LEASES

(a) Operating Leases - Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. In 2016, 2015 and 2014, rental expenses associated with operating leases were not material. At December 31, 2016, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):



	2017		2018		2019		2020		2021		Thereafter		Total
Alliant Energy		$6		$6		$2		$2		$1		$15		$32
IPL	3		2		1		1		1		10		18
WPL	3		4		—		—		—		—		7

Leases

LEASES

(a) Operating Leases - Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. In 2016, 2015 and 2014, rental expenses associated with operating leases were not material. At December 31, 2016, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):



	2017		2018		2019		2020		2021		Thereafter		Total
Alliant Energy		$6		$6		$2		$2		$1		$15		$32
IPL	3		2		1		1		1		10		18
WPL	3		4		—		—		—		—		7

Leases

LEASES

(a) Operating Leases - Various agreements have been entered into related to property, plant and equipment rights that are accounted for as operating leases. In 2016, 2015 and 2014, rental expenses associated with operating leases were not material. At December 31, 2016, future minimum operating lease payments, excluding contingent rentals, were as follows (in millions):



	2017		2018		2019		2020		2021		Thereafter		Total
Alliant Energy		$6		$6		$2		$2		$1		$15		$32
IPL	3		2		1		1		1		10		18
WPL	3		4		—		—		—		—		7

(b) Capital Leases -

WPL - In 2005, WPL entered into a 20-year agreement with AEF’s Non-regulated Generation business to lease Sheboygan Falls, with an option for two lease renewal periods thereafter. The lease became effective in 2005 when Sheboygan Falls began commercial operation. WPL is responsible for the operation of Sheboygan Falls and has exclusive rights to its output, and the PSCW approved this affiliated lease agreement in 2005. The capital lease asset is amortized using the straight-line method over the 20-year lease term. WPL’s retail and wholesale rates include recovery of the Sheboygan Falls lease payments. Sheboygan Falls lease expenses were included in WPL’s income statements as follows (in millions):



	2016		2015		2014
Interest expense		$9.3		$9.9		$10.4
Depreciation and amortization	6.2		6.2		6.2
		$15.5		$16.1		$16.6

At December 31, 2016, WPL’s estimated future minimum capital lease payments for Sheboygan Falls were as follows (in millions):



	2017	2018	2019	2020	2021	Thereafter	Total	Less: amount representing interest	Present value of minimum capital lease payments
Sheboygan Falls	$15	$15	$15	$15	$15	$53	$128	$44	$84