March 29, 2024
Global Renewable News

ALLIANT ENERGY CORPORATION
Alliant Energy continues clean, reliable energy investments

May 24, 2016

Alliant Energy's Wisconsin utility filed a request with the Public Service Commission of Wisconsin (PSCW) to adjust electric and natural gas rates.

The request resulted from collaboration with the Citizens Utility Board and the Wisconsin Industrial Energy Group and must be approved by the PSCW to become effective. It is Alliant Energy's first request to increase retail electric and natural gas base rates since 2010.

The request is designed to cover the investments in Alliant Energy's Wisconsin electric and natural gas systems, including:

  • Improvements in the environmental profile of Columbia Energy Center and Edgewater Generating Station
  • Continued safety and reliability investments
  • Expansion of pipeline infrastructure for customers to take advantage of the low cost of natural gas

The electric cost increases are offset in part by reductions in projected fuel costs for 2017, which are included in this filing.

Alliant Energy is requesting an increase in:

  • Electric revenues of 1.1 percent, or $12.9 million
  • Natural gas revenues of 12.9 percent, or $9.2 million (6 percent average bill impact)

"We've kept our eye on costs and taken a thoughtful approach to investing," said John Larsen, President of Alliant Energy's Wisconsin utility. "This energy rate adjustment maintains competitive rates while allowing us to continue on a path to cleaner and more reliable energy."

Under the proposal, a typical electric residential customer using 700 kwh/month would see a phased-in increase of 4.7 percent, or $4.39/month by 2018. The bill impact includes a gradual increase in the fixed charge, currently $7.67, to $12 in 2017 and $18 in 2018. Alliant Energy's residential fixed charge has been in the $5-$8 range since 1995. Commercial and industrial rates would decrease slightly.

New pricing plan options are also being proposed to offer more customer choice: Nights and Weekends, ideal for those who can limit daytime weekday use, and Fixed Bill, which gives residential customers a set bill amount for 12 months with no true-up. The green energy option, Second Nature, would also be offered at a lower cost, dropping from $.02/kwh to $.014/kwh.

A residential natural gas customer using 772 therms/year would see an increase of 7.6 percent, or $3.47/month by 2018.These rates, if approved, would still be lower than 2010 levels.

The PSCW review is expected to be completed in the fourth quarter of 2016. These rates, if approved, would become effective January 1, 2017, and extend until the end of 2018. Alliant Energy will file its 2018 electric fuel cost plan in 2017.

Summary of key financial elements of retail electric and gas rate increase proposal

The revenue requirement included in this proposal resulted from collaboration with the Citizens Utility Board (CUB), Wisconsin Industrial Energy Group (WIEG) and PSCW Staff. As a result of this collaborative process, CUB, WIEG and PSCW Staff will not contest the stipulated revenue requirements. The proposal contains the following provisions:

  • Increase in retail electric rates of $12.9 million through 2018
  • Increase in natural gas base rates of $9.2 million through 2018
  • Authorized return on equity (ROE) of 10 percent
  • Continuation of the ROE sharing mechanism that has been in place since 2013
  • Common equity component of regulatory capital structure of 52.23 percent in 2017 and 52.20 percent in 2018
  • Proposed ATC and WPL reorganization consistent with PSC dockets 137-BE-100 and 6680-AU-118
  • Proposed change to depreciation rates
  • Retail electric and gas rate base of $3.0 billion in 2017 and $3.1 billion in 2018
  • Escrow treatment of transmission charges
  • Use of transmission escrow and continued use of the conservation escrow to offset base rate cost increases
  • Allowance for Funds Used During Construction (AFUDC) treatment for 100 percent of the Riverside Energy Center Expansion

The proposal is available on the PSCW's electronic filing system under Docket 6680-UR-120.

For more information

Alliant Energy Corporation
4902 N Biltmore Ln
Madison Wisconsin
United States 53707-1007
www.alliantenergy.com


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