Iowa rates for electricity and natural gas

Learn more about our Iowa electric and natural gas rates.

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.

Iowa rate review

In October 2023, we filed a rate review with the Iowa Utilities Board. This request proposes to increase Iowa customers’ electric and natural gas rates beginning in October 2024. We are proud to deliver safe and reliable service, 24/7 and 365 days a year. This filing reflects our ongoing commitment to delivering reliable, resilient and secure energy to our customers and the communities we serve in Iowa.

If approved by the Iowa Utilities Board, our rate adjustment would add:

About $10 per month to the average residential electric customer’s bill beginning in October 2024, and about $7 per month beginning in October 2025.
About $3 per month to the average residential gas customer’s bill beginning in October 2024.

See the links below for more information, including the proposed rate impact for additional customer classes.

Rate review components

Provide value to customers by planning ahead

We are acting now to best manage future costs and meet customers’ energy needs. New electric rates are proposed to be phased in over two years to minimize the impact for customers.

Modernize and strengthen the energy grid

We are continuing to move power lines underground to reduce outages and improve safety. So far, we’ve placed over 20% of our 20,000+ miles of lines in Iowa underground to improve reliability.

Upgrade infrastructure

Replacing aging infrastructure enhances and strengthens our energy system, which is important considering the impact of major weather events, such as the derecho in 2020.

Cost-effective, diverse energy mix

Diversifying our energy mix by adding renewables, including 400 megawatts of solar, increases reliability while creating local construction jobs and new tax revenues for communities. Our diverse energy mix avoids long-term costs, like fuel, to deliver greater customer value.

Rate review frequently asked questions

When will the adjusted rates go into effect?

The Iowa Utilities Board will make the final determination of when new rates will be effective. We are requesting for new rates to become effective October 1, 2024.

What options do customers have to reduce electric/natural gas bills?

We encourage all customers to implement energy efficiency tips to reduce energy usage and save on their bill. See a list of simple, do-it-yourself cost saving tips.

Additionally, we offer several programs to reduce customer bills and energy use, including Smart Hours, Nights and Weekends and Time of Day.

We also encourage customers to monitor their energy usage and set up high-usage alerts through My Account.

If you are struggling to pay your bill, we can connect you to resources and financial assistance. More information is available here.

Why is Alliant Energy proposing to increase rates? How does this benefit customers and communities?

Guided by our purpose-driven strategy to serve customers and build stronger communities, we continue to take actions to deliver value for our customers and mitigate long-term cost risks. To achieve this, we occasionally need to make rate adjustments. The proposed rate increase is necessary and reflects our commitment to make things better for customers through smart investments that also create a more reliable energy future.

As an essential service provider in hundreds of communities across Iowa, we are acting now to best manage costs and meet customers’ energy supply needs for decades to come.

By investing in a diverse energy mix and continuing to modernize the energy grid, we are building a more reliable, sustainable, resilient and secure energy future in Iowa. This means fewer outages and faster restoration of power during outages.

Nobody, including us, wants to see bills increase. However, there are more costs down the road if we do nothing or simply continue "business as usual." It’s why we’re planning ahead for our customers to ensure we’re ready to manage the rapidly changing energy landscape.

What is Alliant Energy doing to manage energy costs?

Since proposing our last rate increase in Iowa in 2019, we’ve managed costs and provided safe and reliable service throughout many of the same challenges our customers have faced, including the COVID-19 pandemic, extreme weather events like the derecho, higher operational costs and inflationary pressures that have impacted all industries. We will continue to manage costs moving forward.

To manage costs, we continue to operate our system as efficiently as possible. Our investments in new technology will further enhance efficiency and system operations.

Another key component of our long-term plan to manage costs involves our focus on developing zero-fuel cost generation resources to keep manage fuel costs and minimize risks associated with fuel cost volatility. Our plan to replace older generation facilities with a more diversified energy portfolio will help avoid future costs that we would have incurred had we continued ‘business as usual.’

How does Alliant Energy contribute to communities?

At Alliant Energy, we believe in building stronger communities. We actively invest in partnerships and initiatives that improve life in the communities we serve. We work closely with our customers and local non-profits to create lasting change. Our commitment to community extends beyond energy, reflecting our dedication to making life better for everyone.

Iowa energy cost outlook webinars

We offer specialized biannual webinars to our communities and our commercial and industrial customers. The most recent webinars are posted below.

Community Energy Cost Outlook Webinar (Video)
December 2023

Commercial and Industrial Customer Energy Cost Outlook Webinar (Video)
December 2023

Click to expand the links below for more information:

Natural Gas Price Outlook

Powering Beyond graphic header

Base natural gas costs are not expected to change until October 2024 when our proposed rate filing is expected to take effect. This base rate covers the cost of necessary improvements we make to deliver natural gas to our customers, including 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 on your bill here.

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.

Alliant Energy takes actions 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 that natural gas bills will decrease slightly over the full year in 2024, when compared to 2023. Individual months will vary.

Natural gas tariffs

Electric Price Outlook

Powering Beyond graphic header

Overall, electric bills in 2024 are expected to be higher than 2023. This increase is driven by the following factors:

In October 2023, we filed a rate review with the Iowa Utilities Board. This request proposes to increase Iowa customers’ electric rates beginning in October 2024.
In the rate review, we are proposing for the Renewable Energy Rider line item to be discontinued starting with new rates in October 2024. These costs are proposed to be recovered through base rates and the energy adjustment clause charge.

Electric Bill Overview

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: Base rates are expected to increase from their current levels in 2023 with the implementation of rates in the proposed rate review. These rates have been in effect since March 2020. 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 overall costs will be higher in 2024 than they were in 2023.

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.
General service: $0.6575/day or about $20 per month.

⇑ Future outlook: This charge is expected to increase in 2024 as part of the pending rate proceeding before the Iowa Utilities Board.

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 is expected to increase in 2024 as part of the pending rate proceeding before the Iowa Utilities Board. We are also proposing changes to how our rates are designed. The rate designs are proposed to make our rates more customer-friendly, cost-reflective and encourage customers to shift usage to lower cost periods of the day. The rate designs use widely accepted rate design principles and industry best practices.

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. Overall, this line item is expected to be slightly higher in 2024.

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 expected to decrease for most customers due to our transmission provider’s ongoing investments in the transmission system, ensuring reliability for customers.

Learn more about the Regional Transmission Service Charge

RENEWABLE ENERGY RIDER

Overview: This item 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 $0.00181/kWh.

⇓ Future outlook: This charge is updated annually and will decrease in 2024. This decrease is driven primarily by an overcollection in the prior year. The main drivers of the overcollection were tax flow-through benefits, an update to the estimate of production tax credits (or PTCs) and a delayed implementation of the current rate factor.

As a reminder, we are proposing to eliminate this rider as part of the rate review pending with the Iowa Utilities Board. This change will result in an increase to base rates and a decrease to the energy cost portion of the bill.

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	$0.0021/kWh
General Service	$0.0018/kWh
Large General Service	$0.0008/kW

⇔ Future outlook: Our energy efficiency cost recovery inputs for the first half of 2024 are expected to be similar to those in 2023.

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.

Customer Class	Cost
Residential	$0.0020/kWh
General Service	$0.0014/kWh
Large General Service	$0.0008/kW

⇔ Future outlook: Our demand response cost recovery inputs for the first half of 2024 are expected to be similar to those in 2023.

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

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

Historical Data

Those interested in looking at past cost data can reference the tables below with annual total bill costs by customer class. Customers can visit My Account to see their individual usage.

Annual average cents per kWh

Iowa annual average total bill cost per kWh chart

Line graph showing residential service yearly average total cost in cents per Kwh

Line graph showing general service yearly average total cost in cents per Kwh

Line graph showing large general service yearly average total cost in cents per Kwh

Frequently asked questions

Why is 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 Efficiency 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.

This information was last updated in December 2023.