Alliant Energy’s Iowa utility has accepted a proposed decision and order issued by the Iowa Utilities Board (IUB) for the 600 MW Marshalltown Generating Station (MGS). Assuming regulatory approval, the natural gas-fired plant would be built in central Iowa beginning next year with operations expected to begin in 2017. The IUB approved construction of the plant and included a cost cap of $920 million, and allowed Iowa Power and Light (IPL) to recover in rates the actual cost of the facility. The IUB approved pipeline construction to deliver natural gas to the facility. Construction of the combined-cycle plant is part of IPL’s long-term energy resources strategy, which was unveiled in August 2012. Alliant said earlier this month it is conducting a feasibility study of resource options to address future customer energy and capacity needs in Wisconsin; options include conversion of an existing gas-fired facility from simple-cycle to combined cycle or the construction of a new facility. Alliant’s Wisconsin Power and Light has said it may replace 270 MW of coal-fired electric generation with natural gas-fired units (see Daily GPI, April 24).
Gas
Articles from Gas
House to Take Up Bills on Fracking, Permitting
The House of Representatives is preparing to vote next week on two Republican bills that would prohibit federal regulation of oil and natural gas hydraulic fracturing (fracking) and streamline the process for obtaining a permit to drill on public lands.
Overall Strength Offset By Eastern Drops; Futures Add A Nickel
Physical gas for weekend and Monday delivery on average was unchanged in Friday’s trading, and although most points showed gains of a nickel or more, forecasts of mild temperatures in New England and at eastern points prompted double-digit declines and offset what otherwise was broad market strength.
Week’s Cash and Futures Trading Winds Down With Gains All Around
For the week ending Nov. 15 the NGI National Spot Gas Average posted a healthy 13 cent gain to average $3.58 with only one Rockies point and a handful of Northeast locations failing to make it to the positive side of the trading ledger. Of all the market points the Northeast was home to the week’s biggest winner and also the biggest loser.
Physical Gas Falters, Yet Futures Keep Movin’ On Up
Physical gas for Friday delivery fell hard and fell often as prices averaged a decline of 19 cents nationally in Thursday’s trading. No actively traded point registered gains and most points tumbled anywhere from a dime to 20 cents.
Industry Brief
FirstEnergy Corp.has announced that it plans to invest an additional $2.8 billion over four years to expand its previously announced “Energizing the Future” transmission initiative, with the main focus of the initial construction effort being the 69 kV transmission power lines and substations in the Ohio Edison, Cleveland Electric Illuminating Company, Toledo Edison and Penn Power areas. The program is expected to be expanded into other FirstEnergy service territories during the next several years. Overall, the new transmission projects are designed to increase FirstEnergy’s load serving capability in areas where future economic growth is anticipated, particularly in Ohio’s shale gas regions; improve reliability of service; create more flexibility to restore service following storms; reduce line losses; and lower the company’s overall transmission maintenance costs. Many of the projects — including new or rebuilt high-voltage power lines, new substations, and the installation of specialized voltage regulating equipment — are needed to help support system reliability as coal-fired power plants in the region are deactivated based on the U.S. EPA Mercury and Air Toxics Standards and other environmental rules.
Milder Weather Prompts Cash Plunge, Futures Slide; December Off A Nickel
Natural gas for delivery Thursday fell 22 cents on average, but if the multi-dollar losses at New England points are factored out, the decline was a more modest 8 cents. Weather forecasts showing a warming trend pulled the plug on the bulls’ aspirations and futures softened as well.
Carlyle Targets $7B for Energy Investments
Carlyle Group plans to raise $7 billion for energy funds over the next two years, with more than half — $4 billion — targeting North America, executives said during an investor presentation in New York City.
Opposition Seeks Halt to Keystone’s Southern Segment
The Texas arm of activist group Public Citizen on Tuesday called for a halt to the scheduled start of TransCanada Corp.’s Keystone XL oil pipeline’s southern segment from Oklahoma to the Texas Gulf of Mexico. It is slated to begin operations before the end of the year.
Wyoming Sets Water Test Rule for Drillers
Wyoming’s Oil and Gas Conservation Commission (OGCC) on Tuesday established a baseline groundwater testing rule for oil and natural gas operators to following in their exploration and production (E&P) work.
