Read the full stored bill text
Senate
File
2273
-
Introduced
SENATE
FILE
2273
BY
REICHMAN
A
BILL
FOR
An
Act
relating
to
the
regulation
of
public
utilities,
1
including
rate
filings,
rate
adjustment
mechanisms,
virtual
2
power
plants,
and
integrated
resource
planning.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
476.6,
subsections
7
and
8,
Code
2026,
1
are
amended
to
read
as
follows:
2
7.
Limitation
on
Frequency
of
filings.
3
a.
A
public
utility
shall
not
make
a
subsequent
filing
of
4
an
application
for
a
new
or
changed
rate,
charge,
schedule,
5
or
regulation
which
that
relates
to
services
for
which
a
rate
6
filing
is
pending
within
twelve
months
following
the
date
the
7
prior
application
was
filed
or
until
the
commission
has
issued
8
a
final
order
on
the
prior
application,
whichever
date
is
9
earlier,
unless
the
public
utility
applies
to
the
commission
10
for
authority
and
receives
authority
to
make
a
subsequent
11
filing
at
an
earlier
date.
12
b.
Not
later
than
July
1,
2029,
and
at
least
every
three
13
years
thereafter,
a
public
utility
shall
file
a
general
rate
14
case
in
which
the
commission
shall
confirm
that
the
utility’s
15
rates,
cost
allocations,
and
all
other
provisions
of
its
tariff
16
are
just
and
reasonable
and
based
on
each
customer
or
customer
17
group’s
actual
cost
of
service.
If,
on
July
1,
2026,
a
utility
18
has
not
filed
a
general
rate
case
since
July
1,
2023,
the
19
utility
shall
file
a
new
general
rate
case
by
December
31,
20
2027.
21
8.
Automatic
adjustments.
22
a.
This
Unless
otherwise
provided
in
this
subsection,
23
this
chapter
does
not
prohibit
a
public
utility
from
making
24
provision
for
the
automatic
adjustment
of
rates
and
charges
for
25
public
utility
service
provided
that
a
schedule
showing
the
26
automatic
adjustment
of
rates
and
charges
is
first
filed
with
27
and
approved
by
the
commission.
28
b.
A
Unless
otherwise
provided
in
this
subsection,
a
29
public
utility
may
automatically
adjust
rates
and
charges
to
30
recover
costs
related
to
transmission
incurred
by
or
charged
31
to
the
public
utility
consistent
with
a
tariff
or
agreement
32
that
is
subject
to
the
jurisdiction
of
the
federal
energy
33
regulatory
commission,
provided
that
a
schedule
showing
the
34
automatic
adjustment
of
rates
and
charges
is
first
filed
with
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and
approved
by
the
commission.
The
commission
shall
adopt
1
rules
regarding
the
reporting
of
transmission
expenses
and
2
transmission-related
activity
pursuant
to
this
paragraph.
3
c.
This
subchapter
prohibits
an
electric
utility
required
4
to
be
rate-regulated
from
making
provisions
for
the
automatic
5
adjustment
of
rates
and
charges
for
a
public
utility.
6
d.
An
electric
utility
required
to
be
rate-regulated
shall
7
not
automatically
adjust
rates
and
charges
to
recover
costs
8
related
to
transmission
incurred
or
charged
to
the
public
9
utility.
10
e.
For
an
electric
utility
required
to
be
rate-regulated,
11
as
of
the
first
filing
under
subsection
7,
paragraph
“b”
,
and
12
continuing
thereafter,
any
cost
or
expense
recovered
through
13
an
automatic
adjustment
mechanism,
tracker,
or
rider
shall
14
be
included
and
only
adjusted
in
a
general
rate
case
under
15
subsection
7,
paragraph
“b”
.
16
Sec.
2.
Section
476.53,
subsection
2,
Code
2026,
is
amended
17
by
adding
the
following
new
paragraph:
18
NEW
PARAGRAPH
.
c.
Customer-owned
generation
and
storage
19
is
vital
to
cost-effectively
meeting
rising
demand
for
20
electricity.
Virtual
power
plants
are
a
collection
of
21
customer-owned
distributed
generation
resources
and
energy
22
storage
devices
managed
and
dispatched
by
a
common
control
23
mechanism,
which
may
only
be
located
in
the
service
territory
24
of
a
rate-regulated
electric
utility.
Virtual
power
plants
25
shall
not
be
considered
public
utilities
under
this
chapter.
26
The
commission
shall
promulgate
rules
that
provide
a
process
27
and
standards
for
the
commission’s
approval
and
oversight
of
28
virtual
power
plants,
including
information
the
commission
29
finds
necessary
for
the
evaluation
of
a
virtual
power
plant
30
proposal.
Such
information
shall
include
the
nature
of
the
31
resources
that
may
participate
in
a
virtual
power
plant,
32
the
entities
who
may
propose
virtual
power
plants,
and
the
33
estimated
benefits
to
customers
in
the
service
territory
in
34
which
the
virtual
power
plant
will
operate.
The
commission
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shall
not
approve
or
continue
to
allow
the
operation
of
a
1
virtual
power
plant
if
the
virtual
power
plant
does
not,
under
2
standards
established
by
the
commission,
benefit
the
customers
3
in
the
service
territory
in
which
the
virtual
power
plant
4
operates.
5
Sec.
3.
NEW
SECTION
.
476.53B
Integrated
resource
planning.
6
1.
To
implement
the
intent
of
the
general
assembly
as
set
7
forth
in
sections
476.53
and
476.53A,
each
rate-regulated
8
public
utility
shall
file
with
the
commission
an
integrated
9
resource
plan
every
three
years,
with
the
first
plan
due
10
July
1,
2027.
The
commission
shall
promulgate
rules
for
the
11
development
and
evaluation
of
integrated
resource
plans.
At
a
12
minimum,
the
rules
shall
include
all
of
the
following:
13
a.
A
process
under
which
a
utility
files
a
new
plan
every
14
three
years
that
includes
a
five-year
and
a
twenty-year
15
planning
horizon.
16
b.
A
quantitative
comparative
analysis
of
multiple
resource
17
mixes
to
serve
anticipated
customer
needs
using
industry
best
18
practices,
including
capacity
expansion
and
production
cost
19
modeling
that
include
all
of
the
following
for
both
planning
20
horizons:
21
(1)
Existing
and
potential
generating
resources
needed
to
22
serve
customers,
including
competitively
procured
purchase
23
power
agreements
and
market
purchase.
24
(2)
The
process
for
determining
the
forecast
projects,
25
costs,
and
other
inputs
and
assumptions
to
be
used
in
an
26
integrated
resource
plan
by
all
parties.
It
is
the
intent
of
27
the
general
assembly
that
the
utilities
use
uniform
scenarios,
28
inputs,
assumptions,
and
sources
of
data.
29
(3)
An
assessment
of
customer
costs
and
seasonal
30
reliability.
31
(4)
Resources
including
energy
efficiency,
demand
response,
32
peak
load
conservation,
and
distributed
generation
plans,
33
as
described
elsewhere
in
this
chapter,
that
will
assist
in
34
meeting
energy
and
capacity
needs.
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(5)
A
utility’s
energy
and
capacity
forecasts,
for
existing
1
and
potential
generating
resources,
as
described
elsewhere
2
in
this
chapter,
including
filings
made
with
any
federal
or
3
regional
authority.
The
forecast
shall
include
but
is
not
4
limited
to
a
forecast
of
the
requirements
of
customers,
its
5
anticipated
sources
of
supply,
and
its
anticipated
means
of
6
addressing
the
forecasted
electric
generating
needs.
7
(6)
Transmission
and
distribution
upgrades
and
expansion
8
plans
needed
to
reliably
serve
the
utility’s
customers
and
9
integrate
each
potential
resource,
and
the
associated
costs
10
of
such
plans
in
connection
with
the
various
resource
mixes
11
proposed.
12
c.
Determination
of
eligibility
for
access
to
modeling
13
software
and
data,
including
access
to
appropriate
data
from
14
the
utilities’
production
cost
model
scenarios.
The
commission
15
may
determine
the
number
of
parties
eligible
for
access
to
the
16
modeling
software.
17
d.
The
ability
of
parties
eligible
for
access
to
the
18
modeling
software
license
to
have
at
least
four
alternative
19
scenarios
and
a
process
to
best
balance
and
represent
the
input
20
of
the
respective
parties.
The
alternative
scenarios
will
be
21
included
on
equal
footing
with
utility
scenarios.
22
e.
Annual
reporting
on
the
performance
of
the
plan
and
any
23
nonmaterial
updates.
24
f.
Mechanisms
for
the
utility
to
make,
or
for
the
25
commission,
the
office
of
consumer
advocate,
or
customers
26
to
request,
updates
or
modifications
to
the
plan
to
reflect
27
material
changes.
28
g.
Other
rules
for
the
development
and
evaluation
of
29
integrated
resource
plans
the
commission
deems
necessary
or
30
appropriate.
31
2.
The
commission
shall
ensure
the
public
has
maximum
32
access
to
information,
while
protecting
only
the
necessary
33
confidential
information
of
the
utility.
The
commission
shall
34
require
a
uniform
nondisclosure
agreement
that
allows
as
much
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access
as
possible
to
data
and
information,
including
that
data
1
deemed
by
the
commission
as
confidential.
2
3.
Any
proposed
deviation
from
an
integrated
resource
plan
3
must
be
demonstrated
by
the
utility
to
be
in
the
best
interest
4
of
customers
when
rate
recovery
or
other
approval
of
the
5
generation
facility
is
sought.
6
4.
The
commission
may
employ
additional
temporary
staff,
or
7
may
contract
for
professional
services
with
persons
who
are
not
8
state
employees,
as
the
commission
deems
necessary
to
perform
9
required
functions
as
provided
in
this
section,
including
but
10
not
limited
to
promulgating
rules
for
the
development
and
11
evaluation
of
resource
plans.
The
costs
of
the
additional
12
staff
and
services
shall
be
assessed
to
the
utilities
pursuant
13
to
the
procedure
in
sections
475A.6
and
476.10.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
relates
to
the
regulation
of
public
utilities,
18
including
rate
filings,
rate
adjustment
mechanisms,
19
customer-owned
resources,
virtual
power
plants,
and
integrated
20
resource
planning.
21
The
bill
requires
each
public
utility,
no
later
than
July
22
1,
2029,
and
at
least
every
three
years
thereafter,
to
file
23
a
general
rate
case
in
which
the
Iowa
utilities
commission
24
(commission)
must
confirm
that
rates,
cost
allocations,
25
and
other
provisions
of
the
utility’s
tariff
are
just
and
26
reasonable
and
based
on
actual
cost
of
service.
Utilities
that
27
have
not
filed
a
general
rate
case
since
July
1,
2023,
are
28
required
to
file
a
general
rate
case
by
December
31,
2027.
29
Under
current
law,
a
public
utility
is
permitted
to
make
30
provisions
for
the
automatic
adjustment
of
rates
and
charges
31
provided
certain
criteria
are
met.
The
bill
prohibits
the
32
use
of
automatic
adjustment
provisions
for
electric
utilities
33
subject
to
rate
regulation.
For
electric
utilities
subject
to
34
rate
regulation,
beginning
with
the
first
general
rate
case
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filed
under
the
bill,
the
bill
requires
costs
or
expenses
1
recovered
through
automatic
adjustment
mechanisms,
trackers,
2
or
riders
to
be
included
and
adjusted
only
through
a
general
3
rate
case.
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
three
years,
with
the
18
first
plan
due
July
1,
2027.
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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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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