New wind farm leads Alliant Energy to ask for 14% rate hike
Credit: By DAN PILLER • dpiller@dmreg.com • March 10, 2010 • desmoinesregister.com
Alliant Energy has asked state regulators for a 14 percent rate increase for its 525,000 customers in eastern, northern and southern Iowa to pay for a new wind farm and transmission upgrades.
The utility said in a statement that the request “seeks to increase annual revenues by approximately $163 million, or 14 percent. The impact of the proposed change in electric rates will vary depending on customer class.”
Alliant president Tom Aller said the money would be needed to recoup costs for the utility’s new Whispering Willow wind farm in Franklin County, which is Alliant’s first owned wind farm in Iowa.
““We are investing nearly $1 billion in 2009 and 2010 to create a clean and reliable energy future for all Iowans,” said Aller. “With our investment in the Whispering Willow-East Wind Farm in Franklin County, Iowa, we are powering the equivalent of nearly 50,000 homes with clean, renewable energy.”
Alliant said it will put into effect an interim electric rate increase of 10 percent on March 20, 2010.
After an 8 percent rate increase was granted Alliant by the IUB earlier this year Alliant customers now pay an average of 11.48 cents per kilowatt hour. That compares to 8.24 cents per kilowatt hour for MidAmerican Energy’s 770,000 Iowa electric customers.
Alliant said residential customers will see the typical monthly electric bill increase by about $10.62, or 11.7 percent, after the interim rate increase goes into effect. Those numbers are based on a monthly energy usage of about 750 kilowatt-hours for residential customers.
Interim rates will remain in effect until the IUB issues a decision on the company’s electric rate request, expected in the first quarter of 2011.
Alliant is made up of the former Interstate Power & Light, Iowa Electric and Iowa Southern utilities.
It serves Cedar Rapids, Mason City, Ottumwa, Dubuque, Keokuk and Marshalltown.
Tags: Wind power, Wind energy
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