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Before we begin, I need to remind you 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.In addition, this presentation contains non-GAAP financial measures. The reconciliations between non-GAAP and GAAP measures are provided in the supplemental slides, which are available on our website at www.alliantenergy.com. At this point, I'll now turn the call over to Pat. Pat Kampling Good morning and thank you for joining us today. This morning we issued a press release providing 2nd quarter results, new capital guidance for 2012 through 2016, and affirming our 2012 earnings guidance range of $2.75 to $3.05. It has been a hot and dry summer. In fact, IPL's service territory reached a new peak load last week. Our facilities and system have been operating well and I would like to take this opportunity to thank our employees for their dedication in meeting our customers' needs in very challenging working conditions. June's warm weather did help us to recover about half the negative earnings from the first quarter, when we experienced a warm winter. Including the expected results from the hot July, we now estimate that we are trending toward the top end of our 2012 earning guidance range. This guidance assumes that we have normal weather for August through December. Recently, Alliant Energy received our highest ranking ever in the J.D. Power electric utility Residential Customer Satisfaction survey. We took second place out of 16 electric companies in the Midwest large utility segment, I am so proud that the hard work and dedication from all of our employees has been recognized by our customers.
It has been a busy week as we have been communicating our generation strategies for our utilities. Our plan provides an orderly transition of our fleet and gives us the flexibility to ensure that we can cost-effectively, safely, and reliably meet the energy needs of our customers while managing current and emerging environmental regulations.Our plan includes increasing the amount of gas-fired generation in our portfolio, retrofitting our Tier 1 coal plants, evaluating less expensive emissions controls or repowering to gas for our Tier 2 units, and retiring our smaller and less efficient units which are no longer cost effective to operate and maintain. Focusing first on IPL, our plans call for construction of a new 600 megawatt combined cycle gas plant and 11-year Purchase Power Agreement with NextEra Energy Resources. As you recall, IPL completed an extensive RFP and due diligence process in the first half of 2012. We believe that the combined solution of competitively priced purchased power from DAEC and construction of a new natural gas-fired facility is the best way to meet the capacity and energy needs of our IPL customers while maintaining a reasonable cost of power by utilizing a balanced portfolio of resources. On the PPA, we have a new agreement with NextEra Energy Resources to continue to receive 70% of the output from the Duane Arnold Energy center. This new PPA will commence on the expiration of the existing PPA in February 2014, and will go until December 2025. IPL will seek regulatory approval of this PPA next week as IPL plans to file with the IUB, an amendment to the DAEC sale docket. The existing PPA was a key component of the original DAEC IUB application, and filing this amendment is the best path to receive regulatory approval. By statute, the IUB has six months to render a decision in this docket. DAEC's capacity expenses will cease with the expiration of the existing PPA and we will submit a tariff filing to receive recovery of the new PPA through the energy adjustment clause.
Now let me discuss the proposed new gas plant. In the fourth quarter of this year, IPL plans to file, under Iowa House File 577, for advanced rate making principles and site approval with the IUB, to construct an approximately 600 megawatt, combined-cycle natural gas-fired generating station located in Marshalltown, Iowa.Read the rest of this transcript for free on seekingalpha.com