Former IUC members and business groups say governor's energy bill would cost ratepayers
A slew of business organizations, as well as AARP and several former members of the Iowa Utilities Commission, are opposing an energy bill proposed by the governor, because they say it would negatively affect Iowa ratepayers.
In addition to granting existing utilities the right of first refusal to new transmission projects, House File 834 and Senate File 585 expand the projects that can pursue ratemaking principles and set rules for utility resource planning.
Opponents argue these elements of the bills would give big utilities a 'carte-blanche' to add more capital investments in the state regardless of impact to ratepaying Iowans.
Utility companies MidAmerican Energy and Alliant Energy are in favor of the bill and disagreed with the assertions that it would not benefit ratepayers.
'The policies in the bill allow us to deliver on our promise to provide safe, reliable and affordable energy when our customers need it,' a spokesperson for MidAmerican said in a statement.
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Five former members of the Iowa Utilities Commission, or the Iowa Utilities Board as it was formerly titled, penned a letter to lawmakers and urged them to pause the current legislation.
The letter said the bill has potential to 'shift the risk/benefit ratemaking balance away from ratepayers and towards investors.'
In the early 2000s, Iowa authorized ratemaking principles to account for the added risk of investments into alternative energy sources, like wind and solar, which were new at the time.
These principles, according to the letter from former IUC members, 'freed' regulators from traditional ratemaking principles and granted them 'premium' returns on equity at levels that ranged between 1% to 2% above the national average.
The bill would expand the projects eligible for these ratemaking principles with the intent of attracting energy storage and nuclear electric power generation facilities in the state.
'With these changes, Iowa ratepayers could be paying some of the highest (return on equities) in the country for another round of very large utility investments,' the letter read.
Legislation sets regulations for anaerobic digesters on livestock operations in Iowa
The former IUC members cited a report completed by an outside firm in 2023, per requests of the Iowa Legislature, to review Iowa utility ratemaking laws and procedures.
The study found that rate-regulated utilities can receive advanced ratemaking approval with 'relative ease' and that the IUC had limited ability to 'determine whether an asset would truly benefit the electric system and the ratepayers that pay for it.'
It also said precedent around advanced ratemaking 'facilitates infrastructure build-up without thorough assessment by the IU(C)'
The former IUC members said they 'commend legislators for taking ratemaking reform seriously' but they recommend 'pausing the current legislation' or amending the bill, to better address the issue in a way that 'protects ratepayers.'
Geoff Greenwood, media relations manager for MidAmerican, said the letter 'ignores' that the returns can 'only be approved if they are found to be in the public's interest.'
'MidAmerican's track record over the past two decades proves that the policies in the bill allow us to deliver on our promise to provide safe, reliable and affordable energy when our customers need it,' Greenwood said in a statement.
He said returns on equity are approved 'after a robust process' in the IUC with input from the Office of the Consumer Advocate and customers. Greenwoods said the returns are 'not 'premium'' because they 'reflect the cost and risk of long-term investments' as they are applied to the 30- to 40-year lifespan of a facility.
Latest figures from MidAmerican point to average utility rates in Iowa that are 44% below the national average.
'The use of 'non-traditional' advance ratemaking principles is exactly what has made Iowa exceptional and resulted in some of the lowest electricity rates in the country,' Greenwood said.
He said MidAmerican additionally uses a method of revenue sharing that allows the company to use revenue, beyond a certain level of return, to 'pay off company generating facilities so that customers won't bear those costs in the future.'
'This customer-first mechanism incentivizes MidAmerican to better manage its operations and, when that happens, customers benefit,' Greenwood said in the statement.
The bill would also remove the requirement that projects are a baseload electric power generating facility, or one that essentially operates at all times, and lowers the generating capacity of the facility from at least 300 megawatts to 40 megawatts.
Bob Rafferty, with Iowa Businesses for Clean Energy which is one of the groups opposed to the bill, said these changes would allow companies to seek higher ratemaking principles on projects like gas peaker plants.
Per MidAmerican documents, a newly proposed $600 million peaker plant project would work when demand is high, and is expected to operate less than 10% of the year.
A fact sheet on the plants say they are a 'key addition' to the company's 'all-of-the-above generation strategy' to meet the expected increased demand of the next 20 years.
But Rafferty said utility companies have an incentive to build more capital assets, like generating stations and transmission lines, because they can profit from them.
He said it's 'important' to make sure the system doesn't allow a company to determine how many capital assets they need to build, as he alleges the bill would do.
Opponents are also worried about a line in the bill that says utilities should submit resource plans to the IUC that 'reflect the circumstances and management judgment of an electric utility.' Rafferty said this means an investor-owned utility would have to create its resource plans in line with what would benefit its shareholders, rather than ratepayers.
Iowa is currently one of a handful of states that does not require an integrated resource plan, defined by Midwest Energy Efficiency Alliance as an examination of energy supply, demand and potential risks to meeting demand at a reasonable cost.
Gov. Kim Reynolds' energy plan for the state, on which the bill is based, notes the need for integrated resource planning, or IRP, to comprehensively look at what energy sources will be needed for further growth in the state.
Current law requires utilities to submit energy efficiency plans every five years, with five- or 20-year energy needs forecasts.
Rafferty said when a utility proposes an investment be considered for ratemaking principles, the utilities commission doesn't get the 'big picture' of the project's impact on the state without an IRP.
'What the IRP should do is require it to be in the ratepayers' best interest, and the Iowa Utility Commission needs to be empowered to make sure that that is, in fact, the case,' he said.
ROE Letter 4-24-25
Former members of the Iowa Utilities Commission, Richard Lozier, Jr., Geri Huser, Sheila Tipton, Darrell Hanson and John Norris wrote a letter to legislators opposing the bill.
Under the bill, the Iowa Utilities Commission may make recommendations to the utilities on the resource plan, and the company must 'make a good faith effort' to inform and include suggestions from the commissioners, consumer advocate and stakeholders.
'The legislation, as it's currently constructed … would give the utilities a carte blanche to make any investment that they want and to earn a premium return on equity,' Rafferty said.
Rafferty as part of Iowa Businesses for Clean Energy, has banded with lobbyists from Iowa Business Energy Coalition, AARP, Iowa Economic Alliance, National Federation of Independent Business, Iowa Retail Federation and LSPower in opposition of the bill and to suggest lawmakers either 'fix it or forget it.'
An amendment suggested by the bill opponents would make it so that facilities outlined in resource plans are 'in customers' best interests.'
The proposed amendment would also allow the IUC to approve, reject or modify a resource plan and would greatly expand the ability of stakeholders to participate and weigh in on the plans.
The bill, as is, stipulates a resource plan should 'consider all reasonable resources' and should include 'adequate, cost-effective, and reliable energy service considering costs, fuel diversity, and probable future demand for energy.'
Rafferty said legislators need to think of utility rates like they think about taxes for Iowans.
'Their vote will determine whether taxes go up, or taxes don't go up,' he said.
A spokesperson from Alliant Energy said the bill will 'strengthen and help grow Iowa communities to meet the state's future energy needs.'
'We commend Governor Reynolds for leading on energy policy that promotes an all-the-above energy strategy, enhances customer transparency and participation for generation planning and is focused on driving economic development in this state,' the spokesperson said in an email.
Greenwood with MidAmerican said the bill is important in updating Iowa's policies that 'have been effective for customers for decades' and will keep the state from 'falling behind other states.'
'Simply put, Iowa's energy policy – as it is currently as well as the bill's proposed updates – works for Iowans,' Greenwood said.
Lawmakers noted during House hearings in early February the bill would have some amendments before it would be ready for floor debate. As legislators close out the 110th day of session, the bill remains stuck in a Senate appropriations committee and a House subcommittee.
House Speaker Pat Grassley said Thursday to reporters that the caucus is focusing on the budget before 'taking up significant pieces of policy.' When asked specifically about ROFR and the energy bill as a whole, the Republican leader said 'it's still pretty divided' among representatives.
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and other factors listed in the '2025 Earnings Guidance' section of this press release. For more information about potential factors that could affect Alliant Energy's business and financial results, refer to Alliant Energy's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC), including the sections therein titled 'Risk Factors,' and its other filings with the SEC. Without limitation, the expectations with respect to 2025 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Use of Non-GAAP Financial Measures To provide investors with additional information regarding Alliant Energy's financial results, this press release includes reference to certain non-GAAP financial measures. These measures include income and EPS for the three and six months ended June 30, 2024 excluding the asset valuation charge related to IPL's Lansing Generating Station and asset retirement obligation charges for steam assets at IPL. Alliant Energy believes these non-GAAP financial measures are useful to investors because they provide an alternate measure to better understand and compare across periods the operating performance of Alliant Energy without the distortion of items that management believes are not normally associated with ongoing operations, and also provides additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Alliant Energy's management also uses income, as adjusted, to determine performance-based compensation. In addition, Alliant Energy included in this press release IPL; WPL; Corporate Services; Utilities and Corporate Services; ATC Holdings; and Non-utility and Parent EPS for the three and six months ended June 30, 2025 and 2024. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends, and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Reconciliation of the non-GAAP financial measures included in this press release to the most directly comparable GAAP financial measures are included in the earnings summaries that follow. Earnings (in millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss) 2025 2024 2025 2024 2025 2024 IPL $ 98 $ 18 $ — $ 59 $ 98 $ 77 WPL 87 64 — — 87 64 Corporate Services 5 3 — — 5 3 Subtotal for Utilities and Corporate Services 190 85 — 59 190 144 ATC Holdings 10 9 — — 10 9 Non-utility and Parent (26 ) (7 ) — — (26 ) (7 ) Alliant Energy Consolidated $ 174 $ 87 $ — $ 59 $ 174 $ 146 Expand The following tables provide a summary of Alliant Energy's results for the six months ended June 30: 2025 2024 2025 2024 2025 2024 IPL $ 0.81 $ 0.32 $ — $ 0.23 $ 0.81 $ 0.55 WPL 0.77 0.61 — — 0.77 0.61 Corporate Services 0.03 0.02 — — 0.03 0.02 Subtotal for Utilities and Corporate Services 1.61 0.95 — 0.23 1.61 1.18 ATC Holdings 0.08 0.07 — — 0.08 0.07 Non-utility and Parent (0.19 ) (0.07 ) — — (0.19 ) (0.07 ) Alliant Energy Consolidated $ 1.50 $ 0.95 $ — $ 0.23 $ 1.50 $ 1.18 Expand Earnings (in millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss) 2025 2024 2025 2024 2025 2024 IPL $ 209 $ 81 $ — $ 59 $ 209 $ 140 WPL 198 156 — — 198 156 Corporate Services 8 7 — — 8 7 Subtotal for Utilities and Corporate Services 415 244 — 59 415 303 ATC Holdings 20 18 — — 20 18 Non-utility and Parent (48 ) (17 ) — — (48 ) (17 ) Alliant Energy Consolidated $ 387 $ 245 $ — $ 59 $ 387 $ 304 Expand ALLIANT ENERGY CORPORATION Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (in millions, except per share amounts) Revenues: Electric utility $ 851 $ 789 $ 1,703 $ 1,580 Gas utility 76 69 316 273 Other utility 11 10 25 24 Non-utility 23 26 44 48 961 894 2,088 1,925 Operating expenses: Electric production fuel and purchased power 150 138 325 301 Electric transmission service 151 147 308 300 Cost of gas sold 30 25 167 139 Other operation and maintenance: Energy efficiency costs 10 9 20 23 Non-utility Travero 15 16 31 33 Asset valuation charge for IPL's Lansing Generating Station — 60 — 60 Asset retirement obligation charge for steam assets at IPL — 20 — 20 Other 143 132 276 260 Depreciation and amortization 208 188 420 376 Taxes other than income taxes 31 29 62 61 738 764 1,609 1,573 Operating income 223 130 479 352 Other (income) and deductions: Interest expense 124 108 243 215 Equity income from unconsolidated investments, net (10 ) (15 ) (23 ) (31 ) Allowance for funds used during construction (23 ) (19 ) (41 ) (38 ) Other 1 2 4 4 92 76 183 150 Income before income taxes 131 54 296 202 Income tax benefit (43 ) (33 ) (91 ) (43 ) Net income attributable to Alliant Energy common shareowners $ 174 $ 87 $ 387 $ 245 Weighted average number of common shares outstanding: Basic 256.9 256.4 256.8 256.3 Diluted 257.3 256.7 257.3 256.6 Earnings per weighted average common share attributable to Alliant Energy common shareowners: Basic $ 0.68 $ 0.34 $ 1.51 $ 0.96 Diluted $ 0.68 $ 0.34 $ 1.50 $ 0.95 Expand ALLIANT ENERGY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2025 December 31, 2024 (in millions) ASSETS: Current assets: Cash and cash equivalents $ 329 $ 81 Other current assets 1,145 1,103 Property, plant and equipment, net 19,376 18,701 Investments 666 639 Other assets 2,234 2,190 Total assets $ 23,750 $ 22,714 LIABILITIES AND EQUITY: Current liabilities: Current maturities of long-term debt $ 1,373 $ 1,171 Commercial paper 292 558 Other current liabilities 914 986 Long-term debt, net (excluding current portion) 9,642 8,677 Other liabilities 4,384 4,318 Alliant Energy Corporation common equity 7,145 7,004 Total liabilities and equity $ 23,750 $ 22,714 Expand ALLIANT ENERGY CORPORATION Six Months Ended June 30, 2025 2024 (in millions) Cash flows from operating activities: Cash flows from operating activities excluding accounts receivable sold to a third party $ 762 $ 823 Accounts receivable sold to a third party (270 ) (261 ) Net cash flows from operating activities 492 562 Cash flows used for investing activities: Construction and acquisition expenditures: Utility business (976 ) (870 ) Other (89 ) (90 ) Cash receipts on sold receivables 198 306 Proceeds from sales of partial ownership interests in West Riverside Energy Center and Solar Facility — 123 Other (27 ) (2 ) Net cash flows used for investing activities (894 ) (533 ) Cash flows from financing activities: Common stock dividends (261 ) (246 ) Proceeds from issuance of long-term debt 1,162 969 Payments to retire long-term debt — (305 ) Net change in commercial paper (266 ) (423 ) Other 15 6 Net cash flows from financing activities 650 1 Net increase in cash, cash equivalents and restricted cash 248 30 Cash, cash equivalents and restricted cash at beginning of period 81 63 Cash, cash equivalents and restricted cash at end of period $ 329 $ 93 KEY FINANCIAL AND OPERATING STATISTICS Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Utility electric sales (000s of megawatt-hours) Residential 1,632 1,629 3,502 3,384 Commercial 1,514 1,496 3,115 3,020 Industrial 2,565 2,635 5,084 5,167 Industrial - co-generation customers 215 188 399 366 Retail subtotal 5,926 5,948 12,100 11,937 Sales for resale: Wholesale 651 653 1,342 1,333 Bulk power and other 1,176 1,087 2,554 2,757 Other 14 14 28 29 Total 7,767 7,702 16,024 16,056 Utility retail electric customers (at June 30) Residential 855,362 849,224 Commercial 146,521 146,003 Industrial 2,359 2,411 Total 1,004,242 997,638 Utility gas sold and transported (000s of dekatherms) Residential 3,190 2,838 17,229 14,662 Commercial 2,534 2,472 11,500 10,001 Industrial 390 420 1,207 1,185 Retail subtotal 6,114 5,730 29,936 25,848 Transportation / other 27,159 29,102 58,165 63,009 Total 33,273 34,832 88,101 88,857 Utility retail gas customers (at June 30) Residential 385,395 382,409 Commercial 45,150 44,981 Industrial 314 318 Total 430,859 427,708 Expand Estimated operating income increases (decreases) from impacts of temperatures (in millions) - Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Electric $ 7 ($ 1 ) $ — ($ 20 ) Gas (1 ) (3 ) (4 ) (14 ) Total temperature impact $ 6 ($ 4 ) ($ 4 ) ($ 34 ) Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Normal 2025 2024 Normal Heating degree days (HDDs) (a) Cedar Rapids, Iowa (IPL) 535 499 678 3,775 3,349 4,126 Madison, Wisconsin (WPL) 841 597 799 4,208 3,576 4,325 Cooling degree days (CDDs) (a) Cedar Rapids, Iowa (IPL) 313 290 256 318 290 258 Madison, Wisconsin (WPL) 224 210 201 224 210 203 Expand (a) HDDs and CDDs are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDDs and CDDs. Expand
CNN
30-07-2025
- CNN
Iowa Democrats face long odds to regain their top spot ahead of the 2028 primaries
Primary elections US elections Democratic Natl Committee Democratic Natl ConventionFacebookTweetLink Follow Ahead of the 2024 presidential primaries, Iowa Democrats launched a Hail Mary to save their status as an early nominating state. Chastened by the disastrous rollout of an app in 2020 that delayed the results of that year's caucuses, the state party switched to a vote-by-mail primary and made its pitch alongside dozens of other states vying to go first. It also warned that moving Iowa out of first would give Republicans an opening to claim Democrats had abandoned the state. It didn't work. And two years after the Democratic National Committee made South Carolina the first primary state, overhauled the early nominating state window and demoted Iowa at the behest of former President Joe Biden, the future of Iowa's Democratic caucuses looks bleaker than ever. Iowa must now compete against dozens of other states when the party begins its deliberations on the 2028 calendar, a process that could begin as early as later this year. The state party has lost its voice on the DNC's powerful rules and bylaws committee that runs the process, while rival early states Nevada, New Hampshire and South Carolina gained a seat each, as did Michigan, which moved up the calendar in 2024. The final makeup of the 2028 primary calendar will be critical to what strategies presidential campaigns employ and which candidates gain traction. Iowans are quick to note that their caucuses boosted the campaigns of former presidents Jimmy Carter and Barack Obama as well as former Transportation Secretary Pete Buttigieg. Republicans are expected to keep the start of their primary calendar in Iowa. Critics of the caucuses, however, argue that the early states should reflect the diversity of the nation and overlap with the swing states Democrats need to win the general election. Even Democrats who support Iowa having an early say in the process are willing to let go of the caucus system, which critics say lacks the accessibility and flexibility of primary elections. Under the traditional caucuses system, voters physically gather in places such as schools and churches the evening of the election and go through a series of votes, weeding out candidates who fail to gain enough support. The process can take hours. 'A generation of us have a lot of romanticism about the Iowa caucuses, and I do mourn that in some ways, but I think in the interest of fairness, making people stand for three hours in a gymnasium is just probably not the fairest way to do things,' said one Democratic strategist who has worked on several Iowa political campaigns. DNC officials have insisted that the process to apply to be an early state will be open. Chairman Ken Martin said throughout his campaign to lead the committee that the calendar criteria should be to design a schedule that's rigorous, efficient and would battle test candidates. 'The DNC is committed to running a fair, transparent, and rigorous process for the 2028 primary calendar. All states will have an opportunity to participate,' DNC communications director Abhi Rahman said in a statement. 'Iowa's DNC members and Chair Rita Hart are fierce advocates for Iowa Democrats and they will have their voices heard during that process.' Hart, the Iowa Democratic Party chair, said her current focus is on winning elections in 2026, when her party will contest an open governor's seat, a US Senate seat, and the state's four congressional seats, at least two of which are competitive. 'I do expect to have tough and direct conversations with the DNC regarding our Iowa caucuses and the serious concerns surrounding the Biden 2024 calendar,' Hart said. 'National Democrats let Trump get a head-start in the 2024 campaign by excluding Iowa.' The uncertainty hasn't stopped potential 2028 Democratic presidential candidates from adding Iowa to their early-state tours. Buttigieg held a May town hall in Cedar Rapids, where he reminded the crowd of his narrow 2020 caucuses win five years earlier. Arizona Sen. Ruben Gallego will appear at the Iowa State Fair, long seen as a rite of passage for presidential hopefuls, in August. And former US Ambassador to Japan Rahm Emanuel, who is now a CNN commentator, will be the guest of honor at a party fish fry in September. 'People default to what they've done in the past,' said Molly Magarik, an outgoing DNC rules and bylaws committee member from Delaware who doesn't support keeping Iowa first. 'And so absent an alternative process, it doesn't surprise me that people are still going to run the old playbook.' Within Iowa Democratic circles, there has been some debate about how hard the state should fight to keep its early-state status or if Democrats there should just ignore the DNC altogether. Pete D'Alessandro, a longtime Iowa Democratic strategist who worked on Bernie Sanders' presidential campaigns and supports either caucuses or a primary, argued that Iowa Democrats should just set their date and ignore any potential consequences from the DNC, including a loss of delegates. Candidates, he said, would likely still show up, especially as the Republicans' caucuses draw media attention. 'I'm gonna let you down a little secret, as someone who's worked on these campaigns: They're not coming here for the delegates,' he said.
