MADISON, Wis., May 20, 2016 /PRNewswire/ -- Alliant Energy's Wisconsin utility filed a request today with the Public Service Commission of Wisconsin (PSCW) to adjust electric and natural gas rates.
The request resulted from collaboration with the Citizens Utility Board and the Wisconsin Industrial Energy Group and must be approved by the PSCW to become effective. It is Alliant Energy's first request to increase retail electric and natural gas base rates since 2010.
The request is designed to cover the investments in Alliant Energy's Wisconsin electric and natural gas systems, including:
- Improvements in the environmental profile of Columbia Energy Center and Edgewater Generating Station
- Continued safety and reliability investments
- Expansion of pipeline infrastructure for customers to take advantage of the low cost of natural gas
The electric cost increases are offset in part by reductions in projected fuel costs for 2017, which are included in this filing.
Alliant Energy is requesting an increase in:
- Electric revenues of 1.1 percent, or $12.9 million
- Natural gas revenues of 12.9 percent, or $9.2 million (6 percent average bill impact)
"We've kept our eye on costs and taken a thoughtful approach to investing," said John Larsen, President of Alliant Energy's Wisconsin utility. "This energy rate adjustment maintains competitive rates while allowing us to continue on a path to cleaner and more reliable energy."
Under the proposal, a typical electric residential customer using 700 kwh/month would see a phased-in increase of 4.7 percent, or $4.39/month by 2018. The bill impact includes a gradual increase in the fixed charge, currently $7.67, to $12 in 2017 and $18 in 2018. Alliant Energy's residential fixed charge has been in the $5-$8 range since 1995. Commercial and industrial rates would decrease slightly.
New pricing plan options are also being proposed to offer more customer choice: Nights and Weekends, ideal for those who can limit daytime weekday use, and Fixed Bill, which gives residential customers a set bill amount for 12 months with no true-up. The green energy option, Second Nature, would also be offered at a lower cost, dropping from $.02/kwh to $.014/kwh.
A residential natural gas customer using 772 therms/year would see an increase of 7.6 percent, or $3.47/month by 2018.These rates, if approved, would still be lower than 2010 levels.
The PSCW review is expected to be completed in the fourth quarter of 2016. These rates, if approved, would become effective January 1, 2017, and extend until the end of 2018. Alliant Energy will file its 2018 electric fuel cost plan in 2017.
Summary of key financial elements of retail electric and gas rate increase proposal
The revenue requirement included in this proposal resulted from collaboration with the Citizens Utility Board (CUB), Wisconsin Industrial Energy Group (WIEG) and PSCW Staff. As a result of this collaborative process, CUB, WIEG and PSCW Staff will not contest the stipulated revenue requirements. The proposal contains the following provisions:
- Increase in retail electric rates of $12.9 million through 2018
- Increase in natural gas base rates of $9.2 million through 2018
- Authorized return on equity (ROE) of 10 percent
- Continuation of the ROE sharing mechanism that has been in place since 2013
- Common equity component of regulatory capital structure of 52.23 percent in 2017 and 52.20 percent in 2018
- Proposed ATC and WPL reorganization consistent with PSC dockets 137-BE-100 and 6680-AU-118
- Proposed change to depreciation rates
- Retail electric and gas rate base of $3.0 billion in 2017 and $3.1 billion in 2018
- Escrow treatment of transmission charges
- Use of transmission escrow and continued use of the conservation escrow to offset base rate cost increases
- Allowance for Funds Used During Construction (AFUDC) treatment for 100 percent of the Riverside Energy Center Expansion
The proposal is available on the PSCW's electronic filing system under Docket 6680-UR-120.
Alliant Energy Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as "approximately," "expected," "believe," "would," or other words of similar import. Similarly, statements that describe expected outcomes in the rate case settlement proposal filed with the PSCW, including the effects of the proposed settlement, 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:
- Whether the PSCW approves the settlement, the timing of any such approval and any conditions or modifications imposed by the PSCW in connection with any such approval;
- Other state regulatory or governmental actions, and future regulatory proceedings, including regulatory decisions regarding WPL's proposed settlement;
- WPL's ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of operating costs, capital expenditures, the earning of reasonable rates of return and the payment of expected levels of dividends;
- Economic conditions in WPL's service territory;
- The impact of fuel and fuel-related costs; and
- Significant changes in the condition of WPL, its service territory or customers, the industry or other changes, that could cause WPL or other parties to seek changes in base rates during the base rate freeze.
For more information about potential factors that could affect Alliant Energy's and WPL's businesses and financial results, please review "Risk Factors" in the companies' Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission and in the companies' other filings with the SEC. 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, except as required by law, Alliant Energy and WPL undertake no obligation to publicly update such statements to reflect subsequent events or circumstances.
About Alliant Energy
Alliant Energy Corporation's Wisconsin utility subsidiary, Wisconsin Power and Light Company (WPL), utilizes the trade name of Alliant Energy. The Wisconsin utility is based in Madison, Wis., and provides electric service to 465,000 customers and natural gas service to 185,000 customers in more than 600 communities across central and southern Wisconsin. The employees of Alliant Energy focus on delivering the energy solutions and exceptional service their customers and communities expect – safely, efficiently and responsibly. Visit alliantenergy.com or call 1-800-ALLIANT (800-255-4268) for more information. Alliant Energy Corporation is traded on the New York Stock Exchange under the symbol LNT.
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SOURCE Alliant Energy Corporation