Since 2010, Alliant Energy’s electric base rates have remained stable and natural gas base rates have decreased. Alliant Energy currently has the lowest residential electric rates among the five investor-owned utilities in Wisconsin, and commercial and industrial rates are also among the lowest in the state.
Our rates are set by the Public Service Commission of Wisconsin, which recently approved our proposal to keep base electric rates unchanged and reduce natural gas base rates through the end of 2016. The natural gas base rate will be reduced $5 million in 2015 and maintained at that level through 2016.
This rate stability, known as a rate freeze, applies to base rates. Base rates cover our basic infrastructure, like operation and maintenance of power plants, power lines and substations. The base rate freeze does not take into account any changes in electric fuel costs. Base rates constitute roughly three quarters of a residential customer’s bill; fuel costs account for roughly one quarter.
Each year we file a plan for recovering the cost of fuel to make electricity. We are requesting an overall rate increase of 5.3% for a total amount of $54 million to cover increased costs of fuel to make electricity in early 2014 and forecasted for 2015.
We are also proposing to change the rate we currently pay to buy excess power from Wisconsin customers who own electric power generation and have a net metering agreement. If you have questions about a net metering agreement, please visit alliantenergy.com/sellmypower, call our Distributed Resources Hotline at 1-800-972-5325 or email us at email@example.com.
As part of its review process for our fuel cost plan, the PSCW will schedule technical and public hearings at its offices in Madison, Wisconsin. To obtain more specific information about the hearing schedule or regulatory process, please call the PSCW at 1-800-358-9246 or visit psc.wi.gov and search docket number 6680-FR-107.
If you have questions about our proposal, please call us at 1-800-ALLIANT (800-255-4268).