Iowa electricity rates
As of May 2026, the average residential electricity rate in Iowa is 14.14 cents per kilowatt-hour, 23.3% below the U.S. average of 18.44¢. That is the 43rd highest rate of the 50 states and the District of Columbia.
- Year over year
- ▼ -0.1% from 14.16¢ in May 2025
- Vs. U.S. average
- -23.3% U.S. average 18.44¢
- National rank
- #43 of 51 · #9 cheapest
- Supply market
- MISO Regulated monopoly
Why Iowa pays what it pays
Iowa generates more of its electricity from wind than any other state, more than half of in-state generation in recent years. Wind has effectively zero fuel cost, and Iowa's utilities own much of their fleet outright rather than buying it under contract, so the low marginal cost flows to ratepayers rather than to a merchant generator.
The state also has favourable structural conditions: flat terrain that makes distribution cheap to build and maintain, a large industrial and agricultural load that spreads fixed costs, and a regulatory framework that has supported utility-owned renewables through rate base rather than competitive procurement.
Iowa's rate was essentially flat year over year, one of only a handful of states that did not rise. That is what a mostly fuel-free generation fleet looks like when gas prices move.
Where Iowa power comes from
Iowa generated 74 TWh in 2025, the 21th largest output of any state. Wind supplied 58.9% of it, enough that the price of that fuel largely sets the price of electricity here. Renewables accounted for 62.2%, against 23.8% nationally, which ranks Iowa #6 of 51.
- Wind 58.9% 44 TWh
- Coal 25.7% 19 TWh
- Natural gas 11.7% 9 TWh
- Solar 1.8% 1 TWh
- Hydroelectric 1.5% 1 TWh
Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.
How Iowa compares
Iowa ranks #43 of 51 jurisdictions by residential price, making it the 9th cheapest. Within the West North Central division, 3 of 6 neighbouring states are cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Nebraska | 13.59 | +3.3% | #48 |
| North Dakota | 13.61 | +3.9% | #46 |
| Missouri | 13.68 | +5.1% | #45 |
| Iowa | 14.14 | -0.1% | #43 |
| Kansas | 15.13 | +2.7% | #34 |
| South Dakota | 15.73 | +9.8% | #31 |
| Minnesota | 16.95 | +7.0% | #22 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What Iowa households actually pay
Iowa looks more expensive on paper than it is in practice. Its rate ranks #43 of 51, but the average bill ranks only 43rd, because households there use 850 kWh a month against a national average of 871. See how every state compares on bills.
Estimate your Iowa bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Heating in Iowa: gas, heat pump or resistance
Residential natural gas in Iowa averaged $10.33 per thousand cubic feet in 2024, about $1.00 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.
In Iowa, gas remains cheaper to run than a heat pump by about $2.74 per million BTU at these assumptions, roughly $164 over a 60 million BTU season. A heat pump can still be the better purchase once cooling, equipment age and incentives are counted, but not on heating cost alone.
Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.
What each Iowa utility charges
The statewide average hides a wide spread. Across the 20 Iowa utilities reporting to the EIA, rates run from 9.26¢ at North West Rural Electric Coop to 17.90¢ at Interstate Power and Light Co . Together they serve 1.2 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| MidAmerican Energy Co | 11.01 | $87 | 791 | 632,436 |
| Interstate Power and Light Co | 17.90 | $128 | 714 | 417,153 |
| Linn County REC | 14.23 | $121 | 850 | 30,323 |
| City of Ames | 12.10 | $69 | 570 | 24,979 |
| Eastern Iowa Light & Power Coop | 13.56 | $154 | 1,134 | 20,749 |
| Cedar Falls Utilities | 10.42 | $82 | 786 | 17,772 |
| Midland Power Coop | 13.60 | $191 | 1,407 | 11,939 |
| Maquoketa Valley Rrl Elec Coop | 13.76 | $146 | 1,059 | 11,051 |
| Board of Water Electric & Communications | 12.63 | $102 | 808 | 10,123 |
| Iowa Lakes Electric Coop | 13.78 | $199 | 1,444 | 9,714 |
| North West Rural Electric Coop | 9.26 | $204 | 2,198 | 9,400 |
| Access Energy Coop | 14.95 | $159 | 1,060 | 8,850 |
| East-Central Iowa Rural Elec Coop | 13.28 | $179 | 1,346 | 7,368 |
| Consumers Energy Coop | 15.00 | $153 | 1,019 | 6,922 |
| MiEnergy Cooperative | 16.91 | $165 | 976 | 6,006 |
| Heartland Power Coop | 12.67 | $194 | 1,528 | 4,351 |
| Butler County Rural Elec Coop | 15.43 | $209 | 1,357 | 3,898 |
| Prairie Energy Coop | 14.34 | $183 | 1,279 | 3,440 |
| City of Maquoketa | 13.15 | $91 | 696 | 2,805 |
| City of Independence | 13.82 | $89 | 648 | 2,719 |
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
Who sells electricity in Iowa
MidAmerican Energy, a Berkshire Hathaway Energy company, serves much of the state and owns a very large wind fleet. Alliant Energy's Interstate Power and Light covers most of the rest. Municipal utilities and rural electric co-operatives are widespread.
Iowa has no residential retail choice. Utilities are vertically integrated within MISO.
Iowa sits in The Midwest. A single wholesale market stretching from Manitoba to the Gulf, containing both the cheapest wind states and some of the highest delivery costs in the country. Read the regional analysis.
What you can actually do about it
Iowa's low rate makes electrification arithmetic unusually favourable. Heat pumps and electric vehicles pay back faster here than in most states, because the operating cost comparison against gas and petrol starts from a lower base.
Data-centre load growth in central Iowa is the thing to watch. It has so far come with its own generation contracts rather than being socialised across residential customers, but it is the main variable in the state's medium-term rate path.
Closest states by price
These jurisdictions charge within a fraction of a cent of Iowa, which is useful if you are comparing a move or a multi-state operating cost.
Iowa electricity rates: common questions
What is the average electricity rate in Iowa?
The average residential electricity rate in Iowa is 14.14 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -23.3% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in Iowa?
The average Iowa household paid $119 a month across the twelve months to May 2026, using an average of 850 kWh. That is -23.5% against the U.S. average bill of $155, and it ranks 43rd highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.
Why is the Iowa bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Iowa ranks #43 of 51 on price but 43rd on the actual bill, because households there use about 850 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in Iowa gone up?
Iowa rates fell 0.1% over the year to May 2026, from 14.16¢ in May 2025 to 14.14¢.
Can I choose my electricity supplier in Iowa?
Regulated monopoly. Iowa households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.