S.F. 2244 Section 1. Section 476.1, Code 2024, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 1A. The utilities board shall seek to 3 ensure safe, adequate, reliable, and affordable utility 4 services provided at rates that are nondiscriminatory, just, 5 reasonable, and based on the utility’s cost of providing 6 service to customers within the state. 7 Sec. 2. Section 476.1A, Code 2024, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 5A. Electric utility resources, including 10 electric generation, should be planned, designed, constructed, 11 and operated to minimize costs to customers and to ensure safe, 12 adequate, and reliable service. To serve these purposes, 13 the board shall administer a resource planning procedure for 14 investor-owned electric utilities in the state, including any 15 investor-owned utility whose operations are limited to electric 16 transmission services. 17 Sec. 3. Section 476.3, subsection 1, Code 2024, is amended 18 to read as follows: 19 1. A public utility shall furnish reasonably adequate 20 service at rates and charges in accordance with tariffs 21 filed with the board. A rate charged by a public utility 22 to a similarly situated customer of the same service class 23 shall differ only if the difference is based on demonstrable, 24 measurable differences in the cost of providing the service. 25 The rate charged to a customer shall be based upon the costs 26 incurred to serve the customer. When there is filed with the 27 board by any person or body politic, or filed by the board upon 28 its own motion, a written complaint requesting the board to 29 determine the reasonableness of the rates, charges, schedules, 30 service, regulations, or anything done or omitted to be done 31 by a public utility subject to this chapter in contravention 32 of this chapter , the written complaint shall be forwarded by 33 the board to the public utility, which shall be called upon 34 to satisfy the complaint or to answer it in writing within a 35 -1- LSB 5856XS (5) 90 lh/js 1/ 10

S.F. 2244 reasonable time to be specified by the board. Copies of the 1 written complaint forwarded by the board to the public utility 2 and copies of all correspondence from the public utility in 3 response to the complaint shall be provided by the board in 4 an expeditious manner to the consumer advocate. If the board 5 determines the public utility’s response is inadequate and 6 there appears to be any reasonable ground for investigating 7 the complaint, the board shall promptly initiate a formal 8 proceeding. If the consumer advocate determines the public 9 utility’s response to the complaint is inadequate, the consumer 10 advocate may file a petition with the board , which shall 11 promptly initiate a formal proceeding if the board determines 12 that there is any reasonable ground for investigating the 13 complaint. The complainant or the public utility also may 14 petition the board to initiate a formal proceeding , which 15 petition shall be granted if the board determines that there 16 is any reasonable ground for investigating the complaint. The 17 formal proceeding may be initiated at any time by the board on 18 its own motion. If a proceeding is initiated upon petition 19 filed by the consumer advocate, complainant, or the public 20 utility, or upon the board’s own motion, the board shall set 21 the case for hearing and give notice as it deems appropriate. 22 When the board, after a hearing held after reasonable notice, 23 finds a public utility’s rates, charges, schedules, service, 24 or regulations are unjust, unreasonable, discriminatory, or 25 otherwise in violation of any provision of law, the board 26 shall determine just, reasonable, and nondiscriminatory rates, 27 charges, schedules, service, or regulations to be observed and 28 enforced. 29 Sec. 4. Section 476.6, subsection 15, paragraph a, 30 subparagraph (1), subparagraph division (a), Code 2024, is 31 amended to read as follows: 32 (a) Electric utilities required to be rate-regulated under 33 this chapter shall file five-year energy efficiency plans 34 and demand response plans with the board unless the utility 35 -2- LSB 5856XS (5) 90 lh/js 2/ 10

S.F. 2244 files an integrated resource plan under section 476.53B . Gas 1 utilities required to be rate-regulated under this chapter 2 shall file five-year energy efficiency plans with the board. 3 An energy efficiency plan and budget or a demand response 4 plan and budget shall include a range of energy efficiency 5 or demand response programs, tailored to the needs of all 6 customer classes, including residential, commercial, and 7 industrial customers, for energy efficiency opportunities. 8 The plans shall include programs for qualified low-income 9 persons including a cooperative program with any community 10 action agency within the utility’s service area to implement 11 countywide or communitywide energy efficiency programs for 12 qualified low-income persons. Rate-regulated gas and electric 13 utilities shall utilize Iowa agencies and Iowa contractors to 14 the maximum extent cost-effective in their energy efficiency 15 plans or demand response plans filed with the board. 16 Sec. 5. NEW SECTION . 476.53B Electric utility integrated 17 resource plan. 18 1. a. A rate-regulated electric utility shall file with 19 the board an integrated resource plan no later than one year 20 after the effective date of this Act. The plan shall include 21 the period of time between approval of the plan and ending ten 22 years after the filing of the plan. 23 b. The initial plan approval shall be conducted as a 24 contested case proceeding pursuant to chapter 17A. 25 2. The utility shall file an update to the initial plan 26 three years after the initial filing of the integrated resource 27 plan. The update shall include any changes from the initial 28 filing. The updated integrated resource plan shall be subject 29 to a contested case proceeding but shall be limited to the 30 changes included in the updated filing. 31 3. Three years after the filing of the updated integrated 32 resource plan, the utility shall file a fully comprehensive 33 plan that shall be subject to a contested case proceeding. 34 4. a. The plan shall include utility facilities and 35 -3- LSB 5856XS (5) 90 lh/js 3/ 10

S.F. 2244 resources for the provision of electric service including the 1 following: 2 (1) Electric generation. 3 (2) Electric distribution facilities. 4 (3) Electric transmission facilities owned and operated by 5 the utility. 6 (4) Any contractual or other arrangements including, 7 without limitation, demand response arrangements, energy 8 efficiency measures, peak load management, distributed 9 generation, power purchase agreements, and wholesale market 10 purchases, by which the utility may meet or modify demand for 11 service. 12 b. The plan shall include a description of existing 13 facilities and resources as of the date of filing, including 14 any of the following: 15 (1) Generation facilities, which shall include all of the 16 following information for each generation facility: 17 (a) The type and nameplate capacity. 18 (b) The location. 19 (c) The age. 20 (d) The purpose and operational characteristics. 21 (e) The net capacity and annual output for each of the past 22 two calendar years. 23 (f) The fuel type and source and annual consumption of fuel 24 for each of the past two calendar years. 25 (g) The cost of construction. 26 (h) The depreciation and undepreciated balance. 27 (i) The projected useful life or scheduled date for removal 28 from service and reason for retirement. 29 (j) A decommissioning plan, if any. 30 (2) Transmission and distribution facilities, which shall 31 include all of the following information for each transmission 32 and distribution facility: 33 (a) The type and voltage. 34 (b) The location. 35 -4- LSB 5856XS (5) 90 lh/js 4/ 10

S.F. 2244 (c) The age. 1 (d) The cost of construction. 2 (e) The depreciation and undepreciated balance. 3 (f) The projected useful life or scheduled date of removal 4 from service and reason for retirement. 5 (3) Any facility or resource retirements or terminations 6 during the past two years or since submission of the last plan 7 update. 8 (4) Any additional data the board deems appropriate and may 9 require by rule. 10 c. The integrated resource plan shall include the projection 11 for demand for service for each of the next ten years, by 12 customer class and characteristic load shape, and the data 13 and assumptions supporting the projections. The plan shall 14 include projections for wholesale sale of generation output 15 to a purchaser outside the utility system but within Iowa, 16 and outside the state. The plan shall include a proposal to 17 provide safe, adequate, and reliable service to customers at 18 the lowest cost, in light of projected demand over the next ten 19 years. The plan shall identify the facilities and resources 20 that the utility proposes to use for these purposes. The plan 21 shall incorporate the construction, purchase, retirement, and 22 replacement of utility facilities and resources, as well as 23 contracting for resources or services that are alternatives 24 to or substitutes for utility ownership, including demand 25 response arrangements, energy efficiency measures, peak load 26 management, distributed generation, power purchase agreements, 27 and wholesale market purchases. 28 d. The plan shall include proposed facilities and resources 29 including any of the following: 30 (1) Proposed electric generation facilities, which shall 31 include all of the following information for each proposed 32 electric generation facility: 33 (a) The type and nameplate capacity. 34 (b) The location. 35 -5- LSB 5856XS (5) 90 lh/js 5/ 10

S.F. 2244 (c) The purpose and projected operational characteristics. 1 (d) The projected net capacity and annual output. 2 (e) The fuel type and source. 3 (f) The annual consumption of fuel and means of delivering 4 to the facility. 5 (g) The water source and annual consumption. 6 (h) The cost of construction. 7 (i) The projected annual depreciation and projected useful 8 life or scheduled date of removal from service and reason for 9 retirement. 10 (j) Plans for waste disposal and monitoring of emissions and 11 wastes. 12 (k) A decommissioning plan, if any. 13 (2) Proposed transmission and distribution facilities, 14 which shall include all of the following information for each 15 proposed transmission or distribution facility: 16 (a) The type and voltage. 17 (b) The expected location. 18 (c) The expected associated facilities. 19 (d) The cost of construction. 20 (e) The annual depreciation and projected useful life or 21 expected date of removal from service. 22 (3) Other proposed resources, including all of the 23 following information for each proposed resource: 24 (a) The nature of the resource. 25 (b) The relationship of the resource to safe and adequate 26 service. 27 (c) Contractual obligations and rights of parties. 28 (d) The projected annual cost to the utility. 29 (e) The projected annual benefits, duration, and other 30 information to be prescribed by the board. 31 e. (1) The plan shall include a comparative evaluation 32 of practicable alternative facilities and resources, which 33 shall consider cost, adequacy, and reliability. The plan shall 34 include analysis demonstrating that the proposed resource 35 -6- LSB 5856XS (5) 90 lh/js 6/ 10

S.F. 2244 options represent the means to achieve the purposes of safe, 1 adequate, and reliable service at the lowest cost, as compared 2 to all other practicable alternatives. 3 (2) The cost analysis shall reflect an evaluation of all 4 elements of the cost of the options, including construction 5 costs, financing costs including return on equity or debt, 6 useful life of the facility and depreciation, expenditures for 7 interconnection, projected transmission costs, operation and 8 maintenance, fuel expense, property taxes, rent and easements, 9 and an adjustment to reflect average capacity factors for the 10 type of generation facility and the need for redundancy for 11 intermittent generation. 12 (3) The cost analysis shall account for all tax aspects of 13 a proposed resource, including tax credits as applicable. For 14 purposes of the cost analysis, the projected tax credits shall 15 be reduced in proportion to Iowa’s share of federal income tax 16 revenues paid by Iowa residents in the most recent tax year. 17 (4) The cost analysis shall take account of the 18 necessary costs of complying with applicable laws, including 19 environmental laws and regulations, in effect at the time of 20 filing. The cost analysis shall not assign weight to other 21 societal or environmental purposes other than those identified 22 by this section. 23 (5) There shall be a rebuttable presumption in favor of 24 the selection of the least-cost option and against any other 25 analyzed option. The utility may rebut the presumption by 26 demonstrating to the board the need for a higher-cost option to 27 meet objectives of adequacy and reliability. 28 (6) The board may by rule require that all, or certain 29 defined, facilities or resources covered by a plan shall be 30 procured by the utility through a competitive process. 31 f. (1) A utility shall not include in the revenue 32 requirement for a rate application any investment, cost, or 33 expense for any reason within the required scope of a resource 34 plan that is not included in the current resource plan approved 35 -7- LSB 5856XS (5) 90 lh/js 7/ 10

S.F. 2244 by the board. 1 (2) The utility may apply to the board for rate recovery 2 of costs not covered by the most recent resource plan if 3 the utility can demonstrate exigent changed circumstances 4 warranting an exception to the prior planning requirement 5 and that the proposed expenditure represents the least-cost 6 reasonable option necessary to meet the needs of safe, 7 adequate, and reliable service. 8 (3) A utility may not apply for a franchise pursuant to 9 chapter 478 for any transmission facility that is not included 10 in the current resource plan. 11 (4) No investment shall be eligible for advance ratemaking 12 under section 476.53 unless it has been included in the most 13 recent resource plan approved by the board. 14 g. The plan shall include any energy efficiency plans 15 and demand response plans. An electric utility subject to 16 this section shall file an energy efficiency plan and demand 17 response plan with the integrated resource plan and adhere to 18 the timeline described in this section. An energy efficiency 19 plan and demand response plan shall not be subject to a 20 separate contested case proceeding and may only be addressed in 21 the contested case proceeding for the integrated resource plan. 22 h. The board shall by rule provide for a contested case 23 proceeding to consider a plan and update filed by a utility. 24 Upon the filing of a plan, the board and the office of consumer 25 advocate shall each review all materials and evidence filed by 26 the utility. The board and office shall have discovery powers 27 in the proceeding. The board may, subject to any measures the 28 board determines to be necessary to protect proprietary utility 29 information, require evidence and other information provided 30 to the board and office to be disclosed to an intervenor 31 and a stakeholder. The office shall file with the board an 32 evaluation of the filed plan and the board shall take into 33 account the analysis by the office in the determination by the 34 board. 35 -8- LSB 5856XS (5) 90 lh/js 8/ 10

S.F. 2244 i. The board shall by order approve or disapprove a filed 1 plan and may conditionally approve a plan subject to the filing 2 of a specific modification, not later than ten months after the 3 initial filing and not later than five months after an updated 4 filing. The board shall not approve a plan unless the utility 5 shows by a preponderance of evidence that implementation of the 6 plan can reasonably be expected to achieve the goals of safe, 7 adequate, and reliable service, and that the plan satisfies the 8 least-cost standard. 9 Sec. 6. REPEAL. Section 476.53A, Code 2024, is repealed. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to an electric utility filing an 14 integrated resource plan. 15 The bill directs the Iowa utilities board (board) to 16 seek safe, adequate, reliable, and affordable services and 17 nondiscriminatory rates for Iowa customers. 18 The bill prohibits a public utility from setting a different 19 rate for a customer of the same service class unless the public 20 utility demonstrates the measurable difference in costs of 21 providing the service. 22 The bill requires a rate-regulated electric utility to 23 file an integrated resource plan (plan) within one year of 24 the enactment of the bill. The plan shall be subject to a 25 contested case proceeding. The electric utility shall then 26 file an update to the initial plan three years after the 27 initial filing with any changes made since the initial filing. 28 Only the changes made from the initial filing shall be subject 29 to a contested case proceeding after the updated plan is filed. 30 The electric utility shall file a fully comprehensive plan 31 three years after the updated plan filing. The entire fully 32 comprehensive plan shall be subject to a contested case. 33 The bill requires a plan to include existing and proposed 34 facilities and resources, projected service demand, comparative 35 -9- LSB 5856XS (5) 90 lh/js 9/ 10

S.F. 2244 evaluations, cost analysis, and energy efficiency plans and 1 demand response plans. There shall be a rebuttable presumption 2 in favor of the least-cost option in the cost analysis. The 3 plan shall not include any investment, cost, or expense in 4 the revenue requirement for a rate application. An electric 5 utility may not apply for a franchise for any transmission 6 facility that is not already included in the current plan. No 7 investment shall be eligible for advance ratemaking unless it 8 is included in the most recent approved plan. 9 An electric utility required to file an energy efficiency 10 plan and demand response plan shall include the plans in the 11 integrated resource plan and shall not be subject to a separate 12 contested case proceeding for the energy efficiency plan 13 and demand response plan. An electric utility shall forego 14 the requirement of Code section 476.6 requiring an energy 15 efficiency plan and demand response plan to be filed every five 16 years. Instead, the electric utility shall adhere to the same 17 timeline included in the bill for the filing deadlines for the 18 energy efficiency plan and demand response plan. 19 The bill provides authority to the board to create by rule 20 the procedures for a contested case proceeding pursuant to the 21 bill. After the electric utility files the plan, the board and 22 the office of consumer advocate (office) shall review the plan. 23 The office shall submit an evaluation of the filed plan to the 24 board to use in determining approval of the plan. A plan may 25 be conditionally approved by the board within 10 months of the 26 initial filing or within 5 months of an updated filing. 27 Current law provides intent of the general assembly 28 to encourage the development of renewable electric power 29 generation, to use the renewable power to meet local electric 30 needs, and to develop transmission capacity to export wind 31 power generated in Iowa. The bill strikes this intent. 32 -10- LSB 5856XS (5) 90 lh/js 10/ 10