Iowa commercial electricity rates

Analyst note

The Iowa commercial price sat above the U.S. average in 0 of 10 years; the gap was -1.72 ¢ in 2015 and -2.53 ¢ in 2024. In the 2024 ranking Iowa sits between Arkansas (10.24 ¢) one place above and Nevada (10.19 ¢) one place below; the top of the list is 27.96 ¢ away and the bottom 3.03 ¢. Iowa was 38th in 2015 with 8.92 ¢ and is 40th now; a fall in the table. Iowa commercial prices rose in 6 of 9 years. The largest rise was +3.7% in 2022, and the largest fall -2.1% in 2023. The Iowa price peaked at 10.55 ¢ in 2022 and bottomed at 8.92 ¢ in 2015; 2024 is 3.1% below the peak and +14.6% from the low. Compounded, that is +1.52% a year in Iowa, -0.51 points against the U.S. Iowa buys 0.88% of all U.S. commercial electricity with 1.29% of the accounts, so the average Iowa account uses 0.68 times the national average.

A middle price: 10.22 ¢/kWh for Iowa commercial accounts, rank 40 of 51, -19.8% against the U.S. Iowa: +14.6% over nine years, or +1.5% a year, trailing the national +19.8% by 5.3 points; 2022 was the biggest single move (+3.7%) and 2022 the high.

Last year's change in Iowa was -1.1% and falling. Against the residential price of 13.40 ¢ the gap is 3.18 ¢. Commercial sales are 23.3% of Iowa electricity sold, and an average Iowa account used 4,243 kWh a month, an implied bill near $434.

Counting revenue instead of kWh, Iowa commercial accounts bring in 25.5% of Iowa sector revenue on 23.3% of the kWh, a premium of 2.2 points that comes from the price level: 10.22 ¢ here against 13.40 ¢ for residential and 6.80 ¢ for industrial accounts. The average Iowa commercial account uses 4,243 kWh a month, 44 of 51 among states on that measure; a residential account uses 0.20 times as much and an industrial account 57.30 times. Commercial accounts are 14.72% of the 1,710,011 accounts in Iowa.