MidAmerican Energy Reaches Settlement with Sierra Club

  MidAmerican Energy Reaches Settlement with Sierra Club

Business Wire

DES MOINES, Iowa -- January 22, 2013

MidAmerican Energy Company has reached a settlement agreement with the Sierra
Club to continue to build on its already strong environmental performance and
promote renewable energy in its service territory. Several years ago,
MidAmerican Energy implemented a plan to install environmental improvements –
such as completing installation of scrubbers and baghouses at its Louisa
Generating Station and Walter Scott, Jr. Energy Center Unit 3, while starting
new projects to install scrubbers and baghouses at its Neal Energy Center
Units 3 and 4 – which aligned with existing and anticipated requirements by
the U.S. Environmental Protection Agency and well positions the plants to
operate long into the future to provide energy for customers. Under the
settlement agreement, MidAmerican Energy will add to its programs to educate
customers about renewable energy and its core value of environmental respect.

MidAmerican Energy demonstrates environmental respect by proactively engaging
in emissions reduction projects and advancing renewable energy projects and
has become one of the largest rate-regulated utility owners of renewable
generation in the U.S. Prior to the Sierra Club’s notice of intent to sue,
MidAmerican Energy had completed major emissions control projects at its
generating facilities in 2007 and 2009 and is currently engaged in additional
projects to reduce emissions of sulfur dioxide, nitrogen oxides and
particulate matter at its generating facilities, with project completion dates
later this year and next year.

In July 2012, MidAmerican Energy received a notice of intent to sue from the
Sierra Club, alleging violations of certain provisions of the Clean Air Act at
MidAmerican Energy’s Neal Energy Center North, located in Sergeant Bluff,
Iowa; Riverside Generating Station, located in Bettendorf, Iowa; and Walter
Scott, Jr. Energy Center, located in Council Bluffs, Iowa. MidAmerican Energy
is one of a number of utilities across the U.S. that have received such a
notice from the Sierra Club.

MidAmerican Energy has been and remains in compliance with the law.
MidAmerican Energy consistently and fully reports its environmental
performance to the Iowa Department of Natural Resources, which reviews the
reports and determines whether it is appropriate to pursue enforcement against
MidAmerican Energy’s plants. The Iowa DNR has not pursued enforcement against
any of MidAmerican Energy’s plants.

MidAmerican Energy entered into settlement discussions as a means to avoid
costs to its customers, unnecessary delays, and ongoing uncertainty associated
with litigation.

Settlement negotiations resulted in a consent decree, which was filed with the
U.S. District Court in Iowa. Regardless of the consent decree, MidAmerican
Energy will continue to comply with all environmental regulations, including
the following actions, which also are listed as commitments in the consent
decree:

  *By Dec. 31, 2014, MidAmerican Energy will complete installation of
    baghouses at Neal Energy Center Units 3 and 4. This work is already
    underway and was in progress prior to the notice of intent to sue.
  *By April 16, 2016, MidAmerican Energy will cease burning solid fuel (i.e.,
    coal) at Neal Energy Center Boilers 1 and 2 (total of 418 megawatts);
    Walter Scott, Jr. Energy Center Boilers 1 and 2 (total of 118.2
    megawatts); and is evaluating the use of other fuels, such as natural gas,
    for continued operations of these facilities. MidAmerican Energy also will
    cease burning solid fuel at Riverside Generating Station (total of 137.4
    megawatts) and will continue to operate this facility using natural gas.

MidAmerican Energy also will fund and implement a supplemental environmental
project and is working with Iowa State Fair officials on the possible
installation of a 60-kilowatt solar project at the Iowa State fairgrounds. The
project would include a public display that shows the energy system output and
provides information about distributed solar generation, related federal and
state tax credits, and net metering tariffs. The project would be in addition
to the demonstration array MidAmerican Energy installed at its visitors center
in 2011.

MidAmerican Energy Company, Iowa’s largest energy company, provides electric
service to 732,000 customers and natural gas service to 714,000 customers in
Iowa, Illinois, Nebraska and South Dakota. It is headquartered in Des Moines,
Iowa. Information about MidAmerican Energy is available on the company’s
website and its Twitter, Facebook and YouTube pages, which can be accessed via
www.midamericanenergy.com.

Contact:

MidAmerican Energy Company
Ann Thelen, 515-281-2785
Director, Communications and Media Relations
athelen@midamerican.com
or
Tina Potthoff, 515-281-2585
Media Relations Manager
tpotthoff@midamerican.com
 
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