DES MOINES, Iowa—The Iowa Utilities Board has issued its final decision and order regarding a request from Alliant Energy/Interstate Power and Light Company to increase Iowa retail customer electric rates.  The initial application was filed on March 1, 2019, 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 was filed and reduced the annual revenue increase to $127 million and a return on equity to 9.5%.

The IUB’s final decision and order approved the non-unanimous partial settlement agreement and resolved other contested issues in the case.  The order released today includes:

 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 RER 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.

Board Member Richard Lozier dissented from the majority decision regarding interim rates and
management efficiency.

The IUB also cited to evidence in the rate case demonstrating that Alliant has not efficiently managed its relationships with 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 int eh electric rate case, the IUB received more than 5,600 written public comments and in the spring of 2019 held 10 public customer comment meetings throughout the Alliant Iowa service territory.  That did not include the public meeting that was held by the Boone City Council with Alliant representatives to answer questions posed by the public.  IUB was in attendance to monitor that meeting as well.