MidAmerican Energy Company Issues Regulatory Update on Energy Adjustment Clause

Strategic Insights -

MidAmerican Energy Company, a utility company operating in the Midwest, has recently issued a regulatory update regarding its energy adjustment clause (EAC) for electric tariff number 2. The update, filed with the Iowa Utilities Commission on June 16, 2025, outlines changes to the EAC, including the calculation of energy costs and the adjustment of rates for renewable energy credits and carbon dioxide credits.

The update, issued on June 13, 2025, by Arick R. Sears, Sr. Vice President of Regulation and Government Affairs, will become effective on June 30, 2025. The key changes to the EAC include the calculation of energy costs, which will now take into account the cost of contract, emergency, and economy energy purchased in account 555, as well as the cost of energy produced for non-jurisdictional sales.

Key Takeaways:

  • The cost of contract, emergency, and economy energy purchased in account 555 will be included in the calculation of energy costs.
  • Purchases of capacity and energy from qualifying alternate energy production facilities will also be included in the energy adjustment clause.
  • The cost of energy produced for non-jurisdictional sales, including sales for resale, is not includable in the energy adjustment clause.
  • The energy adjustment clause will be adjusted by revenues from the sale of renewable energy credits, carbon dioxide credits, or other environmentally related benefits associated with MidAmerican Energy's renewable power projects.
  • The cost of energy will be adjusted by the pre-tax amount of any federal production tax credits associated with renewable power projects, grossed up at the Gross Revenue Conversion Factor.

Statistics:

  • The total number of turbines listed in the ratemaking principle docket is 1,309.
  • The total number of wind turbines listed in the ratemaking principle docket for repowering is 105, with a total capacity of 195.5 MW.
  • The electric tariff number 2 substitute 14th revised sheet number 434 outlines an applicable annual energy adjustment clause factor of $0.00802/kWh for all rates.

Sources:

  • EAC-2025-0156, filed with the Iowa Utilities Commission on June 16, 2025
  • MIDAMERICAN ENERGY COMPANY Electric Tariff No. 2 Substitute 8th Revised Sheet No. 433
  • MIDAMERICAN ENERGY COMPANY Electric Tariff No. 2 Substitute 3rd Revised Sheet No. 433.1
  • MIDAMERICAN ENERGY COMPANY Electric Tariff No. 2 Substitute 14th Revised Sheet No. 434