CEDAR RAPIDS, Iowa,
Sept. 21, 2017 /PRNewswire/ -- Today,
Alliant Energy's Iowa energy
company filed a proposed partial settlement agreement in its 2017
electric rate review. This agreement creates cost certainty
for customers and allows Alliant Energy to continue to advance
cleaner energy, to strengthen the reliability of Iowa's power grid and provide innovative
customer solutions.
"This collaborative process with our customer groups and our
company created a fair agreement that supports our objective to
provide exceptional service to our customers," said Doug Kopp, President of Alliant Energy's
Iowa utility. "I want to thank the
Iowa Office of Consumer Advocate, the Iowa Business Energy
Coalition and the Large Energy Group for coming together on this
agreement."
On April 3, 2017, Alliant Energy
filed its first rate review in six years. An interim base
rate increase went into effect ten days later. This agreement
increases base rates less than 2 percent above interim rates.
Under this agreement, the total increase from this base rate
review would be 8.6 percent. Spread over the last six years, this
increase would have equated to less than 1.5 percent
annually. The final bill impact for each customer class will
be decided as part of the rest of the rate review process.
Through the rest of 2017, customers will also continue to
receive bill credits related to tax benefits and refunds on
transmission expenses to offset the base rate increases and
maintain competitive customer costs. In addition, under this
agreement Alliant Energy will give more tax-related bill credits to
customers in 2018.
Key details of the proposed settlement:
- Final annual retail electric revenue requirement of
$130 million
- Electric rate base of $4.2
billion, including deferred tax assets for production tax
credits and post-test year additions through the third quarter of
2017. Retail electric rate base of $4.0
billion.
- Blended return on equity (ROE) of approximately 10%. ROE for
all non-ratemaking principle assets of 9.6%
- No application of double leverage
- Common equity component of regulatory capital structure of
49%
- Agreement on fixed monthly customer charges ($11.50 residential, $19.00 general service)
This settlement will result in a modest, one-time charge
associated with certain regulatory assets. Not all interested
parties in the rate review have agreed to the proposed
settlement.
The settlement does not include items such as the transmission
rider, rate design and class cost of service, which will be
addressed as part of the rest of the rate review process. The
next step of the process is the hearing in front of the Iowa
Utilities Board starting on October
4, 2017. The IUB has 10 months from the date of filing
(April 3, 2017) to issue a final
decision. The proposed settlement agreement filing is available on
the Board's electronic filing system. The filing is under docket
number RPU-2017-0001.
About Alliant Energy
Alliant Energy Corporation's (NYSE: LNT) Iowa utility subsidiary, Interstate Power and
Light Company (IPL), utilizes the trade name of Alliant Energy. The
Iowa utility is based in
Cedar Rapids, Iowa, and provides
electric service to 490,000 retail customers and natural gas
service to 220,000 retail customers. The employees of Alliant
Energy focus on delivering the energy solutions and exceptional
service their customers and communities expect – safely,
efficiently and responsibly. Alliant Energy Corporation is traded
on the New York Stock Exchange under the symbol LNT and is a
component of the S&P 500. For more information, visit
alliantenergy.com.
Alliant Energy Forward-Looking Statement
This press release includes forward-looking statements. These
forward-looking statements describe the details of the proposed
rate review settlement. These details are subject to final
approval by the IUB and could change, possibly materially, prior to
final approval. The forward-looking statements included
herein are made as of the date hereof and Alliant Energy and
Interstate Power and Light Company undertake no obligation to
update publicly such statements to reflect subsequent events or
circumstances.
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SOURCE Alliant Energy Corporation