Alliant opts for cleaner coal plan in Cassville

Daily Reporter (Milwaukee), Jun 17, 2008 by Paul Snyder

The timing of Alliant Energy's plans for expanding the Nelson Dewey Generating Station in Cassville seems a little suspect to one of the project's opponents.

Katie Nekola, energy program director for Clean Wisconsin, said the timing of plan changes by Alliant's subsidiary, Wisconsin Power and Light Co., coincides a little too nicely with a draft environmental impact statement released last month by the Public Service Commission of Wisconsin, which said the plant was neither the optimal choice for power generation or cost.

Alliant Spokesman Rob Crain said it's a coincidence.

"We want to make sure we're constantly reviewing what we're doing and putting our best foot forward," he said. "The plan we've put together is not something you can come up with in three weeks."

Wisconsin Power and Light Co. announced a number of plans to reduce greenhouse gas emissions at the plant, including retiring one of the plant's coal-firing stations, increasing commitment to develop new wind sources and doubling the amount of renewable resource fuels used at the plant.

But Nekola, a member of one of the groups that has opposed the plant since it was first proposed, isn't buying it. She sees it as an attempt to appease the public and the PSC.

"First off, they're saying they're going to do all this, but there's no evidence that they actually will," she said. "Second off, they said in testimony Friday they don't have the biomass there (to burn double the amount).

"And as far as wind goes, that's the subject of an entirely different set of regulatory proceedings."

Nekola said it's unlikely the PSC's draft statement would change too much before it makes its ruling on the Alliant's proposal, scheduled for Dec. 15.

In addition to being skeptical of what can be done at the plant to reduce emissions, the cost could sink it, she said. Crain said estimates for work on all three sections of the plant -- including expansion, remodels and new construction -- run between $1.2 billion and $1.4 billion.

"It's too expensive," Nekola said. "It's not a good deal for the ratepayer."

While Alliant strives to find the best deal for its ratepayers, Crain said the need for the work in the area is clear.

"The demand in the service territory continues to go up," he said. "This could've been built 10 years ago, but our energy efficiency program offset the needs for that. The (energy needs) just continued to increase."

Public hearings on the plant are slated for September, and Nekola said Clean Wisconsin and the Citizens Utility Board will continue to intervene and are mounting a legal case against the proposed expansion.

Although coal-fired generation remains largely unpopular with environmental advocates, efforts in the last legislative session to increase alternative power baseloads -- including wind and nuclear - - fell short of reaching the governor's desk.

Nekola said utilities continue to chase coal-fired plants because it's a business model they know, but she said those days are soon coming to an end.

"I believe there's a very good chance (the Nelson Dewey project) won't be built," she said. "There's a new reality and people realize it now. There's no time to do business as usual. People want significant reductions in greenhouse gas emissions.

"I have a feeling with this that I didn't have when we were fighting (the Elm Road Generating Station in Oak Creek) or (the Weston 4 Power Plant near Wausau). It's time."