Alliant Energy’s (NYSE: LNT) Iowa utility filed a notice Nov. 19 accepting the proposed decision and order for the gas-fired Marshalltown Generating Station (MGS), issued by the Iowa Utilities Board (IUB) on Nov. 8.
The proposed decision and order from a board presiding officer had approved construction of the 600-MW MGS and included a cost cap of $920m. The proposed decision and order becomes final on Nov. 25, unless the IUB moves to review it or an appeal is filed by any party involved in the process.
In its filing, Alliant Energy’s Interstate Power and Light unit affirms its plan to construct the plant and cover costs of related high-voltage transmission upgrades and allowance for funds used during construction (AFUDC) within the cost cap established in the proposed order.
Said Tom Aller, President of Alliant Energy’s Iowa utility: “This plant is a cost-effective way to provide Iowa customers with a long-term source of locally-produced power.”
The IUB’s approval is conditional on the company attaining other state and federal permitting approvals necessary to construct and operate the MGS. On Nov. 18, the company received a proposed decision and order approving the needed pipeline construction to serve natural gas to the facility, which is one of the key approvals necessary before the plant project begins. Pending all regulatory approvals, the company expects to begin construction in 2014 and begin operations in 2017.
In November 2012, Interstate Power and Light (IPL) had filed with the Iowa board an application to construct and operate this nominal 600-MW natural gas-fired, combined-cycle unit. The proposed facility is to be located in Marshalltown, Marshall County, Iowa.
IPL has said that without MGS, it will be capacity deficient beginning in 2017. IPL said it would then need about 346 planning reserve credits (PRCs) from the Midcontinent ISO (MISO) in 2017 and about 617 PRCs in 2024 to meet its projected load growth and limit dependence on purchased power. Under the MISO tariff, one PRC equals one MW of unforced capacity from a resource for a given month during a planning year.