Bond Interstate Energy & Lighting 5.5% ( US461070AE45 ) in USD

Issuer Interstate Energy & Lighting
Market price 100 %  ⇌ 
Country  United States
ISIN code  US461070AE45 ( in USD )
Interest rate 5.5% per year ( payment 2 times a year)
Maturity 15/07/2025 - Bond has expired



Prospectus brochure of the bond Interstate Power and Light US461070AE45 in USD 5.5%, expired


Minimal amount 1 000 USD
Total amount 50 000 000 USD
Cusip 461070AE4
Standard & Poor's ( S&P ) rating A- ( Upper medium grade - Investment-grade )
Moody's rating Baa1 ( Lower medium grade - Investment-grade )
Detailed description Interstate Power and Light (IPL) was a public utility company serving eastern Nebraska and western Iowa before its merger with Central Iowa Power Cooperative in 1998, resulting in the formation of Central Iowa Power Cooperative.

The Bond issued by Interstate Energy & Lighting ( United States ) , in USD, with the ISIN code US461070AE45, pays a coupon of 5.5% per year.
The coupons are paid 2 times per year and the Bond maturity is 15/07/2025

The Bond issued by Interstate Energy & Lighting ( United States ) , in USD, with the ISIN code US461070AE45, was rated Baa1 ( Lower medium grade - Investment-grade ) by Moody's credit rating agency.

The Bond issued by Interstate Energy & Lighting ( United States ) , in USD, with the ISIN code US461070AE45, was rated A- ( Upper medium grade - Investment-grade ) by Standard & Poor's ( S&P ) credit rating agency.







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424B5 1 c96294b5e424b5.htm PROSPECTUS SUPPLEMENT
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Table of Contents
Filed Pursuant to Rule 424(b)(5)
Registration No. 333-114065
Prospectus Supplement
(To Prospectus dated April 15, 2004)
$50,000,000
Interstate Power and Light Company
5.50% Senior Debentures due 2025

We will pay interest on the senior debentures semi-annually in arrears on January 15 and July 15 of each year,
beginning on January 15, 2006. The senior debentures will mature on July 15, 2025. We may redeem some or all of
the senior debentures at any time and from time to time at the redemption prices described in this prospectus
supplement.
The senior debentures will be our unsecured senior obligations and rank equally with our other unsecured senior
indebtedness from time to time outstanding. The senior debentures will be issued only in registered form in
denominations of $1,000.












Per Senior Debenture

Total





Public offering price(1)


99.414%

$
49,707,000
Underwriting discount


0.875%

$
437,500
Proceeds, before expenses, to Interstate Power and Light
Company(1)


98.539%

$
49,269,500

(1) Plus accrued interest, if any, from July 21, 2005 if settlement occurs after that date.
Neither the Securities and Exchange Commission nor any state securities commission has approved or
disapproved of these securities or determined if this prospectus supplement or the accompanying prospectus is
truthful or complete. Any representation to the contrary is a criminal offense.
The senior debentures will be ready for delivery in book-entry form only through The Depository Trust Company
on or about July 21, 2005.

Sole Bookrunning Manager
Barclays Capital
Joint Lead Manager
Banc of America Securities LLC
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Lazard Capital Markets

The date of this prospectus supplement is July 18, 2005
TABLE OF CONTENTS







Page



Prospectus Supplement
About This Prospectus Supplement


ii
Forward-Looking Statements


iii
Prospectus Supplement Summary


S-1
Use of Proceeds


S-5
Capitalization


S-5
Description of Senior Debentures


S-5
Underwriting


S-10
Legal Matters


S-12
Experts


S-12

Prospectus
About This Prospectus


2
Interstate Power and Light Company


3
Use of Proceeds


3
Ratios of Earnings to Fixed Charges and Preferred Stock Dividends


3
Description of Preferred Stock


4
Description of Debt Securities


6
Description of Collateral Trust Bonds


12
Global Securities


27
Plan of Distribution


28
Where You Can Find More Information


28
Legal Matters


29
Experts


29
ABOUT THIS PROSPECTUS SUPPLEMENT
This document is in two parts. The first part is this prospectus supplement, which describes the specific terms of
this offering. The second part, the accompanying prospectus, gives more general information, some of which may not
apply to this offering. You should read the entire prospectus supplement, as well as the accompanying prospectus and
the documents incorporated by reference that are described under "Where You Can Find More Information" in the
accompanying prospectus. Some of these documents, however, are filed on a combined basis with our parent, Alliant
Energy Corporation, and its direct subsidiary, Wisconsin Power and Light Company. Information contained in these
documents relating to these entities is filed by them on their own behalf and not by us, and you should not rely on
that information when deciding whether to invest in the senior debentures. In the event that the description of the
offering varies between this prospectus supplement and the accompanying prospectus, you should rely on the
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information contained in this prospectus supplement.
You should rely only on the information relating to Interstate Power and Light Company contained or
incorporated by reference in this prospectus supplement and the accompanying prospectus. We have not, and the
underwriters have not, authorized any other person to provide you with different information. If anyone provides you
with different or inconsistent information, you should not rely on it. We are not, and the underwriters are not, making
an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the
information appearing in this prospectus supplement, the accompanying prospectus and the documents incorporated
by reference is accurate only as of respective dates of those documents in which the information is contained. Our
business, financial condition, results of operations and prospects may have changed since those dates.
Unless we otherwise indicate or unless the context requires otherwise, all references in this prospectus to "we,"
"our," "us" or similar references mean Interstate Power and Light Company.
Our principal executive offices are located at Alliant Energy Tower, 200 First Street, SE, Cedar Rapids, Iowa
52401, and our telephone number is (319) 786-4411.
ii
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Table of Contents
FORWARD-LOOKING STATEMENTS
This prospectus supplement, the accompanying prospectus and the information we incorporate by reference into
this prospectus supplement and the accompanying prospectus contain forward-looking statements that are intended to
qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact, including statements regarding anticipated financial performance,
business strategy and management's plans and objectives for future operations, are forward-looking statements.
These forward-looking statements can be identified as such because the statements generally include words such as
"expect," "intend," "believe," "anticipate," "estimate," "plan" or "objective" or other similar expressions. These
forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially
from those expressed in, or implied by, these statements. Some, but not all, of the risks and uncertainties include the
following:

· weather effects on our results of operations;


· economic and political conditions in our service territories;


· federal and state regulatory or governmental actions, including the impact of potential energy-related legislation
in Congress and recently enacted federal tax legislation, and the ability to obtain adequate and timely rate relief
to allow for, among other things, the recovery of operating costs and the earning of reasonable rates of return in
current and future rate proceedings;


· unanticipated construction and acquisition expenditures;


· unanticipated issues in connection with our construction of new generating facilities;


· issues related to purchased electricity supplies and their prices, including the ability to recover purchased-power
and fuel costs through rates;


· unplanned outages at our generating facilities and risks related to recovery of increased costs through rates;


· issues related to electric transmission, including recovery of costs incurred, operating in the new Midwest
Independent System Operator energy market and federal legislation and regulation affecting such transmission;


· impact of weather hedges on our earnings;


· risks related to the operation of our Duane Arnold Energy Center nuclear facility and issues related to the
anticipated sale of our interest in that facility;


· costs associated with our environmental remediation efforts and with environmental compliance generally;


· developments that adversely impact our ability to implement our strategic plan;


· any material declines in the fair market value of, or expected cash flows from, our investments;


· our ability to continue cost controls and operational efficiencies;


· our ability to identify and successfully complete proposed acquisitions and development projects;


· our ability to complete our proposed divestitures of various businesses and investments in a timely fashion and
for anticipated proceeds;

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· access to technological developments;


· employee workforce factors, including changes in key executives, collective bargaining agreements or work
stoppages;


· continued access to the capital markets;


· the ability to successfully complete our ongoing tax audits and appeals with no material impact on our earnings
and cash flows; and


· changes in the rate of inflation.
We assume no obligation, and disclaim any duty, to update these forward-looking statements.
iii
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Table of Contents
PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights information contained elsewhere in this prospectus supplement and the
accompanying prospectus. This summary may not contain all of the information that may be important to you.
You should read the entire prospectus supplement and the accompanying prospectus carefully before making a
decision to invest in our senior debentures.
Our Company
We are a regulated utility serving customers in Iowa, Minnesota and Illinois. We are engaged principally in
the generation, transmission, distribution and sale of electric energy; the purchase, distribution, transportation
and sale of natural gas; and the provision of steam and other energy-related products and services, including
construction management services for wind farms. As of December 31, 2004, we served approximately
532,000 electric customers in 760 communities and approximately 237,000 gas customers in 253 communities.
All of our common stock is owned by Alliant Energy Corporation, an energy-services provider with subsidiaries
serving more than three million customers worldwide. Providing its customers in the Midwest with regulated
electricity and natural gas service, including through us, remains Alliant Energy Corporation's primary focus.
We are subject to the jurisdiction of the Iowa Utilities Board, or IUB, the Minnesota Public Utilities
Commission, or MPUC, and the Illinois Commerce Commission with respect to various portions of our
operations. We are also subject to the jurisdiction of the Federal Energy Regulatory Commission, or FERC, and
the Nuclear Regulatory Commission, or NRC. Our parent company, Alliant Energy Corporation, is a registered
public utility holding company subject to regulation by the Securities and Exchange Commission, or SEC,
under the Public Utility Holding Company Act of 1935. We are also subject to some requirements of that Act.
Recent Development
On July 5, 2005, we announced that we signed a definitive agreement to sell our 70% ownership interest in
the 598 megawatt Duane Arnold Energy Center, or DAEC, a nuclear generating facility located near Palo, Iowa,
to FPL Energy, LLC, a subsidiary of FPL Group, Inc. As part of the sale agreement, FPL Energy agreed to
purchase the nuclear generating facility, nuclear fuel and inventory from us for approximately $380 million. In
addition, the agreement contemplates that our affiliates will sell other related assets to FPL Energy for an
additional $7 million.
The purchase price for the DAEC facility is subject to various adjustments at closing and the sale agreement
also contemplates that we will transfer assets and make cash payments to FPL Energy at closing in connection
with FPL Energy's assumption of decommissioning and other liabilities. FPL Energy will be responsible for the
ultimate decommissioning of the facility.
We will enter into a long-term Power Purchase Agreement with FPL Energy to buy energy and capacity
from DAEC. The structure of the Power Purchase Agreement will result in costs for our electric customers
similar to the anticipated costs under our continued ownership. The Power Purchase Agreement will extend
through February 2014, concurrent with expiration of DAEC's current operating license.
Pending all appropriate state and federal regulatory approvals and satisfaction of other closing conditions,
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the transaction is expected to be concluded in late fourth quarter 2005 or early first quarter of 2006. The
transaction is subject to approvals by various regulatory agencies -- including the IUB, the MPUC, the NRC
and the FERC -- and possible reviews by the Department of Justice and/or the Federal Trade Commission.
In December 2004, we announced our intent to sell our ownership interest in the DAEC, because we
believed that a sale would reduce financial and operational uncertainty associated with nuclear generating
facility ownership and operations. At this time, we anticipate net proceeds from the asset sale will be available
for general corporate purposes and debt retirement.
S-1
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Table of Contents
The Offering
The following is a brief summary of some of the terms of this offering. For a more complete description of
the terms of the senior debentures, see "Description of the Senior Debentures" in this prospectus supplement
and "Description of Debt Securities" in the accompanying prospectus.
Issuer
Interstate Power and Light Company

Senior debentures offered
$50.0 million aggregate principal amount of 5.50% senior debentures due 2025.

Maturity
July 15, 2025.

Interest payment dates
January 15 and July 15 of each year, beginning January 15, 2006.

Ranking
The senior debentures will be our unsecured senior obligations and rank
equally with our other unsecured senior indebtedness from time to time
outstanding. The senior debentures will also be subordinated to our secured
indebtedness to the extent of the assets securing such indebtedness. As of
March 31, 2005, we had outstanding $259.4 million of secured indebtedness.

Optional redemption
We may redeem some or all of the senior debentures at any time and from time
to time at a redemption price equal to the sum of the principal amount of the
senior debentures we redeem, accrued interest on that principal amount to the
redemption date and the make-whole amount, if any, with respect to those
senior debentures. See "Description of Senior Debentures -- Optional
Redemption."

Covenants
The indenture governing the senior debentures contains covenants that, among
other things, limit our ability to:

· create some types of secured indebtedness; and

· consolidate or merge.

These covenants are subject to important exceptions and qualifications, which
are described under the heading "Description of the Debt Securities" in the
accompanying prospectus.

No limitation on debt
The indenture governing the senior debentures does not limit the amount of
senior debentures that we may issue or provide holders any protections should
we be involved in a highly leveraged transaction.

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Ratings
Standard & Poor's Ratings Services has assigned the senior debentures a rating
of BBB. Moody's Investors Service has assigned the senior debentures a rating
of Baa1. Ratings are not a recommendation to buy, sell or hold the senior
debentures. We cannot give any assurance that the ratings will be retained for
any time period or that they will not be revised downward or withdrawn by the
ratings agencies.
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