Group calls for electric rate reform in Iowa

CEDAR RAPIDS, Iowa (KCRG) – Four organizations have formed a an advocacy group calling for reform in the way utility companies set rate increases. The entities that make up the group are Iowa Business Energy Coalition, Iowa Economic Alliance, Iowa Business for Clean Energy, and Large Energy Group. Although the coalition doesn’t have a group name.

The group cited Alliant Energy’s most recent rate increase as a concern for both residents and businesses. Alliant’s increase was approved by the Iowa Utilities Commission back in Sept. In a news release, the group called Alliant a monopoly.

According to the U-S Energy Information Administration, Alliant had the highest electric rates in all of Iowa in 2023. And Iowa’s average rate was higher than 37 other states.

The advocate group said the cost of electricity is making it harder to operate a business in Iowa. It said the larger companies in Cedar Rapids like Quaker Oats and the hospitals already have expensive electric bills every month and the increase has added to that.

“Some of these larger customers, their bills are a million dollars or more. So when you’re talking about some of the increases they’ve recently seen, a 15% increase, that’s a substantial impact,” Dave Vognsen with Large Energy Group said.

The business group also suggested changing how Iowa utilities can charge customers for future projects. Right now, electric companies can charge customers before they start a new project.

“What the utilities plan for in their resource plans are eventually going to be paid for by customers,” Vognsen said. “So that’s why it’s important to take a look and make sure you know that it’s the least cost based upon the needs of customers,” he said.

Ultimately, the group said it is pushing for legislation changes that would allow the Iowa Utilities Commission to regulate the way utility companies increase their rates, serving as a check of sorts.

“The commission can make sure those decisions are based on the best interests or rate payers and not just in the best interest of the utilities,” Bob Rafferty with Iowa Business for Clean Energy said.

KCRG reached out to Alliant Energy about the group’s push for reform. It said in a statement:

“We remain committed to cost-effectively meeting customers’ energy supply needs. Investing in a diverse energy mix and modernizing the energy grid delivers a more reliable, sustainable, resilient and secure energy future. The IUC’s decision positions us to accomplish this as we continue planning ahead, acting on behalf of our customers to ensure we’re ready to manage the rapidly changing energy landscape,”

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