Consumer advocate opposes sale of nuclear plant

Published: September 29, 2005

Des Moines, Ia (AP) – The Office of Consumer Advocate says it opposes the sale
of a utility company’s interest in a nuclear power plant to an out-of-state
company.

The office said in a statement Wednesday that it is asking the
Iowa Utilities Board to disapprove the application by Interstate Power & Light
Co. to sell its share in the Duane Arnold Energy Center to a Florida-based company.

Interstate
Power & Light, owned by Madison, Wis.-based holding company Alliant Energy
Corp., filed an application in July to sell its 70 percent interest in the 598-megawatt
nuclear plant near Palo to a subsidiary of Florida Power and Light Company.

A
hearing by the Iowa Utilities Board is scheduled to begin Nov. 1 on the issue.
The board has said it hopes to make a decision by Nov. 30.

According to
John Perkins, the state’s consumer advocate, the proposed sale should be
rejected because it’s contrary to the public interest and to the interests
of the utility’s customers.

“The evidence in this case clearly
shows this is a very efficient, low-cost power plant that can and will continue
to operate safely and efficiently for years to come,” Perkins said in a statement.

Supports
relicensing

He said if the sale were approved, customers could expect large
rate increases.

His office said in written testimony filed Wednesday with
the Iowa Utilities Board that the utility’s own analysis does not provide
justification for selling the plant but instead supports that it should relicense
the plant for another 20 years after the current operating license expires in
2014.

The office added that if the sale were approved, the Florida utility
plans to relicense the plant for another two decades.

Under the proposed
deal, Alliant Energy would get $109 million in the form of an extraordinary
dividend if the sale is approved.

Interstate Power & Light has said
it would not relicense the plant if the board does not approve the sale and will
shut it down when its license expires.

“Our company’s position
remains unchanged as we are confident that the sale of DAEC is in the long-term
best interests of our IP&L electric customers,” IP&L President Tom
Aller said in a statement.

He said rejection of the sale by state regulators
would “jeopardize Iowa’s pursuit of energy independence, long-term economic
growth and the jobs of 502 highly-skilled employees at the DAEC.”

Aller
said Perkins’ office was included in numerous briefings and discussions on
the sale since it was announced in 2004.

“It is unfortunate that they
have not recognized that the sale of DAEC to FPL Energy is good for Iowa as the
sale benefits our electric customers, enhances the state’s opportunities
for future economic development and promotes a favorable business climate,”
Aller said.