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House
File
2261
-
Introduced
HOUSE
FILE
2261
BY
BAGNIEWSKI
A
BILL
FOR
An
Act
relating
to
customer
classes
for
large
energy
use
1
facilities,
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5759YH
(5)
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H.F.
2261
Section
1.
Section
476.6,
Code
2026,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
22.
Large
energy
use
facilities.
3
a.
For
purposes
of
this
subsection:
4
(1)
“Costs
of
serving”
includes,
as
applicable,
the
costs
5
incurred
by
an
electric
utility
or
water
utility
in
providing
6
electric
transmission,
distribution,
energy,
water
service,
7
capacity,
or
ancillary
electricity
or
water
services,
and
any
8
related
costs
or
associated
risks
with
serving
a
customer
class
9
or
customer.
10
(2)
“Large
energy
use
facility”
means
a
facility
that
uses
11
or
is
able
to
use
twenty
megawatts
or
more
and
is
primarily
12
engaged
in
providing
a
service
as
described
under
code
number
13
518210
of
the
North
American
industry
classification
system.
14
(3)
“Water
utility”
means
a
public
utility
that
furnishes
15
water
by
piped
distribution
system
to
the
public
for
16
compensation.
17
b.
(1)
The
commission
shall
create
a
customer
class
18
for
each
customer
that
is
a
large
energy
use
facility.
The
19
customer
class
must
be
separate
and
distinct
from
customer
20
classes
for
other
customers
and
have
its
own
rates,
charges,
21
and
schedules.
Any
rate,
charge,
or
schedule
approved
by
22
the
commission
for
the
class
must
meet
all
of
the
following
23
requirements:
24
(a)
Directly
assign
the
costs
of
serving
to
the
customer.
25
(b)
Mitigate
the
risk
of
other
customer
classes
paying
26
unwarranted
costs.
27
(c)
Mitigate
the
risk
of
shifting,
in
an
unwarranted
manner,
28
the
costs
of
serving
a
customer
that
is
a
large
energy
use
29
facility
to
other
customer
classes,
including
costs
incurred
by
30
an
electric
utility
or
water
utility
to
meet
load
requirements
31
resulting
from
the
provision
of
electricity
service
or
water
32
service
to
a
customer
that
is
a
large
energy
use
facility.
33
(2)
In
deciding
whether
to
approve
a
proposed
rate,
charge,
34
or
schedule
of
an
electric
utility
or
water
utility
for
a
35
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6
H.F.
2261
customer
class
described
under
this
subsection,
the
commission
1
shall
consider
whether
the
rate,
charge,
or
schedule
may
do
any
2
of
the
following:
3
(a)
Result
in,
or
have
the
potential
to
result
in,
increased
4
costs
or
unwarranted
risk
to
other
customers.
5
(b)
Provide
for
equitable
contributions
to
grid
efficiency,
6
distribution
efficiency,
reliability,
and
resiliency
benefits.
7
(c)
Meet
any
other
conditions
the
commission
may
require
in
8
the
public
interest.
9
(3)
An
electric
utility
or
water
utility
and
a
customer
10
that
is
a
large
energy
use
facility
are
not
required
to
11
use
a
classification
of
service
provided
for
under
this
12
subsection
if
the
commission
has
not
approved
for
the
electric
13
utility
or
water
utility
a
rate,
charge,
or
schedule
for
that
14
classification
of
service.
15
c.
(1)
Notwithstanding
section
476.1,
subsection
3,
this
16
paragraph
shall
apply
to
all
municipally
owned
waterworks,
17
waterworks
having
less
than
two
thousand
customers,
joint
water
18
utilities
established
pursuant
to
chapter
389,
rural
water
19
districts
incorporated
and
organized
pursuant
to
chapters
357A
20
and
504,
and
cooperative
water
associations
incorporated
and
21
organized
pursuant
to
chapter
499
that
provide
service
to
a
22
large
energy
use
facility.
This
paragraph
shall
not
apply
to
23
water
utilities
subject
to
paragraph
“b”
.
24
(2)
Any
water
utility
providing
service
to
a
large
energy
25
use
facility
shall
create
a
customer
class
for
each
customer
26
that
is
a
large
energy
use
facility.
The
customer
class
must
27
be
separate
and
distinct
from
customer
classes
for
other
28
customers
and
have
its
own
rates,
charges,
and
schedules.
29
Any
rate,
charge,
or
schedule
must
meet
all
the
following
30
requirements:
31
(a)
Directly
assign
the
costs
of
serving
to
the
customer.
32
(b)
Mitigate
the
risk
of
other
customer
classes
paying
33
unwarranted
costs.
34
(c)
Mitigate
the
risk
of
shifting,
in
an
unwarranted
manner,
35
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5759YH
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sb/js
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6
H.F.
2261
the
costs
of
serving
a
customer
that
is
a
large
energy
use
1
facility
to
other
customer
classes,
including
costs
incurred
by
2
a
water
utility
to
meet
load
requirements
resulting
from
the
3
provision
of
water
service
to
a
customer
that
is
a
large
energy
4
use
facility.
5
(3)
In
calculating
a
rate,
charge,
or
schedule
of
a
water
6
utility
for
a
customer
class
described
under
this
subsection,
7
the
water
utility
shall
consider
whether
the
rate,
charge,
or
8
schedule
may
do
any
of
the
following:
9
(a)
Result
in,
or
have
the
potential
to
result
in,
increased
10
costs
or
unwarranted
risk
to
other
customers.
11
(b)
Provide
for
equitable
contributions
to
distribution
12
efficiency,
reliability,
and
resiliency
benefits.
13
(c)
Meet
any
other
conditions
the
commission
may
require
in
14
the
public
interest.
15
(4)
(a)
Upon
request
by
the
commission,
a
water
utility
16
that
provides
service
to
a
large
energy
use
facility
shall
17
submit
documentation
to
the
commission
within
thirty
days
of
18
the
request
that
demonstrates
compliance
with
this
section.
19
(b)
If
a
water
utility
does
not
submit
documentation
as
20
required
by
subparagraph
(1),
the
water
utility
shall
be
21
subject
to
a
civil
penalty,
as
determined
by
the
commission.
22
Sec.
2.
APPLICABILITY.
This
Act
applies
to
electric
utility
23
services
and
water
utility
services
provided
to
large
energy
24
use
facilities
constructed
or
expanded
on
or
after
January
1,
25
2027.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
relates
to
customer
classes
for
large
energy
use
30
facilities.
31
The
bill
defines
“costs
of
serving”
to
include,
as
32
applicable,
the
costs
incurred
by
an
electric
utility
or
water
33
utility
in
providing
electric
transmission,
distribution,
34
energy,
water
service,
capacity,
or
ancillary
electricity
or
35
-3-
LSB
5759YH
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91
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6
H.F.
2261
water
services,
and
any
related
costs
or
associated
risks
with
1
serving
a
customer
class
or
customer.
The
bill
defines
“large
2
energy
use
facility”
as
a
facility
that
uses
or
is
able
to
use
3
20
megawatts
or
more
and
that
is
primarily
engaged
in
providing
4
a
service
described
under
code
number
518210
of
the
North
5
American
industry
classification
system.
6
RATE-REGULATED
UTILITIES.
The
bill
requires
the
utilities
7
commission
(commission)
to
create
a
customer
class
for
each
8
customer
that
is
a
large
energy
use
facility.
The
customer
9
class
must
be
separate
and
distinct
from
customer
classes
10
for
other
customers
and
must
have
its
own
rates,
charges,
11
and
schedules.
The
bill
provides
that
any
rate,
charge,
or
12
schedule
approved
by
the
commission
for
a
large
energy
use
13
facility
customer
must
directly
assign
the
costs
of
serving
the
14
customer,
mitigate
the
risk
of
other
customer
classes
paying
15
unwarranted
costs,
and
mitigate
the
risk
of
shifting,
in
an
16
unwarranted
manner,
the
costs
of
serving
a
large
energy
use
17
facility
to
other
customer
classes.
The
bill
specifies
that
18
these
costs
include
costs
incurred
by
an
electric
utility
19
or
water
utility
to
meet
load
requirements
resulting
from
20
providing
electricity
service
or
water
service
to
a
large
21
energy
use
facility.
22
The
bill
requires
the
commission,
when
deciding
whether
23
to
approve
a
proposed
rate,
charge,
or
schedule
for
a
large
24
energy
use
facility
customer
class,
to
consider
whether
25
the
proposal
may
result
in
or
have
the
potential
to
result
26
in
increased
costs
or
unwarranted
risk
to
other
customers,
27
whether
the
proposal
provides
for
equitable
contributions
to
28
grid
efficiency,
distribution
efficiency,
reliability,
and
29
resiliency
benefits,
and
whether
the
proposal
meets
any
other
30
conditions
the
commission
may
require
in
the
public
interest.
31
The
bill
provides
that
an
electric
utility
or
water
utility
32
and
a
customer
that
is
a
large
energy
use
facility
are
not
33
required
to
use
the
customer
classification
created
under
the
34
bill
if
the
commission
has
not
approved
a
rate,
charge,
or
35
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2261
schedule
for
that
classification
of
service.
1
OTHER
WATER
UTILITIES.
The
bill
applies
to
certain
water
2
utilities
not
otherwise
regulated
by
the
commission.
3
The
bill
requires
water
utilities
to
create
a
customer
class
4
for
each
customer
that
is
a
large
energy
use
facility.
The
5
customer
class
must
be
separate
and
distinct
from
customer
6
classes
for
other
customers
and
must
have
its
own
rates,
7
charges,
and
schedules.
The
bill
provides
that
any
rate,
8
charge,
or
schedule
for
a
large
energy
use
facility
must
9
directly
assign
the
costs
of
serving
the
customer,
mitigate
the
10
risk
of
other
customer
classes
paying
unwarranted
costs,
and
11
mitigate
the
risk
of
shifting,
in
an
unwarranted
manner,
the
12
costs
of
serving
a
large
energy
use
facility
to
other
customer
13
classes.
The
bill
specifies
that
these
costs
include
costs
14
incurred
by
a
water
utility
to
meet
load
requirements
resulting
15
from
providing
water
service
to
a
large
energy
use
facility.
16
The
bill
requires
the
water
utility,
when
calculating
a
17
rate,
charge,
or
schedule
for
a
large
energy
use
facility
18
customer
class,
to
consider
whether
the
rate,
charge,
or
19
schedule
may
result
in
or
have
the
potential
to
result
in
20
increased
costs
or
unwarranted
risk
to
other
customers,
21
provides
for
equitable
contributions
to
distribution
22
efficiency,
reliability,
and
resiliency
benefits,
and
meets
23
any
other
conditions
the
commission
may
require
in
the
public
24
interest.
25
The
bill
provides
that
upon
request
by
the
commission,
a
26
water
utility
that
provides
service
to
a
large
energy
use
27
facility
must
submit
documentation
to
the
commission
within
28
30
days
of
the
request
that
demonstrates
compliance
with
the
29
bill.
If
the
water
utility
does
not
submit
the
documentation
30
as
required,
the
water
utility
is
subject
to
a
civil
penalty,
31
as
determined
by
the
commission.
32
APPLICABILITY.
The
bill
applies
to
electric
utility
33
services
and
water
utility
services
provided
to
large
energy
34
use
facilities
constructed
or
expanded
on
or
after
January
1,
35
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5759YH
(5)
91
sb/js
5/
6
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2261
2027.
1
-6-
LSB
5759YH
(5)
91
sb/js
6/
6