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Pre-Public Comment Press

Newspaper Articles, Press Releases, and Alliant Company Information Prior to Public Comment Period

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A MESSAGE FROM OUR CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER ~ AIJlANT ENERG.Y

ENVi'Rbf:iMENrAl. &Iii__,-.:..,~~t(~Iowa, American Council for on Energyffficient Economy, which ranks Minnesota eighth in the nation, while Iowa and Wisconsin ore tied at No. 1 1. This year, our ufilities are spending 0 total of $90 million on energy This report, iocltlding the Appendill to this report, includes forward-looking statements. These forward·looking statements can efficiency programs for residential ond be identified as 'uch becaU5e the $1atements include WOldssuch as "plans: "expects: "proposed: "projected: "committed: business customers. We expect that figure to "believes." "designed," Of other Vv'OI"ds of similar i~ort. Similarly. statements that describe future plans or strategies, emissions reductions, electric and gas reductions. COOlpliancewith regulatlOfl$ and future generatiDll plans are also forward·looking increase as more of our customers recognize statements. Further, current designs for future projects are forward-looking statements as the designs may change prior to the project Ihe value of these programs. You'll find being ~le18d. Such statements ere sliljec1to certain rish and urcertainties that could cause actual results to differ materially much more information about our company's from those currently 5lticipated. Actual results could be affected by sudl factors as: state or federal legislative or regulatory actions or local gO'lel"nment actioos. including inability to obtain all necessary approvals and permits; changes in. or adoption ol commilmentlo energy efficiency in the new erM([flmenlallaws and regulatioos to v.ilich Alliant Energy is stbject; changes in the application or interpretation of existing AppendiX that begins on poge 35. laws and regulations; 8lMr1a!S in teetmlogy an:! Alliant Energy's ateeSS 10tethnological develOlXTlents;failure of aquiflT1ent and Everywhere you go these days - hom teclrJOtoqy to perform as expected; manticipated construction issues, delays or expenditures; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of Alliant Energy's plans: changes in tax and other the grocery slore that now offers reusable laM to v.ilich A1lian1Eneruv is subject; Alliant Energy's CUI1inuedaccess 10capital mar\ets; political conditions in Alliant Enervv's bags to auto dealerships with waiting service territories; economic cooditions in Alliant Eoorgys service territory. lists for hybrid cars - there is evidence of These faetor1 should be considered when evaluating the forward-looking statements and oodue reliallC8 shoulcl not be p\ac:ed on people responding 10 climate change. sl.ld1 statements. The forward-looking statements irDuded herein are made as of the date hereof and A1liam.Eneruv urnertakes no This fransition must take into account thai obligation to update publidy such statements to teftect substKluent events 01 cilcumstances. . last ~ate of thisrepon 00/2SI200B.

2 e are not iust employees of AIlianl Energy in Iowa,. Minnesota and Wisconsin . .' -:.we are your neighbors, we shop at the same st6;.t~ti~n'to and from work, fighting to read by, ...... atarto ., infrastructures that are not designed to cook with - impact the .environment. .-" . ..' .. - meel the energy efficiency standards We all try to efficienl~ use energy and respect our of tomorrow. We must systematically environmental resources, but we must continue 10 try 10 begin to address this critical issue. do more. The theme of this year's environmental report - Climate change is one of the most efficiency, energy, and environment - represents factors challenging issues of our day and that cannot be separoted and that gUide every aspect of it will take time to solve the vexing, our company's operations. We musl carefully touch the and oNen competing, issues that it environment as we live our lives and use the resources of our presents. As a result, we need to avoid planet. After all, the quality of our environmental resources is a drastic actions, and allow lime for the reAection of the actions of each of us. evolution of cost-effective technological Finding the balance between efficiency, energy and solutions to help address our nation's environment presents both challenges and opportunities for reliance on fossil fuels. believe I our company, just as it does for each of us in our everyday lives. We f<,J~~-ch~l1eng!=s Americans understand the wisdom of with respect to Ihe timing and effectiveness of updating our existing utility ,opefplions with balance. That's why I'm optimistic a new technologies. You may go through a similar debate as you determine the' right time to a workable policy can adapted be update appliances [n your home, Of replace an older car. that supports a thriving economy while The ripple effect that rising energy costs are haVing on other gdsand services within sustaining the environment. our economy challenges us all. As A1liant Energy pursues opportunities for greener sources We've warked very hard for the to provide reliable and affordable eriergy, we are also right to say that what we've done oddlng to our already-strong lineup of energy efficiency Finding the and where we're going is the result programs. KnOWing the options and making informed bali:.hc~tieiW;;.,;, of executing a well balanced plan. choices are essential fa reducing the amount of energy effi~.~~ri~~~.~~.~~SIY.and We've kept nuclear power in our needed to live camfortab and safe . environ'ment p-o;,re",· ~se=·n""ts=-- _ curren mIx WI au e manCla an Stewardship of the natural resources we use to generate both challenge. and environmental risk of ownership, our and deliver energy to our customers is demonstrated in a opportunitie~ fOr:our renewable energy portfolio is doubling diversity of actions by Alliant Energy's employees. Within company, iust"'as it in size, we plan to use the latest this report, we teU our story as an energy company in does for each of u. in and most reliable cocltechnology service to our customers and the communities in which they our everyday lives. available, and our energy efficiency live and work. I'm pleosecl- and proud - we have so many programs are among the best in the fine examples to share with you. • nation. I encourage you 10 learn more arout our company's current efforts and future plans When you stop to think abaut ii, to balance efficiency, energy and environment. To achieve more rapid progress on our doesn't every sound decision involve shared environmental goals, it's my hope this year's refXJrt will motivate you 10 explore our balance? In the fallowing poges, you'll company's energy efficiency and renewable energy program options. learn how we will apply balance - efficiency, energy and environment - to our company's projects, big and small. Whether a customer, employee, regulator or shareowner of Alliant Kathylipp Energy, you have my word that our Chief Environmental OHicer campony's future will be based on that balance. I~do Bill Harvey Chairman, President and Chief Executive Officer .-:r V"~"~..~. '.

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liont Energy, headquartered in Madison, Wisconsin, is a regulated, investor-owned public utility holding compony troded on the New t\ York Stock Exchonge under the symbol -LNT. - Alliant Energy's utility subsidiaries, Interstate Power and Light Company {IPlj and Wisconsin Power and Light Company (WPLl, are planning to make significant infrastructure investments to meet their customers' growing demand for safe, reliable and environmentally sound utility service. Over the past several years, Allion! Energy has divested its international investments and is now focused on the growth opportunities within its regulated utility business.

Urility Business

Utility Oplrlting Honnlli. IPLand WPL are Alliant Energy's mo utility subsidiaries. The utilities own a portfolio of electric generating facilities with a diversified fuel mix including coal, natural gas and renewable resources. The output from these generating •• facilities, supplemented with purchased power, is used to provide electric service to approximately one million electric customers in the upper Midwest. The utility business also procures natural gas from various ~.. suppliers to prOVide service to approximately 400,000 natural 3% gas customers in the upper Midwest.

Electric hln Mill: Non-regulated Businesses ( Allian.f Energy Resources, Inc. (Resources] is the parent company of Allion! Energy's non-regulated businesses. Resources manages a relatively small porttolio of businesses through two pla~orms: Non-regulated Generation. N\anag~s Alliant Energy's non-regulated electric --~~g~e:'n';e~ra"tl~n~glfCiOlilles: Sfieooygan Fals nergy ad ity eas to eena Energy Facility, and smoll standby generators of Industrial Energy Applications, Inc. Other non-regulated investments. Includes investments in environmental consulting, ... engineering and renewable energy services, transportation and several other 1% modest investments. RMT, Inc. prOVidesenvironmental consulting, engineering and Electric Power SOllrcn renewable energy services to industrial and commercial clients nationwide. RMT's .... energy platform includes WindCannecr, which delivers design, engineering and construction services fo~ wind forms. Transportation includes a short-line railway that ~~. prOVides freight services; barge terminal and hauling services; and other transfer and storage services. Support Services Alliont Energy Corporate Services, Inc. supports the company with traditional administrative functions

N... IG.. ' including strategy, risk management, accounting and finance, fuel procurement, supply chain, corporate 6%i" communications, legal, regulatory, corporate governance, information technology, human resources, labor relations, performance improvement, internal audit, infrastructure security, facilities, publiC 'affairs, and environmental and safety management.

'·_~0t~~~:tt;<~:~~~~O:":i~~1~~:;;~-;{;.~?~-..:~·;,f;~;~-~f,:~f~~:,:-~~f:f@l1'~,j,ji}\_~~;-0;:;~~Jj\:·:~_~\' Maximum peakhour demand(megawatts) 5,751

Number of total electric customers 980.850 Utility electric sales (thousandsof megawatt-hours) 32,931 Number of total natural gas customers 410,261

Utility natural 9as sold and Iransported(thousandsof dekathermsl 113,750 4 --~.-~-,.--,.f------o

MAKING THE WIND WORK FOR YOU RMT WindConnecr has become a major ployer in the qUickly exponding renewable energy market. Over the past five years, the wind industry has grown by leaps and bounds. Worldwide wind power capocity has exponded at a rote of 30 percent per year since 2000 according to the American Wind Energy Associalion IAWEAj. In the United Stoles, from 2006 to 2007 alone, AWEA reports that tOfal wind power generating capacity grew by 45 percent. Since 1999, the WindConned business has provided electrical and civil engineering. procurement as well as construction services to developers and owners of wind energy foci lilies. WindConnecl operations formally transilioned from A1lion! Energy to RMT in early 2007, in order 10 better leverage the companies' energy and environmental synergies. RMT WindConnecl's growth reached new milestones in 2007. Key to this success has been the creation of a strong core team - approximately 100 new employees joined RMT WindConnect over the past year. This team has developed strong relationships with big players - including GE, John Deere, and BP Alternative Energy. RMT WindConnect has also served as general contracfor on the first utility-scale wind farm developments in Indiana and Michigan. In total, RMT WindConnect has completed work at 36 wind energy facilities in 20 states, representing over 3,000 megawatts and 200 miles of transmission lines. The RMT WindConnect business is producing sustainable impacts that will result in environmental, economic, and social benefits. Services provided by RMT WindConnect support the further ex nsion of on alternative energy source that also helps to address Ihe challenge 01 global climate change. RMT WindConnect projects have provided enough electricily to power approximately 800,000 homes and to offset approximately

7.3 million tons of carbon dioxide (C02l emissions. Local businesses benefit from the patronage of the construction crews and additional income from both sales and properly taxes. Landowners who house wind turbines on their property receive further financial benefits from annual lease payments. Wind farm development brings with it on influx of jobs and can serve as a rallying point in small, rural towns. Local communities can also benefil substonlially when roads are improved to enable transport of materials and people.

5 Uf gool is to generate reliable, cost-effective energy and deliver valuable energy-related services, while also being Oa resfXJnsible corporate citizen and a good environmental steward. We recognize our environmental impact and strive to reduce it and to prudently use natural resources.

This report discusses how our policies and actions impact the environment. It also \.., provides measurements our performance .. i Values of .:; "', ETHICS over time. Not all measurements reflect SAFETY improvements or decreasing environmental ENVIRONMENT impacts, but A1lien! Energy uses these DIVERSITY to drive improvements in environmental EFfICIENCY performance and decision-making throughout OUf company_ Allien! Energy has five core values Environmental department staH hiking at the Rivertand thaI guide our activities and all of these Conservancy Merrimac Preserve to preview the Carbon contribute towards our environmental Cycle and Habitat Diversity Trail. This is a self-guided interpretive trail that allows visitors to learn about the philosophy. The Uenvironment" core various habitats as well as the role of carbon in the value, complemented by the uethicsW core ecosystem. value, is the foundation of our corporate environmental principles, which are reflected in a formal environmental policy. Employees Compliance with environmental regularly cerlify Ihal Ihey have read, laws and regulations understand, and recognize the importance o Alliant Energy has on assessment program that of our corporate values and agree to reviews our conformance to environmental regulations. conduct themsel~es accordingly during the ______CDODjIWlr:sseaaIofjhejremplovment Our leadership teom endorses these compliance reviews, approves t e assessment pans, monitors t e assessment outcomes and resolutions. The results of each assessment are discussed with facility managers and site personnel. The resolution of any issues that ore identified is trocked to completion. The overall assessment outcomes are used to plan and implement training programs as well as improve practices and procedures used to ensure compliance. We have an internal risk mitigation process to --.J' manage current and identify future environmental - regulatory requirements with the potential to impact the com'pany's business plans. Our process is deSigned to ensure that compliance is achieved and identifies issues of strategic relevance for advocacy with regulatory agencies or other stakeholders. If employees have any questions about noncompliance with environmental, health, safety or any other company policies, they have several options available to resolve these concerns, including access to the corporate Ethics Officer, as well as, anonymous reporling 10 an independently aperaled 24-haur Elhics Hotline. Alliont Energy also prOVides transparency on environmental issues to the public through Securities and Exchange Commission (SEe) filings Ihat disclose environmental liabilities considered to be important Environmental Management System A1lianl Energy conlinues 10 devebp and refine existing environmental programs. Significanl work is planned for the Environmental f\Aonogement to on investor. Disclosed environmental System (EMSI at the Columbia Generating Station. All EMS serves as a tool 10 liabilities include estimated material systematically manage and continually improve environmental performance. financial impacts of current and emerging environmental regulalions, remediation adivities, orders fram regulatory agencies and legal proceedings. As on odditional incentive for employees, the importance of environmental compliance is reHeered In the company's compensalion programs, which contain performance goals relating to environmental matters.

Promote a clean, safe and healthy environment We strive for continuous improvement in our environmental performance. Our employees recognize the eUed our company operations have on the environment. We work to design programs that reflect environmental stewardship and to reduce the company's impact to air, land, and water resources. This approach is: The EMS will help to belier integrale the • driven by our environmental policy; programs already in place, including compliance procedures, employee training, and the • communicated through employee training Environmental Management Information System. programs; We will develop the EMS ta enhance the • documented within operational organization and consistency of our environmental procedures; . performance by providing increased • incorporated into project planning; and, Policy ...... ,,,, clarity in allocation of resources, aSSignment of responSibility, and • monitored by every level of management. /~' ~\ Manag.a.manl EMS Planning ongoing evaluation of procedures. ReView, 1, A1liant Energy's Boord af Directars has ~ Model ~ assigned oversight of environmental policy An EMS follow. a and planning issues to the Environmental, Checking Implem'ntation Plan-Do-Chedc:·Ad Cyclo. Nuclear, Health and Safety IENHSJ Ccrr8ctive.... /' Action"- ~ Committee. The ENHS committee is comprised solely of independent directors who approved this report for publication. Our company's culture also continues to emphasize efficiency, both in our operations and in using energy wisely. In 2008, our company reached the five year anniversary 1~l\fr~~fi fE~{I'tu.-\"ft, (ll\W,WI.:"'·U31) 11<1-1)0[(11NI~O\\~(U ~jjll1\fj ,Wf{ffil1f~JllJ 01 its lean Six Sigma (lSS) program. As

part of living our "'efficiency· care value, jJ ~~,'r9:nf~,:~I:~.}},\l 1I~\ \! \\'\J}i> lllill.'li'(,,\\i:. :t0~ ~O M1Y~'::~JJ.!_~ UAW1fl, A1liant Energy uses lSS ta systematically analyze and improve our processes. Core processes impacting our environmental performance are no exception. lSS tools help us efficiently and effectively implement the com~lOY's environmental programs.

7 LEAN SIX SIGMA AT WORK Rutkowski created a Lean Six Sigma project charter to increase the utilization at the Souk County landfill to at What would you think if one of your identical twins least 80 percent without increasing maintenance costs. suddenly didn't look like their sibling? AJan Rutkowski, A few key Hfailure modes" emerged from his research. Six Sigma Black Belt, was equally confused when he The compressor and gas treatment equipment had a lot compared the performance and maintenance costs of problems during extreme hot ond cold temperatures, for two of A1liant Energy's distributed electrical energy and a condensate tank tended to fill up faster than resource facilities. it was being emptied, keeping the 24 microturbines The cost per kilowatt-hour to produce electrical energy from operating at times. Since no one was stationed at at the Sauk Caunly landfill was higher than at the the landfill fuletime to keep an eye an the eqUipment, Sheboygan Wastewater Treatment facilily. This didn't it could take days for someone to notice problems. make any sense, since both sites use the exad same Another issue was valves and igniters that tended to equil?ment and processes. Not only thot, but the Sauk fail, usually from normal wear-and-tear. No spares were County landfill maintenance costs were higher and the kept on-site, 50 precious time was wasted waiting for facility was only producing electricity 62 percent of the these replacement parts to get the microturbines up and time, compared with Sheboygan Wastewater Treatment / running again. facilily'S 85 percent. . The solutions to these problems were simple and These distributed resources are small generators inexpensive: fueled by biagas. Biogas is a natural byproduct of landfills, wastewater treatment plants, • adjusting the condensate tank pumping schedule to Lean and anaerobic digesters. Customers with ensure the tank won't fill up; ~i~..?,igma distributed resources combust biogas • keeping spare parts on-site to reduce down time; and, iJftN~, produced on-site in engines or microturbines • installing a remote monitoring system to detect and to generate some or all of their own respond to equipment problems faster. electricity. Combustion of biogas is beneficial to the environment, because its primary HThe simple changes we mode are already helping the landfill constituent is methane (CH41, a greenhouse gas associated with climate change that is a roximatel produce 20 times mare potent Hlan carbon dioxide (CO,I. energy more

Hence, biogas combustion reduces overall greenhouse effiCiently, N gas emissions by converting methane into an on-site Rutkowski said. energy supply, burning it instead of letting it escape into "The lean the atmosphere, and also reducing the amount of power Six Sigma needed by the customer from our company's other process helped generating facilities. us reduce Sauk County Landfill microturbines. the many possible issues to the ones that were really holding things up." The success of this lSS project demonstrates one of many ways that our company's core values of efficiency and environment drive our actions. Alliant Energy's customer gained from increasing the operational efficiency without increasing their costs and the environment benefits from the resulting net reduction of greenhouse gas emissions. In 2007, it is estimated that the equivalent of 2,600 tons of CO, were reduced from the use of biogas fuel for on-site energy supply at bath facilities. o

ince the COO1lXlny'Semissions result primarily from power production, Seffective energy management is a critical component 10 advancing our environmenfal values. Partnerships with customers to reduce energy consumption are mutually beneficial, providing strategic opportunities 10 improve the environment through energy efficiency and new energy resources. These partnerships enable our company to better manage our emissions, control cosfs, and provide insights into developing markets and technologies. The comp:my supports and participates in a variety of efficiency initiatives to assist our customers in reducing energy use. Options supporting renewable energy al1O'vVcustomers 10 offset

emissions associated with their O'N"nenergy use. The 'I I, company's energy manogement efforts include activities that reduce environmental impads as well as provide new products and services to customers. This year's environmental report focuses on many of these efforts. We encourage our customers to consider how these concepts might be adopted into their doily lives or business operations.

-----'CONS£RVING-ENERGYIf=fROtJG~I------1iA.,.i EFFICIENCYINITIATIVES Efficiency is a significant port of Alliant Energy's strategy to provide reliable, cost-effective and environmentally-sound electric and natural gas utility services - this priority includes both our customers' and because they represent an important our own internal energy conservation efforts. Alliont means for our company 10 reduce Energy is commWed to energy efficiency programs, environmental impacts inherently associated with energy production and energy use. Allienl Energy's long-term energy efficiency strategy ploys a role in meeting our customers' future energy needs. Our energy efficiency portfolio includes a mix ...... of products ond progroms torgeted ot redUCing peok -'--'--- demand and total energy usage. Energy effiCiency is a practical energy oplion Ihal provides our customers , ,~.. with the opportunity to conserve energy, while making a positive impact upon our environment. We ore actively working to promote customer adoption through a variety of outreach efforts and incentives. In 2007, our energy efficiency programs resulted in new, additional savings of over 200,000 megawatt- hours IMWhj of electricily ond olmost seven million therms of natural gas during this one year alone. Allian! Energy's programs for natural gas conservation began in the mid-1970s_ Programs for conserving electricity were AlIJant Enorgy's agriculture energy efficiency booth at the twentieth annual World Pork Expo in Des Moines, Iowa, held developed ond fully integroted into energy plonning June 5~712008, at the Iowa State Foirgrounds. and customer services by the early 19805. 9 WHAT DOES IT MEAN? Equivalent Greenho~se Gas Emissions Reductions from 2007 Energy Efficiency Programs.

Energy efficiency program savings for CO2 emissions were entered info the EPA's Greenhouse Gas Equivalencies Calculator available online 01: \IVVv'W.eJX1.gov/ efeonenergyl energy-resources/ calculator, h'tml. This r;::,al~~[alorshows that our 2007 energy

efficien'i::y 'piofJ"r<;lms:provided CO2 emi.ssions re9~cti6n's equgl, to the a'mount of CO2 emitted, avoided or re",bve

360 thousand Households'of' c: ' e1ectritity u~e for o~eye~r' "

Today's programs such a' IP,s Performance Edge and WPl', Shared Savings hove resulted in significant energy savings. In many cases, energy savings are realized through the purchase of new 113 million energy efficient equipment that decreases energy consumption, Propane cylinders used while improving operational effectiveness and reducing for home barbeques maintenance costs. Al1iant Energy provides a wide range of energy conservation expertise as well as financial assistance to residential, agricultural and business customers in its service territory. Numerous programs 14 thousand are oHered and our company continues to seek opportunities to Railcars of coal not expand them. burned to produce power Alliant Energy considers the potential for energy efficiency from various programs in our planning efforts to determine future energy supply. We support policies to expand energy efficiency efforts at the state, regional and national levels. There is renewed emphasis 938 thousand on energy efficiency to preserve the environment by redUCing air Tons of waste recycled emissions, including greenhouse gas emissions associated with climate change. This growing interest from various stakeholders instead of landfilled prompted us to publish an appendix to this report that provides greater detail on the steps our company is taking to design new incentives for increased adoption of energy efficiency by our customers.

10 - Allian! Energy - Energy Efficiency Programs· (J ------Program Iowa Minnesota Wisconsin :-~U'S~~~;;~~s..~~-(-; '''.'''~' _~l~~t.lJi.rw~~~~~!'~~!~~~f~!?':.._ .,.:" Ves Ves Yes Here are a few examples of A11ianf Alliant Energy Speakers Bureau Ves Ves Ves

Energy's results and recent achievements in '~F"'P""'~' "'~'fd"?"':"'~' F VeS Ves Ves this area. :·~1~..,.9..~'~i~H:::,~iH-'''''c' ,?;. J,', No EXTERNAL ENERGY Trees - Branching Out and Operation Releaf Ves No ' _:,' .";:':_.-~_.:~". '.- '. _.,.. .'., ',': -r' , Residential Ai>lJliaiice Paak Use CyClii\g Ves No Ves EFFICIENCY EFFORTS ..~,,;••_" -~~'i(;'~~" '-'_.~ .

Advanced Meter Infrastructure Residential Appliance Recycling Ves No No (AMI):Impraving customer service .' ...... ; .. " .' and expanding customer choice Residential Energy Audits (onsitel Ves Ves No J, ,-' . .,.' .-' No question - technology is changing Residential Equipment Rebates Ves Ves Yes"· lhe way we do business. Over the next four years, we plan to implement the installation Resideiitiall?~d.Manageme~t Ves No Ves or retrofitting of more than 1.4 million electric, natural gos and steom meters with Residential low IncomeAssistance Ves Ves Ves Advanced fv1eter Infrastructure, or NV\l. Residential loW Interesi Rnancing Ves No No AMI technology remotely collects energy usage information at frequent intervals from Residential My Home Comfort Check-Up (online) Ves Ves Ves customers' Afv'\1-enabled energy meters . . '. . via a fixed radio frequency network. Residernial New Construction Ves No Yes" This data is then transferred into a meter data management system and interfaced Residential Time of Use Rates Ves Ves Ves with customer billing information, outage Non-Residential Appliance Recycling Ves No No management and other internal systems. ~Every customer will benefit from N/IJ Non-Residential Business Efficiency CheckUp Ves Ves Ves tec~nology and the improved services it enables us to deliver,· according 10 Barbara Non-Residential Custom Rebates Yes No Yes·· Siehr, Vice PreSident-Energy Delivery Non-Residential Energy Audits Ves No No Customer Service. Here's how: Non-Residential Equipment Rebates Ves Ves Yes·· • lower customers' bills by receipt of Non-Residential load Management Ves Ves Ves more timely information that enables our company to forecast and monitor energy Non-Residential low Interest Financing Ves No No needs during peak times, minimizing the need to purchase energy on the sfXlt Non-Residential New Construction Ves No Yes·· market at high prices_ Non-Residential Performance EdgeContracting Yes No No • With N/IJ, customers can take advantage of energy prices thot vary by the time of Non-Residential Shared Savings No Ves Ves day, potentiolly offering cost savings by shifting energy use Itom peak to off-peak Non-Residential lime of Use Rates Ves Ves Ves when power is cheoper. Agricultural EnergyAudits Ves Ves Yes ., • Agricultural Rebates Ves Ves Yes" • o., . ,... """: Agricultural Shared Savings No Ves Ves ; . . ,.~.. . " -ii;;;'::;-;'- .. DUB to state regulations, p~ogrC1mofferings ~ndproviders vary by state. ..I!~'= &I - ., ·'Offered in Wisconsin through the Focus on Energy (FoEI program. Starting in 2001. the energy savings - for Wisconsin residential and some business programs became part of the public benefits FoEprogram, -- 1 ,-) for which energy savings is managed and tracked separately by the State of Wisconsin. In Iowa and ~ MiMesota, available programs are offered directly by utility ccmpanies under the oversight of regulatory '---' AMI electric meter and handheld establishing agencies. communications to "'0 Alliant Energy data management system network.

I I IV'osl importantly, our campony believes lighting was installed in June2006, and thol the /J.NIJ systemswill provide information the co~tper bulb is now $1.50, ralherthan that will help our customersbetter understand $20. Energy savings lotal $8()(}$ 1,000 how to reduce their energy use and by annually. making detailed energy usage dola easily Because Shared Savings covered the cosl accessible, NIJ will enhance their ability of purchasing and installing the lights,Jean's 10 participate in variousenergy efficiency already-tighl budgetwasn't affected. -In programs. our cose, Shored Savings mode this project Phase I of the NIII project began earlier possible. Without the aptian to repoy WPl thisyear in Beaver Dam, Wisconsin, and with our energy savin'gs,we couldn't have WPl expects 10 begin installing AMI in made the improvemenls.· the rest of its Jean's next step is to make other areas service territory of the highway department more energy in late 2008. efficient. Built in Ihe 1940s, the single-pone Pendingregulatory windows in the maintenancegarage are approvals, covered with frost throughoutthe winter, and installation of NVlI provide almost no nalurallight. Pit!zalso in IPl'sservice plans to do an energy assessmentsoon. territory in Iowa Nyoulose alot of heat when you open huge and Minnesota is doors at each end of the bUilding to move expected to be completed by 2011. "When you're called aut at all hours of the trucksand eauipment in and aut an a regular NDeliveringon our commHmenlto creote nighl, it's no fun 10 stumblearound because basis,Nhe said. and maintain a sound infrastrudure is the you can't see where you're going, - said Tom The Shared SaVingsprogram sponsored heart of our slrategic plan," Siehr indicates. Jean, Highway Commissioner for lafayette by Alliant Energyoffers energy efficiency -As a key initiative in our integrated utility Caunty. The old, high~ressure sOOiumlights improvement assistanceand eqUipment strategy, ANJ is a tool that gives customers in that building took 15 minutesto come on, financing incenlives ta commercial, industrial ----.epliens-lG-€GRlre!-theireAergy·use,and·we- -ond-when-they-did;-Jhe-light-was-extremely-- -antrogricultural-custamersirr-Wisconsirrll-carnlldd----- believe it will have a positive impact on poor, he explained. In addition, as the Minnesota. This program allows business customer service... fixturesaged, the amounl of lighlthey gave and agricultural customersto implement off gradually diminished. energy efficiency measureswith little or no Plowing into 0 brighter future The new fluorescentlight fixtureshave up-frontcosts to the customer.Alliant Energy (LafoyeHeCounty Highway Deportment - mode things a lot easier for Jean'sstoff. They helps customersidentify and evaluate energy- Darlington, Wisconsin) were installed in the main garage where saving projects and technologies. Customers all equipment is repaired and serviced, later repay Alliant Energy for the cosl of the Nobody likes to get aut of bed in the dark the storage garage that housesover 30 projects implemented through future energy on a chilly winter morning and go outside pieces of equipment (graders, dump trucks, cost saVingsrealized from the projects. to clear away snow. You're tired, bracing snowplows, sign trucksland the wash yourself against the cold wind, but at least boy, where all vehicles and equipment are the lights in your garage are bright enough cleaned. aWe'fa saving energy by using a for you to see what you're doing as you get more efficient fixture, but more importantly, out the snow blower or grab a shovel. our employees have the quality lighting they Not sa far the 35 employees of the need: Jean said. lafayette County Highway Department that uThisproject's resultswere exceptional, a mustdear snow and ice from 419 miles of said TrayPiltz, a strategiCaccount manager road. Befare lafayette County campleted a based in Mineral Painl, who wmked with Shared Savings project 10 install new energy Jean and his staff. "Before the new lights efficient lighting fixtures, the employees were were installed, looking into thesebig coming to the storage garage and finding buildings was like looking into a cove. Now their snowplow trucksand other equipment they have three times the light to work in." in the dark. Another plus is the cast of light bulbs no longer makes a big dent in the highway deportment's budget. None have needed to be replaced since the energyefficient

12 .,;, I -' o

Energy-efficient lighting improves product display and saves money (RodioShock - Prairie du Chien, Wisconsin) The dock was ticking and the pressure was mounting - to have a successful 2007 holiday sales season at their RadioShock franchise. Roger and N\arlene Dyer knew thai their remodeling and relocation plans had to come off without a hitch in just six weeks. PreViously located on Prairie du Chien's east side, the Dyers moved their business downtown to an area that is undergoing a Organic oil processor transformation from industrial manufacturing seeks greener pastures to a mix of retail! condominiums. They (American Natura/Soy - Cherokee, Iowa) remodeled a former lumberyard office into a modern, colorful electronics store, and The increasing demand for soy-based despite on extreme~ tight schedule, they products has brought a new industry to were determined to meet their deadline. Cherokee that's having a positive impact In mid-September, they wrapped up their on the environment. An abandoned groin planning and started tackling a big to-do storage facility is now home to American list, which included the installation of energy- Natural Soy, which produces oils from efficient overhead fluorescent lighl fixtures. soybeans, flax seed and sunnowers, in The electrician the Dyers hired was familiar addition to a line of organic oils. with WP,s Shored Savings program, so Mork and Julie Schuett, along with a ___ --R",E>-<;OO!Q

To produce organic oils, Schuett has ...~..~.. worked closely with several Iowa universities and has recruited farmers to grow the organic grains. N'v:>st recently, the company' has upgraded its equipment from a batch- by-batch process to a continuous-feed processing system. At the same time the continuous-feed process was being installed, Jon Bowles, strategic account manager for IPL identified several areas where additional insulation wauld lower natural gas costs. to upgrade the lighting," said Gerry Freudenberg, Dean of Students. In the SI. Francis gym, sodium vapor lights were replaced with fluorescent lights. In the Durgin Educational Center gym, metal halide lights were also retro-fitted with fluorescent lights. "With the old lighting, we hod to leave the lights on all day, because they took so long to heat up, " said Approximately 87 custom-built insulation Freudenberg. blankets were used to wrap boiler covers, Ashford Universily's lighting projects refmery pipes (Ll:22 feet of lac e Ing , 01- 0- were inance using t e er ormance ge oil heat exchangers, processing equipment, Contracting program af Alliant Energy, which flanges, gate valves and elbows. Stainless finances energy-efficiency upgrades with steel jacketing was installed over the energy saving dollars. insulation In critical areas, so it could stand Now thai work is complete, Ashford up to the frequent equipment washing that's University is reaping the benefits in terms of required in food processing. aesthetics and energy saVings. The updated uMark was really surprised at how lighting is saving Ashford 81,650 kilowott- much he saved by properly insulating the hours annually, which equals energy savings New lighting enhances facility, U Bowles said. A.s a result, American of nearly $5,000. Perhaps most importantly, campus activities Natural Soy's annual energy dollars saved the energy saVings is eqUivalent to the is over $35,000. Schuett spent $77,377 (Ashford University - Clinton, lowo) annual power consumplion of 10 average for the insulation project and will achieve The light of knowledge has been burning households. his return on the investment in less than 30 brightly at Ashford Universily since 191 8 months. Another bonus is the environmental when it was known as Mount 51. Clore benefits resulting from annual savings of College. However, with its exponential approximately 39,000 natural gas therms. growth and desire to better manage its uThe Performance Edge Contracting energy consumption, lighting updates were program offered by Alliont Energy allowed needed in a few of the buildings on its us to make important energy-efficient 24-acre campus. improvements that will reduce our monthly The Durgin Educational Center, which

energy bills and help the environment, U said houses Kehl Arena and the athletics Mork Schuett, President of American Natural deportment, was built in 1959 and the SI. Francis audiforium and gymnasium was completed the year before. ulf we were fa continue to use lhese {acililies and be good stewards of OUf energy usage, we needed 14 (

Energy-efficiency projeds save In recognition of ils commitment to energy plastic window film and hole seolant. AJ grocer a caol $100,000 annually efficiency, HyVee received a rebale check some homes, other energy-efficient items from IPI for $108,265. Alliont Energy is were also installed, including low-Row (Hy-Vee Food Store - Cedar Rapids, Iowa) proud to offer incentives to and partner with shower heads and rim joist insulation. When the Wilson Avenue Hy-Vee food organizations that support energy-efficlent Volunteers helped out in other ways as well, Store in Cedar Rapids opened, it became technologies that are environmentally assisting residents with general upkeep, yard the most energy efficient in the corporation's responsible. cleaning, furniture moving and some small 223-slore chain. !W:Jrry energy-saving home repairs. technologies were added into the new Rolling up their sleeves Nit'ssatisfying for us to know that almost store's design with help from AJliont Energy 100 homes are now ready to face Iowa's - such as high-efficiency lighting. windows, (Weotherizotion Challenge - unpredictable weather fluctuations, N said healing and cooling systems and a first of its Dubuque, Iowa) Diane Hanson, a Trade Account Manager kind in the Midwest refrigeration system. As part of the 2007 Weotherizotion in Dubuque, who organized Alliant Energy's Chollenge in Dubuque approximately 40 participation. Allianf Energy employees volunteered to Thanks to some old-fashioned elbow make the homes of low-income, disabled grease and a willingness to help others, and elderly residents more energy efficient another event planned for fall of 2008 in the largest single-day community is set to have an even greater impact- weatherization program in Iowa's history. new sponsors have committed to prOVide Sponsored by Operation New View supplies and financial support, and Hanson Commun ity Action Agency, the project expects the number of volunteers 10 increase matched volunteers with Dubuque residents. Significantly. "'The people we helped were so Teoms worked 10 equip the homes with the grateful; it was a rewarding experience for most common weatherization measures such all of us," she soid. as caulking, weather-stripping, door sweeps,

Energy costs have o-majorim poct-on------a grocery store's financial performance, according to Scott Youngberg, Store Director for the Wilson Avenue location . •Aher labor and products, energy is one of the largest costs of doing business,'" he said. AUiant Energy projects annual energy savings to be more than 1.8 million kilowatt· hours of electricity - the equivalent of powering 225 average homes. That's about $ 100,000 in terms of cosh saVings. The store's commercial refrigeration system alone is expected to save 1.3 million kilowatl- hours of electricity eoch yeor. To verify its efficiency, Allianl Energy will monitor energy consumption an the new refrigeration system during a two- yeor period. 15 INTERNAL ENERGY Thot's not all rr is dOing, however. All new equipment will EFFICIENCY EFFORTS be purchased from vendors who can ensurewe get the best possible energy consumption rotes, including ENERGY STAR Infonnation Technology Department certification where appropriate. Power management options leods the way for employees' personal computers ore also being investigated. We can', imagine life withouf the convenience of computers, but the amaunt af energy they - and ather Tuming the spotlight information technology {IT) equipment - use con be a on our company's energy use

staggering expense for companies of all sizes. We promote energy efficiency to OUf employees as strongly To reduce our energy as we promote energy efficiency 10 our customers. Using consumption, IT employees energy Wisely and increasing energy effiCiency isn't just our began their enelgy efficiency customers'job, it's our job as well. project focused on servers - In April 2008, employees in Alliont Energy's Energy Delivery special computers that manage and Facility Services began conducting full energy audits at Allian! Energy's computer all of our general office and operating/maintenance support netvvorkand ollow employees' buildings, focusing on natural gos· and electric-powered computers to access certain equipment, evaluating the equipment's efficiency and hours files and programs. The gool of operation. So we can compare apples to apples, we will was to reduce the number of measurefacility energy usage on on energy per square foot serversas much as fX)ssible, basis. Information Technology Manager, Louis Chiang, spearheaded Alliant because the power and Saving energy isn't the only goal - it's Energy's greener computing cooling needed for each equally important to ensurewe are using ~--. ..: initiative. machine can cost as much as energy wisely while providing a safe, $2,000 per year. clean and productive work environment . . _ Through consolidation and virtualization [a process for our employees. The audits will help . that combines the space and capability of 20 servers educate employees as to how much •." ~'I_:l into onel, IT has already reduced the number of servers energy their work location consumes. ------~lfOom__74G__to_400:_The-deportment-b_obo·took.ir· lcr-;'- rto---t--Preliminary resultsshow considera6Ie variation in the energy M Mblade servers,which consume approximately 40 usage among bUildings. While inefficient or malfunctjoning percent less power than conventional servers. equipmen! may be significant contributors to a bUilding's high loter in 2008, IT expects to install Distributed Power energy consumption, employee actions 10 be energy efficient tv\anagement sofr.Nareto reduce the amount of energy ore also important. the servers use by consolidating the workload onto Once the audits are complete, we plan to post the results fewer serversat night and on weekends. The unneeded at each location, olong with ideas and information on how. servers move to standby mode and then come oock on- employees can be more energyefficient while at work. Facility line as the workload increases. Services plans to use the information to track each building's IT isn't jus!concerned with the equipment that consumption and take quicker corrective action. employees currently use. Obsolete computer equipment A1liantEnergy is also pursuing energy conservation at its is recycled, donated or resold through Inlechra, a power plants, including efforls 10 install energyefficienl lighting, technology disposel upgroding of weather sealing/insulation around building vendor whose policy doors and windows, installation of boiler control systems,and guarantees proper undertaking proiects targeted at redUCingauxiliary power disposal of all usage, such as identification of what eqUipment can be safely equipment. Intechre turned off when it is not needed. has a zero percent In addition, our comFX=mycontinues to improve power plant londfill policy ond operating efficiency through a variety of prolects targeted ot is committed to thermal performance that resultin better utilization of fuel to preventing hazardous generate electricity. We continue efforts to implement RMT, eweste from going to Inc.'s SmortBurn*combustion technology process. Alliant municipal Incinerators Energy has achieved significant combustion improvements or landfills and resulting in lower NOx emissionsat nine electric generating preventing the export of unitsusing SmarfBurnthrough 2007. hazardous eweste to developing countries. 16 ECONOMIC AND COMMUNITY DEVELOPMENT GOES GREEN One of the targets of Allien! Energy's Economic Development Deportment is business retention and expansion. The A1lien! Energy economic development learn strives 10 retain and expand industries in our service territory. The success of the communities we serve is a top priority. Allion! Energy partners with its communities to help them meet their needs and provide opportunities for economic growth. OUf company is laking a more active role in assisting communities take on an environmental focus. Allien! Energy's programs include:

• Minnesota Competitiveness ENVIRONMENTAL AWARENESS Project - This is the firsl regional IN CUSTOMER OUTREACH EFFORTS competitiveness project 10 be conducted Environmental awareness is on integral part of delivering quality service and value-added for a 3Ckounty area in southern Minnesota products to Allienf Energy's largest commercial, industrial and wholesale customers and initiated in January 2008 and scheduled communities. IVIost recently, our company has launched on exciting new customer program ta be campleted in May 2009. Alliont in Iowa in conjunction with Sebesta Blomberg called H5-Steps to Sustainobilitl. Sebesta Energy is a portner in this project that wilt Blomberg is on engineering, construction support, commissioning, facility support, energy look at agricultural-based opportunities to managemenf and enviro~mental services company. take advantage of the natural environment, renewable energy initiatives ond other bio- initiatives in this region. • Wind Condo Development - This program is a new concept for large industrial customers looking for opportunities to lower their contributions to greenhouse gas emissions resulting from energy consumption at their operating facilities. The concept we are exploring is to establish a future custamer-owned wind farm within the Alliant Energy territory that would allow customers to own a piece of a renewable energy source.

II Scenario Planning - An education ~game~ that helps economic development professionals, city officials and community leaders to realize the long-term impact of any decisions that are made now. Specificol,;, the scenarios get people thinking abaut global issues and environmental stewardship practices and illustrates how our decisions today impad the environment for future generations. • Green Jobs - A program focused on attracting HgreenH collar jobs to areas within Alliant Energy's service territory. Targeted industries include businesses involved with renewable energy resources, biomass fuels development, and biotechnology initiatives. I' - . • "i;;;/' [!)(]I'9(][!'®I?O~ (jl&m'if~(](;l!il(](JO(jl!il'if® OO!il(](]~[3m@'i7 o

Alliant Energy Chief Executive OffIcer, Bill Harvey, speaks with Asia·Pacific Partnership delegates.

Participants in the Asia·Pacific Partnership U.S. Peer Review that

took place April 29 • May 21 2008 at Alliant Energy's Columbia and Edgewater generating stations.

Asia·Pacific Partnership participants review facility maps os part of the Columbia Energy Center tour.

18 What we're most proud of, however, are the wind farms we are building and plan fo develop. A1liant Energy has committed to investing over $ 1 billion in new wind energy by the end of 2010. Here are the projecls on our drawing bexJrd:

Cedar Ridge Wind Fann (Fond du Lac County, Wisconsin)

In lole 2007, WPl broke ground on the Cedar Ridge Wind Farm in the townships of Eden and Empire. lM!i~riflll Willow z00-500MoN The Cedar Ridge site was selected because it is one of the windiest locations in Wisconsin, with an average ~~J wind speed of 16 miles per hour. The 68 MW wind ~ Announced farm is expected 10 be online by the end of 2008 and, on average, will generate enough energy to power 17,000 homes. The Cedar Ridge Wind Farm is WP,s WIND ENERGY PICKS UP SPEED firstcompanyowned wind generation site and its 4 1 IN OUR SERVICE TERRITORY turbines stretch across 7,800 acres. At A1liant Energy, we CAN tell which way Ihe wind is Taking the LEED blowing. The 378 megowans IMWI of wind energy we purchase in Iowa, Minnesota and Wisconsin ranks us The Cedar Ridge Wind Farm Visiting Center/ in the Top 10 among investar-owned utilities, according Operating and Maintenance bUilding will prOVide a ( to the American Wind Energy Association IAWEAI. In central location for operating, service and maintenance 2007, wind energy provided about 3 percent of the personnel; spare ports, tools, equipment, vehicles and energy we sold to our customers. _ -----, admif)istrative What's more, Iowa 15.5 percenl) and Minnesota 14.6 suppart. There will ------;pe""'rc"e""'nWea e no Ion In e amoun a elr so e s be-opproxlmately electricity that comes from wind energy. AWEA ranks a half dozen Minnesota third in the nation with 1,299 MW installed people located at capacity and Iowa ranks fourth wilh 1,271 MW. this facility. This building is being constructed using leadership in Energy and Environmental Design (lEEDI principles and ~ur company has received 'Gold' Level certification. lEED certification is third-porty verification from the U.S. Green 8uilding Council (USGBC}. lEED is a performance-oriented rating system where bUilding projects earn points for satisfying criteria designed to address s~jfic environmental impacts inherent to the design, construction, and operation of a building. The Cedar Ridge bUilding will be powered from the on-site wind turbines and will have a goc,thermal heating/cooling system. II is being buill with recycled materials and low emission paints, adheSives, and sealants. low level internal and externollighling is being used 10 minimize light 'pollution' . The interior fixtures and exterior landscaping ore designed 10 be water On June 25, 2008 Alliant efficient. Energy employees had the opportunity to sign an actual wind turbine blade being placed at the companys Cedar Ridge Wind Fann.

19 Now that Alliant Energy has ochieved Bent Tree Wind Farm its first Gold Level certification with the (Freeborn Counly, Minnesota) construction of the operations center 01 In April 2008, WPl executed a letter 01 intent to purchase a 400 MW wind larm site Cedar Ridge, our company is committed located in Freeborn County in southern Minnesota. WPL anticipates the purchase to be to achieving. LEED certification for all new finalized later in the year. The 400 MW of potential wind generation capacity at the Bent bUilding construction and remodeling Tree Wind farm has the ability to power up to 100,000 homes annually. WPl expects 200 of facilities. Alliant Energy's facility MW to be in commercial operation by the end of 2010. A decision has not yet been made construction and operating practices support regarding timing of the development of the wind farm's additional 200 MW. the five elements of LEED certification of a Green BUilding: site planning, water Whispering Willow Wind Fann management, energy, material use and indoor environmental quality. "Constfucting, (Frank/in Counly, lowo) operating and maintaining our bUildings to In November 01 2007, IPl acquired approximately 500 MW 01 wind site capacity in a green bUilding standard is the responsible Franklin County, Iowa referred to as the Whispering Willow wind farm. In February 2008, thing to do for our customers, employees IPl received regulatory approval from the Iowa Utilities Boord to construct a wind farm with and shareholders," said Chris lindell, Vice capacity of up to 200 MW. ThiS site will be home to IPI.'sfirst componyowned wind farm. President of Shared Services. The Whispering Willow Wind Farm is planned to be developed in two phases. Construction OUf company also continues to take is expected to begin in 2009, and IPL expects the first 200 MW to be online sometime in steps to operate in a more environmentally 20 I0. A decision regarding the development of the wind farm's additional 300 MW has not sensitive manner. The company has yet been made. announced plans to switch from a petroleum- based mineral oil, to fR3 AUid, a soy-based When completed, wind energy is our renewable energy resources as part of insulating oil in distribufion transformers. expected to provide about 8 percent a balanced approach implemented over The say-based coolant is 100 percent of the energy we sell to our customers. an appropriate timeline, including future biodegradable and can be recycled when Alliant Energy is committed to rapidly initiatives under consideration for enhanced transformers are retired. Alliont Energy buys adopting renewable resources to meet renewable resource portfolio requirements about 12,000 distribution transformers a our utility generation needs. Our as part of the ongoing dialogue on global -----'tyeeoOfrc+Ae-.witEh te fR3 II1JiEl-wilI--re~H'if· e----'~~;Qj]Jll'I!l\'.£II2P'>&iurJOOJl>""'nsiJ;>ILaL--LJ:WllilJle.J::h.aD9''-Po1k¥--''Jey.aIqpmen1.------c m n rt f rt r redeSigned transformers to optimize its special properties. The gool is to have the redesigned units available for purchase beginning in 2009. This is just the latest step in Alliant Energy's continuing environmental commitment. Last year, the company's entire neet of BOO service trucks was converted 10 utilize bio-diesel fuels and we have begun to / switch other fleet vehicles to EB5.

, .

.\ \ 'I, 20 i I -\ 1 o

Second Nature helps renewable energy become a way of life burning melhane gas from a landfill in (Green Autos - Janesville, Wisconsin) Wisconsin and 2 percent came from a dairy farm anaerobic digester. From the products they offer to the conscientious operation of their business, 10 spreading The cors sold ot Green Autos ore ZENN the word about alternative vehicles as well as A1lienl Energy's Second Nature program, Tim cars - no-noise, fully electric vehicles that and Chris Thompson ore setting a terrific example of incorporating renewable energy into a look much like conventional cars, A three- business. door hotchback, fully enclosed with a sleel r- reinforced body for sofety advantage, the ZENN is ecuipped with honhvheel drive. II's capable of ochieving 25 mph - 0 pace that will keep up with traffic on local streets - and will cover about 35 miles per battery charge. The battery is 80 percent rechargeable in four hours, 'Neighborhood Electric Vehicle or NEVs, while not for everyone, should be included as a viable alternative means of transportation, ~ Tim soys. 'They have zero emissions and get hom 8 to I 2 limes the miles per dollar when compared , against gas cars: The company extends its Green Aulos is a fomilyowned business environmenfal awareness throughout its that offers alternative-fueled vehicles operations. The building which houses (vvww.greenaut05.com). The business Green Autos dates back to 1938 and hos hod many different uses. Sharing heet opened ils doors on Augusl I, 2007. Tim Thompson is the owner of Green Autos, with another tenant, they work together to and his son, Chris, is the general manager. establish set backs to use with on installed Having been a residential participant in programmable thermostat. Tim worked Second Nature since its inception in 200 1, with the property management company to Tim felt Ihol 'Green AUlos, by the very nalure identify and correct sources of air Infiltration - and as a result, they installed a new rear of what we do, should participale.' Allionf Energy electric customers can ioin door and new weether stripping, plugged and insulated vent ducts which were na Second Nature, a voluntary renewable solar power and biogos energy used in longer used, and disabled on exhaust vent energy pricing program, by paying a the program. This renewable energy then Ihat ron all night, pulling cold air into the monthly contribution to cover the added displaces energy from fossil fuels, such space. expense of purchasing the wind and . as cool or natural gas. Currently, over As the company leesed space, Tim 14,000 residenlial customers and 1,000 sought approval from the other tenant and business customers in Iowa, Minnesota property management firm to fXlrticipate and Wisconsin are participating in Second Nature. in the Second Nal"re program - thereby increasing their awareness of ren8'NCIble In 2007, over 86 percent of Ihe energy options, The Thompsons can't predict renewable energy purchased by Second when we'll see NEV cars on a regular oosis, Nature was generated by wind farms in but their leadership and their commitment Iowa and Minnesota. Approximately 0.2 to renewable energy and alternative fuels is percent came from a solar project in Iowa, here to stay, while over 11 percent was generated by

21 Creating Unew" renewable resource options GROWING THE A1liant Energy's renewable energy strategy embraces more than just Ulility-scale wind BIOMASS MARKET proiecls. The company supports a diversity of renewable energy proiects in the small GrOWing the biomass market has lIess than kilawattsl and medium kilawatts ta ranges. Our campany is 100 1100 5 MWj been at the forefrant of effarts by seeking new ways to get our customers excited about purSUing more smal~ and medium- Bill Jahnson, IWJnager af Biafuels sized renevvable resource projects. The effort to create new customer-owned rene\rVClble Development for Alliant Energy. He resource opportunities is being led by Sarah Else, Director of Renewable Energy is focused on turning our company's Resources for Allianl Energy. To make this happen, our company has proposed expanded plans ta burn lacalf( harvested renewable energy programs in 10'NCland Wisconsin. renewable fuels into a reality for our proposed new electric generating The prapased lawa pragram will be Renewable programs are being units at the Nelson Dewey and for both residential and non-residential prop::>sed in both states to demonstrate Sutherland generating stations. customers, offering financial reootes for our company's commitment to renewabl.e renewable energy initiatives in customer- energy, to respond to customer demand owned geothermal, wind, solar, small for more renewable energy opportunities, hydro, biomass and biogas projects. and to encourage the development and Iowa customers will be gUided through imple'!1entation of new iechnologies. a three-stage process fhat includes: Alliani Energy is leading the pack in (1J self-prequalificalian; {21site en~our~,gi.rg. custom~r,sto install small- and assessment; and, 131rebate after praiect medium-sized rene-..yable energy resources. installation. The first sl/?ge ensures the In Iowa', we are the first land only) utility to SYtfitehgross Fuel customer is aware of energy efficiency recommend renewable energy programs opportunities that ca'n reduce their as part af the la;,va Energy Elfici·ency A substantial amount of biomass facility's electricity use. The~e effi~i17ncy Plan. In W(stonsi11, Alliant Energy is the fuel will be needed for co-firing the measures can be considered in tH.~ fii~1 utiliiY to c;ff~rrenewoble' programs two new units, ranging from 50 - deSign process to reduce the amount of this type as a voluntary program over 100 tons/hour and re resentin anaabove wliat ,sreqwrecrDy"-=st;a~le-----l---'''''-'''='';';'''.-=''--'===",,"------of energy requtrea from the customer s the potential biomass recovery from prop::>sed rene'NClble energy resource. legislation. Proposals for these programs appraximately 75,000 ta 125,000 The second stage then complements were submitted for approval to the Iowa acres/year of wood and agricultural this by helping the custamer thoraughf( Utilities Boord in the IPI Energy Efficiency land. understand the costs and benefits Plan and the Public Service Commission Our company is working with of installing a renewable resource of Wisconsin in WPL's utility rate case. state formers and wood producers technology prior to installation. The While these programs ore still pending to develop a sustainable market at Ihird and final slage, after renewable regulatory approvats, we hope'to offer a fair price for a variety of biofuels technology installation, is presenting the them as soon as 2009. - such as switchgrass, corn stover, customer with a well-deserved checkl Accord·ing ta Sarah Else, "IWJre than forest reSidues, or other biomass In Wisconsin, the proposed ever, Alliant Energy wonts to create an residues. renewable energy program will be opportunity for customers to act on their Accomplishing this task is much designed to layer aver Focus on Energy personal commitments to the environment. easier said than done! Converting (FaEI programs. FaE is a statewide In these economically challenging times, renewable resources info a useable organization that works with eligible we hope that innovative programs such energy source reqUires overcoming Wisconsin residents and businesses to as these will prOVide the needed financial challenges to assure a biomass install cost-effective energy efficiency incentives for customers to have a more supply chain is economic and and renewable energy projects. Specific active role by owning, bUilding and . efl:;...;...... • to Wisconsin businesses, the proposed operating their own renewable energy program will offer additional options to supply. for customers not able to or our non-residential customers that include interested in installing their own renewable a choice of either a financing ar grant energy technalogy, Allian! Energy affers opportunity for eligible customer"OVYIled the Second Nature program as another wind, solar, geothermal, biomass and excellent opportunity to offset their energy biogas praiects. use through renewable resources.·

Woockhips Fuel 22 o

Harvesting - Traditional harvesting equipment does nol always remove the portion of the plant desired for biofuels.

To grow and process biomass in a manner Fuel densification - Compacting that will maintain a healthy environment biomass is necessary to improve the is ecuolly important. Being good lond malerial handling ease, feed it into stewards requires core to assure thaI bioruel the boiler co1iring system and reduce production does not increase soil erosion, transfX>rlalion costs. impact weter quality, reduce soil organic matter or reduce eco-system diversity. According to Bill Johnson, "Renewable power ploys on integral role in A1liant Energy's efforts 10 reduce our greenhouse gas emissions. We see benefils for the community and the environment in prOViding Storage - Biofuels consume more new markets for cover crops and forest volume thon coal, making it imporlanllo materials grown on morginallands and maximize the efficiency of space used for by providing new business opportunities on-.sifestorage. Biofuels can degrade jf for formers and other people involved in they're not horvested and stored properly, the planting harvesting._cggregation. \- _ resulting in poor fUel quality and could transportation, and processing of biomass. ~ creote fire hazards. Educational outreach efforts and support of renewable biomass technology development ond deployment is 0 key locus for our company. There are many activities underway including: Biamass quality - Not 011biomoss • establishment of 61 acres of spring planted is creoted ecuol. For exomple, high native gross demonstration plots thai will levels of potassium content in biomass con be lollowed by odditionol ocreoge in the result in slogging in the boiler. Slogging loll 01200B; occurs when minerals change to liqUids at high temperatures. This degrades • a joint study to determine harvesting costs boiler equipment and reduces combustion and estimated yields for removing low efficiency. Similarly, high moisture content value wocx:ly materials from hardwood will reduce fuel heal content and increase forests; and, transportation costs. • collaborative efforts with local colleges 10 make courses available on renewable Transportation - It is crilicalto reduce resources. the number of suppfy chain steps hom the biomass source to the generating facility. Our comfXlny has also assisted in study The transport process itself uses energy and 01 the development of machinery needed human resources, such as manpower and fa harvest and densify grosses and crop fueL Transportation efficiency can make residues in the field. or break a successful business model for bioluel suppliers.

23 reater efficiency, fewer air emissions, burning Slalion Unit 3. These new units, the firsl ooselood biomass, using more renewable energy generating unit addilions for Allianl Energy and its Gresources - these are jusl a few of the changes predecessors in more thon 20 years, provide the catalyst on the horizon as port of A1lienl Energy's announced plan . for upgrading OUf electric generation Reet. for its new generating units - the proposed Sutherland look at haw the fleet will change: Generating Station Unit 4 and Nelson Dewey Generating

IPL Sutherland Unit 4'

~~ Sutherland Generating Station Unit 4 uses super-eritical pulverized • Will be up to 15 percent more efficient than the average coal-fired plant in the United States coal technology

Within 5 years of operation. up to 10 percent of the fuel burned • Will reduce lPl's CO2 emissions by nearly 300,000 tons per year by reducing the amount of Coal at Sutherland Generating Station Unit 4 will be renewable resource burned fuels such as switchgrass, waste wood and corn stalks

Retire lansing Generating Station's coal-fired Units 2 and 3 and • Reduces potential ~ emissions by more than BOO,OOO tons per year permanently switch the fuel sourte at the Dubuque Generating Station • Reduces other annual expected air emissions from coal to natural gas once Sutherland Generating Station Unit 4 • S02: 2,000 to 2,500 tons .NO,: 2,000 to 2,500 tons ·Mertury:l0 to 20 pounds begins operation

Build 200 MN of wind generation by 20\0 at the Whispering Willow • Produces moI"8 than 700,000 MWh of 'a1'l'a1Vt each 'tear Wind Farm, the first Wind farm owned by IPl • Reduces CO2 emissions by more than 900,000 tons each year by avoiding the use of coal and natural gas to produce this energy c Continue adding renewable energy resources, generating 10 percent At the end of the lS-year period,lPl's renewable energy resources will: of the energy IPl needs by the time Sutherland Generating Station • Produce 5 to 6 million MWh of energy each year Unit 4 begins operation in 2013 and increasing 1 percent per year for • Reduce annual C~ emissions by more than 4.5 million tons tbe,nextJ5..years

·IPI.. Proposed Plan in Compliance with Iowa Utility Board nUB) April 30, 2008, Oral Decision. This proposed plan is subject to revision based on final review of the IUB's written order.

WPL Nelson Dewey Unit 3'

~~ Nelson Dewey Unit 3 will use circulating fluidized bed (CFB) coal • Able to burn a variety of different fuels including large amounts of renewable resource fuels such as processing and boiler technology, the first WPL generating unit to do switchgrass, waste wood and corn stalks so in the company's fleet

Five years after commercial operation, 20 partent of the fuel burned • Will reduce CO2 emissions by more than 500,000 tons per year by reducing tlie amount of coal burned at Nelson Dewey Unit 3 wilt be renewable resourte fuels .' Could createeconi:imIc'-aev£iioPme'ntr~6riues exceetling' SSO~iIIion annual~1or'Wisro;;infarmers: - - foresters, and fuel aggregators and transporters • Enables use of ecologically friendly crops and better land and forest management practices

Retire EdgeWater' Generating Station's coal·fired Unit 3 once the • Reduces IXJtential CO2 emissions by more than 700,000 tons per year proposed Nelson Dewey Unit 3 begins operation • Reduces other annual expected air emissions • S02: 1.100 to 1,400 tons • NO,: 300 to 500 tons • Mercury: 10 to 15 pounds

Add a total of roughly 500 wrN of wind generation to WPL's energy • Reduces CO2 emissions by lllJre than 1.750,000 tons per year by reducing the amount of energy supply portfolio: needed from coaJ. and natural1las fired generating units • 300 ~ by 2010 from the planned cedar Ridge {Wll and Bent Tree (MN) wind farms end other wind energy purchases • 200 MN by 2013 from wind farm sites yet to be determined

• WPl announced plan as proposed is subject to revision and approval by regulatory agencies, including the Public Service Commission of Wisconsin. c

24 o

New Unit Greenhouse Gas emission reduction plan FIRST FULt YEAR OF OPERATtON

8 6 ----- • WPlN.lsoll Dewey 3

N 0 4 -----.IPlSatherland4 u '0 2 .c ,2 0 c ~ -2 ~ -4 Upcoming Milestones for Nelson Dewey Unit 3 -6 September 2008: PSCW conducts public hearings -8 EMISSIONS REDUCTIONS CHANGE Oeeember 2008: PSCW renders decision Early 2()()Q: Construction expected to begin 2013: Unit expected 10 begin commercial operation Upgrading our electric generation fleet will change its greenhouse gas emissions. The projX>sed Sutherland Generating Station Unit 4 and Nelson Dewey Unit 3 will emit opproximately 6 million fons of greenhouse gases annually. Through a variety of actions - including generating unit retirements and fuel switching, ------'I"nc"'rea=se

25 GLOBAL CLIMATE CHANGE Public awareness of climate change continues to grow along with support for policymakers to take action 10 mitigate global climate change. There is considerable debate regarding the public policy response that the U.S. should adopt, involving both domestic actions and international efforts. Several members of Congress have proposed legislation to regulate greenhouse gas jGHGJ emissions, primarily targeting reductions of carbon dioxide (C02) emissions. In addition, efforts are undervvay by the EPA to respond to a court ruling thai could require rules to reduce GHG emissions, including assessment of whether or how the agency should regulate GHG emissions. Stole and regional initiatives to address GHG emissions are also underway in the stoles covering Allion! Energy's utility service territory. Specifically, governors from nine our company remains steadfast in our commitment to A1liant Midwest states, including Iowa, Wisconsin and Minnesota, Energy's adopted climate change position and gUiding principles signee the Midwestern GHG Accord in November 2007. that support the development of a national climate change policy. The porticiponts are expectee ta develop 0 proposed cop- A1liant Energy continues to toke voluntary measures to reduce and-trade agreement and a model rule within 12 months its GHG emissions, including CO2 and other GHGs, as of the date of this accord. The accord also provides for an prudent steps to address fX)tenlial climate change regulation. 18-monlh implementation period, following completion of the Strategically, Alliant Energy focuses on the following areas to cap-and·trade agreement and model rule. reduce GHG emissions: Alliant Energy continues active • Installation of commercially proven controls for air emissions and 2007 Greenhouse Go. Reduction. continued efforts to achieve further generating facility efficiency (Estimated million tons CO, equivalent) involvement in state improvements; ------,---:: initiatives includin the Wisconsin Task • Demand-side management including energy conservation aw--o) -- Force on Global programs; Warming and Iowa • Expansion of componyowned renewable energy sources; Climote Change • Continued use of purchase power agreements lP?AsJand Advisory Council. Our investments that focus on lower or non-emilting generation company supports resources; and, these state and regional initiatives as a means • Developmenf of technology soutions through funding af collaborative research programs for advanced clean cool Annual CO, equivalent reductions,. 4.4 million Ions to better understand the geographic differences generation as well as potential options for carbon sequestration.

in the potential to Our company believes that our climate change approoch is cost-effectively reduce balanced and assures that strategic plans are subject to executive 2013 Greenhouse Go. Reduction. GHG emissions. These review by Alliant Energy's Board of Directors. Our company's most discussions ore also IProjected million tons COl equivalent) recent evaluation of our strategic plans reflects continued focus on valuable in discussing increased energy efficiency and renewable energy sources as key ...... the •nufs and bolts of aw..-.l aspects to reduce Alliant Energy's GHG emissions. These plans -.,. how to implement a -- ': " . are periodically updated as more information becomes available climate change policy. with regard to recent activity on fhe development of future climate . O.l0/0-~...... , .. This information can change policies . Coal .. , . .-= • and should be used AJliant Energy calculatee ils esfimatee 2007 and pralectee Combustion .: '. to inform the national ...... ~M 2013 reductions of GHG emissons using the some approach that 3A% dialogue on feeeral it used in the post for voluntary reporting to the Energy Information c1irnate chonge policy A~nual COI equivalent redlCtions = 8.7 million Ions Administration. approaches. However,

26 n ALLIANT ENERGY'S POSITION ON ClIfv\ATE CHANGE RESEARCH & DEVElOPMENT • It is in the best interest of A1lionl Energy's In 2007, A1liant Energy invested $4.3 million in shor~rs and customers thot f~tureeHats to various research and development IR&DJ programs. reduce greenhouse gas IGHGJ emissions be This omount included both discretionary research funds gUided b." an effective, mandotory palicy that as well as funds collected from customer billings per is nationol in scope, opplies 10 multiple sectors, mandates horn stale regulations. provides planning certainty, and allows flexible Although a majority 01 our R&D dollars are spent on compliance adions consistent with notional collaborative research programs overseen by the Electric energy p:>liey reqUirements. Power Research Instilute IEPRIJ,we also prOVide funding • A1liant Energy will continue to invesl in energy 10 other importont partners: Iowa Stote University, the efficiency and renewable energy. University of Minnesoto, the Iowa Energy Center, the • A1lianl Energy will continue 10 fXlrticipote in University of Iowa, the towa Center lor Global and collaboralive efforts 10 furt~er the development Regional Environmental Research, and the Energy of technological advancements in emissions Center of Wisconsin. controls and generation performance. Our compony's parficiJXlflon lorgets 2001 R&D for Improving Environmental Performance Guiding Principles a diverse range of R&D areos related • Sufficient scientific evidence exists 10 support to improving GHG emissions reduction efforts. environmental • Technology solutions based on sound science performance - in facl, are critical and should be developed; these represent over continued research and demonstration studies 80 percent of the total must be supported. 2007 investment. • GHG reduction eflo

6 Extemal Research and Development 4.2 4.3 Dollars Spent 4

2

Millions______of dollors 0

SttIrte: FERe form 1 flflllgS 2005 2006 2007 • Air Quality - SUPpOIt for ongoing development of state regulations. Additional pending and anticipated air quality modeling and health risk assessment tools. regulotions further bolster this need. These evoluotion tools ore being opplied to beNer We accept that there will always be uncertainty with inform regulatory efforts by EPA and slate agencies in resped 10 various air quality rules and regulations, os the implementation of scientifically sound air quality these ore periodicolly updoted or chonged I:ry federol management plans that balance environmental and state authorities. However, ou'r company believes it protection with achievement of cost-effective is important to continue implementing our plans due to compliance. the lengthy and complex sequence of activities needed • Emissians Contral Technology - Funding to install air emissions controls. Submitting environmental of research· on advanced air pollution control permits, receiving regulatory approvals, developing technologies for SO" NO" porticulote ond mercury site-specific engineering deSigns, procuring equipment, emissions. This research provides engineering completing project construction and testing performance evaluations of performance and cost assessments are among the activities needed. of technologies that control multiple pollutants in on integrated system. Funding also supports studies Mercury emissions monitoring to help power plant operators optimize system and contral program design, maintenance practices, instrumentotion and Since the summer of 2006, Alliant Energy has instolled monitoring. 14 mercury continuous emissions monitors at our cool~ • Land and Water - A variety of environmental fired power plants. These monitors ore now being projects to reduce impacts to land and water including certified according to EPA gUidelines. site remediation and fish protection. Our company olso installed its first mercury emission control 01 fhe Edgewater Generating Station Unit 5. • Energy Efficiency and Renewables - The compony conducted pilot testing of on Activoted Research related to dynamic energy management Corban Injection (ACI) system during the first quarter of as well as broader initiatives to support technology 2008 ond pions further testing later in the yeor. An ACI development for energy efficie"ncy and ren€Vv'Oble system injects finely ground activated corban lsimilar to resources. powdered charcoalj into the exhaust gases coming out o t e 6Oile"'r~o~n~dr------CLEAN AIR COMPLIANCE collecting it in PROGRAM PROGRESS on electrostatic Alliant Energy initiated the Clean Air Compliance " precipitator Progrom ICACPI in 2006 to implement plans to (ESP!. an inslall additional air emissions controls and monitoring emissions Activated equipment at our company's electric generating units control device carbon sample. to reduce nitrogen oxide (No,!. sulfur dioxide 150,1 that captures Ay and mercury IHgl emissions. The need to decrease air osh and other emissions and enhance our ability to measure them particles in the comes from a number of recently enacted federal and exhaust gases. The mercury is Feeder room that transfers activated adsorbed on carbon from storage silo to injection the surface of manifold. the activoted carbon particles" and collected olong with them. The short-term test results showed that the ACI system reduced mercury emissions by 40 percent to 70 percent. Longer-term testing is needed to optimize the system, determine sustainable effectiveness, and understand other impocts including how the ACI system changes the fly osh collected in the ESP. In this system, the activoted carbon, mercury and fly osh are mixed together, potentially eliminating our ability to re-use the fly ash and instead reqUiring us to dispose of it in a landfill. o

Cunently, Ihe concrete industry retJ5eS much of the ~ ash generated at our plants. In 2007, our company produced 294,000 Ions of fly ash for beneficial re-uS8as a replacement for cement in the production of concrete. To put this in perspective, it is equivalent 10

a volume of aver seven million cubic feel, or enough 10 CACP grounclbreoking cd the Lansing Generating Station. From left to CCNera footbalilieid more than 175 leet deep. right: Hank Sangster (Alliant Energy·Lansing Generating Statian Plant Every unit of Ay ash used by the concrete industry is Manager), Dan Hammel (President-Building Trades Council-Dubuque), Lennie Burke (Allamakee County Board of Supervisors), Wendell Bell one less unit senl to a landfill. Fly ash used in concrete (Chief Executive Officer of Enerfab), Don Peters (Lansing City Council as a replacement for cemenl saves money for large Member), Mark rteman (Iowa State Senator), Tom Aller (Alliant E~rgy public and private conslrudion proiects requiring -President, Intentote Power and Light Company), Dale W~rs (A1bant Energy-Vice President, Construdion), James Dougherty (PreSident- . concrete. II also reduces greenhouse gas emissions, Babcock Power Environmental Inc.), Tim Bennington (Alliant Energy- because it avoids the production of portland cemenl Vice President Business Development, RMT) and Paul Mannion IAlliant powder, a very energy-intensive process that emits Energy-Senior Project Director, ConstnJmon). approximately one Ion of CO2 for every ton of cemenl produced, Groundbreaking for Lansing SCR project The concrete industry has guidelines on how much In May 2008, Alliant Energy broke ground on its corbon con be in the Ry ash, before it becomes largest CACP project to dote, installation of a selective unacceptable for use as a replacement for cement. catalytic reduction ISCRI unit and low NO, burners, at Allionl Energy will canduct additional ACI pilat tesling the lonsing Generating Station Unit 4, a 275 MW cool- in 2008 to determine whether there is a level of ACI fired unit located in lansing, Iowa. When complete, we that can achieve both long-ferm mercury emissions expect NO, emissions to drop by roughly 90 percenl, reductions, while also maintaining a fly ash quality that or more thon 3,000 tons each year. will meel the industry's standard as a replacement for A SCR unit is an air pollution control technology that cement. reduces NOx emissions in the exhausl 99S stream. The One 01 the moiar challenges facing;lh~e~CA;;;;~C;P;;r_~_I--l&!l.!!!!!!..!~~~~I~~~~~!QSt:C==~SCR unit has two sloges. In the first stage, ammonia _ ------'pn;riCog;ooroJrmiiT"Sllithiee'llrcrolinlSslfer of"leOinology from one unll is injecled into the exhausl gas stream. In the second to another. Air emissions control technologies must stage, the exhaust gases enter the SCR unit. The SCR be customized for each boiler because performance unit consists af layers of cotalyst that enhance the depends on boiler deSign, air flow and size as well chemical reaction belween the ammonia and NOx as available space. No lwo of our units' ooilers are forming nitrogen and water. This is very similar to hQIAI exactly alike, so techniques used in one boil~r may the catalytic converter on be less effective in another. This is especially true for your car vvOfks; havveve~ ACI systems where effectiveness depends on how long this catalytic converfer is the activated carbon is in contact with the exhaust gas the size of a house. before it is captured by the ESP.Spurred on by the low NO, burners success at the Edgewater Generating Station, we are control the fuel and air now planning tests of ACI systems at other units in our mixing and lower the company's fleet. temperature 01 vvhich combustion occurs, redUCing the production James DOugherty of NO, at its source. Aetlvaled Carbon Injection (ACII Process (President-Babcock Power Environmental Inc.) presents lower amounts of NOx s_...... Plant plan. for the Lansing CACP produced means less lnjoctlonof projed. NO, for the SCR to Cctbon Sotbant remove. This proiect is expected to cost $85 million. 8eyond the significant redudions in NO< emissions, it will also help the local economy by prCNiding construction jobs in the area. The project is expected to require a I peak workforce of 100 workers with a tOfal number of labor hours of approximately 250,000. Our company -....- expects this proiect to be operational by 2010. 29 '.i:io..~ ,~~- :---~. ,.

Phytoremediatian praject (Fand du Lac, Wiscansin) WPl is implementing on innovative approach to soil and groundwater clean up at the Fond du Lac MGP site. Phyforemediation is a process that uses plants to remove, transfer, stabilize, or destroy contaminants in soil, sediment, and groundwaler. This technology offers many advantages over conventional remediation options. In 2007, WPL began the lirst of 0 two-phase phyforemediotion project to determine the viability of utilizing this technol- at the site. In NlO 2007 a roximatel 600 hybrid poplar and willow trees were plonted on the appropriate uses sile. The trees have high water uptake, are easy to grow, for the reclaimed land. tolerate high contaminant levels, sequester atmospheric Stateand carbon and are very effective in capturing contamin"ants. The main objective for the phytoremedialion system is to Federal agencies absorb groundwater and degrade contaminants in both soil issue "No and groundwater. These contaminants include benzene Further Action" or "Regulatory toluene, ethyl benzene, polynuclear aromatics and cyanide. The trees do not accumulate the contaminants, but rather they Closure- letters, breakdown and metabolize them in the phytoremediolion which means the process. site no longer Closo·up of willow and poplar The initial phase was successful with a majority of the trees planted for Fond du Lac MGP poses a threat to planted trees surviving. The second phase of the project phytoremodiation project. human health or will completed in 2008. When the entire project is the environment. be implemented approximately 2,000 trees on the three- The site is acre site will remove 10,000 to 12,000 gollans per day \j,en released horn furlj,er remedialion Of monilOl'ing of water through evapotranspiration, evaporation and requirements. In 2007, IPl received regulatory closure transpiration caused by their presence. On an annual for one additional site locoted in Chariton lowa- basis, this is equivalent to 2.7 million gallons per year that increasing Alliant Energy's total closed Site'count to 15. will be treated via phyforemediotion. We anticipate the phytoremediation system will replace the current groundwater pump and treat system. We believe this will lower costs be more beneficial to the environment, and hasten the si;e toward closure with regulatory agencies.

30 o

Alliant Energy's employees are stewards of nature Alliant Energy employees donated their time at the lansing Preserve as port of on ongoing initiative to restore and keep the 2000cre properly healthy for generations 10 come. The 'vVOrkat the Lansing Preserve llocoted along Iowa's Mississippi River bluffsJ included pulling garlic mustard, an invasive species that can destroy woOOs and fields, and putting protective sleeves around nearly 500 seedling trees. While working the employees were able to enjoy the fore nalural beau1y of lhe Mississippi River bluffs and the diverse habitats thaI exist there. N. one volunteer noted, "There is no better way to understond the value of the land than 10 spend a day working it:

Alliant Energy employees pull garlic mustard, an invasive specie" at the Lansing Preserve.

IV\errimac Preserve is located near Devil's Lake Slate Park and lake Wisconsin. The preserves at Lansing and tv\errimac are owned and managed by Riverland Conservcncy, a charitable,

,I" nan-profit organization whose mission is conservation, protection, and restoration of the lands, waters, and nolural communities that comprise our environmental heritage. Riverlond Conservancy prOVides environmental stewardship to over 2000 acres in Iowa and Wisconsin. Riverland Conservancy was created in 1997 by Alliant Energy and has received generous donations of land and eqUipment from Alliant Energy and its subsidiaries.

Alliont Energy employee. place protecti .... sleeves around tree seedling. at the lansing Preserve.

Allionl Energy volunteers also spent a day at the Iv\errimac Preserve culfing and burning brush as port of on Oak savanna restoration project. Low intensily, prescribed burning is a management tool for invasive plant control. These efforts are conducted follOWing a carefully defined controlled burn plan fhat assures fires are set in a responsible and safe manner. Riverland Conservancy has been working to restore Oak savanna habitat by removing weedy trees and brush such as box elder, buckthorn, and sumac. These areas are now becoming more savanna like with greater grass Alliant Energy employees assist with prescribed buming as part of an Oak savanna restoration project crt the and lower shrub and lower tree representation. The Merrimac Preserve.

31 Generation Emissions - Total Mass: G(!neration Emissions - Rates: The generation emissions - total mass values The generation emissions - rales represent the overage represent the emissions released in the production of emissions for the gross electrical energy generaled in a given electrical energy in a given year from all fossiHuel year from a selected group of fossjj.fuel generating units. This generating units as used in our emissions planning selected group of unils includes all A1liant Energy O'vVflership model. The emissions planning model includes Alliont portions of fassil-fuel generating units that are required to have Energy ownership portions of electric generating units Continuous Emission N'oniloring Systems (CEMSI installed. The with a design nameplale of 25 MW or greeler and generation emissions rotes are aggregate totals of the group. supports our company's efforts 10 comply with current They do not relate to any specific generating unit or any Single and future air quality regulations. type of fossil fuel. A1lionl Energy continues to implement pions 10 install CO2, 502 and NOx generation emissions rates dropped emissions controls and monitoring equipment throughout in 2005 due to increased use of natural gas as a fuel source, our fleet of power plants. The projected total moss resulting from a full year of commercial operation of the natural emissions for 2015 represent only a general estimate gas·fueled Emery Generating Slotion. In oddilion, NOx of future emissions and will change based upon air generation emissions roles continue to decline primarily from pollution controls ultimately installed, realized emission the use of 5martburno technology and other modifications at

control performance and the actual amount of energy more of the coo Hired generating units. The increase in 502 produced from each generating unit in any given year. emissions is due to increased concentrations of the trace element sulfur within the cool burned in the electric power 100 generation units, including contributions from supplemental fuels Sulfur Dioxide 87.9 such as petroleum coke. (SO,) 80 Emissions 51.3 60 2400 40 Average Carbon 2276 2279 C 20 2300 Dioxide (C02) Thousands of tons Emissions 2216 0 2190 2179 2007 201 2200 Ibs./gfOSS megowoll-hour 2100 40 Nitrogen Oxides 2003 2004 2005 2006 2007 29.2 (NO ) x 30 9.0 Emissions Average 8.6 16.7 20 Sulfur Dioxide 8.5 (SO,) 8.0 10 Emissions 7.8 8.0 Thousands of IOns 0 7.5 Ibs./groS! 2007 megavvo!t"hoor 7.0 2003 200. 2005 2006 2007 15 Mercury (Hg) 12.7 Average Emissions 10 Nitrogen 3.9 ... Oxides (NOx) 5.7 S 3.8 Emissions 3.8 '5 2.9 ~ 2.6 3.2 2.6 Hundreds of pounds Ibs./gfOSS • 0 megavvo!~hour 2.0 2007 2015 2003 2004 2005 2006 2007

Calculated emissions rates use EPA·accepted Continuous Emission Monitoring Systems total emissions reported to EPA Clean Air Markets Division (OMb) on EPA Electronic Data Reports. These figures Include only the AllIant Energy ownership portion of generating units that report emissions to the EPA (AMb. Remaining percentages owned by others are not Included in this rate calculation. 32 Toxic Release Inventory: Alliant Energy Electric Generating Facilities The primary fuel used by A1lianl Energy Reported Toxic Release Inventory for electric fXJY'Iergeneration is coal, and (Thou""",, of poordsl similar to any soils found on or below the Chemical 2005 2006 2007 surface of the Earth, the coal contains small trace amounts of other various chemicals. Antimony compounds <1 <1 <1 During the cool combustion process, these Arsen ic compoUnds 2 <1 <1 trace chemicals form small amounts of toxic compounds which are released inlo Barium compounds 644 696 590 the air or water, or contained within solid Chromium compounds <1 wastes sent to landfills or used elsewhere. 6 2 In a typical year, a generating unit burns a Copper compounds 20 21 23 very large amount of coal, and these trace lead compounds 11 toxic compounds con add up 10 reportable 10 12 amounts. Manganese compounds 71 56 66 The U.S. Environmental Protection Agency requires facilities including cool-fueled utility Mercury compounds 2 2 2 generation plants 10 annually report the Nickel compounds 9 41 39 amounts of these trace chemical compounds released under Ihe federal Toxic Release Vanadium compounds 65 134 131 Invenlory [TRII progrom. linc compounds 373 454 485 The amount of these trace chemical compounds is not measured directly. Rather, Hydrochloric acid 460 510 482 estimated amounts are calculated based on HydrbAuoric acid 512 506 565 chemical analysis of waste stream somples, or by using EPA-opproved, science-bosed Sulfuric acid 844 715 733 emissions factors. Ammonia 88 28 36 As shown in the table, year-toyear variance is observed for individual toxic Other hydrocarbons· <1 <1 compounds. Factors contributing to this Total 3,108 3,178 3,169 variance include: • coal is nol a homogenous subslance; SooIte: ArnJaI Form R submlued 10 the us. EnvilOlWlletltall'rolection Agercy Iftler l~ ToxicFIUlase lnYem/T1 Program of lhe Emergent;' Protection ftrG CommJnity Right-To-Know Act. the concentrations of trace chemicals in 'Oilier hydrocarbons includes: gerut.:ghi)perylene, Oioxin and furans, NapJrth.1llltl1, and Potvcvclic coal deposits con vary significantly from Arorna1ic~. a single mine, and even more so from different mines; • new emissions rate dato and calculation methodologies are continuously being developed bosed on better technology and measurement science which, in turn, results in changes to the emission factors used; ond • new processes including the addition of new air emissions control technology can result in changes in the combustion chemistry.

33 CCP Utilization: Reportable Spills Cool combustion products ICCPI include fly ash, In 2007, 78 releases of hazardous material or spills boHom ash, slog and other byproducts generated ham were reported 10 governmental agencies. The majorily the dilect combustion ol cool. a1these spills are caused by equipment failures/leaks, In 2007, AJliont Energy utility componies were able vehicle accidents, and electrical equipment damaged to benefiCially use over 550,000 tons of CCP, thereby by high winds and flying debris during storm actiVity. diverting il from being placed in a landfill as a waste All spills were cleaned up, including contamination of material. any real property and the contaminated sails/debris Over one-half of the CCP use is as a cement properly disposed. replacement in ready-rnix concrete with the remainder used in construction/fill applicotions and as on ------".100 Reportable aggregate in the manufacture of asphalt. The utilization 79 78 Spills 80 rate varies from year to year due to variation in local 64 construction activity and changes in approved uses for CCP. The utilization rale far the AJliont Energy utility companies continues to be significantly above the 20 U.S. industry average of approximately 40 percenf Number of spills as rep:>rled by the American Coal Ash Association for Source: Alliant Eoergv recooIs yealS 2005 and 2006. 2005 2006 2007

------=-100 Coal 77"4 Wind Energy Sources Combustion 69% A1lionl Energy wind energy sources include wind Products generation purchased under long-term agreements with Utilization Rate third party suppliers.

871 872 1000 Source: AUlant Energy recordJ and 2005 2006 2007 Wind Energy 816 Amenta" Coal Ash Associa<.ion Sources 800 600 400

Thousands of 200 megawatT-hours 0 2005 2006 2007

34 THE ENERGY TO PERFORM: ALLIANT ENERGY'S SUCCESS IN PROMOTING ENERGY EFFICIENCY /;>-~~ Alliont Energy. we have on environmental responsibility

10 our customers, shareowners and the planet. We

must deliver cost-effective energy that's there when our f\ 1 customers need it and do so in on environmentally resfXJnsible I manner. Every doy, we work with OUf customers to implement energy-efficient practices and technologies 10 reduce energy

usage, one kilowatt-hour and one lharm 01 a lime. Our energy-efficiency efforts ploy a key role in meeting our customers' future energy needs while keeping our company

profitable. Our current energy-efficiency portfolio includes a mix of products and programs Icomplete listing on page I 1 of this reportllargeled at reducing peak demand and totol energy usage. These offerings create an opportunity for all customers ------tclorsosm''''e·ellelgyOlld-do-some-good-fol001plullet-Ironfvworb------~------when everyone does their port - which is why we promote our energyefficiency programs through a robust variety of outreach

effo,ts and incentives. By continually increasing our energy-efficiency efforts and i ___II _I adding renewable energy sources like wind and biomass to our

generation mix, AIlianl Energy is poised to reduce greenhouse gas IGHGI emissions while meeting shareowner expectalions. Inspired by our customers' Willingness fa invest in energy efficiency, we continually look for new ways to improve [Jt__1 our programs. What are the cutting-edge energy-efficient , ..------~------technologies? What measures are capturing the interest of

our cuslomers? We constantly listen and observe 10 keep our programs successful. ((~ As we look ahead, we are eager to FXJrtnerwith regulators 10 I L J L -, _ ~ ~~______J develop innovative energy-efficiency programs and approaches that encouroge customer participation and shareowner reword.

Allionl Energy has been offering energyefficiency programs

for more than 20 years, and we are committed 10 growing our

offerings. V\lorking together, we can make it happen.

'~ 35 INSPIRED GROWTH Figure 1 With each fXJssing year, our energyefficiency programs are being embraced by a grmving number Natural Gas saved through of customers. Since 1993, A1lionl Energy's energy- Alliant Energy programs 1993-2013 efficiency programs hove saved 2.77 million megoVolOtt- hours IMWh} 01 electricity and 79.1 million Iherms 01 natural gas. As each year posses, our success grows. In 2007, our energyefficiency programs resulted in new, additional sovings 01 more lhon 200,000 MWh of electricity and olmost seven million therms of natural gas. from 2006 10 2007, we are proud 10 report thai the omounl 01 energy soved more lhon doubled in select programs. Through our 2007 energy sovings, we prevented the release of enough caroon dioxide • Ac!ool Energy Saved • Prajeclec Energy Savec to environmentalty equal the carbon dioxide release of more than 21 million gallons 01 gasoline lsource; EPA Greenhouse Gas Equivalencies Calculator 01 WNVV.epo. Figure 2 gOY/ c1eonenergy / energyfesources/ Electricity saved through In 2007, we saved calculator.hlmll. You can view a Alliant Energy programs 1993-2013 complete listing of Alliant Energy's enough energy to energy-efficiency programs on page environmentolly 1 1 of Ihis report. equal 70 million ~nual posl and forecasted tree seedlings grown saVings from A1lion! Energy's energy ~t for 10 years. conservation and efficiency programs $our'ccn EPA Greenhouse Gos are summarized in Figure 1 and ] Equfvolendes Calcukrtw at Figure 2. The figures depict the .. _.epa.gov/cloanenergyl energy-resources/ calculator.html incremental energy saVings that are the result of new actions by our • Actuol Energy Saved • Prajeclec Energy Saved customers and do nol account for the cumulative effect over the life expeclancy of the different types of actions. For example, a new adion such as installing higftOeHiciency light bulbs will save energy each year during the life expectancy oIlhe lighl bulbs. The benefits of the incremental energy saVings actions summarized In figures 1 and 2 will accumulote in future Cumulative Electric Cumulative Natural Gas years depending on the life expectancy of Ihe actions. Megawatt-hours Saved 1berms Saved The data tn ligures I and 2 do not include energy savings from customer interruptible or directlood control Residential 31,492 560,923 programs. for 2007, A1lionl Energy hod contracts with Commercial 76,4D5 1,143,455 business customers to interrupt 476 megawatts IMWI allood, as well as having 35 MW 01 residentiallood Industrial 90,696 657,403 particip::lting in appliance cycling programs. Total 199,595 3,381,781 In addition, starting in 200 1, the energy savings for some Wisconsin programs became IXlrt of the Source: Focus on Energy. Includes esllma1edcumulalive energy savingsachieved for 01,.1'CUS10mersfrom all projec!s implemenled by FoE P09mm IramJuly 2001 - consolidated Wisconsin Focus on Energy IFoEI program me December 2007. August 15, 2008. thai is managed and tracked separately by the Stale of Wisconsin. Results from the FoE programs are summarized in Table 1, and include estimated energy Energy efficiency plays on integral role in Alliant Energy's savings achieved by our customers from projects generation planning. The forecasted savings expectations included implemented by the program as 01June 30, 2007. Prior in figures 1 and 2, are embedded in the resource plans which to the move of Wisconsin programs to FoE, the Public suppo

36 Tobie 2 A1liant Energy continues active involvement in state initiatives induding the Wisconsin Task Force on Accumulated Savings Impacts Global Warming and lo.va Climate Change Advisory . of Energy Efficiency Programs in 2013 Council. Both efforts include considerable discussion surrounding the potential role for energy efficiency and MWh Tons CO, Demand Side Iv\anagement (DSMl in redUCing GHG emissions. Our company supports these stale and IPI. 1.977.028 2.570.135 regional initiatives. It is our belief that investments in energy efficiency and renewable energy sources are WPl 1.987.871 2.325.809 the best and least expensive methods to decrease GHG Amant Enargy 3.964.899 4,895,945 emissions that can be readily implemented today.

Wisconsin Task Force on Global Wanning The figures for WPL include the expected savings horn FoE programs which are lunded by WPl for In April 01 2007, Governor Doyle signed Executive its customers. When energyefficient eqUipment is Order 191 bringing together a praminenl and installed, lhe energy saved continues to accumulate until diverse group of key Wisconsin business, industry, the equipment is no longer in service. Ailiant Energy government, energy and environmentolleoders to assume~ a 15-year average service life for installed create a Task Farce an Global Warming [Task Forcel. equipment to estimate total energy savings. After examining the effects 01ond solutions 10 globel worming in Wisconsin, the Task Force has created a state pion of action to reduce Wisconsin's GHG Figure 3 emissions. The Department 01 Naturel Resources IDNRI DSM Energy Savings in Relation to Costs and Ihe PSCW provided slalf supparl 10 Ihe Task Force. ., AIliant Energy executives Barbaro Swan, President • ...... Wisconsin Power and lighl Company, and Kathy lipp, J .... Chief EnVironmental OffIcer, were members of the Task &~ .... Force representing Afliant Energy's challenges and j] ..... viewpoints. In its final reporl, the Task Force agreed on a group of interim torgets to reduce GHG emissions ~ ""$lUll J; , SlI.111 and includes 50 actionable fX>licy recommendations, • .... some of which were included in the. Task Force's early recommendations. A1liont Energy hOs been adively engoged in various cases opened by the PSCW which

- Matlin , .. lap 1D.7I ••••• Matliall Cost 1Sll.11I will explore policy recommendations related to utility • DIM EJmvy S.vlap III • ." 01Ill.. • eo.t ol Anl Vaa. Ermgy S.. hap (0W1lI rate making, as well as on enhanced statewide energy- efficiency strategy.

• American Council for an Energy Efficient Economy (ACEEEJ: Exemplary Recognition for agricultural programs in Iowa & Minnesota (2007) • ACEEE: Hono~able Mention for residential new home construction, joint~ with MidAmerican Energy 120071 • U.S.EPAENERGYSTAR': leadership in Housing Award (20071 • Midwest Energy Efficiency Alliance IMEEAI: Inspiring Efficiency Impact Award for Shared Savings pro9ram 12006) • U.S.EPAENERGYSTAR: Excellence in Energy Efficiency and Environmental Education {2006} • U.S.EPAENERGYSTAR: Excellence in Outreach for Change a light. Change the World Campaign 120061 • U.S.EPAENERGYSTAR; Outstanding Achievement Award for New Homes Program 120061 • MEEA; Inspiring Efficiency Marketin9 Award for Agricuitural Audit program 120051

37 Iowa Climate Change Advisory Council This energy-efficiency planning process provides In April 2007, Governor Culver signed Senate file A1liant Energy with Ihe Aexibilily 10 address regulalary ( 485, a bill relaledlo GHG emissions. Part of Ihis bill uncertainly, technology improvements and other created the Iowa Climate Change Advisory Council changing business conditions. The end result is a set IICCACI. ICCAe's charge is 10 submit a proposol to of comprehensive, multidimensional, multistate energy- Ihe Governor and General Assembly Ihal addresses efficiency plans thaI deliver strong, economicalty driven policies, cost-effective strategies, and multiple scenarios . energy savings fOf today and tomorrow. designed 10 reduce slatewide GHG emissions. Five subcommittees have been established 10 develop Iowa policy and strategy recommendations supportive ci the 2009 may bring big changes 10 IP~s energy- ICCAC charge. They include: Energy EHiciency and efficiency programs in Iowa. In April 2008, IPlliled on Conservation IEECI; Clean and Renewable Energy; ambitious Energy EHiciency Plan IEEP) for 2009-2013 Transportation and Land Use EffiCiency; Agriculture, with the Iowa Utilities Board IIUB). The plan includes a Forestry, and Waste fv'\£lnagement; and Cross· spending commitment of approximately $400 million Cutting Issues, Ihe latter 01 which will look 01 haw the. far electriC and nalural gas energyefflciency programs subcommittees' recommendations fit together and will for reSidential, agricultural, commercial and industrial consider publiC outreach and education strategies. customers in Iowa over Ihe nexi five years. Under the A1liant Energy is on active participant in a number of plan, many of the current cash rebale and energy audit the ICCAC subcommittees, including the EEe. Notably, programs would continue, as well as our Performance Ihe policy options adapled by the ICCAe include a Contracting program. In addition, the proposed plan recommendation thai the State of Iowa implement a includes: system of financial incentives for utilities 10 implement • Fiveyear cumulative electric energy savings goals of energy<>fficiency programs. As naled by the 836 gigawatt hours, conserving enough energy 10 EEC, incentives 10 utilities 10 induce superior utility power approximately 88,CXlO homes lor one year; performance in implementing DSfv\ programs can take a • Fiveyeor cumulative natural gas energy savings goals variety of forms, including decoupling mechanisms that of nearfy 15.4 million therms, conserving enough separate revenues from volumes of gas and electricity, energy to serve more than 19,000 homes with natural and earning financial returns on energyefficiency gas for one year; expenditures to name a few. As the EEC also fX)inled ( out, implementation of incentives to utilities will likely • Five years of inslalling energy-effrclent equipment reqUire legislative action. Alliant Energy supports and measures will save 12 million Ions of corbon policies that provide an incentive for the company and dioxide, 36,CXlO tons of sulfur dioxide, 22,CXlO tons ------ttlfnrrcreowflefs 10plortlOleenergveffitlencyondwilt- ~oitrOgefHO>

38 and low-interest financing, while shoreowners are ( Go Green Whole-house rewarded with a relurn on their invested capitol. /is Energy-efficiency Pilot Program an added incenlive in Minnesota, utility subsidiary 11'1. is eligible for performance incentives if spending and energy savings goals are met. This is on opportunity for ffering a whole-house energy-efficiencyprogramhas been in shoreowners to earn financial returns for Alliont Energy our plansfor sometime but after the catastrophicfloodingin O defivering energy-efficiency results. Iowa, we decided to roll out the program earty. The Go Green Palo program(rollingout first in Palo, Iowa, with other communitiesto Wisconsin follow) is a whole-houseapproachto energy-efficient rebuilding. The programoffers an energy-efficient rebuildingplan and advice, In 2CXJ9, we plan 10 continue 10 help our Wisconsin as well as accessto enhancedenergy~efficiencycashrebates and customers become everwiser energy consumers through muchmore. IPl will serve as a guidinginfluencethroughoutthe proven programs such as Shared Savings and working rebuildingprocess,helpinghomeownersconnectwith energy-efficient with !he slole's programs administered by foE. The contractorsand materials.After the work in the home has been proposed budget for Shared Savings is nearly $ 14.4 completed,we follow-up with comprehensivehome performance million 10 cover program costs and a buy-down incentive testing, so homeownerscan see firsthandhow their househas been to leverage $40 million in financing energy-efficiency transformedby energyefficiency. praiects. These prajecls are targeted to save 70 million kilowatt-hours and 1.2 million therms, resulting in GHG emission reductions of 67,(X)() Ions of caroon dioxide, 226 tans of sulfur dioxide, 100 tans of ni~ogen oxides Minnesota and two tons of mercury annually for the life althe Until the end of 2009, IPLwill continue to follow equipment. the energy-efficiency rules in-place prior to The Next Unlike Iowa and Minnesota where electric and nalural Generation Act of 2007. New rules are currently being gas utilities administer energyefficiency programs, drafied in accordance wi!h the act. They will go into Wisconsin law requires utilities 10 fund energy-efficiency effect for program yecr 2010. programs and services that are administered through The old rules reqUire spending minimums on energy a statewide program. Under the statewide approach, efficiency of 1.5 percent of electric utility revenue and Wisconsin Energy Conservation Corporation (WECCj 0.5 percent of gas utility revenue. The proFX'sed new and the Energy Center of Wisconsin were selected 10 rules reqUire 1.5 percent energy impoct savings oosed develop and administer the energyefficiency programs. on the last rnree year overage, weather normalized WECC markets the energyefficiency programs through sales for both electric and gas. There.~a;r;:e,:sam;;;:e-==__ I-~~---;==-;-CfoE. "" __ -''''T. __=-__ ''-- _ caveats; tor instance, electric utility infrastructure costs The PSCW is responsible for oversight of Ihe energy thai save line losses can count, as well as energy efficiency programs. funding by electric and natural gas savings from cooe and standard changes. New rules utililie5 is currently 1.2 percent of annual electric and are expected to be final the first quarter of 2009 lor gas sales revenue. WPL contributes approximately $15 program year 2010 implementation. million annually 10 the statewide fund. IPLsConservation Improvemenl Program ICIPI identifies programs that not only reduce customers' Rewarding energy efficiency utility bills, but also promotes awareness of energy A1lianl Energy earns incentives through its Shared conservation and its posilive environmental impad. SaVings program in Wisconsin and through IPl's ClP in To promote conservation with residential customers, Minnesota. While we receive recovery of costs for IPl's IPI.offers cash rebates for ENERGY STAR measures, EEP in Iowa, we currently do not receive incentives for provides home audits to identify practical energy-saving achieving successful outcomes. We believe, 'as does the opportunities, and assists low-income customers bt . EEC subcamminee of !he ICCAC, that !he implementation providing them with educational materials and funding of utility incentives will require legislation in Iowa. The towards the purchase and installation of efficiency ICCAC is set to issue its fInal report later this year. We measures. Prescriptive rebates are also available to are encouraged by !he discussion of the ICCAC and commercial, industrial and agricultural customers who support this direction. A1liant Energy will work actively purchase high-efficiency eqUipment. with olher stakeholders and will support appropriate Commercial and industrial customers have the legislative changes that provide for incentives 10 additional opportunity to implement a Shared Savings ulilitie5 to promote cost-effective energy efficiency and project, in which IPL provides a detailed energy conservation, both in Ihe states we do business and at analysis and makes recommendations for imprQ\fement. the federal level. When energyefficient measures are installed, the Additionally, A1liant Energy is actively pursuing o!her customer refXlYs lPL from their monthly energy savings opportunities for the·company and ils customers and over 0 specified contracl lerm, ralher rhan pay for the shoreowners associated with the promotion of energy- eqUipment and installation costs up-front. Customers efficiency measures and customer-owned investment in enjoy the benefits of improved operational efficiency renewable generation.

39 Advanced Metering Infrastrvcture (AMI) itsvaluntary energyeffidency program funding. With the muliiyeor M!'J proiect, A1liontEnergy will If opproved, fixed costs would be removed from ( deploy technology that remotely collects energy usage volumetric charges, meaning WPl and its shareowners information, warehouses it in a data management would not be finonciolly penalized when energy- system which interfaces with customer billing, outage efficiency programs are successful in redUCing energy and other systems. It is faster and less expensive sales and emissions. The energyefficiency programs than traditional methods of meter management. Other 'WOuldbe administered by FoE, via its existing program, benefits include: Targeled Horne Performonce with ENERGY STAR,ond two new programs, Multifamily Efficiency Improvements • More limely billing; and Small Business Audil ond Rebate program. • Remote customer access for account informotion WPL expects on order in the pending rate case land lenergy used); the decoupling proposalsllale in the fourth quarter of • Enables customers to take active role in energy ~ge; 2008 with chonges implemented at Ihe beginning 01 • Improved outage management and customer 2009. communication; We are encouraged that the current rate regulatory system in lowo does prOVide fleXibility in designing utility • Remote utility access for account changes lfurn-ons, rate structuresthat will remove fXltentiol disincentives to turnoffsl; and, improving customers' energy efficiency. Although these • Detection of meter tampering and energy theft. pricing mechanisms are not widely used in the state to A1liontEnergy's M!'J proiect has been opproved dote, the IU8 has indicated a Willingness to consider in Wisconsin, and installation has already begun in decoupling proposals. IPLwill be working with the IU8, Beaver Dam, Wisconsin. Once completed, we will be and other stakeholders in the state to evaluate our own able to analyze our successes prior 10 fulldeployment proposals for decoupling or other pricing mechanisms in through WPLS service lerritory. IPLolsa has pions 10 future rate cases. instoll AMI throughout its lerrilory, pending regulatory approval. As port of its pending rate case, WPL has Renewable Resource (RR) progrom proposed a new electric lime-of-day rate aplion for To encourage commercial, industrial and agricultural residential customers, made possible by the extensive customers to invest in renewable energy, WPl is also energy usage informallon that will now be available. proposing a program to finance renevvoble projects. Allionl Energy's M!'J project is detailed in fullon poges Similar 10 the Shared Savings program, the proposed I land 12 of this report. RR program will concentrate on providing capitol for cuslomers' renewable resource projects. Financing ------IRtite-de-couplirfg------f--"oonm"o=unfs wllt15ellmued to flvellmes fne annuol"e"'n"e"rgy..------In Wisconsin, WPl has proposed an electric savings based on the customer's billing rate. To qualify, decoupling mechanism. With traditional pricing technologies must fit within a ten-year payback period, approoches, utilities ore discouraged from purSUing such as geothermal, solar hot water, solar electric, odivities which result in decreasing sales of energy. Wind, biogas digestion and biomass combustion. The lost energy sales that result from energyefficiency In its pending role case, WPl has requested $1 .5 and conservation programs have the potential 10 erode million annually for these renewable programs in 2009 a utility'scost recovery and earnings. In short, this and 2010. WPL expects to hear the PSCW's decision means tnat utilities could actually experience financial regarding the proposed RRprogram late in the fourth loss when energyefficiency and conservallon efforts quarter of 2008. This proposal is also featured on succeed. poge 22 of this report. For electric service, WPL has proposed a decoupling iniliative that is linked directfy to WPl's success at Conclusion increasing energy conservation through its Shared Alliant Energy's environmental core value emphasizes Savings program. Under our prOP"SOl, Ihe utilitywill the company's commitmenl 10 a cleon, safe and not be financially penolized when achieving successful healthy environment. stowing the demand for energy energy-efficiency and conservation gools. However, and improving its efficient use by customers con make If specific energyefficlency goals ore not met, any meaningful reductions in GHG emissions. Alliant unused energyefficiency dollars (arlginally collected Energy's energyefflciency programs can increase the from rotepoyers Ihrough their ulilitybillsl would be adoption of energy-efficient eqUipment by our customers, returned to ratepayers. In addition, WPl is proposing which have both positive environmental and financial a performance incentive for significantly exceeding the impacts. Alliont Energy recognizes these impacts conservallon target. and closely linksour business objective of generating For natural gas service, WPL has proposed 0 stroigh. reliable, cost-effective energy, with our environmental fixed-variable rate for residential and small commercial responsibilities. customers. Under the proposal, WPL would increase

40 o

Amant Energy: Asia-Pacific Partnership W'WW,alliantenergv,com on Cleon Development & Climate: Amant Energy Environmental Report: www.asiapacificoartnershio.org/About.htm www.olliontenergx.com/docs/groups/public/ Cedar Rapids and Iowa City Railway Company documents/pub/p014410.hcsp (CRANDIC): Amant Energy Investor and SEC submittals: www.crandic.com/ www.alliontenergy.com/docs/groups/public/ Edison Electric Institute: documents/pub/p013587.hcsp www.eei.org/ Amant Energy Advance Metering Infrastructure Electric Power Reseorch Institute: (AMI): www.my.epri.com/ www.alliontenergv.com/docs/groups/public/ documents/pub/p016361.hcsp Energy Center of Wisconsin: www.ecw.org Alliant Energy Business Energy Star: Energy Conservation Programs: www.energystar.gov/ www.olliontenergy.com/docs/groups/public/ docu· ments/pub/p014421.hcsp Iowa Climate Change Advisory Council: W'IN'W. iadimotechange. us/ Alliant Energy Residential Energy Conservation Programs: Iowa Utilities Board: www.olliontenergy.com/docs/groups/public/ 'W'W'W.stafe.ie. us/iub/ documents/pub/pOl 4420.hcsp Leadership in Energy and Environmental Amant Energy Design (LEED)Green Building Rating System'"': www.usghc.org/ . Economic and Community Development: www.alllonfenergy.comlOocsZgroupslpUl5lic/ Midwest Energy Efficiency Alliance (MEEA): documents/pub/p014753.hcsp www.mwollionce.org/

Amant Energy Generation Plans: Minnesota Climate Change Advisory Group: www.olliantenergy.com/newgenerotion www.mndimotechonge.us/

Alliant Energy Regulatory Filings: Minnesota Public Utilities Commission: www.olliontenergy.com/docs/groups/public/ www.puc.stote.mn.us/ documents/pub/p015466.hcsp Public Service Commission of Wisconsin: Alliant Energy Renewable Energy Resources: www.psc.wi.gov/ www.olliontenergy.com/docs/groups/public/ Riverland Conservancy: documents/pub/p014404.hcsp www.riverlondconservancy.org/

Alliant Energy Second Nature Program: RMTWindConnect>: www.olliantenergy.com/secondnature www.rmtinc.com/public/windconnect.html

Alliant Energy Tree Planting Programs: Wisconsin Energy Conservation Corporation: www.ollicntenergy.com/docs/groups/public/ www.weccusa.ora documents/pub/p014415.hcsp Wisconsin Focus on Energy: WVoIW. focusonenergy.com/ American Council for an Energy-Efficient Economy (ACEEE): Wisconsin Govemor's Task Force on Global Wanning: www.aceee.org/ www.dnr.wi.gov/environmentprotect/gtfaw/

American Wind Energy Association: www.aweo.org/

41 o

ACI - Activated Carbon Injection Hg -Mercury

AMI - Advanced Meter Infrastructure HVAC - Heating, ventilation and air conditioning

AWEA - American Wind Energy Association IDNR - Iowa Deportment 01 Natural Resources

CAA - Clean Air Act IPL - Interstate Power and light

CAIR - Clean Air Interstate Rule LEED - Leadership in Energy and Environmental Design

CAMR - Clean Air Mercury Rule LS5 - Leon Six Sigma

CCP - Cool Combustion Products MGP - Manufactured Gas Piont

CEM - Continuous EmissionsMonitor MPCA - Minnesota Pollution Cankol Agency

CH4 - Methane MW-MegawoM

co. - Corbon Dioxide MWh - MegawaM-haur

DSM - Demand-side fv\anagement NAAQ5 - Notional Ambient Air Quality Standard

EE- Energy Efficiency NO. - Nitrogen Oxides

EEl - Edison Electric Institute PM - Particulate Matter

EMIS - Environmental Management Information System PRB - Powder River Basin

EMS - Environmental Management System psew - Public Service Commission of Wisconsin

ENH5 - Environmental, Nuclear, Health & Sofety 5CR - Selective Cata¥ic Reduction

EPA - U.S. Environmental Protection Agency SEe - Securities & Exchange Commission

EPRI - Electric Power Research Institute SO. - Sulfur Dioxide

ESP - Electrostatic Precipitator WDNR - Wisconsin Department of Natural Resources

GHG - Greenhouse Gas WPL - Wisconsin Power and light

42 hroughout this year's report, we have shared examples of our efforts to reduce Alliant Energy's percentage of United States' emissions Tair emissions. promote energy efficiency and use more renewable energy. We encourage you to examine your impact on the environment ...... • Usa the tools on this page to calculate your household's contribution to Alliant .- Energy's air emissions. learn to understand what the numbers mean, and check out a variety of ways you can reduce your energy Thousand of tons/year Tons/year -- consumption. Sullur Carbon dioxide dioxide (SO,I (CO,I ..-- ~ II U.S. other 3.500 13.600 3.59).500 B4 economic sectors ...... AI...... _...- 0.7% _....- Utility sector (minus 9,412 3.371 2.319.853 45.4 Alliant Energy) Alliant Energy sa 29 24.047 0.6 ...... Iwl_ ...... -"'...... Total U.S. 13.1lOII 17.1lO11 6_ 130 AIO ... t.rgyt Hg AlUaaI EafVfl CO2

References: 1.Jnjo.ed Sla:es eIrissioos leYels lor NO. and SO: tak.en lrom EPA 2007 M Emissicnl Tr

Calculating your household's contribution NOTE Average aMual home energy use is 9.200 kilowatt-hours (klNh) per yeal. One to Alliant Energy's emissions klNh is a measure of electricity used over time. For example, ten lOO-watt light bulbs. left on for one hour, would use one kWh of electricitv.

Alliant Energy's Total emissions 2007 emission rate (lbs/kWh) \Tons/Vear) So, 0.0080 X 9,200 • 2,000 - so, 0.04 0.0026 (average - (convert NO, 0.01 NO, - NO, 24 • - yearly home - 10 tons) CO, l.179 use in kWh) CO, 20.047 Co, 10.112 Hg g.1lOIIllOO3 HO OlJJlWfi Hg 0.0000

What are ""e emissions from my household? Your Alliant Energy bill lists your household's monthly energy use in kWh (see highlighted area on sample bill). To calculate your household's annual emissions, you'll need to add up your energy use for the past 12 months, or average your most recent bill. Plug that number into the equation in place of the 9,200 kWh, and multip!y it by the 2007 emission rates for each pollutant {above}. To more easily compare your household's emissions to the data found in bar charts throughout the report, we suggest converting your emissions from pounds to tons.

EPA also provides a general web-calculator that NOTE: EPA'scalculator is based on slightly can be used for this same pUlpose at the following link: older information reported from utility WNWepa.gov/solar /pC1'Nerprofiler.htm companies, but results should be generally accurate for jnformational purposes. o

Current information about Alliant Energy is available on the Internet at www.alJianfenergy.com.

";;~ljEl?f~,,,:o- _ ~t~\!;j,'t:...". ~ -'.,.,..." Alliant Energy Operating Headquarters Corporate Headquarters 200 FirstStreet, S.E. 4902 North Biltmorelone Cedar Rapids, IA 52401 P.O. Box 77007 1.800.373.1303 Madison, WI 53707·1007 General information: 1000 Main Street 1.800 .AllIANT Dubuque, IA 5200 1 Shareowner Services: 1.800.611.9330 1.800.356.5343

FSCSYMBOL !~ALLIANT ~~ ENERGY.

I¥i''re011for )'Olf

------,'~rIA/lIIJ'[' '1> 7111,,7 ,l('~, 1'.1 '!mJ J~ ~SO"~< '::. Roling, Chris ~ ..... _

From: Roling, Chris [DNRj Sent: Wednesday, September 10, 2008 2:01 FM To: Matthew Mansfield SUbject: RE: the elk run plant

Thanks Matt.

Chris

Christopher A. Roling, PE Environmental Engineer Senior Air Quality Bureau, IDNR ph: 515-242-6002 fax: 515-242-5094 From: Matthew Mansfield [mailto:[email protected] sent: Wednesday, September 10, 2008 1:53 PM To: Roling, Chris [DNR] Subject: the elk run plant

Chris,

Here is the issue for the Elk Run story. If you have any questions, please call me at 202-349-2892.

Thanks, Matt Mansfield

This email has been scanned by the MessageLabs Email Security System. For more information please visit hllp://www.messagelabs.com/email

1 Roling, Chris ~I-. _

From: Matthew Mansfield [[email protected]] Sent: Wednesday, September 10, 20081:53 FM To: Roling, Chris [DNR] Subject: the elk run plant ... Attachments: ------

Chris,

Here is the issue for the Elk Run story. If you have any questions, please call me at 202-349-2892.

Thanks, Matt Mansfield

This email has been scanned by the MessageLabs Email Security System. For more information please visit http://www.messagelabs.com/email

1 Argus Air Daily IBmwww.argusmediagroup.com

US Emissions Mar1

Daily Market Assessments Elk Run plant faces local opposition

Residents of Black Hawk County, Iowa, are challenging LS 2008 Power's proposed $1.3 billion 750MW Elk Run coal-fired

Seasonal NOx Allowances $/ton power plant. Bid Ask Price Change "We have a concern with the CO2 emissions. It's at 6 million Bank 625.00 700.00 662.50 tons/yr. There's also no emission standard for PM2.5 in the per- 2008 850.00 900.00 875.00 -25.00 mit application," said Nicole Shalla, attorney for Plains Justice. a 2009 625.00 700.00 662.50 group opposing the proposed plant near Waterloo. 2010 575.00 675.00 625.00 No draft permit is yet in place, but the group wants to ensure that all af the limits are set properly, Shalla said. The graup will not consider legal action until the draft permit is released, if the emissions standards are unacceptable, she said. The plant would Assessment Averages emit 961 tons of PM2.S and 6.8 million tons of CO2 annually, ac- cording to the permit application. S02 Allowances $/ton LS Power intends to reduce CO2 emissions by using super- 2007·2008 Bl. Ask Price Change critical technology and co-firing biomass, said Mark Milburn, September·ta-date 148.33 157.50 152.92 -0.58 spokesman for the company. Its business plan would emphasize August Average 144.33 152.81 148.57 efficiency controls in order to operate competitively in the Mid- Q3-to-date average 155.02 164.51 159.77 -0.20 02 average 316.15 325.03 320.59 west Independent System Operator market, he said. For PM2.S' it intends to meet BACT requirements. he said. NO Allowances $Iton x Iowa's Department of Natural Resources (DNR) met little op- 2008 Bid Ask Price Change position to construction of Council Bluffs Energy Center Unit 4, September.tCHlate 891.67 966.67 929.17 -10.83 August Average 1,104.76 1,191.67 1,148.21 the first coal-fired plant built in Iowa in 20 years when it broke Q3-to-date average 993.37 1,072.45 1,032.91 -3.29 ground in 2003, said Chris Roling, a DNR engineer. For Elk Run, Q2 average 754.30 803.05 778.67 it received letters from citizens even before LS Power submitted the air permit application. he said. Plains Justice is also concerned with mercury emissions, given that the DC Circuit overturned CAMR in February, Shalla said. Without CAMR, states and EPA require facilities to undergo a Executive Briefing case-by-case MACT analysis, and this application indicates the plant would emit 0.000015 IbslMW of mercury totaling no more Two companies that own and operate a Portland cement plant in northem lIIinois have agreed to resolve alleged NSR violations by installing NO~ than .054 tans/yr, Raling said. emissions controls and paying a civil penalty, DOJ and EPA announced Continued on page 2 yesterday...... A proposed SunCoke Energy draft penni! granted by Ohio EPA is under 380 fire from environmental groups arguing the company is taking emissions , , credits from the shutdown of a nearby plant that expi~ earlier this year. 320 f'--=\------;:-:-.:-:----t'-'--~

140 •• ..~.. -l-----IL~~:::,>F==,L~ e6a Brokerage firm CantorC02e plans to conduct monthly online auctions for the sale and purchase of between 250,000 to 1.5 million metric tonnes of

CO2 equivalent of CER units, following the firm's first auction next month. 29-Jul ~=' ------Copyright © 2008 Argus Media Inc. ArgusAir Daily Volume15, 174,Septemberg, 2008

Continued from page 1 Market Overview "With respect to mercury, there has been some flux in the requirements. but nevertheless we're going to install the best • spot so, traded at $150/ton tnday for 500 tons. technology available. As a result we'll have one of the lowest mercury emission rates anywhere," Milburn said. LS Power will • Vintage 2008 NO, moved at $890/ton and $875/ton in lots install activated carbon injection technology. of 100 tons each. If permits are in place by next year, the plant would likely be online by 2013 or 2014, Milburn estimated. • RGG! deals were heard at $4.85/ton and $5.20/ton. A RGGI December 2008 put with a $3.50 strike was also reported. Cement plant settles on NSR charges • The Chicago Climate Futures Exchange (CCFE) reported Two companies that own and operate a Portland cement 668 SF! contracts traded, a total nf 16,700 allowances. plant in northern Illinois have agreed to resolve alleged

NSR violations by installing NOx emissions controls and paying a civil penalty, DOJ and EPA announced yester- day. NOx Allowances Assessment Averages (Cont'd) $/ton Year Bid Ask Price The two companies, St. Mary's Cement and St. Barbara Ce- 2007 September·to-date 637.50 729.17 683.33 ment, agreed to install and have NOx controls operating at the AugustAverage 733.33 844.05 788.69 plant by April 30, 2009. From that date forward, the facility 03-to-date average 706.12 801.53 753.83 must meet required emissions limits at three out of four ce- Q2 average 651.41 706.88 679.14 ment production lines at the Dixon, Ill.. facility. Combined, 2008 September-to-date 891.67 966.67 929.17 the agreed-to NO controls should reduce emissions by about August Average 1,104.76 1,191.67 1,148.21 x Q3-to-date average 993.37 1,072.45 1,032.91 2,700 tons/yr. Q2 average 754.30 803.05 778.67 "This precedent-setting settlement is a first for the Portland 2009 September.to-date 625.00 716.67 670.83 cement industry," said Ronald Tenpas, assistant attorney gen- August Average 625.00 716.67 670.83 eral for the DOl's Environment and Natural Resource Divi- Q3-to-date average 685.20 780.10 732.65 sion. It is the first settlement agreement by the government Q2 average 650.23 705.31 677.77 2010 September·to-date 575.00 675.00 625.00 Deals Done $/allowance August Average 608.33 696.43 652.38 Date Type Transaction Vintage Allowances Price 03-to-date average 603.06 694.90 648.98 9-Sep SO, Trade 2006 500 150.00 02 average 596.09 680.86 638.48 9-Sep NO, Trade 2008 100 890.00 9-Sep NO, Trade 2008 100 875.00 9-Sep RGGI Forward (oec. 09) 2009 10,000 4.85 NO~ Allowances· Spread To Prompt Year $/ton 9-Sep RGGI Forward (Dec. 09) 2009 10,000 5.20 Year Price Change 9-Sep RGGI Forward (Dec. 09) 2009 10.000 5.20 Bank -212.50 +25.00 Put (Dec. 08 strike 2009 -212.50 +25.00 g·Sep RGGI $3.50. premium 2009 100,000 2010 ~250.00 +25.00 $0.25)

042008 Transferor S02 adjustment based on coal's sulfur content. NOx based on average NOx EPA listed no transfers today. output in the Cinergy region. See methodology at YMW.argusmediagroup.com See methodology at end of report.

Page 2 015 www.argusmediagroup.com Argus Air Daily Volume 15, 174, September g, 2008 as part of its NSR enforcement initiative. According to Lhe plied for a permit this spring and was granted the draft permit in federal government, the Portland cement industry represents July. No construction has begun. But the five-year clock started the third largest industrial source of emissions in the US, with in 2004 when the Sinter plant was demolished, not in 2003 when more than 500,000 tonslyr of SO" NO, and CO combined. the shutdown was announced, SunCoke said in its response to "The installation of state-of-the-art technology sets an impor- comments. tant benchmark for the control of this harmful pollutant," said Both sides have valid arguments that have to be weighed, said Cheryl Newton, acting director of air and radiation at EPA's Re- Heather Lauer, Ohio EPA spokeswoman. When the draft was is- gion 5 Office in Chicago. "EPA is committed to ensuring that sued, the state determined the application filing date in the spring .cement manufacturers comply with the Clean Air Act (CAA)." was within five years of the shutdown in June 2003. But now the In a complaint filed concurrently with the consent decree, DOl agency will research precedent from federal and state procedures and EPA charged that the companies had been illegally operating and review all the comments prior to making a final decision, fouf cement kilns at the Dixon facility after they had to be modi- she said. fied. The modifications had been extensive enough to trigger The company applied to install 100 heat-recovery ovens ar- NSR and caused the kilns to emit more pollution, DOJ and EPA ranged in three batteries to build a facility with a capacity of car- asserted. But the companies did not obtain the necessary pennits bonizing 910,000 tonslyr of coal to produce 614,000 tonslyr of or install the required emissions control technology to comply furnace coke. Under the terms of the draft permit. the SunCoke with the CAA, and so violated NSR, DOJ and EPA said. plant would be permitted to emit 1,584 tonslyr of SO" 483 tonsl The proposed consent decree. filed in the US District Court yr of NO, and about 344 tonslyr of PM. for the Northern District of Illinois, is open for a 3D-day public comment period at http://www.usdoj.gov/enrdlopen.html. Peabody: China leading in clean coal tech

SunCoke draft permit under review With FutureGen scrapped, China could overtake the US in demonstrating carbon capture for coal-fired generation A proposed SunCoke Energy draft permit granted by Ohio with its "near-zero emissions" GreenGen plant now under EPA is under fire from environmental groups arguing the construction, according to Peabody Energy, a minority company is taking emissions credits from the shutdown of a stakeholder in the project. nearby plant that expired earlier this year. "China is now the leader on developing technology for car- SunCoke claims it would satisfy any federal new source re- bon capture and sequestration (CCS) for electricity genera- quirements by using credits gained from the shutdown of the AK tion with GreenGen," said Fred Palmer, senior vice president Steel Sinter plant in June 2003 and the installation of best avail- of government relations for Peabody, at the National Coal able technology at the proposed plant. But national and local en- Transportation Association's fall meeting in Denver today. vironmental groups commented to Ohio EPA that SunCoke may The 250MW IGCe plant, under construction in northern not claim any emissions credits from the Sinter plant shutdown China, will be on line in two years and will begin employing because it occurred more than five years prior to construction of CCS two years after that in 2012, Palmer told Argus. "By the the proposed SunCoke plant, a time limit set by the Clean Air time FutureGen was to start, they will be putting CO2 into the Act for applying credits. Credits from a shutdown in June 2003 ground." can only be applied to a new facility that is constructed by June Peabody acquired a 6pc stake in the project in late 2007, of this year, said Marilyn Wan of Sierra Club. The company ap- and announced then the project would be operating by 2009. . .. '0

8

6 /

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I-- / 2 --- "- / 100 ~=----~----~----~----~ o 17-Jun 27-Jul 16-Aug 5-Sep 17-Jun 7-Jul 27-Jul 16-Aug

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GreenGen plans include the addition of a second IGCe unit tions regularly. In the first instance, we would like to be operat- and another 600MW pulverized coal unit to do post-combus- ing the auctions on a monthly basis and then perhaps they could tion capture testing, Palmer said. become more frequent," said James Emmanuel, CantorC02e But financial markets have been in turmoil during the past commercial director. week, cutting valuations for coal producers' stock prices on "Right now the auction is designed for CDM projects. but it growing concerns the US slowdown CQuidimpact demand for can be applied to any commodity. There is no reason that we can energy and commodities. Peabody Chief Executive Gregory not offer similar services for European allowances in the future," Boyce heard that concern at the Lehman Brothers CEO En- he added. ergy Conference last week, but Palmer today expressed con- CantorC02e's first auction, to be held on Oct. 2, will offer fidence in China's growth prospects. China grew earlier this firms the chance to buy 260,000 mt C02e of CERs. These credits decade despite the US slowdown post-200 I and has $1. 7 tril- have been generated from three Chilean biomass projects owned lion to grow their economy, Palmer said today. by Chilean forestry firm Arauco and will be delivered via the "They talk about having to maintain 7pc growth just to Swiss registry to the successful buyers. handle people coming from the rural areas," Palmer said. "It So far, CantorCOze reports 120 expressions of interest in the is city creation that drives the growth ... we're going through online auction from a mixture of financials and compliance buy- one of the spasms that Wall Street goes through." ers in Europe. the US and Japan. Unlike spot CER exchanges, "There has never been a better time for the US coal indus- CantorCOze's online auctions allow buyers to specify the origin try," Palmer said. of the credits. "This will be the first time that a binding contract for the sale of CERs is complete immediately following the close of the auc- CantorC02e plans monthly CER auctions tion. As the hammer falls, a binding contract is in place. making this the fastest way to buy and sell CERs in this market," Em- Brokerage firm CantorCOze plans to conduct monthly on- manuel said. line auctions for the sale and purchase of between 250,000 to

1.5 million metric tonnes (mt) CO2 equivalent (C02e) of CER units, following the firm's first auction next month. Garnaut pushes 10pc cut by 2020 "We want to get to a stage where we are running these auc- The Australian government-commissioned Garnaut Climate Commonly Used Acronyms Change Review recommended a lower than expected lOpe cut to Australia's greenhouse gas emissions by the year 2020 AEP American Electric Power BACT Best Available Control Technology from 2000 levels and to Iix the carbon price at $20/metric BART Best Available Retrofit Technology tonne for the first two years of the domestic scheme, known CAIR Clean Air Interstate Rule CAMR Clean Air Mercury Rule as the carbon pollution reduction scheme (CPRS). COM Clean Development Mechanism The Garnaut Review. headed by respected Australian diplo- CER Certified Emission Reduction CEED Center lor Energy and Economic Development mat Ross Garnaut, said the IOpc target should only be committed 000 Department of Defense to if there is an international agreement to a post-Kyoto Protocol ODE Department.af Energy OOJ Department of Justice beyond 2012. If there is no such agreement reached in Copenha- GAO Government AccountabilIty Office gen next year under the UN Framework Convention on Climate EIA Energy Information Administration EPRI Electric Power Research Insbtute Change process then a 5pc target should be the aim. EEl Edison Electric Institute Under the Kyoto Protocol target. Australia is allowed to in- EPW Senate Environment and Public WOrlls Committee ESP Electrostatic preCipitator crease its COz emissions 8pc above 1990 levels. Gamaut said the IGCC Integrated-gasification combined-cyde MACT Maximum'Achievable Control Technology 2020 reduction target equates to l7pc below the proposed 2012 NACAA National AssociatiOn of Clean Air Agencies level. NAAOS National AmblentAir Quality Standards NETL National Energy Technology Laboratory The target was less than expected as Garnaut had warned that NSPS New Source Performance Standards deep and meaningful cuts were needed to make a difference. But NSR New Source Review PM10 Coarse particulate mailer the targets are more politically palatable to the federal govern- PM25 Fine particulate mailer ment, led by Kevin Rudd, who has faced opposition from large pso Prevention of Significant Deterioration RGGI Regional Greenhouse Gas Initiative business complaining that deep cuts and a high domestic carbon RFP Request for PropOsals price will led to business closures. RPS Renewable Portfolio Standard SCR Selective catalytic reduction International ratings agency Fitch Ratings said Australian SIP State implementation plan businesses are likely to welcome the more pragmatic climate SNOR Selective oon-catsly\ic redueucn TVA Tennessee Valiey Authority change proposals from one of the federal government's climate change advisers. Gamaut.

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"Emissions pricing and a carbon-constrained economy are in- Methodology evitable. The fixed carbon price proposed in the initial phase of Argus publishes daily NOx allowance prices for current vintage (spot), the CPRS should provide more price certainty and may assist forward market prices for three additional years and previous year (banked) in a more gradual transition to a lower carbon economy," said allowances. It also publishes spreads between the spot and forward and Sajal Kishore, associate director at Fitch's Asia Pacific Energy banked allowances. Argus publishes daily S02 allowance prices for current and Utilities team. "However, this proposal provides for less en- vintage (spot). Each Friday on a weekly basis. Argus publishes forward vironmental certainty and may dilute some of the benefits of a market prices for seven additional years. The forward S02 prices reflect the market-based emission trading scheme," Kishore added. value on the Friday assessed. not a value representative of lhe entire week. The federal government's green paper released in July set out The Argus prices published daily are intelligent assessments of the bid! the longer-tenn objective of reducing Australia's GHG emissions ask range at the timestamp of 5:00pm Eastern Time. The "price" represents the midpoint between the assessed bid and ask. The assessed range takes by 60pc from 2000 levels by 2050, but it did not set out the me- into account deals done, bids. offers. spreads between current and future dium-term emissions reduction target to 2020. The government vintages, and other assessments of the market galhered through a wide sur- is expected to release a white paper detailing the CPRS' final vey of participants. The assessment represents the range within which deals design elements in October, including medium-term targets. traded or could have traded at the close of the trading day for that particular vintage. Argus holds as a guiding principle that our assessments should be the product of intelligence, skill. and diligent investigation. Each week on Friday, Argus publishes a Weekly Index for S02 and NOx· These indices are the arithmetic average of the daily "Price" published for current vintage al10wances for each day on which prices were published during that week. On the last business day of each calendar month. Argus publishes a Monthly Index for S02 and NOx. These indices are the arith+ metic average of the daily "Price" published for current vintage al10wances for each day on which prices were published during lhat month. Monthly

indices for forward and previous year NOx vintages are also published. Argus publishes a monthly Broker Index as well, based on a methodology suggested by lhe Emissions Marketing Association. Argus US Carbon ~ The US Environmental Protection Agency (EPA) publishes transfers of Policy, Technology and Markets S02 and NOx allowances every business day. Argus publishes details on daily transfers between non~affiliated companies or organizations. Separate~ Argus US Carbon provides an In·depth look at the pOlitics and technology driving the Iy, Argus collects details on transactions completed in lhe over~the~counter evolution of carton policy in the US.Featuring Insightful analysis, Q&As with industry market for emission allowances and publishes them in the "Deals Done" leaders, and a contextual overview of regional carbon markets,A1IluS US C8rbon table in Argus Air Daily each business day. These transactions are typically delivers an executive level view of the path forward for generators and utilities. completed two weeks or more before lhey are finalized and processed For more information, visit through the EPA's allowance tracking system. Therefore volume and type www.argusmediagroup.com/uscarbon of trades in the "Deals Done" table will not match up with the same day's Contact Argus at sales@argusmediagroup,com transfers in the EPA tables. or call +1 202 349 2867 For more information, go to http://www.argusrnediagroup.com

Argus Air Daily Washington Bureau Chief: Subscriptions: For information on multiple subscrip- alrdaily@argusmedJagroup,com Ross Allen tion rates or site licensing contact Sekani Williams at Air Dally Editor: Carrie Sisto Business Development: 202·349-2884. Editors: Mike Ball, Kim Krieger, Pamela Najor, Miles Weigel, Daniel Massey, Caroline Gentry Matthew Mansfield Chief Executive: Customer Service: For questions regarding current Production Editors: Andrew Sutton, Euan Craik subscriptions or circulation, please contact zachary Daniel WackBrow Publisher: Rhonheimer at (713) 429-6311. Contributing Editors: Abby Caplan, Adrian 8inks Simon Lomax, Christopher Newman, Elizabeth Rosenberg, Anne O'Neil, Argus Media Inc. «> Copyright 2008 by Argus Media Inc. Claire Pickard·Cambridge~Amery Pore,- 1012 14th Stteet;"N.W., Suite 1500 - All rights reserved (ISSN 0732-8397). Molly Christian, Hannah Northey. Todd Tranausky Washington, D.C. 20005 Reprodudion, retransmission or storage of this pub-

New York: Peter Gardett (202) 775-0240 (202) 872-8045 fax lication in any form is forbidden without prior written Los Angeles: Andrea Nylund www.argusmedlagroup.com permission from Argus Media.

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June 2, 2008

Electricity options limited

The Iowa Utilities Board recently voted 2-1 to allow Interstate Power and Light Co., a subsidiary of AJliant Energy, to move forward with its proposed coal-fired power plant in Marshalltown.

IUB Chairman John Norris and member Krista Tanner voted for the plant, and member Darrell Hanson voted against. The Register's editorial board invited the board members to discuss their decision and overall energy policy for Iowa. Below are edited excerpts of their remarks.

Construction of coal-fired plants has become increasingly controversial because they're one of the biggest man-made sources of carbon dioxide, a so-called greenhouse gas. Many scientists believe that greenhouse-gas emissions contribute to global warming and that no more coal-fired plants should be built until technology is developed to capture and store the carbon.

The U.S. Senate is scheduled to lake up a bill today that would cap greenhouse-gas emissions and force companies that exceed the cap to pay for allowances. Presumptive Republican presidential nominee John McCain and Democratic candidates Barack Obama and Hillary Clinton all favor variations of cap-and-trade legislation. So even if the Senate bill fails this week, it's widely expected that the next president and Congress will restrict carbon emissions and attach a price to them. That would increase the price of electricity generated from coal. And retrofitting coal-fired plants to capture and sequester carbon is also expected to be extremely expensive.

The utilities board attached several conditions to its approval that will require IPL to increase production of energy from renewable sources at the Marshalltown plant and companywide:

• Five percent of the plant's electric generation must come from biomass, such as cornstalks or switchgrass, within two years and 10 percent within five years .

• Ten percent of IPL's electric generation in Iowa must come from renewable sources by 2013 and 25 percent by 2028.

Several other approvals are required before construction can begin. The Utilities Board must approve ratemaking principles for the plant, and the Iowa Department of Natural Resources must approve air- quality permits.

Q: Let's start with a basic question: Is there a need for this plant?

Krista Tanner: There's actually not a requirement [in statute) that they prove need, but there is a reasonableness component to it. I think there are degrees of need. Do they need it now? Do they need it eventually? When I looked at need, I looked at were IPL's projections reasonable, not necessarily are they starting to come true. I think that their projections and the way they projected the need were reasonable.

John Norris: I think thatlPL really presented the far end of the spectrum on most every element - be it reserve margin, be it wind capacity, be it their projection of grow1h. I guess you would expect them to do that. On the flip side, I didn't want to make a decision just granting them their extremes. Although they were not unreasonable, they were all at one end of the spectrum.

Darrell Hanson: Even though I voted against the proposal, we're operating with a statute, passed in 2001, that puts a pretty heavy presumption that Iowa needs more generating facilities.

I will agree that the assumptions that went into their modeling were almost universally on the side of safety, if your primary risk is that someday, somebody will flip the switch and the lights won't go on.

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The alternative that a lot of people wanted to see the company use was wind power. We're all three believers in wind power. There are some real issues and real doubt at this time that we can count on wind power for our base load [consistent power needed to meet demand from customers such as manufacturing plants that operate 24 hours a day).

A number of these assumptions that went into their modeling dealt with variables that are currently in flux. It was frustrating for me that we were making this decision at this time rather than two to three years from now. According to their own model, if there are carbon costs imposed in the near future and if their required reserve margin is dropped, which is a possibility, their own modeling shows that they could put off this plant for a few years. So, I was willing to take that risk, but it was a risk.

Q: What are the things that you would most expect to be different two to three years from now that might make a difference?

Hanson: Probably the biggest one is what is the degree of carbon cost that might be imposed. Another big one is currently they're required to have 18 percent of their generating capacity on normal weather days in reserve and available on the grid for emergencies. There's some discussion of lowering that to 15 percent. Another one is some of the barriers to hooking wind power up to a transmission system. If some of those interconnection issues are solved, you could have a more reliable net. One of the issues that affects base-load requirements is we don't know what's really going to happen with biofuels, who are a major power user.

Q: Your conditions for approval require increasing generation from renewable sources, which will primarily be wind. Will there be the transmission-grid upgrades necessary to achieve building so many wind turbines?

Norris: People [are] now starting to see that there's a more reliable market for wind, and we'll see more transmission investors.

I'll be meeting and talking with the governor about supporting [a] proposal to give MISO [Midwest Independent Transmission System Operator] more direction. Part of the responsibility is on the states to say, "Here's what our energy mix in our state is going to be 10, 15 years from now." MISO has the cover to say, "OK, we know these states want this much of their energy mix renewables, so let's study that and let's move forward on building that."

Q: For base-load power, it seems as if there aren't many other options for Iowa than coal right now. Longer term, what's on the horizon for base-load power?

Tanner: That is why I ultimately ended up voting for [the plant]. Even if all these things end up happening, the most aggressive standards we're talking about are 30 by 30 [30 percent of electricity generated by renewable sources by 2030], and I'm really concerned about what does that other 70 percent look like. In my opinion, it's coal or nuclear. [Nuclear is] not without its problems, because it is expensive. I am on the [Iowa] Climate Change Advisory Council, and we put that as an option to study. There's a lot of resistance to it in the public, more so than coal, even though it's a lower carbon-generating source.

They are pursuing ways to store the carbon to make coal more viable. I don't think that will happen in the next five to 10 years. I saw this plant as almost a bridge technology, because it is more efficient. My thought is that if we're going to have coal, it better be the most efficient plant we can have and have a potential for biomass. While it may be an incremental step in carbon reduction, it's a step that we can take today.

Norris: At least for the foreseeable future, it's going to be nuclear or coal. My preference certainly is to reduce greenhouse gases. For the long term, that's nuclear, but it's extremely expensive to build right now and an extremely lengthy process to build. http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=2008806020309&template=p... 6/3/2008 www.desmoinesregist~i..corriTPi.inter-friei.ldIY article page

Q: Is there anything the state can do to encourage construction of nuclear plants or is that solely a federal responsibility?

Norris: We're certainly open to a nuclear application, but still don't expect it tomorrow. I know Mid- American looked closely at it, but decided costs, the time and the building issues are just prohibitive. Mid-American is a very progressive company in looking at new alternatives. It makes me a little concerned about how the country as a whole is going to solve our base-load problems. Nuclear certainly will help reduce greenhouse-gas emissions.

Q: Did IPL agree to shut down or reduce production at another plant or plants to bring on a plant that was more efficient?

Tanner: They said they wanted it for the flexibility to do that. It was clear that, all things being equal, if they have more generation than load at that point, then the [Marshalltown] plant would be running instead of these others, because it was cheaper and more efficient.

Hanson: The company is going to run the most efficient, lowest-eost plant they can. Where the issue comes is you can also make a reasonable argument that, in the long run, you are locked into that technology for decades and it might crowd out interest and investment and alternative sources of generation. That's a more speculative argument. Are we going to look back and say, "Gee, I wish we didn't still have this coal plant, but we have to run it till it burns?" Thafs not a clear-cut issue.

Q: How do you avoid the scenario where this sort of gives everybody a timeout as far as developing alternative energy sources or stepping up energy efficiency?

Norris: Two of the conditions of the plant were the [biomass] burden and the increased renewables, so that's one way.

Hanson: Energy efficiency.

Norris: Yes, the biggest, most important thing we do.

Q: IPL has a pending energy-efficiency plan before the board. What are the ways you can really push for energy efficiency?

Norris: We will be actively engaged in those [the energy-efficiency plans filed by investor-owned utilities]. We really more just have the public peer pressure on the REGs [Rural electric co-ops], the MUNls [municipally owned utilities], because we have no authority over their plans. So, all we can really do there is point out their performances.

Hanson: About 25 percent of the electricity used in this state is sold by power companies or power entities that we have no oversight over - nobody has any oversight over, other than their own members - on energy efficiencies. That's the REGs and the MUNls. They have to file their plans, and then periodically we have to make reports on how various sectors and the various companies are doing. They get to set their own goals, but that's at least an improvement in that there will be a goal that's on paper, and we can see it as to what they say they can save. We felt that their plans ought to be subjected to board approval, just as the investor-owneds ought to be, but there's obviously no support in the Legislature for that.

The one thing that seems consistent among the REGs is that they run energy-efficiency programs that have the side effect of increasing their own load that they sell. So, for example, if you have people out there that (are) heating their house with old fuel oil or LP heaters, pretty much every REC runs an incentive program to get people to switch to electric heat pumps or heat exchangers. That's a http://www.desmoinesregister.com!apps/pbcs.dll/ arti cIe?A10=2008 8060203 09&temp late=p... 6/312008 ...... ,. : " nirww.desmoinesregister.com I Printer-friendly articlepage Page 40f4

good thing. But, it's the type of thing that if you're in the business of selling electricity, you might do anyway, even if you didn't give a hoot about conservation. The OCA [Office of Consumer Advocate] pointed out that you don't see very much participation among the RECs in the type of energy- efficiency programs that have the side effect of reducing load.

Q: What is the outlook this summer for a peak demand? Are we a little more vulnerable to brownouts this summer, at least on the Iowa portion?

Norris: The projections for this summer are pretty good in terms of peak load, according to MISO. Actually two years ago, if it hadn't been for Wisconsin, Minnesota and Iowa basically having intersecting programs, we could have seen people forced to shut off because of exceeding capacity. We are very close to that point, because of what seems to be obstructions to build. With increasing loads and not a lot of generation expansion, we're going to be in a more precarious position as a board.

Q: How can you protect consumers in the kind of world when fuel is going to cost more and more, and carbon emissions will cost a lot, too?

Tanner: A lot of it is energy efficiency, trying to get the public already aware and already in the habit of conserving energy, (or) they will be in for a shock.

Norris: Consumer education is so important, because consumers buy things [types of homes, appliances] that have long-term implications of energy usage.

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May 19, 2008 Guest column: Coal-based power to fuel expansion of economy

Bill Gerhard is president of the Iowa State Building and Construction Trades Council.

Recently, some activists have called for moratoriums on coal-based electrical generation. That's tantamount to calling for an end to affordable electricity in Iowa and an end to economic expansion.

I would suggest that rather than disparage the industry and call for moratoriums on the nation's most affordable, abundant fuel source, we consider the facts, just as the Iowa Utilities Board did when it approved a coal-based plant proposed for Marshalltown by Alliant Energy.

It's a fact: No power plant can be sited if it's shown that emissions would diminish air quality in a community to the point where pollution levels would pose a threat to human health and welfare. These standards are stringent and set at a level to protect health, with an added margin of safety.

In the past several years, more than $50 billion has been invested in clean-coal technologies. Correspondingly, today's coal-fueled power plants are routinely retrofitted to capture even more emissions, which helps ensure our air is cleaner than it was in years past. In the future, retrofitting will include the safe storage of carbon dioxide.

Coal not only provides a constant, reliable flow of base-load power, but upgrades to accommodate its transmission can help further diversify our state's energy portfolio. A shortage of transmission lines hinders development of the renewable sector, such as wind power, across the country. Construction of new coal-fueled plants and accompanying transmission lines leads to advances in wind power.

More than 78 percent of the electricity in Iowa comes from domestic coal, and coal-based generation has a $22 billion economic impact in the state. Google is on record as stating its decision to expand into Iowa was a direct result of the state's access to affordable electricity.

We must keep all of our energy options on the table, including coaL Recently, the Iowa Utilities Board affirmed this principle by approving the Marshalltown plant and thus retaining the promise of a secure and affordable energy outlook.

The poor and elderly are hardest hit by rising energy costs. Placing a moratorium on this nation's most abundant and affordable fuel source for electricity would hurt them most.

Finally, keeping energy costs affordable by using low-cost fuel options such as coal helps promote a healthier lifestyle for Iowans. The less money Iowa families spend on electricity, the more money they have to spend on health care, improved housing, nutrition and a whole host of other factors to improve health and longevity. Those findings are supported by a growing body of research conducted by groups like the World Health Association and the United Nations.

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May 11,2008

Several groups act to help state roll with changes

By PERRY BEEMAN [email protected]

Iowa is responding to the threat of climate change.

A team of Iowa State University scientists, including several involved in a Nobel Peace Prize-winning report last year by the Intergovernmental Panel on Climate Change, are looking at a phenomenon that is measured in millennia, not minutes.

The scientists plan to study in much more detail what is likely to happen in the Midwest as emissions mount and warming continues. Some also are studying how Iowa farmers and other landowners can use plants, trees and shrubs to help take carpon from the air.

ISU is also attempting to set up an institute designed to fine-tune models so that they can look at smaller areas with statistical confidence, said Eugene Takle, a professor of atmospheric science.

President Gregory Geoffroy has launched an initiative to cut emissions at ISU. Drake University, the University of Iowa and at least eight other Iowa colleges or universities have taken similar pledges.

A few other initiatives:

-The Iowa Climate Change Advisory Council is mulling more than 30 ways Iowa can cut its greenhouse gas emissions by as much as 90 percent by 2050.

- The new Iowa Office of Energy Independence addresses climate change as part of its work to reduce reliance on foreign fuel sources.

- The Legislature created the $100 million Iowa Power Fund to support innovative alternative-energy projects, such as finding a better way to make ethanol from switchgrass, cornstalks and other biomass.

- The state set a goal of replacing 25 percent of gasoline used in Iowa with biofuels, which burn cleaner, by Jan. 1, 2020. The biofuels industry also gets tax breaks. The officials want E85, which is 85 percent ethanol, to account for 60 percent of fuel used in the state fleet by June 30, 2009.

- Gov. Chet Culver in November signed the Midwestern Governors Association Energy Security and Climate Stewardship Platform, intended to set pollution-reduction targets and come up with programs to help states reach goals.

- Iowa requires its two investor-owned utilities to contract for a combined 105 megawatts of generation from renewable-energy resources, and has a number of tax incentives to support private use of power from wind turbines, methane, hydropower and other alternative sources.

- Culver in February signed an executive order launching a green government initiative that sets goals for the state to improve energy efficiency in buildings, materials and biofuels.

- The Iowa Department of Natural Resources, under orders from the Iowa Legislature, is developing the state's first greenhouse gas emissions inventory.

- The state has recruited new wind-energy companies that are building manufacturing plants for turbine blades and other components. htto:/ /www.desmoinesrel!ister.comianns/nbcs.dIVarticle? AID=/20080511 /NEWS/80S I 002... 5/14/2008 ·www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

- Iowa Attorney General joined representatives of 16 other states in a legal petition that seeks to make the Environmental Protection Agency live up to a U.S. Supreme Court decision ordering the agency, a year ago, to regulate greenhouse gas emissions from vehicles under the federal Clean Air Act.

- Several Iowa cities, including Des Moines and Ames, have extensive programs aimed at cutting energy use by city operations.

http://www.desmoinesregister.com!apps/pbcs.dliJarticle? AID=/20080511INEWS/8051 002... 5/14/2008 ADVANTAGES IGNORED? James Taylor, a fellow at the Heartland Institute, said concerns about warming ignore signs that the world has been a better place with higher temperatures. "By virtually every measure, the warming of the 20th century produced a far more healthy and vibrant environment than the preceding Little Ice Age. Growing seasons are longer, crop production is at record levels, forests are expanding, deserts are shrinking, soil moisture is higher, and human life spans have never been longer." POSSIBLE SOLUTIONS Here's what still can be done, according to scientists, state officials and environmental groups:

-Enhance breeding of crops that can stand up to flooding, drought and ozone.

-Ramp up all energy-efficiency programs.

-Phase out coal plants or convert them so they capture emissions underground or underwater.

-Design neighborhoods and mass transit programs so people drive fewer miles.

-Mandate higher gas mileage for vehicles.

-Establish incentives for landowners to plant trees and other carbon-capturing crops.

-Encourage the development of more efficient solar panels and the use of wind turbines and other alternative energy sources.

-Conserve wetlands and im rove them so the sweep more carbon from the air.

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CHRISTOPHER GANNONrrHE REGISTER

Eugene Takle, a professor of atmospheric science at Iowa State University, is involved in research examining the possible effects of climate change on Iowa and the Midwest.

MINORITY VIEW: WARMING'S NOT A MAJOR CONCERN CURRENT TREND: The vast majority of scientists, including the hundreds associated with the Intergovernmental Panel on Climate Change, believe that it is very likely the atmosphere is warming and that human-related emissions now are driving the trend.

WHAT OTHERS SAY: A minority of scientists - some of them financed by oil, gas or coal companies - contend that warming is part of a natural cycle and nothing to worry about, or they suggest warming could make living conditions better.

DISAGREEMENT ON OZONE: For example, Joel Schwartz, a visiting fellow at the American Enterprise Institute, said concerns about ozone damaging plants are off base. Schwartz contends that ozone levels have been dropping in wealthy countries for decades, and will drop in other countries as their economies develop. www.desmoinesregister.comIPrinter-friendly article page Page 4 of5

said. "The seasonality will be an issue. When does the rain come?"

Milder winters would affect environment, infrastructure

Milder temperatures could mean savings on home-heating bills, Takle said. It also could provide more groundwater recharge in periods of fast snowmelts. On the down side, look for more freeze-thaw cycles, damaging roads and bridges and altering growing seasons.

''That has a variety of ramifications that we really don'tknow," Takle said.

Fickle weather last year illustrated the potential for trouble, Takle said. In April 2007, a hard freeze followed an unusually warm period in March. That caused heavy damage to tree buds and fruit blossoms.

"It just zapped everything," Takle said. "I looked at a satellite map of plant productivity for the spring season of 2007. It showed a big hole in the middle of the country."

Many trees never did recover to a normal rate of producing leaves and branches. That two- or three- day event disrupted the whole carbon uptake in the middle of the country for the entire season, he said.

Takle said his research suggests temperatures overall are rising - but winter temperatures in Iowa are increasing the most. Average winter temperatures have climbed 1 degree Fahrenheit per decade.

Wildlife to feel warming's impact; pest population could grow

The Union of Concerned Scientists predicts Iowa stands to lose at least 36 bird species, but gain 10 new ones by the end of the century.

The Intergovernmental Panel on Climate Change predicts that between 20 percent and 30 percent of Earth's species are at an increased risk of extinction if average temperatures increase more than 2.5 degrees Celsius.

The panel also expects fewer neotropical migrants in North America. Those are the tiny songbirds that now frequent Iowa in the summer, migrating from Mexico and other Latin American nations.

The Eastern goldfinch, the state bird, may move out of state, to the north, the National Wildlife Federation reports.

Deer, skunks and raccoons could benefit from a smorgasbord of new plant growth in places, but they might spread rabies and other diseases farther.

Denison native James Hansen, director of NASA's Goddard Institute for Space Studies and a leading climate researcher, said the next 50 years promise to bring more crop- or tree-damaging pests up from Southern states.

Other scientists expect warming to mean a wider risk of Lyme disease and other illnesses carried by ticks or mosquitoes.

Trout, which are found in northeastern Iowa, might not be able to survive warming waters, and other species are likely to shift their range to the north.

Takle said predictions for the latter half of the next century are somewhat less certain. He and other scientists continue to adjust computer models.

What they find will affect far more than their latest scientific papers, say Takle, Hansen and other climate scientists. Iowans' health, economy and quality of life are riding on those results, and how people respond to them.

http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/200805111NEWS I0/80511... 5/14/2008 .•• . J __ • • • • _0- • ••••• ~ • ..J www.desmoinesregister.comIPrinter-friendly article page -"P~ge 3 of 5 - •

Iowans can count on more weather-related deaths due to higher temperatures and longer heat spells.

The science behind the rising temperatures:

Moisture in the air will likely increase because water vapor is the most prevalent greenhouse gas. Over time, this results in higher temperatures day and night.

More moisture in the air means better photosynthesis for crops, which wouldn't have to draw as much moisture from the soil.

"That may be favorable for corn, but people might not like it as much," Takle said.

As a result, people living in the Midwest will struggle with more heat waves, according to the international panel and a Pew Center on Global Climate Change report in December 2007.

Consultants at the National Center for Atmospheric Research found more frequent heat spells in all versions of a model used to predict the climate in Chicago, St. Louis and Cincinnati from 2080 to 2099.

On average, the frequency of heat waves for all three cities increased by 36 percent. The duration of those heat waves increased by 27 percent in the models.

Consequently, that will be a health threat. Iowa will continue to have a relatively old population, but it does not have a full disaster plan to handle the type of deadly heat waves that hit Chicago in 1995, killing 600, and France in 2003, killing 14,800, Takle said.

Higher concentrations of ground-level ozone are expected to harm human lungs, in addition to suppressing plant growth. The Midwest would see some of the greatest damage from the higher levels.

The shift in climate also will prompt longer seasons for ragweed and other allergens, according to Stanford University researchers.

Water shortages, more drought possible despite heavier rains

Warming might make water shortages a bigger issue in Iowa, where a boom in ethanol plants and hog confinements have already strained supplies.

The international panel and other scientific teams have predicted greater evaporation of precipitation and more drought, which could sap water from rivers, lakes and underground supplies.

More intense rains could fuel floods and worsen the condition of Iowa rivers that are already high in fertilizer pollution, Takle said.

Iowa already has more rain than it did 25 years ago, most of it from severe weather events. The chances of downpours of 2 inches or more will rise over the coming decades, Takle said.

"More rain tends to be favorable because we tend to be a bit dry," Takle said. "But in a heavy rain, the extra inch tends to be runoff, which would lead to more pollution issues" and less water soaking into the ground.

Takle said summer temperatures in Iowa have dropped over the past three decades. Rainfall is up, which adds to soil moisture. The sun then evaporates water from the soil, and there is less energy from the sun to heat the air. That keeps temperatures down.

But the international panel and others predict more drought, too, due to the disruption of weather patterns.

The variable water supplies will mean one more challenge for agriculture.

"The seed corn companies have made remarkable progress in breeding in drought tolerance," Takle http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080511INEWS 10/80511... 5/1412008 www.desmoinesregister.comIPrinter-friendly article page Page 2'of5

Schnoor and his colleagues are looking for new ways to tackle the problem. They expect in the next month to finish a study of how much carbon is swept from the atmosphere by soil and plants in the eastern United States, including Iowa. With that information, researchers and policymakers can focus on cutting the remaining carbon.

Schnoor said the Iowa task force is also looking for ways to cut emissions while creating jobs in more climate-friendly industries.

"If we do this smart, we will create green jobs, improving the economy and cutting greenhouse gases," SChnoor said. ''We're not doing that yet."

At Iowa State University, water-quality authority John Downing discovered another tool: farm ponds and small lakes. Combined, those waterways cover twice as much area as previously thought, and could sink more carbon annually than oceans, Downing found.

Several themes emerge when the new state research is mixed with cutting-edge studies from the Intergovernmental Panel on Climate Change - a worldwide network of experts on climate change - as well as other researchers. Although they disagree on some points. here's what most say the state can expect:

Longer growing season could affect crop yields

New software models projecting the future show Iowa faces big changes in the next 50 years - and even more in the remainder of the century.

Expect significant changes to the state's growing season, because the new research suggests Iowa will gradually go through more heat spells and torrential rains, Takle said.

Climate change already has added an inch of rain to Iowa's supply in each of the past several decades, made the state a more humid place, and ramped up some storms. Winters are generally warmer, and wetter conditions have shaved a few degrees from summer's peak temperatures - both signs of climate change, Takle said.

Over the next century, the warmer, wetter weather will result in Iowa's climate becoming more like that currently associated with Kansas, and, eventually, like Arkansas or Mississippi.

Scientists have noted for years that more carbon dioxide, which feeds plants, will likely mean booming crop yields. Takle said the longer period between the spring thaw and the return offrost in winter could mean longer growing seasons.

The changes could open the door for farmers to grow two, maybe even three, crops a season, Takle said. "It's not all gloom and doom. We should be thinking of what opportunities will be presented by climate change. China is already double-cropping."

The Intergovernmental Panel on Climate Change predicts rain-fed agriculture in North America could see a boost in crop yields by as much as 5 percent to 20 percent in the next few decades.

But weather and climate changes could dampen the gains, according to the panel's latest report.

For example, crop yields could drop 40 percent by 2100 because of higher levels of ground-level ozone, a key part of smog made up of oxygen, according to a team from the Marine Biological Laboratory in Woods Hole, Mass., and the Massachusetts Institute of Technology.

"Ozone has a hugely detrimental effect of crops," said Ben Felzer, an MBL research associate.

Even though there could be big declines in crop yields, the MBL and MIT scientists are forecasting a drop of only 9 percent in food production in the next century, because farmers would use more land for crops.

Heat poses new threats to health, human life http://www.desmoinesregister.comlapps/pbcs.dll/article? AID=/20080511/NEWS 10/80511... 5/14/2008 www.desmoinesregisteLcom I Printer-fiiendly article page Page 1 of5

May 11, 2008

Global climate change: What it means to Iowa

By PERRY BEEMAN [email protected]

Iowa's greenhouse gas emissions are growing faster than the nation's as a whole, even as new state programs fight to limit the damage from global climate change, a new report shows.

The study conducted for Iowa's Climate Change Advisory Council found that the state faces a tough task in cutting greenhouse gases, said Jerald Schnoor, an environmental engineering professor at the University of Iowa who is leading the panel.

The gases, which include water vapor, carbon dioxide and ozone, trap heat that otherwise would escape into the atmosphere. That warms the globe, threatening an increase in disease, heat-rEllated deaths, severe weather and crop damage.

InteLactive graRhic: How climate change could affect Iowa

The study by the Harrisburg, Pa.-based Center for Climate StratElQies found gross emissions of the gases in Iowa rose approximately 20 percent from 1990 to 2005, while the country's emissions rose 16 percent. Iowa's emissions accounted for 1.7 percent of the U.S. total in 2005.

'We're increasing rapidly, more than a percent a year," said Schnoor, co-director of the U of I's Center for Global and Regional Environmental Research. 'When can we begin to reduce? That's the challenge."

Experts say the new findings - and other recent research from across the globe - paint a clearer picture of what Iowa and the rest of the Midwest will be like by the end of the century. They also bring urgency to a number of policy decisions that could hurt or help the problem.

"People are more worried," said Eugene Takle, an atmospheric science professor at Iowa State University who studies climate change.

Among the most imminent issues: two highly contentious plans for new, large coal-burning power plants in Marshalltown and Waterloo.

Iowa gets most of its power from coal plants. Critics say the proposed plants would increase emissions, while backers argue new, more efficient plants would replace older, more polluting ones. The Marshal~own plant won approval from the Iowa Utilities Board last month, but still needs a state air permit; the Waterloo plant proposal hasn't been reviewed yet.

But coal usage is only one in a long list of climate-change-related issues facing the state. Climate change could affect how farmers grow corn; how much Iowans pay for heat and air conditioning; whether we have enough water, or too much; whether we can preserve wildlife, natural areas and water quality; and whether more climate-friendly businesses can be found to drive the state's economy.

Agriculture has long been blamed for haVing a major role in Iowa's carbon footprint. The state is the nation's top producer of corn and hogs, and has the second-highest greenhouse gas emissions from agriculture in the country, according to the World Resources Institute.

However, growing sectors of Iowa's economy are also to blame. And even newer "green energy" contributes to greenhouse gases. For example, the Clipper Wind power turbine-making plant in Cedar Rapids has 40 suppliers, all of whom have their own emissions, Schnoor said. http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080511INEWS 10/80511... 5/14/2008 About this series Climate change is a highly debated topic. Some scientists fear if changes are not made soon, our way of life will be altered forever. A small minority of scientists contend that changes in the earth's temperature and the results of these changes are part of a natural cycle and not worth worrying about.

We've heard about implications on the coasts, but what does it mean for Iowa? This is the first of an occasional series looking at the latest projections for our state. =_r- __~-=--=-==_ How climate change could affect Iowa

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~------===='----- DelOS< lEa EZm I:ii·'i'i¥f' EXTREME WEATHER Iowa is expected to experience more frequent extreme weather conditions such as severe storms, heat waves and longer drought periods, according to the Union of Concerned Scientists. Periods of PROPERTY SERVICES heavy precipitation could Increase run-off and flooding. This could m cause numerous problems for streams, levees. municipal water systems and fisheries. Average July temperatures could jump 10 RENEWABLE RESOURCES degrees by 2080.

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'·hiiUi·S ~------===-- DnOSE RENEWABLE RESOURCES LIVESTOCK The Union of Concerned Sdentists suggests that warmer summers could suppress appetites and decrease the weight of livestock. Extreme heat decreases milk production. Milk quality is expected to l.iM.li·hlm' PRAIRIE & FORESTS drop because of a reduction in spring forage. caused by milder winters and less snow. Uvestock could become more expensive to +.jij.n ... ·N" keep cool during the summer. L------!:.a

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PROPERTY SERVICES ,------DCLOSE 1 1m AGRICULTURE ' According to the Union of Concerned Scientists. Iowa farmers could RENEWABLE RESOURCES face the following:

• Some crop yields could increase because of an increase in PRAIRIE & fORESTS atmospheric carbon dioxide and active forms of nitrogen, a longer ,.jd·jh'!"t' growing season, greater water use effidency and improvements in f,jij.j!iiliill." organic matter In soil. • Crop productivity CQuid decrease because of severe storms, floods and high heat.

• Farmers may need to use costly irrigation.

• Farmers could pay more to maintain soil fertility or preserve safe drinking water because of flooding. _@,,jIiiM • Warmer winters and more rainfall could create favorable conditions for pests.

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

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WATER RESOURCES ,------DnOSE PRAIRIE & FORESTS WATER RESOURCES In the summer and fall. according to the Environmental Protection ','Mi3i1"i!-!i Agency, extreme drought could diminish stream f1ow,lake levels and groundwater supplies. This could limit irrigation and watering of livestock and also reduce water quality. It could also limit navigation, hydropower generation, recreation and wildlife conservation on Mississippi and Missouri river reservoirs.

In the winter and spring, higher temperatures and increased rainfall i could lead to early snow melt that would swell rivers. Too much rain I could cause ftooding and soil erosion. which causes surface-water- quality issues such as high concentrations of nitrates, pesticides and I nutrients from agricultural runoff.

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

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'Whilij-' I:ijd'''l' DnOSE 1 EmIl ,:u,nil'!. BENEFITS OF CLIMATE CHANGE Scientists at Iowa State University and other research centers say the warming trend could help Iowa in some ways. For example, aop yields are expected to jump sharply in the next 50 years or so, although the gains could be reduced by flood. drought and severe ",?Bioi.:, weather. Warmer winters and an earlier spring could mean Iowans pay less for heat than they would have otherwise. Although the WAHLE RESOURCES state is expected to warm in general, the wetter conditions predicted for the next century could cut the number of extremely hot summer days. WATER RESOURCES PRAIRIE & FORESTS

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FLOODING RENEWABLE RESOURCES By the year 2090, a major flood could happen every 10 years, according to projections from the National Wildlife Federation.

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WATER RESOURCES DCLO" 11m PESTS The Environmental Defense Fund reports that warm temperatures i,'Mii"iiii-Ji and frequent floods attract pests. Climate change can affect pests' development. behavior, mobility and reproduction, and they could develop earlier in the season, harming crops. Crops could also become susceptible to pests, pathogens and diseases because of heat stress or other factors. Warmer weather can also cause mild winters, which could lead to bigger com and soybean pest populations. Pests common in southern states could move north.

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

oClOS[ 1 HEALTH THE FUTURE: WHERE WILL The Union of Concemed Scientists suggests that higher WE GET OUR POWER? temperatures and more electricity use for air conditioners could -:':Ihim-' increase ground-level ozone, which could increase the severity of asthma and other respiratory diseases.

Summer heat-related illnesses and deaths are expected to Increase, especially for the elderly, the very young and the poor, because the number of days above 90 degrees is projected to increase. PROPERTY SERVICES 1'011ioib The fluctuation in Iowa dimate could create favorable conditions for disease-carrying insects or pests. Mosquitoes can carry malaria or RENEWABLE RESOURCES West-Nile virus. An increase in Lyme disease and tick·borne diseases is likely. The number of waterborne diseases could rise, too.

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PROPERTY SERVICES DnOSE 1 PROPERTY/SERVICES According to the Union of Concerned Scientists, storms and flooding RENEWABLE RESOURCES cause changes to infrastructure. Munidpalities could have to upgrade levees. sewer pipes and wastewater treatment plants because of more rain.This could cause a heavy burden on emergency management, Increased deanup and rebuilding costs PRAIRIE & FORESTS and more expenses for farmers. businesses and homeowners. 1;Jii3-ih·loifl

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'N··i3;i·jiioiu.idi ';lJ3:l'.iiitU' PRAIRIE & FORESTS RECREATION i.la·Ii"I'''''l' The Union of Concerned Scientists says the summer recreation season could expand as temperatures rise. but extreme heat and downpours, elevated ozone levels and risk from insect and waterborne diseases could cause some restrictions. The shift in migratory populations could mean 1055of hunting, fishing and wildlife viewing. -V!'oiIi'_

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DnaSE l FISH Iowa's only cold-water fish, the trout, may not survive as the state's water gets warmer, suggests the Union of Concerned Scientists. Other fish species, such as the Western mosquitofish, are already moving north. i _Wi .. lIiiM

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,~------OClOSE 1 WILDLIFE/ECOSYSTEMS IIfih'''U' Scientists have documented a number of changes with Iowa's 1'0"NYI species. including changes in breeding seasons, migration patterns, I animal and plant distributions, and changes in size and population I RENEWABLE RESOURCES numbers. As habitats decrease, species start to dwindle or disappear. For example, Iowa's state bird. the American goldfinch, may move its breeding range to the northern part of Iowa because of changes in PRAIRIE & FORESTS climate. "'!i"h'ioV'

h3 The National Wildlife Federation says higher temperatures and '.Jd. 'iiiii;" changes in precipitation could reduce available wetland habitat, including the prairie pothole region in northern Iowa, the De Soto National Wildlife Refuge and the Mississippi River e

dimate change Is projected to change prairie grassland habitat, which could cause many of the state's grassland bird species to shift north.

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1"?JiI.l+:' ,------OCLOSE RENEWABLE RESOURCES FOREST AND PRAIRIE According to the Union (or (oncerened Scientists. a hot. dry climate WATER RESOURCES could cause Iowa's state tree, the oak. to be replaced by more PRAIRIE & FORESTS drought-tolerant species such as southern pine or bur oak. Other species such as the white pine. balsam fir and yellow birch are 'MiiiS""'!·!i extremely vulnerable to climate change and may be lost from the state.

An increase in carbon dioxide can lead to short-term forest growth. Increased levels of nitrogen oxide could lead to a higher concentralon of ground-level DIone. With more frequent droughts and pests and invasive species. the long-term forest health could be at risk.

The Union of Concerned Scientists reports that higher temperatures, droughts and floods could harm tallgrass prairies and oak savannas, possibly leading to a local loss of plant and animal species.

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

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PROPERTY SERVICES "'?JiN'I OCLOSE 1 RENEWABLE RESOURCES RENEWABLE RESOURCES Iowa continues Its research in the development of other renewable I HiBn;'di"'''; energy resources such as biomass. hydro power, methane recovery PRAIRIE & FORESTS and sclarenergy. +.id-!13i1'iiI-"

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OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

THE FUTURE: WHERE WILL WE GET OUR POWER1 'Whilij" IIIr------OCLOSE 1 WIND ENERGY -Iowa ranks third among the states in e1ectIical-generating capacity in operation via wind power, according to the American Wind Energy Association.

, ..u,..,,:, -Iowa's 992 megawatts of capacity generated by about 960 turbines is enough electridty for about 248,000 homes. RENEWABLE RESOURCES

• Manufacturing of wind power equipment has already created hundreds of jobs in the state, and reports estimate thousands more '1'h'j;i;li"'" could be created over the next decade. PRAIRIE & FORESTS

• A study by consultants for the state said Iowa could benefit from an anticipated $22.4 billion in wind generation projects with 600 miles '·HUB'''''';'' of the state over the next seven years.

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OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

THE FUTURE: WHERE WILL WE GET OUR POWER1 iWi·"II+·1 i:WiU"· o (lOSE 11 IImII M"!i"!f' COAL PLANTS Coal plants emit fUle partides which contribute to respiratory I illnesses and additional deaths. The plants also emit sulfur dioxide. ! which can damage forests. water and wildlife; and nitrogen oxides. which lead to smog. Ni ' '''?!i MidAmeric.an Energy and Amant Energy, the two utilities that NEWABlE RESOURCES provide the majority oflawa's power, are both making multimillion- dollar investments in new technology that helps to reduce the WATER RESOURCES overall emissions from their plants. They are also making significant investments to further develop wind energy - an effort to offset a PRAIRIE & FORESTS portion of their demand with renewable. dean energy.

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IOWA'S ENERGY SOURCES POWER FROM COAL EMITS MOST CARBON

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OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

THE FUTURE: WHERE WILL WE GET OUR POWER1 'WnW'" r------~== 0 CLOSElII I:IUW'!f' BIOFUELS Biofuels are a mixed bag in the dimate change debate. While burning ethanol could sharply reduce greenhouse gas emissions. the demand for COfn could lead to the loss of prairie and other natural habitats that sweep carbon from the air. losing wetlands l·ini,·I·1 and the like also could lead to more water pollution. ·!fi·!i!.jjfl

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WHAT IS GLOBAL WAFlIW:NG? Greenhouse gases - primarily water vapor, carbon dioxide. methane, nitrous OXideand chlorofluorocarbons - keep the Earth warm by trapping radiant heat in the atmosphere. This is called the -greenhouse effe<:t; and without it, life could not be sustained on Earth.

~owever. many studies suggest that human actions, including agriculture. ttiJffiC,industrialization and deforestation, have increased greenhouse gases in the atmosphere and accelerated -global warming,"

Global warming refers to an...lncrease in theEarth's. average temperature, which In turn causes changes In climate. Some effectsof global warming Include frequent flooding and drought. increased temperatures ar~(rextrerne , '.' , iweather, wt'ich scientists say harm people's health a~d th«: ~o~0n:'Y. __ J Click the play bunon above to automatically advance through a basic explanatIon of the greenhouse effect, or click the numbered bunons to step through It manually. a"B""•• THE GREEMfOUSE EFFECT The emissions from the burning of fossil fuels - coal, all and natural gas - for )'-

GREE;o.:HOUSE GASES l 12.. 1110 ......

THE GREENHOUSE EFFECT The emissions from the burning of fossil fuels - coal, oil and natural gas - for e~ . ary source of greenhouse gases.

, , GREENHOUS!: GASf:S L.

------;-i C 2. Some of the radiation is I reflected by the Earth " and atmosphere. !

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THE GREENHOUSE EFFECT The emissions from the burning of fossil fuels - coal, all and natural gas - for energy ar..!Uhe-.pr4maq source of enfi'O'Use gases. ~

GREENtiOUSE GASES

r;===~ ====; I ! 3. Much of the radiation is :I absorbed by the Earth's 'I surface, causing it to warm.

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TlE GREENHOUSE EFFECT The emissions from the burning of fossil fuels - coal, on and natural gas - for en"9y ... tl]O.pri~ grC/:tJse"'"gases.

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! 4. Heat is emitted back into the I ! atmosphere as infrared radiation.

GREENHOUSE GASeS , ,'------~i 6.... but most is trapped by The emissions from the burning of fossil greenhouse gas molecules in the fuels - coal, oil and natural gas - for atmosphere. This warms the Earth's en"gy"e the p"m'!!Y<'OUK~~_ surface and lower atmosphere. greenhOU~,:__ 6:'_'_. ----=--~__

,', " GREENHOUSE GASES

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

oClOSE l IOWA'S FUTURE CLIMATE WORLD GREENHOUSE GAS EMISSIONS

WHAT IOWA'S CUMATE M1GKT BE UKE By 2030, Iowa iUmmerl could resemble those of Kansas in terms of average temperature and rainfall By the end of the century. Iowa's summer climate could generally be more like-what northwest Missiuippi is today. Winters also could change,. but less drastically - becoming something like curtent-day northern Kansas by the end of the century. KEY, :. _ _ ,----L Current Summer SUmmer 'Mnter by 2030 by 209S by 2095 COLD. IOWA WEATHER NOW'M L Averagehigh: 59.8'" A~e low: 40S II ----,1" ::::::;-,-~:::--1-==--, Average precipitation: 34.711Khes I I OKlA. -s-dmdlUlrcmOeJM::n!I •• I971·2000 f N.M. ; J

ANDUlI'"ER.- I ALA. GA. \ O Averagehigh:65"'- Averagelow:43.r W~~XAS I \. ~SS.\ .- -1. , Averagepredpltatlon:3S.SInches LA. <.~ ~ ~cndltalromToprb.K.wi.andsurro.ningarea.1971·2000 )l---~ ~ o Average high: 72- Average low: S3.r ~"../ ~fLA. Average precipitation: 54A Inches { , "llisedcndilUfI'om~ Tenn.,n1l.mUdng_m, 1971·2OXl ~ Slua!:lncndCDncemedSderllln ! ~NoItIanalWmlh!rSer.b MAPS I CHARTS

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

DnaSE 1 u.s. EMISSIONS TOTAL U.s. GREENHOUSE-GAS EMISSIONS, BY CATEGORY FOR 2006 IOWA EMISSIONS IOWA ENERGY SOURCES INDUSTRIAL IOWA ELECTRICITY 36.0% IOWA CONSUMPTION of emissions

RESIDENTIAL TRANSPORTAnON 17.4% 28.4% of emissions of emissions

COMMERCIAL 18.2% MAPS I CHARTS ofemiuions

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

DnoSE 1 u.s. EMISSIONS TOTALu.s. GRfiNHOUSE-6AS EMISSIONS, BY CATEGORYFOR 2006 IOWA EMISSIONS . ~. IOWA ENERGY SOURCES I . I···· IOWA ElECTRICITY i'J - -~.~': (. , . IOWA CONSUMPTION ..J 1) ...t.,.;: rt:-- -;. ;~ ~ . / EINDUSTRIAl TRANSPORTAnON mMMERaAL RESIDENTIAL 36.0% 28.4% 18.2% 17.4% of emissions of emissions of emissions of emissions

All categories Indude carbon from fuei combustion. one 01 the largest mntributots to greenhouse gases.

Also includes agriculture. Also Includes methane Also lndudes landfill§, Also indudes coal mll16, petroleum and and nitrous oxide sewage treatment plants, methane and nitrous natural gas pipelines. emissions from vehicles. commercial refrigerants, oxide emissions from Industrial-proass and emissions from the and machinery or direct fuel use. emissions, and machinery use of refrigerants by equipment that com busts or eqUipment that vehicle air-conditioners. carbon-bearing fuels or c:ombusts carbon-bearing waste streams. MAPS I CHARTS fuels or waste.

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

DnoSE 1 U.S. EMISSIONS HOW IOWA COMPARES WITH OTHER STATES IOWA EMISSIONS Estimates include energy consumption data for the~ fuel IOWA ENERGY SOURCES categorles: coal, naturalgilS and petroleum produ~ IOWA ElECTRICITY STATE EMISSIONS FOR 2004 STATE EMJSSIONS IOWA CONSUMPTION (MUJOJIllETJIICTONSOF CNl80N 0KllCIllEI PROJEcnONS 1. Texas 651.5 A state con!>UItlng fitm, the Center 2. California 398.9 for Oimate Strategies, projects that Iowa's greenhouse gas 3. Pennsytvania 282.5 emissions (rom energy use will rise 4. Ohio 263.6 to the equivalent of 114 milllon 5.Ronda 258.0 metric tons of carbon dioxide by 2025,up from 69.1 million in 1990 6. IOWA 81.8 and 85 million In 2005. 47.tdaho 15.6 In 2025, the largest shares would 48. South Dakota 14.0 be (rom electricity use (505 million metric tons), fuel use in 49. Rhode Island 11.0 residences and commercial and SO.Vermont 7.0 industrial businesses (30.2 mution). 51.Dinrl,t of Columbia 4.0 and transportation (295 million). MAPS I CHARTS Solrtt: Enefgy lnfoonaticn~.um

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

,------OClOSE

U.S. EMISSIONS IOWA'S ENERGY SOURCES IOWA EMISSIONS Iowa imports 95 percent of its energy from ~de thl!: stat~ Coal produces most of the power and the IOWA ENERGY SOURCES majority of greenhoue gases. IOWA ELECTRICITY FUEL USEDIN 1004 IOWA U.S. IOWA CONSUMPTION Cool _36.8~ 22.5'" Petroleum ..,...... 2... Natural gas -,• ,8.8 ... 22..... Renewable energy ,_...... ".,. Nuclear ,-".,. 8".,. Note5:Rerlnwible efIefgy indudes hydr~ geother~~ soli~wind and MAPS I CHARTS blomllSl. Agu," do nol add up to 100 per(erTt beause r:J roundIng.

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

DnaSE l U.S. EMISSIONS POWER FROM COAL EMITS MOST CARBON IOWA EMISSIONS CoaI'"generated electricity contributed 96.7 percent of Iowa's I carbon dioxide emissions in 2006. Nudear, hydroelectric: and IOWA ENERGY SOURCES other renewable sources emitted little to none III IOWA ELECTRICITY UfC'nUOT"f' G£H£UnOH IN ~ IOWA CONSUMPTION PERCENTAGE OF EMISSIONS TOTALELECTRICITY (I" thousands or ml!tnc tons) Coal EJ¥ii Nuclear .11.2" o Other renewables ISA'" 11 Naturalgas Is.3IM. 1,055 Hydroelectric 12,0% o Petroleum I 0.5% 255 Note: Other ~bln eatl!gOfY II primarily wind ~emion. MAPS I CHARTS 'iooo.uce: Igvq PlIn fOf Enefgy ~dmc~

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

0 U.S. EMISSIONS IOWA'S ENERGY CONSUMPTION CLOSE I IOWA EMISSIONS 1995·2004 2004-25" IOWA ENERGY SOURCES Coal .,"" .51% IOWA ELECTRICITY Natural gass .,.13% IOWA CONSUMPTION Petroleum .18'" NudearEnergy ...31" .&25"" Renewable Energy ... 12'" ... 3S-4O'H! "EstllNteo I MAPS I CHARTS Source;IOVR PW1 (01 EnergyInd~dm<~

OVERVIEW I SCIENCE I GRAPHICS I ABOUT How climate change could affect Iowa

SOURCES This graphic contains information from the sources listed below. Much is based on sdentifK projections and estimates.

Union of Concerned Scientists National Wildlife Federation Energy Information Administration World Resources Institute Environmental Defense Fund Environmental Protection Agency

CREDITS Illustration, design and programming by Craig JohnsonlThe Register Research and design by Katie KunertlThe Register Research by Perry BeemanfThe Register

OVERVIEW I SCIENCE I GRAPHICS I ABOUT www.desmoinesregister.comIPrinter-fiiendly article page Page 1 of 1

May 7, 2008

New coal plant can help develop options

Regarding the April 18 editorial, "Uncovered Manure a Threat to Streams": There is a technological approach that could eliminate or substantially reduce nutrient and methane losses to our streams, groundwater and air. It would entail a community-based approach to manure collection and processing that produces electric energy, hot water and stabilized, nutrient-rich soil amendments as end products.

Our electric-utility monopolies do not provide the appropriate economic incentives to entice "early adopters," the leading agriCUltural players who would like to deploy state-of-the-art technologies to develop community-based, large-scale anaerobic-digestion facilities. Such facilities are already common in Europe and are even in a few locations in the United States.

Alliant Energy's newly approved coal-fired plant in Marshalltown provides Iowa with an opportunity to bring anaerobic-digesting technologies online here. If a portion of the cost savings from the Marshalltown plant's relatively cheap energy could be used to subsidize the more expensive alternative generation facilities, we could have a win-win-win for the state; Alliant wins, rural Iowa wins and Iowans in general win.

The benefits of using recaptured methane from manure are enormous: reduced odor emissions, reduced air and water pollution, reduced methane-gas release, reduced erosion and reduced fertilizer use through the reuse of the digested manure.

If Iowans want clear rivers, safe drinking water and clean air, we must insist that our state's energy policies are driving smart environmental and social-policy goals in addition to making good economic sense.

- John Norwood, West Des Moines

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May 6, 2008

Develop and export clean-coal technology

The Register was right to point out that America must take a lead role in clean-energy technology, and that could not be truer than for developing c1ean-coal technology.

In Iowa right now, we're talking about new coal plants, but in China, they build one new coal plant every seven to 10 days. While half the electricity in the United States comes from coal, more than 70 percent of the electricity in China is coal-created.

If we were to stop using coal in America, that wouldn't stop the use of coal in the world. America needs to continue to develop commercially viable c1ean-coal technology that will capture and safely store carbon dioxide so it never enters the atmosphere.

That's an export we can market to the Chinese. It will allow Americans to keep using a reliable and affordable domestic source of energy while taking a leadership role in the world to combat climate change.

- Jerry Bernholtz, Des Moines

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May 5, 2008

Changing energy use entails all-out effort

The Register's Editorial

In tying conditions to last week's approval of a coal-fired power plant in Marshalltown, the Iowa Utilities Board sketched its vision for meeting Iowa's electricity needs: Ramp up energy-efficiency efforts and generate as much electricity as possible from clean, renewable sources, reducing reliance on dirtier ones.

If Alliant builds the plant, the board will require the company to generate 25 percent of its electricity from renewable sources, most likely wind, by 2028. Board members also said they would look for aggressive efforts in Alliant's pending five-year energy-efficiency plan.

However, changing Iowa's electricity profile will require more fundamental change, beyond actions of the utilities board and one utility. It will require changes by all Iowans in how we think about and use electricity, from how we construct and rehab bUildings to how we power industries. It also will require consistent, progressive leadership from the governor, Legislature and local governments, plus buy-in from businesses and consumers.

It remains unclear whether Iowans and their leaders are ready to step up. If this past legislative session is any indication, many lawmakers and the powerful utility and business interests that lobby them remain resistant to calls for sweeping change. But they're ready to take smaller steps and encourage collaborative efforts.

In his Condition of the State address, Gov. Chet Culver had called on the Legislature to require that 25 percent of all energy produced in Iowa come from renewable sources by 2025. Another initiative would have required all utilities - including rural electric co-ops and municipal utilities, not just the big investor-owned utilities - to report their energy-efficiency efforts to the utilities board.

Neither passed. But advocates salvaged pieces of those ideas in bills that will move the concepts forward. Some key electricity-related provisions that won approval:

- Iowa's utility associations will be required to produce a study by Dec. 1 that estimates the potential for cost-effective generation of renewable energy by 2025. That's a necessary step. Even states that have adopted "25 percent by 2025" types of requirements don't really know whether they can meet them.

- Rural electric co-operatives and municipal utilities will be required to set energy-efficiency goals by Jan. 1, 2010.

- The energy-conservation provisions of the state building code will now be in force statewide, including unincorporated areas, described by advocates as a major breakthrough. Rep. Nathan Reichert, a Muscatine Democrat, in particular deserves credit for his work on the bill.

- That same bill reworks a financing mechanism to help governments retrofit buildings for energy efficiency. School districts will be able to more easily finance such projects by borrOWing against future savings.

- Wind-energy tax credits were extended and retooled to allow individuals or businesses that generate energy for their own use to take advantage of them.

Much work remains. One example: A transmission grid designed to deliver power from a few big generating plants will have to be upgraded significantly to transmit power from scattered, far-flung wind farms or biomass facilities - using perennial grasses or cornstalks for fuel. http://www.desmoinesregister.com!apps/pbcs.dlll arti cle?A10=/20080 505/0 PIN ION03/80 5... 5/1 9/2008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

Some legislators are pushing for interim study committees on transmission and on the effectiveness of energy-efficiency programs from a consumer perspective. That should happen. These are complex issues, and the study committees help legislators build their own expertise as well as support for changes.

Last year's session produced significant progress toward smarter energy policy, with establishment of the Power Fund, to promote development of renewable energy; the Office of Energy Independence, a research and policymaking body; and the Iowa Climate Change AdVisory Council.

This year's session yielded smaller steps, but kept up the momentum. Next year, Iowa must take bigger strides toward transforming its energy use.

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May 2, 2008

Conditions set for coal plant 'reasonable'

By DAN PILLER REGISTER BUSINESS WRITER

The renewable-energy conditions that are part of the approval of Alliant Energy's new coal-burning generator for Marshalltown are "reasonable and attainable," Chairman Bill Harvey said Thursday.

The utility company had been noncommittal about the conditions, developed by Iowa Utilities Board Chairman John Norris, in the immediate aftermath of the board meeting Wednesday morning in Des Moines.

Harvey made his remarks Thursday while presenting Alliant's first-quarter profit of $68.1 million, or 62 cents per share, compared with $63.9 million, or 55 cents per share, in the same quarter a year ago.

The three-member utilities board voted 2-1 to approve the coal plant, subject to Alliant's making biomass fuel at least 5 percent of the fuel mix at the new generator within two years of beginning operations and 10 percent within five years.

Another condition requires Alliant to derive 10 percent of its generation from wind turbines by the time the Marshalltown plant enters service, expected to be in 2013.

If Alliant fails to meet those conditions, the board will not allow it to raise rates in an effort to recoup costs for carbon dioxide control, which Congress might soon mandate. Alliant also must get a c1ean- air permit from the Iowa Department of Natural Resources.

Despite the conditions, Iowa environmentalists criticized the utilities board's decision and hinted strongly that they would sue to block construction of the coal-fired generator.

Environmentalists have campaigned against new coal generators throughout the United States on the ground that the carbon dioxide emissions from such plants are the leading cause of global warming.

Alliant said the 2008 quarterly results were helped by colder weather in the 2007-08 winter compared with a year earlier, resulting in higher natural gas sales, and costs associated with the March 2007 winter storm.

Alliant's first-quarter operating profit increases were partially offset by higher fuel costs at its Wisconsin Power & Light Co. subsidiary and higher transmission costs on its Interstate Power system in Iowa.

Alliant stock rose $.50 Thursday to close at $38.17.

Register reporter Dan Piller can be reached at (515) 284-8161 or [email protected]

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May 1, 2008

Plant's OK dubious, but strings prudent

The Register's Editorial

The global dilemma of how to meet growing electricity demand without endangering the planet played out in a hearing room in Des Moines Wednesday, ending with a split decision to approve a coal-fired power plant in Marshalltown, but with several strings attached.

The Iowa Utilities Board's 2-1 decision will likely satisfy no one. The conditions lock Alliant Energy into cost and fuel factors across its system, such as an aggressive expansion of wind energy, that might be difficult to achieve. But if the plant goes forward, opponents note, it will tie Iowa to a coal- fired plant with a life of 40-plus years and no feasible technology in sight to capture and store the carbon dioxide it emits.

Those factors still argue against building the plant, at least for now. In a three-hour board discussion, Chairman John Norris outlined a persuasive case for delaying a go-ahead. Alliant used numbers that exaggerated need for the plant, he said, including high estimates for power-reserve margins, load forecasts and plant output, but low estimates for future wind generation, energy-efficiency savings and costs for retrofitting and operating the plant if carbon is regulated.

In the end, though, it was Norris who outlined the conditions that allowed him to vote yes, breaking the tie between members Krista Tanner, also voting for, and Darrell Hanson, voting against. Tanner had argued that Iowa needs base-load power - consistent generation to supply manufacturers 24 hours a day, unlike an intermittent source such as wind - and that there are no viable, clean alternatives for that.

The board weighed a withering range of factors, but concerns over climate change were paramount, including the near certainty of carbon regulation and the wild uncertainty over how much that will cost.

Carbon dioxide is a main culprl driving potentially catastrophic increases in average global temperatures, which could trigger drought, famine and displacement of millions of people as sea levels rise.

Carbon emissions from burning fossil fuels such as coal, oil and natural gas are not now regulated by state or federal law, but it's expected they soon will be. Although the cause of climate change is still questioned in some quarters, it was noteworthy that all three members agreed that considering greenhouse-gas emissions was appropriate and within the board's authority.

More regulatory hurdles lie ahead, and the company could pull the plug. But if the plant moves forward, the conditions Norris crafted could prove pragmatic, delivering a new supply of base-load power but still steering Iowa toward a cleaner energy future. One risk posed by building the plant is that it could decrease incentives for Alliantto pursue renewable-energy alternatives and for the company and consumers to press for energy efficiency.

The conditions will require Alliantto fulfill its pledges to use biomass such as switchgrass for 10 percent of the plant's fuel and to move aggressively to develop clean, renewable sources of generation systemwide. Both requirements will lessen greenhouse-gas emissions. The conditions also will require retrofitting the plant to store and capture carbon emissions when the technology is feasible.

And perhaps most important for Iowa, the conditions could help ensure there will be no need for Alliant to build yet another coal-fired plant anytime soon. They also send the signal that the same expectations will apply to the state's other utilities. And they would appear to set a high bar for a proposed coal-fired plant near Waterloo. http://www.desmoinesregister.com/apps/pbcs.d11larticle? A1D=12008050 IIOPINION03/805... 5/19/2008 www.desmoinesregister.comIPrinter-friendly article'page . Page 2 0[2

The path identified by the board is where Iowa's energy policy needs to head: Expand energy- efficiency efforts and develop clean, renewable sources in sufficient quantity to avoid reliance on dirtier ones.

Approval of a coal-fired plant now is questionable. But Iowa must take every step to ensure it won't build even more fossil-fueled power plants that could contribute to damaging the planet.

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May 1, 2008

Conditions put on coal plant's OK

By PERRY BEEMAN and DAN PILLER REGISTER STAFF WRITERs

Environmentalists vowed to fight the Iowa Utilities Board's decision Wednesday authorizing the construction of a coal-burning power plant at Marshalltown.

Opponents said the board members' own statements about the controversial project should bolster their chances of blocking the plant from being built.

The utilities board voted 21 in favor of the proposed 630-megawatt plant. But the board placed several conditions on how Alliant Energy, the plant's owner, would have to operate the plant- conditions Alliant said it would have to first evaluate.

The board's vote - an initial victory for Alliant - comes as critics have launched a massive effort to block dozens of new coal-burning power plants nationally, saying they will worsen global warming.

"Our case has never been stronger," said Carrie La Seur of Plains Justice, an organization that opposes the coal-fired plants as unnecessary and a threat to the public health.

Backers of tihe proposed Marshalltown plant have said it would be more efficient and would allow Alliant to cut back on generating power at its older plants that do not operate as cleanly.

Tom Aller, president of Interstate Power and Light Co., an Alliant subsidiary, praised tihe utilities board's vote. He said the new plant will mean more jobs, future economic development and plentiful power for the utility's customers.

But Aller said in an interview the utility will have to weigh the financial implications of the operating conditions imposed by the utilities board in its decision. The utility remains committed to the plant, however, Aller said in a statement.

The utilities board majority, citing concerns about global warming, voted to require Alliant to build more wind power, to make good on its promise to burn biomass along with coal in the Marshalltown plant, and to capture and store carbon from the plant when the board decides that is practical.

Opponents said there is no guarantee the carbon ever will be stored.

La Seur said a court challenge to the utilities board's decision is likely.

First, Plains Justice, the Iowa Environmental Council and Sierra Club plan to fight the plant's state air permit this summer and approval of Alliant's rate case before the utilities board in September.

"It's clear from the testimony that Alliant was misrepresenting costs," said Mark Kresowik of the Sierra Club. "The best thing for the ratepayers and members of the cooperatives is to drop the coal plant and champion efficiency and renewables instead."

The Sierra Club plans to make tihat point at an Iowa Department of Natural Resources meeting Monday about the air permit, Kresowik said.

All three members of the Iowa Utilities Board said Alliant's financial models used projections that, while within a realistic range, overemphasized factors in favor of the plant while underplaying financial uncertainties that would make tihe plant look less feasible. http://www.desmoinesregister.com/apps/pbcs.dll/ artikkel ?Dato=2 008050 I&Kategori= NEW... 5/112008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of3

Key questions surrounded a potential federal limit on carbon emissions and rapidly increasing fuel costs.

"Much of the information is stretched," said Commission Chainman John Norris.

Marshalltown Mayor Gene Beach was relieved the plant survived, at least so far.

"For a while it looked like the thing was going to lose," said Beach, who, like many elected officials in the Marshalltown area, supports the plant. ''We estimate there'll be 1,200 to 1,500 construction jobs while the plant is being built and 85 full-time new jobs after the plant is in service."

Iowa Consumer Advocate John Perkins, who opposed the project, calling it unnecessary, said the strings the board put on its approval will end up making the plant more expensive.

"The conditions will about double the cost of the plant, and Iowa ratepayers will have to pay for it," said Perkins, who could not detail how he arrived at that projection.

"It would have been cheaper to not build the plant, save the ratepayers the money. Instead, the ratepayers will have to pay for 800 megawatts of wind power and all that biomass power and still build the coal plant."

Under the conditions set by the utilities board, biomass would have to account for 5 percent of the plant's fuel within two years of the 2013 opening. Biomass would have to account for 10 percent of the plant's fuel five years later.

Alliant also would be expected to make wind energy at least 10 percent of its generation mix by the time the plant opens in 2013. Alliant now derives about 4 percent of its electricity from wind and is expected to add another 3 percent by 2010.

The utility also would be obligated to pay all the costs of the expected regulations on carbon dioxide emissions.

James Hansen, a Denison native who is NASA's top climate scientist, is among the opponents of the Marshalltown plant.

"Presumably, wiser heads will prevail, and it will be realized that it makes no sense to go ahead with the plant construction," he said.

He asked, "Why is Iowa not leading the nation with renewable energies such as wind and sensible biofuels (not corn-based ethanol) and energy efficiency, which provide better, local, jobs? Coal serves the interest of only a handful of oligarchs, but our officials are letting these special interests ride roughshod over the public, our planet, and creation."

Robert Latham, Cedar Rapids electricity consultant, said, "It looks like the board was trying to split the difference between the need for the plant and the desire for more renewable energy. Fortunately, Alliant already has begun along that path with some wind generation and a commitment to biomass fuels."

Board member Darrell Hanson, who cast the lone "no" vote Wednesday, said he favored postponing action for three or four years to see what limits Congress imposes on carbon dioxide and to analyze other market forces. "The safest and most reasonable course would be to delay for three or four years," he said.

Board member Krista Tanner countered: "I think the risk of not bUilding and coming up short on what (Interstate Power and Light) needs is too great."

Norris said he worried that approving a coal plant would give Iowa a black eye among business prospects looking for so-called green power. He said he would not support the Marshalltown plant without the conditions he proposed.

http://www.desmoinesregister.comlapps/pbcs.dll/artikkel?Dato=2008050 I &Kategori= NEW... 5/1/2008 ,', . "

CHRISTOPHER GANNONffHE REGISTER A standing-room-only crowd gathers during an Iowa Utilities Board meeting on anew coal-fired generating pi ant proposed for Marshalltown Wednesday morning. The board approved the plant on a 2-1 vote.\uFEFF

SOME REACTION TO ALLIANT DECISION WIECK: "This is not just a great thing for Marshalltown, but for all of Iowa," said Senate Minority Leader of Sioux City, one of many Statehouse Republicans who support the plant. ''This plant will help keep energy costs low for Iowa families, and access to low-cost electricity from coal is a huge economic driver in Iowa."

CULVER: Gov. Chet Culver, a Democrat, said the new plant would offset emissions from older plants while still being required to create more renewable energy.

HANSEN: James Hansen, a Denison native and NASA's top climate scientist, testified against the Marshalltown plant. He said the decision Wednesday was in favor of "special interests" and goes against Iowa's attempts to become a national leader in renewable energy.

"This is a case of cutting the baby in half, a dastardly deed," Hansen said. "Presumably, wiser heads will prevail, and it will be realized that it makes no sense to go ahead with the plant construction. Without a doubt it will be necessary to bring a bulldozer out within the next couple of decades or install carbon capture and sequestration, which is uneconomical." BOARD IMPOSES CONDITIONS ON PLANT Alliant Energy officials said that while they work to obtain an air permit from the state this summer for the new plant, the company will also assess the financial ramifications of the conditions imposed by the Iowa Utilities Board on the plant's operation. Here is what the utility is being asked to do:

- 5 percent of the fuel for the plant would have to be biomass within two years of the 2013 opening, and 10 percent by the five-year mark of operations.

- At least 10 percent of Alliant's power generation mix would have to be wind energy by the time the plant opens in 2013. Alliant now derives about 4 percent of its electricity from wind and is expected to add another 3 percent by 2010. After 2013. the utility would have to increase its wind energy capacity by 1 percentage point a year for 15 years.

- The utility also would have to pay any costs of carbon emission regulations if it misses either of those goals.

- The utilities board could order the utility to capture and store all carbon emissions, if that technology becomes feasible.

THE STORY SO FAR Alliant Energy. the company that wants to build the Marshalltown power plant, has said it hopes to begin operating the new plant adjacent to its 50-year-old facility on the east side of Marshalltown by 2013.

JOBS: The plant would create hundreds of construction and operating jobs. The plant would cost between $1.5 billion and $1.8 billion to build and would serve up to 472.000 homes and businesses. Two cooperatives, Central Iowa Power Cooperative and Corn Belt Power Cooperative. would be part owners of the plant.

CONFRONTATION: The application for permission to build the plant provoked a confrontation between Alliant and the Iowa Office of Consumer Advocate. which intervened in the case last fall in opposition to the plant. Consumer Advocate John Perkins said the plant was not needed. and Alliant should wait until new technologies are developed to burn cleaner fuels.

PRO: Alliant contended that it needed the new plant now so it could retire older, more environmentally dirty generating plants. The company also said that it has to rely too much - up to 30 percent - on power purchased from other utilities to supply its own customers.

CON: Environmental opposition centered on the plant's emissions of carbon dioxide. a major greenhouse gas that is blamed for global warming. Alliant insisted that new technologies and retiring older plants at Dubuque would lessen the environmental effect of the new plant. Members of the Iowa Utilities Board said the Marshalltown plant would over time increase greenhouse gas emissions in Iowa.

POLLUTION: Critics noted that almost 80 percent of Iowa's electricity already comes from coal- burning plants, acknowledged to be the most polluting of electricity fuels. Utilities have switched from natural gas back to coal in recent years in response to a quadrupling of natural gas prices. FUTURE: Opponents argued that Alliant should wait on bUilding a new plant because Congress is likely to put controls on carbon dioxide emissions, which could increase the cost of coal- burning plants. WHAT'S NEXT? TODAY: Alliant Energy announces its second-quarter earnings.

MONDAY: Iowa Department of Natural Resources' informal meeting to discuss procedures for the review of Alliant's air permit for the Marshalltown plant, 6:30 p.m. at Whitehill Auditorium, Iowa Veterans Home, Marshalltown.

MAY 15: Alliant's annual shareholders meeting in Madison, Wis.

SUMMER: DNR action on air-quality construction permit for the Marshalltown plant.

SEPTEMBER: Iowa Utilities Board rate case for the Marshalltown plant.

FOURTH QUARTER 2008: Alliant expects construction to begin at Marshalltown. WHAT'S NEXT? TODAY: Alliant Energy announces its second-quarter earnings.

MONDAY: Iowa Department of Natural Resources' informal meeting to discuss procedures for the review of Alliant's air permit for the Marshalltown plant, 6:30 p.m. at Whitehill Auditorium, Iowa Veterans Home, Marshalltown.

MAY 15: Alliant's annual shareholders meeting in Madison, Wis.

SUMMER: DNR action on air-quality construction permit for the Marshalltown plant.

SEPTEMBER: Iowa Utilities Board rate case for the Marshalltown plant.

FOURTH QUARTER 2008: Alliant expects construction to begin at Marshalltown. Power plant approved I Times Republican Page I of2 'mte=littpBfit.' Central Iowa's Daily NC\l-spaper ___ 4, _ ~_ .m ~,~__... _ .U>:lWZ:::SSi4 __ :S::S X¢2 = ., i.·m.w:::. =_ w'*= _:;::::::_ Today's News

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«--b_a~ckJ~LsJOLY Power plant approved Power plant project gets narrow 2-1 approval

By RYAN BRINKS, TIMES-REPUBLICAN

IPOSTED: Mayl,200B With contrasting votes on each side of him, Iowa Utilities Board Chairman John Norris conceded permission for a new power plant to be built in Marshalltown Wednesday by forcing renewable energy sources to be developed alongside it.

While Norris stressed during the meeting of the three-person board in Des Moines that he thought Alliant Energy overstated the need for the 630-megawatt coal-fired power piant, his "yes" vote gave the project 2-1 approval to be built but came with three strings attached.

Without the strings, which he said protect customers from some of the risks of such a long-term investment, he said he would "probably not support" the project.

The conditions first require Alliant to quickly reach its proposed capacity for burning renewable sWitchgrass or corn stalks with the coal - 5 percent of the plant's output within two years and then 10 percent of output by the five-year mark. T-R PHOTO BY RYAN BRINKS Iowa Utilities••Board member Darrell That would decrease emissions and provide economic Hanson, far left, gestures to IUB staff and development opportunities, Norris said, and if Alliant fails to a room full of meeting attendees meet those goals, he proposed they would receive less Wednesday in Des Moines as he explains reimbursement from customers' bills for whatever shortfall arguments surrounding the proposal to they had at each deadline. build a new power plant in Marshalltown. Hanson cast the lone vote to deny Second, Alliant's electricity generation from renewable permission for the project, which was energy, primarily wind, must make up 10 percent of its total approved 2-1. energy mix by the time the power plant starts operation in 2013 and must continue to increase by 1 percent a year for Fact Box IS years. TIMELINE Anything short of those goals would place responsibility for Jan. 19, 2007 - Alliant Energy any carbon cost related to that portion on the shoulders of announces plans to build a new power the company, not its customers, Norris added. plant in Marshalltown May 21, 2007 - The IUB holds a public Alliant's renewable energy currently contributes 3.5 to 4 information meeting in Marshalltown percent of its total with a 200 megawatt wind farm in the July 2, 2007 - Alliant applies for http://www.timesrepublican.com/page/content.detail/id/505670.html?nav= 500 5&show layou... 51I12008 Power plant approved I Times Republican Page 2 of2

works that would boost the level to 7.7 percent, he said. All permission from the Iowa Utilities Board that would be needed to meet the condition is slightly less to build the plant than another 200 megawatt wind farm over the next couple Aug. 16, 2007 - The IUB accepts years. After that, approximately 50 megawatts of new wind Alliant's application and sets a timeline generation each year would accomplish the ongoing 1 for its decision-making process percent condition. Jan. 14, 2008 - The IUB collects testimony for and against the project Third, the IUB would periodically review the feasibility of during a week-long hearing in retrofitting the plant with equipment to capture carbon Marshalltown dioxide emissions. March 31, 2008 - Alliant applies to the IUB for rules on how it can recover Board member Krista Tanner also voted to approve the building costs through customer rates project and Darrell Hanson voted against it.

~~fi§il!PijfEffi\! Yfi!iilitffifri:1\'eatl~OO€!~ ~t!!I!I#i§ted, andl~~aw:;m:mnmnrnm:atiVi;:mrn~mrrt=J power generation on the horizon.

"If we're wrong and we don't need all that capacity, just shut down older, less efficient plants," she said.

Hanson said there were risks on both sides of the decision and asked himself which were the reasonable risks to take.

"Personally I think the consequences are greatest if we build the plant," he said, listing increased capital and likely carbon costs for ratepayers, a stunting of renewable energy development, missed opportunities to apply engineering advances coming in the near future and more information on greenhouse gas emissions.

He compared those to risks related to not building the plant, of losing flexibility the plant will provide to Alliant's fleet of power plants, paying more for the plant in the future, higher costs for purchased power agreements with other energy providers and difficulty meeting base load power needs.

Hanson said he came into the meeting with a tentative verdict and concluded he still felt delaying construction of the plant was the least risky solution.

Further details of the board's decision and the conditions tied to it will be provided in writing after a few weeks. The board discussed the key factors in the case all morning in the presence of the public before voting. Per the IUB process, they had not previously debated the merits of the project together.

Contact Ryan Brinks at 641-753-6611 or cbLLnJ[email protected]]]

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«--b_,,-c)Lt05tOlY Power plant approved Power plant project gets narrow 2-1 approval

By RYANBRINKS, TIMES-REPUBLICAN

IpOSTED:MaYl,2008 With contrasting votes on each side of him, Iowa Utilities Board Chairman John Norris conceded permission for a new power plant to be built in Marshalltown Wednesday by forcing renewable energy sources to be developed alongside it.

While Norris stressed during the meeting of the three-person board in Des Moines that he thought Alliant Energy overstated the need for the 630-megawatt coal-fired power plant, his "yes" vote gave the project 2-1 approval to be built but came with three strings attached.

Without the strings, which he said protect customers from some of the risks of such a long-term investment, he said he would "probably not support" the project.

The conditions first require Alliant to quickly reach its proposed capacity for burning renewable switchgrass or corn stalks with the coal - 5 percent of the plant's output within two years and then 10 percent of output by the five-year mark. John Norris, left, and Darrell Hanson, two of three members••on the Iowa Utilities That would decrease emissions and provide economic Board, shuffle through papers while development opportunities, Norris said, and if Alliant fails to discussing the case to build a new power meet those goals, he proposed they would receive less plant in Marshalltown Wednesday during reimbursement from customers' bills for whatever shortfall their meeting in Des Moines. they had at each deadline. Fact Box Second, Alliant's electricity generation from renewable energy, primarily wind, must make up 10 percent of its total TIMELINE energy mix by the time the power plant starts operation in Jan. 19, 2007 - Alliant Energy 2013 and must continue to increase by 1 percent a year for announces plans to build a new power 15 years. plant in Marshalltown May 21, 2007 - The IUB holds a public Anything short of those goals would place responsibility for information meeting in Marshalltown any carbon cost related to that portion on the shoulders of July 2, 2007 - Alliant applies for the company, not its customers, Norris added. permission from the Iowa Utilities Board to build the plant Alliant's renewable energy currentiy contributes 3.5 to 4 Aug. 16, 2007 - The IUB accepts percent of its total with a 200 megawatt wind farm in the Alliant's application and sets a timeline http://www.timesrepublican.com/page/content.detail/id/505670.html?nav=500 5&show layou... 51I/2008 Power plant approved I Times Republican Page 2 of2 works that would boost the level to 7.7 percent, he said. All for its decision-making process that would be needed to meet the condition is slightly less Jan. 14, 2008 - The IUB collects than another 200 megawatt wind farm over the next couple testimony for and against the project years. After that, approximately 50 megawatts of new wind during a week-long hearing in generation each year would accomplish the ongoing 1 Marshalltown percent condition. March 31, 2008 - Alliant applies to the IUB for rules on how it can recover Third, the IUB would periodically review the feasibility of bUilding costs through customer rates retrofitting the plant with equipment to capture carbon dioxide emissions. Board member Krista Tanner also voted to approve the projeb:'=:antri~mm=iRiJiT5iiiITvcimifii~rn;:5rir.==:J

Tanner disagreed with Norris' assessment that future projections of the need for the plant were overestimated, and she saw no other alternative for baseload power generation on the horizon.

"If we're wrong and we don't need all that capacity, just shut down older, less efficient plants," she said.

Hanson said there were risks on both sides of the decision and asked himself which were the reasonable risks to take.

"Personally I think the consequences are greatest if we build the plant," he said, listing increased capital and likely carbon costs for ratepayers, a stunting of renewable energy development, missed. opportunities to apply engineering advances coming in the near future and more information on greenhouse gas emissions.

He compared those to risks related to not building the plant, of losing flexibility the plant will provide to Alliant's fleet of power plants, paying more for the plant in the future, higher costs for purchased power agreements with other energy providers and difficulty meeting baseload power needs.

Hanson said he came into the meeting with a tentative verdict and concluded he still felt delaying construction of the plant was the least risky solution.

Further details of the board's decision and the conditions tied to it will be provided in writing after a few weeks. The board discussed the key factors in the case all morning in the presence of the public before voting. Per the IUB process, they had not previously debated the merits of the project together.

Contact Ryan Brinks at 641-753-6611 or [email protected]'>[email protected]

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April 30, 2008

Iowa Utilities Board approves Marshalltown generating plant

By DAN PILLER AND PERRY BEEMAN REGISTER STAFF WRITERS

The Iowa Utilities Board Wednesday approved by an application by Alliant Energy to build a new coal-fired generating plant at Marshal~own.

The panel voted two-to-one in favor of the plant, with the condition that Alliant achieve a threshold of 5 percent biomass fuel use within two years of the expected beginning of operations in 2013 and 10 percent biomass use five years later.

Alliant also would be expected to make wind energy at least 10 percent of its generation mix by the time the plant opens in 2013. Alliant currently derives about 4 percent of its generation from wind and is expected to add another 3 percent by 2010.

Under the terms of the compromise, crafted by chairman John Norris, Alliant would be obligated to pay all the costs of the expected regulations on carbon dioxide emissions.

Norris noted that Alliant has taken out newspaper advertisements boasting of its commitment to biomass energy, and said "so we're saying, do it."

Tom Aller, president of the Alliant subsidiary Interstate Power & Light Co., said Alliant would have to study Norris' conditions before making a commitment.

"We're glad the board saw fit to approve the plant, but we will have to take a look at the details:' Aller said.

Board member Krista Tanner voted with Norris to approve the plant under the conditions while Darrell Hanson voted no. Hanson argued for more time before a decision is made on the plant.

Hanson noted that the issue wasn't clear cut, and said "it comes down to which mistake do we make?"

Alliant has said it hopes to have the plant, located adjacent to an existing 50-year-old facility on the east side of Marshalltown, in service by 2013. The 649 megawatt plant, estimated to cost between $1.5 billion and $1.8 billion, would serve up to 472,000 homes and businesses. Two cooperatives, Central Iowa Power Cooperative and Corn Belt Power Cooperative, will be part owners of the plant.

Alliant is based in Madison, Wis. It owns the former Interstate Power & Light Co., which serves 575,000 Iowa customers primarily in Cedar Rapids, Dubuque, Mason City, Keokuk, Burlington and Marshalltown.

The application had provoked a confrontation between Alliant and the Iowa Office of Consumer Advocate, which intervened in the case last fall in opposition to the plant. Consumer Advocate John Perkins said the plant wasn't needed and that Alliant should wait until new technologies were deveioped to burn cleaner fuels.

Alliant had argued that it needed the new facility so it could retire older, more environmentally dirty generating plants on its system. It also said that it has to rely too much - up to 30 percent - on power purchased from other utilities and generators to supply its own customers.

Environmental opposition centered around the plant's emissions of carbon dioxide, which has been http://www.desmoinesregister.com/apps/pbcs.dll/artikkel?Dato=20080430&Kategori=NE... 4/30/2008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

accused of being a major cause of global warming. Alliant had insisted that new technologies and retirement of older plants on its system at Dubuque would lessen the impact of the new plant.

Critics noted that almost 80 percent of Iowa's existing electricity generation already comes from ooal, which is acknowledged to be the most polluting of electricity fuels. Utilities have switched from natural gas back to coal in recent years in response to a quadrupling of natural gas prices.

Opponents argued that congress is likely to put controls on carbon dioxide emissions, which it has not done before. Those controls could ultimately prove to be expensive or hamper the operations of coal- fired generators and Alliant should thus wait until the future of carbon emission regulations is more clear.

Mid American Energy in Des Moines last year put into service a new 790-megawatt coal-fired generator at Council Bluffs. An independent merchant generator has announced plants to build a new coal-fired generator at Waterloo, but the matter has not yet been taken up by state regulators.

http://www.desmoinesregister.com!apps/pbcs .dlllartikkel? Dato="200804 3O&Kategori= NE... 4/30/2008 Bill NEIBERGAlUREGISTER PHOTO Sutherland Station, Alliant's coal burning electric generating plant on the east side of Marshalltown. www.desmoinesregister.comIPrinter-friendly article page Page 1 of 1

April 30, 2008

Iowa Utilities Board approves Marshalltown generating plant

By DAN PILLER AND PERRY BEEMAN REGISTER STAFF WRITERS

The Iowa Utilities Board Wednesday approved by an application by Alliant Energy to build a new coal-fired generating plant at Marshalltown.

The panel voted two-to-one in favor of the plant, with several conditions including that Alliant burn biomass, store carbon and build new wind power.

Alliant has said it hopes to have the plant, located adjacent to an existing 50-year-Qld facility on the east side of Marshalltown, in service by 2013. The 649 megawatt plant, estimated to cost between $1.5 billion and $1.8 billion, would serve up to 472,000 homes and businesses. Two cooperatives, Central Iowa Power Cooperative and Corn Belt Power Cooperative, will be part owners of the plant.

Alliant is based in Madison, Wis. It owns the former Interstate Power & Light Co., which serves 575,000 Iowa customers primarily in Cedar Rapids, Dubuque, Mason City, Keokuk, Burlington and Marshalltown.

The application had provoked a confrontation between Alliant and the Iowa Office of Consumer Affairs, which intervened in the case last fall in opposition to the plant. Consumer Advocate John Perkins said the plant wasn't needed and that Alliant should wait until new technologies were developed to burn cleaner fuels.

Alliant had argued that it needed the new facility so it could retire older, more enVironmentally dirty generating plants on its system. It also said that it has to rely too much - up to 30 percent - on power purchased from other utilities and generators to supply its own customers.

Environmental opposition centered around the plant's emissions of carbon dioxide, which has been accused of being a major cause of global warming. Alliant had insisted that new technologies and retirement of older plants on its system at Dubuque would lessen the impact of the new plant.

Critics noted that almost 80 percent of Iowa's existing electricity generation already comes from coal, which is acknowledged to be the most polluting of electricity fuels. Utilities have switched from natural gas back to coal in recent years in response to a quadrupling of natural gas prices.

Opponents argued that congress is likely to put controls on carbon dioxide emissions, which it has not done before. Those controls could ultimately prove to be expensive or hamper the operations of coal- fired generators and Alliant should thus wait until the future of carbon emission regulations is more clear.

MidAmerican Energy in Des Moines last year put into service a new 790-megawatt coal-fired generator at Council Bluffs. An independent merchant generator has announced plants to build a new coal-fired generator at Waterloo, but the matter has not yet been taken up by state regulators.

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April 30, 2008

Marshalltown coal plant vote set for today

The Des Moines Register

Iowa Utilities Board members will decide today whether to approve the request by Alliant Energy to build a coal-fired generating plant at Marshalltown. The plant would serve 472,000 homes and businesses. Alliant intends for the plant to be in service by 2013.

When: The board meeting begins at 9 a.m. at 350 Maple 51. in Des Moines.

Alliant says: Alliant argues it needs the 649-megawatt plant, of which it will share ownership with Central Iowa Power Cooperative and Corn Belt Power Cooperative, in order to maintain an adequate supply of electricity. The utility says that coal is the cheapest fuel currently available.

Foes say: Opponents respond that the proposed plant's carbon dioxide emissions would harm the environment and that Alliant can afford to wait until cleaner generation technologies are available. They contend that Iowa's electricity needs can be met by conservation and alternative sources.

http://www.desmoinesregister.com/apps/pbcs.dlllarticle? AID=1200804301N EWS/8043003... 4/3012008 \

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..-~ 4 •• ; , ~. well just burn ,J the corn Here is a way to both help the economy and avoid the 'neces- sity of more fossil-fueled electric plants: How about a com-fired power plant? The increased ef- ficiency in converting food into energy would allow us to end the Harkin-Grassley ag-welfare pro- gram that is the ethanol subsidy. With the ethanol subsidy dol- lars, let us instead fund public- domain research into the ultimate flex-fuel vehicle, an electric car. II can be fueled by wind, solar, nuclear, hydro - even clean coal. Once we have successfully achieved that, perhaps we can return to'using our food for the nourishment of people - and fire the legislators from both parties who thought it was good to sub- sidize food burning. -Sam Adams, Spillville. Prepare children to take care of Earth

According to many scientists and economists, some of the , biggest crises that we will face in the future will be environ- mental. One of the best ways to address these issues is to educate children \b;ga~!on7nviro'\tr\~ntal _. problems: ..!,t!isthe young\\f ;gen. erations that,will.,",. -"01:.", face mostof.' ~ the :=1 consequenc~s of OUf. treatm~I}tof the Earth and will therefore have to address .the problem. The No Child Left Inside Act of 2007 is Ii wonderful way to prioritize environmental educa- tion. This act, which has been introduced in Congress, would increase funding for environ- mental education and teacher training, and would ensure that our youngest generations have an understanding of the envi- ronmental issues affecting our world today. Environmental education pro- _. vides real-world applications for rt- other core subjects and sparks overall academic interest, as well as engaging students in a more active lifestyle. L~. _.~...._.. ..":":If'ebecca Minon secretary, Centnil College Students Concerned About the Environment (SCATE), Pella. Des IUoinrs SunbatJ flrgisttr o GC SUNDAY . April 27, 2008 Coal_plant plan stokes cost questions Alliant project's supporters, critics debate merits of building

generator VS, buying power

By DAN PILLER ily natural gas and coal - has REGISTER BUSINESS WRITER risen. thef Iowa Utilitie.s Board "Our whole point in asking for DOUG WEllSITHE REGISTER decides Wednesday to this new plant is that we don't "Alliant can wait until at least 2016 to let AIliant Energy build a want the Iowa economy to be coal-fired electricity gen- subject to the volatility of the 58e what other technologies come along erator at Mar$fiaIltown, nation.al wholesale electricity that wIll be cleaner than coal." AIliant'sI customers ~ill pay market," said Tom Aller, AIliant I for the plant in their regulated senior vice president who heads - John Perkins, Iowa consumer advocate I rates. 1. the utility's Iowa operations. But if the board turns down the "We want to be less reliant on I Alliant request, the utility's cus- purchased power." I tomers won't get off fr"e. They'll still pay for the electricity - not Opponents said the choice I in the regulated rate portion of between new generation and. I their bill, but on the "fuel adjust- purchased power is spurious. ment cost" line in the monthly "We say that AIliant doesn't statement. need either new coal-fired gen- . That's where utilities such as eration or purchased power, AIliaiit pass through their extra but can operate with increased BIll NE1BERGAlLITHE REGISTER charges, such as for natural gas efficiencies and by adding more ''We don't want the Iowa economy to be and other fuels. AIliant said in a wind generation," said John Feb. 28 filing with the Securities Perkins of the Iowa Office of subject to the volatility of the national and Exchange Commission that wholesale electricity market." in 2007,one-third of.ttI'e power See ALlIANT, Page2D it provided its cust0tlirs was - Tom Aller, Alllant senior vlca president bought from other utilities or -----~~~-- independent generatofiii The cost of thatG;wer is passed along to customers as a fuel adjustment. Th~ost has gone up in recent y~ars as the price of utility fuels'f/'rirnar- ,

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Providing Iowa's power Imp Generators owned or operated by Iowa's two largest utilities, Alliant Energy and MidAmerican Energy, provide about 80 percent of the electricity used by Iowa's homes, businesses and factories. The ;hurt remainder of the electric capacity is provided by Iowa's 47 municipally owned systems. POWER PLANTS lers, Plants with capacity of 100 megawatts or more. • Coal • Natural gas .1 Nuclear s

I Page10 s consumers 'ears able to lutthe small t the end of doUar indus- 'd often goes .nths. cords show rticularly for :ling counties pumps every ds require all art pumping e price meter lutcher of the !of Standards Irt ofthe U.S. rtmen!. knew some· Ig when the 1 Davenport, mt two more nto his tank Ids. lut it wasn't Wolfram, 54, o a consumer COAL PLANTS ook it to the 11,613 1954"" ulators. who <$>L Walter Scott, Units 1·4 Council Bluffs c lut even then, ~~ George Neal, Units 1·4" Sergeant Bluff 11.583 1964"" hepumpwas

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\'1· :1 J .-rJ:J ) I 1 New plant will create jobs

When you flipa light switch or plug in good jobs in central Iowa. Construc- your cell phone, the power must come tion of the facility will bolster Iowa's from somewhere. We don't always economy with more than 1,400on-site think about where, but the source of union construction jobs and a project our growing demand for power needs payroll of approximately $343 million. greater attention in Iowa. Upon completion, the power plant , Construction of the proposed power expects to employ 85, with an annual plant in Marshalltown should be ap- operational payroll of approximately : proved by the Iowa Utilities Board. $8.5 million. A recent economic-devel- ! When we flip the switch in the future, opment impact analysis indicates that ' we expect the power to be there, and the facility could support the growth the application before state regulators of 105,000 Iowajobs with a total labor ' clearly meets the criteria. And with payroll of $3.65 billion. Approval of ' the Marshalltown project, Iowa has a this plant would mean a stronger Iowa chance to use ag products like com that has greater control of its energy stalks to help fuel our future. destiny, with a modem and efficient The Iowa Federation of Labor, AFL- plant that will replace older and dirtier i CIO not only supports the construction facilities operating in our state. ' of this hybrid coal plant because of the - Ken D. Segar, jobs and economic stimulus it would president, Iowa Federation of Labor, - provide, but also believes the plant AFL-CIO, ' - -Ij-~---]------would be a magnet for the creation of Des Moines.

Burning natural gas emits carbon dioxide, too Last Sunday's dialog on carbon-diox- is such a good idea; why not the same ide (C02) emission at the Marshalltown for natural gas? Two·thirds of millions coal plant was irresponsible - no hard of tons is still millions of tons. The cost facts in science or economics were of coal, nuclear or hydroelectric is about presented. 4 cents per kilowatt hour. Wind is prob- Carol Hunter's column offers little ably closer to 13 cents. Gas may be be· hope. Our Iowa Legislature is appar- tween 8 and 10cents, depending on the , ently just duplicating part of federal price at the moment. The basic truth is H.R. 2764 on carbon-dioxide emissions that gas is roughly twice the cost of coal; reporting for 2009. Modern coal plants the Register doesn't mention this. Any remove or minimize most important pol- informed arguments need to discuss lutants except fqr carbon dioxide. Coal economics in detail. Are Iowans willing haters tell us .that'!al1ll'a! gas "emits to have their electric bills double? Are much less carbon dioxide," But how we willing to see more businesses take ' much less? One-third less, not half, not their operations elsewhere? 90 percent. One-third less carbon diox- Gas is not an "abundant natural reo ide from gas, and for that, the Register source," as has been stated. Gas is a condemns a new coal plant. To get the precious resource that should be saved energy, you must take carbon dioxide, for where it is most needed: heating period. A school child can Google and homes and making fertilizer and needed verify this in minutes. chemicals. The Register argues that any new - Philip Slrohbehn, coal plant should sequester CO'. If this Webster City. Yester9ayis IOWA'S ,~utility policies POWERFUL DECISION I: don't fit today's I challenges I ':-aws and policies governin utilItIes were created' g I coaJInatural gas era The~nhthe I per utilities' efforts 'to i am- :~hdo not serve the PUb~~~~~ Consider eyonce did. . If utilities had more f1exibil'ty health risks and room for trial I g!ey could better s::;,~ :~~i b~m coal and toward sustain- The only risk to Alliant En- a e en~rgysources. ergy is cost, but the risk to Io- The hIstorical way of looki wans and others is very great. at energy su . ng demand f ggests Increasing How to meet It is es~imated that 24,000 or electnclty and the people die each year as a result neekdto plan for base-load and demand of coal-fired generators. pea power need Wi still fit s. Ind power for electricity Why do we have different s aW.kwardlyinto this a _ standards for coal-fired gen- ~roac~. ThIs historical approa~h erators than nuclear reactors? oesn t fit today's challenges We have not had any deaths As for demand, we can't e~- from civil and military nuclear pect conservation with 18 reactors, nor do such reactors cent surpl per- contribute to global warming. People will'!S power available. It . .Justgo on wasting it Iowa should not license any ISessentIal to protect life and new coal-fired plants without fr?P%r!y and to provide stability using the technology that ex- t~ m ustry, but it is not essential ists that will prevent health at we all be comfortable every and environment risks. moment or have unlimited ac- - Robert Oberbllllg, cess to energy C I" . deal' . a hornla must Des Moines. WIthpeak demand d . ~::.at~aves by invoking sen~';;,~~ 'dns or reducing usage state- ~-...-~ WI e, to avert blackouts 10wa hi'as earned to cope with ~now days and can cope with w~~ as California does. As heat e~ grow m duration and ~:~enty, we must eventually do 'Secondhand' coal emissions get little scrutiny IS.Those Whowant the I of unlimited energy '11uxury Aniidst some great debate about the people already at risk. I to fund their own su;:'in:~~~ proposed Marshalltown electrical plant, It sounds hyperbolic to say that people I ~~~~ces: as some have already one angle seems curiously overlooked: will die if this plant gets built, but com- I There WIth home solar panels. the degree to which emissions from such mon sense dictates that it's pretty close to bUI'ldshcaOUlbdbe a real incentive a plant would take a toll on the health to the truth. ron-neutral and lifespan of Iowans. In fact, it's highly ironic that we're hav- I h~edtoUcing.the burning of coal When I was younger, I had crippling ing this discussion after the Legislature . begIn now if we are to asthma. I was fortunate enough to grow has just passed a statewide smoking ban. I ~~Oglfobthaleworst consequences out of it, but I'm all too horrifyingly Apparently, secondhand smoke is such I warmIng Step wi aware of what a lung ailment entails. So a menace that we've curtailed it in most . reductions are hi~dered ~e how much are Iowans going to suffer if public places, but we're apparently OK .j the long use-life (40+ y with spewing who knows how many tons of a coal power plant that plant goes into operation? The util- .. . t t h making . Ie;TS)e,ore ity companies would doubtless quibble of coaI emISSions In 0 our a mosp ere. . an enormous invest~ about the number of people affected, but Am I the only person who sees the inher- , ment m new coal that willI it's profoundly stupid to pretend that the ent contradiction in this? a very long time, as a socIety.ast - LarsPearson, we must make the tran 'ti plant's emissions won't cause increase tosut'bl Slon Des Moines. s ama e energy easier fo incidents of lung disease, and even kill . '. 1 everyone. r - Joyce Emery, Ames. www.desmoinesregister.comIPrinter-fiiendly article page Page I of 1

April 25, 2008

Proposed plant balances concerns over power rates, climate change

Marion Denger

The electric cooperatives that provide electricity in each of Iowa's 99 counties appreciated the time and space The Des Moines Register's opinion pages devoted to energy and the environment the week of April 13. The diverse opinions expressed about how legislators, regulators and utility companies should address concerns about climate change and ensure reliable, safe, affordable and environmentally responsible power illustrated the complexities of this issue, which impacts every Iowan.

The viewpoints also revealed that there is no silver bullet that addresses all the pocketbook and quality-of-life concerns on this issue. Unfortunately, technology does not yet exist to generate 24/7, reliable and carbon-free electric generation that's affordable for all consumers, especially Iowans who are poor, elderly or on fixed incomes and cannot afford yet another cost increase.

At Iowa's electric cooperatives, which are owned by the members we serve, we understand that balancing energy needs with the environment is a significant challenge. We are committed to helping develop a solution that is consistent with the best interests of the approximately 650,000 Iowans to whom we provide electricity.

We continually look for the best choices for matching power supply with growing demand for electricity. That is why two of our members will be joint owners in Alliant Energy's proposed Sutherland Generating Station NO.4 near Marshalltown. The Sutherland plant, like MidAmerican Energy's Walter Scott Jr. Energy Center Unit 4, in which our members also are joint owners, will help meet growing consumer demand for electricity.

Both are coal-burning plants with the best technology available today and will produce 15 percent fewer emissions than the previous generation of coal plants. That's good for the environment, and it's also good for our member-owners because it helps maintain affordable electricity. And, the state's economy benefits because Iowa continues to be competitive with the states around us in attracting new businesses that provide jobs for Iowans.

Wind energy is part of the solution, too, and we're investing in it. But since the wind doesn't blow 24/7, it can't be counted on by itself to reliably meet demand. Energy efficiency also is part of the solution, and we're in the process of enhancing the energy-efficiency programs we offer to our member- owners to help them use energy wisely and to save money on their home-energy costs.

On the federal level, much fact finding, discussion and a significant commitment to research and development are needed to ensure a balanced solution that addresses concerns about global climate change. Some say we have only one chance to get this right, and if that's true, we need to make informed decisions, not emotional choices.

MARION DENGER is president of the board of directors of the Iowa Association of Electric Cooperatives, which represents the interests of cooperatives that provide power in each of Iowa's 99 counties.

http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080425/0PINION 01/804... 4/30/2008 This is one in a series of essays about the proposed coal-fired power plant in Marshalltown. - SATURDAY: Iowans weigh in with letters to the editor favoring and opposing the plant. - LEARN MORE: Go to DesMoinesRegister.com/coal to learn more about the proposed plant and about climate change. Find links to government reports and filings in the Marshalltown case. - VOICE-YOUR VIEWS: Join a forum at DesMoinesRegister.com/coal or write a letter to the editor: [email protected]. www.desmoinesregister.comIPrinter-friendly article page Page 1 of2

April 24, 200B

Coal-plant emissions threaten public health

Maureen McCue

On Sunday, the Iowa Medical Society, which represents more than 4,600 physicians in Iowa, passed a resolution supporting "policies that encourage and require investment in energy efficiency, conservation, and renewable energy" and "clean and safe energy with the least detrimental impacts upon the public's health."

The Des Moines Register editorial board made much the same arguments Sunday in opining that "building a coal-fired plant in Marshalltown is not now the right course for Iowa."

Iowans' health will benefit from decision makers listening to that advice, particularly the health of our most vulnerable communities: infants and the young, pregnant mothers and the elderly. We do not need the additional health threats posed by new coal plants. Instead, we need to support economic growth and lower energy costs through energy efficiency and clean, safe energy.

Each proposed coal plant would likely emit around 100 pounds of mercury a year, much of which would end up in our lakes and streams, and eventually, our bodies. The Environmental Protection Agency states that "on balance, mercury from coal-fired utilities is the hazardous air pollutant of greatest potential public-health concern."

In expressing their concern about coal-fired power plants, Texas' Catholic bishops noted that mercury poses a particular risk to "unborn life." Thousands of women of child-bearing age have elevated levels of toxic mercury in their blood, which could lead to reduced IQ and neurologic impairment in their children.

Many of Iowa's waterways, including parts of the Cedar, Upper Iowa and Mississippi rivers have fish- consumption advisories warning Iowans not to eat more than one meal a week because of elevated mercury levels. The Idaho governor, a Republican, banned coal plants in his state because "the health implications of mercury emissions from coal-fired power plants far outweigh any economic benefits."

Another major concern: climate change. Dr. Howard Frumkin, director of the Center for Disease Control's National Center for Environmental Health, calls climate change "perhaps the largest looming public health challenge we face." From intense heat waves and more severe weather-related disasters to increases in the range and number of insect pests and disease vectors like mosquitoes, global warming will add to rising health costs.

Coal-fired power is a major source of climate-affecting pollutants. The Florida Medical Association encouraged the state's governor to adopt improved energy-efficiency standards before approving new coal plants. The Florida governor, a Republican, subsequently opposed new coal plants, which were dropped from consideration in favor of efficiency and renewable energy.

The EPA's own scientific adVisory board, the American Medical Association, the American Lung Association and other health organizations have challenged current air-quality standards, such as those for fine-particulate malter, as insufficient to protect public health. Coal plants, which contribute to ozone and smog, are responsible for hundreds of premature deaths a year, increasing asthma hospitalizations, other respiratory ailments and cardiac disease.

The American Academy of Pediatrics noted that young children are partiCUlarly susceptible because their lungs aren't fully formed and they spend a greater percentage of time outdoors.

The Black Hawk County Board of Health has passed a resolution calling for a moratorium on new http://www.desmoinesregister.com!apps/pbcs. dill article? AID=/200804 24/0 PINION 01/804... 4/25/2008 www.desmoinesregister.cdm I Printer-friendly article page Page 2 of2

coal plants in Iowa. Speaking in support, the Rev. Mary Robinson asked, "Is it morally just to condemn the most vulnerable in our community, the children, the elderly and those without the means of adequate health care to life-long diseases and poor quality of life, just for the sake of economic gain?" Of course it is not.

Dr. MAUREEN MCCUE is a physician and founding member of the University of Iowa Global Health Studies Program and Center for Human Rights. She is also coordinator for the Iowa Chapter of Physicians for Social Responsibility and a member of the Johnson County Board of Health, which passed a resolution opposing construction of new coal plants in Iowa.

IOW~S This is one ina.series of POWERFUL essay~aboutthe proposed DECISION' .coal-flredpower plant In . '" M~rsh~l!t~wn, • fRIQAY::Proposed plant :Will'Q~!R:~~lanc~ supply with 'growing ,demandotorelectricity, ~~., ,.,. ''e:-:'~.,'':+,''.' - ,.' according to the president of i' .tfie IowaAssbciation of Electric ; .C90perativ~§; '., •. LEARil:rI(DRE:Golo

. DeSMoine~Rk~ister:com/coal. , :~ '" '

http://www.desmoinesregister.com/apps/pbcs.dl1/article? AID=120080424/0PINI ONO I/804... 4/25/2008 www.desmoinesregister.comIPrinter-friendly article page Page I of2

April 23, 2008

Plant would be good for city, for entire state

Gene L. Beach

There are numerous reasons why so many people in Marshalltown support Alliant Energy's power- plant project. Plainly and simply, it makes good sense.

First, it would boost our economy. There will be five years of construction - more than a million labor hours a year. Once the power plant is constructed and begins generating electricity for Iowans, Marshall County, the school system and the city of Marshaillown will receive roughly $1.7 million a year to divide. And there will be an additional 85 jobs at the plant.

We are not just interested, however, in the dollars and cents. We are also concerned about the environment. Alliant Energy has been a good neighbor in·Marshalltown since the 1950s, producing 148 megawatts of electricity from the current Sutherland Generating Station. There has been no outcry that the plant was bad or unhealthy, even by its closest neighbors.

The proposed power plant will generate about 630 megawatts of electricity with even fewer emissions than the current Sutherland Generating Station. The new power plant will have state-of-the-art emission controls and will be able to burn switchgrass and corn stalks. This shows a commitment to a greener environment. I have a difficult time understanding why someone would be against a power plant that produces many times more energy with fewer emissions than an existing older power plant.

Additionally, if the power plant is built, Alliant Energy plans to convert an older coal power plant in Dubuque to natural gas and to remove from service still another coal power plant in Lansing. Those moves will serve to reduce the carbon footprint of Alliant Energy. Having the new power plant seems to be a win-win for consumers and the environment.

We have no doubt that Marshalltown will benefit from a stable source of energy, but so will the rest of Iowa. Building future wind turbines and powering ethanol and biodiesel plants will require energy. The only source for adequate base-load power is the proposed power plant. Iowa may become a leader in turbines, wind farms and alternate fuels, but it will take a reliable energy source for this to happen.

The power plant will also spur economic development of all kinds in Marshalltown, the area and Iowa. Businesses will need to be open for the construction workers, including restaurants and bars for entertainment. Housing opportunities are a definite possibility. And when the plant is operating, other business will follow - here and statewide.

Marshalltown is a logical location for the plant. We already have a power plant here on land that is owned by Alliant Energy, so no additional land needed to be acquired. The rights-of-way for transmission lines are already in place, so no additional farmland would need to be taken from production.

Alliant Energy is obliged to have energy available to the consumers when the light switch is turned on. The demand for energy is clear. So if Alliant Energy cannot produce enough energy for its customers, it will be required to buy it from another source - probably another coal-fired power plant at an undoubtedly greater cost to consumers.

The other elected officials of the city and I believe this power plant would be a good thing for Marshalltown and the state of Iowa.

GENE L. BEACH is mayor of Marshalltown. http://www.desmoinesregister.com!apps/pbcs.dll/ arti cle?AID=/200804 23/0 PIN ION 0 I/804... 4/25/2008 www.desmoinesregister.comIPrinfer-fiiendly article page' Page 2 of2

-IOWA'S POWERFUL DECISION

How to meet demand.,; . ,for electricity This is one in a series of essays aboutthe proposed coai-fired , power plantln Marshalltown. • THURSDAY: Coal-fired plants cited as threatening detrimental Imp'acts on public health. • LEARN MORE: Go to DesMoinesRegister.com/coal to learn more about the proposed plant and about climate change. Find links to government reports and filings in the Marshalltown case. • VOICEYOUR VIEWS: Join a" . fortrmlaliDesMoinesReg ister.coml coal:or-wilte a letter to the editor: lettlm;@tlmreg.com.

http://www.desmoinesregister.com!apps/pbcs.dll/articl e?AID=/2 0080423/0 PIN ION 0 I/804... 4/25/2008 \, ...-----r-.._-:'"_~_._ -'--1 Cleaner coal technology i i.Was too risky, '.ant says. iGasificatio~setup would add 40%to cost qf Marshalltown project I

I By DAN PILLER REGISTER BUSINESS WRITER ) - Befo~e- .deciding to- build ! 'a conventional coal·fired I \ 'generator at Marshalltown, AIliant Energy took a long I, look at a different coal-burn- . ing technology that holds the potential to emit less carbon dioxide pollution. . i, . AIliant executives visited two ;,. Integrated coal Gasification Combined Cycle, or IGCC, I generators, in Florida and In- diana, that turn the coal into a \ gas that' feeds the 'generator's I boilers rather than burning ! coal to fire steam generators. I Advocates of the technology , argue that up to 95 percent of t the carbon dioxide produced by burning coal can be re- l- moved through !Gce Scien- tists say carbon dioxide .and The story so far other greenhouse gases have Criticssee the proposed plant as· added to global warming. a referendumon the wisdomof . At the end of the day, AIliant turned back to old-production burningcoal,a main contributorto .\ I coal because, in the words of globalwarming,the meltingof polar AIliant's senior vice president, ice cap."and the disappearance of l· Tom Aller, doing otherwise some species. Supporters say the "was too much of a financial plant debate is over whether Iowans risk. We're too small, and we and the state's groWingeconomy don't have the balance sheet willenjoycheap, reliablepower and for it.". ,.: c_.,.:. ..,,,.c .. the sales andjobs that come with it. I Opponents have criticized --_._-- Alliant for choosing coal, say- --_._-- ing it will cause environmental . ! and public health threats. The Iowa Utilities Board is expected to decide by the end of the month whether.to grant Alliant's siting application, one of. the key approvals' required before the plarit can be built. If tn!' new"plan!.Js apprll~ed •. . Alliant.would-have.it.on"line,

, byAller,2013. who heads. Alliant's J' Iowa operations, said he and ~ the' other utility executives were impressed with the [GCC , generators. "Our engineers re-

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, ,, BIll NEIBERGAlUTHE f1EG1STER "We'retoo small, and we don't have the ba~ancesheet for it." - Tom Aller. senior vice president of Alliant Energy. explaining why his company ultimately chose not to go with Integrated Gasification Combined Cycle technology for as proposed power generation plant in Marshalltown.

i'

"It's an old technOIOg~~ . . DOUGWELlSITHEAfGlSTER

Attorney Carrie La Seur of Plains Justic~' of, Cedar Rapids. whose group has led the fight against the Alliant Marshalltown plant. Plains Justice and other coal opponenlt~~ Alliant should walt and build its generation plant after cleaner technologies emerge. . ---~ www.desmoinesregister.comIPrinter-friendly article page Page 1 of I

April 22, 2008

Climate change: The moral imperative

Timothy Kautza

In listing the reasons why we must act to stop global warming, we should start exactly where the Bible does: "In the beginning, God created the heavens and the earth ... and saw how good it was."

That simple affirmation reminds us that the world we inhabit is God's sacred creation; created for the good of all creatures, and entrusted to our stewardship. Creation is God's gift, and care for creation is a religious duty and test of our faith. This understanding calls people of faith to care about our changing climate and its impacts on all creation.

Of course, at this point, the world-attering impacts of carbon-dioxide pollution are no longer just an article of faith. Governments across the world are adopting stricter limits on carbon pollution, while global temperature changes wreak havoc with agricultural growing seasons, flood protection and economic stability, making life even more difficult for poor and vulnerable people around the world.

Last week before the United Nations, Pope Benedict XVI reinforced our moral obligation to address the problem. He said that "...protection of the environment, of resources and of the climate, require all international leaders to act jointly and to show a readiness to work in good faith, respecting the law and promoting solidarity with the weakest regions of the planet." And he's noted before that the poor and the vulnerable - the ones least responsible for contributing to climate change - will likely suffer its worst consequences.

Paradoxically, the quest to curb global warming also creates economic opportunity. By unleashing our technological innovation, we can tap into newer, cleaner energy sources, such as wind power and energy efficiency, to reduce our reliance on dirty coal plants and other sources of carbon pollution. Those investments will create jobs for our communities and ultimately reduce the effects of global warming on the poor and vulnerable.

The economic stakes in Iowa are high. As a state that depends heavily on agriculture, we cannot afford to heighten our risk of droughts, floods, increasingly intense storms and other climate changes associated with global warming. Iowans should support policies that help citizens, communities and businesses reap economic and environmental benefits at the same time. One example is the renewable-energy standard proposed by Gov. Chet Culver. We'll all benefit from significant increases in energy efficiency and renewable energy, including wind and solar. And many Iowans are speaking out to halt continuing investments in old, dirty technologies such as coal, a major contributor to global warming.

The moral stakes are even greater. After all, the challenge to stop global warming is to shape a response that not only serves the interests of Iowans now, but also those of the entire human family for generations to come. The Holy Father adds that time is short, and the most prudent action is a collaborative solution, not unilateral decisions. So, we are called to collaboratively shape a wise and careful approach consistent with principles of sustainability, stewardship and solidarity.

If we can meet this moral obligation, our children's children will look back on this moment and see that it, too, was good.

TIMOTHY J. KAUTZA is a science and environmental specialist with the National Catholic Rural Life Conference.

http://www.desmoinesregister.com!apps/pbcs .dlll arti c1e?AID=1200804 2210 PINION 01/804... 4/2512008 Tuesday,April 22, 2008 Page HA

This is one in a series of IOWA'S essays about the proposed POWERFUL coal-fired power piant in DECISION Marshalltown. 'i r .. "\WEo~siiAtrM*~hallt0'tn .t.layQ'r~~eec~·'.!liscus_ses the economic benefits he says the plant will bring to his city , .aM to 10'!ia. • LEARN MORE: Goto i'. OesMoinesRegister,com/coal to learn mo[~ about th,e '" .proposed'jilant Iirid allou" , ,,' -.,,' ,~-, ,t:!"t! cl.imate~h~np.e. F,i~li~~l ,l to government ,eports ,and 'Oc , filings in.the Marshalltown ,. case . • VOICE.1(OUR VIEWS: Join.a.forum at ,/ oesMoinesRegister,com/coVI . or write a letter to the editor: letters@dmreg,com, - ':,., .,

Rendering submitted Interstate Power and LIght CO.'sproposed 630 megawatt coal-jlredpower plant in Marshalltown has an estimated price tag 0/ $1.8 billion.

o Coal-fired plant best option, mately 30 percent of its energy from a new coal-fIred plant. said IPt- continues to negotiate to sell other utility companies outside the -The three-member Iowa Utilities the remainder of the plant'S capacity. says CEO; state's consumer state, Harvey said."That will decline to Board is expected to annOWlce its "We've got great partners," Harvey advocate disagrees 15 to 16 percent when this facility is decision on the power station within saide"The energy suppliers that touch operational," he said. "You can think of the next few weeks. A simple majori- 94 out of 99 counties in the state of By Joe Gardyasz it as local control; we have a lot more ry of two board members is all that's Iowa will have an investment in this '~e way Bill Harvey 'sees it, oppo- control and influence over energy we needed to determine whether the facility. So it truly is an Iowa plant for nents of AIliant Energy Corp.'s produce over energy we buy." massive proj~ct lives or dies. Iowans to fuel the Iowa economy." proposed coal-fired power plant The plant's operating capacity of Though it's sure to raise electric in Marshalltown "aren't evil pea: 630 MW is enough to power 'Great partners' rates for its Iowa customers by 4 to 6 pie; they just have different points Focus 472,500 homes and businesses in The plant, referred to by Alliant as percent because of its large capital of view." Iowa, according to Alliant. An the Sutherland Unit 4 facility, would cost, Harvey said, the Marshalltown In other words; Alliant's preSi- Story alliance of environmentalist proVide approximately 350 MW of its plant is a less costly option than the dent, chairman and chief execu- groups in Iowa has ridiculed con- output to IPL customers. In Novem- alternatives. Those options include tive officer views the $1.8 billion proj- struction of that much additional ber, IPLannounced it had entered into either continuing to purchase the ect as "the best thing we can do to capaCity, howeveI; as "building a Cadil- a joint operating agreement with Cen- level of capaCity it does from other meet our responsibilities to our cus- lac when a Volkswagen is needed." tral Iowa Power Cooperative (ClPCO) utility companies, or building a natu- tomers and to the Iowa economy." Iowa Consumer Advocate John and Com Belt Power' Cooperative. ral gas-fired plant. And, he added, Alliant subsidiary Interstate Power Perkins, who opposes the plant, said a Under the agreement, the two coop- Alliant is already doing all it can to and light Co. (lPL) wants to build the coal-fired power station is not the eratives would each purchase 100 reduce demand through energy con- plant to add 630 megawatts (MW) of most cost-effective option for the MW of output from the plant. North servation and to add to its wind-ener- electric generation .capacity within company or the state. His office, a Iowa Municipal Electric Cooperative gy capacity. Iowa. The project would enable IPL division of the Iowa attorney gener- Association subsequently became a "Atthe end of the day,"Harvey said, to significantly reduce the amount of al's office, is charged with investigat- joint owner in the project and plans . "(those opposing the plant) don't energy it purchases from outside the ing the legality of rates and practices to use approximately 20 Mw. Harvey conlinued onfollowing page state, Harvey said. IPL has also formed of utility companies that are, subject an alliance to sell about one-third of to the Iowa Utilities Board's jurisdic- the plant's output to four Iowa elec- tion. InJanuary, Perkins proVided testi- tric power cooperatives, enabling its mony to the board in opposition to output to reach nearly every county the plant. The energy suppliers that touch 94 out in the state .. "Our studies showed that clearly, of 99 counties in the state of Iowa will Harvey,who was in Des Moines last it would be more cost-effective for week to meet with labor leaders who Alliant to engage in more energy con- have an investment in this facility. So it support the project, told the Business servation efforts, and to build more truly is an Iowa plant for Iowans to fuel Record the primarily coal-fired plant wind energy capacity than it current- the Iowa economy. represents the best option ror Iowa's ly has," Perkins said. Additionally, he electric consumers, as well as to ensure said, the high cost of the plant and the , - Bill Harvey that the state can "continue to attract likelihood of Congress imposing a tax president, chairman and CEO, Alliant Energy Corp. companies like GDogle (lnc.)" on carbon-based emissions within the ______1/1/ IPL currently purchases approxi- next two years argue strongly against

10 BusinessRecord I www.businessrec:ord.com APRIL 21, 2008 ,~Iant,state' cnallenge eacn' DIners- ass>umptlons~ ".', ";: «mttnued.from previous page Harvey said the new plant would bave the responsibility to make sure allow AIliant to scale back, its use of , your lights come on, that you can ' older,less-efficient carbon-fired plarits power your factories ana that there is it owns. . - power available to fuel this economy: New plants are expensive, Harvey Perkins, however, said Iowa's base- said, "but they're eitraordiilarily effi- load electricity needs are relatively cient in comparison to our older stable compared with those of high- plants. , _ growth states such as Arizona, which "As a consequence of that, one of ,are dramatically increasing their dec- , the things we're committed to doing tricity demands, is to pare back a good deal on some of "The simple fact is that (for our older, less efficient plants as part Iowa), increased conservation. and and parcel of building this ilew facili- more wind energy will pick up the ty with the objective of mitigating the ' slack; he said, "(AIliant's) forecast carbon impact of a new facility;, he load growth·is just not supported by said. "The reality is, when you bum the ,facts; their forecasdoad growth carbon-based fuels in a power plant, is just wrong: you are going to bave carbon emis- Harvey, on the other i)artd, said it's sions. But we are taking steps to miti- "ludicrous" to believe that·more wind gate that to the extent that we think energy and conservation alone will be , it's rational to do that and not injuri- enough to 'meet Iowa's, increasirig ous to our customers." - :...~ energy needs, fuels, but the limitation is primarily ity somehow makes' the project envi- Harvey pointed to IPL's The new plant will not be pOw- the availability of biofuels, not the /",nmentally benign is, to use i-!arvey's announcement in February' of its . ered solely by coal. It would initially capability of the plant to bum more. ( term, "ludicrous: Similarly,he said, the planned development of a 200 MW' use about 5 percent biD-based materi- . We bum up to 5 percent of the BTU company's stance that Iowa needs a wind farm in I'rariklio County as evi- 'als such as switchgraSs and com input at the Ottumwa generating facil- large additional amount >of baseload, , dencetbat.it's moving forward,with- husks for its fuel, with' the abilitY,to ,ity; we know how to do this.And that capacity to provide power to ethanol renewable sources. The company increase that to about 10 percent. plant wasn't designed to bum biofu- plants is "riot valid; particularly given said it plans to invest approximately The 5 percent is "a comfortable els. This one will be: that ethanol producers are' working $450 million in the Whispering WiI: commitment; Harvey said. "Our PJallt Perkins said AIliant's assertion that toward waYS to bum more byprod- 'low Wind Farm over the next three will be capable of buroing more biD- adding even 10 percent biofuel capac- ucts to generate their own electri~ity. years. 0 ,

. --- Everyon~ loves flowers. But to us, there:s nothing 'more beautiful than switchgrass - a reneiNable, ' native grass"that can power your home and create jobs - all while pr~tecting and nurturing Iowa's , ' environment and wildlife.

Our ney; Marshalltown generating station will burn renewable fuels and be one of the first hybrid power stations in the United States. In fact, we'll burn enough switchgr~ss, or other agricultural. ~, ",_..__~ __ products to provide clean electricity for 32,000 -';'t:!f - ..;homes_ Now, isn't that bouquet looking better every ~ -, °minute? ~. _yo _.' I ',. ' ."\ . .., .',' .~~ :" . To learn niore about becoming earth-wise, ~:::::~~;;;::" "visit ·sllisntenergy.corri/switchgrass ~ '- ,or call1-80D-ALLIANT. ., -'

~ALLIANT ~ENERGY.

APRIL 21: 2008 www.businessreconLcom I Business Record 11 www.desmoinesregister.comIPrinter-friendly article page Page I of2

April 21, 2008

Co-ops need electricity to power growth

Kenneth Kuyper and Dennis L. Murdock

Energy policy is a critical issue to our state and country right now because it is directly tied to nearly every aspect of our society - economic development, national security, environmental health and overall quality of life.

Policymakers are finding it difficult to develop a long-term energy policy because it is an extraordinarily complex issue, with no simple solutions. Despite these challenges, work must continue to establish a balanced, common-sense approach to energy policy. But that work should not delay prudent action to secure a reliable supply of energy for our state.

New electric generation is needed in Iowa, and the Sutherland Generating Station near Marshalltown is an important step toward ensuring Iowa's energy secur~y. Our rural communities and main-street economies cannot afford to wait and risk missing out on opportunities to grow and thrive.

We represent member-owned, not-for-profit electric cooperatives that provide electricity to more than 450,000 Iowans in 87 counties that are part of Central Iowa Power Cooperative (CIPCO) and Corn Belt Power Cooperative service territories. We have a responsibility to provide reliable and competitively priced electricity to member customers.

Iowans formed electric cooperatives to serve rural areas that utility companies would not serve because it was not cost-effective to run lines out to so few customers. Today, cooperatives serve a diverse territory, including main-street businesses, ethanol plants, suburban retail stores, manufacturing companies and rural farm families. As a result of that diversity, we are seeing steady growth in the demand for electricity, which poses a real challenge to electric cooperatives in developing new sources of generation.

We already have a diversified power-supply portfolio fueled by coal, oil, natural gas, nuclear, hydro and wind resources. And, we are continually pursuing a variety of additional generation sources, including more wind energy. We have invested considerable resources in increasing the efficiencies of our operations and providing incentives to our customers to use energy more wisely. However, energy efficiency efforts alone will not be enough to meet the growing demand.

Corn Belt forecasts a 50 percent increase in energy demand from 2007 to 2011, while CIPCO is experiencing 3.5 percent growth overall per year. CIPCO has a 100-megawatt deficit currently projected for 2008, and that grows to 200 megawatts by 2013 - the year the Sutherland plant is scheduled to begin operation. Corn Belt is projecting a 100 MW deficit by 2013. Without Sutherland, our alternative is to purchase power from the often volatile open market, which is not in the best interest of our customers or our state. .

That rate of growth requires additional baseload generation - a reliable and uninterruptable supply of energy. Many factors are considered in determining the most appropriate source for generation. The Sutherland project was identified as the right solution by energy experts from the partnering utilities, Iowa business leaders, Iowa labor organizations and community leaders in Marshalltown. A recent survey of Corn Belt member customers also found broad support: 96 percent indicated it is important to invest in our own generation, and 83 percent supported the decision to build this high-efficiency coal plant.

All types of electric generation have benefits and drawbacks that must be weighed. Sutherland represents energy built by Iowans for Iowans, supplying electricity to 94 of our 99 counties. It will be the cleanest and most efficient coal plant in Iowa. UtiliZing hybrid technology, this plant will burn coal http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/2008042I 10 PINI ONO11804... 4/25/2008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

as well as a renewable fuel source such as switchgrass or corn stalks.

With a $1.5 billion investment, more than 1,400 high-wage construction jobs and a new source of base-load energy, the Sutherland project is central to continued economic growth in Iowa.

KENNETH H. KUYPER is executive vice president and general manager of Corn Belt Power Cooperative.

DENNIS L. MURDOCK is executive vice president and CEO of Central Iowa Power Cooperative (CIPCO). Both generation and transmission electric cooperatives are partners in the proposed Sutherland Generating Station Unit 4 project near Marshal~own.

IOWA'S This is one in a series of POWERFUL essays about the proposed '. coal-fired power plant in DECISION Marshalltown. o TUESDAY: A sense of stewardship calls us to confront global warming, Basics about the piant writes Timothy Kautza of the PRDPOSED BY: Interstate Power and Light Co.., National Catholic Rural Life the utility subsidiary of Alliant Energy that serves Conference. Iowa. Central Iowa Power Cooperative (CIPCO) o LEARN MDRE: Go to and Corn Belt Power Cooperative also would be DesMoinesRegister.com/coal part-owners. to learn more about the LOCATION: Marshalltown, alongside an existing proposed plant and about power plant. climate change. Find links to P~J\NNED OPERATIONAL DATE: 2013 government reports and filings WH4tls NEXT: The Iowa Utilities Board is in the Marshalltown case. ow.ected to rule by the end of the month on the o VOICE YOUR VIEWS: pl'ahlls.siling application. How to meet Join a forum at DesMolnesRegister.com/coal demand or write a leller to the editor: , for electricity [email protected].

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OM I< r.?J'. 5·~.r

GLOBAL WARMING?

sltuatlon.welshopld.. .:h~ril;""~ be womed. Warining of the climate system expert~ dil'fer sharply on whi!t; if -1.,,',. ' l;;; ", "is unequivocal," the Intergovern· anythil}g;jo do about it. Two ad- about?" he',askS. "Some take a mental Panel on Climate Change vocateS s'quare off below. sunnysid~'itip/l1ew. tpWall is well concluded in its December 2007 An illustration, by artist Mark with t!i~~ot~.tW:sfear that assessment, and the cause is Marturello. part of an occasicillal if we l~rt\J.e'Ea~!H'ipl'l,l, we con- "very likely" because of increases feature. highlighting Regi~t~r demn ..fu,tu~.~ge~~j#j~ns to untold \ in man-made concentrations of artwork, evokes the differing miseJi,ies.,on'F!~ith~¥!!lYweekend, viewpoints: "Is global warming consider.-all the gossibilities for greenhouse gases. But even as, " - ,.~ -,.,~.~ ,.' the science grows more accepted, ' a half·baked idea, or is it a real the Earth an~·ou~~nildren." --_.- -.------" \ Take on and win this fight; adopt cap-and-trade system

SPECIAL TO THE REGISTER For. nearly as long as scientists have been' I warnmg about the dangers of climate change, \ there have been people explaining why we 1 shouldn't try to fix it. First they said the Earth wasn't \ warming. When the evidence \ be.came. overwhelming, they ad- \ mltt.ed It was getting hotter, but \ demed that human activity was I .to blame. Now that the facts' show otherwise '\ they're retreating again. Lately we:ve . Steve begun to hear a new excuse for inac- COCHRAN tion: Climate change can't be solved. \ EnvironmentalThe cnlICS went straight from "It's not DefenseFund happening" to "We can't stop it. And even ' If we could, it will cost too much" I . The. truth is .we can win this fight - and we ~an win I It while gro-:vmg the eco~omy. McKinsey & Co., a re- spected busmess consultmg firm, recently identified more than 250 existing cost-effective technologies for reducmg emiSSions across the country today enough to put th~ l;Inited States on a path to the de~p, long- te~ emISSIOns reductIOns scientists say we need to achieve. . Injust a few weeks, the Senate will vote on legisl~tion (the Climate Security Act, S. 2191) that would spur

See.FIX IT, Page 6 OP Take action, or witness decline , FIX IT, fromPage 1 OP road as we try to manage the consequences of unchecked climate change: agricultural losses from increased drought conditions, the use and further development of those damaged public infrastructure from stron- technologies to reduce global-warming ger storms, rising insurance rates and new pollution through a "cap and trade" system. national security threats, to name a few. That's the same mechanism America suc- As Former Federal Reserve Chairman Paul cessfully used to reduce acid rain under the Volcker noted, "If we don't take action on Clean Air Act. climate change, you can be sure that our Cap and trade puts a legal limit on pollu- economies will go down the drain in the tion and gives businesses the flexibility and a direct financial incentive to find faster, nex1 30 years." . Cap and trade is the cure for climate- cheaper and more innovative ways to meet change pessimists: a time-tested approach it - enough of an incentive that companies that harnesses American enterprise and in- actually over-complied with the acid rain novation to deliver environmental results. requirements by 22 percent. The Climate Security Act has remarkable And according to the Environmental bipartisan support - from Sen. Tom Harkin, Protection Agency, the United States can an Iowa Democrat, to Sen. Elizabeth Dole, implement S. 2191's cap-and-trade program a North Carolina Republican - and a fast while increasing our economic output by 80 percent over the nex1 two decades, just one track to a vote in June. If it passes, we all have reason to be op- percentage point less than if we took no ac- . tion at all. It's a small investment that will timistic. pay huge dividends - in cleaner air and a STEVECOCHRANI. dlre.tor 01 the NetlonalClimate safer world. Campaign at Environmental Defense Fund, a national The alternative is higher costs down the nonprofit advocacy group.

- .., ...... '" '. , . - ".' . . ~ . - "- .. _ Doing little is doing right, or you'll wreck economy

V i/ECIAl TOTHE REGISTER In a much-anticipated statement on global warming, President Bush on Thursday a!'- nounced a national goal to stabilIZe our emIs- sions of greenhouse gases - mainly carbon dioxide - by 2025. To reach this goal, he proposed new fuel-economy standards for autos by 2020, and lower emis- sions from electricity production in the next 10 to 15 years. The president called for new technologies to further reduce emissions after 2025. If every nation of the world met the president's goal, there would be no detectable reduction of global warming from a "business as usual" scenario for CotoInstitute a"tleast 50 years. .' . If we want to significantly slow warmmg, emISSions have to be cut by more than 60 percent. Pending legisla- tion in the Senate, sponsored by Sens. Joe Lieberma.n,.a Connecticut independent, and John Warner, a VirgmIa Republican, drops them 66 percent by 205~. The only problem is that no one knows how to do,thIS.~~ fact .is that we simply don't have - and can t reahstlc~ly imagine - the suite of technologies that would brmg about such a sweeping change, nationally or globally. Instead, lawmakers propose schemesto make carbon-

SeeDO UTILE,Page6 OP Energy technology a long way off DO UTILE,fromPage1OP atmospheric carbon-dioxide concentrations at acceptable levels." What they are remained based energy so expensive that people will use unspecified. very little of it. Has anyone noticed that gasoline We currently flail from one politically correct consumption has gone down only a half of I technology to another. A few years back it was percent at current prices? How expensive does hydrogen, until people discovered that more it have to be to go down 66 percent? energy would be expended in isolating and The president is being keel-hauled for being transporting it than would be saved. Then along realistic, if ineffective. One can't simply wave a came (dare I say in Iowa) corn·based ethanol. legislative magic wand and wreck the economy in Scientists have been warning for years that it, a futile attempt to halt the growth ofatmospheric too, would save little if any energy, as was force· carbon dioxide. China has already passed the fully acknowledged in Science magazine earlier United States as the world's largest emitter, and this year. President Bush says "celluosic' ethanol will be far ahead of us by 2025. India won't be far (produced from fiber rather than grain) is just behind us for long. They are both industrializing around the corner. Sure. We're working on it. largely with coal-fired electricity. For 50 years. What are the technologies that can accomplish Will there be some breakthrough technology? reductions in emissions that will have a major Maybe. But we won't get it without investment, effect on global warming? Don't ask me - or which means we won't get there without a anyone, for that matter. In a telling commentary vibrant economy. The president is right about earlier this month in Nature magazine, Roger Pielke Jr., director of the Center for Science that one. and Technology Policy Research at University PATRICK J. MICHAELS Is senior fellow In enVironmental of Colorado, wrote that "enormous advances studies at the Calo Institute, Which promotes limited in energy technology will be needed to stabilize government, Individual liberty and Irs8 marketl.

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April 20, 2008

New course needed to meet electricity needs

The Register's Editorial

It's taken a long time for utilities, officeholders and the public to get serious about climate change:

- When Alliant Energy began making its formal case to build a coal-fired power plant at Marshalltown, it contended that climate change shouldn't be part of the proceedings. After all, neither federal nor state law regulates carbon dioxide, emitted in abundance from coal-fired plants and considered a primary culprit in artificial warming of the Earth's atmosphere.

But after being peppered with questions about climate change by members of the Iowa Utilities Board, the company announced in February that, if it wins approval to build the plant, it will close some coal-fired units and switch others to natural gas to reduce carbon emissions.

- In his first term, President Bush questioned mankind's role in global warming. Last week, he for the first time identified a specific date for U.S. reductions of heat-trapping greenhouse gases - 2025 - and singled out electric utilities as needing to cut those emissions sooner.

- When MidAmerican Energy applied to build the coal-fired plant it opened last year in Council Bluffs, the state Office of Consumer Advocate did not object to its construction. In the past year, that office has strenuously contested the proposed Marshalltown plant, saying it could tip the world toward devastating climate change and, if carbon laws require retrofitting, saddle ratepayers with skyrocketing bills.

- Five years ago, when MidAmerican started construction at Council Bluffs, a Register editorial made just one reference to global warming and declared that Iowa "is on the right course by encouraging development of modern, cleaner-burning coal plants while pursuing renewable fuels and rewarding consumers who use less energy." The newspaper also praised Alliant's plans for new generating capacity.

Today, the editorial board has concluded that building a coal-fired plant in Marshalltown is not now the right course for Iowa. The right course would place far greater emphasis on energy efficiency and renewable sources of generation, particularly wind. For power plants, it would encourage a harder look at natural gas, which emits much less carbon dioxide, and would specify that any new "c1eaner- burning coal plants" must be able, at least on the near horizon, to capture and sequester carbon dioxide.

But this moment of decision for Iowa shouldn't be just about this particular plant. It offers a time for Iowa to look itself in the mirror and decide what kind of energy-producing-and-consuming state it wants to be in an entirely different era for energy.

Will Iowa lead or follow at a time when the health of the planet may be in peril and when the availability and price of clean energy may starkly define economic fates? Will it simply meet federal regulations when required, burning fossil fuels as much as it can, as long as it can? Or will it chart a course to conserve electricity, generate more of it from renewable sources and, through its innovation and leadership, create new jobs, new businesses and new opportunities?

This is about image, too. Iowa has led the way in developing the biofuels and wind industries - and enjoyed more jobs and growth as a result. A new coal plant without carbon capture doesn't build a clean-energy reputation.

Stating such aspirations for Iowa does not minimize the dilemmas utilities face as changing altitudes, laws and costs transform their business. After all, they're required by statute to deliver safe, adequate http://www.desmoinesregister.com/apps/pbcs.dll/ arti cIe?Al D=/200804 2010 PIN ION 03/804... 5/19/2008 www.desmoinesregister.comIPrinter-fiiendly article page Page 2 of2

power supplies. Alliant's computer models predict rising demand and higher costs for alternatives. But building this plant would tie Iowa to a $1.5 billion-plus investment in burning coal at a time when the technology has not been developed to economically capture and store its carbon emissions.

It's time for a new model, one that rewards utilities and customers when less energy is used, not more. A new power plant may be needed at some point, but it must meet Iowans' historical commitment to stewardship.

It also should allow Iowans to look in the mirror and see an image of leadership and responsibility on energy.

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April 19, 2008 Pro & con: Is power-plant plan cost-effective?

This series examines the proposed Marshalttown coal-fired power plant, electricity demand and climate change.

SUNDAY: The Register's editorial board will outline its views on the proposed plant and Iowa energy policy.

LEARN MORE: Go to DesMoinesRegister.com/coal to learn more about the proposed plant and about climate change. Find links to government reports and filings in the Marshalltown case. Also go there to read earlier parts of this series.

VOICE YOUR VIEWS: Join a forum at DesMoinesRegister.comicoal or write a letter to the editor: [email protected]:QlII.

Editor'snots:Textislaken directlyfromtestimonyor documentssubmittedaspartof the proce~dings.Stalementsnot attributed10aspeakerarefromthe applicationorbriefs.Statements don'tnecessarilyappearin chronologicalorder. Abbreviations: IPL: Interstate Power and Light Co.. the utility subsidiary OfAmant Energy that

, serves Iowa. I SGS Unit 4: Sutherland. G~.neratlng I Station No.4, the proposed coal.f1red , unli. It's planned alongside the existing I Su)llMand Generating Station In I Marshalltown. DCA: Office of the Consumer Advocate •. I which repres~ntsthe public In matters over Which the "Iowa utilitieS Board has l jurisdiction.

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April 19, 2008

The case for the plant: Costs are rising; building now is best for ratepayers

IPL has clearly taken all possible measures to shelter its customers from increasing construction costs. However, to continue to provide its customers this shelter, IPL cannot delay construction of SGS Unit 4 to the point that construction becomes cost-prohibitive.

While the other parties may find it unpalatable, IPL has shown that it can meet its obligations in the most cost-efficient and enVironmentally friendly manner through the construction of a coal plant now, rather than either building a coal plant three years from now or, in the face of cost-prohibitive construction, relying on more expensive purchase-power agreements to make up the shortfall.

A world without new and efficient coal-fired generation ... would result in a very high cost of electricity and would undoubtedly damage the U.S. economy. EPRI's [Electric Power Resource Institute] limited portfolio scenario ... relies heavily on natural gas and renewables to meet future electric-energy needs. [It] ... included a significant reduction in greenhouse-gas emissions from the reduction in demand caused by extremely high electricity prices. This scenario would have obvious negative impacts on the U.S. economy.

The ratemaking-principles proceeding is the appropriate forum for an extensive examination of the costs of SGS Unit 4, not the generation-facility siting application.

IPL's base-load needs, rising construction costs and rising costs of alternative base-load power resources require the on-line operation of SGS Unit 4 by 2013 .... IPL's obligation to serve and its need for SGS Unit 4 cannot be ignored or downplayed.

IPL's approach to meeting potential carbon regulations is a reasoned approach based on realistic views and timelines regarding proposed regulations. Reliance on the OCA's [Office of Consumer Advocate] and the [opposing] coalition's extreme views would not only likely be outside the realistic realm of regulation, but would inappropriately delay the necessary construction of base-load generation based on spurious data, causing deficits sufficient to harm IPL's ability to most cost- effectively serve its customers.

Timothy Bennington, vice president, generation, for Alliant Energy Corporate Services: It is our position that the coal plant, even with the assumed carbon regulations added to it, still is the most cost-effective, viable way to generate power for our customers. Our need for the power is in the 2013 time frame, and it's going to take five years to build this plant from the time we have approval, and so we really cannot wait. We are seeing continuous cost pressures right now, and we do not expect to see that ease off anytime in the future. China and India are on major expansion plans, and they are really driving the cost tunes for equipment in the power-generation area today.

Jeffery Beer, project manager - new utility regulation, for Alliant: A construction delay would only serve to harm reliability, increase capacity and energy costs ... and likely result in higher construction costs ...

Eric Guelker, manager, environmental services, for Alliant: There is no "free lunch" when considering the cost impact of greenhouse-gas reduction policies on energy supply. However, the opportunity for

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electricity to provide low-carbon energy throughout the economy given sufficient technology development can be expected to substantially reduce the impact of this transition to customers. IPL believes that the proposed SGS Unit 4 better positions IPL to take advantage of this opportunity.

Randy Bauer, manager of asset strategy for AIliant: The witnesses have failed to recognize that base- load generation is the most cost-effective way in which to satisfy IPL's need for capacity and energy.

The concerns here are cost and availability. If currently proposed capacity is not allowed to be built, then the capacity market will become tight and the prices will go higher. This could result in significant increases in customers' electric bills_The second concern is one of whether the capacity is available at any cost.

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April 19, 2008

The case against the plant: Building, operating costs soaring; customers will pay

The enormous economic, as well as environmental, risks associated with building a new coal-fired generating unit cannot be underestimated.

The most significant uncertainties and risks ... are the potential for future restrictions on carbon- dioxide emissions, also referred to as greenhouse gases or GHG, and further substantial increases in SGS Unit 4's currenijy projected capital costs.

IPL witness [Jeffery] Beer fUlly acknowledges the potential for substantial increases in SGS Unit 4's currently projected capital costs. Other potential uncertainties and risks for new coal plants include the potential for fuel-supply disruptions that could affect plant operating performance, escalating fuel prices and the potential for increasing stringency of regulation of current criteria pollutants.

Many other proposed coal-fired generating projects have been canceled in the United States as a direct result of concerns with the potential for federal regulation of greenhouse-gas emissions, increasing construction costs or both.

IPL does not know what the current cost for SGS Unit 4 is, and prospectively estimates the most economical and lowest cost for SGS Unit 4 has an in-service date of 2016, not an in-service date of 2013 as IPL proposes... IPL has wholly failed to establish the cost-effectiveness requirement...

Clearly, IPL wishes to move ahead with SGS Unit 4 because it will be profitable for IPL to do so under IPL's assumption that any associated carbon-dioxide risk is shifted to customers.

In this hostile environment for coal, it is easy to see why an investor-owned utility would hope to construct a coal plant in the waning days before carbon regulation, hoping to cash in with claims for as big a carbon allowance as possible. If this strategy fails, ratepayers will be left holding the bag for the expense.

Thomas Sanzillo, senior associate, TR Rose Associates [in direct testimony Oct. 31,2007]: The current market for financing of these projects [coal-fired power plants] is increasingly skittish. On Oct. 7, 2007, Standard & Poor's issued a report that calls into question the viability of those coal-fired power plants currently in the planning stages because of economic risks created by potential new carbon-emission rules.

Over the past two years, Alliant has been selling their nonregulated businesses, which are predominantly international investments. Alliant is selling off its domestic transmission capacity. The company also just completed a stock repurchase program.

The changing nature of the domestic credit markets may require Alliant to bear increasing levels of financial risk in order to complete the Sutherland plant. While its short-term cash position has improved as a result of various asset sales, the warnings from the investment market [about investing in coal-fired generation] will make outside credit more expensive to finance this project.

Depending on how the IUB [Iowa Utilities Board] constructs a ratemaking package for this project, either Alliant will bear greater risk through a large equity contribution, or Iowa's ratepayers will be asked to absorb the increased costs that come from a tighter credit market.

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David Schlissel, senior consultant, Synapse Energy Economics: ... To reflect the uncertainties and . risks, IPL should use a wider range of possible carbon-dioxide prices ...

Contrary to IPL's claim, it has not shown that adding SGS Unit 4 is the lowest-risk option for its ratepayers. Even when IPL's low carbon-dioxide price forecast was used, 2016 was the earliest year in which the ... [forecasting model] added a new coal-fired power plant as part of a lowest-cost plan in any of the scenarios .

... There currently is no commercial or economical method for post-combustion removal of carbon dioxide from supercritical pulverized coal plants. Even if such technology were available, retrofitting an existing coal plant with the technology for carbon capture and sequestration is expected to be very expensive, increasing the cost of generating power at the plant by perhaps as much as 68 percent to 80 percent, or higher.

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April 18, 2008

Pro & con: How to factor in climate change?

This series examines the proposed Marshal~own coal-fired power plant. electricity demand and climate change.

SATURDAY: Is the plan for the power plant cost-effective?

LEARN MORE: Go to DesMoinesRegister.com/coal to learn more about the proposed plant and about climate change. Find links to government reports and filings in the Marshalltown case. Also go there to read earlier parts of this series.

VOICE YOUR VIEWS: Join a forum at DesMoinesRegister.comlcoal or write a letter to the editor: lett~rs@d mreg,pom.

http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080418/0 PINI ONOI1804... 4/25/2008 , .

ASSOCIATED PRESS A farmer collects shells recently at a drying res- ervoir in Nakhon Ratchasima province of Thai- land. Developing countries at a U.N. conference recently said they won't sign a global-warming pact unless industrialized nations guarantee them billions of dollars needed to adapt to the iinpact of climate change.

Editor's note: Text is taken directly from testimony or documents submitted as part of the proceedings, Statements not attributed to a speaker are from the application or briefs. Statements don·t necessarily appear in chronological order. Abbreviations: IPl: Interstate Power and Ught Co.• tne utility subsidiary of Alllant Energy that serveS Iowa. SGS Unit 4: Sutherland Generating Stallon No, 4, the proposed coal-fired unit. It's planned alongside the existing Sutherland Generating Station In Marshaihown. . OCA: Office of the Consumer Advocate. which represents the public In matters over which the Iowa Utilities Board has jurisdiction. www.desmoinesregister.comIPrinter-friendly article page Page I of2

April 18, 2008 The case for the plant: New, efficient facility could replace output of dirtier plants

IPL, and its parent Alliant Energy, clearly acknowledge that it is time to take action in anticipation of a potential policy change that would require carbon-dioxide controls. The disagreement among the parties is on what actions are appropriate in anticipation of the establishment of a future policy directive, the details of which are clearly unknown .

... The further disagreement is on whether IPL should closely examine tangible and likely scenarios regarding carbon-dioxide controls, or whether to only consider the worst case, and potentially very costly, scenario and begin implementation based on that scenario before any policy is even established.

The proposal for the construction of SGS 4 has not been made by IPL blindly without considering greenhouse-gas emissions. IPL has designed SGS 4 so that up to 10 percent of its total heat input can utilize biomass fuel [likely switchgrass or corn stover]. The replacement of coal with biomass reduces the facility's carbon-dioxide emissions.

The [opposing] coalition ... cites to the testimony of coalition witness Dr. James Hansen in support of the proposition that the use of coal should be phased out altogether except at power points where the carbon dioxide is captured and sequestered. A similar position was suggested by OCA [Office of Consumer Advocate] witness [Ezra] Hausman... However, neither the Iowa Legislature nor any regulatory body with authority in Iowa has mandated a moratorium on the construction of coal-fired generation, and the [Iowa Utilities] Board should not do so...

SGS Unit 4 will meet or exceed all current environmental standards for coal-fired units. Equally important, SGS Unit 4 will assist IPL in meeting the multi-pollutant emission standards that are expected in the future.

SGS Unit 4 accomplishes this by providing flexibility in unit operation, especially as it relates to IPL's older, smaller coal-fired units that may have to be operated differently, fuel-switched or even shut down.

SGS Unit 4, as an advanced-design coal-fired electric-generating unit, will be one of the most efficient units in the Midwest, and will displace energy that would have otherwise been produced from older, less-efficient units. On a unit-of-energy-produced basis, the differential in the U.S. carbon-dioxide emissions from the SGS Unit 4 will be 20 percent to 30 percent less than many of the older, less- efficient existing coal units in the Midwest.

In addition, SGS Unit 4 is specifically being designed to allow ease in retrofitting for developing carbon-dioxide capture technology. These design features include: space for any future carbon- dioxide capture technologies, access points for future interconnections between air-quality-eontrol systems and the stack ... and space for additional cooling towers.

Brent Kitchen, corporate asset management consultant for Alliant: I truly believe we need this plant, and I also truly believe that any megawatts that are over and above the reserve margin provides us options with ...what we can do with our existing facilities under carbon-dioxide regulations. So if we've got ... a little bit more capacity above our reserve margin, it gives us flexbility in potentially retiring resources... If we don't have Sutherland 4, we're basically stuck with a bunch of ... old, small, less- efficient coal resources .... Is it economic ... to'put controls on all those? ... That's a significant risk for the company, I believe.

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If coal is going to be part of our country's and IPL's energy mix going forward. the construction of more efficient coal-fired units is an important first step in beginning to reduce the growth in carbon- dioxide emissions.

Eric Guelker, manager, environmental services for Alliant: It would be futile and ultimately imprudent for utilities to adopt a "wait-and-see" approach. IPL believes that the need for coal-fired generation as part of a diversified generation portfolio would not immediately cease and that the future under a carbon-constrained world would include the development and deployment of technology to capture and sequester carbon-dioxide emissions. IPL believes that generation planning and construction cannot cease or be put on hold due to uncertainties in future carbon-dioxide emissions requirements.

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April 18, 2008

The case against the plant: To protect environment, plan is 'large step in the wrong direction'

Human-induced climate change is a grave and increasing threat to the environment and to the human societies around the globe. The effects of this process are already observable and documented in the scientific literature, and are consistent with those predicted by computer models of the global climate.

These same models predict much more severe effects to come, including rising sea levels leading to inundation of coastal areas, dramatic changes in patterns of precipitation around the globe, accelerated loss of habitat and species extinctions and migration of pest species and disease vectors with associated human health and agricultural impacts.

The most important and cost-effective way to mitigate global warming impacts is by limiting or curtailing the burning of fossil fuels in the decades ahead. To do this, we must make infrastructure investment choices which lead to electricity production by less carbon-intensive or zero-carbon means.

SGS Unit 4 would directly contribute to a problem that is likely to cause dramatic environmental and economic harm to societies around the world, including communities in Iowa.

Ezra Hausman, Synapse Energy Economics Inc.: Coal-fired power plants in the United States already emit almost one-third of U.S. emissions, or 8 percent of all the world's anthropogenic carbon dioxide into the atmosphere, a staggering contribution to the global buildup of greenhouse gases.

...This project represents a large step in the wrong direction if the goal is to protect both global climate and the environment...

James Hansen, director of the Goddard Institute for Space Studies: The Iowa power plant can make an important difference because of tipping points in the climate system, tipping points in life systems and tipping points in social behavior. When forcing toward a change, and change itself, become large enough, positive feedbacks can cause a sudden acceleration of change with very little, if any, additional forcing.

Arctic sea ice loss can pass a tipping point and proceed rapidly. If the public begins to stand up in a few places and successfully opposes the construction of power plants that burn coal without capturing the carbon dioxide, this may begin to have a snowball effect, helping utilities and politicians to realize that the public prefers a different path, one that respects all life on the planet.

...Indeed 80 percent of the solution is phase-out of coal use except at power plants where the carbon dioxide is captured and sequestered.

The changes in behavior will need to run much broader and deeper than simply blocking new dirty coal plants. Energy is essential to our way of life. We will have to find ways to use energy more efficiently and develop renewable and other forms of energy that produce liltle if any greenhouse gases. The reward structure for utilities needs to be changed such that their profits increase not in proportion to the amount of energy sold, but rather as they help us achieve greater energy and carbon efficiency.

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Hausman: Demand-side management [energy efficiency and other measures to reduce usage] and wind are effective means of meeting energy needs with little to no environmental impact, while modern natural-gas power generation produces much more energy per unit of carbon emissions than does even the most efficient coal-burning technology .... Any of these options is preferable to coal- fired generation from an environmental standpoint...

Question from Iowa Utilities Board Chairman John Norris: How far are we away from technology that makes CCS [carbon capture and sequestration] feasible?

Hansen: I think we're within about a decade of having the technology available so that a power company could order it. It's not so long that we couldn't cover the increased energy needs in the interim via energy efficiency and renewables.

Hausman: ...It is certainly possible that carbon capture and permanent storage will be an important technology in the future, but I think to try and build a plant which is ... carbon-dioxide-capture ready for an unknown future technology is really a very bold stab in the dark ...

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April 18, 2008

Update: Company pledges greenhouse-gas reductions

Editor's note: Throughout the hearing on the proposed coal-fired plant at Marshalttown, Interstate Power and Light representatives testified that a new plant would allow retiring older, less efficient plants or using them less. But they did not commit to retiring any coal-fired facilities.

After the hearing ended, the company announced that it would retire two coal-fired units at its Lansing generating station and would switch its Dubuque generating-station units from coal to natural gas when the new plant begins operations in 2013.

The company's press release said the 350 megawatts it would own of the new plant's 630-megawatt configuration would have a maximum potential annual emissions of 3.1 million tons of carbon dioxide under its air-permit application. It said enhanced energy-efficiency programs and expanded wind generation, combined with the planned changes at the Lansing and Dubuque plants, were expected to more than offset carbon-dioxide emissions from the Marshalttown plant.

Plant opponents note that IPL's statements don't cover the emissions from the entire plant and that it's difficult to determine the validity of the numbers.

{G:feenhous~~lS,~Sa~'a glance-\iJ'" - C.C-'

:!GreenhOuSegasestrap radiant heat from the Man~gases exmliit "greenhouse" P.roPnieS. sun within the Earth's atmosphere; Some of them occu~In nature (wate, vap'or, The gasesallow the sunlightl6 enter the carlion dioxide, methaneand nitrous oxide) .while atmospherefreely:When'sunlight,strikesthe others are human-made,such as gases used for Earth's surface,,someof it is reflected back... ae[os.Dls., toward spaceas,infrared:radiation,The amount .•. ,Carbon dioxide, a colorless, odorless, of en~rgY'sentfrom ,thesun to the Eatlh's ~ui1ace ')onflammalile gas, is of p.atliCUlalon~. andth~ amoum'.a~iated'~acKshould lie a•. because it accounts fo, more than 80 p'ercent the same;,leavingthe temperatwe of the·Earths oHo,taIU.S. h.u,!,~n-mad~gr~erhouse-p,~~ sunace ftiughllconsta'n't. +U)w\~et7gteeJih6use- emj'slfons:' .~, ,'".• ' --',','i~,'~:',~":" , • 'gas levels;irHh~e\itniospherehave !incre~se'd'. , ,'Si:i~r':es:_Energy:lnfo'rmation'AOministratlCin; 'Carbon significantly abovli"pre-ihilusttialhivels:" f,' " .,'~SequestranonAtlasof the UnitedStatesandCanada '-'l\/; ',+'; ',,:,:·j:'Jr·

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April 17, 2008

Pro and con: Can wind energy stave off new plant?

This series examines the proposed Marshalttown coal-fired power plant, electricity demand and climate change.

FRIDAY: How much should concerns about climate change factor into approving or rejecting a coal- fired power plant?

LEARN MORE: Go to DesMoinesRegister.com/coal to learn more about the proposed plant and about climate change. Find links to government reports and filings in the Marshalltown case. Also go there to read earlier parts of this series.

VOICE YOUR VIEWS: Join a forum at DesMoinesRegister.comicoal or write a letter to the editor: [email protected].

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April 17,2008

The case for the plant: IPL is adding wind, but that doesn't offer a steady supply

..Wind cannot reliably serve base-load capacity needs .... The OCA [Office of Consumer Advocate] and [opposing] coalition ignore the fact that the wind does not always blow. If IPL relies on wind for any portion of its base-load capacity and the wind is not blowing, then IPL will be forced to enter into the marketplace to make up that shortfall.

Richard Friedman, term bulk-power marketer for Alliant Energy Corporate Services: Over the last several years, IPL has continuously added purchased wind resources to its portfolio of renewable- energy supply.

Brent Kitchen, corporate asset management consultant for Alliant: IPL's expansion plan includes ... an additional 200 MW of wind energy operational by that same time [as the new power plant opens].

Friedman: A significant carbon-dioxide cost would increase demand for wind resources. At present, worldwide production for wind-generating equipment is fUlly subscribed for up to two years into the future. Without additional investment in manufacturing facilities for wind equipment, I would expect the lead time to expand and the costs to increase significantly ...

Transmission interconnection for new wind resources located in desirable locations (optimal average 'Windspeed) is severely constrained by overloaded lines. Within the MISO [Midwest transmission management] system, the vast number of requests for interconnection studies has overloaded the analytical capabilities of the planning process ... Several more years can be spent planning and constructing the upgrades. For very large wind farms planned in very constrained areas of the system, it would not be unreasonable to assume a lead time of five to 10 (or more) years...

...IPL would expect a high carbon-dioxide price scenario to significantly increase the cost ... leading to a 50 percent cumulative increase in wind costs over the next five years ...

Robert Vosberg, manager, technical sales support for Alliant Energy Corporate Services: Wind projects built in 2006 remained competitive with wholesale energy prices, but marginally so. The competitiveness of wind energy within the energy markets is suspect for wind plants constructed in 2010 and beyond.

[He was asked about the ability of increased U.S. manufacturing facilities to meet 20 percent wind penetration near term.] Answer: NREL concludes a goal of 20 percent wind penetration by 2030 is more sustainable and probably more practical.

The OCA's proposed low[-cost] carbon-dioxide scenario ... would require IPL to construct (1) 800 MG of wind in just four years' time, 2010 through 2013; (2) 300 MW of gas-fired combined-cycle http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/200804l7/0PINIONO I/804... 4/25/2008 www.desmomesregister.comIPrinter-friendly article page Page 2 of2

generation in 2014; and (3) 300 MW of gas-fired combined-cycle generation in 2019." The [Iowa Utilities) Board cannot accept such an absurd result.

...It would be close to impossible to interconnect 800 MW of wind on IPL's system by 2013 due to delays in processing interconnection requests ... and the costs and time needed to construct the transmission infrastructure needed to accommodate this level of interconnection.

Kitchen: [Discussing wind in the modeling process] ... We don't believe that 800 megawatts of wind over four years is an achievable result. ... There's a lot of hurdles with respect to wind ... turbine availability, transmission. You might be able to get ... another hundred ...

Witness Mr. [Robert] Fagan also questions the capacity credit IPL uses for new wind resources. IPL has consistently assumed a 10 percent capacity credit for new wind resources based on [North American Electric Reliability Corp. procedures] .... This is actually a minor issue ... IPL is planning to build 200 MW of wind-generation by 2013 as part of its expansion plan. The difference between a 10 percent capacity credit for this wind generation and a 25 percent capacity credit for this wind generation is 30 MW, far below IPL's capacity deficit in 2013 of 173 MW.

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April 17, 2008 The case against the plant: Wind can play bigger role than modeling suggested

Robert Fagan, senior associate, Synapse Energy Economics Inc: Iowa has an abundant and economical wind resource whose potential has yet to be fully tapped .

... Wind ... [is] the cheapest available base-load supply-side energy resource to meet incremental needs in Iowa, even when IPL's unrealistically "low" carbon-price scenario is considered ... Wind power is an even better bargain when considering more realistic carbon-

The best evidence available demonstrates that wind energy can constitute a substantial portion (25 percent or more) of IPL's system-wide capacity without sacrificing reliability. As greater quantities of wind power become available and more uniformly dispersed, wind power becomes more reliable as an energy source and better able to displace a significant portion of traditional base-load resources in the system.

IPL imposed unnecessary and inappropriate assumptions and limitations in its model that prevents it from fully evaluating the extent to which wind-generation resources would be selected as part of an optimalleast-cost expansion plan. Thus, IPL analytically misrepresents the ability of wind power to economically serve a significant fraction of IPL's incremental energy needs.

The corrected modeling ...shows thatlower-cost alternatives to Sutherland 4 are available.

The ... [modeling] base case on which IPL relies to support SGS Unit 4 calls for IPL to install 400 MW of wind that would meet 9.1 percent of its projected needs by 2022.

In a November 2007 document prepared for its investors concerning the prospect of a 20 percent national RPS [renewable portfolio standard, requiring 20 percent of power from renewable sources], Alliant's president and upper-level management communicated thatlPL would require "an additional 1,100 MW of wind ... over and above what is currently planned" and that "Allianl's service territory is well-positioned for siting of additional wind resources." There is absolutely no mention of the limitations on equipment supply and transmission impediments that IPL now claims make it "highly unlikely" that it could install over 1,000 MW of new wind beyond what is included in IPL's base plan.

IPL's new wind-capacity credit values of 10 percent are too low and cause the planning-capacity contribution of wind to be significantly understated.

An additional 707 to 1039 MW of wind power beyond whatlPL has in its base-resource case would be needed if IPL were to meet 20 percent to 25 percent of IPL's projected energy needs in 2022. Employing a more reasonable capacity credit of 20 percent to 25 percent ... results in 142 to 260 MW of additional accredited capacity. http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/2008041 7/0 PIN! ONO I /804... 4/2512008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

Fagan: The constraints on getting a lot of wind in place by 2022 are not technical. They have to do with how the Midwest 150s [transmission managers] and the transmission owners deal with the very high volume of requests to interconnect wind. It has to do with how the wind industry handles the ongoing ramping up of its capability to provide a lot more equipment. Anybody who says that it cannot be done underestimates the ability of utility-system professionals to handle these types of problems. They're challenging ... but it certainly can be done.

Fagan: Using wind power to deliver IPL's incremental energy needs instead of power from the proposed coal plant will likely bring greater economic benefits to Iowans than what would be seen with the coal plant. ... Wind alternatives do not need to purchase fuel from out of state, and cheaper wind-powered electricity leaves more dollars in the pockets of electricity consumers - money that can be spent elsewhere in the economy.

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April 17, 2008

Coal production is the way to go for United States

I enjoyed the letter from Emil L. Martin that was printed in the Register on April 15 ("Hydrocarbons Are Not the Climate-Change Culprit"). It would appear that the letter is 180 degrees opposite of what I consider the Register's editorial position to be.

There are five points I would like to express about coal. Since my father and grandfather were both coal miners here in Iowa, I have always had an interest in the subject.

1. Coal can be converted to oil about 40 percent cheaper (estimated to be about $40 a barrel) than ethanol and a lot cheaper than what we are paying for a barrel of oil today.

2. Processing coal to oil would not take food products away from people.

3. Coal oil burns cleaner than natural oil from the ground as it has 80 percent less particulate than natural oil.

4. It can be mass produced; Germany was producing 124,000 barrels (estimated to be 264 million gallons a year) in 1944 as stated in the book "The Prize."

5. Finally, the United States is estimated to have the largest coal reserves in the world.

Iowa could once more have a second opportunity (produced almost 10 million ton of coal in its heydays) to create jobs that could not be exported. The United States could also take a step away from dependency on foreign oil.

- Edward Moses,

Knoxville.

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April 16, 2008

Pro & can: Is energy efficiency an option instead?

This series examines the proposed Marshal~own coal-fired power plant, electricity demand and climate change.

THURSDAY: Could expanded generation of electricity from wind delay or eliminate the need for a new power plant?

LEARN MORE: Go to DesMoinesRegister.com/coal to learn more about the proposed plant and about climate change. Find links to government reports and filings in the Marshalltown case. Also go there to read earlier parts of this series.

VOICE YOUR VIEWS: Join a forum at DesMoinesRegister.comicoal or write a letter to the editor: LeJ!ers@cJmrE!g~com.

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EDITOR'S NOTE: TEXT IS TAKEN DIRECTLY FROM TESTIMONY OR DOCUMENTS SUBMITTED AS PART OF THE PROCEEDINGS. STATEMENTS NOT ATTRIBUTED TO A SPEAKER ARE FROM THE APPLICATION OR BRIEFS. STATEMENTS DON'T NECESSARILY APPEAR IN CHRONOLOGICAL ORDER. ABBREVIATIONS: DSM: DEMAND-SIDE MANAGEMENT, WHICH ENCOMPASSES A VARIETY OF PROGRAMS INTENDED TO INFLUENCE ENERGY USAGE, INCLUDING ENERGY- EFFICIENCY PROGRAMS AND LOAD-MANAGEMENT PROGRAMS, SUCH AS ENCOURAGING LARGE USERS TO SIGN INTERRUPTIBLE CONTRACTS, SO SOME OF THEIR CONSUMPTION CAN BE IDLED IN PEAK PERIODS. IPL: INTERSTATE POWER AND LIGHT CO., THE UTILITY SUBSIDIARY OF ALLIANT ENERGY THAT SERVES IOWA. SGS Unit 4: Sutherland Generating Station No.4, the proposed coal-fired unit. It's planned alongside the existing Sutherland Generating Station in Marshalltown. CHP: Combined heat and power, a plant designed to produce both heat and electricity from a single heat source. Institutions as diverse as manufacturers, hospitals and universities operate such plants in Iowa. www.desmoinesregister.comIPrinter-friendly article page Page I of2

April 16, 2008

The case for the plant: Utility already pursues all feasible efficiency programs

IPL fully supports demand-side management (DSM) and energy efficiency and is committed to implementing all cost-effective and technically feasible programs approved by the board consistent with state law.

IPL agrees that its resource planning does not put energy efficiency on an equal footing with other resource alternatives. Rather, it puts energy efficiency on a higher footing. IPL is legally obligated and strongly committed to implementing all cost-effective DSM as the first step in the planning process. Energy efficiency does not need to prove itseWin Iowa, as is the case in Minnesota. In Iowa, it is already considered the "highest priority resource."

...The opposition parties cannot, in good conscience, point to any evidence in this record to suggest thatlPL has not been completely committed to DSM and the implementation of its energy-efficiency programs. Schedule 0, entitled Alliant Energy-IPL Awards since 2005, lists five national awards for achievement [in energy efficiency] ...

In 2006, Iowa led the nation in terms of spending on energy efficiency, and IPL's spending was above the state average at $39.26 per person. Although it is great to have aspirational goals, which Mr. [Scudder] Parker [opposition witness] clearly advances, ultimately not only must these goals be achievable in a cost-effective way to comply with Iowa state law, but customers must feel compelled to take advantage of these programs.

Robert Holmes, senior regulatory planning consultant/demand-side management for Alliant Energy: Mr. Parker claims thatlPL should set much higher savings goals based on potential studies, but presents no evidence that any utility has ever achieved the goals he would obligate IPL to achieve. IPL and the state of Iowa are already national leaders in the pursuit of energy efficiency.

The utility's threshold for cost-effectiveness ... is a benefit-cost ratio of 1.0 or greater for the plan as a whole. Each May, all investor-owned utilities file a report with the board on plan performance for the prior year. IPL is pleased to report that every program - inclUding the low-income program - is cost- effective in every year for the period through 2006 ... with a modest exception on the nonresidential side.

...To support his claim thatlPL is performing well below other utilities, Mr. Parker offers the performance of only one utility - out of the scores of investor-owned utilities in the United States...

IPL in its analysis has already taken into account, through a reduction in its load forecast, the impacts of IPL's current Energy Efficiency Plan as approved by the board...

Jeffery Beer, project manager - new utility regulation for Alliant Energy Corporate Services: CHP systems [combined heat and power] (also known as cogeneration) generate electricity and thermal energy in the same system. The combination of electrical generation and thermal energy improves the total efficiency of the electrical-generating process while reducing the impact on the environment.

The SGS Unit 4 decision includes the capability to provide 190,000 pounds per hour of thermal energy (cogeneration steam). In addition to emission reductions, CHP provides an opportunity for the local community to use the CHP capability in the recruitment of businesses. Successful recruitment of http://www.desmoinesregister.comlapps/pbcs.dll/article? AID=/20080416/0 PINI ONO1/804... 4/30/2008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

complementary businesses would provide significant employment opportunity. The success of CHP varies throughout the country. IPL agrees with Mr. Parker's assessment of the potential of CHP and believes this plant is being appropriately equipped to contribute to that potential.

Question by Jennifer Easler of the Office of Consumer Advocate: If the most likely replacement of Duane Arnold [nuclear plant] capacity is a market-based PPA [purchased-power agreement) ... isn't it preferable to avoid such costs by controlling load growth through energy efficiency ...?

Brent Kitchen, corporate asset management consultant for Allian!: I don't believe you can get enough energy efficiency to replace Duane Arnold.

Robert Holmes: We have the [energy-efficiency) programs that are open. We never stop people from participating. We promote them .... 50 to somehow say that, well, we're going to do more, double, for instance ... I struggle with how that would happen.

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April 16, 2008

The case against the plant: Intensive efforts could delay or replace new power plant

It is important to pursue increased efficiency as a first option before coal because efficiency is less costly, less risky and the most economically and environmentally beneficial choice.

If IPL's load grows more slowly than forecast, efficiency spending can be scaled back. This is not possible with a coal plant, the cost-effectiveness of which is based on the generation of large amounts of power.

The IUB [Iowa Utilities Board] should deny approval for construction of SGS Unit 4 at this time and, instead, order IPL to adopt an energy-resource planning approach that considers energy-efficiency strategies ... on an equal footing with conventional supply options ...

IPL witness [Robert] Holmes acknowledges that IPL has no corporate strategy whatsoever to pursue combined heat and power (CHP) solutions for new biofuel facilities.

Witness Holmes further acknowledged ... that there are several key areas for further DSM savings ... IPL's nonresidential new construction and performance contracting program were significantly below goal in 2006. Witness Holmes attributed the good performance of IPL's DSM electric programs to the Change-a-Light-Ghange-the-World compact fluorescent light-bulb promotional program. The performance evaluation for this 2006 campaign reveals that Iowa's programs are just scratching the surface in terms of future potential for this program.

Scudder Parker, Scudder Parker ConSUlting Services: IPL can increase its investments in energy efficiency significantly, at reasonable cost, to levels that utilities in other states are now securing and many others are actively planning to achieve .

...An ethanol or biofuels plant ...is a unique area with significant opportunity for combined heat and power ... There's the potential that they can go to self-generation and actually move off the system . ...1believe that at the least, IPL is not actively pursuing combined heat and power as a resource- acquisition strategy, as an efficiency strategy .... It could be a strategy that is very key to Iowa's specific situation that would lower the risk to the other Iowa ratepayers. If you build a coal plant to meet that ethanol production or biofuels production load, but then they find it's more effective to do combined heat and power and go off the system, then you may well be stuck with a coal plant that is not meeting the needs of the utility service territory or the members.

A recent paper by ACEEE [American Council for an Energy Efficient Economy] projected that in Texas an additional 6 percent of the state's electricity consumption could be supplied by CHP in 2023.

Eighteen governmental entities, 15 of them in the United States, have now established legislative targets for efficiency and renewable-energy investment that will require, in many instances, levels of investment close to or exceeding what would be required to defer construction of the IPL SGS Unit 4 plant.

Efficiency-investment strategies can keep energy dollars in local and state economies, lower customers' energy bills, and at the same time create new jobs by stimulating business capability to install efficiency measures.

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Robert Fagan, Synapse Energy Economics Inc.: Do not leave DSM out of this, no matter what. ...It is the cheapest resource, it is a nontraditional resource, and there are institutional policies that you'll have to deal with to try to make it happen as cost-effectively as possible. There's a handful of states that have recently passed legislation requiring utilities to procure all cost-effective energy resources, which is an important leap forward ...

Scudder Parker: IPL, like many other utilities in the country, has done demand-side management and energy efficiency and more broadly distributed resources ... as a kind of activity it has to do to comply with regulatory obligations, not as a serious resource-acquisition strategy. The focus of my testimony is to encourage the board and IPL to see ... the Sutherland coal plant ... as an opportunity to say maybe it's time to really begin to see this as a serious resource-acquisition strategy that is potentially much more cost-effective and ... has the potential to at least delay the plant and to potentially avoid the plant.

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April 16, 2008

Letter: Energy executives fail to deal with coal issue

Regarding the March 16 responses to Rich Dana's March 9 essay, "Big Utilities Take the Wind Out of Locals' Future": Neither Marion Denger's or Bill Ferhman's response contained anything about the dirty energy word: coal.

Fehrman boasts that MidAmerican Energy has invested $2 billion since 2002 in 700 wind turbines and two new power plants. How much of the $2 billion went to wind?

Rural electric cooperatives are among the biggest users of coal power in the nation and have many more coal-fired power plants in the planning stages.

When Denger uses the words "balanced," "affordable" and "reliable," he is really talking about some wind energy and a whole lot of coal. While this approach is helping the rural economies of West Virginia and Montana, the long-term cost of this damage will be anything but "affordable."

I am proud of Iowa's leadership role in wind power, but coal-powered generating plants are the biggest producers of greenhouse gases on the planet. We simply cannot rationalize away building another.

I wonder why rural electric cooperatives aren't distributing solar-powered LED yard lights to every rural property in the state and doing more to encourage every landowner in the windier half of the state to generate their own electricity to sell back to the "cooperative"; that would be true cooperation.

And I also wonder why Gov. Chet Culver, who proudly signed a big regional greenhouse-gases agreement with our neighboring governors, doesn't proclaim a moratorium on building any more coal plants in Iowa.

- Rick Knivsland,

Cedar Falls and rural Arlington.

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April 15, 2008

Pro & con: Does demand require new coal plant?

This series examines the proposed Marshalttown coal-fired power plant, electricity demand and climate change.

Today: Opposing views are presented. The material is taken from hearing briefings and transcripts.

The .case against the coal plant:. Projections in load growth, pQpulation are unrealisli.c

Letter to the editor:. Harnessing American inger1uity is energy answer

'41'" '-'.~ IOWA'S EDITORlS'NOTE'Textls taken directly' from"teStimony or POWERFUL documents submitted'as part of DECISION the proceedings. Statements not attributed to a speaker are from the application or briefs. Statements don't neceSsarily appear In chronologlcal'order. AbbrevIations,: IPI., Interstate Power eriOLight Co.. the utility subsidiary of Alllant Energy that 'serves Iowa. SGS Un114: Sutherland Generating Station No. 4/lhe proposed coal- fired unit. It's planned alongside the existing Sutheiland Generating Station In Marshalltown. CIPCO: Central Iowa Power Cooperative, one of two rural , electile co·ops !hal plan to beceart- Howto,meet owners oMhe1ufm. . dem.~n1i"'·. . for eleetriclt.y

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April 15, 2008

The case for the coal plant: Biofuels, wind industries driving the thirst for power

From hearing briefs, transcripts

IPL has an obligation to economically and reliably serve its customers and to ensure abundant and affordable energy is available to attract new industry to the state of Iowa.

If the company fails to convince this board of the importance of building SGS Unit 4 to safeguard the reliability of its system and to continue to serve its customers at reasonable rates, it will not be IPL's shareholders that endure the loss, it will be its customers and the state's economy .

...IPL is statutorily required to deliver safe and reasonably adequate services and facilities. IPL therefore cannot operate at a capacity deficit as defined by its reliability organization and risk the safety and reliability of its service to its customers.

Brent Kitchen, corporate asset management consultant for Alliant: IPL is a summer peaking utility; that is, IPL experiences the highest demands during the summer. Assuming normal weather conditions at time of peak, IPL's summer net peak load is projected to grow, on average, approximately 40 megawatts (MW) or 1.4 percent per year. IPL's projected capacity deficit is approximately 175 MW in 2013. IPL first goes capacity deficient in 2010. IPL plans to meet the capacity deficits prior to 2013 with IPL-owned wind resources and short-term market capacity purchases.

CIPCO will be capacity deficient for its load-serving obligations beginning in 2008, and that deficit will continue to grow every year thereafter. Corn Belt will be capacity deficient beginning in 2008... The growing renewable-fuels industries have been and are continuing to be one of the main contributors to the high ... load growth ...

Randy Bauer, manager of asset strategy for Alliant: ...Certainly IPL's customers would be at risk of reduced reliability with lower reserve margins. If there are no forced outages or extreme weather, then perhaps the company and its customers could slide by with no consequence. However, if a large generating facility would be off-line for a summer season or an unplanned event were to occur, IPL could have rolling blackouts or wide-scale blackouts...

Daniel Otto, professor of economics, Iowa State University, in an exhibit prepared for IPL: Driven by steady growth in incomes, population and jobs, electricity demand in Iowa has been increasing at the rate of about 1.4 percent per year. Not developing adequate base-load capacity risks losing that economic growth. Guarantees of adequate supplies of reliable, cost-effective electricity have also stimulated the rapid expansions of the biofuels and wind-energy industries in Iowa. Developing reliable energy supplies by expanding base-load electric-generating capacity is important for Iowa to continue capturing growth shares in these emerging alternative-energy industries.

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...An additional 18 percent over and above that actual demand ... is referred to as a "planning reserve margin," and is required in the event other generators on the system are not available either due to a plant outage, transmission outage, or other contingency, or if demand exceeds forecast due to extreme weather or economic growth.

IPL is now a member of the Midwest Reliability Organization (MRO), which has adopted the Mid- American Interconnected Network (MAIN) guidelines requiring a minimum reserve margin of 15to 18 percent for long-term planning and assessment. Because IPL forecasts its capacity and energy needs assuming normal weather versus extreme weather, IPL plans and utilizes an 18 percent reserve margin to ensure its reliability is not compromised in harsher weather conditions.

Joseph Hillberry, senior forecast analyst, Alliant Energy Corporate Services: ...[Coalition witness Thomas] Sanzillo is incorrect on several accounts. First, Iowa's forecasted growth may slow for the year 2007 through 2008, but that does not translate into slow growth for the entire period from 2007 to 2022 .... Load growth has two components. One is growth in the number of customers, and second is growth in the use of those customers, and so simply looking at population and saying, ''Well, the population isn't growing at the same rate as your total load," completely misses the growth in the use per customer. ...The percentage of the Iowa economy that comes from large industrial companies is one of the highest per capita in the nation, and so to the effect that Iowa has a growing industrial base, that is going to drive ... industrial loads.

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April 15, 2008

The case against the coal plant: Projections in load growth, population are unrealistic

Excerpted from hearing briefS, transcripts

The hard data that underlies IPL's projection of a 1.4 percent growth rate in electricity demand was never produced for the record. This growth rate relies on overly optimistic projections of population growth, income growth and employment growth ...

IPL's own documents for the most recent five-year historical period indicate that average growth has been substantially less than what the company projects going forward.

Thomas Sanzillo, senior associate, TR Rose Associates: This 660 MW coal-fired power plant is unnecessary. The key assumption that IPL will require an increase of 40 MW annually between 2007 and 2013 or face a capacity deficit by 2013 is not supported by the application. In fact, supplemental information ... shows that the IPL system will have a surplus of capacity in 2013...

Furthermore, Corn Belt Power Cooperative (Corn Belt) and Central Iowa Power Cooperative (CIPCO), prospective co-owners for the proposed Sutherland generating facility, have not provided any justification for their demand forecasts as set forth in IPL's application.

While the national economy is expected to expand by 2 percent in 2007 and by 2.8 percent in 2008, Iowa's economy is expected to be flat in 2007 and actually decline in 2008 [from Oct. 31,2007, statement]. Manufacturing currently makes up 20 percent of Iowa's economy, and 50 percent of IPL's customer demand, yet it is the manufacturing base that is likely to experience the most serious downturn in the coming years.

The Energy Information Administration is projecting an average annual increase in electricity demand of 1.4 percent for the country as a whole between 2007 and 2030. This is the same rate IPL is projecting in its application ... Given that Iowa's economy is expected to grow more slowly than the nation's, it is difficult to conclude that Iowa's electricity usage will nevertheless be on par with that projected for the nation as a whole.

[From Jan. 17 testimony:] In late December the Census Bureau updated its long-term projections ... "...Iowa's population is projected to grow a total of only 1 percent between 2000 and 2030, placing Iowa 48th in the nation in projected population growth ... From 2010 to 2030, the out years of the Census Bureau projection, Iowa's population is actually projected to experience a net decline ..."

The argument is that we need this plant by 2013. I think this data is shOWingthat would be a number of years off...

Neil Harl, emeritus professor of economics, Iowa State University: Present and future economic uncertainties in the biofuels sector call into question the alleged demand growth for IPL from existing and proposed biofuels facilities. The future viability of ethanol and biodiesel facilities in IPL's service area is highly uncertain in the face of short-term market adjustments and competing fuel sources and technologies.

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[In cross-examining Alliant witness Brent Kitchen, Jennifer Easler of the Office of Consumer Advocate asked him to read portions of his testimony from proceedings leading up to IPL's 2006 sale of the Duane Arnold nuclear plant:]

Kitchen (reading): 'What are some concerns about committing to a resource today for 2014?" (Answer:) "IPL's resource planning is dynamic and constantly changing .... IPL's projected need for 2008, as determined in 2005, is approximately 408 megawatts less than what was determined for 2008 in 2001. The summer capacity rating from the Emery Generating Station ... is up approximately 43 megawatts from the original of 500 megawatts it was assumed to have... The loss of high load-factor customers choosing to self-generate (I.e., ADM), the choice of high load-factor customers to go from firm to interruptible load..., and a lower projected load grow1h rate all contributed to this reduction in resources needed for the future. The uncertainty regarding IPL's load going forward will affect plans going forward."

The 18 percent reserve margin utilized by IPL in its computer modeling is excessive and unsupported. For this purpose, IPL selected an 18 percent planning reserve margin, the upper limit of the 15 percent to 18 percent range noted in the current MAIN (MidAmerica Interconnected Network) Guide NO.6.

Correcting the fundamental flaws and undue limitations in IPL's modeling analysis, OCA's computer- modeling analysis ... shows that IPL can defer or eliminate the need for SGS Unit 4 for at least several years beyond 2013.

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April 15, 2008 Letter: Harnessing American ingenuity is energy answer

The kicker to the problem of creating and using renewable fuels is the time and energy required to generate them. It took thousands of years and the natural application of energy to create fossil fuel. Since mankind was not around, the process was free of any original costs to the coming generations of humans.

Since then it has been free for the taking - give or take a few oil wars, mining accidents and the backbreaking shoveling of 16 tons at low wages.

What is still free today is the untapped energy that exists around us - the same energy that naturally fossilized the biomass that became coal and oil. Today, rather than using fossil fuel to mine, refine and transport more fossil fuel to acquire more fossil fuel and to create biomass fuel, we need to go totally electric by harnessing wind, solar, thermal, surf and other sources that have not even been yet envisioned .

To facilitate this, our nation needs to set about building a new and advanced energy grid that accommodates the dispersed production and consumption of energy from across the entire continent.

To do this and free ourselves of the controlling past, we need to unleash the greatest energy of all: the American can-do spirit.

- Sam Osborne,

West Branch.

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April 15, 2008

Letter: Hydrocarbons are not the climate-change culprit

James Hansen's prediction that a single new coal-burning plant could cause "...a catastrophic tipping point that triggers drought, famine, rising sea levels ..." is completely off the mark ("States, Utilities Need a Road Map," April 13 editorial).

Global atmospheric temperatures correlate with the sun's activity, not with hydrocarbon use. In fact, while water vapor, a major greenhouse gas, warms the Earth, minor greenhouse gases such as carbon dioxide have little effect. A six-fold increase in hydrocarbon use since 1900 has had no noticeable effect on atmospheric temperature or on glacier length.

The increase in atmospheric carbon has had substantial environmental effect, however. Atmospheric C02 fertilizes plants enabling them to grow faster and larger and to live in a drier climate. The extent and diversity of plant and animal life have increased substantially in the past half-century.

Whether to build more coal-fired power plants should be based on other considerations, not on environmental effects of atmospheric carbon.

- Emil L. Martin,

Iowa City.

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April 14, 2008 Regain momentum on clean energy

THE REGISTER'S EDITORIAL

Gov. Chet Culver and legislators get energized as they talk about Iowa as a clean-energy state. Too bad they haven't done more to make it so.

Iowans rightfully take pride in the state's leadership in producing renewable energy - NO.1 or near the top in production of ethanol, biodiesel and electricity generation from wind.

But any meaningful definition of clean energy must include aggressive steps to reduce heat-trapping greenhouse gases, the culprit behind potentially catastrophic climate change. That's where Iowa lags behind the nalionalleaders.

The federal government should take the lead role in shaping climate-change policy. But states can advance the cause and position their economies to thrive in a c1ean-energy future.

Iowa leaped forward in renewable-energy production because of the blessings of geography (rich soil, abundant wind), the perseverance of agribusiness leaders, and bipartisan support in the General Assembly, whether Republicans or Democrats held the majority. Former Gov. Tom Vii sack championed development of wind energy, and so has Culver, who campaigned for creation of a $100 million Iowa Power Fund to promote development of renewable energy.

In arguably one of its best sessions on energy, the Legislature last year passed the Power Fund, established the Iowa Office of Energy Independence and created the Iowa Climate Change Advisory Council.

Lots of big plans offered ...

Momentum continued through year-end, raising hopes for another landmark session on energy. Among key developments:

• In November, Culver joined nine other governors in signing the Midwestern Regional Greenhouse Gas Reduction Accord. As a group, the governors pledged to establish greenhouse-gas reduction targets consistent with member states' targets and to establish a regional cap-and-trade system to award credits for reductions. He also joined in adopting a platform with more specific targets: States agreed, by 2015, to meet 2 percent of regional annual retail sales of natural gas and electricity through energy efficiency, and, by 2030, to ensure that 30 percent of electricity consumed in the region will be from renewable sources.

• In December, the Iowa Office of Energy Independence issued a plan recommending such steps as setting standards to reduce greenhouse-gas emissions 80 percent by 2050.

• A Jan. 1 interim report from the Iowa Climate Change Advisory Council also recommended developing multiple scenarios for statewide reductions in greenhouse gases, with 50 percent or 90 percent reduction strategies by 2050.

• Also on Jan. 1, an Iowa Utilities Board report on energy efficiency recommended requiring all utilities to submit energy-efficiency plans for IUB approval. Currently, the IUB approves only plans from investor-owned utilities, not from municipal utilities or rural electric co-ops. It also recommended that investor-owned utilities analyze the feasibility of increasing energy savings from 0.8 percent in 2006 to 1.5 percent of annual utility retail sales by 2012.

• And in the Condition of the State address, Culver called on the Legislature to adopt a new

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renewable-energy standard, requiring that 25 percent of all energy produced in Iowa be from renewable sources by 2025. He also has supported increasing utilities' energy-efficiency target to 1.5 percent.

... but legislation falters

So, with only a few weeks left in the session, what have legislators done to promote smart energy use? Not nearly enough.

There was no serious attempt to adopt greenhouse-gas reduction targets as state law. Eighteen states have set targets, including neighbors Illinois and Minnesota, according to the Pew Center on Global Climate Change.

Culver's "25 percent by 2025" target for renewable energy died in March.

Twenty-eight states have adopted renewable-energy standards, many of them more aggressive than Iowa's, Pew Center data show.

And the recommendations tei ramp up utilities' energy-efficiency efforts ran into a buzz saw of opposition from all involved.

The session's not entirely a dry well for progress· on energy, though. legislators support appropriation of the second $25 million installment for the Power Fund. A surviving bill would take at least a step toward greater energy-efficiency efforts by all utilities, requiring them to file reports detailing their activities.

A bill that retools some renewable-energy tax incentives also remains alive. That could allow self- generators like Kraft Foods in Mason City to tap the incentive when putting up a wind turbine to provide electricity for its plant, according to Sen. , a Cedar Rapids Democrat and one of the legislature's experts on climate change. It would also assist rural electric co-ops in building and operating wind farms. Another bill would take the important step of strengthening energy-related building-code enforcement.

Those bills should pass.

Opportunities could slip away

But none of that will thrust Iowa to the leading edge of states on clean energy. Those states will be in the best position to realign their economies and develop the expertise to reap jobs from the c1ean- energy economy.

Iowans already have seen that with biofuels and wind. In the wind industry alone, five wind- generation manufacturers have opened in Iowa or plan to do so, promising hundreds of jobs.

Culver must use his bully pulpit to greater effect, and legislators must rediscover their bipartisan enthusiasm for progressive energy initiatives. Otherwise, Iowa's clean-energy reputation and hopes for even bigger job gains will vanish in the wind.

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April 14, 2008

Hunter: Power-plant decisions take a long time, but that's OK

CAROL HUNTER EDITORIAL PAGE EDITOR

The parties squaring off over the proposed coal-fired power plant in Marshalltown see the case entirely differently.

For Alliant Energy and the two rural electric co-ops that would be part-owners, the case is all about base-load power, the steady output needed to serve industries operating 24 hours a day, such as ethanol plants. It's about generating low-cost electricity to serve growing demand while meeting all current state and federal environmental laws.

For the Office of Consumer Advocate and a coalition of groups opposing the plant, the case is all about the threat that emissions from coal-fired plants pose to the planet. It's also about the expected regulation of carbon-dioxide emissions and the high costs that ratepayers could shoulder to retrofit the plant to capture them.

Alliant's corporate gUiding principles acknowledge that scientific evidence supports efforts to reduce greenhouse-gas emissions. But beyond the argument of growing demand, the company centers its case on the seemingly unassailable logic that it can't be expected to follow laws that.don't exist. Current Iowa Code and federal laws don't regulate carbon-dioxide emissions.

Opponents counter with a persuasive argument of their own: When ruling on a plant with a price tag well over $1 billion and likely to operate a half century or more, it would be folly not to consider the cataclysmic threat of climate change, the near-certainty of carbon regulation and the costs that will entail. The Iowa Utilities Board has authority to look at the broader picture, they contend.

And so goes the back-and-forth volley through more than 6,000 pages of exhibits and testimony, including a weeklong hearing earlier this year in Marshalltown. The IUB is expected to rule on Alliant's application for a siting certificate in a few weeks.

This week, the Register's opinion pages will offer an overview of key factual arguments in the case, including demand and cost projections and the feasibility of alternatives.

But the board's approval or denial also will turn on two key legal arguments about Iowa statutes regarding siting of power plants. At fewer than 150 words, the main statute laying out criteria for a siting certificate appears deceptively simple.

The first main rub, however, comes with the stipulation that constructing and operating a facility "will be consistent with reasonable land use and environmental policies [emphasis added] ... considering available technology and the economics of available alternatives."

Alliant maintains that "policies" means law, so arguments about carbon regulation should be off the table. Opponents point out other policies in state statute, such as one declaring, "It is the policy of this state to encourage the development of alternate energy production facilities," including wind turbines. And they cite multistate agreements signed by Gov. Chet Culver committing to greenhouse-gas reductions.

The other key argument revolves around the IUB's two-part approval process - granting a site certificate and establishing ratemaking principles, which can be handled together or separately.

Alliant chose to file for ratemaking separately, on March 31. It contends that the IUB should ignore all of the opponents' arguments about need or the reasonableness of its plan. Those belong in http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080414/0PINIONO I /804... 4/30/2008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

ratemaking, it argues.

What's clear at this point is that the fate of the proposed plant will take months more to play out. Beyond the IUB's decisions, the Iowa Department of Natural Resources must grant an air-quality permit.

It's bad policy to tie up businesses in too much red tape, but this is the type of decision where deliberate consideration is warranted. The outcome will affect Alliant, Iowa consumers and the direction of state energy policy for decades to come.

Contact Editorial-Page Editor Carol Hunter at (515) 284-8020 or [email protected].

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April 14, 2008

The main statute governing siting applications

476A.6 DECISION - CRITERIA

The board shall render a decision on the application in an expeditious manner. A certificate shall be issued to the applicant if the board finds all of the following:

1. The services and operations resulting from the construction of the facility are consistent with legislative intent as expressed in section 476.53 and the economic-development policy of the state as expressed in Title I, subtitle 5, and will not be detrimental to the provision of adequate and reliable electric service. [476.53 says: "It is the intent of the general assembly to attract the development of electric power generating and transmission facilities within the state in sufficient quantity to ensure reliable electric service to Iowa consumers and provide economic benefits to the state." Title I, subtitle 5 of the Iowa Code pertains to economic development: "The mission of the Iowa Department of Economic Development is to enhance the economic development of the state and provide for job creation and increased prosperity and opportunities for the citizens of the state by proViding direct financial and technical assistance and training to businesses and individuals and by coordinating other state, local, and federal economic-development programs."]

2. The applicant is willing to construct, maintain, and operate the facility pursuant to the provisions of the certificate and this subchapter.

3. The construction, maintenance, and operation of the facility will be consistent with reasonable land use and environmental policies and consonant with reasonable utilization of air, land, and water resources, considering available technology and the economics of available alternatives.

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Learn more Go to OesMoinesRegister.com/coal to' learn more.about the proposed Marshalltown power plant and about climate change. Find Iinks!o case filings and,govemment reports. Other useful sources,' • The AliiantEnergy and Plains Justice I .1 Web sites, www.alliantenergy:com arid www.plainsjustice.org, which house copies of most of the case documents. • The Iowa Utilities Board, for information \ on utility regulation, wwW.iowa.govliub. • The Energy Information Administration, I the repository for U.S. government energy statistics, www.eia.doe.gov. For a brochure offering basic informallon about greenhouse gases and climate change, go to www.eia.doe.gov/oiafl1605/ggccebro/ .\ chapter1.html. • The Iowa Office of Energy Independence, ,for a copy of the Iowa Energy Independence Plan, www.energy.iowa.gov. The Iowa Utilities Board The three-member board by law must be bipartisan. Members are appointed by the govenor. The Marshalltown application it's hearing will require a Darrell simple majority vote. Krista Hanson John Tanner APPOINTED: Nov. 9, 2007, by Gov. Norris, APPOINTEO: April Chet Culver. 16, 2007, by Gov. II chairman EDUCATION: Chet Culver. Bachelor's degree, . APPOINTEO: March CAREER: I, 7, 2005, by Gov. Uni~erSity of Iowa. Regulatory attorney Master's, political science,.Unhiersily of I Tom Vilsack. practicing utilities CAREER: Vilsack's Northern Iowa. law. CAREER: COU,ntyextension. education II chief of staff, POLITICS/GOVERNMENT: Democrat. director for the Iowa State University I 1999-2001, which included chairing the EDUCATION: Bachelor's degree, governor's working group on electric extension office in Delaware County, \ University of Northern Iowa. Law degree, 19.96-2007 ..College instructor, 1991-94. I I ·restructuring. Ghief of staff, Iowa Rep. Drake University. Leonard Boswell. _, POLITICIi/GOVERNMENT:·Rep~blican. LIVES: Clive. State'legislatorrepresenlirlg Delaware /' POLITICS/GOVERNMENT: Democrat. FAMILY: Husband, Dean. Two daughters. State chairman of Iowa Oemocratic and adjoining counties,1979-1994. , Party, 199B. Field dlrectbr, Kerr,y- Member,. Iowa Environmental Protection Edwards campaign. Democratic nominee, Commission, 2000-07,three termsas 4th Congressional District, 200~. chair. Member, Manchester City Council, 2004-07. . EOUCATION: Bachelbr's'degree; . Simpson College. LaW degree, University LIVES: Ailoona. FAMILY: Wife, Janet. Two sons. of Iowa. LIVES: Des Moines. SOUrc

April 13, 2008 Needed: Climate-change leadership

The Register's Editorial

Alliant Energy executives believe that building a coal-fired power plant in Marshalltown is the only responsible course to meet the electricity demands of Iowa's growing industries and population.

Without it, if a large generating facility were to go off-line during peak summer use, it could trigger wide-scale blackouts, manager Randy Bauer has testified.

James Hansen, director of the Goddard Institute for Space Studies and an international authority on climate change, foresees dire consequences of a different sort. Adding a single new coal-burning plant could be "the straw on the camel's back" of the planet's climate, he has testified. The plant's emissions of heat-trapping greenhouse gases could force a catastrophic tipping point that triggers drought, famine, rising sea levels and displacement of millions of people living near the world's coasts.

The trouble is: They both might be right.

In a few 'weeks, the Iowa Utilities Board will issue its decision on whether to grant Alliant's siting application, one of the key approvals required before the plant can be built and opened. Power plants typically operate 50 years or more, so it's a decision that will affect Iowans for generations to come. It will impact everything from the price Iowans pay each month for electricity to the levels of particulates inhaled with each breath. It will steer Iowa's direction on a plethora of energy questions, from whether to require more energy efficiency in buildings or to increase generation of electricity from wind and other renewable sources. It will influence the types of energy jobs and economy that Iowa develops.

Yet, as much as this decision is all about Iowa, it's about the world, too, and how to meet surging demand for power, especially in developing countries, without endangering the planet in the process. Indeed, people around the worid watch every U.S. power-plant proposal, looking for a signal: Is the United States moving closer to addressing climate change, or will it continue a burn-energy-as-usual, wait-and-see approach?

Electricity generation is the nation's largest man-made source of greenhouse gases, mainly carbon dioxide. Reports by the International Intergovernmental Panel on Climate Change reflect the consensus among scientists that man-made increases in greenhouse-gas concentrations are very likely responsible for increases in global average temperatures. Even Alliant states in its guiding principles that "sufficient scientific evidence exists to support greenhouse-gas emissions reduction efforts."

The dilemma is how to mitigate climate damage in the short term, for the next decade or so, as nations ramp up the technology and capacity to generate sufficient energy from dean, sustainable' sources.

The three members of the Utilities Board are weighing conflicting testimony about demand forecasts, fuel supplies and prices and the feasibility of retrofitting plants with carbon capture-and-storage processes that are not yet developed, to meet federal carbon pricing regulations that are expected but not yet adopted. It's an almost impossible task, grasping for certainty where there is none.

It shouldn't be this hard. But that's what happens when federal lawmakers fail to lead. Faced with threats to "the well-being of today's and future generations of people and on all creatures and species of creation," as the Goddard Institute's Hansen puts it, the president and Congress have delayed and deferred. Such inaction hinders economic growth by making it harder for energy companies like Alliant to plan investments in infrastructure. And, as emission levels continue to rise, it makes the job http://www.desmoinesregister.comlapps/pbcs.dll/article? AID=/20080413/0 PINI ON03/804... 4/30/2008 www.desmoinesregister.comIPrinter-friendly article page . Page 2 of2

of reducing them that much bigger.

Fortunately, all three remaining presidential candidates are pushing platforms to address climate change. By rights, that shouldn't wait until next year. At the least, to eliminate incentives for a building spree, Congress should ensure investors in new coal plants don't benefit from any allowances granted existing plants when carbon is regulated. And it should greatly accelerate research and development of carbon capture and storage. Regardless of the decision on the Marshalltown plant, the world will burn coal for a long time. Coal fuels nearly half of U.S. electricity generation, and China and India have abundant coal reserves, too. It's imperative to develop the technology to burn it cleanly. That process alone poses huge hurdles in technology and logistics - and huge opportunities for the country that makes it work. Clean-energy innovation will create new jobs and industries and spark other breakthroughs. The rest of the world will come knocking to buy systems and expertise.

Too, confronting this threat offers the United States an opportunity to regain some moral high ground. The country that contributes a quarter of the world's fossil-fuel carbon-dioxide emissions shouldn't ask other countries to sacrifice unless it does as well.

The misguided Iraq invasion and a go-it-alone foreign policy have tarnished America's image abroad. America can regain some of its luster by helping the people of the world solve the biggest challenge of our times.

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REGISTER FILE PHOTO The MidAmerican Energy plant at Council Bluffs.

JOIN THE DISCUSSION When the Iowa Utilities Board opened its January hearing on the proposed coal-fired power plant in Marshalltown, the board chair, citing public interest in the case, took the unusual step of allowing audience comments for two hours.

Chairman John Norris said afterward, "I know this is a difficult issue. If it were black and white, we wouldn't be here. If there weren't serious issues to consider, we wouldn't be here." .

In light of those serious issues to consider, the Register's editorial-page staff will take an unusual step, too. In a series of pro-con pieces this week, we will layout the main areas of dispute, gleaned from more than 6,000 pages of testimony and submitted documents.

Today and Monday, our editorials will recommend changes in national and state energy policy, but we'll wait to offer a specific recommendation about the Marshalltown plant until next week.

Our hope is to encourage a statewide discussion about energy and climate change. To join the discussion, go to a forum at DesMoinesRegister.com/coal or write a letter to the editor: [email protected]. ------

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April 13, 2008

Energy options: Balancing the trade-offs

Register Editorial Staff

COAL

The United States has lots of coal, and the price has been cheap. That's why coal generates half of U.S. electricity.

Trade-offs for coal have included the work-force dangers and landscape damage wrought by mining, and, in recent years, mounting concerns about the health impacts of toxic emissions, such as sulfur dioxide and mercury. Plant owners have continuously improved technology to cut emissions.

Still, coal has remained attractive because of its low cost - until fears grew about climate change. Burning coal is the largest man-made contributor of carbon-dioxide increases in the atmosphere.

A growing roster of states and nations have rejected new coal-fired plants. Yet the United States is experiencing its biggest wave of coal-fired power-plant construction since the 19705. MidAmerican Energy's 790-megawatt facility in Council Bluffs, which opened last year, was part of that wave.

That's a ripple, though, compared to the tidal wave of coal-plant construction in China, which is building the equivalent of two coal-fired plants a week.

It's hard to forecast just how much carbon regulation will drive up the cost of burning coal. The cheaper the cost, the more nations will be tempted to keep burning it.

A report by the Energy Watch Group lists six countries as controlling 85 percent of global coal reserves: the United States (the leader, with 30 percent of the total), Russia, India, China, Australia and South Africa. While cautioning about the poor quality of data, the report predicts peak global production around 2025, at about 30 percent above current levels.

NATURAL GAS

Over the past couple of decades, natural gas became the U.S. fuel of choice for power plants. It emits less carbon dioxide than coal, and plants are generally cheaper to construct and operate. Natural gas is expected to gain another 3 percentage points of the generation pie over the next decade as more states ban new coal plants.

However, it's no longer 50 attractive. Costs have increased sharply. And the high dependence of Florida, Texas, the Northeast and Southwest on natural gas for electricity generation has increased potential for supply interruptions.

Increasing demand in Canada will limit imports from there. It was expected that delivery of liquefied natural gas from overseas would fill the gap, but construction of terminals has met resistance.

Plus, turning to overseas markets mirrors the pitfalls of U.S. dependence on foreign sources for 011: relying on uncertain supplies at uncertain prices from sometimes unstable or hostile nations.

NUCLEAR

The Nuclear Regulatory Commission has accepted for review nine applications to build nuclear plants, the first such filings in 30 years. No applications have been accepted for review from the Midwest, although projects in Michigan and Missouri are listed as possibilities. http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080413/0PINIONO I/804... 4/3012008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

Construction of nuclear plants screeched to a halt after the partial meltdown of a unit at Three Mile Island in 1979. But nuclear plants are gelling another look because they emit no greenhouse gases. And the safe operation of plants since '79 has eased concerns.

One problem, of course, is safe storage of the waste. A national nuclear-waste depository at Yucca Mountain, Nevada, was supposed to start taking shipments a decade ago, but opposition has stalled it.

Investment analysts remain wary. The North American Electric Reliability Corp. projects nuclear plants coming on line in 2015-16.

WIND

It represents a huge, still largely untapped resource for clean power and can help diversify fuel sources.

The big problem, of course, is variability: The wind doesn't blow all the time. So flexibility is required to increase or decrease generation from other fuel sources.

Iowa led all states in 2007 in the percentage of its electricity generation that comes from wind, at 5.5 percent. That percentage will have to increase substantially if states are to meet their adopted requirements of 25 percent or more of electricity generation from renewable sources.

Many of the best wind-energy sites are far from population centers or major transmission lines, so significant transmission upgrades will be required.

SOLAR

It has many of the same advantages and disadvantages as wind, It is abundant and clean, but the sun doesn't always shine.

Solar is not yet as cost-competitive as wind on a large-scale basis. Solar thermal power plants, including one whose 1.2 million mirrors would cover nine square miles, have been proposed in California, but none is operating.

ENERGY EFFICIENCY

No, it's not a fuel, but many experts say it should be treated that way in planning for future electricity needs. Utility managers and environmentalists agree: The cheapest unit of fuel is the one you don't have to produce. Tougher building codes and efficiency standards for appliances would reduce demand projections.

Sources: North American Eiectric Reliability Corp'. 2007 [ong:Term Reliaoility Assessment; Coai: Resources and Future Production, Energy Watch Group.

http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080413/0PINIONO I/804... 4/30/2008 Iowa plug'ged Into coal IOWA 1990 IOWA 2008 Comp;lrod wi,!, tho ""'Ion os. wI1oIt.rz1 gas 1:1% 5.~ ... inlOvr.>. but lho.talO hOo *'POd _ 01 IllJCIe3r l00r. 11.2% .... tho__""liOn ingenennlng• primorllywlnd.electrlcty from HydroelOClrlc U% 2.00r. ... Other renam!lleS 0.1% 5.4% lEY ns-. • Ioa'3 21Xl5 to:r. • us. 2006 0'- ~Of......

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Coal predominates IOWACAllSOU·OIOXlOE EMISSIONS In carbon-dioxide THOUSANDMmUe TOHS PERCENTAGE PERCENTAGE emissions 1998 2001 21ltJ& SHARE2006 2008 SHARE2006 Coal cOmbustion creafes eJtncnt DI or thO electric· Co&J 28.92T 39.847 39.256 98.7'11 1.974.057 60.3'l\ utilIty carbon ombskJns in P natlll

THE REGISTER

U.S. demand rises steadilv Total u.s. olectricity demand hl:ls rl$M 86 parcent since 1980. Tho annual mte ot incrcasa has SlOwed with ood1 docndo. howovct. fal!ng from onnu:d gtOWth fates of 4.2 percent In tho 1970$ to 2.3 pen:entln the 1990s and 1M3 lhM 2 ~t so fer thla docado. Tho rato of gJOWth b cxpec1ed to average 1.1 porcont annually between now and 2030. ",$0) HUIlBlR Of SWON m..owAn HOURS ....,'.'" ~"" ....,'.lOl ..., 1.l1D> "" 1geo 1m -1090 1!l9S 2000 200s 2016 20IS :26z0 Ifi>s 2O:io ~TWl -.AI ...... 10.9%' 22.1% 11.5'11 13.6% 6.3'1\ S;7'llo 5.2'l\ 5.4'11 $;3% 5.4'11 So.irw; Arru.I£nvrDy~ 200B l£a't ~

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April 13, 2008

Useful sources

The AUiant Energy and Plains Justice Web sites, which house copies of most of the case documents. http://www.allianten~gy.com/docslg[ou pslpu blicJdoQu m.ents/pu b/pO15466 .hcsp"> View it here

The Iowa Utilities Board, for information on utility regulation. http://www.io.wa.govliub ..>View it here

The Energy Information Administration, the repository for U.S. government energy statistics. hltp:/Iwww.eia.doe.gov">View it here

A brochure offering basic information about greenhouse gases and climate change. http://www~elView it here

€ The Iowa Office of Energy Independence, for a copy of the Iowa Energy Independence Plan. b.ttp:/Iwww.energY ..lowa~g9v/OEl/plan.html ..>View it here

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April 13, 2008

HUNTER: Challenge is big, but filled with potential

Carol Hunter

This winter's repeated rounds of line-snapping snow and ice storms reminded thousands of Iowa households just how uncomfortable life can be without electricity.

Reliability of electric service clearly weighed on the minds of members of the Iowa Utilities Board as they heard testimony about the proposed Marshalltown coal-fired facility.

"People look to us to make sure that the lights are there when you flip a switch," Chairman John Norris said following testimony about reserve capacities and increased generation from wind.

Colleague Darrell Hanson underscored his point: ''We are responsible for making sure that Iowans have power every year and every day, not just in typical years or average days or average years."

That basic expectation of modern living - when you push a button, you get power - will be more difficult and costly to deliver in a world committed to reducing emissions of greenhouse gases.

To continue using coal and natural gas, the most common fuel sources for electricity in the United States, breakthroughs in technology and processes will be required to capture the carbon dioxide in emissions and then sequester it, probably deep underground.

Other options have downsides, too. The nuclear industry must rebuild after a 3D-year forced nap - which should happen, given the alternatives. Wind and solar are wonderful resources and should be stepped up, but, at this stage of their evolution, don't provide continuous, consistent power and will require a massive ramp-up. (See Page 4 for a rundown of options, their pros and cons.)

Which brings us back to carbon capture and sequestration. A report prepared for Alliant by a Kansas City, Mo., engineering company and submitted as part of the case offers a peek at the complexity and scope of such an undertaking.

The separation part isn't so difficult. Industrial processes routinely separate and capture carbon dioxide as a byproduct. Cost is prohibitive at this point for power plants, though.

The bigger headaches come with storing the stuff. The report looked at formations such as saline or petroleum reservoirs, coal beds and sedimentary basins. Carbon dioxide would be injected as a supercritical gas - the point of temperature and pressure where carbon dioxide's density is identical as a gas or a liquid. That's likely to be 3,500 feet or more below the surface, the report found. That rules out much of Iowa's coal reserves, which would be too shallow.

The report identifies three possibilities as most promising: 1) Sedimentary rock formations in southwestern Iowa, which were once a focus of oil and gas exploration; 2) coal seams - although many wouldn't work, they're so vast they still hold potential; and 3) coal-bed methane wells in southeast Kansas. All would require securing right-of-way and pipelines.

Plus, the area involved for sequestration would be huge. The scenario in the report assumed handling the 50-year output of two 750-megawatt plants (the proposed Marshalltown plant is 630 megawatt). The estimated space required: 885 square miles, or about 30 miles by 30 miles.

The report cautions, in understated engineer-speak: "The impacts of these costs on the economic feasibility of a project must be carefully considered."

The costs and the engineering obstacles are daunting, but they're also nothing to fear. http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=120080413/0 PINIONO 1/804... 4/3012008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

"If you're worried that stopping global warming will wreck the economy, you're looking at this all wrong," Fred Krupp, president of the Environmental Defense Fund, wrote in an essay last week in the Wall Street Journal. "Solving global warming will be an added cost, yes - but a bargain compared with the economic cost of unchecked climate change. And fixing this problem will create an historic economic opportunity."

Historians often point to the Manhattan Project or the Apollo project as eras of national commitment to science and engineering that triggered innovations that continue to buoy the U.S. economy.

Compared to the technological, logistical and social challenges posed by climate change, those feats might look as easy as flying a kite.

Contact Editorial Page Editor CAROL HUNTER at (515) 284-8020 or [email protected].

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~,-backto_story Alliant must resubmit emissions plan for plant BY THE ASSOCIATED PRESS

IpOSTED: March 26, 2008

DES MOINES - Questions over a greenhouse gas emission plan at a proposed coal-fired energy plant in Marshalltown are not enough to derail the project, state regulators have ruled.

The Iowa Utilities Board said Alliant Energy had not "been as forthcoming as it should have been" in its response to questions about its emissions plan for the proposed Sutherland Unit 4 Generating Station.

But the board said it would not be appropriate to toss out the project now, as several environmental groups had requested.

According to the board's March 21 ruling, Alliant's greenhouse gas emissions plan was not filed properly with the utilities board. If it is to be considered, the overall project plan would have to be resubmitted to the board.

In February, Alliant announced a greenhouse gas emission plan to go with the Marshalltown project. It included retiring two coal-fired generating units at the company's Lansing Generating Station and converting the fuel source of the company's Dubuque Generating Station from coal to natural gas.

A coalition of environmental groups complained that the move violated their rights to intervene in the case and receive fair answers to their questions. The environmental coalition had wanted to use the complaint as grounds to throw out plans for the plant altogether.

Alliant spokesman Ryan Stensland said a greenhouse gas plan will be filed in another proceeding later this· month.

The board is expected to decide on the construction of the Marshalltown plant in May, Stensland said.

S.ubscCib.e.to_cimes_Repub.lican

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February 29, 2008

EPA: Ruling will hinder coal plans

By PERRY BEEMAN REGISTER STAFF WRITER

A national environmental group on Thursday predicted utilities will have a tougher time building coal plants in Iowa and a dozen other states after a federal appeals court earlier this month threw out a federal pollution-trading system that allowed excess mercury emissions at some plants.

Iowa air-quality officials said the decision, if it stands, could mean tougher limits on mercury and other pollutants at new coal plants.

'Wisconsin-based Alliant Energy has proposed a coal plant in Marshalltown, while LS Power plans to open one in Waterloo.

''We feel confident that the control technology we proposed will allow us to meet those standards at whatever level," said Alliant spokesman Ryan Stensland.

The nonprofit Natural Resources Defense Council claims that three dozen proposed coal plants will have to be redesigned to include different pollution-control equipment because of the decision. The Feb. 8 ruling by the Washington, D.C., appeals court has not been appealed, but there's still time.

"The February 8 court ruling will have far-reaching consequences for coal-fired power plant construction, permitting and pollution controls," NRDC clean-air director John Walke said. "This important new legal tool will increase the pollution-control obligations for new coal-fired power plants, raise the already considerable expense of these projects, and add to the weight of arguments that the public deploys to oppose conventional coal-fired plants."

Dr. Jennifer Sass, a senior scientist at the group's public-health program said, "We need to remind (people) that this is not just some fight in a courtroom.

"It also goes to the heart of a major public health crisis. Failing to clean up mercury pollution sentences our children to a life of lost opportunities."

Sass said studies based on U.S. Centers for Disease Control and Prevention data linked elevated mercury levels with reduced IQ in 300,000 to 600,000 children a year. Mercury also has been linked to heart disease and developmental problems. Some people are exposed by eating fish carrying high levels of mercury.

States with two or more pending plants are Iowa, Michigan, Wyoming, Illinois, Nevada, Ohio, Pennsylvania, Texas, Kentucky, Louisiana, Georgia, New Mexico and North Carolina.

In 2005, the EPA issued two regulations about mercury from coal plants. One removed the power plants from a list of industries that had to meet the Clean Air Act's "maximum achievable control technology" requirements to reduce toxic air pollution. The other allowed plants to emit excess mercury if they bought allowances from a facility that emitted less than the amount allowed.

In New Jersey vs. U.S. EPA, the U.S. Court of Appeals for the D.C. circuit overturned the EPA's pollution-trading arrangement for coal plants and ruled that the agency erred in limiting its regulation to mercury. The court ruled that arsenic, lead, chromium and all other air toxins emitted from coal burning should be regulated too. http://www.desmoinesregister.com!apps/pbcs.dlll arti cle?Al D=2 008 8022903 7O&temp late=... 2/29/2008 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

The EPA's pollution-trading rule allowed plants to emit four to 20 times more mercury than tougher permit rules in various states allowed, the NRDC reported.

If the tougher limits go back into effect, plants could spend more on scrubbers and baghouses, potentially affecting electricity prices.

Catherine Fitzsimmons, chief of the state air quality bureau, said Iowa will continue to use the EPA's old rules, including the prospect of pollution trading. That's because the EPA rule won't be officially vacated for a few weeks, and will stand at least temporarily if utilities, or the EPA, appeal the ruling.

Reporter Perry Beeman can be reached at (515) 284-8538 or [email protected]

http://www.desmoinesregister.com/apps/pbcs.dlllarticle? AID=20088022903 70&template=... 2/29/2008 In your voice READ REACTIONS TO THIS STORY

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- - "< DJustKeepSwimming wrote: A note on reading comprehension: environmentalists didn't throw out the mercury rule as inadequate, a federal appellate court did. And to the people who think that any amount of pollution is fine as long as someone's making a buck on it: I think ,- you'd be happier in China, where they have practically no environmental' ' .. protections, the economy is booming, and Olympic athletes are refusing to attend the Games because the air quality might do t~eir lungs permanent damage. Are our only choices really sitting in the cold and dark or wearing respirators and watching the coastline disappear? Is that really the. best we can do? " 21291200810:56:58 AM . c Recommend (2) Reoort Abuse. ·" = I .. -~ - .' '. DEngineer wrote: We are really on an insane path for energy production. People have been,led to' believe a continuous source of energy can be replaced with intermittent sources of power. The only way this is possible is with some massive way to store energy produced by intermittent sources or to over build on such a massive scale that the energy is available somewhere and,can be transported to where iUs needed. The need for energy is not going to decrease, especially electrical energy. If plugDin electric cars become viable, the need for more.electrical energy at night will increase dramatically. This could happen over a relatively short period of time. We cannot have one agency looking at one aspect of a problem without considering all of the ramifications. The only known heavy weight alternative to coal we have is nuclear. Reactors are available which solve the waste problem. We stopped research on them in 1994 thinking other countries would follow. They did not. Now we are behind. 212912008 10:50:31 AM Recommend Report Abuse

DPadCdr wrote: Seems legitimate to me. If the environmentalists don't want more plants built, they should reduce the demand by dropping off the grid, and that includes use of email, the Internet, cell phones, etc. . 21291200810:39:39 AM . Recommend Report Abuse [I .. OwenThursday wrote: ., I So I guess Orneree doesn't want any emission controls on power plants at all? Fine, you live downwind. This is about mercury emissions. It's difficult to remove and expensive, but it's necessary. Mercury is a poison; it causes deformities in fetuses, it affects the brains & nervous systems of little kids. It's a "bio- accumulator"; it works it's way up the food chain. Contaminated fish are eaten by humans, also get the mercury. I work in environmental compliance with the Clean Air Act. I love guys like you. They complain about too many regulations/laws UNTIL they get affected. My best call came from a guy who started the conversation with "I think govmint employees are lazy, overpaid, and don't do anything, but I need your help." Well when I get sweet-talked like that, how can I say "no"? And it happens nearly every day. And to answer your pending question, no, I don't work in Iowa .. 212912008 10:06:01 AM Recommend (1) Report Abuse

oldad wrote: •orneree: You're on to the real test for green power advocates!!!! Every one of them that had the strength of thier convictions would have the electric meter pulled off the side of thier house. AND they wouldn't use anything but non- poluting alternative sources. I have a beef with Pepsi, I boycott thier products. My economic impact hasn't changed Pepsi's position. Perhaps green power has more clout. At least they could contribute to reduced demand . Texas got a taste yesterday http://www.star- teleg ram .com/state _ news/story/500595. html 212912008 10:05:15 AM Recommend Report Abuse - ,'. ····.·············· 0orneree wrote: So I guess the environazis want a Florida occurrance every day in Iowa and the rest of the midwest. Maybe we could arrange it so they have NO ACCESS to any energy not generated by "clean" sources. Then when there is no clean power for them they can sit in the freezing cold in the dark! 212912008 9:36:43 ~ . Recommend Report Abuse cocinero wrote: •Who should pay the costs of electricity generated from "clean" coal? Should everyone downwind pay the health and environmental costs of pollution? What are the costs of300,OOOto 600,00 children with reduced IQs? The court said that the Clean Air Act requires the polluters to pay what it takes to prevent pollution. All of us who use coal-generated electricity will pay more, and we should. The cost of reducing mercury and other toxic pollutants will be small in comparison to the cost of sequestering carbon dioxide. The era of cheap electricity from coal may be slowly ending. Like the tobacco industry in previous years, the coal industry is waging a huge propaganda campaign to deny the impact of their product. Clean coal is an oxymoron. 2/29/2008 9:08:04 AM Recommend Report Abuse

buzzcut75 wrote: •'If the tougher limits go back into effect, plants could spend more on scrubbers and baghouses, potentially affecting electricity prices .• Translation: Sould a corporation that is the majority stock holder of an electric generating company be forced by government regulation to invest more in scrubbers and baghouses at its coal-fueled plants, returns on stock options and dividends could see a temporaty decline. Therefore, to maintain current levels of return and insure future increases in stock profitability, costs of new equipment will be passed along to to 'consumer" in the form of higher bills. Consumers all also notice an increase in repair response times, following catastropic storms and other natural disasters, as repair crews will be downsized through attrition.

2/2912008 8:40:29 AM Recommend(2) Report Abus e www.desmoinesregister.comIZoom Image Page I of I

·Coal plant plans "_comt1IlCelll ...... """Il ceutI Dalnpet pbrd rcr A)W COr!J p.ns In 13 EUlea.' It1e HBItnaJ .-ua> CIIllmIl COundI rqxJlt&d. 1lYl r1ISlJ"IiJ D'1IDI.1I DUliN pJanlDBm1 Bdlnt1t!1raUcn'8__ lD erm nsoern!lC1P'J IhaD.....,.."8Dl:l'&'ed B!l1org • iAJ&&itJEi3tJcma fadIlly Ina:I eJ1lIb bB · IhazI BItJ&9:1.

http://www.desmoinesregister.com/apps/pbcs. dll/secti on ?template=zoom&S ite= D2&Date... 2/29/2008 ISwitchiHg ';'.:1 FINAL ·to 'green' ----_ .. - SUNDAY energy '~. Febr,uary 24, 2008 has a cost r \ Officials say coal plants are used by Iowa companies that make ethanol and wind-turbine blades.

By PERRY BEEMAN REGISTER STAFF WRlTER HARRY BAUMERT/REGISTER FILE PHOTO Iowans who try to go "green" with ethanol I or wind power will unwittingly contribute !, An anti-power plant sign displayed in to greenhouse-gas emissions, say energy a yard last fall in Dewar reflects how officials. :,~m~.19;wans feel about coal plat!.ti\" That's because the Iowa companies that " make ethanol and wind-turbine blades are largely powered by coal, a chief source "They,seem of carbon dioxide and other heat-trapping to be saying, ' gases. 'Burn coal to Officials with AIliant Energy, which has pro- fight global posed a new coal-fired warming.' " plant in Marshalltown, told the Iowa Utilities Andrew Snow, Board recently that if a climate activlsl Iowans want renew- able energy, they will need more electricity "This is part from coal plants. of how we keep That left environ- mentalists who are and transition fighting the plant to the new shaking their heads. "It seems like they energy of the are trying to' take Mure." advantage of a green- washing opportunity Slale Sen. Larry' by saying this helps McKibben with greenhouse gases, but they are . actually making the case that we need more green electricity," said Matthew Davis of Environment America. Andrew Snow, who follows climate change issues in Iowa for the Environmental Law & P0ttili~t'-,:~,G~,it,er la..cricago:,chuckled at the SI a Ion:;, e ,."~rASt"~to·s.~yjiig;\bum coal to fight global wa· iJ'g, Sjjowisai~'" 4R~~~~~~YtfZ8 per~tjlf8~~W~r g¢.p:er- ated In Jowa' comes froml'coal.'That means ,t!W,virtU31ly: efetr ..Win(r·!Itil:Di~e~~~ufac- tus.~,:ethanol, .plant,"recy;cl~ng, faeI11~ ?;iil

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~'" Going Environmentalists Senator looks . I cite twisted logic to future of energy Environmentalists are fight- In his testimony at a utilities 'green' , ing the plant. They say If board public hearing, Sen. Iowans cut their power use LarrY McKibben of Marshall- • : through efficiency programs, toW' said he realizes that I Alliant wouldn't need what cOij-fired energy is used at cames they see as twisted logic. bilelS plants he drives by Bum ethanol to cut green- at eamboat Rock and Iowa house gas emissions and you Fa He knows the new wind- a cost still are using power fro,,:! a tu ne-blade plants in Iowa coal plant that is con~nbutmg rell2/lcoal, too. COAL, fromPage1B to climate change. As It stands, "115 is part of how we keep in Iowa you don't have much aninsition to the new en- "er the future," he said. energy-efficient home is still choice. "You scratch the surface on '\ U ies say they need more contributing to the worsening ethanol and you find a black of climate change by using ge~ting capacity to keep up lump of coal," said Mark Kre- witl I percent to 2 percent power from coal. sowik who fights coal plants Alliant Energy has proposed and jump in electricity use for the Sierra Club. "That , in I~that is fueled by forces a 630-megawatt, coal-fired changes the dynamics." power plant in Marshalltown. , rang from flat-screen 1Vs, Plugin an electric and hybrid w~use five times more The company testified to the car - you're most likely buy- utilities board that more coal po han older sets,to ing coal power to do It. . eth! plants. power is needed in large "I tbink thars true, but .It part to support the growing I '1jatural gas prices soar- doesi\'t have to be," Kres,owlk in~ wind energy variable, fleet of plants that produce f ethanol - which could re- said .. th~ngly support coal as Intlrstate chiefTomAller has th'iPest, most reliable fuel duce dependence on foreign saidkoal is byfar the cheapest oil - and facilities in New10n fo']ower plants. and ~ost reliable way to pro- B,e Sierra Club's Kre- and elsewhere that will make vide large amounts of power. wind-turbine blades or other j solaid energy-efficiency The lompany also is investing " prcrs would prevent the wind-energy components. in nJ., wind developments .. Spokesman Ryan Stensland ne"r the new plant, and MiclAmericanEnergy, which Wi,pergy could help, too. of Alliant Energy, parent of In- operl,d a new coal plant in terstate Power and Light Co., SJi of the environmental CouJcil Bluffs last year, has po/Icenter, said facilities which proposed the $1.5 bil- takeh a similar approach. lion Marshalltown plant, said sucls wind-turbine manu- Aniericans for Balanced En- faet!rs could easily get most biofuels plants now under ergy Choices, which is bac~ed construction or planned would of tl- power from wind tur- by coal and power compames binrfn their own sites. bit the.mselves consume the and transportation firms, equivalent of [nterstate's 350- ~thanol plant in Win- has run a monthslong media nebio, Minn., soon will gen- megawatt share of the power campaign supporting coal as from the new plant. I erat' almost half its power a clean, cheap way to power With'wind turbines and wants grow1hin Iowa and the rest of WQ.ndeventually to provide all . the United States. its electricity, Snow said'. Reporter Perry Beeman c's.d'b-u' ".ched el (5151284·8538~ilr [email protected] Alliant plans to reduce greenhouse gas emissions I Times Republican Page I of2 'mte·mtijublicau\

Centmllowa's Daily Newspaper ___$$A " -~=="' ,- - --; - ...• :; :n ,. _55.

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Alliant plans to reduce greenhouse gas emissions By DAVID PITT, THE ASSOCIATED PRESS

IpOSTED: February 9, 2008

DES MOINES - Interstate Power and Light Co. said Friday it plans to reduce greenhouse gas emissions by retiring two coal burning electricity generating units in Lansing and switching a Dubuque power plant from coal to natural gas.

The plans will only be implemented if the' company, a subsidiary of Wisconsin-based Alliant Energy Corp., is allowed to build a new $1.5 billion coal plant in Marshalltown.

The company expects to complete the regulatory application process and get an answer from the Iowa Utility Board this summer.

That plant, if regulators approve it and it's built as scheduled, is expected to be operational in 2013.

At that time two units at the Lansing Generation Station would be shut down and the Dubuque Generation Station would switch to natural gas.

Interstate Power and Light President Tom Aller said any changes in employment levels will be managed through retirements or attrition.

The changes would reduce carbon dioxide emissions by more than 800,000 tons a year, the company said in a statement.

Plans to build wind turbines in north central Iowa and implement energy efficiency initiatives to reduce customers' electric usage are expected to reduce emissions by another 2.57 million tons per year, the company said.

All of those actions would more than offset the 3.1 million tons of carbon dioxide that could be released from Interstate Power and Light's portion of the proposed Marshalltown plant.

The proposed Marshalltown plant would be capable of generating 630 megawatts, enough to power 472,000 homes and business, however Interstate Power and Light would own 350 megawatts of output. The remaining portion of the plant would be owned by rural electric cooperatives.

"Our proposal improves Iowa's air quality and environment while providing a reliable energy supply to support the growth of Iowa's economy," Aller said. "We are preparing Iowa for a bright energy future by confronting the challenges of greenhouse gas emissions and ensuring a reliable energy supply today."

Several organizations including Community Energy Solutions, the Iowa Environmental Council, Iowa Farmers Union, Iowa Renewable Energy Association and the Iowa Chapter of Physicians for Social Responsibility have opposed construction of the plant, citing concerns over pollutants that worsen global warming and the public health.

The groups also contend that the plant would increase electrical rates.

Aller said a rate Increase is likely, but the process of seeking an increase cannot begin until after the plant

http://www .timesrepub lican.comJpagel content.detaillid/5 02 557.html ?show layout=O 2113/2008 Alliant plans to reduce greenhouse gas emissions I Times Republican Page 2 of2

is built and online.

Carrie La Seur, president of Cedar Rapids-based Plains Justice, a public interest environmental law center, said environmental groups had pressed Interstate Power and Light and Alliant for months for information about specific plans to offset carbon emissions, but the companies refused.

She said the timing of Friday's release is questionable because documents are due before the Iowa Utilities Board on Monday. That gives the environmental groups little time to explore the Interstate Power and Light plan and comment on it in filings to the utilities board.

"I am perplexed by their timing in offering this proposal now when we've been asking for it for the last six months and hoping to present more detailed evidence in response to the utilities board," she said.

La Seur said the groups may ask the utilities board for an extensions of time to further explore Interstate Power and Light's proposal and file a response.

She said the proposal would only be significant if it is considered by the utilities board as part of the approval process and included as required action to get permission to build the plant.

"If it's just unenforceable promises, well, we're not interested," she said.

http://www.timesrepublican.com/page/ content.detaillidl 502557. html ?show layout=O 2/13/2008 Alliant plans to reduce greenhouse gas emissions I Times Republican Page lof2 ~·atpub[ica\ Centr.tllowa's Daily Newspaper Q __ ._- = .$, _••.•• w ", =- _ L_ _ t._ __ c_ >. :e. j%:# __ 4 __ • ~ . -4_ .,,~ __ ..- __ " Print this Page

«-_,.backt05tOl)'

Alliant plans to reduce greenhouse gas emissions By DAVID PITT, THE ASSOCIATED PRESS

IpOSTED: February 9, 2008

DES MOINES - Interstate Power and Light Co. said Friday it plans to reduce greenhouse gas emissions by retiring two coal burning electricity generating units in Lansing and switching a Dubuque power plant from coal to natural gas.

The plans will only be implemented if the company, a subsidiary of Wisconsin-based Alliant Energy Corp., is allowed to build a new $1.5 billion coal plant in Marshalltown.

The company expects to complete the regulatory application process and get an answer from the Iowa Utility Board this summer.

That plant, if regulators approve it and it's built as scheduled, is expected to be operational in 2013.

At that time two units at the Lansing Generation Station would be shut down and the Dubuque Generation Station would switch to natural gas.

Interstate Power and Light President Tom Aller said any changes in employment levels will be managed through retirements or attrition.

The changes would reduce carbon dioxide emissions by more than 800,000 tons a year, the company said in a statement.

Plans to build wind turbines in north central Iowa and implement energy efficiency initiatives to reduce customers' electric usage are expected to reduce emissions by another 2.57 million tons per year, the company said.

All of those actions would more than offset the 3.1 million tons of carbon dioxide that could be released from Interstate Power and Light's portion of the proposed Marshalltown plant.

The proposed Marshalltown plant would be capable of generating 630 megawatts, enough to power 472,000 homes and business, however Interstate Power and Light would own 350 megawatts of output. The remaining portion of the plant would be owned by rural electric cooperatives.

"Our proposal improves Iowa's air quality and environment while providing a reliable energy supply to support the growth of Iowa's economy," Aller said. "We are preparing Iowa for a bright energy future by confronting the challenges of greenhouse gas emissions and ensuring a reliable energy supply today."

Several organizations including Community Energy Solutions, the Iowa Environmental Council, Iowa Farmers Union, Iowa Renewable Energy Association and the Iowa Chapter of Physicians for Social Responsibility have opposed construction of the plant, citing concerns over pollutants that worsen global warming and the public health.

The groups also contend that the plant would increase electrical rates.

Aller said a rate increase is likely, but the process of seeking an increase cannot begin until after the plant

http://www.timesrepublican.com/page/content.detaillid/502557.html? show layout=O 2/13/2008 Alliant plans to reduce greenhouse gas emissions I Times Republican Page 2 of2

is built and online.

Carrie La Seur, president of Cedar Rapids-based Plains Justice, a public interest environmental law center, said environmental groups had pressed Interstate Power and Light and Alliant for months for information about specific plans to offset carbon emissions, but the companies refused.

She said the timing of Friday's release is questionable because documents are due before the Iowa Utilities Board on Monday. That gives the environmental groups little time to explore the Interstate Power and Light plan and comment on it in filings to the utilities board.

"I am perplexed by their timing in offering this proposal now when we've been asking for it for the last six months and hoping to present more detailed evidence in response to the utilities board," she said.

La Seur said the groups may ask the utilities board for an extensions of time to further explore Interstate Power and Light's proposal and file a response.

She said the proposal would only be significant if it is considered by the utilities board as part of the approval process and included as required action to get permission to build the plant.

"If it's just unenforceable promises, well, we're not interested," she said.

http://www.timesrepublican.com/page/content.detail/idl502557.html?showlayout=0 2/13/2008 Page8A Saturday,February 9,2008 TheOesMoines RegisterGC ---- Court fells Bush's mercury , Environmentalist and health experts argued that such a cap-and-trade mechanism would create "hot spots" of controls mercury contamination near some power plants, Seventeen An appeals panel says the states as well as environmental and health groups joined in a \ weaker policy on reducing lawsuit to block the regulation, , power plant emissions saying it did not adequately violates the Clean Air Act, protect public health, Power plants are the biggest By H. JOSEF HEBERT source of releases of mercury, ASSOCIATED PRESS which finds its way into the food supply, particularly fish, Washington, D.C. - A Mercury can damage develop- federal appeals court said ing brains of fetuses and very Friday the Bush administra- young children, tion ignored the law when The U,S, Court of Appeals for it imposed less-stringent re- the District of Columbia Circuit quirements on power plants said that the EPA violated the to reduce mercury pollution, federal Clean Air Act when it which scientists fear could scrapped a mercury-control cause neurological problems policy established in December in 60,000 newborns a year. 2000 under the Clinton admin- A three-judge panel unani- istration, Utilitieswere required mously struck down a mer- to install the best availabletech- \' cury-control plan imposed by nology to capture mercury from the Environmental Protection power-plant smokestacks, Agency three years ago. It es- That policywas anticipated to tablished an emissions trading capture more than 90 percent process in which some plants of mercury releases, The cap- could avoid installing the best and-trade approach imposed mercury control technology by by the EPAin March 2005 en- buying pollution credits. , visioned capturing 70 percent of emissions by 2018. "This three-judge panel has done the world a favor and helped save lives," said Con- necticut Attorney General Rich- ard Blumenthal, whose state participated in the lawsuit. EPA spokesman Jonathan Shradar said the agency was not giving up on the cap-and- trade approach to reducing x mercury. "This rule is still our polieyuntil we evaluate how to m6ve' fOIWard," said Shradar. D GC SATURDAY February 9, 2008 , . 1;1 Alliant says it will offset ermSSlons• • Alf of those actions would more than offset the 3.1 mil- .of proposed lion tons of carbon dioxide that could be released annu- ally from Interstate Power and coal plant Light's portion of the proposed Marshalltown plant: But, in announcing several The proposed Marshalltown plant would be capable of gen- moves to help do that, erating 630megawatts, enough the utility draws fire over to power 472,000 homes and business. Interstate Power and its timing and the plan's Light, however,would own 350 environmental effects. megawatts of that output. The remaining portion of the plant ASSOCIATED PRESS would be owned by rural elec- Interstate Power and Light tric cooperatives. Co. said Friday it intends to "Our proposal improves retire two coal-burning elec- Iowa's air quality and environ- tricity-generating units in ment while providing a reliable Lansing and switch a Dubuque power plant from coal to natu- SeeALLIANT, Page20 ral gas. The plans will be imple- mented only if the company, a subsidiary of Wisconsin- based Alliant Energy Corp., is allowed to build a $1.5 billion Coal plant opponent pans Alliant plan coal plant in Marshalltown. The company expects to complete the regulatory ap- ALLIANT, fromPage10 electrical rates. comment on it in filings to the plication process and get an Aller said that a rate increase utilities board. answer from the Iowa Utility energy supply to support the is likely but that the process "I am perplexed by their Board in the summer. growth of Iowa's economy," of seeking an increase cannot timing in offering this pro- That plant, if regulators Aller said. "We are preparing begin until after the plant is posal now when we've been approve it and it is built as Iowafor a bright energy future built and online. asking for it for the last six scheduled, is expected to be by confronting the challenges Carrie. La Seur, president of months and hoping to present operational in 2013. of greenhouse gas emissions Cedar Rapids-based Plains more detailed evidence in re- At that time, two units at the and ensuring.a reliable energy Justice, a public interest en- sponse to the utilities board," Lansing Generation Station supply today." vironmental law center, said she said. would be shut down, and the Several organizations, in- that environmental groups had La Seur said the groups may Dubuque Generation Station cluding Community Energy pressed Interstate Power and ask the utilities board for an would switch to natural gas. Solutions, the Iowa Environ- Light and Alliant for months extension to further explore , Interstate Power and Light mental Council, Iowa Farm- for information about specific Interstate Power and Light's President Tom Aller said any ers Union, Iowa Renewable plans to offset carbon emis- proposal and file a response. changes in employment levels ' Energy Association and the sions but that the companies She said the proposal would would be managed through Iowa chapter of Physicians refused. only be significant if it is con- retirements or attrition. for Social Responsibility She said the timing of sidered by the utilities board The changes would reduce have opposed construction Friday's release is question- as part olthe approval process carbon dioxide emissions of the plant, citing concerns able because documents are and included as required ac- by more than 800,000 tons a over pollutants that worsen due before the Iowa Utilities tion to get permission to build year, the company said in a global warming and the pub- Board on Monday. That gives the plant. statement. lic health. the environmental groups little "If it's just unenforceable Plans to build wind turbines The groups also contend time to explore the Interstate promises, well, we're not in- in north-central Iowa and that the plant would increase Power and Light plan and terested," she said. implement energy efficiency Mftif4uwKwiiW:1I8':1/;,,'""'~ .'11<, ,'I01);!"" "Ajff£di$i,ik;WI1~:W+f'.H '''''iw' .'. \1;;,,,,,1 initiatives to reduce customers' electricity use are expected to reduce emissions by another I 2.57 million tons per year, the .. company said. I I I

,! ) l.. '"

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Roling, Chris [DNR]

From: Fitzsimmons, Catharine [DNR) Sent: Friday, February 08, 2008 12:31 PM To: Phelps, Dave [DNR]; Roling, Chris [DNR]: Welch, George [DNR): Campbell, Doug [DNR); McGraw, Jim [DNR]; Marcel, Jason [DNR]; Hutchins, Brian [DNR] Cc: Gieselman, Wayne [DNR]: Leopold, Richard [DNR] SUbject: FW: Press Release Attachments: ANR047-08.doc fyi

From: Arnold, Alan [mailto:AlanArnold@alliantenergy,com] sent: Friday, February 08, 2008 10:49 AM To: Fitzsimmons, catharine [DNR] Cc: Lipp, Kathy Subject: Press Release

Catharine- hello! Kathy contacted me and asked that I forward on the attached press release that was just issued around 10:00 AM. I have pasted it below in case you can't open the attachment remotely.

Alan News Release FOR IMMEDIATE RELEASE Media Contact: Ryan Stensland (319) 786- 4171 Investor Relations: Jamie Freeman (608) 458-3274

Interstate Power and Light Company to permanently reduce greenhouse gas emissions

Company to retire older coal-fired power plants and switch Dubuque Generating Station fuel source to natural gas in 2013

CEDAR RAPIDS, Iowa - February 8, 2008 - Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), proposed today to permanently reduce its generating fleet's greenhouse gas emissions by retiring coal-fired generating units and switching the fuel source of other coal-fired units to natural gas when its proposed Sutherland Generating Station Unit 4 becomes operable in 2013.

The proposed changes to IPL's generating fleet will be filed with the Iowa Utilities Board (IUB) as part of IPL's application for ratemaking principles for the proposed Sutherland Generating Station Unit 4 and are subject to the approval of the IUB and the Minnesota Public Utility Commission. IPL expects to make the filing late first quarter of 2008.

IPL expects that the generating station retirements and fuel switch at the Dubuque power facility will have no impact upon current employees.

"We, alone, have an obligation to serve our customers and this plan fulfills that obligation by providing our customers with safe, reliable and environmentally responsible energy," states Tom Aller, president of IPL, "Our proposal improves Iowa's air quality and environment while providing a reliable energy supply to support the growth of Iowa's economy. We are preparing Iowa for a bright energy future by

2/8/2008 Page 2 of3

confronting the challenges of greenhouse gas emissions and ensuring a reliable energy supply today."

As part of its greenhouse gas emissions reduction proposal, IPL will retire Lansing Generating Station's coal-fired units 2 and 3. In addition, the company will permanently switch the fuel source of its Dubuque Generating Station Units from coal to natural gas. This will reduce these units' maximum potential to emit CO2 by more than 800,000 tons per year. These potential changes in IPL's generating fleet are contingent upon the company receiving all applicable regulatory approvals related to Sutherland Generating Station Unit 4's site certification and ratemaking principles applications.

IPL estimates that its energy efficiency programs, which include the new five-year plan the company expects to file with the IUB later this year, will reduce customers' electric usage by nearly 2 million

(more) megawatt-hours by 2013. As a result, IPL's system-wide CO2 emissions are expected to be reduced by approximately 2.57 million tons per year compared to what those emission levels would be absent the company's energy efficiency programs.

IPL recently received approval to build 200 MW of wind generation in Iowa by 2013 that will also serve to reduce the Company's system-wide C02 emission levels by approximately 934,000 tons per year in 2013 from what those emissions levels would be absent this investment.

In addition, Sutherland Generating Station Unit 4 is being permitted to utilize up to five percent renewables, such as switch grass or corn stalks, as fuel and, as such, can be considered a hybrid facility. The facility's CO2 emissions levels do not increase from the use of renewables as a fuel source. As a result, CO2 emissions from Sutherland Generating Station Unit 4 are reduced by an additional 156,000 tons per year when the fuel source is economically available for use at the facility.

IPL's 350 megawatt ownership share of Sutherland Generating Station Unit 4 has the maximum potential to emit approximately 3.1 million tons of CO2 annually under its air permit application. IPL's proposal to retire or fuel switch less efficient coal-fired generating stations, aggressively pursue energy efficiency and invest in renewables is expected to more than offset Sutherland Generating Station Unit 4's expected CO2 emissions in 2013 when the facility is operational.

"Since our initial announcement in January 2007, our proposal has focused on doing what is right for our customers and Iowa," adds Mr. Aller. The cost of 'saying no', as some have advocated, to securing a reliable energy supply that is environmentally responsible for our customers and Iowa is not an option."

"Our proposal adds a highly efficient generating station that uses renewables as a fuel source, expands our renewable energy portfolio, advances our nationally recognized energy efficiency programs, provides the ability to switch fuel sources on some existing coal power plants, and retire others. As a result, this plan is the right option for our customers and the state of Iowa. The plan is about providing practical energy solutions that will enhance our environment and grow our economy for future generations of Iowans."

About Alliant Energy Alliant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and more than 400, 000 natural gas customers. Providing its customers in the Midwest with regulated electric and natural gas service is the company's primary focus. Interstate Power and Light, the company's Iowa utility subsidiary, serves 526,000 electric and 232, 000 natural gas customers. Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the company's Web site at www....allianteaergy.com. ANR047-08 -

2/8/2008 Page 3 of3

Alan J. Arnold Environmental Lead- IPL Baseload Project Alliant Energy Corporate Services P.O. Box 351 200 First Street S.E., GO-13th Floor Cedar Rapids, IA 52406 (52401) Phone: 319.786.4476 Fax: 319.786.4747 iIi Please consider the environment before printing my e-mail

Please note that the information and attachments in this email are intended for the exclusive use of the addressee and may contain confidential or privileged information. If you are not the intended recipient, please do not forward, copy or print the message or its attachments. Notify me at the above address, and delete this message and any attachments. Thank you.

2/8/2008 !3ALLIANT II! , ENERGY. Interstate Power and Light

Interstate Power and Light Company An Alliant Energy Company

200 First Street SE P.O. Box 351 Cedar Rapids. IA 52406-0351 www.alliantenergy.com

News Release FOR IMMEDIATE RELEASE Media Contact: Ryan Stensland (319) 786-4171 Investor Relations: Jamie Freeman (608) 458-3274

Interstate Power and Light Company to permanently reduce greenhouse gas emissions

Company to retire older coal-fired power plants and switch Dubuque Generating Station fuel . source to natural gas in 2013

CEDAR RAPIDS, Iowa - February 8, 2008 - Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), proposed today to permanently reduce its generating fleet's greenhouse gas emissions by retiring coal-fired generating units and switching the fuel source of other coal-fired units to natural gas when its proposed Sutherland Generating Station Unit 4 becomes operable in 2013.

The proposed changes to IPL's generating fleet will be filed with the Iowa Utilities Board (IUB) as part of IPL's application for ratemaking principles for the proposed Sutherland Generating Station Unit 4 and are subject to the approval of the IUB and the Minnesota Public Utility Commission. IPL expects to make the filing late first quarter of 2008.

IPL expects that the generating station retirements and fuel switch at the Dubuque power facility will have no impact upon current employees.

"We, alone, have an obligation to serve our customers and this plan fulfills that obligation by providing our customers with safe, reliable and environmentally responsible energy," states Tom Aller, president of IPL. "Our proposal improves Iowa's air quality and environment while providing a reliable energy supply to support the growth of Iowa's economy. We are preparing Iowa for a bright energy future by confronting the challenges of greenhouse gas emissions and ensuring a reliable energy supply today."

As part of its greenhouse gas emissions reduction proposal, IPL will retire Lansing Generating Station's coal-fired units 2 and 3. In addition, the company will permanently switch the fuel source of its Dubuque Generating Station Units from coal to natural gas. This will reduce these units' maximum potential to emit CO2 by more than 800,000 tons per year. These potential changes in IPL's generating fleet are contingent upon the company receiving all applicable regulatory approvals related to Sutherland Generating Station Unit 4's site certification and ratemaking principles applications.

IPL estimates that its energy efficiency programs, which include the new five-year plan the company expects to file with the IUB later this year, will reduce customers' electric usage by nearly 2 million

(more) IRIbtacpyr8)i2OOtlly reduce greenhouse gas emissions Page 2 012

megawatt-hours by 2013. As a result, IPL's system-wide CO2 emissions are expected to be reduced by approximately 2.57 million tons per year compared to what those emission levels would be absent the company's energy efficiency programs.

IPL recently received approval to build 200 MW of wind generation in Iowa by 2013 that will also serve to reduce the Company's system-wide C02 emission levels by approximately 934,000 tons per year in 2013 from what those emissions levels would be absent this investment.

In addition, Sutherland Generating Station Unit 4 is being permitted to utilize up to five percent renewables, such as switch grass or corn stalks, as fuel and, as such, can be considered a hybrid facility. The facility's CO2 emissions levels do not increase from the use of renewables as a fuel source. As a

result, CO2 emissions from Sutherland Generating Station Unit 4 are reduced by an additional 156,000 tons per year when the fuel source is economically available for use at the facility.

IPL's 350 megawatt ownership share of Sutherland Generating Station Unit 4 has the maximum potential to emit approximately 3.1 million tons of CO2 annually under its air permit application. IPL's proposal to retire or fuel switch less efficient coal-fired generating stations, aggressively pursue energy efficiency and invest in renewables is expected to more than offset Sutherland Generating Station Unit 4's expected

CO2 emissions in 2013 when the facility is operational.

"Since our initial announcement in January 2007, our proposal has focused on doing what is right for our customers and Iowa," adds Mr. Aller. The cost of 'saying no', as some have advocated, to securing a reliable energy supply that is environmentally responsible for our customers and Iowa is not an option."

"Our proposal adds a highly efficient generating station that uses renewables as a fuel source, expands our renewable energy portfolio, advances our nationally recognized energy efficiency programs, provides the ability to switch fuel sources on some existing coal power plants, and retire others. As a result, this plan is the right option for our customers and the state of Iowa. The plan is about providing practical energy solutions that will enhance our environment and grow our economy for future generations of Iowans."

About Affmnt Energy AlHant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and more than 400,000 natural gas customers. Providing its customers in the Midwest with regulated electric and natural gas service is the company's primary focus. Interstate Power and Light, the company's Iowa utility subsidiary, serves 526,000 electric and 232,000 natural gas customers. Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the company's Web site at www.alliantenemy.com. ANR047-08 - Support proposal for new Alliant Energy plant I Times Republican Page I of I iimttS-ttltpnbUClCln------"------

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Support proposal for new Alliant Energy plant T.R. "TQmmy" ThQmpsQn, MarshalltQwn

IpOSTED: January 27,2008

I am writing in SUPPQrt of the new cQal fired pQwer plant Interstate PQwer and the Alliant Energy CQmpany has chQsen tQ build in MarshalltQwn.

As a retired maYQr Qf MarshalltQwn and retired vice president and general manager Qf LennQx Industries, I have full and cQmplete cQnfidence in Qur leadership at the IQcal and state levels tQ prQmQte clean cQal technQIQgy while keeping energy CQsts IQw, as the new plant has prQpQsed.

CQal is abundant in the United States and is knQwn as a IQng term sQlutiQn fQr generating pQwer - getting us away frQm such Qther CQstly and Qften fQreign alternatives as Qil and natural gas.

The plant WQuid be a state-Qf-the-art facility - with the capability Qf using renewable fuels such as swltchgrass Qr cQrnstQck/feedstQck.

This facility WQuid be a 650-megawatt base IQad plant and prQvide custQmers in 94 cQunties with all Qf their electrical needs. Several electrical cQQperatives and smaller energy prQviders WQuid alsQ be served.

"i, The carbQn diQxide emissiQns in the new plant WQuid be substantially less than the current NatiQnal I Standard and greatly imprQved Qver current cQal fired plants. TQday's technQIQgy makes cQal cleaner and that's the key when prQtecting the envirQnment.

The cQming years will prQve tQ be eCQnQmlcally challenging fQr many IQwa families. And while cQal keeps energy CQsts IQw, this may help SQme Qf these families frQm being eCQnQmically crunched.

The grQwing energy needs Qf the state Qf IQwa will nQt be simply met by just imprQving cQnservatiQn Qn prQducts using electricity Qr adding wind pQwer. These are baby steps and the big step In mQving fQrward with the new hybrid pQwer plant.

The new pQwer plant in MarshalltQwn prQmises tQ be a very efficient hybrid pQwer plant that will nQt Qnly meet the grQwing energy needs Qf IQwa, but will alsQ prQvide fQr the future as we IQQkat eCQnQmic grQwth.

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Power plant hearings were well-run event Bill Helgen, Marshalltown

IpOSTED: January 27, 2008

Chairman John Norris ran a good meeting, we started on time and quit on time. In between he stopped the meeting to give the court reporter a break.

The Times-Republican had reported that a national environmental group (read the Sierra Club) was planning to bring in busloads of people to "pack the house." It didn't happen and was never planned. Alliant did an amazing job of packing the house though. Their supporters were there from all over the state. I wonder how much energy they could have saved by hiring a few busses?

There were two microphones, one for each group, and a timer to keep the testimony to two minutes. Even the politicians stayed within the guidelines. Too bad we didn't have that system in place before the caucus.

It seemed as if all of the supporters were either a politician, a CEO or president of a company, or a union member.

After the meeting a friend remarked that she had never seen so many dark suits in one place except at funerals.

Approximately 10 percent of the supporters that spoke for were women, about 7S percent of those opposed were women. Two education administrators were for. Four teachers were against. One hospital administration spokesperson was for. Two physicians were against.

If the project had been a rain forest on the east side of town, most of the supporters could have given their same pitch.

Those opposed to the project spoke from their hearts, those in favor spoke from their wallets.

One thing puzzles me; this was the second time that I have heard Mayor Beach refer to those opposed as "the environmentalists." I'll wear that label proudly but does that make those in favor of the plant "the anti-envi ronmentalists?"

A few of the supporters justified the new plant as a guarantee of power on demand. A few days before the hearing a squirrel managed to short out a fuse on a transformer behind our house. That caused the neighborhood to go dark. The Alliant crew responded quickly and restored power. My question is, "would a new plant be squirrel proof?"

The meeting really boiled down to a clash between those who had something to gain financially and those who felt that they had something to lose environmentally. Everyone was polite and respectful of the group and the process.

http://www.timesrepublican.com/page/content.detail/id/502073.html?showla Yout=O 2/5/2008 ..Ii Power plant hearings were well-run event I Times Republican Page 2 of2

http://www.timesrepublican.com/page/content.detail/id/502073.html?show Iayout=O 2/5/2008 Alliant, opponents taking next steps before March decision on power plant I Times Repub... Page I of I

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Alliant, opponents taking next steps before March decision on power plant By RYAN BRINKS, TIMES-REPUBLICAN

IpOSTED: January 25, 2008

Though the pinnacle Qf attentiQn Qn Alliant Energy's plans for a new pQwer plant in MarshalltQwn - the five-day IQwa Utilities BQard hearing - is now a week Qld, the utility company and QppQnents Qf the project are nQt idle.

The parties involved in the state regulatQry case are fQllowing up Qn the crQss-examinatiQn process, with initial briefs due by Feb. 11 and reply briefs due by Feb. 25.

After that, it may nQt take the IUB much IQnger tQ settle Qn an QutcQme - it is anticipating a March decisiQn, accQrding tQ a recent update Qn the agency's Web site.

That decision tQ grant or deny a generating certificate will be based Qn cQnsiderations Qf whether the prQposed pQwer plant is cQnsistent with IQwa CQde policies that encourage develQpment Qf electric generating facilities, cQnsistent with eCQnQmicdevelQpment and will nQt be detrimental to prQviding reliable electric service; whether Alliant is willing tQ abide by the terms Qf the certificate and law; and whether the plant is cQnsistent with reasQnable land use and envirQnmental pQlicies, cQnsidering the eCQnQmlcsand Qther aspects Qf the available alternatives.

Alliant's project is alsQ contingent Qn applicable Iowa Department Qf Natural Resources envirQnmental permits.

In the prQcess since last July, when Alliant officially filed an applicatiQn tQ build the plant, a public infQrmation meeting was held May 21, 2007, public nQtices were published and written nQtices Qf the prQpQsalwere served tQ the IDNR's Air Quality Bureau and EnvlrQnmental Protection DivisiQn, the Office Qf HistQrical Preservation, the Office of State ArchaeQIQgist, the CQmmunity Action Agencies Division of the Department Qf Human Rights, the IQwa Department Qf TransportatiQn, the U.S. Army CQrps Qf Engineers, the U.S. Fish & Wildlife Service, the Federal AviatiQn AdministratiQn, the Marshall County Board of Supervisors, the MarshalltQwn City Council and all prQperty Qwners IQcated within 1,000 feet Qf the propQsed site on the eastern edge Qf MarshalltQwn next tQ the existing Sutherland Generating Station.

CQntact Ryan Brinks at 641-753-6611 Qr [email protected]

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January 25, 2008 Doctors support new power plant

By PERRY BEEMAN REGISTER STAFF WRITER

A Marshalltown clinic's director and 10 of its doctors support the construction of a coal-fired power plant that critics say will threaten the health of Marshalltown residents.

John Hughes, executive director of McFarland Clinic's branch in Marshalltown, and 10 doctors from the clinic wrote to the Iowa Utilities Board to support Alliant Energy's proposed 630-megawatt coal plant at Sutherland Generating Station.

"I am writing to reiterate the support of McFarland Clinic for plans to build a new power plant in Marshalltown," wrote Hughes. He added that he is impressed by Alliant's leaders. "They are good partners for our community, and the fact that the plant will be built with a pragmatic and environmentally friendly approach is important. This plant serves to meet our growing electricity needs in a manner that makes good sense."

The 10 doctors who signed a separate letter of support - including family practitioners, a pediatrician, a surgeon and a urologist - wrote in a letter to the Iowa Utilities Board that Alliant plans to use the best available technology to reduce emissions as much as possible. At the same time, Iowa needs more base-load power to handle grow1h. At this point, the doctors wrote, that means burning coal.

The physicians' comments mirrored Alliant's central arguments before the utilities board.

"We feel that Alliant Energy has done all that it can using modern technology to minimize any potential health impact from this plant," the doctors wrote. Likewise, the proposal is to construct it in such a way that new technologies may be added as they become available."

The letter also stated: "Construction of this plant in Marshalltown makes the most sense for the company as well as ultimately for our community and our state."

The letter was signed by doctors Joseph Poll peter, Lynne DeSotel, David Thomas, Gary Peasley, James Demmel, Michael Miriovsky, Charles Keller, Maria Olberding, Wendy Thiessen and Stephen Van Buren.

Doctors and others testifying against the plant told the utilities board during a hearing on Jan. 14 that plant emissions threaten people's health, shorten life spans and worsen global warming.

Dr. James Metzger, who also is listed online as a McFarland physician in Marshalltown, testified: "I find it ironic that the same group of people that is lobbying residents to pick up their yards so the community will look good also is supporting a coal plant that will pollute the area."

Reporter Perry Beeman can be reached at (515) 284-8538 or [email protected]

http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=120080 125INEWS/80 12503... 1/2512008 Grundy Center signs on to joint ownership of power plant I Times Republican Page I of I

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Grundy Center signs on to joint ownership of power plant By RYAN BRINKS, TIMES-REPUBLICAN

!POSTED: January 24, 2008

With a public hearing and vote this week, Grundy Center Municipal Utilities cemented its ownership share in Alliant Energy's proposed new Marshalltown power plant and passed a unanimous resolution of support for the project.

North Iowa Municipal Electric Cooperative Association, of which GCMU is a member, announced the development Tuesday, making GCMU seventh among the cooperative's 12 municipal utilities to approve involvement in the project.

"Grundy Center Municipal Utilities is proud to partner with [Alliant's Iowa subsidiary Interstate Power & Light] to ensure that our customers will have access to a safe and reliable energy supply," said Bob Ayers, GCMU general manager. "Growing demand in our community requires our utility to secure energy resources. If we expect our community to continue to grow, it will be necessary to secure long-term energy resources that have a minimal impact upon our environment while providing an energy supply that can facilitate economic growth in Grundy Center and the surrounding area."

NIMECA members are expected to utilize an output of 20 megawatts, or approximately 3 percent of the plant's total electricity production.

"IPL, rural electric cooperatives and municipals across Iowa are partnering in this project to ensure that safe and reliable energy will be available to fuel Iowa's economy for future generations," said IPL President Tom Aller. "Sutherland Generating Station Unit 4's hybrid technology, use of renewables and high operating efficiency that significantly reduces emissions per megawatt of energy produced is balancing the increasing need for energy while protecting our environment."

The new coal-fired plant complements NIMECA's diverse energy portfolio of existing wind and hydroelectric generation, according to James Milam, executive vice president of NIMECA.

The other municipalities in NIMECA include Alta, Bancroft, Coon Rapids, Graettinger, Laurens, Milford, New Hampton, Spencer, Sumner, Webster City and West Bend.

Contact Ryan Brinks at 641-753-6611 or rbrinks@tim!:s:p.uJmmL<;Qm

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Community backs power plant in online poll By RYANBRINKS, TIMES-REPUBLICAN

IpOSTED: January 23, 2008

Almost two-thirds of Times-Republican online readers support Alliant Energy in its effort to build a new power plant in Marshalltown, according to a recent poll. .

The unscientific poll at www.tim~Jlli=J:QI]} found that 64 percent of respondents believe the proposed coal-fired power plant is the best option to meet future electricity needs. Thirty-six percent of voters said it was not the best option.

Online readers were first posed the question as Alliant Energy staff and project opponents were gearing up for the five-day Iowa Utilities Board hearings last week.

Time for public opinions in support and against the project was allowed during the first two hours of the opening day of hearings, but now it is up to the three-member board to weigh evidence on both sides and come to a conclusion. A decision is not Iikeiy to be made for a few months. Ii I' i Contact Ryan Brinks at 641-753-6611 or rbrinkji.@Jim_esrePJlbl1c.i;l.n..CQI]} i

II

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January 23, 2008

Wake up and smell the coal-burning emissions

So amazing. Here we live in a state that is putting up wind turbines right and left, supporting alternative-energy ventures with the giant Iowa Power Fund and successfully luring into the state several wind-turbine manufacturers.

On the other hand, we have these backward-looking utility companies that keep wanting to pour millions into old-tech coal plants. Wedded to the tried-and-true, they are making sure we'll be wedded to lung diseases, too. Seems they are blinded by the bottom line here.

This could be an opportunity for Alliant Energy to invest a substantial amount of money into more wind energy as a direct alternative to building more coal-fired plants. It would be helping clean up the air for future generations, helping new manufacturers get more business"thus employing more . Iowans, and helping the state achieve energy independence.

Even if the power produced by an equivalent wind-turbine setup would be less than an equally financed coal facility, it would still be getting a bargain. No coal to buy, no air polluted. Thus no pollution credits to buy, or future prohibitions on emissions. Better company image. It seems to be a win-win.

But no, instead the coal industry is digging in for a long fight, wedded to outdated energy technology. Wake up, Alliant, and listen to the wind. It sings of a dark and dismal future for your coal fallacy.

- Mike Wilson,

Des Moines.

Regarding Joe Lucas' Jan. 12 guest opinion piece on clean coal, "Coal Is Cleaner Than Ever, And Iowa's Economy Needs It": He waxes eloquent about all of the benefits, if not the outright virtues, that coal-based technology can provide Iowans.

In the interest of full disclosure, it is important to note that Lucas' organization, Americans for Balanced Energy Choices (ABEC), is a public-relations front organization that promotes the interests of coal-mining firms, coal-transportation corporations and electricity producers.

ABEC's Web site is registered to the Center for Energy and Economic Development, a coal-industry trade organization, according to SourceWatch, a public-interest watch group sponsored by the Center for Media and Democracy, a nonprofit news-media research group.

When publishing Lucas' piece, you should have made clear ABEC's association with the coal industry. Americans for Balanced Energy Choices is not chartered to argue a balanced view of America's energy policy; it is a corporate-propaganda machine with a single, very clearly defined objective - to sell coal.

- Jon C. Hunstock,

Ames.

http://www .desmoinesregister.comiappslpbcs.dlliarticle? AID=12008012310PINI ON04180 1... 112412008 www.desrnoinesregister.comIPrinter-friendly article page Page 2 of2

Alliant keeps promising how much "cleaner" its new coal plant will be. There is no clean way to burn coal, and coal plants have a life span averaging 50 years. It's also very important to note that the current Sutherland plant operating in the same vicinity has been spewing out pollutants for nearly 25 years and still feasibly has another 25 to go.

The Environmental Protection Agency reported that in 2005 alone, the current coal plant put out 496 pounds of lead and 49 pounds of mercury in emissions - both highly toxic materials - not to mention horrendous amounts of carbon dioxide. I've heard no offer from Alliant that its old plant will be immediately shut down upon completion of the proposed new one, which means we'll have even more toxins emitted, on top of those from the old plant.

Marshalltown businesses, the Chamber of Commerce and developers are strongly in support of the plant. Alliant's own press release stated, "The community of Marshalttown is expected to receive annual tax payments of as much as $1.7 million from this new plant."

Money truly talks.

- Mary McBee,

Tama.

http://www.desrnoinesregister .com/apps/pbcs.dll/article? AID=/Z0080 123/0 PIN ION04/80 1... 1124/2008 Sam Osborne wrote: •In addition to wind turbines geographically dispersed across the continent on an advanced power grid, other dispersed generating systems, such as surf, solar, thermal, methane from waste, hydroelectric, and other means that have as yet not even been envisioned, can provide our nation with a ready power supply that in terms of cost and availability is unmatched in history. We simply need to apply the American can-do-spirit of America. ------"Creativeness often consists of merely turning up what is already there. Did you know that the right and left shoe were thought up only a little more than a century ago?" - Bernice Fitz-Gibbon 1/23120084:52:46 PM Recommend Report Abuse

SamOsborne wrote: •Another great advantage of electricity generated by wind and hydrogen is that the generating energy is transported to the wind turbine without cost, there is no waste to be hauled away and disposed of ('tis an ill wind that blows not good), and the hydrogen can be electrically generated, stored and utilized in electricity production at the turbine site. In addition, unlike oil, wind neither needs to be fought for in the Middle East (no tilting with windmills) nor then hauled a vast distance and refined. In addition, it is possible to build a large enough dispersed electrical capacity that homes can be electrically heated---bouncing electrons back and forth at 60 cycles is less costly than the pipeline pumping of liquid fuel and gas. 1123/20084:25:56 PM Recommend Report Abuse

,~ '-,'~ D.·····':·'··.·.· keyto wrote: algibson, ask your grandparents if they remember how dirty, even black, the buildings and snow got during the winter months when people burned coal to heat their homes and businesses. In addition to the lead and mercury emissions, carbon monoxide pollution results from burning coal. Acid rain is almost exclusively the result of burning coal. 1123120084:20:38 PM Recommend Report Abuse

Dtoosmartforthis wrote: Go ahead Louise. And in 5 or 10 years, the cycle will switch back to the frigging ice age. Always does. You change your light bulbs and feel better that your changing the world. 1123120083:43:40 PM Recommend ReDO" Abus e DLouise wrote: h!J1i*:~~&R*.st for the dumbest global-warming-denial comment on the REG website. There's 1123/2008 12:44:08 PM Recommend Report Abuse

Sam Osborne wrote: •Spain has low electrical rates and it also produces and stores energy in many ways: solar, serfe, thermal, and hydro electric. To maintain constant wind power, the turbines only need be dispersed geographically about the grid. In addition to this, hydrogen generation and storage capacity is being developed. Thus during times when the turbine net produces much more electricity than can be use, it can be easily, cheaply and cleanly turned into hydrogen for use in electrical turbines and fuel cells. All that is needed to generate hydrogen is water and electricity. The byproduct of hydrogen's consumption is water and electrical power. Those that walk into the future looking through a rearview mirror keep bumping into what they think is impossible. 1123/200811:31 :55 AM Recommend (3) Report Abuse

adelguy wrote: •Good luck running your computer and posting notes to this site when the wind stops blowing. 1/23/200811:17:39 AM Recommend Report Abuse

algibson wrote: •Go ahead and rely on the wind for all our your energy needs. Also watch your electric bill go up 500%. My grandparents remember when most homes were heated by coal. They don't remember any global warming occurring back then. 1/23/20087:43:06 AM Recommend Report Abuse SamOsborne wrote: •Wind power generation has surpassed all other electricity sources in Spain. This great nation of ours should outdo them by building a new and improved national electrical grid that more dependably and efficiently collects and distributes power, and also accommodates ingenious ways that individuals can profit by dumping electrical power onto the grid. The current grid is a jury-rigged mess. A new grid should be a national priority that matches the WW II war effort to make American the Arsenal of Democracy, and should be completed in 3 years. It would give an immediate boost to our economy by proving construction business opportunities that produced good jobs. Also, it is very affordable--- w;~n~8~~r~i~~I~.cH9£ lY.?'~'1~~~~~U~~!r.~~~19f.~~?!~~~~~~t~0~~lm~!~~~~rr~~~~!1£Omiles Recommend (2) Report Abuse

oshocktheallahs wrote: To the far left environazi lunatic fringe, there is no ACCEPTABLE means of producing energy, but only in the USA. They are against coal, hydroelectric, nuclear, and even Ted Kennedy voted against Wind Power. Why don't these nuts protest in countries that really pollute like Russia, China and India if they are so concemed about the environment? It's because they are hypocrites. 1123120086:55:30 AM Recommend (1) Report Abuse

DRentAMob wrote: 'Why don't you folks all get together form a co-op and build a wind powered or solar powered electrical plant? Sounds like a no brainer to me." You think they have the money to do that? No way. They just want to tell other people what to do with their money. 1123120085:45:23 AM Recommend Report Abuse

DAbatha wrote: Why don't you folks all get together form a co-op and build a wind powered or solar powered electrical plant? Sounds like a no brainer to me. 1/23120085:31:16 AM Recommend Report Abuse Grassley tours Fisher for input I Times Republican Page 1 of2 'iimte·&p~U('GU\ Centr.tllowa's Daily Newspaper e ., II .= m z 'XXZ_

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Grassley tours Fisher for input By RYAN BRINKS, TIMES-REPUBLICAN

IpOSTED: January 20, 2008

Sen. , R-Iowa, got an inside look at the progress being made on Fisher's new research and Article Photos development lab in downtown Marshalltown Wednesday as part of his annual effort to tour the state and gather input before the federal government resumes its session this year.·

"It's a massive thing," he said of the lab, noting too that the sound of testing resembles the sound a 747 airplane makes upon landing. "It's a wonderful investment in Marshalltown that indicates Fisher and Emerson Process Management have long-term plans to stay in Marshalltown, and that's good news."

Questions from Fisher employees in attendance touched on a number of current issues, starting with the election.

Though he thought abstaining from endorsing a candidate was uncharacteristic of him, Grassley said he leans toward the social conservatives and a strong national command, mentioning both John McCain and Mike Huckabee in the same line of thought. Sen. Chuck Grassley, R-Iowa, speaks to topics of interest to "I think this will be one time when maybe the process itself Fisher employees during a visit will have the cream float to the top," he said. that included a tour of the company's new research and He also touched on the problems surrounding Medicare, development lab Wednesday. particularly that the federal budget in a few decades will be significantly loaded down by required Medicare spending. His next step was a presidential debate on solutions and a mandate to spur action.

On the farm bill, Grassley said reliable food availability is critical to national security and cohesion and advocated a cap on grants being provided to farmers.

"We could get a lot more farmers benefitting from [the farm bill] than just a few big ones," he said. "The family farmer is a much more efficient producer of food."

Concerning Alliant Energy's proposed new power plant in Marshalltown, Grassley referred to the national energy situation by saying the country needs more power to expand its economy.

"Expensive energy is better than no energy," he said. "When I go to switch on the lights, I expect power, and when I go to the pump, I expect there be gas to put in my car."

Iowa is where it is with wind production thanks to 1992 tax incentives, he said, and that industry should be market driven with non-permanent incentives.

http://www.timesrepublican.com/page/content.detail/id/501800.html?show layo ut=O 2/5/2008 Grassley tours Fisher for input I Times Republican Page 2 of2

In addition, conservation is always a component, but petroleum production should also be sought.

"We ought to get every drop of oil we can get and do it in an environmentally friendly way," Grassley said.

Carbon dioxide regulation, like a cap and trade system, however, is not likely to be passed this year, he said.

"It's kind of a case of should we be doing this before we get new Kyoto-type treaty, and that doesn't end until 2012," he said.

The issue is not with controversy.

"If we worry about manufacturing going to China and we're stricter than China on emissions, then all manufacturing will go to China," he said. "Cap and trade involves government choosing winners and losers. "

Contact Ryan Brinks at 641-753-6611 or [b[i[[email protected],.colD

http://www.timesrepublican.com/page/ content.detai I/idl 501 800. html ?show Iayo ut=O 2/5/2008 Carbon dioxide, efficiency issues heard from AlIiant's point of view ITimes Republican Page 1 of 1 ------_._-- ii\uts-OO!IC'pUJbliCQl\ \ Cmtnd lo...a's DaiI)'N....spaper

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"--bac~_to*story_ Carbon dioxide, efficiency issues heard from Alliant's point of view By RYAN BRINKS, TIMES-REPUBUCAN

IPOSTED: January 19, 2008

Possible future carbon dioxide regulations and energy efficiency potential continued to be discussed, but from Alliant Energy's perspective, Friday morning at the Iowa Utilities Board hearing on the proposed Marshalltown power plant.

Alliant Manager of Environmental Services Eric Guelker answered questions on the basis for his carbon dioxide regulation price projections by saying legislation proposals vary widely and the response of utilities to any carbon dioxide emissions limits would also affect the prices.

"Amant Energy policy is that sufficient scientific evidence exists to support greenhouse gas reductions," he said.

He also noted that company policy also affirms economic T-R PHOTO BY RYAN BRINKS development and sustainable development are possible while Iowa Utilities Board members, from left, also reducing greenhouse gas emissions. Krista Tanner, John Norris and Darrell Hanson observe the cross-examination of As to total amounts of carbon emissions, the level from Alliant Energy witness Robert Holmes on AlIiant's production facilities would increase but the the company's energy efficiency company's total carbon footprint would decrease because it performance. would reduce use of less clean production purchased from outside providers.

Robert Holmes, senior regulatory planning consultant, addressed energy efficiency performance by saying the company is doing everything that makes sense. In responding to testimony on Vermont's efforts, Holmes said that state's savings are not dramatic compared to Iowa's and the environment is different - particularly that energy prices are nearly double there and so efficiencies are more attractive to customers.

Left to be cross-examined were Alliant witnesses Joseph Hillberry, senior forecast analyst, on the topic of electric load forecasts, and Vice President and Treasurer Patricia Kampling, on financing plans for the proposed plant.

Completlon of all witness cross-examination concludes the hearing at the Iowa Veterans Home Whitehill Auditorium and leaves the analysis of all information and a final decision in the case to the three-member IUB.

One or two rounds of follow-up briefs from the parties involved will be accepted by the board in the coming weeks. When the IUB makes its decision, it wltl first issue an oral verdict at a meeting in Des Moines and then Issue a written order. That decision, however, may be months away.

Contact Ryan Brinks at 641-753-6611 or ~brlnks@tlmeS[ep!Jblican.com

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htto:llwww.timesrepublican.comlpage/content.detaiVid/50 I760.html?nav=5005&showlayout=0 1119/2008 Thursday sees acceleration in hearing for power plant I Times Republican Page I of2 ;~;aq"ii,a\ Centmllm\'a'sD-dily Newspaper • :: _ s. zca = # Today's News

> News > Today's News

=Qa_c~Jo_stor:y Thursday sees acceleration in hearing for power plant By RYAN BRINKS, TIMES-REPUBllCAN

IpOSTED: January 18,2008

The proceedings at the Iowa Utilities Board hearing on the proposed Marshalltown power plant accelerated Thursday as Article Photos cross-examinations were completed on all but four of the 26 witnesses participating in the case.

The day opened with the final Office of Consumer Advocate witness, consultant Scudder Parker, speaking to energy efficiency potential.

Rather than offering new or expanded programs, he said, a commitment to attaining all potential energy efficiency savings is the single most important attribute to achieving results, and those results come in direct proportion to spending toward energy efficiency.

"What customers care about is seeing savings," he said. T-R PHOTO BY RYAN BRINKS Members of the public filled in the seats While he acknowledged Iowa's successes, putting the state behind participants of the Iowa Utilities at 12th or 13th in energy efficiency performance nationwide, Board hearing to observe cross- Parker also said Alliant Energy could go farther - to the examination of the opposition's final few point of delaying or possibly avoiding a new coal-fired power witnesses Thursday, the event's fourth plant. His basis was on savings being achieved in Vermont. day at the Iowa Veterans Home Whitehill Auditorium. In addition to the Consumer Advocate, a coalition of Community Energy Solutions, the Iowa Environmental Council, Iowa Farmer's Union, Iowa Physicians for Social Responsibility and the Iowa Renewable Energy Association also provided witnesses who testified against Alliant's basis for needing the new plant and on concerns about the plant's impact on global warming and health.

After Dr. James Hansen addressed global warming, Dr. Kristen Welker-Hood notified the board that on Wednesday the Black Hawk County Board of Health voted to tighten standards on particulate matter and recommended a moratorium on new coal-fired power plants in Iowa.

An Iowa economist and New York finance and policy advisor also argued against Alliant projections of the degree that the biofuel industry and state economy will grow demand for electricity.

U.S. Census data paints a pessimistic picture of Iowa's population growth, said advisor Thomas Sanziilo, and rising coal prices will further diminish its cost-effectiveness. Self-employed Ames economist Dr. Neil Harl testified that beyond the next three to five years, the future of corn-based ethanol is very cloudy and not likely to be the dominant alternative fuel force.

Consumers are more enthusiastic about ethanol's role in energy independence than its cost-effectiveness, he said. http://www .timesrepublican.com/page/content.detail/id/50 I726.html?nav=5005&showlayo. .. 1/1812008 Thursday sees acceleration in hearing for power plant I Times Republican Page 2 of2

Attention returned to Alliant's team of witnesses Thursday afternoon, with much of the spotlight again on Corporate Asset Management Consultant Brent Kitchen.

After a line of questions about demand projections, displacement of older coal plants, the method of modeling future plans and possible scenarios other than a new coal-fired plant, Kitchen dismissed coal price increases as a minute factor and argued that potential carbon costs were accounted for.

Any such costs would likely be phased in over a manageable time period, he noted. On the other hand, "If we were left with just old plants and had to put on carbon controls, that would be a significant risk for our customers," he said.

Lastly for Alliant, Robert Vosberg, manager of technical sales support, and Richard Friedman, term bulk power marketer, expanded on the problems with relying on wind to meet anticipated increases in power demand.

Friedman said he had serious doubts that 1,000 megawatts of wind production could be added by 2022 because of transfer limitations in the transmission infrastructure and that wind typically puts electricity on the grid at night and at non-peak times of the day.

As for public support of global warming solutions, he said it would drop off quickly if it meant paying 10 times more for electricity.

Friedman was scrutinized about reliance on studies funded by companies that Consumer Advocate lawyers called biased toward the fossil fuel industry.

Contact Ryan Brinks at 641-753-6611 or [email protected]:>m

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View Comments: Post a comment tallcornboy

01-18-08 8:03 AM Wow. Dr. James Hansen, one of the top climate scientists in the world, who »Report Abuse has testified to the US Congress on this matter, comes to town and gets less than a sentence? Harl is described as "self-employed" instead of an ISU emeritus faculty of Agriculture and Economics? But thank you for finally reporting at least some of what Alliants experts were asked. Opponents of coal plant testify before utilities board I Times Republican Page 1 of2 :~;RqJu6[i.\ Cent....llowa's D-diI)' Newspaper :::s # _::x:s __ m Today's News

> News > Today's News

~QackJ05ton' Opponents of coal plant testify before utilities board By RYANBRINKS, TIMES-REPUBUCAN

IPOSTEa: January 17, 2008 Leaving six Alliant Energy witnesses for later cross- examination, the Iowa Utilities Board Wednesday moved on to the lineup of Consumer Advocate witnesses, all opposed to the proposed building a new coal-fired power plant in Marshalltown.

Michael Drunsic, a research associate for the firm Synapse Energy Economics, had argued in documents presented before this week's hearing in the Iowa Veterans Home's Whitehall Auditorium that the way Alliant modeled how much wind energy could be generated in the future was too restrictive and thus limited the real possibilities wind could have.

In cross-examination, the questioning from Alliant's lawyer scrutinized Drunsic's experience using such modeling T-R PHOTO BY RYAN BRINKS methods. Iowa Utilities Board members, at the table from left, Darrell Hanson, John Witness Robert Fagan, a Synapse senior associate, was later Norris and Krista Tanner listen questioned similarly about whether his involvement in power Wednesday as Office of Consumer plant-related cases across the United States and Canada had Advocate witness David Fagan testifies much in common with wind power generation, which he had about wind energy potential that he said argued in pre-filed testimony held the potential, along with could delay or replace the need for a energy efficiency, to satisfy the energy needs upon which coal-fired power plant. the case for a new coal plant has been built.

He added that a new goal announced by Gov. Chet Culver this week of attaining 25 percent of power needs in the state through renewable sources further pointed toward investment in wind rather than coal.

Fagan also said he considered wind to be capable of a baseload-type energy contribution to an overall portfolio, and that natural gas was the next-most cost-effective fuel.

Discussions changed to the topic of carbon dioxide emissions and global climate change with the cross- examination of witness Dr. Ezra Hausman, another senior associate with Synapse.

Hausman argued that even if the proposed plant generates fewer emissions than older plants, Alliant is still heading in the wrong direction of curbing greenhouse gases. He also did not consider the notion of retrofitting carbon capture technology in the future to be a realistic possibility for the new plant.

It would be a different scenario if carbon capture and storage technology was written into the current plans for the plant, he said.

"I look forward to the day permanent capture and storage is a reality," he said. http://www. timesrepublican.comlpage/content.detaillid/50 I694.html ?nav=5005&showlayo... III 7/2008 Opponents of coal plant testify before utilities board I Times Republican Page 2 of2

Board members questioned Hausman on the new plant's impact if older plants were displaced as a result of it and whether he would still oppose the plant if it met carbon regulation and remained cost-effective.

He said displacement would represent a step in the right direction but he would not regard any regulation that continued to allow vast amounts of carbon dioxide emissions as sufficient regulation.

"The day this board and others draw the line [on emissions limits] is the day that technology will start developing:' he said.

Hausman anticipates passage of carbon regulation by the federal government to be very likely in the next couple years.

Bill Powers, a consultant with Powers Engineering, added to preViously filed testimony about the advantages of newer coal technologies with the assertion that ultra-supercritical pulverized coal boiler technology, as opposed to the plant's proposed supercritical pulverized coal equipment, would provide a significant 6 percent boost in efficiency, though he admitted no such plant currently exists in the Midwest.

He also argued that the form of Integrated Gasification Combined Cycle coal technology best suited for the proposed situation was ignored by Alliant's staff in analyzing their options.

Synapse Senior Consultant David Schlissel was put on the'stand late Wednesday afternoon. As the chief witness for the Office of Consumer Advocate, his pre-filed testimony centered on Alliant's consideration of risks associated with the proposed plant and the modeling used to create their resource plan.

The only other Consumer Advocate Witness, besides Dr. Xiaochuan "Larry" Shi, who briefly attested during the day to computer model results, is Scudder Parker. His focus has been on energy efficiency measures that could delay or avoid construction of the coal plant.

More witnesses opposed to the proposed plant are anticipated to testify before the IUB Thursday, including Dr. James Hansen, a NASA climate scientist who has been billed as a staunch proponent of the threat of global warming.

Contact Ryan Brinks at 641-753-6611 or r.brinks,@Jimesrep,ublicaB.ccpm

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Roling, Chris [DNR]

From: Roling,Chris [DNR) Sent: Wednesday,January 16, 20089:45 AM To: Nissen, Lisa [DNR) Cc: Phelps, Dave [DNR); Fitzsimmons,Catharine [DNR) Subject: Mediacontact Attachments: Argus Coal Daily- 1.16.0B.doc

Lisa,

Attached is a media contact form for a discussion I had this morning.

Chris

ChristopherA. Roling,PE EnvironmentalEngineerSenior Air Quality Bureau, IDNR ph: 515-242-6002 fax: 515-242-5094

1/16/2008 Media Contacts by Iowa DNR Staff

This form should be completed for all contacts with the news media. After filling it out, save it as a word.doc, then attach it to an email note as soon as possible to [email protected] (or fax to 515-281-6794, Attn: Lisa Nissen, if email not available)

1. Date: January 16, 2008 Time: 9:15 AM -=-'-'-'---'--'------2. Name of DNR staffer: ----'--'""""'------Chris Roling

3. Name of reporter: ...:M:.:..:.:::o""lIy<....::Cc..:hc..:ri.::st:::ia::..:n.:...- _

4. Name of news organization: Argus Coal Daily

5. General subject of interview: IPL - Marshalltown PSD permit application

6. Controversial or potential for controversy? Yes IZI No 0

7. Summarize the content of your interview. Argus Coal Daily is a comprehensive daily market report providing pricing, news and analysis in the North American coal markets and is used as a benchmark for long- term pricing contracts throughout the industry. They called to find out more about the PSD permit application for Sutherland Generating Station (IPL - Marshalltown). Specifically they wanted to know what type(s) of fuellPL was proposing to use, the control technologies proposed by IPL for PM, NOx & S02, and the emission limits proposed by IPL for PM, NOx & S02.

8. When will the article or broadcast run? Not sure

Cc: Catharine Fitzsimmons Dave Phelps

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1/1' c o ~I c :g, C; Ill' OJ ul Give new Alliant power plant your support I Times Republican Page 1 of 1 am~I.IBlfma Central Iowa's Daily Newspaper LA w:a:c::e:: :sa; _ ._. ZSZ4!04. m_._ ae .. •. u:;:zc Your View

> Opinion > V.our View

=b1!ck_to~sto.ry Give new Alliant power plant your support Robert R. Peterson, Marshalltown

IpOSTED: January 13, 2008

I am writing to urge Marshalltown and area citizens to look favorably upon of the construction of the Alliant Energy plant in Marshalltown.

As a society our needs for the use of electricity are increasing almost exponentially and the adequate generation and supply of electricity is mandatory to satisfy that need.

No one can argue that we need to be cognizant of the need to reduce greenhouse cases and the need for development of alternative means of generating electricity but the fact is that technology is not yet developed to the point that we can rely on them for the satisfaction of all our electrical consumption. At present we must rely on coal or nuclear generation of electricity for the bulk of our electricity needs. Nuclear is not an option.

The construction of this state of the art plant will generate over 600-megawatts of electricity with less carbon dioxide emissions than the current plant which generates only approximately 150 megawatts.

50 again, I urge others to look favorably upon the construction of the Alliant Energy plant in Marshalltown. It is a win-win for not only Marshalltown but also of the state of Iowa.

5ubscrib.e to Times Republican

http://www. timesrepublican.com/page/content.detail/id/50 I548.html?nav=5004&show layo... III 7/2008 _4:.~_BAddressing some fears about coal plant I Times Republican Page I of I Centr.d Iowa's D-dily Newspaper _ tx u= = G zc 40 =_ 5~ :::$2 $leae: Your View

> Opinion > Your View

=ba.clLto_stow Addressing some fears about coal plant Bill Egleston, Marshalltown

IPOSTED: January 15, 2008

I am a supporter of the Alliant Energy coal-fired power plant proposed for Marshalltown. Many people have written about the benefits and need for this facility. I would like to comment about the fears of some people regarding greenhouse gasses, etc.

There was an excellent editorial in the Times-Republican on Dec. 27, 2007, by Cal Thomas entitled "Refusing to consider evidence that debunks beliefs" (available through a Google search). This editorial deals with a minority report provided by the . The report lists over 400 scientists who disagree with the "facts" that Mr. AI Gore and his supporters use to support the "Global Warming" fears.

The Senate report is 167 pages long and can be found if you Google "senate report greenhouse gas."

I hope you can remember the "new ice age" of about 10 years ago. Now we have swung to the other extreme. This is Iowa - wait - the weather will change.

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http://www. timesrepublican.com/page/content.detail/id/50 1598 .html ?nav=5004&showlayo... 1/17/2008 Giving support to new power plant I Times Republican Page I of I .. ~r'.tmu Cent....llowa's D-.ill)' Newspaper :;:. = =_._ ===_.$ .W4# Z .. = •. • ¢4 ;z;=_ 2:.0". Your View

> Opinion > Your Yiew «--ba.cILto_story Giving support to new power plant Floyd P. Harthun, Marshalltown

IpOSTED: January 15, 2008

The proposal by Alliant Energy to build a coal fired power plant in Marshalltown has created a lot of public interest especially as the final decision is being made by the Utility Board of Iowa. As the past mayor of Marshalltown, I have a keen interest in and 'strong support for the building of this plant.

A great deal of thought and planning were a part of this process. As mayor, I was actively involved in this planning process which actually covered a period of several years. All of the latest technology will be used to minimize the environmental impact. Numerous meetings and presentations have been held and given to keep our community and our state aware of the intent and rational for building this plant. The power generated in this plant will be used to serve all of us in Iowa to meet the growing need for electrical power in our state.

Energy conservation and the use of renewable resources are not being ignored. However, these efforts will not satisfy the foreseeable increase in future energy needs. If this plant were not built, these needs would have to be satisfied by purchasing power from outside sources. Existing coal-fired plants would be pressured to satisfy this additional demand. Since these plants are far less efficient and do not have the latest technology, the impact on the environment would be substantially greater.

The bUilding of this plant is the right decision and I strongly urge the Utility Board to grant the final approval.

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January 15, 2008

Board hears public input on planned power plant

By PERRY BEEMAN REGISTER STAFF WRITER

Marshalltown, la. - The Iowa Utilities Board on Monday opened its hearing on Alliant Energy's proposed coal-fired power plant in Marshalltown before hundreds of people who overflowed from the Iowa Veterans Home auditorium.

The longest lineup of speakers belonged to the supporters of the $1.5 billion plant, but that isn't a scientific gauge of the public mood. There were plenty of opponents, too.

There was confusion until the last moment about whether the board would allow public comments - an unusual move in what usually is a battle among lawyers and witnesses before the panel. The board allowed two hours for public comments before moving to cross-examination of witnesses, expected to take several days.

The utilities board must approve a certificate before Alliant can build the plant. The Iowa Department of Natural Resources independently must approve pollution permits for the facility.

Among the supporters were ethanol and utility co-op workers, bankers, local government leaders, state legislators, economic development workers, corporate executives, and construction workers who said the plant would create jobs and offset emissions from older plants. Opposing the plant were Meskwaki tribe members from nearby Tama, environmentalists and health professionals concerned about the plant contributing to lung illnesses and to global warming.

Three dozen speakers supported the proposal. At one point late in the public comment section, 15 supporters were lined up at their microphone, while the microphone reserved for opponents stood alone. Eighteen speakers opposed the plant, and one submitted signatures of 180 plant opponents.

"There is no such thing as clean coal technology," said Suzanne Wanatee of Tama, a member of the Meskwaki tribe. She feared she and her family would be harmed by the emissions, some of which have been linked to lung ailments.

Wapello County farmer Stephen Gardner said he lives next to Alliant's coal plant at Chillicothe and has never had problems with it.

David George of Cedar Rapids, president of the Iowa Utility Workers Conference, said, "I'm glad to see that we are finally building coal plants, because it is one of the true plentiful sources of fuel in the U.S."

Mary Stewart of Marshalltown said that she has asthma and that Alliant's new emissions would threaten people's lungs. "The coal will always be dirty," she told the utility board members. "In truth, we can live without a new coal-fired generation plant. Can we live with it?"

Marshalltown Mayor Gene Beach echoed many others when he said Alliant has been a good corporate neighbor. "The citizens of Marshalltown just take it for granted the plant will be there and that the electricity will be there when they turn on the light," Beach said.

Beach added that because the plant's generation will mean older, more-polluting plants can produce less, "I would think the environmentalists would want this plant built." http://www.desmoinesregister.com/apps/pbcs.dll/artic1e? AID=/20080 115/NEWS/8011503... 1/15/2008 www.desmoinesregister.comIPrinter-fiiendly article page Page 2 of2

Jonathan Buffalo, a Meskwaki tribe member from Tama, said: "I can't argue against jobs, I can't argue against heat and electricity, things that we all need. But there is gOing to be stuff put in the air, no matter what, and it's going to go down to my descendants. There's an old Meskwaki saying: 'You can't ruin your house.' You have to live in your house. Why not build it on the west edge of Marshalltown and play Russian roulette with the Marshalltown grandchildren, not just mine?"

Dr. James Metzger, a Marshaillown pediatrician, questioned why people should support a plant that poses health risks. "I find it ironic that the same group of people that is lobbying residents to pick up their yards so the community will look good also is supporting a coal plant that will pollute the area," he said.

A decision on the proposal is months away.

Reporter Perry Beeman can be reached at (515) 284-8538 or [email protected]

htlp://www.desmoinesregister.com/apps/pbcs.dll/article? AID=/20080115/NEWS/8011503... 1/15/2008 CONCERNS ABOUT COAL·FIRED POWER PLANT Issues involved in the debate over Alliant Energy's proposed coal-fired power plant in Marshalltown include: GLOBAL WARMING: Coal plants are one of the major sources of carbon dioxide, a key greenhouse gas that contributes to climate change, already blamed for added deaths worldwide. LUNG AILMENTS: Sulfur dioxide and nitrogen oxides from the plants can harm lungs. ACID RAIN: Sulfur dioxide from coal plants contributes to acid rain that damages forests, lakes and buildings. MERCURY: Emissions of this toxic element by coal plants settle onto waterways and eventually build up in fish tissue. Ingesting mercury can cause developmental and neurological problems, and low-income populations often are most at risk because they eat more native fish. Page 6A . Monday, January 14, 2008

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~ ~ . .= con .::» New plant minimizes impact on environment I Times Republican Page 1 of 1 .m'~"mm Cent ....llowa·s Daily Newspaper * = _S._ a # __• , x_ te= _ .zz_ ,I :;:::q::a ;a:c ¥ ::e:::: _ eazc::::::p.x ~ 4. = = m Your View

> Opinion > Your View «--back_to_story New plant minimizes impact on environment Donald D. Anderson, Marshalltown

IpOSTED: January 13, 2008

I am writing this letter in support of the proposed generating plant in Marshalltown, for not only Marshalltown, but for 94 of the 99 counties in Iowa. With the number of Iowa utility-based partners joining Alliant Energy, the plant becomes an Iowa facility built, owned and operated by Iowans to serve Iowans. If we want Iowa to grow, we need affordable and reliable power.

The new coal-fired power plant proposed for Marshalltown will minimize the impact on our environment by being the most advanced in emission control. The super critical pulverized coal combustion technology will make the plant highly efficient. I think that by being Iowa's first hybrid facility capable of using up to 10 percent of renewable fuels (switchgrass and cornstalks), this would reduce the amount of coal used, thus helping to reduce emissions. Iowa's strong agricultural market is capable of producing these renewables.

Economically, the new coal-fired power plant will: increase tax revenue of $1.7 million annually to be shared by the city and county, as well as schools; prOVide a sizable economic boom with over 1,000 workers during the peak of construction; create attractive and marketable sites for new and existing businesses (more jobs, more employment); provide SO-plus high-paying jobs to operate and maintain the new plant; and support the Union Pacific railroad position of providing cost effective transportation of the coal.

I do understand that we must keep moving forward on resources such as wind and solar, plus any other new options discovered, however the climate, finances and technology in Iowa are not conducive to providing these energies on a high, consistent level ... now. Coal power is a steady, strong and economical backbone to our energy needs.

http://www.timesrepublican.comlpage/content.detail/id/50l551.html?nav=5004&showlayo...11I7/2008 Power plant meets the ever-increasing demand I Times Republican Page I of I _"'b1if.\ :/.. Centr.d Iowa's D-diI)' Newspaper = z ;;z. z u se .. k _ Q!!¢3 e = ~=. = Your View

> Opinion > Your View

« --ba.cl<_to_stOl:Y Power plant meets the ever-increasing demand Mike Himes, Test & Evaluation Engineer, Emerson Process Management

IpOSTED: January 13, 2008

This letter is intended to convey my support for the proposed building of the Alliant Energy 600-megawatt power plant in Marshalltown. Having been a resident of a Iowa, and in particular Marshalltown, for the past 60+ years I find that it -is crucial that we develop this new plant to meet the ever increasing demand for electrical energy.

Existing coal fired plants in many cases are at the end of their expected life cycles and need to be replaced. With today's technology we have several options available, but I believe there is no single solution. Rather it requires a balance so that we are not totally dependent on one resource to produce electricity. The latest coal-fired technology provides a much cleaner more environmentally friendly method of producing electricity and since we have an abundance of coal it only makes sense to use this latest technology to meet our electrical energy needs.

Some are concerned about the safety and health risks associated with coal-fired power plants, but as a matter of fact I have relatives who worked their entire career at the existing Sutherland Generating Plant and haven't suffered any ill effects. If you look at the risk versus benefit of going forward with building this new power piant, the benefits far out weigh the risk. I hope that you will aiso see the benefit in building this new power plant and support Alliant's investment in the future of Iowa.

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http://www .timesrepublican.com/page/content.detail/id/50 I550.html?nav=5004&show layo... 1/17/2008 Sieze opportunities of new Alliant power plant I Times Republican Page I of I UYl1Iqi1mllG"

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> Opinion > Your View

«--Qa.c~_to_ston' Sieze opportunities of new Alliant power plant Reed Riskedahl, Marshalltown

IpOSTED: January 13, 2008

The proposed new coal-fired electrical power plant near Marshalltown should be given approval as soon as possible. The shared ownership of this power plant will allow the electricity to be distributed throughout nearly all of Iowa. The needs that each of these power distribution groups have demonstrated shows dramatic electricity requirements immediately upon the completion of this plant.

Iowans are basically careful prudent consumers. Many have had energy audits, and have taken steps to conserve more and more. However, we cannot save enough energy to offset current and future needs.

Wind power has some ability to take some pressure off generation needs, but when I switch on a light or eqUipment, I expect it to work - every time. Not just when the wind blows, but on the hottest, coldest day even if it is calm. The only way that can happen is if we continue to develop additional capacity that can be depended upon without fail. Coal and nuclear power plants represent the only economically viable electricity generation available to us here, and between the two, I choose coal.

The concerns about emissions from this plant are real, and I do not minimize them. I do not want to jeopardize our future generations, but from devouring every piece of information available, I feel confident that Alliant Energy and their partners are integrating every available technology now and in the future to reduce these emissions.

Marshalltown has shown that it is ready to integrate this new plant into its economic environment. Many new inquiries from companies from around the country have been made which will either provide goods and services to this plant, but will also use by-products of this plant.

Iowa deserves to seize this opportunity to have ownership in its own future. If this plant is not approved and built, the power needs will continue to grow, and we will be forced to buy this energy from plants in other states, or regions, no doubt at higher costs.

Alliant has been a good local partner to Marshalltown for many years with extremely few problems, and with this plant, we expect this relationship to even improve.

Please approve this application for the construction of this life-giving, economic benefiting power plant.

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http://www. timesrepublican.com/page/content.detaillid/50 1549 .html ?nav=5004&show layo... 1/17/2008 The Times-Republican encourages members of the Iowa Utilities Board to approve the po ... Page 1 of2 ;~·1ltpub[iC4ft '" Centmllowa's Daily Newspaper e ::::a_ a _ .z c_ m en ..._ u - , - -; - ;>~ ;;; _."*,:oe_ = =_ u Our View

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«-- bilciLto_s.tol}' The Times-Republican encourages members of the Iowa Utilities Board to approve the power plant plan

IpOSTED: January 13, 2008

Members of the Iowa Utilities Board gather in Marshalltown this week for a hearing on the proposed new Alliant Energy power plant.

First, we're proud Alliant Energy chose Marshalltown and we want them to know we support their plans for a cleaner, more efficient plant in our community.

Second, we want to encourage members of the Iowa Utilities Board to look past all the hype surrounding opposition to the plant and work only with the cold, hard facts:

• This plant will be a hybrid fuel plant, utilitizing renewable resource fuels such as switch grass or corn stalks.

• Yes, it will use coal, but it will also utilize clean coal technology, reducing emmissions even further than ever before - and well below the EPA's own guidelines for clean air.

• Combined with Alliant Energy's efforts in wind power production, it shows Alliant's dedication to providing high-efficient power while working to better reduce our impact on the environment.

Instead of attacking one of the few industries working to improve its relationship with the environment, perhaps those opposed to the plant should look to their own backyards:

• A NASA official plans to testify about the dangerous impacts of coal on our environment. Has he considered how much fuel the space agency burns each year and its impact on the environment?

• A nationwide club dedicated to protecting the environment plans to bring a busload of people to town to "pack the house" at the hearing. Have they considered how much fuel they will expend driving a diesel bus here?

• Others comment on how dirty coal emissions are, yet have they seen the much darker emissions eminating from hundreds of vehicles on the road each day?

• Another environmental group's leader recently appeared on television talking about how we must curb our appetite for power. Did he realize his own cell phone, laptop and Blackberry were consuming power in front of him as he spoke?

Don't mistake our message, we agree the environment must be protected. But we believe that can better be accomplished not by attacking the power industry, but by instead looking at our own daily lives for ways we might become more enVironmentally-friendly.

Alliant Energy has taken great steps to ensure a quality, efficient and clean plant will be built in our community.

We applaud those efforts - and encourage the Iowa Utilities Board to do so as well.

http://www. timesrepublican.comlpage/content.detaillid/50 1547 .html?nav=5007 &showlayo... 1117/2008 The Times-Republican encourages members of the Iowa Utilities Board to approve the po ... Page 2 of2

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C" -, lI. Pagjl20P ~u.n~Yl}1\!I~ary13, 2008 I ___ ._.~~V Proposed power plant is good for "1\ business, for Iowa , . 1 , '1- "" , ~:_ -.'" ~ I live across town from the I SllPpoP 'the proposed 1 existing ·MarShaUtown··power huildirig'Of{t~AUiant Energy plant, but to my knowledge, 630-megawatt power plant in \ the Sutherland power plant Marshalltown.,· Having been has been an exceUent citizen a resident o1',lowa, and Mar- of our community and a good shalltown, fof;the past 50-plus \ neighbor. " years, I find that it is crucial The very vocal opposition al- l that we develop this new plant ludes to aUsorts of horrendous to meet the ever-increasing de- results if a new coal~firedpiant j mand for electrical energy. is constructed. Their doom- Existing coal-fired plants, in and-gloom scenario makes I many cases, are at the end of no rational sense to me, as I their expected life cycles and Sutherland Station has pro- ! 1 need to be replaced. With vided power to MarshaUtown I today's technology, we have and the central Iowa power several options available, but grid for decades. The proposed I believe there is no single new plant will include the lat- , solution. It requires a bal- est technologies to continue I ance so that we are not totaUy good-neighbor policies. ' dependent on one resource to If the opposition is so produce electricity. l The latest coal-fired technol- disgusted with additional electrical-p~wer capability in i ogy provides a much more en- Iowa, I suggest they .try liv- I vironmentaUy friendly method ing in the cold and dark for . \ of producing electricity, and a while. Vague solutions of I since we have an abundance sun and wind power are often of coal! it makes sense to use mentioned as alternatives, \ this latest technology to meet but these afe minus.cule sup- our energy needs. . plemental sources of power. Some are concerned about I prefer to depend on more I the safety and health risks proven technologies. associBted with coal-fired The same p'eoplewho dispute power'plants. I have relatives coal-fired plants also object to who wOrkedtheir entire career any offshore or Arctic explora- \ at the existing' Sutherland tion; they are great on absti- geneniting plant and haven't nence theories and mileage sufferect any ill effects. If you limitations. They have a right look at the risk versus benefit to express their opinions, but of going forward with build- I do not want to cut firewood, ing this new power plant, the use coal-oil lamps or depend benefits far outweigh the risk. on a horse and buggy in Iowa I hope that you will also see winters. the benefit in building this Saudi Arabia has crude oil new power plant. and. support and gas; th.e'United States has AUiant's investment in the fu- similar BTU,equivalents from ture of Iowa. '" I ~,"- Mlk HI coal. Power generation means J .. "-~A:-~~:~-,,;r:)''-sh'o,:::~i'I~MeB, using whateV4;renergy is avail- . I ';', A{qt;•.,.~oum. able in an int~)Iigentmethod to create electricity. The construction of a new power plant brings new jobs and additional local sales to small busin1.sses for every- thing from IO-penny nails to delivered.pizza. Central Iowa needs this cOal-fired power plant for ~conomic growth! . ,Don w. Crowley, . lIllI)farshaUtown. , .. ' .'. OPINION rThe Des Moines fIegister FWAL

;at's. . the. -.. role.- '"--,'--

for coal" in Iowa?"', .,' As pressure mounts to address t~e threat gas emissions. Researchers are wo~ng ing the__6Jo-~egawatt generatiilg facility~ of climate change, nations around'the on technology to capture carbon dioxide pioMSed tor Marshalltown by Interstate I world are wrestling with how to"decrease beforelt reaches the atmoiiphere, but that ~wer and Ught Co_,the Iowa subsidiary use of fossil fuels while ensurin;~adeguate technologyis not ready yet. of Alliant Energy Corp. energy supplies to fuel econorruc"'grQv(th. ]o\Y,a f!!lies more. heavily Jhan other The hearing will be held al the Iowa Vet· A big decision for the United States - s.lares on ~lectrka1 generation from erans Home, Whitehall Auditonum. 1301 and for Iowa - involves the role",of ';oal. cOaJ-fired power plants; arid it's about to ~.'1J1]~t. St., _ld_~i!.l(~t~ ~~es of I Supplies are abundant within U.S. borders, deciC::!e.whether to ad~ mo~.Two plants record will cross-exanune Wltnesses and and it yields reliable, relatively cheap en- are proposed, in Marshalltown and near reply to"evidence subnufted by other par- ergy. But carbon·dioxide emissionS from Waterloo. ties. For more, information, visit the Iowa coal·fired power plants are a significant The Iowa Utilities Board will conduct a Utilities Board Web site, www.state.ia.us/ source of human-generated greenhouse· publiC hearing at 10 a.m. Monday regard- governmentlcorn/titil. '

... .~ - .-." -~ - ~ ~4' - - ~-lW1.IiIIiGisnrFi.EI'IICITO-; A bulldozer drives across 8 mound of coal at a MidAmerican Energy plant in Councii Bluffs this faU. In the background, atrain brings I more coal to the plant. The Iowa Utilities Board will hold a public hearing Monday regarding a 630-megawatt generating facility pro- .posed for Marshalltown. ," ~ - .... Coal-fired plants don't square Coal is cleaner than ever, with Iowa's clean-energy goals and Iowa's economy needs it

he proposed coal·fired Harvesting every cornstalk from energy issues in Iowa: power plants for Mar- the approximately 280.000 acres of individUals,We have I. Without the continued use of shaUtown and Vlaterloo corn in Marshall and Black Hawk tremendous opportu- coal, how is Iowa going to meet have local, state and County would supply only a very nity to e~brace envi- its growing demand for electric- global implications. I'd small percentage of the feedstock ronmental stewardship ity? Although the state is beeom· likeTto provide thoughts and ~. for these plants. Thafs a huge . respOnSe 10 the ing more energy efficient each buttal to misinformation in recent piJe of cornstalks with relative Nthreat of climate change. And ii's day. it's not enough to offset the articles. little energy value. What about becoming increasingly apparent increased use of electricity. transportation and storage costs? rlfSt, "dean coal" is an oxymoron. that many ollows's policymakers 2. Without coal, how will Iowa A spokesman for New Jersey-based What about the loss of soil fertiJ- are eager' to identify actions they continue to keep energy costs low? IS Power, which bas proposed the ity, reduced crop productivity and The cost of energy makes a huge Waterloo plant. stated at a recent increased soil erosion? Ucom·stalk can support to address climate- change concerns in a mearungful difference in the quality 01 life lor public hearing, "Now let's talk residue is 8 viable energy source, many Iowans and Americans in about the environmental ben- the conversion will most likely be way. For some, it may be easy to say general. II is estimaled that nearly efits of this proposed plant· The at the fann or local level. not at a 10 percent of households in this same mentality clearly surfaces monstrous power plant. that we can meet the requirements of reducing greenhouse-gas emis- country are spending half their in a recent Register article when Would giant wind turbines located income to cover energy-related sions. For others, they say that an- i an industry spokesman claimed in Marshalltown and Waterloo be expenditures. It is irresponsible practical to harness Iowa's wind swer is relying more that o""";ona from to not address how future energy I Iowa's newesl coal- energy? on energy efficiency ~lideS·in this state will affect the L ,I fired plant are 10 Finally, while the power indus· and renewable-en- cost to consumers and their impact percent to 15 percent try claims these plants will be ergy resources. That on our standard of living. · . • lower than from older the deanest ever built, thai is sounds great, but at power plants, and the not good enough for the present. 3. Regulations that diminish the the end of the day use of coal in Iowa will likely re- two new power plants much leS5 the future_ Last April 2, ... the lights have to will be the cleanest, in state of Massachusetts vs. U.S. sult In increased reliance on natu- stay on. ral gas at more than twic.ethe cost James H. most efficient ever Environmental Protection Agency, Joe In Iowa, the stakes I of coal. As with oil, America gets built in Iowa. the U.S. Supreme Court ruled that are high. Almost 80 RUFF That's factually LUCAS the majority of its natural gas from the EPA must regulate carbon diox- percent of the elec- correct, but environment-wise a ide and other greenhouse gases as foreign sources. tricity used in Iowa is produced disaster. Even if generation from pollutants. With the political mess 4. Clean-co.aI technology will older, dirtier plants is displaced. in Washington, it will take time by. American coal. The slate has ensure continued progress when thai's still 85 percent to 90 per- before this ruling gets mandated among the lowest energy costs in if comes to protecting the environ- · cent emissions of heavy metals, into federal regulations. the nation, in large part because of ment. Climate-change concerns ,particulates, regulated gaseous In the meantime, progressive and the state's reliance on coal. aren't going away, but there's I emissions, greenhouse ~ases and visionary leadership is needed by Access to low-cost electric- never been an environmental chal· · combustion-ash pollution from our citizens and at local and state ity from coal is a huge economic lenge facing 'the' com-based elec- I the 1,380 megawatts of capacity government levels. Recently, Ihe driver in Iowa. According to a tricity sector fOr\vhicl;technology from both plants. state of Kansas denied air-quality peer-reviewed study done by did nol proVide'the u1timatli solu- I Why is the power industry con- permits for two 700-megawatt coal- Penn State University, electricity tion.ln facl, tOdaY'scoal fleet Is 70 tent to brag about a 10 percent to 15 fired power plants. fn::imcoal contributes to $21.7 bil- percent cleaner-than it was just a percent emissions reduction? What Gov. Chet Culver's vision for lion in economic benefits to Iowa's few year~'~go;;: ~~~cs to the use' has it done to clean up its act in I Iowa is ·renewable, clean energy. economy and $&.6billion in house- of advanced technology. the past 30 years? The reduction i It is difficult to understand how hold income, much of that coming I encourage the'state's policy· , from existing 30-year-old power the destruction of prime Iowa from 157.000jobs Ihat are located makers to sUPPorflhe continued : plants equates to a 0.3 percent to farmland for the construction of 0.5 percenl improvement per year. in the state as a result to access used of coal in Iowa and the fur- two coal-fired power plants fits to low-cost electricity for Iowa's ther development of clean-coal : In comparison, other industries that vision. regulated by the Clean Air Act (for businesses. technologies. . JAMESH. RUFF01Cedar hili hs As I example, on- and off-road diesel state lawmakers assemble JOE LUCASIs ... caUVI .lrec1or III I doclor.llin In,ln8lrln, and Is In i engines) will have reduced emis- this month, they need to focus Americus lar Bllan;ed Ener" Cholcn, Ingln8lrlnl manl'!' la Julin DUrl'1 Aluandrll, YI. , sions by 99.8 percent, or an average Powlr _,sl,ms OI,llIon In WII.,IDO. on four things when it comes to of 5 percent to 6 percent per-year emission reduction in lesS than two decades. A "dirty coal" label seems more appropriate. One Register article quoted an Iowa legislator as saying thai re- newable energy will be included in the feedstock mix for tbese coal plants. Renewable energy is our vision and makes sense for Iowa, but not In combination with mon- strous coal·fired power plants. LS Power has written Iowa legislators specifically asking them to reject legislation that would mandate It to use renewable energy. WCFcourier.com I Print Climate scientist criticizes coal-fired power plant plans Page I of I

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Friday, January 11, 20084:49 AM CST I Print Page I Climate scientist criticizes coal-fired power plant plans

CEDAR RAPIDS (AP) - A proposed coal-fired power plant in Marshalltown would be a waste of money, according to one of the world's top climate scientists.

James Hansen, an Iowa native who runs NASA's Goddard Space Center in New York, is expected to testify in opposition to a proposed Marshalltown facility before the Iowa Utilities Board next week.

Hansen said he is against the plant, to be built by Alliant Energy, because he believes the government will soon be forced to regulate coal plants out of existence due to environmental concerns.

"It would be a tremendous waste of money to put money into coal-fired power plants at this time, because it has become clear that we're going to need to phase out coal use where it is not possible to capture and sequester the carbon dioxide," Hansen said.

Carbon sequestration separates carbon gases from the plant's emissions. They can then be injected into underground geologic formations for storage.

Alliant said that it will design the BOO-megawatt plant so that carbon sequestration technology can be installed later. The total cost of the plant, shared by Alliant and others, will be about $1.5 billion.

Hansen said the cost of carbon sequestration will be too high to make the proposed plant economically feasible. If utilities were required to fully commit to begin sequestering carbon at a specific date instead of promising to do so when technology improves, he said they wouldn't choose to build such plants.

Alliant Energy spokesman Ryan Stensland said the company would not be designing the plant for carbon sequestration if it had no plans to use that capability.

He added that the new power plant's supercritical boiler will be "perhaps the most efficient coal-fired generating unit ever built in Iowa."

Copyright © 2008 Waterloo/Cedar Falls Courier

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> Opinion > Your View

=back_to_s.tory Support building new power plant Don Crowley, Marshalltown

IpOSTED: January 10, 2008

I live across town from the existing Marshalltown power plant, but to my knowledge the Sutherland Station has been an excellent citizen of our community and a good neighbor.

The very vocal oppositions allude to all sorts of horrendous results if a new coal-fired plant is constructed. Their doom and gloom scenario makes no rational sense to me as Sutherland Station has provided power to Marshalltown and the Central Iowa power grid for decades. The proposed new plant will include the latest technologies to continue providing similar past good neighbor policies.

If the opposition is so disgusted with additional electrical power capability in Iowa I suggest they just go outside their home and throw the main electrical breaker and live colder in the dark for awhile. I hear no volunteers from the opposition to suffer through the Winter, or even a summer, as a commitment to their opinion. Vague solutions as to Sun and wind power are often mentioned as alternatives. Sorry, some day maybe, but not in our lifetime. These are miniscule supplemental sources of power. In this country, with its weather, I prefer to depend on more commonly proven technologies for municipal statewide power.

The same people that dispute coal-fired generation plants also object to any offshore or Arctic exploration to deter dependency of foreign energy sources. They are great on abstinence theories and motor scooter- like mileage limitations. This is the USA and they have a right to express their opinions; but I for one, do not want to cut firewood, use coal oil lamps or depend on a horse and buggy in Iowa winters. Our ancestors have been there, done that and did not like it.

Saudi Arabia has crude oil and gas; the USA has similar coal BTU equivalents. Power generation means using whatever energy is available in an intelligent method to create electricity. I hear no hue and cry to build a nuclear plant within the city limits.

The construction of a new power plant brings new jobs and local additional sales to small business for everything from ten-penny nails to delivered pizza. Remember some of the fundamentals of our communities in Iowa, small business provides about the same number of jobs as major industry.

Centrai Iowa needs this new project for a coal-fired power plant for economic growth.

http://www.timesrepublican.com/page/content.detail/id/5014~4.html?nav=5004&showlayo...l/1712008 Backing approval of new power plant I Times Republican Page I of 1 "11~.l4i Centr.tllmva's D-dily Newspaper Q. _ J

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«-- ba.c~_to_stor:Y. Backing approval of new power plant George E. Taylor, Marshalltown

IpOSTED: January 9, 2008

Political discussions now part of the past, our coffee conversations lacked much substance until friend Bill asked, "What about that new billion dollar investment in a new power plant? See what you can find out and call me."

It took me a little time, but I fDund a few facts that I cDuld report back to Bill. Of CDursefirst was the terrific eCDnomicimpact it wDuld have for Marshalltown and the state Df IDwa. What about the plant itself?

A state Df the art 650-mega watt base load plant, Dperating 24-7, this plant will prDvide customers in 94 counties in the state all of their energy needs. TWDrural electric cODperatives and a consortium Df smaller energy providers have jDined in the project.

In additiDn, Alliant Energy will build a 200-mega watt wind farm nDrth of Hampton to be used when available to reduce operatiDn at the Marshalltown plant. Another fact, although clean burning coal will be the main fuel, this new hybrid plant will have the ability to use renewable fuel such as switch grass Dr stover.

I found one comparable, the new Mid-American coal burning plant at Council Bluffs, was awarded the outstanding plant in the U.S., with carbon dioxide emissions 26 percent less the national standard allowed. The Marshalltown plant will be even more efficient.

Bill was impressed. But what about all those trees that were given to cities and individuals over many years by Alliant? They saved energy by providing shade in the summer, wind breaks in the Winter, and trees use up C02. A good pDint.

So we decided to call our legislators and write a letter to the executive secretary of the Utilities BDard, docket No. GCU-07-1, 350 Maple St., Des Moines, IA 50319-0069 and urge that the new plant be apprDved.

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January 9, 2008 Scarfe: Let's convene yearlong dialogue about energy, climate change

Alan Scarfe

As people of faith we are called to care for God's sacred creation and everything therein, which the Lord has described as "good." We are charged with caring for the poor and vulnerable around the world through alleviation of global poverty. We are faced with a formidable challenge on both fronts - the effects of global warming.

As the Archbishop of Canterbury, Dr. Rowan Williams, noted in a recent statement, "The biggest challenge that faces us in terms of global policy at the moment is how we are to find ways of reducing and controlling climate change without eating into the economic aspirations, the proper aspirations of our poorest societies towards prosperity, respect and dignity."

In my own church we have heard from Anglican faithful in Swaziland about how climate-related drought has made it all but impossible to grow food. Our fellow churchgoers in Bangladesh have warned us that rising waters threaten to engulf the homes, places of worship and communities of millions. We must act to protect our brothers and sisters and reduce pollution here at home.

After the disappointing response of the Bush administration to the global climate-change conference in Bali, it is increasingly apparent that it will fall to state-level leaders, such as Iowa Gov. Chet Culver, to help prod the United States to address the urgent challenges and opportunities created by global warming.

The good news for Iowans is that our governor made renewable energy a major part of his platform upon entering office. He has shown courage in helping to frame a multistate accord to reduce global- warming emissions. The next logical step for him in showing his commitment to a cleaner future for Iowa and the rest of the world is the convening of a statewide dialogue on energy and the related choices that we must all make.

The governor will find that Iowans, especially those in the faith community, are eager to play their part in such a serious-minded discussion. A statewide survey commissioned by Iowa Interfaith Power & Light, Iowa Farmers Union and Plains Justice found 65 percent of all state residents favor a yearlong "statewide dialogue in Iowa involving state officials, citizens, unions and utility company regulators to help shape the energy future of Iowa during which current coal-fired power-plant plans would be frozen to allow for the most comprehensive discussion."

Here is where one finds a golden opportunity for our governor to demonstrate that Iowans are among the people within the United States who are farsighted enough today to understand the deeper implications of the climate crisis that is upon us. From the perspective of Iowa's religious communities, the proposed coal-fired power plants threaten rather than assist our progress toward renewable energy.

The intention of placing these climate-endangering electricity-production facilities in the demographics of our most at-risk individuals - Marshalltown, with its large Latino population, and Waterloo, with its greater number of African Americans - may have the appearance of providing short-term employment, but jobs would come at great cost to the health of the workers as well as the families in the proposed areas.

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When it comes to Iowa's energy choices, the course is clear: We are obliged under God to be the voices in the corridors of power for those who may not have equal access. That is why we have a moral and a spiritual obligation to encourage a deep conversation in 2008 about this state's energy future.

If there were easy answers and painless choices, there would be no need for a soul-searching dialogue about what to do next for Iowa's energy future. But that "easy road" is not the path before us.

As the Archbishop of Canterbury put it so eloquently in his statement: 'When we meet to discuss these matters, we are reminded that we do have choices, that we can make a difference."

The Rt. Rev. ALAN SCAR FE is bishop of the Episcopal Diocese of Iowa.

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«--~ack_to_st01Y Support proposed new power plant George Baitinger, Albion

IPOSTED: January 4, 2008 I am voicing my support for the new power plant Alliant Energy is proposing to construct in Marshalltown.

Operating a small farm for the past 31 years, I have experienced growth in my use of electricity. As my children who used to carry buckets and push scoop shovels grew up and left the operation, augers powered by electric motors were installed to help me get the job done.

If that sort of automation has taken place on a small operation, it certainly has also taken place on larger operations and in industries and homes.

The bottom line is, even with conservation efforts, I use more electricity now than I did 30 years ago, and I'm pretty certain I am not alone.

It is generally recognized that the new appliances and vehicles we purchase today are more efficient and operate cleaner than the ones manufactured 30 years ago. The same is true of power plants.

In an industry where much of the capacity is 30 to 50 years old, advances in technology allow new plants to produce electricity more efficiently and with less impact to the environment.

Why wouldn't we want to support adding a cleaner, more efficient plant to the mix?

Thank you Ailiant Energy, for committing to provide us a dependable supply of eiectricity now and into the future.

http://www. timesrepublican.comlpage/content.detail/id/50 1204.html?nav=5004&show !ayo... 1117/2008 Page 6A Satulllay, December 29,2007 The Des Moines Register GC

Group wants clean energy pfedges

ity,The group listed clean:en- initiatives a centerpiece of cent before 2025 by using , ' Environment America ergy priorities it plans to push their environmental and eco- more-efficient appliances, .I asks candidates to push in Iowa, site of next week's nomic policies," said Melisa buildings and homes, for conservation and stop presidential caucuses, and Stodieck, field organizer for • Commit $30billion to new the early primary states, Environment Iowa, "The next energy technologies over the nuclearandcoalplan~, Iowans are embroiled in a president must prioritize har- next decade, fight over proposals for new nessing America's abundant • Reject proposals for new By PERRY BEEMAN REGISTER STAFF WRITER coal plants in Marshalltown clean energy resources and nuclear plants, and relicens- and Waterloo, developments vast reserves of energy ef- ing of existing ones, A national environmental critics say would add to one of ficiency," • Ban new coal-fired power group at a Des Moines event the biggest sources of green- The group called on presi· plants, Friday called on presidential house gases blamed for global dential candidates to support • Make solar energy a cen- candidates to push for energy warming, Proponents say the these goals and policies: terpiece of energy plans, conservation, "green" alter- plants would be more efficient • Cut oil use by one-third • Change utility policies to native energy and a morato- rium on new coal-firedpower than older ones, and, provide before 2025 through energy- reward efficiency programs plants, the cheap, reliable power efficiencyimprovements, and renewable energy, Environment America, Iowans and other Americans • Provide at least 25 percent • Set a national limit on car- which has an Environment demand, of all energy with wind;solar, bon emissions, Iowa branch in Des Moines, "All of the cangi4ates for biofuels or other renewable , Reporte, Perry aeeman can be said the next president must president should:'pJe4ge \0 ,energy source~ by 2025, '. ,', reacheilat (515)284'8538or make clean energy a top prior- .ma~~~ig;1~g!9t~~.~J1.f:~l)e.r~~;.\'l~~J!t\fJ-u!.fgx';J~seby-;JO,per; d-~:ii~,P~f=9~Pl'!~~Il·~D~""7;;: Refusing to consider evidence that debunks beliefs I Times Republican Page 1 of2 ihutG-lepnbti,.\ CentmJ Iowa's DaiJy Newspaper s; ~_ .x __ ;= _ ",uee w = • .. Columnists

> Opinion > Columnists

«- -ba.C!Lto_story Refusing to consider evidence that debunks beliefs BY Cal Thomas

IpOSTED: December 27, 2007

You don't have to be religious to qualify as a fundamentalist. You can be AI Gore, the messiah figure for the global Article Photos warming cult, 'whose followers truly believe their gospel of imminent extermination in a Noah-like flood, if we don't immediately change our carbon polluting ways.

One of the traits of a cult is its refusal to consider any evidence that might disprove the faith.

And so it is doubtful the global warming cultists will be moved by 400 scientists, many of whom, according to the Washington Times, "are current or former members of the U.N. Intergovernmental Panel on Climate Change that shares the 2007 Nobel Peace Prize with Mr. Gore for publicizing a climate crisis."

In a report by Republican staff of the Senate Environment AP PHOTO and Public Works Committee, these scientists cast doubt on Investor Warren Buffet participates in the a "scientific consensus" that global warming caused by Treasury Conference on u.s. Capital humans endangers the planet. Markets Competitiveness at Georgetown University in Washington in this file Like most cultists, the true believers struck back, not by photo. debating science, but by charging that a small number of the scientists mentioned in the report have taken money from l- ----' the petroleum industry.

A spokeswoman for AI Gore said 25 or 30 of the scientists may have received funding from Exxon Mobile Corp. Exxon Mobile spokesman Gantt H. Walton dismissed the accusation, saying, "the company is concerned about climate-change issues and does not pay scientists to bash global-warming theories."

The pro-global warming cultists enjoy a huge money advantage.

Paleoclimate scientist Bob Carter, who has testified before the Senate Environment and Public Works committee, noted in an EPW report how much money has been spent researching and promoting climate fears and so-called solutions: "In one of the more expensive ironies of history, the expenditure of more than $50 billion (U.S.) on research into global warming since 1990 has failed to demonstrate any human- caused climate trend, let alone a dangerous one," he wrote on June 18, 2007.

The $19 million spent on research that debunks the global warming faith pales in comparison.

Also included in the Republican report are comments by Dutch atmospheric scientist Hendrik Tennekes: "I find the Doomsday picture AI Gore is painting - a six-meter sea level rise, 15 times the IPCC number - entirely without merit. I protest vigorously the idea that the climate reacts like a home heating system to http:! Iwww .timesrepublican.com/page/content.detaillid/500929 .html?nav=5003&showlayo... 1/17/2008 Refusing to consider evidence that debunks beliefs I Times Republican Page 2 of2

a changed setting of the thermostat: just turn the dial, and the desired temperature will soon be reached."

Oklahoma Senator James M. Inhofe, ranking Republican on the Environment and Public Works Committee, said the report debunks Mr. Gore's claim that the "debate is over."

In fact, the debate hasn't even begun because the global warming cultists won't debate.

Despite numerous challenges, AI Gore has refused to debate the issue with any credible scientist who is a skeptic.

Shouldn't the winner of the Nobel Peace Prize be willing to debate such an important issue? What does he have to fear?

If his theory cannot stand up to scientific inquiry and skepticism, it needs to be exposed as a false religion and himself as a false prophet before he and his followers force us to change the way we live and alter the prosperous society that generations of Americans have built.

Gore and his disciples will still be living in their big houses, driving gas-guzzling cars and flying in private jets that leave carbon footprints as large as Bigfoot's, while most of us will be forced to drive tiny automobiles and live in huts resembling the Third World.

But hypocrisy is just one of many traits displayed by secular fundamentalists like Gore.

Before adopting any faith, the agendas of the people attempting to impose it, along with the beliefs held by them and their disciples, should be considered.

Gore and company are big government liberals who think government is the answer to all of our problems, including problems they create. In fact, as Ronald Reagan often said, in too many cases government is the problem.

The secuiar fundamentalists who believe in AI Gore as a prophet and global warming as a religious doctrine are being challenged by scientists and others who disbelieve and who think we ought to be spending more time on developing new technology and energy sources for the future and not preaching gloom, doom and retreat.

Let them debate the issue.

If they won't, we can only conclude that all they are spewing is hot air.

Cal Thomas is a nationally-syndicated writer. His column appears Thursdays in the Times-Republican.

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«--back_to_sto[y The Power Of Coal Building the energy technology of the future

IpOSTED:December 18, 2007

Dear Reader,

The following position statement was issued by ASME's Energy Committee and Power Division and is not meant to be a reflection of the opinions of ASME as a whole, but rather, the collective views of its authors.

The Energy Committee is comprised of a small group of ASME members which issues position statements for the purpose of educating the public regarding specific energy technologies.

It should also be noted that since this statement was issued, ASME has convened a small group of members to update ASMEs society position statement on global warming and the technological implications of climate change.

The climate change position statement will be released in 2008.

Any questions or comments pertaining to "The Need for Additional Coal Fired Plants" should be directed to Mel Torre, Director of ASME Communications at [email protected].

I. Executive Summary Purpose The purpose of this statement is to provide an overview of the current status of technology for producing electric power from coal-based systems. The paper presents discussion of system designs, emissions control technology, fuel reserves, finance considerations, permitting, and public acceptance. The Energy Committee and the Power Division of ASME's Council on Engineering believes that coal represents a desirable, viable, and economical option for fueling our present and future national demand for electricity. We recommend that national policy development and Congressional incentives be directed toward increasing the use of modern coal-fired power plants to increase energy efficiency, reduce pollutant emissions, and provide economic protection from energy price fluctuations.

Overview of Power Generation Technologies Coal-fired electric power plants today produce more than 50 percent of the electricity in the U.S. at low cost. Inexpensive electricity is essential to maintaining a dynamic competitive U.S. economy and our standard of liVing. All coal-fired power plants operate in conformance with stringent federal and state regulatory requirements. Most of these plants are capable of base-load (24/7) operation with high reliability. The coal mining, fuel transportation and transmission infrastructure investment, supporting existing plants and some future plants, is in place. New coal-fired power plants are essential to the future of the U.S. base-load power supply. In 2002, 98 percent of the U.S. electric system power generation came from; coal-fired (50 percent), nuclear (20 percent), oil and natural gas (21 percent), and hydroelectric (7 percent). Base-load

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electricity, measured in kilowatt hours (kWh), is generated from these four energy resources (plus some geothermal electricity). Off-peak electric generation from these sources costs; hydroelectric (0-1 cents/kWh), nuclear (1-2 cents/kWh). coal-fired (1-2 cents/kWh), oil and natural gas-fired (variable, 3.5 - 10 cents per kWh). Most of the U.S. coal-fired plants are 30-40 years old and have been upgraded to meet emissions regulations. However, only about 25 percent of these older plants have been retrofitted with scrubbers, and only a few plants are equipped with the most effective flue gas cleanup systems technology now available for new power plants. While the average net energy conversion efficiency of these plants is about 32 percent, the next generation of new plants can increase this net efficiency to 40 percent or higher with improved technology, thereby reducing coal consumption and emissions in proportion. This benefit will significantly increase the kWh produced per pound of coal burned, with fewer emissions. In the next decade, new base-load and mid-range generating capacity will be needed to replace older plants and to support U.S. economic growth. It is necessary to have at least two low cost energy resource choices for competitive new base-load power plants. All new hydro-electric, nuclear, and coal-fired power plants must overcome formidable and often unpredictable regulatory and permitting obstacles. These risks are mostly not technical, but the uncertainty makes normal capital investment and financing more expensive. Engineering and construction lead-times for these large power plants are typically 3 to 5 years after permits are obtained. New natural gas and oil-fired plants face the financial risk of volatile natural gas and oil prices currently and projected for the near future. The U.S. is importing more oil and natural gas each year. Geothermal resources that are economical are limited. The best hydro-electric plant sites have been developed. Other renewable energy sources are expensive, based on current technology, and are not reliable for base-load power generation. The economic and reliable base-load choices remaining in the U.S. for the near future for new power plants are nuclear and coal-fired power plants. Both of these choices utilize domestic energy resources sufficient for more than 100 years of electric power generation growth. Nevertheless, the U.S. must continue the R&D necessary to find new energy resource technologies for our long term needs and to continue improving current resource development and energy conversion. Advanced coal-fired power plant technologies are in development and/or demonstration phases for pulverized coal firing, fluidized-bed combustion (FBC) and integrated gasification combined-cycle (IGCC). Demonstration plants are in operation in the U.S. and show promise for future competitive power generation. Other clean coal technologies are being developed for multi-pollutant reduction in flue gas emissions. Efficient 502, NOx, and particulate removal systems have been proven. Mercury emission reduction technologies are in development at the pilot plant and demonstration stages. The potential global warming risk could affect future use of coal significantly. However, coal consumption and all emissions are reduced significantly with higher plant cycle efficiency. Stable regulatory requirements are necessary for prudent investment in new coal-fired power plants to predict financial risk. In addition, these regulations should be periodically reviewed for cost-benefit justification. More knowledge should permit elimination or relaxation of obsolete requirements that are wasteful. Public and media acceptance for new coal-fired power plants is necessary, particularly at the state and local level. These new power plants provide jobs and economic stimulus at most plant sites. Local acceptance has been common, but outside groups can adversely influence media and public acceptance. Factual information must be continuously supplied to the media and the public to make them better informed.

II. Introduction - ASME and Power Generation Background The 120,000 member ASME is a professional organization focused on technical, educational, and research issues of the engineering and technology community. The Energy Committee of ASME's Council on Engineering, comprised of mechanical engineers from industry, government, and academia, represents the breadth of knowledge in energy technologies in the United States. The ASME Power Division serves to provide ASME members with expertise in cutting-edge power generation engineering technologies. This position statement represents the consensus of these two ASME groups. Members of ASME conduct research and are instrumental in the development, design, and operation of technologies involving all aspects of energy resource extraction and conversion. As innovators and designers of many of the systems and eqUipment used in the many processes of power generation and conversion, mechanical engineers are well qualified to provide expertise on the many important issues facing the nation with regard to energy security. The ASME can assist government regulatory agencies in revising regulatory provisions to remove obsolete requirements and/or apply updated technologies.

Ill. Pulverized Coal-Fired Power Plants for Base and Mid-Range Load Demand

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Coal-fired power plants are not new to serve as base loaded and mid-range power suppliers. From inception, coal fired power plants served the power grid with base loaded reliable power. Even in the face of stiff competition from gas-fired combined cycle power plants, coal fired plants continue to provide cost effective base loaded power. Before 1970, coal fired power plants were free of most pollution-controlling devices and the cost of generating power was kept low. As the regulations regarding airborne pollution emissions from power plants grew ever stricter, coal fired plant owners were required to install such equipment enabling power generation with less environmental impact. These additions, however, temporarily made the cost of power production more costly than it had been. In the face of stiff competition from the high efficiency natural gas-fired combined cycle plants, coal fired plants lost an edge in the cost of fuel. Pollution technologies have become more cost effective and designs more standardized, reducing these cost burdens for the new coal fired plants. Plant outages have been reduced and the time between scheduled outages continues to increase. This allows the coal fired power plants to continue to serve the power grid during periods of mid-range power needs. Coal's value as a power plant fuel is greatly enhanced by its ability to supply power during peak power demand - as base power - and off-peak power demand. It is inherent in the design of coal-fired boilers that operation at steady loads is extremely well suited to the dynamics of the equipment involved. In addition, the newer coal fired plants and coal fired plants of tomorrow are well suited to load changes. This improvement in the design dynamics offer a greater ability to provide power in response to changing needs of the grid. With commercially available power plant components, an advanced bituminous coal-fired 750 megawatt (MW) plant can be built to achieve an efficiency of 40 percent or higher when using the most effective flue gas cleanup systems. Main steam pressure of about 4200 psig (pounds per square inch gage) and main and reheat steam temperatures of about 1100 degrees Fahrenheit would achieve this efficiency level. Today's plant design would include flue gas cleanup systems for particulate, 502, and NOx reduction. With electrostatic precipitators a particulate removai effectiveness of 99.95 percent can be achieved. A wet limestone scrubber can reduce the 502 with a removal rate of 95 percent. Low NOX burners reduce the NOx production, resulting in removal of 90 percent of the remaining NOx, using a selective catalytic reduction (SCR) system. These flue gas cleanup systems are commercially available and have long been used in power plants. Advanced pulverized coal-fired power plants provide load cycling capability, fast daily startups, and fast- sustained load response and load rejection capability. With these features an advanced pulverized-coal- fired power plant is well suited for mid-range power supply and supports the grid system to avoid blackouts. Besides advanced pulverized coal-fired power plants, pressurized fluidized bed combustion (PFBC) and IGCC power plants have been developed. A small number of these plants are in operation. They can achieve about the same efficiency level as advanced pulverized coal-fired power plants. Fluidized bed combustion is particularly good for burning biomass and other low quality fuels producing power while reducing biomass waste and utilizing fuels used for power. Integrated gasification combined cycle units can also burn oil residuals. Today's highest efficiency pulverized coal-fired units are supercritical pressure designs. Power plants with these boilers are ideally suited to producing reliable, cost effective power on a continual basis. Operated as base loaded or in some form of load following mode, having coal fired power as a significant portion of the power supply mix would maintain flexibility in the country's overall power supply and security of fuel supply from domestic sources. In summary: • Coal fired power piants have overcome the pollution challenges that face them and, with continued research and development (R&D) support from the Department of Energy, can overcome future environment challenges • Coal fired power plants prOVide low cost base loaded power to the grid now and into the future • Coal fired power plants have been continuously upgraded to provide more reliable power • Coal fired power plants will serve the mid-range needs of the power grid • Coal fired plants prOVide a much needed base to the needs of the power grid now and into the future

IV. Present Coal-Fired Power Plant Technology and Equipment Based on the "Pratts UDI Electric Power Plants Data Base," about 1,400 coal-fired power plant units are presently operational in the U.s. About 50 percent went into operation before 1970 and are therefore at least 35 years old. These older coal-fired units have an average power plant net efficiency of roughly 32 percent. In the 1970s the most efficient large coal-fired power plants were built, including a significant number of supercritical units. The average power plant net efficiency went up to about 36 percent in this decade. New advanced pulverized-coal-fired power plants with a net power plant efficiency of 40 percent or higher http://www.timesrepublican.com/page/content.detail/id/500693.html?nav=5065&showlayou...l 19/2008 The Power Of Coal/ Times Republican Page 4 of9

with flue gas cleanup systems are available. Older pulverized-coal-fired power plants have higher specific coal consumption (pounds of coal per kWh) and therefore discharge a larger amount of flue gas for each kWh generated. Improving the power plant efficiency reduces the fuel consumption as well as C02 discharge and emissions, all by the same magnitude. For further emission reductions, mainly electrostatic precipitators, scrubbers, and SCR systems are used. For particulate removal almost all coal-fired power plants are equipped with electrostatic precipitators or bag houses. Of the present coal-fired power plant capacity, only about 25 percent has been built or retrofitted with scrubbers. Less than 25 percent of the coal-fired plant capacity is equipped with 5CR systems. However, about 70 percent of the coal-fired U.S. power plant capacity has some primary NOx control such as 10w-NOx burners. Several multi-pollutant flue gas cleanup system pilot plant projects have shown promising results, including the potential for mercury removal. Much of the present coal-fired power plant fleet, which generates roughly 50 percent of the nation's electric power, is aging. Simply replacing old coal-fired power plants with advanced coal-fired power plants could significantly reduce coal consumption, C02 discharges, and emissions.

V. Flue Gas Cleanup Systems The following is a time line of flue gas cleanup improvements that have been implemented over a sixty- year time frame: 1930s: Particulate Removal Systems 1970s: Desulfurization Systems 1980s: Nitrogen Oxide Reduction Systems 1990s: Multi-Pollutant Reduction Systems

Particulate Removal Systems Particulate removal systems were first introduced to coal-fired power plants in the 1930s. Large pulverized coal-fired power plants are equipped with electrostatic precipitators or baghouses that remove the fine particles of ash entrained in the flue gas from the coal furnace. Ash removal from the flue gas is greater than 99.9 percent. Ash collected in precipitators or baghouses is removed, and either disposed of as waste or transported to cement and other plants that use fly ash.

Desulfurization Systems Coal contains carbon, hydrogen, ash, sulfur, and other components. Coal combustion produces S02, which is an air pollutant. In the 1970s, S02 removal systems (colloquially known as "scrubbers") began to be added to existing coal-fired power plants in the U.S. There are two types of scrubbers: The "wet" lime stone slurry scrubber, usually used with high-sulfur coal, is capable of about 98 percent S02 removal. The "dry" scrubber (actually a spray dry absorber), usually used with low-sulfur coal, is capable of about 90 percent S02 removal. Major design developments since then have resulted in improved reliability, and reduced capital and operating costs. Emissions of S02 from current coal-fired plants have been reduced by about one-third since 1970. Most coal-fired plants either have scrubbers or use coal with a maximum sulfur content of about 1 percent. A large amount of low sulfur coal is available from mines in Colorado, Wyoming, Utah, and Montana. Improvements in railroad shipping allow for huge, cross-country shipments to locations as far from the source as Georgia.

Selective Catalytic Reactor Systems for NOx Reduction Nitrogen Oxides are air pollutants mainly formed by the oxidation of elemental nitrogen during the coal combustion process. Major improvements to burners and furnace combustion have achieved about a 50 percent reduction in NOx formation compared to coal-fired plant performance about fifteen years ago. In the 1980s, coal-fired power plants were first equipped with SCR systems in Japan and Europe. The SCR system involves a simple process by which only harmless byproducts are discharged, mainly elemental nitrogen and water. Since the early 1990s, many U.S. coal-fired power plants have added SCRs, which have reduced NOx emissions from these plants by about 80 percent.

Multi-Pollutant Removal Systems Besides the already proven technologies of scrubbers and selective catalytic reactors, other cleanup systems have been developed. The latest developments are a number of promising multi-pollutant flue gas cleanup systems. Several pilot plant projects have been started and have shown promising results. One system, for example, has shown operational results with a high effectiveness of removing not only S02 and NOx, but also some mercury.

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Most electric power generation in the United States involves the use of fossil fuels, primarily coal (~50 percent), natural gas (~18 percent), and oil (-3 percent). Nuclear power (-20 percent) and renewable energy, chiefly hydropower (~7 percent), also are major electric energy sources. Coal is the most abundant fossil fuel on earth. Roughly 67 percent of the recoverable fossil fuel reserves worldwide are coal, followed by 19 percent for oil and 14 percent for natural gas. In the U.S., coal accounts for about 95 percent of the recoverable fossil fuel reserves. Coal reserves in the U.S. constitute approximately 30 percent of all the coal reserves worldwide. The National Mining Association estimates that U.S. coal reserves equal approximately 275 billion tons, which at current recovery and usage rates will last about 200 years. Our goal should be the most effective and clean use of this domestic energy resource, reducing our reliance on fuel imports. Uranium for use in nuclear power generation is available for hundreds of years, assuming the use of breeder reactors and fuel reprocessing. The United States possesses about 13 percent of the worldwide natural uranium reserves. A sharp spike in the number of natural gas-fired power plants began operating in the late 1990s, a result of low emissions, reasonable price, and regulatory uncertainty that inhibited the use of coal. In the past few years, however, supply versus demand has caused the price of natural gas to more than double. Worldwide, the natural gas reserves account for about 14 percent of the recoverable fossil fuels. U.s. supplies, however, account for less than 3 percent of the known recoverable fossil fuel resources. A further increase of the natural gas-fired power plant fleet is uncertain because of supply concerns. Uquified natural gas (LNG) supplies, obtained from international suppliers, are likely to increase, but safety, security, and environmental issues can complicate permitting of LNG shipping and terminals. Renewable fuel resources, such as solar and wind are limited by high costs and an inability to provide baseload (24/7) power. Hydropower is the most prevalent renewable energy supply, providing about 7 percent of the nation's total electricity supply. Wind power has some potential in the U.S., with cost subsidies. Oil reserves worldwide account for about 19 percent of the total recoverable fossil fuel reserves. However, in the U.S., oil reserves are less than 3 percent of the total fossil fuel reserve. Oil in the United States is primarily used for transportation; only 3 percent of the nation's electricity supply is fueled by oil. Based on the availability of domestic fuel for long term power generation in the U.S. the conclusion must be drawn that nuclear fuel and coal should be used. Renewable energy sources are not consistently available as a full time source of power and renewable energy facilities cannot economically replace the present coal-fired and nuclear power plants. Overall, the increasing demand for base load electric power can be satisfied by building mainly new coal-fired and nuclear power plants.

VII. Permitting Obstacles Permitting a new coal-fired electric generating unit is complicated, expensive, time consuming, and financially risky. The number of required permits varies, but typically, over 50 permits are reqUired, including air emissions, water consumption and discharge, waste disposal, road access, and transmission lines. However, usually, the most demanding permitting task involves the New Source Review (NSR) air permit. A NSR air permit must be secured prior to beginning construction of a new unit. Plant construction cannot begin until this key permit is obtained. The developer of a new coal-fired unit must prepare and submit a permit application that addresses all the essential elements of the applicable NSR permitting requirements. The NSR permit has detailed requirements that generally include: • Preliminary engineering to define plant performance and design to support the permit submittals. • A comprehensive analysis of the available coal boiler emission control technologies. • Detailed computer ambient air impact modeling to demonstrate that the project will not cause or contribute to a violation of a national ambient air quality standard. • Preparation of the permit application and supporting reports. • Responses to state and federal agencies questions. • Participation in public meetings, including presentation of expert testimony. In addition, environmental activists and other groups often file legal challenges, either during the permit review process or after this key permit is issued, that contest the state or federal agency action or the plant developer's proposed design, which the plant developer must settle in court. These legal challenges are often directed at the plant emissions being higher than the permitting requirements for "Best Available Control Technology (BACT)" or "Lowest Achievable Emission Rate (LAER)." These permitting requirements are not specific values, but are concepts that are open to debate. As a result, complicated technical, legal, political, and other issues are raised that extend the permitting, agency review, public hearings, and legal process. Recently, a minimum of about 24 months was required by one project to obtain these permits, but another project is still pursuing the needed permits after 36 months. The expense for the NSR varies considerably, but ranges between $15 million and $30 million. The extended time reqUired for the NSR and other permits, and the associated large permitting expense, represents a major financial risk to http://www.timesrepublican.com/page/content.detail/id/500693.html?nav=5065&showlayou...l /9/2008 The Power Of Coal I Times Republican Page 6 of9

building new highly efficient coal-fired power plants. The main air permitting activities are briefly described as follows;

Air Permitting Overview The pre-construction air emission permitting process is called New Source Review, and is required whether the coal-fired unit will be located in an attainment area, i.e., an area that complies with the national ambient air quality standards, or a non-attainment area (NAA). A new coal-fired unit located in an attainment area will be subject to the prevention of significant air quality deterioration (PSD) requirements, while a new unit located in a non-attainment area will be subject to the NAA New Source Review requirements. The PSD permitting process requires a comprehensive evaluation of potential emission control technologies as well as an evaluation of the project's potential impact on the surrounding ambient air. To obtain a PSD permit, the applicant must; 1. apply the BACT; 2. evaluate potential ambient air quality impacts; 3. not adversely impact a Class I area; and 4. undergo adequate public participation. Non-Attainment area pre-construction review requirements are similar to the PSD requirements, except: (1) the emissions control requirement is the LAER; (2) the applicant must obtain emission offsets from other sources impacting the same area; and (3) the applicant must certify that all other sources owned by the applicant in the State are complying with all applicable requirements of the Clean Air Act (CAA). The developer of a new coal-fired plant must submit to the appropriate permitting authority a NSR pre- construction permit application that includes a detailed description of the proposed project and addresses all the essential elements of the PSD or NAA permitting requirements. The application will be scrutinized by the permitting agency, and will form the basis for emissions limits included in the facility's draft permit. Once a draft permit is issued, the permit application will be available for public review and comment. In general, the permitting authority issuing a NSR permit is required to provide adequate documentation of its determinations, and to make a reasoned decision based on a comprehensive review of the available technical information. Incomplete permit applications can prompt agency questions and can trigger lengthy agency reviews, as well as increase the number of issues potentially subject to challenge and review. Any new major stationary source subject to PSD must conduct a BACT analysis. The BACT analysis is one of the most important parts of the applicant's PSD permit application, and is subject to careful review and scrutiny by the permitting agency and the public. It is imperative that the permit application includes a comprehensive analysis of the potentially applicable control technologies and a thorough site-specific evaluation of the technical feasibility and effectiveness of each control system. The BACT is defined as an emission limitation based on the maximum degree of reduction of each pollutant subject to regulation, which the permitting authority determines is achievable for such facility, including fuel cleaning, clean fuels, or treatment or innovative fuel combustion techniques for control of each such pollutant. The definition of BACT clearly requires a comprehensive review of pollution control technologies, but neither the statute, nor regulations developed to implement the statute, specifies how BACT should be determined. Rather, the BACT process has been developed through EPA guidance documents and case- by-case reviews. In order to provide applicants and permitting agencies a consistent basis upon which to prepare and evaluate BACT determinations, EPA published the New Source Review Workshop Manual ("NSR Manual"). The NSR Manual describes in detail EPA's "top-down" process for determining BACT under the PSD provisions. The PSD applicant first examines the most stringent alternative, and that alternative is established as BACT unless the applicant can demonstrate, and the permitting authority in its informed judgment agrees, that technical considerations, or energy, enVironmental, or economic impacts, justify a conclusion that the most stringent technology is not achievable in that case. Although the BACT process described in the NSR Manual is not a mandatory methodology or binding regulation, it remains the primary gUidance document for anyone preparing a BACT analysis. Using the top-down approach will help the applicant identify potential control technologies and ensure that the applicant thoroughly evaluates the technical and economic feasibiiity of potential control options. More importantly, a top-down BACT approach will help build an extensive administrative record and should yield a defensible BACT determination. In general, a top-down BACT analysis involves the following steps for each pollutant: 1. Identify all potential control technologies; 2. Eliminate technically infeasible control options; 3. Rank the remaining control technologies by control effectiveness;

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4. Evaluate the control technologies, starting with the most effective for economic impacts, energy impacts, and environmental impacts; 5. Select the BACT The BACTanalysis is a critical component of any permit application because the BACT analysis forms the basis for control technology selection, modeling inputs, and emission limits. Objections to proposed coal- fired plants often focus on the adequacy of the BACT analysis.

VIII. Clean Coal Technology Development The Department of Energy's Office of Fossil Energy, in partnership with the coal and power industries, has been developing and implementing advanced technologies to ensure continued low-cost, clean energy for the nation. Fossil Energy's Coal Power Research, Development, and Demonstration (RD&D) Program integrates core R&D technology development activities (e.g., advanced gasification, fuel cell and fuel cell/turbine hybrids, innovations for existing plants, carbon capture and sequestration, advanced materials research, oxygen and hydrogen production) with larger scale activities such as the Clean Coal Power Initiative and FutureGen to develop clean coal technology for widespread commercial use. The DOE Clean Coal Technology Roadmap, developed as a joint project of DOE, the Electric Power Research Institute (EPRI), and the Coal Utilization Research Council (CURC) was completed in 2003. It defines specific technology performance targets for future energy plants that use coal to produce electricity and, when economically feasible, transportation fuels and other valuable products. Private and public sector technology research and development is focused on both the existing fleet of coal-fired power plants and future near-zero emission plants. Performance targets for these plants were cooperatively developed by DOE's National Energy Technology Laboratory, CURC, and EPRI. There are many candidate approaches to meeting the long-term need for near zero-emission coal plants. Innovative combustion technology can use oxygen combustion processes to better enable the capture of C02. Coal gasification allows for the production of multiple products such as electricity and transportation fuels and allows feedstock flexibility. Hybrid concepts such as combined combustion and gasification, or power generation components such as fuel cells and combustion turbines, can achieve high system efficiencies. Environmental performance targets for new coal-fired plants have been established for 2010 and 2020. Economic performance targets are also defined. The Roadmap allows for the development of a portfolio of technologies to meet the range of applications, and anticipates constraints for future U.S. en"rgy systems.

IX. Infrastructure, Coal Mining and Transportation, Electric Transmission Coal is the most abundant economical domestic energy resource for U.S. electric power generation - sufficient for hundreds of years. The U.S. exports coal, while importing other fossil fuels. Coal is relatively inexpensive to mine and transport by rail to U.S. electric generating plants. The coal mining and rail transport systems have been expanded as needed for more than a century and cover the lower 48 states. For new coal-fired power plants, a modest expansion of this infrastructure investment will be required. Alternatively, more mine-mouth power plants can be built to prOVide "coal- bY-Wire" electric energy, requiring additional high voltage transmission lines. The lower 48 states of the U.S. include 3 independent electric transmission systems - Texas, western U.S., and eastern U.S. These systems are among the highest reliability systems in the world. Since the three systems are not synchronized with each other, transfer of energy between systems is accomplished on a small scale by AC to DC to AC transformation. The addition of new power generating plants in each system requires additional transmission capacity at high voltage to maintain the high reliability we require and to minimize energy loss. The transmission infrastructure has been developed over the past century and can be expanded economically by adding more lines and/or by increasing transmission voltage of existing lines in many areas. Reliability improvement is a continuing goal.

X. Financing and Risks Coal fired power plants require investors and lenders to commit to financing projects with investment recovery times of up to 40 years. In addition, there are long lead times for permitting and construction before the piants begin production. For financing to be obtained at competitive rates over these timeframes the outlook for the marketing of the output and the operational constraints must be fairly stable. The public policy environment has much to do with the stability of both fuel and operating costs over the iife of the plant and can affect the financing costs dramatically. The risks inherent in developing each project of this magnitude include competitive threats from new generation technologies or distributed generation, discovery of additional environmental hazards from coal generation requiring costly additionai equipment, and a potential for a drastic drop in demand due to more efficient technologies being applied to end user applications (lighting, motors, etc.). Analyzing and developing a business case for a coal-fired plant requires predicting many factors farther into the future than the normal investment recovery period. Fuel costs and availability must be projected forward over http://www.timesrepublican.com/page/content.detail/id/500693.html?nav=5065&showlayou...1 /9/2008 The Power Of Coal I Times Republican Page 8 of9

the life of the plant. Doing this requires predicting whether alternate technologies could affect the fuel supply, predicting the environmental effects of the fuel, and predicting the political and social climate for the years ahead. Alternate technologies could affect the fuel supply either by making it easier and cheaper to mine the fuel or conversely, by diverting the present supply to other uses such as through gasification or conversion to liquid fuel. The laws of supply and demand would obviously cause price movement to occur. Permitting and site selection need to be approached in a rational way. The current process requires the project developer to coordinate between the various governmental agencies that many times have conflicting requirements. The time reqUired for this delays construction and therefore inflates the cost of the plant. Changing environmental regulations affect the long-term viability of coal-fired power projects. While recognizing the legitimate environmental risks associated with coal, the regulations and requirements for coal fired plants need to be well defined. Determining the required flue gas emission reduction technologies to be used and then allowing the plant to operate for enough time to recover the costs associated with installation and use of the technologies should be a commitment at the time the operating permit is issued. If new emission regulations are applied after the operating permit is issued, a shorter period of cost recovery should be considered. In addition, requiring plants to change technologies or add additional equipment needs a systematic approach, preferably with an economic analysis and survey of benefits. These changes need to be applied across the board so that there is a level playing field for generators if competitive markets are to develop. Financing coal-fired projects requires that the markets perceive a risk commensurate with return. At about $1500/kw capacity, these projects can range from $450,000,000 for a 300 MW unit to over a billion dollars for a 700 MW unit. An investment of this magnitude for a time frame of 40 years reqUires that investors perceive a stable and rational atmosphere and have confidence in legislators and administrative rule makers. Much can be done to improve the atmosphere so that development of coal-fired plants is encouraged while haVing a minimal effect on the environment through the encouragement of rational rule making and government controls. Tax credits for new plants, especially for the environmental eqUipment, are needed. Ways to reduce the financing risk include implementation of tax credits for generation that meets a minimum efficiency criteria and cleanliness criteria for key pollutants. In addition, relief from future unknown costs for environmental regulations changes can be given through tax credits or accelerated depreciation. Active measures need to be taken to keep coal generation viable by keeping the financial risk at levels similar to other business investments.

XI. Public and Media Acceptance Much of the public perceives coal-fired plants as polluting blights on the landscape. This reputation is somewhat derived from the methods of operation of these plants prior to the implementation of the Clean Air Act. Coal-fired generation is sometimes portrayed as a high polluting process that can be replaced with non-polluting renewable technologies within a short time span. Considering that coal currently makes up 50 percent of the generating capacity of the United States, that is unlikely. Considering the huge United States coal reserves, it would be a strategic error to avoid using coal for new electrical generation. The main points of contention with coal-fired plants are the emissions and the ancillary effects of the process such as fly ash disposal and the environmental effects of coal mining. Much has been learned in the last 20 years about ways to deal wit'" these issues in an enVironmentally sound manner. New, more efficient power plants produce fewer emissions per kWh generated, making their construction more attractive. Public perception of new coal-fired plants can be changed through education. Highly efficient plants with best available pollution control technology will reduce existing pollution levels by burning less coal per megawatt-hour produced, capturing most of the pollutants prior to release, while allowing additional capacity to be added in a timely manner. A purposeful program to educate the public on the true benefits of coal generation is essential and should be performed by the power industry with the support of government.

XII. Conclusions The Energy Committee of the ASME's Council on Engineering and ASME's Power Division strongly support the construction of new coal-fired power plants in the U.S. to meet the need for growing base-load demand, to ensure a diversity of base-load power supplies, to ease increasing reliance on natural gas to fuel power plants, and to decrease overall pollutant emissions per unit of GDP growth. Coal is the most abundant and inexpensive fossil fuel energy resource in the U.S. for the next century and it is the only competitor for nuclear power for base-load (24/7) power generation, if oil and natural gas prices remain at or above current levels. The technology and infrastructure is proven and available. The economic competitiveness of the nation requires low cost, reliable electric power. Fuel supply security

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and a desire to reduce our reliance on imported fuels suggest that it would be prudent to utilize our domestic resources of coal and uranium for the foreseeable future. Hydropower and other renewable energy sources will continue to provide niche energy applications. New base-load electric power generating plants are needed to meet the demand for capacity growth and GDP growth - and to replace aging, inefficient plants. Clean coal technologies and more efficient energy conversion cycles are now available for use in economical and reliable coal-fired plants. This will significantly reduce overall emissions of S02, NOx, and particulate pollution, and the emissions of C02 per unit of GDP. In the event that global warming requires total C02 emissions elimination, all fossil fuel combustion would be phased out for power generation and for vehicle transportation. However, persuasive evidence for this drastic step is lacking. Additional technologies, currently in the development stage, should reduce C02 emissions even more and the development of these technologies should be supported as a matter of public policy. In summary, the low cost of coal, its abundance in the United States, proven technologies, and existing infrastructure, make the use of coal for power generation a strategic imperative.

This position statement represents the considered views of the Energy Committee and the Power Division of ASME's Council on Engineering, and does not necessarily reflect the views of ASME as a whole.

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ENERGY,fromPage 1A mendations that would speed OI1llWaI'S Il!!DlIl!!~mJl1 Sl1IIlID~II:Il!!S our transition to a safer and Iowa imports 95 percent of its energy from outside the state. ergy," Culver said in a state- cleaner energy economy/' Coal produces most of the power and the majority of ment Friday. said Nathaniel Baer, energy greenhouse gases. The "Plan for Energy Inde- analyst for the Iowa Environ- pendence" is a tall order. mental Council. "We especially Ioom. (!lID lID1lJJOO l!IJ,'l,J The report calls for sharp applaud the move to cut green- Coal I 22.5% cuts in greenhouse gas emis- house gases by 80 percent." 40.2% sions even as Iowa regulators Of the greenhouse gases goal Petroleum I consider approval of two new and the proposed coal plants Naturalgas I 118.8% 22.9% in Marshalltown and Waterloo, coal-burning power plants at Renewableenergy 04.5% 6.2% Marshalltown and Waterloo. Baer said, "It would certainly Culver is still collecting in- be easier to achieve those cuts Nuclear 04.2% 8.2% formation on the plants and without building the two coal Notes: Renewable energy includes hydropower, geothermal, solar, wind hasn't taken a position on plants." and biomass. Figures do not add up to 100 percent because of rounding. them, said his spokesman, The Sierra Club also wel- Brad Anderson. Previously, comed the report from Cul- !PlClWlPJ~ ~~«I1Ill'iJII:I1II:mn lPJlIll'iJDils IIll'iJIIIlS~ II:Z~1lD11II1Ill Culver and energy-indepen- ver's staff. dence director Roya Stanley Coal-generated electricity contributed 96.7 percent of Iowa's have said that Iowa will need Ryan Stensland, a spokesman carbon dioxide emissions in 2006. Nuclear, hydroelectric to bum coal for the foresee- for Alliant Energy, which has and other renewable sources emitted little to none. able future to meet growing proposed the Marshalltown ELECTRICITY GENERATION IN 2006 demand for electricity. plant, said the new plant, Utilities' say the new power combined with new wind ~ (JljJ!IlIimlmJi1JiilJlWIIJ plants bum cleaner, reducing power, would reduce carbon Coal Wi m"J 39,256 overall emissions by replacing dioxide emissions by 2 per- dirtier sources of power. cent by 2013. Alliant soon will Nuclear 011.2% o Coal is the top emitter of get 6 percent of its power from Otherrenewables 05.4% 11 greenhouse gases, but utilities renewable sources, he said. 1,055 say they cannot meet demand Stensland said his utility op- Naturalgas 05.3% for electricity reliably and af- poses state energy efficiency Hydroelectric .02.0% o fordably without coal-burning standards. But the company 255 plants at this point. would support reasonable Petroleum 10.5% Gronstal said Iowa is likely to federal standards because Note: Other renewables category is primarily wind generation. become the wind power capi- they would be uniform across Source: Iowa Planfor EnergyIndependence THEREGISTER tal of the United States soon, the country. but he said that "coal will be Alliant now spends $40 per ruiJillIl1'l9 ~I9II:I1IIII1J1III1J1II9I11l«!lal~DillIII1lSDIJll~Il1lQlIJlln:m1Jll part of the energy mix for at customer for energy efficien- o Allowthe IowaDepartmentof NaturalResourcesto considera least the next 10 years." cy rebates and related work, facility'sgreenhouse gas emissionswhen consideringwhetherto compared with an average of approveair permits. Relative to other states, Iowa $30 among Iowa utilities, but o Set numericgoalsfor cost-effectiveenergyefficiencymeasures. has low requirements for re- struggles to get customers to o Requireutilitiesto providemorerenewableenergyand provide newable power, such as wind, sign up, Stensland said. The and the state has no emission cost of utilities' efficiency incentives. standards for motor vehicles. programs are covered by o EncourageIowaproductionof cost-effectiverenewableenergy. Stanley; Iowa's first energy- customers. o Accelerateproduction,distributionand use of renewablefuelsforall independence director and Allan Urlis, spokesman for transportation inIowa. Culver's lead aide on the issue, MidAmerican Energy, said his o Directpowercompaniesto increase energyefticiencyefforts,with was not available Friday for utility at the end of next year increased education. comment on her report. Her will get 18percent of its power o Requireenergyaudits and energy-efficiencyprojectsat all aides declined to comment on from renewables, mostly wind. state-owned buildingsand newenergystandards fornewbuildings. the recommendations. MidAmerican opened a more o Encouragetelecommuting,ride-sharingand use ofpublictransit by Their work comes as other efficient coal plant in Council state employees. state committees consider Bluffs this year. The utility's o Improvepowerlines,pipelines,railroads,trails,and roads neededfor recommendations specifically energy efficiency programs on greenhouse gas emission ha\(e saved enough power to energypurposes. reductions and aid for inno- serve 400,000 homes. o Developand enforceenergycodes fornewand oldbuildings,and provideincentivesforprojectsthat exceedthe minimumrequirements. vative energy projects. Reporter Perry Seeman ean be "The plan includes a lot reached at (5151284-8538 or READTHEREPORT:Youcan readthe entireenergy-independence of forward-looking recom- [email protected] report at www.energy.lowa.90v/DEI/docs/Flnal_Plan.pd1. \ Iowa energy independence plan unveiled I DesMoinesRegister.com I The Des Moines Reg... Page I of 4

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Questions about the new sl,te? C1i~Is__here. 1..... - klon~"J* _CoO ...... ""'M'h'c • Iowa energy independence plan unveiled ~_--"""-....•. BY PERRY BEEMAN· REGISTER STAFF WRITER· DECEMBER 14,2007 ----m·...-..,..... Read Comment.(5) Recommend Print this page E-mail this article --- PowerfnlDCI Qa'; ...... SHARE THIS ARTICLE: DeLicia.us Facebook Oi99 Reddit Newsvine What'sthis? .,.'II!:ttI.e.oto'lo

tUC113Ctl U-MQ.... lowa?s new energy-independence plan, released Friday, calls for Califomia-style emissions standards for -- new cars sold in Iowa, massive cuts in greenhouse gas emissions, new renewable-energy and energy- _ Ii efficiency requirements for utilities, a bigger push for renewable fuels and a congratulatory labeling system ... . for energy-efficient buildings. ar..,.,...,. .~ lu=rou .'i ~ It. The Iowa Office of Energy Independence was created to recommend ways Iowa could become energy ~ iii independent by 2025. As it is, 95 percent of the state?s power comes from outside sources, a figure that has Clro.--....__ _.Uof_ changed little in 25 years, the report says.

The work is a tall order, The report calls for greenhouse gas emissions reductions as Iowa regulators. ftDVERTISEt- consider approval of new coal-buming power plants in Marshalltown and Wate~oo. Gov. Chet Culver and energy director Roya Stanley have declined to take positions on the Wate~oo and Marshalltown projects, but have said that coal use is unavoidable at this point.

In addition, lowa?s wind power has grown, but in a climate with relatively low requirements for renewable power. And the state has no vehicle emission standards at this point, regulations that could raise the price of cars.

The recommendations to the Iowa Legislature, which will be updated annually, include FlDVERTISEt-lENT these policies::

-Join 16 states that have adopted or are considering adopting the Califomia emission standards for passenger vehicles.

-Set standards to reduce greenhouse gas emissions 80% by 2050.

-Encourage Iowa production of cost-effective, renewably-generated electricity.

-Accelerate the infrastructure development and use of renewable fuels for all transportation in Iowa.

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-Direct power companies to increase energy efficiency efforts, with increased education. more ne !owa ener.9Y -Order the Iowa Department of Natural Resources to consider a faciility?s greenhouse Boswellend gas emissions when considering whether to approve air permits. Jury finds M

-Mandatory energy audits and energy-efficiency projects at all state-owned buildings, and new DukeofficiaJ energy standards for new buildings.

-Encouragement of telecommuting, ride shares and use of public transit by state employees.

-Plan improvements to power lines, pipelines, railroads, trails, and roads needed to promote energy independence.

-Set numeric goals for cost-effective energy- efficiency measures.

-Require utilities to provide more renewable energy, and provide incentives.

-Develop and enforce energy codes for new and old buildings, and provide incentives for projects that exceed the minimum requirements.

-Adopt a new labeling system for residential, commercial and industrial complexes that promotes energy efficiency achievements.

?Energy independence is essential for lowa?s environment and our economy,? wrote Gov. Chet Culver and Lt. Gov. in a letter included in the report. ?Our rich tradition of innovation has shown us that Iowa truly is a state of unlimited opportunity? now, more than ever.

The report by energy-independence director Roya Stanley and colleagues says: ?In moving to energy independence, the active engagement of every Iowan will be sought as the state works in partnership with others in achieving the goals.

Iowa can also show the nation how to effectively address the critical, complex challenges of shifting to a secure energy future of affordable energy, cost-effective efficiency, reliance on sustainable energy, and enhanced natural resources and environment.?

?Charting our own course will allow Iowa to manage its economic destiny while protecting our environment, while creating new, ?green collar? industries in every comer of Iowa.

Today Iowa is in a remarkable position to capitalize on the current situation globally and at home.

Energy drives the economy and has impacts on the environment, undeniable links that are integral for energy security and independence. With the resources available within the state, the combination of significant global changes in energy and research leading to new technologies that continue to drive down the costs of sustainable energy, Iowa can take bold strides toward the goal of energy independence by 2025.?

The report also calls for campaigns that take environmental protection into account. Stanley said clean energy from domestic sources should also cut water and air pollution.

in your voice READ REACTIONS TO THIS STORY n stlouisclone wrote: http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=20077 I2140 16 12/14/2007 Iowa energy independence plan unveiled I DesMoinesRegister.com I The Des Moines Reg... Page 3 of 4

Testing emissions on autos in my opinion is nothing short of a fraud. I have lived in Kentucky and Missouri, both of which have these 'tests' in place. All it really amounts to is a way to single out poor- performing cars, whose owners can't afford to have them fixed anyway. People drive a 1979 pos because they can't afford a better car let alone fixing their current one in many cases. Try to run this test for tractors. Let's see how far that goes ... I may be wrong but I think there are probably a few tractors in Iowa that could use upgrading. That will never go anywhere because then the farmers will get upset. They have voice, but people these new emissions standards will impact would not have that same voice in Iowa's government. 1211412007 12:00:34 PM Recommend Repor:t.~buse

thefulure wrote: DonRupert - and those culprits would be? Think on this, 100 pennies D form a dollar, which do you think you'll have a better chance at finding laying around? Finding up 100 pennies laying around in different spots or 1 dollar bills laying around. The point is it's a start, it's small but everything counts towards the real goal. I think it's a great step but I would like to see the wind industry continue to pick up steam and keep rolling. The southeastern part of the state and most recently Newton have secured large companies, however we have hundreds of communities throughout Iowa that have lost companies/jobs yet still have a large amount of able and willing and skilled workers. I think the Ethenol & bio-diesol boom, along with hopefully a wind influx will prove Iowa is at the forefront of change. 1211412007 11 :54:48 AM RecQmmend (,1) Report Abuse

OonRupert wrote: Gawd this is disgusting ... Get it through your heads people, cars are D a TINY part of the issue. Its nothing more than a smoke screen (pardon the poun) for the real culprits. 1211412007 11 :42:56 AM Recommend Report Abuse

lucinda wrote: M Promoting the coal plants in Marshalltown and Waterloo demonstrate ~ more concern about upsetting a couple of businesses than we are about energy independence. While the Gov has made good progress on the issue so far, he will really need to get some cohunes to keep from becoming just another middle manager for Mid America and Alliant...like the previous Governors. (see) Vilsack ..."1 don't recall how much MidAm is paying me for my consulting work". We need a very BOLD vision from our leaders ...and we need that same leadership in order to back off the monopolies, both electric and petro, to make room for new entrepreneurs and new technologies. I'm not sure Iowa is up to the task, or opportunity. The stakes are too

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serious for us to continue the business-as-usual, semi-corrupt relationships. It is not about just making profit, it is literally about the future of the planet. Read the SCIENCE ...and then pray if you'd like. http://www.sciencedaily.com/releases/2007/12/071213101419.htm 12/14/2007 11:23:29 AM Re",ommen~_U) Repp[l.Abuse

bsf072 wrote: A good start would actually be a step backwards--why not demand D the old vehicles in the state become emission-compliant? Requiring emissions laws on new cars doesn't really fix the real problem of old gas-spewing smoke-blowing vehicles we have on the road today. I would gladly pay $25 a year to put my vehicles through emissions tests. If they're not up to snuff, then I need to get them in proper working order! 12/14/200711:19:03AM Re.commeD.~..(2) RepOrtAbuse

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Advocates say the power that coal is a chief contributor source will improve by to climate change, with emis- I sions that also cause lung ail- trapping emissions. ments and prematLire deaths. Lucas said the industry will BV PERRY BEEMAN succeed in storing carbon, just } REGISTER STAFF WRITER as it responded to pressure to A coal-industry group has cut sulfur diQXide emissions predicted that power plants at the height of concern about will be able to capture signifi- acid rain. He noted that the cant levels of carbon-dioxide government eventually moved emissions within the next to tighten regulations on those couple of decades. emissions and could set limits Americans For Balanced En- on carbon, eventually, too. ergy Choices - financed by Those discussions have start- power companies. coal firms ed in Congress already, and and coal-shipping interests Iowa has a task force looking - launched a campaign that storing and monitoring it." Iowa, which gets 78 per- at ways to cut greenhouse-gas calls on presidential candi- Most industry experts say cent of its power from coal, emissions in the state. ,. dates to support coal as a do- it could be decades before is in the middle of both the Any new technology has to , mestic fuel good for national large-scale carbon-capturing presidential campaign - with make financial sense and be security and increasingly systems are in place. How- the state's first-in-the-nation re,!dily applicable in China, cleaner to burn. ever, NASA climate scientist caucuses - and the debate India, and other fast-develop- Joe Lucas, the group's ex- James Hansen has said the over how much power should ing countries with major coal- ecutive director, said at a Des Earth's climate is reaching a come from coal. Nationally, burning emissions, Lucas said. Moines news conference that "tipping point" beyond which coal accounts for about half "We have to make it easy for pilot projec1s to s10re carbon it would be difficult, if not of electricity produced. the Indians and Chinese to dioxide from coal plants impossible, to reverse the New coal plants are pro- use the technology," tie said. underground are under way damage of climate change. posed in Marshalltown and "Otherwise, we'll cut emis- - and promising. "We have a Hansen wants governments near Waterloo. sions here and they won't." 900-year reservoir, if you will, to block any new coal plant Supporters say coal is cheap Reporter Perry Beeman can be for storing carbon. We are that doesn't capture its carbon and plentiful and more reli- re.ched el (515) 284-8538 or putting it back underground, emissions. able than wind. Critics note [email protected] I c I I ) ( ) ( ) www.desmoinesregister.comIPrinter-friendly article page Page 1 of2

December 11, 2007 Utility: Emission levels will drop

By PERRY BEEMAN REGISTER STAFF WRITER

Interstate Power and Light Co., the Iowa subsidiary of Aliiant Energy Corp., on Monday predicted that its system-wide emissions would drop when its proposed Marshalltown power plant goes into operation in 2013.

Opponents of the planned coal-burning plant disputed the utility's claim and said Alliant had predicted in September that its emissions would increase. . Interstate said the combination of opening a more-efficient coal-fired plant and the installation of up to 200 megawatts of electrical generating capacity powered by wind would lead to the cutback in emissions, some of which would contribute to global climate change. That combination also would save customers money, the utility contended.

Overall, the Interstate Power plan would cut carbon dioxide emissions by nearly 443,000 metric tons. The new efficiency would be like taking 100,000 cars off the road for a year, saving 50 million gallons of gasoline or saving enough power to serve 56,000 homes for a year.

"Doing nothing is not a reasonable long-term option for our customers, shareowners and environment," said Tom Aller, president of Interstate Power, which would build the Marshalltown plant.

"Our company has an obligation to serve customers and future generations of Iowans with safe and reliable energy service. Our long-term generation plan, which includes the addition of a highly efficient generating station, with hybrid technology and wind generation, balances the need to meet our consumers' growing demand for energy and enhances economic development opportunities while mitigating its impact upon the environment."

Critics of the proposed plant called Interstate Power's statement "voodoo math" and suggested that it contradicted the company's predictions issued in September.

"I see no enforceable commitments that would come even close to that in their earlier testimony," said Carrie La Seur of Plains Justice, which is representing plant opponents.

Nathaniel Baer, who follows energy issues for the Iowa Environmental Council, another environmental group, said Alliant's own September 2007 report predicted an increase of nearly 40 percent in carbon dioxide emissions companywide from 2006 to 2015.

Ryan Stensland, an Alliant spokesman, said those figures were Alliant's companywide figures and not figures for the Interstate Power's portion of the company's operations. Those figures also did not include the added wind power, he said.

Baer said, "These so-called reductions are only created by comparing coal plants. If Alliant built no new coal and met Iowa's needs with clean energy, like wind, solar and energy efficiency, then we would see real and significant reductions in greenhouse gases."

Interstate Power plans to build up to 200 megawatts of wind power and would own 350 megawatts of capacity at the proposed Marshalltown power plant, called the Sutherland Generating Station.

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In a filing with the Iowa Utilities Board, which is considering whether to grant permission for construction of the plant, the utility contended that adding no capacity to Interstate Power's system would create higher emissions in 2013. The new plant would replace electric purchases the utility would make from plants with higher emissions, Interstate Power reported.

The new Marshalnown plant and the added wind energy would cut emissions of sulfur dioxide, nitrogen oxide and carbon dioxide, the utility reported. The new plant also would increase the reliability of Interstate Power's electrical system, the utility said.

Environmental groups have protested the proposed coal plant, calling it unneeded and ill-advised. The groups have pushed, instead, for added wind power, conservation and other sources of electrical generation.

Reporter Perry Beeman can be reached at (515) 284-8538 or [email protected]

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December 8, 2007 Alliant plans to build wind farm in Hampton area The utility would spend about $440 million to put turbines in farm fields in the Hampton area.

By WILLIAM RYBERG REGISTER BUSINESS WRITER

Alliant Energy plans to spend up to $440 million to develop a wind turbine electricity-generaling operation in the Hampton area in north-central Iowa.

The wind farm could produce up to 200 megawatts of electricity by 2010. enough to power 50,000 homes, the company said Friday.

The project is the latest in a string of wind energy developments in Iowa, including wind turbine farms and the manufacture of wind turbine equipment.

''We are blessed with wind in Iowa," Gov. Chet Culver said at a news conference announcing the project.

Tom Aller, president of Alliant's Cedar Rapids division, said the wind generation is critical to the utility's long-term generation-growth strategy.

Culver praised the project as another step toward making Iowa the renewable energy capital of the nation.

Other recent developments include plans announced last month by TPI Composites of Warren, R.I., to establish a 500-employee factory in Newton to manufacture wind turbine blades.

Alliant said the wind development site is being purchased from Missouri-based Wind Capital Group, a wind energy development company that had acquired leases and conducted feasibility studies for the project.

The purchase price wasn't disclosed.

Alliant approached Wind Capital about buying the site, said Ryan Stensland, an Alliant spokesman. The purchase includes the leases and studies, Stensland said.

The project would include about 130 towers on 130 locations owned by about 80 landowners.

Kim Zuhlke, an Alliant vice president, said towers are usually built on leased 0.1-acre sites in farm fields. Farmers are able to continue farming around the towers.

Iowa has about 30 wind farms in operation, with another five under construction, according to the American Wind Energy Association in Washington, D.C.

About 5.2 percent of the state's electricity is produced by wind, said Shawn Rolland, a spokesman for the Iowa Department of Economic Development.

Alliant gets about 255 megawatts of electricity from wind, about 4 percent of its total generating capacity.

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Reporter William Ryberg can be reached at (515) 284-8104 or [email protected]

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December 7, 2007

Alliant plans $440 million wind farm near Hampton

By WILLIAM RYBERG REGISTER BUSINESS WRITER

Alliant Energy's Cedar Rapids-based division plans to spend up to $440 million to develop a wind- turbine electrical-generating operation in the Hampton area in north-centrallowa.

The wind-turbine farm could produce up to 200 megawatts of electricity by 2010, enough to power 50,000 homes, Alliant said.

The project is the latest in a string of wind energy developments in Iowa, including wind turbine farms and the manufacture of wind turbine equipment.

Among the others: Plans announced last month by TPI Composites of Warren, R.I., to establish a 500-employee factory in Newton to manufacture wind turbine blades.

The latest Alliant project was announced by division president Tom Aller at a news conference Friday in Des Moines.

"Wind generation is critical to our long-term generation growth strategy," Aller said. Gov. Chet Culver, speaking at the conference, praised the project as another step toward making Iowa the renewable energy capital of the nation.

Iowa currently has about 30 wind farms in operation with another five under construction, according to the American Wind Energy Association in Washington, D.C.

About 5.2 percent of the state's electricity is now produced by wind, said Shawn Rolland, a spokesman for the Iowa Department of Economic Development.

Alliant said the wind development site is being purchased from Missouri-based Wind Capital Group, a wind energy development company that had acquired leases and conducted feasibility studies for the project.

The purchase price wasn't disclosed.

Alliant approached Wind Capital about buying the site to add to the utility's wind operations, said Ryan Stensland, an Alliant spokesman. The purchase includes leases for tower sites and preliminary work such as project studies, Stensland said.

The project would be made up of about 130 towers on 130 locations owned by about 80 landowners.

Alliant currently gets about 255 megawatts of electricity from wind, about 4 percent of its total generating capacity.

Kim Zuhlke, an Alliant vice president, said towers are usually built on leased one-tenth of an acre sites in farm fields. Farmers are able to continue farming around the towers.

Culver also was asked if he supports another proposed Alliant project, a 630-megawatt coal-fired generator that would be built in Marshalltown.

The project has drawn opposition from some environmentalists and others. http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=2007712070n &template=... 12/11/2007 www.desmoinesregister.comIPrinter-friendly article page Page 2 of2

Reporter William Ryberg can be reached at (515) 284-8104 or [email protected]

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802 South Center St. MarshalDown, Iowa 641-752-4525 I~L~!9t~§f!U HOME I NEWS I SPORTS I COMMUNITIES I VIRTUAL NEWSROOM CLASSIFIEDS US Friday, November 30,2007- Time: 7:10:25 AM CST Search our 7-day archive of stories: Disagree with opinion on Nobel winner BYTodd Stabenow, Marshalltown c: [ Submit II Reset I SE On Oct 30, the Times-Republican presented its opinion regarding Mr. Gore GWebExtras and the "politicized nature" of the Nobel Peace Prize. I would first like to mention something you may be unaware of. If you go to www.NobeIPrize.org you will find that the 2007 Nobel Peace Prize was • Home page awarded to the IPCC and Al Gore, notably in that order. The International • Local News Panel on Climate Change is comprised of over 450 lead authors from 130 • Local Columns • Money and Markets countries, 800+ contributors and 2500+ reviewers. Three of them are Gene • Central Iowa Today Tackle, Bill Gutowski and Ray Arritt; all professors in agronomy at Iowa • Community State University. Calendar • For the Record • Obituaries More importantly, you suggest there is "precious little evidence supporting • Iowa News mankind is effecting the Earth's temperature." Particularly, you should • National • International become familiar with "Summary for Policymakers from Working Group I" • WebExtras of the IPCC report that clearly rejects, quite visually through its figures, the • RSS Feeds notion that this is simply "natural variability." Climate change is very real • Submit and the scientific facts show that mankind is causing the planet to warm. Swrts • Local Sports Although the planet goes through a natural warming and cooling cycle, at • Sports Column the present moment, the "Keeling Curve" plainly reveals the direct link • National between increases in C02 emissions and the increase in Earth's average • Submit surface temperature. Actions by mankind, specifically increasing levels of o Jillioll carbon emissions, is the primary cause of climate change. • Editorials • Letters to the Editor Considering Alliant Energy has proposed building a coal fired plant in Marshalltown, I find the T-R's opinion-based editorial grossly • Tell it like it is irresponsible at this critical time for Marshalltown's future. The power • Submit plant is far from a "done deal" and this single action by mankind, Alliant Classifieds Energy and Marshalltown, will produce the C02 equivalent of 650,000 • ClassiFieds cars, not to mention other harmful emissions. We are wise to seek all the • National facts and learn how efforts at the state and federal levels, such as carbon caps and increases in renewable energy, will impact Marshalltown's Feallires economic future. Marshalltown should consider the world around us, as we • People in the News • Crossword are all connected.

S ecial Sectio/ls Many people believe the facts reveal a much better, cleaner alternative for

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• 2007 "How To" Marshalltown, and Iowa, that will generate more jobs and create long-term GUide economic growth. Wind turbines, as well as energy efficient products such • Around The House 2007 as furnaces, doors, windows, washers and dryers come from companies in • Bridal Guide 2007 Iowa. Therefore, investing in wind and energy efficiency benefits • Century Farms 2007 Marshalltown and Iowa. To learn more about a better alternative and keep • Chamber Digest • Featured informed, visit www.PlantTruth.Com Advertising • Marshalltimes • Meet the Central Iowa Business People • Past Times • Pink Monthly • Silver Linings • Sudoku & Savings 2007 • TV Times • Wedding Planner 2007 • Women Today 2007

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TIl\1 ES-I~EP1JBLlCAN Ctnf11l1Itwd'·S l>ail)' i'\f'\~ ~1':IJlC'I' The Times-Republican 135 West Main Street Marshalltown, IA 50158 641-753-6611 HOME I NEWS I SPORTS I COMMUNITIES I CLASSIFIEDS I CONTACT US

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802 South Center St. Marshalnown. Iowa 641-752-4525

HOME I NEWS I SPORTS I COMMUNITIES I VIRTUAL NEWSROOM I CLASSIFIEDS US Friday, November 30, 2007- Time: 7:09:41 AM CST Search our 7-day archive of stories: Fourth partner steps fOlWard to help Alliant build plant I Submit II Reset I By RYANBRINKS

A fourth partner announced its intention to own part of Marshalltown's E!JWebExtras proposed new power plant Wednesday as the other three - Alliant Energy's Interstate Power & Light Company, Central Iowa Power lVeu'.·.. Cooperative and Com Belt Power Cooperative - signed a joint ownership • Home page • Local News pact in Des Moines. • Local Columns • Money and Markets North Iowa Municipal Electric Cooperative Association is currently in the SE • Central Iowa Today • Community process of conducting required public hearings regarding its ownership in Calendar the planned Sutherland Generating Station Unit 4. • For the Record • Obituaries • Iowa News "We have an excellent story to tell as this facility fits into our members' • National long-term energy generation plan," said James Milam, executive vice • International president ofNIMECA, in a press release. "With our diverse energy supply • WebExtras • RSS Feeds portfolio, which also includes wind and hydroelectric generation, NIMECA • Submit is well-positioned to serve our next generation of electric customers."

S Jorls Shares in the 630-megawatt hybrid coal-biomass generating station are • Local Sports expected to be spread over 94 of Iowa's 99 counties, with 350 megawatts • Sports Column • National to IPL's customers, 100 megawatts each to customers ofCIPCO and Com • Submit Belt and 20 megawatts to NIMECA. The remaining 60 megawatts of output is still being negotiated with other potential partners. o JilliOIl • Editorials "Sutherland Generating Station Unit 4 will playa large role in providing • Letters to the Editor the energy to power Iowa into the future," said Tom Aller, IPL president. • Tell it like it is "The Iowa facility that we plan to construct allows us to continue providing • Submit Iowans with safe, reliable and environmentally responsible energy. The facility supports our state's growing renewable energy economy through C1assifieds the use of renewable resource fuels, such as switch grass or com stalks." • Classifieds • National If constructed by its target date of2013, the plant will power approximately Featllres 472,500 homes and businesses, IPL said in its announcement. • People in the News • Crossword Serial Sectiolls http://www.timesrepublican.comli ncl udel arti cles.asp? arti clel 0=I5352 1113012007 Times-Republican Page 2 of2

• 2007 "How To" Contact Ryan Brinks at 641-753-6611 or rbrinks@ timesrepublican.com Guide • Around The House 2007 ~Suhscrihe 10 Ihe__ • Bridal Guide 2007 lIII!lUi!e ..Rellublicnn t~ • Century Farms 2007 • Chamber Digest • Featured Advertising • Marshalltimes • Meet the Central Iowa Buslness People • Past Times • Pink Monthly • Silver Linings • Sudoku & Savings 2007 • TV Times • Wedding Planner 2007 • Women Today 2007

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The Times-Republican 135 West Main Street Marshalltown, IA 50158 641-753-6611 HOME I NEWS I SPORTS I COMMUNITIES I CLASSIFIEDS I CONTACT US

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November 29, 2007

Three Iowa co-ops, Wisconsin's Alliant to own coal plant

By WILLIAM RYBERG REGISTER BUSINESS WRITER

Three Iowa electric cooperatives will join Alliant Energy as owners of a proposed 630-megawatt coal- fired generating plant in Marshalltown, the companies said Wednesday.

Collectively, the four companies provide electricity to about 900,000 Iowans in service territories that reach into 94 of Iowa's 99 counties.

"Iowa needs power. Iowa is going to need power," said Thomas Aller, president of Alliant's Interstate Power and Light division in Cedar Rapids, at a meeting Wednesday with members of The Des Moines Register's editorial board.

The new co-owners, in addition to Madison, WiS.-based Alliant, include the Central Iowa Power Cooperative of Cedar Rapids and the Corn Belt Power Cooperative of Humboldt. The third company, the North Iowa Municipal Electric Cooperative Association, is holding public hearings to gain approval for ownership.

Joint plant ownership was planned from the beginning of the project, Aller said. He said the plant needs to be in the 630-megawatt range to be cost-efficient, but Alliant doesn't need all the extra capacity now.

Central, a wholesale provider of power to 13 member cooperatives with rural and urban customers, and Corn Belt, which provides power to 12 member co-ops, will each receive 100 megawatts of output.

North Iowa, which provides electricity to 12 municipal electric systems, is expected to receive about 20 megawatts.

The $1.5 billion plant, known as Sutherland Generating Station Unit 4, would produce enough energy to power about 472,500 homes and businesses.

The Iowa Utilities Board, which must approve the plant, is expected to hold hearings on the project Jan. 14.

Alliant said Wednesday that the plant could produce up to 10 percent of its output by burning switch grass, cornstalks or other similar fuels. The plant will also produce steam that could be used for powering industrial processes in nearby industries.

It will be "the cleanest coal plant ever built in Iowa," Aller said.

The plant has drawn opposition from environmental groups and Iowa's Office of Consumer Advocate.

The plant's carbon dioxide output would increase the buildup of greenhouse gases and accelerate giobal warming, the office said in a statement last month.

"Our position in opposition is that they can more cost-effectively meet their supply needs by more aggressively pursuing energy efficiency and wind energy," said Jennifer Easler, an attorney in the advocate's office.

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Alliant is expanding its use of energy sources such as wind, Aller said Wednesday, but those power alternatives can't produce the electricity needed to meet growing demand, driven in part by the power needs of current and future Iowa plants that produce biofuels such as ethanol.

Alliant currently needs about 200 megawatts of electricity for biofuel plants either operating or under construction, Aller said.

"If ethanol is going to be called a green fuel, you can't power the ethanol plants with dirty coal," Nathaniel Baer, the energy program director for the Iowa Environmental Council, an organization that focuses on environmental issues, told the Associated Press Wednesday.

Aller said emissions will be greatly reduced at the new plant and its operation would allow production to be reduced at older plants that produce more emissions.

Reporter William Ryberg can be reached at (515) 284-8104 or [email protected]

http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=20077 I I290378&template... 11/30/2007 --' III .. :;;:: co... Q co ""u: N 62 ...rD ... "'" ...... ~ U E >... C> ca z a. 1 cu I I en c: ca .c o u I I cu ...ca •E en c: I \ 1 .'...n I en r - cu=- ::::I ','- tit ... ·(j1·"f'l\~ . ,'. ~ = U 13"" _ • I, Culver .among 6 governors to sign accord

ENVIRONMENT. from Page1B sibility to take steps to reduce and Iowa businesses that do year .... That's more, for ex-, I greenhouse gases," Culver not apply to the people in our ample. than Japan. Germany I probably see a national effort said Thursday. neighboring states. It's just or the entirety of Canada." I, along this line." Earlier this year, legisla· one more time where we're Reopelle said. Thursday's pact does not tors created an Iowa Climate going to tell people to do Several states are working commit the state to strict reg· Change Advisory Council to business elsewhere." on similar goals. California. I Oregon and Washington cre- I' ulations, but it does establish study strategies to reduce The IowaAssociation of Busi· Ii Iowa as a player in addressing greenhouse gas pollution. The ness and Industry represents ated the West Coast Global I the issue on a regional basis. council will help create recom· more than 1,300' businesses, Warming Initiative in 2003. I. Such ideas as a state cap·and· mendations to lawmakers. including manufacturers. Arizona and New Mexico cre- trade system would most likely House Minority Leader Michael Ralston, the group's ated the Southwest Climate I' i require legislative approval. , a Sioux president, said Thursday that Change Initiative last year. "The threat of global warm· City Republican, expressed one of the most important Advocates point to a 2002 University of Illinois study ing is real, and it is our respon· concerns alJoutthe agreement aspects of. any emission re- I', . Me·l:rotedtl1atgovernors from duction -goals is that they.,are that shows that a shift to reo I, Ii'&'1l''lP;a~ta,.Nebr~s.ka .".l1~" ,apPliej!,Cors~Slentl~~;~ newable fuels would create MlssOun"dlo not Sign·,t, even ~"""FrankIy, tney·re·oftliemmd . more than 200,000 new Mid- I th9,ugh they are members of that they just;~antconsisieriCy. western jobs by 2020,pumping nearly $20 billion in economic .,I! tJ!e governors group. They'll comply:with whatever Ii "We don't even know what the law is," Ralston said. growth. , this agreement is going to Keith Reopelle. director of However, information from I' mean ...••-Rants said, adding Clean Wisconsin. said at a the Council on Foreign Rela· that~ii~.~as signed without news conference Thursday tions shows that such strate· publiarcomment or input from that states' cannot wait for the gies have had mixed results in the'ousiness'community. federal government totake ac· other countries. "niis.potentiiUly means there tion. "The Midwest as a region Reporter Jason Clayworth can ".re~goi~ to be more res!ric. releases 1.500 million tons of bo ro.chod .•.1(!151 699·7058 or tl(iifs\lpl'!Cedon Iowa familIes global warmmg pollutants a Iclayworth@dm'reo.com " \

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\ ,I l Growing Iowa demand focuses debate in state I Iowa will use 30 percent to 40 per- ' cent more electricity two decades Critits,S-ay:,that utilities from now, according to the V.S.;En- , race to beat regulators ergy Information Administratio,!.. ' Congress has yet to decide how to Vtility managers say. th~y Cll!)'t I I regulate or whether to cap carbon di- I meet growing demand m: a rellallle ' oxide emissions that can harm lungs, and cost -efficient way without burn: I I, worsen asthma, lace fish tissue with ing coal. One reason for that is natural I mercury, shorten people's lives and I gas'Pi'ic~s; which have soared over t.lie ,. ! contribute to climate change. past decade from $2 per thousand \ Critics such as Carrie La Seur of . '/' cubic feet to~$8:per thousand cubic I the nonprofit Plains Justice accuse I feet. I the utilities of rushing to build plants , There are plenty of renewable en- - and secure decades-long coal-buy- \ ergy advocates who disagree with the I ing contracts - before the federal industry's reliance on coal, however, I government acts. and some states do, too. I Utility representatives, including California, which runs mainly on Washington, D.C.-based lobbyist and natural gas and wind, has moved to I lawyer Jeff Holmstead, say no firm is ban the purchase of electricity gener- going to gamble $1 billion on a plant in ated with coal in other states. Florida an effort to navigate the still-uncertain and Kansas have each blocked at least politics of the issue. one plant recently. Plains Justice is preparing legal Yet both Roya Stanley, who runs the maneuvers to block newpfants' and " f .....-"~,· ,",.,r new Iowa Office of Energy Indepen- will be aided by Commuri,i1Y,Ei.l,~rgy', dence, and Gov. Chet Culver said coal Solutions, Iowa Environm~I!~aJi;;9u,J).': will be burned here for the foreseeable eil, Iowa Farmers Uni.o~lfJ?;tr~_Ri~~~ future. newable Energy AsSOCIat~9J)~~~0;Jack Hatch, D- ments, arguing that the emissions a~d , lpelMoihes, will ask lawmakers next dust will hurt them and their quahty ~ear to require a 20 percent increase of life. In the unincorporated Village in,j~newable energy use. Sen. Rob of Dewar near the proposed LS P~wer , !ilpgg, D-Cedar Rapids, seeks to create plant outside Waterloo, yard signs 5',~OOgreen-energy jobs by requiri,!g: . condemn the plant proposal. .. 'all electric utilities in Iowa to obtain .;14 percent of their electricity from \ "We're eXPO~i~g, the . :~~:~nclty, renewable sources by 2014. \ Continuea'8il'iiextpage'_i Iowa Consumer Advocate John Per- \ kins has opposed the Marshalltow'ri plant as unnecessary. Perkins, however, won't take a stand on Waterloo's "merchant" plant, ,so named because it will be owned ·by an independent producer and wori:t be subject to Iowa rate case hearings, before the utilities board. The board, however, will have to decide whether to approve the plant's construction. tb ~.; '" ~ ~ If"" ~ g; ~j~ ~... ~ U'i Q N\-=f .,; w 0- ~ A F <=>~<=> N ..-: "".... t; "', .0 ;:: E ~ z0 '" "~'" ~ "0" ~

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A worldwide bo.om in coal- the appropriate first steps," burning is so big in just three said James Hansen, director countries - the United States, of NASA:s Goddard Institute China and India - that by for Space Studies. "China and 2012 the added carbon di- India have the most to lose oxide from the plants will' from uncontrolled climate be five times the amount the change, as they have huge Kyoto Protocol was supposed populations living near sea to cut, a Christian Science level, and they have the most Monitor analysis of emissions to gain from reduced local air data predicted in 2004. This year, the International pollution. " Energy Agency predicted that Some nations are looking €hina - which six years ago to speed up work to trap the emitted less than half as much carbon dioxide underground, greenhouse gas as the United which would remove a major States - could be the world environmental drawback of leader in the emissions by the coal. Australia is trying to end of the year. reduce greenhouse gas emis- .Presidential candidate John sions by capturing carbon IrlcCain told Iowans recently dioxide and storing it in un- that U.S. plants aren't the derground reservoirs. dnly concern; the operations The University of Texas has I ih other nations must be in the launched a lO-year study in {quation, too. which carbon dioxide will be {Utility lobbyist Jeff Holm- H:'stqred' in deep brirfe pools as ~ead agreed. ,,\'{ith .China deep as 10,000 feet below the opening a new. plant or two ground near Natchez, Miss. $'ery week, according to the U.S. Department of Energy, _ Perry Beeman S a'ndIndia's population threat' , ~ningto overtake its northern neighbor in the next couple of aecades, it's an issue that isn't going away. . "In terms of climate change, there is no difference between a coal plant in Iowa and a coal plant in China," said Holm- stead, of law firm Bracewell & Giuliani. "Plants go where I there are less restrictions. Unless we have worldwide solutions, you can do things that look like you are doing something, but really you're not." Questionable pollution-con- trol technology at plants in China and India could make the impact of their emissions on the environment even worse than that from plants in the United States, however. "China, India and other developing countries must be part oUhe solution to-global warming, and surely they will be, if developed coiintries take Consumer Advocate among those to argue against Marshalltown power plant I Times Rep... Page I of I

4:14" = _== _ om .; = s. _ ao = - ~= uu ;_:$ m = :z JL ... Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

=ba.cILt05tory Consumer Advocate among those to argue against Marshalltown power plant By RYAN BRINKS, TIMES-REPUBLICAN

IpOSTED: December 16,2007

Everyone who wants to argue to the Iowa Utilities Board for or against granting Alliant Energy authority to build a 630-megawatt coal-fired power plant in Marshalltown has had a chance to do so.

Monday was the deadline to intervene in the WB case, the outcome of which will be determined after a hearing in January.

Alliant Energy's application to build the power plant was accepted by the WB Aug. 16 and must be evaluated against the arguments of the public and those who have a vested interest in the project. Such parties are intervenors.

Among the intervenors are the coalition of Community Energy Solutions, the Iowa Environmental Council, Iowa Farmer's Union, Iowa Physicians for Social Responsibility and Iowa Renewable Energy Association. This coalition has an interest in Alliant's energy portfolio and is concerned with the environmental and public health impacts the plant may have, according to WB documents.

The Iowa Consumer Advocate has also intervened.

"When the risk

http://www.timesrepublican.com/page/content.detail/id/500576.html?naV=5065&showlayou...1/9/2 008 Page I of2

Roling, Chris [DNR]

From: Welch, George [DNR] Sent: Thursday, October 25,200711:14 AM To: Roling, Chris [DNR] SUbject: FW:The Press release announcing the CA's submittal.- Ann You'll need to use your contanct to get an actual copy- thanks

From: Welch, George [DNR) sent: Thursday, October 25,200711:13 AM To: Phelps, Dave [DNR);Fitzsimmons, Catharine [DNR);Preziosi, Anne [DNR) Subject: The Press release announcing the CA'ssubmittal.- Ann You'llneed to use your contanct to get an actual copy- thanks

Office of Consumer Advocate John R. Perkins, Consumer Advocate Consumer Advocate Opposes Interstate Power & Light Co. Proposed Coal Plant

Consumer Advocate urges company to evaluate more cost- effective and environmentally sound supply resources.

The Iowa Consumer Advocate has filed testimony with the Iowa Utilities Board, recommending that the IUB reject Interstate Power and Light's application for authority to site a 630-megawatt coal-fired generating unit (SGS Unit 4) adjacent to Interstate's existing Sutherland Generating Station in Marshalltown, Iowa. Interstate is a subsidiary of Alliant Energy of Madison, Wisconsin.

"When the risks to consumers and the public associated with building a new coal-fired power plant are properly taken into account, the advantages are clearly demonstrated of Interstate Power meeting its supply needs through lower-cost and environmentally-friendly energy efficiency and renewable energy generation resources," said Consumer Advocate John R. Perkins.

The Office of Consumer Advocate filed the testimony with the IUB late Monday. The OCA represents gas, electric and telephone utility consumers generally and the public generally in all proceedings before the Iowa Utilities Board.

Expert testimony submitted by the Consumer Advocate interpreting current scientific analysis and consensus argues that the proposed coal plant would inject enormous amounts of carbon dioxide into the atmosphere for 50 years or more, contributing to a worsening of the dangerous buildup of greenhouse gases in the earth's atmosphere and to accelerated global climate change for centuries to come.

10/25/2007 Page 2 of2

According to the testimony, emissions from the proposed plant would be equivalent to the C02 emissions from about 740,000 additional cars - an additional 40% of current emissions today from all of the cars registered in the state in 2005.

Human-induced climate change presents a grave and increasing threat to the environment and to human societies around the world, according to the testimony. The primary source of increasing atmospheric C02 is the combustion of fossil fuels by industrialized societies. Unless squarely addressed by effective public policy, the increasing buildup of atmospheric greenhouse gases will likely cause dramatic environmental and economic harm to societies around the world, including communities in Iowa. Policymakers within and beyond Iowa are evaluating policies to achieve electricity production by less carbon-intensive or zero-carbon means, the testimony said.

"The proposed coal plant stands in stark contrast to this goal," Perkins said. "Undertaking construction of a coal plant in these circumstances presents an enormous risk for IPL' s customers and the environment - a risk that is unnecessary. Moreover, our recommendations would allow for the potential development of cleaner energy sources which may occur over the next decade and eliminate the need for a base load coal plant in the future."

Perkins said that in the course of the OCA's detailed analysis ofInterstate's electric resource planning model, OCA's experts determined that IPL failed to properly model the costs of C02 regulation and other energy resource potentials. Adjusting for these errors, the OCA experts concluded, IPL can defer the need for the base load coal plant beyond the planned 2013 in-service date of SGS-Unit 4. Energy efficiency and wind generation would be a more cost-effective means of meeting Interstate's energy needs, and with little to no adverse environmental impact, Perkins said.

"Energy efficiency and renewable energy resources actually deliver greater and more evenly distributed economic benefits to the State ofIowa than the proposed coal plant," Perkins said. "Removing IPL's modeling constraints that limited Interstate's wind generation capacity to 9. I % of its projected retail energy needs in 2022, and allowing the model to increase wind generation to 25 percent of IPL' s retail energy needs, would result in 1,657 MW of wind in 2022, or 1,039 megawatts more than IPL assumes in its base resource plan. Similar environmentally sound results will accrue from increased investment in energy efficiency."

10/25/2007 Page 1 of2

Roling, Chris [DNR]

From: Welch,George[DNR] Sent: Tuesday,October23, 20072:05 PM To: Roling,Chris [DNR]; Phelps, Dave [DNR] SUbject: MArshalltownpowerplant

For release Tuesday, October 23, 2007.

Contact John Perkins, Consumer Advocate - 515-281-5984

Consumer Advocate Opposes Interstate Power and Light Company Proposed Coal Plant

Consumer Advocate urges company to evaluate more cost-effective and environmentally sound supply resources.

The Iowa Consumer Advocate has filed testimony with the Iowa Utilities Board, recommending that the IUB reject Interstate Power and Light's application for authority to site a 630-megawatt coal-fired generating unit (SGS Unit 4) adjacent to Interstate's existing Sutherland Generating Station in Marshalltown, Iowa. Interstate is a subsidiary of Alliant Energy of Madison, Wisconsin.

"When the risks to consumers and the public associated with building a new coal-fired power plant are properly taken into account, the advantages are clearly demonstrated of Interstate Power meeting its supply needs through lower- cost and environmentally-friendly energy efficiency and renewable energy generation resources," said Consumer Advocate John R. Perkins.

The Office of Consumer Advocate filed the testimony with the lUB late Monday. The OCA represents gas, electric and telephone utility consumers generally and the public generally in all proceedings before the Iowa Utilities Board.

Expert testimony submitted by the Consumer Advocate interpreting current scientific analysis and consensus argues that the proposed coal plant would inject enormous amounts of carbon dioxide into the atmosphere for 50 years or more, contribut~ng to a worsening of the dangerous buildup of greenhouse gases in the earth's atmosphere and to"accelerated global climate change for centuries to come.

According to the testimony, emissions from the proposed plant would be equivalent to the C02 emissions from about 740,000 additional cars - an additional 40% of current emissions today from all of the cars registered "in the state in

10124/2007 Page 2 of2

2005.

Human-induced climate change pre~ents a grave and increasing threat to the environment and to human societies around the world, according to the testimony. The primary source of increasing atmospheric C02 is the combustion of fossil fuels by industrialized societies. Unless squarely addressed by effective public policy, the increasing buildup of atmospheric greenhouse gases will likely cause dramatic environmental and economic harm to societies around the world, including communities in Iowa. Policymakers within and beyond Iowa are evaluating policies to achieve electricity production by less carbon-intensive or zero-carbon means, the testimony said.

"The proposed coal plant stands in stark contrast to this goal," Perkins said. "Undertaking construction of a coal plant in these circumstances presents an enormous risk for IPL's customers and the envi:onment - a risk that is unnecessary. Moreover, our recommendations would allow for the potential development of cleaner energy sources which may occur over the next decade and eliminate the need for a baseload coal plant in the future."

Perkins said that in the course of the OCA's detailed analysis of Interstate's electric resource planning model, OCA's experts determined that IPL failed to properly model the costs of C02 regulation and other energy resource potentials. Adjusting for these errors, the OCA experts concluded, IPL can defer the need for the base load coal plant beyond the planned 2013 in-service date of SGS-Unit 4. Energy efficiency and wind generation would be a more cost-effective means of meeting Interstate's energy needs, and with little to no adverse environmental impact, Perkins said.

"Energy efficiency and renewable energy resources actually deliver greater and more evenly distributed economic benefits to the State of Iowa than the proposed coal plant," Perkins said. "Removing IPL's modeling constraints that limited Interstate's wind generation capacity to 9.1 % of its projected retail energy needs in 2022, and allowing the model to increase wind generation to 25 percent of IPL's retail energy needs, would result in 1,657 MW of wind in 2022, or 1,039 megawatts more than IPL assumes in its base resource plan. Similar environmentally sound results will accrue from increased investment in energy efficiency."

10/24/2007 Alliant releases annual environmental report I Times Republican Page I of 1 'lIR'weplllf,a" Centrdllm\'a's D-dily Newspaper :w:::a= __ 4 __ L ;P: = WU __5. = Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power .,Iant Story Archive

=back_t05tOIY Alliant releases annual environmental report By RYANBRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

Alliant Energy's environmental impact - and an estimate of a typical household's impact on the environment - as well as efforts at conserving energy and use of renewable energy are highlighted in the company's annual Environmental Progress Report released last week.

Explanations and expectations of how several proposed generating facilities will affect the corporation's energy use and emissions are provided in the report, along with projections showing cuts in emissions of sulfur dioxide, nitrogen oxides and mercury by 2015 but an increase in the output of carbon dioxide.

"In addition to sharing our company's energy efficiency efforts, this report documents some of the success we've had in helping our residential, commercial and farm customers trim their energy usage and embrace energy-efficient practices," said Bill Harvey, Alliant Energy's chairman, president and chief executive officer. "It also gives a detailed look at our plans to burn biomass with coal and retrofit most of our eXisting plants with modern environmental controls."

In its announcement of the annual report, the company said it plans to add more than 450 megawatts of wind power by 2010, almost doubling its renewable energy portfolio. It also claimed a 23 percent reduction in energy used at the Interstate Power & Light Company headquarters in Cedar Rapids since 1996, and that more than 500,000 tons of different types of ash from IPL and Wisconsin Power & Light Company generating facilities was used as a cement replacement and as aggregate or fill material in construction.

http://www.timesrepublican.com/page/content.detaillid/500574.html?nav=5065&showlayou...1/9/2008 "!r-

, A MESSAGE FROM OUR CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVEOFFICER

ur company's environmental occupy former values are expressed in the cover farm fields and Odesign of Ihis yeor's report - Ihe the expansion resfX'nsibility each generation has to protect and growth our natural resources for future generations. of businesses All of us must understand how we impact large and smoll. the environment and must be open 10 finding Conservation ways to reduce that impact. musl ploy an We hove 0 huge job oheod of us - even bigger building two cooHired power plonts, severol role in our plans wind forms, plus retrofitting most of our than it has in the existing plants with modern environmental post. However, controls. It will take dedication and fortitude no mailer how good we are at helping from every Allianl Energy employee - nol 10 customers trim their energy usage or menlion close to $4 billion 10 successfully embrace energy-efficient practices, the complete these complex, multiyear proiecls. energy needs of the communities we serve I believe we're up to the chollenge. Bul il won'l be A COMPANY OUR SIZE MUST BE CONFIDENT easy. THAT THE MONEY WE SPEND WIU ACCOMPUSH Our generation plan WHAT WE ARE REQUIRED TO DO AND WHAT OUR responds 10 bolh the CUSTOMERS, EMPLOYEES AND SHAREOWNERS increasing demand for EXPECT US TO DO. power from our customers and our desire to rely less can only be mel wilh reliable, bose-lood on wholesale markets as a source of supply generation. for their needs. We can measure our service Some critics say that we should territory's economic prosperity against deploy more resources for emerging cCXJI the thousands of new homes that now lechnologies, bullhe reolity is Ihol we, ond those who regulate the utility industry, ore reauired by law 10 slrike 0 bolonce between economics, environmental benetits and reliability. Every major decision we make is governed by these prinCiples, and each I one has its own level of importance to our I stokeholders. This report includes forward-looking statements. These forward-looking statements can be identified as such because The selection of environmental the statements iroclude words such as "plans," -axpocts," "estimated," -anticipated" or other words of similar import improvement' projects for our existing power I Similal1Y; statements that dese;ibe futUr~ plans or s~tegies. emissions reductions, compliance with regulations and plonls is 0 good exomple of Ihe lough issues future generation plans are also forward-looking statements. Further, current designs for future projects are forward- looking statements as the designs may change prior to the project being completed. Such statements ale SlJbject to we frequently must work through, We are certain risks and WlCertainties that could cause ac:tlJal results to differ materially from those cmrent/y anticipated. focused on redUcing the amount of mercury Actual results could be affected by such factors as: state or federal regulatory actions or local government actions, coming from our power plants, but today including inability to obtain all necessary approvals and permits; changes in, or adoption of. new environmentall8W5 those who manufacture the systems will not and regulations to which Alliant Energy is subject; cnanges in the application Of interpretation of existing laws and guarantee that we can meetlhe 90 percent regulations; advances in technology ancl Allient Energy's access to technological developments; failure of equipment and technology to perform as expected; unanticipated construction issues, delayS or expenditures; current or future litigation, reduction Wisconsin is propoSing. And regulatory investigations. proceedings or inquiries that could impede the implementation of Alliant Energy's plans; controlling mercury at our plants is more changes in tall. aoo othet ~ to which A.\liant EfleitN is 'Subiect; Mlian\ Energy's amlinueo access to capital mWts; diHicull becouse of Ihe lower sullu. cool Ihey political conditions in Allient Energy's service territories; economic conditions in AIlient Energy's service territory. burn. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy undertakes no obligation to update publicly such statements to reftect subsequent events or cin::umstances.

2 --.-----~·-~---l

A MESSAGE FROM OUR CHIEF ENVIRONMENTAL OFFICER

e con't supply our customers with the power they need 10 run their homes and businesses without imfXlcting the W environment. This fact makes our relationship with customers unique, and much more than just a supplydemand transaction. Using natural resources Wisely is one way thot we live up 10 our environmental core value al Alliant Energy. No one in our company tokes this A comPJny our size must be responsibilily lightly. confident that the money we spend will Executing a strategy that will cost-effectively accomplish what we are required to control each power plant's emissions and do and what our customers, employees safely deliver energy services to our customers and shor8Qllolners expect us to do. We requires a dedicated team of employees Irom will continue to look for technology operations, regulatory, environmental, safety solutions to reduce emissions and and engineering, and our work doesn't end concentrate on keeping our customers' when a project has been completed. There costs as low as possible while we is always the opportunity to fine-tune and meet or exceed their expectations for improve our environmental performance. reliable service. We consolidate our electric generating Since we announced our position operations when possible so we can better on climate change in 2006, we monitor and manage our output and deliver have formalized a renewable energy our product in a controlled, safe and efficient manner. We record and strategy and selected two cool analyze data to improve our systems, with dedication to operational technologies that will help us reduce excellence. We also know that environmental regulations and our new plants' greenhouse gas technological advancements in energy production and energy eHiciency emissions. Over 450 megawatts of are necessary and must be implemented in a feaSible, cost-.effective wind power in Iowa and Wisconsin manner. ore expected to be added by 20 I 0 It is our belief that continuing to listen and learn from others while 10 our already-robust renewable improving our own performance is the best way to achieve progress. energy porrlolio, and both coo Hired All three states in our service territory have new initiatives to address power plants will be equipped 10 environmental imPJcts of energy production including gloool warming, burn biomass, which should give energy efficiency, and renewable energy such as energy from biomass. an economic shot in the arm to rural To advance those causes, many employees participate in a variety of communities. eHorts and have a seat at the table to assist in developing guidelines Besides the tangible benchmarks to accomplish improvement in local, state and federal environmental of progress that ore outlined in the policies. following pages, I see strong evidence Generating electricity of the work ethic and desire to IT IS OUR BELIEF THAT CONTINUING TO and delivering electricity succeed that has served Alliant Energy LISTEN AND LEARN FROM OTHERS WHILE and natural gas services well in the pasl and will carry us into a IMPROVING OUR OWN PERFORMANCE IS is a complex business. bright future. THE BEST WAY TO ACHIEVE PROGRESS. In on eRort to clearly So, as we continue to execute our describe the challenges generation plan and reduce emissions we face and the role from our pavver plants, I encourage that increased energy consumption plays in our decisions, this year's you to examine your imPJct on the progress report includes a variety of "reaHife" comparisons thai are environment. The air and water around intended fa better define our environmenlal impacts and the emissions us will be much cleaner if we all make reductions we've achieved. We hope Ihis information helps you to a change in how we do things. better evaluate our company's environmental performance and relate this to your own energy usage. l?uerL ..·O Bi/l Harvey Chairman, President and KathyUpp Chief Executive Officer Chief Environmental Officer

3

._~ __ l OUR COMPANY A T A GLANCE

liont Energy Corporation is a regulated, investor-owned publiC j\ utility holding company providing regulated electric and natural gas service to approximately one million electric and 400,000 natural gas customers in the upper Midwestern stales of Iowa, Wisconsin and Minnesota, through its utility subsidiaries, Interstate PO'YVerand light Company and Wisconsin Power and light Company. Other business plo~orms include non-regulated generolion and other non-regulated investments. Over the past several years, Allient Energy has divested its international investments and is now focused on the growth opportunities within its regulated utility business. Allioni Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol "LNT."

UTILITY BUSINESS

Utility Business Interstate Power and light Company (IPlJ and Wisconsin Power and Operating Revenues light Company (WPlJ are Alliant Energy's two utility subsidiaries. The utilities own a p:>rtfolia of electric generating facilities with a diversified fuel mix including cool, natural gas and renewable resources. The output from these generating facilities is supplemented with purchased power. In 2006, electric utility operations accounted for 73 percent of total operoting revenues ond 87 percent of total operating income for Alliant Energy. The utility business also procures natural gas from a number of suppliers. In 2006, gas utility operations accounted for 19 percent of total operating revenues and 12 percent of total .... operating income for AUlant Energy . 3% NON-REGULATED BUSINESSES Utility Busio8S1 Electric Mix Alliant Energy Resources, Inc. is the parent campany of Alliant Energy's non-regulated businesses. This entity manages a relatively small portfolio of businesses through two p1a~orms: Non-regulated generation: This business pla~orm manages Alliant Energy's non-regulated electric generating facilities: Sheboygan Falls Energy FaCility (leased to WPll. Neenah Generating Facility, and small standby generators for Industrial Energy Applications, Inc. Other non ..regulated investments: This platform includes investments in environmental

lltbar··- engineering and site remediation, transportation, construction management services for wind 1% farms and several other modest investments.

Utility Business Electric Power Sources SUPPORT SERVICES Alliant Energy Corporate Services, Inc. supports the company with traditional administrative funclions including: strategy, risk management, accounting and finance, fuel procurement, supply chain, corporate communications, legal, regulatory, corporale governance, information technology, human resources, labor relations, performance improvement, internal audit, infrastructure security, publiC affairs, safety and health services, and environmental management.

-"0.. 4%

4 New locomotives for CRANDIC The Cedar Rapid, and Iowa City Railroad Company ICRANDICj, on Alliant Energy TronsfX)rtation company, owns and operates more thon 100 miles of main line and switching trock in four east central Iowa counties. For more than 100 years, CRANDIC ha' thrived 0' a valuable and award- winning business partner to eastern Iowa shippers. providing sofe, efficient freight ,ervice 24/7, 365 day' per year. RMT, Inc ..'s proiect received an Excellence CRANDIC i' in the process of upgrading ii' locomotive f1eel.The new MP 1500 Honor Award from the American Council locomotives offer many advantages over existing equipment: of Engineering Companies·lllinois (ACEC-IL), which recognizes projectl that demonstrate • An increase in pulling power allows CRANDIC 10 use fewer locomotives, which exceptional engineering, meet the needs of reduces fuel consumption and emissions. the client, and benefit the public welfare. • Each locomotive has a new upgraded power assembly that consumes 90 percenl less oil. very day, RMT,Inc. works to help indu,trial • Each unit will be equipped with ,pecialized comp::mies reduce their environmental equipment that reduces the impact 10 the E footprint,. When a leading fertilizer environment: manufacturer discovered a large sinkhole on • Hol Stort- heats the waler and oil so the it, property located ju,t 80 feet south of on engine does not have to run continuously operating railroad, the company coiled on RMT, in cold weather. The result is a reduction in Inc. to develop a solution that would protect combustion emissions, fuel consumption and the public and the environment - and meet its noise pollution. business goals. • The SmortStart/ZTR- control systemreduce, Though 'inkhale, are typically active for idling, engine wear and noise pollution. It a few days, this one continued to grow. As prevents unnecessary fuel and oil consumption it expanded closer to the tracks, potential and decreases NOx emissions. sofety and liability issue, grew, 0' well. RMT, Inc. investigated the sinkhole's properties and then developed and implemented a fa,t·track remediation strategy. The innovative approach involved using on-site chloride-contaminated soil for fill, which eliminated the need 10 dig

5 OUR E N V RON MENTAL P H LOSOPHY

ur gool is to generate reliable, cost-effective energy and As part of living our "efficiency" core value, Alliant deliver valuable energy-reloted services, while also being Energy uses Leon Six Sigma (LSSj ta systematically Oa responsible corporale citizen and a good environmental analyze and improve our processes. Core steward. We recognize our environmental impact, and strive 10 processes impacting our environmental lean reduce ii, and prudently use natural resources. We also support performance are no exception, Since the projects that mitigate environmental damage and improve the beginning of 2006, we have used LSS ~~igma environment. on processes ranging from our assessment !]~ program 10 risk mitigation to quality This report discusses how our assurance of em'lssians reporting data. lSS lools help us policies and actions impact the effiCiently and effectively implement our environmental environment. It olso provides Values philosophy, comply with environmental laws and measurements of our performance ETHICS regulations and promote a clean, sofe and heallhy over time. Not all measurements SAFETY environment. reflect improvements or decreasing ENVIRONMENT environmental impacls, but Allian! DIVERSITY Compliance with environmental Energy continues to report our EFFICIENCY laws and regulations resuhs, and uses these to drive Alliant Energy has an assessment program which improvements in environmental reviews our conformance to environmental and safety performance and decision-making throughout our regulations. The results of each assessment and comp:my. the resolulion of the issues identified are discussed Alliont Energy has five core values that gUide our with facility activities. The "environment" care value, complemented managers and by the "ethics" core value, is the foundation of our site personnel. corporate environmental principles which are reflected We have in a farmal enviranmental policy. Employees regularly an internal certify that they have read, understand, and recognize risk mitigation the importance of our corporate values and agree to process 10 conduct themselves accordingly during the course of identify and their employment. manage current and future environmental Executive. Dundeana Doyle, regulatary Tim Bennington, Dale Witbers and requirements Kim Zuhlke review and implement with the air emiuions management and renewable energy initiatives. potential to impactlhe company's business plans. Our process is deSigned to ensure that compliance is achieved and identify issues of strategic relevance for advocacy with regulatory agencies and other stakeholders, If employees hove concerns about noncompliance with erwironmenta\, health, safety or any other company policies and procedures, they hove several options available 10 resolve these concerns, including access 10 the corporate Ethics Officer, as well as anonymous reporting to on independently operoted 24-hour EthiCS Hotline. Promote a clean, safe and healthy environment We strive for continuous improvement in our

environmental performance. OUf employees recognize the effect our comfXlny operations hove on the environment. Together, we work 10 design our environmental programs to reflect environmental

stewardship and to reduce OUf impact to air, land, and water resources. This approoch is:

• driven by OUf environmental fXJlicy; • communicated through employee training programs; Allianl Energy • documented within operational procedures; also provides • incorporated into proiecl planning; and, transparency on • monitored by every level of management. environmental issues to the public Allionl Energy's Boord of Directors has assigned through SecurHies oversight of environmental poliCY and planning issues to and Exchange the Environmental, Nuclear, Health and Safety IENH&SJ Commission ISEe) Committee. The ENH&S committee is comprised sclely filings thai disclose of independent directors who approved this reporl for environmental publication. liabilities considered to be important to an investor. Disclosed environmental liabilities include estimated malerial financial impacts of current and emerging environmental regulations, remediation activities, orders from regulatory agencies and legal proceedings. Alliont Energy has established comprehensive internal controls and other processes 10 identify potential issues for disclosure. These disclosures can be found in Alliont Energy's SEC filings. And, as an incentive for employees, the imparlance of environmental compliance is reHected in the company's compensation programs, which contain performance goals relating 10 environmental, health and scfety matlers. TAKING OWNERSHIP o F OUR ENVIRONMENTAL

e are excited to share some of the steps our

company is taking to put OUf environmental W philasophy into actian. You'lIlind the highlights of 0 variety of ongoing projects an the following poges. We recently announced plans to construct tvvo new cool-fired generation units in Iowa and Wisconsin. These new generation units come with commercially demonstrated controls for air emissions to meet or exceed U.S. Environmental Protection Agency IEPAI permitting requirements and will increase the capacity

of OUf system to address growing energy demands. We are implementing emissions controls on our existing fXlWer plants and expanding our renewable and energy efficiency programs.

GLOBAL CLIMATE CHANGE Public awareness of climate change continues to grow oIong wilh support for policymak.ers 10 take action to mitigate global worming. Because federal energy Our company remains and environmental fXllicy has a significant influence on committed to this climate our company's existing operations and implementation change position and its guiding of future pions, we ore shoring our position on principles. Amidst 011the poliCY global climate change policy development through debote on this issue, we will particifXllion and discussions with stakeholders at the continue to emphasize the need local, regional, and federal levels. for greater certainty regarding what actions will be required for future compliance. These efforts Barbaro Swan 1ill!tTIll~1jElJlltlDc;m~~ include participation in ongoing OlllilJllDllillllillEllllimliil'lJ<;jJtillIIilllJ~~tillI!I~1fitill1l!il!ml developments such as the Global ~(ID~~@ill@iiflIDIDmltIl@!fllill!l~tTIil~~ Roundtable on Climate Change, ~ffili11!tsliIilltrnli1lIID~~amll.1U1tE~~ Multi-Stote Climate Registry, OOIlEllil\lltilll!l~Iilll:ll!llil~t§I!lIIDB~mtllJUlilllillIDIOlilll\!l'I Wisconsin Cleon Cool Study ~~ Group, Wisconsin Task Force on DtillIIilllJ~WIII~lIDlIirilllrmOlilll\!l'l~tillI!I~~ Global Warming, Iowa Climate OtillItmnf!mmrJWllJ~®~fiiJ~~(lDO!Ii1iwI1i:@ Change Advisory Council, and ~@)~~f1il~~ Iowa Power Fund Boord. ~ Barbara Swan, preSident of WPL, represents WPL on the ¥em Gebhart Guiding pihiii"ipies Wisconsin Task Force on Global Warming. The goal of the task • ~t.ifficieiltscfentificevidenceexiststo supportgreenhousegas emissionsreduction efforts. . force is to examine the effects of, and solutions for, global worming in Wisconsin. In Iowa, Vern Gebhart, • Technoh:~gysolutionsbasedon soundscienceare critical andshouldbe developed: continuedr~searthanddemonstrationstudiesmustbe supported. vice preSident - Customer Service Operations West, • Greenhousegas reductionefforts shouldnot be targetedat anyone industl"tbut is the nominated representative for investor"Owned ratherat all sectors. utilities on Ihe IONo Power Fund Bcx:Jrd, which approves • Alliant EnergyCorporationis part of the solution:but. globalefforts areneeded gronls, loons, investments and other financial incentives requiringinternationalcooperation. to reduce the stale's dependence on foreign energy • Economicgrowth andsustainabledevelopmentis possiblewhile alsoreducing sources and fossil fuels. greenhousegasemissions.

8 TAKING OWNERSHIP o F OUR ENVIRONMENTAL

MANAGING AIR EMISSIONS The requiremenls of Ihe Cleon Air Inlerslole Rule (CAJRI and C1eon Air Mercury Rule (CNvIR) drive our plans. We have also Allionl Energy continues to implement plans 10 comply with future considered olher ospecls of Ihe Cleon Air Acl. including Regional air emissions regulations through installation of emissions controls Haze requiremenls for Besl Available Relrofil Technology (BARn and and monitoring equipment throughout our fleel of power plonts. The Wisconsin ozone attainmenl plans thai require Reasonable Available changes our comJXmy is making are expected to significantly impact Conlrol Technology IRACn as we developed Ihem. future air emissions. Regulatory uncertainty remains until various aspects of future federal and stale air regulations are finalized. Representatives ------=-100 from our company continue to actively fXlrticifXlte in the regulatory Sulfur Dioxide 81.2 process to anlicifXlte necessary adiustments and upJate our plans. (SO,I Emissions Energy for a new generation IPl plans 10 build and own a portion of a bose-food, coo> fired 630-MW power plant adjocenl to IPrs exisling SUlheriond Thousands of Ions Generating Station in Marshalltown, Iowa. Pending regulalory approval, IPl expecls 2006 2015 groundbreaking for this multiyear project to occur in 10le 2008 or early 2009 and commercial 40 operalion of Ihe plonl in 2013. BUilding a Niln>gen Oxides 29.8 generating facility of this size is a huge, complex (NO.1 30 undertaking. To underslond Ihe scope of Ihis Emissions 20 project, toke a look at the preliminary numbers:

10 • $1.5 billion. The 10101estimoled cosllo be shored by IPl and its porlners 10 build Ihe plonl Thousands of Ions 0 • 1,000. At the height of construction, the number of contracted 2006 2015 employees estimated to be working on-sile in a 24·hour period

• $1 .7 million. The estimaled annual lox revenues Ihot will 15 be added 10 the Marshalltown area Mercury (Hg) 11.8 Emissions .60-85. The number of fulkime IPl employees needed 10 10 continuously operate the plant

The number of on-site labor hours needed 5 • 5.25 million. to construct the plant Hundreds of pounds 0 • $350-375 million. The 10101eslimated casl for all 2006 2015 envi ronmental controls

let's take a look at the environmental controls fhat IPl will install 40 and operate to manage air emissions. Carbon Dioxide 31.6 The "heart" of every generating unit is the boiler and the steam (CO,) 30 turbine. The lechnology selecled will make Ihis Ihe mosl ellicienl coo> Emissions fired plant in IPL'sfleet and one of the most efficient in the country. 20 Using super-critical fXJlverized cool boiler technology means less cool 10 is used for each megawatt·hour of electricity produced. Burning less cool also means lower CO2 emissions (up to 15 percent lower for Millions allons 0 each MWh of eleclricity producedl Ihon Ihe overage cool-lired plonl 2006 2015 in the United States.

10 RESPONSIBILITIES

Allian! Energy supports policy develapmentthat will deliver reasonable near-term greenhouse gas emissions reductions and foster the critical technological innovations thot con increase longer-term reductions. We support local, state and regional climate change initiatives that help us and our stakeholders to better understand greenhouse gas sources and emissions reducfion opportunities unique to a geographic area. However, our company firmly believes that a standardized notional greenhouse gas program is in the best interest of our customers and shareholders. Therefare, national policy development should ul!imately assure consistent action is laken by implementing a multi· sector, economywide approach for the long term thaI prevents patchwork regulation inefficiencies. The primary greenhouse gas emitted from our utility

operations is carbon dioxide (C021 from combustion of fossil fuels 01 power 2006 Greenhouse plants. Allian! Energy All Alliant Energy customers can take advantage of these solutions through a variety of the company's Gas Reductions has not conducted a formal corporate- programs. By offering these energy efficiency and (expressed as equivalent COz in millions of tons) wide assessment; renewable energy programs, our company hopes that however, given our customers will recognize that electricily can and the make up of should be on integral port of the long-term climate utility operations, change solution.

we estimate CO2 comprises at least EMISSIONS PLANNING IN ACTION 95 percent of our Our company manages air emissions in the greenhouse gas context of the overall strategic planning process in order emissions inventory. to implement a multi-emissions strategy that considers Other greenhouse both increasingly stringent environmental requirements Alliant Energy equivalent gases (comprising and growing electricity demand on its electric CO: reductions frO'll 2(1)j less than 5 percentl generating units. Alliant Energy's Environmental actions .. 3.9 million tons primarily include: Pragress Report published in September 2006 included power plant fossil a special Emissions Planning Appendix that shared fuel combustion methane ICH,); power plant fossilluel details of this approach. For further details of Alliont combustion nitrous oxide (N20j; vehicle fleet CO2 Energy's emissions planning process, please visit emissions; nalural gas distribution system methane afliantenergycom. ICH,llosses; and sulfur hexafluoride ISF61 losses from Strategically, our company focuses on the follOWing SF6 -filled electrical transmission and distribution system key areas for reducing air emissions: equipment. • Installation of commercially demonstrated air Increased energy efficiency efforts and renewable emissions controls; energy sources ore key aspects of our company's plans • Power plant efficiency improvements; to reduce greenhouse gas emissions. It's our belief that these ore the best and least expenSive methods • Expanded use of renewable energy sources; to decrease greenhouse gases that can be readily • Energy efficiency programs; and implemented tcx:lay. Our company is also actively • Supporting develapment af technology solutions. pursuing exp:lnsion of biomass opportunities at our new electric generation units.

9 RESPONS B LIT E S II

But that's not all. This planl will have commercially demonstrated environmental controls to reduce the amount of sulfur dioxide ISO,). nitrogen oxides INo,). mercury IHgl and particulate moiler (PMI released into the air. The unit and its site will also be designed 10 incorporate controls to further reduce CO2 emissions when such controls become available. The rendering belovv shows all of the controls as well as their im~cl on the unit's emissions. leI's discuss them in more detail.

Selective Catalytic Recludion (SCR)

We expect the SCR 10 rell"l(We 75-85 percent of the unit's NOx emissions, and we onticip3te investing more fhon $60 million in this system. A chemical reaction, erected by iniecling ammonia into the stream of gases leaving the boiler, transforms the NOx emissions into nitrogen and wafer. These gases pass through layers of material (coiled calo~tl which make the chemical reaction more robust, further redUCing NOx emissions. To prOVide some perspective, the ductwork containing the catalyst will fill a space as large as a five- story office building.

Electrostatic Precipitator (ESP)

Removing PM emissions is the job of the ESP, which places a negative chorge on the particles in the stream of gases to collect and remove them. As the negative"" charged particles pass through a series of positively charged metal plates, the particles ore attracted to them and captured. The captured particles lotherwise known as fly ash) are used for cement proouction, construction and aggregate materials and fill. This equipment will cast approximately Flue Gas Desulphurization $30 million and is expected 10 collect more than 80 percent of the This part of the process takes place in a system cammonly referred fly ash. Picture an eight-story office building - that's how large a to as a scrubber. We expect the scrubber to remove more than 95 structure is needed 10 house this system. percent of the 502 emissions from the stream of gases. Here's how it works: Limestone is shipped to the plant and dumped into giant mills Carbon Injedion filled with hundreds of steel balls. As the mills rotate, the steel bolls Aher the stream of goses leaves Ihe ESP, carbon particles with crush the limestone into a powder. The powder is then mixed with enhanced ability to capture Hg are iniected. Hg in the stream of water to form a thick liquid referred to as slurry. gases attaches to Ihese particles, alb.ving them to be removed from Attached to the stock is a metal cylinder. or absorber tower. The the stream of gases in the next step of the process. limestone slurry is sproyed down from the top of the tower as the stream of gases passes through. Calcium in the limestone reacts with Fabric Filter Bag House ------' the sulfur in Ihe stream of gases to form calcium sulfate, otherwise known as gypsum. which falls to the bottom. The gypsum con be The fabric filter bog house acts like a vacuum cleaner. and we used for manufacturing wallboard Of be spread on agricultural fields expect it will capture more than 95 percent of all PM emissions. to reduce soil acidity. At 12 stories, the scrubber's absorber lower is The stream of gases with the remaining fly ash and Hg-contoining the tallest of the proposed facility's environmental controls, and will particles passes through tens of thousands of individual fabric filters cost nearly $175 million. or bogs. Porticles ore tropped on the outside of the filters but allow the remainder of the stream of gases 10 pass through. Carbon Dioxide Capture (future construdion) Capturing the Hg-contoining fXlrlicles in the fabric filter bog house allows 1Pl.to appropriately dispose of them while continuing CO2 capture controls large enough for this type of unit are still to use the particles (fly ashl captured in the ESP for other uses. in research and development. Although these controls are not The fabric filter bog house will stond more than seven stories loll commercially available loday, IPL has left space in the plant's design with a length half as long as a football field. We expect fa invest to add them in the future. You can learn more about IPl's supporl of approximately $65 million on this phase of the operation. research proiects focused on the development of these controls in the Research and Development section 01 this report.

11 TAKING OWNERSHIP o F OUR ENVIRONMENTAL

SmartBum' significantly reduces NOx Designing and emissions at Edgewater's Unit 5 operating an effective An emissions reduction project of WPL's Edgewater OFA system is Generating Facility in Sheboygan, Wis., achieved complex. It must excellent results using RMT, Inc. 's SmartBurn· combustion deliver the right technology process. Already a law emi~er of NO" amounts of air to the WPl's share of Unit 5's NOx emissions were reduced by right locations within mare than 300 tans (or 25 percent) through July 2007 the boiler to maintain versus this some period of time in 2006, placing it in combustion efficiency the 'Best in Class' category according to monthly EPA and simultaneously comparisons for a walHired boiler without using any minimize the formation of NO chemical injection to reduce NOx emissions. x We attribute the emissions. Both the successful outcome physical layout and Low NO. burner installed ability 10 control the at Edgewater Unit 5 to the installation of 30 law NO, burners OFA system contribute and a SmartBurn- to its effectiveness. designed over-fired Both iPl and WPl continue to use SmortBurn at a air (OFAI system growing number of generating units as a first step in an Unit 5 in fall reducing NOx emissions. Over time, it has proven to be 2006. law NO, a cost-effective approoch to reducing NOx emissions burners and the OFA by optimizing the combustion process with lillie or no system change haw additional ongoing operations and maintenance cost. coal burns in the boiler by controlling haw the coal and air mix. Careful Jump-starting the use of biomass management of this pari of the combustion process in Wisconsin reduces the formation of NOx emissions from nitrogen Biomass is a renevvable fuel source that, when within the air. combined with coal, reduces our net CO2 emissions. The SmarlBurn-designed OFA system iniects streams Using biomass instead of coal recycles the CO, already of air into the upper areas of the boiler to reduce the present in the atmosphere rather than releaSing it from amount of air injected atlhe burners yet maintains the the coal. Constructing a new generating unit with the overall efficiency of the combustion process. limiting air capability to burn biomass is a key first step in expanding injected at the burners further reduces the formation of its future use. NO< emissions. The new boiler being designed for potential expanSion of the Nelson Dewey Generating Station will be capable of burning up to 10 percent biomass alang with its other more conventional sources of fossil fuel. That means the new unit will be able to burn apprOXimately 300 tons (20 to 30 truckloadsl of biomass each day, much of it likely produced within 30 to 50 miles of the plant. The last stop for the biomass before making its way to the plant is an independent off-site fuel supplier. The fuel supplier will perform a number of key functions including aggregating and storing biomass from a large and diverse set of producers, processing biomass into a form ready for use in the unit's boiler and providing or coordinating the deliveries. To support its biomass appetite, the current Physical layout of Edgewater's design includes a Ujust in time~ receiving, storage and Unit 5 oyer-#ired air (OFA) system handling facility 10 be built near the existing units.

12 RESPONS B L T E 5

Biomass products range from woc:xJy biomass to grasses 10 agricultural crop residues. Wcx:x;j wastes (industrial and timber stond improvement), agricultural residues (poor qua lily hay and strawl. and existing switch gross and other grosses nalive to southwestern Wisconsin are a part of the potential biomass supply. Other biomass prooucts yet to emerge may include Irees raised solely far fuel like hybrid paplars or willows. Factors such as land use and impact, production quantity and quality and economic competitiveness will ultimately determine the biomass prooucts of choice.

Just as we don', drill for natural gas Of mine and

transport the cool we burn, OUf comj:X:my has little interest in getting inlo the business of producing, processing and transporting biomass, yelo sustainable and economically viable supply of biomass is critical. As we mCNe forward with building new biomass-cafXJble power plants, we are also working to creale the infrastructure needed 10 lake advantage of this emerging fuel. TAKING OWNERSHIP o F OUR ENVIRONMENTAL

Monitoring mercury emissions Allianl Energy, on industry leader in the reuse of our Allian! Energy is installing Hg continuous emissions cool combustion products ICCPJ. Landfill disposal monitors ICEMsJ at our lorger cooefired power plants. may be the only option and we are working 10 find These monitors will constantly measure Hg emissions at other solutions. our plants and ore required for EPA reporting starting in The reuse of CCP benefits the environment by 2009. Allionl Energy storted installing Hg CEMs in July saving energy and natural resources by ovoiding 2006 at our Edgewater Generating Station. disposal in landfills and redUCing greenhouse gas Installing Hg CEMs is more complex than simply emissions for cement manufacturers. Every ton of installing another probe in the stack and adding data cement replaced by fly ash reduces approximately collection equipment. Structural modifications including one ton of CO2 emissions. platforms, elevators, and shelters ore typically needed as well as a purified water supply and electrical and RENEWABLE ENERGY computer hook-ups. Energy that comes from renewable resources Following initial equipment installation, our such as wind, water, biogas, solar or biomass does company expects that each plant will require at least more than protect the environment. Developing one additional employee to maintain and assure the renewable energy facilities and increasing demand monitors' accuracy. These monitors must be able to for eqUipment and services is creating jobs and achieve measurements down to the p::nls per billion improving the economic outlook of rural areas, level. That's the equivalent of trying to find seven peaple where the majority of renewable energy sources are out af the world's 6.6 billion inhabitants. located. We recognize there is a significanllearning curve regarding Hg. The technology is changing an a day-to- day basis nof only for monitoring, but olso for emissions controls.

Pilot-testing mercury emissions controls We plan to install Hg controls for full-scale field testing at Edgewater's Unit 5 in late 2007 and early 2008. To prepore for this field testing, our company hired an outside firm in 2005 to perform an initial screening and engineering assessment of the optimal Hg control technology. Field testing is important because af the lowsulfur cools used by our campony's power plants. Our plants primarily burn western Powder River Basin (PRBI sub-bituminous coals because this results in

lower 502 emissions. However, it is more difficult to control Hg emissions because PRBcool contains higher concentrations of elemental Hg, one of two major forms of Hg emiNed during the combustion of cool. It does not eaSily dissolve in water which makes it more difficult to collect. The results of this assessment suggest that one step in the most widely-used Hg emissions control process will likely contaminate the fly ash (a by-product of the combustion process), making it unusable as a cement replacement in concrete. This is a signifieanl concern for

14 RESPONSIBILITIES

TOPOfl<)Nll "",0000 WlIldfaffll Jft' Wondfol1'm 1lO,1tJ/N'Q 43SMW (9 Cerro Gordo. 41..3 MW ftarltCC1cWl/1dfarmlt\ a 568MW10 W (9 Montfort'•.,MW

Wind Energy Sources It'\ KilIdin H,I~OO \:I 141MW <® Wind (current) 356MW

~ Wind (under construction) 68MW

Wind (potential) 300-600MW

• Wisconsin Power aod Light projects

We classify renewable energy sources according Wind is our company's main renewable energy to their size: smoll (less thon 100 kilowotts!. medium source. We're fortunate in that the three stales in our (100 kilowotts to 10 MWI ond utilily-scole (greeter service territory all rank in the Top 20 for wind energy thon 10MWI. potential, according to the American Wind Energy Customers with smoll projects typicolly sell electricity Associafion. Minnesota ranks ninth, Iowa is ranked tenth to our utilities when their systems are producing excess and Wisconsin ranks 18th. energy, and buy energy when their renewable energy source isn't prooucing power. Medium-size projects that generale electricity using Renewable Energy landfill gas, biogas from anaerobic digesters or other Sources Used distributed generation technology are gaining in popularity because they reduce waste products. As for utility-scale projects, wind farms and hydroelectric operations are the only renewable energy sources we use that are currently capable of producing more than IOMW OUf two utilities now use over 450 MW of renewable generating capaCity from sources in Iowa, Minnesota and Wisconsin. Through future ownership ·of wind forms we'll increase that number even more. Source: Alliallt Energy records of consumptioo in MWh.

15 TAKING OWNERSHIP o F OUR ENVIRONMENTAL

Cedar Ridge Wind Farm the turbines and towers during the spring and summer of On Nlay 10, 2007, WPl received approval from 2008 and expect them to begin producing energy by the Public Service Commission of Wisconsin (PSCWI to the end of that year. To reduce the impact to wetlands construct the Cedar Ridge Wind Farm. The estimated and streams, the routing of underground electric lines, cost is approximately $16(} 180 million. located in access roads and crane paths hove been mOOified. Fond du lac Counly, Wis., Cedar Ridge will consist of 41 turbines with a total capocily of 68 MW. The Bat and bird papulation Cedar Ridge site was selected because it is one of the studies now underway windiesilocations in the state, with an average wind Preconstrucljon studies to speed of 16 miles per hour. assessthe Cedar Ridge Wind Construction will sfart with the installation of the Farm'spotential for bat and bird turbine access roads and foundations. We pion to erect impacts have been required by the Wisconsin Department of Natural Resources, the U.S. Fishand Wildlife Service and the PSCW as port of project approval. Both studies are now underway, and should conclude in October 2007 and January 2008, respectively. Data collected from these preconstruction studies will provide baseline information for comparison to dato collected after construction of the wind farm is complete. The bat study assesses the behavior and activity po"erns of the different species that fly within the 12.2- square mile wind farm boundary. Data is collected using broadband ocoustic detectors that are mounted on three meteorological towers within the wind farm's boundaries. The cost of the study is approximately $200,000. In addition to the acoustic monitoring, there will also be mist-netting occurring during the summer to capture and identify the species of oots that are present an site. The bats will be identified and released unharmed. Similarly, the avian study wilt measure the presence and abundance of birds as well as their behavior while in the project area. The bird data is being collected by qualified ornithologists observing deSignated locations for specific periods of time. The analysis will be divided into four data sets- spring migration, nesting/summer dispersal period, fall migration and winter actiVity. The cast of these studies is approximately $125,000. As port of the PSCW arder, WPL is required to conduct post"'Constructionbird and bat studies for at leasllwo years. WPL will consult with the Wisconsin Deportment of Natural Resources,PSCW and U.S. Fishand Wildlife Service an the study design and methodology.

16 ~.( RESPONSIBILITIES ..'

Second Noture ...., ; A greater appreciation for the outdoors and a desire .J to preserve our natural resources for future generations I is motivating people 10 lake a look at the impact their ... ·1 .... I lifestyle choices hove on the environment and find ways I to reduce it. Living a more energyeffident lifestyle is ....., only one way to preserve our environment. Increasing the growth and development of renewable energy is another. j Over 14,000 customers I in Iowa, Minnesota and ..~...~ Wisconsin hove chosen to support the growth 01 renewable energy through their membership in Allion! Energy's Second Nalure program. --·i Residential customers who . , \~ join Second Nature select a ... . , _······1 IXlrticipolion level 125 percent, ~ -, 50 percent or 100 percentl ,..._ ..' ·..... --,.1 based on their monthly electrical . ... - "'j. , consumption and pay a premium of two cents per kWh. Businesses nominate a monthly dollar amount. The portion of electricity the customers choose to support through their premiums is err purchased from renewable j ? rl'~ sources within Alliant Energy's \;,~,- / service territory and added ... to the power grid to replace energy that would be otherwise ~\ .... generated from fossil fuel sources. ," This year, the Second Nature program in Wisconsin became Green-e certified. joining the programs in Iowa , and Minnesota. Green-e is the leading certification and ...··~'1 verification program that sets standards for renewable ...... Ilo~"'" energy programs and products. Green-e is a program of Ihe Center for Resource Solutions, a nonprofit organization that deSigns and operates national and international programs supporting the increased supply and use of renewable energy resources. TAKING OWNERSHIP o F

New Bohemia Solar Project

Talk about renewable energy, and the sun often geTs lop billing - lor good reason. Solar energy is clean, efficient and accessible and in our communities today, more and more solar projects, which capture solar energy 10 generate electricity or heat water for homes and other bUildings, are being installed. The resource that supplies solar energy to the Second Nature program is the New Bohemia Solar Project, the largest solar project in Iowa. An array of solar ponels capoble of generating 7.2 kW 01 electricity ave Chesky enrolled in the Second Nature was installed in summer 2005 at the Kouba BUilding, program in 2001 because he wanted to go port of a redevelopment area adjacent to the Bohemian Da step further.in protecting and preserving Historic Commercial District in Cedar Rapids. aUf environment' by supporting fhe growth of The project was a partnership between the Iowa renewable energy (n \'Xisconsin. In addition to Renewable Energy Association, Alilonl Energy, the City participating in Second 'Nature at'the 100 percenl 01 Cedar Rapids, Tharland Compony, and the Iowa level, Dave's personal and professional' life is full Department of Natural Resources, with funding provided of experiences that by the u.S. Deportment of Energy (DOEI. It received demonstrate his a Governor's Iowa Environmental Excellence Award in A new solar power commitment He:s 2005. been a member New Bohemia is the highest-rated solar project of all system generates of the Midwest DOE-supported projects in the country, based on scope, Renewable Energy fXlrtnership among organizations, and benefits to the energy for his home. Association IMREAJ community and the environment. Hands-on workshops lor about. 10 years, and tours have educated the general publiC about solar qn9 he',vdunteers technology at the MREA's annual energy fair." Qave: recently lulfilled.one 01 his dreams by installing a solar ENERGY EFFICIENCY power system on his home and is now producing Oter the post few years, there's been a growing his powee own concern about ihe environmental and economic COSIS Dove also actively manifests his commitment t6 of generating electricity. Customers' priorities have our environment in his professional' career as the changed - people are more aware af the imfXlct their site manager of the International Crane Foundation energy use and lifestyles have an the environment. in Baraboo, Wis., where he is resfX>nsible for identifying and implementing energy-saving measures. -Two renewable energy-syste.ms that"Dave has helped implement on the grounds include a grid-tied photovoltaic system and a solar domestic hot water system. When thinking about our environment for future generations, Dave believes people need to be looking at ways that they can conserve their use of energy and thinking seriously about using renewable energy opportunities.

18 OUR ENVIRONMENTAL RESPONSIBILITIES

Sioies are requiring utilities 10 increase the amount of renewable energy in their porttolios, more strict environmenlOi regulations ore being enacted and new energy policies are being debated. Add 10 this the increasing awareness of climate change and the rising costs of many goods and services, and it's easy to understand why our energy efficiency programs have achieved exceptional results. Here's the proof that our utilities take saving energy seriously - 75 fulftime employees from six different departments in three states do nothing but work with our customers to help them save energy. Twenty-five energy efficiency programs designed for residential, agricultural, small business and commercial/industrial customers and a 2007 budget of $93 million support this eHort. Each year, commercial and industrial customers install new, energyeHicient equipment to replace less-eHicient equipment. tn 2006, our energy eHiciency programs resulted in new, odditionol savings of olmost 200,000 MWh of electrical energy and over four million therms of natural gas energy. Despite the fact we hove spectacular results to report, every employee realizes that we, and our customers, can do a lot more.

19 TAKING OWNERSHIP o F OUR ENVIRONMENTAL

Energy savings on the farm

In 2004 IPl implemented an aggressive program designed ta address the unique, yet frequently overlooked, energy needs of agribusiness customers. Today, most profitable forms ore highly automated and tremendous opportunities for energy savings exist. A hands-on approach enables our siaff of agricultural representatives to make recommendations and assist customers with energy efficiency plans, new services and updates, rate evaluation, energy management strategies, U.S. Deportment of Agriculture (USDAI grant applications, and electrician consultations. Educational presentations and appearances at agricultural trade shows and Key program highlighJs: events give customers valuable information on energy • Provide an on-site energy audit with energy management strategies and energy efficiency. efficiency recommendations and economic The program has even hod onalysis specific to that business operation, a positive impact on those not iust averages. who manufacture products for • Energy recommendations are based on the farm use - Multifan Corp., a entire farm operation, rather than individual ventilation fan supplier oosed in pieces of equipment. Process improvements typically result in Bloomington, III., has changed its much higher energy efficiency saVings. focus and modified its products • Encourage new construction and replacement of older, less- to meetlPL energy efficiency efficient equipment. Incremental costs are Significantly lower standards. with new construction and energy savings extend through the life of the new facility.

TURNING A SKEPTIC INTO A BELIEVER

ole Meyer began working in 1989 at a 750ww farrow- to-feeder pig operation prodUCing about 18,000 pigs Dannually located outside Grundy Center, Iowa. When the compony wes purchased by Grundy Pork in 1996, Meyer wes retained as manager and -hired a consultant to audit the faCility and document energy consumption reqUired to claim exemption from sales tax for his production equipment. At the some time, Meyer storted consulting with IPLagriculture representatives to learn which eqUipment was more energy efficient, and how IPL'sreoote incentive program worked. He said, ·Once I realized what energy was costing, I started advising the owners to replace old equipment with newer energyefficient models." Aher making the first changes, it didn't toke long to see the benefits of energy efficiency. IPLs rebate program prOVided approximately 25-50 percent Idepending on the eqUipment! of new equipment costs as a rebate, which allowed a shorter poyback of the company's investment. RESPONSIBILITIES We practice what we preach ••• No one knO'Ns better than we do that small steps can make a big difference. That's why we're implementing plans to significantly reduce the energy consumed by apprOXimately 900 employees who work in the corporate headquarters in N\adison, Wis. The plan focused an three specific areas: lighting, general electrical use and heating, ventilation and air conditioning (HVACI. The high maintenance and high energy use lighting in Ihe moil center, the elevators and four large conference rooms have been replaced with law voltage, energY"fficient LED lighting. In the coming months, lighting in the publiC areas, the parking garage and the b:Jlance of the conference rooms will also be changed. Aher that, the lights in the parking lots and an upgrade The Alliant of the interior Energy corporate • Development of on energy audit process for use with the headquarters lighting controls USDA 9006 energy efficiency grant program, which in Madison, Wis. that will dim the specifically funds replacement of old ecuipment. The ceiling fixtures process was nationally recognized by the USDA Rural based upan outside lighting will be Development Office for its effectiveness. With assisfance completed. from agricultural representatives, 15 farm customers We're not stopping there. Through received $475,000 in grants from the USDA in 2006 the use of solar technology, we'll heat 10 complete electric and natural gas savings projects. the water for the building without • In 2006, aver 260 Iowa farm customers participated sacrificing sanitation or convenience . The installation of solar panels on the in IPLSAg Program and received $300,000 in rebates. Alliant Energy's These customers will save a total of 4.3 million kWh, roof' will be complete in the next few 22-story building in downtown Cedar and $390,000 annually an their utility bills. months. Rapids, Iowa, has The feasibility design far the ih own energy installation of solar cells on the roof will efficiency success be completed in the next few months, stories to tell. Since 1996, the building'. with a gool to install the panels in early energy usage 2008. Facility managers are currently has been reduced investigating the use of solar heat by more than 23 percent thanks to during the winter months to supplement Since taking ownership new insulation, of the company a few the bailers. lighting, windows, years ago, he has The corporate headquarters currently andHVAC equipment. Chillers, uses ice to cool the building. By continued to upgrade condenser pumps, equipment, replacing replaCing the controls for the ch illers chilled water lighting, ventilation and boilers, we can more efficiently pumps and the make ice during off-peak hours, building's cooling fons, and controllers in tower have also 2006. "In 1996, we enabling the air conditioners to remain been replaced in were spending $3,000 off most of the business day. Office the past 11 years. Dale Meyer, left, and Dave per month for electricity. thermostats are kept between 74·76 Warrington, IPL ag representative. Today, we are spending degrees in the summer months and 68· half that amount, and 72 degrees during the winter. since converting 10 a 2S0-sow farrow-la-finish operation, we Although savings for the general electriC projects aren't yet are actually running more fans than we did before." Neyer available, the lighting praiects saved lust

Appliance recycling program Building smart from the start

$100. Did you know thot's how much the average Retail electric or natural gas customers in IPL terrilory 15-year old refrigerator in your garage or basement is can participate in a new construction program that costing you each year? Residential and small business was launched in 2005. The program offers a unique customers receive a $35 opportunity for building owners, architects and deSign incentive check for each ~~.i·':~~ . engineers to porticipate in an integrated design process appliance they recycle that uses bUilding performance simulation modeling to through IPLsAppliance identify and implement cost-effective energy efficiency Recycling Program. In strategies. The program offers three incentives to the 2006, aver 5,700 units customer: were recycled. Removing I~c(tl • Free energy design assistonce - IPLS spare and inefficient consultant will work with the building owner and working refrigerators, the design team to help them incorporate energy freezers and room air conditioners from operation and efficiency into the building deSign. contracting for safe and environmentally responsible • Design team reimbursement - IPI will pay disposal of these units lost year resulted in a 5.6 million a flat fee to the deSign team [based an the square kilowatt-hour savings, and impressive amounts of footage of the projectl to help customersoffset the reclaimed/recycled materials. costs associated with haVing the deSign team attend • 1,357 A50 tans of steel the energy deSign assistance meetings. • 585 switches cantaining mercury • Construction incentive - IPl will pay the building owner an incentive based on the electric or gas • 1,145 Ibs. af refrigerant saVings installed in the building. The energy saVings • 1,965 capacitors are verified by our consultant after the bUilding is occupied. This program has on Currently, over 50 proiects are enrolled in the impressive track record - program. A variety of businesses - office buildings, since 1999, 34,130 schools, and retail stores - have achieved significant units have been energy savings through their participation in the recycled. program. A retail customer, which occupies a 100,000 square- foot building, saved aver two million kWh by focusing on energy efficiency improvements on its soles floor. Key strategies included dimming daylighling, a new lighting

deSign, installation of a heat reclaim system and CO2 control of outside air. Results indicate that the facility is saving 51 percent more energy as compared to the Slate of Iowa energy cooe. RESPONSIBILITIES Putting businesses on an energy diet In 1987, WPL began a pilot program with a unique concept - to encourage customers to use less of our product. 8right Ideas lor Your Business, as the program was coiled, built upan wprs already established RESEARCH AND DEVELOPMENT commitment to energy efficiency. For Annual research and development expenditures torgel initiatives years, WPL technical consultants had been offering advice that will enhance the execution of our corporate strategy. In 2006, to schools and local governments to help them trim their Allian! Energy invested $4 million in various programs 10 achieve energy costs. greoler operating efficiency and technology advancements. This With Bright Ideas for Your Business, WPL added a year, we will focus on these energy-related issues: financing option to help businesses install energy-efficient technologies. The utility would pay the upiront cast of the • environmental emissions controllechnology, equipment, and the business paid WPL back with saVings • global climate change, from its monthly energy bill. WPL took Bright Ideas for • generation build-out, and Your Business to the next level by • aging generation fleel infrastructure. including project coordination services 10 help Ihe process run This amount includes both discretionary research funds as well smoothly. as funds collected from customer billings as mandated by slate In his role as a WPl technical regulations. Although a majority of our research and development consultant in 1988, Charlie fafard dollars are spent on collaborative research programs overseen remembers early reactions to this by the Electric Power Research Institute IEPRIL we also provide unique program. "Customers were funding to other important partners: Iowa State Universily, the surprised," he soys. "They thought University of Minnesota, the Iowa Energy Center, the Universily of it was strange that we wanted to Iowa and the Energy Center of Wisconsin. help them to use less energy, but it In particular, ongoing EPRI-sponsored research proiecls thai didn't take long for them to realize we help fund have the patential to significantly impact two of the this could help their baffom line." In the lirst year of the Bright Ideas for Your Business energy industry's biggest challenges - reducing CO2 emissions from coal-fired power plonts and accelerating the commercial program, WPl Signed 14 contracts to help customers deployment of two advanced cool power system technologies, finance energy efficiency improvements Ultra-Supercritical Pulverized Cool (USPCI and Integrated with an average contract amount of Gasification Cambined-Cycle (IGCe). $15,000. EPRI'sCoroon Capture Project tries out a unique ond lower cost A lat can change in 20 yecrs, but WPl's commitment to energy efficiency technology to separate and capture CO2 emissions from ooth new and existing ccx:Mired fX>wer plants. This project tests a two-step remains strang. In 2006, Shared Savings (the program changed names process to remove CO2 emissions. Resultsfrom the demonstration in 19981 produced 227 contracts with project are anticipated to be published in early 2009. Another noteworthy EPRI project, Cool fleet lor Tomorrow, an average financing amount of almost assists energy campanies adapting USPC and IGCC technologies $147,000. with permitting, deSign, construction, and operation issues. With a Since 1987, Shared Savings has typical investment of mare than $ 1 billion to deploy one of these avoided the generation of over five technologies, this knowledge will speed up their Widespread use. billion kWh - enough energy to power almost 498,000 homes for one year. Not only that, CO, emissions avoided through Shared Savings over the last 20 years are the equivalent of taking over three million cars off 6 Extemal Research the rood. and Development 4.0 4.2 In 2006, Shared Savings was named the winner of the Dollars Spent 4 "Inspiring Efficiency Impact Award" by the Midwest Energy Efficiency Alliance, a respected regional network of energy 2 efficiency supporters. The program was recognized for the measurable and significant impact it has had on reducing Millions of dollars 0 energy consumption, as well as increasing the market penetration of energyefficient products and technologies in Sourte: fERC Form I hbngs 2004 2005 2006 the Midwest.

23 TAKING OWNERSHIP o F OUR ENVIRONMENTAL

of heating and cooling continues over and over as the plant operates. The fX>tenliol expansion of the Nelson Dewey Generating Station will consume more than 700 million gallons of water each year, about as much as 5,000 typical households use. WPI will use a lateral collector well to bring water into the plant. A lateral collector well uses water coming from the river as its source but collects it deep underground, 100 feet below the river's bottom, in a series of tube-shaped screens that spread out from the well's bottom like the spokes an a bicycle wheel. The water is then pumped to the surface for use in the plant. Using a lateral collector well allows the plant to get the water it needs with an imperceptible impact on the river and its ecosystem. Other approaches that bring the water in through mon-made structures placed into a river's body disturb its ecosystem. As the water comes into the plant through these structures, its increased speed and force can iniure or kill tiny fish eggs, larvae, very young fish and other weak or delicate creatures that make the river their home. LAND AND WATER MANAGEMENT Distributing power to our customers New generation siting There's no question thaI siting and installing electric Preserving Marshalltown, Iowa', we~and, and natural gas distribution systems have on impact on the land where the equipment is located, as well as In planning far the new unit at IPLSSutherland areas nearby. Some of these facilities cross potentially Generating Station in Marshalltown, Iowa, IPL is sensitive habitats like wetlands, grasslands, savannas working 10 reduce any impacts to wetlands. The site and forests, several of which are home to protected or layout has been custom-designed to occommcxlote endangered species. the preservation of existing wetlands on the properly When considering locations or routes for new in and around the proiecl site. In those areas where facilities, or wetlands could not be avoided, IPL is warking with the when conducting U.S. Army Corps of Engineers to create new wetlands maintenance to replace those fhat are permanently impacted. For the or upgrades on 10101project, IPl anticipates keeping its wetlands impact existing facilities, below one-half oere. our employees make a special Protecting the mighty Mississippi effort to work around Bose-load power plants use endangered species habitats, avoid disturbing large amounts of weter. Not wetlands and control erosion. When our line only is water heated in the ,~,t.,~ crews cannol avoid these areas, special boiler to form steam that turns " care is taken to reduce ecological, social the electric generator, it also ,rMrr and cultural impacts by working closely cools the used steam, turning ~.''-'.~'<. J; " with community organizations, local o it oock into water to heal in '~Q li~'~~-:;:;;'~ governments, environmental groups the boiler again. This cycle ~... -;:,~ and state agencies.

o 24 o RESPONSIBILITIES

Protecting an endangered species that is used in road constructionl and other residues Wisconsin is home to the largest population of the that contaminated soil, groundwater and sediments in lederally endangered Korner Blue Burterlly, and WPl waterways. Through previous or present ownership, IPl is doing its port to help the species thrive. As a portner is respansible for 33 former siles in Iowa, six sites in in Ihe Korner Blue Burterlly Habilal Conservation Plan, Minnesota and two sites outside of our service territory. WPl has agreed to supporllhese burterfly populations WPl has responsibility for 14 siles in Wisconsin. by managing our properties with consideration of the Each MGP site goes through a multiyear process to investigate the extent of contamination, determine clean-- butterfly's habitat. OUf project managers, line crevv-sand engineering technicians pIon line clearance and new up options, perform remedial actions, conduct long- construction schedules during the dormant season where term groundwater monitoring and achieve site closure known butterfly populations are located. We also assist from the regulatory agencies. Our site managers work in conducting annual surveys to discover new bUl1erfly closely with contractors, landowners, communities and state and federal regulators to meet all environmental populations. Following the recent completion of a natural gas rules and find appropriate uses for the reclaimed land. In 2006, IPl received regulatory closure for Iwo pipeline installation on Hwy. 80 soulh of Necedah, additional siles, increasing Alliant Energy's total closed Wis., WPl slaff helped to seed a one-mile stretch site count to 14 at the end of that year. with a combination of nine nalive plant species Cleaning up Clinton, Iowa's MGP site thai includes wild lupine, limited information and documentation made the Ihe sale food of Ihe investigation and remediation of the former Clinton, burterlly larvae. Nalive lO'Na, MGP site anything but routine. What was knO'Nn nectar flower species that is Ihallhe former MGP was operational between 1869 the adult burterllies enjoy and 1952. Aher we began investigating the site in were also a pori of Ihe 1989, preViOUSlyunknown structures and piping were seed mix. discovered and levels of contamination called for Allianl Energy Signed innovative treatment mefhods. an agreemeniiosl year 10 Other fXJrtners in the porlner wilh the u.s. Fish EPA-Ied projecl include and Wildlife Service, Ihe Iowa Deporlmenl of American Transmission Company and Adams-Columbia Natural Resources, the Cily Electric Cooperative to turn 2.3 acres of vacant field 01 Ciinion and Ihe Clinlon and degraded wocxJland to nalive prairie in hopes thot Former /v\anufactured Gas iI will provide habilal for Ihe Ihumbnaifsized burterlly. Plonl Communily Advisory The restoration is faking place at a substation near Group. Hancock, Wis., where all three utility companies own Soil remediation activities property or right-of-way easement. !excovotion and thermal treatment) began in late Reclaiming land 2004. In lole 2005, Ihe Iv\onufaclured gas plants IMGPsJ roosled cool, coke thermal treatment unit was Steaming pile of treated .oil offer and oil 10 produce gas as fuel for lighting, healing and relocated to the site in it com •• out of the processor at the Cinton, Iowa. MGP site. cooking belween 1820 and 1950. This process was Clinton to eliminate the phased oul wilh Ihe Widespread ovailabilily of na;urol cost of transporting the gas. contaminated soil to an off-sile treatment facility. As of For Ihe posl 17 years, !Pl and WPl have been April 2007 Over 120,000 tons of soil were excavated, redUCing environmental contamination and restoring treated, and returned 10 its original location. Ground- land 01 former MGP siles Ihrough the cost-effeclive water continues to be monitored while a treatment plan management and cleanup of the coal tor (similar to tar is developed.

25 OUR E N V RONMENTAL PERFORMANCE

CO2, S02 and NO:.: generation emissions roles Using EMIS• (Environmental Management dropped in 2005 due to increased use of natural gas as a fuel source, resulting from a full year of commercial Infarmatian System) operation of the natural gas-lueled Emery Generating Many hours of work over the past three Stalion. In addition, NOx generation emissions rotes years has been eliminated through the use of continue to decline primarily from the use of SmartBurn a centralized, web-based EMIS provided by technology at more of our coal·fired generating units. Enviance, Inc. We use the system to help us manage our environmental responsibilities at mare than 50 of WPLS and IPLscoo>fired bailers 2400 Average and combustion turbines. Besl of all, it links over 2311 Carbon 2276 2279 120 employees at OUf generating facilities and .. 2300 Dioxide (Co2) corporate offices, helping them to manage air, Emissions 2216 ~9Q water and waste emissions. • 2200 We have configured our system to produce more • Ibs./glOss thon 500 specialized reports, many in a specific megowatthour 2100 format required by state and federal regulators. The 2002 2003 2004 2005 2006 system also allows employees to track more than 1,000 environmental compliance tasks annually, and sends reminders when a task needs to be 9.0 Average 8.6 completed. 8.4 8.3 Sulfur Dioxide 8.5 In addition to reporting and task management, (502) • a the EMIS also improves data collection, Emissions 7.8 8.0 manipulotion and compilation. We use data from , ... 7.5 the system in our emissions planning 10 meet CAIR Ibs./grass 76 and CAM.R reqUirements, to trock NOx emissions megowolH100f 7.0 reduclions from SmartBurn projects, and to monitor 2002 2003 "2004 2005 2006 our renewable energy production.

5.0 Average 4.3 Nitrogen 3.9 4.4 Oxides (NO.1 3.8 Emissions "-• Generation emissions 3.8 3.2 The generation emissions rates represent the average 3.1 "- •2.9 2.6 emissions for the gross electrical energy generated Ibs./gross megcrwon-floU1 in a given year from a selected group of fossiHuel 2.0 generating units. This selected group of unils includes 2002 2003 2004 2005 2006 all Alliant Energy ownership partions of fass;>!uel generating units that are required to have Continuous Cakulatecl eminions rates use EPA'"CIcceptedContinuous f:mission Monitoring system. total emissions reported to Emission Monitoring systems ICEMs) installed. The EPA aeon Air Markeh Division (CAMD) on EPA Electronic generation emissions rates are aggregate totals of the Data Reports. These figures include only the Alliant group. They do not relate to any specific generating unit Energy ownership portion of generating unih that report emissions to the EPA CAMD. Remaining percentages or any Single type of fossil fuel. owned by others are not included in this rcrte calculation.

26 Toxic Release Inventory Alliant Energy Electric Generating Facilities Our primary fuel is cool, and similar to any soils Reported Toxic Release Inventory found on or belovv the surface of the Earth, it contains (Thousands of pounds) small trace amounts of other chemicals. During the cool combustion process. these trace chemicals form Chemical 2004 2005 2006 small amounts of toxic compounds which are released Antimony compounds <1 <1 into the air or water, contained within solid wastes sent to londfills, or used elsewhere. In 0 typicol year, a generating unit burns a very large amount of cool, Borium compounds 422 644 696 and these frace chemicals can odd up to reportable amounts. Copper compounds 21 20 Under the federol Toxic Releose Inventory ITRI) program, the EPA requires all U.S. generation facilities 10 annually feport the amounts of these Irace toxic chemical Mangonese compounds 31 71 56 compound releases thai physically leave electric generating facilities. Nickel compounds 6 9 41 None of these lrace chemical releases is continuously measured directly. Estimated amounts are calculated bJsed on chemical analysis of waste streams, or by Zinc compounds 406 373 454 using EPA-approved, science-based emissions factors. The year-to-year variance observed in the table for Hydrofluoric acid 531 512 506 individual chemicals is a result af three factors:

• cool is not a homogenous substance and the Ammonia <1 concentrations of trace chemicals in coal deposits can vary significantly even from a single mine, and more- so from different mines;

• new emissions rate data and calculation Source: Annual Form R sl.bmitted to the Environmental Protection Agency und8f the lOJlit methodologies are continuously being developed us. Release Inventory Program of the Emergency Protection and Coovnllllity Right-la-Know Act. based on belter technology and measurement science "Other hydrocalbons includes: Benzo(!tUlPeryiene, Oio~n and FtJrans. Naphthalene. end Polycyclic which, in turn, resuhs in changes to the emissions Aromatic compounds. factors used; and

• introduction of additional chemicals for new processes, for example, ammonia for air emissions controls.

The increase in sulfuric acid emissions in 2005 and 2006 is due to the utilization of a more accurate calculation methodology for emissions from combustion of petroleum coke 10 supplementolluel used in some cooHueled boilersl.

27 OUR E N V RONMENTAL PERFORMANCE

------~lOO Coal Ash Utilization Rate

Source: Alliant Energy records and Amlrican Coal Ash Association

PCB material disposal Polychlorinated Biphenyls {PCBs)ore mixturesof man·mode chemicals which commonly were used in electrical equipment due to theif non-flammability, chemical stability, high boiling point and electrical insulating properties. However, concern over the toxicity and persistence in the environment of PCBs resulted in the United States' ceasing manufacture of PCBs in 1977. Existing equipment containing PCBs can continue to be used for its original purpose subject to management under the Toxic Substances Control Act. Alliant Energy follows the general electric utility industry practice of removing PCB-containing eqUipment Coal ash utilization identified during repair and servicing operations. In an In 2006, our compony recycled or beneficially effort to eventually eliminate the use of PCB-containing used over 500,000 tons of cool combustion products eqUipment within our system, all of the PCB-containing ICCPI. CCP includes ash and slog from the direct equipment identified during these operations is disposed combustion of cool. Cement replacement in ready-mix of and not returned to service. concrete accounts for over half of CCP reuse, while The amounts shown representlhe total moss of PCB in construction, aggregate materials and fill malerial material plus the associated fluids, equipment and account for the remainder. The utilization rale declined debris in which the PCB material is contained and are slightly in 2006 primarily because allowable uses01 not iust pure PCBs. The actual PCB concentration in bottom ash as fill became more restrictive. However, these disposal actions is rarely above 500 parts per this utilization role is above the U.S. industry average million. This means that for every ton disposed, the of 40 percent, as reported by the American Cool Ash actual PCB material removed from service is less than Association for years 2004 and 2005. one pound.

28 / i

The amount of PCB-contaminated equipment, soils and debris disposed varies from year to year. Most of the variance depends on the number of incidents where PCil-<:antaining electrical equipment fails and fluids leak to the ground.

PCB-Containing 284 281 Equipment and Debris for Disposal 176

Thousond$ of kilograms (kg}

Source: PCB Annual Document 2004 2005 2006 Report as reqllired under the Toxic Substarms Control Acl.

Wind energy sources Reportable spills Alliant Energy wind energy sources include wind In 2006, we reported 64 releases of hazardous generation purchased under long-term agreements with material or spills to governmental agencies. The majority third porty suppliers. of these spills are caused by equipment failures/leaks, vehicle accidents, and electrical equipment damaged by high winds and flying debris during storm activity. 1000 Wind Energy 871 All spills were cleaned up, and the contaminated sails/ 783 816 Sources 800 debris properly disposed. 600 400 100 200 Reportable Thou$ond$ of 79 megawatt-hours Spills 80 0 64 64 if) 2004 2005 2006 40 20 Number of spills 0 Source: Al1lanl Energy records 2004 2005 2006

29 WEB S T E REFERENCES

Alliant Energy: Southwest Badger Resource Conservation www.alliantenergy.com & Development Council: www.swbadger.com Alliant Energy (Financial information, including links ta SECsubmittals): U.S. Corps of Engineers: www.olliantenergy.com/docs/groups/publ icl www.usace.army.mil documents/pub/pOl 3587.hcsp U.S. Department of Agriculture American Wind Energy Association: Rural Development Office: www.Qwea.org www.rurdev.usda.gov

Edison ElectricInstitute: U.S. Department of Energy www.eei.org (Climate Change): www.energy.gov/sciencetech/climatechange. ElectricPower Research Institute: hlml www.epri.com U.S. Department of Energy Global Roundtoble on Climate Chonge: (Energy Informotion Administration/Energy www.earthinstitute.columbia.edu/9roec Emissions Data): lowo Deportment of Notural Resources www.eia.doe.gov/environment.html (Air Quolity): U.S. Environmental Protection Agency www.iawed"r.com/a iflindex. html (AirQuality): Internotionol Crone Foundation: www.epa.goY/ebtpages/air.html www.savingcranes.org U.S. Environmental Protection Agency Iowa Utilities Board: (ClimoteChange): www.stote.ia.us/iub www.epa.gov.c1imatechange

Midwest Energy EfficiencyAlliance: U.S. Fish & Wildlife Service: www.mwallionce.org www.Fws.gov

Midwest Renewable Energy Association: Wisconsin Clean Coal Study Group: www.the-mrea.org www·ose.wi.gov/CleanCoal/index-cieanCoal. hlml Minnesota Pollution Contral Agency (Air Quality): Wisconsin Department of Natural Resources www.pca.stote.mo.us!air/index.html (AirQuality): www.dnr.state.wi.us/org/ ow lair Minnesota Public Utilities Commission: www.puc.state.mn.us Wisconsin Focus on Energy: www.foeusonenergy.com Multi-state Climate Registry: www.theclimateregistry.org Wisconsin Task Force on Global Warming: www.dnr.wi.gov/environmentprotect/gtfgw Public Service Commission of Wisconsin: www.psc.wi.gov

30 L S T o F ACRONYMS

BART- Best Available Retra6t Technology kW-Kilowan

CAA - Cleon Air Act kWh - Kilowatt-hour

CAG - Community Advisory Group LSS -lean Six Sigma

CAiR - Cleon Air Interstate Rule MGP - Manufactured Gos Plant

CAMR - Cleon Air Mercury Rule MPCA - Minnesota Pollution Control Agency

CCP - Cool Combustion Products MREA - Midwest Renewable Energy Association

CEM - Continuous Emissions Monitor MW-Megawon

CH. - Methane MWh - Megawan-hour

CO2 - Carbon Dioxide NAAQS - Notional Ambient Air Quality Standard

DSM - Demond-side Management N20 - Nitrous Oxide

EE - Energy Efficiency NOx - Nitrogen Oxides

EEl - Edison Electric Institute OFA - Over-Fired Air

EMIS - Environmental Management InFormation PM - Particulate Moner System PRB - Powder River Basin ENH&S - Environmental, Nuclear, Health & Sofety PSCW - Public Service Commission of Wisconsin EPA - U.S. Environmental Protection Agency RAeT - Reasonably Available Control Technology EPRI- Electric Power Research Institute SCR - Selective Catalytic Reduction ESP - Electrostatic Precipitatar SEe - Securities & Exchange Commission GHG - Greenhouse Gas SIP - State Implementation Plan Hg-Mercury S02 - Sulfur Dioxide HVAC - Heating, ventilation and air conditioning USDA - U.S. Deportment of Agriculture IDNR - Iowa Deportment of Natural Resources USPC - Ultra-Supercritical Pulverized Cool IOCC- Integrated Gosi6cation Combined Cycle WDNR - Wisconsin Department of Natural Resources IPL-Interstate Power and light WPL - Wisconsin Power and light

31 GLOSSARY o F T E R M S

Best Available Retrofit Greenhouse Gas (GHG): Any Technology (BART):An emission gas that absorbs infra-red radiation in the limitation oosed on Ihe degree of reduction atmosphere. This includes gases that trap achievable through the application of the the hoot of the sun in the Eorth's atmosphere, best system of continuous emission reduction prodUCing the greenhouse effect. Some for ooch pollutant which is emiHed by on greenhouse gases occur naturally in the existing stationary facility. The emission atmosphere, while others result from human limitolion must be established, on a case- activities. Naturallyoccurring greenhouse bycase basis, taking into consideration gases include water vapor, carbon diOXide

the technology aVailable, the costs of ICO,!. methane (CH4!. nitrous oxide

compliance, the energy and non-air quality (N20J, and ozone. Human activities environmental impacts of compliance, also odd to the levels of most of these any pollution control equipment in use or natural1yoccurring gases from a variety in existence at the source, the remaining of industrial manufacturing processes, fuel useful life of the source, and the degree combustion processes ond agricultural

of improvement in visibility which may practices, including: CO2, CH4, N20, roosonobly be onticipoted to result from the hydrofluorocorbons (HFCs!. perfluorocarbons use of such technology. BART-eligible sources IPFCs!. and sulfur hexafluoride ISF01. include a stationary source which was not in operation prior to August 7, 1962, and was Integrated Gasification in existence on August 7, 1977, and has Combined Cycle (IGCC): A power the potential to emit 250 tons per year or generation system which produces synthesis more of any visibility-impairing air pollutant gas (syngas} that is converted from fossil fuel and is in any of 26 source categories listed and then burned to generate electricity. in the Regional Haze regulation. NAAQS - National Ambient Air Clean Air Act (CAA): The primary Quality Standards: NMOS address federal law governing the regulation of a handful of ambient air pollutant issues on emissions into the atmosphere. Originally a nationwide basis. The federallydetermined possed in 1963, it has been amended stondords reflect a threshold, above several times, with major changes in 1970 which, public hoolth is demonstrated to be and 1990. imfXlcted. Designations for the respective stondords reflect the application of the Carbon Dioxide (C02): A colorless, concentration thresholds to fXlrticular areas odorless, nonpoisonous gas normally part of and a formal determination if the standard is ambient air. Fossilfuel combustion results in being attained or violated. Areas violating

the proouction of CO2 emissions. the standards are designated nonattainment and require attainment SIPs, which contain Global Warming: An increase in enforceable emission control plans for the the near surface temperature of the Earth. appropriate chemical/pollutant precursors to Global worming has occurred in the distant the pollutant of concern. post as the result of natural influences, but the term is today most ohen used to refer to the worming some scientists predict will occur as a result of increased anthropogenic emissions of greenhouse gases.

32 Nitrogen Oxides (NOx): NO, Reasonably Available Control is chemical shorthand for a duster of Technology (RACT):RACT is 0 intermediary chemicals in the atmospheric specified emissions control program nitrogen process. NO transforms rapidly defined on a unil-specific basis or info N02 after its formation in combustion developed on a more categorical basis. processes and subsequently can interact It is required for major sources in a non· with ammonium species to form nilrotes thol attainment area that emit a pollutant or impact viSibility and PM2.5 concentrations. pollutant precursor above a specified NO, playa key role in the formation of threshold bosed on either potentiol or elevated ozone (03) concentrations. actual emissions. RACT is a federally mandated Stote Implementation Pion ISIPI Ozone (03): A very reactive, axidotive component for most nOfKJttainment areas. form of oxygen containing three oxygen atoms. Ground-level ozone is created in SIP - State Implementation the atmosphere via chemical reactions of Plan: SIPsaddress the overoll stote pion precursor pollutants le.g., NO, ond volatile for ensuring attainment of the notional organic compounds) in the presence of ambient air quality standards as well sunlight. Ozone is one of the ambient air as discrete plan revisions addressing pollutonts for which the CM sets NMOS required federal components of the state air oosed on ambient concentration thresholds. management programs. Ground~eYelozone is the major component of smog. Ozone in the upper atmosphere Sulfur Dioxide (502): SO, is 0 is beneficial as it protects the Earth from the colorless, gaseous oxidation product sun's ultro-violet rays. caused by the combustion of sulfur

contained in fossil fuels. A p:>rtion of 502 Particulate Matter (PM): A porticle chemically transforms into sulfate aerosols of solid or liquid moHer,also called soot, that playa Iorge role in PM ond viSibility dust, and aerosols. PM is measured based oir quality problems. on discrete porticle-size thresholds. PM 10 includes 011 PM smoller thon 10 microns in aerometric diameter. PM2.5 includes 011 porticles smoller thon 2.5 microns Ifine porticlesl. PM 1(}2.5 includes the "coorse fraction" of PM 1o. Current NMOS oddress both PM2.5 ond PM lOon on annual average and 24-hour concentration. ProfX>sed revised standards include lowering the 24-hour stondard ond developing 0 new standard focusing on the particles between 10 and 2.5 microns.

33 -----_._~--~ I I

hroughout this year's report, we have shored examples of our efforts to reduce Po. brigh9 idea air emissions, promote energy efficiency and use more renewable energy. We If every customer in the Alliont Energy encourage you to examine your imfXlct on the environment. T service territory replaced their five mosl-used Use the tools on these fXlges 10 calculate your household's contribution 10 Allion! lightbulbs with 20w0n ENERGY STAR' Energy's air emissions, learn to compoct fluorescent bulbs ICFlj, the onnuol understand what the numbers energy savings would be 300 kWh per mean, and check out a variety ,~ customer, or a total of 300 million kWh. of ways you can reduce Mercury your energy consumption. (Hgi Annual emissions saYings

All U.S. economic sectors 3.800 14.400 4.050.000 84 2.335.847 1.168 Utility seetortminus A1liant Energy) 10.119 3.570 2.511.000 45.41 866.456 434 Alliant Energy B1 311 23,ll11l1 0.6 663.619,960 331.610 References: 17 United States emissions levels for NOx and SOl ta~n from EPA 2000 Air Emissions Trends: om wwwepa.guv/aiftrendslet:oo-emissions.html Reference: Estimates assume replacement ot 15}60-watt Utility Sector emissions levels lOf NO. and 502 taken from EPA 2005 Acid Rain Program Progress Report wwwepa.gavlairmarkets/progress!progress-reports.html lighttxrlbs used 4 hoursldav lor 20 hours in totall. Ene'RY savings calculated I:Jy Ene'RY Star light bulb calculator.: United States af(! Utility Sector CDl emissions taken from EIA 2005 Emissions of Greenhouse Gases in the United States: ~getenergysmart.org/Files/light%20BufblJ62OCaIClJfator.html W'lt'.W.eia.doe.gov/oiaf/1605!ggrpt/index.htmf . Electric Power Research Institute. 'Frequently Asked Questions About Mercury· [December 2006): W'lt'.W.epri'Neb.comlpublici

Calculating yaur hausehald's cantributian NOTE:Average annual home energy use is 9.600 kilowatt·hours (kWh) per year. One kWh is a measure of electricity used over time. For to Alliant Energy's emissians example, ten l00-watt light bulbs, left on for one hoof. would use one kWll of electricity.

tmllmDlm:W\'J \fimf}1!lllftdl ..,t'1 1JillIil~oom~ ~ 0 So, 0.0078 9,600 = SO, 75 = 2,000 = SO, 0.lJ4 ~ = 0 = NO, 0.0029 (average NO, 28 (convert NO, 0.01 yearly home to tons) CO, 2216 use in kWh) CO, 21.274 CO, 10.64 Hg O.OOOOOOOS Hg 0.0005 Hg 0.0000003

What are the emissions from my hausehald?

Your Alliant Energy bill lists your household's monthly energy use in kWh Isee highlighted area on sample bilil. To calculate your household's annual emissions, you'll need to odd up your energy use for the post 12 months, or overage your most recent bill. Plug that number into the equation in place of the 9,600 kWh, and multiply it by the 2006 emission roles for each pollulontlobovel. To more eaSily compare your household's emissions to Ihe dato found in bar charts throughout the = report, we suggest converting your emissions from pounds 10 Ions.

Visit the EPA links below to measure your environmental impact: NOTE EPA's cak:ulator is based on slightly older information www.epo.gov/c1eanenergy/powerprofiJer.html reported from utility companies, \I\IWVv'. epa.gov / c!imotechonge/ emissions/ind_ calculator.html but results should be generally accurate tOf informational PUlposeS.

34 Alliant Energy's percentage What can you do? What does it mean? of United States' emissions • Switch to green p:>Wef OUf company's efforts reduced approxima'ely 4 million 'ons 01 CO, • Perform a home energy audit in 2006. This is roughly equivalen' • Replace high-vse regular '0 any of 'he following: incandescent light bulb, wilh Cfls / • Nlcve your thermostat dO'Nn two 71!'10 degrees in winter and up tvvo no thousand degrees in summer Passenger cars not • Cleon or replace filters on your driven for one year furnace ond air conditioner ...... ~-~j-. \ • Ins'all a programmable 'hermasla' 460thousand Households of ...... """ • Choose energyefficient appliances <1% electricity use for when making new purchases one year • Wrap your water heater in an insulation blanket 91 million • Use less hot water Tree seedlings grown • Only run your dishwasher when for 10 years there's a fulllaad and use 'he energy-soving setting • Insulate and weatherize your home 148 million 19% • Plant a tree Propane cylinders used for home barbeques • Drive less by carpooling or " ""OJ-lwitllllllt \ ...... Allint UlrgyJ combining trips <1% ".' .. . 18 thousand ,. -. Railcars of coal not 4 . ~,I burned to produce Energy efficiency power cmd increasing the use of Utility SectlH ~ ,- renewable energy are two of the AllillllEalrgyl most important ways our company 12 million / reduces greenhouse gas emissions. Tons of waste recycled < Together, they accounted K' '. ... .~ instead of landfilled 37% For nearly 90 percent of Alliant Energy's greenhouse II" gas reductions. Reference: us. Climate TechnOlogyCooperation Gataway-Greenhouse Gas Equivalencies Calculator. \ www.usctq]atewaynetltool/ A1llaat E.llrg, <1% ~nergy savings on 9he web Energy efficiency programs for residential, farm and business customers: www.af/ianlenergy.com/energyeHiciency Hg UtIlity,-Sector A1llall1 Eae",) Secand Nature: / www.allianlenergy.com/secondnalure Tree planting programs: BranchingOut www.alliantenergy.cam/branchingout u.s. 0UIer EcotnmIc SlICIDrI OperationReLeaf A111.IItE .. ", www.af/iantenergy.cam/operolionreleaf <1%

35 Current information about Alliant Energy is available on the Internet at www.alliantenergy.com.

Alliant Energy Operating Headquarters Corporate Headquarters 200 first 51., S.E. 4902 North Biltmore Lane Cedar Rapids, IA 52401 1.800.373.1303 PO Box 77007 Modison, WI 53707·1007 General information: 1000Moin 51. 1.800.ALlIANT Dubuque, IA 52001 1.800611.9330 Shareowner Services: 1.800.356.5343

!~ALLIANT "" ENERGY. We're on for you~ .. 'J'/AI"'1! l';' 1'11~, 'f,"" ," ,r] <; ~~,~;t::.:'" WCFcourier.com I Print Groups intervene in Alliant's proposed coal power plant Page 1 of I

Friday, September 21, 2007 4:19 AM COT I Print Page I Groups intervene in Alliant's proposed coal power plant

DES MOINES (AP) -- Five organizations opposed to a proposed coal-fired power plant in Marshalltown filed a petition Thursday to intervene in the application process.

Interstate Power and Light Co., a sUbsidiary of Alliant Energy Corp., has applied to the Iowa Utilities Board to build a 660-megawatt plant that will use pulverized coal to generate power.

The organizations -- Community Energy Solutions, Iowa Environmental Council, Iowa Farmers Union, Iowa Renewable Energy Association and Iowa Chapter of Physicians for Social Responsibility - plan to present expert witness testimony at a hearing in January on the plant's global warming impacts and the public health. The groups also contend that the plant will increase electrical rates and displace energy that could be coming from renewable sources.

Alliant spokesman Todd Henderson said in a statement that the company was not surprised to see the groups petition the utilities board.

"Alliant is looking forward to the opportunity in this process to layout our plans of which we are very proud and feel they address the growing Iowa power needs in an environmentally and cost-effective manor," Henderson said. ''The baseload plant is designed to burn biomass and we are looking forward to developing that growing segment of Iowa's economy."

The opposition groups claim coal combustion contributes to respiratory and cardiac ailments because of increased soot released into the atmosphere. They said coal plants emit heavy metals into the atmosphere, including mercury, which settles into surface waters and accumulates in the tissue of fish, which can in turn cause neurological damage if eaten.

''The harmful health impacts of coal plants are undisputed, and it's simply immoral to construct a giant new source of greenhouse gases," said Dr. Maureen McCue of Physicians for Social Responsibility.

The interveners are represented by attorneys Carrie La Seur and Jana Linderman of Plains Justice, a public interest environmental law firm based in Cedar Rapids.

"Utility regulators across the country are denying permits for new coal plants, and investors are pulling out. This is a very risky time to propose a coal plant," La Seur said in a statement.

The utilities board, the state's regulatory agency, has scheduled an administrative hearing for Jan. 14 in the auditorium of the Iowa Veterans Home in Marshalltown. Copyright © 2007 Waterloo/Cedar Falls Courier

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Groups challenge proposal for coal-fired power plant i today's he. By PERRYBEEMAN • Suicide 'Sl REGISTERSTAFFWRITER helps othe September21, 2007 • Health pia kids in Jeo STORVe"AT: Add comment • Ottumwa; search riv. missing m The coalition of public interest organizations wants to stop Alliant from • The Sandi bUilding in Marshalltown.

A coalition of five public interest organizations on Thursday filed a petition to intervene in the application of Alliant Energy to build a coal- burning power plant in Marshalltown.

The groups are Community Energy Solutions, Iowa Environmental Council, Iowa Farmers Union, Iowa Renewable Energy Association and Iowa Chapter of Physicians for Social Responsibility. They petitioned the Iowa Utilities Board to be part of the review process. The board will hold a hearing in Marshalltown in January.

Coalition members oppose coal-fired power plants, saying that the facilities contribute 40 percent of U.S. greenhouse gas emissions from human activities. Iowa gets up to 85 percent of its electricity from coal, while the national average is 50 percent, the groups said in a statement.

The organizations also fear the plant emissions will cause residents respiratory and cardiac problems, and could damage fish and water supplies.

Dr. Maureen McCue of Physicians for Social Responsibility said in a statement: "The harmful health impacts of coal plants are undisputed, and it's simply immoral to construct a giant new source of greenhouse gases." Sun Alliant spokesman Todd Henderson said the company welcomes the chance to defend its proposal. 6'e1 "We're looking forward to the opportunity to layout our case in the process," Henderson said. "We're very proud of our record environmentally. "

Reporter Perry Beeman can be reached at (515) 284-8538 or [email protected]~eg .Corn

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Utility board approves Alliant lines sale .------I today's he' SeptemberlB, 2007 STORY CHAT: Add comment • Suicide 'Sl helps othE • Health pia kids in Jeo The Iowa Utilities Board on Tuesday voted 2-1 to allow Alliant Energy to • Ottumwa, sell its high-voltage electric transmission lines in Iowa to ITC Holdings search riVI Corp. of Novi, Mich. missing m • The Sandi Alliant, based in Madison, Wis., announced plans in January to sell its high-voltage lines in Iowa, Minnesota, Illinois and Missouri to lTC, an independent transmission company, for about $750 million.

The board majority found the sale to be in the public interest because the transfer of ownership is likely to result in an improved transmission system in Iowa.

Board Chairman John Norris, however, voted against the proposal, finding that the two companies hadn't made a sufficient showing of benefits to customers and the public interest.

The plan also has received favorable rulings from the Federal Trade Commission and the Missouri Public Service Commission.

Approval is still needed from the Federal Energy Regulatory Commission and utility regulators in Illinois and Minnesota.

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http://www.desmoinesregister.com/apps/pbcs.dll/article? AID=200770918071 9121/2007 Timeline set for regulatory approval oflocal power plant I Times Republican Page I of I ·ftBffrtlfliitYa\ Centr.tl Iowa's D-dily Newspaper m m ...... x az:: .. e:;z;::::sc:: • = = • Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

=back_to_stpJY Timeline set for regulatory approval of local power plant By RYAN BRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

The Iowa Utilities Board accepted Alliant Energy's application to build a 630-megawatt power plant in Marshalltown on Aug. 16 and set a timeline to hear the arguments for and against the proposal before deciding whether or not to issue a certificate of construction and operation.

In accepting the application, the IUB asked Alliant to provide clarifications and further information on the proposed project, like an analysis of the impact of carbon tax or trade legislation, if implemented as suggested by some politicians, and pians and estimates of transmission enhancements needed in the Marshalltown area.

The Consumer Advocate division of the Department of Justice and any intervenors - entities in opposition to the case or seeking more information due to a business interest in it - have until Oct. 22 to be included and submit testimony on why the board should or should not issue a certificate of construction.

The Interstate Power & Light division of Alliant Energy will then file a rebuttal by Dec. 10. A statement of issues will be due Dee. 13 and the hearing started Jan. 14, 2008, with testimony and cross-examination. Briefs will then be due throughout February before the IUB issues its decision.

Alliant first announced its intentions of building a coal-fired electric power generating facility in January and officially filed its application on July 2 after a May public hearing on the topic. The proposed site is next to the company's existing Sutherland Generating Station east of Marshalltown.

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Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive «--bacILto_stO[)' Alliant files official application for power plant By RYANBRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

Paperwork for Alliant Energy's proposed new Marshalltown power plant was officially filed Monday seeking government approval from the Iowa Utilities Board, the company announced.

Alliant Energy anticipates this application for a Generation Siting Certificate to build what would be known as the Sutherland Generating Station Unit Four will receive a pre-certification decision by the IUB in the first quarter of 2008. The company plans on then filing for advance ratemaking principles.

"We look forward to working with our regulators and other interested parties throughout this process,"

said Tom Aller, president of Alliant's Interstate Power & Light, in a press release. "Through the construction of SGS Unit Four, our company is pleased to support Iowa's expanding bio-fuel economy by providing new sources of safe, reliable and enVironmentally responsible energy. The continued support our company has received from the residents and business leaders in Marshalltown and across our service area for this project has been overwhelming. We remain strongly committed toward making SGS Unit Four a reality for the benefit of all Iowans."

In order to meet the IUB's criteria, Alliant Energy must demonstrate that the construction and operation of the power plant reasonably utilizes Marshalltown's land, air and water resources and is consistent with the regular eiectric operations of the utility and the Iowa Legislature's intent to spur Iowa's economic development.

Revised plans for the facility show an upgrade in output to 630 megawatts, from 600 megawatts, and a change in Alliant's anticipated usage, now 350 megawatts instead of 250 megawatts. The remainder will still be jointly owned or purchased by Central Iowa Power Cooperative, Corn Belt Power Cooperative and other potential partners.

Alliant is also currently in active discussioA5 with several contractors to line up the components and supplies needed for construction. Those negotiations are expected to be concluded by the end of 2007, the company said.

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Centr.tl Iowa's D-aiI)' Newspaper _ zs:s _ == =•. t4E(I = _lL z:::: __ 40. _lS$:a u_ 4 __ . Alliant Energy - Power Plant Story Archive

> Alliant Energy -_Power Plant Story Archive

«--back_to_stow Leaders feel good about local impact of power plant By RYAN BRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

Marshalltown representatives now have the answers to many of their questions and concerns about preparing the community for the impact of a $1 billion construction project after taking a scouting trip to Nebraska.

Friday a group of 42 Alliant Energy leaders and members of their Community Advisory Committee visited Nebraska City, Neb., the location of an under-construction power plant similar in size to the one proposed to be built in Marshalltown_

A dozen officials of the 7,500-population city shared their experiences in law enforcement, realty, education, medical treatment, economic development, government and social issues as a result of the escalating impact of their construction site. Marshalltown folks were also able to network and discuss questions in small groups and tour the perimeter of the work site.

"[City council member) Bob Wenner, [City Administrator) Dick Hierstein and I all came up with the feeling that Marshalltown will not be overwhelmed," said Mayor Gene Beach_

Others did as welL

"They seemed very positive and really emphasized the relationships from the community's perspective with the builder and everyone related to the project," said John Hughes, executive director of McFarland Clinic.

The impacts there on schools, infrastructure and law enforcement were minimal, Beach said, and the benefits of the sales tax boost and a labor pool spread 45 to 60 miles around was positive.

Nebraska City experienced some increases in operating while intoxicated cases and Hispanic migrants, which took some effort for them to accommodate, he said. The project contractor, however, hired local workers first, which helped the standard of liVing in the immediate area.

"They absorbed that impact very well, and I think we have more capacity to do that," Hughes said.

For law enforcement, Police Chief Lon Walker said his department did not learn much new information but got to see how that community's planning process minimized problems, as well as the fact that the site contractor had a security force of its own.

One difficulty that may also plague Marshalltown was rental housing.

"I think our market could deal very well with people who wish to locate here and purchase a home," said real estate agent Jack Harkness of Coldwell Banker. "Where we run into difficulty is in our rental market. They had many people living in fifth-wheel trailers."

Marshalltown has little to offer in recreational vehicle space, he said, and rental rates in Nebraska City jumped 25 percent.

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"It's going to take quite a bit of preparation to prepare for people who want to rent homes," he said.

He also wondered how the market - and job market - would fare once construction of the plant was complete. Nebraska City's project is still ramping up to its peak, currently at 700 workers a day on site with an anticipated peak of 1,000 by September, Harkness said.

For Marshalltown, the advisory committee will continue to work and plan ahead.

"If approved by the utilities board and everything else is approved, I really look forward to the building of the plant. That is going to be an exciting time for Marshalltown," Beach said.

http://www. timesrepublican.com/page/content.detail/id/500571.html?nav=5065&showlayou... 1/912008 1_';«qriSn.~'---Council tackles another piece of year's goals I Times Republican Page I of2 Centr.tIlowa's D-diI)' Newspaper $ m = "- Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story~Archive «--backJ05tory Council tackles another piece of year's goals By RYANBRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

Elected officials in Marshalltown finalized their approval for Alliant Energy's new power plant site to be annexed into the city limits at Monday's city council meeting, accomplishing a significant step in the process of accommodating the project, one of the city's top initiatives for this year.

Pending the state's approval of the annexation, the city also established the site's zoning and land use as heavy industry.

City Administrator Dick Hierstein also updated progress on the rest of the council's 2007 goals, five top initiatives and seven ongoing priorities.

Aggressive ongoing nuisance enforcement has yielded 950 cases to date - 20 taken to court for non- compliance - alongside 40 cases involving the new property maintenance requirements. Included in that were the removal of greenhouses on Lincoln Way and negotiation for Arbie Feeds' demolition likely sometime next month, Hierstein said.

In itself, the removal of Arbie Feeds was also a top initiative, and the city offered a financial incentive to help meet that goal.

"The incentive package was minimal compared to what the city wouid have been facing if they had not found someone with the desire and ability to clean up the property," Hierstein said.

Other big projects demanding city resources have been the series of storm sewer improvements and the building of a new library. Plans for the building were 95 percent complete as of last week and bidding is expected in early July. Site work contracts have already been awarded.

Currently in progress are the drafting of a multi-hazard response plan and an expanded scope for street crack sealing and patching, for which the city recently acquired new equipment that is expected to extend the life of their repairs.

"We had a real tough spring. There was more breakup than I can ever remember," Hierstein said.

The city has also made strides to improve customer service by providing online registrations for Parks & Recreation activities, surveying employees and offering basic Spanish training during work hours through an instructor provided at no cost, he said.

Yet to do are gateway enhancements like the pianned landscaping along South Center Street, for which the city is waiting on funding from the Department of Transportation; the selection of comprehensive pavement management software so city staff can objectively prioritize street repairs and the hiring of an analyst to study reuse options for the current library building. Funding for the reuse plan has already been budgeted.

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http://www.timesrepublican.com/page/content.detail/id/500570.html?nav=5065&showlayou...l 19/2008 Community leaders supportive of power plant and its impact I Times Republican Page I of2 :~:;ltP·1if2.'C-~ Centml Iowa's D-dily Newspaper = 4. em ALC • 4J : e. a: xx- ee u ::cz 4; casu ::::=:w==_ = Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

=back~to~stOI)' Community leaders supportive of power plant and its impact By RYAN BRINKS, TIMES~REPUBLICAN

IpOSTED: December 16, 2007

The first dozen community members who spoke to an Iowa Utilities Board judge and Alliant Energy's power plant project leadership at Monday's information meeting all shared a common expectation: that the $1 billion project would be good for Marshalltown.

"Do we really know what $1 billion really is?" asked local electrical contractor Don Anderson, hinting at the economic impact of the project.

He also said the current Sutherland power plant sits just outside his front yard, along with bald eagles, turtles and other wildlife.

Other neighbors, too, have expressed satisfaction with Alliant Energy as a neighbor. Chamber of Commerce President Ken Anderson said a survey taken years ago when the possibility of a new power plant was first revealed showed anecdotal evidence strongly supporting another plant.

"Alliant Energy has been very responsive to the community and this will have a huge impact and benefit," said Mayor Gene Beach.

Fisher's vice president of energy and process energies, Kevin Meyer, shared his confidence that Alliant's commitment to Marshalltown mirrors Fisher's.

"We believe they share those values," he said. " ... There's no question in our mind they are doing this in a world~class and best available technology way. They are in fact doing it the right way."

While not doubting that $1 billion, hundreds of constructions jobs and more than 6S permanent jobs, co- generation possibilities for new partnering industries and property tax benefits will have a significant economic impact, some at the meeting argued that such an investment in renewable energy rather than fossil fuels would have an even bigger effect.

Sierra Club organizer Mark Kresowik and Marshalltown native Todd Stabenow argued that wind energy creates four times the amount of jobs and is better for the environment.

Kim Zulke, Alliant's vice president of new energy resources, said that the company will actually double its portfolio of wind energy by 2009 and spend $800 million on the renewable source in less than a decade, along with $1 billion on emissions technologies at all of its existing power plants, including the 19S0s-built Sutherland station in Marshalltown.

Stabenow also questioned the utility about pursuing the storage of wind energy, like in hydrogen, which would also create high-tech jobs for the state.

Zulke and Tom Aller, president of Alliant's Interstate Power & Light division, responded by saying the Electric Power Research Institute has been working on such storage solutions and while steady progress is being made, there is yet no overnight silver bullet answer.

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Meanwhile, the ethanol industry is booming, Aller said.

"We need to be ready for these growth plans that are taking place in the state and for those that are expected to take place," he said. "Demands are literally everywhere in our system."

While concerned with dependence on coal, Rep. Mark Smith, D-Marshalltown, a member of the Iowa House of Representatives' Human Resources Committee and Environmental Protection Committee, agreed that Alliant needs to move forward with its plans.

"Iowa is becoming the green state. As we forget about being black and gold and we forget about being red and yellow, we are the green state with the growth of biofuels," he said.

Critics of the new plant also targeted carbon dioxide capture, which is also in the research stage though Alliant's plans call for space to retrofit such equipment. Alliant experts recalculated the carbon dioxide output after the meeting at less than 5 million tons per year instead of 9 million tons. Kresowik said even if retrofitted, there would not be adequate space to store the gas.

"It'll take a number of years, assuming the Iowa Utilities Board grants this certificate to build the plant. If there is technology or there's other ideas or other developments, we have people that do this for a living. We're looking at this all the time," Aller said. "We really don't exist in a vacuum in Iowa, and I think we have time built in to look at these things if they're proven, if they're ready to go, if they show promise."

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$ = $ ;s SPes Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power_ Plant Story Archive

=back_to_story Speakers criticize power plant's impact on the environment By RYAN BRINKS, TIMES-REPUBUCAN

IpOSTEO: December 16, 2007

Concern that a new coal-fired power plant would only contribute to a growing threat of global warming was the first line of argument issued by critics of Alliant Energy's development plan during an informational meeting facilitated by the Iowa Utilities Board on Monday at the Best Western Regency Inn.

"My family has lived in Marshall County for over 100 years. The last 35 years I've been a research scientist at national labs and other universities around the country and I'd like to point out the issue of global warming is not really a joke," said Don Noid.

Noid balked at the 9 million tons of carbon dioxide the plant is expected to release into the atmosphere every year and asked about the impact if Alliant were forced to buy credits from the experimental Chicago Climate Exchange to offset carbon emissions.

Alliant's vice president of new energy resources, Kim Zulke, responded by saying that there has been no governmental regulation of carbon dioxide and even if carbon credits cost as much as $30 per ton - they are currently trading at $3.65 - coal wouid still be the most cost-effective solution.

Zulke said the utility considered several alternatives before deciding on super-critical pulverized coal, beginning with coal gasification and natural gas, which is very volatile and seasonal, making it a cost- ineffective choice for baseload power generation that is relied upon 24 hours a day.

"We like wind, but it just doesn't blow all the time," he said.

Alliant does not have a waste disposal market for nuclear power and investors are still afraid of it, he added.

"[Hydrogen and on-farm digesters] will have a role to play but they're not big enough in themselves to basically satisfy all of the needs and growth we're experiencing here in Iowa," Zulke said.

Marshalltown Community College associate professor of biology Sally WilSOn proposed Alliant put their focus on energy efficiency, citing a Department of Energy and Environmental Protection Agency statement that projected such efforts could yield a 20 percent savings in total electric demand.

"I have not seen on the part of any energy company in this area a really aggressive incentive-based education to get people to really introduce energy efficiencies," Wilson said.

Alliant leaders defended their energy efficiency efforts saying the company spends $40 per customer on energy efficiency, $10 more than the national average, and that those efforts have already put off a decision to build a coal plant several years. The growth of ethanol, another factor, has recently sped the demand for more power, said Interstate Power & Light President Tom Aller.

Supporter Brian Heithoff, CEO of Consumer's Energy, noted that the Department of Energy also projected power needs by 2030 would be 50 percent more than right now, leaving a gap even with all-out energy efficiency efforts. http://www.timesrepublican.com/page/content.detaillid/500568.html?nav=5065&showlayou...1 /9/2008 Speakers criticize power plant's impact on the environment I Times Republican Page 2 of2

Sierra Club organizer Mark Kresowik backed Wilson's perspective and added that instead of pushing utility bills higher due to carbon credits, energy efficiency measures would push up home values to the benefit of consumers.

Furthermore, both he and Marshalltown native Todd Stabenow thought it irresponsible on Alliant's part to not wait for the conclusions of a newly formed state climate change advisory committee commissioned by Gov. Chet Culver.

"I think it would be irresponsible - and I'm sympathetic to what you're doing and your company having to be responsible to not only your consumers but also to shareholders - but I think it would be irresponsible for the Iowa Utilities Board to move forward and grant any type of continuation in your efforts to build a coal plant here in Marshalltown considering that there is a climate adVisory committee that is outstanding right now, knowing they could come back and impose more stringent renewable standards," Stabenow said.

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------

.. e Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

«--:backJ05tOlY Supporters, critics of new power plant voice opinions By RYAN BRINKS, TIMES-REPUBliCAN

IpOSTED: December 16, 2007

Nearly 70 people showed up and approximately 25 spoke to an Iowa Utilities Board judge and members of Alliant Energy's Interstate Power & Light team about the building of a new power plant in Marshalltown.

The information meeting gave residents an opportunity to learn more details about Alliant's plans before the company applies for regulatory approval to go forward with construction as well as to voice their support or concerns about the project.

For the half dozen who questioned or challenged Alliant to reconsider aspects of their project, the law allows them to file a petition to intervene.

Three-fourths of the speakers applauded Alliant for bringing a future assurance of power availability to the area, for the $1 billion investment and impact, for responsiveness and being a good neighbor the past half-century and for choosing best available technology.

"Last February and March we witnessed Alliant Energy's commitment to the community, and I see Alliant Energy making a huge commitment to providing the energy we require well into the future," said local supporter Jim Lowrance.

Though concerned about the continued reliance on coal for the generation of electricity, Rep. Mark Smith, D-Marshalltown, also supported the project.

"[I agree] about the volatility of the natural gas market - and we saw those spikes in 2001 occur in this state and the difficulty a number of small businesses had surviving that," said Smith, a member of the Iowa House of Representatives' Human Resources Committee and Environmental Protection Committee. "We also know that as we advance the switchgrass industry - all of the different sources that we can of other sources of energy - we are not far enough along at this point to have that fill our electrical needs here in the state."

Criticism of the project came on the environmental front, p.ointing to the sheer amount of the 9 million annual tons of carbon dioxide that is expected to be emitted by the plant, pushing for more concentration on energy efficiency rather than energy production, asking to halt plans until a new state climate change advisory committee presents its findings, fearing mercury contamination downstream along the Iowa River and wanting investment in hydrogen storage of electricity or other technologies.

"We're going to pay the cost for our decisions today for five decades," said Mark Kresowik, an organizer with the state's Sierra Club.

"Economic development is not necessarily sustainable development," added Sally Wilson, a Marshalltown Community College associate professor of biology. "We're concerned about security and yet we're willing to become more dependant on one single source of coal and one single source of power .... I think Alliant is a secure enough, large enough, aggressive enough company that you can be leaders in this area and really look at how you can minimize or eliminate the dependence on these fossil fuels."

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Search our 7-day archive of stories: Alliant details emissions controls to advisory LI _ I committee

By RYAN BRINKS

Team members of Alliant Energy's new power Open house SWebExtras plant project explained the series of environmental controls planned to be part of the new Interested or concerned /'leH'S residents will have an Marshalltown power generating facility Thursday opportunity to ask questions or. • Home page share their input on Alliant • Local News during the second community advisory committee Energy's plans to build a new • Local Columns meeting. power plant in Marshalltown • Money and Markets Monday during an official • Central Iowa Today public information meeting facilitated by the Iowa Utilities • Community Of the project's $1 billion price tag, $280 million is Board. calendar set to be invested in reducing and capturing • For the Record harmful substances before they are emitted, said An informal open house hosted • Obituaries by Alliant will begin at 6 p.m. • National project manager Jeff Beer. at the Best Western Regency • International Inn on Highway 14 near the • Web Extras Those additions will make the new plant roughly intersection of Highway 30 • RSS Feeds before the official meeting • Submit 20 to 25 percent more efficient than traditional staJ1s at 7 p.m. plants like Marshalltown's existing Sutherland Staff from Alliant's Interstate SJOrts station and 10 percent more efficient than Alliant's Power & Light Company will provide a presentation on plans • Local Sports 30-year-old Ottumwa plant, he said. for the plant and then those in • Sports Column attendance will have an • National opportunity to ask questions of • Submit The new facility's super-critical coal boilers bum utility executives and the IP&L coal to heat tubes of water to make steam that turns plant design team.

o inioll a turbine and generates electricity through an The public information • Editorials alternator. meeting is required by the • Letters to the Editor Iowa Utilities Board and must occur no less than one month before the utility's formal • Tell it like it is The steam is condensed, cooled and returned for application for plant • Submit use while the flue gas from burning the coal is sent certification is filed with the through a process of cleaning, beginning with Utilities Board. C/assi/ieds selective catalytic reduction - injecting aqueous • Classifieds ammonia to reduce between 75 and 85 percent of nitrous oxides, Beer said. • National Felllllre ... After that, the flue gas stream begins its exit from the main plant building • People IIi the News through an electrostatic precipitator, which captures more than 80 percent • Crossword of fly ash - a byproduct of approximately 4,000 truckloads a year that can be sold as a component to Portland cement or for fill in construction S ecilllSectiolls projects. • Beef Month 2007 • Bridal Guide 2007 • Business card Next is carbon injection to capture and remove mercury from the gas

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Directory 2007 stream, and then a fabric filter baghouse of thousands of vacuum cleaner- • Crossword Puzzles like bags captures 95 percent of remaining particulate matter. 2007 • Faith in our Community The last step is desulfurization, commonly referred to as a scrubber, which • Golf Guide 2007 uses a mixture of limestone and water to capture 90 percent of sulfur • Healthy Choices • Leaders of dioxide. That sulfur is taken out as gypsum, another byproduct. Tomorrow 2007 • Marshalltimes May 2007 "There's no true answer today for carbon dioxide," Beer said. • Past Times May 2007 Instead, the project team set aside space near the scrubber and smokestack • Pink - May 2007 • Silver linings 5-20- for future expansion of technology to capture carbon dioxide. 2007 • Spring 2007 Home Like the current Sutherland station, the plant's emissions will be monitored Improvement • T-R TV Times 5-20- continuously and reported, he said. The Sutherland plant, too, is scheduled 2007 to be included in company-wide investments of newer emissions .• When I Grow Up . technologies over the next six years, he said.

Contact IH' The advisory committee will next take a trip June 8 to Nebraska City, Neb., • Staff contacts where Omaha Public Power District is 1.5 years into building a same-sized • How to subscribe • About Us 600 megawatt power plant. • Area Businesses • FAQs • Terms of Service Contact Ryan Brinks at 64I-753-6611 or rbrinks@ timesrepublican.com AIt. Breaking "'If'AP Videos ~$ubsrribe 10 l~ ~R"pllblirnn 'mua

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802 South Center St. MarshalRown, Iowa nq~9c!~ 641-752-4525 Iimts~a~l.'licda CENTRAl. IOWA ~1J'DAILY NEWSPAPER HOME I NEWS I SPORTS I COMMUNITIES I VIRTUAL NEWSROOM I CLASSIFIEDS I CONTACT US Wednesday, May 09,2007- Time: 12:35:26 PMCST Search our 7-day archive of stories: Co-ops to pitch in for Alliant plant I By RYAN BRINKS

Two Iowa power cooperatives have stepped forward to partner with Alliant Energy in building a new power plant in Marshalltown. 8WebExtras Alliant announced Monday that Com Belt Power Cooperative of Humboldt News and Central Iowa Power Cooperative of Cedar Rapids have signed letters • Home page of intent to evaluate and negotiate ownership interest in up to 350 • Local News megawatts of the plant's proposed generation capacity of 600 megawatts. • Local Columns • Money and Markets Alliant plans to use 250 megawatts or more for its customers. • Central Iowa Today • Community Calendar "We want partners focused on meeting our state's future energy needs. • For the Record Both of these organizations share our commitment to meet Iowa's growing • Obituaries demand for electricity through construction of a highly efficient, modem • National • International generating facility," said Tom Aller, president of Alliant's Interstate Power • WebExtras & Light Company. "IPL, CIPCa and Com Belt Power serve customers in • RSS Feeds 94 ofIowa's 99 counties." • Submit

S J()rl.'i; clPca members include Consumer's Energy and T.I.P. Rural Electric Cooperative. Com Belt Power includes Grundy County REC and Midland • Local Sports • Sports Column Power Cooperative. • National • Submit The share of ownership each organization will have in the project, as well JilliO/l as additional partners, is still being negotiated and is expected to be o announced later in the year, Alliant said. • Editorials • Letters to the Editor

• Tell it like it is • Submit Contact Ryan Brinks at 641-753-6611 or rbrinks@ timesrepublican.com Classi{ied.\- • Classifieds • National Fealllres • People in the News • Crossword Serial Sec/iolls • Beef Month 2007 • Bridal Guide 2007 • Business Card

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Directory 2007 • Crossword Puzzles 2007 • Dining Guide 2007 • Faith in our Community • Golf Guide 2007 • Leaders of Tomorrow 2007 • Marshalltimes April 2007 • Past Times May 2007 • Silver Linings 4-22- 2007 • Spring 2007 Home Improvement • Spring Car Care 2007 • T-R TV Times 5-6- . 2007 • When I Grow Up

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802 South Center St. MarshalUown, Iowa 641-752-4525

HOME I NEWS I COMMUNITIES I VIRTUAL NEWSROOM I CLASSIFIEDS I CONTACT US Wednesday, May 09,2007- Time: 12:34:36 PMCST Search our 7-day archive of stories: City starts process to annex power plant site I By RYAN BRINKS

The City of Marshalltown extended the reach of its city limits to wrap around Alliant Energy's new power plant site Monday as the city council GWebExtras unanimously agreed to annex the 666 acres of land.

Neil's Portions of property acquired for the project lay both within and outside • Home page city limits and Alliant requested the annexation to simplifY boundaries and • Local News benefit from city water and sewer service. • Local Columns • Money and Markets • Central Iowa Today A joint meeting with Marshall County on the issue is scheduled for May • Community 17, said Michelle Spohnheimer, the city's housing and community calendar • For the Record development director. • Obituaries • National The council also passed the first reading of an ordinance rezoning the land • International • Web Extras to heavy industry and changing the long-term land use plan to reflect the • RSS Feeds project. • Submit SJ(Jrts The council also approved the appointment of a new human resources director. Mary Rund, a veteran of the position for more than 20 years, is • Local Sports • Sports Column retiring after June 29. A Laurel resident, she plans to stay in the area. • National • Submit Sarah Meusburger was the choice made by a screening committee among o JilliOIl seven candidates, including three that met city qualifications. • Editorials • Letters to the Editor Meusburger comes from Brookings, S.D., where she worked in human resources for Daktronics. She has prior experience with a South Dakota • Tell it like it is city and will be responsible for assisting in hiring, discipline, administering • Submit health insurance, coordinating the worker's compensation plan and helping Clas.\·ified.~ with collective bargaining, among other duties. • Classifieds • National "I think Sarah will be a very good addition to the city," said Dick Hierstein, city administrator. Fealllres • People in the News • Crossword She will have a month of training under Rund and her starting salary will be $48,926. ' S ecilll Sectillll.\· • Beef Month 2007 Other items approved by the council include: • Bridal Guide 2007 • Business Card

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Directory 2007 • the first reading of an amendment to the city electrical ordinance to • Crossword Puzzles eliminate redundant requirements and allow metal-clad cables. 2007 • Dining Guide 2007 • Faith in our • the second reading to rezone land northeast of 18th Avenue and Olive Community Street to heavy industry. • Golf Guide 2007 • Leaders of Tomorrow 2007 • the second reading to define where restaurants that serve alcohol can be • Marshalltimes April 2007 located. • Past Times May 2007 • the final reading to ban overnight parking in certain city lots on certain • Silver Linings 4-22- 2007 days. • Spring 2007 Home Improvement • the final reading to put a stop sign on Kester Road at Benjamin Drive. • Spring Car Care 2007 • T-R TV Times 5-6- • an additional $5,000 for concrete joint repairs to the Center Street 2007 viaduct. • When I Grow Up • changes to the Region 6 Planning Commission articles of agreement. COli tact lIS • Staff contacts • How to subscribe • an agreement for the police department and Marshalltown Community • About Us School District to evenly split the cost of a police officer assigned to the • Area Businesses high school. Costs for the last four years have been determined by the • FAQs • Terms of Service terms of a federal grant.

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TIMES·R~:PlJBLlCAN Ctnta'1t1lown·s Dail" N~sluIJlf'r The Times-Republican 135 West Main Street Marshalltown, IA 50158 641-753-6611 HOME I NEWS I SPORTS I COMMUNITIES I CLASSIFIEDS I CONTACT US

If you have any problems, questions, or comments regarding www.tlmesrepubllcan.com. please contact the Ken Larson. For all other comments, please see our Contact section to send feedback to The Times-Republican. Users of this site agree to our Terms of Service. http://www.timesrepublican.com/incl ude/ arti cles.asp ?articleID=93 10 5/9/2007 Alliant gives power plant project a face I Times Republican Page 1 of 1 :~;';ff'BUta'C- Centmllowa's D-diI)' Newspaper = _ z _at w QCO _ _:; ;smA %_::az=r= 44$ • Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

«--back_to_story Alliant gives power plant project a face By RYAN BRINKS, TIMES-REPUBUCAN

IPOSTED: December 16, 2007

Alliant Energy unveiled the first computerized drawing of what its new power plant will look like Tuesday to local stakeholders and interested citizens during an open house at the Fisher Community Center.

Members of the project's team formulated the image from early decisions concerning the coal-fired boiler technology, steam turbine and some of the necessary emissions controls, but they expect to continually update it as more factors are settled on, said Scott Drzycimski, Alliant communications program manager.

"We start from the inside out," he said. " ... Then we build the building around it."

The upper left of the rendering shows a corner of the proposed new coal storage area and handling conveyors that connect with the main power generating facility. To the right of the main building are numerous emissions control facilities and a cooling tower beyond the smokestack.

A loop of railroad track will circle the plant site in order to accommodate 155-car unit trains carrying up to 17,000 tons of coal. According to project director Jeff Beer, a rotary dumper will flip the cars upside down to unload the coal in six hours.

The project team is currently notifying the state regulatory bodies that will have to approve or be aware of the project, including archeologists, the Department of Natural Resources and the U.S. Army Corps of Engineers.

"We're continuing to get everything in place, all the different requirements to build," Drzycimski said.

The Iowa Utilities Board will hold a public meeting in Marshalltown at 7 p.m. on May 21 at the Best Western Regency Inn and then Alliant will move on to regulatory paperwork and choosing who will engineer the work. •

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http://www.timesrepublican.com/page/contenLdetail/id/500564.html?nav=5065&showlayou...1 19/2008 Open house for new power plant inquiries coming Tuesday I Times Republican Page 1 of 1 :&1R1!llJWUfB· ------Centr.tllowa's J)

Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

=lJack_to_sto[)' Open house for new power plant inquiries coming Tuesday By RYANBRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

Computer renderings of what Alliant Energy's proposed new Marshalltown power plant will look like are expected to be unveiled at an open house Tuesday at the Fisher Community Center.

Area residents with questions about the $1 billion coal-fired facility will also have an opportunity to talk face-to-face with the project's designers and engineers.

The informal event open to the public will allow interested individuals to stop in anytime between 5 and 7 p.m.

Plans to build the new plant next to Marshalltown's existing Sutherland Generating Station were announced in January and this open house precedes an official community input meeting May 21 that is part of a regulatory approval process with the Iowa Utilities Board that may take up to 18 months.

If regulators approve Alliant's plans, construction planning and work can begin at the site.

More than 50 community members are already involved in a community advisory committee meeting monthly that is charged with helping Alliant and Marshalltown prepare for the impact of the construction process.

http://www.timesrepublican.com/page/content.detail/id/500563.html?nav=5065&showlayou...l /9/2008 Alliant selects power plant technology I Times Republican Page I of2 ramr~If¥.Ui.'C------Centmllowa's D-dily Newspaper -. ;z ._ tA ...... EZ e:: Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive «--bac~Jo_story Alliant selects power plant technology By RYANBRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

Alliant Energy announced this week that the energy production technology for its $1 billion Marshalltown power plant will bring the company's fleet into the next level of pulverized coal boiler technology.

That technology will put the efficiency of the facility on the higher end of super-critical pulverized coal boiler technology, which is the middle of three types of pulverized coal boilers, according to Scott Drzycimski, Alliant communications manager.

"Our plant design team was charged with finding an environmentally responsible technology that was also reliable and affordable for customers," said Kim Zuhlke, vice president of new energy resources for Alliant Energy. "Customers can be assured that we're building a plant using the best available proven boiler technology. It's highly efficient, meaning it takes less coal to produce power. That means lower emissions and fuel costs."

All other Alliant power plants, including the Sutherland Generating Station, have used the lower sub- critical technology, and super-critical was still new and unproven when the last company plant was constructed, Drzycimski said. The high boiler temperature and pressure expected from the plant bring it near to the upper echelon, ultra super-critical pulverized coal boilers. Availability of fuel and delivery methods were also factors in the choice.

The company has yet to determine all of the plant's emission control technologies, but it is expected to achieve more than a 90 percent improvement in capturing sulfur dioxide - the cause of acid rain - compared to older technology, he said.

Power plant technology in general has, since 1970, reduced sulfur dioxide emissions 77 percent, nitrogen oxides 60 percent and particulate matter 96 percent, said Jeff Beer, Marshalltown facility project manager.

More quantitative figures on emissions and Department of Natural Resources regulations are expected to be presented at next month's community advisory committee meeting. The plant will also have an impact on water use and discharge, solid waste generation and nearby soil, according to the federal Environmental Protection Agency.

Alliant has also chosen low-sulfur Wyoming coal as its fuel of choice, but the plant will also be capable of burning bituminous coal, as found in southern Illinois, and up to a 5 percent blend of biomass fuels like switchgrass or corn stover, Beer said.

Furthermore, steam created in the power generation process will be available for export to a nearby facility, which offers another economic development opportunity for the Marshalltown community.

Groundbreaking is estimated to begin late next year or early 2009 and completion by the end of 2013.

The project had been delayed several years due to energy conservation efforts, but growing power needs have necessitated the expansion. http://www.timesrepublican.com/page/content.detaillid/500562.html?nav=5065&showlayou...1 /9/2008 Alliant selects power plant technology I Times Republican Page 2 of2

"[This project] will be great to help position the state of Iowa for future growth. If we want renewable fuel, wind as an example, we need more baseload generation. If we want more ethanol plants, more biodiesel, whatever the next things to come after that - those run 24 hours a day, seven days a week. We need more baseload generation," said Tom Aller, president of Alliant's Interstate Power & Light Company.

The plant will also be paid for primarily by Iowa customers and its energy available primarily for Iowa customers, Aller said.

http://www.timesrepublican.com/page/content.detail/id/500562.html?nav=5065&showlayou...1 19/2008 Committee starts dialogue over power plant implications I Times Republican Page I of 1

Centr.tllowa's D-dily Newspaper ::o:ae %.. .= .A se::_cs w. .4 _s __ .2!:Z c. ese_A # :: is tll ¥.~.u::.ao Alliant Energy - Power Plant Story Archive

> Alliant Energy, Power Plant Story Archive «--bacK.Jo_sto.r:y Committee starts dialogue over power plant implications By RYANBRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

A team of Alliant Energy personnel introduced more than 50 Marshalltown community members and leaders to their task as the Energy for a New Generation community advisory committee Tuesday at the Fisher Community Center.

That task was characterized as a two-way communication journey, both identifying challenges the community may face during the multi-year process of constructing a $1 billion power plant and promoting the opportunities that will arise because of it, according to Scott Drzycimski, communications manager for Alliant.

"I want this to be the most transparent process that is known to man. We have absolutely nothing to hide from the regulators or the politicians or our customers," said Tom Aller, president of Alliant's Interstate Power & Light division. "This is a great project that has been well thought out. It is great for our customers, it will be great for our shareholders, and it will be great to help position the state of Iowa for future growth. If we want renewable fuel, wind as an example, we need more baseload generation. If we want more ethanol plants, more biodiesel, whatever the next things to come after that - those run 24 hours a day, seven days a week. We need more baseload generation."

Alliant leaders had not anticipated such a large outpouring of interest in participating in the committee, but after reading the applications they also felt they could not afford to turn anyone away, said project manager Jeff Beer.

The committee will meet once a month with an open, interactive agenda touching on various issues and the results other communities who have built power plants have experienced, Drzycimski said. Committee members began some initial brainstorming during the last portion of the meeting.

"There will be a lot of economic impact. There will also be a lot of impact, and if we don't plan it right and if we don't communicate what we're doing, some people may feel that this is not the most positive thing in the world for a period of time they're being impacted," Aller said.

"There will be people who have different views of what we're going to do here and how we're going to do it, and how the plant will affect other national issues or state issues, international, global issues," he said. "We need to respect all of those people's viewpoints because they're important. Our job is to make sure we have answers to those questions." .

Alliant will host a public open house April 24 and another advisory committee meeting May 17, before the Iowa Utilities Board holds its public meeting May 21. After that, the regulation process could take up to 18 months and the project will not break ground until it has that approval.

http://www. timesrepublican.com/page/content.detail/id/500561.html?nav=5065&showlayou... 1/9/2008 Power plant preparations on schedule I Times Republican Page I of 1 ~.tmi'-, Centrdl Iowa's D-dily Newspaper

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> ~lIiant.Energy- Power Plant.Story .Archive «--back_to_story Power plant preparations on schedule By RYANBRINKS, TIMES-REPUBLICAN

IpOSTED: December 16, 2007

Progress on the preparations for Alliant Energy's proposed new power plant in Marshalltown is slightly ahead of schedule, local spokesman Kenn Vinson told the Marshalltown City Council Monday.

While the energy company awaits decisions on applications for approval from the Iowa Utilities Board and Iowa Department of Natural Resources, it has only been able to take soil tests where the railroad track and plant facility are proposed to be built, he said. Those may be finished yet this week.

DNR permits will be issued if the project can meet air and water quality regulations, and the IUB will decide if the need for the plant is justified.

In the meantime, project staff have been meeting with the contractor they have chosen in order to have plans in place once construction is allowed to begin. An announcement of who that contractor is may come as soon as the end of this month.

In the spring, Vinson said Alliant anticipates beginning the first of some 6,100 pile test borings for further site analysis.

Next year approval decisions should also be received, beginning with the IUB's. A hearing in Marshalltown involving testimony and cross-examination will be held starting Jan. 14, 2008, and result in a determination shortly thereafter.

http://www.timesrepublican.com/page/content.detail/id/500580.html?nav=5065&showlayou...l 19/2008 Alliant officials discuss power plant progess I Times Republican Page 1 of2 !~·mtpubUMU \ Centr.d Iowa's DaiI)' Newspaper _ _A :s e. m Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

«- - ba_cl~.Jo_stor:y Alliant officials discuss power plant progess By RYAN BRINKS, TIMES-REPUBUCAN

IPOSTED: December 16, 2007

Though the site of Alliant Energy's proposed new power plant at the eastern edge of Marshalltown remains quiet and undisturbed, paperwork and behind-the-scenes decisions abound, Interstate Power & Light Company President Tom Aller told the Times-Republican Tuesday.

The $1 billion project is proceeding on several fronts. While negotiations to determine the main contractor are nearing an end, permit applications are being filled out for government regulators like the Iowa Department of Natural Resources and several interested businesses and organizations are asking to participate in the Iowa Utilities Board's investigation into the impact a new coal-fired power plant will have on Iowans.

Decisions on both permits and permission are expected to be made by early third quarter in 2008, Aller said.

"Then we'll know what we're allowed to begin doing," he said.

The plant is hoped to open four years after construction starts, which is currently anticipated to be early 2013.

In the meantime, Alliant employees involved in the project are travelling across the world to examine and evaluate the newest products and technologies that will become part of it, he said.

Those technologies revolve around the latest in capturing emissions as well as pioneering designs to incorporate switchgrass or corn stover - the leaves and stalks left in the field - as fuel alongside both high-sulfur Illinois coal and the major fuel source, Wyoming coal. .

"My sense is that a lot of technology is coming that will take the sulfur out of coal," Aller said.

If that is attained, transportation costs to get coal to the plant would drop considerably.

The capability to burn renewable fuels like switchgrass, too, is an emerging technology, the result of much prior testing in Alliant's Ottumwa plant.

"We spent years burning switchgrass to be

sure we know how to do it," he said. " ... It costs a lot more money, but we think it's the right thing to do."

The infrastructure to grow, store and transport switchgrass as a fuel, however, is currently noneXistent, he added.

Similarly nonexistent is technology to capture carbon dioxide, though Aller said he has enough land at the Marshalltown site to do it in the future.

http://www.timesrepublican.com/page/content.detaillid/500575.html?nav=5065&showlayou...1 19/2008 Alliant officials discuss power plant progess I Times Republican Page 2 of2

"We need to balance aspiration with reality," he said. " ... We're the only one with the responsibility to make sure the light comes on when you flip the switch."

Such efforts also set the Marshalltown plant apart from other projects being undertaken in Iowa, like the power plant proposed for the Waterloo area.

"I believe there are very real differences in these facilities, even though from day to day they do the same things," Aller said.

Differences like ownership, customer base, regulation and impact. The Waterloo power plant project would be built by non-Iowans and the power it generated sent to out-of-state investors and customers, he said. Because no Iowans would use the power, permission from the Iowa Utilities Board is not needed - only environmental permits are required. And the builder has not committed to designing it to use renewable fuels.

"We worked really hard to site this plant, and we understand Its significance and how it will impact the community," Aller said. " ... We will fund and provide power for Iowa's growth, and a big driver of that right now is the ethanol, biodiesel and whatever's next. Those plants need power 24 hours a day and seven days a week."

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http://www.timesrepublican.com/page/content.detaillid/500575.html?nav=5065&showlayou...l 19/2008 Alliant chooses engineer, info meeting date ITimes Republican Page 1 of 1 Rm'LlqilftfldU\ CentmJ lowa's D-.ill)' Newspaper _ =====:s .::a: = =", __ .m. e: 42 = = Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

«--back.to_ston' Alliant chooses engineer, info meeting date By RYANBRINKS, TIMES·REPUBUCAN

IpOSTED: December 16, 2007

Alliant Energy's preparations for a new power plant in Marshalltown recently included selecting a pre- construction engineer and setting meetings.

The Iowa Utilities

Board approved a public information meeting for 7 p.m. May 21 at the Best Western Regency Inn. In addition, Alliant expects to host a public open house in April and its Community Advisory Committee will first meet on April 10.

Alliant's Interstate Power & Light Company announced last week the choice of Muscatine-based Stanley Consultants as the pre-construction owner's engineer.

"We're extremely pleased to bring Stanley Consultants into the fold on this project," said Tom Aller, president of IP&L. "We've made it clear that this plant is about the economic and business health of our service territory. By selecting an Iowa company as our owner's engineer, we're able to expand the positive impact of this plant on the state's economy."

According to IP&L, Stanley Consultants is a national leader in planning and designing safe, reliable, economical and environmentally responsible generating facilities. They will join IP&L project staff in reviewing engineering work leading up to groundbreaking and assist with the hiring of a contractor to build the generating station.

"Stanley Consultants is very excited about the opportunity to work with IP&L in the development of the project," said Walt Jones, senior vice president, power and energy business leader at Stanley Consultants.

Design work on the new plant continues and permitting and regulatory approval efforts are underway. IP&L expects to file for plant certification with the Iowa Utilities Board this summer with an expected groundbreaking in late 2008 or early 2009. Commercial operation of the plant is projected for 2013 or 2014.

http://www.timesrepublican.com/page/content.detail/id/500560.html?nav=5065&showlayou...l 19/2008 Forum heralds green energy over coal I Times Republican Page 1 of2 1fttj;lqlfilfCift'C-- Centr.tl Iowa's Daily Newspaper .C S _ !$ _ _ 424 = = = Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story. Archive

«--back_to_story Forum heralds green energy over coal By RYAN BRINKS, TIMES-REPUBUCAN

IpOSTED: December 16, 2007

A pair of local leaders made the case that an emphasis on green economic development, particularly energy efficiency and renewable energy sources, has the potential to eliminate the need for a significant investment like building a coal-fired power plant, and for less cost to users.

In making that claim, former county extension director Bill Helgen and Marshalltown Community College biology professor Sally Wilson, along with Mark Kresowik, representing sponsor Community Energy Solutions, highlighted differences in projecting future wind energy capacity and energy efficiency growth between Alilant Energy and the state's public Office of Consumer Advocate.

Based on results like California has achieved, Wilson said experts think energy efficiency can decrease energy demand 20 to 40 percent. She compared that to Alliant Energy's projected 14 percent increase in electricity demand by 2013, a basis for the need for a new power plant.

Alliant and MidAmerican Energy could produce nearly 1,000 megawatts of reduced electricity demand at a cost of $606 million - more than enough to offset a 630 megawatt coal power plant that would cost $1 billion, the presenters said.

And it would come without detriment to the environment and health of the community.

"We know that global warming is going on.... The controversy is whether human beings are a major contributor to that," Wilson said.

Graphs presented by her showed a break in recent years from measured carbon levels well beyond the natural cycles of the past, and that generation of electricity and transportation are the biggest contributors to carbon dioxide emissions.

"I believe either we've hit the tipping point or are very close to hitting the tipping point with our contributions to carbon dioxide," she said. "If we don't know, really, what the result is of going out on a limb, maybe we shouldn't go out there and cut off the rest of the' branch."

America's response to CFCs, which were popular in the 1980s and later banned, was a drastic drop in emissions over the next decade and a measurable decrease in the size of the ozone hole CFCs were attributed to creating, she said, advocating a similar response to coal power generation.

If carbon credits are charged to companies for their emissions - some proposals are being offered by federal legislators, coal will not be the cheap, readily available energy source it is today. Furthermore, only six of 60 to 120 toxins released by coal-fired power plants are monitored by the Environmental Protection Agency, she said. .

"I have some real concerns about exposing our community to a very grave health risk - and what are we getting out of that?" she asked.

Instead, Helgen illustrated the example of one company that designed its products for zero waste and

http://www.timesrepublican.com/page/content.detail/id/500579.html?naV=5065&showlayou...1 /9/2008 Forum heralds green energy over coal I Times Republican Page 2 of2

emissions, to high environment quality standards and to minimize energy use, and the result was "savings so big by doing a few simple things that they were able to purchase renewable energy credits. That's the beauty of green economic development."

"Economic development really must fit what the community's needs are," he said. "Elected and non- elected officials should recognize they need to care for the enVironment, and that economic development is not mutually exclusive. If you do them together, the synergy that can happen will not only improve the community but help business development."

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http://www.timesrepublican.com/page/content.detaillid/500579.html?nav=5065&showlayou...l /9/2008 Forum to explore power plant impact, alternatives I Times Republican Page I of I

;mtI'':'·''·~i,j:.J'';;t';'··F'~!-m'·~~.''~'~u':,~.r.I·~".ffl.'q~S:: ..' . ._,: ',,'.."M' :00. ~ '''~~\~ 6 ~~". :,~ Centmllowa's I}.ill)' Newspaper ,ew:::: . .$2 _._ a = 44! _ 544 __ ==4 • Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

=ba.ck_to_s.tory Forum to explore power plant impact, alternatives By RYAN BRINKS, TIMES-REPUBLICAN

IpOSTED: December 16, 2007

A public energy forum Tuesday will explore the impact a proposed new coal-fired power plant may have as well as alternative energy solutions.

The 7 p.m. free event in the Fisher Community Center's auditorium, sponsored by non-profit Community Energy Solutions, will feature three presentations before a question and comment session.

"We are deeply concerned that all of the issues surrounding the proposed power plant in Marshalltown have not been brought to the attention of the public. There are serious health and environmental costs that need to be

addressed," said a spokesman for Community Energy Solutions, according to a press release.

Two local leaders will join an Iowa public interest attorney in presenting information about green economic development, alternative energy sources and the impact of coal fired power plants on communities and the environment.

Sally Wilson, a biology and ecology professor at Marshalltown Community College, will describe the causes and effects of global warming and present some alternative energy solutions.

Bill Helgen, former county extension education director, will outline the

advantages of green economic development.

Plains Justice lawyer Carrie La Seur will describe the health risks associated with the emissions of greenhouse gasses and heavy metals resulting from burning coal.

Forum organizers had hoped to have representation from Alliant Energy, which is proposing to build the plant, and the Marshall Economic Development Impact Committee with moderation by Rep. Mark Smith, D-Marshalltown, but all three declined to participate.

http://www.timesrepublican.com/page/content.detai\lid/500577.html?nav=5065&showlayou...l /9/2008 Times-Republican Page lof3

HOME I NEWS SPORTS I COMMUNITIES I VIRTUAL NEWSROOM I CLASSIFIEDS I CC Monday, February 26,2007- Time: 10:49:55 AM CST Search our 7-

By RYAN BRINKS

Applications are due today for residents interested in Alliant Energy's eWebExtras Community Advisory Committee, which will help the company steer through the local implications of building their $1 billion power plant.

• Home page • Local News As of Thursday, nearly 20 applications had been received by city hall. • Local Columns • Central Iowa Today The call for citizens to provide feedback and insights about the community • Community calendar were given by Mayor Gene Beach a month ago and through a letter to • For the Record Alliant customers earlier this month. • Obituaries • National • International "Every citizen of Marshalltown is a valued part of the community and a • Web Extras valued [Interstate Power & Light] customer," said Beach and Thomas • RSS Feeds • Submit Aller, IP&L president, in the letter. "We value your interest in the plant building process." S JOr/s • Local Sports Residents will have more opportunities to ask questions in the future as • Sports Column well, including at an open house that has not yet been scheduled and during • National a local hearing of the Iowa Utilities Board as part of the state approval • Submit process. o inion • Editorials Thoughts and questions can also be submitted at any time to the IP&L • Letters to the Editor team via e-mail [email protected].

• Tell it like it is • Submit "This project is a long journey. The announcement was just a start," Beach and Aller said. "Marshalltown and surrounding communities have a major Classifieds effort ahead to plan for 2008 or 2009 when hundreds of construction • Classifieds workers begin arriving in town to work on the largest construction project • National in the history of the community. We know Marshalltown is up!O the Fea/ures challenge and will make the most of this opportunity." • People in the News • Crossword

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If you have any problems, questions, or comments regarding www.tJmesrepubllcan.com. please contact the Ken Larson. For all 0 http://www.timesrepublican.com/incl ude/ articles.asp ?articl eID=704 3 2/26/2007 $1 billion coal-fired energy plant will be operational in 20131 Times Republican Page I of I Gm~qrti[t,a\ ------" Centr.tllowa's D-.ill)' Newspaper .4 $. :sse...... ==.. • .=t. .:t4 a: s Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive «--back_to5tory $1 billion coal-fired energy plant will be operational in 2013 COPYRIGHT2007. TIMES-REPUBUCAN.

By MIKE SCHLESINGER,TIMES-REPUBLICAN

IpOSTED: December 16,2007

After a five-year wait for business and community leaders wondering who would win the battle of where a large power plant would be located in the state, the much anticipated announcement officially came today at a press conference held at the Best Western Regency in Marshalltown.

Marshalltown won out over Ottumwa and Burlington and will be the site for a $1 billion GOO-megawatt baseload coal plant. The new plant will be located near the current Sutherland Plant on East Main Street. The Sutherland Plant, which generates 147 megawatts through coal and 150 megawatts through combustion turbines, will continue to remain in operation.

Alliant Energy spokespersons Scott Drzycimski and Kenn Vinson met in an exclusive interview with the Times-Republican prior to the official announcement to discuss the new plant and the impact it will have on the Marshalltown area.

Drzycimski stated for the next 18 months, engineering, permitting, railroad siding location and regulatory issues will be done by various Alliant teams. In late 2008 or early 2009 the con construction will begin. Drzycimski said during the construction phase the site is expected to average 300 to 400 construction workers daily with a peak of 1,000 workers daily during the middle stages of construction. The project will be completed and the plant is expected to go online by 2013.

http://www.timesrepublican.com/page/content.detail/id/500555.html?nav=5065&showlayou...1/9/2008 Expert has faith in coal technology advances I Times Republican Page I of I &R;iqJuna\ Centr.tllowa's D-.ill)' Newspaper ...... _ ::0: oz_.uz ",""I 4 __4_ Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

=back_to_story Expert has faith in coal technology advances By RYAN BRINKS, TIMES-REPUBliCAN

kOSTED: December 16,2007

Experts in the coal industry have faith that technology will rise to the challenge of environmental concerns, said Joe Lucas, a former U.S. Department of Energy public affairs manager and now a non- profit energy policy advocate, Tuesday during a tour of Iowa.

"Anyone that's looking at building a power plant is factoring in over the next 20 to 30 years some regulation of carbon," said the executive director of Americans for Balanced Energy Choices in a phone interview. "Nobody is building one that I think doesn't have great certainty that technology will allow them to capture and store carbon."

In another two to three years, Lucas said one of five or six current potential carbon solutions could emerge as a viable option.

"We've done this before, in the mid-80s, with new regulations for coal in response to acid rain concerns," he said.

At that time the federal government invested $5 billion in technology alongside $5 billion from the industry and the resulting technology benefitted taxpayers $100 billion in reduced electricity costs, he said.

Opponents of using coal as an energy source are letting perfect be the enemy of good, he added.

"I learned at a very early age that clean is a relative term. When I would clean my room, my mom would have a very different definition of what clean was," he said. "For some folks, coal will never be clean enough, and we can't let those people have the only voice in this debate."

Clean coal technology is getting close to achieving uitra-Iow or near zero emissions, at a cost of one-third of its alternatives, with a supply within the United States that is greater than the supply of oil in the entire Middle East, Lucas said.

Also, though energy efficiency is an important complement to today's energy sources, he said, "the gains we're making in energy efficiency are being quickly outstripped by Increases in usage of electricity."

Current electronics are draWing power 24 hours a day and households are incorporating more televisions, computers and cell phones into their lives, he said.

"We can't conserve our way to energy security," Lucas said. " ... It's not going to change the fact that energy demand will continue to grow."

http://www.timesrepublican.com/page/content.detail/id/500578.html?nav=5065&showlayou...1 19/2008 New plant part of bigger Alliant plan I Times Republican Page 1 of2 ~':ltpBli,u'( Centr.tl Iowa's I>-diIy Newspaper e __ t :s::::: _ Ou ...... = c. :e: n"2Z1:e se 0 :; es 1 == __4 _ll. __U =~. w Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

~ba_ck_to_stoJ:Y. New plant part of bigger AIIiant plan COPYRIGHT2007. TIMES-REPUBUCAN.

By RYANBRINKS, TIMES-REPUBLICAN

IPOSTED: December 16,2007 Alliant Energy's announcement to build a 24-hour-a-day, seven"day-a-week operating power plant that generates 600 megawatts of electricity - four times as much as Marshalltown's existing Sutherland Generating Station - was one of three components in their new Energy for a New Generation plan.

To help defray the facility's $1 billion price tag, Alliant's Interstate Power & Light Company agreed to sell $750 million worth of transmission assets to ITC Midwest LLC, the country's first independent electric transmission company - which intends to rebuild and strengthen transmission lines in Iowa, Minnesota and Illinois.

"These are wonderful people who have a singular purpose, that's to invest a lot of money and create a lot of jobs in improving the interstate highway for electrons," said Tom Aller, IP&L president.

The transaction is still subject to closing conditions, value adjustments and regulatory approval.

Th'irdly, Alliant announced plans to add at least 100 megawatts of wind generation in Dickinson, Emmett or Franklin counties between 2007 and 2009, as well as to encourage others to build more windmills and use the overfiow of theirs. Approximately half of Alliant's new generation capacity between now and 2013 will be renewable energy, Aller said.

Alliant will be working with numerous partners to accomplish the goals of its new plan, and not just on wind generation.

Aller expects Alliant to use 40 percent of its new plant capacity and sell the rest through co-ownership or purchased power agreements. They currently are negotiating with more partners than they accommodate power for, he said.

The facility would utilize state-of-the-art technologies to mitigate environmental impact while ensuring reliability, according to Alliant, which opens a door for a partnership with a biofuels producer to operate nearby with the plant's low-pressure steam.

"Our role begins and ends with prOViding safe, reliable fuel and power to grow our state," he said.

The decision to go forward with the new clean-burning coal-fired plant was delayed several years because of the success of Alliant's energy conservation program, he added.

"[This will] ultimately be the first power plant baseload we've brought on our system in roughly 30 years:' he said.

The last plant was built in the late 1970s in Ottumwa, which was also considered with Burlington for this new plant.

http://www.limesrepublican.com/page/conlent.delail/id/500558.hlml?nav=5065&showlayou...l 19/2 008 New plant part of bigger Alliant plan I Times Republican Page 2 of2

"You don't build these things very often and you only build them when you absolutely need them," Aller said.

Alliant's ability to continue focusing on new energy technologies will be enhanced by the sale to ITC.

"Our vision is to get you interconnected with the wide, robust grid that offers access to markets you've never had," said Joseph Welch, CEO of lTC's parent company ITC Holdings Corporation.

Not affiliated with any power producer, the transmission company says it can concentrate on getting power where its needed, and moving power to keep costs to end users low.

The rates ITC will charge Alliant and other utilities to transmit power will still be fully regulated by the Federal Energy Regulatory Commission.

"I have believed for years [transmission] is the glue that makes all of this energy network work," Welch said.

He noted that intended upgrades and maintenance to transmission assets will provide 50 jobs in Iowa and 200 jobs with contracted field forces.

http://www.timesrepublican.com/page/content.detail/id/500558.html?nav=5065&showlayou...1/9/2008 Local leaders grateful for Alliant's choice I Times Republican Page 1 of2 fGUtG':lqfillltan\ Central Iowa's D-.illy Newspaper - " .• e. e_ Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power~lant. Story Archive «--back_to_story Local leaders grateful for AIliant's choice COPYRIGHT2007. TIMES-REPUBLICAN.

By RYANBRINKS, TIMES-REPUBLICAN

IpOSTED: December 16,2007

After a five-year process of working with Alliant Energy as one of three potential locations for the new power plant, Marshalltown leaders were rewarded Friday by being selected for the project.

A collaboration of the city, county, Chamber of Commerce and Marshall Economic Development Impact Committee studied and talked through all implications of having the plant, particularly in the last three months, said MEDIC Director Joel Akason.

"We had a real tight task force getting every detail possible to them so we could put our best foot forward," he said.

But the final decision did not involve incentives from officials at any of the locations - Ottumwa and Burlington were also considered.

"It was in the customers' best interest to pick the best site, not the best deal," said Jeff Beer, project director for the plant.

"They made absolutely no preconditions ... to get this plant. They made us give nothing up, made no demands on us to get this plant, and 1 appreciate that," said Mayor Gene Beach. "They judged Marshalltown on what it had to offer as a community ... we were selected and I am grateful for that."

Alliant leaders said key factors in the decision included rail transportation of coal, access to it and the city water system.

The 700-acre site south of the existing Sutherland Generating Station will provide space for the plant, a potential biofuel production partner and a 3.S-mile rail loop to accommodate ISO-car unit trains.

Alliant expects to spend the next 18 months planning and designing the facility before ground is broken and then several years before it is up and running in 2013.

At the same time, construction of transmission infrastructure will take place through lTC Midwest LLC, which just bought Alliant's transmission assets.

"I always considered Alliant to be a really good neighbor, and they are, and [Alliant's Interstate Power & Light Company President Tom Aller] assures me that lTC is also going to be an excellent neighbor," Beach said.

The developments will impact the school system, retail businesses, housing and transportation throughout the area, he added.

"A lot of the impact will be things we haven't even really begun to realize," he said.

http://www.timesrepublican.com/page/content.detail/id/500557.html?nav=5065&showlayou...1/9/2008 Local leaders grateful for Alliant's choice I Times Republican Page 2 of2

Beer said Alliant will be hosting meetings in the future for community members and company leaders to explore the far-reaching impacts the project will have.

http://www.timesrepublican.com/page/content.detail/id/500557.html?nav=5065&showlayou...1/9/2 008 Leaders celebrate Alliant announcement ITimes Republican Page I of2 '~:~1'81iMU'( Central Iowa's D-dily Newspaper = m = _ P4_ s .ea. sa:: ...... Alliant Energy - Power Plant Story Archive

> Alliant Energy - Power Plant Story Archive

=ba_ck_to_s.tOry Leaders celebrate Alliant announcement COPYRIGHT 2007. TIMES-REPUBLICAN.

By RYAN BRINKS, TIMES-REPUBLICAN

IpOSTED: December 16,2007

State and local leaders celebrated a major boost for the future of Marshalltown Friday when Alliant Energy announced its plans to build a new $1 billion clean-burning coal-fired power plant.

"It's a great day for Marshalltown, it's a great day for our company and, I believe from an economic development perspective, it's a great day for Iowa," said Tom Aller, president of Alliant's Interstate Power & Light Company, during the press conference at the Best Western Regency Inn.

Newly installed Lt. Gov. Patty Judge praised the development as a step toward helping Iowa become the renewable energy capital of the worid.

"Throughout the past 15 years we have began to change the dynamics and change the economy of the state of Iowa and move towards an economy that is based on the things I think we do best, the things we grow out of the ground in our incredibly fertile soil, and turning those products into energy. You are certainly part of that equation," Judge said.

"Marshalltown and the greater Central Iowa region can expect to see new opportunities and greater economic revenue, and those revenues will have a ripple effect across the region, bring greater prosperity to Marshalltown and, I believe, pave the way for new and exciting businesses to join you here in Marshalltown," she said.

In itself, the power plant project will provide 60 to 85 full-time jobs and a construction workforce averaging 300 to 400 per day, with a jump to 1,000 at its peak.

But the local impact it will create will include $1. 7 million in new tax revenues for the city alone and opportunities to support other industries nearby. Aller identified a biofuel operation as a particular possibility.

"That facility will take the heat and the steam that's generated and, from a co-generation standpoint, allow us to help Marshalltown and the community here grow from an economic development standpoint," he said.

That, according to Judge, represents a challenge as much as an opportunity for city and county leaders to encourage more economic development.

"I expect that we will soon see the landscape in Marshall County dotted with additional renewable energy opportunities," she said.

Other leaders supporting Alliant's announcement included Sen. Larry McKibben, R-Marshalltown; Sen. John Putney, R-Gladbrook; Rep. Lance Horbach, R-Tama; Rep. Mark Smith, D-Marshalltown; Rep. Polly Granzow, R-Eldora; Mayor Gene Beach, Marshalltown City Council members Bethany Wirin, Bill Backoff, Bob Wenner and Jeff Linton and Marshall County Supervisors Ron Goecke, Pat Brooks and Gordie http://www.timesrepublican.com/page/content.detail/id/500556.html?nav=5065&showlayou...1/912008 Leaders celebrate Alliant announcement I Times Republican Page 2 of2

Johnson.

"Alliant has given us some additional momentum that will propel Marshalltown and Iowa to other great successes," Beach said.

http://www.timesrepublican.com/page/content.detaillid/500556.html?nav=5065&showlayou...1 19/2008 I. I \t ~ i \ I Saturday,March17,2007 Page17A . TheDesMoinesRegisterGC "'i ({OPINION I

,I IOWA VIEW A halt to building coal plants? \It's not such a radical thought Weshould stop building new coal plants in Iowa and declare a moratorium on increasing coal use. When I first heard this idea, it seemed pretty radical. Now, the more I consider it, the more it seems like the best thing for our state. We can grow our economy, add new jobs, improve our tax base and reduce pollution for us and our children all at the same time. When we bum coal for electric- ity, it releases a lot of pollution. The tiny particles ASSOCIATED PRESS FILE PHOTO from combus- A coal-fired power plant sits at the mouth of a Pennsyl- I tion get into our vania coal mine. . lungs, choking Marc our breathing for wind turbines have created coal plant for Marshalltown, FRANKE and providing a jobs, too, right here in Iowa. and a New Jersey company, pathway for pol- l! we need more electrical LS Power, is proposing a new· lutants into our bloodstream. capacity, why wouldn't Io- plant for Waterloo. The Water- The airborne mercury from wans insist that it come from loo electricity might be sold burning coal gets into our our own energy resources? to other states. Iowa would fish, which then endangers Why spend our hard-earned get the pollution; other states· pregnant" mothers and small energy money on highly pol- would get power; and New Jer- children. The sulfur from luting power from somewhere sey would get the profits. burning coal gets into our air else? When I pay my electric Iowa gets up to· 85 percent and acidifies our lakes and bilI, I want the money to help of its electricity already from streams, destroying habitat build my community, not to coal. Nationally, coal provides for fish. The carbon dioxide create more pollution in the only 50 percent of electricity .. from burning coal gets into air I breathe and the water I Let's get all of our new elec- our atmosphere and acceler- drink. trical capacity from our own ates global warming. In the Advocates of coal electricity energy resources and build up years since 1940, carbon in tell us that the pollution could our economy, our jobs and our our atmosphere is 27 percent be eliminated and the carbon local tax base. higher than at any time in the could be stored with new tech- A coal power plant lasts 50 past 650,000 years. nology now available. But so years. Let's not build any that Iowa has some of the best far, none of those plants. has aren't the best technology. Let wind resources in the United yet been built for us to evalu- your local officials and legis- States. Already, Iowa's wind ate. The Department of Energy lators know that Iowa already farms have created new jobs, has a $1 billion contract out has more than enough coal increased the property-tax to build such a "FutureGen" electric power and the pollu- base for schools and services, plant by 2012. When such a tion that it brings. reduced money flowing out of plant exists and is proven, MARC FRANKE of Ely write. and our state to import coal and we could end our coal-power speaks on enBrgy and policy. He prevented a huge amount of moratorium. Yolunteers with the nonprofit Iowa pollution. The new factories .Alliant is proposing a new Renewable Energy Association.

I)., I) _I).' \ I

[~ALLIANT Interstate Power and light Co. I· A ENERGY. An Alliant Energy Company 200 First Street SE P.O. Box 351 Cedar Rapids. IA52406-0351

Office: 1.800.822.4348 www.aUiantenergy.com

January 2007

Keeping pace with the demand for reliable power is critical to Iowa's economic growth. Interstate Power and -Ught(IP&L) isa committed partner in supplying the'power to fuel lowa's"economy. To fulfill'that commitment" we are expanding our generation capacity with a new power plant in Marshalltown and additional wind power in Iowa. In addition, an agreement is in place to sell OUf transmission system to an independent transmission company.

We plan to build a new clean-coal generation facility in Marshalltown at the site of the existing Sutherland Generating Station. The new plant will produce approximately 600 megawatts (MW) of electricity, or enough to power more than 150,000 homes.

IP&L expects to use at least 250 MW of the plant's capacity. Partners in the facility will use the remaining capacity or some may be sold to other utilities through purchased power agreements. The plant will be a centerpiece in providing ample and affordable energy for economic expansion while also meeting the growing demand for power from our existing customers. It will use proven clean-coal technologies to limit emissions. We're expecting it to be operational in 2013.

We will also increase our commitment to the state's wind energy future by adding at least 100 MW of new wind generation that will be developed here in Iowa by 2009. We'll take advantage of our homegrown wind power to provide clean, locally-produced electricity to our customers.

As we add new generation to our system, we will also continue to offer our popular and comprehensive energy efficiency programs to help slow the need for further generation expansion. These prograros have allowed us to wait three decades between new coal-fired baseload plants and have cut usage by more than I billion kilowatt hours since 2000.

Additional plans include the sale of our electric transmission system to a regional transmission company that is poised to expand the energy highway that transports the electricity to fuel Iowa's energy future. The transmission sale will help Iowa add opportunities for more wind power. It will also create avenu~sto market Iowa's renewable energy to the Midwest. creating new economic benefits for our state.

Iowa's energy economy is expanding and at IP&L we have a responsibility to help our state grow. We're pleased to be part of this growth today and are committed to being a partner in economic growth for years to come.

Sincerely, -J~ ~!iLevL Thomas L. Aller President, Interstate Power and Light Co. RECEIVED JAN 23 2007 ot ~• s ; 6 .e- ••o ~ 1 ~~ ;§ 1 8 ~ ~ ~2;-1'~.8 if. t l~j -B j .. 'i li HD ;5ii·.~] a 'i =II; ~.! co fi .. 5 "'0 • ,;H ~ J;;.~.g &. ~:f 'Z," .It'" .- = a:a :s 0i1£.!l 1:-5 .::j-a ~-<"'-=i r,rf,] c.,j 0 H n· ~ ~F •.• .s·5~e! ~ 811 • 18~ 51 ~ 8?;i5S E . g. ~~ 8:- .. gl .~ ,§ &. 11 ~ "P ; -u <: 0" ~ III ~l~ .~~ ~. i~I ~ :J , ~ B".a 'S.d· q .51 ~~jO"~I -5;:"j g..e g 3.~"I· ii . 1< '.i~nl ~ it 5 n,: 1. "''i:] ~ ei '6 S 9 -5 '- jg~~3~ ~.f - ~1-1i "5~: g

~ ...0- OJ Z I'D ~ g C' ~;r I'D o :::s I'D f ; 8 _. -o :::s

:::E z c Cl rn Z rn ;Ill :!:; o z January 19,2007 Page lof3

!~ALLIANT ~ .. ENERGY.

Recent Press Release Alliant Energy-IP&L Announces Agreement to Sell Transmission Assets to ITC Holdings Corp.; Introduces Energy for a New Generation Plan

The "Energy for a New Generation" plan enhances energy reliability and results in:

• More than $1.2 billion investment in energy infrastructure in next 7 years • More than 65 new permanent jobs and hundreds of construction jobs • As much as $1.7 million annually in new generation tax payments to the Marshalltown-area • 100 megawatts of new wind power in Iowa • Sale of transmission assets to a company committed to invest in upgrading reliability and access

Cedar Rapids, Iowa - January 19, 2007 - Interstate Power and Light Company (IP&L), a subsidiary of Alliant Energy Corporation (NY5E: LNT), today announced a major electric utility infrastructure development plan for the states of Iowa and Minnesota designed to advance economic development, enable renewable energy, and support the Midwest's burgeoning alternative fuels industry.

A key component of this plan is the signing of a definitive agreement to sell IP&L's transmission assets located in Iowa, Minnesota, and Illinois to ITC Midwest LLC, a newly-formed subsidiary of ITC Holdings Corp. (NY5E: lTC), for approximately $750 million, subject to adjustment. Net proceeds from the sale, after taxes, transaction related costs and regulatory outcomes are estimated to be in the range of $475 million to $525 million.

ITC Holdings has announced its commitment to build transmission to meet the needs of its customers while supporting increasing electricity demand and growing interest in renewable energy resources in Iowa and Minnesota, including the states' growing ethanol and wind power industries.

At this time, IP&L anticipates that the proceeds from the sale will be used to help fu nd IP&L's infrastructure development plan, Energy for a New Generation. This infrastructure development plan includes investments in a coal baseload power plant and additional wind power to be built in Iowa. "Combined with the sale of IP&L's transmission assets, the Energy for a New Generation plan will help provide customers with reliable, affordable and environmentally-friendly energy into the future", said Bill Harvey, chairman, president and CEO of Alliant Energy.

Tom Aller, president of IP&L, re-affirmed the utility's commitment and role in providing reliable energy to support the economic growth of our service territories. "We believe our plans announced today - a new power plant, expanded wind power and sale of our transmission system to a committed transmission system builder - exhibit our dedication to providing energy for the next generation and fulfilling our responsibility to the economic health of the communities we are privileged to serve," said Aller.

The company's Energy for a New Generation plan includes:

Sale of Transmission Assets to ITC Holdings

Pursuant to the purchase agreement, subject to customary closing conditions, ITC Midwest will acquire all of IP&L's transmission assets at 34.5 kilovolts and higher for apprOXimately $750 million in cash, subject to regulatory approval. The purchase price is subject to various adjustments at closing, including an adjustment based on the value of the ratebase assets delivered as of closing. Net proceeds from the sale, after taxes, transaction related costs andregulatory outcomes are estimated to be in the range of $475 million to $525 million.

The transmission rates that ITC Holdings' subsidiaries charge their utility customers for transmission service are fully regulated by the Federal Energy Regulatory Commission (FERC). After the transaction closes, IP&L will pay the regulated rates to ITC Midwest for transmission needed to serve its customers.

http://www.alliantenergy.com!docs/ groups/public/ documents/pub/pO 15721 .hcsp ?print=true 1/19/2007 January 19, 2007 Page 20f3

Pending all appropriate state and federal regulatory approvals and satisfaction of other closing conditions, the transaction is expected to be concluded in late fourth quarter 2007. The transaction is subject to approvals by various regulatory agencies -- including the Iowa Utilities Board (IUB), the Minnesota Public Utilities Commission (MPUC), the Illinois Commerce Commission (ICC) and the FERC- as well as antitrust review under the Hart-Scott-Rodino Act.

As a fully independent transmission company, ITC Holdings is focused on improving electric reliability of the transmission system by making the necessary upgrades needed to enhance the transmission system. This investment is expected to benefit IP&L's customers by providing improved pathways to bring in lower cost energy and allow both Iowa and Minnesota to advance their plans for renewable energy and alternative fuels. "Limitations on the current electric transmission system could soon limit both Iowa's and Minnesota's ability to move power, including renewable energy, to customers," said Aller. Further development of wind energy and other renewable ventures such as ethanol production will require millions of dollars of additional investment in the electric transmission system.

"The acquisition of IP&L's transmission assets supports ITC Holdings' continued mission to rebuild and invest in the electric transmission infrastructure for the benefit of customers through improved reliability ana enhanced access to the competitive energy marketplace," said Joseph L. Welch, president and CEO of ITC Holdings. "End-use consumers will be the true beneficiaries of this acquisition as we remain steadfast in our commitment to enhance electric reliability and further enable the development and growth of renewable energy resources."

As an added benefit, an independent electricity transmission highway is expected to encourage greater flow of energy between generation facilities and customers, encouraging further investment in generation and ability to buy competitively-priced power to keep costs low for IP&L customers. "We believe this package of actions provides benefits to our customers, communities and our service territory states," Aller said. "The expected result will be reliable energy for the next generation of customers."

Baseload Coal Plant In mid-2007, IP&L plans to request approval from the Iowa Utilities Board to build a new baseload coal- fired generation plant. Pending regulatory approval and further due diligence, IP&L plans to build the new plant next to the existing 140-megawatt Sutherland Generating Station in Marshalltown, Iowa. The anticipated new 600-megawatt plant will be designed for continuous operation. IP&L expects to utilize at least 40 percent of the plant's capacity. It is anticipated that other utilities will utilize the remaining capacity through co-ownership or purchased power agreements. Ownership partners are expected to be announced later this year. The plant would take advantage of proven state-of-the art technologies to mitigate environmental impact, while ensuring maximum reliability. In addition, it is possible that construction of the new generating facility could open the door for a biofuels producer to operate a near-by facility utilizing the low-pressure steam from the power plant.

The power plant is anticipated to cost IP&L and its partners approximately $1 billion and is expected to be operational in 2013. This cost estimate is in current year doilars and excludes allowances for funds used during construction (AFUDC). The new plant is expected to employ 60-85 employees when operational. While under construction, the workforce is expected to average 300-400 people per day and, at the height of the effort, 1,000 workers are expected to be at the site each day. The community of Marshalltown is expected to receive annual tax payments of as much as $1.7 million from the new plant.

Wind Energy Facilities IP&L is actively pursuing sites for the development of at least 100 megawatts of renewable wind energy in Iowa. With the outstanding wind profiies in the IP&L service territory, the company expects to add wind energy in the future.

"We believe there is significant potential for further development of wind generation in our service territory," Aller said. "Customers appreciate the home-grown nature of wind energy and our communities benefit from the growing wind energy industry in our state and service territory."

IP&L is currently reviewing sites in Emmett, Dickinson and Franklin counties for possible development. In

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addition, Wisconsin Power and Light, another Alliant Energy subsidiary, is pursuing sites in Iowa. and Minnesota for the development of at least 200 MW of renewable wind energy. The companies are evaluating site locations and plans to select a site or sites early in 2007 with commercial operation expected in 2009, subject to regulatory approvals.

Energy Efficiency and Demand-Side Management

IP&L's new generation and the transmission asset sale will help meet the growing demands of IP&L's customers, which is expected to increase between one and two percent each year, and to serve communities with electric capacity that will help entice economic development. IP&L continues to encourage energy efficiency through its aggressive demand-side management programs, which include incentives and rebates for residential and commercial customers. IP&L's energy efficiency efforts have led to sustainable energy usage reductions of more than one billion megawatt hours since 2000.

Alliant Energy Corporation is an energy-services provider with subsidiaries serving approximately 1.5 ~·miliion-customers ..Providing-its customers· in the Midwest with-regulated ·electricityand natural gas ~---~ service is the company's primary focus. Interstate Power and Light, the company's Iowa utility subsidiary, serves 535,000 electric and 238,000 natural gas customers. Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the company's Web site at www.alliantenergy.com.

Media Contact: Scott Drzycimski (319) 786-7500 Investor Contact: Becky Johnson (608) 458-3267

This press release includes forward-looking statements. These forward- looking statements can be identified as such because the statements include words such as "expect" or "expects" or "expected," "anticipated," "plans," "believe" or other words of similar import. Similarly, statements that describe future plans or strategies are also forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: state or federal regulatory actions or local government actions which delay or prevent the transmission sale or new generation construction, inciuding inability to obtain all necessary approvals and permits; the ability to complete the sale of the transmission assets on a timely basis and for anticipated proceeds; in the ability of the purchaser of the transmission assets to finance purchase price; unanticipated construction issues, delays or expenditures; changes to IP&L's access to capital markets; poiitical conditions in IP&L's service territories; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of the IP&L's plans; inability to find utility partners for co-ownership or purchased. power arrangements; failure of eqUipment and technology to perform as expected; and economic conditions in IP&L's service territory. These factors should be considered when evaiuating the forward-looking statements and undue reliance shouid not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy, IP&L and WP&L undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.

Questions? Use our Contact Us form, a-mail us, or call our 24-hour Customer Service Center at 1-800-ALLIANT (255-4268).

http://www.alliantenergy.com/docs/groups/pub1ic/documents/pub/pO 15721.hcsp?print=true 1/19/2007