DES MOINES — 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.

“We know customers don’t want to see any part of their bill go up, and we do not take that lightly,” said Karrie Leza, vice president, gas delivery. “This request reflects the careful work our people are doing to manage costs while continuing to safely operate more than 25,000 miles of natural gas lines across Iowa. These are the types of investments that reduce risk, bring critical systems up to date, and avoid more costly problems for our customers later on.”

Keeping bills low over time

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.

Based on the same level of average monthly residential gas usage, a customer’s monthly bill would be $58.49 under the proposed rates, compared to $74.10 in 2006, not adjusted for inflation. This reflects years of relatively stable base rates, along with lower natural gas supply costs now versus 20 years ago.

Customer impacts

• The proposed adjustment would affect only the delivery charge of customer bills, which supports the infrastructure and operations required to move natural gas to homes and businesses.

• It would not affect the cost of natural gas itself, which is set by the market and passed through to customers without any markup.

• The typical monthly residential bill would increase by about 5 percent – from $55.60 to $58.49.

• 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.

Why now

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, the company stated that it reviewed the timing and scope of planned work and prioritized projects tied to safety, reliability, regulatory compliance and customer service. Where practical, the company sequences projects to manage costs and defers or rescopes work that does not meet those priorities.

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

Next steps

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.