Iowa Generation for Iowans: Spencer Municipal Utilities moves to join in ownership of proposed Sutherland Generating Station Unit 4

Municipal joins rural electric cooperatives, IPL and other municipals in Iowa generation project

North Iowa Municipal Electric Cooperative Association (NIMECA) announced today that Spencer Municipal Utilities has successfully completed its required public hearing approving its joint ownership in Interstate Power and Light Company (IPL)’s proposed Sutherland Generating Station Unit 4, located in Marshalltown, Iowa. The municipal board also unanimously passed a resolution of support for the project.

“Ownership in Sutherland Generating Station Unit 4 makes sense for our customers,” says Leon Rodas, Spencer Municipal Utilities General Manager. “Combined with our diverse portfolio of energy, which includes a significant amount of renewable energy sources, the proposed generating station expands our ability to provide reliable and affordable energy to our customers. The facility will be highly efficient; mitigating the amount of emissions produced. Also, the generating station will utilize renewables, such as switch grass and corn stalks, as a fuel source, which further reduces the amount of coal used. As a result, this plant balances the need to meet growing demand while use the next generation of technology to protect our environment.”

“NIMECA’s members are seeking opportunities to invest in energy generating sources that meet demand and minimize the impact upon our environment,” states James Milam, Executive Vice President of NIMECA. “Sutherland Generating Station Unit 4 provides this opportunity for our members and we are proud to partner with IPL, Corn Belt Power Cooperative and Central Iowa Power Cooperative in providing Iowa generation for Iowans. This project is critical for our members as they seek to reduce their exposure to volatile power markets that could create cost and energy supply uncertainties for their customers.”

“Sutherland Generating Station Unit 4’s partners share a common goal,” explains Tom Aller, President of IPL. “We are each concerned about ensuring a safe, reliable and affordable energy supply for our customers. Despite our success in promoting energy efficiency solutions for our customers, demand for energy continues to grow. While our company is committed to helping our customers conserve energy, we recognize that baseload energy is necessary to growing Iowa’s economy and creating jobs. Our company’s generation plan balances the use of renewables, practice of energy conservation and addition of reliable energy sources. Combined, this approach can grow our economy while meeting and exceeding our environmental responsibilities.”

It is expected that NIMECA’s members’ overall output share will be approximately 20 megawatts. IPL expects to utilize approximately 350 megawatts of output, while Central Iowa Power Cooperative and Corn Belt Power Cooperative will each receive 100 megawatts. IPL continues to negotiate with other potential partners for the remaining share. Sutherland Generating Station Unit 4 will provide energy service to the partners’ electric customers located in 94 of Iowa’s 99 counties.

Under the terms of the joint operating agreement, the partners will each utilize a share of the 630 megawatt generating station, which is expected to be operable in 2013. The facility will be designed with hybrid technology, which utilizes switch grass, corn stalks or other similar agriculturally based products as fuel. This reduces the amount of coal burned at the facility. An additional 19 megawatt equivalent of steam cogeneration will be available for use by nearby industries. The addition of Sutherland Generating Station Unit 4 and up to 200 megawatts of wind generation is expected to lower IPL’s system-wide emissions levels, including sulfur dioxide (SO2), nitrogen oxide (NOx) and carbon dioxide (CO2), in 2013. 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.