Iowa Electricity Prices

Iowa's residential electricity rate in August 2026 was 17.06¢/kWh, ranking 23rd most expensive among the 50 states and DC. This is 1.10¢/kWh below the national average of 18.16¢/kWh, or 6.1% cheaper. Among bordering states, only Nebraska at 13.54¢/kWh and South Dakota at 15.15¢/kWh are less expensive, while Missouri sits at 16.02¢/kWh, Minnesota at 17.20¢/kWh, Illinois at 19.32¢/kWh, and Wisconsin at 19.41¢/kWh all charge more. Commercial and industrial rates follow similar patterns, at 14.15¢/kWh and 9.31¢/kWh respectively.

The rate has climbed sharply over recent years. Since August 2021 it rose 17%, from 14.58¢/kWh. Over the longer view, the increase has been steep: since August 2006 it has grown 67.3% from 10.20¢/kWh, and since records began in January 2001 it has more than doubled, rising 122.7% from 7.66¢/kWh. August 2026 marks the highest rate on record; the lowest came in January 2002 at 7.65¢/kWh. Year over year, the rate increased 9.5%.

A typical residential customer pays $121 per month while using 847 kWh, compared with a national average bill of $158 on usage of 876 kWh. Iowa's lower rate more than compensates for slightly below-average consumption, resulting in a bill well below the national figure.