• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Nuclear Plant Purchase Complete

Posted on: Tuesday, 31 January 2006, 00:00 CST

By Dave Dewitte, The Gazette, Cedar Rapids, Iowa

Jan. 28--PALO -- A Florida company has completed its purchase of Alliant Energy's majority stake in the Duane Arnold Energy Center, paving the way for it to seek a 20-year extension of the plant's license and increase employment.

FPL Energy Duane Arnold, a division of Vero Beach, Fla.-based FPL Energy, took over Friday as operator and majority owner of the 595-megawatt nuclear plant north of Palo.

The $373 million price is about $15 million less than indicated earlier. The lower price reflects final adjustments for items such as inventory and depreciation allowed for in the sale agreement.

While Alliant is a regulated utility, FPL is a wholesale power producer that generates power for sale to utilities. Alliant has an agreement with FPL to continue buying its allotment of the plant's output through 2014 at annual cost increases that will not exceed the cost increases under its own ownership.

FPL operates five nuclear units at three East Coast locations. Duane Arnold Energy Center is its first with a boiling water reactor.

"The focus of the plant has always been and is going to remain the safe and reliable operation of the facility," FPL Manager of Corporate Communications Steve Stengel said.

Stengel said FPL will gradually integrate the plant into its fleet and will increase staffing by a modest amount.

The sale was announced to many of the plant's 500 employees at a meeting Friday afternoon, according to Duane Arnold Communications Manager Renee Nelson. New signs will go up at the plant early next week.

Nelson said the news of the sale was well received because it will ensure the continued operation and improvement of the plant.

"It's a nice way to start the weekend," Nelson said. "This has been a long time in coming, and it's nice to finally see it come to fruition."

Alliant did not plan to renew the plant's operating license when it expires in 2014. It decided a year ago to seek a buyer that would relicense the plant and continue to provide power.

Tom Aller, president of Alliant's Interstate Power & Light subsidiary, oversaw the sale process.

Alliant spokesman Ryan Stensland said the sale satisfied Alliant's objectives to achieve a "seamless" transition that would not be disruptive to customers, and to secure a new owner that would maintain the plant's "reservoir of goodwill" with the community.

While Alliant was majority owner of the plant, it had been operated by Nuclear Management Co., a Wisconsin-based nuclear management consortium. Alliant's relationship with NMC dissolved with the sale, Stensland said.

Central Iowa Power Cooperative owns 20 percent of the plant. Corn Belt Power Cooperative owns 10 percent.

-----

To see more of The Gazette, or to subscribe to the newspaper, go to http://www.gazetteonline.com.

Copyright (c) 2006, The Gazette, Cedar Rapids, Iowa

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

LNT, FPL,

Source: The Gazette - Cedar Rapids, Iowa

More News in this Category