Dive Brief:
- Iowa Utilities Board (IUB) member Sheila Tipton has sent a letter to Gov. Terry Branstad (R) alleging that his decision to replace her was because of a decision directing MidAmerican Energy to return funds to ratepayers.
- In a quiet shakeup announced last month, Branstad tapped Geri Huser, a former state representative who works in the Iowa Finance Authority, to lead the board, while also replacing Tipton.
Dive Insight:
There was little explanation last month when Gov. Branstad opted to replace Tipton and appoint Huser to chair the IUB, effectively demoting Elizabeth Jacobs from the top spot. Announced in a long list of appointments, the quiet decision opened up speculation that Brandstad's choice stemmed from regulators' determination that MidAmerican should return $2 million annually to ratepayers as part of a wind project.
And MidAmerican did meet with the Governor to protest the board's decision, though the company said it did not lobby for changes to the IUB. But Tipton, according to the Daily Reporter, hand delivered a four-page letter to the governor complaining about the decision and saying it was done to "appease MidAmerican Energy."
"Administrative agencies, including the Iowa Utilities Board, are intended to be independent and not subject to political pressures or threats of retaliation," Tipton said in her letter.
The governor's office responded through a spokesman, saying "we regret that Ms. Tipton is dissatisfied with the governor's decision, but believe Ms. Huser will provide exceptional leadership, which will benefit the board and those it serves."
The board's decision in question approved MidAmerican’s Wind IX generation project of up to 162 MW and established an 11.5% rate of return on equity for the portion of the wind project to be included in the Iowa electric rate base. The order included a Board-initiated settlement modification that, once 50 MW of the project is in operation, triggers an additional $2 million in annual benefits to flow to MidAmerican's electric customers through the utility's energy adjustment clause until the next MidAmerican rate case.