A rate plan approved by state regulators will hold the line on electric rates for the 530-thousand customers of Alliant Energy Company. Alliant spokesman, Justin Foss, says the rate plan came out of a new agreement to purchase power from the Duane Arnold Nuclear plant that began in February of this year.
“We are going to get a lot cheaper energy, a lot less expensive energy from the plant. So, that’s a great thing, so that lowers rates,” Foss says. Foss says the plan has a couple of parts, one is the rate freeze. “The base rate — the majority of the price of energy — is going to stay the same, that it has been since late 2010, and it’s going to stay that way all the way through 2016,” he explains.
The rate plan also includes $105 million in customer credits, which began showing up on electric customer’s bills May 1.
“In 2014 we are going to be able to give back about $70 million in credits to reflect that lower cost,” Foss says, “but, because our other costs are rising, the credits will be less in 2015 and 2016.”
He says it’s hard to say how much credit each electric customer sees on their monthly bill. “It depends on how much you use. So, people who are seeing a lot of usage are seeing a little bit more credit on that, and people who are not using as much are not seeing as much credit,” according to Foss. “So, it’s really tough to put an average amount on that.”
Foss says customers with questions can go to: alliantenergy.com/iowarates.