Iowa Policy Info

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Overview - Energy in Iowa

Iowa does not produce any the coal or natural gas that are used in the state. 87% of coal used in Iowa goes to generating electricity, and coal-fired plants generate 74% of the electricity in Iowa. All of the coal that Iowa consumes must be imported, at a cost of $418 million annually that leaves the state's economy. Similarly, all of Iowa's natural gas is imported, at a wholesale cost of $2.0 billion annually.

Together, coal and natural gas imports account for $2.4 billion draining out of Iowa's economy. If this money was retained in Iowa, it would provide bill reductions for Iowa's ratepayers, put downward pressure on energy prices through reduced demand, and help to increase Iowa's energy independence.

Iowa has a strong tradition of energy efficiency programs and recent policy developments have put energy efficiency on an even firmer footing within the state. Iowa is also a strong leader in alternative energy sources, gaining about 6% of electricity from wind and leading the nation in ethanol fuel production.

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Energy Efficiency Resource Standards

In 2008, Governor Culver signed Senate File 2386 which allows consumer-owned electric utilities to establish and submit energy efficiency goals to the Iowa Utility Board (IUB) for approval. This legislations tasks utilities with assessing their energy savings potential, establishing goals, and then creating a plan detailing how these goals will be met. Governor Culver has also given the IUB the authority to set a recommended yearly energy savings goal for investor-owned utilities of 1.5% for electricity and natural gas. Utilities are not required by legislation to submit efficiency plans, but once approved plans are binding.