Des Moines, Iowa — The Iowa Utilities Board has issued its final decision and order about Alliant Energy’s request to increase Iowa retail customer electric rates.
On March 1, 2019, Alliant filed with the IUB an application seeking an increase in electric rates and requesting a permanent annual revenue increase of approximately $203.6 million. On October 3, 2019, a non-unanimous partial settlement among many of the parties involved was filed, which reduced the annual revenue increase to $127 million and a return on equity to 9.5 percent.
The IUB’s final decision and order approves the non-unanimous partial settlement agreement and resolves other contested issues in the case. The order:
· Approves a refund of $7.5 million for customers who paid interim rates;
· Increases the monthly customer charge from $11.50 to $13 for residential customers and from $19 to $20 for the general service customers;
· Sets a monthly fee of $4.06 for customers who opt out of having an advanced metering infrastructure (AMI) meter but does not allow Alliant to charge a fee to customers who choose a reduced-pulse meter;
· Approves a renewable energy rider (RER) as a line item on customers’ bills to recover costs of wind projects known as New Wind I and II, which will go into service in 2020. Alliant indicated that the rider will delay the need to file a rate increase request in 2021; and
· Establishes a regulatory principle that the return on equity on interim rates cannot be higher than the return on equity for proposed final rates.
The Board decision says Alliant has not efficiently managed its relationships with its customers. The Board requires Alliant to file a comprehensive improvement plan within 90 days and review its own internal processes, identify opportunities for improvement, and correct deficiencies as they become apparent.
As part of the proceedings in the electric rate case, the Iowa Utilities Board received more than 5,600 written public comments and in the spring of 2019 held 10 public customer comment meetings throughout Alliant’s Iowa service territory.
The board stated that many customer comments revealed concerns with Alliant’s management practices. The decision also requires the company to file an improvement plan and review its internal processes.
The Iowa Utilities Board says rate changes will take effect upon the board’s review and approval of the compliance tariffs.
