Iowa Gas Delivery Rates - Increase Request
In June 2023, MidAmerican Energy will file a request with the Iowa Utilities Board (IUB) to increase our natural gas delivery rates in Iowa. As a regulated utility, the increase must go through a regulatory review and approval process, including public comment meetings.
MidAmerican projects its request would result in an average 6% increase of total monthly gas bills in Iowa. If approved, the average residential customer would see an estimated monthly gas bill increase of less than $5, or an additional $60 per year. We understand that inflation has put financial pressures on our customers, which is why we do everything we can to control costs. To help mitigate the potential impact of this increase, we waited to request this increase at a time when the cost of natural gas fuel itself is the lowest it's been in years.
MidAmerican’s current gas delivery rates have been in place since 2002. Over the last 20 years, our operational costs have increased to the point that our current distribution rates no longer reflect the actual cost of serving our Iowa customers. This rate increase will ensure we can continue to make the system investments required to maintain and deliver safe, reliable natural gas service.
Despite this pending rate increase, most customers will experience lower overall gas bills compared to last year even after the increase takes effect. This is due to the steady decline of natural gas market prices – a separate line item that is not included in our base rates.
We know you have questions, and we want you to have the answers you need. Get all the details below.
Frequently Asked Questions
How much will my bill go up?
MidAmerican projects its request would result in an average increase of 6% to monthly gas bills in Iowa. If approved, the average residential customer's bill would increase by less than $5 per month.
MidAmerican projects its request would result in an average increase of 6% to monthly gas bills in Iowa. If approved, the average residential customer's bill would increase by less than $5 per month.
It’s important to remember that your gas bill has two parts: a supply charge and a delivery charge. The supply portion of the bill fluctuates based on market prices and is passed through to customers dollar for dollar. The requested rate increase will not impact this portion of your bill.
The delivery portion of your bill includes the basic service charge, meter charge, delivery charge and any rate-specific administration fees. These are referred to as the “base rates,” which is the portion of your bill we are proposing to increase.
What will the gas rate increase be used for?
The increase will allow us to continue to deliver on our commitment to Iowa customers – providing safe and reliable gas service. This includes ensuring the integrity of our current systems, as well as completing projects like:
The increase will allow us to continue to deliver on our commitment to Iowa customers – providing safe and reliable gas service. This includes ensuring the integrity of our current systems, as well as completing projects like:
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Infrastructure expansion to serve rapidly growing areas in Iowa
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Integrity management projects required to comply with safety regulations
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System reliability enhancements
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Government-mandated municipal infrastructure projects that require the relocation of facilities
If the rate increase is approved, when will the new rate take effect?
After the rate case is filed, MidAmerican will put temporary rates into effect for Iowa gas customers in late June 2023. The Iowa Utilities Board (IUB) will make a final determination on the rate case no later than April 2024. If the final rates approved by the IUB are lower than the temporary rate increase, the difference will be refunded to you as a credit on your bill, plus interest.
After the rate case is filed, MidAmerican will put temporary rates into effect for Iowa gas customers in late June 2023. The Iowa Utilities Board (IUB) will make a final determination on the rate case no later than April 2024. If the final rates approved by the IUB are lower than the temporary rate increase, the difference will be refunded to you as a credit on your bill, plus interest.
When will the Iowa Utilities Board host public comment meetings?
- Sioux City – 6 p.m., Monday, July 24, 2023, Sioux City Convention Center, 801 Fourth St.
- Waterloo – 6 p.m., Wednesday, July 26, 2023, Majestic Moon, 1955 Locke Ave.
- Des Moines – 6 p.m., Thursday, July 27, 2023, Holiday Inn Des Moines-Airport Conference Center, 6111 Fleur Drive
- Davenport – 6 p.m., Monday, July 31, 2023, The River Center, 136 E. Third St.
- Cedar Rapids – 6 p.m., Tuesday, August 1, 2023, The Olympic South Side Theater, 1202 Third St. SE, Suite 200
- Virtual – 11:30 a.m. to 1:30 p.m., Thursday, August 3, 2023. (visit the IUB's website to request call-in information)
Is MidAmerican going to request a rate increase for customers outside of Iowa?
Recently, the South Dakota Public Utilities Commission approved a MidAmerican gas delivery increase for South Dakota customers. We do not have plans to request an increase in Illinois or Nebraska at this time.
Recently, the South Dakota Public Utilities Commission approved a MidAmerican gas delivery increase for South Dakota customers. We do not have plans to request an increase in Illinois or Nebraska at this time.
Where can I learn more about your natural gas rates?
As part of our proposed delivery rate adjustment, we have consolidated legacy rate classes to better meet the needs of our customers and communities. Below you will find links to our past, proposed and present natural gas rate tariffs. Please note that our current rate classes are listed in the current Iowa Gas Tariffs.
For additional questions regarding your current or proposed natural gas rate, please call us at 1-888-427-5632 or email onlinecustomerservice@midamerican.com.