Energy Department closes $5.1 billion loan for Alliant's gas plants and batteries in Iowa and Wisconsin

The package is two loans from the Federal Financing Bank, guaranteed by DOE's Office of Energy Dominance Financing. Interstate Power and Light, which serves Iowa, has access to as much as $3.5 billion and Wisconsin Power and Light to as much as $1.626 billion, according to Alliant's Oct. 28 filing with securities regulators, as reported by POWER magazine. Each draw is priced at 37.5 basis points over the Treasury rate, and the loans mature May 15, 2056.

DOE's project summary lists about 1,500 MW of new gas generation, 240 MW of added capacity at existing units, 1,000 MW of batteries and an LNG storage facility holding 2 billion cubic feet. Alliant's own list puts new gas at 1.6 GW. Neither says which plants will get the money. Projects Alliant has named as candidates include the 720-MW Bobcat Energy Center in Marshalltown, where construction activities have started, Morgan Valley Energy Center in Linn County, also 720 MW, the 1.2-GW Riverhawk plant, a battery project in Lansing and an LNG storage facility under construction in Rock County, Wisconsin.

The money is paid as reimbursement. Each utility can draw once a quarter, for no more than 80% of qualifying costs it has already paid, subject to DOE environmental reviews and state regulatory approvals, until Sept. 15, 2033. DOE counts 1,630 jobs during construction and 46 afterward. Alliant puts customer savings at as much as $1.2 billion across the loans' 30-year term.

Alliant expects electricity demand to grow about 60% by 2031 under signed service agreements, with data centers for Google, QTS and Meta under construction, POWER reported. Alliant's project pages say the new gas plants are not intended for data center load. Linn County supervisors recently denied Alliant's rezoning request for Morgan Valley, a decision the Iowa Utilities Commission could overrule, KWQC reported.