WPL Proceeds With Cedar Ridge Wind Farm Using Traditional Rate-Making Procedures
NAW Staff, Friday 18 May 2007 - 10:42:38
Wisconsin Power and Light Company (WPL), a subsidiary of Alliant Energy Corp., recently declined an order from the Public Service Commission of Wisconsin (PSCW) that outlines nontraditional rate-making procedures for its Cedar Ridge Wind Farm.
In early May, WPL received unanimous approval by PSCW to construct the 60 MW to 99 MW wind farm in Fond du Lac County, Wis. (See "PSCW Approves Cedar Ridge Wind Farm
.") In addition, the commission responded to WPL's application for fixed financial parameters for Cedar Ridge that was filed under Wisconsin Act 7 - an alternative to traditional rate recovery principles that utilities can apply for in advance. In PSCW's Act 7 order, the commission set the authorized return on common equity at 10.5%.
"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," says William D. Harvey, Alliant Energy's chair, president and chief executive officer.
According to WPL, the utility will proceed with the Cedar Ridge facility, applying traditional rate-making procedures to the recovery of and return on its capital costs.
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