Fareway Stores' corporate office files an objection to the proposed Alliant Energy rate hike

Fareway Stores Corporate Office has filed an objection to the proposed Alliant Energy electric and natural gas rate increases.

In a filing with the Iowa Utilities Board, Fareway Senior Vice President and General Counsel Garrett Piklapp says, "This proposed rate increase will cost Fareway (and other similarly-sized companies) hundreds of thousands of dollars per year without any additional benefit or change in service."

The letter says Fareway studied the electrical bills for two of its stores of similar age and size just 35 miles apart.  It learned the store served by Alliant already had electric bills approximately 25 percent higher than the store served by MidAmerican--even prior to the interim rate increase made by Alliant on April 1st.

Piklapp wrote, "The proposed rate increase will have a trickle-down effect.  If utility costs collectively rise by hundred of thousands of dollars per year, it will affect the cost of goods for our customers and/or the wages paid to our employees as this kind of increase simply cannot be absorbed."

The letter also suggested the Iowa Utilities Board reject the 25 percent increase and approve a final increase in line with the interim increase of 5.5 percent.