Monday's guest speaker was Chaz Allen of the Iowa utility Association, whose primary members are: Black Hills Energy; Mid American Energy; iTC; and Alliant Energy, the primary providers of gas and electricity energy for Iowa. Through the half hour discussion we learned that gas and electric availability is quickly becoming the best draw to the Midwest for economic development, replacing the prior major draws of available workforce and 4-lane highways. In this regard, Iowa has ample supplies of both energy sources and has the lowest electricity rate of any of the 50 States. To maintain that record involves a long-range plan combined with input from major industries as to their needs 5, 10, and 20 years into the future. Other major discussion points were:
- Industrial Development is now following utility transmission lines, such as with the proposed steel plant near Keokuk;
- Ten years ago the Iowa long-range plan was completed. It is now beginning an update phase that will be submitted to the Iowa Utilities Commission who will use the plan to helps set gas and electric rates. An accurate plan provides stability, with the example being the last rate increase for Mid American energy was in 2013. A proposal for adjustment is now before the IUC.
- Data Centers are now upsetting the proverbial “apple cart” of planning because of their large need for energy. In the Midwest Data Centers should not substantially increase the cost to other consumers because of their needs. Rather, Data Centers will negotiate their energy costs separately with the example of the case in Cedar Rapids where energy will be purchased by the restart of the Palo Nuclear Plant. This stability will not be true for the Northeast of the United States where rates are set by alternative schedules.
- There has been much misinformation regarding the sitting of Data Centers through social media. In reality, economic growth in the economy is critical to the maintaining of utility rates. The fixed costs of energy is shared through all consumers, and if more businesses are added, any increase is shared between more customers.
- Wind and solar are important to Iowa (63% of Iowa power comes from wind), but recent protests to wind farms may soon limit any potential expansions. Solar farms are now being sited on non prime agricultural soils to avoid the astigmatism of reducing land for food. Roof, parking lot, etc. locations will become the norm.
- The bottom line is that Iowa needs to have solar, wind, nuclear, gas, and coal, as they all partner with each other to cover a consistent flow to the transmission grid when natural elements or other interruptions occur to sources of generation feedstock.