Madison, WI, Jan. 12, 2007 — Wisconsin Power and Light Co. (WP&L), a subsidiary of Alliant Energy Corp., received an oral decision from the Public Service Commission of Wisconsin (PSCW) in the company’s retail base rate case.
In its oral decision, the PSCW authorized an overall increase to base rates of approximately $38 million including $39 million (4.3 percent increase) in electric revenues and $1 million reduction (0.1 percent decrease) in natural gas revenues. Each customer class will experience different impacts depending on the cost to serve each class. The actual bill impacts will be calculated following receipt of the PSCW’s final written order, and new rates will then be implemented.
In the decision, the PSCW determined WP&L’s target financial capital structure should include 51 percent common equity and the authorized return on equity should be 10.8 percent.
The PSCW also decided that state law does not allow the company to offer a new tariff rate to help reduce mercury emissions. WP&L had proposed the rate for large industrial customers investing in technologies resulting in mercury emission reductions by at least 1,000 pounds annually, when compared to 2006 levels, while simultaneously reducing electricity usage.
The commission also determined the company can continue to invest $40 million in 2007 in energy efficiency efforts through its Shared Savings program. In addition, the company can continue to utilize the natural gas purchase plan WP&L developed to share natural gas purchase cost savings with customers. Under the plan, customers are billed at market prices and to the extent WP&L is able to purchase gas for less than these market prices, the difference is shared between the company and its customers.
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