December 6 (Renewables Now) - US electricity and natural gas utility MidAmerican Energy Co, part of Warren Buffett's Berkshire Hathaway Inc (NYSE:BRK.A), has received the green light from Iowa regulators for its 591-MW Wind XII project.
The Iowa Utilities Board issued an order approving the USD-922-million (EUR 814m) scheme on Tuesday. The ruling, stating that all conditions in Iowa Code have been met, makes MidAmerican eligible for advance ratemaking principles for the scheme. One of those principles, set during a settlement process, envisages a cost cap of USD 1.56 million per MW, including allowance for funds used during construction (AFUDC). The settlement agreement also provides an allowed return on the common equity portion of the project that will be included in Iowa electric rate base at 11%.
MidAmerican previously said it plans to complete the Wind XII project at the end of 2020. The plant, together with its 2-GW Wind XI complex that will be commissioned at end-2019, will help it produce renewables electricity equal to the entire consumption of the clients within its Iowa service area on an annual basis.
(USD 1.0 = EUR 0.883)