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Alliant’s first transmission rider increase coming in February


This news story was published on December 20, 2011.
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Dave DeWitte, The Gazette, Cedar Rapids –

Alliant Energy electric customers bills will go up in February as a new transmission rider granted in its last case is adjusted for the first time.

The rider approved by the Iowa Utilities Board in January 2011 allows Alliant Energy to begin collecting from customers for higher rates it is charged by ITC Midwest, its transmission provider, without filing a rate case.

Alliant Energy agreed to a three-year freeze in its base rates as a condition imposed by the utilities board to gain the transmission rider.

The transmission part of an Alliant energy residential customer’s bills will rise by about 6 percent, company spokesman Scott Drzycimski said. That equates to a monthly increase of $1 on average for residential customers, or about a 0.25 percent increase in the customer’s overall bill.

For general service customers, the transmission portion of the bill will rise about 14 percent, and for large general service customers the transmission charge will rise about 9 percent, Drzycimski said.

Drzycimski said the transmission rider’s impact was blunted somewhat by a Tax Benefit Rider approved by the utilities board to flow a favorable tax settlement back to customers.

The utility is hopeful that falling costs for natural gas to generate electricity, reflected in the energy adjustment clause of a customer’s bill, will at least partly offset the increased transmission rider.

The rate agreement called for the new transmission rider to take effect in January. The implementation date was delayed due to the need for the Iowa Utilities Board to resolve a question about whether $205,000 in charges are eligible for recovery, Drzycimski said.

Alliant sold the transmission system used by its Interstate Power and Light subsidiary in Iowa to ITC Midwest several years ago. Transmission costs have increased more rapidly since that sale because ITC Midwest has been seeking recovery for millions it’s spending to make the transmission system more strong and reliable.

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5 Responses to Alliant’s first transmission rider increase coming in February

  1. Avatar

    Jim Reply Report comment

    December 25, 2011 at 8:16 am

    higher wages just bring on higher cost, vote out all incumbents sorry I’m not a speller

  2. Avatar

    Shutta Reply Report comment

    December 21, 2011 at 8:49 am

    The rates are too damn high as it is!! Iowa needs to change the minimum wage for people over 18 to $15.00 in order to pay house payment, Alliant, Water, & Phone. My last water bill from Mason Shitty was $120.00!! For 3 people in a house, I don’t think so!!!!!!

  3. Avatar

    Patriot Reply Report comment

    December 20, 2011 at 6:06 pm

    Afraid we will be stuck with Alliant for awhile, the city just signed a new franchise contract with them. Oh goodie.

    Of course that may all change if they get bought out by Mid America Energy.

  4. Avatar

    so sick Reply Report comment

    December 20, 2011 at 3:09 pm

    Well I think the rates are high enough, so I will take my business elswhere…wait I can’t do that they are a MONOPOLY!! When are we going to stop being at the mercy of these companies?

    • Avatar

      mcresident Reply Report comment

      December 20, 2011 at 4:55 pm

      I have to agree 100%.

      Alliant = RIPOFF!!!!!