Rates

Iowa Electric Rates Update

This is the first electric base rate increase since 1995. MidAmerican Energy Company remains committed to being a low-cost electricity provider, controlling expenses, and helping customers save money by using electricity efficiently. We take great care to always act in the best interest of our customers and will continue to do so as we provide energy for Iowa. Here's a letter from William J. Fehrman, MidAmerican Energy's president and CEO, about the new rates.

Billing Changes

MidAmerican Energy’s electric rate increase filing was approved in March 2014, and the new tariffs were approved on July 31, 2014. New line items and a new electric rate code will appear in the Electric Charges section of each bill. New items include:

  • Phase-In Factor: The rate increase will be phased in over approximately three years and began with interim rates Aug. 15, 2013. The next increases in base rates will take effect Jan. 1, 2015, and Jan. 1, 2016.
  • Rate Equalization Factor: Equalization adjustment factors are applied to electric service rates for the purpose of moving all Iowa MidAmerican Energy customers to the same electric base rate within each rate class – residential, commercial and industrial. Rates will be adjusted in equal annual increments over the next 10 years. Rate equalization will not increase revenue for MidAmerican Energy. Depending on a customer’s rate zone, the result of rate equalization could increase or decrease a customer’s rate.
  • Electric Heat Rate: Another way MidAmerican Energy is simplifying rate structures in Iowa is by combining all special end-use rates, including electric heating rates, into one residential rate that is consistent across our service territory. Read more about electric heat basics.
  • New Electric Rate Code: Customers will see a new electric rate code in the Electric Charges section of the bill. MidAmerican Energy placed customers on the most economical rate based upon the consumption data available. As a result, some customers will go from an energy-only to a demand based rate structure and vice versa. Some customers may only see a change in the rate code on the bill and will remain on the same rate structure. Read more about the differences between energy-only charges and demand charges.
  • Energy Adjustment Clause: MidAmerican Energy continually experiences increases and decreases in the cost of fuel and purchased power used to supply electricity to its customers. This clause allows MidAmerican Energy to make annual adjustments to recover fuel and power costs, subject to an annual reconciliation to actual expenditures.
  • Transmission Cost Adjustment: MidAmerican Energy supports continual improvements to the national electric grid to benefit regional and local reliability. This cost adjustment allows MidAmerican Energy to make annual adjustments to recover the forecast transmission improvement costs, subject to an annual reconciliation to actual expenditures.
View our frequently asked questions for additional information.

Manage Your Monthly Bill – Save Some Green

MidAmerican Energy offers a number of options to help customers use less energy while maintaining the comfort and efficiency of their home or business:
  • Complete a free online energy assessment.
  • Call 800-545-0762 to find out if a home qualifies for the free on-site energy assessment.
  • Call 800-292-6448 and let one of our energy experts assist you with determining which service best meets your building’s needs. You can complete an online form requesting a callback from our energy experts to help you get started in enhancing the performance of your building.
Energy efficiency specialists will provide information on rebates that customers may qualify for and the programs they may want to implement in their home or business to help reduce energy usage. MidAmerican Energy also offers numerous energy efficiency programs for residential, commercial and industrial customers. Lower energy costs by doing little things like using CFL or LED bulbs, turning off unused lights, and using a programmable thermostat. Review MidAmerican Energy’s top 10 energy efficiency tips for more ideas.

Manage Your Monthly Bill – Time of Use Rates

Regular rates do not vary based on time of day. If a lot of electricity is used during the times of day when electricity demand and the cost of electricity is lowest, Time of Use rates can help save money. Appliances such as air conditioners, dishwashers, space heaters, clothes washers and dryers, and household electronics consume high amounts of energy. Time of Use rates may be especially cost effective when usage of appliances and household electronics that consume the most electricity is shifted to off-peak hours. Off-peak hours are from 10 p.m. – 8 a.m., seven days a week, year round. Find out more about Time of Use rates and how to request a service change.

Convenient Bill Payment Options

  • Budget Billing: Ease fluctuations in monthly payments and enjoy the convenience of a more predictable bill with MidAmerican Energy’s free Budget Billing plan. The total annual cost for electricity and natural gas remains the same. Instead of paying actual energy costs each month, which fluctuate throughout the year, pay the same average amount each month with no unexpected surprises. The average monthly amount is based on past energy use. Access My Account and select Start Budget Billing from the Billing & Payment menu. Follow the prompts to enroll online. A minimum of three months' usage is needed to enroll online.
  • Payment Assistance: Contact MidAmerican Energy at 888-427-5632 if you are having trouble paying your bill. We can discuss a payment arrangement that will allow payments to be made over time and also can provide information on local agencies that may provide assistance. For example, eligible homeowners and renters can seek assistance with home heating and/or cooling needs through the Low Income Home Energy Assistance Program, or LIHEAP. Though federally funded, LIHEAP programs are administered at the state level, so each LIHEAP program can vary. For program information such as applications, eligibility requirements, available assistance and benefit levels, find the outreach agency in your area by visiting www.dcaa.iowa.gov.