MidAmerican electric rate increase gets Iowa Utilities Board approval

MidAmerican Energy's two-year $115-million surcharge to recover added environmental and coal fuel costs has received approval from the Iowa Utilities Board (IUB).

Electric customers of the state's largest utility have been paying a portion of the higher rates since last March under an interim rate increase provided under IUB rules.

The settlement, issued Monday by the IUB, allows MidAmerican to collect $38.7 million in electric revenue in 2012, and $76 million in electric revenue in 2013.

The average residential customer has been paying $2.33 more per month under the higher interim rates in effect since March. For 2013, the average residential customer will pay an additional $1.60 per month (a $3.63 per month increase from rates in place prior to the interim increase).

The higher rates were sought by the privately owned utility to offset anticipated higher coal costs, coal transportation expenses and pay for environmental upgrades at its older coal-fired power plants.

CLICK HERE to download the IUB/MidAmerican rate settlement.