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Iowa Utilities Board issues oral decision affirming Interstate Power and Light Co.'s proposed Duane Arnold Energy Center nuclear Purchase Power Agreement

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).

(Logo: http://photos.prnewswire.com/prnh/20020405/LNTLOGO)

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.

On August 7, 2012, IPL submitted a filing to the IUB seeking approval of the company's proposed DAEC PPA with NextEra. The proposed PPA would take effect in February 2014 which is when the current DAEC PPA expires. Under the proposed DAEC PPA, IPL will purchase 431 megawatts of energy and capacity from NextEra through February 2025.

In October 2012, IPL outlined its proposal to pursue a framework with Iowa electric stakeholders to stabilize retail electric base rates until the Marshalltown Generating Station is placed in-service in 2017. The DAEC PPA is one of the key elements of the proposed rate stabilization framework.

More information about IPL's energy resource strategy is available at www.alliantenergy.com/energyresourceplan.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "expects," "strategy," or other words of similar import. Similarly, statements that describe future plans or strategies are also forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: state or federal regulatory actions or local government actions, including the final details in the written IUB decision; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of IPL's plans. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and IPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.

About Alliant Energy – IPL

Interstate Power and Light Company (IPL), based in Cedar Rapids, Iowa, provides electric service to 525,000 customers and natural gas service to 233,000 customers in more than 700 communities throughout Iowa and southern Minnesota. IPL is committed to providing the energy and exceptional service its customers and communities expect – safely, reliably, and affordably. IPL is a subsidiary of Alliant Energy Corporation, for more information, visit alliantenergy.com or call 1-800-ALLIANT (800-255-4268).

ANR0XX-13

SOURCE Alliant Energy Corporation

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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