IUB Issues Decision in Alliant Energy's Request to Increase Natural Gas Rates
(Des Moines) – The Iowa Utilities Board (IUB) issued its final decision order on December 18, 2019, regarding the request from Alliant Energy – Interstate Power and Light Company (Alliant) to increase its customer natural gas rates in docket RPU-2019-0002.
On March 1, 2019, Alliant filed with the IUB an application seeking an increase in its Iowa retail natural gas customer rates and proposed tariff rate revisions, and requested an overall permanent annual revenue increase of approximately $21 million, or 9 percent of total revenue.
The parties in this rate case entered into and filed a settlement with the IUB that approves a reduction in the overall annual revenue increase to $11.8 million, approves a monthly charge of $2.80 for customers to opt out of having an advanced metering infrastructure (AMI) meter, and approves rates based on a future test year. Today’s IUB order found that the settlement is reasonable in light of the whole record, consistent with law, and in the public interest.
Today’s decision also requires Alliant to file the following within 20 days:
- New compliance tariffs, a final class cost of service study, revenue allocation, rate calculations, and proof of revenue consistent with today’s final decision;
- Calculations showing the approved revenue increase, by class, as a percentage of total revenues and base rate revenues;
- Forecasts by year of the remaining liability of its former manufactured gas plants in its semi-annual reports in docket SPU-2011-0012; and
- A report regarding its Pipeline Corridor Transportation Service Tariff customers, on or before March 1 of each year.
The IUB order also notes that if Alliant implements interim rates as part of its next natural gas rate review, the company has agreed to a return on equity of no greater than 9.6 percent.
As part of the proceedings in this rate case, the IUB received written public comments and held 10 public customer comment meetings in April and May 2019 throughout Alliant’s Iowa service territory.