Alliant finds taxing problem with proposed power plant

Alliant Energy miscalculated the amount of tax revenues Cerro Gordo County will receive from a new power plant by at least one million dollars and is working to get a waiver from the state. Alliant spokesman John Ruff says the current plan would yield far less than what was projected.Company officials originally said the county could receive between one- and two-million dollars annually in tax revenues from the 500-megawatt natural gas-fired plant, but they did not factor in a two-percent cap that is in place for an increase or decrease in gas delivery taxes within a utility’s territory, which protects counties from having large surpluses one year and large deficits the next. It would yield just 16-thousand dollars. Ruff says Alliant believes the tax law is not fair to Cerro Gordo County, and has requested a waiver from the state.Ruff says no laws have to be changed, just a request for a waiver has to be filed with the Iowa Department of Revenue and Finance.Ruff thinks the department will grant the waiver, as he says they probably won’t argue with a company that wants to pay more taxes.The 400-million dollar power plant will be built south of Mason City and is expected to begin operation in 2004. It will provide power to 150-thousand homes.