The settlement grants revenue increases of $45.15m in both 2015 and 2016, with the implementation of the second and third phases of the $135.5m revenue increase, while maintaining the $45.2m annual revenue increase that was already applied following the Board’s approval of the first phase as temporary rates in August 2013.
Negotiated by the Office of Consumer Advocate, the settlement’s terms will not allow MidAmerican to seek another electric rate hike in Iowa prior to 01 January 2018, unless its return on equity for any year from 2015 to 2017 is projected to fall below 10%.
MidAmerican residential customers experienced an average bill increase of approximately $2.73 per month during the first phase under temporary rates.
As originally proposed by MidAmerican and included in the settlement, electric rates will also be equalized across the company’s Iowa service territories over the next ten years with individual customer rate impacts varying by customer class, rate zone and electric usage levels.
A written order for the announcement is scheduled to be issued on or before 17 March 2014.
