Alliant Energy filed a recommendation recently to the Iowa Utilities Board (IUB) which would temporarily modify the energy adjustment charge (EAC) methodology used in calculating customers' electric bills in Alliant Energy - IES's service territory.
The EAC is the regulated adjustment mechanism that allows Alliant Energy to reflect changing purchased power and fuel costs to customers.
"In February we explained to our customers that the dramatic increases in wholesale natural gas would cause the EAC to increase gradually over the course of the year so they could plan ahead," said Eliot Protsch, president of IES Utilities. "As we continue to see an overall shift upward in purchased power costs and how that has and will continue to impact our customers through the current EAC calculation method, it is clear that we must take action."
In 1997, Alliant energy - IES began a pilot project to utilize a 12 month averaging method in the calculation of the EAC. The pilot was extended and is scheduled to end in October of 2001.