Alliant finishes its case for a rate hike

    Alliant Energy has asked the Iowa Utility Board for a 16 percent increase in electrical rates from 2009 levels for residential customers. Alliant presented its case to the board at an evidentiary hearing that spanned four days last week. The Office of Consumer Advocate opposed the rate increase, and presented its case at the hearing as well.

    Alliant spokesman Ryan Stensland said his company called 12 witnesses to testify, including the company?s president, employees in charge of its wind farms, and those who prepare taxes for the company. The Office of Consumer Advocate, which is a branch of the Iowa Attorney General?s Office, called witnesses, such as an economist, to testify on its behalf. The Iowa Utilities Board consists of three regulators who are appointed by the governor. Stensland said it may deliberate for months before making a decision.  

    Stensland said that whether Alliant receives a rate increase or not, it is responsible for paying for the hearing. The time that the board and the Office of Consumer Advocate spend on the case is billed to the electrical company.

    ?We carry the burden, and we know it?s part of the process,? said Stensland. ?We welcome the process. The Office of Consumer Advocate is doing its job.?

    Compared to their bills in 2009, Alliant customers are paying about 8 percent more for electricity since March 20, when the interim rate increase went into effect. Alliant has asked that its rate increase be phased in over a period of three years. If the board acquiesces to Alliant?s request, Stensland said that the second stage of the rate increase will take effect in the first quarter of 2011. If and when that occurs, residential customers will pay 16-17 percent more for electricity than they did in 2009.    

     Stensland said the exact increase for each customer will depend upon the class into which he falls. If the utility board approves the full increase, industrial and general service customers will experience rate hikes of 13-14 percent. However, customers who purchase only street lighting will not see their rates rise at all.

For the full story, see the Sept. 30 edition of The Washington Evening Journal