MidAmerican Energy

Press Release: Environmental Groups Push MidAmerican Energy to Commit to a Comprehensive Clean Energy Transition

FOR IMMEDIATE RELEASE

Environmental Groups Push MidAmerican Energy to Commit to a Comprehensive Clean Energy Transition

Call for Wind XII Approval to Require Coal Retirements

 

Des Moines, Iowa — The Iowa Environmental Council and Environmental Law & Policy Center filed testimony with the Iowa Utilities Board (IUB) in MidAmerican Energy’s Wind XII docket. Kerri Johannsen, Energy Program Director with the Iowa Environmental Council, provided the testimony on behalf of both groups, calling for approval of the additional wind to include requirements for equivalent coal capacity retirements. The groups also strongly recommended MidAmerican outline a process for a comprehensive clean energy transition that includes wind, solar, storage and demand side resources such as energy efficiency and demand response.

MidAmerican is touting Wind XII as the final project in the 100% Renewable Vision the company announced in 2016. However, MidAmerican has not announced a single coal plant retirement since setting this benchmark. The company owns and operates five coal plants in Iowa with a total of 3,740 MW of nameplate capacity and is majority owner of the 725 MW Ottumwa Generating Station.

According to 2016 data from the Energy Information Administration, this level of capacity puts MidAmerican’s coal fleet in the top 20 largest fleets of any utility in the country — at 19 — out of the 164 companies that own at least 100MW of coal generation. Construction of new coal plants is not cost-effective and utilities around the U.S. are announcing coal retirements on an almost daily basis. By betting on coal, MidAmerican will only climb in this undesirable ranking.

“The state of Iowa and MidAmerican’s wind energy leadership is commendable,” said Josh Mandelbaum, Senior Attorney at the Environmental Law & Policy Center. “However, a comprehensive clean energy vision requires a plan for retiring dirty coal plants and replacing them with a diverse mix of renewable resources including wind, solar, storage, and energy efficiency.”

MidAmerican filed its proposal for Wind XII on May 30, 2018. Wind XII is a 591 MW, $922 million project that would be completed by late 2020.

Wind generation provides significant benefits including hedging risks from fuel price volatility and geo-political uncertainty, environmental benefits, and reducing dependence on fossil fuels.  However, as Johannsen points out, “[m]any benefits MidAmerican claims for Wind XII are unlikely to occur unless coupled with retirement of coal capacity.”

Utilities around the country have begun proposing comprehensive clean energy transition plans. Johannsen’s testimony summarizes several examples of utilities retiring coal plants and replacing them with a mix of wind, solar, storage, and energy efficiency including Xcel Energy in Colorado, Consumers Energy in Michigan, and MidAmerican’s sister Berkshire Hathaway subsidiaries, NV Energy and PacifiCorp.

Iowa’s wind leadership helped the state attract companies such as Google, Microsoft, and Facebook that wanted to invest in a state that offered affordable, renewable energy for their power needs. Says Johannsen, “To remain competitive, Iowa utilities must not settle for the status quo, but instead continue to show leadership in clean energy innovation or the state will fall behind other emerging leaders.”

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Energy News Network: Iowa Utilities Unveil Scaled Back Efficiency Plans Under New State Law

Iowa Utilities Unveil Scaled Back Efficiency Plans Under New State

By Karen Uhlenhuth

Iowans will lose access to home energy audits, insulation rebates, and light bulb discounts under new five-year efficiency plans proposed by utilities.

The plans, filed with the Iowa Utilities Board before a Monday deadline, are the first since a new state law capped the amount of money that utilities spend on the programs. The result is “a huge step back” for energy efficiency in the state, according to clean energy advocates.

MidAmerican Energy and Interstate Power & Light, an Alliant Energy subsidiary, emphasized the bill reductions most customers will see under the plans, but critics predicted those cuts will eventually be absorbed by the cost of new investments to meet growing energy use in the state.

“These plans are significantly smaller and leave significant energy-efficiency savings on the table, even more than in the past,” said Josh Mandelbaum, an attorney for the Environmental Law & Policy Center in Des Moines.

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Des Moines Register: Rate Agreement Moves MidAmerican Closer to $3.6 Billion Wind Project

 

By Donnelle Eller

MidAmerican Energy, environmental groups and large tech companies reached a rate agreement over the Des Moines-based utility’s plan to invest $3.6 billion in wind energy.

The settlement, which goes to the Iowa Utilities Board for consideration, lowers from 11.5 percent to 11 percent the return MidAmerican would receive from its investment in 2,000 megawatts of wind energy generation.

Among other changes in the settlement, MidAmerican Energy agreed to not sell to other states, utilities or businesses renewable energy credits from the large project when customers choose to claim green energy use.

That’s important to companies like Google, Microsoft and Facebook, all of which have large data centers in Iowa that are large energy users. Environmentalists have pushed big social media, software and internet search companies to reduce their reliance on power generated from fossil fuels.

“We are pleased that all of MidAmerican’s customers will benefit from this settlement,” said Doug Gross, a Des Moines attorney representing Google, Facebook and Microsoft. “We look forward to continuing to work with MidAmerican to ensure that customers have a voice in decisions that affect Iowa’s energy future.”

The project, MidAmerican said, “will bring significant environmental and economic benefits to our customers and the state of Iowa without the need to ask for a rate increase.”

Iowa Environmental Council and Environmental Law & Policy Center, also involved in settlement discussions, applauded the agreement as well.

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Midwest Energy News: Biggest Wind Project in Iowa History Back on Track

By Karen Uhlenhuth, Midwest Energy News

The largest proposed wind energy project in Iowa’s history appears to be back on track this week after a tense period when it seemed the deal might fall apart over differences between a utility and large energy users.

On Tuesday, MidAmerican Energy — the utility pursuing the $3.6 billion Wind XI project — reached an accord with several major customers that objected to the plan, including tech giants Google, Microsoft and Facebook and a group of large industrial customers known as the Iowa Business Energy Coalition (IBEC).

MidAmerican President Bill Fehrman said in testimony filed with state regulators that, based on the companies’ objections, he found it “hard to conclude that the Data Centers and IBEC want MidAmerican to develop Wind XI.”

The large customers testified about a range of concerns with the proposal, including MidAmerican’s approach to modeling, the amount of power the utility projected its turbines would produce, the return on equity that MidAmerican was requesting and the treatment of environmental credits resulting from the production of renewable energy.

In the settlement, the customers and MidAmerican agreed to an 11 percent return on equity, slightly less than the 11.5 percent that MidAmerican initially had requested. The customers wanted a 9.5 percent return. And the two sides agreed to assign the environmental benefits of Wind XI to the various classes of customers, based on each class’ kilowatt-hour sales.

Like MidAmerican, the Iowa Environmental Council had expressed concerns that the changes proposed by the industrial customers and data centers could prove fatal to the project.

In a blog post late last month, the council’s energy program director, Nathaniel Baer, wrote: “While no party appears to have explicitly opposed Wind XI, the changes recommended by several interveners, including the data centers and IBEC, could cause Wind XI to be smaller or, at worst, not to be built at all.”

In written testimony, Fehrman said he was surprised that large customers challenged the project, given that they never expressed opinions in any of the 10 previous wind projects developed by MidAmerican.

The objections also appeared to fly in the face of the companies’ history of supporting renewable energy. All three companies have made significant investments in renewable power, including in Iowa, and have indicated they eventually intend to power all of their operations with renewable electricity.

In 2014, Google signed a deal with MidAmerican to purchase 407 megawatts of wind energy to power a new data center in Iowa. A year ago, Facebook announced that it was expanding with a third data center in Altoona, Iowa. The company cited several reasons for the decision, including access to wind energy.

In April, Iowa Gov. Terry Branstad attended the announcement of the 2,000-MW Wind XI installation, which MidAmerican claims is the biggest economic development project in the state’s history.

Wind XI would increase MidAmerican’s substantial wind portfolio to the point that wind would provide energy equal to 85 percent of the electricity sold by the company in a year’s time.

A final decision from state regulators is expected in September. MidAmerican has said it would need to start construction on the project before Dec. 31 in order to receive the maximum amount of federal production tax credits. The credit will gradually decrease over several years, beginning on Jan. 1, 2017.

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Press Release: Clean Energy Advocates Applaud MidAmerican Wind Announcement

FOR IMMEDIATE RELEASE

April 14, 2016

Contact: David Jakubiak

Clean Energy Advocates Applaud MidAmerican Wind Announcement
ELPC, Iowa Environmental Council Commend MidAmerican Energy Plan for New Wind 

DES MOINES – Two of Iowa’s leading environmental policy groups have expressed strong support for a proposal announced by MidAmerican Energy on Thursday that would add 2,000 megawatts (MW) of wind energy to Iowa’s energy mix. The proposed project, Wind XI, would be the single largest wind energy project in Iowa to date.

“Wind XI can put Iowa above 40 percent wind energy before 2020, and sets the state on course to reach 10,000 MW of installed wind by 2020,” said Nathaniel Baer, energy program director at the Iowa Environmental Council (IEC). “We applaud this strong showing of clean energy leadership, and welcome the opportunities this proposal presents to strengthen Iowa’s economy, communities and environment.”

MidAmerican will work to finalize project sites, which would be spread across the utility’s service area, while the Iowa Utilities Board considers the project filing request.

“MidAmerican’s announcement reaffirms that wind energy is affordable, reliable, and strengthens our energy independence,” said Josh Mandelbaum, staff attorney at the Environmental Law & Policy Center (ELPC). “This project further cements Iowa’s position as a national renewable energy leader, and MidAmerican as a wind energy leader among utilities.”

The recent extension of the federal wind energy production tax credit was as a significant factor in MidAmerican’s timing of this project. By moving quickly to develop wind projects, MidAmerican can capture the full value of this important tax incentive. Both the Council and ELPC supported long-term extensions of the federal PTC.

“This is exactly the kind of wind energy project we hoped would be announced with the extension of the federal PTC,” said Baer.

At the end of 2015, Iowa had 6,212 MW of installed wind, which accounted for 31.3 percent of Iowa’s electricity mix – more than any other state in the country according to data released by the American Wind Energy Association. Iowa is expected to have up to 7,000 MW of wind installed before Wind XI is complete per other wind projects currently under development.

Wind XI will provide significant economic and environmental benefits. Iowa wind energy already provides between 6,000 and 7,000 direct jobs, and supports approximately 75 companies in the wind supply chain. Wind energy also provides over $17M annually in land lease payments to rural landowners, generates significant property tax revenue for counties, and attracts additional business to the state. Wind energy is also the lowest cost new source of electricity generation available in Iowa.

 

ELPC’s Josh Mandelbaum Tells Midwest Energy News Why No News is Good News for Iowa Net Metering

Nearly two years into an examination of the state’s policies towards distributed generation, the Iowa Utilities Board has signaled that it sees no reason at this point to make any major changes.

And no news, in this case, is good news, in the views of some of the state’s clean-energy promoters.

“I think it’s a positive order and potentially a model for thoughtful, data-driven distributed generation policy,” said Josh Mandelbaum, a staff attorney in Des Moines for the Environmental Law & Policy Center.

Spokespeople for the state’s major utilities could not be reached for comment.

The board on Oct. 30 filed a document in which it said, “The Board declines to adopt a policy statement with respect to renewable distributed generation.” The three board members also indicated they would be open to more information about the impact of renewables on the state’s power system.

To that end, they invited the state’s municipal utilities and rural electric cooperatives to submit plans for pilot projects investigating various aspects of distributed generation and net metering. The board required the state’s two major investor-owned utilities – MidAmerican Energy and Alliant Energy – to provide pilot proposals by the end of January.

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