The Gazette covers City Hall, now a flood-damaged icon on May's Island in the Cedar River

Alliant customers Coe and St. Luke’s seek federal disaster funds for their own steam plant

In Alliant Energy, City Hall, Downtown District, Floods on January 19, 2009 at 8:02 pm

Coe College and St. Luke’s Hospital are preparing to build their own operation to produce steam now that Alliant Energy has signaled it does not plan to rebuild its flood-damaged Sixth Street Generating Plant.

 

In a memo to City Hall, Coe and St. Luke’s said they will be seeking the City Council’s backing as the two entities pursue federal funds in the $4-million range from the U.S. Department of Commerce for a replacement steam system.

 

The memo, signed by Ted Townsend, president and CEO of St. Luke’s Hospital, and James Phifer, president of Coe College, states that proposed charges to customers that Alliant said were needed to rebuild the Sixth Street Generating Plant “were not economically viable” for either Coe or the hospital.

 

Using a temporary steam setup this winter, Coe is facing energy costs of $1 million more than they had been paying a year when the Alliant plant was making electricity and also steam for the downtown and near downtown, Coe’s Phifer says.

 

St. Luke’s and Coe are among a small group of larger users of the Alliant steam operation that includes Quaker and Cargill while a larger group of smaller users in and near downtown also have depended on the cheap steam from the Alliant plant.

 

The City Council has talked for a few months now about wanting to play a role in keeping a viable steam system in place downtown even if Alliant is not involved.

 

Both Coe and St. Luke’s say they are still open to a collective solution with other partners. At the same time, they need to get something more affordable in place by next winter, the entities’ executives say in their memo to the city.

 

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