Wind Power: Your Opportunity to Drastically Reduce Future Mining Costs
By Tim Mandell and Crystal J. Milburn
The Wind PRIME Docket is a new initiative from MidAmerican Energy that could drastically reduce energy costs for miners (and many other consumers/industries, such as manufacturing, food processing, tourism, etc.). The Iowa Utilities Board (IUB) must approve the Wind PRIME settlement agreement in order to realize the full benefits of this renewable energy project which means your input is needed! If you live or work in Iowa, please take one minute to complete the IUB submission form. If you do not live or work in Iowa, please take this information to your state.
CTA: Take Action Now
Iowa’s continued efforts to advance renewable energy help position the state for the most favorable consideration for your operations. While current technology is cost-prohibitive for the immediate obtainment of 100% renewable energy, projects such as MidAmerican’s Wind PRIME are essential to shortening that timeline and putting Iowa in front of most states. This is why DC Mining & MidAmerican Energy are fully supporting the project and urging Iowans to make their voices heard.
Benefits of Wind Renewable Energy
By supporting Wind PRIME, miners can benefit from lower energy prices while helping to build a more sustainable future. Cost savings that could significantly and positively impact budgets while providing an increased ability to continue mining operations is seriously attractive. But the benefits far exceed price stabilization and continued operations.
Many operations have Environmental, Social and Governance (ESG) goals and initiatives that are put in place by their investors. Wind energy aligns well with those goals. It is one of the most cost-effective, eco-friendly and cleanest sources of energy available. Plus, wind produces no air or water pollution, requires minimal land use and has a long lifespan with little maintenance.
Further, renewables are not only the right thing to do but often become a part of a company’s marketing strategy. Goofy Gophers Mining Club [LINK TO SITE] presents the perfect case in point as renewable energy-focused goals are a large reason why they chose to partner with DC Mining [LINK TO GG BLOG].
Summary of Benefits of the Wind PRIME project
The benefits of the Wind PRIME project boil down to seven key benefits.
No net cost!
Wind PRIME provides 100% renewable energy, along with reduced carbon emissions, at no net cost to customers.Short-term savings
A reduction in the cost of energy up to $100 million in 2023 if Wind PRIME is approved.
Long-term rate stability
MidAmerican will share the benefits of Wind PRIME with customers to pay down the costs of existing generation assets, which also helps keep rates lower in the future. The target of the Energy Adjustment Clause stabilization relief is up to $0.0125 per kWh.
If you’re a miner, you understand that long-term rate consistency is like finding a gold mine! Your miners typically need to be productive and profitable for at least three years for an acceptable return on investment and, with all of the uncertainty of power costs, the one thing this offers is certainty (unlike the price of Bitcoin). Iowa is the mecca unlike Texas and other states that are going rogue. It may not be the eye candy consumers in other industries are looking for but price stability is about as sexy as it gets for a miner.
Supports sustainability goals
By supporting the Wind PRIME project, miners can help secure cleaner and more reliable energy sources while saving money. This initiative has the potential to create a significant impact on Iowa’s energy landscape and promote sustainability goals.
Consumer Protection Plan
Guarantees that all renewable projects associated with Wind PRIME will meet performance requirements and maximize customer savings.
Cost Cap
The plan also includes a cost cap to ensure projects are prudent and reasonable.
Resource Evaluation Study
Within 24 months, MidAmerican will conduct a Resource Evaluation Study with stakeholder engagement and file it with IUB. The study will be updated within five years of the first filing to continue informing the generation mix portfolio.
For miners everywhere to benefit from lower energy prices and help build a more sustainable future, DC Mining & MidAmerican Energy strongly encourage Iowans to join them in supporting the Wind PRIME Docket.
Obstacles
Major resistance to the Wind PRIME Docket has come from environmental groups, such as Environmental Intervenors. This group is demanding that coal plants be retired immediately or very quickly, and they're calling for more battery storage technology to make this happen. However, MidAmerican Energy cites the lack of capacity/feasibility of storage. The environmental group's use of flawed/inadequate research is another reason for opposition to this demand.
While largely supportive, tech groups such as Microsoft, Google, Facebook and Meta (click here for a full list of participants), have also voiced their concerns, primarily due to financial and performance concerns. They simply want to see guarantees and some skin in the game, plus financial advantages and longevity. MidAmerican Energy is attempting to address these concerns by introducing measures such as a cost cap and a consumer protection plan and will make any necessary compromises in gaining full approval.
It is clear that any successful implementation of Wind PRIME requires support from all stakeholders, including both environmentalists and tech groups. Only through an open dialogue and a shared commitment to sustainability can Wind PRIME help provide miners with lower energy prices and a brighter, more sustainable future.
How to Take Action (for those who live/work in Iowa)
It’s now more important than ever to support Wind PRIME. We need your voice to be heard by the IUB so they can fully recognize the broader impact of this settlement agreement for all customers.
Contact the Iowa Utilities Board today and tell them why you support Wind PRIME. Your input will make a difference in ensuring the benefits of this project are realized by all. It only takes one minute and you can fill out the form as a registered user or guest user. Use docket number RPU-2022-0001 and a title for your filing such as “Comments from [insert your name] Supporting Proposed Settlement.” You can either attach a document or enter your comments into the designated comment field.
We encourage all miners to get behind this initiative and see how they can benefit from clean energy and cost savings. Let’s make sure Iowa makes the right decision and supports Wind PRIME. Thank you in advance for your support and for choosing to voice your opinion. Please file your comments ASAP (January 2023) and happy New Year!
