Alliant Energy‘s Iowa energy company received approval to increase its wind expansion program from the Iowa Utilities Board. By 2020, the company now plans to add 1,000 MW of new wind energy in Iowa – enough clean energy to power 430,000 Iowa homes.
In Iowa, the company plans to have invested $1.8 billion in cost-competitive renewable energy by the end of 2020. The new wind farms will create hundreds of construction and other jobs while generating tens of millions of dollars in additional property taxes to communities and payments to landowners.
“Our wind energy initiatives help keep rates competitive, enhance our environmental stewardship and drive economic growth in our communities,” said Doug Kopp, President of Alliant Energy’s Iowa energy company. “Wind energy is a major part of our transition to a clean energy future.”
This spring, crews began construction on the first of several wind farms, starting with Upland Prairie Wind Farm, located in Clay and Dickinson counties in northwest Iowa. Later this year, construction is expected to start at English Farms Wind Farm, located in Poweshiek County in central Iowa.
Through this expansion, combined with existing wind farms and market purchases, the company expects wind to be approximately one-third of its Iowa total capacity by the end of 2020.
Alliant Energy’s Iowa energy company (Interstate Power and Light) filed an application for advance ratemaking principles on August 3, 2017 (RPU-2017-0002). The company continues to review the written decision order from the IUB.
Iowa Utilities Board order terms:
- The ratemaking principles apply to any new wind facility constructed as part of IPL’s New Wind Project that qualifies for 100% of the federal Production Tax Credits, regardless of its location in Iowa, up to 500 MW.
- Cost cap: $1,780/kw, 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 9.6%
- 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 IPL’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