Sixth Street Generating Station large steam customers choose alternate options for long-term steam service
Alliant Energy to continue providing temporary steam service to help with transition
Interstate Power and Light Company (IPL), a wholly-owned subsidiary of Alliant Energy Corporation (NYSE: LNT), did not secure the long-term customer contracts necessary in order to make the investment required to rebuild its Sixth Street Generating Station. The plant, which was severely damaged in the June 2008 flood, has provided both electricity and steam generation to its steam customers in the downtown Cedar Rapids area for more than 100 years.
Soon after the flood, the company made necessary repairs to the underground steam system and brought in temporary natural gas-fired package boilers to provide heat and steam for its customers in time for the current winter season. Once assessments of the damaged plant were complete and rebuild options evaluated, Alliant Energy met with steam customers in September and outlined their commitment to rebuild Sixth Street Generating Station subject to the securing of long-term customer contracts.
”We provided our customers with an option to consider for their future steam power,” said Tom Aller, President – IPL. “The damage to our Sixth Street plant was extensive and would require a significant financial investment to repair. Because our large, high-pressure steam customers use the bulk of the steam generated from our Sixth Street plant, we needed a long-term commitment from the majority of them to make the rebuild of the steam system a viable option for all the customers on the system. We recognize that this was a difficult decision and we respect our customers for taking the time to consider options.”
IPL plans to continue to use the temporary natural gas-fired package boilers at its Sixth Street site in order to provide steam to its customers and intends to do so as customers move to alternative systems. The company plans to work closely with steam customers as they transition to alternate steam and heat source methods.
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