Testimony of Tom Wind, Wind Energy Consulting, PC, Jamaica, Iowa

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Q. What is the purpose of your testimony?
A. The purpose of my testimony today is to describe how MidAmerican Energy Company’s
(MidAmerican) avoided cost methodology has produced costs that are not reflective of
MidAmerican’s true avoided costs especially for wind generators; to explain how an
alternative methodology will provide more representative costs that will ultimately result
in more customer investments in energy efficiency programs and Renewable Energy
Systems (RES); and to recommend that MidAmerican adopt a technology-specific
avoided cost rate for customer-owned wind projects, as further described in the
Environmental Intervenors’ Response to the IUB’s Order Requesting Additional
Information in Dockets TF-2012-0546 and TF 2012-0574.TF-2012-0546 and TF-2012-
0574.
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Q. How do avoided costs impact energy efficiency and renewable energy development?
A. The level of the avoided cost is a critical factor in determining the cost- effectiveness of
energy efficiency programs from both the utility’s and customer’s perspectives.
Underestimating avoided costs will lead to fewer energy efficiency programs and lower
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customer incentives, both of which lead to higher energy usage.
Likewise,
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underestimating avoided costs offered for PURPA contract-based wind and solar projects
will result in little if any investment by utility customers and community wind and solar
developers. Therefore, it is important that the avoided cost calculations for both energy
efficiency and renewable energy programs are not underestimated, and that they reflect
all costs avoided by the utility.
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