US utility Alliant Energy Corp (NYSE:LNT) is seeking regulatory approval for an expansion project that will add up to 500 MW of wind power capacity in the state of Iowa.
The company’s Iowa subsidiary Interstate Power and Light Company (IPL) has filed an application for advance rate-making principles with the Iowa Utilities Board, Alliant Energy said on Thursday. As part of the plan, it has suggested a cost cap of USD 1,780 (1,499) per kW, including allowance for funds used during construction (AFUDC) and transmission costs, expecting an 11% return on common equity (ROE). The new capacity is to be commissioned by the end of 2020.
The regulator is expected to issue a decision at the start of 2018.
At the end of 2016, Alliant Energy received approval for a similar plan to add up to 500 MW of wind capacity in Iowa through 2020. Together with the new proposal, the total investment is seen to reach USD 1.8 billion and make wind account for over one-third of the firm's power mix in Iowa by 2020. The utility estimates that the 1 GW of wind capacity will produce enough to supply up to 430,000 homes in Iowa.
"Our wind projects will help keep energy costs stable over the long-term for customers," said president Doug Kopp.
(USD 1.0 = EUR 0.842)
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