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Iowa Utilites Bd - Electric IncCity Manager's Office City 50 West 13th Street Dubuque. Iowa 520014864 (563} 589-4110 office (563} 589-4149 fax ciymgr@cityofdubuque.org Iowa Utilities Board 350 Maple Street Des Moines, iowa 50319-0069. Interstate Power and Light Company (Alliant Energy Company) Electric Rate Increase Request; Docket No. RPU-02-3 June 13, 2002 Dear Board Members: Thank you for the opportunity to comment. Interstate Power and Light Company (Alliant Energy Company) has been one of the City's economic development partners throughout the years. The City of Dubuque commends the company in its policy to assist the City in developing our industrial parks, and in assisting in attracting new development to the City. The City of Dubuque operates municipal utilities, and understands the need to adjust rates as capital and operational costs continue to rise. Therefore. the City is not opposed to a rate increase. We have confidence the Iowa Utilities Board will determine the appropriate percentage of increase the company will be granted. However, the City of Dubuque is very concerned that the proposed rate increase, combined with the equalization of rates in all AIliant zones, will have significant impacts on all classes of users in Dubuque. The increase in Dubuque rates could be significantly higher than the 9.6% increase under consideration. Our analysis and comparison with other zones indicates that the increase could be as high as 29%. We hope you would agree that such an increase would be excessive. Interstate Power has been a very efficient utility. Our current rates in the City of Dubuque are reflective of that efficiency. Our citizens and businesses were not responsible for the Interstate Power merging with companies who were not as efficient or companies with high capital and operating costs for nuclear power plants. Therefore our citizens should not be penalized because of these mergers. The City of Dubuque respectfully requests the Iowa Utilities Board protect our citizens and businesses from the significant negative impacts of the combination of equalization of rates and the requested increase. Sincerely, Michael Van Milligen City Manager Cc: Terrance Duggan, Mayor Dubuque City Council Members Barry Lindahl, Corporation Council Cindy Steinhauser, Assistant City Manager Bill Baum, Economic Development Director