Updated: March 2026

State Energy Guide

Iowa Commercial Energy & Utility Guide

Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in Iowa.

Energy Market Overview

Regulated MarketIA

Iowa has a regulated electricity market served primarily by MidAmerican Energy (Berkshire Hathaway subsidiary) and Alliant Energy (Interstate Power and Light). Commercial customers cannot choose their electricity supplier. The Iowa Utilities Board regulates rates. Iowa is a national leader in wind energy, generating over 60% of its electricity from wind turbines, which keeps commercial rates competitive.

What this means for property managers:

In Iowa's regulated market, your utility provides both generation and distribution at rates set by the state public utility commission. While you cannot choose your electricity supplier, you can optimize costs through rate schedule analysis, demand management, and participation in utility efficiency programs.

Regulated Market

Rates are set by the public utility commission. No supplier choice available.

Electric: RegulatedGas: Regulated

Average Commercial Energy Rates

$0.12Avg. Commercial Electric
$0.85Avg. Commercial Gas

Stable

MidAmerican Energy has not raised base rates since 2013 thanks to massive wind investment that offsets fuel costs. Alliant Energy rates have seen modest increases of 3-5% for grid modernization.

Energy Regulations & Benchmarking

No Statewide Benchmarking

Iowa has no statewide energy benchmarking or building performance mandates. Iowa was the first state to adopt a renewable portfolio standard in 1983 and has since exceeded its goals. The state offers commercial property tax exemptions for solar and wind installations, incentivizing on-site generation for commercial buildings.

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