CEDAR RAPIDS – Alliant Energy, which serves much of North Iowa, is preparing to raise rates substantially, the company announced.
Electric rates for residential customers could go up as much as 24%. Gas rates for residential customers could go up as much as 25%.
A customer comment meeting will be held in Mason City on May 2 at the Historic Park Inn at 11:30 AM. Customers may file a written objection with the Utilities Board; the online comment form is available at eft.iowa.gov.
FROM ALLIANT ENERGY:
This month, two new wind farms from Alliant Energy’s Iowa energy company will start generating low-cost, renewable energy. These projects are the first of the company’s $1.8 billion expansion in wind energy to start serving Iowa customers. Three more wind farms are expected to come online in 2020.
Combined, the Upland Prairie and the English Farms wind farms can provide clean power for 168,000 homes a year, while also helping lower fuel costs on monthly bills. The fuel needed to produce wind energy is free and does not create emissions. These additions to Alliant Energy’s energy mix are expected to save customers around $25 million in fuel costs in 2019. In 2020, the fuel cost savings from the wind expansion are expected around $60 million, with additional savings into the future.
Today, Alliant Energy’s Iowa energy company filed proposals with the Iowa Utilities Board (IUB) to recover the costs of these and other investments. The company is requesting an increase in retail electric and retail natural gas base rates.
Electric request
“Our investments in wind energy will bring long-term benefits to Iowa,” said Terry Kouba, President of Alliant Energy’s Iowa energy company. “Beyond being renewable, wind energy delivers lower fuel costs for customers, property taxes to communities and lease payments to landowners.”
In addition to more clean energy, the electric request is driven by enhanced reliability and customer service investments. These include adding underground wires to reduce outages and tools on the energy grid that automatically report and respond to outages. The company is also installing stronger distribution lines to increase reliability and support the integration of customer-owned renewable energy.
As part of this request, individual elements of the bill are changing because of the investments and initiatives from the company. Base rates will go up. However, customers are expected to see lower fuel costs, lower transmission costs and lower energy efficiency costs. The company is also continuing to identify operational efficiencies to reduce customer costs.
As a result, overall customer bills are projected to increase by approximately two percent in 2019 and five percent in 2020.
The impact to a customer’s bill will vary by customer type and usage. A typical residential customer with a monthly electric bill of $116 will see a total increase of approximately $8 per month starting April 1, 2019. And, if approved, residential customers would see an additional projected increase of $12 per month
Natural gas request
“Our investments in the natural gas system are delivering continued resilience supporting customers in the state. Continued development in the natural gas distribution system showed its value in our ability to meet high demands during the incredibly harsh polar vortex we saw this winter,” said Kouba.
The natural gas request is driven by continued replacement of aging materials, addition of advanced metering infrastructure and additional inspection and safety equipment.
As part of this request, individual elements of the bill are changing because of the investments and initiatives from the company. Base rates will go up. However, customers are expected to see lower energy efficiency costs and continued low commodity costs of natural gas. Overall customer bills would increase approximately three percent from 2019 to 2020.
The impact to a customer’s natural gas bill will vary by customer type and usage. If approved, the changes would take effect starting January 1, 2020. A typical residential customer with a monthly natural gas bill of $54 will see a total projected increase of approximately $7 per month over 2019 bills.
Summary of key financial elements of the rate request (electric)
Alliant Energy’s Iowa energy company is requesting a total increase in annual retail electric revenues of $204 million. The requested increase would take place in two phases: $90 million through interim rates starting April 1, 2019, and the remaining increase of $114 million when final rates are implemented in 2020.
- Interim retail electric rate base of $5.1 billion includes investments in cleaner energy through expansion of our wind resources and environmental controls, new grid technologies, and customer service investments.
- The 2020 proposed rates include:
- Retail electric rate base of $6 billion including deferred tax assets for production tax credits
- Return on construction work in progress of $0.1 billion
- Return on common equity (ROE) of 9.8 percent. The 1,000 MW of new wind, Marshalltown, Whispering Willow-East and Emery generating stations received advance ratemaking principles with separate ROEs set for those assets
- Common equity component of regulatory capital structure of 53 percent
- Increased depreciation expense supported by an updated depreciation study
- Recovery of remaining net book value of Sutherland Generating Station retired in 2017, M.L. Kapp Generating Station retired in 2018, and retired electric meters
- A renewable energy rider
Summary of key financial elements of the rate request (natural gas)
Alliant Energy’s Iowa energy company is requesting a total increase in annual retail revenues of $21 million.
- The 2020 proposed rates include:
- Retail rate base of $570 million includes infrastructure investments and customer service investments
- Return on common equity (ROE) of 10.0 percent
- Common equity component of regulatory capital structure of 53 percent
The IUB has ten 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-2019-0001 for electric and RPU-2019-0002 for natural gas. Copies of the customer notice and other information is available at alliantenergy.com/iowarates.
Duck you and your employer socialist owned Alliant Corporate cruds.
Oh Sawmi – How do we get another provider ? Here is one clue – Woman just told me (lives just south of 105 Northwood – she has Heartland instead of Alliant and has no increase in utility bills at this time – Maybe that’s why half of Alliants windmills are not running up by the casino – this electricity is shipped east and MAYBE the residents out east think it’s to expensive and have switched companies – THEY have a CHOICE WHICH I DO NOT BELIEVE WE DO – IT’S CALLED A MONOPLY – CROOKED !
If you’re not happy with Alliant, just drop it. No one is forcing you to use their services. If you’re not willing to get a less expensive cell phone, or a cheaper cable provider, than find someone you can purchase less expensive energy from. Guess what, you can even move to another country, if you choose. If not, then take off your diapers, put on some big boy undies, and grow up. And if you wish to refute my post, please address it in the comments and stop deleting my entries. All you are doing is showing that you do not have a sound base to argue from.
You talk goofy. Iowa electric utilities have a monopoly.
You say that I “talk goofy as Iowa electric utilities have a monopoly”. Exactly my point. If you’re not happy with Alliant, go find a different one. If you can’t find a different and more inexpensive one, and still want what Alliant furnishes, then go with Alliant. If you’re too cheap to pay for it, then choose to go without. It’s really very simple.
If you’re not happy with Aliant, cancel. Go with some other carrier. If not, quit your crying. Give up your cell phone, quit smoking, quit your drugs. Hey, here’s one for you. Move to another country, just quit complaining. No one is forcing you to choose to use Alliant. In other words, grow up.
Amen!
Amen!
I found the following discussion on Forbes the other day.
Cost per kwh produced:
Coal 4.1¢
Wind 4.3¢
Gas 5.2¢
Nuclear 3.5¢
Solar 7.7¢
Hydro 3.3¢
Mind you, these are costs for entire life cycles of each source, and does not reflect subsidies given to certain sources.
I have seen where other organizations have posted here and there, twisted and convoluted thoughts and premises of the real cost of production.
However none of them really take into account the whole life cycle of each energy source, and they discount for fuels and other things not germane to the discussion of really how much it really costs to produce one kwh.
One item no one seems to address, is the cost related to the interruption of the supply of an energy source. It seem relevant to me.
Of course those costs are passed on to the rate payers. Purchasing energy on the open market, can cost a whole lot more than if you produce your needs yourself. Especially when you eliminate your own baseload plants.
Thanks for an informative post
MAGA
Just getting ready for the greening up of the country formally known as America.
Now that their 10 year TIF and tax rebates have expired for the POS windmills that have already drained the property owners of millions of dollars. ( half are not even in service up by the casino) they want more money for their shareholders (probably foreign) and themselves ( GREED ) – THIS IS WAHT IS CALLED A MONOPLY AND SHOULD BE DEREGULATED – AS THEY ARE BECOMING CROOKS. MAYBE THE FOREIGHN OWNERS WANTS OUR ECONOMY TO TANK – China ?
https://www.texaselectricityratings.com/electricity-rates/msidxv2xs9xc10011xg27xa5
In 2002 Texas deregulated electricity and power companies have to compete for your business.
In Texas, we can buy our electricity from any company we want. We pay around $6.00 per month for the use of the wires that feed our homes. I change providers every 6 months or a year to whoever has the cheapest electricity. Competition is a winner for all of us!
Iowa should do the same as it is much better for the consumers.
I should have also told you that you can go online and watch for “electricity specials” They show up all the time. I am currently paying 6.6 cents per KWH.
no one has asked the question, now with the remote meter read, does that mean the twelve bucks and change for reading the electric meter and the same for the gas meter is going to go away. after all with no meter readers there shouldn’t be a charge for it!!!!!
Isn’t this the way it always is? Companies make any improvements they want (Billions of $$), the customer has NO say in any of it, but gets hit with higher bills coming out of left field that you didn’t see coming. Why not get the money 1st, see how much you have and build ONLY that amount until the next time??
Alliant needs to stop there rebate conjob that all there captive customers have to pay for ! Then they can give rate decreases.
We are paying for the windmills and then paying for the electricity the windmills generate. Nuclear, clean coal and natural gas are way cheaper and it’s all environmentally friendly.
We are getting screwed with all this political warming and green energy bull crap.
Its time for people to drop off grid.
I don’t know where this came from. The notice I got said they are looking for a 11.1% increase and are are implementing a 5.5% increase until it is approve. It is still bull crap. Where do they get off raising costs every single year. Just because they want to change things should not be a reason to raise our rates. Whatever happened to the cost to do business by the company? This is what Green Energy does to you. Drop your drawers and get ready.
More good jobs are gone from Mason City. No more meter readers.
This is to cover the cost of the new meters, and they will do away with the meter readers.
WHAT A LOAD OF CRAP!
Where is the windmill savings on electricity CRAP! CRAP! AND MORE CRAP!
They’re gonna shock us with 25% that way we’ll feel like we’re getting a deal when they drop it to 15%.
It did say 24% but that is not the increase they are going for. 11.7% is the magic number and they are stating with 5.5% until approval. The good this is (if there is a good thing) they hardly ever get what they ask for. The Great Green New Deal in Action. Nothing but a rip off for the people.