MidAmerican, a subsidiary of Buffett's Berkshire Hathaway, will use the massive infusion of cash to build a new wind farm in Adams County, Iowa, and to expand an existing facility in nearby O’Brien County.
Both projects are slated to begin in early 2015 and to be completed by the end of the year.
If approved by regulators - something that considered a certainty -- the company’s proposed wind project would result in installation of up to 67 wind turbines. The project would add up to 162 MW of new wind generation capacity in Iowa.
Bill Fehrman, president and CEO of MidAmerican Energy, said in a written statement that the new project reflects the company’s commitment to the development of renewable energy.
Using wind as the fuel source to generate energy for this project helps the company reduce its fuel costs, which in turn helps stabilize electric rates for customers. Energy costs passed through to customers are projected to be reduced by approximately $93 million over 10 years, he said
MidAmerican Energy is working with county officials and landowners to secure development and interconnection rights for the project sites. These sites are expected to provide more than $40 million in additional property tax revenues over the next 30 years, along with annual landowner payments. Blades for the new turbines will be manufactured at the Siemens facility in Fort Madison.
The next step in the development process is for MidAmerican Energy to file for approval of its wind expansion project with the Iowa Utilities Board. If the IUB approves the project, construction could start in the summer of 2015, with completion by the end of that year.
Coupled with projects currently underway in Grundy, Madison, O’Brien and Webster counties, MidAmerican Energy will have approximately 3,500 MW of wind generation capability in Iowa by year-end 2015 – enough capability to provide energy for the equivalent of approximately 1.05 million average Iowa households.
With the completion of this newest project, MidAmerican Energy will have invested more than $6 billion for wind generation development in Iowa, making wind approximately 40 percent of its electric generator nameplate capacity.
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