The U.S. Department of Energy announced that Alliant Energy could get a $5.1 billion loan to invest in new natural gas plants, gas pipelines or battery storage systems across Iowa and Wisconsin.
“The investments will add more than 2.6 gigawatts of new or upgraded power generation capacity and deliver up to $1.2 billion in electricity cost savings for American families and businesses across both states,” Alliant spokesperson Taylor Adams wrote in an email.
Alliant estimates most of those savings — roughly $800 million — would be for Iowans.
Adams said the loan could help projects like the Bobcat Energy Center, a new 720-megawatt natural gas plant in Marshalltown, and the Lansing Battery Energy Storage System, a lithium-ion battery storage system at the decommissioned Lansing Generating Station site. Additional projects could be included, too.
“Examples include new natural gas generation, Advanced Gas Path projects, gas pipelines and battery energy storage systems,” Adams wrote.
Meanwhile, Linn County is trying to stop plans for an Alliant natural gas plant near Cedar Rapids.
The federal loan announcement came the same day Linn County supervisors sent a request to the Iowa Utilities Commission to deny a generating certificate for Alliant’s proposed Morgan Valley Energy Center.
Linn County supervisors had previously unanimously denied the rezoning request that would have allowed for the 720-megawatt natural gas plant. Supervisors said they're concerned for ratepayers, worried about air quality and convinced the plant doesn’t fit the county’s comprehensive plan.
“With prevailing winds carrying emissions towards Cedar Rapids, we must consider the potential consequences for public health,” said Supervisors Chair Kirsten Running-Marquardt. “This is not a fair balance between economic development and the well-being of our community, especially when Alliant already has some of the highest utility rates in the area, and our county faces some serious concerns about asthma and cancer rates.”
Supervisor Sami Scheetz voted against the rezoning, but said he had trouble making a decision.
“This could become a state project controlled by the Iowa Utilities Commission, and not Linn County,” he said. “The county could lose the ability to enforce its own natural gas ordinance, the strictest ordinance in Iowa.”
Alliant Energy said the plant is critical to meet growing energy demand. Linn County said Alliant didn’t meet the threshold to prove that. But if the state utilities commission agrees with Alliant, it could override the county’s decision.
The Iowa Utilities Commission is set to hear the proposal on Dec. 7.
