Impact of new EPA rules on Iowa coal plants to be studied

The state panel that regulates Iowa's largest utilities has launched a look at how new and proposed federal EPA regulations will affect power companies and their customers..

The Iowa Utilities Board launched a notice of inquiry this month asking utilities primarily about the effect of the new regulations on their coal-burning power plants. Most of the state's power comes from turbines powered by steam generated with coal from Wyoming's Powder River basin.

The inquiry says it appears that the regulation may spur significant investments in or retirement of coal-burning power plants, retirement of older coal-burning plants, and conversion of plants from burning coal to natural gas.

Changes could also spur additional need for energy efficiency and demand response programs by the utilities, the inquiry said.

The inquiry is primarily aimed at MidAmerican Energy and Interstate Power & Light, the two state-regulated public electric utilities. Those utilities and other operators of coal-fired power plants were given until Nov. 3 to comment.

The inquiry is also expected to attract comment from industry and environmental groups. Such other participants were given until Dec. 15 to comment.

Legislation proposed in the Iowa General Assembly's last session would have required the board to conduct a study of the potential effect of the new regulations on customer electric rates in Iowa.

That legislation passed the Iowa House, the board said in its Notice of Inquiry, and might be introduced again in at least similar form.

Gov. Terry Branstad appointed Elizabeth Jacobs, a former House Republican leader, to chair the commission effective May 1, and State Sen. Swati Dandekar, D-Marion, to the commission last week. Dandekar was a leading legislative proponent of a MidAmerican Energy-backed bill to reduce the financial risk of constructing a nuclear power plant during the last legislative session. The bill did not pass.

Rob Berntsen, the previous chair, has been appointed vice president of government and regulatory affairs at the Midwest Independent Transmission System Operator in Carmel, Ind.