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Derivative Instruments
 6 Months Ended
Jun. 30, 2013
Derivative [Line Items]  
Derivative Instruments
DERIVATIVE INSTRUMENTS
Commodity Derivatives -
Purpose - Alliant Energy, IPL and WPL periodically use derivative instruments for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. Refer to Note 10 for detailed discussion of Alliant Energy’s, IPL’s and WPL’s derivative instruments as of June 30, 2013 and December 31, 2012.

Notional Amounts - As of June 30, 2013, notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts, FTRs and coal contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):
 
2013
 
2014
 
2015
 
2016
 
2017
 
2018
 
Total
Alliant Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (megawatt-hours (MWhs))
2,620

 
4,801

 
2,190

 
1,318

 
1,314

 
1,314

 
13,557

FTRs (MWs)
26

 
22

 
—

 
—

 
—

 
—

 
48

Natural gas (dekatherms (Dths))
52,111

 
19,846

 
2,031

 
455

 
—

 
—

 
74,443

Coal (tons)
448

 
981

 
562

 
—

 
—

 
—

 
1,991

IPL
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (MWhs)
1,302

 
1,099

 
—

 
—

 
—

 
—

 
2,401

FTRs (MWs)
16

 
14

 
—

 
—

 
—

 
—

 
30

Natural gas (Dths)
40,455

 
13,386

 
1,581

 
455

 
—

 
—

 
55,877

WPL
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (MWhs)
1,318

 
3,702

 
2,190

 
1,318

 
1,314

 
1,314

 
11,156

FTRs (MWs)
10

 
8

 
—

 
—

 
—

 
—

 
18

Natural gas (Dths)
11,656

 
6,460

 
450

 
—

 
—

 
—

 
18,566

Coal (tons)
448

 
981

 
562

 
—

 
—

 
—

 
1,991



The notional amounts in the above table were computed by aggregating the absolute value of purchase and sale positions within commodities for each delivery year.

Financial Statement Presentation - Alliant Energy, IPL and WPL record derivative instruments at fair value each reporting date on the balance sheet as assets or liabilities. The fair values of current derivative assets were included in “Other current assets,” non-current derivative assets were included in “Deferred charges and other,” current derivative liabilities were included in “Other current liabilities” and non-current derivative liabilities were included in “Other long-term liabilities and deferred credits” on the Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
Commodity contracts
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
Current derivative assets

$51.1

 

$23.5

 

$44.4

 

$17.0

 

$6.7

 

$6.5

Non-current derivative assets
9.4

 
2.7

 
0.7

 
0.5

 
8.7

 
2.2

Current derivative liabilities
21.8

 
31.1

 
8.4

 
14.1

 
13.4

 
17.0

Non-current derivative liabilities
15.3

 
9.3

 
1.3

 
2.0

 
14.0

 
7.3



Changes in unrealized gains (losses) from commodity derivative instruments not designated as hedging instruments were recorded with offsets to regulatory assets or regulatory liabilities on the Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Three Months Ended June 30
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets

($25.9
)
 

$7.7

 

($6.9
)
 

$5.0

 

($19.0
)
 

$2.7

Regulatory liabilities
1.2

 
4.1

 
(2.5
)
 
4.4

 
3.7

 
(0.3
)
Six Months Ended June 30
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets
(16.4
)
 
(32.0
)
 
(4.2
)
 
(17.2
)
 
(12.2
)
 
(14.8
)
Regulatory liabilities
17.6

 
5.5

 
6.3

 
4.4

 
11.3

 
1.1



Credit Risk-related Contingent Features - Alliant Energy, IPL and WPL have entered into various agreements that contain credit risk-related contingent features including requirements for them to maintain certain credit ratings from each of the major credit rating agencies and/or limitations on their liability positions under the various agreements based upon their credit ratings. In the event of a downgrade in their credit ratings or if their liability positions exceed certain contractual limits, Alliant Energy, IPL or WPL may need to provide credit support in the form of letters of credit or cash collateral up to the amount of their exposure under the contracts, or may need to unwind the contracts and pay the underlying liability positions.

Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. The aggregate fair value of all derivatives with credit risk-related contingent features that were in a net liability position on June 30, 2013 was $37.1 million, $9.7 million and $27.4 million for Alliant Energy, IPL and WPL, respectively. At June 30, 2013, Alliant Energy, IPL and WPL all had investment-grade credit ratings. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on June 30, 2013, Alliant Energy, IPL and WPL would be required to post $37.1 million, $9.7 million and $27.4 million, respectively, of credit support to their counterparties.

Balance Sheet Offsetting - Alliant Energy, IPL and WPL do not net the fair value amounts of derivative instruments subject to a master netting arrangement by counterparty on the Condensed Consolidated Balance Sheets. Alliant Energy, IPL and WPL also do not offset fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. However, if Alliant Energy, IPL and WPL did net the fair value amounts of derivative instruments and related cash collateral by counterparty, derivative assets and derivative liabilities related to commodity contracts would have been presented on their Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
Gross
 
 
 
Gross
 
 
 
Gross
 
 
 
(as reported)
 
Net
 
(as reported)
 
Net
 
(as reported)
 
Net
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Derivative assets

$60.5

 

$46.3

 

$45.1

 

$43.4

 

$15.4

 

$2.9

Derivative liabilities
37.1

 
22.9

 
9.7

 
8.0

 
27.4

 
14.9

December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
26.2

 
19.3

 
17.5

 
14.5

 
8.7

 
4.8

Derivative liabilities
40.4

 
33.0

 
16.1

 
12.6

 
24.3

 
20.4



As of June 30, 2013 and December 31, 2012, both Alliant Energy’s and IPL’s net derivative liabilities in the above table include $0 and $0.5 million, respectively, of cash collateral posted by IPL. Trade receivables and payables associated with derivative assets and derivative liabilities are also subject to a master netting arrangement. As of June 30, 2013 and December 31, 2012, these trade receivables and payables were insignificant and were not included in the above table.
IPL [Member]
  
Derivative [Line Items]  
Derivative Instruments
DERIVATIVE INSTRUMENTS
Commodity Derivatives -
Purpose - Alliant Energy, IPL and WPL periodically use derivative instruments for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. Refer to Note 10 for detailed discussion of Alliant Energy’s, IPL’s and WPL’s derivative instruments as of June 30, 2013 and December 31, 2012.

Notional Amounts - As of June 30, 2013, notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts, FTRs and coal contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):
 
2013
 
2014
 
2015
 
2016
 
2017
 
2018
 
Total
Alliant Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (megawatt-hours (MWhs))
2,620

 
4,801

 
2,190

 
1,318

 
1,314

 
1,314

 
13,557

FTRs (MWs)
26

 
22

 
—

 
—

 
—

 
—

 
48

Natural gas (dekatherms (Dths))
52,111

 
19,846

 
2,031

 
455

 
—

 
—

 
74,443

Coal (tons)
448

 
981

 
562

 
—

 
—

 
—

 
1,991

IPL
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (MWhs)
1,302

 
1,099

 
—

 
—

 
—

 
—

 
2,401

FTRs (MWs)
16

 
14

 
—

 
—

 
—

 
—

 
30

Natural gas (Dths)
40,455

 
13,386

 
1,581

 
455

 
—

 
—

 
55,877

WPL
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (MWhs)
1,318

 
3,702

 
2,190

 
1,318

 
1,314

 
1,314

 
11,156

FTRs (MWs)
10

 
8

 
—

 
—

 
—

 
—

 
18

Natural gas (Dths)
11,656

 
6,460

 
450

 
—

 
—

 
—

 
18,566

Coal (tons)
448

 
981

 
562

 
—

 
—

 
—

 
1,991



The notional amounts in the above table were computed by aggregating the absolute value of purchase and sale positions within commodities for each delivery year.

Financial Statement Presentation - Alliant Energy, IPL and WPL record derivative instruments at fair value each reporting date on the balance sheet as assets or liabilities. The fair values of current derivative assets were included in “Other current assets,” non-current derivative assets were included in “Deferred charges and other,” current derivative liabilities were included in “Other current liabilities” and non-current derivative liabilities were included in “Other long-term liabilities and deferred credits” on the Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
Commodity contracts
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
Current derivative assets

$51.1

 

$23.5

 

$44.4

 

$17.0

 

$6.7

 

$6.5

Non-current derivative assets
9.4

 
2.7

 
0.7

 
0.5

 
8.7

 
2.2

Current derivative liabilities
21.8

 
31.1

 
8.4

 
14.1

 
13.4

 
17.0

Non-current derivative liabilities
15.3

 
9.3

 
1.3

 
2.0

 
14.0

 
7.3



Changes in unrealized gains (losses) from commodity derivative instruments not designated as hedging instruments were recorded with offsets to regulatory assets or regulatory liabilities on the Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Three Months Ended June 30
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets

($25.9
)
 

$7.7

 

($6.9
)
 

$5.0

 

($19.0
)
 

$2.7

Regulatory liabilities
1.2

 
4.1

 
(2.5
)
 
4.4

 
3.7

 
(0.3
)
Six Months Ended June 30
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets
(16.4
)
 
(32.0
)
 
(4.2
)
 
(17.2
)
 
(12.2
)
 
(14.8
)
Regulatory liabilities
17.6

 
5.5

 
6.3

 
4.4

 
11.3

 
1.1



Credit Risk-related Contingent Features - Alliant Energy, IPL and WPL have entered into various agreements that contain credit risk-related contingent features including requirements for them to maintain certain credit ratings from each of the major credit rating agencies and/or limitations on their liability positions under the various agreements based upon their credit ratings. In the event of a downgrade in their credit ratings or if their liability positions exceed certain contractual limits, Alliant Energy, IPL or WPL may need to provide credit support in the form of letters of credit or cash collateral up to the amount of their exposure under the contracts, or may need to unwind the contracts and pay the underlying liability positions.

Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. The aggregate fair value of all derivatives with credit risk-related contingent features that were in a net liability position on June 30, 2013 was $37.1 million, $9.7 million and $27.4 million for Alliant Energy, IPL and WPL, respectively. At June 30, 2013, Alliant Energy, IPL and WPL all had investment-grade credit ratings. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on June 30, 2013, Alliant Energy, IPL and WPL would be required to post $37.1 million, $9.7 million and $27.4 million, respectively, of credit support to their counterparties.

Balance Sheet Offsetting - Alliant Energy, IPL and WPL do not net the fair value amounts of derivative instruments subject to a master netting arrangement by counterparty on the Condensed Consolidated Balance Sheets. Alliant Energy, IPL and WPL also do not offset fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. However, if Alliant Energy, IPL and WPL did net the fair value amounts of derivative instruments and related cash collateral by counterparty, derivative assets and derivative liabilities related to commodity contracts would have been presented on their Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
Gross
 
 
 
Gross
 
 
 
Gross
 
 
 
(as reported)
 
Net
 
(as reported)
 
Net
 
(as reported)
 
Net
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Derivative assets

$60.5

 

$46.3

 

$45.1

 

$43.4

 

$15.4

 

$2.9

Derivative liabilities
37.1

 
22.9

 
9.7

 
8.0

 
27.4

 
14.9

December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
26.2

 
19.3

 
17.5

 
14.5

 
8.7

 
4.8

Derivative liabilities
40.4

 
33.0

 
16.1

 
12.6

 
24.3

 
20.4



As of June 30, 2013 and December 31, 2012, both Alliant Energy’s and IPL’s net derivative liabilities in the above table include $0 and $0.5 million, respectively, of cash collateral posted by IPL. Trade receivables and payables associated with derivative assets and derivative liabilities are also subject to a master netting arrangement. As of June 30, 2013 and December 31, 2012, these trade receivables and payables were insignificant and were not included in the above table.
WPL [Member]
  
Derivative [Line Items]  
Derivative Instruments
DERIVATIVE INSTRUMENTS
Commodity Derivatives -
Purpose - Alliant Energy, IPL and WPL periodically use derivative instruments for risk management purposes to mitigate exposures to fluctuations in certain commodity prices and transmission congestion costs. Refer to Note 10 for detailed discussion of Alliant Energy’s, IPL’s and WPL’s derivative instruments as of June 30, 2013 and December 31, 2012.

Notional Amounts - As of June 30, 2013, notional amounts by delivery year related to outstanding swap contracts, option contracts, physical forward contracts, FTRs and coal contracts that were accounted for as commodity derivative instruments were as follows (units in thousands):
 
2013
 
2014
 
2015
 
2016
 
2017
 
2018
 
Total
Alliant Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (megawatt-hours (MWhs))
2,620

 
4,801

 
2,190

 
1,318

 
1,314

 
1,314

 
13,557

FTRs (MWs)
26

 
22

 
—

 
—

 
—

 
—

 
48

Natural gas (dekatherms (Dths))
52,111

 
19,846

 
2,031

 
455

 
—

 
—

 
74,443

Coal (tons)
448

 
981

 
562

 
—

 
—

 
—

 
1,991

IPL
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (MWhs)
1,302

 
1,099

 
—

 
—

 
—

 
—

 
2,401

FTRs (MWs)
16

 
14

 
—

 
—

 
—

 
—

 
30

Natural gas (Dths)
40,455

 
13,386

 
1,581

 
455

 
—

 
—

 
55,877

WPL
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity (MWhs)
1,318

 
3,702

 
2,190

 
1,318

 
1,314

 
1,314

 
11,156

FTRs (MWs)
10

 
8

 
—

 
—

 
—

 
—

 
18

Natural gas (Dths)
11,656

 
6,460

 
450

 
—

 
—

 
—

 
18,566

Coal (tons)
448

 
981

 
562

 
—

 
—

 
—

 
1,991



The notional amounts in the above table were computed by aggregating the absolute value of purchase and sale positions within commodities for each delivery year.

Financial Statement Presentation - Alliant Energy, IPL and WPL record derivative instruments at fair value each reporting date on the balance sheet as assets or liabilities. The fair values of current derivative assets were included in “Other current assets,” non-current derivative assets were included in “Deferred charges and other,” current derivative liabilities were included in “Other current liabilities” and non-current derivative liabilities were included in “Other long-term liabilities and deferred credits” on the Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
Commodity contracts
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
 
June 30,
2013
 
December 31,
2012
Current derivative assets

$51.1

 

$23.5

 

$44.4

 

$17.0

 

$6.7

 

$6.5

Non-current derivative assets
9.4

 
2.7

 
0.7

 
0.5

 
8.7

 
2.2

Current derivative liabilities
21.8

 
31.1

 
8.4

 
14.1

 
13.4

 
17.0

Non-current derivative liabilities
15.3

 
9.3

 
1.3

 
2.0

 
14.0

 
7.3



Changes in unrealized gains (losses) from commodity derivative instruments not designated as hedging instruments were recorded with offsets to regulatory assets or regulatory liabilities on the Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Three Months Ended June 30
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets

($25.9
)
 

$7.7

 

($6.9
)
 

$5.0

 

($19.0
)
 

$2.7

Regulatory liabilities
1.2

 
4.1

 
(2.5
)
 
4.4

 
3.7

 
(0.3
)
Six Months Ended June 30
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets
(16.4
)
 
(32.0
)
 
(4.2
)
 
(17.2
)
 
(12.2
)
 
(14.8
)
Regulatory liabilities
17.6

 
5.5

 
6.3

 
4.4

 
11.3

 
1.1



Credit Risk-related Contingent Features - Alliant Energy, IPL and WPL have entered into various agreements that contain credit risk-related contingent features including requirements for them to maintain certain credit ratings from each of the major credit rating agencies and/or limitations on their liability positions under the various agreements based upon their credit ratings. In the event of a downgrade in their credit ratings or if their liability positions exceed certain contractual limits, Alliant Energy, IPL or WPL may need to provide credit support in the form of letters of credit or cash collateral up to the amount of their exposure under the contracts, or may need to unwind the contracts and pay the underlying liability positions.

Certain of these agreements with credit risk-related contingency features are accounted for as derivative instruments. The aggregate fair value of all derivatives with credit risk-related contingent features that were in a net liability position on June 30, 2013 was $37.1 million, $9.7 million and $27.4 million for Alliant Energy, IPL and WPL, respectively. At June 30, 2013, Alliant Energy, IPL and WPL all had investment-grade credit ratings. If the most restrictive credit risk-related contingent features for derivative agreements in a net liability position were triggered on June 30, 2013, Alliant Energy, IPL and WPL would be required to post $37.1 million, $9.7 million and $27.4 million, respectively, of credit support to their counterparties.

Balance Sheet Offsetting - Alliant Energy, IPL and WPL do not net the fair value amounts of derivative instruments subject to a master netting arrangement by counterparty on the Condensed Consolidated Balance Sheets. Alliant Energy, IPL and WPL also do not offset fair value amounts recognized for the right to reclaim cash collateral (receivable) or the obligation to return cash collateral (payable) against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. However, if Alliant Energy, IPL and WPL did net the fair value amounts of derivative instruments and related cash collateral by counterparty, derivative assets and derivative liabilities related to commodity contracts would have been presented on their Condensed Consolidated Balance Sheets as follows (in millions):
 
Alliant Energy
 
IPL
 
WPL
 
Gross
 
 
 
Gross
 
 
 
Gross
 
 
 
(as reported)
 
Net
 
(as reported)
 
Net
 
(as reported)
 
Net
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Derivative assets

$60.5

 

$46.3

 

$45.1

 

$43.4

 

$15.4

 

$2.9

Derivative liabilities
37.1

 
22.9

 
9.7

 
8.0

 
27.4

 
14.9

December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
26.2

 
19.3

 
17.5

 
14.5

 
8.7

 
4.8

Derivative liabilities
40.4

 
33.0

 
16.1

 
12.6

 
24.3

 
20.4



As of June 30, 2013 and December 31, 2012, both Alliant Energy’s and IPL’s net derivative liabilities in the above table include $0 and $0.5 million, respectively, of cash collateral posted by IPL. Trade receivables and payables associated with derivative assets and derivative liabilities are also subject to a master netting arrangement. As of June 30, 2013 and December 31, 2012, these trade receivables and payables were insignificant and were not included in the above table.