Iowa Electric Rates
New electric rates went into effect in Iowa July 31, 2014. The company’s last electric base rate increase was in 1995.
In March 2014, the Iowa Utilities Board approved MidAmerican Energy’s request for an electric base rate increase; new rates became effective July 31, 2014. The company’s last electric base rate increase was in 1995. New line items and a new electric rate code appear in the Electric Charges section of each bill. New items include the following:
- The rate increase will be phased in over approximately three years and began with interim rates Aug. 15, 2013, and was followed by a base rate increase effective Jan. 1, 2015. The next increase in base rates will take effect 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.