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SF2056 • 2026

A bill for an act relating to billing methods for distributed generation customers.

A bill for an act relating to billing methods for distributed generation customers.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
DONAHUE
Last action
2026-01-22
Official status
Subcommittee: Driscoll, Drey, and Webster. S.J. 132 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to billing methods for distributed generation customers.

A bill for an act relating to billing methods for distributed generation customers.

What This Bill Does

  • A bill for an act relating to billing methods for distributed generation customers.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-22 Iowa Legislature

    Subcommittee: Driscoll, Drey, and Webster. S.J. 132 .

  2. 2026-01-15 Iowa Legislature

    Introduced, referred to Commerce. S.J. 102 .

Official Summary Text

A bill for an act relating to billing methods for distributed generation customers.

Current Bill Text

Read the full stored bill text 
Senate

File

2056

-

Introduced

SENATE

FILE

2056

BY

DONAHUE

A

BILL

FOR

An

Act

relating

to

billing

methods

for

distributed

generation

1

customers.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

5989XS

(2)

91

sb/js

S.F.

2056

Section

1.

Section

476.49,

subsection

3,

paragraph

a,

1

subparagraph

(2),

Code

2026,

is

amended

to

read

as

follows:

2

(2)

Any

excess

kilowatt-hours

remaining

at

the

end

of

a

3

twelve-month

period

shall

be

cashed

out

at

the

request

of

4

a

customer

or

when

a

customer

discontinues

service

with

an

5

electric

utility

at

the

electric

utility’s

avoided

cost

rate

6

with

the

funds

from

the

cash

out

divided

evenly

between

the

7

customer

and

the

electric

utility’s

low-income

home

energy

8

assistance

program.

The

distributed

generation

customer

9

shall

choose

either

a

January

or

April

cash

out

date

at

the

10

time

of

interconnection

being

sent

directly

to

the

customer

.

11

Kilowatt-hour

credits

shall

remain

in

a

customer’s

account

to

12

offset

kilowatt-hours

in

future

billing

until

a

cash

out

is

13

requested

by

the

customer

or

the

customer

discontinues

service

14

with

the

electric

utility.

15

EXPLANATION

16

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

17

the

explanation’s

substance

by

the

members

of

the

general

assembly.

18

This

bill

relates

to

the

cash

out

of

excess

kilowatt-hours

to

19

distributed

generation

customers.

20

Under

current

law,

any

excess

kilowatt-hours

remaining

at

21

the

end

of

a

12-month

period

are

cashed

out

by

the

electric

22

utility

at

the

electric

utility’s

avoided

cost

rate

and

23

distributed

evenly

between

the

customer

and

the

electric

24

utility’s

low-income

home

energy

assistance

program.

The

25

customer

chooses

whether

the

cash

out

occurs

in

January

or

26

April.

27

The

bill

changes

the

cash

out

process

of

excess

28

kilowatt-hours

for

distributed

generation

customers.

The

29

bill

provides

that

excess

kilowatt-hours

must

be

cashed

out

30

directly

to

the

customer

at

the

customer’s

request

or

when

31

the

customer

discontinues

service.

The

bill

requires

any

32

kilowatt-hour

credits

to

remain

in

a

customer’s

account

to

33

offset

future

bills

until

a

cash

out

is

requested

or

the

34

customer

discontinues

service.

35

-1-

LSB

5989XS

(2)

91

sb/js

1/

1