Settlement With State Will Freeze Electric Rates for Five Years and Provide for New MidAmerican Energy Power Plants
DES MOINES-- Attorney General Tom Miller and the Office of Consumer Advocate (OCA) said today that a formal agreement between MidAmerican Energy and the Consumer Advocate specifies that MidAmerican electric rates will be frozen at current levels for the next five years, and that the company will construct new gas and coal generating plants to meet current and future electricity demands for Iowa.
The formal settlement would end legal rate cases filed by both the OCA and MidAmerican now pending before the Iowa Utilities Board, which regulates public utilities in Iowa. The agreement reached between the OCA and MidAmerican must be approved by the three-member Utilities Board.
"This is a very good result for consumers and for Iowa," said Iowa Attorney General Tom Miller, who with the Office of Consumer Advocate negotiated the agreement with MidAmerican. "Rates will be frozen for five years, all parties will avoid substantial litigation costs and risks, and the new plants will help assure electric reliability and prevent blackouts in Iowa."
Miller described the agreement in remarks at MidAmerican's announcement today in Pleasant Hill that it will build a new electric generation plant in the community near Des Moines.
Tam Ormiston, Acting Consumer Advocate, said: "We look forward to presenting this settlement agreement to the Utility Board for its approval. The settlement assures Iowans of long-term rate stability and sufficient power to meet our current and future need for electricity."
The Office of Consumer Advocate is an office of the Iowa Department of Justice that represents the interests of all consumers and the public in matters before the Iowa Utilities Board.
"I commend the company, the Governor, and the Office of Consumer Advocate for working so hard to come to this good result," Miller said.
"This is an example of the kind of public-private partnership that helps us move forward in Iowa. It is a good agreement for consumers, and it's good for Iowa's future," he said.
- 30 -