CEDAR RAPIDS —
Interstate Power and Light Company, a subsidiary of Alliant Energy Corporation, the Iowa Office of Consumer Advocate and the Iowa Consumers Coalition filed a unanimous settlement proposal with the Iowa Utilities Board addressing all issues among these three parties in IPL’s natural gas base rate case filed in May 2012.
The parties have agreed to an increase in IPL’s annual natural gas service revenue requirement of approximately $10.5 million and the settled return on common equity was established at 10 percent. The parties have also agreed to a Cost Management Plan, proposed by IPL, which would use tax benefits to credit customer bills and mitigate any impact of the revenue requirement increase for a period of three years. This would result in customers per therm expense dropping below the current interim level if approved by the IUB. Because the settled revenue requirement increase of $10.5 million is greater than interim increase of $8.6 million, customer refunds of interim rates would not be necessary under the agreement.
A timeline for review of the settlement proposal by the IUB is unknown at this time, however, prior to a settlement being announced, it was expected that the case would be completed around April 2013. The IUB must approve the settlement before any of the provisions of the agreement become effective. The IUB may accept or reject the agreement, or may come to an alternate decision as part of their review process.
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 is 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.
This agreement would set the Iowa natural gas rate base at $254 million and the equity ratio at 45 percent.
Business
Proposed settlement filed in IPL’s natural gas rate case
- Business
-
-
IMA to honor Community 1st Credit Union mortgage originator
Community 1st Mortgage Originator Rick Comer has been named by the IMA to the Winner’s Circle for his efforts as a home loan originator.
-
Moratorium on utility disconnects ends for this season
Interstate Power and Light Company, an Alliant Energy company, encourages Iowa customers who are not current on their utility bills to take action now.
-
Fareway named 2013 national top workplace
Fareway Stores, Inc. has been named one of America's Top Workplaces by WorkplaceDynamics. Fareway was ranked No. 110 nationwide among organizations with more than 1,000 employees that participated in regional top workplaces programs.
-
50 years in business
On Sunday, March 17, Joe's Quick Shop in Centerville celebrated 50 years in business.
-
Iowa Trust and Savings Bank donates to CVRHTF
Iowa Trust and Savings Bank, presents a $3,000 check to Jennifer Appler, middle, director of Chariton Valley Regional Housing Trust Fund.
-
Appanoose Economic Development Corporation report for February 2013 by Tod Faris, executive director
Tod Faris issued this update of activities for February.
-
Hall joins Mercy Home Care and Hospice as new director
Mercy Home Care and Hospice has been providing excellence in care in the community since 1994.
-
Ambassadors visit Centerville Cleaners
The Centerville-Rathbun Lake Area Chamber of Commerce Ambassadors visited Centerville Cleaners after the business' recent relocation.
- Norris Asphalt, Ottumwa, national asphalt paving award finalist
- DNR to hold listening session on fall hunting and trapping regulations
-
Nurse practitioners join Wayne County Hospital medical staff
-
Hillphoenix, Inc. awards $15,000 to Van Buren County Hospital's Community Service Center
-
Centerville Fareway has a new grocery manager
Doug Cosgrove, right, Centerville Fareway grocery manager for 13 years, hands the keys to the store to the new grocery manager, Keith Voss.
- Mediacom doubles its broadband speeds; 105-meg Internet available throughout southeast Iowa
-
Long time Centerville custom commercial cabinet business changes ownership
The new owners say they plan to grow the commercial cabinet business and eventually mix in residential cabinets, something they have been doing for 12 years.
- More Business Headlines
-
IMA to honor Community 1st Credit Union mortgage originator
