CEDAR RAPIDS, Iowa, Oct. 27, 2016 /PRNewswire/ -- 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 IPL'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 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
Alliant Energy Corporation's Iowa utility subsidiary, 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 statements related to the New Wind Project such as size, timing of construction and in-service dates. 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; 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.
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SOURCE Alliant Energy Corporation