CEDAR RAPIDS, Iowa – March 20, 2013 – 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.
Interstate Power and Light Company (IPL), based in Cedar Rapids, Iowa, provides electric service to 525,000 customers and natural gas service to 233,000 customers in more than 700 communities throughout Iowa and southern Minnesota. IPL is committed to providing the energy and exceptional service its customers and communities expect – safely, reliably, and affordably. IPL is a subsidiary of Alliant Energy Corporation, for more information, visit alliantenergy.com or call 1-800-ALLIANT (800-255-4268).
This press release contains forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "plans," ”expected,” or other words of similar import. Similarly, statements that describe future plans or strategies, including IPL’s long-term energy resource plan, are also forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: state or federal regulatory actions or local government actions, including inability to obtain all necessary approvals and permits; unanticipated construction issues, delays or expenditures; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of IPL's plans; failure of equipment and technology to perform as expected; changes to environmental regulations; changes to IPL's access to capital markets; political conditions in IPL's service territories; and economic conditions in IPL's service territory. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and IPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.
Media Contact: Ryan Stensland (319)786-4171; Email: ryanstensland@alliantenergy.com