Press Release
Alliant Energy investing in Iowa’s green energy future
Company seeks cost recovery for investments in cleaner energy; proposes plan to reduce impact of final rates on customers’ bills
CEDAR RAPIDS, Iowa – March 10, 2010 – Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), will file today a proposal with the Iowa Utilities Board (IUB) to increase its Iowa retail electric rates. IPL’s request seeks to increase annual revenues by approximately $163 million, or 14 percent. The impact of the proposed change in electric rates will vary depending on customer class.
“We are investing nearly $1 billion in 2009 and 2010 to create a clean and reliable energy future for all Iowans,” says Tom Aller, President-IPL. “Our investments focus on expanding renewables, reducing emissions and enhancing reliability. With our investment in the Whispering Willow-East Wind Farm in Franklin County, Iowa, we are powering the equivalent of nearly 50,000 homes with clean, renewable energy. Also, our investments in power plant emissions reduction controls and our electric distribution system are providing Iowans with safe, reliable and environmentally responsible energy.”
Customer impact
The company expects the proposed change in electric rates to impact customers’ electric bills in two stages – interim and final rates.
Interim rates
IPL anticipates implementing interim electric rates on March 20, 2010 and expects interim rates to increase annual electric revenues by approximately $119 million, or 10 percent.
For residential customers, IPL expects interim rates to increase the typical monthly electric bill by approximately $10.62 or 11.7 percent. The impact is based on a monthly energy usage of about 750 kilowatt-hours for residential customers.
Interim rates will remain in effect until the IUB issues a decision on the company’s electric rate request, expected in the first quarter of 2011. If the final electric revenues approved by the IUB are lower than the interim revenue levels, IPL will grant refunds equal to the difference between the interim and final rate levels, plus interest.
Final rates
In final rates, IPL expects the typical residential customer monthly electric bill to increase by an additional two to eight percent or approximately $1.90 to $6.98. The increase will vary by geographic pricing zone for residential customers as IPL is proposing to implement the fifth, and final, step of the electric rate equalization plan previously approved by the IUB in 2006.
Plan to reduce impact of final rates
IPL is also proposing a customer cost management plan designed to reduce the impact of this rate increase for all customer types over the next several years. If approved by the IUB, IPL expects the cost management plan to:
The proposed plan intends to utilize the remaining proceeds from previous asset sales, as well as pending tax benefits, to temporarily offset the impacts of the rate increase.
If the customer cost management plan is not approved, the average final rate increase for all customer classes is expected to be approximately four percent above interim rates.
“We are currently in an increasing cost environment as we transition to a green energy future,” adds Aller. “We recognize that while these types of investments provide our customers with safe, reliable and cleaner energy, there are cost impacts on our customers. Our proposed customer cost management plan would reduce the impact of final rates on our customers in the near term, which is important given the difficult economy in which we still find ourselves.”
Energy efficiency programs
Customers can also manage their energy costs through a variety of energy efficiency actions and programs. “We encourage our customers to take advantage of the number of programs our company offers to help customers further manage their energy costs,” says Aller. “We have updated our Web site to make these options even easier to understand and implement.”
Both no-cost and low-cost options for customers to improve their energy efficiency include:
Additional information for customers on the rate case and energy-saving ways to reduce the impact of the proposed rate changes is available at www.alliantenergy.com/iowarates. Documents relating to this filing can be found on the IUB Web site at www.iowa.gov/iub.
About Alliant Energy
Alliant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and 412,000 natural gas customers.
Providing its customers in the Midwest with regulated electric and natural gas service is the company’s primary focus. Interstate Power and
Light, the company's Iowa and Minnesota utility subsidiary, serves approximately 527,000 electric and 234,000 natural gas customers. Alliant
Energy is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the company’s
Web site at www.alliantenergy.com.
Alliant Energy Forward-Looking Statement
This press release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as “proposed,” “expected,” “anticipates,” “believes” or other words of similar import. Similarly, statements that describe expected outcomes in the rate case filed with the IUB are forward-looking. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by the following factors, among others:
These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and Alliant Energy and IPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.
Alliant Energy Media Contact: Ryan Stensland, (319) 786-4171
Alliant Energy Investor Relations Contact: Susan Trapp Gille, (608) 458-3956
