Alliant Energy gets final Marshalltown plant permit

Alliant Energy's Interstate Power and Light Co. secured the final permit on Monday from the Iowa Department of Natural Resources for its proposed $700 million, 650-megawatt natural gas-fired plant in Marshalltown.

The company still has a number of steps to complete before it can begin construction.

'It was a great step forward,” said Ryan Stensland, a spokesman for the utility.

Stensland said Alliant Energy hopes to file a notice with the Iowa Utilities Board in the next week or so showing the board it has obtained the necessary local, state and national permits, including air and water permits.

The IUB will then approve or decline to issue an electric generation certificate.

The utilities board conditionally approved the electric generation certificate for the proposed Marshalltown Generating Station in November, which was contingent on the utility obtaining all necessary pre-construction permits.

The order established an overall cost cap of $920 million for the plant's construction as well as necessary transmission and related costs. It also established ratemaking principles for the proposed project and cost recovery factors to be included in a future rate case.

The principles and factors include an 11 percent rate of return on equity and a depreciation lifetime of 35 years for the project during which the company can recover its investment.

Stensland said the company has not signed a contract with a construction company, but has begun looking for a contractor.

'Once we get (the IUB) OK, we will sign a contract,” Stensland said.

Alliant Energy announced plans to build the natural gas fired power plant in August 2012. Previously, it had announced plans to build a coal-fired plant in Marshalltown, but that idea received mixed support from state regulators.

Pending obtaining all regulatory approvals, Interstate Power and Light expects to begin construction this year and begin generating power in 2017.

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