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Utility Says Sale of Nuclear Plant Will Benefit Customers

Posted on: Thursday, 13 October 2005, 21:00 CDT

By George C. Ford, The Gazette, Cedar Rapids, Iowa

Oct. 11--PALO -- The majority owner of Iowa's only nuclear power plant, near Palo, says the proposed sale of the plant will mean $56 million in estimated benefits for its customers.

Cedar Rapids-based Interstate Power and Light Co. on Monday said it will file the company's rebuttal case with the Iowa Utilities Board concerning the sale of the Duane Arnold Energy Center to FPL Energy LLC, a subsidiary of FPL Group Inc.

The Iowa Office of Consumer Advocate on Sept. 28 asked the Iowa Utilities Board to reject the sale of the nuclear power plant to FPL Energy. The consumer advocate contends the sale could cost Alliant customers $350 million to $700 million more than Alliant's continued ownership of the plant over the next 29 years.

Interstate Power says its Iowa customers will save $56 million as a result of the sale. That includes $33 million in projected net proceeds and $23 million in lower customer rates over the next nine years.

The utility, a subsidiary of Alliant Energy Corp. of Madison, Wis., contends the sale provides customers with energy and capacity from the plant through 2014 at a lower cost than what they would see if Interstate Power continued to own it.

Interstate Power also contends that selling the plant to FPL Energy will reduce customer risk in several areas:

--Exposure to future operating costs from unplanned outages and capital expenditures.

--Uncertainty associated with the total decommissioning costs of the nuclear power plant by 2014.

--Costs related to the storing of spent nuclear fuel rods.

Interstate Power said customer benefits will be determined at the time the sale is completed.

The utility hopes to close the sale in the first three months of next year.

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Copyright (c) 2005, The Gazette, Cedar Rapids, Iowa

Distributed by Knight Ridder/Tribune Business News.

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LNT, FPL,

Source: The Gazette - Cedar Rapids, Iowa

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