Alliant Energy (NYSE:LNT) said Nov. 8 that one of its utility subsidiaries has received a proposed decision and order from the Iowa Utilities Board (IUB) approving the 600-MW Marshalltown natural gas combined-cycle power plant.
Interstate Power & Light (IPL) received a proposed decision and order from IUB Chair Libby Jacobs approving a siting certificate and establishing ratemaking principles for the proposed power plant planned in Marshalltown, Iowa.
The “proposed” order will actually become final unless the full board or another party appeals the decision within 15 days. IPL and other parties then have 14 days to respond to appeals.
The proposed order sets a cost cap of $920m, including the facility, transmission costs, owner’s costs and allowance for funds used during construction (AFUDC).
The company is in the process of attaining other state and federal permitting approvals necessary to construct and operate the MGS. The IUB’s approval is conditional on receiving these permits. Pending all regulatory approvals, the company expects to begin construction in 2014 and begin operations in 2017.
The allowed rate of return of common equity capital on the portion of the MGS project included in Iowa electric rate base shall be 11%. This rate of return and common equity will not apply to the AFUDC calculation.
If IPL cancels construction of the MGS project for a good cause, IPL’s prudently incurred costs, as determined by the board, shall be amortized over a period not more than five years.
The filing is under docket numbers GCU-2012-0001 and RPU-2012-0003.