Feb 8 2008
Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation received a written decision today from the Iowa Utilities Board (IUB) regarding its request for ratemaking principles pertaining to the company's proposed construction of up to 200 megawatts of wind power farms in Iowa.
In its decision, the IUB approved the terms of a settlement agreement reached between IPL and the Iowa Office of Consumer Advocate on November 15, 2007 which includes a return on equity of 11.7 percent and a 25 year depreciation life for up to 200 megawatts of IPL wind development in Iowa. IPL expects to begin construction on a 200 megawatt wind power project at the Whispering Willow Warm Farm, located in Franklin County, Iowa, in 2009. The project is expected to be completed in 2010 at a cost of $400 million to $450 million dollars.
"The IUB's decision is a milestone for our company as we build IPL's first company-owned wind farm and move to position Iowa as a leader in renewable energy," states Tom Aller, president of IPL. "Wind energy, along with our other renewable generation resources, is an important component of our diversified energy portfolio. We are committed to expanding Iowa's renewable economic opportunities that create jobs for Iowans and help make Iowa a leader in renewable energy."
Upon completion of the IPL wind projects, approximately six percent of IPL's electricity will be generated from renewable energy sources through either purchased power agreements or company-owned renewable generation. More than 90 percent of IPL's renewable energy will be derived from wind power.
In September 2007, IPL filed an application with the IUB for ratemaking principles concerning the company's proposed construction of up to 200 megawatts of wind power farms in Iowa. Given the substantial capital investment required to complete the IPL wind project, the company sought the IUB's approval that the proposed ratemaking principles were 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.
In January 2007, IPL announced details of its 'Energy for a New Generation' plan. Energy efficiency initiatives and wind energy are key components of the long-term generation plan.