For the first time since 1995 MidAmerican Energy is raising rates. The company is asking the Iowa Utilities Board for a 2 year rate increase. For 2012, the company is raising prices by 4%, which is about a $2.33 monthly increase for the average homeowner. In 2013, the company is asking for another 2%-3% increase, for the average homeowner that's about $1.30 more per month.
At an Iowa Utilities Board public hearing in Davenport, people and business owners said the increases is too much.
"Two years ago when I retired, I moved to having a fixed income people. Of course, I'm concerned about how prices keep going up and up and up," says Lee McKnight.
"It's not a cell phone, it's not a TV. You need energy, you need heat and you need a way to prepare your food," says Jordan Schneider.
"It's impossible for us to absorb the magnitude of this particular increase and what it's going to have on our business," adds Brenda Thrapp.
Representatives from MidAmerican Energy were at the public hearing. They told the crowd, they don't have a choice, rates have to go up. MidAmerican's president says it's because the EPA is mandating environmental improvements to their plants. The company has to improve the pollution system at their coal fired power plants. Also, freight is costing the company more. A long term coal transportation contract is about to expire and MidAmerican expects the rates to increase dramatically.
The Iowa Utilities Board will hold several more public hearings all over the state. The board will take all the comments from the public hearings into consideration. A decision has to made on how much rates will increase by December.
A temporary rate 4% increase will start on March 2nd. If the Iowa Utilities Board decides on a rate lower than the 4% temporary increase, MidAmerican will refund its customers.
