Interstate Power and Light Company, a subsidiary of Alliant Energy Corporation, filed Monday with the Iowa Utilities Board a proposed settlement agreement reached between the company and the Iowa Office of Consumer Advocate which, if approved by the IUB, would allow IPL to proceed with its plans to construct the Marshalltown Generating Station, a 600 megawatt, combined-cycle natural gas facility in Marshalltown, to provide long-term reliable power for our customers. The proposed settlement agreement is subject to IUB approval before becoming effective.
"Reaching a fair and reasonable settlement agreement with the OCA is a significant step forward in executing our long-term energy resource plan," said Tom Aller, President - IPL. "We appreciate the efforts of the OCA to work with us to reach this agreement."
In August 2012, IPL announced its long-term energy resources plan. The plan further balances IPL's supply of generating resources:
Investments to reduce emissions and increase efficiency of IPL's existing coal-fired generating units
Execution of a new long-term nuclear purchase power agreement to purchase 431 megawatts of capacity and energy from Duane Arnold Energy Center
Construction of MGS
Retirement of older and less efficient coal-fired generating stations
Continued commitment to renewable resources and energy efficiency
The IUB has scheduled an evidentiary hearing to consider IPL's request for a generation certificate for MGS as well as to consider IPL's proposed ratemaking principles. This hearing is scheduled to begin on May 21. IPL expects that the hearing will provide the IUB an opportunity to inquire into the details of the proposed settlement with the OCA. IPL has not reached agreement with the other interveners in the proceedings.
"The 600 megawatt, combined-cycle natural gas MGS is a key piece of our long-term energy resource plan and further demonstrates our optimism in Iowa's energy future," said Aller. "The proposed settlement helps IPL further our comprehensive plan that balances our supply of energy resources, provides safe and reliable service and maintains competitive costs for the benefit of customers." IPL expects to place MGS into service in the spring of 2017, if approved by the IUB.
More information about IPL's energy resource plan is available at www.alliantenergy.com.