Alliant rebuffs Culver; rate hike to take effect March 20

Interstate Power and Light Co. on Thursday said it will implement a 12 percent interim electric rate increase on March 20, rejecting Gov. Chet Culver's request for a delay.

In a letter to Culver, the Alliant Energy subsidiary asked for expedited action on its roughly 14 percent rate increase request filed on March 10. The utility said a customer cost management plan included in the proposal would reduce the impact on all classes of customers by $90 million in the first year.

Interstate Power and Light needs the approval of the Iowa Utilities Board to implement the proposed plan. The company said it expects a utilities board decision in early 2011 on its proposed rate increase and cost management plan.

In the letter to Culver, Tom Aller, president of Interstate Power and Light, asked the governor to assist in bringing all intervening parties together to reach an earlier settlement of the rate case. Aller said that would allow the utility to implement the customer cost management plan earlier than planned.