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1 1 SENATE CONCURRENT RESOLUTION NO. __
1 2 BY BARTZ
1 3 A Concurrent Resolution requesting Interstate Power
1 4 Company to refund certain farm customer charges.
1 5 WHEREAS, on July 31, 1992, Interstate Power Company
1 6 filed a request with the Iowa Utilities Board to
1 7 change its electric rate structure; and
1 8 WHEREAS, Interstate Power Company's cost-of-service
1 9 study indicated that there should be significant
1 10 alterations in the way costs to customers had been
1 11 allocated in the past, in particular, the study showed
1 12 that 3-phase farm customers' rates should be
1 13 increased; and
1 14 WHEREAS, on May 26, 1993, the Utilities Board
1 15 issued a decision, RPU-92-10, approving a cost-of-
1 16 service and rate design that resulted in major rate
1 17 changes for many of Interstate Power Company's
1 18 customers; and
1 19 WHEREAS, the rate change, which became effective on
1 20 July 14, 1993, resulted in an estimated average
1 21 aggregate rate increase to farm customers of 14.3
1 22 percent; and
1 23 WHEREAS, the majority of the 3-phase farm customers
1 24 received average annual increases between 15 and 50
1 25 percent, but a few 3-phase farm customers received
1 26 average annual increases which ranged from 100 to 300
1 27 percent; and
1 28 WHEREAS, on August 4, 1993, Interstate Power
1 29 Company filed a request with the Utilities Board for a
1 30 general rate increase in temporary and final electric
2 1 rates; and
2 2 WHEREAS, on June 3, 1994, the Utilities Board
2 3 issued a decision, RPU-93-6, approving a revenue
2 4 increase but placing a rate cap on the 3-phase farm
2 5 customer class, which had the effect of reducing rates
2 6 which some of the 3-phase farm customer class had been
2 7 paying since the RPU-92-10 decision became effective
2 8 on July 14, 1993; and
2 9 WHEREAS, the decision stated that "[w]hile the
2 10 ultimate goal is rates generally based on costs, the
2 11 Board recognizes it is also appropriate to ameliorate
2 12 unreasonable rate shock resulting from movement toward
2 13 cost-based rates.... The board considered the parties'
2 14 recommendations and has determined that the fairest
2 15 approach to addressing the problem is to implement a
2 16 demand-metered "billing cap" for 3-phase farm
2 17 customers..."; NOW THEREFORE,
2 18 BE IT RESOLVED BY THE SENATE, THE HOUSE OF
2 19 REPRESENTATIVES CONCURRING, That Interstate Power
2 20 Company be requested to refund the difference in the
2 21 charges to the 3-phase farm customer class from the
2 22 date in which the increased rates were effective on
2 23 July 14, 1993, to the date in which the 3-phase farm
2 24 customer class rates were capped; and
2 25 BE IT FURTHER RESOLVED, That, upon passage,
2 26 enrolled copies of this resolution be sent to Mr.
2 27 Wayne Stoppelmoor, President and Chief Executive
2 28 Officer for Interstate Power Company, the Board of
2 29 Directors of Interstate Power Company, and Mr. Kent
2 30 Ragsdale, Staff Counsel for Interstate Power Company,
3 1 at 1000 Main Street, P.O. Box 769, Dubuque, Iowa
3 2 52004-0769 and to the Iowa Utilities Board.
3 3 LSB 1453XS 76
3 4 js/sc/14
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