Iowa rates for electricity and natural gas
Learn more about our Iowa electric and natural gas rates
Iowa Energy Price Outlook
At Alliant Energy, we work hard to manage our costs and provide you with the tools necessary to budget for future energy costs. Your energy bill is made up of several components. Some, like base rates and the basic service charge, are set by the Iowa Utilities Board and may stay the same for several years.
Other components change annually, or even monthly, based upon the actual costs to provide you with these services. Of course, the weather remains the biggest factor in how your bill may fluctuate from month to month.
This page will be updated regularly to provide the latest detail on the components that make up your energy costs.
If you’d like to learn more about what each line item on your bill means, visit the Understanding Your Bill section of our webpage.
Use these links to explore expected pricing components and pricing materials:
Alliant Energy has not filed a natural gas rate review, so base natural gas costs are not expected to change in 2021. This base rate covers the cost of necessary improvements we make to deliver natural gas to our customers: replace aging materials, install new safety equipment, upgrade existing pipelines for more reliable and expanded service and add advanced metering. See where these line items appear on your bill here.
Much of the lower costs in 2020 were related to changes in state laws that helped rightsize the legacy natural gas energy efficiency programs. This created a savings for Alliant Energy’s Iowa natural gas customers.
In 2021, those energy efficiency costs will return back toward normal collection, which may result in overall higher costs. Additionally, the credits from the tax benefit rider ended in January 2021. In January 2021, customers did receive a refund that was provided through a reduction in the Purchased Gas Adjustment bill component.
While we do expect natural gas bills to be higher, costs should still be less than 2018 and 2019.
The cost to obtain gas for our customers has been stable or lower in recent years. The cost to procure natural gas for our customers is a direct pass-through for our customers and generally makes up more than half of a customer’s monthly bill.
Natural gas tariffs
This year, Alliant Energy’s Iowa customers should see a record amount of their energy come from the wind. For the last few years, we’ve been building new wind farms in Iowa. Two came online in 2019, and the next three came online in 2020.
We have added enough wind energy to power nearly half a million Iowa homes each year!
Cost Changes for 2021
Overall, electric bills for residential customers from 2020 to 2021 are expected to increase slightly.
- Tax benefits are flowing through the Energy Adjustment Clause (EAC) Charge and continue through June 2021, further reducing costs. With the end of our nuclear energy purchase power agreement in 2021, customers will see additional cost benefits.
- In 2021, customers will see even more benefits as the company’s new wind farms are online. This energy comes without a cost for fuel – so the Energy Cost line item should continue to decrease.
- In 2020, a new line item called Renewable Energy Rider appeared on bills. This includes costs from the wind farms constructed in Iowa.
- Transmission costs are higher than 2020 due to ongoing investments in the transmission system.
Total Bills
Overview: This is an overall look at the “total amount due” portion of your bill. While the per kWh cost of your bill is the same as others in your class, your home or business’s usage has the largest impact on your bill. If you add a new appliance or upgrade to a high efficiency cooling unit, these changes will impact your total bill.
Below, you’ll find details on each element of your bill and how they may change in the future.
Future outlook: (Varies)Base rates will not change from their current levels in 2021. These rates have been in effect since March 2020. In a year with no base rate changes, riders are the main drivers for cost adjustments. Each of these are noted in the components section below. The change in transmission costs impacts each class differently, based on how those costs are allocated. That creates different outcomes. At this time, we expect residential costs to be slightly higher in 2021 than they were in 2020. Smaller commercial customers will see higher costs, but larger commercial and industrial customers will likely experience slightly lower costs in 2021 compared to 2020. We expect overall costs to be slightly lower in 2021, compared to 2020 for residential and small business customers. Larger commercial and industrial customers should expect slightly higher costs, based on our current forecast.
Base Rate Components
(These charges can only be changed as part of a rate proceeding before the Iowa Utilities Board.)
BASIC SERVICE CHARGE
Overview: This is the fixed charge to each customer to connect their home or business to our system and to maintain the meter and connection.
Cost: Currently, this charge is:
Residential: $0.4274/day or about $13 per month.
Commercial: $0.6575/day or about $20 per month.
⇔ Future outlook: This charge can only be changed as part of a rate proceeding before the Iowa Utilities Board. At this time, there are no pending rate proceedings filed or publicly announced.
USAGE COSTS
Overview: This is the cost per kWh of energy used at your home or business. If you look at your meter, the number displayed is a count of the kWh your home or business uses.
Winter energy charges are “stepped,” meaning your rate per kWh will lower when your daily or monthly usage exceeds a certain threshold, or step.
This rate is also adjusted based on the season. Because the electrical grid must be more robust to handle the demands of summer usage, the rates increase between May 16 and September 15, when demands on our energy grid are more significant.
Cost: There are many details and options for rates for residential, general service and large general service customers. These options and rate details are highlighted in our online tariffs.
⇔ Future outlook: This charge can only be changed as part of a rate proceeding before the Iowa Utilities Board. At this time, there are no pending rate proceedings filed or publicly announced.
Riders
(These charges can be updated more frequently than Base Rate Components and do not require a rate proceeding before the Iowa Utilities Board .)
ENERGY ADJUSTMENT CLAUSE (EAC) CHARGE
Overview: While several charges and credits flow through this line on your bill, the main component is the cost of fuel to produce energy, or the cost to purchase energy for customers.
Cost: The cost is updated and tracked online each month. This also provides visibility to the items that make up our energy costs.
⇓ Future outlook: This charge is updated monthly. Because of our recent buildout of wind resources, we have been seeing a general trend toward lower energy costs for customers. As of July 2020, tax benefits are flowing through this line item, further reducing costs from what they would otherwise be. This tax benefit credit continues through June 2021. With the end of our nuclear energy purchase power , customers are seeing additional cost benefits. Month-to-month costs may vary, but we expect the annualized cost of this bill item to be lower in 2021.
REGIONAL TRANSMISSION SERVICE CHARGE
Overview: Transmission service is provided to our customers by a third-party provider. This provider’s rates are based upon annual filings with the Federal Energy Regulatory Commission (FERC). Alliant Energy participates in FERC filings on behalf of our customers.
Cost: Transmission charges for all price codes are available in our online tariff document.
⇑ Future outlook: Our transmission provider updates its rates annually. Transmission costs are higher than 2020 due to their ongoing investments in the transmission system.
A credit will be provided to customers based on a change in the return-on-equity for our transmission partner. Their regulators lowered the returns after a request from customer advocates, our company and other utilities. The first refunds will appear in 2021. When additional refunds are available, we expect to file an additional refund plan with the Iowa Utilities Board to return those funds in late 2021 or 2022.
Learn more about the Regional Transmission Service Charge
RENEWABLE ENERGY RIDER
Overview: This was new in 2020 and helps cover the costs of bringing more renewable energy to customers. The charge allows for recovery of the costs from wind farms constructed in Iowa and is applied to your monthly bill. Many factors go into this cost, including the forecasted renewable energy costs and total demand. The customer benefits of Production Tax Credits also flow through this line item.
Cost: Currently, this charge is $0.00240/kWh.
⇓ Future outlook: This charge is updated annually. The renewable energy rider factor is lower in 2021, as compared to 2020. This is because more production tax credits are available with additional wind generation online.ENERGY EFFICIENCY COST RECOVERY
Overview: We offer numerous programs to help customers reduce energy use. This charge covers the costs to deliver energy efficiency plans. The charge is adjusted annually and is based on your energy use.
| Customer Class | Cost |
| Residential | $0.0046/kWh |
| General Service | $0.0063/kWh |
| Large General Service | $0.0037/kW |
⇔ Future outlook: This charge is updated annually. Costs are expected to be similar in 2021.
DEMAND RESPONSE COST RECOVERY
Overview: This program provides a discount to customers who, in return, are willing to reduce their energy usage during times of high energy demand. Demand response programs are designed to lower the costs for all customers by reducing the amount of power that must be purchased on very hot days, when the price and demand is the highest. It also reduces the need for new power generation.
Cost:
| Customer Class | Cost |
| Residential | $0.0014/kWh |
| General Service | $0.0014/kWh |
| Large General Service | $0.0012/kW |
⇔ Future outlook: This charge is updated annually. Costs are expected to be similar in 2021.
LOCAL OPTION TAX OR FRANCHISE FEE
Overview: Depending on your community, you may have a franchise fee or local option sales tax added to your bill. You cannot have both on your bill. This charge is requested by your community. Alliant Energy collects the fee and provides it to the community.
Cost: This amount varies from 0% to 5%, based on decisions made by your local city council. Please contact your city clerk to learn more.
⇔ Future outlook: This charge is determined by your local community.
View your customer class below to see an estimated breakdown of the charges on your bill.
Those interested in looking at past cost data can reference the tables below with annual total bill costs by customer class. Customers can visit myaccount.alliantenergy.com to see their individual usage.
Annual average cents per kWh
This information was last updated in December 2020.
