Are you aware of how much electricity costs your fellow Iowans? Most of us don't realize the significant variation in electrical rates from one town to another. You might be surprised to discover that in some regions of our state, homeowners pay more than twice as much for electricity compared to other areas in Iowa. Additionally, between the two largest utility providers in Iowa, one has one of the lowest electrical rates in the nation while the other ranks among the highest.
Read on to see how your rates compare and how you can regain control of rising electrical costs.
Comparison of Alliant Energy Residential Electric Rates with MidAmerican and Other Iowa Providers
As reported by the Iowa Utilities Commission, Iowa is served by 181 electric providers, including investor-owned utilities (IOU), municipal utilities, and rural electric cooperatives (RECs). However, 72% of Iowans, over 1.2 million customers, get their electricity from one of the two primary IOUs: MidAmerican Energy and Alliant Energy (also known as Interstate Power and Light Company).
62% Higher Rates
A new report by the CEDI compares electrical rates among providers with a particular focus on the big two, and reveals that Alliant Energy customers paid 62.4% higher rates than MidAmerican Energy customers for residential electricity in Iowa last year. MidAmerican Energy residential customers pay an average all-in cost per kWh of $10.99, while Alliant Energy customers pay $17.86.
.png?width=965&height=540&name=Residential%20Electric%20Prices%20by%20Provider%20(1).png)
Source: CEDI, Iowa Utilities Commission (IUC) Annual Report Filings
$600 More per Year
According to the CEDI's calculations, this rate difference means that the average Alliant Energy residential customer paid over $600 more than the average MidAmerican residential customer in 2023.
Energy consumption differs significantly among households, which means the cost disparity could be considerably higher for homes that consume more electricity than the average.
Ranked 179 of 181
Alliant Energy's residential customers faced a cost per kilowatt hour that exceeded those of every rural electric cooperative in Iowa and was surpassed by only two of the state's 136 municipal electric cooperatives, ranking #179 of the state's 181 electric providers by cost (low to high).
Important note: this data does not take into account Alliant Energy's most recent Fall 2024 residential electric rate increases. Learn more about Alliant's latest price hike on our blog.
Alliant, MidAmerican, and Iowa Residential Electric Rates Compared to the Rest of the United States
If your home electricity bills seem excessive, it might be comforting to know that it could be worse; in some U.S. states, residents pay double or more compared to Iowans.
But if you are an Alliant Energy customer in Iowa, you may be dismayed to learn that your rates rank among the most expensive quartile of states in the country, alongside California and non-contiguous Alaska and Hawaii.
- Iowa's average price, $13.31, is 17% below the national average of $16.00
- MidAmerican customers in Iowa pay 31% less than the national average
- Alliant customers in Iowa pay 12% more than the national average
Source: U.S. Energy Information Administration (EIA), Summary Report T4; Iowa Utilities Commission (IUC) Annual Report Filings
What Can Iowans Do to Combat High Electric Costs?
Iowa utility providers are monopolistic; residents cannot choose their provider or control their rates. Prices increases may occur at any time and are regulated by the Iowa Utilities Commission. And indeed, they are increasing far more rapidly than they have in the past.
As of October 2024, the average cost of residential electricity in the United States is up 30% from 5 years ago (2019-2024), compared to an increase of only 3% over the previous 5 years (2015-2019) (source: EIA Electric Power Annual, EIA Electric Power Monthly).
Ways to Take Charge of Your Electricity Expenses
Despite these challenges, there are ways to regain control over your electricity spend:
- Move to an area with lower electric prices
- Express your concerns to your local politicians or the Iowa Utilities Commission
- Reduce your electricity usage
- Go solar
Why Alliant Customers in Iowa Prefer Solar
Customers in areas with high electricity rates tend to save the most money by going solar. For example, California's electric rates are nearly twice the national average, and it is the #1 state in the country for solar; over 30% of the state's electricity is generated from solar, enough to power over 15 million homes (source: SEIA). Despite massive growth over the past 5 years, Iowa still trails behind most states in solar energy generation, but we're rising in the national ranks with solar installations projected to increase by 134% in the next 5 years.
Iowa homeowners living in Alliant Energy territories are often ideal candidates to switch to solar. Because of their higher-than-average rates, they typically save money immediately by switching to solar, and the savings compound over time as electricity prices continue to rise. When Alliant customers see their solar savings estimates, it's easy and exciting for them to say "yes!" to solar.
Iowa cities within the Alliant Energy utility boundaries include Cedar Rapids, Marion, Dubuque, Marshalltown, Ottumwa, Mason City, Clinton, Burlington, North Liberty, Newton, Boone, Fort Madison, Keokuk, Grinnell, Fairfield, Perry, Decorah, Clear Lake, Creston, and more.
515 Solar is based in Des Moines, Iowa, and we are proud to help homeowners throughout our state save money, create energy independence, and support their local communities by installing home solar panel systems. Contact us or complete the form below to get a free solar savings estimate today.
*Note: 515 Solar has no official relationship or affiliation with Alliant Energy or MidAmerican Energy or with their products and services.
