-- Coal Supply: While both rail and barge deliveries continue toexperience service disruptions, sufficient inventory exists at all locationsto maintain normal levels of operation at units not impacted by the flooding.

-- Distribution: Approximately fourteen substations in the Cedar Rapidsarea have experienced flooding, a modest amount given the approximately 150substations operated by IPL in that area. Seven have already been placed backinto service, while portable substations and other back up arrangementscontinue to be made.

-- Office Buildings: The Alliant Energy Tower in Cedar Rapids, whichhouses over 1,000 Alliant Energy employees, had over seven feet of water onthe first floor at the height of the flooding. With the exception ofemergency service support facilities, the building is expected to have limitedoccupancy for the next few weeks. The Cedar Rapids electrical distributionoperations center was also flooded and is currently out of service. However,the company has implemented its crisis management plan and is successfullyoperating from multiple other locations.

-- AER Transportation: Both barge and short haul railroad service has beenadversely impacted as a result of the floods. Alliant Energy's CRANDICrailroad was able to resume switching operations in Cedar Rapids earliertoday. We are continuing to assess the magnitude of the damage and servicedisruption to customers. The railroad, along with its customers, is alsoadversely impacted due to damage that occurred to the overall transportationnetwork.

Alliant Energy has several mechanisms to mitigate the financial impact ofthese events.

First, Alliant Energy has an insurance policy with total limits of $100million for covered flood losses. This policy covers items includinggenerating assets, substations, office and operating buildings, and relatedproperty. Second, both IPL and WPL will be evaluating regulatory options forcost recovery, as appropriate to each specific jurisdiction. Finally, theincremental costs of any required replacement power needs are expected to flowthrough IPL's energy adjustment clauses.

Alliant Energy is currently unable to estimate the potential impact ofthese weather related events on 2008 earnings. An update to earnings guidancewill be made when the evaluation of the damages and lost sales issubstantially complete and reasonable estimates can be provided or as part ofour next quarterly earnings release.