H.F. 2365 Section 1. Section 476.6, subsections 7 and 8, Code 2026, 1 are amended to read as follows: 2 7. Limitation on Frequency of filings. 3 a. A public utility shall not make a subsequent filing of 4 an application for a new or changed rate, charge, schedule, 5 or regulation which that relates to services for which a rate 6 filing is pending within twelve months following the date the 7 prior application was filed or until the commission has issued 8 a final order on the prior application, whichever date is 9 earlier, unless the public utility applies to the commission 10 for authority and receives authority to make a subsequent 11 filing at an earlier date. 12 b. Not later than July 1, 2029, and at least every 13 three years thereafter, an electric utility required to be 14 rate-regulated shall file a general rate case in which the 15 commission shall confirm that the utility’s rates, cost 16 allocations, and all other provisions of its tariff are just 17 and reasonable and based on each customer or customer group’s 18 actual cost of service. If, on July 1, 2026, a utility has not 19 filed a general rate case since July 1, 2023, the utility shall 20 file a new general rate case by December 31, 2027. 21 8. Automatic adjustments. 22 a. This Unless otherwise provided in this subsection, 23 this chapter does not prohibit a public utility from making 24 provision for the automatic adjustment of rates and charges for 25 public utility service provided that a schedule showing the 26 automatic adjustment of rates and charges is first filed with 27 and approved by the commission. 28 b. A Unless otherwise provided in this subsection, a 29 public utility may automatically adjust rates and charges to 30 recover costs related to transmission incurred by or charged 31 to the public utility consistent with a tariff or agreement 32 that is subject to the jurisdiction of the federal energy 33 regulatory commission, provided that a schedule showing the 34 automatic adjustment of rates and charges is first filed with 35 -1- LSB 6666YH (4) 91 sb/js 1/ 7

H.F. 2365 and approved by the commission. The commission shall adopt 1 rules regarding the reporting of transmission expenses and 2 transmission-related activity pursuant to this paragraph. 3 c. This subchapter prohibits an electric utility required 4 to be rate-regulated from making provisions for the automatic 5 adjustment of rates and charges for a public utility. 6 d. An electric utility required to be rate-regulated shall 7 not automatically adjust rates and charges to recover costs 8 related to transmission incurred or charged to the public 9 utility. 10 e. For an electric utility required to be rate-regulated, 11 as of the first filing under subsection 7, paragraph “b” , and 12 continuing thereafter, any cost or expense recovered through 13 an automatic adjustment mechanism, tracker, or rider shall 14 be included and only adjusted in a general rate case under 15 subsection 7, paragraph “b” . 16 Sec. 2. Section 476.53, subsection 2, Code 2026, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . c. Customer-owned generation and storage 19 is vital to cost-effectively meeting rising demand for 20 electricity. Virtual power plants are a collection of 21 customer-owned distributed generation resources and energy 22 storage devices managed and dispatched by a common control 23 mechanism, which may only be located in the service territory 24 of a rate-regulated electric utility. Virtual power plants 25 shall not be considered public utilities under this chapter. 26 The commission shall promulgate rules that provide a process 27 and standards for the commission’s approval and oversight of 28 virtual power plants, including information the commission 29 finds necessary for the evaluation of a virtual power plant 30 proposal. Such information shall include the nature of the 31 resources that may participate in a virtual power plant, 32 the entities who may propose virtual power plants, and the 33 estimated benefits to customers in the service territory in 34 which the virtual power plant will operate. The commission 35 -2- LSB 6666YH (4) 91 sb/js 2/ 7

H.F. 2365 shall not approve or continue to allow the operation of a 1 virtual power plant if the virtual power plant does not, under 2 standards established by the commission, benefit the customers 3 in the service territory in which the virtual power plant 4 operates. 5 Sec. 3. NEW SECTION . 476.53B Integrated resource planning. 6 1. To implement the intent of the general assembly as set 7 forth in sections 476.53 and 476.53A, each rate-regulated 8 public utility shall file with the commission an integrated 9 resource plan every three years, with the first plan due 10 July 1, 2027. The commission shall promulgate rules for the 11 development and evaluation of integrated resource plans. At a 12 minimum, the rules shall include all of the following: 13 a. A process under which a utility files a new plan every 14 three years that includes a five-year and a twenty-year 15 planning horizon. 16 b. A quantitative comparative analysis of multiple resource 17 mixes to serve anticipated customer needs using industry best 18 practices, including capacity expansion and production cost 19 modeling that include all of the following for both planning 20 horizons: 21 (1) Existing and potential generating resources needed to 22 serve customers, including competitively procured purchase 23 power agreements and market purchase. 24 (2) The process for determining the forecast projects, 25 costs, and other inputs and assumptions to be used in an 26 integrated resource plan by all parties. It is the intent of 27 the general assembly that the utilities use uniform scenarios, 28 inputs, assumptions, and sources of data. 29 (3) An assessment of customer costs and seasonal 30 reliability. 31 (4) Resources including energy efficiency, demand response, 32 peak load conservation, and distributed generation plans, 33 as described elsewhere in this chapter, that will assist in 34 meeting energy and capacity needs. 35 -3- LSB 6666YH (4) 91 sb/js 3/ 7

H.F. 2365 (5) A utility’s energy and capacity forecasts, for existing 1 and potential generating resources, as described elsewhere 2 in this chapter, including filings made with any federal or 3 regional authority. The forecast shall include but is not 4 limited to a forecast of the requirements of customers, its 5 anticipated sources of supply, and its anticipated means of 6 addressing the forecasted electric generating needs. 7 (6) Transmission and distribution upgrades and expansion 8 plans needed to reliably serve the utility’s customers and 9 integrate each potential resource, and the associated costs 10 of such plans in connection with the various resource mixes 11 proposed. 12 c. Determination of eligibility for access to modeling 13 software and data, including access to appropriate data from 14 the utilities’ production cost model scenarios. The commission 15 may determine the number of parties eligible for access to the 16 modeling software. 17 d. The ability of parties eligible for access to the 18 modeling software license to have at least four alternative 19 scenarios and a process to best balance and represent the input 20 of the respective parties. The alternative scenarios will be 21 included on equal footing with utility scenarios. 22 e. Annual reporting on the performance of the plan and any 23 nonmaterial updates. 24 f. Mechanisms for the utility to make, or for the 25 commission, the office of consumer advocate, or customers 26 to request, updates or modifications to the plan to reflect 27 material changes. 28 g. Other rules for the development and evaluation of 29 integrated resource plans the commission deems necessary or 30 appropriate. 31 2. The commission shall ensure the public has maximum 32 access to information, while protecting only the necessary 33 confidential information of the utility. The commission shall 34 require a uniform nondisclosure agreement that allows as much 35 -4- LSB 6666YH (4) 91 sb/js 4/ 7

H.F. 2365 access as possible to data and information, including that data 1 deemed by the commission as confidential. 2 3. Any proposed deviation from an integrated resource plan 3 must be demonstrated by the utility to be in the best interest 4 of customers when rate recovery or other approval of the 5 generation facility is sought. 6 4. The commission may employ additional temporary staff, or 7 may contract for professional services with persons who are not 8 state employees, as the commission deems necessary to perform 9 required functions as provided in this section, including but 10 not limited to promulgating rules for the development and 11 evaluation of resource plans. The costs of the additional 12 staff and services shall be assessed to the utilities pursuant 13 to the procedure in sections 475A.6 and 476.10. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to the regulation of public utilities, 18 including rate filings, rate adjustment mechanisms, 19 customer-owned resources, virtual power plants, and integrated 20 resource planning. 21 The bill requires each electric utility subject to rate 22 regulation, no later than July 1, 2029, and at least every 23 three years thereafter, to file a general rate case in which 24 the Iowa utilities commission (commission) must confirm that 25 rates, cost allocations, and other provisions of the utility’s 26 tariff are just and reasonable and based on actual cost of 27 service. Utilities that have not filed a general rate case 28 since July 1, 2023, are required to file a general rate case by 29 December 31, 2027. 30 Under current law, a public utility is permitted to make 31 provisions for the automatic adjustment of rates and charges 32 provided certain criteria are met. The bill prohibits the 33 use of automatic adjustment provisions for electric utilities 34 subject to rate regulation. For electric utilities subject to 35 -5- LSB 6666YH (4) 91 sb/js 5/ 7

H.F. 2365 rate regulation, beginning with the first general rate case 1 filed under the bill, the bill requires costs or expenses 2 recovered through automatic adjustment mechanisms, trackers, 3 or riders to be included and adjusted only through a general 4 rate case. 5 The bill recognizes that customer-owned generation and 6 storage is vital to cost-effectively meeting rising demand 7 for electricity. The bill describes virtual power plants 8 as collections of customer-owned distributed generation and 9 energy storage resources managed by a common control mechanism 10 within a utility’s service territory. The bill provides that 11 virtual power plants are not public utilities and requires 12 the commission to adopt rules establishing standards and 13 processes for approval and oversight. The bill prohibits the 14 commission from approving or allowing continued operation of a 15 virtual power plant if the virtual power plant does not benefit 16 customers in the service territory. 17 The bill requires each rate-regulated public utility to 18 file an integrated resource plan every three years, with the 19 first plan due July 1, 2027. The bill directs the commission 20 to adopt rules governing the development and evaluation of 21 integrated resource plans. The plans must include 5-year 22 and 20-year planning horizons and a quantitative comparative 23 analysis of multiple resource mixes to serve anticipated 24 customer needs using industry best practices. The rules 25 adopted by the commission must also address a determination 26 of eligibility for access to modeling software and data, 27 including the ability for eligible parties to have alternative 28 scenarios and a process to best balance and represent the 29 input of the respective parties. The bill provides the rules 30 adopted must also include requirements for annual reporting on 31 plan performance, as well as mechanisms for plan updates or 32 modifications in response to material changes and any other 33 rule for the development and evaluation of integrated resource 34 plans the commission deems necessary or appropriate. 35 -6- LSB 6666YH (4) 91 sb/js 6/ 7

H.F. 2365 The bill directs the commission to maximize public access 1 to information while protecting only necessary confidential 2 information through uniform disclosure agreements. The bill 3 requires any deviation from an integrated resource plan to be 4 demonstrated to be in the best interest of the customers when 5 rate recovery approval is sought. 6 The bill allows the commission or consumer advocate to 7 employ additional staff or contract for professional services 8 with persons who are not state employees for the development 9 of rules for the filing and review of resource plans or to 10 aid the commission in the review and approval, disapproval, 11 or modification of a plan. The costs of the additional staff 12 services shall be assessed to the utilities. 13 -7- LSB 6666YH (4) 91 sb/js 7/ 7