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Definition of Terms

The following are definitions of terms found on your bill:

Basic Service Charge: The monthly basic service charge partially covers fixed costs incurred to serve each customer, regardless of use.

CCF: Natural gas is measured by volume. One CCF represents 100 cubic feet of natural gas.

Delivery Charge: This charge covers the costs associated with distributing gas through our system to you.

Demand Charge: The demand charge reflects a portion of the cost of generating, transmitting and distributing electrical energy to you and is based on peak usage.

Due Date: Your bill is due and payable on or before the date shown on your bill. A late payment charge will be applied to amounts not paid by the due date.

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 monthly adjustments to reflect fuel and power costs as they occur.

Energy Charge: The energy charge reflects the cost of generating, transmitting and distributing electrical energy to you and is applied to energy measured during the month.

Energy Charge Adjustment: This adjustment reflects the cost of power plant fuel or purchased power.

Energy Efficiency Charge: A charge that allows MidAmerican Energy to recover the costs of energy efficiency programs.

Estimated Reading: If we are unable to obtain an actual meter reading, the amount of the bill will be estimated based on past usage. Any necessary adjustments for an estimated bill will be made the next time your meter is read and will appear on the following bill.

Fuel Adjustment Clause: A charge to recover the costs of fuel used in company-owned generating stations and purchased power.

Gas Supply Charge: This charge reflects the cost of purchased natural gas.

kWh: A kWh is a unit of electric usage. One kilowatt-hour is the amount of electric energy used to keep one 100-watt light bulb burning for 10 hours.

Meter Class Charge: The meter costs incurred to serve each customer’s natural gas needs.

Meter Service Charge: A charge for the performance of functions related to the installation, testing, maintenance, repair and reading of electric meters used for billing of customers and management of meter information.

Phase-In Factor: Phase-in adjustment factors are applied to electric service rates for the purpose of phasing in MidAmerican Energy’s approved increase in revenue.

Pipeline Transport Charge: This reflects the cost incurred to reserve capacity on the interstate pipeline system in order to deliver gas to you. If the pipeline transport charge is not a line item on your bill, it is included in the gas supply charge.

Pressure: The pressure factor adjusts the metered gas usage to compensate for variations in metering and local atmospheric pressure.

Prorate: The prorate factor adjusts for a billing period shorter or longer than normal.

Rate: This designates your gas or electric billing rate at MidAmerican Energy. Tariff and rate schedule information is available upon request.

Rate Equalization Factor: Equalization adjustment factors are applied to electric service rates for the purpose of ensuring all Iowa MidAmerican Energy customers will pay 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.

Supply Charge: A charge for the costs of generating electricity.

Therms and Btu Factor: We bill you on the number of therms of natural gas used because the heating value of a cubic foot of gas varies. The therm is a unit of constant heating value, and the therm factor converts volumes of gas used from cubic feet to therms. One therm equals 100,000 Btu (British Thermal Units).

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 forecasted transmission improvement costs, subject to an annual reconciliation to actual expenditures.