On October 8, 2012, the Iowa Utilities Board issued a news release and an order approving a settlement agreement establishing an additional charge as part of MidAmerican’s standard electricity rates for calendar years 2012 and 2013. The increase is due to the utility’s higher costs of environmental compliance and coal and coal transportation. The settlement allows MidAmerican to increase its annual electric revenue by $38.7 million (4 percent) in 2012, which was implemented in March, and an additional $37.3 million in 2013, for a total increase of 6.7 percent.
Average residential customers are currently paying an estimated monthly electric bill increase of $2.33 for temporary rates in effect since March, and to remain intact for 2012. In 2013, average residential customers can expect to see an additional $1.30 monthly bill increase, or a $3.63 total monthly bill impact.
On February 21, 2012, MidAmerican filed its initial rate request to add two automatic adjustment clauses to its Iowa customers’ electric bills for increasing costs of environmental compliance and coal and coal transportation. On July 27, 2012, the Office of Consumer Advocate, MidAmerican, and the Iowa Industrial Group filed a settlement agreement for the Board’s consideration and a joint motion asking that it be approved. The Iowa Industrial Group is a group of Iowa industrial employers that are major MidAmerican electric service customers. The Consumer Advocate represents the public interest in all Board proceedings.
In early 2012, six public comment meetings were held in this case:
- February 23, 2012, Utilities Board Building, Hearing Room, 1375 E. Court Avenue, Des Moines
- February 28, 2012, Modern Woodmen Park, Suites 10 & 11, 209 S. Gaines Street, Davenport
- March 1, 2012, Petersen Town Hall, Waterloo Center for the Arts, 225 Commercial Street, Waterloo
- March 6, 2012, Briar Cliff University, 3303 Rebecca Street, Stark Student Center, Clare Room, Sioux City
- March 8, 2012, Johnson County Fairgrounds, 4261 Oak Crest Hill Road SE, Montgomery Hall, Iowa City
- March 13, 2012, Council Bluffs Public Library, Rooms A & B, 400 Willow Avenue, Council Bluffs
The Board cancelled the October 1, 2012, evidentiary hearing.