Wisconsin is missing out
Wisconsin is missing out on billions of dollars of investment, millions of dollars in land lease payments and thousands of jobs in the current renewable energy boom due to poor policy decisions in Madison.
MidAmerican Energy announced that it had received the final order and approval from the Iowa Utilities Board on Aug. 26 for Wind XI, which will use 1,000 wind turbines to reach a total planned capacity of 2,000 megawatts. Completion of the project is expected by the end of 2019, and, upon completion, will result in the largest economic development project in Iowa’s history.
This will increase Iowa’s wind energy production capability to over 7,150 megawatts. The Wind XI project will generate more than $1.2 billion in landowner easement and property tax payments over the next 40 years. Currently, wind turbines provide more than $17 million in land lease payments to landowners in Iowa annually.
Xcel Energy, already the country’s top wind energy company, proposes to significantly expand its wind power production to reduce customer costs, protect against rising and volatile fuel prices, and benefit the environment. The company has submitted to state regulators throughout its service area proposals to purchase at least 1,500 megawatts of wind resources, a 30% increase in overall wind capacity. Minnesota already is among the top 10 states in both installed wind capacity and net electricity generation from wind with 3,335 megawatts currently in service. Annual land lease payments in Minnesota are more than $7 million.
E.ON’s North American headquarters is in Chicago, and operates more than 3,100 megawatts of renewable generation from wind and solar across the United States. Once Twin Forks’ 278 megawatts of generation is completed, E.ON’s wind farms will produce a total of 578 megawatts generation capacity in Illinois, or enough to power more than 180,000 homes. The project is expected to be completed by the end of 2017. This will bring Illinois total wind power capability to over 3,800 megawatts. Annual land lease payments in Illinois are estimated to be $10 million to $15 million.
In Michigan, 1,531 megawatts of wind power had been installed by the end of 2015 with an additional 330 megawatts under construct. Annual land lease payments in Michigan are estimated at $1 million to $5 million.
A decade ago, Wisconsin was a leader in renewable energy with an average electric power cost of 7.48 cents per kilowatt. Today, we lag most of the country in our renewable energy efforts, and we are paying 10.92 cents per kilowatt hour an increase of almost 50% over 2005. Wisconsin has experienced some of the fastest rate hikes in the country while neighboring states have kept rates lower.
Policymakers in Madison have led a regression in our renewable energy efforts. While much of the nation is experiencing a renewable energy economic boom, Wisconsin has experienced a renewable recession. Regressive policies are hurting our state’s economy.