Plans cancelled for proposed Sutherland Generating Station Unit 4 hybrid power plant

Partners appreciate broad support for project by Marshalltown community, labor partners, business leaders, political leadership

MARSHALLTOWN, Iowa – March 5, 2009 – Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), cancelled plans to construct the proposed Sutherland Generating Station Unit 4 in Marshalltown, Iowa. The project’s other partners are Central Iowa Power Cooperative (CIPCO), Corn Belt Power Cooperative (Corn Belt) and North Iowa Municipal Electric Cooperative Association (NIMECA). 

The decision to cancel the project is based on a combination of factors including the current economic and financial climate, increasing environmental, legislative and regulatory uncertainty regarding regulation of future greenhouse gas emissions and the terms placed on the proposed power plant by regulators.

“Our company and our partners appreciate the tremendous support demonstrated for this project by our labor partners, industry, agriculture and business leaders, the community of Marshalltown and economic development organizations across the state," says Tom Aller, president-IPL. “While our company is disappointed in this missed opportunity to further Iowa’s efforts to grow its economy and position our state as a leader in renewable energy, we will continue to focus our efforts on expanding our renewable energy resources and energy efficiency initiatives and reducing our environmental impact.

Our company still has an obligation to serve customers with safe, reliable and environmentally responsible energy at a reasonable cost. We will continue developing new energy resources, such as our construction of the Whispering Willow wind farm, which is expected to be in service by 2010, as well as investing in our existing power plants to enhance their production while reducing their impact on the environment. In addition, over the next six to twelve months, our company will evaluate its energy supply options as we prepare to meet the energy needs of future generations of Iowans.”

“Today’s decision is not in the best interest of our cooperative or our state, but it is the hand we were dealt,” said Dennis Murdock, CIPCO Executive Vice President and CEO. “CIPCO was committed to the Sutherland project as a solution to providing an affordable and reliable supply of electricity with a renewable component. While the economic slowdown has dampened short-term forecasts for energy growth, we still have a need for baseload electric generation to serve our members. We will continue to pursue other opportunities to meet the growing needs of our members to foster economic growth and job creation.”

Ken Kuyper, executive vice president and general manager, Corn Belt Power Cooperative, states, “It’s regrettable that this plant won’t be built. This new source of generation was an important part of our plan for meeting the growing demand for electricity from the people of rural Iowa. Corn Belt Power will work to determine the next best alternative to the Sutherland plant. We will continue to do everything we can to meet our co-op members’ need for reliable and affordable power.”

“Our members are disappointed that the project will not be moving forward,” said Greg Fritz, NIMECA CEO. “When combined with our existing hydro, wind, and coal resources this hybrid plant would have provided the energy necessary for continued economic development and growth in our member communities. We will be exploring other opportunities to provide our members with the energy necessary for their communities to grow and prosper.”

1. Greenhouse gas emission and associted global warming and ocean acidification.
2. Sulfer dioxide (SOX) and nitrogen oxides (NOX)
3. Volatile organic compounds (VOC)
   
4. Heavy metals emmisions:  organified mercury, arsenic, lead, cadmium
5. Fine particulate mattter:  PM2.5
6. Coal ash spills
   

Iowa DNR News
Environmental Services Division

For immediate release February 27, 2009

MEDIA CONTACT:
Chris Roling, Construction Permits, (515) 242-6002 or Chris.Roling@dnr.iowa.gov

Public Comment Period Extended for IPL’s Marshalltown facility

Urbandale – Due to extensive interest, the public comment period for the draft air quality construction permits for the coal-fired power plant proposed by Interstate Power and Light for its Marshalltown facility—Sutherland Generating Station—has been extended to May 18. Public hearings will also be held in five additional cities.

Currently scheduled are four public hearings (two each at two locations):
March 16, 2:30 p.m. – 5 p.m., Iowa Veterans’ Home, Whitehill Chapel, 1501 Summit Street Marshalltown
March 16, 6:30 p.m. – 9 p.m., Iowa Veterans’ Home, Marshalltown
March 17, 3 p.m. – 5 p.m., Meskwaki Tribal Center, 346 Meskwaki Road, Tama
March 17, 7 p.m. – 9 p.m., Meskwaki Tribal Center, Tama

Due to the many comments received from particular areas of the state, additional public hearings have been scheduled in Council Bluffs, Davenport, Des Moines, Iowa City and the Waterloo/Cedar Falls area. Specific times and sites have not been determined at this point, but the hearings will likely be held in early May. As soon as that information is available it will be released to the public.

The public hearings are for the purpose of accepting comments only. Comments at the public hearings will be limited to five minutes. Presentations shall include a hard copy for inclusion into public record.
Comments may also be submitted in writing before 4:30 p.m., May 18, to Chris Roling, Air Quality Bureau, Iowa Department of Natural Resources, 7900 Hickman Road Ste 1, Urbandale, IA 50322 or emailed to chris.roling@dnr.iowa.gov.

All documents for this project are available on the DNR Air Quality Bureau’s Web site at http://aq48.dnraq.state.ia.us:8080/airpermit/eecomment.jsp
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Written by Mindy Kralicek

Community Energy Solutions
Environment Iowa
Iowa Environmental Council
Iowa Global Warming
Iowa Interfaith Power & Light
Physicians for Social Responsibility, Iowa Chapter
Plains Justice
RE-AMP Global Warming Strategic Action Fund
Sierra Club, Iowa Chapter