Utility Rates

Our electric and water rates are based on classification for each location. The classifications include Residential, Small Commercial, Commercial, and Industrial. The rate breakdowns for each classification can be found below. Our sewer and storm water draining rates are the same, regardless of classification.

Electric and Water Rates

Residential Rates

Electric

Per the city code, "The residential electric rate shall apply to all single-phase domestic uses in separately metered dwelling units that are intended for occupancy by a single family as distinguished from group domiciles such as rooming houses, fraternity or sorority houses, supervised group homes, and residential care facilities."

Rate per Billing Period: For each billing period a customer shall be billed a service charge of $14.25, and in addition:

For bills mailed July 1 through October 31 (summer period):
$0.1101 per kWh

For bills mailed November 1 through June 30 (winter period):
$0.0893 per kWh

Additionally, customers receive a charge or credit for Energy Cost Adjustment (ECA).

Water

Per the city code: "The residential water rate shall apply to all customer accounts serving properties intended for occupancy by a single family provided that such accounts consist of no more than two dwelling units."

Rate per Billing Period: For each billing period a customer shall be billed a service charge based on meter size, and in addition:

For bills mailed July 1 through October 31 (summer period):
First 1000 CF: $0.0278 per cubic foot
Next 1500 CF: $0.0490 per cubic foot
Over 2500 CF: $0.0737 per cubic foot

For bills mailed November 1 through June 30 (winter period):
All usage: $0.0278 per cubic foot

Service Charge Based on Meter Size:

 Meter Size 
 Service Charge 
 5/8 or 5/8 x 3/4 inch 
 $14.20
3/4 inch
 $28.40
 1 inch  $56.81
 1 & 1/2 inch  $113.62
 2 inch  $227.23
2 inch battery of 2
 $440.13
2 inch battery of 3
 $653.12
 3 inch  $454.36
4 inch
 $766.70
 6 inch  $1277.82
 8 inch $1277.82
10 inch
 $3833.46


Irrigation and Yard Water

The residential irrigation and yard water rate shall apply to all separately metered water uses that meet one of the following criteria: (i) Serves primarily outdoor water uses, such as irrigation services and outdoor hose; (ii) Serves cooling towers, spray ponds, evaporative condensers, chillers or other such uses where  water is used as a medium for cooling; (iii) Serves as a temporary water service, whether for irrigation or other outdoor uses.

Rate per Billing Period: For each billing period a customer shall be billed a service charge based on meter size, and in addition:

For bills mailed July 1 through October 31 (summer period):
First 2000 CF: $0.0401 per cubic foot
Next 3000 CF: $0.0737 per cubic foot
Over 5000 CF: $0.1227 per cubic foot

For bills mailed November 1 through June 30 (winter period):
All usage: $0.0278 per cubic foot

 

Service Charge Based on Meter Size:

 Meter Size 
  Irrigation  
  Yard Water 
 5/8 or 5/8 x 3/4 inch 
 $14.20  $5.38
3/4 inch
 $28.40  $8.35
 1 inch  $56.81  $11.63
 1 & 1/2 inch  $113.62  $16.04
 2 inch  $227.23  $21.33
2 inch battery of 2
 $440.13  
2 inch battery of 3
 $653.12  
 3 inch  $454.36  $27.74
4 inch
 $766.70  $34.49
 6 inch  $1277.82  $41.31
 8 inch $1277.82
 $48.13
10 inch
 $3833.46  $54.55

Commercial Rates

Electric

Small Commercial Rate

This rate is available to all customers except those that qualify for another rate schedule, for all single-phase or three-phase, single-metered usage, where the meter demand does not exceed kVA.

Summer Rate: Applies to bills mailed July 1 through October 31.
Winter Rate:
Applies to bills mailed November 1 through June 30.

   Summer 
 Winter 
 
 Service Charge     
$20.50
 $20.50    per month 
 Energy Charge     
$0.1175
 $0.0967    per kWh

 

Additionally, customers receive a charge or credit for Energy Cost Adjustment (ECA).

Commercial Rate

This rate is available to commercial customers whose consumption in any billing period exceeds 10,000 kWh. This rate shall be mandatory for any non-residential customer whose metered demand at any time exceeds 55 kVA. Any customer for whom the commercial rate became mandatory, who subsequently has metered demand of less than 55 kVA for 12 consecutive months, will again become an optional commercial customer with a choice between small commercial and commercial rates. Any customer on the commercial rate, who has a metered demand of less than 55 kVA, and a consumption of less than 10,000 kWh for 12 consecutive months, shall be charged to the small commercial rate. The minimum monthly bill will be the current demand charge plus the service charge.

Summer Rate: Applies to bills mailed July 1 through October 31.
Winter Rate:
Applies to bills mailed November 1 through June 30.

   Summer 
 Winter 
 
 Service Charge     
 $156.00 
  $156.00  
   per month 
 Demand Charge $10.71
$7.80
per kVA
 Energy Charge     
$0.0642  $0.0644    per kWh

 

The Billing Demand for Commercial and Industrial Customers shall be the greater of:

  • the current month's demand;
  • 75% of the high demand during the previous 4 summer months;
  • 60% of the high demand during the previous 11 months;
  • provided that the demand used for billing shall be no less than 15 kVA for commercial rate customers and 2500 kVA for industrial rate customers.

Additionally, customers receive a charge or credit for Energy Cost Adjustment (ECA).

Water

Per the city code, "The non residential (commercial) water rate shall apply to all customers who do not meet the criteria for residential or non-peaking industrial rate. The non-peaking industrial rate shall apply to customers whose average winter usage is greater than 100,000 CF and has a summer peaking factor equal to or less than 120%."

Rate per Billing Period: For each billing period a customer shall be billed a service charge based on meter size, and in addition:

For bills mailed July 1 through October 31 (summer period):
$0.0364 per cubic foot

For bills mailed November 1 through June 30 (winter period):
$0.0278 per cubic foot

Service Charge Based on Meter Size:

 Meter Size 
 Service Charge 
 5/8 or 5/8 x 3/4 inch 
 $14.20
3/4 inch
 $28.40
 1 inch  $56.81
 1 & 1/2 inch  $113.62
 2 inch  $227.23
2 inch battery of 2
 $440.13
2 inch battery of 3
 $653.12
 3 inch  $454.36
4 inch
 $766.70
 6 inch  $1277.82
 8 inch $1277.82
10 inch
 $3833.46

Multiple Unit Surcharge

5/8" meter, 2 or more units:     
   $4.09/unit/mo
3/4" meter, 4 or more units:    
   $4.09/unit/mo
1" meter, 8 or more units:        
   $4.09/unit/mo
1-1/2" meter, 16 or more units:    
   $4.09/unit/mo
2" meter, 30 or more units:    $122.33/month
          Plus $6.35/unit/mo over 30 units  
3" meter & larger, all units:    $5.62/unit/mo

 

Irrigation and Yard Water

The irrigation and yard water rate shall apply to all separately metered water uses that meet one of the following criteria: (i) Serves primarily outdoor water uses, such as irrigation services and outdoor hose; (ii) Serves cooling towers, spray ponds, evaporative condensers, chillers or other such uses where  water is used as a medium for cooling; (iii) Serves as a temporary water service, whether for irrigation or other outdoor uses.

Rate per Billing Period: For each billing period a customer shall be billed a service charge based on meter size, and in addition:

For bills mailed July 1 through October 31 (summer period):
First 2000 CF: $0.0401 per cubic foot
Next 3000 CF: $0.0737 per cubic foot
Over 5000 CF: $0.1227 per cubic foot

For bills mailed November 1 through June 30 (winter period):
All usage: $0.0278 per cubic foot

Service Charge Based on Meter Size:

 Meter Size 
  Irrigation  
  Yard Water 
 5/8 or 5/8 x 3/4 inch 
 $14.20  $5.38
3/4 inch
 $28.40  $8.35
 1 inch  $56.81  $11.63
 1 & 1/2 inch  $113.62  $16.04
 2 inch  $227.23  $21.33
2 inch battery of 2
 $440.13  
2 inch battery of 3
 $653.12  
 3 inch  $454.36  $27.74
4 inch
 $766.70  $34.49
 6 inch  $1277.82  $41.31
 8 inch $1277.82
 $48.13
10 inch
 $3833.46  $54.55

Industrial Rate

Electric

This rate shall be available to manufacturing/processing type industrial customers. The minimum monthly blil shall be the current demand charges plus the energy charge and energy cost adjustment on 600,000 kWh of usage.

Summer Rate: Applies to bills mailed July 1 through October 31.
Winter Rate:
Applies to bills mailed November 1 through June 30.

      Summer   
     Winter    
 
 Service Charge     
 $1,100.00
  $1,100.00 
   per month 
 Demand Charge $10.40 $7.80
per kVA
 Energy Charge     
$0.0642  $0.0642    per kWh

The Billing Demand for Commercial and Industrial Customers shall be the greater of:

  • the current month's demand;
  • 75% of the high demand during the previous 4 summer months;
  • 60% of the high demand during the previous 11 months;
  • provided that the demand used for billing shall be no less than 15 kVA for commercial rate customers and 2500 kVA for industrial rate customers.

Additionally, customers receive a charge or credit for Energy Cost Adjustment (ECA)

Water

The non residential (commercial) water rate shall apply to all customers who do not meet the criteria for residential or non-peaking industrial rate. The non-peaking industrial rate shall apply to customers whose average winter usage is greater than 100,000 CF and has a summer peaking factor equal to or less than 120%.

Rate per Billing Period: For each billing period a customer shall be billed a service charge based on meter size, and in addition:

For bills mailed July 1 through October 31 (summer period):
$0.0278 per cubic foot

For bills mailed November 1 through June 30 (winter period):
$0.0278 per cubic foot

Service Charge Based on Meter Size:

 Meter Size 
 Service Charge 
 5/8 or 5/8 x 3/4 inch 
 $14.20
3/4 inch
 $28.40
 1 inch  $56.81
 1 & 1/2 inch  $113.62
 2 inch  $227.23
2 inch battery of 2
 $440.13
2 inch battery of 3
 $653.12
 3 inch  $454.36
4 inch
 $766.70
 6 inch  $1277.82
 8 inch $1277.82
10 inch
 $3833.46

Multiple Unit Surcharge

5/8" meter, 2 or more units:     
   $4.09/unit/mo
3/4" meter, 4 or more units:    
   $4.09/unit/mo
1" meter, 8 or more units:        
   $4.09/unit/mo
1-1/2" meter, 16 or more units:    
   $4.09/unit/mo
2" meter, 30 or more units:    $122.33/month
          Plus $6.35/unit/mo over 30 units  
3" meter & larger, all units:    $5.62/unit/mo

Irrigation and Yard Water

The irrigation and yard water rate shall apply to all separately metered water uses that meet one of the following criteria: (i) Serves primarily outdoor water uses, such as irrigation services and outdoor hose; (ii) Serves cooling towers, spray ponds, evaporative condensers, chillers or other such uses where  water is used as a medium for cooling; (iii) Serves as a temporary water service, whether for irrigation or other outdoor uses.

Rate per Billing Period: For each billing period a customer shall be billed a service charge based on meter size, and in addition:

For bills mailed July 1 through October 31 (summer period):
First 2000 CF: $0.0401 per cubic foot
Next 3000 CF: $0.0737 per cubic foot
Over 5000 CF: $0.1227 per cubic foot

For bills mailed November 1 through June 30 (winter period):
All usage: $0.0278 per cubic foot

Service Charge Based on Meter Size:

 Meter Size 
  Irrigation  
  Yard Water 
 5/8 or 5/8 x 3/4 inch 
 $14.20  $5.38
3/4 inch
 $28.40  $8.35
 1 inch  $56.81  $11.63
 1 & 1/2 inch  $113.62  $16.04
 2 inch  $227.23  $21.33
2 inch battery of 2
 $440.13  
2 inch battery of 3
 $653.12  
 3 inch  $454.36  $27.74
4 inch
 $766.70  $34.49
 6 inch  $1277.82  $41.31
 8 inch $1277.82
 $48.13
10 inch
 $3833.46  $54.55

 

Sewer and Storm Water Rates

Sewer Rate

The residential sewer rate shall apply to all customer accounts that are billed water services. Each user shall pay for services provided based on their use of the treatment works as determined by water meter readings or other appropriate methods acceptable to the City.

Rate per Billing Period: For each billing period a customer shall be billed a service charge of $13.01.

In addition, each customer shall be billed $3.33 per 100 cubic feet of usage.

Storm Water Drainage

For each utility account which is billed for one or more City utility services, a monthly rate shall be charged, paid and collected as a rate for a storm water draining system according to the following:

  Tier  
  Impervious Area (sf)  
     Rate    
1
150.00 to 10,000.00
 $5.20
 2  10,000.01 to 30,000.00 
 $10.40
 3  30,000.01 to 90,000.00 
 $15.60
 4  90,000.01 and above  $46.80

 

Impervious area means areas that have been paved and/or covered with buildings and materials, which include, but are not limited to, concrete, asphalt, rooftop, gravel and blacktop.

The storm water drainage fee shall not apply to utility accounts of a customer that has its own Storm Water Permit for its Municipal Separate Storm Sewer System.

 

Explanations and Additional Information

Common Terms

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.

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.

Water and Sewer Usage (CF)

Water usage is metered in cubic feet, or CF. A cubic foot of water is approximately 7.48 gallons. Sewer usage is based on metered water usage.

Energy Cost Adjustment (ECA)

The net monthly billing based on rates will be increased or decreased by an amount corresponding to the increase or decrease in the average cost to Ames Electric Services for power plant fuel in the preceding month. The incremental charge will be computed by multiplying the number of kilowatt hours used by the customer by the difference between the base fuel cost and the average fuel cost for the preceding month. The base fuel cost is $0.0495 per kilowatt hour. The average fuel cost shall be determined by multiplying the unit fuel cost in the previous month by the quantity of fuel used in the 12-month period prior to the previous month divided by the actual kilowatt hour sales during the same period.

From January 2021 to December 2024, the average ECA was approximately a credit of $0.0041 per kWh.

Renewable Energy Buy Back 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:

  1. Residential service. A residential rate customer's account shall be credit:
    • 40% of $0.1213 per kWh, plus $0.025 = $0.0735 per kWh of delivered energy for bills mailed on or between July 1 and October 31 (summer period)
    • 40% of $0.1005 per kWh, plus $0.025 = $0.0652 per kWh of delivered energy for bills mailed on or between November 1 and June 30 (winter period)
  2. Small Commercial service. A small commercial service customer's account shall be credit:
    • 40% of $0.1194 per kWh, plus $0.020 = $0.0678 per kWh of delivered energy for bills mailed on or between July 1 and October 31 (summer period)
    • 40% of $0.0986 per kWh, plus $0.020 = $0.0594 per kWh of delivered energy for bills mailed on or between November 1 and June 30 (winter period)
  3. Commercial service. A commercial service customer's account shall be credited at 50% of $0.0644 per kWh, plus $0.015 = $0.0472 per kWh of delivered energy
  4. Industrial service. An industrial service customer's account shall be credited at 63% of $0.0644 per kWh, plus $0.010 = $0.0506 per kWh of delivered energy

Optional Time of Use Rates (TOU)

A customer may request to have electric service metered and billed on a time of use basis. Participation may be limited by availability of advanced metering equipment. Customers who opt into the Time of Use Rate shall not switch rates more than once in a period of 12 months.

On-Peak/Off-Peak/Super Off-Peak Definition:

  • On-peak hours shall be from 2 p.m. to 6 p.m., Monday through Friday.
  • Off-peak hours shall be from 7 a.m. to 2 p.m. and 6 p.m. to 8 p.m., Monday through Friday.
  • Super Off-Peak hours are all other times (including the holidays of New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day)

Residential Rate

   Summer  
 Winter  
On Peak Energy 
 $ 0.2655 per kWh    
 $ 0.1368 per kWh  
Off-Peak Energy  $ 0.0877 per kWh  $ 0.1268 per kWh
Super Off-Peak Energy 
 $ 0.0740 per kWh  $ 0.0694 per kWh

 

Small Commercial Rate

   Summer  
 Winter  
On Peak Energy 
 $ 0.2712 per kWh    
 $ 0.1425 per kWh  
Off-Peak Energy  $ 0.0934 per kWh  $ 0.1325 per kWh
Super Off-Peak Energy 
 $ 0.0797 per kWh  $ 0.0751 per kWh

 

Commercial Rate

Billing Demand for Time of Use Commercial Customers shall be $4.86 per kVA.

   Summer  
 Winter  
On Peak Energy 
 $ 0.2453 per kWh    
 $ 0.1166 per kWh  
Off-Peak Energy  $ 0.0675 per kWh  $ 0.1066 per kWh
Super Off-Peak Energy 
 $ 0.0538 per kWh  $ 0.0492 per kWh