There is no increase to base electric and natural gas rates through 2020.
To maintain rates at 2017 levels, we reduced our operational and fuel costs.
What are base rates?
- Base rates cover our basic infrastructure, like operation and maintenance of power plants, power lines and substations for supplying electricity.
- Base rates cover pipelines and gate stations for supplying natural gas.
- Base rates constitute roughly ¾ of a residential customer’s electric bill.
- Base rates constitute roughly ½ of a residential customer’s natural gas bill.
- Base rates are set every two years for a two-year period.
What are fuel costs?
- Fuel costs refer to the costs to buy natural gas, coal, biogas or other fuels that are needed to make electricity.
- There is no fuel cost for wind power, which is part of why Alliant Energy is using more wind power every year.
- Fuel costs are roughly ¼ of a residential customer’s electric bill.
- Electric fuel costs fluctuate each year. We file a separate fuel cost plan each year and, after regulatory review, issue a surcharge or refund if our original forecast was significantly lower or higher than the actual costs we incurred.
- For natural gas, fuel costs are roughly ½ of a residential customer’s natural gas bill; the cost of the natural gas itself is a pass-through. We don’t mark-up the cost of the gas.