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.
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 a bill looks like at this rate
The figures below apply the May 2026 Iowa average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
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.
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.
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 a typical monthly electric bill in Iowa?
At the May 2026 average rate of 14.14¢/kWh, a household using 900 kWh a month would pay about $127, and one using 1,500 kWh about $212. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
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.
Where does this Iowa rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.