Iowa Regulators Approve Mid-American Electric Rate Hike - News and Weather For The Quad Cities -

Iowa Regulators Approve Mid-American Electric Rate Hike

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The following information was released Friday by the Iowa Utilities Board:

The Iowa Utilities Board today approved a settlement agreement, with some modifications, in MidAmerican Energy Company's electric rate case which will allow for permanent rate recovery of $135.5 million in additional revenue, to be phased-in over three years.

 The settlement maintains the $45.2 million annual revenue increase that was already applied after the Board approved the first phase as temporary rates on August 15, 2013, and grants revenue increases of $45.15 million in both 2015 and 2016, with the implementation of the second and third phases of the $135.5 million revenue increase. MidAmerican residential customers experienced an average bill increase of approximately $2.73 per month during the first phase under temporary rates. The settlement terms will not allow MidAmerican to seek another electric rate increase in Iowa prior to January 1, 2018, unless its return on equity for any year from 2015-2017 is projected to fall below 10 percent. 

As originally proposed by MidAmerican and included in the settlement, electric rates will also be equalized across MidAmerican's Iowa service territories over the next ten years with individual customer rate impacts varying by customer class, rate zone and electric usage levels. MidAmerican will also continue its existing customer revenue sharing program, which can help reduce the rate burden on customers in future cases. 

Today's public decision announcement is not final and the Board has the discretion to alter or reverse its decision on the issues. Today's verbal decision of the Board will only become final when a written order is issued on or before March 17, 2014.  

Prior to today's decision, the Board received written public comments in this rate case, held eight consumer comment meetings across MidAmerican's Iowa electric service territory, and conducted an evidentiary hearing in Des Moines.

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