Customer groups seek to cap ratepayer costs for Alliant power plant

Utility customer groups said Tuesday that they want to place a cap on construction costs for building a new power plant in Beloit.

A cap could result in savings of up to $70 million if the project ends up costing Alliant Energy Corp. more to build than the $700 million it has forecast.

In a filing with the state Public Service Commission, the Wisconsin Industrial Energy Group asked the commission to put what it calls a "hard cap" on construction costs, so that ratepayers of Alliant's Wisconsin Power and Light Co. utility won't have to pay more than the $700 million for the project.

With other power plants and transmission line projects, the commission typically has allowed utilities to recoup certain cost overruns in the range of 5% to 10% of the projected cost.

"Now is the best opportunity we will have to minimize project costs to the benefit and protection of ratepayers," WIEG, a coalition of manufacturers, said in its filing...

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