INTERSTATE ENERGY CORP
U-1/A, 1999-04-20
ELECTRIC & OTHER SERVICES COMBINED
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                              (As filed April 20, 1999)

                                                   File No. 70-9455

                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.  20549
               --------------------------------------------------------
                                   Amendment No. 1
                                          on
                                      FORM U-1/A
                                         to 
                              APPLICATION OR DECLARATION
                                      UNDER THE 
                      PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
              ---------------------------------------------------------

                            INTERSTATE ENERGY CORPORATION
                            ALLIANT ENERGY RESOURCES, INC.
                              222 West Washington Avenue
                               Madison, Wisconsin 53703

                    (Names of companies filing this statement and
                      addresses of principal executive offices)
                -----------------------------------------------------
                            INTERSTATE ENERGY CORPORATION

                   (Name of top registered holding company parent)
                _____________________________________________________

                         Erroll B. Davis, Jr., President and
                               Chief Executive Officer
                            Interstate Energy Corporation
                              222 West Washington Avenue
                            Madison, Wisconsin 53703-0192

                       (Name and address of agent for service)

          The Commission is requested to send copies of all notices, orders
          and communications in connection with this Application or
          Declaration to:

          Barbara J. Swan, General Counsel   William T. Baker, Jr., Esq.
          Interstate Energy Corporation      Thelen Reid & Priest LLP
          222 West Washington Avenue         40 West 57th Street
          Madison, Wisconsin 53703-0192      New York, New York 10019

          <PAGE>

               The Application or Declaration filed in this proceeding on
          February 18, 1999, is hereby amended as follows:


               1.   ITEM 1.8 FINANCING SUBSIDIARIES is amended by adding
                             ----------------------
          the following sentence at the end thereof:

                "IEC requests that the Commission reserve jurisdiction over
               any transfer of proceeds of financing by any Financing
               Subsidiary to IEC pending completion of the record." 

               2.   ITEM 1.11 SALES OF SERVICES AND GOODS AMONG AER AND
                              -----------------------------------------
          OTHER NON-UTILITY SUBSIDIARIES OF IEC is amended by adding the
          -------------------------------------
          following sentence at the end thereof:

               "It is requested that the Commission reserve jurisdiction
               over the granting of an exemption from the cost standards of
               Section 13(b) of the Act in connection with the sale of
               goods or services to any associate company described in
               subparagraph (v), above, pending completion of the record."

               3.   The last paragraph in ITEM 1.12 ACTIVITIES OF RULE 58
                                                    ---------------------
          SUBSIDIARIES OUTSIDE THE UNITED STATES, is amended and restated
          --------------------------------------
          to read as follows:

               "AER requests that the Commission (i) reserve jurisdiction
               over Energy Marketing activities outside the United States
               pending completion of the record in this proceeding, (1) 
               (ii) authorize AER and its direct and indirect subsidiaries
               to provide Energy Management Services and Consulting
               Services anywhere outside the United States, (2) and
               (iii) reserve jurisdiction over other activities of Rule 58
               Subsidiaries outside the United States, pending completion
               of the record."



          ----------------------------

             (1)    See SEI Holdings, Inc., Holding Co. Act Rel. No. 26581
          (September 26, 1996) (reserving jurisdiction over activities of power
          and gas marketing subsidiary outside the United States).  SEI
          Holdings, Inc. has filed a post-effective amendment in File 70-8723
          requesting a release of jurisdiction reserved in the September 26,
          1996, order in order to allow power and gas marketing activities in
           Canada.

          (2)       The Commission has heretofore authorized non-utility
          subsidiaries of a registered holding company to sell similarly-defined
          energy management services and technical consulting services to
          customers both within and outside the United States.  See Columbia
          Energy Group, et al., Holding Co. Act Release No. 26498 (March 25,
          1996); and Cinergy Corp., Holding Co. Act Release No. 26662
          (February 7, 1997).

                                            2

          <PAGE>

                                      SIGNATURES

               Pursuant to the requirements of the Public Utility Holding
          Company Act of 1935, as amended, the undersigned companies have
          duly caused this statement amending the Application or
          Declaration filed herein to be signed on their behalf by the
          undersigned thereunto duly authorized.


                             INTERSTATE ENERGY CORPORATION



                             By: /s/ Eroll B. Davis                          
                                -------------------------------------
                                Name:     Erroll B. Davis
                                Title:    President and Chief Executive Officer

                             ALLIANT ENERGY RESOURCES, INC.



                             By: /s/ James E. Hoffman
                                -------------------------------------
                                Name:     James E. Hoffman
                                Title:    President



          Date:     April 20, 1999



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