UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning April 21, 1998 and Ending December 31, 1998
-------------- -----------------
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
ALLIANT ENERGY CORPORATE SERVICES, INC.
----------------------------------------------------------------------
A Subsidiary Service Company
-----------------------------------------------------
("Mutual" or "Subsidiary")
Date of Incorporation December 8, 1997 If not Incorporated, Date of
---------------- Organization
---------------
State or Sovereign Power under which Incorporated or Organized Iowa
---------
Location of Principal Executive Office of Reporting Company Dubuque, Iowa
-------------
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
John E. Ebright, Vice President-Controller,
------------------------------------------
(Name) (Title)
222 W. Washington Avenue, Madison, Wisconsin 53701
--------------------------------------------------
(Address)
Name of Principal Holding Company Whose Subsidiaries
are served by Reporting Company
INTERSTATE ENERGY CORPORATION, DOING BUSINESS AS ALLIANT ENERGY
---------------------------------------------------------------
<PAGE>
Holding Company Act Forms
INSTRUCTIONS FOR USE OF FORM U-13-60
1. TIME OF FILING.
Rule 94 provides that on or before the first day of May in each calendar
year, each mutual service company and each subsidiary service company as to
which the Commission shall have made a favorable finding pursuant to Rule
88, and every service company whose application for approval or declaration
pursuant to Rule 88 is pending shall file with the Commission an annual
report on Form U-13-60 and in accordance with the Instructions for that
form.
2. NUMBER OF COPIES.
Each annual report shall be filed in duplicate. The company should prepare
and retain at least one extra copy for itself in case correspondence with
reference to the report becomes necessary.
3. PERIOD COVERED BY REPORT.
The first report filed by any company shall cover the period from the date
the Uniform System of Accounts was required to be made effective as to that
company under Rules 82 and 93 to the end of that calendar year. Subsequent
reports should cover a calendar year.
4. REPORT FORMAT.
Reports shall be submitted on the forms prepared by the Commission. If the
space provided on any sheet of such form is inadequate, additional sheets
may be inserted of the same size as a sheet of the form or folded to each
size.
5. MONEY AMOUNTS DISPLAYED.
All money amounts required to be shown in financial statements may be
expressed in whole dollars, in thousands of dollars or in hundred thousands
of dollars, as appropriate and subject to provisions of Regulation S-X
((xi) 210.3-01(b)).
6. DEFICITS DISPLAYED.
Deficits and other like entries shall be indicated by the use of either
brackets or a parenthesis with corresponding reference in footnotes.
(Regulation S-X, (xi) 210-3.01(c)).
7. MAJOR AMENDMENTS OR CORRECTIONS.
Any company desiring to amend or correct a major omission or error in a
report after it has been filed with the Commission shall submit an amended
report including only those pages, schedules, and entries that are to be
amended or corrected. A cover letter shall be submitted requesting the
Commission to incorporate the amended report changes and shall be signed by
a duly authorized officer of the company.
8. DEFINITIONS.
Definitions contained in Instruction 01-8 to the Uniform System of Accounts
for Mutual Service Companies and Subsidiary Service Companies, Public
Utility Holding Company Act of 1935, as amended February 2, 1979 shall be
applicable to words or terms used specifically within this Form U-13-60.
9. ORGANIZATION CHART.
The service company shall submit with each annual report a copy of its
current organization chart.
10. METHODS OF ALLOCATION.
The service company shall submit with each annual report a listing of the
currently effective methods of allocation being used by the service company
and on file with the Securities and Exchange Commission pursuant to the
Public Utility Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED.
The service company shall submit with each annual report a copy of the
annual statement supplied to each associate company in support of the
amount of compensation for use of capital billed during the calendar year.
2
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS Page
Number
- ---------------------------------------------------------------------------------------------------
Schedule or Account
Description of Schedules and Accounts Number
- --------------------------------------------------------------------------------
<S> <C> <C>
COMPARATIVE BALANCE SHEET Schedule I 5-6
SERVICE COMPANY PROPERTY Schedule II 7-8
ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY
PROPERTY Schedule III 9
INVESTMENTS Schedule IV 10
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 11
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 12
STORES EXPENSE UNDISTRIBUTED Schedule VII 13
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 14
MISCELLANEOUS DEFERRED DEBITS Schedule IX 15
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 16
PROPRIETARY CAPITAL Schedule XI 17
LONG-TERM DEBT Schedule XII 18
CURRENT AND ACCRUED LIABILITIES Schedule XIII 19
NOTES TO FINANCIAL STATEMENTS Schedule XIV 20-23
COMPARATIVE INCOME STATEMENT Schedule XV 24
ANALYSIS OF BILLING-ASSOCIATE COMPANIES Account 457 25
ANALYSIS OF BILLING-NONASSOCIATE COMPANIES Account 458 26
ANALYSIS OF CHARGES FOR SERVICE-ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 27
SCHEDULE OF EXPENSE BY DEPARTMENT OR
SERVICE FUNCTION Schedule XVII 28-31
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 32
OUTSIDE SERVICES EMPLOYED Account 923 33-37
EMPLOYEE PENSIONS AND BENEFITS Account 926 38
GENERAL ADVERTISING EXPENSES Account 930.1 39-40
MISCELLANEOUS GENERAL EXPENSES Account 930.2 41
RENTS Account 931 42
TAXES OTHER THAN INCOME TAXES Account 408 43
DONATIONS Account 426.1 44
OTHER DEDUCTIONS Account 426.5 45
NOTES TO STATEMENT OF INCOME Schedule XVIII 46
- ---------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
- -------------------------------------------------------------------------------
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS Page
Number
- -------------------------------------------------------------------------------
Description of Reports or Statements
- ---------------------------------------------------------------
EXECUTIVE ORGANIZATION CHART 48
METHODS OF ALLOCATION 49-52
ANNUAL STATEMENT OF COMPENSATION FOR USE 53
OF CAPITAL BILLED
- --------------------------------------------------------------------------------
4
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of Company as of December 31 of the current and prior year
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
ACCOUNT ASSET AND OTHER DEBITS AS OF DECEMBER 31
- -------------------------------------------------------------------------------------------------------------------------
CURRENT PRIOR
-------------------------------------
<S> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $ 537,118 -
107 Construction work in progress (Schedule II) - -
-------------------------------------
Total Property 537,118 -
-------------------------------------
108 Less accumulated provision for depreciation and
amortization of service company property (Schedule III) (104,440) -
-------------------------------------
Net Service Company Property 432,678 -
-------------------------------------
INVESTMENTS
123 Investments in associate companies (Schedule IV) 3,514,000 -
124 Other investments (Schedule IV) - -
-------------------------------------
Total Investments 3,514,000 -
-------------------------------------
CURRENT AND ACCRUED ASSETS
131 Cash 695,990 -
134 Special deposits - -
135 Working funds - -
136 Temporary cash investments (Schedule IV) 5,495,633 -
141 Notes receivable - -
143 Accounts receivable 4,281,460 -
144 Accumulated provision for uncollectible accounts (54,743) -
146 Accounts receivable from associate companies (Schedule V) 45,635,089 -
152 Fuel stock expenses undistibuted (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 1,006,034 -
174 Miscellaneous current and accrued assets (Schedule VIII) - -
-------------------------------------
Total Current and Accrued Assets 57,059,463 -
-------------------------------------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts (47,489) -
186 Miscellaneous deferred debits (Schedule IX) - -
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes - -
-------------------------------------
Total Deferred Debits (47,489) -
-------------------------------------
TOTAL ASSETS AND OTHER DEBITS $ 60,958,652 -
=====================================
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
SCHEDULE I - COMPARATIVE BALANCE SHEET
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- -------------------------------------------------------------------------------------------------------------------------
CURRENT PRIOR
-------------------------------------
<S> <C> <C> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $ 1 -
211 Miscellaneous paid in capital (Schedule XI)
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI)
-------------------------------------
Total Proprietary Capital 1 -
-------------------------------------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII)
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt-debit
-------------------------------------
Total Long-term Debt - -
-------------------------------------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable
232 Accounts payable 34,950,132 -
233 Notes payable to associate companies (Schedule XIII) 8,030,086
234 Accounts payable to associate companies (Schedule XIII) 6,328,398 -
236 Taxes accrued 201,519 -
237 Interest accrued
238 Dividends declared
241 Tax collections payable 1,137,970 -
242 Miscellaneous current and accrued liabilities (Schedule XIII) 6,687,607 -
-------------------------------------
Total Current and Accrued Liabilities 57,335,712 -
-------------------------------------
DEFERRED CREDITS
253 Other deferred credits 3,622,939 -
255 Accumulated deferred investment tax credits
-------------------------------------
Total Deferred Credits 3,622,939 -
-------------------------------------
-------------------------------------
282 ACCUMULATED DEFERRED INCOME TAXES
-------------------------------------
-------------------------------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 60,958,652 -
=====================================
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE II - SERVICE COMPANY PROPERTY
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
BALANCE AT RETIREMENT BALANCE AT
DESCRIPTION BEGINNING ADDITIONS OR OTHER CLOSE OF
OF YEAR SALES CHANGES (1) YEAR
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SERVICE COMPANY Property
Account
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT $ 537,118 $ 537,118
304 LAND AND LAND
RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT (2)
308 OFFICE FURNITURE
AND EQUIPMENT
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY (3)
-------------------------------------------------------------------------------------------------
SUB-TOTAL - $ 537,118 - - $ 537,118
-------------------------------------------------------------------------------------------------
107 CONSTRUCTION
WORK IN
PROGRESS (4)
-------------------------------------------------------------------------------------------------
TOTAL - $ 537,118 - - $ 537,118
- ---------------------------------------------------------------------------------------------------------------------------------
1 PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
None
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
SCHEDULE II - CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
2 SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF
EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR.
- ---------------------------------------------------------------------------------------------------------------------------------
BALANCE AT
SUBACCOUNT DESCRIPTION ADDITIONS CLOSE
OF YEAR
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
None
---------------------------------------
TOTAL
- ---------------------------------------------------------------------------------------------------------------------------------
3 DESCRIBE OTHER SERVICE COMPANY PROPERTY:
None
- ---------------------------------------------------------------------------------------------------------------------------------
4 DESCRIBE CONSTRUCTION WORK IN PROGRESS:
None
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF
SERVICE COMPANY PROPERTY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
ADDITIONS
BALANCE AT ------------------------------------------------------- BALANCE AT
DESCRIPTION BEGINNING CHARGED RETIREMENTS OTHER CHANGES CLOSE OF
OF YEAR TO ADD (DEDUCT) (1) YEAR
ACCOUNT 403
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Account
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT $ 104,440 $ 104,440
304 LAND AND LAND
RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT
308 OFFICE FURNITURE
AND EQUIPMENT
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1 PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: None
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE IV - INVESTMENTS
- --------------------------------------------------------------------------------
INSTRUCTIONS: Complete the following schedule concerning investments. Under
Account 124, "Other Investments", state each investment
separately with description, including, the name of issuing
company, number of shares or principal amount, etc. Under Account
136, "Temporary Cash Investments", list each investment
separately.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 123-INVESTMENT IN ASSOCIATE COMPANIES
Interstate Energy Corporation $ 28,358
IES Utilities Inc. 1,312,374
Wisconsin Power & Light Company 1,437,472
Interstate Power Company 609,398
Alliant Energy Resources, Inc. 126,398
-------------------------------
- 3,514,000
-------------------------------
ACCOUNT 124-OTHER INVESTMENTS
ACCOUNT 136-TEMPORARY CASH INVESTMENTS -------------------------------
Money Pool - Dreyfus - 5,495,633
-------------------------------
-------------------------------
TOTAL - $9,009,633
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
- --------------------------------------------------------------------------------
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided
accommodation or convenience payments for associate companies, a
separate listing of total payments for each associate company by
sub account should be provided.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 146 ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
Interstate Energy Corporation (dba Alliant Energy) $ 132,264
IES Utilities Inc. 19,600,806
Wisconsin Power and Light Company 18,158,274
Interstate Power Company 6,691,356
Alliant Energy Resources, Inc. 703,490
Alliant Energy Transportation Inc. 2,892
Cedar Rapids and Iowa City Railway Company 62,769
Alliant Enery Transfer Services Inc. 140
IEI Barge Services Inc. 16,246
Industrial Energy Applications, Inc. 19,489
Whiting Petroleum Corporation 20,160
Iowa Land and Building Company 73,865
Prairie Ridge Business Park L.P. 64
Alliant Energy International, Inc. 137,593
Alliant Energy Investments Inc. 198
Alliant International New Zealand Limited 8,431
IEA-HES, L.L.C. 1,797
Energys, Inc. 424
RMT, Inc. 2,248
Heartland Properties, Inc. 1,815
Village Lakeshares, L.P. 763
Alliant Energy Investco, Inc. 5
-------------------------------------
TOTAL $ 45,635,089
- ----------------------------------------------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
-------------
None
-------------
TOTAL PAYMENTS
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
- --------------------------------------------------------------------------------
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount
attributable to each associate company. Under the section headed
"Summary", listed below give an overall report of the fuel
functions performed by the service company.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED None
----------------------------------------------------
TOTAL
- ---------------------------------------------------------------------------------------------------------------------------
SUMMARY:
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE VII
STORES EXPENSE UNDISTRIBUTED
- --------------------------------------------------------------------------------
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expense during the year and indicate amount attributable
to each associate company.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED None
-------------------------------------------
TOTAL
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 174-MISCELLANEOUS CURRENT AND
ACCRUED ASSETS None
----------------------------------
TOTAL
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each
class.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 186-MISCELLANEOUS DEFERRED DEBITS None
----------------------------------
TOTAL
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service
corporation during the year.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES None
---------------------
TOTAL
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
--------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE XI - PROPRIETARY CAPITAL
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER OF PAR OR STATED OUTSTANDING
NUMBER CLASS OF STOCK SHARES VALUE CLOSE OF PERIOD
AUTHORIZED PER SHARE ----------------------
NO. OF TOTAL
SHARES AMOUNT
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 100 $ 0.01 100 $1.00
- --------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of transactions
which gave rise to the reported amounts.
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
ACCOUNT 211-MISCELLANEOUS PAID-IN CAPITAL -
ACCOUNT 215-APPROPRIATED RETAINED EARNINGS -
-----------------
TOTAL -
- --------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between compensation
for the use of capital owed or net loss remaining from servicing nonassociates per the General Instructions of the
Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentage,
amount of dividend, date declared and date paid.
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ACCOUNT 216-
UNAPPROPRIATED
RETAINED EARNINGS - - - -
----------------------------------------------------------------------------
TOTAL - - - -
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE XII -- LONG-TERM DEBT
- --------------------------------------------------------------------------------
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes, and advances on open account. Names of associate
companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224--Other long-term debt provide the
name of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
TERMS OF OBLIGATION BALANCE AT
NAME OF CREDITOR CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING ADDITIONS
OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ACCOUNT 223--ADVANCES FROM ASSOCIATE COMPANIES:
None
ACCOUNT 224--OTHER LONG-TERM DEBT:
None
-------------------------------------------------------------
TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------
BALANCE AT
NAME OF CREDITOR ADDITIONS DEDUCTIONS(1) CLOSE
OF YEAR
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ACCOUNT 223--ADVANCES FROM ASSOCIATE COMPANIES: -
None
ACCOUNT 224--OTHER LONG-TERM DEBT: -
None
----------------------------------------------
TOTAL -
- ----------------------------------------------------------------------------------------------
1 GIVE AN EXPLANATION OF DEDUCTIONS:
None
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE XIII -- CURRENT AND ACCRUED LIABILITIES
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items less
than $10,000 may be grouped, showing the number of items in
each group.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 233 -- NOTES PAYABLE TO ASSOCIATE COMPANIES
Interstate Energy Corporation $ 2,956,635
IES Utilities Inc. 53,729,105
Wisconsin Power & Light Company (26,798,567)
Interstate Power Company (21,857,087)
-------------------------------------
TOTAL - $ 8,030,086
- --------------------------------------------------------------------------------------------------------------------
ACCOUNT 234--ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Interstate Energy Corporation $ 28,358
IES Utilities Inc. 2,233,270
Wisconsin Power & Light Company 2,638,883
Interstate Power Company 799,303
Alliant Energy Resources, Inc. 394,841
Iowa Land and Building Company 233,743
-------------------------------------
TOTAL - $ 6,328,398
- --------------------------------------------------------------------------------------------------------------------
ACCOUNT 242--MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Accrued Payroll $ 1,187,883
Accrued Vacation 4,922,103
Payroll Deductions 499,370
Miscellaneous 78,251
-------------------------------------
TOTAL - $ 6,687,607
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
- --------------------------------------------------------------------------------
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars
as to any significant contingent assets or liabilities existing
at the end of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
- --------------------------------------------------------------------------------
1. GENERAL:
Interstate Energy Corporation (doing business as Alliant Energy), a Wisconsin
corporation and registered holding company under the Public Utility Holding
Company Act of 1935 (PUHCA), was created in the April 1998 merger of WPL
Holdings, Inc., IES Industries Inc. and Interstate Power Company. Alliant Energy
Corporate Services, Inc. (the Company) is a wholly-owned subsidiary of Alliant
Energy and is the service company for the Alliant Energy system providing
associate companies with a variety of administrative, management and support
services. The primary operating companies of the system are IES Utilities Inc.
(IESU), Wisconsin Power and Light Company (WP&L), Interstate Power Company
(IPC), Alliant Energy Resources, Inc. (AER) and Alliant Energy. AER also has
numerous subsidiaries who procure services from the Company.
2. NOTES PAYABLE TO ASSOCIATE COMPANIES:
Alliant Energy has established utility and non-utility money pools to coordinate
short-term borrowings for certain subsidiaries. The money pools provide a more
efficient use of cash resources of the system and reduce outside short-term
borrowings. The money pools are administered by the Company and funded, as
needed, by Alliant Energy through the issuance of commercial paper by Alliant
Energy. WP&L is restricted by the Public Service Commission of Wisconsin from
lending money to the utility money pool but is able to borrow money from such
pool.
3. PENSION AND OTHER POSTRETIREMENT BENEFITS:
Alliant Energy has several non-contributory defined benefit pension plans that
cover substantially all of its employees who are subject to a collective
bargaining agreement. Plan benefits are generally based on years of service and
compensation during the employees' latter years of employment. Eligible
employees of Alliant Energy that are not subject to a collective bargaining
agreement, including employees of the Company, are covered by the Alliant Energy
Cash Balance Pension Plan, a non-contributory defined benefit pension plan.
During each year of service, Alliant Energy credits each participant's account
with a benefit credit equal to 5% of base pay as well as a guaranteed minimum
interest credit equal to 4%. The projected unit credit actuarial cost method was
used to compute pension cost and the accumulated and projected benefit
obligations. Alliant Energy's policy is to fund all of the pension plans at an
amount that is at least equal to the minimum funding requirements mandated by
the Employee Retirement Income Security Act of 1974, as amended (ERISA), and
that does not exceed the maximum tax deductible amount for the year.
Alliant Energy also provides certain other postretirement benefits to retirees,
including medical benefits for retirees and their spouses (and Medicare Part B
reimbursement for certain retirees) and, in some cases, retiree life insurance.
The weighted-average assumptions as of the measurement date of September 30 are
as follows:
20
<PAGE>
<TABLE>
<CAPTION>
Qualified Pension Benefits Other Postretirement Benefits
-------------------------- -----------------------------
1998 1997 1996 1998 1997 1996
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Discount rate 6.75% 7.25% 7.50% 6.75% 7.25% 7.50%
Expected return on plan assets 9% 8-9% 8-9% 9% 8-9% 8-9%
Rate of compensation increase 3.5-4.5% 3.5-5.0% 3.5-5.0% 3.5% 3.5% 3.5-4.5%
Medicare cost trend on covered charges:
Initial trend range N/A N/A N/A 8% 8% 8-9%
Ultimate trend range N/A N/A N/A 5.0-6.0% 5.0-6.5% 5.0-6.5%
</TABLE>
The components of Alliant Energy's qualified pension benefits and other
postretirement benefits costs are as follows (in millions):
<TABLE>
<CAPTION>
Qualified Pension Benefits Other Postretirement Benefits
------------------------------------- ----------------------------------
1998 1997 1996 1998 1997 1996
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Service cost $ 13.8 $ 13.1 $ 13.4 $ 5.1 $ 4.7 $ 4.9
Interest cost 35.4 32.2 30.0 9.7 9.8 9.6
Expected return on plan assets (47.2) (39.0) (36.8) (3.7) (2.6) (1.9)
Amortization of:
Transition obligation (asset) (2.4) (2.4) (2.4) 4.7 4.9 5.0
Prior service cost 2.8 2.5 1.7 (0.3) (0.3) (0.3)
Actuarial (gain) / loss (0.9) - 0.4 (1.2) (0.2) (0.1)
------------------------------------- ----------------------------------
Total $ 1.5 $ 6.4 $ 6.3 $ 14.3 $ 16.3 $ 17.2
============ =========== =========== =========== ========== ==========
</TABLE>
During 1998, 1997 and 1996, Alliant Energy recognized an additional $10.3
million, $5.1 million and $4.7 million, respectively, of costs in accordance
with SFAS 88. The charges were for severance and early retirement programs in
the respective years. In addition, during 1998 and 1997, Alliant Energy
recognized $10.2 million and $1.7 million, respectively, of curtailment charges
relating to Alliant Energy's other postretirement benefits. The amounts include
a December 1998 early retirement program.
The assumed medical trend rates are critical assumptions in determining the
service and interest cost and accumulated postretirement benefit obligation
related to postretirement benefit costs. A one percent change in the medical
trend rates for 1998, holding all other assumptions constant, would have the
following effects (in millions):
<TABLE>
<CAPTION>
1 Percent Increase 1 Percent Decrease
------------------ ------------------
<S> <C> <C>
Effect on total of service and interest cost components $2.3 ($1.8)
Effect on postretirement benefit obligation $15.6 ($13.0)
</TABLE>
21
<PAGE>
A reconciliation of the funded status of Alliant Energy's plans to the amounts
recognized on Alliant Energy's Consolidated Balance Sheets at December 31 is
presented below (in millions):
<TABLE>
<CAPTION>
Qualified Pension Benefits Other Postretirement Benefits
-------------------------- -----------------------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Change in benefit obligation:
Net benefit obligation at beginning of year $ 474.2 $ 426.6 $ 146.4 $ 136.5
Service cost 13.8 13.1 5.1 4.7
Interest cost 35.4 32.2 9.7 9.8
Plan participants' contributions - - 1.3 1.4
Plan amendments (2.5) 11.8 - -
Actuarial (gain) / loss 24.8 13.7 (3.6) 1.0
Curtailments (3.0) 2.5 1.9 0.7
Special termination benefits 10.7 5.1 - -
Gross benefits paid (25.0) (30.8) (7.5) (7.7)
----------- ----------- ----------- ----------
Net benefit obligation at end of year 528.4 474.2 153.3 146.4
----------- ----------- ----------- ----------
Change in plan assets:
Fair value of plan assets at beginning of year 529.1 482.6 50.7 37.2
Actual return on plan assets 2.2 72.5 2.5 3.7
Employer contributions - 4.8 7.0 16.1
Plan participants' contributions - - 1.3 1.4
401(h) assets recognized - - 1.1 -
Gross benefits paid (25.0) (30.8) (7.5) (7.7)
----------- ----------- ----------- ----------
Fair value of plan assets at end of year 506.3 529.1 55.1 50.7
----------- ----------- ----------- ----------
Funded status at end of year (22.1) 54.9 (98.2) (95.7)
Unrecognized net actuarial (gain) / loss 30.3 (56.9) (7.5) (4.0)
Unrecognized prior service cost 25.8 32.1 (1.7) (2.3)
Unrecognized net transition obligation (asset) (10.6) (13.0) 60.6 73.2
----------- ----------- ----------- ----------
Net amount recognized at end of year $ 23.4 $ 17.1 $(46.8) $(28.8)
=========== =========== =========== ==========
Amounts recognized on the Consolidated
Balance Sheets consist of:
Prepaid benefit cost $ 38.9 $ 42.7 $ 0.9 $ 0.9
Accrued benefit cost (15.5) (25.6) (47.7) (29.7)
Additional minimum liability (7.7) - - -
Intangible asset 7.7 - - -
----------- ----------- ----------- ----------
Net amount recognized at measurement date 23.4 17.1 (46.8) (28.8)
----------- ----------- ----------- ----------
Contributions paid after 9/30 and prior to 12/31 - - 6.8 -
Net amount recognized at 12/31/98 $ 23.4 $ 17.1 $ (40.0) $ (28.8)
======================= ======================
</TABLE>
The benefit obligation and fair value of plan assets for the postretirement
welfare plans with benefit obligations in excess of plan assets were $146.5
million and $45.3 million, respectively, as of September 30, 1998 and $139.8
million and $46.3 million, respectively, as of the prior measurement date. The
projected benefit obligation, accumulated benefit obligation and fair value of
plan assets for the pension plans with benefit obligations in excess of plan
assets were $250.5 million, $241.1 million and $217.9 million, respectively, as
of September 30, 1998.
Alliant Energy also sponsors several non-qualified pension plans which cover
certain current and former officers.
22
<PAGE>
Funding of such plans at December 31, 1998, totaled approximately $4 million.
Alliant Energy's pension benefit obligation under these plans was $25.8 million
and $18.7 million at December 31, 1998 and 1997, respectively. Alliant Energy's
pension expense under these plans was $4.5 million, $3.7 million, and $2.0
million in 1998, 1997, and 1996, respectively.
A significant number of Alliant Energy employees also participate in defined
contribution pension plans (401(k) plans). Alliant Energy's contributions to the
plans, which are based on the participants' level of contribution, were $7.7
million, $5.5 million and $4.9 million in 1998, 1997 and 1996, respectively.
4. INVESTMENTS IN ASSOCIATE COMPANIES:
Certain employee benefits costs billed to the operating companies have not yet
been funded by the Company. The balance recorded in Account 123, Investments in
Associate Companies, is a result of the operating companies, in turn, not yet
paying the Company for such costs. The Company's corresponding benefits
liability is recorded in Account 253, Other Deferred Credits.
- --------------------------------------------------------------------------------
23
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCOME
457 Services rendered to associate companies $144,391,183
458 Services rendered to nonassociate companies -
419 Interest income 2,355,720
421 Miscellaneous income or loss 394,800
-------------------------------------
Total Income 147,141,703 -
-------------------------------------
EXPENSE -
920 Salaries and wages 47,313,175
921 Office supplies and expenses 20,296,478
922 Administrative expense transferred -- credit -
923 Outside services employed 24,755,778
924 Property insurance 2,634,818
925 Injuries and damages 1,490,611
926 Employee pensions and benefits 11,838,733
928 Regulatory commission expense 2,475,228
930.1 General advertising expenses 1,293,632
930.2 Miscellaneous general expenses 5,796,361
931 Rents 15,812,270
932 Maintenance of structures and equipment 266,669
403 Depreciation and amortization expense 104,440
408 Taxes other than income taxes 3,210,891
409 Income taxes -
410 Provision for deferred income taxes -
411 Provision for deferred income taxes -- credit -
411.5 Investment tax credit -
426.1 Donations 210,736
426.5 Other deductions 6,680,860
427 Interest on long-term debt -
430 Interest on debt to associate companies 2,917,264
431 Other interest expense 43,759
-------------------------------------
Total Expense 147,141,703 -
-------------------------------------
Net Income or (Loss) $ - -
-------------------------------------
-------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
NAME OF ASSOCIATE COSTS COSTS FOR USE AMOUNT
COMPANY CHARGED CHARGED OF CAPITAL BILLED
-------------------------------------------------------
457-1 457-2 457-3
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTERSTATE ENERGY CORPORATION $ 623,948 $ 216,190 $ 840,138
IES UTILITIES INC. 49,353,968 9,898,270 59,252,238
WISCONSIN POWER AND LIGHT COMPANY 43,062,642 10,802,700 53,865,342
INTERSTATE POWER COMPANY 19,120,571 4,579,847 23,700,418
ALLIANT ENERGY RESOURCES, INC. 3,985,931 676,503 4,662,434
ALLIANT ENERGY TRANSPORTATION INC. 23,118 2,642 25,760
CEDAR RAPIDS & IOWA CITY RAILWAY CO. 171,363 8,873 180,236
ALLIANT ENERGY TRANSFER SERVICES INC. 4,118 468 4,586
IEI BARGE SERVICES INC. 79,283 17,495 96,778
INDUSTRIAL ENERGY APPLICATIONS, INC. 115,781 40,798 156,579
WHITING PETROLEUM CORPORATION 27,803 9,632 37,435
IOWA LAND AND BUILDING COMPANY 196,486 99,725 296,211
PRAIRIE RIDGE BUSINESS PARK, L.P. 280 214 494
IES MIDLAND DEVELOPMENT INC. 207,812 71 207,883
IES VENTURES INC. 302 - 302
ALLIANT ENERGY INTERNATIONAL, INC. 875,655 79,633 955,288
ALLIANT ENERGY INVESTMENTS INC. 4,605 2,380 6,985
ALLIANT INTERNATIONAL NEW ZEALAND LTD. 39,361 14,089 53,450
IEA-HES L.L.C. 1,711 86 1,797
ENERGYS, INC. 1,308 1,000 2,308
RMT, INC. 68,198 9,578 77,776
HEARTLAND PROPERTIES, INC. (58,002) 16,835 (41,167)
VILLAGE LAKESHARES, L.P. 6,554 531 7,085
ALLIANT ENERGY INVESTCO INC. 469 358 827
ALLIANT ENERGY INDUSTRIAL SERVICES, INC. 1,548 (1,548) -
-------------------------------------------------------------------------
TOTAL $ 117,914,813 $ 26,476,370 $144,391,183
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
NAME OF DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NONASSOCIATE COST COST FOR USE TOTAL OR AMOUNT
COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
------------------------------------------------ ---------------
458-1 458-2 458-3 458-4
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
None
--------------------------------------------------------------------------------------
TOTAL - - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company.
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
ASSOCIATE COMPANY
CHARGES
--------------------------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT TOTAL
COST COST
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
920 SALARIES AND WAGES $ 40,667,169 $ 6,646,006 $ 47,313,175
921 OFFICE SUPPLIES AND EXPENSES 20,277,051 19,427 20,296,478
922 ADMINISTRATIVE EXPENSE TRANSFERRED -- CREDIT -
923 OUTSIDE SERVICES EMPLOYED 24,755,778 24,755,778
924 PROPERTY INSURANCE 2,634,818 2,634,818
925 INJURIES AND DAMAGES 1,490,611 1,490,611
926 EMPLOYEE PENSIONS AND BENEFITS 4,899,933 6,938,800 11,838,733
928 REGULATORY COMMISSION EXPENSE 2,474,631 597 2,475,228
930.1 GENERAL ADVERTISING EXPENSE 1,293,632 1,293,632
930.2 MISCELLANEOUS GENERAL EXPENSES 5,796,361 5,796,361
931 RENTS 6,265,789 9,546,481 15,812,270
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 203,731 62,938 266,669
403 DEPRECIATION AND AMORTIZATION EXPENSE 104,440 104,440
408 TAXES OTHER THAN INCOME TAXES 3,210,891 3,210,891
409 INCOME TAXES -
410 PROVISION FOR DEFERRED INCOME TAXES -
411 PROVISION FOR DEFERRED INCOME TAXES -- CREDIT -
411.5 INVESTMENT TAX CREDIT -
426.1 DONATIONS 210,736 210,736
426.5 OTHER DEDUCTIONS 6,629,630 51,230 6,680,860
427 INTEREST ON LONG-TERM DEBT -
431 OTHER INTEREST EXPENSE 43,759 43,759
- ------------------------------------------------------------
INSTRUCTION: Total cost of service will equal for associate
and nonassociate companies the total amount billed under
their separate analysis of billing schedules.
- ---------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES = 117,748,069 26,476,370 144,224,439
--------------------------------------------------
COMPENSATION FOR USE OF EQUITY CAPITAL =
--------------------------------------------------
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES = 2,917,264 2,917,264
--------------------------------------------------
--------------------------------------------------
TOTAL COST OF SERVICE = $ 120,665,333 $ 26,476,370 $147,141,703
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------
NONASSOCIATE COMPANY
CHARGES
----------------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT TOTAL
COST COST
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
920 SALARIES AND WAGES -
921 OFFICE SUPPLIES AND EXPENSES -
922 ADMINISTRATIVE EXPENSE TRANSFERRED -- CREDIT -
923 OUTSIDE SERVICES EMPLOYED -
924 PROPERTY INSURANCE -
925 INJURIES AND DAMAGES -
926 EMPLOYEE PENSIONS AND BENEFITS -
928 REGULATORY COMMISSION EXPENSE -
930.1 GENERAL ADVERTISING EXPENSE -
930.2 MISCELLANEOUS GENERAL EXPENSES -
931 RENTS -
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT -
403 DEPRECIATION AND AMORTIZATION EXPENSE -
408 TAXES OTHER THAN INCOME TAXES -
409 INCOME TAXES -
410 PROVISION FOR DEFERRED INCOME TAXES -
411 PROVISION FOR DEFERRED INCOME TAXES -- CREDIT -
411.5 INVESTMENT TAX CREDIT -
426.1 DONATIONS -
426.5 OTHER DEDUCTIONS -
427 INTEREST ON LONG-TERM DEBT -
431 OTHER INTEREST EXPENSE -
- ------------------------------------------------------------
INSTRUCTION: Total cost of service will equal for associate
and nonassociate companies the total amount billed under
their separate analysis of billing schedules.
- -----------------------------------------------------------------------------------------------------
TOTAL EXPENSES = - - -
----------------------------------------
COMPENSATION FOR USE OF EQUITY CAPITAL =
----------------------------------------
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES =
----------------------------------------
----------------------------------------
TOTAL COST OF SERVICE = - - -
- -----------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
TOTAL CHARGES FOR
SERVICE
----------------------------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT TOTAL
COST COST
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
920 SALARIES AND WAGES $ 40,667,169 $ 6,646,006 $ 47,313,175
921 OFFICE SUPPLIES AND EXPENSES 20,277,051 19,427 20,296,478
922 ADMINISTRATIVE EXPENSE TRANSFERRED -- CREDIT - - -
923 OUTSIDE SERVICES EMPLOYED 24,755,778 - 24,755,778
924 PROPERTY INSURANCE 2,634,818 - 2,634,818
925 INJURIES AND DAMAGES 1,490,611 - 1,490,611
926 EMPLOYEE PENSIONS AND BENEFITS 4,899,933 6,938,800 11,838,733
928 REGULATORY COMMISSION EXPENSE 2,474,631 597 2,475,228
930.1 GENERAL ADVERTISING EXPENSE 1,293,632 - 1,293,632
930.2 MISCELLANEOUS GENERAL EXPENSES 5,796,361 - 5,796,361
931 RENTS 6,265,789 9,546,481 15,812,270
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 203,731 62,938 266,669
403 DEPRECIATION AND AMORTIZATION EXPENSE 104,440 - 104,440
408 TAXES OTHER THAN INCOME TAXES - 3,210,891 3,210,891
409 INCOME TAXES - - -
410 PROVISION FOR DEFERRED INCOME TAXES - - -
411 PROVISION FOR DEFERRED INCOME TAXES -- CREDIT - - -
411.5 INVESTMENT TAX CREDIT - - -
426.1 DONATIONS 210,736 - 210,736
426.5 OTHER DEDUCTIONS 6,629,630 51,230 6,680,860
427 INTEREST ON LONG-TERM DEBT - - -
431 OTHER INTEREST EXPENSE 43,759 - 43,759
- ------------------------------------------------------------
INSTRUCTION: Total cost of service will equal for associate
and nonassociate companies the total amount billed under
their separate analysis of billing schedules.
- ---------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES = 117,748,069 26,476,370 144,224,439
--------------------------------------------------
COMPENSATION FOR USE OF EQUITY CAPITAL =
--------------------------------------------------
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES = 2,917,264 - 2,917,264
--------------------------------------------------
--------------------------------------------------
TOTAL COST OF SERVICE = $ 120,665,333 $ 26,476,370 $ 147,141,703
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For Year Ended December 31, 1998
-----------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Total
DESCRIPTION OF ITEMS AMOUNT OVERHED
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
920 SALARIES AND WAGES $ 47,313,175
921 OFFICE SUPPLIES AND EXPENSES 20,299,241
922 ADMINISTRATIVE EXPENSE TRANSFERRED -- CREDIT 2,766
923 OUTSIDE SERVICES EMPLOYED 24,755,778
924 PROPERTY INSURANCE 2,634,818
925 INJURIES AND DAMAGES 1,490,611
926 EMPLOYEE PENSIONS AND BENEFITS 11,838,733
928 REGULATORY COMMISSION EXPENSE 2,475,228
930.1 GENERAL ADVERTISING EXPENSE 1,293,632
930.2 MISCELLANEOUS GENERAL EXPENSES 5,796,361
931 RENTS 15,812,270
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 266,669
403 DEPRECIATION AND AMORTIZATION EXPENSE 104,440
408 TAXES OTHER THAN INCOME TAXES 3,210,891
409 INCOME TAXES -
410 PROVISION FOR DEFERRED INCOME TAXES -
411 PROVISION FOR DEFERRED INCOME TAXES -- CREDIT -
411.5 INVESTMENT TAX CREDIT -
426.1 DONATIONS 210,736
426.5 OTHER DEDUCTIONS 6,680,860
427 INTEREST ON LONG-TERM DEBT -
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 2,917,264
431 OTHER INTEREST EXPENSE 43,759
- ---------------------------------------------------------------
INSTRUCTION: Indicate each department or service function.
(See Instructions 01-3 General Structure of Accounting System:
Uniform System Account)
- ---------------------------------------------------------------------------------------------------------
TOTAL EXPENSES = $ 147,141,703 $ -
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------------------------
DESCRIPTION OF ITEMS Accounting Adm/Exec Corporate Elec T&D
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
920 SALARIES AND WAGES $ 2,801,370 $ 9,340,136 $ 3,661,358 $ 1,948,430
921 OFFICE SUPPLIES AND EXPENSES 217,188 6,059,299 3,014,640 440,283
922 ADMINISTRATIVE EXPENSE TRANSFERRED -- CREDIT
923 OUTSIDE SERVICES EMPLOYED 614,312 1,523,347 879,015 347,039
924 PROPERTY INSURANCE -
925 INJURIES AND DAMAGES 51 (27,082)
926 EMPLOYEE PENSIONS AND BENEFITS 466,551 1,564,215 4,660,669 325,842
928 REGULATORY COMMISSION EXPENSE 326,688 182,590
930.1 GENERAL ADVERTISING EXPENSE 3,882 270,022 2,331 375
930.2 MISCELLANEOUS GENERAL EXPENSES 356,968 2,104,464 525
931 RENTS 708,450 2,812,750 464,847 508,787
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 89,904
403 DEPRECIATION AND AMORTIZATION EXPENSE 104,440
408 TAXES OTHER THAN INCOME TAXES 215,644 710,031 19,741 150,859
409 INCOME TAXES
410 PROVISION FOR DEFERRED INCOME TAXES
411 PROVISION FOR DEFERRED INCOME TAXES -- CREDIT
411.5 INVESTMENT TAX CREDIT
426.1 DONATIONS 873 38,696 1,500
426.5 OTHER DEDUCTIONS 8,833 6,327,821
427 INTEREST ON LONG-TERM DEBT
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 2,917,264
431 OTHER INTEREST EXPENSE 40,559
- ---------------------------------------------------------------
INSTRUCTION: Indicate each department or service function.
(See Instructions 01-3 General Structure of Accounting System:
Uniform System Account)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES = $ 5,028,321 $ 23,100,889 $ 24,354,157 $ 3,722,140
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For Year Ended December 31, 1998
-----------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Acct DEPARTMENT OR SERVICE FUNCTION
---------------------------------------------------------------------------------------------------------------
Nbr Electric Sys Maint Environmental Facilities Finance Fuels Gas T&D Gas Acq Disp
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
920 $ 932,706 $ 1,193,594 $ 374,527 $ 914,964 $ 375,373 $ 223,133 $ 219,032
921 83,367 272,601 23,055 292,938 87,228 36,582 18,971
922
923 2,694 536,468 73,930 2,105,178 279,825 166,211 5,808
924 2,627,038
925 39 1,515,238
926 155,849 200,951 62,649 167,086 61,118 33,979 36,639
928 7,607 28,486
930.1 370 39,997
930.2 267 1,574,584 305 116,913 20,649 2,050
931 242,005 284,879 89,390 218,970 87,205 48,482 52,277
932 175,032
403
408 72,140 92,439 29,006 70,860 28,296 15,732 16,963
409
410
411
411.5
426.1 1,902
426.5 269
427
430
431
- ------------------------------------------------------------------------------------------------------------------------
$ 1,489,028 $ 4,155,925 $ 827,894 $ 8,078,960 $ 939,694 $ 526,169 $ 378,176
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------
Acct
-------------------------------------
Nbr Gas Sys Maint Human Resources
- ----------------------------------------------
<S> <C> <C>
920 $ 418,423 $ 2,041,297
921 45,668 388,982
922
923 42,248 1,389,408
924
925
926 69,490 576,440
928 623
930.1 19,036
930.2 7,102
931 111,170 487,591
932
403
408 32,173 157,561
409
410
411
411.5
426.1
426.5 358
427
430
431
- ----------------------------------------------
$ 719,795 $ 5,067,775
- ----------------------------------------------
</TABLE>
29
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For Year Ended December 31, 1998
-----------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Acct DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------------------------------------------------------
Nbr Information Sys Internal Audit Investor Rel Land & ROW Legal Mrkt & Cust Rel Mtrl Mgmt
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
920 $ 4,056,968 $ 369,630 $ 257,188 $ 498,561 $ 1,041,572 $ 8,872,035 $ 1,745,923
921 4,815,321 43,540 384,346 64,215 176,137 1,495,425 952,617
922
923 12,594,718 15,664 128,265 20,657 2,012,334 840,825 301,363
924 7,780
925 2,340
926 608,806 61,830 43,021 83,397 173,430 1,212,367 291,214
928 14,443 24,361 10
930.1 19,747 2,419 781 6,564 82,495 14,158
930.2 4,035 130 528,537 101,315 2,552 65,066 5,655
931 3,620,372 88,221 62,942 118,993 247,455 1,751,435 429,823
932 1,563 170
403
408 281,868 28,626 19,918 38,612 80,295 560,144 134,827
409
410
411
411.5
426.1 1,116 117,948
426.5 125 (43,589) 36,315
427
430
431 3,200
- --------------------------------------------------------------------------------------------------------------------------------
$ 26,001,960 $ 607,641 $ 1,432,176 $ 942,537 $ 3,730,007 $ 15,034,235 $ 3,875,580
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------
Acct
-----------------------------
Nbr Meters Pwr Plan
- -------------------------------------
<S> <C> <C>
920 $ 267,211 $ 2,207,900
921 34,167 218,691
922
923 11,646 339,504
924
925
926 44,594 367,554
928 27,150
930.1
930.2 111,842
931 63,628 2,492,325
932
403
408 20,646 170,126
409
410
411
411.5
426.1
426.5
427
430
431
- -------------------------------------
$ 441,892 $ 5,935,092
- -------------------------------------
</TABLE>
30
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For Year Ended December 31, 1998
-----------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------
Acct DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------
Nbr Pub Affairs Pwr Eng & Cons Rates Transportation
- ----------------------------------------------------------------------------
920 $ 1,042,928 $ 1,355,627 $ 806,281 $ 347,008
921 719,762 254,945 107,212 49,298
922
923 301,924 139,616 62,419 21,360
924
925 25
926 174,457 226,763 134,871 34,951
928 1,863,270
930.1 825,087 1,244 4,774 350
930.2 791,358 145 1,899
931 249,338 323,627 197,438 49,870
932
403
408 80,771 104,988 62,443 16,182
409
410
411
411.5
426.1 48,701
426.5 350,293 435
427
430
431
- ----------------------------------------------------------------------------
$ 4,584,619 $ 2,407,415 $ 3,240,607 $ 519,019
- ----------------------------------------------------------------------------
31
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
DEPARTMENT ANALYSIS OF SALARIES
ACCOUNT 920
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
DEPARTMENTAL SALARY EXPENSE NUMBER
PERSONNEL
--------------------------------------------------------------------------
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO
Indicate each -----------------------------------------
department or TOTAL PARENT OTHER NON END OF
service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ACCOUNTING $ 2,801,370 $ 27,559 $ 2,773,811 91
ADMIN/EXEC 9,340,136 206,747 9,133,389 219
CORPORATE 3,661,358 1,996 3,659,362 0
ELECTRIC T&D 1,948,430 - 1,948,430 63
ELECTRIC SYSTEM MAINTENANCE 932,706 - 932,706 23
ENVIRONMENTAL 1,193,594 - 1,193,594 35
FACILITIES 374,527 - 374,527 16
FINANCE 914,964 63,014 851,950 27
FUELS 375,373 - 375,373 8
GAS T&D 223,133 - 223,133 7
GAS ACQ & DISP 219,031 - 219,031 6
GAS SYSTEM MAINTENANCE 418,423 - 418,423 12
HUMAN RESOURCES 2,041,297 975 2,040,322 65
INFORMATION SYSTEMS 4,056,968 324 4,056,644 108
INTERNAL AUDIT 369,630 998 368,632 13
INVESTOR RELATIONS 257,188 5,624 251,564 13
LAND & ROW 498,561 - 498,561 17
LEGAL 1,041,572 3,038 1,038,534 26
MARKETING & CUSTOMER REL 8,872,035 - 8,872,035 217
MATERIALS MGMT 1,745,923 - 1,745,923 53
METERS 267,211 - 267,211 9
POWER PLANNING 2,207,900 - 2,207,900 57
PUBLIC AFFAIRS 1,042,928 28,165 1,014,763 34
PWR ENG & CONST 1,355,626 - 1,355,626 37
RATES 806,281 - 806,281 25
TRANSPORTATION 347,010 193 346,817 7
-----------------------------------------------------------------------------
TOTAL $ 47,313,175 $ 338,633 $ 46,974,542 1,188
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregrate amounts paid to any one payee and included within one subaccount
is less than $25,000, only the aggregrate number and amount of all such payments
included within the subaccount need be shown. Provide a subtotal for each type
of services.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
FROM WHOM PURCHASED ADDRESS
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
ACCOUNTING/AUDITING
ARTHUR ANDERSEN LLP P.O. Box 70775 Chicago, IL 60673
33 INVOICES UNDER $25,000
PUBLIC RELATIONS
MEYOCKS & PRIEBE ADVERTISING Suite 150 6800 Lake Dr. West Des Moines, IA.50266
KCRG TV 9 2nd Ave at 5th St. P.O. Box 816 Cedar Rapids, IA 52406
MARITZ MARKETING RESEARCH INC P.O. Box 488F St. Louis, MO 63150
E SOURCE INC 4755 Walnut St. Boulder, CO 80301
625 INVOICES UNDER $25,000
CONSULTING
TOWERS PERRIN P.O. Box 8500 S-6110 Philadelphia, PA 19178
CENTER FOR ORGANIZATION 6515 Grand Teton Plaza Suite 145 Madison, WI 53179
CORPORATE LEARNING CENTER 220 S. 6th St. Suite 1000 Minneapolis, MN 55402
STORCK ASSOCIATES Suite 401D 6040 Pelican Bay Blvd. Naples, FL 34108
DENNIS P STUDER & ASSOCIATES 411 3rd St. SE Suite 580 Cedar Rapids, IA 52401
ROOT, LARRY D. 3540 Timberline Dr. NE Cedar Rapids, IA 52404
CAP GEMINI P.O. Box 7777-W9065 Philadelphia, PA 19175
STOPPELMOOR, WAYNE H 7798 Timmerman Dr. East Dubuque, IL 61025
BEHAVIORAL TECHNOLOGY INC Dept. 5408 P.O. Box 3000 Hartford, CT 06150
2 INVOICES UNDER $25,000
DEMAND SIDE MANAGEMENT
A-TEC ENERGY CORPORATION 1501 Ingersoll Ave Suite 200 Des Moines, IA 50309
COMPETITIVE RESOURCES CO 220 N. Main St. Suite 517 Davenport, IA 52801
PLANERGY, INC Barton Oaks Plaza 2#495 901 Mopac Expressway S Austin, TX 78746
LOCHER, JOHN JR 7820 Galway Cove Eden Prairie, MN 55347
11 INVOICES UNDER $25,000
ENGINEERING
MOTOROLA P.O. Box 93042 Chicago, IL 60673
ULTEIG ENGINEERS P.O. Box 1569 Fargo, ND 58107
SAFE HARBOR GROUP LLC P.O. Box 147 Nashotah, Wi 53058
BURNS & MCDONNELL P.O. Box 411883 Kansas City, MO 64141
FUNCTIONAL SERVICES CORPORATION P.O. Box 14542 Madison, WI 53714
UMS GROUP 2001 Route 46E #410 Waterview Plaza Parsippany, NJ 07054
ABELL HOWE COMPANY Dept. 77-2511 Chicago, IL 60678
<CAPTION>
- ---------------------------------------------------------------------------------------------
RELATIONSHIP
----------------------------------------------
"A" = ASSOCIATE
FROM WHOM PURCHASED "NA" = NON
ASSOCIATE AMOUNT
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNTING/AUDITING
ARTHUR ANDERSEN LLP NA $ 376,169
33 INVOICES UNDER $25,000 NA 317,846
PUBLIC RELATIONS
MEYOCKS & PRIEBE ADVERTISING NA 146,254
KCRG TV 9 NA 108,000
MARITZ MARKETING RESEARCH INC NA 46,020
E SOURCE INC NA 32,850
625 INVOICES UNDER $25,000 647,960
CONSULTING
TOWERS PERRIN NA 424,528
CENTER FOR ORGANIZATION NA 181,111
CORPORATE LEARNING CENTER NA 139,747
STORCK ASSOCIATES NA 105,438
DENNIS P STUDER & ASSOCIATES NA 88,243
ROOT, LARRY D. NA 87,789
CAP GEMINI NA 56,120
STOPPELMOOR, WAYNE H NA 50,000
BEHAVIORAL TECHNOLOGY INC NA 28,756
2 INVOICES UNDER $25,000 7,700
DEMAND SIDE MANAGEMENT
A-TEC ENERGY CORPORATION NA 61,575
COMPETITIVE RESOURCES CO NA 59,920
PLANERGY, INC NA 37,180
LOCHER, JOHN JR NA 32,697
11 INVOICES UNDER $25,000 56,356
ENGINEERING
MOTOROLA NA 150,168
ULTEIG ENGINEERS NA 94,023
SAFE HARBOR GROUP LLC NA 91,237
BURNS & MCDONNELL NA 70,667
FUNCTIONAL SERVICES CORPORATION NA 56,588
UMS GROUP NA 41,728
ABELL HOWE COMPANY NA 35,361
</TABLE>
33
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregrate amounts paid to any one payee and included within one subaccount
is less than $25,000, only the aggregrate number and amount of all such payments
included within the subaccount need be shown. Provide a subtotal for each type
of services.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
FROM WHOM PURCHASED ADDRESS
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
WISCONSIN ELECTRIC POWER COMPANY Rm A-172 231 W. Michigan St. P.O. Box 2046 Milwauke, Wi 53201
472 INVOICES UNDER $24,000
ENVIRONMENTAL
CLEAN HARBORS ENVIRONMENTAL P.O. Box 510 Boston, MA 02102
JONES DAY REAVIS & POGUE Suite 4600 555 West 5th St. Los Angeles, CA 90013
FLEMMING ZULACK & WILLIAMSON LLP 1 Liberty Plaza New York, NY 10006
MIDWEST FLY ASH 2310 Hawkeye Dr. Box 3557 Sioux City, IA 51102
SPENCER FANE BRITT & BROWNE LLP 1000 Walnut St. Suite 1400 Kansas City, MO 64106
73 INVOICES UNDER $25,000
FINANCIAL
INTERACT
NEW YORK STOCK EXCHANGE INC Grand Central Station P.O. Box 4530 New York, Ny 10163
FIRSTAR BANK MILWAUKEE, N.A. Attn: RA #551-10th Fl. P.O. Box 532 Milwauke, WI 53201
J&H MARSH & MCLENNAN, INC NW 8625 P.O. Box 1450 Minneapolis, MN 55485
OFFENHAUSER & COMPANY P.O. Box 2040 Texarkana, TX 75504
MOODYS INVESTORS SERVICE INC P.O. Box 102597 Atlanta, GA 30368
STANDARD & POORS P.O. Box 80-2542 Chicago, IL 60680
TOZZINI FREIRE TEIXEIRA E SILVA RUA Libero Bandaro 293-19 Andar Cep01095-900 Sao Paulo, Brazil
LUIS MIGUEL PEREYRA EPS A-662 P.O. Box 02-5256 Miami, FL 33102
SUNGARD CSS P.O. Box 98648 Chicago, IL 60693
WALLACE COMPUTER SERVICES INC P.O. Box 93514 Chicago, IL 60673
NORWEST BANKS NW 7091 P.O. Box 1450 Minneapolis, MN 55485
FITCH IBCA INC P.O. Box 96663 Chicago IL 60693
220 INVOICES UNDER $25,000
INFORMATION TECHNOLOGY (INCLUDING Y2K)
EDS CREDIT CORPORATION P.O. Box 14947 St. Louis, MO 63150
INTERNATIONAL INTEGRATION INC 101 Main St. Cambridge, MA 02142
INACOM P.O. Box 620437 Middleton, WI 53562
COMPUWARE CORPORATION Drawer #64376 Detroit, MI 48364
D L ENGLISH CONSULTING INC. 616 Elm St. South Dartmouth, MA 02748
BURNS & MCDONNELL PO BOX 411883 KANSAS CITY, MO 64141
COMPREHENSIVE COMPUTER 1015 West Main St. P.O. Box 458 Sun Prairie, Wi 53590
TEAMSOFT INC 1424 N. High Point Rd. Middleton, WI 53562
STRATAGEM INC P.O. Box 92399 Milwauke, WI 53202
ENTRE COMPUTER CENTER 2005 W Beltline HWY Suite 100 Madison, WI 53713
<CAPTION>
- ---------------------------------------------------------------------------------------------
RELATIONSHIP
----------------------------------------------
"A" = ASSOCIATE
FROM WHOM PURCHASED "NA" = NON
ASSOCIATE AMOUNT
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
WISCONSIN ELECTRIC POWER COMPANY NA 35,151
472 INVOICES UNDER $24,000 796,114
ENVIRONMENTAL
CLEAN HARBORS ENVIRONMENTAL NA 346,230
JONES DAY REAVIS & POGUE NA 239,970
FLEMMING ZULACK & WILLIAMSON LLP NA 213,699
MIDWEST FLY ASH NA 206,510
SPENCER FANE BRITT & BROWNE LLP NA 42,412
73 INVOICES UNDER $25,000 161,163
FINANCIAL
INTERACT NA 271,875
NEW YORK STOCK EXCHANGE INC NA 168,577
FIRSTAR BANK MILWAUKEE, N.A. NA 127,821
J&H MARSH & MCLENNAN, INC NA 250,000
OFFENHAUSER & COMPANY NA 106,998
MOODYS INVESTORS SERVICE INC NA 85,250
STANDARD & POORS NA 77,900
TOZZINI FREIRE TEIXEIRA E SILVA NA 67,804
LUIS MIGUEL PEREYRA NA 51,346
SUNGARD CSS NA 48,269
WALLACE COMPUTER SERVICES INC NA 46,765
NORWEST BANKS NA 33,849
FITCH IBCA INC NA 25,000
220 INVOICES UNDER $25,000 851,727
INFORMATION TECHNOLOGY (INCLUDING Y2K)
EDS CREDIT CORPORATION NA 7,555,266
INTERNATIONAL INTEGRATION INC NA 762,000
INACOM NA 650,177
COMPUWARE CORPORATION NA 534,221
D L ENGLISH CONSULTING INC. NA 269,039
BURNS & MCDONNELL NA 238,834
COMPREHENSIVE COMPUTER NA 221,686
TEAMSOFT INC NA 190,049
STRATAGEM INC NA 177,066
ENTRE COMPUTER CENTER NA 169,858
</TABLE>
34
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregrate amounts paid to any one payee and included within one subaccount
is less than $25,000, only the aggregrate number and amount of all such payments
included within the subaccount need be shown. Provide a subtotal for each type
of services.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
FROM WHOM PURCHASED ADDRESS
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
WHITTMAN-HART,INC Suite 3500 311 South Wacker Dr. Chicago, IL 60606
ENTRE INFORMATION SYSTEMS 1850 Boyson Rd. Hiawatha, IA 52233
WILLIAMS LEARNING NETWORK 7552 Collection Center Dr. Chicago, IL 60693
MAXIM GROUP P.O. Box 198572 Atlanta, GA 30384
INTERIM TECHNOLOGY INC P.O. Box 73781 Chicago, IL 60673
NORRELL SERVICES INC P.O. Box 91683 Chicago, IL 60693
WESTINGHOUSE PROCESS CONTROL INC 21047 Network Place Chicago, IL 60673
BAILEY CONTROLS COMPANY P.O. Box 74438 Cleveland, OH 44194
PHOENIX CONSULTING INC 3769 E. Washington Ave. Madison, WI 53704
CONVERGENT GROUP
INTEGRATED SYSTEMS INTERNATIONAL P.O. Box 105100 Tucker, GA 30085
MILES CONSULTING INC 7610 Normandy Dr. NE Cedar Rapids, IA 52402
SMART SOLUTIONS INC 6401Odana Rd. Madison, WI 53719
MONITOR LABS INC Dept. 0390 Denver, CO 80256
INNOVATIVE TECH SYSTEMS INC P.O. Box 200057 Dallas, TX 75320
CUSTOMER CONSULTANTS INTL 2835 North Mayfair Rd. Milwauke, WI 53222
AMERITECH P.O. Box 71420 Chicago, IL 60694
MICROSOFT CORPORATION P.O. Box 844510 Dallas, TX 75284
TECHNOLOGY CONSULTING CORP Box 59565 Milwauke, WI 53259
L & S ELECTRIC INC 5101 Mesker St. P.O. Box 740 Schofield, WI 54476
HEWLETT PACKARD P.O. Box 92013 Chicago, IL 60675
ANIXTER INC P.O. Box 98908 Chicago, IL 60693
CSI 835 Innovation Dr. Knoxville, TN 37932
317 INVOICES UNDER $25,000
LEGAL & REGULATORY
FOLEY & LARDNER 777 East Wisconsin Ave. Milwauke, WI 53202
MILBANK, TWEED, HADLEY 1 Chase Manhattan Plaza New York, Ny 10005
MCDERMOTT WILL & EMERY 227 W. Monroe St. Chicago, IL 60606
HAMMER SIMON & JENSEN 700 Locust St. Suite 190 Dubuque, IA 52001
THELEN REID & PRIEST LLP 40 West 57th St. New York, NY 10019
PACIFIC ECONOMICS GROUP Suite 400 201 S. Lake Ave. Pasadena, CA 91101
WISCONSIN ELECTRIC POWER COMPANY Rm A-172 231 W. Michigan St. P.O. Box 2046 Milwauke, Wi 53201
BRADLEY & RILEY PC 100 First St. SW P.O. Box 2804 Cedar Rapids, IA 52406
MORGAN LEWIS & BOCKIUS LLP P.O. Box 8500 S-6050 Philadelphia, PA 19178
MOSS & BARNETT Norwest Center 90 S 7th St. #4800 Minneapolis, MN 55402
221 INVOICES UNDER $25,000
<CAPTION>
- ---------------------------------------------------------------------------------------------
RELATIONSHIP
----------------------------------------------
"A" = ASSOCIATE
FROM WHOM PURCHASED "NA" = NON
ASSOCIATE AMOUNT
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
WHITTMAN-HART,INC NA 149,055
ENTRE INFORMATION SYSTEMS NA 145,501
WILLIAMS LEARNING NETWORK NA 132,825
MAXIM GROUP NA 127,948
INTERIM TECHNOLOGY INC NA 122,092
NORRELL SERVICES INC NA 119,309
WESTINGHOUSE PROCESS CONTROL INC NA 115,691
BAILEY CONTROLS COMPANY NA 91,195
PHOENIX CONSULTING INC NA 88,449
CONVERGENT GROUP NA 76,640
INTEGRATED SYSTEMS INTERNATIONAL NA 76,154
MILES CONSULTING INC NA 70,759
SMART SOLUTIONS INC NA 67,058
MONITOR LABS INC NA 65,664
INNOVATIVE TECH SYSTEMS INC NA 64,346
CUSTOMER CONSULTANTS INTL NA 54,563
AMERITECH NA 51,378
MICROSOFT CORPORATION NA 50,000
TECHNOLOGY CONSULTING CORP NA 45,261
L & S ELECTRIC INC NA 42,961
HEWLETT PACKARD NA 39,293
ANIXTER INC NA 29,393
CSI NA 25,199
317 INVOICES UNDER $25,000 439,214
LEGAL & REGULATORY
FOLEY & LARDNER NA 222,406
MILBANK, TWEED, HADLEY NA 216,328
MCDERMOTT WILL & EMERY NA 188,572
HAMMER SIMON & JENSEN NA 96,534
THELEN REID & PRIEST LLP NA 53,927
PACIFIC ECONOMICS GROUP NA 46,836
WISCONSIN ELECTRIC POWER COMPANY NA 45,069
BRADLEY & RILEY PC NA 25,858
MORGAN LEWIS & BOCKIUS LLP NA 351,110
MOSS & BARNETT NA 72,791
221 INVOICES UNDER $25,000 387,515
</TABLE>
35
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregrate amounts paid to any one payee and included within one subaccount
is less than $25,000, only the aggregrate number and amount of all such payments
included within the subaccount need be shown. Provide a subtotal for each type
of services.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
FROM WHOM PURCHASED ADDRESS
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
TRAINING
INTEGRATED SOFTWARE SOLUTIONS 4725 Merle Hay Rd. Suite 104 Des Moines, IA 50322
WD ASSOCIATES 515 Main St. P.O.Box 570 Delta, PA 17314
GREENBRIER & RUSSEL, INC Dept. 77-7009 Chicago, IL 60678
FREIDIG, WILLIAM 550 West School St. Belleville, WI 53508
WIXTED POPE NORA AND ASSOCIATES 4401 Westtown Parkway # 116 West Des Moines, IA 50266
35 INVOICES UNDER $25,000
OTHER
NBI HUMAN RESOURCE SOLUTIONS 222 3rd Ave. SE Suite 220 Cedar Rapids, IA 52401
Temporary Employee Services
BOWNE OF NEW YORK CITY INC 345 Hudson St. New York, NY 10014
Merger related expenses
MILLER HEIMAN INCORPORATED P.O. Box 41081 Reno, NV 89504
Contract noncommodity work
REMEDY File #54122 Los Angeles, CA 90074
Document Management services
PSI GROUP INC P.O. Box 3480 Omaha, NE 68103
Mail Services
EPRI P.O. Box 10412 Palo Alto, CA 94303
Misc. Power Plant Operations
CENTRAL ELECTRIC CO 15 Vermeer Rd. Pella, IA 50219
Contract line extension
GENERAL MEDICAL LABORATORIES P.O. Box 88672 Milwauke, WI 53288
DOT drug testing
NORTHERN NATURAL GAS COMPANY P.O. Box 840488 Dallas, TX 75284
Contract line extension work
YOUNG CLARK & ASSOCIATES 2165 G. West Park Court Stone Mountain, GA 30087
Employee Performance Measurements
AMERICAN APPRAISAL ASSOCIATES, Bin 391 Milwauke, WI 53288
Insurance appraisal
RONALD DOADES & COMPANY P.O. Box 404 Short Hills, NJ 07078
Misc. Power Plant operations
DEWITT ELECTRIC INC 2417 260th Ave. P.O. Box 185 Dewitt, IA 52742
Contract labor customer service
IOWA ONE CALL P.O. Box 867 Bettendorf, IA 52722
Underground locate calls
GROSSENBACH, PURTELL 6006 N. Highlands Ave. Madison, WI 53705
<CAPTION>
- ---------------------------------------------------------------------------------------------
RELATIONSHIP
----------------------------------------------
"A" = ASSOCIATE
FROM WHOM PURCHASED "NA" = NON
ASSOCIATE AMOUNT
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
TRAINING
INTEGRATED SOFTWARE SOLUTIONS NA 71,254
WD ASSOCIATES NA 64,464
GREENBRIER & RUSSEL, INC NA 34,091
FREIDIG, WILLIAM NA 29,383
WIXTED POPE NORA AND ASSOCIATES NA 71,218
35 INVOICES UNDER $25,000 61,158
OTHER
NBI HUMAN RESOURCE SOLUTIONS NA 91,995
Temporary Employee Services
BOWNE OF NEW YORK CITY INC NA 55,489
Merger related expenses
MILLER HEIMAN INCORPORATED NA 54,372
Contract noncommodity work
REMEDY NA 52,010
Document Management services
PSI GROUP INC NA 51,033
Mail Services
EPRI NA 45,549
Misc. Power Plant Operations
CENTRAL ELECTRIC CO NA 43,564
Contract line extension
GENERAL MEDICAL LABORATORIES NA 42,313
DOT drug testing
NORTHERN NATURAL GAS COMPANY NA 41,024
Contract line extension work
YOUNG CLARK & ASSOCIATES NA 40,587
Employee Performance Measurements
AMERICAN APPRAISAL ASSOCIATES, NA 40,000
Insurance appraisal
RONALD DOADES & COMPANY NA 38,000
Misc. Power Plant operations
DEWITT ELECTRIC INC NA 37,319
Contract labor customer service
IOWA ONE CALL NA 34,049
Underground locate calls
GROSSENBACH, PURTELL NA 30,119
</TABLE>
36
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregrate amounts paid to any one payee and included within one subaccount
is less than $25,000, only the aggregrate number and amount of all such payments
included within the subaccount need be shown. Provide a subtotal for each type
of services.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
FROM WHOM PURCHASED ADDRESS
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Administrative support services
IOWA STATE UNIVERSITY Attn:Jane Putzier 3609 AdminSer. Bldg. Ames, IA 50011
Misc. Power Plant Operations
644 INVOICES UNDER $25,000
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------
RELATIONSHIP
----------------------------------------------
"A" = ASSOCIATE
FROM WHOM PURCHASED "NA" = NON
ASSOCIATE AMOUNT
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Administrative support services
IOWA STATE UNIVERSITY NA 30,000
Misc. Power Plant Operations
644 INVOICES UNDER $25,000 1,045,236
- --------------------------------------------------------------------------------------------
$ 24,755,778
- --------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited
to $25,000.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
Medical $ 6,196,582
Pension 2,308,851
401-K 819,148
Long Term Disability 387,207
Post Retirement Benefits 363,407
Employee Relocation 341,140
Life Insurance 643,893
Dental 115,388
Service Awards 72,051
Tuition Reimbursement 62,177
Wellness Employee Assistance Program 39,482
Other 489,407
- --------------------------------------------------------------------------------
$ 11,838,733
- --------------------------------------------------------------------------------
38
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1
"General Advertising Expenses", classifying the items according
to the nature of the advertIsing and as defined in the account
definition. If a particular class includes an amount in excess of
$3,000 applicable to a single payee, show separately the name of
the payee and the aggregate amount applicable thereto.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT TOTAL
- --------------------------------------------------------------------------------
Conservation $ 79,730
- ------------
Energy Center $ 27,500
Cedar Rapids Gazette 10,688
Clarke College 5,000
Globe Gazette 3,112
60 invoices Under $3000 33,430
Customer Information $ 134,118
- --------------------
Meyocks & Priebe 125,000
23 Invoices Under $3000 9,118
Economic Development $ 238,466
- --------------------
Meyocks & Priebe 190,351
CMF&Z 20,000
World Economic 6,905
Society of Manu 4,400
21 Invoices Under $3000 16,810
Employment Advertising $ 158,120
- ----------------------
Nationwide Advertising 36,774
The David Group 3,628
205 Invoices Under $3000 117,718
Institutional Advertising $ 681,169
- -------------------------
Wisconsin Broadcasting 15,000
Wausau Daily Herald 3,122
UW Athletic Department 82,500
TCI Media Service 38,763
TCI Advertising 36,816
Strauss Printing 58,584
Meyocks & Priebe 375,000
KAAL TV 46,580
Bailwick Data 3,440
39
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1
"General Advertising Expenses", classifying the items according
to the nature of the advertIsing and as defined in the account
definition. If a particular class includes an amount in excess of
$3,000 applicable to a single payee, show separately the name of
the payee and the aggregate amount applicable thereto.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT TOTAL
- --------------------------------------------------------------------------------
CONTINUED:
Badger Display 8,613
52 Invoices Under $3000 12,751
Other $ 2,029
- -------
8 Invoices Under $3000
- --------------------------------------------------------------------------------
$ 1,293,632
- --------------------------------------------------------------------------------
40
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses
according to their nature. Payments and expenses permitted by
Section 321(b)(2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C. ~ 441(b)(2) shall
be separately classified.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------------
Industry Dues, Memberships and Fees $ 2,529,780
Shareowner Reporting Expenses 528,435
Miscellaneous Insurance Charges 1,793,829
Economic Development 161,856
Financing Costs 94,473
Other 687,988
- --------------------------------------------------------------------------------
TOTAL $ 5,796,361
- --------------------------------------------------------------------------------
41
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
RENTS
ACCOUNT 931
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 931 "Rents",
classifying such expenses by major groupings of property, as
defined in the account definition of the Uniform System of
Accounts.
- --------------------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT
- --------------------------------------------------------------------------------
Facilities Rental $ 12,309,951
Equipment Rental 2,496,048
Software Rental 999,986
Other 6,285
- --------------------------------------------------------------------------------
TOTAL $ 15,812,270
- --------------------------------------------------------------------------------
42
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other than Income
Taxes". Separate the analysis into two groups (1) other than U.S.
Government taxes, and (2) U.S. Government taxes. Specifiy each of
the various kinds of taxes and show the amounts thereof. Provide
a subtotal for each class of tax.
- --------------------------------------------------------------------------------
KIND OF TAX AMOUNT
- --------------------------------------------------------------------------------
U.S. Government Taxes
- ---------------------
Social Security $ 2,921,236
Federal Unemployment 57,596
Other Than U.S. Government Taxes
- --------------------------------
State Unemployment 232,059
- --------------------------------------------------------------------------------
TOTAL $ 3,210,891
- --------------------------------------------------------------------------------
43
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
DONATIONS
ACCOUNT 426.1
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000 may
be shown in lieu of details.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
NAME OF RECIPIENT PURPOSE OF
DONATION AMOUNT
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cedar Rapids Symphony Holiday Pops Concert $ 20,000
Muscatine Development Corporation 97-99 Pledge 15,000
Theatre Cedar Rapids Holiday Production 10,000
Terrance Hill Foundation Renovation Governor's Mansion 10,000
Renaissance Group Sponsorship Taste of Iowa 1st installment 5,000
Renaissance Group Sponsorship Taste of Iowa 2nd installment 5,000
Dewitt Community Hospital 1998 Donation 5,000
United Way of East Central Iowa Community Assistance Program 5,000
Gladbrook Reinbeck Community Schools Soccer facilities 4,715
St Luke's Hospital Auxiliary Festival of Trees 3,500
Fort Madison Chamber of Commerce Christmas Donation 3,000
Others 499 Invoices 124,521
- ------------------------------------------------------------------------------------------------------------------
TOTAL $ 210,736
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
OTHER DEDUCTIONS
ACCOUNT 426.5
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5 "Other
Deductions", classifying such expenses according to their nature.
- --------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- --------------------------------------------------------------------------------
Merger Expenses $6,193,309
Advertising 257,577
Civic, Political and Related Activities 119,676
Other 110,298
- --------------------------------------------------------------------------------
TOTAL $6,680,860
- --------------------------------------------------------------------------------
45
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
- --------------------------------------------------------------------------------
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
- --------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
Statement of Income or any account thereof. Furnish particulars
as to any significant increases and services rendered or expenses
incurred during the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
- --------------------------------------------------------------------------------
See Schedule XIV - Notes to Financial Statements.
- --------------------------------------------------------------------------------
46
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
For the Year Ended December 31, 1998
-----------------
SCHEDULE XIX FINANCIAL DATA SCHEDULE
If, at the time an annual report on this form is filed, the registrant is
required to submit this report and any amendments thereto electronically via
EDGAR, the registrant shall furnish a Financial Data Schedule. The Schedule
shall set forth the financial and other data specified below that are applicable
to the registrant on a consolidated basis.
<TABLE>
<CAPTION>
Item No. Caption Heading
<S> <C> <C>
1 Net Service Company Property $ 432,678
2 Total Investments 3,514,000
3 Total Current and Accrued Assets 57,059,463
4 Total Deferred Debits (47,489)
5 Balancing Amount for Total Assets and Other Debits -
6 Total Assets and Other Debits 60,958,652
7 Total Proprietary Capital 1
8 Total Long-Term Debt -
9 Notes Payable -
10 Notes Payable to Associate Companies 8,003,086
11 Balancing Amount for Total Current and Accrued Liabilities 49,332,626
12 Total Deferred Credits 3,622,939
13 Accumulated Deferred Income Taxes -
14 Total Liabilities and Proprietary Capital 60,958,652
15 Services Rendered to Associate Companies 144,391,183
16 Services Rendered to Nonassociate Companies -
17 Miscellaneous Income or Loss 2,750,520
18 Total Income 147,141,703
19 Salaries and Wages 47,313,175
20 Employee Pensions and Benefits 11,838,733
21 Balancing Amount for Total Expenses 87,989,795
22 Total Expenses 147,141,703
23 Net Income (Loss) -
24 Total Expenses (Direct Costs) 120,665,333
25 Total Expenses (Indirect Costs) 26,476,370
26 Total Expense (Total) $ 147,141,703
27 Number of Personnel End of Year 1,188
</TABLE>
47
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
EXECUTIVE ORGANIZATION CHART
[ORGANIZATION CHART APPEARS HERE]
48
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
METHODS OF ALLOCATION
RATIO DESCRIPTION
1 UNITS SOLD OR TRANSPORTED RATIO
A ratio, based on appropriate Client Company electric, gas, steam or water
units of sale and/or transport, excluding intra-system sales, for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for a Client Company and the denominator of which is for all
Client Companies (and Interstate Energy Corporation's non-utility and
foreign utility company affiliates for which the Service Company provides
energy realted services, where applicable). The examples of
product-specific units of sales are domestic kilowatt-hour electric sales,
dekatherms of gas sold or transported , units of water, or units of steam.
A separate ratio will be calculated and used for each utility type
(electric, gas, water and steam, etc.).
2 ELECTRIC PEAK LOAD RATIO
A ratio, based on the sum of the monthly domestic firm electric maximum
system demands, including or excluding interruptible loads, as appropriate,
for the immediately preceding twelve consecutive calendar months, the
numerator of which is for a Client Company and the denominator of which is
for all Client Companies.
3 NUMBER OF CUSTOMERS RATIO
A ratio, based on the sum of the firm domestic electric customers (and/or
gas customers, where applicable) at the end of each month for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for a Client Company and the denominator of which is for all
Client Companies.
4 NUMBER OF EMPLOYEES RATIO
A ratio, based on the sum of the number of employees at the end of each
month for the immediately preceding twelve consecutive calendar months, the
numerator of which is for a Client Company or Service Company Function and
the denominator of which is for all Client Companies (and Interstate Energy
Corporation's non-utility and non-domestic utility affiliates for which the
Service Company provides services, where applicable) and/or the Service
Company.
5 CONSTRUCTION EXPENDITURES RATIO
A ratio, based on construction expenditures for the immediately preceding
twelve consecutive calendar months, the numerator of which is for a Client
Company and the denominator of which is for all Client Companies. To the
extent possible, costs will be segregated by utility type (i.e., electric,
gas, water, steam etc.) as well as by function (i.e., production,
transmission, distribution and general). If any remaining
construction-related costs are common to all utility types, such common
costs will be allocated between utility types and functions based on the
total of all construction expenditures.
49
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
METHODS OF ALLOCATION
RATIO DESCRIPTION
Continued
6 CIRCUIT MILES OF ELECTRIC DISTRIBUTION LINES RATIO
A ratio, based on installed circuit miles of domestic electric distribution
lines at the end of the immediately preceding calendar year, the numerator
of which is for a Client Company and the denominator of which is for all
Client Companies.
7 NUMBER OF METERS RATIO
A ratio, based on the sum of the number of installed electric meters
(and/or gas, water or steam meters, where applicable) at the end of each
month for the immediately preceding twelve consecutive calendar months, the
numerator of which is for a Client Company and the denominator of which is
for all Client Companies. A separate ratio will be calculated and used for
each utility type (i.e. electric, gas, water, steam etc.).
8 TOTAL ASSETS RATIO
A ratio, based on the sum of the total assets at the end of each month for
the immediately preceding twelve consecutive calendar months, the numerator
of which is for a Client Company and the denominator of which is for all
Client Companies (and Interstate Energy Corporation's non-utility and
non-domestic utility affiliates for which the Service Company provides
services, where applicable.)
9 CIRCUIT MILES OF ELECTRIC TRANSMISSION LINES RATIO
A ratio, based on installed circuit miles of electric transmission lines at
the end of the immediately preceding calendar year, the numerator of which
is for a Client Company and the denominator of which is for all Client
Companies.
10 NUMBER OF CENTRAL PROCESSING UNIT SECONDS RATIO
A ratio, based on the number of central processing unit seconds expended to
execute mainframe computer software applications for the immediately
preceding twelve consecutive calendar months, the numerator of which is for
a Client Company or Service Company Function, and the denominator of which
is for all Client Companies, (and Interstate Energy Corporation's
non-utility and non-domestic utility affiliates, where applicable) and/or
the Service Company.
11 GROSS PLANT RATIO
A ratio, based on the sum of direct plant at the end of each month for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for a Client Company and the denominator of which is for all
Client Companies (and Interstate Energy Corporation's non-utility and
non-domestic utility affiliates, where applicable).
50
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
METHODS OF ALLOCATION
RATIO DESCRIPTION
Continued:
12 MATERIALS, SUPPLIES AND SERVICES RATIO
A ratio, based on the sum of materials, supplies and services, either
issued from inventory or directly purchased, for the immediately preceding
twelve consecutive calendar months, the numerator of which is for a Client
Company, or function, and the demoinator of which is for all Client
Companies (and Interstate Energy Corporation's non-utility and non-domestic
utility affiliates for which the Service Company provides services, where
applicable) and/or the Service Company.
13 TONS OF COAL BURNED RATIO
A ratio, based on the tons of coal burned for the immediately preceding
twelve consecutive calendar months, the numerator of which is for a Client
Company and the denominator of which is for all Client Companies.
14 GALLONS OF OIL BURNED RATIO
A ratio, based on the gallons of oil burned for the immediately preceding
twelve consecutive calendar months, the numerator of which is for a Client
Company and the denominator of which is for all Client Companies.
15 DEKATHERMS OF GAS RATIO
A ratio, based on the dekatherms of gas purchased for the immediately
preceding twelve consecutive calendar months, the numerator of which is for
a Client Company and the denominator of which is for all Client Companies.
16 MCF PEAK LOAD RATIO
A ratio, based on the sum of the monthly gas maximum system demands,
including or excluding interruptible loads, as appropriate, for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for a Client Company and the denominator of which is for all
Client Companies.
17 FEET OF GAS LINE RATIO
A ratio, based on installed footage of gas lines at the end of the
immediately preceding calendar year, the numerator of which is for a Client
Company and the denominator of which is for all Client Companies.
18 FEET OF STEAM DISTRIBUTION LINES RATIO
A ratio, based on the installed footage of steam lines at the end of the
immediately preceding calendar year, the numerator of which is for a Client
Company and the denominator of which is for all Client Companies.
51
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
METHODS OF ALLOCATION
RATIO DESCRIPTION
Continued:
19 STEAM PEAK LOAD RATIO
A ratio, based on the sum of the monthly steam maximum system demands,
including or excluding interruptible loads, as appropriate, for the
immediately preceding twelve consecutive month calendar year, the numerator
of which is for a Client Company and the denominator of which is for all
Client Companies.
20 FEET OF WATER DISTRIBUTION LINES RATIO
A ratio, based on installed footage of water lines at the end of the
immediately preceding calendar year, the numerator of which is for a Client
Company and the denominator of which is for all Client Companies.
21 WATER PEAK LOAD RATIO
A ratio, based on the sum of the monthly water maximum system demands,
including or excluding interruptible loads, as appropriate, for the
immediately preceding twelve consecutive months calendar year, the
numerator of which is for a Client Company and the denominator of which is
for all Client Companies.
22 NUMBER OF BILLS RATIO
A ratio, based on the sum of the number of monthly bills issued, for the
immediately preceding twelve calendar months, the numerator of which is for
a Client Company and the denominator of which is for all Client Companies.
23 GENERAL RATIO
A ratio based on the sum of all Service Company expenses directly assigned
or allocated, based on allocators other than this "General Ratio" to Client
Companies (excluding fuel, gas, purchased power and the cost of goods sold)
for the immediately preceding twelve consecutive calendar months, the
numerator of which is for a Client Company or Function and the denominator
of which is for all Client Companies (and Interstate Energy Corporation's
non-utility and non-domestic utility affiliates, where applicable) and/or
the Service Company. As used herein, "cost of goods sold" represents
materials that are resold to the ultimate consumer.
52
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The following annual statement was supplied to each associate company in support
of the amount of compensation for use of capital billed during 1998.
In accordance with Instruction 01-12 of the Securities and Exchange Commission's
Uniform System of of Accounts for Mutual Service Companies and Subsidiary
Service Companies, Alliant Energy Corporate Services, Inc. submits the following
information on the billing of interest on borrowed funds to associate companies
for the year 1998:
A. Amount of interest billed to associate companies is contained on page 25,
Analysis of Billing, as part of the direct costs charged.
B. The basis for billing of interest to the associate companies is based on
the daily outstanding balance of all loans outstanding during the month.
53
<PAGE>
ANNUAL REPORT OF ALLIANT ENERGY CORPORATE SERVICES, INC.
---------------------------------------
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of 1935
and the rules and regulations of the Securities and Exchange Commission issued
thereunder, the undersigned company has duly caused this report to be signed on
its behalf by the undersigned officer thereunto duly authorized.
Alliant Energy Corporate Services, Inc.
------------------------------------------
(Name of Reporting Company)
By: /s/ John E. Ebright
------------------------------------------
(Signature of Signing Officer)
John E. Ebright, Vice President-Controller
------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 29, 1999
-----------------
54
<PAGE>
EXHIBIT INDEX
-------------
Exhibit Description
------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> OPUR2
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> APR-21-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 432,678
<TOTAL-INVESTMENTS> 3,514,000
<TOTAL-CURRENT-ASSETS> 57,059,463
<TOTAL-DEFERRED-DEBITS> (47,489)
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 60,958,652
<TOTAL-PROPRIETARY-CAPITAL> 1
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 8,003,086
<OTHER-CURR-AND-ACCRUED-LIAB> 49,332,626
<TOTAL-DEFERRED-CREDITS> 3,622,939
<DEFERRED-INCOME-TAX> 0
<TOT-LIABIL-AND-PROPRIET-CAP> 60,958,652
<SERVICES-ASSOCIATE-COMPANIES> 144,391,183
<SERVICES-NON-ASSOCIATE-COMP> 0
<MISC-INCOME-OR-LOSS> 2,750,520
<TOTAL-INCOME> 147,141,703
<SALARIES-AND-WAGES> 47,313,175
<EMPLOYEE-PENSION-AND-BENEFIT> 11,838,733
<OTHER-EXPENSES> 0
<TOTAL-EXPENSES> 147,141,703
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 120,665,333
<TOTAL-EXPENSES-INDIRECT-COST> 26,476,370
<TOT-EXP-DIRECT-AND-INDIRECT> 147,141,703
<PERSONNEL-END-OF-YEAR> 1188
