Wind projects are legal, ethical and right for Iowa

Michael Fehr, guest columnist

In his recent guest column ('Are large-scale wind energy projects ethical?” Nov. 20), Terry McGovern questioned whether the wind projects MidAmerican Energy has built over the last decade are ethical. Mr. McGovern cited various statistics to make his point. Unfortunately, he mischaracterized these statistics: many were inaccurate and simply wrong.

Contrary to McGovern's assertions, MidAmerican Energy's wind projects benefit Iowa by growing the economy, creating jobs, improving energy security, and supporting a new manufacturing sector. They also provide low-cost energy that directly benefits MidAmerican Energy customers. MidAmerican Energy's wind projects are not only legal, they are ethical and the right thing to do for the state of Iowa and our customers.

Our vision to provide customers with clean energy more than a decade ago is now reality. While Mr. McGovern would tell you otherwise - without regard to the actual facts - wind energy has delivered tremendous benefits for customers and the state of Iowa all in ways that are legal, ethical and good for the environment, customers and business. Here is the truth about MidAmerican Energy's wind projects:

TRUTH: With our wind projects, MidAmerican Energy will power 85 percent of our customers' annual energy needs with wind. The result: MidAmerican Energy has some of the lowest retail prices in the United States.

MidAmerican Energy customers have some of the lowest electricity prices in the U.S., according to information released in June 2016 by the Edison Electric Institute. The national average retail price for electricity is 10.68 cents/kWh and MidAmerican Energy's average retail price in Iowa is 6.78 cents/kWh - nearly 37 percent lower than the rest of the country. It is electricity generated from clean energy produced right here in Iowa, using an abundant resource that has no fuel cost associated with it (wind is free) so that allows us to maintain low prices and keep more money in our customers' pockets. It also reduces Iowa's dependence on others for our energy supply.

Long-term price information from the U.S. Energy Information Administration is also good news for MidAmerican Energy customers. While retail electricity prices have jumped 50 percent across the country over the past 20 years, in 2014 MidAmerican had its first increase in base prices in 18 years, which was only 10.8 percent and phased in over three years. With our Wind XI project, MidAmerican Energy does not expect to seek another base price increase until 2029.

Yes, you read that right, 2029! This is unheard of in the energy industry. And contrary to Mr. McGovern's assertion, this low-cost energy stays in Iowa due to regulatory agreements that guarantee MidAmerican customers get the lowest cost energy, which is almost always wind.

MidAmerican Energy is providing long-term stability for our customers, and by taking advantage of federal tax credits for renewable energy, we are building a sustainable utility without the need to increase prices or ask for any state assistance.

TRUTH: Wind energy is good for business retention and expansion in Iowa.

The availability of so much wind energy has given Iowa a competitive advantage over other states when we're competing to get companies to locate here. Facebook, Google and Microsoft are prime examples. Large industrial customers, like SSAB and Deere and Company, are also focused on cutting greenhouse gas emissions, and wind energy helps reduce their environmental impact. Iowa is on the world map, providing real examples of what a sustainable energy future looks like. Demand for clean energy is increasing and Iowa's investment is paying off. Access to wind energy is often cited by companies as a top reason why they chose to locate their business in Iowa. The economic growth associated with the decision to bring business to the state is good for all Iowans.

TRUTH: An investment in wind power is an investment in jobs and Iowa.

When a wind farm is developed, hundreds of construction and permanent jobs are created. Crews working on the projects stay at local hotels. They shop in local stores. They eat at local restaurants. Iowans who live near wind farms tell us money spent in their counties and towns is good for their local economy - real money going into the pockets of hardworking Iowa families. Our state has benefitted from the growth of wind energy in Iowa and Iowans are reaping the benefits. As Gov. Branstad has said, 'Every wind turbine you see in Iowa means income for farmers, revenue for counties and jobs for Iowa families.”

' Iowa wind power supports 6,000 well-paying jobs in the state, including jobs in operations and maintenance, construction, manufacturing and many support sectors.

' There are 11 factories in Iowa that build wind-related parts and materials. In many cases, these job opportunities provide a second chance after a previous industry has left, like the former Maytag factory in Newton that was repurposed to build wind turbine blades.

' More than two-thirds - or 68 percent - of the current installed wind capacity in Iowa is located in rural counties. That's equivalent to an $8.3 billion capital investment in these areas based on information compiled by the American Wind Energy Association (AWEA).

TRUTH: Wind projects produce lease payments for landowners and property tax revenue that lowers taxes, funds local schools and fixes roads.

To date, MidAmerican Energy's wind projects have paid $69 million to Iowa landowners through lease payments and $65 million in property taxes.

' Our Wind XI project will generate $12.5 million per year in property taxes, $18 million per year in landowner payments and $48 million in state and local expenditures associated with the project. While many of the construction jobs are not permanent, one can't discount the importance of good, honest and well-paying construction jobs and the long-term economic impact that is real and substantial.

We know Iowans want clean energy that costs less, not more, and wind energy is one of the most affordable forms of electricity today. Information from AWEA shows wind is cheaper than fossil fuels in a wind-rich state like Iowa, and the price utilities pay for new wind energy has fallen 66 percent since 2009 - with the savings passed directly to residential and business customers on their electric bills.

MidAmerican's renewable energy strategy will deliver reliable energy to Iowa customers for years to come. We are committed to exploring all of our energy generation options, and we take great care to act in the best interest of all our customers. By proactively investing in our infrastructure, we are working hard to ensure that our Iowa customers have affordable, reliable and sustainable energy - today and in the future.

' Michael Fehr heads MidAmerican Energy's resource development department, which is responsible for the development and construction of new generation such as MidAmerican Energy's Wind XI Project. He has an extensive background in energy generation, including wind and solar energy. He graduated from Iowa State University with a B.S. in mechanical engineering and earned his MBA from the University of Kansas.