The proposal would result in a monthly increase of about $1.14 for the typical residential customer.

The company said that impacts of the change would vary for residential, commercial and industrial customers, depending on their usage patterns and the final rate level authorized by the PSCW.

According to the PSCW, Alliant Energy has the lowest monthly residential electric bills among Wisconsin’s largest investor-owned utilities.

The plan also includes savings from 2012, when actual fuel costs came in lower than expected and without the savings, the 2014 increase would likely experience a 3.1% rise.

Wisconsin Power and Light president John Larsen said the company managed electric fuel costs even better than expectations during 2012.

"This allowed us to apply these customer savings against future increases. By doing so, the requested increase for next year is less than two percent, which is good news for our customers here in Wisconsin," Larsen added.