CEDAR RAPIDS – Alliant Energy’s Iowa energy company is pursuing another major wind investment that will help solidify Iowa’s national leadership in renewable energy.
“The customers and communities we serve will benefit from this cost effective clean energy,” said Doug Kopp, president of Alliant Energy’s Iowa energy company. “Our wind projects will help keep energy costs stable over the long-term for customers.”
Alliant Energy is seeking approval from the Iowa Utilities Board to add up to 500 megawatts of wind energy in Iowa. A decision is expected in early 2018.
The company received approval in 2016 for a similar expansion. The combined projects would represent a $1.8 billion investment and add up to 1,000 megawatts of new wind generation in Iowa. That’s enough to power up to 430,000 Iowa homes a year. As a result, wind is expected to be more than one-third of the company’s Iowa energy mix in 2020
“Iowa has seen tremendous benefits from the expansion of the wind energy industry in our state. We appreciate Alliant Energy continuing to invest in wind and other renewable energy sources to power our state,” said Bill Northey, Iowa Secretary of Agriculture.
Alliant Energy’s wind expansion projects are expected to create hundreds of construction and other jobs while generating tens of millions of dollars in additional property taxes and payments to landowners.
Financial information
· Alliant Energy’s Iowa energy company (Interstate Power and Light) filed an application for advance rate-making principles on August 3, 2017 (RPU-2017-0002). The key principles requested in the application include:
· Cost cap of $1,780/kilowatt, including allowance for funds used during construction (AFUDC) and transmission costs
· 11.0% return on common equity (ROE)
· 40 year depreciable life
· 10% AFUDC ROE used for modeling that allows for the higher of 10% or the 2016 test year base rate review result
· In service by end of 2020
Gov. Kim Reynolds thanked Alliant Energy Thursday after the company announced its plans for another major wind investment.
“Iowa is a renewable energy powerhouse because of companies like Alliant Energy plugging into our state.
“Today’s announcement, coupled with the company’s expansion proposal last year, represents a $1.8 billion investment in Iowa. I am thrilled Alliant wants to recharge our economy and help power growth.
“Our state has the sixth lowest energy costs in the nation, helping spark success for Iowa businesses, communities and families. If approved, today’s expansion proposal will help keep those rates low by adding up to a thousand megawatts of new wind generation in our state.
“More wind expansion projects also mean more jobs for Iowa workers and a boost for rural areas of the state where farmers lease their land for wind turbines. Local communities benefit too, getting significant property tax revenue to help build schools, repair bridges and hold the line on property taxes for businesses and families.
“Renewable energy is also a key economic development tool, helping attract major technology companies while keeping costs low for existing industries. Iowa’s dominance in the renewable energy sector is a selling point and distinguishes us from other industrialized states competing for projects.
“I congratulate Alliant Energy on this wind investment proposal and thank them for choosing to grow in Iowa.”
Alliant Energy is currently seeking a 10 percent to 12 percent rate increase.
