CEDAR RAPIDS, Iowa, April 17, 2018 /PRNewswire/ -- 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 megawatts 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 megawatts.
Cost cap: $1,780/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 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
About Alliant Energy 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 retail customers and natural gas service to 220,000 retail 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. These forward-looking statements can be identified because they describe future wind generation construction plans and costs and include words such as "plan" and "expect." 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: the inability to obtain all necessary permits; unanticipated construction issues, delays or expenditures; 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.