The three co-owners of the US nuclear power plant Duane Arnold have agreed to sell the single-unit plant at auction.
Interstate Power and Light Company (IP&L), a subsidiary of Alliant Energy Corporation announced on 2nd February 2005 that it, together with the Central Iowa Power Cooperative (CIPCO) and the Corn Belt Power Cooperative had agreed to take part in a competitive auction process.
IP&L owns 70% of Duane Arnold (also known as the Duane Arnold Energy Center) while CIPCO and Corn Belt have 20% and 10% stakes respectively. The co-owners plan to enter into an agreement with the winning bidder by 30th June 30 2005, and will then apply for all appropriate state and federal regulatory approvals.
IP&L said the owners must make a decision in the coming few years whether or not they will seek to relicense the plant – which is currently licensed to operate until 2014. The existing owners could seek approval from regulators for a licence extension, but IP&L said that as this is a “long and expensive process, the owners will need to make that request in the coming few years. We felt it best to give a potential new owner adequate time to prepare for that option if it chooses.”
During the approval process CIPCO and Corn Belt, as borrowers from the US Department of Agriculture’s Rural Utilities Service (RUS), will need to obtain approval from the RUS for the sale of their interests.
For the past five years the Nuclear Management Company, an organisation owned by a consortium of nuclear utilities, including Alliant Energy, has operated the plant [see Business News No. 58, 17th May 2000].
IP&L announced on 22nd December 2004 its intent to offer for sale its stake in Duane Arnold. The plant, near Palo in the state of Iowa, is a 580 megawatt boiling water reactor (BWR) unit which started commercial operation in June 1974.
