COMPANY DATA:
COMPANY CONFORMED NAME: ALLIANT ENERGY CORPORATION
CENTRAL INDEX KEY:
STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC AND OTHER SERVICES COMB. [4931]
IRS NUMBER: 391380265
STATE OF INCORPORATION: WI
FISCAL YEAR END: 12/31
FILING VALUES:
FORM TYPE: 35-CERT/A
SEC ACT:
SEC FILE NUMBER: 070-10052
FILM NUMBER:
BUSINESS ADDRESS:
STREET 1: 4902 N Biltmore Lane
CITY: MADISON
STATE: WI
ZIP: 53718
BUSINESS PHONE: 608-458-3311
MAILING ADDRESS
STREET 1: P. O. BOX 77007
CITY: MADISON
STATE: WI
ZIP: 53707
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D. C. 20549
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
File No. 70-10052
REPORT PERIOD
April 1, 2003 through June 30, 2003
In the Matter of
ALLIANT ENERGY CORPORATION, ET AL
ALLIANT ENERGY CORPORATION ("AEC") hereby certifies on behalf of itself ,
Wisconsin Power and Light Company, Interstate Power and Light Company ("IPL"),
and Alliant Energy Corporate Services, Inc. "Services") that during the period
from April 1, 2003 through June 30, 2003 (the "Reporting Period"):
1(a). Alliant Energy Corporation issued commercial paper as follows:
April May June Quarter
----------------------------------------------------------------------------
Begin Balance $ 35,000,000 $ 190,000,000 $ 77,000,000 $ 35,000,000
CP Issued $ 3,468,000,000 $ 3,272,000,000 $ 1,772,000,000 $ 8,512,000,000
CP Matured $ 3,313,000,000 $ 3,385,000,000 $ 1,763,000,000 $ 8,461,000,000
Ending Balance $ 190,000,000 $ 77,000,000 $ 86,000,000 $ 86,000,000
1(b). The weighted average interest rate for the period for all commercial paper
was as follows:
April 2.000%
May 2.000%
June 1.944%
Quarter 1.991%
1(c). Alliant Energy Corporation borrowed from Banks as follows:
April May June Quarter
-------------------------------------------------------------------------
Begin Balance $ 235,000,000 $ 83,000,000 $ - $ 235,000,000
CP Issued $ 1,434,000,000 $ 617,000,000 $ - $ 2,051,000,000
CP Matured $ (1,586,000,000) $ (700,000,000) $ - $ (2,286,000,000)
Ending Balance $ 83,000,000 $ - $ - $ -
1(d). The weighted average interest rate for the period for the bank borrowings
was as follows:
April 4.019%
May 4.192%
June N/A
Quarter 4.040%
2(a). Interstate Power and Light Company issued commercial paper as follows:
April May March Quarter
-------------------------------------------------------------------------
Begin Balance $ 75,500,000 $ 109,000,000 $ 120,000,000 $ 75,500,000
CP Issued $ 346,500,000 $ 315,000,000 $ 373,500,000 $ 1,035,000,000
CP Matured $ 313,000,000 $ 304,000,000 $ 337,600,000 $ 954,600,000
Ending Balance $ 109,000,000 $ 120,000,000 $ 155,900,000 $ 155,900,000
2(b). Weighted Average for the interest rate for the period for commercial paper
was as follows:
April 1.434%
May 1.427%
June 1.370%
Quarter 1.410%
3(a). Interstate Power and Light Company borrowed from Bank as follows:
April May March Quarter
---------------------------------------------------------------------------
Begin Balance $ - $ - $ 11,000,000 $ -
CP Issued $ 19,000,000 $ 41,000,000 $ - $ 60,000,000
CP Matured $ 19,000,000 $ 30,000,000 $ 11,000,000 $ 60,000,000
Ending Balance $ - $ 11,000,000 $ - $ -
3(b). The weighted average interest rate for the period for the bank borrowings
was as follows:
April 4.192%
May 4.192%
June 4.192%
Quarter 4.211%
4(a). For each of the companies participating in the Utility Money Pool during
the Reporting Period, the maximum principal amount of short-term borrowings
outstanding from the Utility Money Pool, sources other than the Utility Money
Pool, and the maximum total short-term borrowings outstanding during the
Reporting Period, and the Securities and Exchange Commission ("SEC") borrowing
limit for each participant as of the end of the Reporting Period were as
follows:
Maximum
Maximum Other Maximum
Money Pool Short-Term Total SEC
Company Borrowings Borrowings Borrowings Limit
IPL (*) 0 155,900,000 155,900,000 250,000,000
WP&L (**) 0 84,500,000 84,500,000 NA
SERVICES (***) 112,479,745 0 112,479,745 NA
(*) IPL ceased borrowing from the Money Pool as of October 11, 2002.
(**) All borrowings by WP&L from the Money Pool are exempt under Rule 52(a) and
are shown here for information purposes only. WPL ceased borrowings from
the Money Pool as of July 25, 2002.
(***)Borrowings by Services are exempt under Rule 52(b) and are shown here for
information purposes only.
5. During the Reporting Period, the weighted average interest rate for
borrowings through the Money Pool was 2.341%.
6. The maximum amount of AEC's short-term borrowings on behalf of itself and the
above named participants in the Utility Money Pool during the Reporting Period,
and its SEC limit as of the end of the Reporting Period, were as follows:
Maximum Maximum Maximum
Loans to Corporate Short-Term SEC
Money Pool Borrowings Borrowings Limit
AEC $112,479,745 $180,520,255 $ 293,000,000 $1,000,000,000
________________
Said transactions have been carried out in accordance with the terms and
conditions of, and for the purpose represented in, the Form U-1
Application-Declaration, as amended, of AEC, et al, in File 70-10052, and in
accordance with the terms and conditions of the SEC's order dated June 21,2002,
permitting said Application-Declaration to become effective.
DATED: August 4, 2003
ALLIANT ENERGY CORPORATION
INTERSTATE POWER AND LIGHT COMPANY
ALLIANT ENERGY CORPORATE SERVICES INC.
BY: ALLIANT ENERGY CORPORATION
BY: /s/ Thomas L. Hanson
_________________________________
Thomas L. Hanson
Vice President and Treasurer
BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION
LeRoy Koppendrayer Chair
Gregory Scott Commissioner
Marshall Johnson Commissioner
Phyllis Reha Commissioner
Steven F. Price SERVICE DATE: AUG - 7 2003
Assistant Treasurer
Interstate Power and Light Company DOCKET NO. E,G-001/S-03-187
P.O. Box 77007
Madison, WI 53707-1007
In the Matter of a Request by Interstate Power and Light Company for Approval of
an Amendment to its Capital Structure for Calendar Year 2003, Ending March 31,
2004
The above entitled matter has been considered by the Commission and the
following disposition made:
The Commission's March 28, 2003 Order is revised as follows:
Approved Interstate's requested March 31, 2004 capital structure;
Approved a-/+ 10 percent range around Interstate's Post-Equity Infusion
Average common equity, preferred equity and long-term debt; and
Approved Interstate's total capitalization contingency, not to exceed 5
percent ver its revised projected March 31, 2004 total capitalization,
including $250 million of short-term debt (i.e. $2,446.3 million).
This decision is issued by the Commission's consent calendar subcommittee, under
a delegation of authority granted under Minn. State. 216A.03, subd. 8 (a).
Unless a party, a participant, or a Commissioner files an objection to this
decision within ten days of receiving it, it will become the Order of the full
Commission under Minn. Stat. 216A.03, subd. 8 (b).
The Commission agrees with and adopts the recommendations of the Department of
Commerce which are attached and hereby incorporated in the Order.
BY ORDER OF THE COMMISSION
/s/ Burl W Haar
---------------------------------
Burl W. Haar
Executive Secretary
(S E A L)
This document can be made available in alternative formats (i.e., large
print or audio tape) by calling (651) 297-4596 (voice), (651) 297-1200 (TTY), or
1-800-627-3529 (TTY relay service).
Minnesota Department of Commerce
85 7th Place East, Suite 500
St. Paul, Minnesota 55101-2198
651.296.4026 fax 651.297.1959 tty 651.297.3067
August 1, 2003
Burl W. Haar
Executive Secretary
Minnesota Public Utilities Commission
121 7th Place East, Suite 350
St. Paul, Minnesota 55101-2147
RE: Comments of the Minnesota Department of Commerce
Docket No. E,G001/S-03-187
Dear Dr. Haar:
Attached are the comments of the Energy Division of the Department of Commerce
in the following matter:
A petition of the Interstate Power and Light Company for approval of an
amendment to its capital structure for calendar year 2003, ending March 31,
2004.
The petition was filed on July 22, 2003 by:
Steven F. Price
Assistant Treasurer
Interstate Power and Light Company
PO Box 77007
Madison, Wisconsin 53707-1007
The Department recommends approval as modified and is available to answer any
questions the Commission may have.
Sincerely,
/s/ Dale V Lusti
---------------------
DALE V. LUSTI
Financial Analyst
DVL/jl
Attachment
Market Assurance: 1.800.657.3602 Licensing: 1.800.657.3978
Energy Information: 1.800.657.3710 Unclaimed Property: 1.800.925.5668
www.commerce.state.mn.us An Equal Opportunity Employer
Before The Minnesota Public Utilities Commission
Comments Of The
Minnesota Department Of Commerce
Docket No. E,G001/S-03-187
I. BACKGROUND
On February 10, 2003, Interstate Power and Light Company (Interstate, IPL or the
Company) petitioned the Minnesota Public Utilities Commission for approval of
its March 31, 2004 proposed capital structure. More specifically, IPL sought
approval of:
o Interstate's requested March 31, 2004 capital structure with:
- Common equity of 45.3 percent,
- Preferred equity of 7.5 percent, and
- Long-term Debt of 39.0 percent;
o A contingency range of -/+25 percent range around Interstate's March 31,
2004 estimated common equity, preferred equity and long term debt;
o Interstate's proposed total capitalization contingency, not to exceed 5
percent over its projected March 31, 2004 total capitalization, including
$250 million of short-term debt (i.e., $2,451.8 million); and
o Interstate's proposed short-term debt, not to exceed $250 million at any
time during the fiscal year ending March 31, 2004.
The Department's March 14, 2003 recommendation was as follows:
o Approve Interstate's requested March 31, 2004 capital structure;
o Approve a-/+ 10 percent range around Interstate's Pre-Equity Infusion
Average common equity, preferred equity and long-term debt;
Docket No. E,G001/S-03-187
Analyst assigned: Dale V. Lusti
Page 2
o Approve a-/+ 10 percent range around Interstate's Post-Equity Infusion
Average common equity, preferred equity and long-term debt;
o Approve Interstate's total capitalization contingency, not to exceed 5
percent over its projected March 31, 2004 total capitalization, including
$250 million of short-term debt (i.e., $2,451.8 million);
o Approve Interstate's short-term debt, not to exceed $250 million at any
time during the fiscal year ending March 31, 2004; and
o Allow the Company not to seek Commission approval before issuing securities
as long as issuing these securities will not result in a capital structure
that is out of compliance with this Order.
On March 28, 2003, the Commission approved the Department's recommendation as
stated above.
II. SUMMARY OF INTERSTATE'S PROPOSAL
On July 22, 2003, Interstate petitioned the Commission for approval of an
amendment to its March 31, 2004 proposed capital structure, effective beginning
in August 2003. Due to current market conditions, IPL deems it advisable to move
up its planned $35 million issuance of preferred stock from December 2003 to
August 2003. If the issuance is moved up to August 2003, the preferred equity
ratio in that month would likely fall outside the allowed range. As a result,
IPL is seeking approval of the following new ranges for common equity, preferred
stock and long-term debt:
Post-Equity Infusion
Revised
Average August 2003
Through March 2004
Component Proposed Range Capital Structure
-----------------------------------------------------------------------------
Common Equity 42.0%- 51.4% 46.7%
Preferred Equity 7.6 - 9.3 8.5
Long-term Debt 36.8 - 45.0 40.9
IPL requests that the maximum total capitalization and the maximum short-term
debt limits remain as previously ordered.
Docket No. E,G001/S-03-187
Analyst assigned: Dale V. Lusti
Page 3
III. DEPARTMENT ANALYSIS
The Department believes that IPL has requested the revision to allow for the $35
million issuance of preferred stock during August 2003 rather than in December
2003 for the following two reasons:
o First, IPL's parent (Alliant) infused only $119 million of common equity
into IPL during July 2003 versus the anticipated $150 million identified in
the initial petition which was the basis for the Commission's March 28,
2003 Order; and
o Second, although IPL has not specifically identified the amount of savings,
it expects that the interest rates will have increased by December 2003,
thus making the issuance more costly.
After discussion with the utility, the Department has determined that IPL's
liquidity would not be detrimentally affected if the Commission determines not
to approve IPL's requested revision. ---
The Department agrees with Interstate that, absent a revision to the Commission
approved capital structure, the Company would be outside its approved range for
preferred equity beginning in August 2003. However, it should be noted that
neither the common equity nor the long-term debt ratios would be outside the
approved ranges.
Similar to the Department's discussion in its March 14, 2003 Comments, the
Department notes that the timing of a single equity issuance can have a large
impact on the debt and equity ratios, resulting in a utility being out of
compliance with its contingency ranges. Therefore, the Department agrees with
Interstate that it is reasonable to modify the capital structure to reflect both
the change in the timing of the preferred stock issuance as well as the most
recent actual information and currently projected data.
From a regulatory point of view, the use of a tightened contingency range as
recommended by the Department and approved by the Commission in its Match 28,
2003 Order creates the occasional need for revisions such as this. This allows
the Department and the Commission the opportunity to be fully aware of changes
as they occur, and how the may affect ratepayers.
As a result, the Department recommends that the Commission approve Interstate's
proposed post-equity capital structure for the months August 2003 through March
2004. It should be noted that the month of August 2003, as compared to the month
of July 2003 (as identified in the Commission's March 28, 2003 Order), should be
the first month of the revised capital structure in that the preferred stock
issuance will occur during the month of August 2003.
Docket No. E,G001/S-03-187
Analyst assigned: Dale V. Lusti
Page 4
One minor modification that the Department recommends is that Interstate be
allowed a maximum capitalization contingency of $2,446.3 million (5 percent
above its revised March 31, 2004 total capitalization of $2,329.8 million,
including $250 million of short-term debt). The Department's calculation is
based on the revised capitalization proposed in the filing rather than the one
previously approved in the March 28, 2003 Order.
IV. SUMMARY AND RECOMMENDATION
The Department summarizes its recommendations to revise the Commission's March
28, 2003 Order as follows:
o Approve Interstate's requested March 31, 2004 capital structure;
o Approve a-/+10 percent range around Interstate's Post-Equity Infusion
Average common equity, preferred equity and long-term debt; and
o Approve Interstate's total capitalization contingency, not to exceed 5
percent over its revised projected March 31, 2004 total capitalization,
including $250 million of short- term debt (i.e., $2,446.3 million).
/jl
RECEIVED Interstate Power and Light Co.
An Alliant Energy Company
AUG - 4 2003 Corporate Headquarters
MN PUBLIC UTILITIES COMMISSON Alliant Tower
200 First Street SE
Box 351
Cedar Rapids, IA 52406-0351
Office: 1.800.822.4348
www.alliantenergy.com
August 1, 2003
Dr. Burl W. Haar
Executive Secretary
State of Minnesota Public Utilities Commission
121 7th Place East, Ste. 350 Legal Dept. Fax:608/458-4820
St. Paul, MN 55101 Writer's direct line:608/458-3951
RE: Interstate Power and Light Company's Request to Modify Capital Structure
Order Issued on March 28, 2003 in Docket No. E,G001/S-03-187
Dear Dr. Haar:
Interstate Power and Light Company (IPL) agrees with the recommendations filed
by the Department of Commerce (DOC) in this matter. IPL will not file any
further reply and respectfully requests that the Commission approve its Petition
in the manner recommended by the DOC.
IPL appreciates the efforts and consideration of the DOC and Commission
regarding this docket.
Very truly yours,
/s/ Ritchie J. Sturgeon
--------------------------
Ritchie J. Sturgeon
Senior Regulatory Attorney
Enclosures
cc: Attached service list