CLINTON —
Less than 10 customers attended the customer comment hearing to discuss a natural gas rate increase held by the Iowa Utility Board and Alliant Energy/ Interstate Power and Light Company on Tuesday at Clinton Community College.
This is the first time the company has asked for a natural gas rate increase since 2005, according to Tom Aller, President of Alliant and IPL.
The rate increase was proposed by Alliant on May 25 to cover the costs for nearly $70 million in improvement projects that have been completed since the last rate increase, according to Aller.
Such projects in Clinton include the installation of 5,200 feet of gas main along Bluff Boulevard and adding seven new customers, which cost $200,000 and the replacement of 2,200 feet of pipe along Main Avenue and the addition of 33 customers, which cost $156,000.
About 60 percent of a customers’ bill is related to the cost of gas, while 40 percent is related to service, including these infrastructure improvements.
Ron Polle, an attorney at the Office of Consumer Advocate who was also at the meeting, explained his office’s role and confirmed the proposed rate increase is about service improvements.
“Our goal is to make a recommendation that produces the lowest possible rates consistent with safe and reliable service,” Polle said. “This case is about everything else but the cost of gas,” he later said.
A temporary rate increase of 3.4 percent for residential customers, that did not require a rate case hearing, went into effect on June 4 and will remain in effect until a final rate increase is approved by March 25, 2013. Residential customers will see, on average, a 7.9 percent increase if the proposed increase is approved. General service and industrial customers are also subject to the temporary rate increase and will be affected by the permanent rate increase. However, the IUB may suggest a lower rate increase.
If the final rate increases are less than the interim rates, the difference will be refunded to customers.
The few customers who attended the meeting were invited to make comments or ask questions of the panel. Two asked questions from their seats. One of them was Sterling Stuhldryer, a landlord from Clinton, who asked how the rates would affect himself and his tenants as well as the likelihood that customers would see any refund.
“We feel pretty strongly there are precedents for the interim rates,” Aller said. He added the company would face penalties if it had imposed an unprecedented interim rate increase.
The second resident, Deanna Galbraith, asked for clarification on which areas of the state would see a rate increase. All of Alliant’s more than 200,000 customers will be affected, Aller said.
The meeting concluded in less than an hour.
The Clinton hearing was the third of four customer comment meetings. The IUB, Alliant/IPL and Office of Consumer Advocate will continue to work on the case after the public comment meetings. The rate increase process must be completed in 10 months, or by March 25, 2013.
Customers who were unable to attend the meeting can still send written comments to the IUB by mail to 1375 E. Court Ave., Des Moines, IA 50319 or by e-mail to customer@iub.iowa.gov.
Local News
Related Photos
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Sterling Stuhldryer (center) asks a question of the representatives from Alliant Energy/IPL during a customer comment meeting on Tuesday night at Clinton Community College. Stuhldryer was one of two customers to ask a question. Katie Dahlstrom/Clinton Herald
Discussion
July 18, 2012
Alliant Energy pushes for rate hike
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