MidAmerican Energy, a subsidiary of Warren Buffett’s MidAmerican Energy Holdings, has announced a record investment in the Iowa economy; pledging $1.9 billion to add over a gigawatt of wind energy in the state by 2015.
The company plans to install 656 new wind turbines in Iowa by the end of 2015, and the project will be completed at no net cost to customers – although MidAmerican will seek federal tax credits.
The expansion should create 460 construction jobs over two years and 48 permanent jobs, a company statement says.
Pending approval from state regulators, customers can expect an electricity rate reduction windfall of $10 million per year by 2017, commencing with a $3.3 million reduction in 2015.
Landowners providing space for wind turbines will benefit to the tune of $3.2 million per year and the state is expected to reap a property tax windfall of $360 million over 30 years.
“As a leader in wind generation, the state of Iowa welcomes the opportunity to expand our renewable energy portfolio,” said Iowa Governor, Terry Branstad. “MidAmerican Energy’s proposed project will be the largest economic development investment in the history of the state, bringing needed jobs to Iowa, as well as significant economic benefits.”
Mid American Energy is Iowa’s largest electricity supplier and has installed 1,267 wind turbines in the state since 2004. The planned expansion of 1050 megawatts will boost the company’s wind energy capacity to 3335 megawatts, enough power to provide the company’s 730,000 customers with up to 40 percent of their electricity needs.
“The proposed wind expansion will not only add to MidAmerican Energy’s and Iowa’s position as a national leader in wind generation capacity, it will help reduce future rates to our customers by as much as $10 million per year and further enhance our corporate principle of environmental respect by reducing our carbon footprint by 10.3 percent,” said Bill Fehrman, president and CEO, MidAmerican Energy.
