Interstate Power and Light Co., a subsidiary of Alliant Energy Corp., on Monday filed with the Iowa Utilities Board (IUB) a proposed settlement agreement reached between the company and the Iowa Office of Consumer Advocate (OCA). If approved by the IUB, the agreement would allow the company to proceed with its plans to construct a 600-megawatt natural gas-fired generating station in Marshalltown. The proposed settlement agreement must have to the utilities board's approval before becoming effective.

“Reaching a fair and reasonable settlement agreement with the OCA is a significant step forward in executing our long-term energy resource plan,” said Tom Aller, president of IPL, in a release. “We appreciate the efforts of the OCA to work with us to reach this agreement.”

IPL had previously filed for approval of eight ratemaking principles prior to beginning construction of the power plant. Of these principles, the OCA and IPL had differences on three terms which are resolved in the proposed settlement.

The utilities board has scheduled an evidentiary hearing on a generation certificate for the plant as well as to consider IPL’s proposed ratemaking principles.  The hearing is to begin on May 21.  The company expects that the hearing will provide the utilities board an opportunity to inquire into the details of the proposed settlement with the OCA.

IPL expects to receive state regulators' decision on the station by the fourth quarter of 2013. A certificate for construction for the proposed power plant would be contingent upon IPL receiving all necessary permits and regulatory approvals.