Alliant Energy's Iowa energy company reaches partial settlement on pending rate review
"This collaborative process with our customer groups and our company created a fair agreement that supports our objective to provide exceptional service to our customers," said
Under this agreement, the total increase from this base rate review would be 8.6 percent. Spread over the last six years, this increase would have equated to less than 1.5 percent annually. The final bill impact for each customer class will be decided as part of the rest of the rate review process.
Through the rest of 2017, customers will also continue to receive bill credits related to tax benefits and refunds on transmission expenses to offset the base rate increases and maintain competitive customer costs. In addition, under this agreement
Key details of the proposed settlement:
- Final annual retail electric revenue requirement of
- Electric rate base of
$4.2 billion, including deferred tax assets for production tax credits and post-test year additions through the third quarter of 2017. Retail electric rate base of $4.0 billion.
- Blended return on equity (ROE) of approximately 10%. ROE for all non-ratemaking principle assets of 9.6%
- No application of double leverage
- Common equity component of regulatory capital structure of 49%
- Agreement on fixed monthly customer charges (
$11.50residential, $19.00general service)
This settlement will result in a modest, one-time charge associated with certain regulatory assets. Not all interested parties in the rate review have agreed to the proposed settlement.
The settlement does not include items such as the transmission rider, rate design and class cost of service, which will be addressed as part of the rest of the rate review process. The next step of the process is the hearing in front of the Iowa Utilities Board starting on
Alliant Energy Forward-Looking Statement
This press release includes forward-looking statements. These forward-looking statements describe the details of the proposed rate review settlement. These details are subject to final approval by the IUB and could change, possibly materially, prior to final approval. The forward-looking statements included herein are made as of the date hereof and
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Media contact: Justin Foss, (319) 786-4040; Investor contact: Susan Trapp Gille, (608) 458-3956