Power Plant Costs Increase By $100 Million

Power Plant Costs Increase By $100 Million

Sep 09 - The Milwaukee Journal Sentinel

]The cost of a proposed coal-fired power plant in southwestern Wisconsin has risen by $100 million because of rising equipment and labor costs, Alliant Energy Corp. (LNT) said today.

In a filing with securities regulators, Alliant said it now projects that the power plant will cost $1.2 billion to $1.3 billion to build.

This is the second time the price of the project has been increased in the last several months.

Wisconsin Power & Light Co., a subsidiary of Madison-based Alliant Energy, has proposed to build the plant to keep up with rising demand for electricity and to reduce its reliance on power plants fueled by natural gas. The state Public Service Commission has until mid-December to rule on the proposal.

Environmental groups including Clean Wisconsin and Sierra Club have protested the project, saying approving another coal plant in Wisconsin would send the wrong message at a time of growing concern about global warming and emissions of greenhouse gases.

The utility has proposed to offset the carbon dioxide emissions from the plant through a combination of measures including shutting down an aging coal-fired boiler in Sheboygan, burning wood waste and corn stalks in the proposed new plant and expanded use of wind power and energy conservation.

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