Alliant to increase rates in early 2019

The Iowa Utilities Board has approved a settlement allowing Alliant Energy – Interstate Power and Light Company to increase its base rate 5.94 percent, generating about $14 million in revenue.

Alliant Energy had sought a larger increase – 8.43 percent – which would have brought in $19.8 million. The utility had also sought to increase residential customer monthly charges from $13 to $16, but the settlement allowed for no such increase. This would have applied to residential customers.

However, general service monthly customer charges will increase from $30 to $34. This charge applies to small and medium-sized businesses, but does not apply to residential customers.

Alliant's natural gas annual revenue will increase from $234.9 million to $248.9 million.

In a news release, Alliant stressed that the base rate increase will see 'little to no change in the costs for safe and reliable natural gas service.”

'Our customers will continue to benefit from the work we are doing to maintain more than 5,000 miles of natural gas pipelines in Iowa,” said Terry Kouba, vice president of Iowa operations for Alliant Energy. 'We're replacing older materials, enabling more efficient safety inspections and expanding service for customers.”

Alliant customers have already been paying an extra 5 percent on their base rate since May, when Alliant applied to raise its base rate 8.43 percent, and applied an interim rate increase until its request was heard. That means customers will see a 1 percent increase from their current rates starting in early 2019.

Alliant's news release indicated the increase would amount to $1.50 per month for a typical residential customer, raising it to $57. That is still lower than the typical resident's bill from 2013 when it was $66, reflecting the higher cost of natural gas at that time. Alliant was able to lower charges since 2013 thanks not just to falling gas prices but also due to reductions in corporate taxes and customers employing efficiency upgrades.

Alliant spokesman Justin Foss said the cost of the natural gas itself is 60-70 of the gas bill. The rest of the bill pays for fixed costs such as all those involved in transporting the gas like the pipes and maintenance staff.

Alliant filed its rate adjustment application with the board on May 2. The board received written comments and held six public meetings throughout Alliant's service territory in May and June. Before the scheduled evidentiary hearing in October, Alliant reached a unanimous settlement agreement with the three parties that had initially objected to the terms of its rate increase request. Those parties were the Office of Consumer Advocate, a division of the Iowa Department of Justice; WoodRiver Energy, LLC; and the Iowa Business Energy Coalition.