MADISON, Wis., May 05, 2021 (GLOBE NEWSWIRE) -- Alliant Energy (NASDAQ: LNT) today notified the Public Service Commission of Wisconsin (PSCW) of its intent to enter into a settlement agreement regarding electric and natural gas rates in Wisconsin for 2022 and 2023. Alliant Energy has a settlement in principle with several Wisconsin-based stakeholder organizations, including the Citizens Utility Board (CUB), Wisconsin Industrial Energy Group (WIEG) and Sierra Club, which further manages customer costs and enables a thoughtful transition to clean energy.
During the two years covered by the settlement in principle, Alliant Energy anticipates placing nearly 1,100 megawatts of new solar generation into service in Wisconsin; the company’s utility-scale solar plans are currently under review by the PSCW. The settlement in principle further aligns rate increases in Wisconsin with customer cost savings, particularly related to retiring the Edgewater 5 coal facility. The agreement also reflects the company’s continued operation and maintenance cost management practices.
“We appreciate the constructive discussions with our stakeholders as we focus on following the path outlined in our Clean Energy Blueprint,” said David de Leon, President of Alliant Energy's Wisconsin energy company. “Guided by our purpose-driven strategy, we look forward to continuing these conversations and doing what’s right for our customers while helping to build stronger communities.”
Over the last decade, Alliant Energy’s Wisconsin residential electric customers have experienced an average rate increase of less than 1%, year over year, while residential natural gas customers in the state have experienced, on average, a decrease of nearly 2% per year.
The conversation between Alliant Energy and stakeholders is ongoing; however, in principle, the groups have reached tentative agreement on:
- Covering two test years (2022 and 2023), which enables Alliant Energy to hold electric base rates flat in 2023, avoiding an otherwise anticipated base rate increase.
- An overall increase in revenue requirements in 2022 of $70M for the electric utility and $15M for the gas utility.
- Implementing a financial equity layer of 52.5% and maintaining its presently authorized return on equity (10%).
- Levelized recovery of 100% of the remaining net book value balance of the Edgewater Unit 5 plant, after it retires in 2022 using a 9.8% ROE to calculate the revenue requirement. The levelized recovery mechanism results in an effective ROE of 9.2% on the plant following retirement and provides customers near-term savings.
The parties continue to finalize the terms of the settlement, including discussing rate design and cost allocation issues. The settlement will be subject to review and approval by the PSCW. Alliant Energy plans to outline additional details in their rate review filing, which the company expects to submit this month.
Once filed, Alliant Energy’s rate review will be available on the PSCW’s electronic filing system under Docket No. 6680-UR-123.
Alliant Energy Corporation (NASDAQ: LNT) provides regulated energy service to 975,000 electric and 420,000 natural gas customers across Iowa and Wisconsin. Alliant Energy's mission is to deliver the energy solutions and exceptional service customers and communities count on – safely, efficiently and responsibly. Interstate Power and Light Company and Wisconsin Power and Light Company are Alliant Energy's two public energy companies. Alliant Energy is a component of the Nasdaq CRD Sustainability Index, Bloomberg’s 2020 Gender-Equality Index, and the S&P 500. For more information, visit alliantenergy.com and follow us on LinkedIn, Facebook, Instagram and Twitter.
This press release includes forward-looking statements. These forward-looking statements can be identified as such because the statements include words such as “intent,” “anticipate,” “plans,” “expects,” or other words of similar import. Similarly, statements that describe details of proposed rates and anticipated new solar generation are forward-looking. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by the following factors, among others: whether the PSCW approves the settlement in principle, the timing of any such approval and any conditions or modifications imposed by the PSCW in connection with any such approval; whether intervenors who are not parties to the settlement in principle oppose the proposal; other state regulatory or governmental actions, and future regulatory proceedings, including regulatory decisions regarding WPL’s proposed rates; the inability to obtain regulatory approvals or necessary permits in a timely manner; state regulatory actions that delay or reject the proposed solar generation construction plans, or that include terms that make the future generation construction plans uneconomical, including rate recovery levels and returns on equity; adverse interpretation or enforcement of regulatory or permit conditions; ability to obtain necessary equipment and labor in a timely manner; increased costs of equipment, commodities used in equipment, labor and real estate; changes in tax laws that could impact the qualification of the solar projects for the expected level of investment tax credits; unanticipated construction issues, delays or expenditures; failure of equipment and technology to perform as expected; economic conditions in WPL’s service territory; adverse impacts resulting from the COVID-19 pandemic and responses to the pandemic; and additional potential factors that could affect Alliant Energy’s and WPL’s businesses and financial results as disclosed in the companies’ Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission and in the companies’ other filings with the SEC. These factors should be considered when evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy and WPL undertake no obligation to publicly update such statements to reflect subsequent events or circumstances.