Alliant Energy subsidiary Interstate Power and Light Co. announced an 11-year deal Wednesday to purchase power from the Duane Arnold nuclear plant.
In a release, the utility said the contract will take effect in 2014, and the NextEra plant was selected following a competitive bidding process. The Iowa Utilities Board has already issued an order allowing the contract to move forward.
Quoting an Alliant spokesman, the Cedar Rapids Gazette reported that the plant will provide 431 megawatts at a rate about 30 percent lower than under the current contract.
The General Electric boiling water reactor near Cedar Rapids was first licensed in 1974 and generates 615 megawatts, according to NextEra.