Wisconsin rates for electric and natural gas

In April 2023, we filed a rate review application with the Public Service Commission of Wisconsin (PSCW) covering years 2024-25. We take great pride in our commitment to delivering safe, reliable energy to the customers and communities we serve, 24/7 and 365 days a year. This filing reflects our commitment to make things better for customers through smart investments that also create a cleaner and more cost-effective energy future.

If approved by the PSCW, our rate adjustment would add:

• About $13 a month to the average residential electric customer’s bill in 2024, and about $5.80 in 2025.
• About $5.30 a month to the average residential natural gas customer’s bill in 2024. Natural gas rates will be held flat in 2025.

With these adjustments:

• Electric residential customers will have experienced, over the last decade, an average rate increase of 4.4%, year-over-year.
• Natural gas residential customers will have experienced, over the last decade, an average rate increase of 2.1%, year-over-year.

Visit myaccount.alliantenergy.com to see your individual usage.

Pending PSCW approval, we anticipate changes to our electric and natural gas base rates for all customers in Wisconsin will take effect January 1, 2024. As part of its review process, the PSCW will schedule technical and public hearings. For specific information about the hearing schedule or regulatory process, call the PSCW at 800-225-7729 or visit psc.wi.gov and search docket number 6680-UR-124.

Investing in a cleaner, cost-effective and diverse energy portfolio.

We are following the plan outlined in our Clean Energy Blueprint for Wisconsin to increase customer value and avoid long-term costs. In addition to adding nearly 1,100 MW of solar-generated energy in the state by mid-2024 and retiring the Edgewater coal-fired facility by mid-2025, we’ve announced plans to develop 274 MW of energy storage by the end of 2025.

These long-term investments are driven by lower lifetime costs for sustainable energy solutions, improvements in generation technology and the availability of new financial benefits associated with development projects.

Boosting energy security and reliability.

We continue to prioritize safety and security amid growing threats to America’s energy infrastructure. Our rate adjustment accounts for necessary investments to protect generation and distribution assets from the growing physical and cybersecurity threats – such as extreme weather events, domestic terrorists and global bad actors.

Our smart investments in zero-fuel-cost energy sources also increase energy security while reducing exposure to fuel price volatility in the global market. Combined with new energy storage assets, distribution line undergrounding and other grid strengthening efforts, we are building a safer and more resilient energy network to deliver the energy customers need.

Supporting customers and expanding energy options.

Building off the success of our first community solar garden in Fond du Lac, we are expanding renewable energy options. This means developing additional customer-hosted and community solar projects – like our Janesville Community Solar Garden.

When it comes to supporting customers, our rate review advances a variety of comprehensive reforms, such as:

• Doubling funding for our voluntary energy efficiency programs designed to help customers eliminate energy waste while saving money on their bills.
• Leveraging our new online rate calculator to help customers choose the best rate plan based on their current usage.
• Providing additional relief to LIHEAP customers through a new “Energy Care Credit” of approximately $80 a year.
• Making our Arrears Management Program a permanent offering to help Wisconsin customers get caught up if they fall behind on their bills.

When will the adjusted rates go into effect?

We expect the PSCW to conclude its review of our filing later this year. If approved, the adjusted rates would go into effect January 1, 2024.

Will my rates go up again the following year?

Our filing includes a two-step adjustment to electric base rates for 2024 and 2025 along with a single adjustment to natural gas base rates in 2024. Our next rate review will likely be filed in spring 2025 for rate years 2026-2027.

What options do customers have to reduce electric/natural gas bills?

First and foremost, we encourage all customers to consider energy efficiency improvements that can reduce the amount of energy they use. A list of simple, do-it-yourself cost-saving tips can be found online at alliantenergy.com/waystosave.

Customers, including those with an electric vehicle, might benefit by enrolling in a different rate plan that better matches their energy use, such as our Nights and Weekends or Peak Nights and Weekends programs. To explore rate plan options, use our personalized rate calculator at alliantenergy.com/nightsandweekends.

Additionally, we offer several programs to help customers reduce their energy use. Our Smart Hours program is one cost-saving tool available to customers with a smart thermostat. Signing up adds value, convenience and choice to the services we provide. Customers enrolled in Smart Hours receive rewards for participating in the program which reduces energy use at peak times.

To explore options, visit My Account.

What is Alliant Energy doing to manage energy costs?

To manage costs, we continue to operate our system as efficiently as possible. Our investments in new technology, such as our Advanced Distribution Management System (ADMS) and Enterprise Work and Asset Management program (EWAM), will further enhance efficiency and system operations.
Another key component of our long-term plan to manage costs involves our focus on developing zero-fuel-cost generation resources and minimizing risks associated with fuel cost volatility. Following our Clean Energy Blueprint, we are retiring older generation facilities and replacing the energy generation with a cleaner and more diversified energy portfolio to help avoid future costs that we would have incurred had we continued ‘business as usual.’

What specific investments are you making to the energy grid? What are the benefits?

We are focused on strengthening our distribution system to protect against threats, boost energy security and support our customers. This includes:

• undergrounding distribution lines, which reduces the frequency and duration of outages, decreases long-term operational costs and improves safety.
• installing an Advanced Distribution Management System (ADMS), which will increase our insights into – and enable – a more dynamic and efficient operation of our energy system. With ADMS, our distribution system operators and dispatchers will have greater access to real time data across our service territory. They will be able to work with more intelligent grid devices and guide field crews in restoring service to customers much faster than we can today.
• adding batteries, microgrids, and other value-added resources to improve customer reliability, system resilience and circuit load management.
• bolstering our communication technologies by deploying fiber communication. Of all the changes affecting the industry, this investment is one of the most impactful in order to manage an increasingly complex grid that includes more and more distribution-connected devices, such as batteries and electric vehicle chargers. Among other benefits, our fiber communication will increase the robustness and cyber security of our communication system and, in certain areas, replaces aging systems.

Why are you retiring the Edgewater and Columbia coal plants?

Changing energy costs, customer sustainability goals and more advanced energy technologies are driving the transition to cleaner energy, like renewables and natural gas. For decades, coal generation was the best option in terms of cost-effectiveness and reliability. More recently, other energy sources have become more cost-effective. Rather than investing hundreds of millions to maintain older, more expensive generation facilities, it is more cost-effective to invest in cleaner energy sources such as solar and battery energy storage.

What updates are you proposing to net metering?

We’ve proposed creating a new advanced net metering tariff called “Power Partnership” that will more effectively account for all distributed generation customer transactions and support additional customer investments in clean energy resources while keeping costs down for all.

The Power Partnership we’ve proposed would:

• enroll customers with new systems, 20kW or smaller, in an hourly net metering model (rather than monthly netting). This change more accurately reflects their energy use and better compensates customers for the energy they contribute to the grid.
• allow customers on the current net metering tariff (PgS-3) to enroll in the new Power Partnership tariff.
• increase the reimbursement rate to customers for energy exported to the grid. Under the proposed Power Partnership model, the reimbursement rate would increase from 7.1 cents per kWh for all energy exported to the grid in 2023 to 7.9-13.5 cents per kWh in 2024, depending on the pricing period.
• ensure homeowners that generate solar energy at peak times can offset their consumption at the peak retail rate or sell energy they don’t use to Alliant Energy at the peak buyback rate. By incentivizing generating customers to maximize production and minimize energy use during peak hours, the overall efficiency of the electric system will be improved.
• reduce barriers to solar access by having Alliant Energy pay for any distribution system upgrades needed to connect customers’ solar to the grid. This update can lower upfront costs for customers and reduce payback times compared to requiring customers to foot those bills.

We see these updates to improve transparency and enhance overall grid efficiency as a great benefit for all of our customers. As a leader in Wisconsin’s transition to cleaner, more reliable and more cost-effective energy generation, we’re excited to partner with our customers and leverage new technologies to power what’s next.

What is a fuel cost plan?

The Public Service Commission of Wisconsin (PSCW) requires utilities to file an annual forecasted fuel cost plan which is reviewed by the PSCW and used to establish the utility rates for the following calendar year. The PSCW annually reviews actual monitored fuel costs for over- or under-collection and may approve bill credits or adjustments to reconcile differences. In Wisconsin, fuel costs are a pass-through, meaning utilities such as Alliant Energy do not profit.

What is the “Fuel Adjustment” on my bill?

In 2022, the Public Service Commission of Wisconsin (PSCW) approved an adjustment to Alliant Energy’s 2023 electric fuel costs and a reconciliation of 2021 fuel costs, effective Jan. 1, 2023. The fuel cost adjustment reflects the need to align higher-than-expected fuel costs with plans the PSCW previously approved.

When will 2022 fuel costs be reconciled?

In March 2023, we filed the required application with the PSCW to reconcile our under-collection of 2022 fuel costs. The higher-than expected fuel costs in 2022 were driven by various factors including higher natural gas and energy prices. In order to reconcile the under-collection, we requested to implement a fuel surcharge adjustment of $0.004875/kWh over a 27-month period, effective October 1, 2023. If approved by the PSCW, residential electric customer bills would increase by approximately 3.1%, on average; commercial and industrial electric customer bills would increase by approximately 5.5%, on average.

As part of its review process, the PSCW will schedule technical and public hearings in Madison, Wisconsin. To obtain more information about the hearing schedule or regulatory process, visit psc.wi.gov, and search docket number 6680-FR-2022.