January 31, 2020: On January 8, 2020, the Iowa Utilities Board approved a settlement requiring the first-ever evaluation of a utility’s coal generation. Sierra Club filed expert testimony in Interstate Power & Light’s (an Alliant subsidiary’s) rate case examining the economics of its coal-fired power plants. This analysis showed that Alliant’s Iowa coal plants are costing customers more to maintain and operate than they are earning. The expert found that in 2018 alone, the coal plants inflicted a net loss of $32.7 million on IPL’s customers. If these losses were to continue at a similar rate over the plants’ current remaining lives, Alliant’s Iowa customers can expect to suffer a loss of more than $680 million from these plants. The analysis found that customers could be better served with cheaper, cleaner energy from renewables.
Sierra Club and nine other intervening parties, including the Office of Consumer Advocate and large energy customers, entered a settlement with Alliant, in which Alliant agreed to participate in a comprehensive planning process for their generating fleet, the first time such a review will happen in Iowa. This analysis will require Alliant to assess the economics of its coal plants compared to cleaner, home-grown energy options like solar, efficiency, wind, and battery storage. The planning process is a critical first step in setting a path for the company to transition away from expensive, polluting coal plants towards cheaper and cleaner energy.
Alliant’s resource planning process, which will allow all parties to the rate case to participate, will conclude by the end of 2020. The settlement also secured a victory for customers who seek to own their own renewable generation; Alliant agreed to withdraw plans to increase fees for customers with solar panels and other self-generation. The settlement also includes a collaborative stakeholder engagement process around grid investments and utility-owned distributed renewable energy projects.