Iowa
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 03/09/2009
| Incentive Type: |
Renewables Set Aside |
| State: |
Iowa |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Municipal Solid Waste,
Anaerobic Digestion
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| Applicable Sectors: |
Utility
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| Terms: | 105 MW |
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Authority 1:
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Iowa Code § 476.41 et seq.
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| Date Enacted: | 1983 (amended 1991, 2003) |
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Authority 2:
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IAC 199-15.11(1)
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Authority 3:
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Iowa Utilities Board Order, Docket No. AEP-07-1
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| Date Enacted: | 11/21/2007 |
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Summary:
Iowa requires its two investor-owned utilities -- MidAmerican Energy and Alliant Energy Interstate Power and Light (IPL) -- to own or to contract for a combined total of 105 megawatts (MW) of renewable generating capacity and associated energy production, which can include small hydropower facilities. The Iowa Utilities Board has allocated the 105 MW between the two utilities based on each utility's percentage of their combined estimated Iowa retail peak demand in 1990. This breaks down to 55.2 MW (52.57% of demand) for MidAmerican and 49.8 MW (47.43% of demand) for IPL.*
Originally, for incentive ratemaking purposes, the Iowa Utilities Board (IUB) interpreted the 105 MW specified in the statute as "average capacity" based on kilowatt-hour output. As a result, the IUB's interpretation of the statute mandated the payment of incentive rates for 260 MW of renewable energy -- the nameplate capacity of 105 "average" MW. After the FERC overturned Iowa’s incentive rate concept in 1997, the IUB rescinded the "average capacity" ratemaking concept, which is no longer part of the IUB rules.
The IUB issued an order in November 2007 (in Docket No. AEP-07-1) approving specific generating facilities designated by MidAmerican and IPL for satisfying the utilities’ 105-MW requirement. This order cleared the way for the utilities to participate in renewable energy credit (REC) trading programs by differentiating between renewable electricity production capacity used to comply with Iowa law and that which remains uncommitted. For the present, IPL is fulfilling its entire obligation with wind while MidAmerican is fulfilling its obligation with wind and a small amount of biogas capacity.
In 2001, Iowa's governor established a secondary, voluntary goal of 1,000 MW of wind generating capacity by 2010.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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