Understanding your Iowa bill and rates

New natural gas rates were implemented in October 2024. 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 by expanding "Guides to understanding your bill" above.

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 This contracted storage is then withdrawn and used when prices are typically higher.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 2025, when compared to 2024 due to anticipated lower gas prices. Individual months will vary.

Natural gas tariffs

New electric rates were implemented in October 2024. Overall, electric bills in 2025 are forecasted to be similar to 2024 for residential customers and increase for large general, large general service and high load factor customers. These changes are driven by the following factors:

• Base rate increased from 2023 levels with the implementation of new rates in October 2024.
• The Renewable Energy Rider line item was discontinued with the implementation of new rates. These costs are recovered through base rates and benefits will flow through the energy adjustment clause charge.
• The energy adjustment clause is forecasted to decrease for 2025.
• The regional transmission service charge is expected to increase.
• A tax benefit rider, starting in October 2024, will result in a credit on customer bills for 12 months, until October 2025.

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 increased from 2023 levels with the implementation of rates from the rate review in October 2024. Base rates are not expected to change again for at least five years. The energy adjustment clause is forecasted to decrease for 2025. The change in transmission costs impacts each class differently, based on how those costs are allocated. That creates different outcomes. For residential customers, overall costs are forecasted to be similar in 2025 to what they were in 2024. Overall costs are forecasted to increase for general service, large general service and high load factor customers.

Base Rate Components

(These charges can only be changed as part of a rate proceeding before the Iowa Utilities Commission. Following our last rate review in 2024, base rates are not expected to change again for at least five years.) 

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: $0.5096/day or about $15.50 per month.
General service: $0.7562/day or about $23 per month.

⇑ Future outlook: This charge increased in October 2024 as part of the rate review.

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.

This rate adjusts based on the season. Because the electrical grid must be more robust to handle the demands of summer usage, the rates increase between June 1 and August 31, 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 increased in October 2024 as part of the rate review.  

Riders

(These charges can be updated more frequently than Base Rate Components and do not require a rate proceeding before the Iowa Utilities Commission.) 

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 decrease in 2025 due to a projected decrease in average fuel costs.

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 increase 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

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.

⟺ Future outlook: This charge is expected to remain steady.  

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. 

⟺ Future outlook: This charge is expected to remain steady.  

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.

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

Why is the Energy Efficiency Programs Charge a different amount for each customer type?

What elements make up the Base Rate?

What is the difference between Usage Costs and the Energy Adjustment Clause?

Why do I have a Franchise Fee or Local Option Sales Tax listed on my bill?