Alliant Energy to advance wind project in Iowa

Customers and communities to benefit from low-cost, renewable energy

CEDAR RAPIDS, Iowa – October 27, 2016 – Alliant Energy’s Iowa utility is moving forward with its New Wind Project, which will bring up to 500 megawatts of new wind generation to Iowa. That’s enough to power 215,000 homes.

Alliant Energy is currently working with landowners in Franklin County near its existing Whispering Willow Wind Farm, as well as exploring opportunities to develop in other areas of the state. Construction could start as soon as next year. Alliant Energy expects to place 250 megawatts in service in 2019 and the rest in 2020.

“The New Wind Project will benefit our customers, our communities and the state,” said Doug Kopp, president of Alliant Energy’s Iowa utility. “The wind turbines will generate clean, cost-effective energy for customers. They also create tax revenue for communities, and bring construction jobs and economic growth to the state, making this a win-win project.”

On October 25, the Iowa Utilities Board issued a final order regarding the New Wind Project. The order approves, with limited modifications, the settlement between Alliant Energy and customer groups, which was filed on October 12, 2016.

The New Wind Project will help the company economically meet its customers’ energy need, by maximizing the value of renewable energy tax credits and taking advantage of favorable wind turbine pricing.

“We want to thank our community partners in Franklin County. We also want to thank the Iowa Utilities Board for its work and the organizations that came together to advance this application toward approval. They include the Office of Consumer Advocate, the Iowa Business Energy Coalition, the Large Energy Group, the Iowa Environmental Council and the Environmental Law and Policy Center,” said Kopp. “Through our work together, we are helping to advance clean energy while providing low-cost, reliable energy solutions to our customers.”

More information is available at alliantenergy.com/whisperingwillow.

Iowa Utilities Board order terms:

 

• The ratemaking principles apply to any new wind facility constructed as part of Alliant Energy’s Iowa utility’s New Wind Project that qualifies for 100% of the federal Production Tax Credits, regardless of its location in Iowa, up to 500 megawatts.
• Cost cap: $1,830/kilowatt, including allowance for funds used during construction (AFUDC) and transmission costs
• Return on common equity: 11%, with the exception of certain transmission facilities classified as intangible assets, which shall earn the rate of return on equity authorized by the Iowa Utilities Board in a future rate case
• Return on common equity used in calculating the AFUDC rate to be the higher of the outcome of the next rate case or 10%
• Depreciable life of 40 years, unless changed as a result of a contested case before the Iowa Utilities Board
• Alliant Energy’s Iowa customers shall be entitled to the full value of any environmental attributes, beyond those needed for compliance with applicable regulatory requirements, associated with investment included in Alliant Energy’s Iowa jurisdictional rate base
• Alliant Energy is permitted to include in Iowa rates the actual cost of the wind project up to the cost cap without need to establish prudence, but required to establish the prudence of any cost in excess of the cost cap
• Cancellation costs: recovery of prudently incurred and unreimbursed costs, if applicable, amortized over 10 years

You can still light the night pink!

In Cedar Rapids on Thursday we were proud to join forces with Mercy Medical Center to light the night pink. The Power of Pink event marks the arrival of National Breast Cancer Awareness Month to promote awareness and early detection.

We gave away energy-saving, compact pink fluorescent light bulbs. Those receiving the light bulbs are encouraged to put them in their porch lights for the month of October as a reminder to get screened for breast cancer.

 

 

 

Are you ready for cooler weather? Seal and save

Energy-efficient homes are more comfortable and have lower energy costs. People often think insulation is key when it comes to making your home more comfortable and efficient. Insulation is important, but by itself, it isn’t enough. The most important tip for a comfortable home is air sealing, and you can do it yourself in a weekend for less than $100.

What you need

• Caulk or a tub of duct mastic for small gaps. These work well because they will flex with the building material in hot and cold weather. Plus, mastic doesn’t require a clean surface to stick.
• Expandable foam sealant for larger gaps. Note that foam sealant must be applied to a clean surface and could leak through to the living space.
• Additional insulation.

Where to seal

Anywhere there is or could be a hole to the outside is a good place to seal, including:

• Electrical boxes
• Ceiling lights or fans
• Chimney chase ways
• Laundry chutes
• Sewer vents
• Bath ventilation

Get to work

In each area, move away the existing insulation and use your sealants to fill in the holes. Make time to do a thorough job, or you won’t see the benefits. Finish up by replacing the insulation you moved and adding even more if possible. A home that is poorly insulated and unsealed can cost 30% more to heat and cool compared to a home that is well sealed and insulated.

Apology to our customers in Iowa

We want to apologize for our billing process this summer. We let many of you down.

This summer was hotter than normal. Our customers used more energy than last summer. The bills that customers are seeing now are accurate, but they are coming as a big surprise. We are sorry for this surprise. We were not expecting this either.

The problem

Many of you received estimated bills recently. This is not because our meter readers or our meters didn’t do their job. Our meters and our meter readers do a great job. They are very accurate.

Our computer system checks your monthly usage against previous usage. This review catches possible mistakes in the meter reading process. Each time the system finds usage that is a lot higher or lower than normal it sends the bill to a representative to manually review it. This is done hundreds of times a day.

We recently installed a new billing system. This system has more reviews and checks to make sure customers are accurately billed. One of those reviews includes a tighter look at current energy usage.

This summer was very hot and our customers used more energy than normal. In response, our new system sent more bills than ever before to billing representatives. Unfortunately, we weren’t expecting this. Despite working overtime, we didn’t have enough representatives available to review all of the bills.

Because we couldn’t review the bill, which was accurate, the system automatically sent an estimated bill. The estimation is designed to protect customers from inaccurate bills. In years past, there were fewer bills that needed to be verified. Our employees were able to contact customers directly to let them know about the corrected bill, and setup a payment arrangement if needed.

Again, despite working overtime and hiring more employees, we weren’t able to answer all incoming calls, and also call customers proactively regarding their estimated bills. Many of you were caught by surprise. We are very sorry.

The fix

Here are specific measures we’re taking:

• We are adjusting our processes to prevent multi-month estimation during periods of extreme hot or cold temperatures.
• We are here to help you spread out the bill over the next 12 months. Please call us at 1-800-ALLIANT(800-255-4268). We are available 6 a.m. to 9 p.m., Monday through Saturday. There is no negative impact to your account standing with us or your credit score for setting up a payment arrangement.
• We have temporarily stopped the disconnection process for customers who are impacted by this.
• We are waiving late payment fees for affected customers.
• We are aggressively recruiting more employees.

We live and work here. Many people were affected by this, including our own employees. We will fix this, and we won’t let this happen again.