Fate of Alliant plant nears: Decision on facility could come next year amid opposition

Dec 21, 2007 (Milwaukee Journal Sentinel - McClatchy-Tribune Information Services via COMTEX) -- LNT | charts | news | PowerRating -- The fight over whether Alliant Energy Corp. can build a coal-fired power plant in southwestern Wisconsin will gear up now that state energy regulators have said they will decide the fate of the plant by late next year.

The Madison utility holding company said its Wisconsin Power & Light Co. subsidiary wants to have the power plant built by late 2013 to meet growing demand for electricity by its customers.

But environmental groups want the Public Service Commission to reject the utility's $850 million to $900 million plan because it would add more emissions to the air. Coal plants release more carbon dioxide than any other form of power generation.

Alliant said the plant would help meet the power needs of 300,000 homes.

The plant would burn both coal and renewable biomass, such as switchgrass, corn stalks and wood chips.

But 90% of the plant's power production is expected to come from coal, and for that reason the facility will be opposed by conservation groups. That opposition is hardening as Wisconsin and other states move to reduce emissions of carbon dioxide and other greenhouse gases.

"Given Gov. Doyle's intention to address global warming in Wisconsin -- as evidenced by his leadership in the Midwest Governor's Energy Summit held last month -- this is the worst time to propose a coal plant with this kind of global warming emissions profile," said Mark Redsten, Clean Wisconsin executive director.

Alliant spokesman Rob Crain said the company's commitment to energy efficiency, construction of wind farms and use of renewable biomass in this plant help address concerns about global warming. The coal plant is still needed to address reliability concerns, he said.

"The environment's a concern for us, but our customers are a concern, and reliability is a concern," Crain said. "We have a lot of different things at work here, and we feel this is the most appropriate choice to meet demand in a responsible and reliable way."

Meanwhile, Alliant said Thursday its board of directors has approved a plan to boost the company's dividend in 2008 to $1.40 per share from $1.27 per share.

The company also reaffirmed its earnings outlook for 2007 at $2.52 to $2.57 per share, and announced that earnings in 2008 would rise to between $2.55 and $2.75 per share.

The 2008 outlook incorporates the impact of selling the company's Iowa transmission line network to Michigan-based ITC Holdings Corp., but the 2007 outlook does not. That $750 million deal is expected to be finalized by the end of the month, after regulators in Minnesota approved the deal this week.

Alliant's shares closed Thursday at $42.55, up 40 cents.

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