H.F. _____ Section 1. Section 476.1A, Code 2023, is amended to read as 1 follows: 2 476.1A Applicability of authority —— certain electric 3 utilities. 4 1. Electric public utilities having fewer than ten 5 thousand customers and electric cooperative corporations and 6 associations are not subject to the regulation authority of the 7 board, except for regulatory action pertaining to all of the 8 following: 9 a. Assessment of fees for the support of the division and 10 the office of consumer advocate, pursuant to section 476.10 . 11 b. Safety standards and engineering standards for equipment, 12 operations, and procedures . 13 c. Assigned area areas of service , as set forth in sections 14 476.22 through 476.26 . 15 d. Pilot projects of the board Public utility railroad 16 crossings, as set forth in 476.27 . 17 e. Filing alternate energy purchase program plans with the 18 board, and offering such programs to customers, pursuant to 19 section 476.47 . 20 2. However, sections 476.20, subsections 1 through 4 , 21 476.21 , 476.51 , 476.56 , 476.58, 476.62 , and 476.66 and chapters 22 476A and 478 , to the extent applicable, apply to such electric 23 utilities. 24 3. Electric cooperative corporations and associations 25 and electric public utilities exempt from rate regulation 26 under this section shall not make or grant any unreasonable 27 preferences or advantages as to rates or services to any 28 person or subject any person to any unreasonable prejudice or 29 disadvantage. 30 4. The board of directors or the membership of an electric 31 cooperative corporation or association otherwise exempt 32 from rate regulation may elect to have the cooperative’s 33 rates regulated by the board. The board shall adopt rules 34 prescribing the manner in which the board of directors or the 35 -1- LSB 1658YC (1) 90 es/rn 1/ 7

H.F. _____ membership of an electric cooperative may so elect. If the 1 board of directors or the membership of an electric cooperative 2 has elected to have the cooperative’s rates regulated by the 3 board, after two years have elapsed from the effective date of 4 such election the board of directors or the membership of the 5 electric cooperative may elect to exempt the cooperative from 6 the rate regulation authority of the board, provided, however, 7 that if the membership elected to have the cooperative’s rates 8 regulated by the board, only the membership may elect to exempt 9 the cooperative from the rate regulation authority of the 10 board. 11 5. An electric utility subject to regulatory action 12 pursuant to this section is subject to complaints and 13 investigations as set forth in section 476.3, but only with 14 regard to matters within the regulatory authority of the board 15 as set forth in subsections 1 and 2. 16 6. As used in this section: 17 a. “Engineering standards” means standards adopted by the 18 American national standards institute, or the institute of 19 electrical and electronics engineers, rural utilities service, 20 or comparable engineering organization or engineering standards 21 adopted by the board. 22 b. “Rates” means the same as defined in section 384.80 23 and includes all charges or fees imposed or collected for the 24 provision of or incidental to utility service. 25 c. “Safety standards” means applicable regulations 26 promulgated by the United States occupational safety and health 27 administration and by Iowa occupational safety and health by 28 the administration. Safety standards for electric utilities 29 subject to this section also include outage notifications, 30 safety standards contained in the national electric safety 31 code, as published by the institute of electrical and 32 electronic engineers, inc., and electric safety standards 33 approved by the American national standards institute. 34 Sec. 2. Section 476.1B, Code 2023, is amended to read as 35 -2- LSB 1658YC (1) 90 es/rn 2/ 7

H.F. _____ follows: 1 476.1B Applicability of authority —— municipally owned 2 utilities. 3 1. Unless otherwise specifically provided by statute, a 4 A municipally owned utility furnishing gas or electricity is 5 not subject to the regulation by authority of the board under 6 this chapter , except for regulatory action pertaining to the 7 following : 8 a. Assessment of fees for the support of the division 9 and the office of consumer advocate, as set forth in section 10 476.10 . 11 b. Safety standards. 12 c. Assigned areas of service, as set forth in sections 13 476.22 through 476.26 . 14 d. Enforcement of civil penalties pursuant to section 15 476.51 . 16 e. Disconnection of service, as set forth in section 476.20, 17 subsections 1 through 4 . 18 f. Encouragement of alternate energy production facilities, 19 as set forth in sections 476.41 through 476.45 . 20 g. Enforcement of section 476.56 . 21 h. Enforcement of section 476.66 . 22 i. Enforcement of section 476.62 . 23 d. Public utility railroad crossings, as set forth in 24 section 476.27. 25 j. e. An electric power agency as defined in chapter 26 28F and section 390.9 that includes as a member a city or 27 municipally owned utility that builds transmission facilities 28 after July 1, 2001, is subject to applicable transmission 29 reliability rules or standards adopted by the board for those 30 facilities. 31 k. f. Filing alternate energy purchase program plans with 32 the board, and offering such programs to customers, pursuant 33 to section 476.47 . 34 2. The board may waive all or part of the energy efficiency 35 -3- LSB 1658YC (1) 90 es/rn 3/ 7

H.F. _____ filing and review requirements for municipally owned utilities 1 which demonstrate superior results with existing energy 2 efficiency efforts Sections 476.20, subsections 1 through 4, 3 476.51, 476.56, 476.58, 476.62, and 476.66 and chapters 476A 4 and 478, to the extent applicable, apply to such electric and 5 gas utilities . 6 3. Unless otherwise specifically provided by statute, a A 7 municipally owned utility providing local exchange services 8 is not subject to the regulation by authority of the board 9 under this chapter except for regulatory action pertaining to 10 the enforcement of sections 476.10, 476.95 , 476.95A , 476.95B , 11 476.100 , and 476.102 , and 476.103 . 12 4. An electric utility subject to regulatory action 13 pursuant to this section is subject to complaints and 14 investigations as set forth in section 476.3, but only with 15 regard to matters within the regulatory authority of the board 16 as set forth in subsections 1 and 2. 17 Sec. 3. Section 476.20, subsection 3, paragraph a, Code 18 2023, is amended to read as follows: 19 a. The board shall establish adopt rules which shall be 20 uniform with respect to all rate-regulated public utilities 21 furnishing gas or electricity relating to disconnection 22 of service. The board shall adopt rules with respect to 23 electric and gas utilities subject to sections 476.1A and 24 476.1B that prescribe the procedures and notice requirements 25 for the disconnection of service consistent with the rules 26 for rate-regulated public utilities, but such rules shall 27 not regulate the rates of such utilities. This subsection 28 applies both to regulated rate-regulated utilities , utilities 29 subject to regulation under sections 476.1A and 476.1B, and to 30 municipally owned utilities and unincorporated villages which 31 own their own distribution systems , and violations . Violations 32 of this subsection may subject the utilities a utility to civil 33 penalties under section 476.51 . 34 Sec. 4. Section 476.20, subsection 5, paragraph a, 35 -4- LSB 1658YC (1) 90 es/rn 4/ 7

H.F. _____ unnumbered paragraph 1, Code 2023, is amended to read as 1 follows: 2 The board shall establish rules which shall be uniform with 3 respect to all rate-regulated public utilities furnishing gas 4 or electricity relating to deposits which may be required by 5 the public utility for the initiation or reinstatement of 6 service. This subsection shall not apply to utilities subject 7 to section 476.1A, or to municipally owned utilities , which 8 shall be governed by the provisions of section 384.84 with 9 respect to deposits and payment plans for delinquent amounts 10 owed. Municipally owned utilities and electric utilities 11 that are not required to be rate-regulated utilities subject 12 to section 476.1A shall not be subject to the board’s rules 13 in regards regard to deposits , rates and charges for the 14 disconnection or reinstatement of service, and payment plans 15 for delinquent amounts owed and repayment of past due debt. 16 Municipally owned utilities and electric utilities that are 17 not required to be rate-regulated utilities subject to section 18 476.1A shall be subject to the board’s rules in regards to 19 payment plans made prior to the disconnection of services. 20 Sec. 5. Section 592.9, Code 2023, is amended to read as 21 follows: 22 592.9 City waterworks utilities and utility boards . 23 All proceedings taken prior to January 1, 1961 the effective 24 date of this Act purporting to provide for the establishment, 25 organization, formation, operation, or maintenance of a city 26 waterworks utility or utility board and not previously declared 27 invalid by any court, are legalized, validated and confirmed. 28 All such proceedings are declared to be legally sufficient to 29 create, establish and authorize the maintenance and operation 30 of a city waterworks as a city utility, as defined in section 31 362.2, subsection 6 . 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -5- LSB 1658YC (1) 90 es/rn 5/ 7

H.F. _____ This bill relates to the regulation of specified gas and 1 electric utilities. 2 The bill provides that electric public utilities having 3 fewer than 10,000 customers and electric cooperative 4 corporations and associations are subject to regulatory action 5 from the Iowa utilities board (board) regarding public utility 6 railroad crossings. The bill removes regulation authority 7 from the board for electric public utilities having fewer 8 than 10,000 customers and electric cooperative corporations 9 and associations regarding pilot projects of the board. The 10 bill provides that such utilities are subject to complaint and 11 investigation procedures set forth in Code section 476.3. The 12 bill provides definitions for “engineering standards”, “rates”, 13 and “safety standards”. 14 With regard to municipally owned utilities furnishing gas or 15 electricity, the bill similarly provides that such utilities 16 are subject to regulation authority regarding public utility 17 railroad crossings. The bill strikes provisions relating to 18 waiver of energy efficiency filing and review requirements, 19 civil penalties in Code section 476.51, disconnection 20 of service, encouragement of alternate energy production 21 facilities, enforcement of the energy costs provided in Code 22 section 476.56, enforcement of the customer contribution 23 fund provided in Code section 476.66, and enforcement of 24 energy-efficient lighting requirements provided in Code 25 section 476.62. The bill adds that the board has regulatory 26 authority over a municipally owned utility providing local 27 exchange services regarding Code section 476.10, relating 28 to investigations, and Code section 476.103, relating to 29 unauthorized change in service. The bill provides that 30 disconnection of services in Code section 476.20, subsections 31 1 through 4, civil penalties in Code section 476.51, 32 encouragement of alternate energy production facilities, energy 33 cost requirements, safety of distributed generation facilities, 34 customer contribution fund requirements, and energy-efficient 35 -6- LSB 1658YC (1) 90 es/rn 6/ 7

H.F. _____ lighting requirements, Code chapter 476A relating to electric 1 power generation and transmission, and Code chapter 478 2 relating to electric transmission lines, also apply to 3 municipally owned utilities furnishing gas or electricity. The 4 bill provides that disconnection of services in Code section 5 476.20, subsections 1 through 4, civil penalties in Code 6 section 476.51, encouragement of alternate energy production 7 facilities, energy cost requirements, safety of distributed 8 generation facilities, customer contribution fund requirements, 9 and energy-efficient lighting requirements, Code chapter 476A 10 relating to electric power generation and transmission, and 11 Code chapter 478 relating to electric transmission lines, 12 also apply to municipally owned utilities furnishing gas or 13 electricity. 14 The bill changes the applicability of deposit-related 15 uniform rules established by the board from all public 16 utilities furnishing gas or electricity to rate-regulated 17 public utilities furnishing gas or electricity and excludes 18 utilities subject to Code section 476.1A. The bill provides 19 that municipally owned utilities and utilities subject to Code 20 section 476.1A shall not be subject to the board’s rules in 21 regards to deposits, rates, charges for the disconnection or 22 reinstatement of service, and payment plans for delinquent 23 amounts owed and repayment of past-due debt, but are subject to 24 rules regarding payment plans made prior to the disconnection 25 of services. 26 The bill provides that all proceedings taking place 27 before the effective date of the bill for the establishment, 28 organization, formation, operation, or maintenance of a city 29 utility or utility board that were not previously declared 30 invalid shall be determined to be legally sufficient to create, 31 establish, and authorize the maintenance and operation of a 32 city utility. Current law provides for the procedure to apply 33 exclusively to city waterworks processed before January 1, 34 1961. 35 -7- LSB 1658YC (1) 90 es/rn 7/ 7