Iowa Utilities Board
Docket No. RPU-2013-0004
MidAmerican Energy Company
Electric Rate Increase Request Summary
Date Filed: May 17, 2013
Permanent Annual Revenue Increase Requested: $135.6 million over 3 years - $45.2
million (3.6 percent) in 2013-2014, $45.2 million (3.5 percent) in 2015, and $45.2 million
(3.3 percent) in 2016.
Average Residential Monthly Bill Increase: $2.73 in 2013-2014, $2.75 in 2015, and
$2.68 in 2016. (Actual amount will vary based on usage)
Temporary Revenue Increase (Part of final rates): Board must decide on first-phase
proposal ($45.2 million, 3.6 percent) for temporary rates by August 15, 2013.
Temporary Rates: Temporary rates collected from customers are subject to refund with
interest if the temporary rates collected by MidAmerican Energy Company (MidAmerican)
are higher than the final rates approved by the Board.
Rate Equalization: MidAmerican’s rate filing includes a 10-year proposal to equalize
electric rates across its three Iowa service zones, which would not increase revenue for
the utility. Individual customer impacts of rate equalization would vary by customer class
and pricing zone. (Various rates exist due to the past merger of utility companies to form
MidAmerican Energy Company)
Adjustment Clauses: MidAmerican is also requesting Board approval to add two
adjustment clauses to Iowa customers’ monthly bills for costs associated with energy and
transmission. (Costs associated with adjustment clauses are subject to the Board’s
annual review)
Ten-Month Final Decision Deadline: March 17, 2014
Eight public comment meetings (all at 5:30 p.m.) are currently scheduled:
Iowa City: June 13, 2013 - Iowa City Public Library, Room A, 123 S. Linn Street.
Des Moines: June 17, 2013 - IUB/OCA Building, Hearing Room, 1375 E. Court Avenue.
Storm Lake: June 18, 2013 - King’s Pointe Resort, Rooms A and B, 1520 E. Lakeshore Drive
Council Bluffs: June 24, 2013 - Council Bluffs Public Library, Room B, 400 Willow Avenue.
Sioux City: June 25, 2013 - Briar Cliff University, Stark Student Center, Clare Rm., 3303 Rebecca St.
Davenport: June 26, 2013 - Modern Woodmen Park, 3rd Floor Suite Level, 209 S. Gaines Street.
Waterloo: June 27, 2013 - Petersen Town Hall, Waterloo Center for the Arts, 225 Commercial St.
Fort Dodge: July 2, 2013 - Best Western Starlite Village Inn and Suites, 1518 3rd Avenue NW.
MidAmerican serves approximately 640,600 electric customers in Iowa.
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About This Rate Case Proceeding and Comment Meeting
Public Access to Filed Documents for this Case: Documents for this rate case are
available on the Board’s Electronic Filing System Web Site: efs.iowa.gov. Select “Search”
and “Document Search” from the top of the page, enter “RPU-2013-0004” in the Docket
Number field and hit enter or click Search to access documents in this case. Visit
http://www.state.ia.us/government/com/util/how to_file/forms_applications.html or call (515)
725-7337 to request paper copies (a fee applies).
A member of the Iowa Utilities Board will preside over the meeting. After introductions and
opening comments by the Board, representatives of MidAmerican Energy Company and the
Office of Consumer Advocate may provide brief remarks. A court reporter will transcribe this
public comment meeting for the record.
Next, the presiding Board member will open the meeting to comments from the audience.
The exact process will be explained and may be adjusted to suit the size of the audience and
meeting facilities. It may be necessary to impose time limits to allow everyone to speak.
Those wishing to speak will be directed to the designated microphone location.
Once at the microphone, please state your first and last name and spell your last name for
the court reporter. You may make comments or ask questions relevant to this rate request.
In the interest of making sure everyone has an opportunity to speak, we ask that your
comments be to the point and focused on this rate case. Please return to your seat when
you are finished speaking so the next person can speak.
The Iowa Utilities Board and Utility Rate Regulation
The Iowa Utilities Board is an independent quasi-judicial regulatory board of three
members, each appointed by the Governor to staggered six-year terms. The appointments
are subject to confirmation by the Iowa Legislature. No more than two Board members may
be from the same political party. The decisions of the Board may be appealed to the Courts
for judicial review.
Participants in a Rate Proceeding include the three-member Iowa Utilities Board, the Office
of Consumer Advocate, which represents general customer interests, and the utility
requesting the rate change. There may also be intervenors in the case such as other utilities,
customer groups, or other public groups that have an interest in the outcome of the case.
The Office of the Consumer Advocate (OCA) was created in 1983 to represent the general
customer interests in rate cases and other proceedings of the Board. In rate cases, the OCA
does not represent any individual customer or specific class of customers, but examines the
rate proposal to determine the justification and propriety of the request. The OCA may crossexamine witnesses in the case and may present its own expert witnesses to support its
position. The OCA is a division of the Iowa Attorney General’s office.
The Obligation of the Board under Iowa law is to ensure “the charge made by any public
utility … for any service rendered … shall be reasonable and just, and every unjust or
unreasonable charge for such service is prohibited … the board shall consider all factors
relating to value.”
Temporary Rates May be Sought by the utility under Iowa law, to become effective while
the decision on permanent rates is pending. MidAmerican is seeking a Board decision on
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temporary rates in this rate case. If the final rate approval is lower than the temporary rates
established, the over-collection is subject to customer refund with interest.
The Rate Making Process begins when a rate-regulated utility notifies its customers of
proposed rate changes and files a formal petition with the Iowa Utilities Board. The Board
then adopts a procedural schedule that may take up to ten months. The process generally
includes an opportunity for public input, the filing of written testimony, cross-examination of
that testimony at an evidentiary hearing, and the filing of legal briefs. Although it is open to
the public, participation in an evidentiary hearing is usually limited to the Board and parties of
record in the case. Public comment meetings are the appropriate venue for customers of the
utility to speak to the rate request.
Rate Case Considerations for the Board include a review of the utility’s revenue
requirement to cover the costs of general operating expenses, new capital expenses, cost of
debt, and a reasonable return on investment necessary for the utility to provide efficient and
reliable service. Only evidence in the record for this case may be considered in the decision.
Rate Elements include basic costs of providing service to customers. Costs can include
customer service costs associated with meter reading and billing, record keeping, customer
call center operations, and the communication of necessary information to customers. Other
items that can be included are the construction, maintenance and repair of distribution
facilities, the cost for collecting bad debt, general management and administrative costs
related to providing utility service, and the cost of capital to build and maintain the utility.
A Test Year is established as the basis for determining the rate requirement. The test year
takes the actual revenue and expense data for a 12-month period, which is usually the
preceding calendar year. Adjustments may be made to compensate for unusual or one-time
expenses or revenues.
Customer Districts and Rate Classes may differ according to the costs of providing service.
For example, residential customers typically use less than large commercial or industrial
customers. Differences can be used to determine what portion of the revenue requirement
(utility’s annual revenue generated from rates) will come from each customer class and then
rates can be established. MidAmerican’s petition includes a 10-year rate equalization plan to
balance rates in its East, North, and South service territories, which resulted from past utility
acquisitions and mergers.
Making Public Comments in a Rate Proceeding. Customers may provide comments in a
rate case to the Iowa Utilities Board by speaking in a scheduled public comment meeting or
by submitting written comments. Any comments made at a public comment meeting or
submitted in writing to the Board become part of the permanent file in a rate case.
Speaking in a Customer Public Comment Meeting. Individuals may speak on their own
behalf. It is suggested that one or two prepared spokespersons comment for groups. Please
have spokespersons acknowledge other group members by standing or by a show of hands.
Providing Written Comments. The Board will accept concise written public comments
expressing specific support or objections about a formal petition filed by a utility to change its
rates. An electronic comment form at iub.iowa.gov may be used to submit comments for
this rate case (Docket No. RPU-2013-0004). Written comments may also be sent to the
addresses on the back of this handout or emailed to [email protected].
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When and How to Contact the Iowa Utilities Board
Problems with your utility service or questions about your utility bill?
The best way to get answers to your utility questions is to contact the utility. If the
utility’s first line customer service representatives cannot resolve your concerns, ask to
speak to a customer service supervisor.
What should you do if you cannot get the matter resolved by talking to your
utility?
If you have tried unsuccessfully to resolve the matter with your utility, contact the
Customer Service Section of the Iowa Utilities Board and request assistance.
How do I contact the Customer Service Section of the Iowa Utilities Board?
By telephone, call toll free: 1-877-565-4450
(In Des Moines, call 725-7321)
Email: [email protected]
Web Site Complaint Form: iub.iowa.gov
Mail:
Customer Service
Iowa Utilities Board
1375 E. Court Avenue, Rm. 69
Des Moines, IA 50319-0069
How do I access documents filed in this rate case?
Documents for this rate case are available on the Board’s Electronic Filing System Web
Site: efs.iowa.gov. Select “Search” and “Document Search” from the top of the page,
enter “RPU-2013-0004” in the Docket Number field and hit enter or click Search to
access documents in this case. To request paper copies of documents in this case, you
may call the Board’s Records and Information Center at (515) 725-7337 or visit
http://www.state.ia.us/government/com/util/how_to_file/forms_applications.html
(06/13)
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