House File 2238 - Introduced HOUSE FILE 2238 BY SHIPLEY A BILL FOR An Act providing for a study to determine the cost and 1 feasibility of acquiring certain public utilities or their 2 assets. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6573YH (2) 91 sb/js
H.F. 2238 Section 1. DEPARTMENT OF ADMINISTRATIVE SERVICES —— 1 ACQUIRING CERTAIN PUBLIC UTILITIES —— STUDY. 2 1. The general assembly finds that certain public utilities 3 subject to rate regulation are derelict in their obligation to 4 their customers with conduct that is unsuitable for an entity 5 enjoying the immense privilege of a government-sanctioned 6 monopoly. 7 2. The department of administrative services shall work 8 with an investment firm, selected at the discretion of the 9 department, to conduct a study determining the cost and 10 feasibility of the state of Iowa acquiring a public utility 11 subject to rate regulation under chapter 476, or the public 12 utility’s assets within the state, that provides electric 13 and natural gas service to more than two hundred thousand 14 customers in the state and is headquartered outside of Iowa. 15 The department shall determine the cost and feasibility of 16 reorganizing or reallocating the assets of any such public 17 utility in a way that maximizes the benefit to electric and 18 natural gas customers within the public utility’s current 19 service territory. The department shall submit a report 20 detailing its findings and recommendations to the general 21 assembly on or before December 15, 2026. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill provides for a study to determine the cost and 26 feasibility of the state of Iowa acquiring certain public 27 utilities or their assets. 28 The bill includes legislative findings stating that certain 29 public utilities subject to rate regulation are derelict in 30 their obligations to customers and have engaged in conduct 31 unsuitable for entities operating as government-sanctioned 32 monopolies. 33 The bill requires the department of administrative services 34 (department) to work with a large investment firm, selected at 35 -1- LSB 6573YH (2) 91 sb/js 1/ 2
H.F. 2238 the department’s discretion, to conduct a study to determine 1 the cost and feasibility of the state of Iowa acquiring a 2 public utility that is subject to rate regulation under Code 3 chapter 476, or the public utility’s assets within the state, 4 that provides electric and natural gas service to more than 5 200,000 customers in Iowa and is headquartered outside the 6 state. 7 The bill further requires the study to determine the cost 8 and feasibility of reorganizing or reallocating the assets of 9 any such public utility in a way that maximizes the benefit to 10 electric and natural gas customers within the utility’s current 11 service territory. The bill requires the department to submit 12 a report detailing its findings and recommendations to the 13 general assembly by December 15, 2026. 14 -2- LSB 6573YH (2) 91 sb/js 2/ 2