Liberty Utilities granted convenience and necessity to build wind farms
Liberty Utilities says they are one step closer to bringing 100% renewable energy to customers in southwest Missouri and southeast Kansas. Read the full press release from the Missouri Public Service Commission below:
The Missouri Public Service Commission has granted certificates of convenience and necessity (CCN) to The Empire District Electric Company (Empire) to build two wind generation facilities (each up to 150 MWs) located in the Missouri counties of Barton, Dade, Jasper and Lawrence (known as Kings Point and North Fork Ridge). The Commission has also granted Empire a CCN to build a wind generation facility of up to 301 MWs located in Neosho County, Kansas (known as Neosho Ridge).
Both applications filed by Empire included requests for authority to construct, own, and operate the related transmission interconnection assets and approval of using federal tax incentives in conjunction with a tax equity partnership structure to finance the wind projects.
The Commission granted the CCN’s determining: 1) There is a need for the service; 2) Empire is qualified to provide the proposed service; 3) Empire has the financial ability to provide the service; 4) Empire’s proposal is economically feasible; and 5) The service promotes the public interest.
The Commission determined the wind projects will add renewable generation capacity at reduced costs to customers because they take advantage of tax benefits through tax equity partnerships. “By utilizing a tax equity partnership,” said the Commission, “Empire has the opportunity to bring $169 million of savings to customers over the 20-year IRP (Integrated Resource Plan) period, and up to $295 million in customer savings over a 30-year period.”
The Commission noted in its decision that in addition to cost savings for customers, wind generation has other benefits including helping to diversify Missouri’s energy generation mix, providing renewable energy, and providing local and state economic benefits such as property taxes, land lease payments, and jobs. “Wind generation also helps corporations in Missouri to perform more competitively, as there is an emergence of corporate customer interest in renewable energy and corporations are seeking increased options for purchasing renewable power,” said the Commission.
In addition, the Commission stated the wind projects would provide benefits to Empire’s customers by providing a replacement for expiring wind generation contracts, giving Empire control over those wind generation assets, and continuing to provide value for their expected lifetime which is longer than the 20-year term of a typical purchased power agreement.
The Empire District Electric Company serves approximately 153,000 electric customers in the Missouri counties of Barry, Barton, Cedar, Christian, Dade, Dallas, Greene, Hickory, Jasper, Lawrence, McDonald, Newton, Polk, St. Clair, Stone and Taney.
Liberty Utilities also released a press release about the grants. Read that below:
On Wednesday, the Missouri Public Service Commission (MPSC) voted unanimously to grant Liberty – Empire certificates of convenience and necessity to acquire, once completed, three wind farms generating up to 600 megawatts of wind energy located in Barton, Dade, Lawrence, and Jasper Counties in Missouri and in Neosho County, Kansas. Liberty-Empire collectively refers to these projects as its Customer Savings Plan.
This approval marks the beginning of the construction phase for the company’s wind generation sites, which will be the first of their kind in Southwest Missouri. Construction is expected to begin in the fall of 2019 and to be completed by the end of 2020. The Customer Savings Plan is expected to result in the investment of more than $1 billion, and Liberty-Empire expects to meet a material portion of its financing requirements through the use of existing federal tax credits. Development of this cost-competitive new wind capacity will drive positive benefits for its customers. Liberty-Empire estimates customer savings of approximately $169 million over the first 20 years after implementation and approximately $300 million over the 30-year investment horizon.
Changes in costs, innovation, and technology have made generating wind energy in the region cost-effective and reliable. In addition to providing long-term cost savings to customers, these wind farms will provide meaningful economic benefits to our communities, including tax revenue for the communities and states where the farms are located; a steady source of income for landowners who lease their property for wind turbines; hundreds of jobs during construction; and full-time, ongoing operations jobs over the life of the project. The wind farms will also provide environmental benefits to Liberty Utilities customers by generating 100% renewable energy that will create no polluting emissions during operation; consume no water; and contribute to healthier, more sustainable communities.
“This approval from the MPSC represents an exciting step forward for our Customer Savings Plan,” said David Swain, Liberty Utilities Central Region President. “As an organization, our team focuses on meeting today’s energy needs safely and reliably while also ensuring a sustainable future. Projects like these wind farms benefit our region today and will for decades to come. We’re thrilled to move forward on this project and to bring local, renewable energy to the region.”