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IPL in Iowa extends agreement to buy electricity

PALO, Iowa (AP) -- Interstate Power and Light Co. has been given the green light to keep buying electricity generated by a nuclear plant in eastern Iowa.

The Iowa Utilities Board voted unanimously Wednesday to allow IPL to amend and extend its long-term contract to purchase electricity from the Duane Arnold Energy Center in Palo. It is a verbal decision that becomes final after a formal order from the board.

The power agreement between IPL and NextEra Duane Arnold, LLC now extends by about 12 years. Electricity rates will remain the same until the new contract becomes effective in February 2014. It's unclear whether IPL will have a rate increase then.

IPL is the Iowa utility subsidiary of Alliant Energy.