Alliant Energy says infrastructure needed for new wind generation

Alliant Energy, which has wind generation capacity to supply electricity to 300,000 homes, does not plan to add any new wind turbines until electric power transmission constraints are resolved.

Patricia Kampling, Alliant Energy chairwoman, president and CEO, told shareholders attending the company's annual meeting Thursday in Cedar Rapids that the electric power transmission grid in 13 Midwestern states needs to catch up with the wind farms already in operation.

"We're working right now to get transmission constraints alleviated at Franklin County, our last wind farm," Kampling said. "Our wind farms are operating extraordinarily well as we get these transmission constraints relieved.

"We will stop and see what our portfolio looks like at that point."

Kampling's comments came a day after MidAmerican Energy announced plans to add 656 wind turbines that will generate up to 1,050 megawatts of power in Iowa by the end of 2015. The $1.9 billion project represents the largest economic development investment in state history.

"MidAmerican Energy has a different generation portfolio than we do," Kampling said. "We added wind generation back in 2007 and they are adding wind now. We are planning to add natural gas."

Alliant Energy's Interstate Power and Light subsidiary is seeking Iowa Utilities Board approval to construct a $700 million, 600-megawatt natural gas-fired combined cycle generation plant in Marshalltown. The utility and the Iowa Office of Consumer Advocate (OCA) recently announced a settlement regarding rate-making principles for the new plant.

Tom Aller, president of IP&L, said the concerns of four other organizations seeking to intervene will be heard by the IUB at a hearing later this month.

"We will continue to have discussions with some of our larger customers and the other organizations such as the Iowa Consumer Coalition," Aller said. "Whether we get anywhere with them before the hearing is probably problematic.

"I think the agreement with the OCA sent a very clear signal that the proposal we have put forward is in the best interest of all of our customers. It's one of a few times in my experience that we've reach agreement with the OCA on a major project without litigating it."

Kampling said Alliant Energy and IP&L expect to receive approval from the IUB by the end of the year for the Marshalltown generating station. She said the plant is expected to go online in 2017.

As it prepares for the new generating station, Alliant Energy is moving forward with plans to demolish the former Sixth Street Generating Station in Cedar Rapids that was significantly damaged by the June 2008 flood.

"We have removed all of the asbestos from the plant, which was our first priority," Kampling said. "Because the plant was more than 100 years old, we're being very patient with the environmental studies that we're doing on it.

"We have some consultants working with us to advise what to do next. We can't take it down very quickly because of the constraints on the property."

Aller said IP&L has invested $30 million in the construction of two new electric substations near Quaker Oats and the former Farmstead meatpacking plant property in the aftermath of the 2008 flood.

"When we saw what happened to power coming into the community, we worked very closely with ITC Midwest to create a loop system around Cedar Rapids," Aller said. "If the flood ever happens again, Cedar Rapids is so much better prepared than it was in 2008."