HF 2238 (LSB 6573YH (2) 91)

HOUSE FILE 2238

BY  SHIPLEY

A BILL FOR

An Act providing for a study to determine the cost and feasibility of acquiring certain public utilities or their assets.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  DEPARTMENT OF ADMINISTRATIVE SERVICES —— ACQUIRING CERTAIN PUBLIC UTILITIES —— STUDY.
   1.  The general assembly finds that certain public utilities subject to rate regulation are derelict in their obligation to their customers with conduct that is unsuitable for an entity enjoying the immense privilege of a government-sanctioned monopoly.
   2.  The department of administrative services shall work with an investment firm, selected at the discretion of the department, to conduct a study determining the cost and feasibility of the state of Iowa acquiring a public utility subject to rate regulation under chapter 476, or the public utility’s assets within the state, that provides electric and natural gas service to more than two hundred thousand customers in the state and is headquartered outside of Iowa. The department shall determine the cost and feasibility of reorganizing or reallocating the assets of any such public utility in a way that maximizes the benefit to electric and natural gas customers within the public utility’s current service territory. The department shall submit a report detailing its findings and recommendations to the general assembly on or before December 15, 2026.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides for a study to determine the cost and feasibility of the state of Iowa acquiring certain public utilities or their assets.
   The bill includes legislative findings stating that certain public utilities subject to rate regulation are derelict in their obligations to customers and have engaged in conduct unsuitable for entities operating as government-sanctioned monopolies.
   The bill requires the department of administrative services (department) to work with a large investment firm, selected at the department’s discretion, to conduct a study to determine the cost and feasibility of the state of Iowa acquiring a public utility that is subject to rate regulation under Code chapter 476, or the public utility’s assets within the state, that provides electric and natural gas service to more than 200,000 customers in Iowa and is headquartered outside the state.
   The bill further requires the study to determine the cost and feasibility of reorganizing or reallocating the assets of any such public utility in a way that maximizes the benefit to electric and natural gas customers within the utility’s current service territory. The bill requires the department to submit a report detailing its findings and recommendations to the general assembly by December 15, 2026.