Madison, WI, Oct. 2, 2006 — Wisconsin Power and Light Co. (WP&L), a subsidiary of Alliant Energy Corp., announced they received approval from the Public Service Commission of Wisconsin (PSCW) to decrease electric rates and refund customers nearly $36 million as a result of lower fuel costs.
Last year, the PSCW approved an interim rate increase for WP&L when fuel costs were at an unprecedented high. Fuel-related costs have since declined relative to the forecast that was used to establish interim rates, allowing the company to refund customers the amount that was over collected plus interest.
“We worked closely with customer groups to develop an agreement that would allow us to refund over collections for fuel as soon as possible,” said Barbara J. Swan, president of WP&L. “We are pleased the commission acted quickly to implement this agreement.”
Typical residential electric customers will see a monthly decrease of approximately $2.35 on their monthly statements. The typical electric customer will also see a credit of approximately $27.21 on their statements.
In addition to the refund and reduced rates, the settlement allows the company to include previously deferred costs related to coal conservation efforts in the new rate. These costs were previously included in the company’s 2007 base rate case request.
The company had anticipated the refund and recorded a reserve to account for over collections.
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