Power company to build hydro plant at Red Rock

DES MOINES (AP) ? A power company is moving ahead with planning and development for a hydroelectric generating plant at Red Rock Reservoir in south central Iowa.

Missouri River Energy Services of Sioux Falls, S.D., said Thursday it will construct and operate the plant, which will be financed and owned by Western Minnesota Municipal Power Agency. Construction is slated to begin in 2013, with the plant operational in 2016.

Estimated cost of the generating facility is $220 million, but backers said the project could generate up to $250 million in economic activity for a four-county region.

During construction from 2013 to 2015, the project will generate an average of 448 jobs to the area, with a maximum of 732 jobs in 2014.

The dam on the Des Moines River that created the reservoir is about three miles from Pella and is operated by the Army Corps of Engineers.The license for development of the hydroelectric generating facility was granted by the Federal Energy Regulatory Commission. The license was granted to a subsidiary of Nelson Energy LLC.

Nelson Energy has more than 130 megawatts of hydropower generating facilities under various stages of development throughout the country.

The Federal Energy Regulatory Commission granted a license earlier this year. Officials say the design output will be 36 megawatts, enough to power about 1,800 homes. The plant can generate up to 55 megawatts when the water is high.

Once complete, it will be the second largest hydroelectric plant in Iowa. The largest is near Keokuk on the Mississippi River.

Missouri River Energy Services is a not-for-profit joint action agency that provides long-term power supply to about 60 municipally owned electric distribution utilities in Iowa, Minnesota, North Dakota and South Dakota. Pella recently became a member of MRES and announced plans to retire its steam generating facility in conjunction with purchasing power from MRES.