Wisconsin Power and Light Co. said Thursday that it will waive acceptance of regulator-approved financial parameters for its proposed Fond du Lac County wind farm.
The Madison utility said that instead of using the approved order set under a 2005 Wisconsin law, which would have set parameters for the life of the facility, it will apply traditional rate-making procedures to the recovery of and return on its capital costs. Waiving the order means that the utility will have to file periodic rate cases with the PSC to determine the rate of recovery.
Under the Pubic Service Commission of Wisconsin’s order, the PSC set the authorized return on common equity at 10.5 percent. The utility has deemed that rate of return as too low.
“We have thoroughly evaluated the order and determined that fixing the return on equity at 10.5 percent is inadequate for the proposed 20-year wind generating facility,” said William Harvey, chairman, president and CEO of Alliant Energy (NYSE: LNT), Wisconsin Power’s Madison-based holding company.
The wind farm is expected to be operational by the end of 2008 at an estimated cost of $180 million. When complete, Cedar Ridge Wind Farm will generate between 60 and 99 megawatts of energy, or enough to power between 15,000 and 25,000 average residential homes.
The wind farm will consist of 41 wind turbines spread out over a 12.2-square mile area in the townships of Eden and Empire in Fond du Lac County.
The Business Journal of Milwaukee
17 May 2007
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