Interstate Power and Light Company ("IPL"), a business wing of
Alliant Energy Corporation
), filed two applications for regulatory approval for the planned
building of the 650 megawatt Marshalltown Generating Station
("MGS") with the Iowa Utilities Board.
Interstate Power and Light is expected to receive a response
in the fourth quarter of 2013. The subsidiary is also seeking to
file regulatory tender to the Minnesota Public Utilities
Commission in the next month.
The company has been heavily expanding and developing its
utility assets in the Iowa region. Prior to this, Alliant Energy
wrapped up its Power substation project in the Hardin County.
Moreover, the company expects to invest over $3 million in the
The natural gas-fired Marshalltown unit is a $650-$750 million
investment which is expected to be a major revenue churner for
Alliant Energy. In addition to providing reliable and safe power
services, the combined-cycle plant will be cost-effective which
will enable Iowa customers to accrue substantial benefits in the
The MGS facility is a part of the company's long-term energy
resource plan. With the growing popularity of clean burning
natural gas as a power source in the United States, we believe it
will fetch profitable returns for the company. However, the
success of this program is subject to positive regulatory
outcome. Any opposite ruling could hurt Alliant Energy's growth
Alliant Energy expects adjusted earnings for 2012 in the range
of $2.90 to $3.05 per share, up from its prior forecast of $2.75
to $3.05 per share. The Zacks Consensus Estimates for the fourth
quarter and full year 2012 currently stand at 59 cents and $2.97
per share, respectively.
Alliant Energy's primary competitor
Wisconsin Energy Corporation
) is gearing up to develop its renewable energy business with the
50-megawatt biomass-fueled power plant in northern Wisconsin.
Although economic conditions are still sluggish in the U.S.,
we believe large-scale utility investments will bode well for the
company's future goals. Alliant Energy presently has a short-term
Zacks #2 Rank (Buy rating).
Alliant Energy Corporation, a utility holding company,
provides regulated electricity and natural gas services to
residential, commercial, and industrial customers in the Midwest
region of the U.S.
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