Iowa Utilities Board issues oral decision affirming Interstate Power and Light
Co.'s proposed Duane Arnold Energy Center nuclear Purchase Power Agreement
DES MOINES, Iowa, Jan. 23, 2013
DES MOINES, Iowa, Jan. 23, 2013 /PRNewswire/ -- The Iowa Utilities Board (IUB)
voted today to allow Interstate Power and Light Company's (IPL), a subsidiary
of Alliant Energy Corporation, (NYSE: LNT), to move forward with its proposed
Purchase Power Agreement (PPA) related to the Duane Arnold Energy Center
In its oral decision, the IUB determined that IPL's proposed DAEC PPA with
NextEra Energy Duane Arnold LLC (NextEra) was reasonable. The IUB also
authorized IPL to recover costs of the new DAEC PPA through the Energy
Adjustment Clause (EAC) when the new contract becomes effective on February
"The IUB's decision affirms IPL's position that the DAEC PPA is in the
long-term best interests of our customers and IPL," says Tom Aller, President
of IPL. "As we move forward, the DAEC PPA will be a key part of IPL's
long-term energy resources strategy. This plan positions IPL to continue
providing our customers with a balanced supply of energy resources while
delivering safe and reliable energy service at a competitive cost. The nuclear
output from DAEC is a key component to that overall balanced supply strategy."
The IUB has instructed its staff to draft a written order consistent with the
oral decision issued today. The written order is expected to be issued on or
before February 4, 2013.
"We look forward to reviewing the IUB's written order to assess the details of
the decision," adds Mr. Aller. "IPL appreciates the IUB's diligent review of
all of the evidence provided by the parties in this proceeding."
On August 2, 2012, IPL announced its long-term energy resources strategy,
which includes plans to:
oRenew the DAEC nuclear PPA
oRetrofit larger, existing coal-fired generating stations to reduce
emissions and increase efficiency
oRetire older and less efficient coal-fired generating stations
oConstruct the combined-cycle, natural gas-fired Marshalltown Generating
oContinue a commitment to renewable resources and energy efficiency.
On August 7, 2012, IPL submitted a filing to the IUB seeking approval of the
company's proposed DAEC PPA with NextEra. The proposed PPA would take effect
in February 2014 which is when the current DAEC PPA expires. Under the
proposed DAEC PPA, IPL will purchase 431 megawatts of energy and capacity from
NextEra through February 2025.
In October 2012, IPL outlined its proposal to pursue a framework with Iowa
electric stakeholders to stabilize retail electric base rates until the
Marshalltown Generating Station is placed in-service in 2017. The DAEC PPA is
one of the key elements of the proposed rate stabilization framework.
More information about IPL's energy resource strategy is available at
This press release contains forward-looking statements. These forward-looking
statements can be identified as such because the statements include words such
as "expects," "strategy," or other words of similar import. Similarly,
statements that describe future plans or strategies 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 the final
details in the written IUB decision; current or future litigation, regulatory
investigations, proceedings or inquiries that could impede the implementation
of IPL's plans. 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.
About Alliant Energy – IPL
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).
SOURCE Alliant Energy Corporation
Contact: Media, Ryan Stensland, +1-319-786-4040,
email@example.com; Investors, Susan Gille, +1-608-458-3956,
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