Senate File 2087SENATE FILE BY HOGG, HATCH, BEALL, APPEL, SENG, OLIVE, DEARDEN, FRAISE, QUIRMBACH, COURTNEY, KIBBIE, BLACK, BOLKCOM, DVORSKY, KREIMAN, and SCHMITZ Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the establishment or approval of discounted 2 gas and electric utility rates applicable to low=income 3 residents. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5867SS 82 6 rn/nh/5 PAG LIN 1 1 Section 1. NEW SECTION. 476.8A LOW=INCOME RESIDENTIAL 1 2 CUSTOMERS == DISCOUNT RATE. 1 3 The board may establish or approve low=income residential 1 4 discount rates for gas and electric utility service furnished 1 5 to qualified low=income residents as determined pursuant to 1 6 section 476.20, subsection 2, to ensure the affordable, 1 7 reliable, and continuous furnishing of such services, lower 1 8 the percentage of income devoted to utility bills by 1 9 low=income households, increase customer payment rates, and 1 10 reduce costs associated with customer account collection 1 11 activities. The discount rates, if established, shall be 1 12 applicable to gas and electric service furnished by a public 1 13 utility subject to rate regulation and, at a utility's 1 14 discretion, to a public utility exempt from the board's rate 1 15 regulation authority. The disconnection restrictions 1 16 applicable to qualifying low=income residents pursuant to 1 17 section 476.20 shall continue to apply notwithstanding 1 18 imposition of discount rates established pursuant to this 1 19 section. 1 20 EXPLANATION 1 21 This bill authorizes the Iowa utilities board to establish 1 22 or approve discount rates for gas and electric utility service 1 23 applicable to low=income residents who qualify for 1 24 disconnection restriction provisions specified in Code section 1 25 476.20. The bill specifies that discount rates would be 1 26 established to ensure the affordable, reliable, and continuous 1 27 furnishing of utility services, lower the percentage of income 1 28 devoted to utility bills by low=income households, increase 1 29 customer payment rates, and reduce costs associated with 1 30 customer account collection activities by utilities. The 1 31 rates, if established, would apply to gas and electric 1 32 utilities subject to rate regulation under Code chapter 476, 1 33 and optionally to utilities not subject to the board's rate 1 34 regulation authority. The bill provides that disconnection 1 35 restrictions shall continue to apply to qualifying low=income 2 1 residents notwithstanding application of a discount rate. 2 2 LSB 5867SS 82 2 3 rn/nh/5