2026 Iowa energy cost outlook

New natural gas base rates were implemented in October 2024 and cover the cost of necessary improvements we make to deliver natural gas to our customers. This includes replacing aging materials, installing new inspection and safety equipment, and upgrading existing pipelines for more reliable and expanded service. See where these line items appear by expanding "Guides to understanding your bill" above.

The cost to procure natural gas for our customers is a direct pass-through to customers and generally makes up more than half of a customer’s monthly bill.

We take action throughout the year to help stabilize the price customers pay for natural gas and minimize the impact on bills. For example, we buy and store some natural gas in the summer when the prices are lower. This contracted storage is then withdrawn and used when prices are typically higher.

On average, we are forecasting natural gas bills will increase slightly over the full year in 2026, when compared to 2025 due to anticipated higher gas prices. Individual months will vary.

Natural gas tariffs

New electric rates were implemented in October 2024. While base rates are not changing, overall, electric bills in 2026 are forecasted to increase as compared to 2025 for residential general service, large general service and high load factor customers. These changes are driven by the following factors:

• The Renewable Energy Rider line item was discontinued with the implementation of new rates in October 2024. Costs previously recovered through the Renewable Energy Rider are now recovered through base rates. Benefits that previously flowed through the Renewable Energy Rider now flow through the Energy Adjustment Clause charge.
• The Energy Adjustment Clause is forecasted to decrease on average during 2026.
• The Regional Transmission Service charge is expected to increase.
• The Tax Benefit Rider, which was an outcome of the 2023 rate review and resulted in the application of a credit to customers’ bills for a year, ended on October 1, 2025.

Electric tariffs

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, the energy you use fluctuates and has the largest impact on your bill. If you add a new, more efficient appliance or upgrade to a high efficiency cooling unit, these changes will likely have a positive 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: As part of the rate review settlement in 2024, we agreed to a five-year base rate moratorium which keeps base rates stable until at least late-2029. The Energy Adjustment Clause is forecasted to decrease, on average, for 2026. The Regional Transmission Rider is expected to increase in 2026.

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Base rate components

These charges can only be changed as part of a rate proceeding before the Iowa Utilities Commission. Following our rate review settlement in 2024, we agreed to a five-year base rate moratorium through which keeps base rates stable until at least late-2029. 

Basic service charge

Overview: This is the fixed charge for each customer to connect their home or business to our system and to maintain the meter and connection.

Cost: Currently, this charge is:

Residential: $0.5096/day or about $15.50 per month.
General service: $0.7562/day or about $23 per month.

⇑ Future outlook: This charge increased in October 2024 as part of the rate review. However, they remained flat in 2025 and will remain flat again in 2026, as a result of the five-year moratorium.

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.

This rate adjusts based on the season. Because the electrical grid must be more robust to handle the demands of summer usage, the rates increase between June 1 and August 31.

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 tariffs.

⇑ Future outlook: This charge increased in October 2024 as part of the rate review. However, they remained flat in 2025 and will remain flat again in 2026, as a result of the five-year moratorium.  

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Riders

These charges can be updated more frequently than base rate components and do not require a rate proceeding before the Iowa Utilities Commission.

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.

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. Overall, this line item is expected to decrease, on average, in 2026. 

Regional Transmission Service (RTS) 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 tariff document.

⇑ Future outlook: Our transmission provider updates its rates annually. Transmission costs are expected to increase in 2026 due to our transmission provider’s ongoing investments in the transmission system, ensuring reliability for customers.

Learn more about the Regional Transmission Service Charge

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.

Cost per customer class:

• Residential: $0.0006/kWh
• General Service: $0.0032/kWh
• Large General Service: $0.0018/kW

⟺ Future outlook: This charge is expected to remain steady.  

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 are the highest. It also reduces the need for new power generation. 

Cost per customer class:

• Residential: $0.0048/kWh
• General Service: $0.0028/kWh
• Large General Service: $0.0023/kW

⟺ Future outlook: This charge is expected to remain steady.  

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 0-5%, based on decisions made by your local city council. Please contact your city clerk to learn more.

Future outlook (varies): This charge is determined by your local community.

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View your customer class below to see an estimated breakdown of the charges on your bill.

 

      

 

This information shows past cost data with annual total bill costs by customer class. For your individual past usage, visit My Account.

Annual average cents per kWh

  

Why do the energy efficiency programs charge a different amount for each customer type?

This charge is based on many factors for each customer, including energy use and the costs to deliver energy efficiency and demand response plans. Customer classes do not subsidize energy eficiency for other customer classes. 

What elements make up the base rate?

The base rate is a combination of the basic service charge and the usage costs. 

What is the difference between usage costs and the Energy Adjustment Clause?

Usage cost is the cost per kWh of energy used specifically at your home or business. The Energy Adjustment Clause covers many factors and adjusts monthly. The main component of the Energy Adjustment Clause is the cost of fuel to produce energy, or the cost to purchase energy for customers. 

Why do I have a franchise fee or local option sales tax listed on my bill?

Depending on your community, you may have one of these on 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. Decisions about this are made by your local city council.

When will investments in new technology give customers lower rates?

The basic service charge and usage costs are only adjusted via a rate review filed with the Iowa Utilities Commission. As a part of our most recent rate review, we agreed to a five-year base rate moratorium until at least late 2029. Therefore, these rates will not increase during that time period. Whether you are a residential, small business or large industrial customer, these charges make up a majority of your monthly bill. Other charges, billed through riders, can change on a more frequent basis.

We often get questions about the impact of data centers on energy rates. Costs to maintain the grid are going up year after year. New data center loads will boost energy sales. When energy sales increase, we can distribute fixed costs and transmission expenses across a larger customer base, which is expected to create more stable, manageable rates. Learn more about data centers and energy rates.