MidAmerican Energy wants to raise monthly natural gas bills 5% for about 638,000 Iowans.
The Des Moines-based utility said in a statement Tuesday, July 7, that the proposed increase would support the “infrastructure and operations needed to move natural gas to homes and businesses.”
“The update only affects delivery rates — not the cost of gas,” said the company, part of the Berkshire Hathaway conglomerate led by Des Moines resident Greg Abel. “This request is designed to preserve the integrity of the gas system without jeopardizing historically low monthly bills.”
The proposed rate increase would need the Iowa Utilities Commission’s approval before becoming effective, potentially by mid-to-late 2027.
MidAmerican said the money generated would be used to inspect and replace lines “before problems occur,” complete 24 miles of transmission line integrity work, modernize critical technology and fund other projects.
A typical monthly bill would increase by $2.89 to $58.49, according to MidAmerican, which is implementing a temporary delivery rate increase on July 17 while the Iowa Utilities Commission considers the request.
The commission will make the final decision on rates, and if they’re lower than the temporary increase, MidAmerican said, it will refund the difference to customers with interest.
“We know customers don’t want to see any part of their bill go up, and we do not take that lightly,” Karrie Leza, MidAmerican’s vice president of gas delivery, said in a statement. “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,” Leza said.
MidAmerican: Even with hike, rates to stay historically low
Even with the proposed increase, MidAmerican said its typical residential natural gas bill would “remain lower than it was two decades ago and among the lowest in Iowa.” It said a typical monthly bill in 2006 was $74.10, an amount that was not adjusted for inflation.
“This reflects years of relatively stable base rates, along with lower natural gas supply costs now versus 20 years ago,” the company said.
In a special note for Waukee customers, MidAmerican said residents experienced an immediate rate reduction when the community joined MidAmerican’s system in 2025.
“Even with the proposed adjustment, Waukee customers would continue to pay rates that are nearly 25% below the city’s projected 2027 rates under its former municipal gas system,” it said.
MidAmerican noted that natural gas prices are determined by the market and passed through to customers without a markup.
The utility will hold public meetings on the proposed increase in September at:
More information also is available at MidAmericanEnergy.com/Iowa or by calling 1-888-427-5632.
This article originally appeared on Des Moines Register: Why MidAmerican says a 5% gas hike will keep bills low
Reporting by Donnelle Eller, Des Moines Register / Des Moines Register
USA TODAY Network via Reuters Connect
By Donnelle Eller, Des Moines Register | USA TODAY Network
