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After initial denial, Iowa Utilities Board reconsiders preapproval of Duane Arnold solar projects

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Energy transmission traces close to the Duane Arnold Power Middle in Palo in August 2022. (Nick Rohlman/The Gazette)

The Iowa Utilities Board has determined to partially rethink an utility from Interstate Energy and Gentle Firm – Alliant Power’s Iowa subsidiary – that features Duane Arnold Photo voltaic initiatives in Linn County, based on an order filed Thursday.

Interstate Energy and Gentle’s utility initially requested for IUB preapproval of 400 megawatts of photo voltaic and 75 megawatts of battery storage in Iowa, together with the Duane Arnold photo voltaic initiatives, together with their related prices and charges. If permitted, these charges would final the lifetime of the services being constructed — in order that they have been rigorously thought of to make the initiatives extra inexpensive for utilities and prospects.

The IUB denied that utility final month, saying that Interstate Energy and Gentle (IPL) didn’t adequately contemplate different and probably more practical technology choices in its utility, as required by Iowa Code.

The denial makes it much less probably that Alliant will find yourself proudly owning the Duane Arnold Photo voltaic services, a consultant of the Iowa Environmental Council beforehand advised The Gazette. Whereas Florida-based NextEra will develop 200-megawatt photo voltaic initiatives close to Palo, Alliant submitted a proposal to IUB to buy the massive photo voltaic farm from NextEra and additional develop it into the largest- the state’s photo voltaic and battery storage facility.

The IPL filed a movement to the IUB on Nov. 29 for the reconsideration of its utility and attainable rehearing.

In line with Thursday’s order, IPL stated IUB ignored the “plain language of the Iowa Code’s statutory requirement,” which establishes charge enchancment rules to “encourage funding within the utility’s new technology. “

IPL additionally acknowledged that its selections have been primarily based on the Iowa Clear Power Blueprint and extra analyses, which “overwhelmingly chosen photo voltaic as the most effective different” for assembly capability wants. The IUB beforehand stated the blueprint didn’t adequately contemplate different extra affordable power sources.

As well as, IPL stated it’s conducting extra evaluation of 200 megawatts of proposed photo voltaic technology – which doesn’t embody the proposed megawatts on the Duane Arnold facility in Palo. The brand new proof might result in decrease total prices, which might assist its proposal meet IUB necessities, the IPL stated.

“IPL contends that the Board’s order places the development of initiatives in danger…,” learn Thursday’s order. “The Board’s improper customary, based on the IPL, required the IPL to take a number of actions that weren’t mandated by legislation.”

In its Thursday order, the IUB stated it discovered no grounds for a whole reversal of its determination.

It additionally factors to an absence of consideration from IPL concerning different sources of power provide, similar to energy buy agreements – the place mills promote electrical energy to patrons. The board additionally stated it adopted state requirements in its ruling.

Even with extra proof for 200 megawatts of photo voltaic technology, the IUB says that financial analyzes present that the projected prices for patrons are larger than the advantages of the initiatives, and the battery storage techniques usually are not confirmed for intensive and long-term use.

“As proven within the financial evaluation of the IPL, the price of the services will end in a major burden on the taxpayers,” the IUB stated within the order. “To ensure that the Board to find out that the proposed services are affordable … there have to be proof within the document displaying IPL’s evaluation of possible options.”

“The Board didn’t create a brand new customary,” it continued later, “the Board utilized the proof within the document to the statutory requirement and located that the IPL didn’t conduct the mandatory thorough evaluation to satisfy the statutory requirement.”

Nonetheless, the IUB granted reconsideration or a rehearing for extra details about the Duane Arnold Photo voltaic services on a stand-alone foundation, which might enable IPL to satisfy state necessities and exhibit that the challenge affordable in comparison with different sources.

“There isn’t any query that IPL wants extra capability and these two photo voltaic services, which have been permitted for technology certificates by the Board, will present a few of the required capability,” the order stated.

The order is contingent on IPL offering extra proof inside 30 days displaying that Duane Arnold’s proposed photo voltaic technology is cheap in comparison with different power sources.

Alliant consultant Morgan Hawk stated the corporate was happy with IUB’s reconsideration of photo voltaic power technology on the Duane Arnold Photo voltaic location however dissatisfied with its willpower concerning different proposed initiatives.

“We will probably be evaluating our subsequent steps as we proceed our unwavering deal with serving our prospects and constructing stronger communities,” he stated in an e-mail.

Brittney J. Miller is the Power & Atmosphere Reporter for The Gazette and a corps member with Report for America, a nationwide service program that locations journalists in native newsrooms to report on the uncovered. points.

Feedback: (319) 398-8370; [email protected]





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