In a final decision, the Iowa Utilities Commission (IUC) has approved reduced rate increases for electric and natural gas customers of Interstate Power and Light Company, a subsidiary of Alliant Energy, marking a key resolution in Docket No. RPU-2023-0002.
Alliant Energy initially filed its application with the IUC on Oct. 12, 2023, seeking a substantial rate increase for Iowa customers, requesting approximately $284 million for electric rates and $14 million for natural gas rates.
However, on June 20, 2024, a non-unanimous partial settlement was filed by several parties, including the Office of Consumer Advocate, the Iowa Business Energy Coalition, Walmart, and Alliant. The settlement proposed reducing the electric rate increase to $185 million and lowering the return on equity from 10.0% to 9.65%. For natural gas, the settlement reduced the requested increase to $10 million, with a matching return on equity of 9.65%.
The IUC has now approved the settlement, along with addressing other contested issues in the case. Key provisions in the order include:
- Increasing the average monthly residential electric charge from $13 to $15.50.
- Implementing a conditional electric rate base moratorium through October 2029.
- Capping rate increases at 15% per customer class.
- Rejecting proposals to impose a management efficiency penalty on Alliant.
- Requiring Alliant to submit updates to its 2012 Management Efficiency Audit and its Stakeholder Engagement and Customer Satisfaction Plan within six months of the final rate implementation.
- Mandating customer notification of bill impacts within 30 days of the new rates taking effect.
The IUC has instructed Alliant to file compliance documents, including updated tariffs, within 30 days. The new rates will take effect once the IUC reviews and approves these filings.
Additionally, Iowa law mandates that since Alliant based its rate request on a future test year, the IUC must conduct a follow-up proceeding approximately 15 months after the new rates take effect to ensure that actual costs and revenues align with those approved.
Throughout the case proceedings, the IUC received hundreds of public comments and held several in-person and virtual public meetings to gather consumer input from Alliant’s Iowa service territory.
