The Iowa Utilities Board has issued an order approving MidAmerican Energy Co.’s proposed Wind XII project.
Through Wind XII, MidAmerican plans to build up to 591 MW of new wind electric generation in Iowa. The company estimates the project construction cost at $922 million.
The order states that MidAmerican has satisfied conditions in Iowa Code and is therefore eligible for advance ratemaking principles associated with the project. In the settlement agreement, the ratemaking principles approved establish a cost cap of $1.56 million per MW, including allowance for funds used during construction. The agreement also provides an allowed return on the common equity portion of Wind XII that will be included in Iowa’s electric rate base at 11%.
MidAmerican filed its Wind XII request for advance ratemaking principles with the board on May 30. The completed wind project will give the utility company more than 6,600 MW of renewable generation in Iowa. Over the past three years, MidAmerican has moved forward with its previously announced Wind XI and repowering projects, which, when combined with Wind XII, will provide customers with 100% renewable energy on an annual basis, according to the company.