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Alliant May Build $700 Million Gas-Fired Plant in Iowa

Alliant Energy Corp. may build a $700 million natural-gas fired power project in Iowa by 2016 as the company allows contracts to buy electricity from nuclear plants to expire.

Alliant won’t renew nuclear-power purchase agreements with Dominion Resources Inc. and NextEra Energy Inc. that expire in 2013 and 2014, respectively, Ryan Stensland, a spokesman for Madison, Wisconsin-based Alliant, said in a telephone interview today. Alliant currently has power purchasing agreements with Dominion’s Kewaunee and NextEra’s Duane Arnold nuclear plants.

“The only uncertainty with building the plant is whether we can get a better deal for our customers through other means,” Stensland said. A final decision on the Iowa power plant is expected by the middle of the second quarter, said Stensland.

Alliant is seeking bids by March 22 for outside power supplies.

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