Consider nuclear power

By Bill Fehrman

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Iowa is a national leader in developing legislation to encourage utilities to plan appropriately to meet the needs of customers. It's important these efforts continue.

Iowa introduced energy efficiency programs in the early 1990s, years ahead of most states. In 2001, Iowa enabled advanced rate-making principles, which encouraged generation to be built in the state to support energy self-sufficiency and enhance economic development, becoming the first state to adopt this innovative approach. Several states have since copied Iowa's approach. Two years later, the legislation was amended to include renewable generation, which enabled MidAmerican Energy to develop its wind generation portfolio.

Today, MidAmerican Energy is No. 1 in the nation in ownership of wind generation among rate-regulated utilities. Currently, we have 1,393 megawatts of wind generation in our generation portfolio and will build another 593 megawatts in Iowa by year-end 2011. When complete, wind generation will comprise 25 percent of MidAmerican Energy's generation capacity. It's important to note that we have made these investments while keeping our customers' base electric rates stable since 1995.

Innovative legislation is now being considered that will establish the regulatory framework to keep nuclear generation available as an option for supplying base load power and to allow for the attraction of capital needed to fund a project. This legislation does not approve the construction of a nuclear plant or any cost increases to customers. The Iowa Utilities Board will continue its oversight role and approve or disapprove of any proposal to build nuclear generation and act on any rate increase request, taking into account Iowa's energy needs and the interests of Iowa electric customers.

Nuclear generation is the only proven carbon-free source of base load power, and the state must consider nuclear generation as an option in order to be able to meet consumers' growing energy demands in an environmentally responsible manner.

Advances in nuclear technology have dramatically changed the prospects for adding nuclear generation to the state's energy portfolio. It is important to recognize that today's nuclear technology is significantly advanced compared to the 30- to 40-year old technology used in Japan's affected plants.

MidAmerican Energy remains convinced that the work of locating potential sites in Iowa, evaluating new nuclear technologies for safety and operational improvements, and assessing the economic feasibility of diversifying our generating portfolio with nuclear generation should continue.

While we haven't ruled out certain plant designs or made a decision to build a project, we are interested in small modular reactors. The small modular reactor design enhances safety while also reducing financial exposure. Small modular reactors allow utilities to add generation in small increments to match need, rather than committing to building a traditional facility of more than 1,000 megawatts all at once.

This is another example of developing generation that places the needs of customers and the environment first and doing so in a financially responsible and safe manner.

As part of its ongoing nuclear generation feasibility study, MidAmerican Energy will continue to incorporate the lessons learned in Japan into its decision making and its analysis of small modular reactors and the safety benefits provided by this technology.

New nuclear generation produces significantly lower emissions than fossil-fueled generation. In response to increased U.S. Environmental Protection Agency regulations, Iowa and the nation must find a way to reduce emissions from energy generation while continuing to meet growing demand.

Some may be surprised to learn that MidAmerican Energy's customers set a new peak demand for energy in July 2010, despite the overall economy's performance at below 2008 levels. We must take prudent steps now to be ready for our customers' future requirements.

While MidAmerican Energy continues to build wind generation in Iowa, further solidifying our role as the national leader in ownership of wind generation among rate-regulated utilities, it is imperative that we look for additional ways to supply electricity to our customers at whatever time of day or night they need electricity.

MidAmerican Energy will keep stakeholders informed about the progress of the legislation and our nuclear initiative. Our goal is to continue to do what is in the best interests of our customers. We have a proven track record of delivering on our commitments to customers, and it's a record we intend to keep.

Bill Fehrman is president of MidAmerican Energy Company. Comments: www.midamericanenergy.com/feedback1.aspx