Study proposes closure of coal-fired plant

AMES, Iowa - Oct 11 (The Associated Press)

A consultant has concluded that this city's most cost-effective long-term solution to providing electricity to residents is to shut down its coal-fired power plant within the next decade.

Sargent and Lundy Consulting Group of Chicago completed its study in August and will submit its findings later this month to the Ames City Council and a citizen's advisory group.

A copy of the study's summary recommends that city leaders develop and implement a plan in the next 18 to 24 months outlining how the city will provide electricity for the next 20 years.

"There is not a lot in (the study) that surprises me," said Merlin Hove, the city's electric services department director. "It is frustrating for some people because they want to know the final answer, and all the report says is that we need to get busy doing some things."

The study estimates that more than $19 million in improvements will be needed to maintain the power plant's two generators over the next 10 years. An additional $60 million may be needed if proposed federal emission standards become a requirement.

The report suggests it would be cheaper in the long run for the city to spend an estimated $7.5 million to demolish and decommission the power plant and buy power elsewhere.

"I don't think any one conclusion is justified at this point," City Manager Steve Schainker said. "The value of this is not what (the consultant) perceives, but the array of options we need to explore."

The plan suggests the city study several scenarios, including setting a firm date for shutting down the power plant.

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Information from: The Tribune, http://www.amestrib.com