IES Utilities to Challenge Iowa Utilities Board's Ruling

Strategic Insights -

IES Utilities, Inc. has expressed disappointment over the Iowa Utilities Board's final order in the electric pricing case, requiring the company to reduce its rates by $16.9 million. The company has decided to exercise its option to request a rehearing of the decision, citing concerns over several crucial areas. To mitigate the impact of the Board's decision, IES Utilities is evaluating and implementing cost reduction measures in its operations and construction activities.

Key Takeaways:

  • The Iowa Utilities Board issued its final order in the IES Utilities Inc. electric pricing case on May 12, 1995, requiring IES to reduce its rates by $16.9 million.
  • IES Utilities has decided to ask the Board to reconsider elements of its decision, citing concerns over several crucial areas.
  • The company is evaluating and implementing cost reduction measures in its operations and construction activities to partially mitigate the impact of the Board's decision.
  • IES Utilities has until June 1 to formally file its request for a rehearing.
  • No prices will change until the issues in the case have been decided.
  • The company's northern and southeastern zones will be required to reduce their annual revenue, while the southern zone will not be allowed to have any overall price increase.
  • IES Utilities Manager of Corporate Communications, Diane Ramsey, stressed the importance of minimizing any impact on safety to employees or customers and the level of service to customers.

Statistics:

  • The Iowa Utilities Board's decision requires IES Utilities to reduce its rates by $16.9 million.
  • IES Utilities has until June 1 to formally file its request for a rehearing.

Sources:

  • PRNewswire, May 15, 1995.