Alliant Energy awarded Federal Grant for Environmental Technology

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For Immediate Release

Alliant Energy awarded Federal Grant for Environmental Technology

Combustion Initiative recognized for emission reduction capabilities

WISCONSIN, MADISON, Oct. 24 -/E-Wire/-- Alliant Energy (NYSE: LNT) has been awarded a $3.7 million dollar federal grant for its innovative Combustion Initiative. The company developed the unique and cost effective technology to reduce nitrogen oxide (NOx) emissions from power generating facilities. The grant is part of $110 million earmarked by the U.S. Department of Energy (DOE) for leading edge clean coal technologies.

The DOE funds will provide for the Combustion Initiative demonstration on Unit Four at the Edgewater Generating Station in Sheboygan, Wis. Edgewater Four is a cyclone boiler, prone to high nitrogen oxide emissions. Alliant Energy's subsidiary Wisconsin Power and Light (WPL) operates the boiler. Another state-based utility, Wisconsin Public Service Corporation (WPS) partially owns the boiler and has supported Alliant Energy - WPL in its implementation of the Combustion Initiative on Edgewater Four.

"We are extremely pleased the DOE has recognized Alliant Energy's commitment to reducing emissions while ensuring reliable service for our customers," said Bill Harvey, Alliant Energy's executive vice president for generation. "The Combustion Initiative has shown it can lead to cleaner, more efficient power plants. The result reduces costs and benefits customers, shareowners, employees and, ultimately, the environment."

The Combustion Initiative cut NOx output in half at the M.L. Kapp Power Station in Clinton, Iowa, the first plant to participate in the unique program. By conducting research, installing new equipment and fine-tuning existing machinery, the facility lowered its NOx output from 0.35 pound per million British thermal units (Btu) to 0.15 pound per million Btu. The milestone was reached at a fraction of the cost of installing the selective catalytic reduction (SCR) equipment used by many utilities to achieve similar emission reduction results.

As well as Edgewater Four, the advanced clean-coal option is now being implemented at six other coal-fired plants the company operates in Wisconsin. The DOE grant will provide half of the funding for the Combustion Initiative implementation on Edgewater Four. Alliant Energy will match the federal funding for the 15-month project.

"Our goal is to create a science and technology driven business to re-engineer and reinvent today's power generation industry," said Dr. Edmundo VÃ¡squez, general manager - Research & Development. "Recognition from the DOE allows us to demonstrate how we can generate low-cost electricity with better performance and in compliance with tight environmental standards."

"After successfully showing the Combustion Initiative is effective at reducing emissions, we will consider exploring ways of making this unique approach available to others so they too can benefit," said Harvey. "We believe this innovative technology will have an extensive positive impact throughout the nation."

The DOE grant will be administered under the "Power Plant Improvement Initiative." The Congressionally-directed effort serves as the precursor to President Bush's clean coal technology program. Alliant Energy's Combustion Initiative and seven other programs were selected from 24 proposals submitted to the DOE last April. The chosen projects are expected to bolster reliability and the environmental performance of coal-burning power plants.

Alliant Energy Corporation (NYSE:LNT) is a growing energy-services provider with operations both domestically and internationally. Headquartered in Madison, Wis., Alliant Energy provides electric, natural gas, water and steam services to more than three million customers worldwide. Alliant Energy Resources, Inc., home of the company's non-utility businesses, also provides home products through its PowerHouse catalog and website, and has major operations and investments throughout the United States as well as Australia, Brazil, China, Mexico and New Zealand.

http://www.alliantenergy.com

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