25 April 2007 — Wisconsin Power and Light Co. said it was “disappointed” with a return on equity decision handed down by state regulators and said it will now rethink its decision to build a 60 to 99 MW wind farm.
The power producer, a unit of Alliant Energy Corp., received an oral decision from the Public Service Commission of Wisconsin on its application for fixed financial parameters and advance rate-making principles for its proposed Cedar Ridge Wind Farm. The company had sought a 12.9 percent return on common equity. The Commission approved 10.5 percent.
“We are disappointed in the terms of the PSCW’s decision on ROE and we believe that the decision today is contrary to the intention of Wisconsin Act 7 to encourage investment in new generation, including renewable energy,” said William D. Harvey, Chairman, President and CEO of Alliant Energy. “WP&L will review the final order and communicate whether or not it intends to make the investment in accordance with the terms and conditions of the PSCW’s Act 7 decision.”
Act 7 allows Wisconsin utilities to request that the PSCW establish, in advance, the principal financial terms and conditions that will apply irrevocably to a new electric generating facility.
In addition, the PSCW’s decision on WP&L’s Certificate of Authority application to build Cedar Ridge is expected in May 2007.