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8 May 2008 -- Kansas City Power & Light now expects its Iatan 2 coal-fired power plant to cost almost $2 billion, a 15 percent increase from two years ago and 47 percent higher than the original $1.3 billion price tag. The cost is estimated to range from $2,083/kW to $2,204/kW.
The utility said that based on the top end of the new estimate ranges, the combined increase in projected costs of the Iatan 1 environmental project and the new Iatan 2 unit is approximately 19 percent.
KCP&L owns around a 55 percent share of the new unit. In December 2006 it estimated its share of the construction cost would be $837 million to $914 million. In its most recent estimate, the utility said its share of the total projected cost has increased to a range of $994 million to $1.051 billion.
The in-service date for Iatan 2 continues to be the summer of 2010.
KCP&L said its 70 percent share of the projected cost of the Iatan 1 environmental project has increased to a range of $330 million to $350 million. This represents an increase of 33 percent compared to the top end of the previous range estimate of $255 million to $264 million as of December 2006. The in-service date for the Iatan 1 project is now expected to be February 2009 compared to the previous estimate of year-end 2008.
"Though we are seeing cost increases in the Iatan projects, they are in line with what the industry as a whole is experiencing," said Bill Downey, President and Chief Executive Officer of KCP&L.
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