IEC's Official Response to MidAmerican Energy's Resource Evaluation Study

For years, electric utilities in Iowa have not been required to do any transparent planning to ensure their generation fleets are low-cost and reliable. IEC and our partners, through a settlement with MidAmerican, were able to secure a planning process that is now wrapping up. MidAmerican made news in November by releasing its Resource Evaluation Study that was one outcome of this process. This study included publicly, for the first time, potential retirement dates for each of MidAmerican’s six coal-fired power plants that still operate across the state. Those dates are: 

• Neal 3 - North (Woodbury County) 12/31/2035 
• Louisa (Muscatine County) 12/31/2040 
• Ottumwa (Wapello County)12/31/2041 
• Neal 4 - South (Woodbury County) 12/31/2042 
• Walter Scott 3 (Pottawattamie County) 12/31/2043 
• Walter Scott 4 (Pottawattamie County) 12/31/2049 

MidAmerican’s filing also revealed its plans to build significant new solar resources as well as two simple-cycle fossil gas power plants. Although IEC and our partners were included in the closed-door process, the process was extremely flawed and not responsive to stakeholder input.  

Kerri Johannsen, IEC’s Senior Director of Policy and Programs, explained IEC’s position. "We agree with MidAmerican that solar is important to balance the generation portfolio and that it is a clean and cost-effective option. We also believe resource planning is critical in the quickly-changing energy environment. However, this RES process was not responsive and transparent.  

"In fact, MidAmerican filed its plan and results without even waiting to get input from stakeholders. MidAmerican asked stakeholders to submit comments on its proposal by November 22, despite finalizing and submitting its plan on November 1st.” 

MidAmerican chose its “preferred portfolio” based on modeling that did not incorporate greenhouse gas rules that took effect earlier this year. The rules set emission limits and restrict operations from coal and gas plants in the future, which could affect the resources MidAmerican will need long-term.  

IEC’s General Counsel, Mike Schmidt, added: "MidAmerican chose its future resource portfolio despite having better options. IEC and our partners identified lower-cost paths forward that would also reduce the air pollution that exacerbates asthma and COPD in places like Sioux City where MidAmerican operates two coal-fired power plants. We showed that MidAmerican could comply with EPA rules at a lower cost than the plan it filed. MidAmerican's plan prioritizes the company's profits over the health and financial well-being of the Iowans who will pay for MidAmerican’s decisions." 

Iowa is one of only five states that allows its energy monopolies to operate without transparent integrated resource planning that is overseen by the utility commission. This arrangement means Iowans are stuck with the bills for whatever projects the utility chooses, regardless of whether they are the most cost-effective. IEC will continue to advocate for integrated resource planning policies at the statehouse in the next session.