Consumer Advocate says Interstate Power should lower rates

The state’s Consumer Advocate is asking the Iowa Utilities Board to reduce electric rates for Interstate Power and Light Company. Interstate is a subsidiary of Alliant Energy serving central and eastern portions of the state. The company had asked for an 82-million dollar rate increase — but that’s not what Consumer Advocate John Perkins is recommending. Perkins says Interstate should decrease rates and give customers back six-point-three million dollars. Perkins says one area of disagreement is the amount of profit the company should make on electric sales.He says Interstate should be allowed only a nine-point-six percent profit, compared to their request of over 12-percent. Perkins also opposes Interstate’s request to recover costs they haven’t incurred yet. Perkins says that would be a change in past practice for the Utilities Board. The Utilities Board has already scheduled a hearing on the case in October, and a final decision on the rate would come in January.