The Iowa Utilities Board has approved a settlement agreement establishing an additional charge as part of MidAmerican Energy Company’s standard electricity rates for calendar years 2012 and 2013. The increase is due to the utility’s higher costs of environmental compliance and coal and coal transportation.
The settlement allows MidAmerican to increase its annual electric revenue by $38.7 million or 4 percent in 2012, which was implemented in March, and an additional $37.3 million in 2013, for a total increase of 6.7 percent. Average residential customers are currently paying an estimated monthly electric bill increase of $2.33 for temporary rates in effect since March, which is to remain intact for 2012. In 2013, average residential customers can expect to see an additional $1.30 monthly bill increase, or a $3.63 total monthly bill impact.
In February, MidAmerican filed a request to add two automatic adjustment clauses for its increased costs. In July, the Office of Consumer Advocate, MidAmerican, and the Iowa Industrial Group filed the proposed settlement agreement for the Board’s consideration and a joint motion asking that it be approved. The Iowa Industrial Group is a group of Iowa industrial employers that are major MidAmerican electric service customers. The Consumer Advocate represents the public interest in all proceedings before the Board.
The Iowa Utilitiy Board’s decision order, based on the Board’s review of the evidence submitted in this proceeding, confirms that the electric revenue increase proposed by MidAmerican is reasonable and less than the amount MidAmerican likely would have received in a traditional rate case.