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Note: This is significant for the total energy picture in Wisconsin. While
this plant is on ANR's system, we could see continued problems throughout the winter for the electric generation in Wisc. News Releases Alliant Energy's WP&L Experiences Winter Power Supply "Close Call" MADISON- Dec. 12, 2000- Wisconsin Power and Light Co. (WP&L), Alliant Energy's Wisconsin utility subsidiary, experienced a power supply "close call" Monday evening. The company appealed to customers for voluntary conservation measures and exercised its interruptible customer contracts to maintain system reliability. "While we have heard regular reports of this type of situation occurring over the past few days in California, this is the first time we have appealed to customers for emergency conservation measures in the winter," says Bill Harvey, president, Alliant Energy - WP&L. Harvey says the lack of electric generation supply in Wisconsin coupled with limited transmission import capabilities continues to put Wisconsin's power supply at risk. "There is very little cushion available, which makes dealing with emergencies like we had last night very challenging, and potentially very dangerous," says Harvey. At approximately 7:00 p.m. last night, 300 megawatts of generation supply went off-line at WP&L's South Fond du Lac plant due to a fuel intake problem. The loss of this generation represented approximately 12.5% of WP&L's total Wisconsin generation capacity. High electric demand within the state and a constrained transmission system made obtaining replacement power virtually impossible. WP&L declared a system emergency, exercised its interruptible contracts and appealed to the public for voluntary conservation. The emergency status resulted in freeing up transmission capacity. WP&L was then able to bring on-line additional peaking capacity and obtain power from outside the state. Customer conservation efforts also played an important role in avoiding more serious power supply consequences. "Thanks to our customers who conserved electricity last night and the hard work from our power supply team overnight, we are back to normal this morning," says Harvey. Harvey notes that winter power supply problems are rare, but are potentially much more serious and difficult to manage than summer problems. The circumstances surrounding last night's problems were particularly challenging. "The snow storm caused many businesses to shut down early, so we knew there was not going to be a great deal of power to be saved by exercising our interruptible contracts," says Harvey. "We appreciate the conservation efforts of our customers last night who turned off holiday decorative lights, delayed laundry and running their dishwasher." WP&L and other Wisconsin utilities keep a percentage of their total generation, called spinning reserve, operating beyond what is required to meet current demand to deal with potential emergencies. With the loss of the 300 megawatts of generation from the South Fond du Lac plant last night, WP&L's spinning reserves dropped below safe levels, prompting the emergency actions. "Issuing a public appeal and exercising our interruptible contracts, while unusual, was a prudent and conservative course of action given the weather conditions," says Harvey. The fuel intake problem at the South Fond du Lac plant has been resolved and WP&L's system has returned to normal operations today. Over the last several days, the one transmission line connecting Wisconsin to power supplies in the west has been operating a maximum capacity, providing little or no ability to import additional power into the state. Local opposition to additional natural gas-fired and wind powered generation has delayed the construction of new in-state power sources. Harvey says the lack of new infrastructure results in a very troubling situation. "The consequences of rotating blackouts in the winter are very serious, particularly with weather as harsh as we are currently experiencing," says Harvey. "Last night presented yet another clear indication of why Wisconsin needs to move forward, and do so quickly, to ensure the construction of needed additional electric infrastructure." Alliant Energy Corporation (www.alliant-energy.com; NYSE:LNT), headquartered in Madison, Wis., is a growing energy-services provider with operations both domestically and internationally. Alliant Energy's subsidiaries provide electric, natural gas, water and steam services to more than two million customers worldwide. Alliant Energy - WP&L, the Wisconsin utility subsidiary, provides over 435,000 Wisconsin customers with electric, natural gas and water utility service. Alliant Energy Resources, Inc., home of the company's non-utility businesses, has operations and investments throughout the United States as well as in Australia, Brazil, China, Mexico and New Zealand.
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