Dec 5 - McClatchy-Tribune Regional News - Dave DeWitte The Gazette, Cedar
Rapids, Iowa
The rate impact of Alliant Energy's planned coal-burning power plant in
Marshalltown on consumers will soon be decided.
A hearing on the rate-setting principles for the Sutherland Unit 4 was
winding down Thursday after four days of testimony and cross-examination of
witnesses before the Iowa Utilities Board.
The plant is only the second new base-load coal plant proposed to the state
in recent years. It has generated at least as much opposition as MidAmerican
Energy's larger Walter Scott Jr. Energy Center Unit 4 plant, which began
production last year.
The effect of the plant's air emissions on climate change was a primary
issue for opponents at the initial state hearing that led to the approval of
the plant with extensive conditions. The conditions include substantial
investments by Alliant in additional wind energy generation, and the
mandatory use of biomass to provide part of the plant's fuel.
At this week's hearing, plant opponents continued to oppose its
construction, even though the main topic of the hearing was Alliant's
request for a 12.55 percent rate of return on its investment.
Intervenors in the case, including Iowa's Office of Consumer Advocate,
argued for a lower rate of return. They also have argued that the utility
should bear most of the financial risk of complying with any future federal
regulations on emissions of carbon dioxide.
"Iowans could pay 22 percent more for household electricity than they do
now," said Tom Sanzillo, a former deputy controller for New York who
testified for Plains Justice, a Mount Vernon-based legal advocacy non-profit
focusing on environmental matters.
The group said the price increase would come on top of Alliant's previously
announced plans to seek a separate 6 percent to 10 percent rate increase in
early 2009.
-- Contact the writer: (319) 398-8317 or
david.dewitte@gazcomm.com
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