Wisconsin Power and Light Waives Acceptance of Fixed Financial Parameters for Cedar Ridge Wind Farm
Company plans to proceed with wind farm using traditional rate-making procedures
Wisconsin Power and Light Company (WPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), today waived acceptance of an Order it had received from the Public Service Commission of Wisconsin (PSCW) under the provisions of Wisconsin Act 7 for the Cedar Ridge Wind Farm. Wisconsin Act 7 is an alternative to traditional rate recovery principles that allows Wisconsin utilities to request, in advance, the principal financial terms and conditions that will apply irrevocably to a new electric generating facility. In the PSCW’s Act 7 Order, the Commission set the authorized return on common equity at 10.5 percent.
“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 D. Harvey, Chairman, President and CEO of Alliant Energy. WPL will proceed with the Cedar Ridge facility, applying traditional rate-making procedures to the recovery of and return on its capital costs.
The wind farm is expected to be operational by the end of 2008 at an estimated cost of approximately $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, Wisconsin.
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