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Des Moines, Iowa (AP)

Utility cancels $1.8 billion Iowa power plant

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Interstate Power and Light is canceling plans for a $1.8 billion coal-fired power plant in Marshalltown, citing the economy and uncertainty over legislative and regulatory changes.

The utility made the announcement Thursday. Spokesman Ryan Steensland says the project won't be resurrected even if the economy improves.

Steensland says IPL will continue developing new energy sources, including construction of a wind farm in northern Iowa.

The power plant would have been capable of generating 630 megawatts - enough to power 472,000 homes and businesses.

(Copyright 2009 by The Associated Press. All Rights Reserved.)