Wisconsin Power and Light receives Public Service Commission of Wisconsin approval to purchase Neenah Generating Facility
Purchase will replace output obtained from purchased power agreement with RockGen Facility
Wisconsin Power and Light Company (WPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), has received approval from the Public Service Commission of Wisconsin to purchase the Neenah Generating Facility, an existing 300 megawatt, simple cycle, natural gas-fired electric generating facility located in the Town of Neenah, Wisconsin. This purchase is intended to replace the output currently obtained under a purchased power agreement (PPA) with Calpine’s RockGen Facility.
“This purchase represents the lowest-cost option to meet our customers’ long-term peaking power needs,” said Barbara Swan, President of WPL. “Demand continues to increase throughout our WPL service territory, and having the ability to meet that demand in a cost-effective manner is crucial.”
Peaking power units are traditionally gas-fired combustion turbines that are utilized to meet customer’s needs for electricity on hot summer days when demand is highest. This type of combustion turbine can be started and shut down more quickly than coal-based units, thus affording more flexibility and making this an excellent resource for responding to peak demands. The natural gas unit would further broaden WPL’s existing fuel mix.
The Neenah Generating Facility is currently owned by Alliant Energy Resources (AER), a non-regulated affiliate of WPL, and began commercial operation in 2000. WPL needs approval from the Federal Energy Regulatory Commission. WPL plans to purchase the facility, pending federal regulatory approval, for the net book value of the plant, which is expected to be approximately $95 million. The purchase is expected to occur in June, 2009 upon the expiration of the RockGen PPA.
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