Read the full stored bill text
House
File
2668
-
Introduced
HOUSE
FILE
2668
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HF
2365)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
public
utilities,
1
including
virtual
power
plants
and
integrated
resource
2
planning.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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2668
Section
1.
Section
476.53,
subsection
2,
Code
2026,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
c.
Customer-owned
generation
and
storage
3
is
vital
to
cost-effectively
meeting
rising
demand
for
4
electricity.
Virtual
power
plants
are
a
collection
of
5
customer-owned
distributed
generation
resources
and
energy
6
storage
devices
managed
and
dispatched
by
a
common
control
7
mechanism,
which
may
only
be
located
in
the
service
territory
8
of
a
rate-regulated
electric
utility.
Virtual
power
plants
9
shall
not
be
considered
public
utilities
under
this
chapter.
10
The
commission
shall
promulgate
rules
that
provide
a
process
11
and
standards
for
the
commission’s
approval
and
oversight
of
12
virtual
power
plants,
including
information
the
commission
13
finds
necessary
for
the
evaluation
of
a
virtual
power
plant
14
proposal.
Such
information
shall
include
the
nature
of
the
15
resources
that
may
participate
in
a
virtual
power
plant,
16
the
entities
who
may
propose
virtual
power
plants,
and
the
17
estimated
benefits
to
customers
in
the
service
territory
in
18
which
the
virtual
power
plant
will
operate.
The
commission
19
shall
not
approve
or
continue
to
allow
the
operation
of
a
20
virtual
power
plant
if
the
virtual
power
plant
does
not,
under
21
standards
established
by
the
commission,
benefit
the
customers
22
in
the
service
territory
in
which
the
virtual
power
plant
23
operates.
24
Sec.
2.
NEW
SECTION
.
476.53B
Integrated
resource
planning.
25
1.
To
implement
the
intent
of
the
general
assembly
as
set
26
forth
in
sections
476.53
and
476.53A,
each
rate-regulated
27
public
utility
shall
file
with
the
commission
an
integrated
28
resource
plan
every
five
years,
with
the
first
plan
due
29
July
1,
2028.
The
commission
shall
promulgate
rules
for
the
30
development
and
evaluation
of
integrated
resource
plans.
At
a
31
minimum,
the
rules
shall
include
all
of
the
following:
32
a.
A
process
under
which
a
utility
files
a
new
plan
every
33
five
years
that
includes
a
five-year
and
a
twenty-year
planning
34
horizon.
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b.
A
quantitative
comparative
analysis
of
multiple
resource
1
mixes
to
serve
anticipated
customer
needs
using
industry
best
2
practices,
including
capacity
expansion
and
production
cost
3
modeling
that
include
all
of
the
following
for
both
planning
4
horizons:
5
(1)
Existing
and
potential
generating
resources
needed
to
6
serve
customers,
including
competitively
procured
purchase
7
power
agreements
and
market
purchase.
8
(2)
The
process
for
determining
the
forecast
projects,
9
costs,
and
other
inputs
and
assumptions
to
be
used
in
an
10
integrated
resource
plan
by
all
parties.
It
is
the
intent
of
11
the
general
assembly
that
the
utilities
use
uniform
scenarios,
12
inputs,
assumptions,
and
sources
of
data.
13
(3)
An
assessment
of
customer
costs
and
seasonal
14
reliability.
15
(4)
Resources
including
energy
efficiency,
demand
response,
16
peak
load
conservation,
and
distributed
generation
plans,
17
as
described
elsewhere
in
this
chapter,
that
will
assist
in
18
meeting
energy
and
capacity
needs.
19
(5)
A
utility’s
energy
and
capacity
forecasts,
for
existing
20
and
potential
generating
resources,
as
described
elsewhere
21
in
this
chapter,
including
filings
made
with
any
federal
or
22
regional
authority.
The
forecast
shall
include
but
is
not
23
limited
to
a
forecast
of
the
requirements
of
customers,
its
24
anticipated
sources
of
supply,
and
its
anticipated
means
of
25
addressing
the
forecasted
electric
generating
needs.
26
(6)
Transmission
and
distribution
upgrades
and
expansion
27
plans
needed
to
reliably
serve
the
utility’s
customers
and
28
integrate
each
potential
resource,
and
the
associated
costs
29
of
such
plans
in
connection
with
the
various
resource
mixes
30
proposed.
31
c.
Determination
of
eligibility
for
access
to
modeling
32
software
and
data,
including
access
to
appropriate
data
from
33
the
utilities’
production
cost
model
scenarios.
The
commission
34
may
determine
the
number
of
parties
eligible
for
access
to
the
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modeling
software.
1
d.
The
ability
of
parties
eligible
for
access
to
the
2
modeling
software
license
to
have
at
least
four
alternative
3
scenarios
and
a
process
to
best
balance
and
represent
the
input
4
of
the
respective
parties.
The
alternative
scenarios
will
be
5
included
on
equal
footing
with
utility
scenarios.
6
e.
Annual
reporting
on
the
performance
of
the
plan
and
any
7
nonmaterial
updates.
8
f.
Mechanisms
for
the
utility
to
make,
or
for
the
9
commission,
the
office
of
consumer
advocate,
or
customers
10
to
request,
updates
or
modifications
to
the
plan
to
reflect
11
material
changes.
12
g.
Other
rules
for
the
development
and
evaluation
of
13
integrated
resource
plans
the
commission
deems
necessary
or
14
appropriate.
15
2.
The
commission
shall
ensure
the
public
has
maximum
16
access
to
information,
while
protecting
only
the
necessary
17
confidential
information
of
the
utility.
The
commission
shall
18
require
a
uniform
nondisclosure
agreement
that
allows
as
much
19
access
as
possible
to
data
and
information,
including
that
data
20
deemed
by
the
commission
as
confidential.
21
3.
Any
proposed
deviation
from
an
integrated
resource
plan
22
must
be
demonstrated
by
the
utility
to
be
in
the
best
interest
23
of
customers
when
rate
recovery
or
other
approval
of
the
24
generation
facility
is
sought.
25
4.
The
commission
may
employ
additional
temporary
staff,
or
26
may
contract
for
professional
services
with
persons
who
are
not
27
state
employees,
as
the
commission
deems
necessary
to
perform
28
required
functions
as
provided
in
this
section,
including
but
29
not
limited
to
promulgating
rules
for
the
development
and
30
evaluation
of
resource
plans.
The
costs
of
the
additional
31
staff
and
services
shall
be
assessed
to
the
utilities
pursuant
32
to
the
procedure
in
sections
475A.6
and
476.10.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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2668
the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
the
regulation
of
public
utilities,
2
including
customer-owned
resources,
virtual
power
plants,
and
3
integrated
resource
planning.
4
The
bill
recognizes
that
customer-owned
generation
and
5
storage
is
vital
to
cost-effectively
meeting
rising
demand
6
for
electricity.
The
bill
describes
virtual
power
plants
7
as
collections
of
customer-owned
distributed
generation
and
8
energy
storage
resources
managed
by
a
common
control
mechanism
9
within
a
utility’s
service
territory.
The
bill
provides
that
10
virtual
power
plants
are
not
public
utilities
and
requires
11
the
commission
to
adopt
rules
establishing
standards
and
12
processes
for
approval
and
oversight.
The
bill
prohibits
the
13
commission
from
approving
or
allowing
continued
operation
of
a
14
virtual
power
plant
if
the
virtual
power
plant
does
not
benefit
15
customers
in
the
service
territory.
16
The
bill
requires
each
rate-regulated
public
utility
to
17
file
an
integrated
resource
plan
every
five
years,
with
the
18
first
plan
due
July
1,
2028.
The
bill
directs
the
commission
19
to
adopt
rules
governing
the
development
and
evaluation
of
20
integrated
resource
plans.
The
plans
must
include
5-year
21
and
20-year
planning
horizons
and
a
quantitative
comparative
22
analysis
of
multiple
resource
mixes
to
serve
anticipated
23
customer
needs
using
industry
best
practices.
The
rules
24
adopted
by
the
commission
must
also
address
a
determination
25
of
eligibility
for
access
to
modeling
software
and
data,
26
including
the
ability
for
eligible
parties
to
have
alternative
27
scenarios
and
a
process
to
best
balance
and
represent
the
28
input
of
the
respective
parties.
The
bill
provides
the
rules
29
adopted
must
also
include
requirements
for
annual
reporting
on
30
plan
performance,
as
well
as
mechanisms
for
plan
updates
or
31
modifications
in
response
to
material
changes
and
any
other
32
rule
for
the
development
and
evaluation
of
integrated
resource
33
plans
the
commission
deems
necessary
or
appropriate.
34
The
bill
directs
the
commission
to
maximize
public
access
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2668
to
information
while
protecting
only
necessary
confidential
1
information
through
uniform
disclosure
agreements.
The
bill
2
requires
any
deviation
from
an
integrated
resource
plan
to
be
3
demonstrated
to
be
in
the
best
interest
of
the
customers
when
4
rate
recovery
approval
is
sought.
5
The
bill
allows
the
commission
or
consumer
advocate
to
6
employ
additional
staff
or
contract
for
professional
services
7
with
persons
who
are
not
state
employees
for
the
development
8
of
rules
for
the
filing
and
review
of
resource
plans
or
to
9
aid
the
commission
in
the
review
and
approval,
disapproval,
10
or
modification
of
a
plan.
The
costs
of
the
additional
staff
11
services
shall
be
assessed
to
the
utilities.
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