Reliable, competitively priced, clean energy is a must if Iowa’s communities and businesses are to be economic competitive in the future. Unfortunately, Iowa’s archaic regulatory approach to our investor-owned electric utilities is making many of Iowa’s communities economically non-competitive. When Cedar Rapids’, Ottumwa, and Osceola’s residents are forced to pay over 60% more for their electricity than Des Moines or Iowa City, it signals Iowa’s century old approach needs to change.

What is the key problem - our regulatory scheme guarantees profits to MidAmerican Energy and Alliant based on how many capital assets they own - not on the efficiency or reliability of the grid. And Iowa, unlike many states, grants the utilities a monopoly in their geographic area. No one else can compete with them. (It may make you wonder why they spend so much on advertising).

While the Iowa Utilities Commission is responsible for oversight and approving utility rates, the Commission can now only consider investments that the utilities recommend. As for-profit companies - the utilities have a fiduciary responsibility to maximize their profits - so the utilities have a fiduciary responsibility to request investments that maximize their profits - whether or not it is in the best interest of the ratepayers.

The challenge - utility regulation is complicated. And the investor-owned utilities have a significant profit-incentive to protect a broken and outdated system.

And Iowa’s business community has not sufficiently engaged in trying to change the system to overcome the political influence of the utilities. Iowa Business for Clean Energy wants to ensure Iowa’s businesses, communities and residents have the understanding to help modernize how Iowa regulates our electric grid.