Thank you for holding ladies and gentlemen, and welcome to Alliant Energy Second Quarter 2008 Earnings Conference Call. At this time, all lines are in a listen-only mode. I would now like to turn the call over to your host, Mr. Jamie Freeman, Manager of Investor Relations at Alliant Energy. Please go ahead.

Good morning. I would like to thank all of you on the call and on the webcast for joining us today. We appreciate your participation. With me here today are Bill Harvey, Chairman, President and Chief Executive Officer; and Eliot Protsch, our Chief Financial Officer; as well as other members of the senior management team. Following prepared remarks by Bill and Eliot, we will have time to take questions from the investment community. We issued a news release this morning announcing Alliant Energy's 2008 second quarter earnings. This release is available on Investors page of our website at www.alliantenergy.com. We have also posted supplemental material and a PowerPoint presentation to this location that contains information on recent flooding in our service territory, regulatory procedural schedules and other selected items that will be addressed during today's call. Before we begin, I need to remind you that the remarks we make on this call and our answers to your questions include forward-looking statements. These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include among others, matters discussed in Alliant Energy's press release issued this morning and in our filings with the Securities and Exchange Commission. We disclaim any obligation to update these forward-looking statements. At this point, I'll turn the call over to Bill.

Good morning everyone and thanks for your continued interest in our company. Suffice it to say, I am both relieved and pleased at our second quarter results. Eliot will go over the details in a moment, but as I see it, our utility results were down slightly, and our non-regulated results were strong. At our utilities, earnings were negatively impacted by the floods, but these impact were offset by pickups owing to the favorable resolution of our 2002 through 2004 IRS audit. I think it's fair to see the 500-year flood and a multi-year tax settlement as one-time events. So the slightly lower utility earnings can be explained by milder weather and the foreseeing consequences of the sale of our IP&L transmission assets. On the non-regulated side, we also enjoyed a slight one-time pick up due to the IRS settlement. But more important, saw very strong performance at RMT WindConnect. Performance we expect to continue and improve going forward. For the full year, I'm pleased that despite the impact of the historic flooding, we can raise our consolidated continuing operations earning guidance range by $0.05 a share. We are currently estimating the 2008 negative impact of the flood at the utilities at $0.15 versus the $0.20 estimated earlier. But this item is largely offset by an $0.11 tax settlement benefit. Our utilities also continue to see benefits from our lean six sigma activities and our ongoing efforts to control utility operating costs. Our employees are dedicated to meeting the expectations of our shareowners, just like they are dedicated to meeting the needs of our customers. Other factors increasing our earnings estimate include RMT's continued growth in the wind EPC market and modest performance improvements across all of our non-regulated businesses. Recapping the flood, at its quest, the Cedar River in…

Thanks, Bill and thanks to all of you for joining us today. Our second quarter continuing operations results came in $0.07 higher than the same period in 2007. While our earnings release contains an overview of the various earnings drivers, I would like to provide additional insight into some of the more noteworthy items. First, as we disclosed in our 10-K, the IRS has been auditing our federal returns for the period 2002 through 2004 calendar years. We are very pleased to report that a settlement was reached at the end of June, that resulted in a significant earnings benefit of $0.11. $0.07 was recorded at the utilities, primarily related to additional qualifying research and development tax deductions, associated with the construction of the Emery Generation Station and other smaller R&D projects. $0.04 was recorded at AER as a result of numerous miscellaneous adjustments. As Bill indicated, investors should view the results of this settlement as a non-recurring item. As a consequence of this settlement, we are now estimating a consolidated effective income tax rate for 2008 of 32%. Second, WP&L experienced lower fuel cost in the quarter compared to what was included in interim fuel rates that were established at the end of April. For the first six months of this year, actual fuel cost compared to the amount collected in rates increased earnings $0.03 per share. Because the WP&L fuel rate is an average for the year, under recovery is expected during certain periods of the year, and is typically greatest in the third quarter, when electricity prices are at their highest. We expect under recovery of fuel cost in the second half of the year to reduce earnings by approximately $0.05 per share, and that assumption is incorporated into our revised guidance. As Bill also mentioned earlier,…

Thank you, Mr. Protsch. At this time, the company will open up the call to questions from members of the investment community. [Operator Instructions]. We'll take our first question from Dave Parker with Robert W. Baird. Mr. Parker, please go ahead. Your line is open sir. Dave Parker - Robert W. Baird & Co.: I am sorry. Good morning and kudos on a good quarter, given some of the unusual items. Maybe first thing, if you could talk about the flooding, since some of the recovery, I guess the regulatory frameworks sometimes are keyed upon public kind of feedback or view on how you responded to the challenges faced by the flood? Is there anything... do you... have you received any kind of public feedback on how IP&L did during or at least the public perceived how IP&L did during the flood?

David, this is Bill. Obviously, we've had a variety of both expressive public opinion as well as in private public opinion expressed. As I indicated in my prepared remarks, we're extraordinarily proud of the way our organization performed and we're extraordinarily proud of our people and I think it is fair to say that overall, the reaction in Cedar Rapids to our performance during this event has been very, very positive. That's both from the public in general and certainly from all of the local public officials with whom we've had intense dealings over this timeframe. So I think, we get good marks for how we performed. Dave Parker - Robert W. Baird & Co.: Good. And what we had seen in some of the pictures that you had on your website, boy, what a huge challenge there. Is there anything public from the Iowa PUC and I believe also you were applying for some kind of deferral accounting from them for some of these costs?

David, we've had some ongoing conversations with the Iowa Utilities Board about they are giving consideration to various forms of rate treatment for non-insured cost recovery that will arise here. Deferral accounting is not a common practice in Iowa. Whether or not that is a mechanism the board will consider, given that we are talking about something that apparently happens every 500 years, I really can't predict whether or not they'll entertain something like deferral accounting. The fact of the matter is that we are engaged in ongoing conversations with the board conserving accommodations that deal with non-insured cost recovery associated with the flood, and the door hasn't been shut on those conversations. So I view that as a good sign, but what kind of mechanism, if any, the board might ultimately consider to deal with the situation is very much a work in progress at this point in time. Dave Parker - Robert W. Baird & Co.: So, everything has been expensed [ph] so far?

We're dealing with the allocation of insurance proceeds to the class associated with the flood. Some of its own and some its capital and that's... all I can tell you David is that, that is all reflected in our revised guidance and in one of the pages of PowerPoints included on our website. They are sort of a breakdown of the way we have calculated the $0.15 impact at the utilities of the flood. Dave Parker - Robert W. Baird & Co.: Okay, perfect. Thank you. And moving on to... I think there's a lot of color around Nelson Dewey in particular and where you stand versus the staff's opinion, and hopefully whether the commissioners may decide, but recently the Wisconsin Energy Task Force released sort of its opinion on a lot of different items. And how would your opinion or view and some of it's been tweaked here throughout the whole Nelson Dewey approval process, sort of lineup with some of the findings of the Wisconsin Energy Task Force?

Well, I think it does very much. I think our proposal for that facility and the other activities that I outlined that are associated with our balanced generation plan, I think square very well with the recommendations from the Governor's Task Force. Biofuels is a big part of the Nelson Dewey proposal, 20% biofuel Btu input into a facility is a big deal and it's something that we are committed to doing, it's something that we are designing the plant to be able to accommodate and when you add that to our very robust renewables program, both the one that is currently underway as well as the one that we've announced as being contingent upon the approval of Nelson Dewey number 3, I think puts our plan four square aligned with the recommendations from the Governor's Task Force. Nothing in the Governor's Task Force says that we should not continue our reliance upon coal as a fuel source for the production of electricity in Wisconsin. Dave Parker - Robert W. Baird & Co.: Excellent, thank you. There was a lot of discussion last week and I think revolves around uncertainty as far as the Wisconsin fuel rules and revision. I think everyone looks at the band and the band hasn't changed much and we wonder how is that much better. But my perception is what's they missed is that the change in the fuel rules are that it's not this perspective only kind of change, which means that you cannot only under earn 2% or could actually be 4, 5, 6 or whatever. Is that essentially the biggest change here with the way that the rules, the new fuel rules could be, if they implement it next year?

David, this is Eliot. You are on the money, so to speak. The incorporation of a deferral capability under these new rules is very significant to the economic health and recovery of these fast for our shareholders, because when you look at the historical experience of the cause, it is primarily the regulatory lag that has been detrimental to our shareowners. So that would go away with deferral economy. So I think you have captured the essence of the change. Dave Parker - Robert W. Baird & Co.: Eliot, do you have off the top of your head, what the under recovery of fuel did to earnings in 2007, and maybe even 2006?

I don't have that in front of me. But as I recall, Jamie is here in the room. Jamie, do you have that information?

I can follow up with you David.

David, why don't we get that to you offline rather than we run the risk of misquoting the number because we previously disclosed that. We try to lay it out very explicitly this year in the prepared remarks. So, let us know if we have any follow up there as well. Dave Parker - Robert W. Baird & Co.: Okay. And before I leave, the wonderful fuel rules in Wisconsin, it appears as if one of the reasons why the improved utility outlook is in fact because public cost have gone down there for you. You look to have a lower fuel under recovery potentially for this year? C: Eliot G. Protsch: Well, part that has to do with degree days in the second quarter, when you... all of the forecast for the fuel rules are of course based on normal weather, and we hedge to a certain degree and try to minimize our open positions. When you rolled it all together, extremely hot weather, requiring us to burn more fuel is not necessarily always advantages to our shareowners, when you have market prices that differ from our basic assumptions, when the fuel rate was established for the year. And of course that was done in 2007 and then adjusted with our interim plans. So lots of moving pieces in those complex rules that in Wisconsin can... if they don't line up relative to the original assumptions, can be detrimental. Dave Parker - Robert W. Baird & Co.: Good, I give that... I am sorry to have so many questions here. Moving to the non-reg, and I wrote these questions down so I don't forget them Bill since you told me I am older than Dirk [ph]. At WindConnect, I mean nice pick up in the quarter and then also the longer term... the outlook for 2008. What you think the capacity is here for WindConnect and clearly the demand for wind power generation and the outlook for wind power has been lately written about lately. What do you think the longer term look for RMT WindConnect biz?

Well, Eliot covered the presence of the business in the marketplace today and I think for our purposes here today, there are two obvious considerations. Number one, the wind energy market is on a dramatic upturn in the United States, and I don't think there is anyone that understands this industry that doesn't believe it's going to remain very robust for many years to come. And RMT has a very substantial position in that marketplace that because the company is well managed, we should expect its position in the marketplace to increase over time. So being a well positioned company with an objective to increase your presence in a rapidly growing marketplace, I think spells a bright future for RMT WindConnect. Dave Parker - Robert W. Baird & Co.: Right. Thank you very much.

[Operator Instructions]. We'll go next to Steve Fleishman at Catapult.

Hi guys, can you hear me?

Yes Steve.

Just on the RMT WindConnect, did you say that you are now expecting that business to earn $0.16 for the year?

Yes.

Is that right.

Yes.

Is it possible for you to give us some sense on the other non-reg businesses?

This transportation business which is our short line railroad as well as a variety of rail large and coal storage operations, will earn something around $0.07 for the year. Our non-regulated generation business which is the Sheboygan Falls facility that is leased to Wisconsin Power & Light Company under the lease generation law as well as ended least generation. Although as well our [indiscernible] operations are expected to earn $0.05 to $0.08 a share and there are a variety of other smaller unregulated businesses that will make modest contributions as well.

Okay. And as we think going forward, the business that should really grow from this year should be WindConnect, the other should be more stable?

Well, certainly the upside potential with respect to WindConnect is greater than it is with respect to the other businesses. Our intention is to grow the earnings of the other businesses as well but certainly the greater upside potential via considerably margin is related to WindConnect.

Okay. And just I think Eliot had mentioned on the staff recommendation that's coming, the fuel obviously would be adjusted and then I guess this... they probably are not going to allow quip on some of these bill, although I guess you could book AFUDC anyway.

Yes. Steve, what I was looking to communicate is that we would not expect staff to file testimony that would be inappropriately from their position presumptuous that what the commission is going to do with the CPCN dockets that are in front of them for Nelson Dewey. We would expect that if that we receive favorable outcome and then the Nelson Dewey proceeding for example before the final order is issued that the commission would seek to adjust the final order to reflect whatever it is they might conclude as to an appropriate return on construction work in progress. But, you are correct that we would accrue AFUDC in the event that the timing of the one of those dockets does not line up.

Okay. One other question, just from a general standpoint. If in the event you are not allowed to build either of the coal plants which, I guess we'll see what happens, but in that event, obviously, you are still building these wind projects. Would you still need to replace that power with some other type of plant, like a gas plant or some sort of something else in that unlikely event?

Yeah. Clearly, we answer this is yes. Steve.

Correct.

And obviously, the alternatives that are available out there in the world today are nuclear or natural gas and we are not rushing to the door to build nuclear plants here at Alliant Energy. So the alternatives are going to be gas plants and I think if you look at the Wisconsin Commission staff's perspectives in the final environmental impact statement, their perspective appears to be that if we aren't allowed to build Nelson Dewey, we ought to build a bigger coal plant somewhere else and share it with others or we should build a natural gas plant. And that same conversation obviously has taken place at IP&L. However, at IP&L we already have joint partners that are a part of the proposed Sutherland unit number 4.

Great. One other quick question, just the operating cost savings at the utility that allowed you to increase your guidance, are those kind of across both for the utility companies?

Yes.

Okay, okay, thank you very much.

[Operator Instructions]. We'll take our next question from Peter Hark at Talon Capital.

Yes, good morning. A couple of quick clarification questions first. What do you anticipate your quip balances will be by year end, for both the Whispering Willow and the Cedar Ridge projects, and where do you think the cash balances will go to by year end?

I believe we have a slide, if you look at slide four that we posted, that should give you a sense by project of where we believe our spending will end the year at, to all of the projects. But in the case of Cedar Ridge, that project will be in service. So, that should have zero quip as of your hand.

Okay. And you'll... Eliot you'll be funding that booth with cash and debt, so where will the cash balance you can go from the... 574 million at the period end now?

We've not given or provided a exact forecast of year end cash, but if you look at our CapEx through the end of June, and you look at the estimates of where we are going to... or what we are going to spend for the entire year, it's going to remain positive plus we'll be terming out some of our short-term debt into long-term debt, which to some degree is capital structure management as well as effective utilization of cash.

Okay, great. And then just maybe following up on David's question a little bit on the fuel under recovery, what's anticipated Wisconsin fuel under recovery for this year and... how much of that would you recover if and when the new mechanism is approved?

It's around $0.02 under recovery for the year, $0.02 to $0.03, I think is what we have incorporated in our guidance. But you should assume that there will be no claw back, if you will, to capture whatever our under recovery might be for 2008. Of course, the way the rules are structured, if something were to happen, it's unanticipated and we have an over recovery that there is a refund rule that would come into effect if you are outside of the band.

Right. And that's... to that point, that's the $1 million reserve that you made here in the second quarter?

Right. And are subject to what... Jamie could call you on this, but I think '08 is going to be a very good year when judged against the last... experience of the last five in terms of managing the WPL fuel costs in a way that is reasonably non-detrimental to shareowners.

I agree. Well, thank you very much. Thank you.

Thank you, Peter.

[Operator Instructions]. And it would appear that we have no further questions in the queue. Mr. Freeman, I would like to turn it back over to you for any additional or closing remarks.

With no more questions, it concludes our call. A replay will be available through August 13, 2008 at 888-203-1112 for U.S. and Canada or 719-457-0820 for international callers. Callers should reference conference ID number 1629947. In addition, an archive of the conference call and the script of the prepared remarks made on the call will be available on Investors section of our company's website later today. Thank you for your continued support of Alliant Energy and feel free to contact me with any follow up questions.

That does conclude today's presentation. We thank everyone for their participation. You may disconnect your lines at any time. Have a good day.