Senate Study Bill 1256 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act relating to energy efficiency and demand response 1 plan filing requirements for certain public utilities, and 2 including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2816XC (2) 88 gh/rn

S.F. _____ Section 1. Section 476.6, subsection 15, paragraph c, 1 subparagraphs (2) and (4), Code 2019, are amended to read as 2 follows: 3 (2) Notwithstanding the goals developed pursuant to 4 paragraph “b” , the board shall not require allow a gas utility 5 to adopt an energy efficiency plan that results in projected 6 cumulative average annual costs that exceed one and one-half 7 percent of the gas utility’s expected annual Iowa retail rate 8 revenue from retail customers in the state, shall not require 9 allow an electric utility to adopt an energy efficiency plan 10 that results in projected cumulative average annual costs that 11 exceed two percent of the electric utility’s expected annual 12 Iowa retail rate revenue from retail customers in the state, 13 and shall not require allow an electric utility to adopt a 14 demand response plan that results in projected cumulative 15 average annual costs that exceed two percent of the electric 16 utility’s expected annual Iowa retail rate revenue from retail 17 customers in the state. For purposes of determining the two 18 percent threshold amount, the board shall exclude from an 19 electric utility’s expected annual Iowa retail rate revenue 20 the revenues expected from customers that have received 21 exemptions from energy efficiency plans pursuant to paragraph 22 “a” . The board shall not allow recovery of costs of an energy 23 efficiency plan or demand response plan pursuant to paragraph 24 “e” , subparagraph (1), inclusive of assessments remitted under 25 section 476.10A, in excess of the one and one-half or two 26 percent threshold amount, as applicable, for each plan year. 27 This subparagraph shall apply to energy efficiency plans and 28 demand response plans that are effective on or after January 29 1, 2019. 30 (4) The board shall approve, reject, or modify a plan 31 filed pursuant to this subsection no later than March 31, 32 2019. If the board fails to approve, reject, or modify a plan 33 filed by a gas or electric utility on or before such date, any 34 plan filed by the gas or electric utility that was approved 35 -1- LSB 2816XC (2) 88 gh/rn 1/ 3

S.F. _____ by the board prior to May 4, 2018, shall be terminated. The 1 board shall not require allow a gas or electric utility to 2 implement an energy efficiency plan or demand response plan 3 that does not meet the requirements of this subsection . For 4 any plan approved by the board after January 1, 2019, in 5 excess of the one and one-half or two percent threshold amount 6 established in subparagraph (2), as applicable, inclusive of 7 assessments remitted under section 476.10A, the gas or electric 8 utility subject to the plan shall file a plan modification 9 with the board within thirty days of the effective date of 10 this Act in order to comply with the one and one-half or two 11 percent threshold amount established in subparagraph (2), as 12 applicable. The board shall approve such plan modification 13 within thirty days of filing without docketing the case as a 14 formal proceeding and without further modification, provided 15 that the only modification to the plan as filed by the gas or 16 electric utility is to adjust the plan and budget in order 17 to comply with the one and one-half or two percent threshold 18 amount established in subparagraph (2), as applicable. 19 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 20 importance, takes effect upon enactment. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill modifies energy efficiency and demand response 25 plan filing requirements for certain public utilities. 26 Current law requires rate-regulated electric utilities to 27 file five-year energy efficiency plans with the Iowa utilities 28 board, and rate-regulated gas utilities to file five-year 29 energy efficiency plans with the board. The board shall not 30 require a gas utility to adopt a plan that results in projected 31 cumulative average annual costs that exceed 1.5 percent of its 32 expected annual Iowa retail rate revenue, and the board shall 33 not require an electric utility to adopt a plan that results in 34 projected cumulative average annual costs that exceed 2 percent 35 -2- LSB 2816XC (2) 88 gh/rn 2/ 3

S.F. _____ of its expected annual Iowa retail rate revenue. 1 The bill provides that the board shall not allow a gas or 2 electric utility to adopt a plan that exceeds the 1.5 or 2 3 percent threshold amount, as applicable. The board shall not 4 allow plan cost recovery, inclusive of assessments remitted 5 under Code section 476.10A for the Iowa energy center and the 6 center for global and regional environmental research, in 7 excess of the applicable threshold amount, for each plan year. 8 The bill provides that for any plan approved by the board 9 after January 1, 2019, in excess of the applicable threshold 10 amount, inclusive of assessments remitted under Code section 11 476.10A, the gas or electric utility subject to the plan shall 12 file a plan modification with the board within 30 days of 13 the effective date of the bill in order to comply with the 14 applicable threshold amount. The board shall approve such 15 plan modification within 30 days of filing without a formal 16 proceeding and without further modification, provided that the 17 only modification to such plan is to adjust the plan and budget 18 in order to comply with the applicable threshold amount. 19 The bill takes effect upon enactment. 20 -3- LSB 2816XC (2) 88 gh/rn 3/ 3