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Construction underway on $345 million emissions reduction project at Ottumwa Generating Station

State and local leaders join owners for groundbreaking of emissions reduction technology projects

Ottumwa, Iowa – August 16, 2012 – Interstate Power and Light Company (IPL), an Alliant Energy company, along with co-owner MidAmerican Energy, formally celebrated the start of construction today on a $345 million emissions reduction technology project at the 726 megawatt Ottumwa Generating Station (OGS), located near Chillicothe, Iowa.

Joining the co-owners at the ceremonial groundbreaking were Governor Terry Branstad, Lieutenant Governor Kim Reynolds and Iowa Economic Development Authority Director Debi Durham, other local and state elected officials, project partners Burns and McDonnell Engineering Company and Babcock and Wilcox Construction Company and representatives of the many craft labor unions who will be performing the work over the course of this three-year project.

“The OGS project is a win-win for Iowa’s economy and environment,” explains Pat Kampling – Chairman, President and CEO of Alliant Energy. “The project at OGS will create approximately 400 good-paying construction jobs for Iowa’s working families and foster future economic growth while making Iowa’s air cleaner.”

The addition of a dry scrubber and baghouse systems to OGS by the co-owners is designed to reduce sulfur dioxide and mercury emissions by 90 percent. The project will result in additional environmental benefits by capturing fine particulate matter and reducing sulfuric acid mist along with other air emissions. The project allows for compliance with both state and federal emissions requirements.

“Alliant Energy and MidAmerican Energy’s $345 million investment in the Ottumwa Generating Station is a long-term investment in Iowa’s economy and environment,” says Iowa Governor Terry Branstad. “The project is designed to make Iowa’s air and water cleaner while putting nearly 400 Iowans to work. Investing in our power supply and energy infrastructure is critical to our state’s long-term pursuit of economic opportunities for Iowans today and into the future.”

The OGS project is part of IPL’s long-term energy resources plan which includes:
· Investments in emission reduction technology and efficiency uprates in its existing generating fleet
· Construction of a 600 megawatt, combined-cycle generating station in Marshalltown, Iowa
· Execution of a nuclear purchase power agreement for energy and capacity from the Duane Arnold Energy Center (DAEC), located in Palo, Iowa
· Continued commitment to renewable resources and energy efficiency.

“Investments to reduce emissions and increase the efficiency of OGS, along with other units in our current generating fleet is a key part of our long-term, multi-billion dollar, energy resources strategy,” adds Kampling. “Over the next five years, our company will invest, in Iowa, more than one billion dollars in our existing generating fleet and construction of a new natural gas-fired generating station. Combined, these investments in Iowa’s energy future will ensure that our state has a balanced and flexible mix of power supply options to meet future generation of Iowans energy needs.”

The total OGS project cost for the two utility owners is expected to be approximately $345 million with IPL’s portion totaling approximately $166 million.

Combined, the emissions reduction technology is designed to reduce annual sulfur dioxide and emissions by approximately 4,900 tons and decrease annual mercury emissions by 135 pounds.

OGS, which began commercial operation in 1981, produces enough energy to power more than 700,000 Iowa homes.

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