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Iowa Electric Rates

In March 2014, the Iowa Utilities Board approved MidAmerican Energy’s request for an electric base rate increase.

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 a 10-year period (2014-2023). 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 Rate Code

  • The electric rate code is shown in the Electric Charges section of the bill. MidAmerican Energy places customers on the most economical rate based upon the consumption data available. Some customers are billed on an energy-only basis while others are billed on a demand based rate structure. Read more about the differences between energy-only charges and demand charges.

    For residential customers on Rate RS with usage over 1,000 kWh per month, service will be discounted approximately 45% from October to May. Customers on Rate RS enjoy a lower rate for their higher winter usage.

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. It also passes the benefits of federal tax credits resulting from wind production back to customers.

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.