Investing in our customers and communities
Since 2011, we have kept retail electric base rates flat and managed customer costs through credits, efficiencies and customized solutions. On April 3, 2017, we requested an increase in electric base rates to support investments in our communities that are:
- Modernizing and strengthening the power grid – improving reliability, resiliency and security of the power grid and enabling the integration of renewables and distributed energy resources.
- Advancing cleaner energy – utilizing a new highly-efficient, natural gas facility in Marshalltown and making important reductions in emissions.
- Providing innovative customer solutions – expanding rate options and providing tailored solutions to increase flexibility and help attract new businesses to Iowa.
- Strengthening our communities – investing in our communities, creating jobs and helping drive economic growth through the energy solutions we provide.
Residential electric: 406,000
Residential natural gas: 199,000
Business electric: 82,000
Business natural gas: 25,000
2,134 employees in Iowa
1,420 retirees live in Iowa
One Alliant Energy employee creates 1.7 additional jobs statewide
source: Jon Muller, Economist, Iowa School Finance Information Services, Inc.
$3.1 billion invested in Iowa from 2010-2016
290,000 employee volunteer hours
$10 million giving invested in Iowa since 2010
$47 million annual state property taxes
4,500+ suppliers, including veteran, women and minority-owned businesses all across Iowa
Alliant Energy’s Iowa utility filed its proposal with the Iowa Utilities Board on April 3, 2017. This is the company’s first increase in retail electric base rates since 2011.
The proposal would increase overall rates by 11.6%. Tax credits and transmission refunds will reduce the effect of the increase on customer bills in 2017 and 2018.
The increase will come in two steps. The first is on April 13, 2017 and the second takes effect when the Iowa Utilities Board makes a final ruling on the proposal. This could come in late 2017.
The first step (Interim Rates) is about 2/3 of the final request. This increase is subject to refund if the Utilities Board approves a final increase that is lower than the interim increase.
The second step (Final Rates) is subject to approval from the Utilities Board.
Frequently asked questions about the increase
Q: How do the credits and refunds help customers?
- In 2017 and 2018, Alliant Energy will provide more than $150 million in bill credits to our Iowa customers.
- Overall, these credits more than offset the total interim rate increase for 2017 that will go into effect on April 13, 2017. Moreover, in 2018, we anticipate that credits will offset approximately 30% of the total proposed rate increase. The final total increase depends on the decision by the Iowa Utilities Board. With these credits in 2017 and 2018, total credits received by Alliant Energy’s Iowa electric customers since 2011 will total more than $630 million.
- The credits will be applied to customers’ bills automatically.Because of the credits and refunds, the overall interim increase to the average residential bill is only 1% in 2017.
- Alliant Energy is making critical investments in our Iowa communities while minimizing the cost impact to our customers. These credits help maintain that balance.
Q: Why are there different increases for different customer?
Our rates are based on the cost to provide service to customers. Given that different types of customers (residential, commercial, industrial) use energy in varying ways, the cost to serve them is different. For example, certain customers use a lot of energy all at the same time. This requires additional equipment to meet their needs, whenever they need it, which in turn costs more.
Q: Why are standby customers getting such a significant decrease of 23%?
The way this group of customers uses our power grid has changed significantly since we last studied group usage in 2009, which supports the revised/proposed rate. These are large industrial customers that don’t need energy from Alliant Energy all the time, but do need emergency backup service to meet their large demand.
1. Revised Time of Day option
We are proposing to reduce the cost for residential and small business customers to participate in our Time of Day program. Metering technology has improved and allowed this option to be more cost-effective. If approved, we will remove the monthly meter charge for customers to participate. This charge is currently $3.35 a month.
- Time of Day customers can save money by controlling when they use energy on a daily basis. By using less energy during the weekday peak hours (7 a.m. –8 p.m. CST) and more during the off-peak hours and all day on the weekends, customers will spend less for their energy.
2. Small Customer Demand Rate Pilot
We are proposing a new rate option for residential and small business customers who want to control how much energy they use all at once (demand), and pay based on that. By spreading out energy use throughout a day, customers lower their peak demand and put less strain on the power grid. This lowers costs to supply energy. This option rewards customers who are able to avoid peaks and even out their energy use. To participate, customers will get a new meter that also measures demand.
- Customers can see how their bill would go down or up based on their usage before deciding to choose the demand rate.
- The rate includes three separate pieces: customer charge, demand charge and energy use. This is very similar to the rate structure for our largest customers.
3. LED lighting
- We are proposing new options for customers who pay for streetlights or area/security lights.
- We are proposing new decorative style light fixtures and new decorative style poles for streetlights.
- We are also proposing new options to finance the cost of the new decorative lights.
- We are also continuing our work to move to exclusive use of LED lighting. We started this transition several years ago and hope to be finished in the next couple of years.
4. Economic Development Rate
We are proposing a new rate option to promote reuse of closed or shuttered industrial facilities in the communities we serve. This specialized effort will target specific types of facilities and customers.
- The goal of the rate is to encourage new businesses to use existing facilities, thereby reusing infrastructure that is already built.
- After the rate expires (5 years, as proposed) the customer is then on the same rate as all other customers and helps to further defray future utility costs while also adding new jobs and local tax revenues.
- To learn more, email email@example.com.
5. Limited Income Rate Pilot
We are proposing a new program that will forgive past due bills for qualifying customers. While on the program the past due balance will be forgiven at a rate of 1/12 a month. The past due balance will be completely forgiven after one year, excluding late fees. Participating customers will not be subject to collections while in the program.
To be eligible for the pilot program, customers must:
- Make consistent monthly payments while enrolled in the program
- Have income at or below 175% of the federal poverty guideline
- Have more than $100 past due
- Have a balance more than 60 days past due
- Live in or near Cedar Rapids, Dubuque or Ottumwa
- Not receive natural gas service from Alliant Energy
6. Second Nature™ price reduction
Because of additional low-cost wind energy in Iowa, we are proposing to reduce the cost for residential customers to participate in our Second Nature™ program by half.
7. Electric Vehicle (EV) Charging Rate
- We are proposing a new option for residential and small business customers with electric vehicles for personal or business use.
- Customers can install a second meter to charge electric vehicles with Time of Day pricing.
- This gives added flexibility to customers who do not wish to use Time of Day pricing for their home or business.
We’ve created energy management options to fit all sizes of homes and budgets. Whether you want to reduce your home energy use, improve comfort, or try out a new pricing plan, we can help you decide which options will be most effective for you.
Ways to save
Help us meet electricity needs during peak demand times - and we'll pay you for participating! A small switch on your air conditioner is all that's needed.
Recycle your old working refrigerator, freezer or room air conditioner and get up to $50 on the spot from Alliant Energy. We’ll do all the heavy lifting!
Kick-start your monthly energy savings with a Home Energy Assessment. It’s worth up to $400, but free to all eligible Alliant Energy customers.
Lower your energy bill when you invest in energy-efficient equipment. Receive a money-saving rebate for a qualified purchase.
We offer a variety of payment options to help you gain convenience and control of your account.
Free! Manage your account online anywhere at any time. View your bill, manage your energy use and sign up for payment options.
Instant phone or online payment
Free! Pay by phone or online with a one-time transfer from your bank account.
Free! Your payment is automatically withdrawn from your bank account each month.
Free! Pay the same amount every month. Your payments are averaged to spread heating and cooling costs across the entire year.
Compare payment options tool
This simple tool will help you decide which electronic payment option is best for you.
Tuesday, May 23, 2017, at 5:30 p.m.
Bridgeview Center Conference Room
102 Church Street, Ottumwa, Iowa
Wednesday, May 24, 2017, at 5:30 p.m.
Clarke High School Auditorium
800 N. Jackson Street, Osceola, Iowa
Thursday, May 25, 2017, at 5:30 p.m.
Muse-Norris Conference Center on the North Iowa Community College Campus
500 College Drive, Mason City, Iowa
Tuesday, May 30, 2017, at 5:30 p.m.
Peosta Community Centre
7896 Burds Road, Peosta, Iowa
Wednesday, May 31, 2017, at 5:30 p.m.
Spencer Area Activity Center
104 East 4th Street, Spencer, Iowa
Thursday, June 1, 2017, at 5:30 p.m.
Iowa Hall, Rooms 316A and 316B on the Kirkwood Community College Campus
6301 Kirkwood Blvd. SW, Cedar Rapids, Iowa
Tuesday, June 6, 2017, at 5:30 p.m.
Orpheum Theatre on the Iowa Valley Community College Campus
220 E. Main Street, Marshalltown, Iowa
Thursday, June 8, 2017, at 5:30 p.m.
McAleer Hall at Holy Family Parish
1111 Avenue E, Fort Madison, Iowa
Q: When does the rate increase take effect?
A: We filed the rate increase proposal on April 3, 2017. By Iowa law, we make an interim change in rates ten days later – April 13. We will adjust our final rates after the Iowa Utilities Board reviews the proposal. We expect this review to finish on or before February 2018.
Q: What happens if the final rates approved by the Utilities Board are less than the interim rates?
A: We believe our request is based on prudent and beneficial investments for our customers. We will refund all extra money collected, plus interest, back to customers.
Q: Can customers provide comments on proposed increase and proposed new rate options?
A: We welcome feedback from our customers. Customers can email comments or questions to firstname.lastname@example.org. Customers can also participate in the state-wide comment meetings.
Q: When is the last time Alliant Energy increased rates in Iowa?
A: Our last base rate increase took effect in 2011. In that time, we’ve made major investments in our power grid to make it more reliable and we’ve also made investments to make the energy we produce cleaner.
Energy Cost line item
The Energy Cost line item is the cost for the fuel to generate or purchase electricity, and it adjusts monthly.
Regional Transmission Service
Learn more about the 'Regional Transmission Service' line item on your bills. What is it and how does it impact your bill?
Proposed interim tariffs
These tariffs take effect on April 13, 2017. They will stay in effect until the Iowa Utilities Board rules on the proposed increase.
Proposed final tariffs
These tariffs are subject to approval from the Iowa Utilities Board, which could come in late 2017 or early 2018.