Energy Efficiency Standard
Administered by Utilities
Iowa's major utilities offer energy efficiency rebates and programs such as energy audits, direct equipment rebates, and financing options to help reduce your electric and gas bills. Contact your utility company (Alliant Energy, MidAmerican Energy, Black Hills Energy, or Liberty Energy) directly to learn which programs apply to your home and what incentives are available in your service area.
Utilities must administer cost-effective energy efficiency programs and can claim savings through measures documented in the Iowa Technical Reference Manual (TRM). Program requirements include participation in multiple customer classes, use of the Societal Cost Test for cost-effectiveness evaluation, and annual compliance reporting to the Iowa Utilities Commission; utilities recover program costs through automatic rate adjustments reconciled annually.
Iowa's Energy Efficiency Resource Standard, established in 2008 and updated in 2019, requires all rate-regulated utilities to meet mandated energy savings targets (0.28–0.74% annual electric reductions and specified gas reductions through 2028) and peak demand reduction goals (291–581 MW by 2028) through approved utility plans. Costs are capped at 1.5–2% of annual retail revenue, recovered through customer bills, and evaluated using the Societal Cost Test; the Iowa Utilities Commission approves plans, conducts prudence reviews, and maintains the Iowa TRM as the standard reference for measure savings calculations.
Program details
- Program ID
- 4537
- Last updated
- 6/30/2025
Eligibility
- Sectors
- investor-owned utility local government municipal utilities cooperative utilities retail supplier
- Technologies
- custom/others pending approval other ee
Program summary
Origin
In 2008, Iowa enacted S.F. 2386, which requires the Iowa Utilities Board (IUB) to create energy savings standards (electricity and natural gas) for all rate-regulated utilities. Utilities that are not rate-regulated (municipal and cooperative utilities) were required to establish their own energy efficiency goals. In 2019, Iowa also enacted S.F. 638, which disallows utilities from adopting energy efficiency plans that result in projected cumulative average annual costs that exceed 1.5% and 2% of gas and electric utilities' respective annual retail rate revenue from retail customers. These goals were filed in December 2009. All utilities (rate-regulated and otherwise) must submit plans with the IUB utility, administer customer energy efficiency programs in order to reach the efficiency goals, and submit annual reports to the IUB describing energy efficiency efforts. Utility efficiency plans, operating plans, and annual reports can be found here.
Electric Sales, Peak Demand, and Natural Gas Sales Reduction
A utility may reduce energy consumption through improvements to its infrastructure or through customer programs. Examples of customer programs include energy studies and audits, education, direct rebates and other financial assistance, research projects, time-of-use rates, tree planting, and hot water insulation distribution programs. In addition, utilities must target peak demand reductions.
The table below shows the required average energy savings levels during 2024-2028:
| Applicable Rate-Regulated Electric Utility | Range of Average Target Reductions Relative to Baseline (2024-2028) |
|---|---|
| Interstate Power & Light (Alliant Energy) | 0.7% |
| MidAmerican Energy | 0.73-0.74% |
The table below shows the required target for peak demand reduction by 2023.
| Applicable Rate-Regulated Electric Utility | Target Reductions Relative to Baseline (By 2028) |
|---|---|
| Interstate Power & Light (Alliant Energy) | 291 MW |
| MidAmerican Energy | 581 MW |
The table below shows the required annual gas savings levels during 2019-2023:
| Applicable Rate-Regulated Natural Gas Utility | Range of Average Target Reductions Relative to Baseline (2024-2028) |
|---|---|
| Interstate Power & Light (Alliant Energy) | 0.3% |
| MidAmerican Energy | 0.28-0.30% |
| Iowa Gas Utility Company (Black Hills Corp.) | 172,658 Dth |
Cost Effectiveness and Program Evaluation
Iowa uses the Societal Cost Test (SCT), one of the five “California tests” from the California Standard Practice Manual, as its primary cost-effectiveness test for evaluating energy efficiency programs.
Utility Cost Recovery Provisions
The costs of these programs are recovered through cost recovery factors on each customer's bill.
Contact & resources
- Contact email
- iuc@iuc.iowa.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
