Marshalltown Coal Plant Could Cause Significant Increase in Rates

From Plains Justice...

An independent financial expert testifying for a coalition of Iowa clean energy, environment, farm and public health organizations says that Alliant Energy's proposed Marshalltown coal plant will be the most expensive in the country and gouge ratepayers for decades to come.

Soon, the Iowa Utilities Board will determine the rates that Alliant subsidiary Interstate Power and Light (IPL) can earn on its proposed Sutherland 4 power plant in Marshalltown. According to Thomas Sanzillo, IPL hasn't addressed four major risks sufficiently: the cost of construction, weak demand, likely regulation of greenhouse gases in the near future, and the rising price of coal.

"The company has decided to place the risk for this plant squarely on the ratepayers. This is costly for Iowans, and in the long-term risky for shareholders," Sanzillo said. He is a former First Deputy Comptroller for New York State who has reviewed the management and operation of the New York Power Authority and the Long Island Power Authority and supervised New York State's $150 billion public investment fund.

"IPL's plan could double the cost of electricity consumers pay to keep the Marshalltown plant solvent." Sanzillo said. "This does not mean the monthly household bill doubles. It does mean a stiff monthly increase. This is not the time to build a coal plant. There are just too many risks and the plant is not needed."