Utilities Commission Approves Rate Increase as Alliant Requested

The Iowa Utilities Commission approved a settlement allowing Alliant Energy to increase its rates by $185 million per year today, while also requiring a planning process for future investments.

The Iowa Environmental Council, the Environmental Law & Policy Center, and Sierra Club intervened to argue for better planning to transition to clean energy, as well as better protections for customers. The Commission order adopted few of the changes requested by the environmental groups.

"To protect customers, Alliant needs to make smart decisions about its future investments,” said Josh Mandelbaum, Senior Attorney at ELPC. “That includes a robust planning process that fully accounts for its coal plants and potential savings like energy efficiency. The Commission needs to provide stronger oversight to protect customers, and it should use the forthcoming resource planning guidelines announced in this order to provide a framework for better planning and oversight.” 

The environmental groups had opposed the settlement for not providing enough customer protections and not requiring a full and transparent future planning process. Alliant co-owns four coal plants that still operate in Iowa, with no plan to retire the plants before 2040. According to a recent analysis, Iowa’s coal plants collectively lost $49 million between 2021 and 2023.

“Alliant’s expensive coal plants are impacting Iowans’ health, increasing asthma attacks and heart disease,” said Kerri Johannsen, Energy Program Director at the Iowa Environmental Council. “Alliant is a state-approved monopoly. Their customers cannot go elsewhere. Policymakers must hold them accountable.”

The environmental groups filed testimony highlighting the need for comprehensive resource planning, which was also recommended in a legislatively-required report last year. The proposed settlement contained a weak resource planning process, and the Commission approved it without modification. The Commission required the RES process to be filed in the Commission’s electronic filing system to improve transparency. Additionally, the Commission indicated it will be publishing optional guidelines for resource planning processes.

"Nearly every other utility with a monopoly like Alliant’s must plan for the future,” said Josh Smith, Senior Attorney at Sierra Club. “The public deserves to know whether Alliant is spending its money wisely. We need better oversight to advance from expensive, dirty coal to a clean energy future.”

Another concern raised by environmental groups was the increased spending on Alliant’s distribution system. Under the settlement, the spending could grow substantially, leading to higher rates for Alliant customers. IEC, ELPC, and Sierra Club asked the Utilities Commission to provide stronger oversight of Alliant’s spending, to evaluate its coal plants, and to hold Alliant accountable for the money it does spend. While not modifying the settlement to require the integrated distribution planning requested by environmental groups, the Commission strengthened the distribution system reporting requirements to provide greater transparency into planning decisions.

Alliant proposed the rate increase to take effect on October 1. Under the Commission’s order, Alliant must give notice to customers within 30 days of the rate changes becoming effective.

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The Iowa Environmental Council (IEC) is an alliance of diverse organizations and individuals working together to protect Iowa's natural environment. Founded in 1995, it is the largest and most comprehensive environmental coalition in the state. Through education, advocacy and coalition building, the Council raises awareness, generates action and creates large-scale change that makes Iowa a better place to live, work and explore. Learn more at www.iaenvironment.org.

The Environmental Law & Policy Center (ELPC) is the Midwest's leading public interest environmental legal advocacy organization. We develop strategic campaigns to protect natural resources and improve environmental quality. Our multi-disciplinary staff employs teamwork approaches using legal, economic, and public policy tools to produce successes that improve our environment and economy. Learn more at www.elpc.org.

The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information visit www.sierraclub.org.