Electric Rates
Rates are made up of four basic components: The residential and small commercial electric rates are made up of the Service Charge, the Energy Charge (kWh) and the Energy Rate Adjustment (ERA). Large commercial and industrial rates also have a Demand Charge (kVA).

Service Charge
The service charge is a fixed fee each month and is also the minimum bill amount.

Energy Charge (kWh)
The energy charge is the amount you pay for each kilowatt hour (kWh) that you use. You will notice the cost per kilowatt hour is a bit higher during the summer. This is because it costs more to produce electricity in the summer.

For residential and small commercial customers the summer and winter rate is flat meaning you pay the same for all kilowatt hours you use during those periods. For large commercial and industrial customers the energy charge is the same all year.

Energy Rate Adjustment (ERA)
The Energy Rate Adjustment (ERA) is a component that allows the utility to reflect fluctuations in the cost of fuel for the power plant without frequently changing the standard energy charges shown above. The ERA is simply the difference between actual fuel costs for the past twelve months and the base fuel cost. The ERA for May, 2023 was $0.0000 per kWh. Because actual fuel costs equals that assumed in the base rate the ERA is zero.   

ERA ($/kWh)
	2020	2021	2022	2023	2024
January	-$.0071	-$.0072	-$.0064	-$.0011	-$.0042
February	-$.0071	-$.0073	-$.0061	$.0002	-$.0056
March	-$.0074	-$.0078	-$.0051	-$.0002	-$.0047
April	-$.0074	-$.0055	-$.0075	$.0001	-$.0046
May	-$.0072	-$.0060	-$.0072	$.0000	-$.0043
June	-$.0066	-$.0073	-$.0071	$.0009	-$.0036
July	-$.0067	-$.0078	-$.0063	$.0011	-$.0032
August	-$.0065	-$.0078	-$.0050	$.0001	-$.0032
September	-$.0074	-$.0075	-$.0031	-$.0014	-$.0030
October	-$.0072	-$.0065	-$.0028	-$.0029	-$.0029
November	-$.0077	-$.0061	-$.0014	-$.0043	-$.0023
December	-$.0074	-$.0065	-$.0017	-$.0037

Demand Charge (kVA)
The demand charge reflects the cost for the highest average instantaneous amount of power demanded by a customer recorded during any 15 minute time period within the billing month measured in kilovolt amps (kVA). It represents the greatest amount of electricity the customer uses at any one time during the month.

The summer rate is in effect for utility bills that are mailed on or between July 1 and October 31. This means that the summer rate would normally apply to electricity consumed from June through September. The remaining eight months are billed at the winter rate.

• More rate information is available in Chapter 28 of the Ames Municipal Code.
  
  

Renewable Energy Buyback Rates

Renewable electrical energy produced by an Ames Electric Utility customer and delivered to the City's electric system (in accordance with the conditions of service specified in Section 2.7 of Appendix H of the Ames Municipal Code) shall receive a credit to their utility account as follows:

Residential Service. A residential rate customer's account shall be credited:
     (a) $0.0735 per kWh of delivered energy for bills mailed on or between July 1 and October 31 (summer period)
     (b) $0.0652 per kWh of delivered energy for bills mailed on or between November 1 and June 30 (winter period)

Small Commercial Service. A small commercial service customer's account shall be credited
     (a) $0.0678 per kWh of delivered energy for bills mailed on or between July 1 and October 31 (summer period)
     (b) $0.0594 per kWh of delivered energy for bills mailed on or between November 1 and June 30 (winter period)

Commercial Service. A commercial service customer's account shall be credited $0.0472 per kWh of delivered energy

Industrial Service. An industrial service customer's account shall be credited $0.0506 per kWh of delivered energy

On October 1, 2024, the City of Ames Electric Services adjusted rates to better align with the cost of service. This resulted in no net increase to customers.

Residential Rates

The Residential Electric Rate is available for all single-phase domestic uses in separately metered dwelling units that are intended for occupancy by a single family. This rate would apply to most owner or renter occupied housing where the electricity is metered separately for each unit.

	Winter Rates	Summer Rates
All kWh	8.93¢ per kWh	11.01¢ per kWh
Service Charge	$14.25 per month	$14.25 per month

 

Small Commercial Rates

The General Power Rate is available to all non-residential customers except those that qualify for another rate schedule. It is intended for all single-phase, or three-phase, single metered facilities where the metered demand does not exceed 55 kVA.

	Winter Rates	Summer Rates
All kWh	9.67¢ per kWh	11.75¢ per kWh
Service Charge	$20.50 per month	$20.50 per month

 

Commercial Rates

The Large Power Rate is optional for any non-residential customer whose energy consumption in any billing period exceeds 10,000 kWh. The Large Power Rate is mandatory for any non-residential customer whose metered demand at any time exceeds 55 kVA.

	Winter Rates	Summer Rates
All kVA Demand	$8.01 per kVA	$10.71 per kVA
All kWh Energy	6.53¢ per kWh	6.53¢ per kWh
Service Charge	$156.00 per month	$156.00 per month

 

Industrial Rates

The Industrial Rate is available to any non-residential customer who would otherwise qualify as a large commercial customer and is involved with manufacturing or industrial processing. On a month-by-month basis, a qualified industrial customer will be charged the lower of bills calculated on the large commercial and industrial rates.

	Winter Rates	Summer Rates
All kVA Demand	$7.80 per kVA	$10.40 per kVA
All kWh Energy	6.42¢ per kWh	6.42¢ per kWh
Service Charge	$1,100.00 per month	$1,100.00 per month

 

How to Calculate Your Electric Costs - Residential

Residential Rates: If a residence consumed 1,050 kWh of electricity a month:

Winter - Residential (OCT, 2024)
1,050 kWh X $.0893	$93.77
ERA=1,050 kWh X ($0.0029)	($3.05)
Service Charge	$14.25
Total Cost:	$104.98

 

Summer - Residential (July, 2025)
1,050 kWh X $.1101	$115.61
ERA=1,050 kWh X ($0.0000)	($0.00)
Service Charge	$14.25
Total Cost:	$129.86

How to Calculate Your Electric Costs - Small Commercial

Small Commercial rates: If a small commercial customer consumed 10,500 kWh of electricity a month:

Winter - Small Commercial (Oct, 2024)
10,500 kWh X $.0967	$1,015.35
ERA=10,500 kWh X ($.0029)	($30.45)
Service Charge	$20.50
Total Cost:	$1,035.85

 

Summer - Small Commercial (July, 2025)
10,500 kWh X $.1175	$1,233.75
ERA=10,500 kWh X ($.0000)	($0.00)
Service Charge	$20.50
Total Cost:	$1,254.25

How to Calculate Your Electric Costs - Large Commercial

Large Commercial rates: If a large commercial customer consumed 75,000 kWh of electricity and had a demand of 160 kVA:

Winter - Commercial (Oct, 2024)
160 kVA X $8.01	$1,281.60
75,000 kWh X $.0653	$4,897.50
ERA = 75,000 kWh X ($.0029)	($217.50)
Service Charge	$156.00
Total Cost:	$6,117.60

 

Summer - Commercial (July, 2025)
160 kVA X $10.71	$1,713.60
75,000 kWh X $.0653	$4,897.50
ERA = 75,000 kWh X ($.0000)	($0.00)
Service Charge	$156.00
Total Cost:	$6,767.10

Rate History

Beginning July 1, 2017 the City of Ames Electric Services applied a 4% across the board rate increase. The revenue resulting from this rate increase is needed to fund power plant maintenance, capital improvement projects, and operating costs while maintaining an adequate fund balance for the utility. The last electric rate increase approved by the City Council was 5% on July 1, 2009.