Alliant proposes higher rates for Iowa electric and natural gas ... - The Gazette

Alliant proposes higher rates for Iowa electric and natural gas customers | The Gazette

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If OK’d by regulators, higher rates go into effect starting October 2024

Alliant Energy’s Iowa utility is proposing a rate increase for its electric and gas customers it says comes to about $150 a year — with more to come later.

Interstate Power and Light Company is requesting a 7.7 percent increase to residential customers’ total electric bills. If approved by the Iowa Utilities Board, the hike would go into effect in October 2024. That corresponds to about $10 extra a month, said spokesperson Morgan Hawk.

An additional rate increase of about 5.7 percent would follow in October 2025, which breaks down to about $7 a month.

There’s only one phase of rate increases for natural gas customers: a 5 percent increase that, if approved, would start in October 2024. It would add about $3 more to customers’ total bills.

The utility is asking to raise its rates to cover added operation costs, support grid resiliency and allow future growth, Hawk said.

IPL is moving overhead power lines underground to decrease the number and the length of power outages. Frequency and duration of Alliant outages have decreased by about 30 percent over the last decade as more lines have moved underground, Hawk said.

The utility also is expanding its fiber network among several facilities in Iowa. These upgrades ensure reliable communication throughout the energy system during emergencies and outages.

Alliant is diversifying its energy mix by incorporating more renewable energy into its portfolio. Its Clean Energy Blueprint calls for the retirement of its coal fleet, increased use of renewable resources and reduction of its emissions in Iowa. Green energy is more cost-effective for customers long-term, creates jobs and tax revenues for communities, and is cleaner for the environment, Hawk said.

“The proposed increases really reflect our investment to continue building a more reliable, sustainable and resilient energy future here in Iowa,” he said.

The utility’s last rate increase was requested in 2019, when electric rates jumped by 8.1 percent and gas rates by 9.7 percent. Rates were stagnant throughout the COVID-19 pandemic, the 2020 derecho, inflation ebbs and flows and other challenges, Hawk said.

IPL notified customers of its plans Wednesday and said it would submit plans Thursday to the utilities board. A 10-month regulatory process will ensue, starting with public meetings:

Brittney J. Miller is the Energy & Environment Reporter for The Gazette and a corps member with Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues.

Comments: (319) 398-8370; brittney.miller@thegazette.com

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