Customers and communities to benefit from low-cost, renewable energy
CEDAR RAPIDS, Iowa – October 27, 2016 – Alliant Energy’s Iowa utility is moving forward with its New Wind Project, which will bring up to 500 megawatts of new wind generation to Iowa. That’s enough to power 215,000 homes.
Alliant Energy is currently working with landowners in Franklin County near its existing Whispering Willow Wind Farm, as well as exploring opportunities to develop in other areas of the state. Construction could start as soon as next year. Alliant Energy expects to place 250 megawatts in service in 2019 and the rest in 2020.
“The New Wind Project will benefit our customers, our communities and the state,” said Doug Kopp, president of Alliant Energy’s Iowa utility. “The wind turbines will generate clean, cost-effective energy for customers. They also create tax revenue for communities, and bring construction jobs and economic growth to the state, making this a win-win project.”
On October 25, the Iowa Utilities Board issued a final order regarding the New Wind Project. The order approves, with limited modifications, the settlement between Alliant Energy and customer groups, which was filed on October 12, 2016.
The New Wind Project will help the company economically meet its customers’ energy need, by maximizing the value of renewable energy tax credits and taking advantage of favorable wind turbine pricing.
“We want to thank our community partners in Franklin County. We also want to thank the Iowa Utilities Board for its work and the organizations that came together to advance this application toward approval. They include the Office of Consumer Advocate, the Iowa Business Energy Coalition, the Large Energy Group, the Iowa Environmental Council and the Environmental Law and Policy Center,” said Kopp. “Through our work together, we are helping to advance clean energy while providing low-cost, reliable energy solutions to our customers.”
More information is available at alliantenergy.com/whisperingwillow.
Iowa Utilities Board order terms:
- The ratemaking principles apply to any new wind facility constructed as part of Alliant Energy’s Iowa utility’s New Wind Project that qualifies for 100% of the federal Production Tax Credits, regardless of its location in Iowa, up to 500 megawatts.
- Cost cap: $1,830/kilowatt, including allowance for funds used during construction (AFUDC) and transmission costs
- Return on common equity: 11%, with the exception of certain transmission facilities classified as intangible assets, which shall earn the rate of return on equity authorized by the Iowa Utilities Board in a future rate case
- Return on common equity used in calculating the AFUDC rate to be the higher of the outcome of the next rate case or 10%
- Depreciable life of 40 years, unless changed as a result of a contested case before the Iowa Utilities Board
- Alliant Energy’s Iowa customers shall be entitled to the full value of any environmental attributes, beyond those needed for compliance with applicable regulatory requirements, associated with investment included in Alliant Energy’s Iowa jurisdictional rate base
- Alliant Energy is permitted to include in Iowa rates the actual cost of the wind project up to the cost cap without need to establish prudence, but required to establish the prudence of any cost in excess of the cost cap
- Cancellation costs: recovery of prudently incurred and unreimbursed costs, if applicable, amortized over 10 years