The Interstate Power and Light Company, a subsidiary of Alliant Energy, has received a verbal decision from the Iowa Utilities Board concerning its ratemaking principles request for the company’s proposed construction of the 649MW Sutherland generating station Unit-4 in Marshalltown, Iowa.
According to the company, the Iowa Utilities Board (IUB) established a return on equity of 10.1% and a cost cap of $2,816 per kW, excluding allowance for funds used during construction.
The Interstate Power and Light Company (IPL) had requested a return on equity of 12.55% and a cost cap of $3,483 per kW, excluding allowance for funds used during construction.
IPL has proposed to own 350MW of the facility’s output, with the remaining output owned by other partners or included in purchased power agreements.
Tom Aller, president of IPL, said: “We will need to review the IUB’s written order to determine our next steps. However, the conditions placed by the IUB on the proposed hybrid power plant present some challenges in today’s financial climate, and we are disappointed that this decision seemingly does not take that reality into account.
“We will continue to work with our partners to determine how the decision will impact our respective companies’ generation plans.”
