MidAmerican Energy Company Submits Regulatory Update on Clause Energy Efficiency Cost Recovery

Strategic Insights -

MidAmerican Energy Company has submitted a regulatory update to the Iowa Utilities Commission regarding the Clause Energy Efficiency Cost Recovery (EECR) annual reconciliation and 2025 factor filing. The update revises the cost recovery factor for each customer class, with a significant increase to the cost recovery factor for nonresidential customers due to the reintroduction of natural gas incentives in the commercial new construction (CNC) program. This program provides financial incentives for implementing energy efficiency strategies in new building construction and major renovations of existing buildings. The updated filing includes a revised tariff sheet and estimates an increase to the typical monthly bill for nonresidential customers ranging from 0.8% to 2.6%.

Key Takeaways:

  • The Clause Energy Efficiency Cost Recovery (EECR) annual reconciliation and 2025 factor filing has been submitted by MidAmerican Energy Company to the Iowa Utilities Commission.
  • The filing revises the cost recovery factor for each customer class, with a significant increase to the cost recovery factor for nonresidential customers.
  • The increase to the cost recovery factor for nonresidential customers is due to the reintroduction of natural gas incentives in the commercial new construction (CNC) program.
  • The CNC program provides financial incentives for implementing energy efficiency strategies in new building construction and major renovations of existing buildings.
  • In 2024, therm savings exceeded the CNC program therm goal by more than 300%, resulting in a $4.7m net benefit.
  • The increased EECR factor for nonresidential customers represents an estimated increase to the typical monthly bill ranging from 0.8% for Rate SVT to 2.6% for Rate INTS.
  • The revised tariff sheet includes Exhibit 1 Gas and is proposed to be effective on July 30, 2025, contingent on approval by July 25, 2025.

Sources:

  • MidAmerican Energy Company, "Clauses Energy Efficiency Cost Recovery 2024 Annual Reconciliation and 2025 Factor Filing"
  • Iowa Utilities Commission, TF-2025-0041 (filing submitted on June 16, 2025)

Statistics:

  • 300%: exceeding of the CNC program therm goal in 2024
  • $4.7m: net benefit resulting from exceeding the CNC program therm goal in 2024
  • 0.8%-2.6%: estimated increase to the typical monthly bill for nonresidential customers
  • July 25, 2025: deadline for approval of the revised tariff sheet
  • July 30, 2025: proposed effective date of the revised tariff sheet
  • June 16, 2025: date of filing submitted to the Iowa Utilities Commission (TF-2025-0041)