Back to All Programs

Last Updated February 17, 2023

Program Overview

Category:

Regulatory Policy

State:

Iowa

Incentive Type:

Energy Efficiency Resource Standard

Administrator:

Utilities

Start Date:

N/A

Expiration Date:

N/A

Web Site:

Applicable Sectors:

N/A

Eligible Renewable/Other Technologies:

N/A

Summary

*Note: Energy efficiency plans for the 2024-2028 period are currently in process.

Origin

In 2008, Iowa enacted S.F. 2386, which requires the Iowa Utilities Board (IUB) to create energy savings standards (electricity and natural gas) for all rate-regulated utilities. Utilities that are not rate-regulated (municipal and cooperative utilities) were required to establish their own energy efficiency goals. In 2019, Iowa also enacted S.F. 638, which disallows utilities from adopting energy efficiency plans that result in projected cumulative average annual costs that exceed 1.5% and 2% of gas and electric utilities' respective annual retail rate revenue from retail customers. These goals were filed in December 2009. All utilities (rate-regulated and otherwise) must submit plans with the IUB utility, administer customer energy efficiency programs in order to reach the efficiency goals, and submit annual reports to the IUB describing energy efficiency efforts. Utility efficiency plans, operating plans, and annual reports can be found here.

Electric Sales, Peak Demand, and Natural Gas Sales Reduction

A utility may reduce energy consumption through improvements to its infrastructure or through customer programs. Examples of customer programs include energy studies and audits, education, direct rebates and other financial assistance, research projects, time-of-use rates, tree planting, and hot water insulation distribution programs. In addition, utilities must target peak demand reductions. 

The table below shows the required average energy savings levels during 2019-2023:

Applicable Rate-Regulated Electric Utility Range of Average Target Reductions
Relative to Baseline (2019-2023)
Interstate Power & Light (Alliant Energy) 0.77% 
MidAmerican Energy 1%

The table below shows the required target for peak demand reduction by 2023.

Applicable Rate-Regulated Electric Utility Target Reductions Relative to
Baseline (By 2023)
Interstate Power & Light (Alliant Energy) 265 MW
MidAmerican Energy 466 MW

The table below shows the required annual gas savings levels during 2019-2023:

Applicable Rate-Regulated Natural Gas Utility Range of Average Target Reductions
Relative to Baseline (2019-2023)
Interstate Power & Light (Alliant Energy)0.17%
MidAmerican Energy0.26% 
Iowa Gas Utility Company (Black Hills Corp.) 0.12%

Cost Effectiveness and Program Evaluation

Iowa uses the Societal Cost Test (SCT), one of the five “California tests” from the California Standard Practice Manual, as its primary cost-effectiveness test for evaluating energy efficiency programs.

Utility Cost Recovery Provisions

The costs of these programs are recovered through cost recovery factors on each customer's bill.