Interstate Power & Light Company Will Build New Generation Facility; Cerro Gordo and Buchanan County Named as Leading Sites

Apr 30, 2002, 01:00 ET from Interstate Power and Light Company

    CEDAR RAPIDS, Iowa, April 30 /PRNewswire-FirstCall/ -- Interstate Power
 and Light Company, a wholly owned subsidiary of Alliant Energy, announced
 today it will build the first generation facility in the company's Power Iowa
 program.  The selection of the utility to build the 500 MW natural gas fired
 facility was reached after exhaustively reviewing bids submitted by other
     (Photo: )
     "After a thorough examination of the bids, it became apparent that we
 offered our customers the best value for building a new power plant in Iowa,"
 said Eliot Protsch, President, Interstate Power and Light Company.  "We are
 excited at the opportunity to be building a new facility that will create
 hundreds of jobs, bring in new tax revenues and help meet Iowa's escalating
 energy demand for years to come."
     While no site has been finalized, the Cerro Gordo and Buchanan County
 areas are the leading sites due to their proximity to both transmission lines
 and gas pipelines.
     "We are working with officials and landowners in these areas to determine
 if they would be willing to host the new facility that will bring millions of
 dollars to the local economy," said Protsch.  "Having the support of the host
 community will play a vital role in making a final site determination."
     When completed, the 500 MW natural gas fired facility will produce enough
 electricity for nearly 150,000 homes in Iowa.  The combined cycle plant is
 under an aggressive construction schedule to come online in 2004 when Iowa is
 expected to fall short on its energy supplies.
     "The final step in building the new plant is securing the capital
 necessary to construct the nearly $400 million facility," added Protsch.  "We
 are confident regulators will approve the necessary principles to finance
 construction of this facility."
     The second phase of Power Iowa is adding at least 150,000 Mwh of renewable
 energy to the company's generation portfolio.  A bid for this project will be
 awarded to a developer in the next few weeks.  The third phase of the program
 will begin later this year with a Request For Proposal (RFP) for a new clean
 coal plant.
     "Burlington, Clinton, Marshalltown and Ottumwa have all expressed an
 interest in hosting a new clean coal site in their community," added Protsch.
 "This facility will bring even more jobs and tax revenues to Iowa and to the
 local economy of the community that hosts it."
     Power Iowa is Interstate Power and Light Company's comprehensive energy
 plan to ensure a reliable energy supply for its Iowa customers.  The
 $1 billion investment plan focuses on a portfolio approach to meeting Iowa's
 energy needs by utilizing natural gas, coal, and renewable energy sources, as
 well as improving energy efficiency practices and upgrading the state's
 transmission network.  Interstate Power and Light Company is a wholly owned
 subsidiary of Alliant Energy.
     Alliant Energy Corporation (NYSE:   LNT) ( ),
 headquartered in Madison, Wis., is a growing energy-services provider with
 operations both domestically and internationally.  Alliant Energy, through its
 subsidiaries and partners, provides electric, natural gas, water and steam
 services to over three million customers worldwide.
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SOURCE Interstate Power and Light Company