Critics want Alliant to prove its new Iowa power plants are needed before billions spent

Iowa’s consumer advocate and a coalition of business and clean-energy groups have urged state regulators to deny Alliant Energy’s plans to build natural gas plants in northeast Iowa unless the company proves the plants are necessary and cost-effective, warning customers could otherwise incur billions in capital and fuel costs.

The Iowa Business for Clean Energy (IBCE) — a nonpartisan coalition of businesses and community leaders working to advance reliable, affordable and clean energy solutions — has raised concerns about Alliant’s plan to add thousands of megawatts of natural-gas-fired electricity in the state, including in Linn County.

CONSUMER ADVOCATE ECHOES IBCE CALL FOR UTILITY COMMISION TO EXAMINE IMPACT, NEED, COSTS OF POWER FACILITIES BEFORE APPROVING THEM

Alliant Energy’s claims need and cost effectiveness are irrelevant to build decision, after contending Consumer Advocate should be barred from investigating or advocating for this documentation

DES MOINES – Iowa’s consumer advocate has called for the Iowa Utilities Commission to reject Alliant Energy’s request to build gas plant, unless the company provides information on the need, the cost-effectiveness and fuel impacts, and cost impacts of the projects, noting the risk that the cost could ultimately be borne by Iowa customers.

Iowa Capital Dispatch

A clean energy group is calling for greater scrutiny of a utility company's plans surrounding data centers. (Photo by Joe Raedle/Getty Images)

A clean energy group is calling on the Iowa Utilities Commission and policymakers to ensure utility companies don’t use data center energy demands to build new facilities and pass the costs on to ratepayers. 

Iowa Business for Clean Energy, in a news release Thursday, said Alliant Energy Corporation is using “loopholes” and “secret” rate agreements with data centers to build natural gas “peaker” plants without proving they are in the best interest of ratepayers. 

MAY NEWSLETTER: Energy Bills Fail to Move Forward in a Victory for Consumers

The Iowa legislature adjourned last week without passing either HF 834 or its companion bill SF 585, the omnibus energy bills that incorporated Governor Reynold’s recommendations.

Consumer groups worked together to first try to get important changes to the legislation, then when that did not occur, successfully worked to stop the legislation from passing. This coalition included AARP (representing seniors), NFIB (representing small business), the Iowa Retail Federation (representing Iowa’s small and large retailers), and the Iowa Economic Alliance and Iowa Business Energy Council (representing Iowa’s largest users).

Governor Reynolds introduced major new energy legislation over the past two weeks, House Study Bill 123 and Senate Study Bill 1112. The Governor’s bill includes several concepts which, if amended, can have a positive impact on the future electric rates of Iowa’s investor-owned electric utilities.

Unfortunately, as currently constructed, the bills are very pro-utility. These bills, if not amended, would:

• allow utilities to determine future investment plans without the Utilities Commission evaluating whether investment decisions serve consumers' best interests,

• increase the interest rate consumers have to pay utilities on new gas plants,

• permit the utilities to retain 100% of the profits generated from innovative rate structures, revenue that would otherwise be allocated to mitigate future rate increases, and

• allow incumbent utilities to build $3 billion in new transmission lines without competitive bidding.

All the ratepayer groups are united in advocating for amendments to change the pro-utility legislation into a pro-ratepayer bill. The groups range from AARP, representing Iowa’s seniors, to the National Federation of Business, which represents Iowa’s small businesses, to the Iowa Retail Federation and Iowa’s largest energy users.

Four Iowa business groups want state lawmakers to change the way its largest utilities raise rates, saying rising energy costs are hurting small businesses' ability to compete.

The groups — the Iowa Economic Alliance, the Iowa Business Energy Coalition, Iowa Business for Clean Energy and a large energy group that represents industrial users — say the state’s process is flawed and has led to Alliant Energy’s energy charges being among the highest nationally.