MidAmerican Energy announces $3.6 billion investment in renewable energy
Project will increase companys wind energy equal to 85 percent of annual customer use
DES MOINES, Iowa - (April 14, 2016) - Today, MidAmerican Energy Company announced a major project that will provide a cleaner energy future for Iowa. The announcement is a giant step toward realizing the companys vision of 100 percent renewable energy for customers in the state.
MidAmerican Energy is filing a request with the Iowa Utilities Board to build Wind XI, a project that will add up to 2,000 megawatts of wind generation in Iowa. The proposed $3.6 billion project is the largest wind project MidAmerican Energy has ever undertaken, and its being done without asking for an increase in customer rates or financial assistance from the state to pay for it.
"We have a bold vision for our energy future," said Bill Fehrman, CEO and president of MidAmerican Energy. "We dont know of another U.S. energy provider that has staked out this 100 percent position. Our customers want more renewable energy, and we couldnt agree more. Once the project is complete, we will generate wind energy equal to 85 percent of our annual customer sales in Iowa, bringing us within striking distance of our 100 percent renewable vision."
The announcement came at a news conference attended by Gov. Terry Branstad and Debi Durham, director of the Iowa Economic Development Authority. The proposed $3.6 billion Wind XI plan is the largest economic development project in the states history. The development of additional renewable generation puts MidAmerican Energy and the state of Iowa in a strong position to comply with carbon emissions limits and other regulatory requirements.
Branstad said he is proud of MidAmerican Energys long-standing and ongoing commitment to clean energy, which has helped make Iowa a national leader in renewable energy.
"Wind XI puts Iowa on track to be the first state in the nation to generate more than 40 percent of its energy needs from wind power - far ahead of any other state. Today, Iowa is the only state to have crossed the 30 percent mark," Branstad said. "We welcome this opportunity to expand Iowas renewable energy and thank MidAmerican Energy for making this investment in our great state. Every wind turbine you see in Iowa means income for farmers, revenue for counties and jobs for Iowa families."
Director Durham added that wind power supports as many as 7,000 jobs in Iowa. She said the industrys growth, its cost competitiveness and job creation have been driven by the wind production tax credits.
"Investments of this scale are viable because federal production tax credits are at their highest level. It makes sense to leverage that benefit to solidify Iowas leadership in wind energy. Todays announcement continues to build Iowas legacy in the renewable energy space - and in a very real way, provides economic benefits to all Iowans," Durham said.
Fehrman detailed some of the many economic benefits Wind XI will generate in the state: approximately $12.5 million per year in property tax payments, $18 million per year in landowner payments, and $48 million per year in state and local expenditures associated with the project.
MidAmerican Energy has been able to build renewable energy over the past decade while keeping its customer rates among the lowest in the nation, Fehrman said. "Our progress would not have been possible without visionary state leaders and regulators and the tremendous support for renewable energy we have received from our customers, supplier partners and community leaders throughout the state of Iowa. We now have wind farms in operation or under construction in 23 Iowa counties and have partnered with more than 2,400 Iowa landowners - and we are prepared to do much more in pursuit of our 100 percent renewable vision."
MidAmerican Energy will work to finalize locations for its Wind XI development while the Iowa Utilities Board considers the project filing request. The company has asked the IUB to approve its rate-making principles by September so it can take full advantage of the extended production tax credit available for the construction of new wind projects. Without PTCs to help fund the cost of wind development, Iowans will pay more for building wind turbines in the future. The Wind XI project has been timed to allow MidAmerican Energy to make maximum use of available wind PTCs for the benefit of customers.
MidAmerican Energys Experience with Wind Generation
MidAmerican Energy completed its first wind farm in 2004. Since then, the energy company has built 3,450 megawatts of wind energy. The company has invested $6.6 billion over the last 12 years building wind projects in Iowa; with the construction of Wind XI, that figure will climb to more than $10 billion in overall wind investment, all with minimal impact to customer costs. The benefits of renewable energy include:
• Low power rates for customers. Unlike coal or natural gas, renewable energy has no fuel costs associated with it. Savings on fuel costs, along with production tax credits, have made wind an economical option that helps MidAmerican Energy keep prices stable and more affordable over the long term. MidAmerican Energys average retail prices in Iowa are seventh-lowest in the U.S. - approximately 38 percent below the national average.
• A cleaner environment. Wind farms produce clean, carbon-free energy that consumers and businesses want. The development of additional renewable generation will put MidAmerican Energy and the state of Iowa in a strong position to comply with carbon emissions limits and other regulatory requirements without placing the financial burden of compliance on customers.
• Stronger communities. Wind projects create construction jobs and permanent jobs in rural communities across the state. Additionally, wind farms provide millions of dollars annually in lease payments to landowners and property tax revenue that benefits schools and counties.
• A more vibrant economy. Iowa is already known as a leader in renewable energy. Additional development of renewable resources will spur further growth of the states wind and solar industries. The renewable energy landscape in Iowa has already attracted businesses like Facebook, Google and Microsoft - further development will continue to encourage businesses to locate and expand in Iowa.
About MidAmerican Energy Company
MidAmerican Energy Company provides electric service to 752,000 customers and natural gas service to 733,000 customers in Iowa, Illinois, Nebraska and South Dakota. It is headquartered in Des Moines, Iowa. Information about MidAmerican Energy is available on the companys website, Twitter, Facebook and YouTube pages, which can be accessed via www.midamericanenergy.com.
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