Interstate Power and Light Co. outlines strategy for meeting current and future energy needs of customers in Iowa and Minnesota
MARSHALLTOWN, Iowa, Aug. 2, 2012 /PRNewswire/ -- Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation, (NYSE: LNT), outlined today the company's energy resources strategy. Developing a balanced supply of energy resources, along with providing safe and reliable service and maintaining competitive costs are key components of the company's long-term strategic plan.
"Our energy resources strategy is a blueprint for how our company plans to provide future generations of customers in Iowa and Minnesota with safe and reliable energy," says Tom Aller, President of IPL. "Our plan calls for investing more than one billion dollars in IPL electric generation over the next five years. These investments will provide flexibility for the next decade and beyond to meet current and anticipated generating needs."
There are four parts to the energy resources strategy:
- Investments to reduce emissions and increase efficiency of existing coal-fired generating fleet
- Execution of a new nuclear purchase power agreement
- New natural gas-fired generation
- Continued commitment to renewable resources and energy efficiency
Reducing emissions and increasing efficiency of existing fleet
IPL will continue to execute its strategy of making targeted investments in the company's existing coal-fired generating fleet. IPL expects to invest approximately $430 million over the next five years in its largest coal-fired plants to increase efficiency and reduce emissions.
Execution of a new nuclear purchase power agreement
IPL plans to file with the Iowa Utilities Board (IUB) in August 2012 for approval of a Purchase Power Agreement (PPA), recently negotiated with NextEra Energy Resources. If approved, the PPA enables IPL to purchase 431 megawatts of energy, with capacity included, from the Duane Arnold Energy Center (DAEC) from 2014 through 2025. Through this agreement IPL's customers will continue to have access to locally-produced nuclear power from an existing generating station. A decision by the IUB is expected by early 2013.
"The DAEC PPA makes financial sense for our customers," says Aller. "Throughout our company's long-term planning process, our focus remained on pursuing a strategy that was in the best interests of our customers. We are pleased to continue purchasing power produced in Iowa by the DAEC that will serve our customers' energy needs at a reasonable price."
New natural gas-fired electric generation
IPL expects to file for regulatory approvals in the fourth quarter 2012 for plans related to the construction of an approximately 600 megawatt, combined-cycle natural gas-fired generating station in Marshalltown, Iowa. The cost for the new facility is projected to be approximately $650 to $750 million.
The company expects to receive the appropriate regulatory decisions by the end of 2014. If approved, IPL expects construction to begin after approvals are received with an anticipated in-service date of the generating station in the second quarter 2017.
The company's evaluation process of power supply options led to a combined solution of purchasing power from DAEC and construction of a new natural gas-fired facility as the best way to meet the long-term needs of our customers in Iowa and Minnesota while maintaining a reasonable cost for the power. The company expects the current and long-term forecast for strong natural gas supply to benefit customers.
"We look forward to working with the community as we pursue regulatory approvals to construct a new generating facility in Marshalltown," Aller added. "Their support has remained steadfast and we are very pleased to partner with the community. This new facility will create Iowa jobs and will further position Marshalltown and the rest of our service area to pursue additional economic development opportunities."
Continued commitment to renewable resources and energy efficiency
The company remains committed to development and use of renewable resources and its energy efficiency programs.
IPL's renewable resources, which include company-owned generation and a number of renewable PPA's, are key components to a balanced power supply because they reduce dependence on fossil fuel generation. Energy efficiency programs also enable the company to manage load and mitigate cost impacts for customers.
"Our investments in this strategy are about building upon our service area's resiliency," Aller said. "We believe our investments will further diversify and strengthen both Iowa's and Minnesota's energy future and create Iowa jobs for Iowa's families while meeting the near- and long-term energy needs of our customers."
"IPL believes the continued transition of its power supply reduces emissions, increases efficiency and taps into the strength of renewable power in Iowa and Minnesota, while remaining focused on meeting customers' energy needs with limited customer cost impacts."
This press release contains forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "plans," "approximately," "expects," "believe," "projected," "anticipated," or other words of similar import. Similarly, statements that describe future plans or strategies are also forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: state or federal regulatory actions or local government actions, including inability to obtain all necessary approvals and permits; unanticipated construction issues, delays or expenditures; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of IPL's plans; failure of equipment and technology to perform as expected; changes to environmental regulations; changes to IPL's access to capital markets; political conditions in IPL's service territories; and economic conditions in IPL's service territory. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and IPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.
About Alliant Energy – IPL
Interstate Power and Light Company (IPL), based in Cedar Rapids, Iowa, provides electric service to 525,000 customers and natural gas service to 233,000 customers in more than 700 communities throughout Iowa and southern Minnesota. IPL is committed to providing the energy and exceptional service its customers and communities expect – safely, reliably, and affordably. IPL is a subsidiary of Alliant Energy Corporation, for more information, visit alliantenergy.com or call 1-800-ALLIANT (800-255-4268).
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