NextEra Energy Resources and Alliant Energy agree to shorten the term of the Duane Arnold Energy Center power purchase agreement; Alliant Energy customers to save hundreds of millions of dollars

• The term of the Duane Arnold Energy Center power purchase agreement will be shortened and the plant is expected to be retired in late 2020, followed by a multi-year decommissioning process

• Duane Arnold Energy Center job reductions will be gradual over seven years; NextEra Energy Resources is committed to a comprehensive plan to minimize impacts to employees

• Alliant Energy customers will save nearly $300 million in energy costs, on a net present value basis, over 21 years

• Companies enter into agreements for Alliant Energy to purchase output from four of NextEra Energy Resources’ existing wind projects

• NextEra Energy Resources plans to invest approximately $650 million in existing and new renewables generation across Iowa before the end of 2020

 

NextEra Energy Resources, LLC through its affiliates (NextEra Energy Resources) and Alliant Energy’s Iowa energy company have agreed to shorten the term of their existing power purchase agreement (PPA) for the output from the Duane Arnold Energy Center (DAEC) by five years in exchange for a buyout payment. The companies’ new agreements also include new repowered wind PPAs. These transactions will save Alliant Energy’s Iowa customers nearly $300 million in energy costs, on a net present value basis, over 21 years. Assuming all requisite approvals are received, the DAEC is expected to cease commercial operations in late 2020.

“The Duane Arnold Energy Center has provided reliable energy to Alliant Energy’s Iowa customers for decades,” said Patricia Kampling, chairman and CEO of Alliant Energy. “Partially replacing energy from Duane Arnold with NextEra’s additional wind investments in Iowa will bring significant economic benefits to our customers.”

“The eventual closing of the Duane Arnold Energy Center is a difficult decision because of the approximately 500 highly skilled men and women who consistently have made it one of the top-performing nuclear facilities in the country,” said Armando Pimentel, president and CEO of NextEra Energy Resources. “You have our assurance that we will continue to practice our corporate values of doing the right thing by our colleagues and treating them with the respect they have earned and deserve. We are committed to minimizing any impact today’s announcement may have on them, their families and the community they call home. Importantly, as we proceed into the next decade, several hundred jobs will remain at the plant for a number of years as a result of what will be a lengthy decommissioning process, along with the creation of new jobs through our continued investment in Iowa.”

Alliant Energy has agreed to make a $110 million buyout payment to NextEra Energy Resources in September 2020 to cover the cost to shorten the term of the DAEC PPA from 2025 to 2020. Alliant Energy intends to apply to the Iowa Utilities Board today (July 27) for approval regarding recovery of the buyout payment. Alliant Energy’s Iowa customers are expected to save nearly $300 million, on a net present value basis, starting on or before Jan. 1, 2021, contingent on the Iowa Utilities Board’s approval of Alliant Energy’s request. The savings estimate includes the cost of the amendment payment and the costs for replacing energy and capacity.

Under the agreements, NextEra Energy Resources will supply wind energy from four repowered Iowa wind facilities, representing approximately 340 megawatts of clean, emissions-free electricity for Alliant Energy’s Iowa customers.

Continuing its commitment to the state of Iowa, NextEra Energy Resources plans to invest approximately $650 million in existing and new renewables generation across the state by the end of 2020, including the planned approximately $250 million to repower the four wind facilities as part of these transactions. Repowering these facilities is expected to create 200 new construction jobs during the process, as well as extend payments to landowners and tax revenues for local communities for decades. NextEra Energy Resources also is evaluating redevelopment opportunities at the DAEC site, including the construction of new solar energy, battery storage or natural gas facilities.

NextEra Energy Resources expects a gradual reduction in staffing at the DAEC over the next seven years as the decommissioning process takes place. To support DAEC employees during the transition, NextEra Energy Resources has developed a comprehensive employee plan that includes an enhanced retirement program for eligible employees, placement in other jobs throughout the company, and job retraining, outplacement services and severance packages, where applicable. NextEra Energy Resources also is partnering with Alliant Energy and other companies in the energy industry to identify opportunities for DAEC employees.

At the appropriate time, the Midcontinent Independent System Operator and the Nuclear Regulatory Commission will be notified of the intent to permanently cease operations and decommission the DAEC.

 

 

 

 

Alliant Energy recognized by Nasdaq for sustainability leadership

We were recently recognized for our sustainability efforts by a major stock exchange. Our company and our stock were selected by Nasdaq to be added to their Global CRD Sustainability Index.

The Index tracks the performance of companies taking a leadership role in sustainability reporting. We’re one of 400 public companies to be included out of more than 4,000 that were evaluated.

We’re proud to be among the chosen businesses that have voluntarily disclosed their sustainability strategy and governance, environmental footprint and emissions reductions, social metrics and community investments.

Want to learn more about our sustainability story and performance? Stay tuned as we’ll be releasing our 2018 Corporate Sustainability Report in early August.

 

Alliant Energy activates cycling program in response to today’s heat

Alliant Energy’s Iowa energy company is taking proactive steps to reduce costs for customers due to today’s heat in central Iowa.

Energy prices can peak during intensely hot days like today. To reduce costs, we are activating our voluntary Appliance Cycling program in Iowa. Today we are only cycling customers in the central portion of the state.

We will remotely control air conditioners and electric water heaters for participating customers.

Participants will see their air conditioner cycled in 15-minute intervals from 1 p.m. to 7 p.m. The blower fan will continue to circulate the cooler air already in the home.

The program reduces peak energy use on the overall energy grid, which lowers costs for customers.

Program details:

Who does this affect – This is a voluntary program for Alliant Energy’s Iowa residential customers. Today, only customers north of Interstate 80 and south of Highway 20 are included in the cycling.

When does this start and stop – The cycling goes from 1 p.m. to 7 p.m., July, 12 2018.

How do customers save money – Our program syncs air conditioners across the state to reduce the number running at any one time. In industry terms, this reduces peak demand, and reduces the need to purchase higher-priced energy because of high demand.

Residential customers who have enrolled their central air conditioning unit get a credit on their bill of $8 per month from June through September – even if it doesn’t get warm enough to cycle appliances. Residential customers who have enrolled their electric water heater get a $2 per month credit during the same time.

Learn more at alliantenergy.com/appliancecycling.