The financing finalized Oct. 28 gives two Alliant Energy utility subsidiaries access to as much as $5.126488 billion for Iowa and Wisconsin power projects, including generation and storage.
The agreements set borrowing caps of $3.5 billion for Interstate Power and Light Company and $1.626488 billion for Wisconsin Power & Light Company. The Federal Financing Bank (FFB) is the lender, while the U.S. Department of Energy (DOE) acts as guarantor and loan servicer. The combined figure is a maximum borrowing amount; it does not mean the full sum was drawn at closing.
DOE forecasts that new facilities and upgrades could add more than 2.6 gigawatts of generation capacity and bring electricity customers savings exceeding $1 billion. Alliant projects savings of up to $1.2 billion over 30 years and more than 1,600 local construction jobs. The two savings figures are separate estimates from the agency and the company.
Alliant says it may pursue 1.6 gigawatts of new natural gas generation, 240 megawatts of added capacity at existing gas facilities, one gigawatt of energy storage and two billion cubic feet of liquefied natural gas storage. The company says proposals will go through regulatory review, but has not named a final set of facilities.
The financing follows DOE’s January 2025 announcement of conditional commitments totaling more than $3 billion for Alliant subsidiaries. That earlier plan covered about 2,000 megawatts of clean generation and storage, including wind power and batteries; the current list of possible projects also includes natural gas generation.
The utility subsidiaries are the borrowers and must reimburse DOE for amounts it pays under the guarantee. Alliant Energy is not a party to the loan agreements and has no direct obligations under them, the filings show.
Each advance may reimburse up to 80% of eligible project costs. Conditions include DOE environmental review, state regulatory approvals and investment-grade credit ratings. Requests are available until the earliest of Sept. 15, 2033, the facility cap being reached or termination of the funding obligation. Interest is set at the applicable U.S. Treasury rate plus 37.5 basis points, and borrowings have a final maturity date of May 15, 2056.
