Senate File 2311 H-8414 Amend the amendment, H-8340, to Senate File 2311, as 1 amended, passed, and reprinted by the Senate, as follows: 2 1. Page 3, by striking lines 15 through 24 and inserting: 3 < g. Filing energy efficiency plans and energy efficiency 4 results with the board. The energy efficiency plans as a 5 whole shall be cost-effective. The board may permit these 6 utilities to file joint plans. The board shall periodically 7 report the energy efficiency results including energy savings 8 of each of these utilities to the general assembly. The board 9 may waive all or part of the energy efficiency filing and 10 review requirements for electric cooperative corporations and 11 associations and electric public utilities which demonstrate 12 superior results with existing energy efficiency efforts. > 13 2. Page 4, lines 10 and 11, by striking < paragraph f, Code 14 2018, is amended by striking the paragraph > and inserting 15 < paragraphs f and l, Code 2018, are amended by striking the 16 paragraphs > 17 3. Page 5, line 7, after < with > by inserting < and approved 18 by > 19 4. Page 5, line 14, after < with > by inserting < and approved 20 by > 21 5. By striking page 5, line 35, through page 7, line 11, and 22 inserting: 23 < Sec. ___. Section 476.6, subsection 15, paragraph a, Code 24 2018, is amended to read as follows: 25 a. (1) (a) Gas and electric Electric utilities required 26 to be rate-regulated under this chapter shall file five-year 27 energy efficiency plans and demand response plans with the 28 board. Gas utilities required to be rate-regulated under 29 this chapter shall file five-year energy efficiency plans 30 with the board. An energy efficiency plan and budget or a 31 demand response plan and budget shall include a range of energy 32 efficiency or demand response programs, tailored to the needs 33 of all customer classes, including residential, commercial, 34 and industrial customers, for energy efficiency opportunities. 35 -1- H8340.5421 (1) 87 gh/rn 1/ 6 #1. #2. #3. #4. #5.

The plans shall include programs for qualified low-income 1 persons including a cooperative program with any community 2 action agency within the utility’s service area to implement 3 countywide or communitywide energy efficiency programs for 4 qualified low-income persons. Rate-regulated gas and electric 5 utilities shall utilize Iowa agencies and Iowa contractors to 6 the maximum extent cost-effective in their energy efficiency 7 plans or demand response plans filed with the board. 8 (b) The board shall allow a customer of an electric utility 9 that is required to be rate-regulated to request an exemption 10 from participation in any five-year energy efficiency plan 11 offered by an electric utility if the energy efficiency plan 12 and demand response plan, at the time of approval by the board, 13 have a cumulative rate-payer impact test result of less than 14 one. Upon receipt of a request for exemption submitted by 15 a customer, the electric utility shall grant the exemption 16 and, beginning January 1 of the following year, the customer 17 shall no longer be assessed the costs of the plan and shall be 18 prohibited from participating in any program included in such 19 plan until the exemption no longer applies, as determined by 20 the board. 21 (2) Gas and electric utilities required to be 22 rate-regulated under this chapter may request an energy 23 efficiency plan or demand response plan modification during the 24 course of a five-year plan. A modification may be requested 25 due to changes in funding as a result of public utility 26 customers requesting exemptions from the plan or for any other 27 reason identified by the gas or electric utility. The board 28 shall take action on a modification request made by a gas or 29 electric utility within ninety days after the modification 30 request is filed. If the board fails to take action within 31 ninety days after a modification request is filed, the 32 modification request shall be deemed approved. 33 (3) The board shall adopt rules pursuant to chapter 17A 34 establishing reasonable processes and procedures for utility 35 -2- H8340.5421 (1) 87 gh/rn 2/ 6

customers from any customer class to request exemptions 1 from energy efficiency plans that meet the requirements of 2 subparagraph (1), subparagraph division (b). The rules adopted 3 by the board shall only apply to electric utilities that are 4 required to be rate-regulated. > 5 6. By striking page 7, line 14, through page 9, line 34, and 6 inserting: 7 < Sec. ___. Section 476.6, subsection 15, paragraphs e, f, 8 and g, Code 2018, are amended to read as follows: 9 e. (1) The board shall conduct contested case proceedings 10 for review of energy efficiency plans , demand response plans, 11 and budgets filed by gas and electric utilities required to be 12 rate-regulated under this chapter . 13 (2) Notwithstanding the goals developed pursuant to 14 paragraph “b” , the board shall not require a gas utility to 15 adopt an energy efficiency plan that results in projected 16 cumulative average annual costs that exceed one and one-half 17 percent of the gas utility’s expected annual Iowa retail rate 18 revenue from retail customers in the state, shall not require 19 an electric utility to adopt an energy efficiency plan that 20 results in projected cumulative average annual costs that 21 exceed two percent of the electric utility’s expected annual 22 Iowa retail rate revenue from retail customers in the state, 23 and shall not require an electric utility to adopt a demand 24 response plan that results in projected cumulative average 25 annual costs that exceed two percent of the electric utility’s 26 expected annual Iowa retail rate revenue from retail customers 27 in the state. For purposes of determining the two percent 28 threshold amount, the board shall exclude from an electric 29 utility’s expected annual Iowa retail rate revenue the revenues 30 expected from customers that have received exemptions from 31 energy efficiency plans pursuant to paragraph “a” . This 32 subparagraph shall apply to energy efficiency plans and demand 33 response plans that are effective on or after January 1, 2019. 34 (3) The board may approve, reject, or modify the plans and 35 -3- H8340.5421 (1) 87 gh/rn 3/ 6 #6.

budgets. Notwithstanding the provisions of section 17A.19, 1 subsection 5 , in an application for judicial review of the 2 board’s decision concerning a utility’s energy efficiency plan 3 or budget, the reviewing court shall not order a stay. 4 (4) The board shall approve, reject, or modify a plan filed 5 pursuant to this subsection no later than March 31, 2019. If 6 the board fails to approve, reject, or modify a plan filed by a 7 gas or electric utility on or before such date, any plan filed 8 by the gas or electric utility that was approved by the board 9 prior to the effective date of this Act shall be terminated. 10 The board shall not require a gas or electric utility to 11 implement an energy efficiency plan or demand response plan 12 that does not meet the requirements of this subsection. 13 (5) Whenever a request to modify an approved plan or budget 14 is filed subsequently by the office of consumer advocate or a 15 gas or electric utility required to be rate-regulated under 16 this chapter , the board shall promptly initiate a formal 17 proceeding if the board determines that any reasonable ground 18 exists for investigating the request. The formal proceeding 19 may be initiated at any time by the board on its own motion. 20 Implementation of board-approved plans or budgets shall 21 be considered continuous in nature and shall be subject to 22 investigation at any time by the board or the office of the 23 consumer advocate. 24 f. Notice to customers of a contested case proceeding for 25 review of energy efficiency plans , demand response plans, and 26 budgets shall be in a manner prescribed by the board. 27 g. (1) A gas or electric utility required to be 28 rate-regulated under this chapter may recover, through an 29 automatic adjustment mechanism filed pursuant to subsection 8 , 30 over a period not to exceed the term of the plan, the costs of 31 an energy efficiency plan or demand response plan approved by 32 the board , including amounts for a plan approved prior to July 33 1, 1996, in a contested case proceeding conducted pursuant to 34 paragraph “e” . Customers that have been granted exemptions from 35 -4- H8340.5421 (1) 87 gh/rn 4/ 6

energy efficiency plans pursuant to paragraph “a” , shall not 1 be charged for recovery of energy efficiency costs beginning 2 January 1 of the year following the year in which the customer 3 was granted the exemption. 4 (2) The board shall periodically conduct a contested case 5 proceeding to evaluate the reasonableness and prudence of the 6 utility’s implementation of an approved energy efficiency 7 or demand response plan and budget. If a utility is not 8 taking all reasonable actions to cost-effectively implement 9 an approved energy efficiency plan, the board shall not allow 10 the utility to recover from customers costs in excess of those 11 costs that would be incurred under reasonable and prudent 12 implementation and shall not allow the utility to recover 13 future costs at a level other than what the board determines 14 to be reasonable and prudent. If the result of a contested 15 case proceeding is a judgment against a utility, that utility’s 16 future level of cost recovery shall be reduced by the amount 17 by which the programs were found to be imprudently conducted. 18 The Beginning January 1, 2019, a gas or electric utility 19 shall not represent energy efficiency and demand response in 20 customer billings as a separate cost or expense unless the 21 board otherwise approves . > 22 7. Page 10, after line 7 by inserting: 23 < Sec. ___. Section 476.6, Code 2018, is amended by adding 24 the following new subsection: 25 NEW SUBSECTION . 23. Federal tax reduction —— customer 26 benefits. Customers of gas and electric utilities subject to 27 rate regulation by the board shall receive the full benefits 28 of the utilities’ reduced federal corporate income taxes as 29 provided in the federal Tax Cuts and Jobs Act of 2017, Pub. 30 L. No. 115-97, 131 Stat. 2054. Notwithstanding any other 31 provision of law or rule to the contrary, the board shall, 32 no later than June 1, 2018, approve any proposal filed by a 33 rate-regulated gas or electric utility to pass such benefits 34 on to customers. The board may approve rates with provision 35 -5- H8340.5421 (1) 87 gh/rn 5/ 6 #7.

for adjustments to ensure that the rates are accurate and that 1 customers receive the full benefits. > 2 8. Page 12, by striking lines 4 through 6 and inserting < the 3 actual costs and revenues are reasonably consistent with those 4 approved by the board. If the actual costs and revenues are 5 not reasonably consistent with those approved by the board, the 6 board shall > 7 9. Page 12, line 15, by striking < paragraph > and inserting 8 < subsection > 9 10. Page 13, by striking lines 10 and 11 and inserting: 10 < 1. The section of this Act amending section 476.6, 11 subsection 15, paragraphs “e”, “f”, and “g”. 12 2. The section of this Act enacting section 476.6, 13 subsection 23. >> 14 11. By renumbering as necessary. 15 ______________________________ CARLSON of Muscatine -6- H8340.5421 (1) 87 gh/rn 6/ 6 #8. #9. #10. #11.