Alliant rate increase reduced

Alliant Energy's request for a 13 percent electric rate hike has been reduced by state regulators to less than 10 percent, setting the stage for a customer refund.

The Iowa Utilities Board on Thursday, Dec. 15, reduced the company's annual revenue increase to $114.5 million, a reduction of $4.5 million from the $119 million interim rate increase that took effect last March, and well below the company's request of $149 million in additional annual revenue.

The decision was at best a partial victory for Interstate Power & Light, the Alliant subsidiary that serves Iowa customers. Board members agreed with ratepayers in the case that Alliant should not receive a return on investment for much of the $45 million in excess costs for the first Alliant-owned wind farm in Iowa above the levels preapproved by the state.

Alliant's request to recover investments in the flood-ravaged Sixth Street Generating Station in Cedar Rapids was reduced by $3.1 million. The board decided that Alliant should not charge electric customers for all of the investments, because roughly half the plant's output went to steam customers.