CEDAR RAPIDS, Iowa, April 3, 2017 /PRNewswire/ -- Over the past six years, Alliant Energy's Iowa utility has made significant investments on behalf of customers. The company's efforts to strengthen the power grid have resulted in fewer and shorter outages and enhanced security. In addition, the new highly efficient Marshalltown Generating Station advances cleaner energy and can power more than 500,000 homes.
"Our goal is to deliver the energy future our customers expect," says Doug Kopp, President of Alliant Energy's Iowa utility. "These investments will continue to strengthen the communities, families and businesses we serve both today and beyond."
Today Alliant Energy's Iowa utility filed its proposal with the Iowa Utilities Board (IUB) to increase retail electric base rates for the first time since 2011. The proposal, which includes the costs of these investments, would increase rates by 11.6 percent. Tax credits and transmission refunds will reduce the effect of the increase on customer bills in 2017 and 2018.
The impact to a customer's bill will vary by customer type and usage. A typical residential customer with a monthly electric bill of $114 will see a total increase of approximately $14 per month.
The proposed change would impact customers' electric bills in two steps. An interim rate increase will be implemented on April 13, 2017. The new interim rates will remain in effect until there is a final decision on the company's electric rate request.
The company is also proposing rate options designed to help customers manage their energy bills. These include an expanded Time of Day rate, an electric vehicle charging rate and an enhanced renewable energy pricing program.
Details about the increase have been mailed to electric customers along with information on how to provide feedback or participate in customer comment meetings. More information on the proposed increase and ways to save energy is available at alliantenergy.com/iowarates.
Summary of key financial elements of the rate request
- Alliant Energy's Iowa utility is requesting a total increase in annual retail electric revenues of $176 million. The requested increase would take place in two phases: $102 million, through interim rates starting in the second quarter of 2017, and the remaining increase of $74 million when final rates are implemented.
- Interim retail electric rate base of $3.8 billion includes the Marshalltown Generating Station and the Franklin County Wind Farm.
- The final proposed rates include:
- Retail electric rate base of $4.1 billion including deferred tax assets for production tax credits and post-test year additions through the third quarter of 2017
- Return on common equity (ROE) of 10.3 percent. The Marshalltown, Whispering Willow-East and Emery generating stations received advance ratemaking principles with separate ROEs set for the life of those assets
- Common equity component of regulatory capital structure of 49 percent
- Increased depreciation expense supported by an updated depreciation study
- Recovery of asset retirement obligation costs since the last rate filing
- Recovery of remaining net book value of Sutherland Generating Station planned for retirement in 2017
- Recovery of forward contract costs for sulfur dioxide emission allowances
- Continuation of the transmission rider
The company has requested a decision in the fourth quarter of 2017. The IUB has 10 months from the date of filing to issue a final decision. The proposal is available on the IUB's electronic filing system under Docket No. RPU-2017-0001.
About Alliant Energy
Alliant Energy Corporation's Iowa utility subsidiary, Interstate Power and Light Company (IPL), utilizes the trade name of Alliant Energy. The Iowa utility is based in Cedar Rapids, Iowa, and provides electric service to 490,000 retail customers and natural gas service to 220,000 retail customers. The employees of Alliant Energy focus on delivering the energy solutions and exceptional service their customers and communities expect – safely, efficiently and responsibly. Alliant Energy Corporation is traded on the New York Stock Exchange under the symbol LNT and is a component of the S&P 500. For more information, visit alliantenergy.com.
Alliant Energy Forward-Looking Statement
This press release includes forward-looking statements. These forward-looking statements can be identified because they describe: proposed rates, capital structure, return on equity, and other key financial elements; requested rate options; regulatory approvals; anticipated credits; and expected approval timelines. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by such factors as: regulatory action on IPL's retail electric base rate filing which delays, prevents, or alters the proposed increase in base rates, capital structure, return on equity, and other key financial elements; IPL's ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of fuel costs, operating costs, transmission costs, environmental compliance and remediation costs, deferred expenditures, capital expenditures, and remaining costs related to electric generating units (EGUs) that may be permanently closed, earning their authorized rates of return, and the payments to their parent of expected levels of dividends; the ability to continue cost controls and operational efficiencies; weather effects on results of utility operations; current or future litigation, regulatory investigations, proceedings or inquiries that could impede the implementation of Alliant Energy's plans; political conditions in Alliant Energy's service territories; changes to Alliant Energy's access to capital markets; and economic conditions in Alliant Energy's service territory. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and Interstate Power and Light Company undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.