Interstate Power and Light Co. (IPL), a subsidiary of Alliant Energy Co., has submitted to the Iowa Utilities Board (IUB) an application for ratemaking principles concerning the company's proposed construction of up to 200 MW of wind energy-generating facilities in Iowa.
Given the substantial capital investment required to complete the IPL wind project, the company is seeking the IUB's approval that the proposed ratemaking principles are reasonable prior to investing in the project. Ratemaking principles are fixed and define how the costs associated with building wind facilities will be recovered in utility rates throughout the life of the project, IPL explains.
The company plans to invest approximately $360 million to $440 million in wind by year-end 2010. IPL is requesting a 12.3% return on equity as part of the filing.
Upon completion of the site selection process, IPL expects to begin construction of the wind farms in 2009.