Luther College will save thousands of dollars on electricity costs because of the Iowa Utilities Board ruling

Luther College spends just under one million dollars a year on electricity costs.  When Alliant Energy asked the Iowa Utilities Board to approve a rate increase in 2019, the utility proposed increasing rates by 33.23 percent for the category Luther College is in.  That meant the college was looking at a drastic increase in its costs.

So Luther College joined with five other Decorah organizations to form "Decorah Area Group," which hired an attorney to argue their case before the Iowa Utilities Board.  Alliant's proposed rate for residential customers was 24.45 percent, but it was reduced to 15.44 percent in the Iowa Utilities Board's order.  But the Large General Service--Supplementary rate of 33.23 percent was reduced to 12.66 percent in a November 7th filing by Alliant with the Iowa Utilities Board.

Luther College Center for Sustainable Communities Director Jim Martin-Schramm says he and Luther Director of Facilities Services Jay Uthoff have crunched numbers after reading the actual text of the IUB ruling and believe Luther's electricity bill will go up 10.1 percent in the future (For this year, the increase will be 6.1 percent because of the credits from a one-time only tax benefit rider).

Obviously, a $100,000 increase is better than a $300,000 increase.  But Martin-Schramm says some programs in the works to lessen Luther's electricity consumption would reduce the impact further.  A La Crosse energy consulting firm recently presented Luther with a list of over 60 possible steps to take to lessen energy consumption.  The steps will be taken as budgets allow, but Martin-Schramm says the consultant projected a 20 percent reduction in electricity usage if all recommendations were enacted.

The lower Large General Service--Supplementary rate will affect around 50 other Alliant customers in Iowa.  Winneshiek Energy District Director Andy Johnson calls the new lower rate "a significant win" for the Decorah Area Group and other groups which questioned the original 33.23 percent rate increase.