DES MOINES, Iowa – Officials with MidAmerican Energy report a change in state law means the Company’s Iowa customers will soon see a monthly “energy efficiency charge” on their utility bills – though customers are not actually paying a new fee. Beginning in January, Iowa’s regulated utilities, including MidAmerican Energy, will show energy efficiency fees on a separate line on monthly customer bills. Utilities are required to use the fees to fund energy efficiency programs. MidAmerican Energy does not profit from the fees, and the money collected is passed through to other customers to support their energy-saving projects. The legislation, signed into law in May, requires utilities to itemize the energy efficiency charge beginning January 1st. That’s a significant change from the previous law that has barred utilities from listing the charge on monthly bills and required them to include the fee in the energy rate charge.

The law will also reduce MidAmerican Energy customer utility bills by capping energy efficiency program spending. In 2017, MidAmerican Energy’s Iowa customers paid, on average, more than 7 percent of their bills toward energy efficiency programs, the highest in the nation. During that 12-month period, an average single family home paid $145.16, including $67.50 on electric and $77.66 on natural gas bills for energy efficiency programs. The legislation will limit energy efficiency program spending at 2 percent for electric and 1.5 percent for natural gas. The spending caps will save MidAmerican Energy customers an estimated $80 – $90 million annually. On average, it will save about $81 per year for MidAmerican Energy’s residential gas and electric customers, $172 for commercial and more than $12,000 for industrial energy users.

Once the Iowa Utilities Board issues a ruling on MidAmerican Energy’s latest proposed energy efficiency program spending plan, which the board must file by the end of March, the company’s Iowa customers will pay reduced energy efficiency charges. Those reductions will take effect later in the year, depending on the board’s ruling. While MidAmerican Energy customers will pay less each month, the company says it will continue to offer energy efficiency programs and customer energy savings incentives. Separately, MidAmerican Energy customers will see a new monthly bill format beginning in January. MidAmerican Energy redesigned the bill, based on customer input, to make it easier to understand monthly energy use and charges.