The Iowa Utilities Board has issued an order approving MidAmerican Energy Company’s proposed “Wind XII” project that will allow the company to build up to 591 MW of new wind electric generation in Iowa. MidAmerican estimated the project construction cost in its filing at $922 million.
The order states that MidAmerican has satisfied conditions in Iowa Code and is, therefore, eligible for advance ratemaking principles associated with the project. In the settlement agreement, the ratemaking principles approved establish a cost cap of $1.56 million per MW, including allowance for funds used during construction (AFUDC).
The agreement also provides an allowed return on the common equity portion of Wind XII that will be included in Iowa electric rate base at 11%.
MidAmerican filed its Wind XII request for advance ratemaking principles with the Board on May 30, 2018, in Docket No. RPU-2018-0003.
The completed wind project will give the utility company more than 6,600 MW of renewable generation in Iowa. MidAmerican said in its filing that Wind XII will, in 2021, allow the company to generate enough renewable energy to cover 100% of its customers’ annual energy needs.