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Alliant Gas Fee Increases 4.7 Percent

Posted on: Thursday, 20 October 2005, 15:00 CDT

By Dave Dewitte, The Gazette, Cedar Rapids, Iowa

Oct. 18--Alliant Energy has won a permanent 4.7 percent increase in natural gas distribution charges from Iowa regulators.

The action Friday by the Iowa Utilities Board means Alliant's gas distribution charge will rise 0.2 percent, or about 23 cents per month for an average residential customer, on top of the 4.5 percent interim rate increase that took effect in April.

The delivery charge rises to 16.95 cents per therm. Average monthly residential consumption is 100-120 therms.

Alliant spokesman Ryan Stensland said the 0.2 percent rate change will be implemented within the next month.

Distribution charges account for about one third of a household gas bill. The increase hits at a challenging time for Iowa consumers, however. The largest component of their natural gas bills ... the gas charge ... will be an estimated 48 percent higher this winter because of tight supplies.

Alliant does not profit from the gas charge, however it will receive a 10.4 percent return on investment for delivering natural gas under the order.

Skyrocketing natural gas prices were a factor in the ruling. The IUB did not want to discourage Alliant from helping customers improve energy efficiency.

"The board supports IPL's efforts to implement a successful energy efficiency program and understands that the more successful (Alliant) is in reducing energy consumption by its customers, the less non-gas revenue it will generate from those rates that are based on the volume of gas sold," the order said.

A second issue addressed was the utility's past "pattern of safety violations" in its gas operations. Under its rules, the IUB could have lowered the rate increase if it determined Alliant was managed inefficiently.

The IUB ruled Alliant is making sufficient progress in improving its safety performance, with new electronic systems for tracking training and compliance.

However, the IUB did not agree with Alliant on a separate issue regarding customers who had to buy gas from other sources and wanted to return as Alliant customers.

Alliant wanted the right to deny reconnection to customers if the utility could not obtain natural gas supply or pipeline capacity to meet their needs, or if reconnecting the customer would adversely affect other customers.

The IUB said the provisions should apply only to large customers.

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To see more of The Gazette, or to subscribe to the newspaper, go to http://www.gazetteonline.com.

Copyright (c) 2005, The Gazette, Cedar Rapids, Iowa

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

LNT,

Source: The Gazette - Cedar Rapids, Iowa

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