Consumer Information Energy Telecommunications
Elizabeth S. Jacobs
Chair
Nick Wagner
Board Member
Sheila K. Tipton
Board Member

Rate Proceeding (RPU)

RPU-2012-0003, GCU-2012-0001 INTERSTATE POWER AND LIGHT COMPANY On November 14, 2012, IPL filed an application for determination of advance ratemaking principles to construct and operate a 650-Megawatt natural gas-fired, combined-cycle electric generating unit. The proposed facility is called the Marshalltown Generating Station (MGS) and will be located in Marshalltown, Iowa. On October 4, 2012, IPL held an informational meeting in Marshalltown regarding its application. Also on November 14, 2012, IPL filed a request for advance ratemaking principles that would apply to the MGS. Among other things, IPL requested a return on equity of 11.25 percent for the MGS and a cost cap of $700 million, which includes MGS, transmission interconnection costs, and owner’s costs. On December 26, 2012, the Board issued an order docketing the filings. The order stated that Docket Nos. GCU-2012-0001 and RPU-2012-0003 are consolidated for the purposes of hearing, procedural schedule, and evidentiary record. Testimony and exhibits filed in each of the two dockets are part of the evidentiary record in the other docket. A hearing is scheduled for May 21, 2013, in Marshalltown to receive witness testimony and the cross-examination. The dockets are pending.

RPU-2012-0004 BLACK HILLS ENERGY On December 21, 2012, BHE filed a rate request to place in effect a tariff that would establish an investment surcharge.  The filing was made pursuant to 199 IAC 19.18(1)”b”.  BHE stated that it had spent $8,170,578 in capital infrastructure investments since the beginning of 2011.  BHE asked to recover $834,256 from its ratepayers under the tracker.  On April 15, 2013, the Board issued an order approving a compliance tariff.  BHE included eligible capital infrastructure investments of $3,860,083 for calendar year 2012, using a 13-month average carrying charge calculation for eligible investments consistent with a March 15, 2013, Board order.  The carrying charge calculation resulted in carrying charges of $189,772.  BHE allocated the revenue to be collected through the automatic adjustment mechanism, among the customer classes, using the net rate base by class from the class cost-of-service study in the most recent rate case.  The volumes used to calculate tracker rates were the normalized 2012 volumes by month.  The resulting rates:  $0.00130 for residential service, $0.00081 for non-residential general service, $0.00093 for small volume, and $0.00175 for the large volume class.

RPU-2013-0002 (TF-2013-0069, TF-2013-0070)  Iowa-American Water Company  On April 30, 2013, Iowa-American filed a rate increase request with the Board.  Pursuant to Iowa Code § 476.6(10), Iowa-American implemented temporary rates ten days after its April 30, 2013, filing to increase its annual Iowa retail water revenue by approximately $2.68 million (7.5 percent).  The temporary rates are subject to refund with interest pending the Board’s final decision in this case.  Iowa-American also proposed a permanent annual increase in its Iowa retail water revenue of approximately $6.4 million (18 percent).  The Board held two consumer comment hearings in this case.  The first public meeting was held on June 3, 2013, in Bettendorf and the second one was held on June 4, 2013, in Clinton.  This case is pending.

RPU-2013-0003  MidAmerican Energy Company On May 10, 2013, MEC filed an application requesting the Board approve the following nine advance ratemaking principles applicable to its 1,050-megawatt wind power project, which MEC calls Wind VIII:  1) Iowa jurisdiction allocation, 2) cost cap, 3) size cap, 4) depreciation, 5) return on equity, 6) cost cancellation recovery, 7) renewable energy credits, 8) production tax credits, and 9) customer rate relief.  MEC requested a return on equity of 11.625 percent for Wind VIII and a cost cap of $1,825 per kilowatt, which includes transmission interconnection costs and owner’s costs.  On May 15, 2013, the Board issued an order accepting the filing, setting a procedural schedule, and setting an intervention deadline.  On June 26, 2013, MEC and the Office of Consumer Advocate (OCA) filed a settlement agreement.  A hearing was held on July 15, 2013, in Des Moines, Iowa.  On August 9, 201,3 the Board issued a decision order accepting the settlement agreement between MEC and OCA and requiring MEC to file updates on Wind VIII two times each year.

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