Washington (Platts)--23Jul2007

Two midwestern utilities told Platts last week that while scrubber
installations will be crucial in complying with the Clean Air Interstate Rule,
they are still planning to rely on burning coal, along with emissions
allowance purchases, while attaining their compliance goals. 

Alliant Energy is on track to meet the CAIR compliance requirements by 2009,
said spokesman Ryan Stensland. An important element of the company's CAIR
compliance plan will be a scrubber project at the Nelson Dewey coal-fired
plant in Cassville, Wisconsin. Alliant has filed a construction application
with the Wisconsin Public Service Commission, he said, adding that the utility
is hoping to bring the scrubber online by 2012, he said. 

Scrubber work aside, Stensland said that the utility has no plans to abandon
its reliance on fuel switching or emissions allowance purchases to meet its
compliance goals under CAIR. 

Alliance owns Iowa's Interstate Power and Light and Wisconsin Power and Light,
both of which have relied on low-sulfur coal and emissions allowances to meet
Acid Rain program requirements, Stensland said. 

Likewise, Ameren spokesman Tim Fox said last week that the company has a CAIR
compliance plan in place, and it is being implemented. Ameren expects to spend
$500 million on pollution control equipment so the utility will meet the CAIR
emissions requirements. Most of the funding will go toward installing
scrubbers at the utility's Sioux plant in St. Charles County, Missouri.

Even with the Sioux plant scrubber, Fox said the utility wants to "maintain
flexibility" in fuel supply. The scrubber installation at the Sioux plant will
allow it to burn both low- and high-sulfur coals. Ameren wants the Sioux
scrubber installed by 2009 so that it can help meet the CAIR requirements. The
plant takes about 3 million short tons/year of coal and burns primarily Powder
River Basin coal (PCT 7/18). 

--Marcin Skomial, marcin_skomial@platts.com

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