SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
AMENDMENT NO. 1 TO
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
or
[X] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from _______ to _______
<TABLE>
<CAPTION>
Commission Name of Registrant, State of Incorporation, IRS Employer
File Number Address of Principal Executive Offices and Telephone Number Identification Number
- ----------- ----------------------------------------------------------- ---------------------
<S> <C> <C>
1-9894 ALLIANT ENERGY CORPORATION 39-1380265
(a Wisconsin corporation)
222 West Washington Avenue
Madison, Wisconsin 53703
Telephone (608)252-3311
0-4117-1 IES UTILITIES INC. 42-0331370
(an Iowa corporation)
Alliant Energy Tower
Cedar Rapids, Iowa 52401
Telephone (319)398-4411
0-337 WISCONSIN POWER AND LIGHT COMPANY 39-0714890
(a Wisconsin corporation)
222 West Washington Avenue
Madison, Wisconsin 53703
Telephone (608)252-3311
Interstate Energy Corporation
(Former name of Alliant Energy Corporation)
</TABLE>
Indicate by check mark whether the registrants (1) have filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past (90) days. Yes X No _____
This combined Form 10-Q/A is separately filed by Alliant Energy Corporation, IES
Utilities Inc. and Wisconsin Power and Light Company. Information contained
herein relating to any individual registrant is filed by such registrant on its
own behalf. Each registrant makes no representation as to information relating
to the other registrants.
Number of shares outstanding of each class of common stock as of July 31, 1999:
Alliant Energy Corporation Common stock, $.01 par value, 78,457,664
shares outstanding
IES Utilities Inc. Common stock, $2.50 par value, 13,370,788
shares outstanding (all of which are owned
beneficially and of record by Alliant Energy
Corporation)
Wisconsin Power and Light Company Common stock, $5 par value, 13,236,601
shares outstanding (all of which are owned
beneficially and of record by Alliant Energy
Corporation)
<PAGE>
The undersigned registrants hereby amend Item 1 of their combined Quarterly
Report on Form 10-Q for the six months ended June 30, 1999 to provide in its
entirety as follows:
2
<PAGE>
DEFINITIONS
Certain abbreviations or acronyms used in the text and notes of this combined
Form 10-Q/A are defined below:
Abbreviation or Acronym Definition
- ----------------------- ----------
Alliant Energy Alliant Energy Corporation
Corporate Services Alliant Energy Corporate Services, Inc.
IESU IES Utilities Inc.
IPC Interstate Power Company
McLeod McLeodUSA Incorporated
Resources Alliant Energy Resources, Inc.
SEC Securities and Exchange Commission
WP&L Wisconsin Power and Light Company
3
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
ALLIANT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
- --------------------------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Operating revenues:
Electric utility $ 366,152 $ 380,414 $ 717,490 $ 738,165
Gas utility 46,200 45,267 179,885 175,313
Nonregulated and other 73,762 65,331 135,594 133,817
-------------- -------------- -------------- --------------
486,114 491,012 1,032,969 1,047,295
-------------- -------------- -------------- --------------
- --------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Electric and steam production fuels 53,360 69,538 118,763 139,094
Purchased power 72,440 73,417 124,505 129,563
Cost of utility gas sold 22,666 23,907 104,009 101,186
Other operation 148,291 158,679 278,657 316,033
Maintenance 31,934 33,389 55,746 58,647
Depreciation and amortization 70,475 72,857 144,115 142,690
Taxes other than income taxes 26,690 26,598 53,929 53,575
-------------- -------------- -------------- --------------
425,856 458,385 879,724 940,788
-------------- -------------- -------------- --------------
- --------------------------------------------------------------------------------------------------------------------------------
Operating income 60,258 32,627 153,245 106,507
-------------- -------------- -------------- --------------
- --------------------------------------------------------------------------------------------------------------------------------
Interest expense and other:
Interest expense 34,715 32,231 68,114 63,155
Allowance for funds used during construction (1,782) (1,638) (3,716) (3,141)
Preferred dividend requirements of subsidiaries 1,677 1,675 3,353 3,349
Miscellaneous, net (37,065) 11,035 (43,834) 7,159
-------------- -------------- -------------- --------------
(2,455) 43,303 23,917 70,522
-------------- -------------- -------------- --------------
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 62,713 (10,676) 129,328 35,985
-------------- -------------- -------------- --------------
- --------------------------------------------------------------------------------------------------------------------------------
Income taxes 24,167 (1,578) 49,039 16,208
-------------- -------------- -------------- --------------
- --------------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ 38,546 $ (9,098) $ 80,289 $ 19,777
============== ============== ============== ==============
- --------------------------------------------------------------------------------------------------------------------------------
Average number of common shares outstanding 78,214 76,800 77,997 76,689
============== ============== ============== ==============
- --------------------------------------------------------------------------------------------------------------------------------
Earnings per average common share (basic and diluted) $ 0.49 $ (0.12) $ 1.03 $ 0.26
============== ============== ============== ==============
- --------------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
4
<PAGE>
<TABLE>
ALLIANT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30,
1999 December 31,
ASSETS (Unaudited) 1998
- --------------------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C>
Property, plant and equipment:
Utility -
Plant in service -
Electric $ 4,923,657 $ 4,866,152
Gas 522,436 515,074
Other 432,694 409,711
---------------- ----------------
5,878,787 5,790,937
Less - Accumulated depreciation 2,985,592 2,852,605
---------------- ----------------
2,893,195 2,938,332
Construction work in progress 128,757 119,032
Nuclear fuel, net of amortization 54,762 44,316
---------------- ----------------
3,076,714 3,101,680
Other property, plant and equipment, net of accumulated
depreciation and amortization of $191,728 and $178,248, respectively 357,856 355,100
---------------- ----------------
3,434,570 3,456,780
---------------- ----------------
- --------------------------------------------------------------------------------------------------------------
Current assets:
Cash and temporary cash investments 29,403 31,827
Accounts receivable:
Customer, less allowance for doubtful accounts
of $2,201 and $2,518, respectively 84,415 102,966
Other, less allowance for doubtful accounts
of $807 and $490, respectively 25,734 26,054
Notes receivable, less allowance for doubtful
accounts of $114 and $120, respectively 5,579 13,392
Income tax refunds receivable 18,399 14,826
Production fuel, at average cost 42,323 54,140
Materials and supplies, at average cost 55,081 53,490
Gas stored underground, at average cost 12,518 26,013
Regulatory assets 25,139 30,796
Prepaid gross receipts tax 21,912 22,222
Other 17,663 15,941
---------------- ----------------
338,166 391,667
---------------- ----------------
- --------------------------------------------------------------------------------------------------------------
Investments:
Investment in McLeodUSA Inc. 527,800 320,280
Nuclear decommissioning trust funds 251,475 225,803
Investment in foreign entities 133,745 68,882
Other 52,977 54,776
---------------- ----------------
965,997 669,741
---------------- ----------------
- --------------------------------------------------------------------------------------------------------------
Other assets:
Regulatory assets 272,086 284,467
Deferred charges and other 166,317 156,682
---------------- ----------------
438,403 441,149
---------------- ----------------
- --------------------------------------------------------------------------------------------------------------
Total assets $ 5,177,136 $ 4,959,337
================ ================
- --------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
5
<PAGE>
<TABLE>
ALLIANT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS (CONTINUED)
<CAPTION>
June 30,
1999 December 31,
CAPITALIZATION AND LIABILITIES (Unaudited) 1998
- ------------------------------------------------------------------------------------------------------------------------
(in thousands, except share amounts)
<S> <C> <C>
Capitalization:
Common stock - $.01 par value - authorized 200,000,000 shares;
outstanding 78,424,441 and 77,630,043 shares, respectively $ 784 $ 776
Additional paid-in capital 926,242 905,130
Retained earnings 539,769 537,372
Accumulated other comprehensive income 300,613 163,017
----------------- -----------------
Total common equity 1,767,408 1,606,295
----------------- -----------------
Cumulative preferred stock of subsidiaries:
Par/Stated Authorized Shares Mandatory
Value Shares Outstanding Series Redemption
$ 100 * 449,765 4.40% - 6.20% No 44,977 44,977
$ 25 * 599,460 6.50% No 14,986 14,986
$ 50 466,406 366,406 4.30% - 6.10% No 18,320 18,320
$ 50 ** 216,381 4.36% - 7.76% No 10,819 10,819
$ 50 ** 545,000 6.40% Yes *** 27,250 27,250
----------------- -----------------
116,352 116,352
Less: unamortized expenses (2,784) (2,854)
----------------- -----------------
Total cumulative preferred stock of subsidiaries 113,568 113,498
----------------- -----------------
Long-term debt (excluding current portion) 1,514,498 1,543,131
----------------- -----------------
3,395,474 3,262,924
----------------- -----------------
* 3,750,000 authorized shares in total between the two classes
** 2,000,000 authorized shares in total between the two classes
*** $53.20 mandatory redemption price
- ------------------------------------------------------------------------------------------------------------------------
Current liabilities:
Current maturities and sinking funds 53,740 63,414
Variable rate demand bonds 56,975 56,975
Commercial paper 125,500 64,500
Notes payable 50,024 51,784
Capital lease obligations 12,277 11,978
Accounts payable 145,888 204,297
Accrued taxes 84,622 84,921
Other 107,544 111,685
----------------- -----------------
636,570 649,554
----------------- -----------------
- ------------------------------------------------------------------------------------------------------------------------
Other long-term liabilities and deferred credits:
Accumulated deferred income taxes 774,492 691,624
Accumulated deferred investment tax credits 74,585 77,313
Environmental liabilities 68,917 68,399
Customer advances 35,416 37,171
Capital lease obligations 25,611 13,755
Other 166,071 158,597
----------------- -----------------
1,145,092 1,046,859
----------------- -----------------
- ------------------------------------------------------------------------------------------------------------------------
Total capitalization and liabilities $ 5,177,136 $ 4,959,337
================= =================
- ------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
6
<PAGE>
<TABLE>
ALLIANT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
For the Six Months Ended June 30,
1999 1998
- -------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 80,289 $ 19,777
Adjustments to reconcile net income to net cash flows
from operating
activities:
Depreciation and amortization 144,115 142,690
Amortization of nuclear fuel 9,142 8,555
Amortization of deferred energy efficiency expenditures 13,250 14,443
Deferred taxes and investment tax credits (8,487) (13,075)
Refueling outage provision 4,412 (9,341)
Impairment of oil and gas properties - 6,746
(Gain) loss on disposition of assets, net (37,591) (1,020)
Other 1,502 4,998
Other changes in assets and liabilities:
Accounts receivable 18,871 25,338
Notes receivable 7,813 6,396
Production fuel 11,817 242
Gas stored underground 13,495 22,232
Accounts payable (58,409) (35,181)
Accrued taxes (299) (6,049)
Adjustment clause balances (9,240) 5,791
Benefit obligations and other 13,094 28,786
----------------- ----------------
Net cash flows from operating activities 203,774 221,328
----------------- ----------------
- -------------------------------------------------------------------------------------------------
Cash flows used for financing activities:
Common stock dividends declared (77,892) (63,649)
Dividends payable 287 (15,806)
Proceeds from issuance of common stock 20,888 10,634
Net change in Alliant Energy Resources, Inc.
credit facility 15,495 71,587
Proceeds from issuance of other long-term debt 12,144 2,516
Reductions in other long-term debt (67,016) (1,262)
Net change in short-term borrowings 59,240 (42,525)
Principal payments under capital lease obligations (6,869) (8,116)
Other (2) (36)
----------------- ----------------
Net cash flows used for financing activities (43,725) (46,657)
----------------- ----------------
- -------------------------------------------------------------------------------------------------
Cashflows used for investing activities:
Construction and acquisition expenditures:
Utility (105,054) (93,508)
Nonregulated businesses (78,654) (63,928)
Nuclear decommissioning trust funds (17,658) (15,863)
Proceeds from disposition of assets 47,209 3,997
Shared savings expenditures (10,594) (3,117)
Other 2,278 2,138
----------------- ----------------
Net cash flows used for investing activities (162,473) (170,281)
----------------- ----------------
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and temporary cash
investments (2,424) 4,390
----------------- ----------------
- -------------------------------------------------------------------------------------------------
Cash and temporary cash investments at beginning of period 31,827 27,329
----------------- ----------------
- -------------------------------------------------------------------------------------------------
Cash and temporary cash investments at end of period $ 29,403 $ 31,719
================= ================
- -------------------------------------------------------------------------------------------------
Supplemental cash flow information: Cash paid during
the period for:
Interest $ 68,166 $ 62,132
================= ================
Income taxes $ 56,130 $ 45,435
================= ================
Noncash investing and financing activities:
Capital lease obligations incurred $ 18,252 $ 1,271
================= ================
- -------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
7
<PAGE>
ALLIANT ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. At the Annual Shareowners meeting on May 19, 1999, the shareowners
approved a proposal to change the name of the corporation from Interstate
Energy Corporation to Alliant Energy Corporation. The name change was
effective May 20, 1999.
The interim consolidated financial statements included herein have been
prepared by Alliant Energy, without audit, pursuant to the rules and
regulations of the SEC. Accordingly, certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted, although management believes that the disclosures
are adequate to make the information presented not misleading. The
consolidated financial statements include Alliant Energy and its
consolidated subsidiaries (WP&L, IESU, IPC, Resources and Corporate
Services). These financial statements should be read in conjunction with
the financial statements and the notes thereto included in Alliant
Energy's, IESU's and WP&L's latest Annual Report on Form 10-K.
In the opinion of management, all adjustments, which are normal and
recurring in nature, necessary for a fair presentation of (a) the
consolidated results of operations for the three and six months ended
June 30, 1999 and 1998, (b) the consolidated financial position at June
30, 1999 and December 31, 1998, and (c) the consolidated statement of
cash flows for the six months ended June 30, 1999 and 1998, have been
made. Because of the seasonal nature of IESU's, WP&L's and IPC's
operations, results for the three and six months ended June 30, 1999 are
not necessarily indicative of results that may be expected for the year
ending December 31, 1999. Certain prior period amounts have been
reclassified on a basis consistent with the 1999 presentation.
2. Alliant Energy's comprehensive income (loss), and the components of other
comprehensive income (loss), net of taxes, were as follows (in
thousands):
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Net income (loss) $ 38,546 ($ 9,098) $ 80,289 $19,777
Other comprehensive income (loss):
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during
period, net of tax (1) 84,742 (20,358) 159,773 41,471
Less: reclassification adjustment for gains
included in net income, net of tax (2) (21,324) -- (21,324) --
------------ ---------- ------------ ----------
Net unrealized gains (losses) 63,418 (20,358) 138,449 41,471
------------ ---------- ------------ ----------
Foreign currency translation adjustments (239) 1 (853) 56
------------ ---------- ------------ ----------
Other comprehensive income (loss) 63,179 (20,357) 137,596 41,527
============ ========== ============ ==========
Comprehensive income (loss) $101,725 ($29,455) $217,885 $61,304
============ ========== ============ ==========
(1) Primarily due to quarterly adjustments to the estimated fair value of
Alliant Energy's investment in McLeod.
8
<PAGE>
(2) The second quarter 1999 earnings included a pre-tax gain of $33.8 million
($0.27 per share) from the sale of approximately 640,000 shares of McLeod
stock held by Alliant Energy. Following completion of the May 1999 sale,
Alliant Energy still held beneficial ownership in approximately 9.6
million shares of McLeod stock. McLeod declared a 2-for-1 stock split
effective July 1999.
</TABLE>
IESU and WP&L had no comprehensive income in the periods presented.
3. Certain financial information relating to Alliant Energy's significant
business segments is presented below:
<TABLE>
<CAPTION>
Alliant
-------------------------------------------
Regulated Domestic Utilities Nonregulated Energy
-------------------------------------------
Electric Gas Other Total Businesses Other Consolidated
----------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Three Months Ended
June 30, 1999
Operating revenues $366,152 $46,200 $7,820 $420,172 $66,595 ($653) $486,114
Operating income (loss) 56,155 (2,018) 1,529 55,666 4,101 491 60,258
Net income (loss) 17,138 21,560 (152) 38,546
Three Months Ended
June 30, 1998
Operating revenues $380,414 $45,267 $7,424 $433,105 $58,305 ($398) $491,012
Operating income (loss) 38,826 (7,404) 1,327 32,749 689 (811) 32,627
Net loss (3,024) (2,925) (3,149) (9,098)
Six Months Ended
June 30, 1999
Operating revenues $717,490 $179,885 $17,024 $914,399 $119,794 ($1,224) $1,032,969
Operating income 124,770 21,921 3,883 150,574 2,265 406 153,245
Net income (loss) 61,905 19,654 (1,270) 80,289
Six Months Ended
June 30, 1998
Operating revenues $738,165 $175,313 $15,833 $929,311 $118,627 ($643) $1,047,295
Operating income (loss) 94,664 14,971 3,158 112,793 (4,810) (1,476) 106,507
Net income (loss) 30,153 (6,925) (3,451) 19,777
</TABLE>
Resources' (i.e., the nonregulated businesses) assets increased $263
million during the first six months of 1999, primarily due to the
increase in market value of its investment in McLeod and additional
investments in foreign entities. Intersegment revenues were not material
to Alliant Energy's operations and there was no single customer whose
revenues exceeded 10% or more of Alliant Energy's consolidated revenues.
4. The provisions for income taxes are based on the estimated annual
effective tax rate, which differs from the federal statutory rate of 35%
principally due to: state income taxes, tax credits, effects of utility
rate making and certain nondeductible expenses.
5. At June 30, 1999, Alliant Energy had $133.7 million of investments in
foreign entities on its Consolidated Balance Sheets that primarily
included investments in several New Zealand utility entities and
investments in several generation facilities in China. Alliant Energy
accounts for the China investments under the equity method and the other
investments under the cost method. The geographic concentration of
Alliant Energy's investments in foreign entities at June 30, 1999,
included investments of approximately $96.2 million in New Zealand, $37.0
million in China and $0.5 million in other countries.
6. Summary financial information for Resources was as follows (in
thousands):
June 30,
1999
--------------
Current assets $79,479
Non-current assets 1,052,828
Current liabilities 55,860
Non-current liabilities
(excludes minority interest) 250,265
Minority interest 7,128
Refer to the "Nonregulated Businesses" column of Note 3 for summary
income statement data of Resources.
9
<PAGE>
<TABLE>
<CAPTION>
IES UTILITIES INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Operating revenues:
Electric utility $ 142,209 $ 147,640 $ 282,226 $ 288,290
Gas utility 22,012 20,921 83,308 81,316
Steam and other 6,572 6,172 14,524 13,405
--------------- --------------- --------------- ---------------
170,793 174,733 380,058 383,011
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Electric and steam production fuels 12,285 21,284 38,873 51,933
Purchased power 27,142 25,768 40,292 36,817
Cost of gas sold 11,623 10,782 49,535 48,439
Other operation 45,167 44,869 92,607 91,871
Maintenance 12,572 13,960 22,477 24,951
Depreciation and amortization 25,481 23,907 50,963 48,242
Taxes other than income taxes 12,468 12,407 25,083 24,713
--------------- --------------- --------------- ---------------
146,738 152,977 319,830 326,966
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Operating income 24,055 21,756 60,228 56,045
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Interest expense and other:
Interest expense 14,434 12,955 27,638 26,030
Allowance for funds used during construction (535) (801) (1,384) (1,566)
Miscellaneous, net (2,499) 4,167 (3,355) 4,446
--------------- --------------- --------------- ---------------
11,400 16,321 22,899 28,910
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Income before income taxes 12,655 5,435 37,329 27,135
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Income taxes 5,611 2,474 15,828 12,515
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Net income 7,044 2,961 21,501 14,620
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Preferred dividend requirements 229 229 457 457
--------------- --------------- --------------- ---------------
- -----------------------------------------------------------------------------------------------------------------------------
Earnings available for common stock $ 6,815 $ 2,732 $ 21,044 $ 14,163
=============== =============== =============== ===============
- -----------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
10
<PAGE>
<TABLE>
IES UTILITIES INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30,
1999 December 31,
ASSETS (Unaudited) 1998
- ----------------------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C>
Property, plant and equipment:
Utility -
Plant in service -
Electric $ 2,163,280 $ 2,140,322
Gas 200,955 198,488
Steam 55,794 55,797
Common 126,385 106,940
----------------- -----------------
2,546,414 2,501,547
Less - Accumulated depreciation 1,266,117 1,209,204
----------------- -----------------
1,280,297 1,292,343
Construction work in progress 44,849 48,991
Leased nuclear fuel, net of amortization 37,804 25,644
----------------- -----------------
1,362,950 1,366,978
Other property, plant and equipment, net of accumulated
depreciation and amortization of $2,021 and $1,948, respectively 5,549 5,623
----------------- -----------------
1,368,499 1,372,601
----------------- -----------------
- ----------------------------------------------------------------------------------------------------------------
Current assets:
Cash and temporary cash investments 2,195 4,175
Temporary cash investments with associated companies - 53,729
Accounts receivable:
Customer, less allowance for doubtful accounts
of $593 and $1,058, respectively 5,420 16,703
Associated companies 1,718 2,662
Other, less allowance for doubtful accounts
of $672 and $357, respectively 9,036 10,346
Production fuel, at average cost 11,445 11,863
Materials and supplies, at average cost 25,050 25,591
Gas stored underground, at average cost 3,798 12,284
Regulatory assets 16,790 23,487
Prepayments and other 10,788 4,185
----------------- -----------------
86,240 165,025
----------------- -----------------
- ----------------------------------------------------------------------------------------------------------------
Investments:
Nuclear decommissioning trust funds 99,459 91,691
Other 6,457 6,019
----------------- -----------------
105,916 97,710
----------------- -----------------
- ----------------------------------------------------------------------------------------------------------------
Other assets:
Regulatory assets 130,217 137,908
Deferred charges and other 15,038 15,734
----------------- -----------------
145,255 153,642
----------------- -----------------
- ----------------------------------------------------------------------------------------------------------------
Total assets $ 1,705,910 $ 1,788,978
================= =================
- ----------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
11
<PAGE>
<TABLE>
IES UTILITIES INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
<CAPTION>
June 30,
1999 December 31,
CAPITALIZATION AND LIABILITIES (Unaudited) 1998
- --------------------------------------------------------------------------------------------------------------------
(in thousands, except share amounts)
<S> <C> <C>
Capitalization:
Common stock - $2.50 par value - authorized 24,000,000
shares; 13,370,788 shares outstanding $ 33,427 $ 33,427
Additional paid-in capital 279,042 279,042
Retained earnings 237,783 275,372
------------------ -----------------
Total common equity 550,252 587,841
Cumulative preferred stock, not mandatorily redeemable -
$50 par value - authorized 466,406 shares; 366,406 shares outstanding 18,320 18,320
Long-term debt (excluding current portion) 550,952 602,020
------------------ -----------------
1,119,524 1,208,181
------------------ -----------------
- --------------------------------------------------------------------------------------------------------------------
Current liabilities:
Current maturities and sinking funds 51,196 50,140
Capital lease obligations 12,263 11,965
Notes payable to associated companies 29,706 -
Accounts payable 23,733 43,953
Accounts payable to associated companies 20,140 22,487
Accrued payroll and vacations 7,546 6,365
Accrued interest 10,817 12,045
Accrued taxes 47,128 55,295
Accumulated refueling outage provision 11,017 6,605
Environmental liabilities 5,448 5,660
Other 7,823 17,617
------------------ -----------------
226,817 232,132
------------------ -----------------
- --------------------------------------------------------------------------------------------------------------------
Other long-term liabilities and deferred credits:
Accumulated deferred income taxes 221,362 224,510
Accumulated deferred investment tax credits 27,963 29,243
Environmental liabilities 28,243 29,195
Pension and other benefit obligations 28,317 25,655
Capital lease obligations 25,541 13,679
Other 28,143 26,383
------------------ -----------------
359,569 348,665
------------------ -----------------
- --------------------------------------------------------------------------------------------------------------------
Total capitalization and liabilities $ 1,705,910 $ 1,788,978
================== =================
- --------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
12
<PAGE>
<TABLE>
IES UTILITIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
For the Six Months Ended June 30,
1999 1998
- ------------------------------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 21,501 $ 14,620
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation and amortization 50,963 48,242
Amortization of leased nuclear fuel 6,092 5,549
Amortization of deferred energy efficiency expenditures 9,518 10,103
Deferred taxes and investment tax credits (6,745) (4,040)
Refueling outage provision 4,412 (9,341)
Other 529 536
Other changes in assets and liabilities:
Accounts receivable 13,537 26,121
Gas stored underground 8,486 15,056
Accounts payable (22,567) (10,188)
Accrued taxes (8,167) (13,734)
Adjustment clause balances (8,488) 2,157
Benefit obligations and other 10,397 20,444
------------------- ------------------
Net cash flows from operating activities 79,468 105,525
------------------- ------------------
- ------------------------------------------------------------------------------------------------------------------------
Cash flows used for financing activities:
Common stock dividends declared (58,633) (18,840)
Dividends payable (4,840) 4,840
Preferred stock dividends (457) (457)
Reductions in long-term debt (50,140) (140)
Net change in short-term borrowings 29,706 -
Principal payments under capital lease obligations (6,869) (8,116)
Other (3) -
------------------- ------------------
Net cash flows used for financing activities (91,236) (22,713)
------------------- ------------------
- ------------------------------------------------------------------------------------------------------------------------
Cash flows used for investing activities:
Utility construction expenditures (41,173) (42,404)
Nuclear decommissioning trust funds (3,004) (3,004)
Other 236 100
------------------- ------------------
Net cash flows used for investing activities (43,941) (45,308)
------------------- ------------------
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and temporary cash investments (55,709) 37,504
------------------- ------------------
- ------------------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at beginning of period 57,904 230
------------------- ------------------
- ------------------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at end of period $ 2,195 $ 37,734
=================== ==================
- ------------------------------------------------------------------------------------------------------------------------
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 24,714 $ 24,702
=================== ==================
Income taxes $ 30,824 $ 33,468
=================== ==================
Noncash investing and financing activities - Capital lease obligations incurred $ 18,252 $ 1,271
=================== ==================
- ------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
13
<PAGE>
IES UTILITIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Except as modified below, the Alliant Energy Notes to Consolidated
Financial Statements are incorporated by reference insofar as they
relate to IESU. Alliant Energy Note 5 does not relate to IESU and,
therefore, is not incorporated by reference.
1. The interim consolidated financial statements included herein have been
prepared by IESU, without audit, pursuant to the rules and regulations
of the SEC. Accordingly, certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted, although management believes that the disclosures are adequate
to make the information presented not misleading. The consolidated
financial statements include IESU and its consolidated wholly-owned
subsidiary, IES Ventures Inc. IESU is a subsidiary of Alliant Energy.
These financial statements should be read in conjunction with the
financial statements and the notes thereto included in IESU's latest
Annual Report on Form 10-K.
In the opinion of management, all adjustments, which are normal and
recurring in nature, necessary for a fair presentation of (a) the
consolidated results of operations for the three and six months ended
June 30, 1999 and 1998, (b) the consolidated financial position at June
30, 1999 and December 31, 1998, and (c) the consolidated statement of
cash flows for the six months ended June 30, 1999 and 1998, have been
made. Because of the seasonal nature of IESU's operations, results for
the three and six months ended June 30, 1999 are not necessarily
indicative of results that may be expected for the year ending December
31, 1999. Certain prior period amounts have been reclassified on a
basis consistent with the 1999 presentation.
14
<PAGE>
<TABLE>
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Operating revenues:
Electric utility $ 150,510 $ 154,314 $ 300,455 $ 305,624
Gas utility 15,358 16,943 67,151 67,261
Water 1,248 1,252 2,500 2,428
--------------- --------------- --------------- ---------------
167,116 172,509 370,106 375,313
--------------- --------------- --------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Electric production fuels 26,014 29,471 53,380 58,368
Purchased power 28,425 30,238 52,424 58,839
Cost of gas sold 5,798 8,515 36,979 39,229
Other operation 35,432 39,894 61,540 73,897
Maintenance 13,775 14,479 22,879 24,447
Depreciation and amortization 28,407 31,580 59,546 60,838
Taxes other than income taxes 7,355 7,504 15,057 15,215
--------------- --------------- --------------- ---------------
145,206 161,681 301,805 330,833
--------------- --------------- --------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------------
Operating income 21,910 10,828 68,301 44,480
--------------- --------------- --------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------------
Interest expense and other:
Interest expense 10,078 8,984 19,943 17,367
Allowance for funds used during construction (1,109) (742) (2,032) (1,398)
Miscellaneous, net 1,996 3,142 (2,348) 1,276
--------------- --------------- --------------- ---------------
10,965 11,384 15,563 17,245
--------------- --------------- --------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes 10,945 (556) 52,738 27,235
--------------- --------------- --------------- ---------------
- --------------------------------------------------------------------------------------- ----------------------------------
Income taxes 3,992 677 19,497 10,870
--------------- --------------- --------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------------
Net income (loss) 6,953 (1,233) 33,241 16,365
--------------- --------------- --------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------------
Preferred dividend requirements 828 828 1,656 1,656
--------------- --------------- --------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------------
Earnings available for common stock $ 6,125 $ (2,061) $ 31,585 $ 14,709
=============== =============== =============== ===============
- ------------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
15
<PAGE>
<TABLE>
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30,
1999 December 31,
ASSETS (Unaudited) 1998
- ---------------------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C>
Property, plant and equipment:
Utility -
Plant in service -
Electric $ 1,863,733 $ 1,839,545
Gas 248,576 244,518
Water 26,769 26,567
Common 222,206 219,268
----------------- -----------------
2,361,284 2,329,898
Less - Accumulated depreciation 1,231,444 1,168,830
----------------- -----------------
1,129,840 1,161,068
Construction work in progress 72,024 56,994
Nuclear fuel, net of amortization 16,958 18,671
----------------- -----------------
1,218,822 1,236,733
Other property, plant and equipment, net of accumulated
depreciation and amortization of $49 and $44, respectively 627 630
----------------- -----------------
1,219,449 1,237,363
----------------- -----------------
- ---------------------------------------------------------------------------------------------------------------
Current assets:
Cash and temporary cash investments 4,279 1,811
Accounts receivable:
Customer 5,092 13,372
Associated companies 1,869 3,019
Other 8,378 8,298
Income tax refunds receivable 10,844 2,715
Production fuel, at average cost 15,477 20,105
Materials and supplies, at average cost 22,154 20,025
Gas stored underground, at average cost 7,801 10,738
Regulatory assets 3,707 3,707
Prepaid gross receipts tax 21,912 22,222
Other 1,399 4,272
----------------- -----------------
102,912 110,284
----------------- -----------------
- ---------------------------------------------------------------------------------------------------------------
Investments:
Nuclear decommissioning trust funds 152,015 134,112
Other 15,408 15,960
----------------- -----------------
167,423 150,072
----------------- -----------------
- ---------------------------------------------------------------------------------------------------------------
Other assets:
Regulatory assets 73,244 76,284
Deferred charges and other 121,508 111,147
----------------- -----------------
194,752 187,431
----------------- -----------------
- ---------------------------------------------------------------------------------------------------------------
Total assets $ 1,684,536 $ 1,685,150
================= =================
- ---------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
16
<PAGE>
<TABLE>
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED BALANCE SHEETS (CONTINUED)
<CAPTION>
June 30,
1999 December 31,
CAPITALIZATION AND LIABILITIES (Unaudited) 1998
- -----------------------------------------------------------------------------------------------------------------------------------
(in thousands, except share amounts)
<S> <C> <C>
Capitalization:
Common stock - $5 par value - authorized 18,000,000
shares; 13,236,601 shares outstanding $ 66,183 $ 66,183
Additional paid-in capital 199,438 199,438
Retained earnings 296,718 294,309
------------------- ------------------
Total common equity 562,339 559,930
------------------- ------------------
Cumulative preferred stock, not mandatorily redeemable without par value -
authorized 3,750,000 shares, maximum aggregate stated value $150,000,000:
$100 stated value - 449,765 shares outstanding 44,977 44,977
$25 stated value - 599,460 shares outstanding 14,986 14,986
------------------- ------------------
Total cumulative preferred stock 59,963 59,963
------------------- ------------------
Long-term debt (excluding current portion) 414,626 414,579
------------------- ------------------
1,036,928 1,034,472
------------------- ------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Current liabilities:
Variable rate demand bonds 56,975 56,975
Notes payable 50,000 50,000
Notes payable to associated companies 59,035 26,799
Accounts payable 62,920 84,754
Accounts payable to associated companies 21,790 20,315
Accrued payroll and vacations 8,227 5,276
Accrued interest 4,240 6,863
Other 8,014 14,600
------------------- ------------------
271,201 265,582
------------------- ------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Other long-term liabilities and deferred credits:
Accumulated deferred income taxes 240,909 245,489
Accumulated deferred investment tax credits 32,240 33,170
Customer advances 32,687 34,367
Environmental liabilities 11,366 11,683
Other 59,205 60,387
------------------- ------------------
376,407 385,096
------------------- ------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Total capitalization and liabilities $ 1,684,536 $ 1,685,150
=================== ==================
- -----------------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
17
<PAGE>
<TABLE>
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
For the Six Months Ended June 30,
1999 1998
- --------------------------------------------------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 33,241 $ 16,365
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation and amortization 59,546 60,838
Amortization of nuclear fuel 3,050 3,006
Deferred taxes and investment tax credits (4,258) (1,736)
Other (620) (3,927)
Other changes in assets and liabilities:
Accounts receivable 9,350 20,317
Income tax refunds receivable (8,129) (11,224)
Production fuel 4,628 2,402
Gas stored underground 2,937 5,732
Accounts payable (20,359) 154
Benefit obligations and other (7,192) 14,869
--------------------- ---------------------
Net cash flows from operating activities 72,194 106,796
--------------------- ---------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cash flows from (used for) financing activities:
Common stock dividends (29,176) (29,170)
Preferred stock dividends (1,656) (1,656)
Net change in short-term borrowings 32,236 (23,697)
--------------------- ---------------------
Net cash flows from (used for) financing activities 1,404 (54,523)
--------------------- ---------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cash flows used for investing activities:
Utility construction expenditures (48,600) (38,980)
Nuclear decommissioning trust funds (14,654) (12,859)
Shared savings expenditures (7,723) (3,021)
Other (153) 2,023
--------------------- ---------------------
Net cash flows used for investing activities (71,130) (52,837)
--------------------- ---------------------
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and temporary cash investments 2,468 (564)
--------------------- ---------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at beginning of period 1,811 2,492
--------------------- ---------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at end of period $ 4,279 $ 1,928
===================== =====================
- --------------------------------------------------------------------------------------------------------------------------------
Supplemental cash flow information: Cash paid during the period for:
Interest $ 21,860 $ 13,085
===================== =====================
Income taxes $ 32,885 $ 22,784
===================== =====================
- --------------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
</TABLE>
18
<PAGE>
WISCONSIN POWER AND LIGHT COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Except as modified below, the Alliant Energy Notes to Consolidated
Financial Statements are incorporated by reference insofar as they
relate to WP&L. Alliant Energy Note 5 does not relate to WP&L and,
therefore, is not incorporated by reference.
1. The interim consolidated financial statements included herein have been
prepared by WP&L, without audit, pursuant to the rules and regulations
of the SEC. Accordingly, certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted, although management believes that the disclosures are adequate
to make the information presented not misleading. The consolidated
financial statements include WP&L and its consolidated subsidiary. WP&L
is a subsidiary of Alliant Energy. These financial statements should be
read in conjunction with the financial statements and the notes thereto
included in WP&L's latest Annual Report on Form 10-K.
In the opinion of management, all adjustments, which are normal and
recurring in nature, necessary for a fair presentation of (a) the
consolidated results of operations for the three and six months ended
June 30, 1999 and 1998, (b) the consolidated financial position at June
30, 1999 and December 31, 1998, and (c) the consolidated statement of
cash flows for the six months ended June 30, 1999 and 1998, have been
made. Because of the seasonal nature of WP&L's operations, results for
the three and six months ended June 30, 1999 are not necessarily
indicative of results that may be expected for the year ending December
31, 1999. Certain prior period amounts have been reclassified on a
basis consistent with the 1999 presentation.
19
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Alliant
Energy Corporation, IES Utilities Inc. and Wisconsin Power and Light Company
have each duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized on the 1st day of November 1999.
<TABLE>
<CAPTION>
ALLIANT ENERGY CORPORATION
- --------------------------
Registrant
<S> <C>
By: /s/ John E. Ebright Vice President-Controller (Principal Accounting Officer)
John E. Ebright
IES UTILITIES INC.
- ------------------
Registrant
By: /s/ John E. Ebright Vice President-Controller (Principal Accounting Officer)
John E. Ebright
WISCONSIN POWER AND LIGHT COMPANY
- ---------------------------------
Registrant
By: /s/ John E. Ebright Vice President-Controller (Principal Accounting Officer)
John E. Ebright
</TABLE>
20
