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Higher Utility Rates Could Come to Iowa City

By Daren Sukhram

Story Created: Nov 2, 2009 at 10:18 PM CST

Story Updated: Nov 2, 2009 at 10:18 PM CST

IOWA CITY - Energy bills in Iowa City could be a little bigger soon. Monday, the city council approved the first reading of a franchise fee.

It would charge 2% on MidAmerican gas and electric bills starting April first of next year.

Iowa City plans to use the revenue for public safety and public infrastructure improvements.

This past session, the state legislature made it legal for cities to charge franchise fees up to 5% on utility bills.

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