Iowa Utilities Fail to Plan for Clean Energy Transition

Strategic Insights -

Iowa's utility companies, including MidAmerican Energy and Interstate Power and Light Company, have scored poorly in a report by the Sierra Club, failing to adequately plan for a transition to clean energy. The report, titled "The Dirty Truth 2025," rates utilities' plans to retire coal, not build new gas plants, and build enough clean energy infrastructure to meet growing load needs by 2035. The utilities were rated on a scale of A to F, with A being a score of 75 or higher and F being a score of 17.5 or lower.

Key Takeaways:

  • Iowa utilities scored an F grade in the Sierra Club's report, with MidAmerican Energy and Interstate Power and Light Company receiving F's this year after previously scoring D's.
  • The utilities were rated on their plans to retire coal by 2030, not build new gas plants through 2035, and build enough clean energy infrastructure to meet growing load needs by 2035.
  • Only 3 utility companies scored an A in the report, while 16 utility companies "backtracked" on previous climate commitments.
  • 65% of utilities have improved their clean energy scores since 2021, but 69% of utilities have worsened their scores in the gas category by planning new natural gas projects.
  • The Sierra Club report notes that utilities face "dual pressures" from the Biden administration's clean energy agenda and the cancellation of clean energy incentive programs by the Trump administration, as well as a "surge in projected electricity demand."
  • U.S. electricity demand is expected to grow 25% by 2030, with nearly 80% growth by 2050, driven by energy demand from data centers and the electrification of automobiles, buildings, and industry.
  • Utilities are not planning for the clean energy transition at the pace and scale needed to address rising electricity costs or protect public health, with the Sierra Club stating that poor planning will result in higher bills for customers.

Statistics:

  • U.S. electricity demand is expected to grow 25% by 2030 (ICF report).
  • Nearly 80% growth in energy demand is expected by 2050 (ICF report).
  • 65% of utilities have improved their clean energy scores since 2021.
  • 69% of utilities have worsened their scores in the gas category by planning new natural gas projects.
  • MidAmerican Energy's coal generation was 51.8% lower in 2024 than it was in 2020.
  • Alliant Energy's carbon dioxide emissions in 2024 were 39% lower than the company's 2005 levels.
  • 3 utility companies scored an A in the report.
  • 16 utility companies "backtracked" on previous climate commitments.

Sources:

  • "The Dirty Truth 2025" report by the Sierra Club (https://www.sierraclub.org/sites/default/files/2025-09/dirty-truth-report-2025.pdf)
  • ICF report on electricity demand (https://www.icf.com/insights/energy/electricity-demand-expected-to-grow)
  • Sierra Club's 2024 Dirty Truth report (https://coal.sierraclub.org/sites/nat-coal/files/DirtyTruth_Report_2024.pdf)
  • Iowa Capital Dispatch article on Iowa utilities and clean energy transition (https://iowacapitaldispatch.com/2025/09/10/iowa-utilities-must-rapidly-make-use-of-biden-era-renewable-credits-to-reach-emissions-goals/)