Alliant Energy's Iowa customers should see savings in their utility bills beginning this summer as a result of new lower federal taxes.
The Cedar Rapids-based Alliant has proposed to deliver nearly $75 million in tax-related savings to its customer base, including its residential, industrial and commercial customers. The savings were outlined in an updated filing to the Iowa Utilities Board, which must approve the plan.
For the typical residential electric customer, the tax reform will result in an annual savings of $50-$60, while the typical residential natural gas customer would see an annual savings of nearly $30.
Alliant spokesman Justin Foss said the $75 million in tax savings is the result of the federal corporate income tax rate lowering from 35 to 21 percent as well as tax-related savings realized from Alliant's transmission providers.
If approved, he said the savings will appear will appear in the form of lower energy costs over the year. There will not be a credit or rebate on customers' bills, Foss added.
"These tax savings are great for our Iowa customers and the new, lower corporate tax rate will benefit our families, businesses and community today and in the future," Doug Kopp, president of Alliant's Iowa energy company, said in a news release. "In the last six years, we've delivered about $500 million in other separate tax-related savings to customers, reducing energy costs."
Foss said Alliant has realized other savings by leveraging various tax strategies.
Alliant Energy provides electric service to 490,000 retail customers and natural gas service to 220,000 retail customers in Iowa, including 25,000 electric customers in Clinton, Scott and Muscatine counties as well as 26,000 natural gas customers in Clinton and Muscatine counties.
MidAmerican Energy Co., which serves the metro Quad-Cities, announced last week that it has proposed passing on its $42 million federal tax break to its customers.