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Public utilities

Iowa Utilities Board Rehearing on MidAmerican Energy Company's Wind Prime Project

Strategic Insights

— 2 min read

The Iowa Utilities Board held a rehearing on October 10, 2023, on MidAmerican Energy Company's Wind Prime project, which involves a mix of up to 2,042 megawatts (MW) of new wind generation and up to 50 MW of new solar generation. The project aims to provide renewable energy to customers in Iowa, with Google and Microsoft being among the largest electric service customers within the state. The companies have been actively promoting sustainability efforts, including supporting renewable energy development in Iowa and globally.

Key Takeaways:

  • Google and Microsoft, along with Meta Platforms, Inc., have filed a brief in support of their opposition to the Rehearing Settlement, which was proposed by MidAmerican, the Office of Consumer Advocate, and the Environmental Intervenors.
  • The companies argue that the Rehearing Settlement does not address their concerns regarding the eligibility for advance ratemaking principles, particularly the consideration of and comparison to other feasible alternative sources of supply.
  • The Board initially rejected the Settlement, finding that MidAmerican had not demonstrated either a traditional showing of "need" under the statute or that the project was reasonable when compared to other feasible alternatives.
  • The Board reversed its previous decision, finding the Wind Prime project eligible for advance ratemaking principles based on MidAmerican's assertion that it could be built at "no net cost" to customers.
  • The companies have expressed concern about the revenue sharing principles and the Consumer Protection Plan (CPP), which they believe may not provide adequate protection for customers.
  • The Rehearing Settlement proposes a higher cost cap, a return on equity (ROE) of 10.75 percent, and changes to the Resource Evaluation Study principle, among other modifications.
  • The companies are seeking clarification and reconsideration of certain aspects of the Final Order, including the requirement for MidAmerican to provide detailed information on future applications for advance ratemaking principles.

Statistics:

  • The Wind Prime project involves a mix of up to 2,042 MW of new wind generation and up to 50 MW of new solar generation.
  • The project aims to provide renewable energy to customers in Iowa.
  • Google and Microsoft have been actively promoting sustainability efforts, including supporting renewable energy development in Iowa and globally.
  • MidAmerican has proposed a return on equity (ROE) of 10.75 percent, up from 11 percent proposed in the Original Settlement.

Sources:

  • STATE OF IOWA BEFORE THE IOWA UTILITIES BOARD: IN RE: : : DOCKET NO. RPU-2022-0001 MIDAMERICAN ENERGY COMPANY: : POST-REHEARING BRIEF
  • Order Granting Motions for Reconsideration with Dissenting Opinion ("Order Granting Reconsideration")
  • Final Decision and Order in the Wind Prime project (RPU-2022-0001)
  • Rehearing Settlement (RPU-2022-0001)

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