Interstate Power and Light Co. (IPL), a subsidiary of Alliant Energy Corp., has received an oral decision from the Iowa Utilities Board (IUB) regarding its electric rate case.
In its decision, the IUB approved an annual revenue increase of approximately $114.5 million, slightly less than the $119 million interim rate increase implemented in March. This will result in a refund plus interest to customers.
The IUB approved IPL's proposed cost-management plan, which is expected to reduce the impacts of the rate change on customers. The decision will have the net impact of reducing customers' bills in 2011, but specific impacts are not yet available. IPL's cost-management plan will use funds from projected tax benefits to reduce customers' bills through at least 2013.
Specific impacts for each class of customers, including refund amounts and timelines, will be known after the IUB issues its final written order, which is expected by Jan. 10, 2011. Parties have 20 days to ask the IUB to rehear its decision once the written order is issued.
Pending confirmation in the written order, as part of the IUB's decision, the board approved the following:
– Full recovery of IPL's investment to reduce emissions from the Lansing Generating Station;
– The final step of a five-step process to equalize rates across IPL's Iowa territory;
– Recovery of costs related to IPL's Whispering Willow – East wind farm;
– An automatic adjustment clause that will adjust customer rates based on transmission cost changes approved by federal regulators, if the company accepts certain conditions after receiving the final written order, including a three-year rate freeze; and
– Partial recovery of costs related to the retirement of the company's Sixth Street Generating Station in Cedar Rapids, which was damaged in the June 2008 flooding.
The IUB established a return on common equity of 10% for all capital not related to the Emery Generating Station and the Whispering Willow – East wind farm. The return on common equity for capital related to those projects remains unchanged.
SOURCE: Interstate Power and Light Co.