Iowa Electric Rates
In March 2014, the Iowa Utilities Board approved MidAmerican Energy’s request for an electric base rate increase.
- The rate increase was phased in over approximately three years. The final increase in base rates took 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 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.
To simplify rate structures in Iowa, MidAmerican Energy combined all special enduse rates, including electric heating rates, into one residential rate that is consistent across our service territory. Read more about electric heat basics.
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.