Bill Text: IA SF2244 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to rate-regulated electric utilities and integrated resource plans.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-02-15 - Committee report, recommending passage. S.J. 308. [SF2244 Detail]
Download: Iowa-2023-SF2244-Introduced.html
Senate
File
2244
-
Introduced
SENATE
FILE
2244
BY
KLIMESH
A
BILL
FOR
An
Act
relating
to
rate-regulated
electric
utilities
and
1
integrated
resource
plans.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
476.1,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
1A.
The
utilities
board
shall
seek
to
3
ensure
safe,
adequate,
reliable,
and
affordable
utility
4
services
provided
at
rates
that
are
nondiscriminatory,
just,
5
reasonable,
and
based
on
the
utility’s
cost
of
providing
6
service
to
customers
within
the
state.
7
Sec.
2.
Section
476.1A,
Code
2024,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
5A.
Electric
utility
resources,
including
10
electric
generation,
should
be
planned,
designed,
constructed,
11
and
operated
to
minimize
costs
to
customers
and
to
ensure
safe,
12
adequate,
and
reliable
service.
To
serve
these
purposes,
13
the
board
shall
administer
a
resource
planning
procedure
for
14
investor-owned
electric
utilities
in
the
state,
including
any
15
investor-owned
utility
whose
operations
are
limited
to
electric
16
transmission
services.
17
Sec.
3.
Section
476.3,
subsection
1,
Code
2024,
is
amended
18
to
read
as
follows:
19
1.
A
public
utility
shall
furnish
reasonably
adequate
20
service
at
rates
and
charges
in
accordance
with
tariffs
21
filed
with
the
board.
A
rate
charged
by
a
public
utility
22
to
a
similarly
situated
customer
of
the
same
service
class
23
shall
differ
only
if
the
difference
is
based
on
demonstrable,
24
measurable
differences
in
the
cost
of
providing
the
service.
25
The
rate
charged
to
a
customer
shall
be
based
upon
the
costs
26
incurred
to
serve
the
customer.
When
there
is
filed
with
the
27
board
by
any
person
or
body
politic,
or
filed
by
the
board
upon
28
its
own
motion,
a
written
complaint
requesting
the
board
to
29
determine
the
reasonableness
of
the
rates,
charges,
schedules,
30
service,
regulations,
or
anything
done
or
omitted
to
be
done
31
by
a
public
utility
subject
to
this
chapter
in
contravention
32
of
this
chapter
,
the
written
complaint
shall
be
forwarded
by
33
the
board
to
the
public
utility,
which
shall
be
called
upon
34
to
satisfy
the
complaint
or
to
answer
it
in
writing
within
a
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reasonable
time
to
be
specified
by
the
board.
Copies
of
the
1
written
complaint
forwarded
by
the
board
to
the
public
utility
2
and
copies
of
all
correspondence
from
the
public
utility
in
3
response
to
the
complaint
shall
be
provided
by
the
board
in
4
an
expeditious
manner
to
the
consumer
advocate.
If
the
board
5
determines
the
public
utility’s
response
is
inadequate
and
6
there
appears
to
be
any
reasonable
ground
for
investigating
7
the
complaint,
the
board
shall
promptly
initiate
a
formal
8
proceeding.
If
the
consumer
advocate
determines
the
public
9
utility’s
response
to
the
complaint
is
inadequate,
the
consumer
10
advocate
may
file
a
petition
with
the
board
,
which
shall
11
promptly
initiate
a
formal
proceeding
if
the
board
determines
12
that
there
is
any
reasonable
ground
for
investigating
the
13
complaint.
The
complainant
or
the
public
utility
also
may
14
petition
the
board
to
initiate
a
formal
proceeding
,
which
15
petition
shall
be
granted
if
the
board
determines
that
there
16
is
any
reasonable
ground
for
investigating
the
complaint.
The
17
formal
proceeding
may
be
initiated
at
any
time
by
the
board
on
18
its
own
motion.
If
a
proceeding
is
initiated
upon
petition
19
filed
by
the
consumer
advocate,
complainant,
or
the
public
20
utility,
or
upon
the
board’s
own
motion,
the
board
shall
set
21
the
case
for
hearing
and
give
notice
as
it
deems
appropriate.
22
When
the
board,
after
a
hearing
held
after
reasonable
notice,
23
finds
a
public
utility’s
rates,
charges,
schedules,
service,
24
or
regulations
are
unjust,
unreasonable,
discriminatory,
or
25
otherwise
in
violation
of
any
provision
of
law,
the
board
26
shall
determine
just,
reasonable,
and
nondiscriminatory
rates,
27
charges,
schedules,
service,
or
regulations
to
be
observed
and
28
enforced.
29
Sec.
4.
Section
476.6,
subsection
15,
paragraph
a,
30
subparagraph
(1),
subparagraph
division
(a),
Code
2024,
is
31
amended
to
read
as
follows:
32
(a)
Electric
utilities
required
to
be
rate-regulated
under
33
this
chapter
shall
file
five-year
energy
efficiency
plans
34
and
demand
response
plans
with
the
board
unless
the
utility
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files
an
integrated
resource
plan
under
section
476.53B
.
Gas
1
utilities
required
to
be
rate-regulated
under
this
chapter
2
shall
file
five-year
energy
efficiency
plans
with
the
board.
3
An
energy
efficiency
plan
and
budget
or
a
demand
response
4
plan
and
budget
shall
include
a
range
of
energy
efficiency
5
or
demand
response
programs,
tailored
to
the
needs
of
all
6
customer
classes,
including
residential,
commercial,
and
7
industrial
customers,
for
energy
efficiency
opportunities.
8
The
plans
shall
include
programs
for
qualified
low-income
9
persons
including
a
cooperative
program
with
any
community
10
action
agency
within
the
utility’s
service
area
to
implement
11
countywide
or
communitywide
energy
efficiency
programs
for
12
qualified
low-income
persons.
Rate-regulated
gas
and
electric
13
utilities
shall
utilize
Iowa
agencies
and
Iowa
contractors
to
14
the
maximum
extent
cost-effective
in
their
energy
efficiency
15
plans
or
demand
response
plans
filed
with
the
board.
16
Sec.
5.
NEW
SECTION
.
476.53B
Electric
utility
integrated
17
resource
plan.
18
1.
a.
A
rate-regulated
electric
utility
shall
file
with
19
the
board
an
integrated
resource
plan
no
later
than
one
year
20
after
the
effective
date
of
this
Act.
The
plan
shall
include
21
the
period
of
time
between
approval
of
the
plan
and
ending
ten
22
years
after
the
filing
of
the
plan.
23
b.
The
initial
plan
approval
shall
be
conducted
as
a
24
contested
case
proceeding
pursuant
to
chapter
17A.
25
2.
The
utility
shall
file
an
update
to
the
initial
plan
26
three
years
after
the
initial
filing
of
the
integrated
resource
27
plan.
The
update
shall
include
any
changes
from
the
initial
28
filing.
The
updated
integrated
resource
plan
shall
be
subject
29
to
a
contested
case
proceeding
but
shall
be
limited
to
the
30
changes
included
in
the
updated
filing.
31
3.
Three
years
after
the
filing
of
the
updated
integrated
32
resource
plan,
the
utility
shall
file
a
fully
comprehensive
33
plan
that
shall
be
subject
to
a
contested
case
proceeding.
34
4.
a.
The
plan
shall
include
utility
facilities
and
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resources
for
the
provision
of
electric
service
including
the
1
following:
2
(1)
Electric
generation.
3
(2)
Electric
distribution
facilities.
4
(3)
Electric
transmission
facilities
owned
and
operated
by
5
the
utility.
6
(4)
Any
contractual
or
other
arrangements
including,
7
without
limitation,
demand
response
arrangements,
energy
8
efficiency
measures,
peak
load
management,
distributed
9
generation,
power
purchase
agreements,
and
wholesale
market
10
purchases,
by
which
the
utility
may
meet
or
modify
demand
for
11
service.
12
b.
The
plan
shall
include
a
description
of
existing
13
facilities
and
resources
as
of
the
date
of
filing,
including
14
any
of
the
following:
15
(1)
Generation
facilities,
which
shall
include
all
of
the
16
following
information
for
each
generation
facility:
17
(a)
The
type
and
nameplate
capacity.
18
(b)
The
location.
19
(c)
The
age.
20
(d)
The
purpose
and
operational
characteristics.
21
(e)
The
net
capacity
and
annual
output
for
each
of
the
past
22
two
calendar
years.
23
(f)
The
fuel
type
and
source
and
annual
consumption
of
fuel
24
for
each
of
the
past
two
calendar
years.
25
(g)
The
cost
of
construction.
26
(h)
The
depreciation
and
undepreciated
balance.
27
(i)
The
projected
useful
life
or
scheduled
date
for
removal
28
from
service
and
reason
for
retirement.
29
(j)
A
decommissioning
plan,
if
any.
30
(2)
Transmission
and
distribution
facilities,
which
shall
31
include
all
of
the
following
information
for
each
transmission
32
and
distribution
facility:
33
(a)
The
type
and
voltage.
34
(b)
The
location.
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(c)
The
age.
1
(d)
The
cost
of
construction.
2
(e)
The
depreciation
and
undepreciated
balance.
3
(f)
The
projected
useful
life
or
scheduled
date
of
removal
4
from
service
and
reason
for
retirement.
5
(3)
Any
facility
or
resource
retirements
or
terminations
6
during
the
past
two
years
or
since
submission
of
the
last
plan
7
update.
8
(4)
Any
additional
data
the
board
deems
appropriate
and
may
9
require
by
rule.
10
c.
The
integrated
resource
plan
shall
include
the
projection
11
for
demand
for
service
for
each
of
the
next
ten
years,
by
12
customer
class
and
characteristic
load
shape,
and
the
data
13
and
assumptions
supporting
the
projections.
The
plan
shall
14
include
projections
for
wholesale
sale
of
generation
output
15
to
a
purchaser
outside
the
utility
system
but
within
Iowa,
16
and
outside
the
state.
The
plan
shall
include
a
proposal
to
17
provide
safe,
adequate,
and
reliable
service
to
customers
at
18
the
lowest
cost,
in
light
of
projected
demand
over
the
next
ten
19
years.
The
plan
shall
identify
the
facilities
and
resources
20
that
the
utility
proposes
to
use
for
these
purposes.
The
plan
21
shall
incorporate
the
construction,
purchase,
retirement,
and
22
replacement
of
utility
facilities
and
resources,
as
well
as
23
contracting
for
resources
or
services
that
are
alternatives
24
to
or
substitutes
for
utility
ownership,
including
demand
25
response
arrangements,
energy
efficiency
measures,
peak
load
26
management,
distributed
generation,
power
purchase
agreements,
27
and
wholesale
market
purchases.
28
d.
The
plan
shall
include
proposed
facilities
and
resources
29
including
any
of
the
following:
30
(1)
Proposed
electric
generation
facilities,
which
shall
31
include
all
of
the
following
information
for
each
proposed
32
electric
generation
facility:
33
(a)
The
type
and
nameplate
capacity.
34
(b)
The
location.
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(c)
The
purpose
and
projected
operational
characteristics.
1
(d)
The
projected
net
capacity
and
annual
output.
2
(e)
The
fuel
type
and
source.
3
(f)
The
annual
consumption
of
fuel
and
means
of
delivering
4
to
the
facility.
5
(g)
The
water
source
and
annual
consumption.
6
(h)
The
cost
of
construction.
7
(i)
The
projected
annual
depreciation
and
projected
useful
8
life
or
scheduled
date
of
removal
from
service
and
reason
for
9
retirement.
10
(j)
Plans
for
waste
disposal
and
monitoring
of
emissions
and
11
wastes.
12
(k)
A
decommissioning
plan,
if
any.
13
(2)
Proposed
transmission
and
distribution
facilities,
14
which
shall
include
all
of
the
following
information
for
each
15
proposed
transmission
or
distribution
facility:
16
(a)
The
type
and
voltage.
17
(b)
The
expected
location.
18
(c)
The
expected
associated
facilities.
19
(d)
The
cost
of
construction.
20
(e)
The
annual
depreciation
and
projected
useful
life
or
21
expected
date
of
removal
from
service.
22
(3)
Other
proposed
resources,
including
all
of
the
23
following
information
for
each
proposed
resource:
24
(a)
The
nature
of
the
resource.
25
(b)
The
relationship
of
the
resource
to
safe
and
adequate
26
service.
27
(c)
Contractual
obligations
and
rights
of
parties.
28
(d)
The
projected
annual
cost
to
the
utility.
29
(e)
The
projected
annual
benefits,
duration,
and
other
30
information
to
be
prescribed
by
the
board.
31
e.
(1)
The
plan
shall
include
a
comparative
evaluation
32
of
practicable
alternative
facilities
and
resources,
which
33
shall
consider
cost,
adequacy,
and
reliability.
The
plan
shall
34
include
analysis
demonstrating
that
the
proposed
resource
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options
represent
the
means
to
achieve
the
purposes
of
safe,
1
adequate,
and
reliable
service
at
the
lowest
cost,
as
compared
2
to
all
other
practicable
alternatives.
3
(2)
The
cost
analysis
shall
reflect
an
evaluation
of
all
4
elements
of
the
cost
of
the
options,
including
construction
5
costs,
financing
costs
including
return
on
equity
or
debt,
6
useful
life
of
the
facility
and
depreciation,
expenditures
for
7
interconnection,
projected
transmission
costs,
operation
and
8
maintenance,
fuel
expense,
property
taxes,
rent
and
easements,
9
and
an
adjustment
to
reflect
average
capacity
factors
for
the
10
type
of
generation
facility
and
the
need
for
redundancy
for
11
intermittent
generation.
12
(3)
The
cost
analysis
shall
account
for
all
tax
aspects
of
13
a
proposed
resource,
including
tax
credits
as
applicable.
For
14
purposes
of
the
cost
analysis,
the
projected
tax
credits
shall
15
be
reduced
in
proportion
to
Iowa’s
share
of
federal
income
tax
16
revenues
paid
by
Iowa
residents
in
the
most
recent
tax
year.
17
(4)
The
cost
analysis
shall
take
account
of
the
18
necessary
costs
of
complying
with
applicable
laws,
including
19
environmental
laws
and
regulations,
in
effect
at
the
time
of
20
filing.
The
cost
analysis
shall
not
assign
weight
to
other
21
societal
or
environmental
purposes
other
than
those
identified
22
by
this
section.
23
(5)
There
shall
be
a
rebuttable
presumption
in
favor
of
24
the
selection
of
the
least-cost
option
and
against
any
other
25
analyzed
option.
The
utility
may
rebut
the
presumption
by
26
demonstrating
to
the
board
the
need
for
a
higher-cost
option
to
27
meet
objectives
of
adequacy
and
reliability.
28
(6)
The
board
may
by
rule
require
that
all,
or
certain
29
defined,
facilities
or
resources
covered
by
a
plan
shall
be
30
procured
by
the
utility
through
a
competitive
process.
31
f.
(1)
A
utility
shall
not
include
in
the
revenue
32
requirement
for
a
rate
application
any
investment,
cost,
or
33
expense
for
any
reason
within
the
required
scope
of
a
resource
34
plan
that
is
not
included
in
the
current
resource
plan
approved
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by
the
board.
1
(2)
The
utility
may
apply
to
the
board
for
rate
recovery
2
of
costs
not
covered
by
the
most
recent
resource
plan
if
3
the
utility
can
demonstrate
exigent
changed
circumstances
4
warranting
an
exception
to
the
prior
planning
requirement
5
and
that
the
proposed
expenditure
represents
the
least-cost
6
reasonable
option
necessary
to
meet
the
needs
of
safe,
7
adequate,
and
reliable
service.
8
(3)
A
utility
may
not
apply
for
a
franchise
pursuant
to
9
chapter
478
for
any
transmission
facility
that
is
not
included
10
in
the
current
resource
plan.
11
(4)
No
investment
shall
be
eligible
for
advance
ratemaking
12
under
section
476.53
unless
it
has
been
included
in
the
most
13
recent
resource
plan
approved
by
the
board.
14
g.
The
plan
shall
include
any
energy
efficiency
plans
15
and
demand
response
plans.
An
electric
utility
subject
to
16
this
section
shall
file
an
energy
efficiency
plan
and
demand
17
response
plan
with
the
integrated
resource
plan
and
adhere
to
18
the
timeline
described
in
this
section.
An
energy
efficiency
19
plan
and
demand
response
plan
shall
not
be
subject
to
a
20
separate
contested
case
proceeding
and
may
only
be
addressed
in
21
the
contested
case
proceeding
for
the
integrated
resource
plan.
22
h.
The
board
shall
by
rule
provide
for
a
contested
case
23
proceeding
to
consider
a
plan
and
update
filed
by
a
utility.
24
Upon
the
filing
of
a
plan,
the
board
and
the
office
of
consumer
25
advocate
shall
each
review
all
materials
and
evidence
filed
by
26
the
utility.
The
board
and
office
shall
have
discovery
powers
27
in
the
proceeding.
The
board
may,
subject
to
any
measures
the
28
board
determines
to
be
necessary
to
protect
proprietary
utility
29
information,
require
evidence
and
other
information
provided
30
to
the
board
and
office
to
be
disclosed
to
an
intervenor
31
and
a
stakeholder.
The
office
shall
file
with
the
board
an
32
evaluation
of
the
filed
plan
and
the
board
shall
take
into
33
account
the
analysis
by
the
office
in
the
determination
by
the
34
board.
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i.
The
board
shall
by
order
approve
or
disapprove
a
filed
1
plan
and
may
conditionally
approve
a
plan
subject
to
the
filing
2
of
a
specific
modification,
not
later
than
ten
months
after
the
3
initial
filing
and
not
later
than
five
months
after
an
updated
4
filing.
The
board
shall
not
approve
a
plan
unless
the
utility
5
shows
by
a
preponderance
of
evidence
that
implementation
of
the
6
plan
can
reasonably
be
expected
to
achieve
the
goals
of
safe,
7
adequate,
and
reliable
service,
and
that
the
plan
satisfies
the
8
least-cost
standard.
9
Sec.
6.
REPEAL.
Section
476.53A,
Code
2024,
is
repealed.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
relates
to
an
electric
utility
filing
an
14
integrated
resource
plan.
15
The
bill
directs
the
Iowa
utilities
board
(board)
to
16
seek
safe,
adequate,
reliable,
and
affordable
services
and
17
nondiscriminatory
rates
for
Iowa
customers.
18
The
bill
prohibits
a
public
utility
from
setting
a
different
19
rate
for
a
customer
of
the
same
service
class
unless
the
public
20
utility
demonstrates
the
measurable
difference
in
costs
of
21
providing
the
service.
22
The
bill
requires
a
rate-regulated
electric
utility
to
23
file
an
integrated
resource
plan
(plan)
within
one
year
of
24
the
enactment
of
the
bill.
The
plan
shall
be
subject
to
a
25
contested
case
proceeding.
The
electric
utility
shall
then
26
file
an
update
to
the
initial
plan
three
years
after
the
27
initial
filing
with
any
changes
made
since
the
initial
filing.
28
Only
the
changes
made
from
the
initial
filing
shall
be
subject
29
to
a
contested
case
proceeding
after
the
updated
plan
is
filed.
30
The
electric
utility
shall
file
a
fully
comprehensive
plan
31
three
years
after
the
updated
plan
filing.
The
entire
fully
32
comprehensive
plan
shall
be
subject
to
a
contested
case.
33
The
bill
requires
a
plan
to
include
existing
and
proposed
34
facilities
and
resources,
projected
service
demand,
comparative
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evaluations,
cost
analysis,
and
energy
efficiency
plans
and
1
demand
response
plans.
There
shall
be
a
rebuttable
presumption
2
in
favor
of
the
least-cost
option
in
the
cost
analysis.
The
3
plan
shall
not
include
any
investment,
cost,
or
expense
in
4
the
revenue
requirement
for
a
rate
application.
An
electric
5
utility
may
not
apply
for
a
franchise
for
any
transmission
6
facility
that
is
not
already
included
in
the
current
plan.
No
7
investment
shall
be
eligible
for
advance
ratemaking
unless
it
8
is
included
in
the
most
recent
approved
plan.
9
An
electric
utility
required
to
file
an
energy
efficiency
10
plan
and
demand
response
plan
shall
include
the
plans
in
the
11
integrated
resource
plan
and
shall
not
be
subject
to
a
separate
12
contested
case
proceeding
for
the
energy
efficiency
plan
13
and
demand
response
plan.
An
electric
utility
shall
forego
14
the
requirement
of
Code
section
476.6
requiring
an
energy
15
efficiency
plan
and
demand
response
plan
to
be
filed
every
five
16
years.
Instead,
the
electric
utility
shall
adhere
to
the
same
17
timeline
included
in
the
bill
for
the
filing
deadlines
for
the
18
energy
efficiency
plan
and
demand
response
plan.
19
The
bill
provides
authority
to
the
board
to
create
by
rule
20
the
procedures
for
a
contested
case
proceeding
pursuant
to
the
21
bill.
After
the
electric
utility
files
the
plan,
the
board
and
22
the
office
of
consumer
advocate
(office)
shall
review
the
plan.
23
The
office
shall
submit
an
evaluation
of
the
filed
plan
to
the
24
board
to
use
in
determining
approval
of
the
plan.
A
plan
may
25
be
conditionally
approved
by
the
board
within
10
months
of
the
26
initial
filing
or
within
5
months
of
an
updated
filing.
27
Current
law
provides
intent
of
the
general
assembly
28
to
encourage
the
development
of
renewable
electric
power
29
generation,
to
use
the
renewable
power
to
meet
local
electric
30
needs,
and
to
develop
transmission
capacity
to
export
wind
31
power
generated
in
Iowa.
The
bill
strikes
this
intent.
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