Alliant’s rate increase is unacceptable

If you thought that last January's ruling by the Iowa Utilities Board (IUB) was the end of it, think again. Make no mistake, the CEOs of Alliant will not give up on their quest to boost their profit margins just because we're in a global recession. On March 10, Alliant filed another request with the IUB to increase electricity rates by 13.8 percent. Effective March 20, 2010, an interim rate increase of 11.7 percent will be applied toward its customers in Iowa. Under Iowa law, Alliant is allowed to implement an interim rate before the final ruling by the IUB.

If the IUB rejects their proposal in its entirety, Alliant would be required to reimburse its customers the 11.7 percent increase with interest.

In January, the IUB rejected Alliant's previous proposed rate hikes, but allowed them to keep their interim rate hike. It would not surprise me if Alliant was betting that the outcome for this proposal will turn out the same.

I believe we have the ability to stop this, but in order to do that we must make it absolutely clear to the IUB that this rate hike is simply unacceptable.

We must also let our legislators know that allowing utility companies to impose an interim rate hike before a decision is rendered is also unacceptable. This law basically gives utility companies the power to borrow your money without permission.

In this difficult economic time, when people are working hard to save their mortgages, Alliant's proposal is unconscionable.

David Johnson

City Councilman

City of West Branch