On May 17, 2013, MidAmerican Energy Company (MidAmerican) filed a proposal to increase its Iowa electric base rates with the Iowa Utilities Board (Board).
On August 15, 2013, the Board issued an order setting temporary rates in this case, granting MidAmerican a $45.2 million annual revenue increase while its final decision in this case was pending. The average residential monthly bill increase was about $2.73 (3.6 percent) under temporary rates. On February 28, 2014, the Board held a verbal decision meeting in this rate case and issued a MidAmerican electric rate decision news release. On March 17, 2014, the Board issued its decision order approving settlement agreement, with modifications, which maintains the temporary rate increase and allows the remainder of the $135.5 permanent revenue increase to be implemented in two additional phases, in 2015 and 2016, with each phase estimated to generate $45.15 million in additional revenues. Specific customer rate impacts will not be finalized until after the Board approves rate compliance tariffs, which are due from MidAmerican by April 6, 2014.
The approved settlement includes a 10-year rate equalization plan to balance rates in MidAmerican’s East, North, and South service territories, which resulted from past utility acquisitions and mergers. The proposed consolidation of rates in the various rate zones will begin in 2014 and will be revenue neutral (not increase MEC revenue). Rate impacts will vary based on customer class and service zone. MidAmerican will also be allowed to add two adjustment clauses to Iowa customers’ bills to help cover the costs of energy production and transmission.
The approved settlement restricts MidAmerican from implementing any additional electric rate increases until 2018, unless MidAmerican’s Return on Equity (ROE) falls below 10 percent. The decision allows for the continuation of MidAmerican’s revenue sharing with its customers at a rate of 80 percent when the utility’s ROE reaches 11 percent during a given year. The customer revenue share is not refunded and goes into a fund to help offset future rate costs to customers.
All documents filed in this rate case, Docket No. RPU-2013-0004, are available on the Board’s electronic filing system.
Customer Comment Meetings Held
MidAmerican provides electric service to approximately 641,000 customers in Iowa. The Board held eight customer comment meetings in this rate case:
- Iowa City: June 13, 2013.
- Des Moines: June 17, 2013.
- Storm Lake: June 18, 2013.
- Council Bluffs: June 24, 2013.
- Sioux City: June 25, 2013.
- Davenport: June 26, 2013.
- Waterloo: June 27, 2013.
- Fort Dodge: July 2, 2013.