Interstate Power and Light (IP&L) got the bright idea of providing electricity and has hit the road to make it happen. The company provides energy in a tri-state area of the Midwest (portions of Minnesota, Iowa, and Wisconsin). The Alliant Energy utility subsidiary serves more than 528,355 electricity customers and more than 234,560 natural gas customers in more than 700 communities. In addition, IP&L has 2,409 MW of generating capacity from fossil-fueled and nuclear power plants; it provides steam to two customers in Cedar Rapids; and it offers other energy-related services across its service area.
IP&L has three segments: electric operations; gas operations; and other (which includes IP&L's steam operations). The company provides electric service and gas service in Iowa and southern Minnesota. Its gas distribution facilities include about 5,051 miles and 238 miles of gas main in Iowa and Minnesota.
IP&L receives substantially all its electric transmission services from ITC Holdings, an independent for-profit, transmission-only company.
IP&L serves customers in Minnesota, Iowa, and Wisconsin. The company provides electric service to about 752 communities, and gas service to 243 communities in Iowa, and southern Minnesota.
In 2013 the company's revenues increased by 10% due to higher results from all the three segments.
Higher retail revenues from residential, commercial, and industrial customers were the result of increases in recovery of transmission costs related to the transmission rider, and as well as revenue requirement adjustment tied to certain tax benefits from tax accounting method changes
Gas sales increased in 2013 thanks to higher rates, and an increase in energy conservation revenues. Changes in energy conservation revenues were mostly offset by changes in energy conservation expenses in other operation and maintenance expenses.
IP&L's net income increased by 26% in 2013 thanks to higher revenues, and higher income tax benefit, partially offset by an increase in operating expenses.
The company's cash flows from operating activities decreased $58 million in 2013 primarily due to $91 million of lower cash flows from changes in the level of accounts receivable sold that year, and lower cash flows from changes in prepaid gas and inventory levels of gas stored underground. These items were partially offset by the timing of electric fuel-related, natural gas and transmission cost recoveries in 2013.
The company's strategic plan aims at developing a balanced supply of energy resources, while providing safe and reliable service and keeping costs down. It plans to invest more than $1 billion to upgrade its electric generation facilities by 2017.
In 2013 the Iowa Utilities Board (IUB) issued an order allowing IP&L to proceed with a deal with a subsidiary of NextEra Energy, for the purchase of capacity and energy generated by Duane Arnold Energy Center (DAEC), a 598 MW Iowa-based nuclear power generating facility near Palo, Iowa. The IUB also authorized IP&L to recover the Iowa retail portion of the cost of the DAEC power purchase agreement from Iowa retail electric customers through the energy adjustment clause.
In 2007, to raise cash for future investments, Alliant Energy sold IP&L's transmission assets in Illinois, Iowa, and Minnesota, to ITC Holdings for $783 million. That year IP&L also sold its 70% stake in DAEC, , to a subsidiary of FPL Group (now NextEra Energy); as part of the agreement, IP&L purchased energy produced at DAEC.
In 2008 it reached a deal with Prairie Lands Bio-Products Inc. to develop some renewable fuel sources for power generation at a proposed coal plant in Marshalltown, Iowa. However, in 2009 the company canceled it plans to build the $1.8 billion coal-fired plant, citing a poor economy and resistance to new coal plants from influential parties in the state.
IP&L was founded in 1925 in Iowa as Iowa Railway and Light Corporation.