Wisconsin Power and Light Company finalizes settlement with EPA and Sierra Club

  Wisconsin Power and Light Company finalizes settlement with EPA and Sierra

Settlement is consistent with utility's long-term strategic plan

PR Newswire

MADISON, Wis., April 22, 2013

MADISON, Wis., April 22, 2013 /PRNewswire/ --Wisconsin Power and Light
Company (WPL), a subsidiary of Alliant Energy Corporation (NYSE:LNT), has
reached a settlement agreement with the United States Environmental Protection
Agency (EPA) and the Sierra Club to continue to build on its long history of
environmental stewardship, which includes a decrease in nitrogen oxide (NOx)
emissions by more than 50% over the last ten years and a reduction of mercury
emissions by about 30% over the last three years.

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"The settlement is a win-win for WPL and the communities we serve," explains
John Larsen, President – WPL. "The terms of the settlement are in line with
WPL's energy resources strategy announced in July 2012, which called for
investing more than $1 billion from 2012 through 2016 to transition WPL's
generation fleet to meet customers' energy needs in a cost effective manner
now and into the future, while continuing to limit emissions and advance
renewable energy. This agreement enables WPL to remain focused on its
operations and continue providing our customers with safe and reliable power."

Continued investments in cleaner air for Wisconsin:

Aside from this settlement, WPL has already completed several pollution
control projects and is also in the process of completing major emission
control investments as part of its energy resources strategy. In December
2012, WPL completed construction of an emission control project at Edgewater
Generating Station Unit 5 in Sheboygan to reduce NOx emissions. Construction
is already underway on equipment to reduce sulfur dioxide (SO2), particulate
matter and mercury emissions at Columbia Energy Center Units 1 & 2 near
Portage that WPL expects to be completed in 2014. When completed, combined
these and other planned projects will have created approximately 1,100 new
construction jobs.

Outlined in the settlement are further investment in environmental controls
and clean air technology that will provide additional emission reductions in
NOx, SO2, and particulate matter with the added benefit of also reducing
mercury emissions at WPL's coal-fired electric generating facilities, as well
as investment in other beneficial environmental projects.

Continued emission reductions:

As part of the settlement, WPL will:

  oInstall additional controls to reduce SO2 emissions from Edgewater Unit 5.
    WPL filed a construction application with the Public Service Commission of
    Wisconsin (PSCW) for this project on July 27, 2012 and expects a decision
    from the PSCW in the second quarter of this year;
  oInstall additional controls at Columbia Unit 2, to reduce NOx emissions,
    which will prompt a Certificate of Authority filing with the PSCW expected
    in the second quarter of 2014; and
  oAdhere to more stringent SO2 and NOx emission limits at its coal-fired
    generation fleet.

Unit retirements and fuel switching:

As previously announced as part of our energy resources strategy and also as
part of the settlement, WPL will:

  oRetire its older and less-efficient coal-fired units by the end of 2015;

       oNelson Dewey Units 1 & 2 located in Cassville, WI, which total
         approximately 200 MW; and
       oEdgewater Unit 3, located in Sheboygan, WI, which is approximately 70
         MW; and

  oEither convert to natural gas or retire Edgewater Unit 4, which is
    approximately 300 MW, by the end of 2018. WPL's ownership share of Unit 4
    is approximately 200 MW.

Conservation and clean energy:

WPL will invest $6.6 million in beneficial environmental projects over the
next five years such as:

  oLand and ecological restoration;
  oRenewable energy; and
  oEnergy efficiency projects

Under the terms of the settlement, WPL will also pay a $1.8 million civil


In 2009, WPL received a Notice of Violation (NOV) from the EPA alleging that
WPL made past modifications to the Columbia, Edgewater, and Nelson Dewey
Stations without following appropriate pre-construction review and permitting
requirements. In September 2010, the Sierra Club filed complaints against WPL
in the U.S. District Courts for the Western and Eastern Districts of Wisconsin
making similar allegations.

WPL maintains that it has been and remains in compliance with the law.
However, WPL entered into settlement discussions as a means to avoid costs to
its customers, unnecessary delays, and ongoing uncertainty associated with
litigation. Settlement negotiations resulted in a consent decree, which was
filed with the U.S. District Courts for the Western and Eastern Districts of

WPL is one of many U.S. utility companies to receive a NOV as part of the
EPA's Coal-Fired Power Plant Enforcement Initiative that began in 1998.
Including WPL's settlement, there have now been more than 25 Coal-Fired Power
Plant Enforcement Initiative-related settlements nationwide. This settlement
is the fourth involving a Wisconsin-based utility.

The settlement agreement was reached after negotiations involving WPL, the
co-owners of the Columbia Energy Center (Madison Gas and Electric Company and
Wisconsin Public Service Company), the co-owner of Edgewater Unit 4 (Wisconsin
Public Service Company), and the former co-owner of Edgewater Unit 5
(Wisconsin Electric Power Company), the EPA and Sierra Club. In total, all
co-owners have agreed to invest $8.5 million in beneficial environmental
projects over the next five years and pay a civil penalty totaling $2.45

Wisconsin Power and Light Company (WPL), based in Madison, Wis., provides
electric service to approximately 460,000 customers and natural gas service to
approximately 180,000 customers in more than 600 communities across central
and southern Wisconsin. WPL is committed to providing the energy and
exceptional service its customers and communities expect – safely, reliably,
and affordably. WPL is a subsidiary of Alliant Energy Corporation, for more
information, visit alliantenergy.com or call 1-800-ALLIANT (800-255-4268).

This press release contains forward-looking statements. These forward-looking
statements can be identified as such because the statements include words such
as "future," "will," "expects," or other words of similar import. Similarly,
statements that describe future plans or strategies, including all of the
future generation plans which form WPL's energy resources strategy and future
actions to comply with the EPA settlement, are also forward-looking
statements. 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: state or
federal regulatory actions or state or local government actions, including
inability to obtain all necessary approvals and permits; unanticipated
construction issues, delays or expenditures; current or future litigation,
regulatory investigations, proceedings or inquiries that could impede the
implementation of the WPL's plans; failure of equipment and technology to
perform as expected; changes to environmental regulations; changes to WPL's
access to capital markets; political conditions in WPL's service territories;
and economic conditions in WPL'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 and WPL
undertake no obligation to update publicly such statements to reflect
subsequent events or circumstances.

SOURCE Wisconsin Power and Light Company

Website: http://photos.prnewswire.com/prnh/20020405/LNTLOGO
Contact: Media, Steve Schultz, (608) 458-3285, or Investors, Susan Gille,
(608) 458-3956
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