Alliant Energy Needs To Invest in Iowa Rather Than Use Iowa As An Investment

 

This
Letter to the Editor appeared in the Ottumwa Courier.  It was
written by Larry Wilkinson, an Economic Development Specialist from
Centerville, Iowa.



. . . I
am sending this letter at this time because Alliant Energy, the parent
organization of Interstate Power & Light, has come again before the
Iowa Utility Board seeking an electric rate increase. My desire is to
introduce my perception of a fundamental flaw in the regulatory
treatment of customers who are served by Investor Owned Utility
Companies in Iowa,

companies
like Alliant Energy operating as Interstate Power & Light. The
regulatory flaw serves the investor owned utilities at the expense of
the regulated customers.



The Iowa
Utility Board does not require a utility to create reserves for funding
depreciation or capital improvements when needed.  The Investor
Owned Utilities are able to take the annual return on investment they
are authorized to receive and funnel it up to the parent organization
each fiscal year. Imagine years of profit being funneled to the parent
for them to use outside of the regulated entity. Then when it is time
to build a power plant, the Investor Owned Utility can easily justify
to the Iowa Utility Board the need for an increase in rates. My point
is the Investor Owned Utilities in Iowa enjoy the ability to use
regulated monies for non-regulated purposes knowing full well they can
petition the Utility Board for additional funds for capital
improvements when needed in the regulated enterprise just as Alliant Energy is doing right now.
Why can't the Iowa Utility Board require Iowa Utilities to set aside
reserve funds for capital requirements to serve their regulated
customer base?



. . . I
fully support the Public Utility Holding Company Act for diversified
interests; as long as their non-regulated efforts are within the
service territory of the regulated enterprise. A perfect example is
Otter Tail Power operating in North Dakota and Minnesota. Otter Tail
Power's non-regulated companies are responsible for an economic machine
offering 2,700 jobs in the manufacturing, health services and the
information technology fields plus the related utility sales and
economic activity all within their regulated service territory. I'll
say it again: Otter Tail Power's non-regulated interests have created 2,700 jobs in their own service territory.



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