Growing Iowa’s Economy corrects misleading claims about large energy users, customer protections and Iowa’s regulatory process
DES MOINES, Iowa (Sept. 10, 2026) – A recent news release from Iowa Business for Clean Energy makes a series of alarming claims about data centers, energy investment and customer rates. The problem is that several of those claims ignore key customer protections and regulatory safeguards already in place.
Growing Iowa’s Economy believes Iowans deserve a serious discussion about how the state can support economic growth while protecting existing energy customers. That conversation should be based on the full set of facts, not selective information, inflammatory rhetoric or unsupported assumptions.
“The public deserves a factual explanation about the regulatory requirements that protect them in the name of economic growth,” said Jesse Harris, a spokesperson for Growing Iowa’s Economy. “It is fair to ask questions about major energy investments. It is not fair to tell Iowa families they are being handed a multibillion-dollar energy bill while ignoring the agreements, regulatory oversight and customer protections specifically designed to prevent that from happening.”
Here are the facts.
MYTH: Iowa families and small businesses will be forced to pay for data center growth.
The Iowa Business for Clean Energy release claims that existing customers could be left paying billions of dollars associated with serving new data centers and other large energy users.
FACT: Large energy users are required to bear the costs associated with serving their growth.
Our member’s Individual Customer Rate agreements are structured so large energy users pay the full cost of serving their load, including costs associated with new infrastructure, rather than shifting those costs to existing customers. These agreements provide protections beyond those available under standard customer tariffs. Presenting existing Iowa customers as defenseless against an inevitable cost shift ignores the very purpose of the rate structure that is regulated and approved by the Iowa Utilities Commission.
In fact, Alliant Energy recently signed onto the president’s Rate Payer Protection Pledge, which ensures data center companies pay 100% of the costs associated with serving their load.
MYTH: Data centers are receiving unregulated “secret rates.”
The opposing release repeatedly characterizes Individual Customer Rate agreements as “secret deals” used to avoid accountability.
FACT: Data centers are receiving rates that hold them accountable to pay their fair share. The rate framework is approved by the Iowa Utilities Commission.
Individual Customer Rate agreements are authorized under a regulator-approved tariff and ensure data centers pay their fair share. Each individual agreement is then subject to review and approval by the Iowa Utilities Commission. Utilities must then provide reports regarding revenue and cost alignment.
MYTH: Planned generation investments are being developed for individual data centers.
The Iowa Business for Clean Energy release portrays proposed generation resources as a direct, one-for-one buildout for data center customers.
FACT: Generation resources are required to meet the needs of the overall electric system, not a single customer.
Utilities are required to plan generation around total system demand, reliability requirements and the need to maintain adequate capacity for all customers. Growth is not limited to data centers. It also includes manufacturing expansions, existing businesses and other forms of economic development.
Natural gas facilities add a critical unmatched reliability component for the grid and complement renewable resources when demand is high or weather conditions are extreme. Iowa’s energy future will require a diverse portfolio of resources capable of serving homes, farms, schools, manufacturers, main street businesses and major employers. Reducing that statewide reliability challenge to a slogan about building power plants for a single industry misrepresents how an interconnected electric system works.
MYTH: Utilities can build what they want without meaningful review.
The opposing release claims that proposed facilities can move forward without demonstrating need, evaluating alternatives or facing meaningful accountability.
FACT: Proposed generation resources remain subject to extensive regulatory review and oversight.
All new generation resources are subject to siting review and approval from the Commission prior to the start of construction. The costs of new generation facilities are not automatically placed into customer rates, as those costs are subject to review in a future rate proceeding before the Iowa Utilities Commission. Utilities must prove that investments on behalf of customers are needed and in the public interest, otherwise, they may not recover the costs through rates.
The opposing release itself acknowledges that the Commission will evaluate the appropriateness of the investments in a future rate case. It cannot credibly argue both there is no regulatory oversight and that a formal Commission review will occur, nor is it accurate to imply that billions of dollars can simply be added to customer rates without Commission scrutiny.
MYTH: A generalized cost chart proves Iowa is choosing the most expensive possible energy optionwith natural gas.
The opposing release cites a national levelized-cost analysis to claim that natural gas-fired combustion turbines are equivalent in expense to new nuclear generation and therefore represent the “most expensive way to generate electricity.”
FACT: A single generalized cost comparison does not replace system-specific reliability and resource planning.
Different resources serve different purposes. Renewable resources, storage and dispatchable generation are not necessarily interchangeable on a one-for-one basis. A resource used to supply flexible capacity during high-demand or extreme-weather conditions should not be evaluated solely as though it were intended to operate continuously.
A responsible cost analysis must consider the service a resource provides, when it is available, how it supports the broader portfolio and what the system needs to remain reliable. Pulling one figure from a national chart does not, by itself, answer those questions for Iowa.
Iowa can protect customers and pursue growth
Iowa does not need to choose between customer protection and economic development. We can insist that major energy users pay the costs associated with serving them, maintain strong regulatory oversight and support investments needed to keep the electric system reliable. Responsible growth can expand local tax bases, support construction and permanent employment, strengthen communities and distribute system costs across a larger customer base. Those benefits will differ by project and community, and they should be evaluated honestly rather than overstated. Internal coalition-aligned guidance similarly emphasizes that growth and customer protection must work together.
“Questions about accountability and cost are welcome. Misleading and unsupported claims are not,” said Harris. “Iowa should continue demanding accountability from utilities, developers, regulators and large energy users. But we should also reject claims that erase existing customer protections, dismiss regulatory oversight and treat economic growth as something Iowa should fear.”