Alliant Energy is asking for a decision from the Iowa Utilities Commission by December on its application to build and operate the proposed natural gas-fueled Morgan Valley Energy Center northwest of Fairfax.
The application from Interstate Power and Light (IPL) – Alliant’s Iowa energy subsidiary – seeking a certificate of public convenience, use and necessity for the plant was filed with the IUC Wednesday.
Alliant wants to begin construction of the 720-megawatt facility in the second quarter of 2027, contingent on approval of an air quality permit, with the plant entering service in the second quarter of 2030, according to the application.
The facility would employ three simple-cycle combustion turbine generators, each rated at 240 megawatts, and would be located southeast of the intersection of Highway 30 and Linn-Benton Road, about 2 ½ miles northwest of Fairfax, on 160 acres of currently undeveloped, privately-owned agricultural land.
Alliant has “an executed agreement in place with the current landowner to purchase the land at a future date,” the application indicates.
The plant’s design would also allow conversion to a higher-output, combined-cycle facility in the future “at reduced additional expense,” which “provides IPL the flexibility to address future customer growth, reliability, and resource needs in a timely and cost-effective manner,” according to the application.
As designed, the plant would also include 150-foot-tall exhaust stacks and external fin fan cooling radiators, according to Alliant officials.
There are currently no specific customers for the plant’s electrical output, according to Allliant spokesperson Taylor Adams, and no power purchase agreements have been reached. But officials have said that the power plant’s proposed location in Linn County is based, at least in part, on rising power demand from data centers under construction on the southwest side of Cedar Rapids.
A formal application for the project hasn’t yet been submitted to Linn County officials. Linn County Planning and Development director Charlie Nichols said that Alliant staff anticipates submitting a rezoning application for the plant site in July.
However, several objections have already been filed in the Iowa Utilities Commission’s official docket for the proposal, which was opened in February. Most of the objections have focused on public awareness, air quality issues and the proposed plant’s proximity to residential areas in both Linn and Benton counties.
Linn County officials enacted a new ordinance in March governing the approval and siting of natural gas-fired power plants, providing “several protections” regarding setbacks and other development standards.
Alliant had initially proposed to build the plant on the southeastern side of Fairfax, but In the wake of concerns raised by Eastern Iowa Airport leaders and some Fairfax residents, Alliant announced in October it was “deprioritizing” that site as a proposed location.
A number of other details about the proposal were unveiled in Alliant’s application:
Environmental factors
- While specific details on levels haven’t yet been released, IPL says the plant will emit CO₂, nitrogen oxides, carbon monoxide, volatile organic compounds, sulfur dioxide, and particulate matter. IPL plans to use Ultra Dry Low NOx combustors and “good combustion practices” to mitigate those emissions.
- IPL says the facility will employ a closed-loop glycol-water system for cooling, using fin-fan air-cooled heat exchangers — eliminating the need for large volumes of cooling water typical of other power plants.
- The City of Cedar Rapids’ Water Division will supply water to the facility through a new water line to the project site, according to a signed agreement. Peak water usage is estimated at 203.5 gallons per minute during peak summer operation.
- Wastewater will be routed back to the city’s system via a newly-constructed sewer line, and will be capped at 58.4 gallons per minute.
- A detailed water balance report – a comprehensive audit of all water entering, exiting, and stored within a power generation facility over a specific period – was included in the application as a confidential exhibit, IPL said. That report isn’t currently being publicly disclosed.
- Field surveys completed in early April found no wetlands, waterbodies, or designated critical habitat on the site, according to the application. IPL says the project will have no effect on identified protected species.
- Linn County’s amended zoning ordinance addressing gas-fired generation facilities includes noise limits and setback requirements. The project must be sited 2.25 miles from residentially-zoned areas within a population center and 1,000 feet from dwellings. IPL says in the application that the project complies with those requirements, and that the company has executed “good-neighbor agreements” with neighboring property owners.
Community and economic impact
- Up to 360 workers would be required for construction, with a total project payroll of $110 to $160 million. Once operational, the plant would employ four to 10 full-time workers, with an ongoing annual payroll of $600,000 to $1.5 million.
- IPL estimates $1.5 million to $4.5 million would be spent annually in the region on non-fuel operations and maintenance goods and services.
- The generation component of replacement tax will be allocated to the site, and is estimated at $711,324 per year.
- Linn County will require a $112,000 rezoning application fee for the project – a f;at fee pf $40,000, plus $100 per megawatt of generation. IPL says it has legal concerns about that fee, according to the application. “As a required expense, IPL would expect to seek recovery of this fee,” the application says.
- Linn County’s new ordinance requires the completion of a host community agreement, or HCA, before zoning approval is granted. No deal on that agreement has yet been reached. The comparable HCA for the Duane Arnold nuclear restart plant established annual payments of $1.9 million annually, escalating 5% per year. In the IUC application, IPL says it will not agree to any HCA term that limits its ability to seek rate recovery from the commission.
Health and safety factors
- IPL says it will design and construct the plant to withstand various extreme weather events, including high winds, flooding, and “winter precipitation.”
- IPL will work with local first responders and the local fire department “to define appropriate response measures and methods” to address any potential safety concerns. That training will include an explanation of the site location and layout; identifying potential hazards; explaining fire suppression techniques; identifying evacuation protocols; identifying medical emergency protocols; and identifying communication protocols.
- The company says it will coordinate with local first responders and the local fire department for any requested recurring training.
Natural gas supply
- Fuel for the plant will be supplied exclusively with pipeline-quality natural gas. No backups or alternative fuel sources are mentioned in the application.
- A new natural gas supply line will be constructed for the plant. According to IPL, the gas supplier will be responsible for developing and constructing that lateral.
- Northern Natural Gas (NNG) was named as a primary potential natural gas supplier, via its interstate pipeline. Northern Border Pipeline (NBPL) was also identified as a viable alternative. IPL says it will choose the final supplier based on gas system optimization and lowest cost for consumers.
- The plant is expected to consume 6,500 to 9,800 thousand cubic feet per hour across all three turbines. Consumption is expected to be higher at lower ambient temperatures and when inlet evaporative coolers are being used.
