Alliant Energy three-year freeze, customer credits approved

CEDAR RAPIDS - The Iowa Utilities Board on Wednesday approved a rate plan for Interstate Power and Light Co., Alliant Energy's Iowa electric utility, that continues a three-year base rate freeze through 2016 and includes customer credits.

Alliant Energy filed the plan jointly with the Office of Consumer Advocate, Iowa Consumer Coalition and Large Energy Group.

The rate plan includes $105 million in customer credits, which began May 1. Customers will receive total credits of $70 million in 2014, $25 million in 2015 and $10 million in 2016.

Other portions of the bill will continue to adjust based on actual costs incurred for fuel to generate power and transmission costs.

'This plan benefits our customers, and we are pleased the IUB approved the joint proposal,” said Patricia Kampling, Alliant Energy chairwoman, president and CEO.

Alliant Energy has invested more than $700 million in Iowa's electric system since 2011. The investments will reduce emissions from power plants and support renewable energy, increase electricity generation with the construction of the natural gas-fired Marshalltown Generating Station, and improve customer reliability.

The electric base rate plan approved by the IUB offsets the cost of the investments with savings from the nuclear purchased power agreement that began in February 2014.

Interstate Power and Light has agreed not to file for an electric base increase before Jan. 1, 2017. The other parties to the settlement - the Office of Consumer Advocate, Iowa Consumer Coalition and Large Energy Group - agreed not to make a filing to reduce IPL's base rates before Jan. 1, 2017, unless Interstate Power and Light's return on equity exceeds 11 percent.