[Federal Register Volume 66, Number 88 (Monday, May 7, 2001)]
[Notices]
[Pages 23054-23055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11335]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27389]


Filings Under the Public Utility Holding Company Act of 1935, as 
Amended (``Act'')

April 30, 2001.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated under the Act. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendment(s) is/are available for public 
inspection through the Commission's Branch of Public Reference.

[[Page 23055]]

    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by May 25, 2001, to the Secretary, Securities and Exchange 
Commission, Washington, D.C. 20549-0609, and serve a copy on the 
relevant applicant(s) and/or declarant(s) at the address(es) specified 
below. Proof of service (by affidavit or, in the case of an attorney at 
law, by certificate) should be filed with the request. Any request for 
hearing should identify specifically the issues of facts or law that 
are disputed. A person who so requests will be notified of any hearing, 
if ordered, and will receive a copy of any notice or order issued in 
the matter. After May 25, 2001, the application(s) and/or 
declaration(s), as filed or as amended, may be granted and/or permitted 
to become effective.

Alliant Energy Corporation, et al. (70-9323)

    Alliant Energy Corporation (``Alliant Energy''), a registered 
holding company, and its subsidiary nonutility holding company, Alliant 
Energy Corporation (``AER''), both located at 222 West Washington 
Avenue, Madison, Wisconsin 53703, and AER's indirect nonutility 
subsidiary, Heartland Properties, Inc. (``Heartland'') (together, 
``Applicants''), 122 West Washington Avenue, 6th Floor, Madison, 
Wisconsin 53703 have filed a post-effective amendment to their 
application under section 9(c)(3) of the Act and rule 54 under the Act.
    By Commission order dated April 14, 1998 (HCAR No. 26856) (``1998 
Order''), the Applicants, through Heartland, were authorized to retain 
passive, limited partnership interest (``Investments'') in 84 in low-
income, multi-family housing projects that were located primarily in 
Alliant Energy's service territory and qualified for Low Income Housing 
Tax Credits (``LIHCT'') under section 42 of the Internal Revenue Code 
(``Code'').\1\ By subsequent order dated August 13, 1999 (HCAR No. 
27060) (``1999 Order''), the Applicants were authorized to make 
additional Investments in LIHTC properties in the Alliant Energy 
service territory in an aggregate amount of up to $50 million from time 
to time, through August 13, 2004.\2\ The 1999 Order provided that the 
Applicant's Investments in LIHTC properties would be undertaken for the 
sole purpose of obtaining the related tax credits and that all 
Investments would be self-liquidating as the LIHTCs expired.\3\ As of 
December 31, 2000, Heartland had invested approximately $15.5 million 
of the amount authorized in the 1999 Order.
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    \1\ Specifically, the Commission determined that the Investments 
were retainable under section 9(c)(3) of the Act, because the 
interests were acquired to generate tax credits under the Code and 
they were being converted into passive investments, which would wind 
down as the credits expired.
    \2\ An intervening order dated July 10, 1999 (HCAR No. 27198) 
authorized the Applicants to reacquire the limited partnership 
interest in a fund holding seventeen LIHTC properties, which the 
Commission determined to be retainable under the 1998 Order. Nine of 
the LIHTC properties held in that fund were located outside of the 
Alliant Energy service territory.
    \3\ LIHTCs are available in the form of equal annual tax credits 
that are earned over a ten-year period in the first eleven years of 
the project, with the first and last years prorated. However, in 
order for the tax credits to vest, the term of the investment must 
be for at least fifteen years. Once the credits are vested, an 
investments is fully recovered; that is, the Applicants' economic 
return is not dependent upon cash flow from the project or any 
residual value of the asset.
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    The Applicants now request that the Commission modify the authority 
granted in the 1999 Order. In particular, Applicants request that the 
Commission eliminate the restriction in the 1999 Order limiting new 
LIHTC investments to properties located in Alliant Energy's service 
territory,\4\ and permit the Applicants to acquire membership units in 
limited liability companies (``LLCs'') formed to invest in LIHTC 
properties.\5\ The Applicants state that each LLC will be managed by an 
unaffiliated manager and that the rights of an Applicant as a member of 
the LLC will be equivalent to those of a limited partner in a limited 
partnership. The Applicants are not requesting any other modifications 
to the authority granted in, or the limitations imposed by, the 1999 
Order.
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    \4\ See Exelon Corp., (HCAR No. 27256; October 19, 2000) (The 
Commission allowed a registered public utility holding company to 
retain limited partnership interests in nine different LIHTC funds 
holding properties in housing projects located throughout the United 
States. The Commission concluded that these investments were 
retainable under the standards of section 11(b)(1) of the Act, 
because they were passive in nature, made solely for the purpose of 
obtaining tax credits and would self-liquidate when the terms of the 
tax credit expired).
    \5\ See NiSource, Inc., (HCAR No. 27263; October 30, 2000) (The 
Commission allowed a registered public utility holding company to 
retain passive investments in LIHTC ventures organized as LLCs).

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-11335 Filed 5-4-01; 8:45 am]
BILLING CODE 8010-01-M