Bill Text: IA HSB658 | 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.(See HF 2554.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-02-15 - Committee report approving bill, renumbered as HF 2554. [HSB658 Detail]
Download: Iowa-2023-HSB658-Introduced.html
House
Study
Bill
658
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
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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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
and
provide
economic
benefits
to
the
state.
Ensuring
7
reliable
electric
service
and
providing
economic
benefits
8
may
require
public
utilities
to
consider
diverse
electric
9
power
generating
technologies
and
energy
storage
technologies,
10
including
alternate
energy
production
facilities,
nuclear
11
reactors,
and
energy
storage
facilities.
It
is
also
the
12
intent
of
the
general
assembly
to
encourage
rate-regulated
13
public
utilities
to
consider
altering
existing
electric
power
14
generating
facilities,
where
when
reasonable,
to
manage
carbon
15
emission
intensity
in
order
to
facilitate
the
transition
to
a
16
carbon-constrained
environment.
17
Sec.
3.
Section
476.53,
subsection
3,
paragraph
a,
Code
18
2024,
is
amended
to
read
as
follows:
19
a.
The
board
shall
may
specify
in
advance,
by
order
issued
20
after
a
contested
case
proceeding,
the
ratemaking
principles
21
that
will
apply
when
the
costs
of
the
electric
power
generating
22
facility
,
or
alternate
energy
production
facility
,
or
energy
23
storage
facility
are
included
in
regulated
electric
rates
24
whenever
a
.
A
rate-regulated
public
utility
does
may
seek
25
ratemaking
principles
for
any
of
the
following:
26
(1)
(a)
Files
an
application
pursuant
to
section
476A.3
27
to
construct
The
costs
of
constructing
in
Iowa
a
baseload
an
28
electric
power
generating
facility
with
a
nameplate
generating
29
capacity
equal
to
or
greater
than
three
hundred
forty
megawatts
30
or
a
combined-cycle
electric
power
generating
facility
,
or
an
31
alternate
energy
production
facility
as
defined
in
section
32
476.42
,
or
an
energy
storage
facility,
or
the
construction
33
costs
to
significantly
alter
an
existing
electric
power
34
generating
facility
,
alternate
energy
production
facility,
or
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energy
storage
facility
.
For
purposes
of
this
subparagraph,
1
a
significant
alteration
of
an
existing
generating
facility
,
2
alternate
energy
production
facility,
or
energy
storage
3
facility
must,
in
order
to
qualify
for
establishment
of
4
ratemaking
principles,
fall
into
one
of
the
following
5
categories:
6
(i)
Conversion
of
a
coal
fueled
an
electric
power
generating
7
facility
into
a
gas
fueled
to
an
alternate
fuel
type
for
the
8
electric
power
generating
facility.
9
(ii)
Addition
of
carbon
capture
and
storage
facilities
at
a
10
coal
fueled
to
an
existing
electric
power
generating
facility.
11
(iii)
Addition
of
gas
fueled
capability
to
a
coal
fueled
12
facility,
in
order
to
convert
the
facility
to
one
that
will
13
rely
primarily
on
gas
for
future
generation
facilities
to
14
capture
exhaust
heat
and
thereby
generate
additional
electric
15
power
at
an
existing
electric
power
generating
facility
.
16
(iv)
Addition
of
a
biomass
fueled
capability
to
a
coal
17
fueled
facility.
18
(v)
(iv)
Repowering
of
an
alternate
energy
production
19
facility.
For
purposes
of
this
subparagraph
subdivision,
20
“repowering”
shall
mean
either
the
complete
dismantling
and
21
replacement
of
generation
equipment
at
an
existing
project
22
site,
or
the
installation
of
new
parts
and
equipment
to
an
23
existing
alternate
energy
production
facility
in
order
to
24
increase
energy
production,
reduce
load,
increase
service
25
capacity,
improve
project
reliability,
or
extend
the
useful
26
life
of
the
facility.
27
(v)
Addition
of
energy
storage
at
an
existing
electric
power
28
generating
facility,
alternate
energy
production
facility,
or
29
energy
storage
facility.
30
(b)
With
respect
to
a
significant
alteration
of
an
existing
31
generating
facility,
an
original
facility
shall
not
be
required
32
to
be
either
a
baseload
or
a
combined-cycle
facility.
Only
33
only
the
incremental
investment
undertaken
by
a
utility
34
under
subparagraph
division
(a),
subparagraph
subdivision
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(i),
(ii),
or
(iii)
,
or
(iv)
shall
be
eligible
to
apply
the
1
ratemaking
principles
established
by
the
order
issued
pursuant
2
to
paragraph
“e”
.
Facilities
for
which
advanced
ratemaking
3
principles
are
obtained
pursuant
to
this
section
shall
not
be
4
subject
to
a
subsequent
board
review
pursuant
to
section
476.6,
5
subsection
19
,
to
the
extent
that
the
investment
has
been
6
considered
by
the
board
under
this
section
,
but
may
be
subject
7
to
the
provisions
of
paragraph
“0d”
of
this
subsection
.
To
the
8
extent
an
eligible
utility
has
been
authorized
to
make
capital
9
investments
subject
to
section
476.6,
subsection
19
,
such
10
investments
shall
not
be
eligible
for
ratemaking
principles
11
pursuant
to
this
section
.
12
(2)
Leases
or
owns
When
leased
or
owned
in
Iowa,
in
whole
or
13
in
part,
a
new
baseload
electric
power
generating
facility
with
14
a
nameplate
generating
capacity
equal
to
or
greater
than
three
15
hundred
forty
megawatts
or
a
combined-cycle
electric
power
16
generating
,
a
new
energy
storage
facility,
or
a
new
alternate
17
energy
production
facility
as
defined
in
section
476.42
.
18
Sec.
4.
Section
476.53,
subsection
3,
Code
2024,
is
amended
19
by
adding
the
following
new
paragraph:
20
NEW
PARAGRAPH
.
0d.
The
board
may
require
as
a
condition
21
of
approval
of
an
advanced
ratemaking
petition
for
solar
22
energy
production,
wind
energy
production,
or
energy
23
storage
by
a
rate-regulated
public
utility
the
filing
of
an
24
integrated
resource
plan.
The
board
shall
adopt
rules
for
an
25
integrated
resource
plan
filing.
An
integrated
resource
plan
26
shall
include
proposals
for
the
use
of
resources
including
27
generation,
distribution
facilities,
transmission,
limitation
28
demand
response
arrangements,
peak
load
management,
distributed
29
generation,
power
purchase
agreements,
and
wholesale
market
30
purchases.
31
Sec.
5.
APPLICABILITY.
This
division
of
this
Act
applies
to
32
an
application
for
new
or
changed
rates,
charges,
schedules,
or
33
regulations
filed
by
a
public
utility
on
or
after
the
effective
34
date
of
this
Act.
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DIVISION
II
1
RATEMAKING
REVIEW
2
Sec.
6.
RATEMAKING
——
PERFORMANCE-BASED
REGULATION
REVIEW.
3
1.
The
utilities
board
shall
initiate
and
coordinate
an
4
independent
review
of
performance-based
regulation
frameworks
5
and
various
components,
which
shall
include
multiyear
6
rate
plans,
performance
mechanisms
such
as
scorecards
and
7
performance
incentive
mechanisms,
and
earnings
sharing
8
mechanisms.
The
review
shall
take
into
account
the
policy
9
objectives
of
ensuring
safe,
adequate,
reliable,
and
affordable
10
utility
services
provided
at
rates
that
are
nondiscriminatory,
11
just,
reasonable,
and
based
on
the
cost
of
the
utility
to
12
provide
service
to
customers
within
the
state.
13
2.
The
review
shall
include
recommendations
for
changes
in
14
law
and
administrative
rules
and
identification
of
ratemaking
15
laws
and
procedures
of
other
states
that,
if
adopted
in
Iowa,
16
could
enhance
the
competitiveness
of
utility
rates
in
the
state
17
compared
with
utility
rates
in
other
jurisdictions.
18
3.
The
consumer
advocate
division
of
the
department
19
of
justice
shall,
and
rate-regulated
utilities
and
other
20
interested
persons
may,
participate
in
the
review.
The
board
21
may
utilize
additional
services
to
assist
in
the
coordination
22
of
the
review
and
preparation
of
the
report.
The
board
shall
23
submit
a
report
with
findings
and
recommendations
to
the
24
general
assembly
by
October
1,
2026.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
electric
power
generation,
energy
29
storage,
and
transmission
facility
ratemaking
principles.
30
Division
I
of
the
bill
modifies
intent
language
to
reflect
an
31
intent
to
attract
energy
storage
for
consumers
in
the
state.
32
Division
I
of
the
bill
alters
ratemaking
principle
processes
33
and
modifies
when
a
rate-regulated
public
utility
may
seek
a
34
ratemaking
principle.
In
addition
to
electric
power
generating
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facilities
and
alternate
energy
production
facilities,
the
1
utilities
board
(board)
may
specify
the
ratemaking
principles
2
applying
to
an
energy
storage
facility.
3
Division
I
of
the
bill
provides
that
a
rate-regulated
public
4
utility
may
seek
ratemaking
principles
from
the
board
when
5
there
are
construction-related
costs
of
an
electric
power
6
generating
facility
with
a
nameplate
generating
capacity
equal
7
to
or
greater
than
40
megawatts,
an
alternate
energy
production
8
facility,
or
an
energy
storage
facility,
or
significant
9
alterations
to
an
existing
electric
power
generating
facility,
10
alternate
energy
production
facility,
or
energy
storage
11
facility.
Current
law
generally
provides
that
when
a
12
rate-regulated
public
utility
files
an
application
to
construct
13
a
baseload
electric
power
generating
facility
with
a
nameplate
14
generating
capacity
equal
to
or
greater
than
300
megawatts
15
or
a
combined-cycle
electric
power
generating
facility
or
an
16
alternate
energy
production
facility,
or
to
significantly
alter
17
an
existing
generating
facility
or
a
new
alternate
energy
18
production
facility,
the
board
shall
specify
in
advance
the
19
ratemaking
principles
that
will
apply.
20
Division
I
of
the
bill
modifies
the
requirements
for
a
21
significant
alteration
of
an
existing
generating
facility
22
to
qualify
for
the
establishment
of
ratemaking
principles.
23
Division
I
of
the
bill
provides
that
to
qualify
for
ratemaking
24
principles,
the
significant
alteration
can
convert
an
electric
25
power
generating
facility
to
an
alternate
fuel
type,
add
26
carbon
capture
and
carbon
storage
to
an
electric
power
27
generating
facility,
add
a
facility
to
capture
exhaust
heat
to
28
an
electric
power
generating
facility,
repower
an
alternate
29
energy
production
facility,
or
add
energy
storage
to
an
30
existing
electric
power
generating
facility,
alternate
energy
31
production
facility,
or
energy
storage
facility.
Current
32
law
provides
that
to
qualify
for
ratemaking
principles,
the
33
significant
alteration
can
convert
a
coal-fueled
facility
into
34
a
gas-fueled
facility,
add
carbon
capture
and
carbon
storage
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to
a
coal-fueled
facility,
add
gas-fueled
capability
to
a
1
coal-fueled
facility,
add
a
biomass-fueled
capability
to
a
2
coal-fueled
facility,
or
repower
an
alternate
energy
production
3
facility.
4
Division
I
of
the
bill
provides
that
a
utility
investment
to
5
convert
an
electric
power
generating
facility
to
a
different
6
fuel
type,
add
carbon
capture
and
carbon
storage
to
an
electric
7
power
generating
facility,
or
add
a
fuel
type
to
an
electric
8
power
generating
facility
shall
be
eligible
to
apply
the
9
ratemaking
principles
established
by
an
order
issued
prior
to
10
construction
or
lease
of
a
facility.
11
Division
I
of
the
bill
provides
that
a
rate-regulated
12
public
utility
may
seek
ratemaking
principles
for
leasing
13
or
owning
a
new
electric
power
generating
facility
with
a
14
nameplate
generating
capacity
equal
to
or
greater
than
40
15
megawatts,
a
new
energy
storage
facility,
or
a
new
alternate
16
energy
production
facility.
Current
law
provides
that
17
a
rate-regulated
public
utility
leasing
or
owning
a
new
18
baseload
electric
power
generating
facility
with
a
nameplate
19
generating
capacity
equal
to
or
greater
than
300
megawatts,
20
a
combined-cycle
electric
power
generating
facility,
or
a
21
new
alternate
energy
production
facility
may
seek
ratemaking
22
principles.
23
Division
I
of
the
bill
provides
that
the
board
may
require
an
24
integrated
resource
plan
(plan)
as
a
condition
of
an
advance
25
ratemaking
petition
approval.
The
board
shall
adopt
rules
for
26
the
plan
and
the
plan
shall
include
proposals
for
the
use
of
27
certain
resources.
28
Division
I
of
the
bill
applies
to
an
application
for
new
or
29
changed
rates,
charges,
schedules,
or
regulations
filed
by
a
30
public
utility
on
or
after
the
effective
date
of
the
bill.
31
Division
II
of
the
bill
requires
the
board
to
conduct
a
32
review
of
the
performance-based
regulation
frameworks
and
33
various
components
to
ensure
utility
services
are
safe,
34
adequate,
reliable,
and
affordable
and
provided
at
rates
that
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are
nondiscriminatory,
just,
reasonable,
and
based
on
the
cost
1
of
the
utility
to
provide
service
to
customers
within
the
2
state.
The
board
shall
submit
a
report
containing
the
findings
3
and
recommendations
of
the
review
to
the
general
assembly
by
4
October
1,
2026.
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