(KIWA Staff Photo)
Northwest Iowa — Gas customers of MidAmerican Energy may see their gas bills go up a little.
MidAmerican Energy has filed a request with the Iowa Utilities Commission to update the delivery portion of its natural gas rates, which supports the infrastructure and operations needed to move natural gas to homes and businesses. The update only affects delivery rates – not the cost of gas. This request is designed to preserve the integrity of the gas system without jeopardizing historically low monthly bills.
Karrie Leza, their vice president for gas delivery, says that they know customers don’t want to see any part of their bill go up, and they do not take that lightly. They say the request reflects the careful work their people are doing to manage costs while continuing to safely operate more than 25,000 miles of natural gas lines across Iowa. Leza says these are the types of investments that reduce risk, bring critical systems up to date, and avoid more costly problems for customers later on.
Even with the proposed adjustment, MidAmerican’s typical residential natural gas bill would remain lower than it was two decades ago and among the lowest in Iowa.
As far as customer impact, MidAmerican says the typical monthly residential bill would increase by about 5% – from $55.60 to $58.49. They say business customer impacts would vary by rate class and usage but are generally expected to be in a similar percentage range, with final bill changes determined by the Iowa Utilities Commission.
MidAmerican says that many of the investments included in the request are designed to reduce risks and improve reliability, especially during Iowa’s cold winter months, and avoid higher costs over time.
Before seeking this adjustment, they tell us they reviewed the timing and scope of planned work and prioritized projects tied to safety, reliability, regulatory compliance and customer service. They say that where practical, the company sequences projects to manage costs and defers or rescopes work that does not meet those priorities.
MidAmerican says their key initiatives include:
- Replacing and inspecting gas lines before problems occur
- Completing 24 miles of transmission pipeline integrity work from 2024-2027
- Replacing low-pressure gas mains through 2030
- Moving gas facilities for public road and bridge projects
- Increasing excavation and underground location work
- Modernizing critical technology
- Maintaining fast emergency response
- Managing higher labor, material and contractor costs
As allowed by law, MidAmerican will implement temporary gas delivery rates on July 17 while the Iowa Utilities Commission reviews the permanent rate request. Temporary rates are not the final rates.
After its review, the commission will order final rates, which may be different from the company’s proposal and will take effect on a date set by the commission. If final rates are lower than temporary rates, MidAmerican will refund the difference to customers with interest.
You can learn more about the proposal at MidAmericanEnergy.com/Iowa or by calling 1-888-427-5632. The Iowa Utilities Commission’s review process includes four public consumer comment meetings, the closest of which to those in our area is in Sioux City on September 10th at 6 p.m. It’ll be at the Sioux City Convention Center.
In our area, MidAmerican provides both gas and electric service in Sheldon, Archer, Germantown, Calumet, Sutherland, Granville, Newkirk, Hospers, Boyden, Hull, Rock Valley, Doon, Alvord, and Inwood. They also provide electric service only in a number of smaller communities in our area.
