DES MOINES, Iowa, Jan. 23, 2013 /PRNewswire/ -- The Iowa Utilities Board (IUB) voted today to allow Interstate Power and Light Company's (IPL), a subsidiary of Alliant Energy Corporation, (NYSE: LNT), to move forward with its proposed Purchase Power Agreement (PPA) related to the Duane Arnold Energy Center (DAEC).
In its oral decision, the IUB determined that IPL's proposed DAEC PPA with NextEra Energy Duane Arnold LLC (NextEra) was reasonable. The IUB also authorized IPL to recover costs of the new DAEC PPA through the Energy Adjustment Clause (EAC) when the new contract becomes effective on February 22, 2014.
"The IUB's decision affirms IPL's position that the DAEC PPA is in the long-term best interests of our customers and IPL," says Tom Aller, President of IPL. "As we move forward, the DAEC PPA will be a key part of IPL's long-term energy resources strategy. This plan positions IPL to continue providing our customers with a balanced supply of energy resources while delivering safe and reliable energy service at a competitive cost. The nuclear output from DAEC is a key component to that overall balanced supply strategy."The IUB has instructed its staff to draft a written order consistent with the oral decision issued today. The written order is expected to be issued on or before February 4, 2013. "We look forward to reviewing the IUB's written order to assess the details of the decision," adds Mr. Aller. "IPL appreciates the IUB's diligent review of all of the evidence provided by the parties in this proceeding." On August 2, 2012, IPL announced its long-term energy resources strategy, which includes plans to:
- Renew the DAEC nuclear PPA
- Retrofit larger, existing coal-fired generating stations to reduce emissions and increase efficiency
- Retire older and less efficient coal-fired generating stations
- Construct the combined-cycle, natural gas-fired Marshalltown Generating Station
- Continue a commitment to renewable resources and energy efficiency.