IUB approves Marshalltown coal plant
The Iowa Utilities Board (IUB) voted 2-1 to conditionally approve an application by Interstate Power & Light Company (IPL) to construct a 630-MW coal-fired power plant in Marshalltown, Iowa.
"We are disappointed that the Iowa Utilities Board and Alliant Energy are moving Iowa's energy policy backwards with a dirty coal plant," said Nathaniel Baer, energy program director for the Iowa Environmental Council. "This coal plant is simply the wrong choice for Iowa's economy and our environment. When other states are saying no to coal plants, Iowa is risking its future as a renewable energy leader by betting on this imported and outdated energy source."
Clean air advocates say mercury, carbon and other air pollutants still don't have to be Iowa's legacy as today's IUB decision is only a first step in a decision-making process over this proposal, which includes additional decisions by the Board and by the Iowa Department of Natural Resources.
The Iowa Environmental Council, Community Energy Solutions, Iowa Chapter of Physicians for Social Responsibility, Iowa Farmers Union and Iowa Renewable Energy Association (I-Renew) were represented by the public interest law firm Plains Justice in a proceeding at the IUB regarding approval of the proposal. In briefs and in testimony before the IUB, Plains Justice maintained that clean energy sources like wind and energy efficiency could meet the energy needs of Iowa consumers at a lower cost, and with considerably less environmental impact, than the proposed coal plant.
The IUB approval was conditional:
- The coal plant must co-fire five percent biomass within the first two years of the plant's operation, and 10 percent biomass must be co-fired by the fifth year of operation.
- Alliant's energy mix must include 10 percent renewable energy by 2013 and increase one percent each year for the following 15 years, to reach a total renewable energy portfolio of 25 percent by 2028.
- The Iowa Utilities Board will have authority to require Alliant to install carbon capture and sequestration technology at the plant when it becomes feasible.
"Despite the final decision, we appreciate the Board's thorough consideration of the many risks that this proposal brings," said Baer. "The Board's three conditions for use of biomass, renewable energy, and future carbon capture technology may help to offset some of these significant risks, but we'll need to look at these conditions in more detail."
"We're reviewing this decision very carefully before deciding whether to proceed with an appeal," said attorney Carrie La Seur, president of Plains Justice. "We are pleased with the Board's recognition of its obligation to act to reduce greenhouse gas emissions and to support the growth of our local renewable energy industry. The Board's decision also clearly recognizes the importance of shielding Iowa's electric consumers from the financial risks of new coal-fired generation. However, we remain concerned with the negative environmental impacts of this plant, and it is far from clear that this ruling will do anything to meaningfully reduce the greenhouse gas emissions that all the Board members identified as a problem."
In March 2008, IPL filed an application for ratemaking principles for the proposed Marshalltown coal plant, which will determine the rate of return IPL will be able to seek from Iowa consumers for the power generated at the facility.
The ratemaking principles approved by the Board will play a decisive factor in IPL's final determination of whether or not to proceed with the Marshalltown plant. Many of the conditions placed on the proposed facility by the Board in today's vote — including the co-firing of biomass and increasing the renewable energy content of the IPL portfolio — will be enforced through financial penalties that will receive more detailed scrutiny by parties in the ratemaking proceedings.
Community Energy Solutions, Iowa Environmental Council, Iowa Farmers Union, Iowa Physicians for Social Responsibility and Iowa Renewable Energy Association (I-Renew) have petitioned to intervene in the ratemaking proceedings, where they will be represented by attorneys from Plains Justice.