Interstate Power and Light Company, a subsidiary of Alliant Energy Corporation, outlined 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.”
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, increasing efficiency
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 in August 2012 for approval of a Purchase Power Agreement, 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 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.
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. 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.
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.