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Interstate Power And Light's Generation Proposal To Lower System-Wide Emissions In 2013

The 630 megawatt SGS4 generating station is a hybrid technology, which will include output from the utilization of coal and agriculturally based products and an additional 19 megawatt equivalent of steam cogeneration available for use by nearby industries.
by Staff Writers
Des Moines IO (SPX) Dec 11, 2007
Interstate Power and Light Company (IPL) has announced that its proposed generation expansion plan will lower the company's system-wide emissions levels in 2013, the scheduled operation date of the proposed SGS Unit 4. IPL's generation plan includes construction of up to 200 megawatts of wind generation and a 350 megawatt ownership share of the proposed Sutherland Generating Station Unit 4 (SGS Unit 4).

In its rebuttal testimony filed with the Iowa Utilities Board (IUB) regarding IPL's request for certification of SGS Unit 4, the company presents evidence that a scenario in which no additions are made to IPL's generating fleet is more costly to customers and creates higher emissions levels in 2013 when compared to IPL's proposed generation expansion plan.

Emissions from electric generation required to serve IPL's customers are reduced on a system- wide basis, because IPL's generation plan reduces the company's reliance on purchased power from neighboring electric utilities and displaces generation from other higher emitting and less efficient generating facilities in IPL's fleet.

The addition of SGS Unit 4 and up to 200 megawatts of wind generation lowers costs for customers and reduces sulfur dioxide (SO2), nitrogen oxide (NOx), and carbon dioxide (CO2) emissions compared to scenarios in which there are no new generating additions. IPL's rebuttal case also demonstrates that the construction of SGS Unit 4 is needed by 2013 to reliably serve IPL's customers.

The addition of SGS Unit 4 and up to 200 megawatts of wind generation and the corresponding displacement of generation from less efficient facilities and reduction of purchased power is equivalent to removing nearly 443,000 metric tons of CO2 from the environment. This reduction in CO2 is equivalent to approximately 100,000 cars not being driven for one year, saving 50 million gallons of gasoline or accumulating electric energy savings equivalent to powering more than 56,000 homes for one year.

"Doing nothing is not a reasonable long-term option for our customers, shareowners, and environment," says Tom Aller, President of IPL. "Our company has an obligation to serve customers and future generations of Iowans with safe and reliable energy service. Our long-term generation plan, which includes the addition of a highly efficient generating station, with hybrid technology, and wind generation, balances the need to meet our consumers' growing demand for energy and enhances economic development opportunities while mitigating its impact upon the environment."

"There are consequences to our economy, environment and customers if we are not proactive in providing long-term generation solutions," adds Mr. Aller. "Our long-term energy generation plan provides a practical solution that combines the utilization of renewables; energy conservation through operating efficiencies and emissions control technologies that will provide our customers with safe, reliable, economical and environmentally responsible energy service and powers Iowa's energy future."

The 630 megawatt SGS4 generating station is a hybrid technology, which will include output from the utilization of coal and agriculturally based products and an additional 19 megawatt equivalent of steam cogeneration available for use by nearby industries. The hybrid technology will support Iowa's growing renewable energy economy by utilizing switch grass, corn stalks or other similar agriculturally based products as fuel, reducing the amount of coal burned at the facility.

The super-critical pulverized boiler technology will maximize operating efficiency, resulting in significant reductions in emissions for each megawatt of energy produced when compared to older boiler technologies that are currently deployed at other generating facilities in Iowa.

In January 2007, IPL announced its Energy for a New Generation plan. The generation plan includes IPL and its partners' addition of SGS Unit 4, which will provide enough energy to power approximately 472,500 homes and businesses when operational.

In November 2007, Central Iowa Power Cooperative (CIPCO) and Corn Belt Power Cooperative (Corn Belt) signed a joint operating agreement regarding the proposed SGS Unit 4. In addition, a potential fourth partner, North Iowa Municipal Electric Cooperative Association (NIMECA) announced its intent to become a joint owner in SGS Unit 4. NIMECA is currently in the process of conducting required public hearings regarding its ownership in SGS Unit 4. SGS Unit 4 will provide energy service to the partners' electric customers located in 94 of Iowa's 99 counties.

IPL expects to utilize approximately 350 megawatts of output, while CIPCO and Corn Belt will each receive 100 megawatts of output. It is expected that NIMECA's output share will be approximately 20 megawatts. IPL continues to negotiate with other potential partners for the remaining output.

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