The Iowa-based MidAmerican Energy Company, which serves customers in Iowa, Illinois, South Dakota, and Nebraska, announced it is taking “big steps” to ensure a reliable energy supply in the face of growing demand by proposing two new generation projects.
The utility filed plans this week with the Iowa Utilities Commission to build a solar energy project across several sites in Iowa that is expected to generate up to 800 megawatts (MW) of power. The company also plans to develop two natural gas-fired combustion turbines at one location in Adair County that will generate 465 MW of power.
“We’re focused on ensuring our customers always have reliable power, no matter what’s going on with the weather,” Kelcey Brown, president and CEO, said. “We’re always looking ahead, planning for decades in the future, to make sure we meet the needs of our customers in the most affordable and sustainable way.”
MidAmerican’s current electric rates in Iowa are 42% below the national average – and the company argues these projects will “help the company keep rates affordable” while still ensuring a reliable supply.
Under the proposal, MidAmerican would add solar installations at approximately six sites through 2027 and 2028. Collectively, the project would provide nearly $25 million in property tax payments and $270 million in landowner lease payments over the operational life of the project. Not all site locations have been finalized, the utility said.
MidAmerican is requesting Iowa Utilities Commission approval for the company’s proposed solar project by August. If approved, construction would begin next year and generate energy beginning in 2027.
In addition, MidAmerican is proposing a natural gas-fired combustion turbine project in Adair County, called the Orient Energy Center, which would generate an additional 465 megawatts of power beginning in 2028. The Orient Energy Center is expected to operate when load is at its peak and when customers need it the most, which MidAmerican estimated would be less than 10% of the year. The facility will provide more than 400 jobs during construction, approximately $7 million in property tax revenues over its service life, and will bring up to five skilled craft jobs that pay between $100,000 to $125,000 annually to the community.
“Adding a tried-and-true natural gas power plant in Adair County to MidAmerican’s existing generation resources and the proposed renewable project is an ‘all-of-the-above’ solution that will help keep Iowa ahead of the curve and ensure we maintain a reliable grid,” Iowa Representative Ray “Bubba” Sorensen (R-Adair County), said.
A planning report that MidAmerican released in November, called a resource evaluation study, examined energy demand projections over a 20-year timeline. The company study projected above-average load growth and the need for near-term capacity additions to meet the growth as soon as 2026.
The study evaluated the energy resources that would most cost-effectively and reliably serve projected customer needs. The report identified solar energy and natural gas-fired combustion turbines as the “best resources in the short-term” and eventually small modular nuclear reactor generation in the long term.
