Water-service rates are based on the real costs of treating and delivering water to customers, and are regulated by state public utilities commissions (PUCs). 

To determine rates, we work with PUC staffs to study costs of construction, maintenance, operation, administration and financing. Once the studies are complete, the company and PUC present any differing conclusions before an administrative law judge. Based on the judge’s opinion, the PUC sets the water rates. Iowa American Water’s rates are set by the Iowa Utilities Board (IUB). 

Rates charged for service may vary based on a customer’s meter size. All customers pay the same rate for water usage. Customers are billed based on a regular meter reading, either monthly or quarterly for residential customers as well as for commercial and other public authority customers.

Rates can vary based on the cost of providing service in each of the communities we serve. Before it reaches your home or business, water is treated through an intricate treating and testing process to help ensure it meets or surpasses rigorous drinking water quality standards.

You can learn more about the rate setting process in our white paper: Challenges In The Water Industry: The Rate Approval Process.

Iowa American Water Submits Rate Review Request to Iowa Utilities Board in Des Moines

On August 28, 2020, Iowa American Water filed an application with the Iowa Utilities Board in Des Moines requesting a review of water rates to recover almost $87 million in critical system upgrades from 2016-2022. These investments are associated with providing safe, clean, and reliable water service to about 216,000 people in eight communities in eastern Iowa. Customer rates will not change until the Iowa Utilities Board reviews the request and establishes new rates. The rates approved by the Iowa Utilities Board may be different than the company has proposed. Any rates approved by the Iowa Utilities Board are not expected to go into effect until mid-2021.

Customers can contact our Customer Service Center at 1-866-641-2108 or submit questions via email to More information can also be found on the Iowa Utilities Board website at

Rate Review FAQ
Customer Notice of Rate Increase
Iowa Tariff