Alliant Rate Case Highlights

Update: in December 2023, the PSC authorized a scaled back rate increase for Alliant Energy’s Wisconsin Power & Light utility. The commission found savings related to profits and capital structure, and highlighted affordability challenges and the need for Alliant to develop more solutions to save customers money when its coal plants shut down. Approved was an electricity increase of $110.8 million, or 8.3%, phased in over 2024 and 2025. Natural gas distribution costs were increased by 4.8% on average for 2024. See CUB’s press release here: Alliant Rate Hike Approved, PSC Demands Savings When Coal Plants Retire

See Alliant’s customer messages reflecting the changes in rates here.

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In April 2023, Alliant Energy (Wisconsin Power & Light) filed a general rate case to increase rates in 2024-25.

In PSC case 6680-UR-124, Alliant sought:

Focus on profits

• • Alliant proposed to keep its profit rate, or return on equity, at 10%. But that rate is still higher than the national average and is more than is needed to attract capital on Wall Street
  • But it also proposed a backend way of increasing profit dollars by modifying its capital structure change.
  • CUB opposed that change and recommended that Alliant’s profit rate be brought down, to 9.4%.

Profits too high

• • Alliant’s Wisconsin utility reported 2022 profit of $350 million.
  • Customers across the country are overpaying by billions from profit rates that have remained far too high for far too long.

The cost of the energy transition

• • Major drivers of Alliant’s electric rate case include items related to the company’s approach to the clean energy transition.
  • $2.32 billion in new solar, battery storage, and natural gas investments either already approved or pending before the PSC will be hitting rates.

Other proposals

• • Rooftop Solar: Alliant is proposing the Renewable Power Partnership to replace current rates for customers with solar with a mechanism that aims to reflect the benefits of solar and actual costs to the utility, without overcharging customers without solar. Update: CUB endorsed the change, but many renewable and clean energy advocates were opposed. A modified version of the RPP was supported by some clean energy supporters, but the PSC declined to endorse it, instead kicking off a statewide investigation in 2024 on payments to customers with solar panels.
  • Affordability: Alliant is proposing an $80 per year Energy Care Credit to encourage low-income customers to apply for state energy assistance. Update: CUB endorsed the credit as well as other initiatives to assist low-income customers. Update: The PSC rejected the proposal and instead launched a new investigation looking at options to improve customer affordability.
  • Dead Coal Costs: The PSC reviewed alternatives to save customers money for costs customers will have to bear after Alliant’s Edgewater coal plant shuts down. Update: CUB asked the PSC to deny the utility profits after the plant shuts down. Update: The PSC declined to take action, saying the utility needs to come back with more substantive proposals to help save customers money as part of the transition away from coal.
  • Divvying up the pie: CUB argued for the PSC to take a fresh look at the analysis it uses to divvy up costs among residential, small business and large customers including big factories. Update: The PSC agreed with CUB and said it would kick off a new investigation in 2024.

Timeline

• • Spring/Summer: PSC Audit, Analysis
  • August / September: CUB experts, PSC staff weigh in with testimony, briefs. See CUB’s legal brief summing up the case here.
  • Sept. 13: Public Hearing
  • Nov. 9, 2023: PSC Discussion and Decision on the Case. See YouTube video here.
  • Dec. 20, 2023: PSC Decision issued; read it here.

Find out more

• • See the filings in the case at the PSC here.
  • Create a “ERF-EZ Subscription” to see when new information is filed. (6680-UR-124)

Have your say

• • Check CUB’s Active Cases page and the PSC’s New Applications Page for current cases involving Alliant Energy.
  • Submit a written comments on PSC cases and find out about public participation here.