(The Center Square) – Iowa is among the fifteen states with the lowest electricity prices in the nation, according to a report.
The average retail price for electricity in Iowa is 9.13 cents per kilowatt hour, according to the Energy Affordability Report published by the American Legislative Exchange Council, a nonpartisan public policy organization of state legislators.
Iowa has the fourteenth-lowest electricity price in the United States. Idaho was the lowest at 8.17 cents per kilowatt hour. The highest by far was Hawaii at 30.31 cents per kilowatt hour. The second highest was Alaska at 20.02 cents, the report found.
“Iowa’s electricity prices are among the lowest in the nation because of sensible, free market policies that do not create winners and losers via legislation,” said Joe Trotter, Energy, Environment, and Agriculture Task Force Director for ALEC. “The Hawkeye state does not have carbon taxes or mandates requiring power generation from inefficient technology, instead embracing what works, which, in this case, is wind, coal, and natural gas.”
The United States shows a large range for electricity prices, which depend on several factors, including how energy is generated, delivered, and regulated, the report said.
When evaluating electricity prices, the report evaluated the presence or absence of three primary energy policies: Renewable Portfolio Standards, Regional Greenhouse Gas Initiatives, and statutorily mandated rules for utilities on net metering where utility companies pay consumers with rooftop solar panels for excess electricity generation.
Government mandates were found to be associated with higher electricity prices. For example, the report found that the three states with the lowest prices avoided Renewable Portfolio Standard mandates.
Iowa received a more middling rating for its gas prices, landing at 19th lowest in the nation at $3.29 per gallon. On average, Iowans spend approximately $1,939 per year on gas, the report said.
A challenge for gas prices remains an international factor, including the war between Russia and Ukraine, OPEC+ production cuts, and increased demand from China. Gas prices are also at the mercy of domestic factors including regulatory uncertainty from the Biden administration, according to the report.
Iowa was among the 20 states with the highest yearly cost for diesel. Diesel fuel in Iowa costs $4.30 plus a $0.33 tax. An average trucker in Iowa could expect to spend approximately $29,776 on diesel fuel in 2023.
The most expensive state for diesel fuel was Hawaii where a trucker could spend an estimated $40,977 annually on diesel alone. The lowest was Oklahoma, where a trucker could spend around $25,525 on diesel, the report found.
