January 1, 2015 to simulate taking bonus tax depreciation deductions for 2015. In April 2016, ITC filed a request for rehearing of FERC’s March 2016 order. IPL subsequently filed a response to ITC’s request for rehearing, requesting that FERC require ITC to also take bonus tax depreciation deductions for 2012 through 2014. In June 2016, FERC issued an order rejecting ITC’s and IPL’s requests. If ITC does not take advantage of bonus tax depreciation deductions in 2016 or in future years, IPL retains the right under Attachment “O” protocols to challenge ITC’s decision if IPL deems that decision to be imprudent. Alliant Energy and IPL and WPLare currently estimate their total electric transmission service expense in 2016 will be higher thanreviewing ITC’s estimated impacts through the comparable expense in 2015 by approximately $35 million, $25 million and $10 million, respectively, as a result of the items discussed above. A significant portion of the increaseFERC-approved Attachment “O” protocols.

Electric Transmission Cost Recovery - Any changes in IPL’s electric transmission service expense iscosts billed by ITC to IPL are expected to be offset with increases inpassed on to IPL’s Iowa retail electric revenuescustomers through the transmission cost recovery rider. AnyThe difference between WPL’s actual electric transmission service expense incurred and amounts collected from customers as electric revenues in 2016 will2017 is expected to be recorded as electric transmission service expense with an offsetting amount recorded to a regulatory asset or regulatory liability due to the escrow treatment authorized forproposed by WPL in its 2015/20162017/2018 Test Period retail electric rate case. Based on IPL’s and WPL’s electric transmission cost recovery mechanisms, IPL and WPL currently do not expect that any changes to electric transmission service costs billed by ITC and ATC will have a material impact on their financial condition and results of operations. IPL and WPL could have a material impact on their cash flows depending on the final timing of refunds resulting from the MISO return on equity complaints, and the subsequent timing of the refunds being credited to their customers.

MISO Transmission Owner Return on Equity Complaints - In 2013, a group of MISO industrial customer organizations filed a complaint with FERC requesting to reduce the base return on equity used by MISO transmission owners, including ITC and ATC, among other items. ITC’s and ATC’s current authorized return on equity is 12.38% and 12.2%, respectively. In 2014, FERC issued an order on the complaint, established hearing and settlement procedures on the return on equity component of the complaint, and established an effective refund date of November 12, 2013. Various parties to the proceeding have filed testimony with FERC identifying base return on equity ranges with stated midpoints between 8.58% and 11.39%, excluding any incentive adders granted by FERC. A final decision from FERC on this complaint is currently expected in 2016.

In June 2015, FERC issued an order on an additional complaint filed with FERC by a group of MISO cooperative and municipal utilities requesting to reduce the base return on equity used by MISO transmission owners, including ITC and ATC, to 8.67%. FERC’s June 2015 order established hearing procedures and an effective refund date of February 12, 2015. A final decision from FERC on this complaint is currently expected in 2017.


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Based on other recent FERC return on equity decisions,WPL’s Future Transfer of Investment in ATC - In June 2016, WPL received an order from the PSCW requiring WPL to transfer its investment in ATC to Alliant Energy IPLor an Alliant Energy subsidiary by December 31, 2022. In addition, WPL is required to obtain PSCW approval prior to transferring any additional capital or assets to ATC. WPL is currently evaluating the impacts of the June 2016 PSCW order on its results of operations and financial condition. Subsequent to WPL currently anticipate FERC’s decision on the MISO transmission owner complaints will reduce transmission owners’ current authorized return ontransferring its investment in ATC, future contributions to, and equity which is expected to reduce electric transmission service expense costs billed by ITC and ATC to their customers and result in lower equity incomeearnings and dividends from, the investment in ATC would occur at the entity to which the investment in ATC was transferred and would not be reflected in WPL’s consolidated financial statements. As a result, WPL’s earnings and cash flows from operations are expected to decrease subsequent to the future.transfer. This transfer is not expected to impact Alliant Energy and WPL have realized $7 million of reductions in the amount of equity income from ATC for the period from November 12, 2013 through September 30, 2015, including $4 million of reductions recorded during the nine months ended September 30, 2015. These reductions assume the final return on equity awarded to ATC will be 11.5% (including a 50 basis point incentive adder). Alliant Energy and WPL currently estimate each 25 basis point reduction in ATC’s authorized return on equity would reduce their annual pre-tax equity income from ATC by approximately $1 million.Energy’s consolidated financial statements.

ITC Request for Equity Adder - In January 2015, ITC requested approval from FERC to implement a 100 basis point incentive adder to its base return on equity for being an independent transmission company. In March 2015, FERC issued an order granting a 50 basis point incentive adder to ITC’s base return on equity for being an independent transmission company. The implementation of the adder will be retroactively applied back to April 2015 after resolution of a MISO transmission owner return on equity complaint filed in 2013 by a group of MISO industrial customer organizations. Alliant Energy and IPL are currently unable to determine any resulting changes to future electric transmission service charges pending a decision by FERC on the 2013 complaint. Alliant Energy and IPL currently expect to pass on the retail portion of any changes in electric transmission service costs billed by ITC to IPL to IPL’s retail electric customers through the transmission cost recovery rider.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Quantitative and Qualitative Disclosures About Market Risk are reported in “Other Matters - Market Risk Sensitive Instruments and Positions” in MDA.

ITEM 4. CONTROLS AND PROCEDURES

Alliant Energy’s, IPL’s and WPL’s management evaluated, with the participation of each of Alliant Energy’s, IPL’s and WPL’s CEO, CFO and Disclosure Committee, the effectiveness of the design and operation of Alliant Energy’s, IPL’s and WPL’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934) as of September 30, 20152016 pursuant to the requirements of the Securities Exchange Act of 1934.1934, as amended. Based on their evaluation, the CEO and the CFO concluded that Alliant Energy’s, IPL’s and WPL’s disclosure controls and procedures were effective as of the quarter ended September 30, 2015.2016.

There was no change in Alliant Energy’s, IPL’s and WPL’s internal control over financial reporting that occurred during the quarter ended September 30, 20152016 that has materially affected, or is reasonably likely to materially affect, Alliant Energy’s, IPL’s or WPL’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

IPL Consent Decree - As discussed in the combined Quarterly Report on Form 10-Q filed by Alliant Energy, IPL and WPL for the quarterly period ended June 30, 2015, refer to Note 13(e) for discussion of a Consent Decree that IPL entered into with the EPA, the Sierra Club, the State of Iowa and Linn County in Iowa in July 2015 and IPL’s obligations thereunder. In September 2015, the U.S. District Court for the Northern District of Iowa approved the Consent Decree, thereby resolving potential claims regarding CAA issues associated with emissions from IPL’s coal-fired generating facilities in Iowa.

ITEM 1A. RISK FACTORS

A summary of risk factors is included in Item 1A in the 20142015 Form 10-K and such risk factors have not changed materially from the items reported in the 20142015 Form 10-K.


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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

A summary of Alliant Energy common stock repurchases for the quarter ended September 30, 20152016 was as follows:
 Total Number Average Price Total Number of Shares Maximum Number (or Approximate Total Number Average Price Total Number of Shares Maximum Number (or Approximate
 of Shares Paid Per Purchased as Part of Dollar Value) of Shares That May Yet of Shares Paid Per Purchased as Part of Dollar Value) of Shares That May Yet
Period Purchased (a) Share Publicly Announced Plan Be Purchased Under the Plan (a) Purchased (a) Share Publicly Announced Plan Be Purchased Under the Plan (a)
July 1 through July 31 2,553
 
$59.61
 — N/A 3,751
 
$39.36
 — N/A
August 1 through August 31 1,901
 61.70
 — N/A 3,372
 38.93
 — N/A
September 1 through September 30 42
 56.58
 — N/A 92
 38.57
 — N/A
 4,496
 60.46
 —  7,215
 39.15
 — 

(a)All shares were purchased on the open market and held in a rabbi trust under the Alliant Energy Deferred Compensation Plan. There is no limit on the number of shares of Alliant Energy common stock that may be held under the Deferred Compensation Plan, which currently does not have an expiration date.

Refer to Note 6 for discussion of restrictions on each of IPL’s and WPL’s dividend restrictions and limitations on distributions to itstheir parent company.company, Alliant Energy.

ITEM 5. OTHER INFORMATION

On November 4, 2015, the Compensation and Personnel Committee of the Board of Directors of Alliant Energy approved an amendment to the Key Executive Employment and Severance Agreement (KEESA) with the current named executive officers of Alliant Energy, except for the CEO. Each KEESA provides executive officers with certain severance benefits in the event of a qualifying termination of employment in connection with a change in control. The KEESA amendment provides that if any portion of the payments under the KEESA or any other agreement with an executive officer would constitute an excess parachute payment subject to an excise tax under the Internal Revenue Code, then those payments will be reduced to $1 less than the maximum amount that the executive officer could receive without becoming subject to the excise tax, provided that this reduction will not apply if the fully calculated payment would result in a greater net after-tax amount payable to the executive officer. The KEESA of the CEO already includes this provision. Alliant Energy cannot currently determine the benefits, if any, to be paid in the future to its executive officers under the KEESA. The foregoing description of the KEESA amendment is qualified in its entirety by reference to the KEESA amendment, which is filed herewith as Exhibit 10.1 and is incorporated herein by reference.

ITEM 6. EXHIBITS

Exhibits for Alliant Energy, IPL and WPL are listed in the Exhibit Index, which is incorporated herein by reference.


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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Alliant Energy Corporation, Interstate Power and Light Company and Wisconsin Power and Light Company have each duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on the 6th4th day of November 2015.

2016.
ALLIANT ENERGY CORPORATION 
Registrant 
  
By: /s/ Robert J. DurianVice President, Chief Accounting Officer and ControllerTreasurer
Robert J. Durian(Principal Accounting Officer and Authorized Signatory)
INTERSTATE POWER AND LIGHT COMPANY 
Registrant 
  
By: /s/ Robert J. DurianVice President, Chief Accounting Officer and ControllerTreasurer
Robert J. Durian(Principal Accounting Officer and Authorized Signatory)
WISCONSIN POWER AND LIGHT COMPANY 
Registrant 
  
By: /s/ Robert J. DurianVice President, Chief Accounting Officer and ControllerTreasurer
Robert J. Durian(Principal Accounting Officer and Authorized Signatory)


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ALLIANT ENERGY CORPORATION
INTERSTATE POWER AND LIGHT COMPANY
WISCONSIN POWER AND LIGHT COMPANY

EXHIBIT INDEX

The following Exhibits are filed herewith or incorporated herein by reference.
Exhibit Number Description
4.1 Officer’s Certificate, dated as of August 18, 2015,September 15, 2016, creating IPL’s 3.40%3.70% Senior Debentures due AugustSeptember 15, 20252046 (incorporated by reference to Exhibit 4.1 to IPL’s Form 8-K, filed August 18, 2015September 15, 2016 (File No. 1-4117))
10.1 FormTerm Loan Credit Agreement, dated as of Amendment to KEESA, by and betweenOctober 7, 2016, among AEF, Alliant Energy, JPMorgan Chase Bank, N.A. and each of J.H. Gallegos, T.L. Hanson, D.R. Kopp, J.O. Larsen and R.J. Durianthe lender parties set forth therein (incorporated by reference to Exhibit 10.1 to Alliant Energy’s Form 8-K, filed October 7, 2016 (File No. 1-9894))
12.1 Ratio of Earnings to Fixed Charges for Alliant Energy
12.2 Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements for IPL
12.3 Ratio of Earnings to Fixed Charges for WPL
31.1 Certification of the Chairman, President and CEO for Alliant Energy
31.2 Certification of the Senior Vice President and CFO for Alliant Energy
31.3 Certification of the Chairman and CEO for IPL
31.4 Certification of the Senior Vice President and CFO for IPL
31.5 Certification of the Chairman and CEO for WPL
31.6 Certification of the Senior Vice President and CFO for WPL
32.1 Written Statement of the CEO and CFO Pursuant to 18 U.S.C.§1350 for Alliant Energy
32.2 Written Statement of the CEO and CFO Pursuant to 18 U.S.C.§1350 for IPL
32.3 Written Statement of the CEO and CFO Pursuant to 18 U.S.C.§1350 for WPL
101.INS* XBRL Instance Document
101.SCH* XBRL Taxonomy Extension Schema Document
101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB* XBRL Taxonomy Extension Label Linkbase Document
101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF* XBRL Taxonomy Extension Definition Linkbase Document

* Filed as Exhibit 101 to this report are the following documents formatted in Extensible Business Reporting Language (XBRL): (i) Alliant Energy’s, IPL’s and WPL’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 20152016 and 20142015; (ii) Alliant Energy’s, IPL’s and WPL’s Condensed Consolidated Balance Sheets as of September 30, 20152016 and December 31, 2014;2015; (iii) Alliant Energy’s, IPL’s and WPL’s Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 20152016 and 2014;2015; and (iv) the Combined Notes to Condensed Consolidated Financial Statements.


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