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Alliant Energy Closes Sale of its Minnesota Electric Distribution Assets to Cooperatives

Twelve members of Southern Minnesota Energy Cooperative start providing service July 31.

Alliant Energy’s Iowa utility has successfully closed the sale transaction of its Minnesota electric distribution assets to the 12 member cooperatives of Southern Minnesota Energy Cooperative (SMEC).

Effective July 31, SMEC member cooperatives are handling all aspects of electric service to 43,000 former Alliant Energy customers who have become member-owners of their local cooperatives as a result of the sale.

Affected customers have received a transition guide from Alliant Energy and a postcard stating the effective sale date and their new cooperative’s name and phone number. Customers have also received a welcome letter from their local cooperative.

The 12 member cooperatives are:

BENCO Electric Cooperative 888-792-3626
Brown County Rural Electrical Association 800-658-2368
Federated Rural Electric 800-321-3520
Freeborn-Mower Cooperative Services 800-734-6421
Minnesota Valley Electric Cooperative 952-492-2313
Nobles Cooperative Electric 800-776-0517
People’s Energy Cooperative 800-214-2694
Redwood Electric Cooperative 888-251-5100
Sioux Valley Energy 800-234-1960
South Central Electric Association 507-375-3164
Steele-Waseca Cooperative Electric 800-526-3514
Tri-County Electric Cooperative 800-432-228

Financial information

Alliant Energy’s retail service area includes portions of Iowa and Wisconsin. In Minnesota, Alliant Energy will continue to operate its electric generation facilities and will sell electricity to SMEC per the 10-year purchased power agreement exercised as part of the sale.

Alliant Energy sold its gas distribution assets to Minnesota Energy Resources Corporation in April 2015.

Aggregate proceeds from the sales of the electric and gas distribution assets are approximately $145 million, including working capital adjustments and a $2 million promissory note.

The impact of the sale of the Minnesota electric and gas distribution assets was recorded in the second quarter of 2015. The premium received over the book value of the property, plant and equipment sold was more than offset by the tax-related regulatory assets associated with the Minnesota distribution assets resulting in a ($0.06) per share net charge in the quarter.

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