PSC approves Bent Tree North wind project certificate of authority with modified accounting conditions

The Public Service Commission on April 9 approved Wisconsin Power and Light Company's application for a certificate of authority to construct the Bent Tree North wind project, finding the proposal meets statutory criteria and adding clarifying conditions on accounting and tax-credit reporting.

Commissioner Hawkins, who led the panel's discussion, said staff's review and the applicant's modeling showed the project is cost-effective and a "clear winner" across scenarios, supporting a finding of need and economic benefit. The project as described in the record has a nameplate capacity of 153.6 megawatts, 34 turbines across up to 38 candidate locations in Freeborn County, Minnesota, and an estimated construction cost of approximately $421,800,000 (excluding AFUDC). The facility would connect via a 161 kV generator tie line.

Why it matters: the commission's review focuses on need and economics under the CA standard in Wis. Stat. 196.49 and PSC administrative rules because siting authority for the physical project is governed by Minnesota law. Approving a CA enables Wisconsin Power and Light to place the project into the company's resource portfolio subject to the conditions adopted by the commission.

The decision adds two principal clarifications to the draft order. First, the commission amended the AFUDC (allowance for funds used during construction) condition to require the applicant to apply AFUDC to 100% of qualifying plant in service starting with the incurrence of capitalized construction expenditures for this project and to cap the AFUDC calculation basis at $421,800,000. "The modification is related to the timeline of when AFUDC begins to accrue," Commissioner Hawkins said, and he noted the change is intended to make the order language transparent to future reviewers.

Second, the commission adopted escrow accounting for the retail share of production tax credits (PTCs), net of estimated transferability costs, for the 2026 and 2027 test years, mirroring the settlement agreement language presented in the record. Hawkins said staff and the applicant agreed the PTC/ITC-related element had been authorized in a prior rate case and that reflecting it in the order provides clarity.

On other deferral requests in the application—specifically the applicant's request to defer financing costs and depreciation—staff found no record basis to grant those prongs now. The commission declined to take action on those items and directed the applicant to file a separate docket if it wishes to pursue them later.

Commissioners also agreed to include tax-credit notification language in the order, requiring the utility to notify the commission within 30 days of any change in the status of federal tax credits applicable to the project so the commission can address any revenue-impact determinations in a future rate proceeding.

The commission moved, seconded, and voted to approve the certificate of authority consistent with the discussion and the modified conditions. Chair Strand thanked Commissioner Hawkins for leading the matter.

What's next: the approval addresses Wisconsin review of need and economics; site permitting and siting approvals remain under Minnesota procedures, and the applicant must comply with the order conditions adopted by the commission.