Iowa Utilities Board approves settlement in IPL's natural gas rate case Settlement will lower customer costs from current interim bills
CEDAR RAPIDS, Iowa, Nov. 27, 2012 /PRNewswire/ -- The Iowa Utilities Board (IUB) has approved the settlement Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT) reached between the Iowa Office of Consumer Advocate (OCA) and the Iowa Consumers Coalition (ICC) in regards to IPL's natural gas base rate case filed in May 2012.
The IUB approved an increase in IPL's annual natural gas service revenue requirement of approximately $10.5 million and a ten percent return on common equity. The IUB approved a Cost Management Plan, proposed by IPL, which will use tax benefits to credit customer bills and mitigate any impact on base rates for a period of three years. New rates are expected to take effect in the first quarter of 2013.
"We are pleased at the outcome and appreciate the effort of all parties to come to a settlement that the Iowa Utilities Board could approve," said Tom Aller, President-IPL. "With this settlement, the Cost Management Plan, and low natural gas prices, our customers will continue to benefit from some of the lowest natural gas costs in years."
The cost of gas makes up, on average, 60 to 70 percent of the average residential natural gas bill. This cost of gas is a dollar-for-dollar pass-through for customers, and is unaffected in this rate case proposal. Because of lower gas costs, the average current residential bill is down nearly 20 percent since IPL's last rate case in 2005.
The natural gas rate case filed by IPL was the company's first in seven years and is designed to recover more than $70 million in infrastructure investments made to the natural gas distribution systems since the last case.
In Iowa, IPL provides natural gas service to more than 240 communities. The larger communities served by IPL includes Ames, Marshalltown, Mason City, Clinton, Muscatine, and Burlington.
Additional financial detail: This agreement sets the Iowa natural gas rate base at $254 million.
About Interstate Power and Light Company
Interstate Power and Light Company (IPL), based in Cedar Rapids, Iowa, provides electric service to 525,000 customers and natural gas service to 233,000 customers in more than 700 communities throughout Iowa and southern Minnesota. IPL is committed to providing the energy and exceptional service its customers and communities expect – safely, reliably, and affordably. IPL is a subsidiary of Alliant Energy Corporation. Visit alliantenergy.com or call 1-800-ALLIANT (800-255-4268).
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 "approximately," "expected," or other words of similar import. 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:
- state regulatory or governmental actions, and future regulatory proceedings;
- IPL'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 and political conditions in IPL's service territory; and
- the effectiveness of the Cost Management Plan; and
- changes in the price of natural gas.
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 Alliant Energy and IPL undertake no obligation to update publicly such statements to reflect subsequent events or circumstances.
SOURCE Interstate Power and Light Company