Increase in franchise fee on MidAmerican and Alliant Energy bills started July 30

Alliant Energy and MidAmerican Energy Co. customers in Cedar Rapids will likely notice a slight increase on their energy bills this fiscal year.

Though the Cedar Rapids City Council voted in April to amend its franchise agreements with the two companies to allow the city to increase franchise fees, Alliant customers received notice of the increase July 30, as July is the first month of the new fiscal year.

The franchise fees will increase from 1 to 2 percent for people who use electric and natural gas in Cedar Rapids. Heather Holmes, spokesperson for Alliant Energy, said Thursday that the practice is not unique to the state of Iowa or city of Cedar Rapids, adding Alliant works as a collection agency, so to speak, for 31 other cities in the state. She said there are 66 cities in Iowa, total, who have a similar practice associated with Alliant or other companies.

She said part of the delay in notifying customers was also due to the fact the increase needs to go through the Iowa utilities board and the company needed time to re-do its internal system for the bills.

The money goes straight to the city's general fund budget.

At the time of a unanimous budget vote in March, city officials said the fee increase would increase revenue generated from the fee from $4.7 million to an estimated $8.1 million in the new fiscal year.

Holmes said Alliant energy is directing customers with questions about the fee to call the City of Cedar Rapids.