SUBCHAPTER IREGULATION AUTHORITY
476.1 Applicability of authority.
1. The utilities commission shall regulate the rates and services of public utilities to the extent and in the manner hereinafter
provided.
2. As used in this chapter, “public utility” shall include any person, partnership, business association, or corporation, domestic or foreign, owning or operating any
facilities for: a. Furnishing gas by piped distribution system or electricity to the public for compensation.
b. Furnishing communications services to the public for compensation.
c. Furnishing water by piped distribution system to the public for compensation.
d. Furnishing sanitary sewage or storm water drainage disposal by piped collection system to the public for compensation.
3. This chapter does not apply to municipally owned waterworks, waterworks having less than two thousand customers, joint water utilities
established pursuant to chapter 389, rural water districts incorporated and organized pursuant to chapters 357A and 504, cooperative water associations incorporated and organized pursuant to chapter 499, municipally owned sanitary sewage or storm water drainage systems, sanitary districts incorporated and organized pursuant
to chapter 358, districts organized pursuant to chapter 468, or a person furnishing electricity to five or fewer customers either by secondary line or from an alternate energy production
facility or small hydro facility, from electricity that is produced primarily for the person’s own use.
4. The jurisdiction of the commission under this chapter shall include efforts designed to promote the use of energy efficiency strategies by gas and electric utilities required
to be rate-regulated.
83 Acts, ch 127, §15, 16; 84 Acts, ch 1031, §1; 88 Acts, ch 1172, §2; 90 Acts, ch 1252, §18; 91 Acts, ch 150, §1; 91 Acts, ch 168, §9; 96 Acts, ch 1196, §1; 2004 Acts, ch 1049, §191; 2004 Acts, ch 1175, §393; 2012 Acts, ch 1023, §67; 2016 Acts, ch 1013, §1, 2; 2018 Acts, ch 1135, §3; 2018 Acts, ch 1160, §4; 2023 Acts, ch 19, §2669, 2670; 2024 Acts, ch 1170, §369
Referred to in
§8.86, 16.151, 306.46, 331.301, 352.6, 364.3, 388.2A, 423.3, 427.1(42), 452A.41, 455H.304, 476.6, 476.20, 476.22, 476.27, 476.58, 476.84, 476.91, 499.30, 499.33, 714H.4, 715.9, 715E.6, 716.6B, 716.7 476.1A Applicability of authority — certain electric utilities.
1. Electric public utilities having fewer than ten thousand customers and electric cooperative corporations and associations
are not subject to the regulation authority of the commission, except for regulatory action pertaining to all of the following: a. Assessment of fees for the support of the commission and the office of consumer advocate, pursuant to section 476.10.
b. Safety standards and engineering standards.
e. Filing alternate energy purchase program plans with the commission, and offering such programs to customers, pursuant to section 476.47.
2. However, sections 476.20, subsections 1 through 4, 476.21, 476.51, 476.56, 476.58, 476.62, and 476.66 and chapters 476A and 478, to the extent applicable, apply to such electric utilities.
3. Electric cooperative corporations and associations and electric public utilities exempt from rate regulation under this section shall not make or grant any unreasonable preferences or advantages as to rates or services to any person or subject any person
to any unreasonable prejudice or disadvantage.
4. The board of directors or the membership of an electric cooperative corporation or association otherwise exempt from rate
regulation may elect to have the cooperative’s rates regulated by the commission. The commission shall adopt rules prescribing
the manner in which the board of directors or the membership of an electric cooperative may so elect. If the board of directors
or the membership of an electric cooperative has elected to have the cooperative’s rates regulated by the commission, after
two years have elapsed from the effective date of such election the board of directors or the membership of the electric cooperative
may elect to exempt the cooperative from the rate regulation authority of the commission, provided, however, that if the membership
elected to have the cooperative’s rates regulated by the commission, only the membership may elect to exempt the cooperative
from the rate regulation authority of the commission.
5. An electric utility subject to regulatory action pursuant to this section is subject to complaints and investigations as set forth in section 476.3, but only with regard to matters within the regulatory authority of the commission as set forth in subsections 1 and 2.
6. As used in this section: a. “Engineering standards” means standards adopted by the American national standards institute, or the institute of electrical and electronics engineers,
rural utilities service, or comparable engineering organization or engineering standards adopted by the commission.
b. “Rates” means the same as defined in section 384.80 and includes all charges or fees imposed or collected for the provision of or incidental to utility service.
c. “Safety standards” means applicable regulations promulgated by the United States occupational safety and health administration and by the labor
commissioner under chapter 88. Safety standards for electric utilities subject to this section also include outage notifications, safety standards contained in the national electric safety code, as published by the institute
of electrical and electronic engineers, inc., and electric safety standards approved by the American national standards institute.
86 Acts, ch 1039, §1; 88 Acts, ch 1174, §1; 88 Acts, ch 1175, §1; 89 Acts, ch 297, §9; 90 Acts, ch 1252, §19; 96 Acts, ch 1196, §2, 3; 2001 Acts, 1st Ex, ch 4, §8, 36; 2008 Acts, ch 1133, §2, 9; 2017 Acts, ch 169, §36, 49; 2018 Acts, ch 1135, §4; 2023 Acts, ch 19, §2671; 2023 Acts, ch 51, §1; 2023 Acts, ch 119, §40; 2024 Acts, ch 1170, §369
476.1B Applicability of authority — municipally owned utilities.
1. A municipally owned utility furnishing gas or electricity is not subject to the regulation authority of the commission, except
for regulatory action pertaining to the following: a. Assessment of fees for the support of the commission and the office of consumer advocate, as set forth in section 476.10.
b. Safety standards.
e. An electric power agency as defined in chapter 28F and section 390.9 that includes as a member a city or municipally owned utility that builds transmission facilities after July 1, 2001, is
subject to applicable transmission reliability rules or standards adopted by the commission for those facilities.
f. Filing alternate energy purchase program plans with the commission, and offering such programs to customers, pursuant to section 476.47.
4. An electric utility subject to regulatory action pursuant to this section is subject to complaints and investigations as set forth in section 476.3, but only with regard to matters within the regulatory authority of the commission as set forth in subsections 1 and 2.
86 Acts, ch 1162, §1; 88 Acts, ch 1174, §2; 88 Acts, ch 1175, §2; 89 Acts, ch 297, §10; 90 Acts, ch 1252, §20; 96 Acts, ch 1196, §4, 5; 97 Acts, ch 81, §1, 2, 6; 99 Acts, ch 63, §7, 8; 2001 Acts, 1st Ex, ch 4, §9, 36; 2008 Acts, ch 1133, §3, 9; 2010 Acts, ch 1018, §6; 2017 Acts, ch 62, §4; 2017 Acts, ch 169, §37, 49; 2018 Acts, ch 1135, §5; 2018 Acts, ch 1160, §5; 2023 Acts, ch 19, §2672; 2023 Acts, ch 51, §2; 2024 Acts, ch 1170, §369
476.1C Applicability of authority — certain gas utilities.
1. Gas public utilities having fewer than two thousand customers:
b. Shall file energy efficiency plans and energy efficiency results with the commission. The energy efficiency plans as a whole
shall be cost-effective. The commission may waive all or part of the energy efficiency filing requirements if the gas utility
demonstrates superior results with existing energy efficiency efforts.
c. Shall keep books, accounts, papers, and records accurately and faithfully in the manner and form prescribed by the commission.
The commission may inspect the accounts of the utility at any time.
d. (1) May make effective a new or changed rate, charge, schedule, or regulation after giving written notice of the proposed new
or changed rate, charge, schedule, or regulation to all affected customers served by the public utility. The notice shall
inform the customers of their right to petition for a review of the proposal to the utilities commission within sixty days
after notice is served if the petition contains the signatures of at least one hundred of the gas utility’s customers. The
notice shall state the address of the utilities commission. The new or changed rate, charge, schedule, or regulation takes
effect sixty days after such valid notice is served unless a petition for review of the new or changed rate, charge, schedule,
or regulation signed by at least one hundred of the gas utility’s customers is filed with the commission prior to the expiration
of the sixty-day period. (2) If such a valid petition is filed with the commission within the sixty-day period, any new or changed rate, charge, schedule,
or regulation shall take effect, under bond or corporate undertaking, subject to refund of all amounts collected in excess
of those amounts which would have been collected under the rates or charges finally approved by the commission. The commission
shall, within five months of the date of filing, make a determination of just and reasonable rates based on a review of the
proposal, applying established regulatory principles. The commission may call upon the gas public utility and its customers
to furnish factual evidence in support of or opposition to the new or changed rate, charge, schedule, or regulation. If the
gas public utility disputes the finding, the utility may within twenty days file for further review, and the commission shall
docket the case as a formal proceeding under section 476.6, subsection 4, and set the case for hearing. The gas public utility shall submit factual evidence and written argument in support of the
filing.
e. Shall not make effective a new or changed rate, charge, schedule, or regulation which relates to services for which a rate
change is pending within twelve months following the date the petition to review the prior proposed rate, charge, schedule,
or regulation was filed with the commission or until the commission has made its determination of just and reasonable rates,
whichever date is earlier, unless the utility applies to the commission for authority and receives authority to make a subsequent
rate change at an earlier date.
f. Shall not make or grant any unreasonable preferences or advantages as to rates or services to any person or subject any person
to any unreasonable prejudice or disadvantage. Rates charged by a gas public utility having less than two thousand customers
for transportation of customer-owned gas shall not exceed the actual cost of such transportation services including a fair
rate of return.
2. If, as a result of a review of a proposed new or changed rate, charge, schedule, or regulation of a gas public utility having
fewer than two thousand customers, the consumer advocate alleges in a filing with the commission that the utility rates are
excessive, the disputed amounts shall be specified by the consumer advocate in the filing. The gas public utility shall, within
the time prescribed by the commission, file a bond or undertaking approved by the commission conditioned upon the refund in
a manner prescribed by the commission of amounts collected after the date of the filing which are in excess of rates or charges
finally determined by the commission to be lawful. If after formal proceeding and hearing pursuant to section 476.6 the commission finds that the utility rates are unlawful, the commission shall order a refund, with interest, of amounts
collected after the date of filing of the petition that are determined to be in excess of the amounts which would have been
collected under the rates finally approved. However, the commission shall not order a refund that is greater than the amount
specified in the petition, plus interest. If the commission fails to render a decision within ten months following the date
of filing of the petition, the commission shall not order a refund of any excess amounts that are collected after the expiration
of that ten-month period and prior to the date the decision is rendered.
87 Acts, ch 21, §1; 90 Acts, ch 1252, §21; 96 Acts, ch 1196, §6; 2012 Acts, ch 1021, §91; 2017 Acts, ch 169, §38, 39, 49; 2024 Acts, ch 1170, §369
476.1D Regulation and deregulation of communications services.
1. Except as provided in this section, the jurisdiction of the commission as to the regulation of communications services is not applicable to a service or facility
that is provided or is proposed to be provided by a telephone utility that is or becomes subject to effective competition,
as determined by the commission. a. In determining whether a service or facility is or becomes subject to effective competition, the commission shall consider,
among other factors, whether a comparable service or facility is available from a supplier other than the telephone utility
in the geographic market being considered by the commission and whether market forces in that market are sufficient to assure
just and reasonable rates without regulation.
b. When considering market forces in the market proposed to be deregulated, the commission shall consider factors including but
not limited to the presence or absence of all of the following: (1) Wireless communications services.
(2) Cable telephony services.
(3) Voice over internet protocol services.
(4) Economic barriers to the entry of competitors or potential competitors in that market.
2. Deregulation of a service or facility for a utility is effective only after a finding of effective competition by the commission.
3. If the commission finds that a service or facility is subject to effective competition, the commission shall deregulate the
service or facility within a reasonable time.
4. Upon deregulation, all investment, revenues, and expenses associated with the service or facility shall be removed from the
telephone utility’s regulated operations and shall not be considered by the commission in setting rates for the telephone
utility unless they continue to affect the utility’s regulated operations. If the commission considers investment, revenues,
and expenses associated with unregulated services or facilities in setting rates for the telephone utility, the commission
shall not use any profits or costs from such unregulated services or facilities to determine the rates for regulated services
or facilities.
5. Notwithstanding the presence of effective competition, if the commission determines a service or facility is an essential
communications service or facility and the public interest warrants retention of service regulation, the commission shall
deregulate rates and may continue service regulation.
6. The commission may reimpose rate and service regulation on a deregulated service or facility if it determines the service
or facility is no longer subject to effective competition.
7. The commission may reimpose service regulation only on a deregulated service or facility if the commission determines the
service or facility is an essential communications service or facility and the public interest warrants service regulation,
notwithstanding the presence of effective competition.
8. If the commission reimposes regulation pursuant to subsection 6 or 7, the reimposition of regulation shall apply to all providers of the service or facility.
9. The commission may investigate and obtain information from providers of deregulated services or facilities to determine whether
the services or facilities are subject to effective competition or whether the service or facility is an essential communications
service or facility and the public interest warrants service regulation. However, the commission shall not, for purposes of
this subsection, request or obtain information related to the provider’s costs or earnings.
91 Acts, ch 150, §2; 95 Acts, ch 199, §1; 96 Acts, ch 1219, §73; 2003 Acts, ch 126, §1; 2003 Acts, ch 145, §286; 2005 Acts, ch 9, §1; 2006 Acts, ch 1010, §123; 2011 Acts, ch 25, §143; 2012 Acts, ch 1023, §68; 2014 Acts, ch 1099, §1, 2; 2018 Acts, ch 1160, §6, 7; 2024 Acts, ch 1170, §369
476.2 Commission powers and rules — utility’s Iowa office.
1. The commission shall have broad general powers to effect the purposes of this chapter notwithstanding the fact that certain specific powers are set forth in this section. The commission shall have authority to issue subpoenas and to pay the same fees and mileage as are payable to witnesses
in the courts of record of general jurisdiction and shall establish all needful, just and reasonable rules, not inconsistent
with law, to govern the exercise of its powers and duties, the practice and procedure before it, and to govern the form, contents
and filing of reports, documents and other papers provided for in this chapter or in the commission’s rules. In the establishment, amendment, alteration or repeal of any of such rules, the commission
shall be subject to the provisions of chapter 17A.
2. The commission shall employ at rates of compensation consistent with current standards in industry such professionally trained
engineers, accountants, attorneys, and skilled examiners and inspectors, secretaries, clerks, and other employees as it may
find necessary for the full and efficient discharge of its duties and responsibilities as required by this chapter.
3. The commission may intervene in any proceedings before the federal energy regulatory commission or any other federal or state
regulatory body when it finds that any decision of that tribunal would adversely affect the costs of any public utility service
within the state of Iowa.
4. The commission shall have authority to inquire into the management of the business of all public utilities, and shall keep
itself informed as to the manner and method in which the same is conducted, and may obtain from any public utility all necessary
information to enable the commission to perform its duties.
5. The commission shall have the authority to employ or appoint an independent administrative law judge to preside over any hearing
or proceeding before the commission. Sections 10A.801 and 17A.11 do not apply to the employment or appointment of an administrative law judge pursuant to this subsection.
6. Each rate-regulated gas and electric utility operating within the state shall maintain within the state the utility’s principal
office for Iowa operations. The principal office shall be subject to the jurisdiction of the commission and shall house those
books, accounts, papers, and records of the utility deemed necessary by the commission to be housed within the state. The
utility shall maintain within the state administrative, technical, and operating personnel necessary for the delivery of safe
and reasonably adequate services and facilities as required pursuant to section 476.8. A public utility which violates this section shall be subject to the penalties provided in section 476.51 and shall be denied authority to recover, for a period determined by the commission, the costs of an energy efficiency plan
pursuant to section 476.6, subsection 8.
[C66, 71, 73, 75, §490A.2; C77, 79, 81, §476.2]
90 Acts, ch 1168, §51; 90 Acts, ch 1252, §22; 96 Acts, ch 1196, §7; 2018 Acts, ch 1135, §6; 2018 Acts, ch 1160, §8; 2020 Acts, ch 1063, §262; 2021 Acts, ch 75, §1; 2024 Acts, ch 1170, §369
476.3 Complaints — investigation — refunds.
1. A public utility shall furnish reasonably adequate service at rates and charges in accordance with tariffs filed with the
commission. When there is filed with the commission by any person or body politic, or filed by the commission upon its own
motion, a written complaint requesting the commission to determine the reasonableness of the rates, charges, schedules, service,
regulations, or anything done or omitted to be done by a public utility subject to this chapter in contravention of this chapter, the written complaint shall be forwarded by the commission to the public utility, which shall be called upon to satisfy
the complaint or to answer it in writing within a reasonable time to be specified by the commission. Copies of the written
complaint forwarded by the commission to the public utility and copies of all correspondence from the public utility in response
to the complaint shall be provided by the commission in an expeditious manner to the consumer advocate. If the commission
determines the public utility’s response is inadequate and there appears to be any reasonable ground for investigating the
complaint, the commission shall promptly initiate a formal proceeding. If the consumer advocate determines the public utility’s
response to the complaint is inadequate, the consumer advocate may file a petition with the commission which shall promptly
initiate a formal proceeding if the commission determines that there is any reasonable ground for investigating the complaint.
The complainant or the public utility also may petition the commission to initiate a formal proceeding which petition shall
be granted if the commission determines that there is any reasonable ground for investigating the complaint. The formal proceeding
may be initiated at any time by the commission on its own motion. If a proceeding is initiated upon petition filed by the
consumer advocate, complainant, or the public utility, or upon the commission’s own motion, the commission shall set the case
for hearing and give notice as it deems appropriate. When the commission, after a hearing held after reasonable notice, finds
a public utility’s rates, charges, schedules, service, or regulations are unjust, unreasonable, discriminatory, or otherwise
in violation of any provision of law, the commission shall determine just, reasonable, and nondiscriminatory rates, charges,
schedules, service, or regulations to be observed and enforced.
2. If, as a result of a review procedure conducted under section 476.31, a review conducted under section 476.32, a special audit, an investigation by commission staff, or an investigation by the consumer advocate, a petition is filed
with the commission by the consumer advocate, alleging that a utility’s rates are excessive, the disputed amount shall be
specified in the petition. The public utility shall, within the time prescribed by the commission, file a bond or undertaking
approved by the commission conditioned upon the refund in a manner prescribed by the commission of amounts collected after
the date of filing of the petition in excess of rates or charges finally determined by the commission to be lawful. If upon
hearing the commission finds that the utility’s rates are unlawful, the commission shall order a refund, with interest, of
amounts collected after the date of filing of the petition that are determined to be in excess of the amounts which would
have been collected under the rates finally approved. However, the commission shall not order a refund that is greater than
the amount specified in the petition, plus interest, and if the commission fails to render a decision within ten months following
the date of filing of the petition, the commission shall not order a refund of any excess amounts that are collected after
the expiration of that ten-month period and prior to the date the decision is rendered.
3. A determination of utility rates by the commission pursuant to this section that is based upon a departure from previously established regulatory principles shall apply prospectively from the date
of the decision.
[C66, 71, 73, 75, §490A.3; C77, 79,
81, §476.3;
81 Acts, ch 156, §5, 9]
83 Acts, ch 127, §17, 18; 89 Acts, ch 59, §1; 89 Acts, ch 97, §1; 95 Acts, ch 199, §2; 2011 Acts, ch 25, §143; 2014 Acts, ch 1099, §3; 2023 Acts, ch 19, §2673; 2024 Acts, ch 1170, §369
1. Every public utility shall file with the commission tariffs showing the rates and charges for its public utility services
and the rules and regulations under which such services were furnished, on April 1, 1963, which rates and charges shall be
subject to investigation by the commission as provided in section 476.3, and upon such investigation the burden of establishing the reasonableness of such rates and charges shall be upon the public
utility filing the same. These filings shall be made under such rules as the commission may prescribe within such time and
in such form as the commission may designate. In prescribing rules and regulations with respect to the form of tariffs and
any other regulations, the commission shall, in the case of public utilities subject to regulation by any federal agency,
give due regard to any corresponding rules and regulations of such federal agency, to the end that unnecessary duplication
of effort and expense may be avoided so far as reasonably possible. Each public utility shall keep copies of its tariffs open
to public inspection under such rules as the commission may prescribe.
2. No later than January 1, 2015, a telephone utility is required to file tariffs as provided in this section only for such wholesale services as may be specified by the commission.
3. Every rate, charge, rule, and regulation contained in any filing made with the Iowa state commerce commission on or prior
to July 4, 1963, shall be effective as of such date, subject, however, to investigation as provided in this chapter. If any such filing is made prior to the time the Iowa state commerce commission prescribes rules, and if such filing does
not comply as to form or substance with such rules, then the public utility which filed the same shall, within a reasonable
time after the adoption of such rules, make a new filing or filings complying with such rules, which new filing or filings
shall be deemed effective as of July 4, 1963.
[C66, 71, 73, 75, §490A.4; C77, 79, 81, §476.4]
2014 Acts, ch 1099, §4; 2018 Acts, ch 1135, §7; 2020 Acts, ch 1063, §263; 2021 Acts, ch 80, §308; 2024 Acts, ch 1170, §369
476.4A Exemption from tariff filings for telephone utilities.
Repealed by 2014 Acts, ch 1099, §19.
476.5 Adherence to schedules.
No public utility subject to rate regulation shall directly or indirectly charge a greater or less compensation for its services
than that prescribed in its tariffs, and no such public utility shall make or grant any unreasonable preferences or advantages
as to rates or services to any person or subject any person to any unreasonable prejudice or disadvantage.
[C66, 71, 73, 75, §490A.5; C77, 79, 81, §476.5]
476.6 Changes in rates, charges, schedules, and regulations — supply and cost review — water costs for fire protection — energy
efficiency.
1. Filing with commission.
A public utility subject to rate regulation shall not make effective a new or changed rate, charge, schedule, or regulation
until the rate, charge, schedule, or regulation has been approved by the commission, except as provided in subsections 8 and 9.
2. Written notice of increase.
All public utilities, except those exempted from rate regulation by section 476.1 and telecommunications service providers registered pursuant to section 476.95A, shall give written notice of a proposed increase of any rate or charge to all affected customers served by the public utility
no more than thirty days prior to the time the application for the increase is filed with the commission. Public utilities
exempted from rate regulation by section 476.1, except telecommunications service providers registered pursuant to section 476.95A, shall give written notice of a proposed increase of any rate or charge to all affected customers served by the public utility
at least thirty days prior to the effective date of the increase. If the public utility is subject to rate regulation, the
written notice to affected customers shall include an estimate of the total bill impact on a typical customer in each affected
customer class, provide a general explanation of the commission’s rate increase review process, and state that the customer
has a right to file a written objection to the rate increase and that the affected customers may request the commission to
hold a public hearing to determine if the rate increase should be allowed. The written notice to each affected customer of
the public utility shall be served in the manner in which the customer elects to receive bills and other communications from
the public utility.
3. Facts and arguments submitted.
At the time a public utility subject to rate regulation files with the commission an application for any new or changed rates,
charges, schedules, or regulations, the public utility also shall submit factual evidence and written argument offered in
support of the filing. If the filing is an application for a general rate increase, the utility shall also file affidavits
containing testimonial evidence to be offered in support of the filing, although this requirement does not apply if the public
utility is a rural electric cooperative.
4. Hearing set.
After the filing of an application for new or changed rates, charges, schedules, or regulations by a public utility subject
to rate regulation, the commission, prior to the expiration of thirty days after the filing date, shall docket the case as
a formal proceeding and set the case for hearing unless the new or changed rates, charges, schedules, or regulations are approved
by the commission. However, if an application presents no material issue of fact subject to dispute, and the commission determines
that the application violates a relevant statute, or is not in substantial compliance with a commission rule lawfully adopted
pursuant to chapter 17A, the application may be rejected by the commission without prejudice and without a hearing, provided that the commission
issues a written order setting forth all of its reasons for rejecting the application. In the case of a gas public utility
having less than two thousand customers, the commission shall docket a case as a formal proceeding and set the case for hearing
as provided in section 476.1C. In the case of a rural electric cooperative, the commission may docket the case as a formal proceeding and set the case
for hearing prior to the proposed effective date of the tariff. The commission shall give notice of formal proceedings as
it deems appropriate. The docketing of a case as a formal proceeding suspends the effective date of the new or changed rates,
charges, schedules, or regulations until the rates, charges, schedules, or regulations are approved by the commission, except
as provided in subsection 9.
5. Utility hearing expenses reported.
When a case has been docketed as a formal proceeding under subsection 4, the public utility, within a reasonable time thereafter, shall file with the commission a report outlining the utility’s
expected expenses for litigating the case through the time period allowed by the commission in rendering a decision. At the
conclusion of the utility’s presentation of comments, testimony, exhibits, or briefs the utility shall submit to the commission
a listing of the utility’s actual litigation expenses in the proceeding. As part of the findings of the commission under subsection 6, the commission shall allow recovery of costs of the litigation expenses over a reasonable period of time to the extent the
commission deems the expenses reasonable and just.
6. Finding by commission.
If, after hearing and decision on all issues presented for determination in the rate proceeding, the commission finds the
proposed rates, charges, schedules, or regulations of the utility to be unlawful, the commission shall by order authorize
and direct the utility to file new or changed rates, charges, schedules, or regulations which, when approved by the commission
and placed in effect, will satisfy the requirements of this chapter. The rates, charges, schedules, or regulations so approved are lawful and effective upon their approval.
7. Limitation on filings.
A public utility shall not make a subsequent filing of an application for a new or changed rate, charge, schedule, or regulation
which relates to services for which a rate filing is pending within twelve months following the date the prior application
was filed or until the commission has issued a final order on the prior application, whichever date is earlier, unless the
public utility applies to the commission for authority and receives authority to make a subsequent filing at an earlier date.
8. Automatic adjustments.
a. This chapter does not prohibit a public utility from making provision for the automatic adjustment of rates and charges for public utility
service provided that a schedule showing the automatic adjustment of rates and charges is first filed with and approved by
the commission.
b. A public utility may automatically adjust rates and charges to recover costs related to transmission incurred by or charged
to the public utility consistent with a tariff or agreement that is subject to the jurisdiction of the federal energy regulatory
commission, provided that a schedule showing the automatic adjustment of rates and charges is first filed with and approved
by the commission. The commission shall adopt rules regarding the reporting of transmission expenses and transmission-related
activity pursuant to this paragraph.
9. Temporary authority.
a. A public utility may choose to place in effect temporary rates, charges, schedules, or regulations without commission review
on or after ten days following the filing date under this section. If the utility chooses to place such rates, charges, schedules, or regulations in effect, the utility shall file with the
commission a bond or other corporate undertaking approved by the commission conditioned upon the refund in a manner prescribed
by the commission of amounts collected in excess of the amounts which would have been collected under rates, charges, schedules,
or regulations finally approved by the commission. At the conclusion of the proceeding if the commission determines that the
temporary rates, charges, schedules, or regulations placed in effect under this paragraph were not based on previously established
regulatory principles, the commission shall consider ordering refunds based upon the overpayments made by each individual
customer class, rate zone, or customer group. If the commission has not rendered a final decision with respect to suspended
rates, charges, schedules, or regulations upon the expiration of ten months after the filing date, plus the length of any
delay that necessarily results either from the failure of the public utility to exercise due diligence in connection with
the proceedings or from intervening judicial proceedings, plus the length of any extension permitted by section 476.33, subsection 3, then such temporary rates, charges, schedules, or regulations placed into effect on a temporary basis shall be deemed finally
approved by the commission and the utility may place them into effect on a permanent basis.
b. If the commission finds that an extension of the ten-month period is necessary to permit the accumulation of necessary data
with respect to the operation of a newly constructed electric generating facility that has a capacity of one hundred megawatts
or more of electricity and that is proposed to be included in the rate base for the first time, the commission may extend
the ten-month period up to a maximum extension of six months, but only with respect to that portion of the suspended rates,
charges, schedules, or regulations that are necessarily connected with the inclusion of the generating facility in the rate
base. If a utility is proposing to include in its rate base for the first time a newly constructed electric generating facility
that has a capacity of one hundred megawatts or more of electricity, the filing date of new or changed rates, charges, schedules,
or regulations shall, for purposes of computing the time limitations stated above, be the date as determined by the commission
that the new plant went into service, but only with respect to that portion of the suspended rates, charges, schedules, or
regulations that are necessarily connected with the inclusion of the generating facility in the rate base.
c. The commission shall determine the rate of interest to be paid by a public utility to persons receiving refunds. The interest
rate to be applied to refunds of moneys collected subject to refund under this subsection is two percent per annum plus the average quarterly interest rate at commercial banks for twenty-four-month loans for personal
expenditures, as determined by the commission, compounded annually. The commission shall consider federal reserve statistical
release G.19 or its equivalent when determining interest to be paid under this subsection.
10. Refunds passed on to customers.
If pursuant to federal law or rule a rate-regulated public utility furnishing gas to customers in the state receives a refund
or credit for past gas purchases, the savings shall be passed on to the customers in a manner approved by the commission.
Similarly, if pursuant to federal law or rule a rate-regulated public utility furnishing gas to customers in the state receives
a rate for future gas purchases which is lower than the price included in the public utility’s approved rate application,
the savings shall be passed on to the customers in a manner approved by the commission.
11. Natural gas supply and cost review.
a. The commission shall periodically conduct a proceeding for the purpose of evaluating the reasonableness and prudence of a
rate-regulated public utility’s natural gas procurement and contracting practices. The natural gas supply and cost review
shall be conducted as a contested case pursuant to chapter 17A.
b. Under procedures established by the commission, each rate-regulated public utility furnishing gas shall periodically file
a complete natural gas procurement plan describing the expected sources and volumes of its gas supply and changes in the cost
of gas anticipated over a future twelve-month period specified by the commission. The utilities shall file information as
the commission deems appropriate.
c. During the natural gas supply and cost review, the commission shall evaluate the reasonableness and prudence of the gas procurement
plan. If a utility is not taking all reasonable actions to minimize its purchase gas costs, consistent with assuring an adequate
long-term supply of natural gas, the commission shall not allow the utility to recover from its customers purchase gas costs
in excess of those costs that would be incurred under reasonable and prudent policies and practices.
12. Electric energy supply and cost review.
The commission shall periodically conduct a proceeding for the purpose of evaluating the reasonableness and prudence of a
rate-regulated public utility’s procurement and contracting practices related to the acquisition of fuel for use in generating
electricity. The evaluation may review the reasonableness and prudence of actions taken by a rate-regulated public utility
to comply with the federal Clean Air Act Amendments of 1990, Pub. L. No. 101-549. The proceeding shall be conducted as a contested
case pursuant to chapter 17A. Under procedures established by the commission, the utility shall file information as the commission deems appropriate.
If a utility is not taking all reasonable actions to minimize its fuel and allowance transaction costs, the commission shall
not allow the utility to recover from its customers fuel and allowance transaction costs in excess of those costs that would
be or would have been incurred under reasonable and prudent policies and practices.
13. Energy efficiency plans.
Electric and gas public utilities shall offer energy efficiency programs to their customers through energy efficiency plans.
An energy efficiency plan as a whole shall be cost-effective. In determining the cost-effectiveness of an energy efficiency
plan, the commission shall apply the societal test, total resource cost test, utility cost test, rate-payer impact test, and
participant test. Energy efficiency programs for qualified low-income persons and for tree planting programs, educational
programs, and assessments of consumers’ needs for information to make effective choices regarding energy use and energy efficiency
need not be cost-effective and shall not be considered in determining cost-effectiveness of plans as a whole. The energy efficiency
programs in the plans may be provided by the utility or by a contractor or agent of the utility. Programs offered pursuant
to this subsection by gas and electric utilities that are required to be rate-regulated shall require commission approval.
14. Water costs for fire protection in certain cities.
a. Application.
A city furnished water by a public utility subject to rate regulation may apply to the commission for inclusion of all or
a part of the costs of fire hydrants or other improvements, maintenance, and operations for the purpose of providing adequate
water production, storage, and distribution for public fire protection in the rates or charges assessed to consumers covered
by the applicant’s fire protection service. The application shall be made in a form and manner approved by or as directed
by the commission. The applicant shall provide such additional information as the commission may require to consider the application.
b. Review.
The commission shall review the application, and may in its discretion consider additional evidence, beyond that supplied
in the application or provided by the applicant in response to a request for additional information pursuant to paragraph
“a”, including but not limited to soliciting oral or written testimony from other interested parties.
c. Notice.
Written notice of a proposed rate increase shall be provided by the public utility pursuant to subsection 2, except that notice shall be provided within ninety days of the date of application. Costs of the notice shall be paid for
by the applicant.
d. Conditions for approval.
As a condition to approving an application to include water-related fire protection costs in the utility’s rates or charges,
the commission shall make an affirmative determination that the following conditions will be met: (1) That the service area currently charged for fire protection, either directly or indirectly, is substantially the same service
area containing those persons who will pay for water-related fire protection through inclusion of such costs within the utility’s
rates or charges.
(2) That the inclusion of such costs within the utility’s rates or charges will not cause substantial inequities among the utility’s
customers.
(3) That all or a portion of the costs sought to be included in the utility’s rates or charges by the applicant are reasonable
in the circumstances, and limited to the purposes specified in paragraph “a”.
(4) That written notice has been provided pursuant to paragraph “c” and that the costs of the notice have been paid by the applicant.
e. Inclusion within rates or charges.
If the commission affirmatively determines that the conditions of paragraph “d” are or will be satisfied, the commission shall include the reasonable costs in the rates or charges assessed to consumers
covered by the applicant’s fire protection service.
f. Written order.
The commission shall issue a written order within six months of the date of application. The written order shall include a
recitation of the facts found pursuant to consideration of the application.
15. Energy efficiency implementation, cost review, and cost recovery.
a. (1) (a) Electric utilities required to be rate-regulated under this chapter shall file five-year energy efficiency plans and demand response plans with the commission. Gas utilities required to be
rate-regulated under this chapter shall file five-year energy efficiency plans with the commission. An energy efficiency plan and budget or a demand response
plan and budget shall include a range of energy efficiency or demand response programs, tailored to the needs of all customer
classes, including residential, commercial, and industrial customers, for energy efficiency opportunities. The plans shall
include programs for qualified low-income persons including a cooperative program with any community action agency within
the utility’s service area to implement countywide or communitywide energy efficiency programs for qualified low-income persons.
Rate-regulated gas and electric utilities shall utilize Iowa agencies and Iowa contractors to the maximum extent cost-effective
in their energy efficiency plans or demand response plans filed with the commission. (b) The commission shall allow a customer of an electric utility that is required to be rate-regulated to request an exemption
from participation in any five-year energy efficiency plan offered by an electric utility if the energy efficiency plan and
demand response plan, at the time of approval by the commission, have a cumulative rate-payer impact test result of less than
one. Upon receipt of a request for exemption submitted by a customer, the electric utility shall grant the exemption and,
beginning January 1 of the following year, the customer shall no longer be assessed the costs of the plan and shall be prohibited
from participating in any program included in such plan until the exemption no longer applies, as determined by the commission.
(2) Gas and electric utilities required to be rate-regulated under this chapter may request an energy efficiency plan or demand response plan modification during the course of a five-year plan. A modification
may be requested due to changes in funding as a result of public utility customers requesting exemptions from the plan or
for any other reason identified by the gas or electric utility. The commission shall take action on a modification request
made by a gas or electric utility within ninety days after the modification request is filed. If the commission fails to take
action within ninety days after a modification request is filed, the modification request shall be deemed approved.
(3) The commission shall adopt rules pursuant to chapter 17A establishing reasonable processes and procedures for utility customers from any customer class to request exemptions from
energy efficiency plans that meet the requirements of subparagraph (1), subparagraph division (b). The rules adopted by the
commission shall only apply to electric utilities that are required to be rate-regulated.
b. A gas and electric utility required to be rate-regulated under this chapter shall assess potential energy and capacity savings available from actual and projected customer usage by applying commercially
available technology and improved operating practices to energy-using equipment and buildings. The utility shall submit the
assessment to the commission. Upon receipt of the assessment, the commission shall consult with the economic development authority
to develop specific capacity and energy savings performance standards for each utility. The utility shall submit an energy
efficiency plan which shall include economically achievable programs designed to attain these energy and capacity performance
standards. The commission shall periodically report the energy efficiency results including energy savings of each utility
to the general assembly.
c. (1) The commission shall conduct contested case proceedings for review of energy efficiency plans, demand response plans, and
budgets filed by gas and electric utilities required to be rate-regulated under this chapter. (2) Notwithstanding the goals developed pursuant to paragraph “b”, the commission shall not require or allow a gas utility to adopt an energy efficiency plan that results in projected cumulative
average annual costs that exceed one and one-half percent of the gas utility’s expected annual Iowa retail rate revenue from
retail customers in the state, shall not require or allow an electric utility to adopt an energy efficiency plan that results
in projected cumulative average annual costs that exceed two percent of the electric utility’s expected annual Iowa retail
rate revenue from retail customers in the state, and shall not require or allow an electric utility to adopt a demand response
plan that results in projected cumulative average annual costs that exceed two percent of the electric utility’s expected
annual Iowa retail rate revenue from retail customers in the state. For purposes of determining the two percent threshold
amount, the commission shall exclude from an electric utility’s expected annual Iowa retail rate revenue the revenues expected
from customers that have received exemptions from energy efficiency plans pursuant to paragraph “a”. This subparagraph shall apply to energy efficiency plans and demand response plans that are effective on or after January
1, 2019.
(3) The commission may approve, reject, or modify the plans and budgets. Notwithstanding the provisions of section 17A.19, subsection 5, in an application for judicial review of the commission’s decision concerning a utility’s plan or budget, the reviewing
court shall not order a stay.
(4) The commission shall approve, reject, or modify a plan filed pursuant to this subsection no later than March 31, 2019. If the commission fails to approve, reject, or modify a plan filed by a gas or electric utility
on or before such date, any plan filed by the gas or electric utility that was approved by the commission prior to May 4,
2018, shall be terminated. The commission shall not require or allow a gas or electric utility to implement an energy efficiency
plan or demand response plan that does not meet the requirements of this subsection.
(5) Whenever a request to modify an approved plan or budget is filed subsequently by a gas or electric utility required to be
rate-regulated under this chapter, the commission shall promptly initiate a formal proceeding if the commission determines that any reasonable ground exists
for investigating the request. The formal proceeding may be initiated at any time by the commission on its own motion. Implementation
of commission-approved plans or budgets shall be considered continuous in nature and shall be subject to investigation at
any time by the commission or the office of the consumer advocate.
d. Notice to customers of a contested case proceeding for review of energy efficiency plans, demand response plans, and budgets
shall be in a manner prescribed by the commission.
e. (1) A gas or electric utility required to be rate-regulated under this chapter may recover, through an automatic adjustment mechanism filed pursuant to subsection 8, over a period not to exceed the term of the plan, the costs of an energy efficiency plan or demand response plan approved
by the commission in a contested case proceeding conducted pursuant to paragraph “c”. Customers that have been granted exemptions from energy efficiency plans pursuant to paragraph “a”, shall not be charged for recovery of energy efficiency costs beginning January 1 of the year following the year in which
the customer was granted the exemption. (2) The commission shall periodically conduct a contested case proceeding to evaluate the reasonableness and prudence of the utility’s
implementation of an approved energy efficiency or demand response plan and budget. If a utility is not taking all reasonable
actions to cost-effectively implement an approved plan, the commission shall not allow the utility to recover from customers
costs in excess of those costs that would be incurred under reasonable and prudent implementation and shall not allow the
utility to recover future costs at a level other than what the commission determines to be reasonable and prudent. If the
result of a contested case proceeding is a judgment against a utility, that utility’s future level of cost recovery shall
be reduced by the amount by which the programs were found to be imprudently conducted. Beginning January 1, 2019, a gas or
electric utility shall represent energy efficiency and demand response in customer billings as a separate cost or expense.
f. A rate-regulated utility required to submit an energy efficiency plan under this subsection shall, upon the request of a state agency or political subdivision to which it provides service, provide advice and assistance
regarding measures which the state agency or political subdivision might take in achieving improved energy efficiency results.
The cooperation shall include assistance in accessing financial assistance for energy efficiency measures.
16. Filing of forecasts.
The commission shall periodically require each rate-regulated gas or electric public utility to file a forecast of future
gas requirements or electric generating needs and the commission shall evaluate the forecast. The forecast shall include but
is not limited to a forecast of the requirements of its customers, its anticipated sources of supply, and its anticipated
means of addressing the forecasted gas requirements or electric generating needs.
17. Allocation of replacement tax costs.
a. The costs of the replacement tax imposed pursuant to chapter 437A or 437B shall be reflected in the charges of utilities subject to rate regulation, in lieu of the utilities’ costs of property taxes.
The imposition of the replacement taxes pursuant to chapter 437A is not intended to initiate any change in the rates and charges for the sale of electricity, the sale of natural gas, or
the transportation of natural gas that is subject to regulation by the commission and in effect on January 1, 1999. The implementation
and initial imposition of the replacement taxes pursuant to chapter 437B is not intended to result in an increase in the rates and charges for the sale of water that is subject to regulation by
the commission and in effect on January 1, 2013.
b. The cost of the replacement taxes imposed by chapter 437A or 437B shall be allocated among and within customer classes in a manner that will replicate the tax cost burden of the current property
tax on individual customers to the maximum extent practicable.
c. Upon the restructuring of the electric industry in this state so that individual consumers are given the right to choose their
electric suppliers, replacement tax costs shall be assigned to the service corresponding to the individual generation, transmission,
and delivery taxes. In all other respects, the allocation of the replacement tax costs among and within the customer classes
shall remain the same to the maximum extent practicable.
d. Notwithstanding this subsection, the commission may determine the amount of replacement tax properly included in retail rates subject to its jurisdiction.
The commission may determine whether the base rates or some other form of rate is most appropriate for recovery of the costs
of the replacement tax, subject to the requirement that utility rates be reasonable and just. The commission may also determine
the appropriate allocation of the tax. Any significant modification to rate design relating to the replacement tax shall be
made in a manner consistent with this subsection unless made in a contested case proceeding where the impact of such modification on competition and consumer costs is considered.
18. Recovery of management costs.
A public utility which is assessed management costs by a local government pursuant to chapter 480A is entitled to recover those costs. If the public utility serves customers within the boundaries of the local government
imposing the management costs, such costs shall be recovered exclusively from those customers.
19. Electric power generating facility emissions.
a. It is the intent of the general assembly that the state, through a collaborative effort involving state agencies and affected
generation owners, provide for compatible statewide environmental and electric energy policies with respect to regulated emissions
from rate-regulated electric power generating facilities in the state that are fueled by coal. Each rate-regulated public
utility that is an owner of one or more electric power generating facilities fueled by coal and located in this state may
develop a multiyear plan and budget or update an existing plan and budget for managing regulated emissions from its facilities
in a reasonably cost-effective manner as provided in this subsection. (1) A rate-regulated public utility in this state that is an owner of one or more electric power generating facilities fueled
by coal may, in its sole discretion, file an update to a multiyear plan. The update may seek advanced review and approval
of cost recovery for pollution and emissions control projects useful for managing the environmental regulatory requirements
for pollutants or other emissions from such facilities in a reasonably cost-effective manner.
(2) Copies of the plan and budget, as well as any subsequent updates, shall be served on the department of natural resources.
The commission shall consider the plan or update in a contested case proceeding pursuant to chapter 17A. The department of natural resources and the consumer advocate shall participate as parties to the proceeding.
(3) A rate-regulated public utility electing to seek advanced review of an emissions control project shall submit an application
for advanced review before the anticipated start of construction or installation of the project. If an electric power generating
facility is owned by two or more rate-regulated public utilities, the operator of the electric power generating facility may
file the application on behalf of all rate-regulated public utility owners.
(4) The department of natural resources shall state whether the plan or update meets applicable state environmental requirements
for regulated emissions. If the plan or update does not meet these requirements, the department shall recommend amendments
that outline actions necessary to bring the plan or update into compliance with the environmental requirements.
b. The commission shall not approve a plan or update that does not meet applicable state environmental requirements and federal
ambient air quality standards for regulated emissions from electric power generating facilities located in the state.
c. The commission shall review the plan or update and the associated budget, and shall approve the plan or update and the associated
budget if the plan or update and the associated budget are reasonably expected to achieve cost-effective compliance with applicable
state environmental requirements and federal ambient air quality standards. In reaching its decision, the commission shall
consider whether the plan or update and the associated budget reasonably balance costs, environmental requirements, economic
development potential, and the reliability of the electric generation and transmission system.
d. The commission shall issue an order approving or rejecting a plan, update, or budget within one hundred eighty days after
the public utility’s filing is deemed complete; however, upon good cause shown, the commission may extend the time for issuing
the order as follows: (1) The commission may grant an extension of thirty days.
(2) The commission may grant more than one extension, but each extension must rely upon a separate showing of good cause.
(3) A subsequent extension must not be granted any earlier than five days prior to the expiration of the original one-hundred-eighty-day
period, or the current extension.
e. The reasonable costs incurred by a rate-regulated public utility in preparing and filing the plan, update, or budget and in
participating in the proceedings before the commission and the reasonable costs associated with implementing the plan, update,
or budget shall be included in its regulated retail rates.
f. It is the intent of the general assembly that the commission, in an environmental plan, update, or associated budget filed
under this section by a rate-regulated public utility, may limit investments or expenditures that are proposed to be undertaken prior to the
time that the environmental benefit to be produced by the investment or expenditure would be required by state or federal
law.
20. Preapproval of cost recovery for natural gas extensions — rules.
The commission may adopt rules which provide for a preapproval process for cost recovery for natural gas extensions.
21. Federal tax reduction — customer benefits.
Customers of gas and electric utilities subject to rate regulation by the commission shall receive the full benefits of the
utilities’ reduced federal corporate income taxes as provided in the federal Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97, 131 Stat. 2054. Notwithstanding any other provision of law or rule to the contrary, the commission shall, no later than June 1, 2018, approve
any proposal filed by a rate-regulated gas or electric utility to pass such benefits on to customers. The commission may approve
rates with provision for adjustments to ensure that the rates are accurate and that customers receive the full benefits.
[C66, 71, 73, 75, §490A.6; C77, 79,
81, §476.6;
81 Acts, ch 156, §6, 9,
ch 157, §1 – 3;
82 Acts, ch 1100, §23]
83 Acts, ch 127, §19 – 26, 51; 84 Acts, ch 1023, §1; 87 Acts, ch 21, §2; 89 Acts, ch 58, §1; 89 Acts, ch 148, §1; 89 Acts, ch 321, §29; 90 Acts, ch 1103, §1; 90 Acts, ch 1252, §23 – 27; 91 Acts, ch 253, §22; 93 Acts, ch 68, §1; 96 Acts, ch 1196, §8, 9; 98 Acts, ch 1013, §1; 98 Acts, ch 1148, §2, 9; 98 Acts, ch 1194, §37, 40; 2001 Acts, 1st Ex, ch 4, §10, 36; 2002 Acts, ch 1162, §70, 71; 2003 Acts, ch 126, §2, 3; 2003 Acts, ch 145, §286; 2004 Acts, ch 1006, §1; 2006 Acts, ch 1030, §51; 2007 Acts, ch 168, §16, 18; 2008 Acts, ch 1133, §4, 5, 9; 2009 Acts, ch 108, §38, 41; 2009 Acts, ch 133, §158; 2010 Acts, ch 1176, §1, 3; 2011 Acts, ch 118, §50, 89; 2013 Acts, ch 30, §112; 2013 Acts, ch 94, §33, 35, 36; 2014 Acts, ch 1099, §6; 2017 Acts, ch 9, §1, 2; 2017 Acts, ch 21, §3, 4; 2018 Acts, ch 1135, §8 – 14, 20; 2018 Acts, ch 1160, §9, 10; 2019 Acts, ch 89, §39; 2020 Acts, ch 1063, §264; 2023 Acts, ch 34, §1 – 3; 2023 Acts, ch 52, §1; 2024 Acts, ch 1170, §369
476.6A Alternate energy production facilities — notification requirements.
1. On and after January 1, 2013, the owner of an alternate energy production facility, as defined in section 476.42, which when constructed or installed will be attached to an electric transmission or distribution line or attached to equipment
which is attached to an electric transmission or distribution line, who has not entered into a power purchase agreement with
a public utility, shall be subject to the notification requirements of subsection 2.
2. No later than thirty days prior to commencement of the construction or installation of an alternate energy production facility
as described in subsection 1, the owner of the facility shall provide written notice to the public utility within whose service territory the facility
is to be located of the owner’s intent to construct or install the facility, the type of facility to be constructed or installed,
and the date that the facility is anticipated to commence operation.
476.7 Application by utility for review.
If there shall be filed with the commission by any public utility an application requesting the commission to determine the
reasonableness of the utility’s rates, charges, schedules, service or regulations, the commission shall promptly initiate
a formal proceeding. Such a formal proceeding may be initiated at any time by the commission on its own motion. Whenever such
a proceeding has been initiated upon application or motion, the commission shall set the case for hearing and give such notice
thereof as it deems appropriate. Whenever the commission, after a hearing held after reasonable notice, finds any public utility’s
rates, charges, schedules, service or regulations are unjust, unreasonable, insufficient, discriminatory or otherwise in violation
of any provision of law, the commission shall determine just, reasonable, sufficient and nondiscriminatory rates, charges,
schedules, service or regulations to be thereafter observed and enforced.
[C66, 71, 73, 75, §490A.7; C77, 79, 81, §476.7]
476.8 Utility charges and service.
1. Every public utility is required to furnish reasonably adequate service and facilities. “Reasonably adequate service and facilities” for public utilities furnishing gas or electricity includes programs for customers to encourage the use of energy efficiency
and renewable energy sources. The charge made by any public utility for any heat, light, gas, energy efficiency and renewable
energy programs, water or power produced, transmitted, delivered or furnished, sanitary sewage or storm water collected and
treated, or communications services, or for any service rendered or to be rendered in connection therewith shall be reasonable
and just, and every unjust or unreasonable charge for such service is prohibited and declared unlawful. In determining reasonable
and just rates, the commission shall consider all factors relating to value and shall not be bound by rate base decisions
or rulings made prior to the adoption of this chapter.
2. The commission, in determining the value of materials or services to be included in valuations or costs of operations for
rate-making purposes, may disallow any unreasonable profit made in the sale of materials to or services supplied for any public
utility by any firm or corporation owned or controlled directly or indirectly by such utility or any affiliate, subsidiary,
parent company, associate or any corporation whose controlling stockholders are also controlling stockholders of such utility.
The burden of proof shall be on the public utility to prove that no unreasonable profit is made.
[C66, 71, 73, 75, §490A.8; C77, 79, 81, §476.8]
476.9 Accounts rendered to commission.
1. Every public utility, except telecommunications service providers registered pursuant to section 476.95A, shall keep and render to the commission, in the manner and form prescribed by the commission, uniform accounts of all business
transacted.
2. Every public utility engaged directly or indirectly in any other business than that of the production, transmission, or furnishing
of heat, light, water, power, or the collection and treatment of sanitary sewage or storm water for the public shall, if required
by the commission, keep and render separately to the commission in like manner and form the accounts of all such other business,
in which case all the provisions of this chapter shall apply to the books, accounts, papers and records of such other business and all profits and losses may be taken into
consideration by the commission if deemed relevant to the general fiscal condition of the public utility.
3. Every public utility, except telecommunications service providers registered pursuant to section 476.95A, is required to keep and render its books, accounts, papers and records accurately and faithfully in the manner and form
prescribed by the commission, and to comply with all directions of the commission relating to such books, accounts, papers
and records.
4. The commission shall consult with other state and federal regulatory bodies for the purpose of eliminating accounting discrepancies
with regard to the keeping of public utility accounts before prescribing any system of accounts to be kept by the public utility.
[C66, 71, 73, 75, §490A.9; C77, 79, 81, §476.9]
476.10 Investigations — expense — appropriation.
1. a. In order to carry out the duties imposed upon it by law, the commission may, at its discretion, allocate and charge directly
the expenses attributable to its duties to the person bringing a proceeding before the commission, to persons participating
in matters before the commission, or to persons subject to inspection by the commission. The commission shall ascertain the
certified expenses incurred and directly chargeable by the consumer advocate division of the department of justice in the
performance of its duties. The commission and the consumer advocate separately may decide not to charge expenses to persons
who, without expanding the scope of the proceeding or matter, intervene in good faith in a commission proceeding initiated
by a person subject to the commission’s jurisdiction, the consumer advocate, or the commission on its own motion. For assessments
in any proceedings or matters before the commission, the commission and the consumer advocate separately may consider the
financial resources of the person, the impact of assessment on participation by intervenors, the nature of the proceeding
or matter, and the contribution of a person’s participation to the public interest. The commission may present a bill for
expenses under this subsection to the person, either at the conclusion of a proceeding or matter, or from time to time during its progress. Presentation
of a bill for expenses under this subsection constitutes notice of direct assessment and request for payment in accordance with this section. b. The commission shall ascertain the total of the commission’s expenses incurred during each fiscal year in the performance
of its duties under law. The commission shall add to the total of the commission’s expenses the certified expenses of the
consumer advocate as provided under section 475A.6. The commission shall deduct all amounts charged directly to any person from the total expenses of the commission and the
consumer advocate. The commission may assess the amount remaining after the deduction to all persons providing service over
which the commission has jurisdiction in proportion to the respective gross operating revenues of such persons from intrastate
operations during the last calendar year over which the commission has jurisdiction. For purposes of determining gross operating
revenues under this section, the commission shall not include gross receipts received by a cooperative corporation or association for wholesale transactions
with members of the cooperative corporation or association, provided that the members are subject to assessment by the commission
based upon the members’ gross operating revenues, or provided that such a member is an association whose members are subject
to assessment by the commission based upon the members’ gross operating revenues. If any portion of the remainder can be identified
with a specific type of utility service, the commission shall assess those expenses only to the entities providing that type
of service over which the commission has jurisdiction. The commission may make the remainder assessments under this paragraph
to some or all persons providing service over which the commission has jurisdiction, based upon estimates of the expenditures
for the fiscal year for the utilities commission and the consumer advocate. Not more than ninety days following the close
of the fiscal year, the utilities commission shall conform the amount of the prior fiscal year’s assessments to the requirements
of this paragraph. For gas and electric public utilities exempted from rate regulation pursuant to this chapter, and for providers of telecommunications service required to register with the commission pursuant to section 476.95A that are exempted from rate regulation pursuant to this chapter, the remainder assessments under this paragraph shall be computed at one-half the rate used in computing the assessment for
other persons.
2. a. A person subject to a charge or assessment shall pay the commission the amount charged or assessed against the person within
thirty days from the time the commission provides notice to the person of the amount due, unless the person files an objection
in writing with the commission setting out the grounds upon which the person claims that such charge or assessment is excessive,
unreasonable, erroneous, unlawful, or invalid. Upon receipt of an objection, the commission shall set the matter for hearing
and issue its order in accordance with its findings in the proceeding. b. The order shall be subject to review in the manner provided in this chapter. All amounts collected by the commission pursuant to the provisions of this section shall be deposited with the treasurer of state and credited to the commerce revolving fund created in section 546.12. Such amounts shall be spent in accordance with the provisions of chapter 8.
3. Whenever the commission shall deem it necessary in order to carry out the duties imposed upon it in connection with rate regulation
under section 476.6, investigations under section 476.3, or review proceedings under section 476.31, the commission may employ additional temporary or permanent staff, or may contract with persons who are not state employees
for engineering, accounting, or other professional services, or both. The costs of these additional employees and contract
services shall be paid by the public utility whose rates are being reviewed in the same manner as other expenses are paid
under this section. Beginning on July 1, 1991, there is appropriated out of any funds in the state treasury not otherwise appropriated, such
sums as may be necessary to enable the commission to hire additional staff and contract for services under this section. The commission shall increase quarterly assessments specified in subsection 1, paragraph “b”, by amounts necessary to enable the commission to hire additional staff and contract for services under this section. The authority to hire additional temporary or permanent staff that is granted to the commission by this section shall not be subject to limitation by any administrative or executive order or decision that restricts the number of state
employees or the filling of employee vacancies, and shall not be subject to limitation by any law of this state that restricts
the number of state employees or the filling of employee vacancies unless that law is made applicable to this section by express reference to this section. Before the commission expends or encumbers an amount in excess of the funds budgeted for rate regulation and before the
commission increases quarterly assessments pursuant to this subsection, the director of the department of management shall approve the expenditure or encumbrance. Before approval is given, the
director of the department of management shall determine that the expenses exceed the funds budgeted by the general assembly
to the commission for rate regulation and that the commission does not have other funds from which the expenses can be paid.
Upon approval of the director of the department of management the commission may expend and encumber funds for the excess
expenses, and increase quarterly assessments to raise the additional funds. The commission and the office of consumer advocate
may add additional personnel or contract for additional assistance to review and evaluate energy efficiency plans and the
implementation of energy efficiency programs including, but not limited to, professionally trained engineers, accountants,
attorneys, skilled examiners and inspectors, and secretaries and clerks. The commission and the office of consumer advocate
may also contract for additional assistance in the evaluation and implementation of issues relating to telecommunication competition.
The commission and the office of the consumer advocate may expend additional sums beyond those sums appropriated. However,
the authority to add additional personnel or contract for additional assistance must first be approved by the department of
management. The additional sums for energy efficiency shall be provided to the commission and the office of the consumer advocate
by the utilities subject to the energy efficiency requirements in this chapter. Telephone companies shall pay any additional sums needed for assistance with telecommunication competition issues. The assessments
shall be in addition to and separate from the quarterly assessment.
4. a. Fees paid to the utilities commission shall be deposited in the commerce revolving fund created in section 546.12. These funds shall be used for the payment, upon appropriation by the general assembly, of the expenses of the utilities
commission and the consumer advocate division of the department of justice. b. The administrator and consumer advocate shall account for receipts and disbursements according to the separate duties imposed
upon the utilities commission and the consumer advocate division by the laws of this state and each separate duty shall be
fiscally self-sustaining.
[C66, 71, 73, 75, §490A.10; C77, 79,
81, §476.10;
81 Acts, ch 156, §7,
ch 158, §1]
83 Acts, ch 127, §28; 86 Acts, ch 1246, §613, 614; 89 Acts, ch 103, §1; 89 Acts, ch 296, §72; 89 Acts, ch 321, §30; 90 Acts, ch 1247, §11; 90 Acts, ch 1252, §29; 91 Acts, ch 260, §1236, 1237; 93 Acts, ch 131, §20, 21; 94 Acts, ch 1107, §80; 95 Acts, ch 199, §3; 2001 Acts, ch 9, §1, 3; 2009 Acts, ch 181, §45 – 47; 2018 Acts, ch 1160, §12; 2021 Acts, ch 75, §2; 2023 Acts, ch 19, §2674; 2024 Acts, ch 1170, §369
Referred to in
§12.91, 475A.6, 476.1A, 476.1B, 476.1C, 476.10B, 476.53, 476.87, 476.95, 476.95B, 477A.3, 477C.3, 478.4, 479.14, 479.16, 479A.7, 479A.9 476.10A Funding for Iowa energy center and center for global and regional environmental research.
Repealed by its own terms; 2017 Acts, ch 169, §41.
476.10B Energy-efficient building.
1. For the purposes of this section, “building project expenses” means expenses that have been approved by the utilities commission for the building and related improvements and furnishings
developed under this section and that are considered part of the regulatory expenses charged by the utilities commission and the consumer advocate division
of the department of justice for carrying out duties under section 476.10.
2. The department of administrative services, in consultation with the utilities commission and the consumer advocate division
of the department of justice, shall provide for the construction of a building to house the utilities commission and the consumer
advocate division of the department of justice. A building developed under this subsection shall be a model energy-efficient building that may be used as a public example for similar efforts. The building shall comply
with the life cycle cost provisions developed pursuant to section 72.5. The building shall be located on the capitol complex grounds or at another convenient location in the vicinity of the capitol
complex grounds.
3. Building project expenses shall include but are not limited to the costs associated with construction, maintenance, and operation
of the building that are approved by the utilities commission and shall also include principal of, premium, if any, and interest
on indebtedness to finance the building.
4. The department of administrative services’ costs associated with construction, maintenance, and operation of the building
as provided under chapter 8A are building project expenses.
5. A cost-effective approach for financing construction of the building shall be utilized, which may include but is not limited
to lease, lease-purchase, bonding, or installment acquisition arrangement, or a financing arrangement under section 12.28. If financing for the building is implemented under section 12.28, the limitation on principal under that section does not apply. This subsection is not a qualification of any other powers which the utilities commission and the consumer advocate division of the department
of justice may possess and the authorizations and powers granted under this subsection are not subject to the terms, requirements, or limitations of any other provisions of law. The department of administrative
services must comply with the provisions of section 12.28 when entering into financing agreements for the purchase of real or personal property.
6. a. If financing for the building is implemented through bonding, the provisions of section 12.91 shall apply. In order to assure maintenance of the bond reserve funds established in connection with the financing, the treasurer
of state shall, on or before January 1 of each calendar year, make and deliver to the governor the treasurer’s certificate
stating the sum, if any, required to restore each bond reserve fund to the bond reserve fund requirement for that fund. b. Within thirty days after the beginning of the session of the general assembly next following the delivery of the certificate,
the governor shall submit to both houses of the general assembly printed copies of a budget including the sum, if any, required
to restore each bond reserve fund to the bond reserve fund requirement for that fund. Any sums appropriated by the general
assembly and paid to the treasurer of state shall be deposited by the treasurer of state in the applicable bond reserve fund.
7. The department of administrative services, in consultation with the utilities commission and the consumer advocate division
of the department of justice, shall secure architectural services, contract for construction, engineering, and construction
oversight and management, and control the funding associated with the building construction and the building’s operation and
maintenance. The department of administrative services may utilize consultants or other expert assistance to address feasibility,
planning, or other considerations connected with construction of the building or decision making regarding the building. The
department of administrative services, on behalf of the utilities commission and the consumer advocate division of the department
of justice, shall consult with the office of the governor, appropriate legislative bodies, and the capitol planning commission.
476.11 Telephone toll connections.
Repealed by 2018 Acts, ch 1160, §32.
476.12 Rehearings before commission.
Notwithstanding the Iowa administrative procedure Act,
chapter 17A, any party, as defined in the rules and regulations promulgated by the commission as provided in
section 476.2, to a contested case before the commission may within twenty days after the issuance of the final decision apply for a rehearing.
The commission shall either grant or refuse an application for rehearing within thirty days after the filing of the application,
or may after giving the interested parties notice and opportunity to be heard and after consideration of all the facts, including
those arising since the making of the order, abrogate or modify its order. A failure by the commission to act upon the application
for rehearing within the above period shall be deemed a refusal of the application. Neither the filing of an application for
rehearing nor the granting of the application shall stay the effectiveness of an order unless the commission so directs.
[C66, 71, 73, 75, §490A.12; C77, 79, 81, §476.12]
1. Notwithstanding the Iowa administrative procedure Act, chapter 17A, the district court for Polk county or for the county in which a public utility maintains its principal place of business
has exclusive venue for the judicial review under chapter 17A of actions of the commission pursuant to rate-regulatory powers over that public utility.
2. Upon the filing of a petition for judicial review in an action referred to in subsection 1, the clerk of the district court shall notify the chief justice of the supreme court for purposes of assignment of a district
judge under section 602.1212. The judicial review proceeding shall be heard by the district judge appointed by the supreme court under section 602.1212, but in the county of venue under subsection 1.
3. Notwithstanding the Iowa administrative procedure Act, chapter 17A, if a public utility seeks judicial review of an order approving rates for the public utility, the level of rates that may
be collected, under bond and subject to refund, while the appeal is pending shall be limited to the level of the temporary
rates set by the commission, or the level of the final rates set by the commission, whichever is greater. During the period
the judicial review proceeding is pending, the commission shall retain jurisdiction to determine the rate of interest to be
paid on any refunds eventually required on rates collected during judicial review.
[C66, 71, 73, 75, §490A.13; C77, 79, 81, §476.13]
476.14 Violations stopped.
Whenever the commission shall be of the opinion that any public utility or any other person is violating
this chapter or any order of the commission, the commission may commence an action in the district court for the county in which such
violation is alleged to have occurred, to have such violation stopped and prevented by injunction, mandamus or other appropriate
remedy.
[C66, 71, 73, 75, §490A.20; C77, 79, 81, §476.14]
476.15 Extent of jurisdiction.
The jurisdiction and powers of the commission shall extend as provided in
this chapter to the utility business of public utilities operating within this state to the full extent permitted by the Constitution
and laws of the United States.
[C66, 71, 73, 75, §490A.21; C77, 79, 81, §476.15]
The commission shall include in its annual report required under
sections 7A.1 and
7A.10 among other matters, to the extent such regulation is conferred upon the commission by
this chapter, the following:
1. A complete financial report of receipts and expenditures, including list of public utilities and separately the amount of
total fees and assessments paid by each.
2. A list of the applications, subject and disposition of each docket number under this chapter, including commission fees for such docket assessed by the commission.
[C66, 71, 73, 75, §490A.22; C77, 79, 81, §476.16]
476.17 Peak-load energy conservation.
1. The commission may promulgate rules pursuant to chapter 17A which require or authorize a public utility to establish peak-load management procedures.
2. Rules of the commission shall relate to reducing or limiting the peak-load period consumption.
3. In promulgating rules under this section, the commission is not bound by decisions, rulings or orders which relate to the definitions of types or classes of customers
and which were issued by the Iowa state commerce commission prior to July 1, 1980.
476.18 Impermissible charges.
1. Public utilities subject to rate regulation are prohibited from including either directly or indirectly in their charges or
rates to customers the costs of lobbying.
2. Legal costs and attorney fees incurred by a public utility subject to rate regulation in an appeal in state or federal court
involving the validity of any action of the commission shall not be included either directly or indirectly in the public utility’s
charges or rates to customers except to the extent that recovery of legal costs and attorney fees is allowed by the commission.
The commission shall allow a public utility to recover reasonable legal costs and attorney fees incurred in the appeal. The
commission may consider the degree of success of the legal arguments of the public utility in determining the reasonable legal
costs and attorney fees to be allowed.
3. a. Public utilities subject to rate regulation are prohibited from including either directly or indirectly in their charges or
rates to customers the costs of advertising other than advertising which is required by the commission or by other state or
federal regulation. However, this subsection does not apply to a utility’s advertising which is deemed by the commission to be necessary for the utility’s customers and
which is approved by the commission. b. Every ad which is published, broadcast, or otherwise displayed or disseminated to the public by a public utility which is
to be charged to the customers of the public utility and which is not required by the commission or by other state or federal
regulation shall include a statement in the ad that the costs of the ad are being charged to the customers of the public utility.
This paragraph does not apply to a utility’s product or service that is or becomes subject to competition as determined by
the commission.
4. This section does not apply to a rural electric cooperative.
476.19 Construction of statutes.
Nothing contained in
this chapter shall be construed to invalidate any proceedings under statutes existing prior to the enactment of
this chapter; nor shall any action, litigation or appeal pending prior to the effective date of rate regulation of
this chapter be affected.
[C66, 71, 73, 75, §490A.25; C77, 79, 81, §476.19]
476.20 Disconnection limited — notice — moratorium — deposits.
1. a. A utility shall not, except in cases of emergency, discontinue, reduce, or impair service to a community, or a part of a community,
except for nonpayment of account or violation of rules and regulations, unless and until permission to do so is obtained from
the commission. b. (1) A public utility described in section 476.1, subsection 2, paragraph “c”, may enter into an agreement with the governing body of a city utility, combined city utility, city enterprise, or combined
city enterprise to discontinue water service to a property or premises if an account owed the city utility, city enterprise,
or combined city utility or city enterprise for wastewater service or services of sewer systems, storm water drainage systems,
or sewage treatment provided to that customer’s property or premises becomes delinquent pursuant to section 384.84, subsection 3. An agreement entered into under this paragraph shall not negate any obligations of a city utility, combined city utility,
city enterprise, or combined city enterprise under section 384.84. (2) A public utility that has entered into an agreement under this paragraph shall not be liable for damages related to the discontinuance
of water service under this paragraph. The customer shall be responsible for all costs associated with discontinuing and reestablishing
water service disconnected pursuant to this paragraph.
(3) The commission shall adopt rules for the discontinuance of water service under this paragraph. A public utility shall only
discontinue water service under this paragraph in accordance with the rules adopted pursuant to this subparagraph.
2. The commission shall establish rules requiring a regulated public utility furnishing gas or electricity to include in the
utility’s notice of pending disconnection of service a written statement advising the customer that the customer may be eligible
to participate in the low income home energy assistance program or weatherization assistance program administered by the department
of health and human services. The written statement shall list the address and telephone number of the local agency which
is administering the customer’s low income home energy assistance program and the weatherization assistance program. The written
statement shall also state that the customer is advised to contact the public utility to settle any of the customer’s complaints
with the public utility, but if a complaint is not settled to the customer’s satisfaction, the customer may file the complaint
with the commission. The written statement shall include the address and phone number of the commission. If the notice of
pending disconnection of service applies to a residence, the written statement shall advise that the disconnection does not
apply from November 1 through April 1 for a resident who is a “head of household”, as defined in section 422.4, and who has been certified to the public utility by the local agency which is administering the low income home energy assistance
program and weatherization assistance program as being eligible for either the low income home energy assistance program or
weatherization assistance program, and that if such a resident resides within the serviced residence, the customer should
promptly have the qualifying resident notify the local agency which is administering the low income home energy assistance
program and weatherization assistance program. The commission shall establish rules requiring that the written notice contain
additional information as it deems necessary and appropriate.
3. a. The commission shall adopt rules which shall be uniform with respect to rate-regulated public utilities furnishing gas or
electricity relating to disconnection of service. The commission shall adopt rules with respect to electric and gas utilities
subject to sections 476.1A and 476.1B that prescribe the procedures and notice requirements for the disconnection of service consistent with the rules for rate-regulated
public utilities, but such rules shall not regulate the rates of such utilities. This subsection applies to rate-regulated utilities, utilities subject to regulation under sections 476.1A and 476.1B, and to unincorporated villages which own their own distribution systems. Violations of this subsection may subject a utility to civil penalties under section 476.51. b. A qualified applicant for the low income home energy assistance program or the weatherization assistance program who is also
a “head of household”, as defined in section 422.4, subsection 6, shall be promptly certified by the local agency administering the applicant’s program to the applicant’s public utility
that the resident is a “head of household” as defined in section 422.4, subsection 6, and is qualified for the low income home energy assistance program or weatherization assistance program. Notwithstanding
subsection 1, a public utility furnishing gas or electricity shall not disconnect service from November 1 through April 1 to a residence
which has a resident that has been certified under this paragraph.
c. The rules established by the commission shall provide that a public utility furnishing gas or electricity shall not disconnect
service to a residence in which one of the heads of household is a service member deployed for military service, as defined
in section 29A.1, subsection 3, prior to a date ninety days after the end of the service member’s deployment, if the public utility is informed of the deployment.
4. A public utility which violates a provision of this section relating to the disconnection of service or which violates a rule of the commission relating to disconnection of service
is subject to civil penalties imposed by the commission under section 476.51.
5. a. The commission shall establish rules which shall be uniform with respect to rate-regulated public utilities furnishing gas
or electricity relating to deposits which may be required by the public utility for the initiation or reinstatement of service.
This subsection shall not apply to utilities subject to section 476.1A, or to municipally owned utilities which shall be governed by the provisions of section 384.84 with respect to deposits and payment plans for delinquent amounts owed. Municipally owned utilities and utilities subject
to section 476.1A shall not be subject to the commission’s rules in regard to deposits, rates and charges for the disconnection or reinstatement
of service, and payment plans for delinquent amounts owed and repayment of past due debt. Municipally owned utilities and
utilities subject to section 476.1A shall be subject to the commission’s rules in regards to payment plans made prior to the disconnection of services. (1) The deposit for a residential or commercial customer for a place which has previously received service shall not be greater
than the highest billing of service for one month for the place in the previous twelve-month period.
(2) The deposit for a residential or a commercial customer for a place which has not previously received service or for an industrial
customer shall be the customer’s projected one month’s usage for the place to be serviced as determined by the public utility
according to rules established by the commission.
b. This subsection does not prohibit a public utility from requiring payment of a customer’s past due account with the utility prior to reinstatement
of service.
c. The rules shall allow a person other than the customer to pay the customer’s deposit. Upon termination of service to such
a customer, the deposit plus accumulated interest less any unpaid utility bill of the customer, shall be reimbursed to the
person who made the deposit.
[C66, 71, 73, 75, §490A.26; C77, 79, 81, §476.20]
83 Acts, ch 127, §31; 84 Acts, ch 1131, §1; 84 Acts, ch 1273, §1; 2010 Acts, ch 1170, §4; 2011 Acts, ch 25, §143; 2011 Acts, ch 47, §9; 2014 Acts, ch 1085, §2; 2015 Acts, ch 30, §152; 2017 Acts, ch 62, §5; 2018 Acts, ch 1135, §15; 2018 Acts, ch 1160, §13; 2023 Acts, ch 19, §1174; 2023 Acts, ch 51, §3, 4; 2024 Acts, ch 1170, §369
476.21 Discrimination prohibited.
A corporation or cooperative association providing electrical or gas service shall not consider the use of renewable energy
sources by a customer as a basis for establishing discriminatory rates or charges for any service or commodity sold to the
customer or discontinue services or subject the customer to any other prejudice or disadvantage based on the customer’s use
or intended use of renewable energy sources. As used in
this section,
“renewable energy sources” includes but is not limited to solar heating, wind power and the conversion of urban and agricultural organic wastes into
methane gas and liquid fuels.
SUBCHAPTER VIALTERNATE ENERGY PRODUCTION FACILITIES
It is the policy of this state to encourage the development of alternate energy production facilities and small hydro facilities
in order to conserve our finite and expensive energy resources and to provide for their most efficient use.
1. a. “Alternate energy production facility” means any or all of the following: (1) A solar, wind turbine, electric storage unit, nuclear, waste management, resource recovery, refuse-derived fuel, agricultural
crops or residues, or woodburning facility. For purposes of this definition only, “waste management” includes a facility using plasma gasification to produce synthetic gas, either as a stand-alone fuel or for blending with
natural gas, the output of which is used to generate electricity or steam. For purposes of this definition only, “plasma gasification” means the thermal dissociation of carbonaceous material into fragments of compounds in an oxygen-starved environment.
(2) Land, systems, buildings, or improvements that are located at the project site and are necessary or convenient to the construction,
completion, or operation of the facility.
(3) Transmission or distribution facilities necessary to conduct the energy produced by the facility to users located at or near
the project site.
2. “Electric utility” means a public utility that furnishes electricity to the public for compensation.
3. “Next generating plant” means an electric utility’s assumed next coal-fired base load electric generating plant, whether planned or not, based on
current technology and undiscounted current cost.
4. a. “Small hydro facility” means any or all of the following: (1) A hydroelectric facility at a dam.
(2) Land, systems, buildings, or improvements that are located at the project site and are necessary or convenient to the construction,
completion, or operation of the facility.
(3) Transmission or distribution facilities necessary to conduct the energy produced by the facility to users located at or near
the project site.
83 Acts, ch 182, §3; 90 Acts, ch 1252, §31 – 33; 92 Acts, ch 1017, §1; 2010 Acts, ch 1061, §180; 2011 Acts, ch 25, §125; 2011 Acts, ch 77, §1; 2014 Acts, ch 1026, §143; 2024 Acts, ch 1108, §2
476.43 Rates for alternate energy production facilities.
1. Subject to section 476.44, the commission shall require electric utilities to do both of the following under terms and conditions that the commission
finds are just and economically reasonable for the electric utilities’ customers, are nondiscriminatory to alternate energy
producers and small hydro producers, and will further the policy stated in section 476.41: a. At least one of the following: (1) Own alternate energy production facilities or small hydro facilities located in this state.
(2) Enter into long-term contracts to purchase or wheel electricity from alternate energy production facilities or small hydro
facilities located in the utility’s service area.
b. Provide for the availability of supplemental or backup power to alternate energy production facilities or small hydro facilities
on a nondiscriminatory basis and at just and reasonable rates.
2. Upon application by the owner or operator of an alternate energy production facility or small hydro facility or any interested
party, the commission shall establish for the affected public utility just and economically reasonable rates for electricity
purchased under subsection 1, paragraph “a”. The rates shall be established at levels sufficient to stimulate the development of alternate energy production and small
hydro facilities in Iowa and to encourage the continuation of existing capacity from those facilities.
3. The commission may adopt individual utility or uniform statewide facility rates. The commission shall consider the following
factors in setting individual or uniform rates: a. The estimated capital cost of the next generating plant, including related transmission facilities, to be placed in service
by the electric utility serving the area.
b. The term of the contract between the electric utility and the seller.
c. A levelized annual carrying charge based upon the term of the contract and determined in a manner consistent with both the
methods and the current interest or return requirements associated with the electric utility’s new construction program.
d. The electric utility’s annual energy costs, including current fuel costs, related operation and maintenance costs, and other
energy-related costs considered appropriate by the commission.
e. External factors, including but not limited to, environmental and economic factors.
f. Other relevant factors.
g. If the commission adopts uniform statewide rates, the commission shall use representative data in lieu of utility specific
information in applying the factors listed in paragraphs “a” through “f”.
4. In the case of a utility that purchases all or substantially all of its electricity requirements, the rates established under
this section must be based on the electric utility’s current purchased power costs.
5. In lieu of the other procedures provided by this section, an electric utility and an owner or operator of an alternate energy production facility or small hydro facility may enter
into a long-term contract in accordance with subsection 1 and may agree to rates for purchase and sale transactions. A contract entered into under this subsection must be filed with the commission in the manner provided for tariffs under section 476.4.
6. This section does not require an electric utility to construct additional facilities unless those facilities are paid for by the owner
or operator of the affected alternate energy production facility or small hydro facility.
83 Acts, ch 182, §4, 7; 90 Acts, ch 1252, §34 – 37; 2003 Acts, ch 29, §2, 6; 2024 Acts, ch 1170, §369
1. The commission shall not require an electric utility to purchase or wheel electricity from an alternate energy production
facility or small hydro facility unless the facility is owned or operated by an individual, firm, partnership, corporation,
company, association, joint stock association, city, town, or county that meets both of the following: a. Is not primarily engaged in the business of producing or selling electricity, gas, or useful thermal energy other than electricity,
gas, or useful thermal energy sold solely from alternate energy production facilities or small hydro facilities.
b. Does not sell electricity, gas, or useful thermal energy to residential users other than the tenants or the owner or operator
of the facility.
2. a. An electric utility subject to this subchapter, except a utility that elects rate regulation pursuant to section 476.1A, shall not be required to own or purchase, at any one time, more than its share of one hundred five megawatts of power from
alternate energy production facilities or small hydro facilities at the rates established pursuant to section 476.43. The commission shall allocate the one hundred five megawatts based upon each utility’s percentage of the total Iowa retail
peak demand, for the year beginning January 1, 1990, of all utilities subject to this section. If a utility undergoes reorganization as defined in section 476.76, the commission shall combine the allocated purchases of power for each utility involved in the reorganization. b. Notwithstanding the one hundred five megawatt maximum, the commission may increase the amount of power that a utility is required
to own or purchase at the rates established pursuant to section 476.43 if the commission finds that a utility, including a reorganized utility, exceeds its 1990 Iowa retail peak demand by twenty
percent and the additional power the utility is required to purchase will encourage the development of alternate energy production
facilities and small hydro facilities. The increase shall not exceed the utility’s increase in peak demand multiplied by the
ratio of the utility’s share of the one hundred five megawatt maximum to its 1990 Iowa retail peak demand.
83 Acts, ch 182, §5; 90 Acts, ch 1252, §38; 92 Acts, ch 1163, §97; 92 Acts, ch 1166, §1; 2003 Acts, ch 29, §3, 6; 2008 Acts, ch 1032, §106; 2014 Acts, ch 1026, §143; 2018 Acts, ch 1026, §145; 2024 Acts, ch 1170, §369
476.44A Trading of credits.
The commission may establish or participate in a program to track, record, and verify the trading of credits or attributes
relating to electricity generated from alternate energy production facilities or renewable energy sources among electric generators,
utilities, and other interested entities, within this state and with similar entities in other states.
2008 Acts, ch 1128, §14, 15; 2008 Acts, ch 1133, §6, 9; 2008 Acts, ch 1191, §129; 2024 Acts, ch 1170, §369
476.45 Exemption from excess capacity.
Capacity of an alternate energy production facility or small hydro facility, that is owned or purchased by an electric utility,
shall not be included in a calculation of an electric utility’s excess generating capacity for ratemaking purposes.
476.46 Alternate energy revolving loan program.
1. The Iowa energy center created under section 15.120 shall establish and administer an alternate energy revolving loan program to encourage the development of alternate energy
production facilities and small hydro facilities within the state.
2. a. An alternate energy revolving loan fund is created in the office of the treasurer of state to be administered by the Iowa
energy center. b. The fund shall include moneys appropriated or otherwise directed to the fund.
c. Moneys in the fund shall be used to provide loans for the construction of alternate energy production facilities or small
hydro facilities as defined in section 476.42.
d. (1) A gas or electric utility that is not required to be rate-regulated shall not be eligible for a loan under this section. However, gas and electric utilities not required to be rate-regulated shall be eligible for loans from moneys remitted to
the fund. Such loans shall be limited to a maximum of five hundred thousand dollars per applicant and shall be limited to
one loan every two years. (2) A facility shall be eligible for no more than one million dollars in loans outstanding at any time under this program.
e. (1) Each loan shall be for a period not to exceed twenty years, shall bear no interest, and shall be repayable to the fund created
under this section in installments as determined by the Iowa energy center. The interest rate upon delinquent payments shall accelerate immediately
to the current legal usury limit. (2) Any loan made pursuant to this program shall become due for payment upon sale of the facility for which the loan was made.
(3) Interest on the fund shall be deposited in the fund.
3. The Iowa energy center shall not initiate any new loans under this section after June 30, 2021.
4. Loan payments received under this section on or after July 1, 2021, and any other moneys in the fund on or after July 1, 2021, shall be deposited in the energy infrastructure
revolving loan fund created in section 476.46A.
96 Acts, ch 1196, §11; 2002 Acts, ch 1109, §4; 2008 Acts, ch 1126, §31, 33; 2009 Acts, ch 173, §35, 36; 2017 Acts, ch 169, §42, 43, 49; 2018 Acts, ch 1026, §146; 2019 Acts, ch 59, §173; 2021 Acts, ch 177, §31, 32
476.46A Energy infrastructure revolving loan program.
1. a. An energy infrastructure revolving loan fund is created in the office of the treasurer of state and shall be administered
by the Iowa energy center established in section 15.120. b. The fund may be administered as a revolving fund and may consist of any moneys appropriated by the general assembly for purposes
of this section and any other moneys that are lawfully directed to the fund.
c. Moneys in the fund shall be used to provide financial assistance for the development and construction of energy infrastructure,
including projects that support electric or gas generation transmission, storage, or distribution; electric grid modernization;
energy-sector workforce development; emergency preparedness for rural and underserved areas; the expansion of biomass, biogas,
and renewable natural gas; innovative technologies; and the development of infrastructure for alternative fuel vehicles.
d. Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure
for the purposes designated until the close of the succeeding fiscal year.
2. a. The Iowa energy center shall establish and administer an energy infrastructure revolving loan program to encourage the development
of energy infrastructure within the state. b. An individual, business, rural electric cooperative, or municipal utility located and operating in this state shall be eligible
for financial assistance under the program. With the approval of the Iowa energy center governing board established under
section 15.120, subsection 2, the economic development authority shall determine the amount and the terms of all financial assistance awarded to an individual,
business, rural electric cooperative, or municipal utility under the program. All agreements and administrative authority
shall be vested in the Iowa energy center governing board.
c. The economic development authority may use not more than five percent of the moneys in the fund at the beginning of each fiscal
year for purposes of administrative costs, marketing, technical assistance, and other program support.
3. For the purposes of this section: a. “Energy infrastructure” means land, buildings, physical plant and equipment, and services directly related to the development of projects used for,
or useful for, electricity or gas generation, transmission, storage, or distribution.
b. “Financial assistance” means the same as defined in section 15.102.
476.47 Alternate energy purchase programs.
1. Beginning January 1, 2004, an electric utility, whether or not rate-regulated under this chapter, shall offer an alternate energy purchase program to customers, based on energy produced by alternate energy production facilities
in Iowa.
2. The commission shall require electric utilities to file plans for alternate energy purchase programs offered pursuant to this section. a. Rate-regulated electric utilities shall file plans for alternate energy purchase programs that allow customers to contribute
voluntarily to the development of alternate energy in Iowa, and shall file tariffs as required by the commission by rule.
b. Electric utilities that are not rate-regulated shall offer alternate energy purchase programs at rates determined by their
governing authority, and shall file tariffs with the commission for informational purposes only.
3. The electric utility shall notify consumers of its alternate energy purchase program and any proposed modifications to such
program at least sixty days prior to implementation of the program or any modification.
4. For purposes of this section, an electric utility may base its program on energy produced by alternate energy production facilities located outside of
Iowa under any of the following circumstances: a. The energy is purchased by the electric utility pursuant to a contract in effect prior to July 1, 2001, and continues until
the expiration of the contract, including any options to renew that are exercised by the electric utility.
b. The electric utility has a financial interest, as of July 1, 2001, in the alternate energy production facility that is located
outside of Iowa, or in an entity that has a financial interest in an alternate energy production facility located outside
of Iowa.
c. The energy is purchased by an electric utility that is not rate-regulated and that is required to purchase all of its electric
power requirements from a single supplier that is physically located outside of Iowa.
5. This section shall not apply to non-rate-regulated electric utilities physically located outside of Iowa that serve Iowa customers.
6. Any consumer-owned utility may apply to the commission for a waiver under this section, and the commission, for good cause, may grant the waiver.
476.48 Small wind innovation zone program.
1. Definitions.
For purposes of this section, unless the context otherwise requires: a. “Electric utility” means a public utility that furnishes electricity to the public for compensation and which enters into a model interconnection
agreement with the owner of a small wind energy system as provided in subsection 4.
b. “Small wind energy system” means a wind energy conversion system that collects and converts wind into energy to generate electricity which has a nameplate
generating capacity of one hundred kilowatts or less.
c. “Small wind innovation zone” means a political subdivision of this state, including but not limited to a city, county, township, school district, community
college, area education agency, institution under the control of the state board of regents, or any other local commission,
association, or tribal council which adopts, or is encompassed within a local government which adopts, the model ordinance
as provided in subsection 3.
2. Program established.
a. The utilities commission shall establish and administer a small wind innovation zone program to optimize local, regional,
and state benefits from wind energy and to facilitate and expedite interconnection of small wind energy systems with electric
utilities throughout this state. Pursuant to the program, the owner of a small wind energy system located within a small wind
innovation zone desiring to interconnect with an electric utility shall benefit from a streamlined application process, may
utilize a model interconnection agreement, and can qualify under a model ordinance.
b. A political subdivision seeking to be designated a small wind innovation zone shall apply to the commission upon a form developed
by the commission. The commission shall approve an application which documents that the applicable local government has adopted
the model ordinance or is in the process of amending an existing zoning ordinance to comply with the model ordinance and that
an electric utility operating within the political subdivision has agreed to utilize the model interconnection agreement to
contract with the small wind energy system owners who agree to its terms.
3. Model ordinance.
The Iowa league of cities, the Iowa association of counties, the Iowa environmental council, the Iowa wind energy association,
and representatives from the utility industry shall consult and develop a model ordinance to be offered on both the Iowa league
of cities’ and the Iowa association of counties’ internet sites and made available for use by a local government which constitutes
or encompasses a political subdivision that is applying for designation as a small wind innovation zone. A local government
adopting the model ordinance shall establish an expedited approval process with regard to small wind energy systems in compliance
with the ordinance in order to qualify as a small wind innovation zone.
4. Model interconnection agreement.
The utilities commission shall develop a model interconnection agreement by June 1, 2010, for utilization within a small wind
innovation zone by the owner of a small wind energy system seeking to interconnect with an electric utility. The interconnection
agreement shall ensure that the energy produced can be safely interconnected with the utility without causing any adverse
or unsafe consequences and is consistent with the electric utility’s resource needs. The commission shall establish by rule
procedures for modification of the model interconnection agreement upon mutually agreeable terms and conditions in unique
or unusual circumstances, subject to commission approval. Electric utilities shall consider adopting the model interconnection
agreement.
5. Tax credit incentives.
The owner of a small wind energy system operating within a small wind innovation zone shall qualify for the renewable energy
tax credit pursuant to chapter 476C.
476.49 Billing methods for distributed generation customers.
1. Definitions.
For purposes of this section, unless the context otherwise requires: a. “Alternate energy production facility” means the same as defined in section 476.42.
b. “Distributed generation customer” means a person other than a public utility that interconnects an eligible distributed generation facility to an electric
distribution system.
c. “Distributed generation facility” means an alternative energy production facility or a small hydro facility as defined in section 476.42.
d. “Electric utility” means a public utility that furnishes electricity to the public for compensation that is required to be rate-regulated under
this chapter.
e. “Eligible distributed generation facility” means a distributed generation facility that elects a billing method pursuant to subsection 3, and to which all of the following apply: (1) The facility is located behind a customer’s electricity meter.
(2) The facility is interconnected to the electric utility distribution system.
(3) The facility has an aggregate nameplate capacity less than or equal to one megawatt alternating current.
(4) The facility has a capability to produce no more than one hundred ten percent of the customer’s annual electricity usage.
(5) The facility’s generating capacity and associated energy is intended to serve only the on-site electric requirements of the
customer.
f. “Inflow-outflow billing” means a billing method for an eligible distributed generation facility whereby the net metering interval is measured hourly
or subhourly, and a distributed generation customer makes payment and is credited as provided in subsection 3, paragraph “b”.
g. “Net billing” means a billing method for an eligible distributed generation facility whereby the net metering interval is equal to a monthly
billing period, and a distributed generation customer makes payment and is credited as provided in subsection 3, paragraph “a”.
h. “Net metering” means a single meter monitoring only the net amount of electricity delivered to and exported by an eligible distributed generation
facility, which electricity offsets electricity that would otherwise be purchased by a distributed generation customer from
the electric utility.
i. “Statewide distributed generation penetration” means the aggregate nameplate capacity of all eligible distributed generation facilities of electric utilities as a percentage
of the aggregate peak demand of all electric utilities.
2. Publication of data.
The commission shall collect data on the nameplate capacity of eligible distributed generation facilities, calculate the statewide
distributed generation penetration percentage, and publish the data and penetration rate on an annual basis on the commission’s
internet site.
3. Billing methods.
An electric utility shall file either a net billing or an inflow-outflow billing tariff with the commission to govern the
billing and crediting of eligible distributed generation facilities interconnected with the electric distribution system of
an electric utility as follows: a. (1) An electric utility choosing to utilize the net billing method shall file a tariff with the commission whereby a distributed
generation customer pays all applicable charges, including applicable rider charges approved by the commission and applied
to non-net metering customers, for the electricity delivered to the customer over the net metering interval. A distributed
generation customer shall be credited in kilowatt-hours for energy exported to the electric utility over the net metering
interval. A distributed generation customer may use the kilowatt-hour credits to offset kilowatt-hours in future billing periods.
The offset shall include any applicable volumetric rider charges approved by the commission and applied to non-net metering
customers. (2) Any excess kilowatt-hours remaining at the end of a twelve-month period shall be cashed out at the electric utility’s avoided
cost rate with the funds from the cash out divided evenly between the customer and the electric utility’s low-income home
energy assistance program. The distributed generation customer shall choose either a January or April cash out date at the
time of interconnection.
(3) Net billing shall not be limited in any way based on a customer’s peak demand.
(4) Net billing shall not include any fees or charges that are not charged to customers in the same rate class that are not net
billing customers.
b. (1) An electric utility choosing to utilize the inflow-outflow billing method shall file a tariff with the commission whereby
a distributed generation customer pays all applicable charges, including applicable rider charges approved by the commission
and applied to non-net metering customers, for the electricity delivered by the electric utility over the net metering interval.
The distributed generation customer is credited in dollars at the outflow purchase rate for energy exported to the utility
over the net metering interval. The distributed generation customer may use the dollar credits to offset any applicable volumetric
charges, including applicable rider charges, billed on a kilowatt-hour basis. (2) The electric utility shall select an hourly or subhourly metering interval that balances the benefits of accurately measuring
power flows in each direction with the cost of collecting, storing, and processing meter data.
(3) Inflow-outflow billing shall not be limited in any way based on a customer’s peak demand.
(4) Inflow-outflow billing shall not include any fees or charges that are not charged to customers in the same rate class that
are not inflow-outflow customers.
(5) Prior to the commission’s approval of a value of solar methodology and rate, the outflow purchase rate for an eligible distributed
generation facility shall be the applicable retail volumetric rate, including applicable rider charges approved by the commission
and applied to non-net metered customers. The outflow purchase rate for any distributed generation facility will continue
to be the applicable retail volumetric rate for a term of twenty years. Any change in ownership of such eligible facility,
or adoption and use by the electric utility of a value-of-solar rate pursuant to subsection 4, shall not impact the outflow purchase rate for the distributed generation facility during the twenty-year term.
4. Value of solar methodology.
If the commission is petitioned by an electric utility after July 1, 2027, or when the statewide distributed generation penetration
rate is equal to five percent, whichever is earlier, the commission shall initiate a proceeding to develop a value of solar
methodology and rate for eligible distributed generation facilities. The value of solar rate shall be determined through the
use of a methodology that calculates the benefits and costs an eligible distributed generation facility provides to, or imposes
on, the electric system. The value of solar methodology shall be applied independently to each electric utility. When the
commission determines the value of solar methodology, it shall determine if there is a need for separate methodologies for
other distributed generation technologies or if it can account for the values of other technologies with modifications to
the value of solar methodology. a. In establishing the methodology, the commission shall initiate a formal proceeding. The value of solar methodology shall be
determined through a study conducted by an independent third party and overseen by the commission. Interested parties shall
have the opportunity to comment and offer testimony on any proposed value of solar methodology before it is adopted by the
commission.
b. The benefits and costs in a value of solar methodology shall include all of the following factors as appropriate and supported
by known and measurable evidence: (1) The cost of energy and fuel.
(2) Generation capacity and reserves.
(3) Transmission capacity and charges.
(4) Distribution capacity.
(5) Transmission and distribution line losses.
(6) Fixed and variable costs associated with plant operations and maintenance.
(7) Environmental compliance costs.
(8) Integration costs.
(9) Grid support services.
(10) Other factors, based on known and measurable evidence of the cost or benefit of solar operations to the electric utility’s
electric system.
c. Upon approval of the value of solar methodology, the outflow purchase rate shall be limited to either a five percent increase
or decrease from the previous outflow purchase rate. The value of solar rate shall be recomputed annually and reflected in
the outflow purchase rate, limited to a five percent increase or decrease from the previous outflow purchase rate. If the
utility switches from a net billing method to an inflow-outflow billing method after the value of solar methodology is approved,
then the previous purchase rate shall be the applicable retail volumetric rate including all applicable rider charges approved
by the commission.
d. The commission shall consider, review, and update as appropriate the value of solar methodology at least every three years
after completion of the initial methodology.
e. After the commission has approved a value of solar methodology and rate, the outflow purchase rate shall be set using the
value of solar methodology. The outflow purchase rate for such a facility will be fixed for a term of twenty years regardless
of any subsequent changes in the electric utility’s outflow purchase rate or changes in ownership of such facility.
5. Forfeiture of outflow purchase credits.
Any outflow purchase credits remaining at the end of an annual period shall be forfeited to the rider used by the electric
utility pursuant to subsection 7. The distributed generation customer shall choose either a January or April date at the time of interconnection for the purposes
of determining the annual period.
6. Proposal of separate rate classes.
An electric utility shall not propose treating distributed generation customers as a separate rate class in a general rate
case prior to the commission’s approval of a value of solar methodology or prior to July 1, 2027, whichever is earlier. If
an electric utility chooses to propose a separate rate class for distributed generation customers in a future proceeding,
such a proposal shall be approved or disapproved in accordance with section 476.6 and accompanying rules.
7. Riders.
An electric utility shall be allowed to recover the amounts credited to an eligible distributed generation customer for outflow
purchases pursuant to a rider. To the extent an electric utility does not have such a rider, the commission shall allow an
electric utility to establish a rider to recover such amounts. For purposes of this subsection, “rider” includes a fuel or energy adjustment clause.
8. Preexisting tariff.
Any customer utilizing a net billing tariff approved by the commission on or before the availability of inflow-outflow billing
may continue to receive electric service pursuant to the preexisting tariff for the remaining duration of the contract regardless
of any subsequent changes in ownership of such facility.
9. Use of funds collected through alternate energy purchase programs.
An electric utility may use funds collected pursuant to section 476.47 to offset any amounts that would otherwise be recovered through a rider resulting from outflow purchases of excess energy
produced by an eligible distributed generation facility.
10. Reasonableness of net billing and inflow-outflow billing.
When the statewide net metering penetration level reaches ten percent, the commission shall determine whether the net billing
and inflow-outflow billing methods are still reasonable and shall make recommendations to the general assembly. Regardless
of the commission’s recommendations, existing facilities shall continue to be eligible for the net billing or inflow-outflow
billing tariff in place at the time of installation and for twenty years of operation thereafter.
476.50 Reserved.
476.52 Management efficiency.
1. It is the policy of this state that a public utility shall operate in an efficient manner.
2. If the commission determines in the course of a proceeding conducted under section 476.3 or 476.6 that a utility is operating in an inefficient manner, or is not exercising ordinary, prudent management, or in comparison
with other utilities in the state the commission determines that the utility is performing in a less beneficial manner than
other utilities, the commission may reduce the level of profit or adjust the revenue requirement for the utility to the extent
the commission believes appropriate to provide incentives to the utility to correct its inefficient operation.
3. If the commission determines in the course of a proceeding conducted under section 476.3 or 476.6 that a utility is operating in such an extraordinarily efficient manner that tangible financial benefits result to the ratepayer,
the commission may increase the level of profit or adjust the revenue requirement for the utility.
4. In making its determination under this section, the commission may also consider a public utility’s pursuit of energy efficiency programs. The commission shall adopt rules
for determining the level of profit or the revenue requirement adjustment that would be appropriate. The commission shall
also adopt rules establishing a methodology for an analysis of a utility’s management efficiency.
476.53 Electric generating and transmission facilities.
1. It is the intent of the general assembly to attract the development of electric power generating and transmission facilities
within the state in sufficient quantity to ensure reliable electric service to Iowa consumers and provide economic benefits
to the state. It is also the intent of the general assembly to encourage rate-regulated public utilities to consider altering
existing electric generating facilities, where reasonable, to manage carbon emission intensity in order to facilitate the
transition to a carbon-constrained environment.
2. a. The general assembly’s intent with regard to the development of electric power generating and transmission facilities, or
the significant alteration of an existing generating facility, as provided in subsection 1, shall be implemented in a manner that is cost-effective and compatible with the environmental policies of the state, as
expressed in this Title XI. b. The general assembly’s intent with regard to the reliability of electric service to Iowa consumers, as provided in subsection 1, shall be implemented by considering the diversity of the types of fuel used to generate electricity, the availability and
reliability of fuel supplies, and the impact of the volatility of fuel costs.
3. a. The commission shall specify in advance, by order issued after a contested case proceeding, the ratemaking principles that
will apply when the costs of the electric power generating facility or alternate energy production facility are included in
regulated electric rates whenever a rate-regulated public utility does any of the following: (1) (a) Files an application pursuant to section 476A.3 to construct in Iowa a baseload electric power generating facility with a nameplate generating capacity equal to or greater
than three hundred megawatts or a combined-cycle electric power generating facility, or an alternate energy production facility
as defined in section 476.42, or to significantly alter an existing generating facility. For purposes of this subparagraph, a significant alteration of
an existing generating facility must, in order to qualify for establishment of ratemaking principles, fall into one of the
following categories: (i) Conversion of a coal fueled facility into a gas fueled facility.
(ii) Addition of carbon capture and storage facilities at a coal fueled facility.
(iii) Addition of gas fueled capability to a coal fueled facility, in order to convert the facility to one that will rely primarily
on gas for future generation.
(iv) Addition of a biomass fueled capability to a coal fueled facility.
(v) Repowering of an alternate energy production facility. For purposes of this subparagraph subdivision, “repowering” shall mean either the complete dismantling and replacement of generation equipment at an existing project site, or the installation
of new parts and equipment to an existing alternate energy production facility in order to increase energy production, reduce
load, increase service capacity, improve project reliability, or extend the useful life of the facility.
(b) With respect to a significant alteration of an existing generating facility, an original facility shall not be required to
be either a baseload or a combined-cycle facility. Only the incremental investment undertaken by a utility under subparagraph
division (a), subparagraph subdivision (i), (ii), (iii), or (iv) shall be eligible to apply the ratemaking principles established
by the order issued pursuant to paragraph “e”. Facilities for which advanced ratemaking principles are obtained pursuant to this section shall not be subject to a subsequent commission review pursuant to section 476.6, subsection 19, to the extent that the investment has been considered by the commission under this section. To the extent an eligible utility has been authorized to make capital investments subject to section 476.6, subsection 19, such investments shall not be eligible for ratemaking principles pursuant to this section.
(2) Leases or owns in Iowa, in whole or in part, a new baseload electric power generating facility with a nameplate generating
capacity equal to or greater than three hundred megawatts or a combined-cycle electric power generating facility, or a new
alternate energy production facility as defined in section 476.42. b. In determining the applicable ratemaking principles, the commission shall not be limited to traditional ratemaking principles
or traditional cost recovery mechanisms. Among the principles and mechanisms the commission may consider, the commission has
the authority to approve ratemaking principles proposed by a rate-regulated public utility that provide for reasonable restrictions
upon the ability of the public utility to seek a general increase in electric rates under section 476.6 for at least three years after the generating facility begins providing service to Iowa customers.
c. In determining the applicable ratemaking principles, the commission shall make the following findings: (1) The rate-regulated public utility has in effect a commission-approved energy efficiency plan as required under section 476.6, subsection 15.
(2) The rate-regulated public utility has demonstrated to the commission that the public utility has considered other sources
for long-term electric supply and that the facility or lease is reasonable when compared to other feasible alternative sources
of supply.
d. The applicable ratemaking principles shall be determined in a contested case proceeding, which proceeding may be combined
with the proceeding for issuance of a certificate conducted pursuant to chapter 476A.
e. The order setting forth the applicable ratemaking principles shall be issued prior to the commencement of construction or
lease of the facility.
f. Following issuance of the order, the rate-regulated public utility shall have the option of proceeding according to either
of the following: (1) Withdrawing its application for a certificate pursuant to chapter 476A.
(2) Proceeding with the construction or lease of the facility.
g. Notwithstanding any provision of this chapter to the contrary, the ratemaking principles established by the order issued pursuant to paragraph “e” shall be binding with regard to the specific electric power generating facility in any subsequent rate proceeding.
4. The utilities commission and the consumer advocate may employ additional temporary staff, or may contract for professional
services with persons who are not state employees, as the commission and the consumer advocate deem necessary to perform required
functions as provided in this section, including but not limited to review of power purchase contracts, review of emission plans and budgets, and review of ratemaking
principles proposed for construction or lease of a new generating facility. Beginning July 1, 2002, there is appropriated
out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the commission
and the consumer advocate to hire additional staff and contract for services under this section. The costs of the additional staff and services shall be assessed to the utilities pursuant to the procedure in section 476.10 and section 475A.6.
83 Acts, ch 127, §36, 50; 2001 Acts, 1st Ex, ch 4, §12, 36; 2002 Acts, 2nd Ex, ch 1003, §31, 35; 2003 Acts, ch 29, §5, 6; 2003 Acts, ch 159, §2 – 4; 2004 Acts, ch 1101, §67; 2010 Acts, ch 1176, §2, 3; 2010 Acts, ch 1193, §55, 69, 80; 2013 Acts, ch 30, §113; 2015 Acts, ch 29, §61; 2015 Acts, ch 138, §46, 161, 162; 2018 Acts, ch 1135, §18; 2018 Acts, ch 1160, §15; 2024 Acts, ch 1170, §369
476.53A Renewable electric power generation.
It is the intent of the general assembly to encourage the development of renewable electric power generation. It is also the
intent of the general assembly to encourage the use of renewable power to meet local electric needs and the development of
transmission capacity to export wind power generated in Iowa.
476.54 Delayed payment charges.
A public utility shall not apply delayed payment charges on a customer’s account if the scheduled payment was made by the
customer within twenty days from the date the billing was sent to the customer. Delayed payment charges on a customer’s account
shall not exceed one and one-half percent per month of the past-due amount.
This section shall not apply to telecommunications service providers registered pursuant to
section 476.95A.
476.55 Complaint of antitrust activities.
1. An application for new or changed rates, charges, schedules, or regulations filed under this chapter, or an application for a certificate or an amendment to a certificate submitted under chapter 476A, by an electric transmission line utility or a gas pipeline utility or a subsidiary of either shall not be approved by the
commission if, upon complaint by an Iowa electric or gas utility, the commission finds activities which create or maintain
a situation inconsistent with antitrust laws and the policies which underlie them. The commission may grant the rate or facility
certification request once it determines that those activities which led to the antitrust complaint have been eliminated.
However, this subsection does not apply to an application for new or changed rates, charges, schedules, or regulations after the expiration of the
ten-month limitation and applicable extensions.
2. a. Notwithstanding section 476.1D, the commission may receive a complaint from a local exchange carrier that another local exchange carrier has engaged in
an activity that is inconsistent with antitrust laws and the policies which underlie them. For purposes of this subsection, “local exchange carrier” means the same as defined in section 476.96, Code 2017, and includes a city utility authorized pursuant to section 388.2 to provide local exchange services. If, after notice and opportunity for hearing, the commission finds that a local exchange
carrier has engaged in an activity that is inconsistent with antitrust laws and the policies which underlie them, the commission
may order any of the following: (1) The local exchange carrier to adjust retail rates in an amount sufficient to correct the antitrust activity.
(2) The local exchange carrier to pay any costs incurred by the complainant for the pursuit of the complaint.
(3) The local exchange carrier to pay a civil penalty.
(4) Either the local exchange carrier or the complainant to pay the costs of the complaint proceeding before the commission, and
the other party’s reasonable attorney fees.
b. This subsection shall not be construed to modify, restrict, or limit the right of a person to bring a complaint under any other provision
of this chapter.
83 Acts, ch 127, §38; 2005 Acts, ch 9, §2; 2011 Acts, ch 25, §143; 2020 Acts, ch 1063, §265; 2024 Acts, ch 1170, §369
476.56 Energy costs provided.
A gas or electric public utility shall provide, upon the request of a person who states in writing that the person is an owner
of real property, or an interested prospective purchaser or renter of the property, which is or has been receiving gas or
electric service from the public utility, the annual gas or electric energy costs for the property.
476.57 Limitations on use of ADAD equipment — penalty.
Repealed by 2018 Acts, ch 1160, §32.
476.58 Safety of distributed generation facilities — disconnection device required — rules.
1. For purposes of this section: a. “Disconnection device” means a lockable visual disconnect or other disconnection device capable of disconnecting and de-energizing the residual
voltage in a distributed generation facility.
b. “Distributed generation facility” means any of the following: (1) A cogeneration facility or a small power production facility that is a qualifying facility under 18 C.F.R. pt. 292, subpt. B, used by an interconnection customer to generate electricity that operates in parallel with the electric distribution system,
and that typically includes an electric generator and the equipment required to interconnect safely with the electric distribution
system or local electric power system.
(2) An alternate energy production facility as defined in section 476.42.
c. “Electric distribution system” means the facilities and equipment owned and operated by an electric utility that are used to transmit electricity to ultimate
usage points from interchanges with higher voltage transmission networks which transport bulk power over long distances and
that generally operate at less than one hundred kilovolts of electricity.
d. “Electric meter” means a device used by an electric utility that measures and registers the integral of an electrical quantity with respect
to time.
e. “Electric utility” means a public utility that furnishes electricity to the public for compensation.
f. “Interconnection customer” means a person that interconnects a distributed generation facility to an electric distribution system.
2. Consistent with the commission’s safety jurisdiction pursuant to section 476.1, the commission shall adopt rules pursuant to chapter 17A relating to the safe installation and operation of interconnections between distributed generation facilities and electric
distribution systems. The rules shall include but not be limited to the following: a. For installations placed in service on or after July 1, 2015, a requirement that a disconnection device be installed at a
location that is easily visible and adjacent to an interconnection customer’s electric meter. For installations placed in
service prior to July 1, 2015, a requirement that an interconnection customer provide and attach a permanent placard at the
electric meter that clearly identifies the presence and location of disconnection devices for distributed generation facilities
on the property.
b. A requirement that interconnection customers notify local paid or volunteer fire departments of the location of distributed
generation facilities and associated disconnection devices upon completion of installation and procedures for such notifications.
c. Procedures for electric utilities to deny or disconnect service for safety reasons to a person who does not comply with rules
adopted pursuant to this subsection.
3. Procedures and requirements provided in rules adopted pursuant to subsection 2 shall apply to all electric utilities and all interconnection customers in this state. However, only those rule provisions
concerning interconnections between distributed generation facilities and electric distribution systems and safety issues
shall apply to utilities over which the commission’s jurisdiction is limited by section 476.1A or 476.1B.
4. This section shall not be construed to expand the commission’s jurisdiction over a utility over which the commission’s jurisdiction is
limited by section 476.1A or 476.1B. This section shall not be construed to authorize the commission to require that an installation or connection of a distributed generation
facility, disconnection device, or interconnection between a distributed generation facility and an electric distribution
system be performed by a licensed electrician, installer, or professional engineer. This section shall not be construed to require inspection of a distributed generation facility, disconnection device, or interconnection
between a distributed generation facility and an electric distribution system pursuant to chapter 103.
476.59 and 476.60 Reserved.
SUBCHAPTER XCUSTOMER CONTRIBUTION FUND
476.66 Customer contribution fund.
1. The utilities commission shall adopt rules which shall require each electric and gas public utility to establish a fund whose
purposes shall include the receiving of contributions to assist the utility’s low-income customers with weatherization measures
to improve energy efficiency related to winter heating and summer cooling, and to supplement the energy assistance received
under the federal low-income home energy assistance program for the payment of winter heating electric or gas utility bills.
2. The rules shall require each utility to periodically notify its customers of the availability and purpose of the fund and
to provide them with forms on which they can authorize the utility to bill their contribution to the fund on a monthly basis.
3. The rules shall permit the fund to accept matching funds from persons or organizations who wish to provide assistance for
customers of the utility.
4. The utility may be reimbursed by the fund for the administrative costs of the billings, disbursements, notices to customers,
and financial recordkeeping. However, such reimbursement shall not exceed five percent of the total revenues collected.
5. The utility shall establish a board or committee to determine the appropriate distribution of the funds. The board or committee
shall include representatives from community or regional organizations which are active in assisting citizens with payment
of their winter heating bills.
6. The rules established by the utilities commission shall require an annual report to be filed for each fund. The utilities
commission shall compile an annual statewide report of the fund results. The department of health and human services shall
prepare an annual report of the unmet need for energy assistance and weatherization. Both reports shall be submitted to the
appropriations committees of the general assembly on the first day of the following session.
7. Existing programs to receive customer contributions established by public utilities shall be construed to meet the requirements
of this section. Such plans shall be subject to review by the utilities commission.
88 Acts, ch 1175, §3; 92 Acts, ch 1155, §1; 2002 Acts, ch 1119, §177; 2023 Acts, ch 19, §1176; 2024 Acts, ch 1170, §369
476.67 through 476.70 Reserved.
SUBCHAPTER XIPUBLIC UTILITY AFFILIATES
It is the intent of the general assembly that a public utility should not directly or indirectly include in regulated rates
or charges any costs or expenses of an affiliate engaged in any business other than that of utility business unless the affiliate
provides goods or services to the public utility. The costs that are included should be reasonably necessary and appropriate
for utility business. It is also the intent of the general assembly that a public utility should only provide nonutility services
in a manner that minimizes the possibility of cross-subsidization or unfair competitive advantage.
1. “Affiliate” means a party that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with a rate-regulated public utility.
2. “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of
an enterprise through ownership, by contract or otherwise.
3. “Nonutility service” includes the sale, lease, or other conveyance of commercial and residential gas or electric appliances, interior lighting
systems and fixtures, or heating, ventilating, or air conditioning systems and component parts or the servicing, repair, or
maintenance of such equipment.
4. “Public utility” means a rate-regulated public utility providing electric, gas, water, sanitary sewage, or storm water drainage service, or
any combination thereof.
5. “Utility business” means the generation or transmission of electricity or furnishing of gas or furnishing electricity to the public for compensation.
476.73 Affiliate records.
1. Access to records.
Every public utility and affiliate through the public utility shall provide the commission with access to books, records,
accounts, documents, and other data and information which the commission finds necessary to effectively implement and effectuate
the provisions of this chapter.
2. Separate records.
The commission may require affiliates of a public utility to keep separate records and the commission may provide for the
examination and inspection of the books, accounts, papers, and records, as may be necessary to enforce this chapter.
3. Allocation permitted.
The commission may inquire as to and prescribe, for ratemaking purposes, the allocation of capitalization, earnings, debts,
and expenses related to ownership, operation, or management of affiliates.
476.74 Affiliate information required to be filed.
1. Goods and services.
All contracts or arrangements providing for the furnishing or receiving of goods and services including but not limited to
the furnishing or receiving of management, supervisory, construction, engineering, accounting, legal, financial, marketing,
data processing, or similar services made or entered into on or after July 1, 1989, between a public utility and any affiliate
shall be filed annually with the commission.
2. Sales, purchases, and leases.
All contracts or arrangements for the purchase, sale, lease, or exchange of any property, right, or thing made or entered
into on or after July 1, 1989, between a public utility and any affiliate shall be filed annually with the commission.
3. Loans.
All contracts or arrangements providing for any loan of money or an extension or renewal of any loan of money or any similar
transaction made or entered into on or after July 1, 1989, between a public utility and any affiliate, whether as guarantor,
endorser, surety, or otherwise, shall be filed annually with the commission.
4. Verified copies required.
Every public utility shall file with the commission a verified copy of the contract or arrangement referred to in this section, or a verified summary of the unwritten contract or arrangement, and also of all the contracts and arrangements or a verified
summary of the unwritten contracts or arrangements, whether written or unwritten, entered into prior to July 1, 1989, and
in force and effect at that time. Any contract or agreement determined by the commission to be a confidential record pursuant
to section 22.7 shall be returned to the public utility filing the confidential record within sixty days after the contract or agreement
is filed.
5. Exemption.
The provisions of this section requiring filing of contracts or agreements with the commission shall not apply to transactions with an affiliate where the
amount of consideration involved is not in excess of two hundred fifty thousand dollars. However, regularly recurring payments
under a general or continuing arrangement that aggregate a greater annual amount shall not be broken down into a series of
transactions to come within this exemption. In any proceeding involving the rates, charges, or practices of the public utility,
the commission may exclude from the accounts of the public utility any unreasonable payment or compensation made pursuant
to any contract or arrangement that is not required to be filed under this subsection.
6. Continuing jurisdiction.
The commission shall have the same jurisdiction over modifications or amendments of contracts or arrangements in this section as it has over the original contracts or arrangements. Any modification or amendment of contracts or arrangements shall also
be filed annually with the commission.
7. Sanction.
For ratemaking purposes, the commission may exclude the payment or compensation to an affiliate or adjust the revenue received
from an affiliate associated with any contract or arrangement required to be filed with the commission if the contract or
arrangement is not so filed.
8. Alternative information.
The commission shall consult with other state and federal regulatory agencies for the purpose of eliminating duplicate or
conflicting filing requirements and may adopt rules which provide that comparable information required to be filed with other
state or federal regulatory agencies may be accepted by the commission in lieu of information required by this section.
9. Reasonableness required.
In any proceeding, whether upon the commission’s own motion or upon application or complaint involving the rates, charges,
or practices of any public utility, the commission, for ratemaking purposes may exclude from the accounts of the public utility
or adjust any payment or compensation related to any transaction with an affiliate for any services rendered or for any property
or service furnished or received, as described in this section, under contracts or arrangements with an affiliate unless and upon inquiry the public utility shall establish the reasonableness
of the payment or compensation.
10. Exemption by rule or waiver.
The commission may adopt rules which exempt any public utility or class of public utility or class of contracts or arrangements
from this section or waive the requirements of this section if the commission finds that the exemption or waiver is in the public interest.
The commission may periodically retain a nationally or regionally recognized independent auditing firm to conduct an audit
of the transactions between a public utility and its affiliates. An affiliate transaction audit shall not be conducted more
frequently than every three years, unless ordered by the commission for good cause. The cost of the audit shall be paid by
the public utility to the independent auditing firm and shall be included in its regulated rates and charges, unless otherwise
ordered by the commission for good cause after providing the public utility the opportunity for a hearing on the commission’s
decision.
476.76 Reorganization defined.
For purposes of
this subchapter unless the context otherwise requires,
“reorganization” means either of the following:
1. The acquisition, sale, lease, or any other disposition, directly or indirectly, including by merger or consolidation, of the
whole or any substantial part of a public utility’s assets.
2. The purchase or other acquisition or sale or other disposition of the controlling capital stock of any public utility, either
directly or indirectly.
476.77 Time and standards for review.
1. A reorganization shall not take place if the commission disapproves. Prior to reorganization, the applicant shall file with
the commission a proposal for reorganization with supporting testimony and evidence to establish that the reorganization is
not contrary to the interests of the public utility’s ratepayers and the public interest.
2. A proposal for reorganization shall be deemed to have been approved unless the commission disapproves the proposal within
ninety days after its filing. The commission, for good cause shown, may extend the deadline for acting on an application for
an additional period not to exceed ninety days. However, the commission shall not disapprove a proposal for reorganization
without providing for notice and opportunity for hearing. The notice of hearing shall be provided no later than fifty days
after the proposal for reorganization has been filed.
3. In its review of a proposal for reorganization, the commission may consider all of the following: a. Whether the commission will have reasonable access to books, records, documents, and other information relating to the public
utility or any of its affiliates.
b. Whether the public utility’s ability to attract capital on reasonable terms, including the maintenance of a reasonable capital
structure, is impaired.
c. Whether the ability of the public utility to provide safe, reasonable, and adequate service is impaired.
d. Whether ratepayers are detrimentally affected.
e. Whether the public interest is detrimentally affected.
4. The commission may adopt rules which exempt a public utility or class of public utility or class of reorganization from this section if the commission finds that with respect to the public utility or class of public utility or class of reorganization review
is not necessary in the public interest. The commission may adopt rules necessary to protect the interest of the customers
of the exempt public utility. These rules may include, but are not limited to, notification of a proposed sale or transfer
of assets or stock. The commission may waive the requirements of this section, if the commission finds that commission review is not necessary in the public interest.
476.78 Cross-subsidization prohibited.
A public utility shall not directly or indirectly include any costs or expenses attributable to providing nonutility service
in regulated rates or charges. Except for contracts existing as of July 1, 1996, a public utility or its affiliates shall
not use vehicles, service tools and instruments, or employees, the costs, salaries, or benefits of which are recoverable in
the regulated rates for electric service or gas service to install, service, or repair residential or commercial gas or electric
heating, ventilating, or air conditioning systems, or interior lighting systems and fixtures; or to sell at retail heating,
ventilating, air conditioning, or interior lighting equipment. For the purpose of
this section,
“commercial” means a place of business primarily used for the storage or sale, at wholesale or retail, of goods, wares, services, or merchandise.
Nothing in
this section shall be construed to prohibit a public utility from using its utility vehicles, service tools and instruments, and employees
to market systems, services, and equipment, to light pilots, or to eliminate a customer emergency or threat to public safety.
476.79 Provision of nonutility service.
1. A public utility providing any nonutility service to its customers shall keep and render to the commission separate records
of the nonutility service. The commission may provide for the examination and inspection of the books, accounts, papers, and
records of the nonutility service, as may be necessary, to enforce any provisions of this chapter.
2. The commission shall adopt rules which specify the manner and form of the accounts relating to providing nonutility services
which the public utility shall maintain.
476.80 Additional requirements.
A public utility which engages in a systematic marketing effort as defined by the commission, other than on an incidental
or casual basis, to promote the availability of nonutility service from the public utility shall make available at reasonable
compensation on a nondiscriminatory basis to all persons engaged primarily in providing the same competitive nonutility services
in that area all of the following services to the same extent utilized by the public utility in connection with its nonutility
services:
1. Access to and use of the public utility’s customer lists.
2. Access to and use of the public utility’s billing and collection system.
3. Access to and use of the public utility’s mailing system.
The commission may periodically retain a nationally or regionally recognized independent auditing firm to conduct an audit
of the nonutility services provided by a public utility subject to the provisions of
section 476.80. A nonutility service audit shall not be conducted more frequently than every three years, unless ordered by the commission
for good cause. The cost of the audit shall be paid by the public utility to the independent auditing firm and shall be included
in its regulated rates and charges, unless otherwise ordered by the commission for good cause after providing the public utility
the opportunity for a hearing on the commission’s decision.
476.82 Exemption — energy efficiency.
Notwithstanding any language to the contrary, nothing in
this subchapter shall prohibit a public utility from participating in or conducting energy efficiency projects or programs established or
approved by the commission or required by statute. A public utility participating in or conducting energy efficiency projects
or programs established or approved by the commission or required by statute shall not be subject to the provisions of
sections 476.80 and
476.81 for those energy efficiency projects or programs.
Any person may file a written complaint with the commission requesting that the commission determine compliance by a public
utility with the provisions of
section 476.78,
476.79, or
476.80, or any validly adopted rules to implement these sections. Upon the filing of a complaint, the commission may promptly initiate
a formal complaint proceeding and give notice of the proceeding and the opportunity for hearing. The formal complaint proceeding
may be initiated at any time by the commission on its own motion. The commission shall render a decision in the proceeding
within ninety days after the date the written complaint was filed, unless additional time is requested by the complainant.
476.84 Water, sanitary sewer, and storm water utilities — acquisitions — advance ratemaking.
1. This section applies to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities. This section does not apply to the acquisition of such utilities by non-rate-regulated entities described in section 476.1, subsection 3.
2. a. A public utility shall not acquire, in whole or in part, a water, sanitary sewer, or storm water utility with a purchase price
of three million dollars or more from a non-rate-regulated entity described in section 476.1, subsection 3, unless the commission first approves the acquisition. In addition, if the utility to be acquired is a city utility, then
the public utility shall not acquire the city utility until the city has first certified completion of the requirements of
sections 362.3, 364.2, 364.7, 384.84, 388.2, 388.2A, and 388.6. A certified completion submitted pursuant to this paragraph shall contain an affirmation that the city that is the subject
of the acquisition has timely and substantially complied in relation to the acquisition with the applicable provisions of
sections 362.3, 364.2, 364.7, 384.84, 388.2, 388.2A, and 388.6. b. If a water, sanitary sewer, or storm water utility that is the subject of an acquisition meets the requirements of paragraph
“a”, then the acquiring public utility may apply to the commission, prior to the completion of the acquisition, for advance approval
of a proposed initial tariff for providing service to customers of the acquired utility.
c. As part of its review of the proposed acquisition, the commission shall specify in advance, by order issued after a contested
case proceeding, the ratemaking principles that will apply when the costs of the acquired utility are included in regulated
rates. The lesser of the sale price or the fair market value of the acquired utility as established pursuant to section 388.2A, subsection 2, shall be used in determining the applicable ratemaking principles. In determining the applicable ratemaking principles,
the commission shall not be limited to traditional ratemaking principles or traditional cost recovery mechanisms. Among the
principles and mechanisms the commission may consider, the commission has the authority to approve ratemaking principles that
provide for reasonable restrictions upon the ability of the public utility to seek an increase in specified regulated rates
for a period of time after the acquisition takes place. The final order including the rate base and approving the acquisition
shall consider reasonable and customary closing costs, the cost of appraisals, and regulatory and legal expenses incurred
in connection with the acquisition.
d. In determining the applicable ratemaking principles, the commission shall find that the proposed acquisition will result in
just and reasonable rates to all customers of the public utility, including but not limited to existing customers of the public
utility. In making this finding, the commission may consider any factor it reasonably concludes may affect future rates, including
but not limited to the price paid for the acquired utility and the projected cost of reasonable and prudent investments in
the acquired utility in order to provide safe and reliable services and facilities to customers. The commission shall consider
whether there are ratemaking principles that will result in just and reasonable rates to all customers in determining whether
to approve or disapprove a proposed acquisition.
e. (1) In determining the applicable ratemaking principles, the commission shall require the public utility to submit a purchase
agreement for the acquisition and shall find that the purchase agreement includes terms, conditions, requirements, and other
provisions applicable to the system to be acquired that are in substantial compliance with the requirements in sections 362.3, 364.2, 364.7, 384.84, 388.2, 388.2A, and 388.6. (2) The purchase agreement shall include a term allowing the parties thirty days, after final approval of the ratemaking principles,
to terminate the purchase agreement without penalty.
f. If the acquisition involves a utility that is an at-risk system as defined in section 455B.199D, the commission shall issue a final order on an application for approval of the acquisition within one hundred twenty days
from the filing of the application. For all other acquisitions, the commission shall issue an order within one hundred eighty
days of the filing date of the application.
g. Upon the approval of a proposal for acquisition by commission order, the parties subject to the acquisition shall have the
option of either proceeding with such acquisition or not, subject to any termination provisions contained in the acquisition
agreement.
h. Notwithstanding any provision of this chapter to the contrary, the ratemaking principles established by the commission pursuant to this section shall be binding with regard to the acquired utility in any subsequent rate proceeding.
476.85 Reserved.
SUBCHAPTER XIICOMPETITIVE NATURAL GAS PROVIDERS
1. “Aggregator” means a person who combines retail end users into a group and arranges for the acquisition of competitive natural gas services
without taking title to those services.
2. a. “Competitive natural gas provider” means a person who takes title to natural gas and sells it for consumption by a retail end user in the state of Iowa. “Competitive natural gas provider” includes an affiliate of an Iowa gas utility. b. “Competitive natural gas provider” does not include the following: (1) A public utility which is subject to rate regulation under this chapter.
(2) A municipally owned utility which provides natural gas service within its incorporated area or within the municipal natural
gas competitive service area, as defined in section 437A.3, subsection 22, paragraph “a”, subparagraph (1), in which the municipally owned utility is located.
476.87 Certification of competitive natural gas providers.
1. The commission shall certify all competitive natural gas providers and aggregators providing natural gas services in this
state. In an application for certification, a competitive natural gas provider or aggregator must reasonably demonstrate managerial,
technical, and financial capability sufficient to obtain and deliver the services such provider or aggregator proposes to
offer. The commission may establish reasonable conditions or restrictions on the certificate at the time of issuance. The
commission shall adopt rules to establish specific criteria for certification. The commission shall make a determination on
an application for certification within ninety days of its submission, unless the commission determines that additional time
is necessary to consider the application, in which case the commission may extend the time for making a determination for
an additional sixty days.
2. The commission may resolve disputes involving the provision of natural gas services by a competitive natural gas provider
or aggregator.
3. The commission shall allocate the costs and expenses reasonably attributable to certification and dispute resolution in this section to persons identified as parties to such proceeding who are engaged in or who seek to engage in providing natural gas services
or other persons identified as participants in such proceeding. The funds received for the costs and the expenses of certification
and dispute resolution shall be remitted to the treasurer of state for deposit in the commerce revolving fund created in section 546.12 as provided in section 476.10.
476.88 through 476.90 Reserved.
SUBCHAPTER XIVTELECOMMUNICATIONS SERVICE PROVIDERS
476.95 Internet protocol-enabled service and voice over internet protocol service — regulation.
1. For purposes of this section: a. “Internet protocol-enabled service” means any service, capability, functionality, or application that uses internet protocol or any successor protocol and enables
an end user to send or receive voice, data, or video communications in internet protocol format or a successor format.
b. “Political subdivision” means the same as defined in section 145A.2.
c. “Voice over internet protocol service” means an internet protocol-enabled service that facilitates real-time, two-way voice communication that originates from,
or terminates at, a user’s location and permits the user to receive a call that originates from the public switched telephone
network and to terminate a call on the public switched telephone network.
2. Notwithstanding any other provision of law to the contrary, a department, agency, board, or political subdivision of the state
shall not regulate, by rule, order, or other means directly or indirectly, the entry, rates, terms, or conditions for internet
protocol-enabled service or voice over internet protocol service.
3. This section shall not be construed to affect, modify, limit, or expand any of the following:
b. The application or enforcement of any law that is intended to have general application to the conduct of business in this
state.
c. Any entity’s obligation under section 251 or 252 of the federal Telecommunications Act of 1996.
d. Any authority of the commission over wholesale telecommunications services, rates, agreements, interconnection, providers,
or tariffs.
e. Any authority of the commission to address or affect the resolution of a dispute regarding intercarrier compensation.
f. Any authority of the commission, in accordance with state and federal law, to assess voice over internet protocol service
for any of the following:
(3) Direct costs under section 476.10 and a share of remainder assessments that reflect the service’s lesser degree of regulation.
g. Any authority of the commission to regulate internet protocol-enabled service or voice over internet protocol service pursuant
to section 476.91.
476.95A Annual registration for telecommunications service providers.
1. A provider of telecommunications service, as defined in section 476.103, offering telephone numbers to retail customers in this state shall register annually with the commission.
2. An applicant shall complete an application for registration on a form provided by the commission. The form shall include contact
information, the approximate number of service lines provided in the state, and any other information deemed necessary by
the commission.
3. Within five business days of the receipt of a completed application for registration, the commission shall issue a nonexclusive
acknowledgment of compliance with this section. The acknowledgment shall authorize the registrant to obtain telephone numbers, interconnect with other telecommunications
service providers, cross railroad rights-of-way pursuant to section 476.27, and provide telecommunications service in this state. An acknowledgment may be transferred by filing a new or updated registration
form.
4. A registrant shall submit to the commission corrections to the information supplied in the registration form within a reasonable
time after a change in circumstances, which circumstances would be required to be reported in an application for registration
form.
5. Refusal to file and maintain an annual registration pursuant to this section is a violation of this chapter and may subject a telecommunications service provider to a civil penalty pursuant to section 476.51.
6. Notwithstanding this subsection, the commission shall continue to recognize the validity of, and the rights conferred upon, a certificate of public convenience
and necessity issued to a telecommunications service provider by the commission prior to July 1, 2018.
476.95B Applicability of authority.
1. The commission may exercise any powers reserved or delegated to the state by the federal Telecommunications Act of 1996 or any other federal law, rule, or order thereunder, and may hear and resolve any dispute arising thereunder, including but
not limited to intercarrier compensation, interconnection, and number portability.
2. In proceedings under 47 U.S.C. §251 – 254, the commission shall allocate the costs and expenses of the proceedings to persons identified as parties in the proceeding
who are engaged in or who seek to engage in providing telecommunications service or other persons identified as participants
in the proceeding. The funds received for the costs and the expenses shall be remitted to the treasurer of state for deposit
in the commerce revolving fund created in section 546.12 as provided in section 476.10.
SUBCHAPTER XVLOCAL EXCHANGE CARRIERS
476.96 Definitions.
Repealed by 2018 Acts, ch 1160, §32.
476.97 Price regulation.
Repealed by 2014 Acts, ch 1099, §19.
476.99 Additional price regulation plan provisions.
Repealed by 2014 Acts, ch 1099, §19.
A local exchange carrier shall not do any of the following:
1. Discriminate against another provider of communications services by refusing or delaying access to the local exchange carrier’s
services.
2. Discriminate against another provider of communications services by refusing or delaying access to essential facilities on
terms and conditions no less favorable than those the local exchange carrier provides to itself and its affiliates. A local
telecommunications facility, feature, function, or capability of the local exchange carrier’s network is an essential facility
if all of the following apply: a. Competitors cannot practically or economically duplicate the facility, feature, function, or capability, or obtain the facility,
feature, function, or capability from another source.
b. The use of the facility, feature, function, or capability by potential competitors is technically and economically feasible.
c. Denial of the use of the facility, feature, function, or capability by competitors is unreasonable.
d. The facility, feature, function, or capability will enable competition.
3. Degrade the quality of access or service provided to another provider of communications services.
4. Fail to disclose in a timely manner, upon reasonable request and pursuant to a protective agreement concerning proprietary
information, all information reasonably necessary for the design of network interface equipment, network interface services,
or software that will meet the specifications of the local exchange carrier’s local exchange network.
5. Unreasonably refuse or delay interconnections or provide inferior interconnections to another provider.
6. Use basic exchange service rates, directly or indirectly, to subsidize or offset the costs of other products or services offered
by the local exchange carrier.
7. Discriminate in favor of itself or an affiliate in the provision and pricing of, or extension of credit for, any telephone
service.
476.101 Local exchange competition.
Repealed by 2018 Acts, ch 1160, §32.