Interstate Power and Light Co. (IPL), a subsidiary of Alliant Energy Corp., said today it expects Iowa customers’ electric bills will be lower this year as a result of a decision by the Iowa Utilities Board (IUB) in a 2010 electric rate case. The potential savings come from approval of IPL’s cost management plan and a small refund to certain customers, the company said in a press release.

The cost management plan will utilize approximately $200 million in expected
tax benefits to provide customers a credit on their monthly electric
bills over the next three years. The total amount provided under the
plan could be adjusted depending on the outcome of ongoing audits with
the Internal Revenue Service.  

This year, the plan is expected to credit customers approximately $64
million, with credits appearing as a reduction in the “Energy Cost”
line item on customer bills. Residential customers will receive an
average savings of approximately $3.79 each month from this plan. IPL
will file annual updates to adjust the credits being returned to
customers over the life of the plan.

 IPL also announced that it will not file its next electric base rate case before 2014, but that it has received approval from the IUB to adjust customer bills as transmission costs rise. Those new charges will appear on customer bills as a new line item labeled “Regional Transmission Service.” The practice is similar to the adjustment that IPL makes monthly to capture adjustments in fuel costs, the company said.