CEDAR RAPIDS, Iowa – Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), announced today the signing of an 11-year power purchase agreement from the Duane Arnold Energy Center (DAEC) in Palo, Iowa, beginning in 2014. After a comprehensive competitive bid process, IPL selected the DAEC agreement as part of its long-term plan to ensure a balance of energy sources that support economic growth, reduce emissions and manage costs for its customers in Iowa and Minnesota.
“This agreement not only saves our customers money over the long term, but it provides them a reliable, local source of clean energy,” said Tom Aller, President of IPL. “It’s also significant for the hundreds of local workers at the Palo facility.”
The Iowa Utilities Board (IUB) recently issued an order allowing IPL to proceed with its plan to enter into the 11-year agreement with DAEC owner NextEra Energy. The DAEC agreement is a major component in IPL’s long-term energy resource plan announced last summer. The plan includes this agreement to purchase power, as well as a plan to build a gas-fired plant in Marshalltown; investments in the company’s largest, most cost-effective coal-fired power plants to reduce emissions; planned retirement of three older power plants; and a continued commitment to strong energy-efficiency programs and renewable energy.
IPL has filed a request with the IUB to construct a new natural gas-fired generating station in Marshalltown. IPL will use the proceeding to demonstrate why the new plant is the best long-term option for customers. The IUB is expected to make a ruling on IPL’s request later this year.
“Marshalltown is a great location for this new $700 million investment. We have an experienced team working on details and design, we have great support from the community, and we expect new opportunities for economic growth in the area,” said Aller.
In addition to the Marshalltown plant, IPL plans to invest $440 million over four years to increase efficiency and reduce emissions in its largest coal-fired power plants.
“The DAEC agreement is an important step to successfully executing our long-term strategy. We are committed to working with customers, stakeholders and regulators to implement the remaining components of our long-term plan. We are optimistic about Iowa’s future, and we are committed to supporting economic growth with reliable power at a competitive price,” said Aller.