On March 29, 2024, the IUB issued an order approving MidAmerican Energy Company's (MidAmerican) application to increase Iowa retail natural gas rates filed in Docket No. RPU-2023-0001. The decision follows a January 12, 2024 settlement agreement and January 19 amended settlement agreement reached by the parties in the proceeding.
MidAmerican had requested an overall increase in annual natural gas service revenues of approximately $39,351,381, which is 6.1% of its total annual test year tariffed revenue. The settlement approved by the IUB increases annual revenues for natural gas service by $29,644,821, or 3.8%. For the average residential natural gas customer, that will result in a monthly bill increase of approximately $1.86 or 2.4%.
The increase approved by the IUB is less than the temporary rate increase of 5% that was implemented by MidAmerican on June 22, 2023. MidAmerican has 30 days after compliance filings are approved to file its plans for interim rate refunds.
The parties to the settlement are MidAmerican; the Office of Consumer Advocate, a division of the Iowa Department of Justice; and the International Brotherhood of Electrical Workers, Local 109. The Iowa Business Energy Coalition, which had been granted intervention by the IUB, agreed to not oppose the settlement subject to inclusion of a two-year period for equalization of rates in MidAmerican's East and West zones in the state. Encore Energy Services, Inc., also an intervenor, did not object to the settlement.
A public evidentiary hearing was held on January 23, 2024. Under Iowa law, the IUB found the agreement constitutes a reasonable compromise among the parties and concluded the agreement is reasonable in light of the whole record, consistent with the law, and in the public interest.
The order also rejected MidAmerican's proposed final natural gas tariff in docket TF-2023-0217, and ruled MidAmerican's temporary natural gas tariff, TF-2023-0216, would remain in effect until the IUB approves required compliance tariffs, which MidAmerican is required to file within 20 days.
Documents regarding MidAmerican's proposed natural gas rate increase case are available for review in the IUB’s electronic filing system under Docket No. RPU-2023-0001.