MidAmerican requests modification to 2,042 MW wind, 50 MW solar addition plans in Iowa
The Iowa Utilities Board late last month approved the Wind PRIME project proposed by MidAmerican Energy, raising the possibility of 2,042 MW of wind energy and 50 MW of solar energy additions for the company’s portfolio – and then set new ratemaking principles.
As a result, last week MidAmerican requested a modification to this plan, in a move it said would increase benefits to its customers. At issue were advance ratemaking principles approved by the Iowa Utilities Board for Wind PRIME – items MidAmerican labeled as attempting to fix something that was not broken, given the lower rates and benefits traditionally provided and the recent settlement reached on the initial case.
“This sudden change in approach is based on errors of law, errors of fact, and a regulatory approach that is contrary to the Iowa legislature’s express policy goals and contrary to the Board’s own Precedents,” MidAmerican wrote in its filing. “The principles proposed by the Board will likely accelerate MidAmerican’s next rate case and leave customers in an inferior position when that proceeding comes, notably by rejecting immediate and guaranteed energy adjustment clause relief of up to $100 million and rejecting guaranteed rate base reductions projected…The result is a set of principles that produces less rate base reductions for customers than the Settlement proposed by MidAmerican, the Office of Consumer Advocate (“OCA”) and the Iowa Business Energy Coalition (“IBEC”), by a projected $266 million.”
The settlement agreement had guaranteed both cost-effective generation for renewable projects involved and a resource evaluation study component to provide participants engagement opportunities with the changing sustainable landscape in the region. In theory, the projects would allow 100 percent renewable energy for Iowa customers annually through MidAmerican’s GreenAdvantage program and help it achieve net-zero greenhouse gas emissions by 2050, while providing an immediate electric rate decrease and long-term rate stability.
That settlement was filed jointly by the Office of Consumer Advocate, Iowa Business Energy Coalition and MidAmerican in the Wind PRIME docket, backed by more than 30 Iowa communities and companies in addition.
“The Board should reconsider its Order and return to the path it has followed for a dozen prior MidAmerican ratemaking principles dockets involving renewable generation. The most straightforward and sound way to do so is to approve the Settlement proposed by MidAmerican, the OCA and IBEC,” MidAmerican wrote.
From the time of submission, the IUB will have 30 days to respond.
