CEDAR RAPIDS, Iowa, Oct. 12, 2016 /PRNewswire/ -- Alliant Energy's Iowa utility has reached a settlement with customer groups related to its proposed New Wind Project. The project, if approved, will be up to 500 megawatts, significantly increasing the amount of economical, environmentally beneficial wind energy that Alliant Energy supplies to customers.
"The goal of this project is to bring additional low-cost, clean energy to our customers and the State of Iowa," said Doug Kopp, president of Alliant Energy's Iowa utility. "This settlement, which is the result of thoughtful discussions among the parties, is a significant step in achieving that goal."
Alliant Energy's Iowa utility is proposing to expand its Whispering Willow Wind Farm in Franklin County and is exploring opportunities to develop wind energy in other areas of the state. The company is pursuing the project now to maximize the value of renewable energy tax credits.
In addition to Alliant Energy, parties to the non-unanimous settlement include the Office of Consumer Advocate, a division of the Iowa Department of Justice; the Iowa Business Energy Coalition, and the Large Energy Group. The project, including the settlement, is subject to approval by the Iowa Utilities Board. A hearing is scheduled for October 26.
The New Wind Project, announced on July 27, calls for placing 250 megawatts of new wind in service in 2019 and the remaining 250 megawatts in service in 2020.
Alliant Energy Corporation's Iowa utility subsidiary (NYSE: LNT), Interstate Power and Light Company (IPL), utilizes the trade name of Alliant Energy. The Iowa utility is based in Cedar Rapids, Iowa, and provides electric service to 490,000 customers and natural gas service to 225,000 customers. The employees of Alliant Energy focus on delivering the energy solutions and exceptional service their customers and communities expect – safely, efficiently and responsibly. Alliant Energy Corporation is traded on the New York Stock Exchange under the symbol LNT and is a component of the S&P 500. For more information, visit alliantenergy.com.
This press release includes forward-looking statements, including expected in-service dates and terms of the settlement. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: state regulatory actions which delay, prevent or alter the settlement terms; unsuccessful negotiations for the purchase of equipment and real estate to develop wind farms; increased costs of equipment, commodities used in equipment, and real estate; unanticipated construction issues, delays or expenditures; federal regulatory actions which impact Alliant Energy's ability to utilize tax credits; failure of equipment and technology to perform as expected; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of Alliant Energy's plans; political conditions in Alliant Energy's service territories; changes to Alliant Energy's access to capital markets; and economic conditions in Alliant Energy's service territory. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and Interstate Power and Light Company undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.
- Size cap: up to 500 megawatts
- Cost cap: $1,830/kW, including allowance for funds used during construction (AFUDC) and transmission costs
- Return on common equity: 11%
- 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 the 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 cost recovery, if applicable, amortized over 10 years
- Defer double leverage discussion to future rate case
- Withdrawal of renewable energy rider proposal
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SOURCE Alliant Energy Corporation