Marshalltown natural gas plant is 75% complete, Alliant says

Alliant Energy (NYSE:LNT) CEO Patricia Kampling said Feb. 23 that construction of the Marshalltown combined-cycle natural gas facility in Iowa is  now 75% complete.

Marshalltown is “on time and on budget and expected to go into service in the spring of 2017,” Kampling said during a quarterly earnings call with financial analysts.

Alliant Energy has updated its projected capital expenditures for 2016 through 2019, which total approximately $5bn.

“Such estimates do not reflect any potential impacts to Alliant Energy’s expenditures resulting from the purchase options available to certain electric cooperatives for a partial ownership interest in the proposed Riverside expansion, nor the additional capital expenditures related to Columbia Energy Center that WPL [Wisconsin Power & Light] may incur related to the recent agreements entered into with Wisconsin Public Service Corporation and Madison Gas and Electric, the company said in a news release.

Alliant expects the Wisconsin Public Service Commission to rule upon a certificate for the Riverside expansion project in the second quarter of 2016.

On another topic, Kampling said the recent Supreme Court stay of the Environmental Protection Agency (EPA) Clean Power Plan will not affect Alliant much.

The “orderly transition” toward less-emitting generation will continue to decrease Alliant CO2 emissions, Kampling said. Alliant operates in states that have been traditional backers of renewable power, she added.

A couple of coal units, including Nelson Dewey, were retired in late 2015, Kampling said.

Wind energy provided about 8% of Alliant customer needs in 2015. In Iowa, the company is reviewing the response to a solar RFP.

“In 2015, we once again delivered solid financial and operational results,” said Kampling. “Consistent with our long-term earnings growth goal, our temperature normalized non-GAAP earnings per share increased by 5% over calendar year 2014. We will continue to balance operational and financial discipline, cost impact to customers and capital investments while striving to achieve our projected earnings growth rate of 5-7%,” the CEO said.

Included in WPL’s base rate settlement for 2015 and 2016 was an increase in transmission expenses primarily due to the anticipated allocation of system support resource costs from the Presque Isle plant located in upper Michigan.

Interstate Power & Light (IPL) is expected to file its emission plan and budget with the Iowa Utilities Board during the first quarter.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.