Bill Text: IA HF2554 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to electric power generation, energy storage, and transmission facility ratemaking principles, and including applicability provisions.(Formerly HSB 658.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2024-03-21 - Placed on calendar under unfinished business. S.J. 611. [HF2554 Detail]
Download: Iowa-2023-HF2554-Introduced.html
House
File
2554
-
Introduced
HOUSE
FILE
2554
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
658)
A
BILL
FOR
An
Act
relating
to
electric
power
generation,
energy
storage,
1
and
transmission
facility
ratemaking
principles,
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2554
DIVISION
I
1
ELECTRIC
POWER
GENERATION,
ENERGY
STORAGE,
AND
TRANSMISSION
2
FACILITY
RATEMAKING
PRINCIPLES
3
Section
1.
NEW
SECTION
.
476.52A
Definitions.
4
As
used
in
this
subchapter
unless
the
context
otherwise
5
requires:
6
1.
“Alternate
energy
production
facility”
means
the
same
as
7
defined
in
section
476.42.
8
2.
“Energy
storage”
means
any
system,
equipment,
facility,
9
or
technology
that
is
capable
of
absorbing
energy,
storing
the
10
energy
for
a
period
of
time,
and
dispatching
the
energy
through
11
one
of
the
following
manners:
12
a.
Using
mechanical,
electrochemical,
thermal,
13
electrolysis,
or
other
processes
to
convert
and
store
electric
14
energy
that
was
generated
at
an
earlier
time
for
use
at
a
later
15
time.
16
b.
Using
mechanical,
electrochemical,
biochemical,
or
17
thermal
processes
to
convert
and
store
energy
generated
18
from
mechanical
processes
that
would
otherwise
be
wasted
for
19
delivery
at
a
later
time.
20
c.
Storing
energy
in
an
electric,
thermal,
or
gaseous
21
state
for
direct
use
for
heating
or
cooling
at
a
later
time
22
in
a
manner
that
avoids
the
need
to
use
electricity
or
other
23
fuel
sources
at
that
later
time,
such
as
a
grid-enabled
water
24
heater.
25
3.
“Nuclear
reactor”
means
an
apparatus
designed
to
produce
26
electrical
or
heat
energy
through
sustained
nuclear
fission
in
27
a
self-supporting
chain
reaction.
28
4.
“Repowering”
means
either
the
complete
dismantling
and
29
replacement
of
generation
equipment
at
an
existing
project
30
site,
or
the
installation
of
new
parts
and
equipment
to
an
31
existing
alternate
energy
production
facility
in
order
to
32
increase
energy
production,
reduce
load,
increase
service
33
capacity,
improve
project
reliability,
or
extend
the
useful
34
life
of
the
facility.
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Sec.
2.
Section
476.53,
subsection
1,
Code
2024,
is
amended
1
to
read
as
follows:
2
1.
It
is
the
intent
of
the
general
assembly
to
attract
3
the
development
of
electric
power
generating
,
energy
storage,
4
and
transmission
facilities
within
the
state
in
sufficient
5
quantity
to
ensure
reliable
electric
service
to
Iowa
consumers
,
6
ensure
an
adequate
base
load,
and
provide
economic
benefits
to
7
the
state.
Ensuring
reliable
electric
service
and
providing
8
economic
benefits
may
require
public
utilities
to
consider
9
diverse
electric
power
generating
technologies
and
energy
10
storage
technologies,
including
alternate
energy
production
11
facilities,
nuclear
reactors,
and
energy
storage
facilities.
12
It
is
also
the
intent
of
the
general
assembly
to
encourage
13
rate-regulated
public
utilities
to
consider
altering
existing
14
electric
power
generating
facilities,
where
when
reasonable,
15
to
manage
carbon
emission
intensity
in
order
to
facilitate
the
16
transition
to
a
carbon-constrained
environment.
It
is
also
the
17
intent
of
the
general
assembly
to
encourage
the
development
18
of
nuclear
electric
power
generation
within
the
state
using
19
nuclear
reactors
and
to
use
nuclear
power
to
meet
local
and
20
regional
electric
needs.
21
Sec.
3.
Section
476.53,
subsection
3,
paragraph
a,
Code
22
2024,
is
amended
to
read
as
follows:
23
a.
The
board
shall
may
specify
in
advance,
by
order
issued
24
after
a
contested
case
proceeding,
the
ratemaking
principles
25
that
will
apply
when
the
costs
of
the
electric
power
generating
26
facility
,
or
alternate
energy
production
facility
,
or
energy
27
storage
facility
are
included
in
regulated
electric
rates
28
whenever
a
.
A
rate-regulated
public
utility
does
may
seek
29
ratemaking
principles
for
any
of
the
following:
30
(1)
(a)
Files
an
application
pursuant
to
section
476A.3
31
to
construct
The
costs
of
constructing
in
Iowa
a
baseload
an
32
electric
power
generating
facility
with
a
nameplate
generating
33
capacity
equal
to
or
greater
than
three
hundred
forty
megawatts
34
or
a
combined-cycle
electric
power
generating
facility
,
or
an
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alternate
energy
production
facility
as
defined
in
section
1
476.42
,
or
an
energy
storage
facility,
or
the
construction
2
costs
to
significantly
alter
an
existing
electric
power
3
generating
facility
,
alternate
energy
production
facility,
or
4
energy
storage
facility
.
For
purposes
of
this
subparagraph,
5
a
significant
alteration
of
an
existing
generating
facility
,
6
alternate
energy
production
facility,
or
energy
storage
7
facility
must,
in
order
to
qualify
for
establishment
of
8
ratemaking
principles,
fall
into
one
of
the
following
9
categories:
10
(i)
Conversion
of
a
coal
fueled
an
electric
power
generating
11
facility
into
a
gas
fueled
to
an
alternate
fuel
type
for
the
12
electric
power
generating
facility.
13
(ii)
Addition
of
carbon
capture
and
storage
facilities
at
a
14
coal
fueled
to
an
existing
electric
power
generating
facility.
15
(iii)
Addition
of
gas
fueled
capability
to
a
coal
fueled
16
facility,
in
order
to
convert
the
facility
to
one
that
will
17
rely
primarily
on
gas
for
future
generation
facilities
to
18
capture
exhaust
heat
and
thereby
generate
additional
electric
19
power
at
an
existing
electric
power
generating
facility
.
20
(iv)
Addition
of
a
biomass
fueled
capability
to
a
coal
21
fueled
facility.
22
(v)
(iv)
Repowering
of
an
alternate
energy
production
23
facility.
For
purposes
of
this
subparagraph
subdivision,
24
“repowering”
shall
mean
either
the
complete
dismantling
and
25
replacement
of
generation
equipment
at
an
existing
project
26
site,
or
the
installation
of
new
parts
and
equipment
to
an
27
existing
alternate
energy
production
facility
in
order
to
28
increase
energy
production,
reduce
load,
increase
service
29
capacity,
improve
project
reliability,
or
extend
the
useful
30
life
of
the
facility.
31
(v)
Addition
of
energy
storage
at
an
existing
electric
power
32
generating
facility,
alternate
energy
production
facility,
or
33
energy
storage
facility.
34
(b)
With
respect
to
a
significant
alteration
of
an
existing
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generating
facility,
an
original
facility
shall
not
be
required
1
to
be
either
a
baseload
or
a
combined-cycle
facility.
Only
2
only
the
incremental
investment
undertaken
by
a
utility
3
under
subparagraph
division
(a),
subparagraph
subdivision
4
(i),
(ii),
or
(iii)
,
or
(iv)
shall
be
eligible
to
apply
the
5
ratemaking
principles
established
by
the
order
issued
pursuant
6
to
paragraph
“e”
.
Facilities
for
which
advanced
advance
7
ratemaking
principles
are
obtained
pursuant
to
this
section
8
shall
not
be
subject
to
a
subsequent
board
review
pursuant
to
9
section
476.6,
subsection
19
,
to
the
extent
that
the
investment
10
has
been
considered
by
the
board
under
this
section
,
but
may
be
11
subject
to
the
provisions
of
paragraph
“0d”
of
this
subsection
.
12
To
the
extent
an
eligible
utility
has
been
authorized
to
make
13
capital
investments
subject
to
section
476.6,
subsection
14
19
,
such
investments
shall
not
be
eligible
for
ratemaking
15
principles
pursuant
to
this
section
.
16
(2)
Leases
or
owns
When
leased
or
owned
in
Iowa,
in
whole
or
17
in
part,
a
new
baseload
electric
power
generating
facility
with
18
a
nameplate
generating
capacity
equal
to
or
greater
than
three
19
hundred
forty
megawatts
or
a
combined-cycle
electric
power
20
generating
,
a
new
energy
storage
facility,
or
a
new
alternate
21
energy
production
facility
as
defined
in
section
476.42
.
22
Sec.
4.
Section
476.53,
subsection
3,
Code
2024,
is
amended
23
by
adding
the
following
new
paragraph:
24
NEW
PARAGRAPH
.
0d.
The
board
may
require
as
a
condition
25
of
approval
of
an
advance
ratemaking
petition
for
solar
energy
26
production,
wind
energy
production,
or
energy
storage
by
a
27
rate-regulated
public
utility
the
filing
of
an
integrated
28
resource
plan.
The
board
shall
adopt
rules
for
an
integrated
29
resource
plan
filing.
An
integrated
resource
plan
shall
30
include
proposals
for
the
use
of
resources
including
31
generation,
distribution
facilities,
transmission,
adequate
32
base
load
generation
and
reliability,
limitation
demand
33
response
arrangements,
peak
load
management,
distributed
34
generation,
power
purchase
agreements,
and
wholesale
market
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purchases.
1
Sec.
5.
NEW
SECTION
.
476.53B
Department
authority
and
2
proceedings.
3
The
board
shall
adopt
rules
pursuant
to
chapter
17A
to
4
provide
for
the
completion
of
proceedings
under
section
476.53
5
within
ten
months
after
the
date
of
the
filing
of
a
petition
6
under
section
476.53,
subsection
3.
The
rules
shall
include
7
reasonable
time
limitations
for
the
submission
or
completion
8
of
comments
and
testimony,
and
exhibits,
briefs,
and
hearings,
9
and
may
provide
for
the
granting
of
additional
time
upon
the
10
request
of
a
party
to
the
proceeding
for
good
cause
shown.
11
Sec.
6.
APPLICABILITY.
This
division
of
this
Act
applies
to
12
an
application
for
new
or
changed
rates,
charges,
schedules,
or
13
regulations
filed
by
a
public
utility
on
or
after
the
effective
14
date
of
this
Act.
15
DIVISION
II
16
RATEMAKING
REVIEW
17
Sec.
7.
RATEMAKING
——
PERFORMANCE-BASED
REGULATION
REVIEW.
18
1.
The
utilities
board
shall
initiate
and
coordinate
an
19
independent
review
of
performance-based
regulation
frameworks
20
and
various
components,
which
shall
include
multiyear
21
rate
plans,
performance
mechanisms
such
as
scorecards
and
22
performance
incentive
mechanisms,
and
earnings
sharing
23
mechanisms.
The
review
shall
take
into
account
the
policy
24
objectives
of
ensuring
safe,
adequate,
reliable,
and
affordable
25
utility
services
provided
at
rates
that
are
nondiscriminatory,
26
just,
reasonable,
and
based
on
the
cost
of
the
utility
to
27
provide
service
to
customers
within
the
state.
28
2.
The
review
shall
include
recommendations
for
changes
in
29
law
and
administrative
rules
and
identification
of
ratemaking
30
laws
and
procedures
of
other
states
that,
if
adopted
in
Iowa,
31
could
enhance
the
competitiveness
of
utility
rates
in
the
state
32
compared
with
utility
rates
in
other
jurisdictions.
33
3.
The
consumer
advocate
division
of
the
department
34
of
justice
shall,
and
rate-regulated
utilities
and
other
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interested
persons
may,
participate
in
the
review.
The
board
1
may
utilize
additional
services
to
assist
in
the
coordination
2
of
the
review
and
preparation
of
the
report.
The
board
shall
3
submit
a
report
with
findings
and
recommendations
to
the
4
general
assembly
by
October
1,
2026.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
relates
to
electric
power
generation,
energy
9
storage,
and
transmission
facility
ratemaking
principles.
10
Division
I
of
the
bill
modifies
intent
language
to
reflect
11
an
intent
to
attract
energy
storage
and
develop
nuclear
power
12
generation
for
consumers
in
the
state.
13
Division
I
of
the
bill
alters
ratemaking
principle
processes
14
and
modifies
when
a
rate-regulated
public
utility
may
seek
a
15
ratemaking
principle.
In
addition
to
electric
power
generating
16
facilities
and
alternate
energy
production
facilities,
the
17
utilities
board
(board)
may
specify
the
ratemaking
principles
18
applying
to
an
energy
storage
facility.
19
Division
I
of
the
bill
provides
that
a
rate-regulated
public
20
utility
may
seek
ratemaking
principles
from
the
board
when
21
there
are
construction-related
costs
of
an
electric
power
22
generating
facility
with
a
nameplate
generating
capacity
equal
23
to
or
greater
than
40
megawatts,
an
alternate
energy
production
24
facility,
or
an
energy
storage
facility,
or
significant
25
alterations
to
an
existing
electric
power
generating
facility,
26
alternate
energy
production
facility,
or
energy
storage
27
facility.
Current
law
generally
provides
that
when
a
28
rate-regulated
public
utility
files
an
application
to
construct
29
a
baseload
electric
power
generating
facility
with
a
nameplate
30
generating
capacity
equal
to
or
greater
than
300
megawatts
31
or
a
combined-cycle
electric
power
generating
facility
or
an
32
alternate
energy
production
facility,
or
to
significantly
alter
33
an
existing
generating
facility
or
a
new
alternate
energy
34
production
facility,
the
board
shall
specify
in
advance
the
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ratemaking
principles
that
will
apply.
1
Division
I
of
the
bill
modifies
the
requirements
for
a
2
significant
alteration
of
an
existing
generating
facility
3
to
qualify
for
the
establishment
of
ratemaking
principles.
4
Division
I
of
the
bill
provides
that
to
qualify
for
ratemaking
5
principles,
the
significant
alteration
can
convert
an
electric
6
power
generating
facility
to
an
alternate
fuel
type,
add
7
carbon
capture
and
carbon
storage
to
an
electric
power
8
generating
facility,
add
a
facility
to
capture
exhaust
heat
to
9
an
electric
power
generating
facility,
repower
an
alternate
10
energy
production
facility,
or
add
energy
storage
to
an
11
existing
electric
power
generating
facility,
alternate
energy
12
production
facility,
or
energy
storage
facility.
Current
13
law
provides
that
to
qualify
for
ratemaking
principles,
the
14
significant
alteration
can
convert
a
coal-fueled
facility
into
15
a
gas-fueled
facility,
add
carbon
capture
and
carbon
storage
16
to
a
coal-fueled
facility,
add
gas-fueled
capability
to
a
17
coal-fueled
facility,
add
a
biomass-fueled
capability
to
a
18
coal-fueled
facility,
or
repower
an
alternate
energy
production
19
facility.
20
Division
I
of
the
bill
provides
that
a
utility
investment
to
21
convert
an
electric
power
generating
facility
to
a
different
22
fuel
type,
add
carbon
capture
and
carbon
storage
to
an
electric
23
power
generating
facility,
or
add
a
fuel
type
to
an
electric
24
power
generating
facility
shall
be
eligible
to
apply
the
25
ratemaking
principles
established
by
an
order
issued
prior
to
26
construction
or
lease
of
a
facility.
27
Division
I
of
the
bill
provides
that
a
rate-regulated
28
public
utility
may
seek
ratemaking
principles
for
leasing
29
or
owning
a
new
electric
power
generating
facility
with
a
30
nameplate
generating
capacity
equal
to
or
greater
than
40
31
megawatts,
a
new
energy
storage
facility,
or
a
new
alternate
32
energy
production
facility.
Current
law
provides
that
33
a
rate-regulated
public
utility
leasing
or
owning
a
new
34
baseload
electric
power
generating
facility
with
a
nameplate
35
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LSB
6079HV
(2)
90
lh/js
7/
8
H.F.
2554
generating
capacity
equal
to
or
greater
than
300
megawatts,
1
a
combined-cycle
electric
power
generating
facility,
or
a
2
new
alternate
energy
production
facility
may
seek
ratemaking
3
principles.
4
Division
I
of
the
bill
provides
that
the
board
may
require
an
5
integrated
resource
plan
(plan)
as
a
condition
of
an
advance
6
ratemaking
petition
approval.
The
board
shall
adopt
rules
for
7
the
plan
and
the
plan
shall
include
proposals
for
the
use
of
8
certain
resources.
9
Division
I
of
the
bill
requires
the
board
to
adopt
rules
for
10
proceedings
to
conclude
10
months
after
a
petition
is
filed.
11
Division
I
of
the
bill
applies
to
an
application
for
new
or
12
changed
rates,
charges,
schedules,
or
regulations
filed
by
a
13
public
utility
on
or
after
the
effective
date
of
the
bill.
14
Division
II
of
the
bill
requires
the
board
to
conduct
a
15
review
of
the
performance-based
regulation
frameworks
and
16
various
components
to
ensure
utility
services
are
safe,
17
adequate,
reliable,
and
affordable
and
provided
at
rates
that
18
are
nondiscriminatory,
just,
reasonable,
and
based
on
the
cost
19
of
the
utility
to
provide
service
to
customers
within
the
20
state.
The
board
shall
submit
a
report
containing
the
findings
21
and
recommendations
of
the
review
to
the
general
assembly
by
22
October
1,
2026.
23
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6079HV
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lh/js
8/
8
