Madison Gas and Electric Company (MGE) on April 30 filed with the Public Service Commission of Wisconsin its progress report for 1Q18 regarding the Saratoga Wind Farm.
As noted in the filing, the commission last December issued its final decision approving MGE’s application for a certificate of authority to build, install, and place into operation the Saratoga Wind Farm in Howard County, Iowa. The estimated cost of the approved project was about $107.8m, excluding allowance for funds used during construction (AFUDC).
MGE also noted in its filing that project costs to date are about $22.9m.
MGE said that it has awarded the turbine supply contract to Vestas for supply of 33 V116 2-MW turbines. Additionally, MGE said that it has awarded contracts to Fagen Incorporated for balance of plant construction, including roads, foundations, and turbine installation; Delta Star for supply and delivery of a substation transformer; and Consulting Engineers Group to procure and build the substation, as well as to design the collection system.
The anticipated in-service date for the Saratoga Wind Farm is Dec. 15, MGE said, adding that closing on the project site was completed on Feb. 21.
All permits to allow construction have been obtained, MGE said. Engineering activities, including substation design, collection system design, access road design, and foundation design, have been initiated and are nearing completion, MGE said.
According to the commission’s final decision in the matter, the wind electric generation facility will have a nominal nameplate capacity rating of 66 MW.
The final decision also noted that MGE’s stated purpose for the project is to obtain an economic renewable electric generating resource that provides significant tax benefits associated with the federal production tax credit (PTC), and provides low-cost energy to MGE’s ratepayers.
Further discussing PTC benefits, the final decision noted that the ability to utilize the full value of the PTC is the primary driver allowing the facility to function as a low-cost energy resource over the entire 25-year planning horizon. The value of the PTC is projected to be $40.09 per MWh, including the after-tax benefit of the credit, in the in-service year of the project. The value of the PTC then increases with inflation over the first 10 years of operation, the final decision added.