Alliant plans $650 million power upgrade 
10:14 PM 12/17/03 
Judy Newman Business reporter 

Alliant Energy Corp. plans $650 million worth of additional power generation
by 2010 in the four states it serves and a new natural-gas-fired plant in
Wisconsin is one of the first items on the agenda. < 

But the company is no longer considering building coal-fired plants in
Wisconsin or Iowa. "Our analysis shows that we're not going to need as much
baseload (power) in Iowa as we thought, or in Wisconsin," said Alliant
spokesman Chris Schoenherr. < 

Baseload power is available for regular daily needs and is supplied in
Wisconsin primarily by coal-fired and nuclear power plants. Plants fueled by
natural gas, which has a much more volatile price, are generally used when
electricity demand rises. < 

Alliant outlined a proposal Wednesday for meeting its electricity needs over
the coming years. The plan would add 1,600 megawatts of power for the
Madison utility holding company's 1.4 million customers in Wisconsin, Iowa,
Illinois and Minnesota. < 

Wisconsin would be in line for 615 megawatts, or just over one-third of the
total. Of that amount, 300 megawatts would come through construction of a
natural gas-fueled power plant. No site has been chosen but Schoenherr said
a location is expected to be announced within the next 12 months. < 

"We're open to all sites right now," he said. An Alliant subsidiary would
build and own the plant, and lease the power back to the utility. < 

In addition to the natural-gas-fired plant, Alliant's Wisconsin plans are: <


100 megawatts of wind generation to be purchased under contract. < 

15 megawatts of anaerobic digesters, or generators that produce electricity
from animal waste. < 

A 200-megawatt share of a coal-fired power plant, to be built by or with
another utility company, in later years of the plan. < 

Alliant also has options to buy the RockGen power plant in eastern Dane
County and the Riverside power plant, under construction in Beloit. But no
decisions are expected for several years, Schoenherr said. < 

Alliant plans some emission reduction projects on its existing power plant
fleet, as well, and will likely close some of its older, less-efficient
plants during the later years of the plan, he said. < 

The Citizens' Utility Board questioned the need for new power plants, saying
that without a comprehensive, state electricity plan, "no one knows how much
power is needed, where, or when." < 

CUB executive director Charlie Higley also said the financing system will
lead to higher rates for energy consumers. < 

Schoenherr said while new generation will cost more, it will also be more
energy efficient, and it will reduce some of Alliant's costs for buying
power from other companies. < 

  
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