IUC approves Alliant rate increase request

(Des Moines) – The Iowa Utilities Commission (IUC) has issued its final decision and order in Docket No. RPU-2023-0002 regarding a request from Interstate Power and Light Company, a subsidiary of Alliant Energy (Alliant), to increase Iowa retail customer electric and natural gas rates.
On October 12, 2023, Alliant filed with the IUC an application seeking an increase in electric and natural gas rates and requesting a revenue increase of approximately $284 million in electric rates and a revenue increase of approximately $14 million for natural gas rates.
On June 20, 2024, a non-unanimous partial settlement was filed requesting the IUC approve a reduction in the annual electric rate revenue increase to $185 million and a return on equity reduction from 10.0% to 9.65%. For Alliant’s natural gas rate increase, the settlement reduced the requested amount to $10 million. The return on equity would also be 9.65%. Parties to the settlement were the Office of Consumer Advocate, a division of the Iowa Department of Justice; the Iowa Business Energy Coalition; Walmart; and Alliant.
The IUC’s order approves the non-unanimous partial settlement agreement and resolves other contested issues in the case. The order:

• Increases the average residential monthly charge for electric customers from $13 to $15.50. 
• Approves a conditional electric rate base moratorium through October 2029.
• Implements a rate increase cap of 15% for each customer class.
• Denies proposals to assess a management efficiency penalty against Alliant.
• Requires Alliant to file updated responses to its 2012 Management Efficiency Audit and its Stakeholder Engagement and Customer Satisfaction Plan within six months after final rates are implemented.
• Requires Alliant to notify customers of bill impacts as an outcome of the rate proceeding within 30 days of new rates being implemented. 

The IUC ordered Alliant to file compliance filings and associated tariffs within 30 days of today’s order based on the decision and documents in this rate case proceeding. Rate changes for customers will take effect upon the IUC’s review and approval of the compliance tariffs.
Under Iowa law, because Alliant used a future test year to determine rates, the IUC will conduct a subsequent proceeding to determine whether the actual costs and revenues are reasonably consistent with those approved by the IUC. This will occur approximately 15 months after the new customer rates become effective. 
As part of the proceedings in this rate case, the IUC received hundreds of written public comments and held three in-person public consumer comment meetings throughout Alliant’s Iowa service territory and one virtual comment meeting.