(Radio Iowa) – Four different business groups are calling on state utility regulators to adopt a series of reforms to address both the cost and the supply of power for Iowa consumers. Bob Rafferty represents Iowa Business for Clean Energy, one the groups that participated in a recent study that asked a basic question:  “How do we evolve the way we regulate this electric grid so we can have the most reliable, lowest cost and cleanest electric grid 10 and 20 years from now?” Rafferty says the study has four major recommendations that would allow the state-regulated utilities to make infrastructure improvements, while ensuring rate increases in the electric bills businesses and individuals pay are reasonable.

“The business community is united, big and small, on this issue,” Rafferty says. “We need reform.” The Iowa Utilities Commission recently issued an order that increased Alliant Energy’s rates for Iowa businesses by 15 percent. Residential rates went up six percent. Rafferty says that should be an eye opener because Alliant’s Iowa customers now pay electric rates that are higher than the average residential and commercial rates in 37 other states.

“For those communities to have the ability to compete economically, we need to find a way to start addressing that disparity so they can have a strong economic future,” Rafferty says. “Electric prices are only going to become more and more important as the economy becomes more and more dependent on electricity as opposed to gas.”

The business groups are asking that the Iowa Utilities Commission use what’s called “Integrated Resource Planning” when evaluating future electric rate increases. Rafferty says it’s a method that analyzes both the expected demand and supply of electricity in the future, with the goal of considering all options for arriving at the most affordable rates.