CEDAR RAPIDS, Iowa, April 29, 2013 /PRNewswire/ -- Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), filed today with the Iowa Utilities Board (IUB) a proposed settlement agreement reached between the company and the Iowa Office of Consumer Advocate (OCA) which, if approved by the IUB, would allow IPL to proceed with its plans to construct the Marshalltown Generating Station (MGS), a 600 megawatt, combined-cycle natural gas facility in Marshalltown, Iowa 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," says 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, 2013. 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.
IPL had previously filed for approval of eight ratemaking principles prior to beginning construction of MGS. Of these principles the OCA and IPL had differences on three terms which are resolved in the proposed settlement. The proposed settlement includes the OCA recommended Return on Equity (ROE) of 11.0 percent for the project, a ROE of 10.3 percent used in the calculation of the allowance for funds used during construction, and both parties have withdrawn their respective positions on double leverage and agreed that the issue can be addressed in the context of a rate case or other proceeding. The proposed settlement agreement filing will be available on the IUB's electronic filing system. The filing is under docket numbers GCU-2012-0001 and RPU-2012-0003.
IPL expects to receive an IUB decision on MGS by the fourth quarter 2013. The IUB's decision to grant a certificate for construction of the proposed MGS would be contingent upon IPL receiving all necessary permits and regulatory approvals, including approval for construction of a natural gas pipeline to supply fuel to MGS and an air permit from the Iowa Department of Natural Resources, related to the proposed project.
"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," adds 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.
This press release contains forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "proposed," "plan," "approximately," "expected," 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: final approval of the IUB of the settlement agreement; state or federal regulatory actions or local government actions, including inability to obtain all necessary approvals and permits; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of IPL's plans; 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).