Settlement of MidAmerican’s Wind XI project sets rate of return at 11 percent
Environmental groups this week hailed a proposed rate agreement among several groups representing consumers, large users and business and MidAmerican Energy that sets many of the details of the $3.6 billion, 2,000-megawatt Wind XI project. The installation is expected to be complete by the end of 2019, when wind energy will be producing more than half of the utility’s power.
The agreement, which still must be approved by the Iowa Utilities Board, calls for:
- A return on common equity of 11 percent.
- A cost cap of $1.792 million per megawatt.
- A depreciation period of 40 years.
“We are pleased to see MidAmerican come to agreement with the Office of Consumer Advocate, Facebook, Microsoft, Google and the Iowa Business Energy Coalition,” Nathaniel Baer, energy program director of the Iowa Environmental Council, said in a statement. “We applaud this showing of clean energy leadership, and look forward to continuing to work with the involved parties to advance affordable, reliable renewable energy in Iowa.”
“This settlement continues the Iowa tradition of adding significant renewable energy in a manner that provides benefits to Iowa customers, the Iowa economy and the environment,” added Joshua Mandelbaum, staff attorney with the Environmental Law & Policy Center.
Read the environmental groups’ news release.
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