Alliant Energy extends ownership options for Riverside modernization project

MADISON, Wis., Feb. 3, 2016 /PRNewswire/ -- Alliant Energy's Wisconsin utility has negotiated agreements with neighboring utilities and electric cooperatives that provide partial ownership options for its proposed Riverside Energy Center modernization project near Beloit, Wis. The options represent an opportunity for Alliant Energy's partners to benefit from this cost-effective, advanced-performing natural gas facility.   

The company has extended partial ownership options to wholesale customers, including Adams-Columbia Electric Cooperative and Rock Energy Cooperative. The electric cooperatives' ownership interests would be tied to wholesale power-supply agreements with Alliant Energy extending out to at least 2026. These agreements would allow the cooperatives to buy in during the construction phase of the project in an aggregate, maximum amount of 55 megawatts, with each required to make an election by September 2016.

"We are excited by the opportunity to have an ownership interest in Alliant Energy's Riverside modernization project," said Martin Hillert, Jr., CEO and General Manager of Adams-Columbia Electric Cooperative. "We've enjoyed the customer relationship with Alliant Energy for decades. This option both strengthens that arrangement and provides direct benefits to our members."

In December, the company announced an agreement with Wisconsin Public Service Corp. (WPS) that would allow WPS to acquire up to 200 megawatts of the facility over the course of four years, with no more than 100 megawatts available in the first two years. Recently, Alliant Energy reached an agreement with Madison Gas & Electric Co. (MGE) under which MGE may acquire up to 50 megawatts of the Riverside modernization in the first five years of its operation, with no more than 25 megawatts available in the first two years.

"The Riverside modernization project will help control energy costs and offer benefits to our customers and other utility customers across the state," said Patricia Kampling, Alliant Energy Chairman, President and CEO. "We are pleased that our neighbor utilities realize the benefits of our proposed facility and want to be involved in this exciting and innovative project."

Recent construction proposals received by Alliant Energy indicate that the Riverside modernization project will be able to achieve greater output than previously expected, boosting the likely capacity from 650 megawatts to approximately 700 megawatts without increasing the $700 million project cost estimate (which excludes AFUDC and transmission costs). This development has created more opportunity for potential joint ownership.

The Public Service Commission of Wisconsin (PSCW) is reviewing the proposed Riverside modernization project. A final decision is expected this spring. If approved, the start of construction is planned for early 2017, with project completion by early 2020.

Alliant Energy Corporation's Wisconsin utility subsidiary, Wisconsin Power and Light Company (WPL), utilizes the trade name of Alliant Energy. The Wisconsin utility is based in Madison, Wis., and provides electric service to 465,000 customers and natural gas service to approximately 185,000 customers in more than 600 communities across central and southern Wisconsin. The employees of Alliant Energy focus on delivering the energy and exceptional service their customers and communities expect – safely, efficiently, and responsibly. Visit alliantenergy.com or call 1-800-ALLIANT for more information. Alliant Energy Corporation is traded on the New York Stock Exchange under the symbol LNT.

Key provisions of agreements providing book-value purchase options for partial ownership

Alliant Energy's Wisconsin utility has entered into agreements with neighboring utilities and electric cooperatives that, if the Riverside modernization project is approved, would provide book-value purchase options for partial ownership of the facility. The timing and ownership amounts of the options vary and the WPS and MGE options assume an in-service date of early 2020.

WPS and MGE options

• Starting on the date the Riverside modernization project goes into service and subject to approval by the PSCW, WPS's options would allow it to acquire up to 200 megawatts of the facility over the course of four years, with no more than 100 megawatts available in the first two years.
• Similarly, MGE could acquire up to 50 megawatts over five years, with no more than 25 megawatts available in the first two years.
• If WPS exercises its options, WPL may exercise reciprocal options to purchase up to 200 megawatts of any natural-gas combined-cycle plant that either WPS or its affiliated utility Wisconsin Electric Power Company (WEPCO), places in service before approximately 2030.
• Alliant Energy will also work cooperatively with WPS and WEPCO in developing utility-scale renewable resources (greater than 50 megawatts) in Wisconsin over the next 10 years.

ACEC and REC options

• Alliant Energy has executed term sheets with the ACEC and the REC (Co-ops) to which Alliant Energy currently sells wholesale power.
• The Co-ops' ownership interests would be tied to wholesale power-supply agreements with Alliant Energy extending out to at least 2026.
• The term sheets allow the Co-ops to buy in during the construction phase of the project in an aggregate, maximum amount of 55 megawatts, with each Co-op required to make an election by September 2016.
• Because the proposed facility will continue to serve the wholesale load Alliant Energy assumed in its project analysis, the Co-op ownership arrangement will align Alliant Energy with the Co-ops for many years to come, preserving important wholesale customers and promoting certainty in long-term planning.

Columbia Energy Center capital expenditures

• The agreements with WPS and MGE provide that the parties will negotiate separate contracts under which WPS and MGE may forgo certain capital expenditures at another jointly owned facility, the Columbia Energy Center, which Alliant Energy would then incur in exchange for a proportional increase in its ownership share.
• The Columbia Energy Center arrangement, which will expire on the Riverside modernization project in-service date, excludes capital expenditures related to the recently approved project to install a selective catalytic reduction system at Columbia Energy Center Unit 2. 

This news release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "will," "estimate," "expected," "planned," or other words of similar import. Any parties' possible actions under the option agreements are also forward-looking. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: whether or not the option-holders exercise their options and to what level; whether and to what extent MG&E or WPS forgoes capital expenditures at the Columbia Energy Center; unanticipated construction issues, delays or expenditures; failure of equipment and technology to perform as expected; failure to obtain governmental approvals; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of Alliant Energy's plans; political conditions in Alliant Energy's service territories; access to capital markets; and economic conditions in Alliant Energy's service territory. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy Corporation and Wisconsin Power and Light Company undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.

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SOURCE Alliant Energy Corporation