There will be no increase to base electric and natural gas rates through 2020 if a proposal we filed with the Public Service Commission of Wisconsin (PSCW) is approved.
To maintain rates at 2017 levels, we reduced our operational and fuel costs.
We’re also issuing bill credits through the end of the year due to federal tax reform.
What will customers see on their bills?
Residential customers will see these tax cut bill credits:
- one-time fixed amount credits during the June bill cycle
- $22.92 for electric customers
- $6.99 for natural gas customers
- monthly credits calculated based on usage July through December
- $4.11 for a typical electric customer using 700 kWh/month
- $1.15 for a typical natural gas customer using 700 therms/year
Business customers will see bill credits as well.
Why might the base rates stay flat?
- We are proposing to keep our base rates flat in 2019 and 2020
- We are saving money in part by using electric generation plants with lower-cost fuel sources:
- West Riverside Energy Center, Beloit Wis., will use natural gas when it comes online, which is cleaner and less costly than coal-fired generation.
- Forward Wind Energy in Dodge and Fond du Lac counties has no fuel costs.
What is the public review process?
The Public Service Commission will review the proposal and make a decision near the end of 2018.
Visit psc.wi.gov and enter docket number 6680-UR 121 in the search field on the E-Services portal.
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. We are proposing to freeze base rates for 2019 – 2020.
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.