Natural gas power plant appearing more likely for Interstate Power

Interstate Power and Light Co.'s tentative plan to build a $700 million natural gas combined cycle power plant is looking less and less tentative.

Alliant Energy terminated plans to build a $1.5 billion coal-burning power plant in Marshalltown in January 2010. The project had been approved by the Iowa Utilities Board, but with some big strings attached, including requirements for major investments in renewable energy.

The Cedar Rapids-based utility division of Alliant Energy has indicated it's unlikely to renew its agreement to purchase much of its power from the Duane Arnold Energy Center, a nuclear plant near Palo, when a power purchase agreement with NextEra Energy expires in February 2014.

Interstate Power and Light is conducting due diligence and planning a 600-megawatt power plant, Chairman William Harvey told analysts earlier this month.

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