House File 2729 - Introduced HOUSE FILE 2729 BY B. MEYER , WILSON , KRESSIG , BAETH , CROKEN , R. JOHNSON , RAMIREZ , WICHTENDAHL , BROWN-POWERS , MATSON , KONFRST , WILBURN , LEVIN , WESSEL-KROESCHELL , OLSON , and EHLERT A BILL FOR An Act establishing a temporary prohibition on an increase in 1 rates or charges by gas and electric public utilities, and 2 including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5060YH (9) 91 sb/js

H.F. 2729 Section 1. Section 476.1A, subsection 1, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . f. Rate and charge adjustment prohibitions 3 before December 31, 2030, as set forth in section 476.6, 4 subsections 1A, 8, and 9. 5 Sec. 2. Section 476.1B, subsection 1, Code 2026, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . g. Rate and charge adjustment prohibitions 8 before December 31, 2030, as set forth in section 476.6, 9 subsections 1A, 8, and 9. 10 Sec. 3. Section 476.1C, subsection 1, paragraph a, Code 11 2026, is amended to read as follows: 12 a. Are not subject to the regulation authority of the 13 utilities commission under this chapter unless otherwise 14 specifically provided. Sections Section 476.6, subsections 1A, 15 8, and 9, and sections 476.10 , 476.20 , 476.21 , and 476.51 apply 16 to such gas utilities. 17 Sec. 4. Section 476.6, Code 2026, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 1A. Moratorium. A public utility shall 20 not make effective a new or changed rate, charge, schedule, 21 or regulation that will result in an increase of any rate or 22 charge for gas or electric service on a customer’s bill on or 23 before December 31, 2030. 24 Sec. 5. Section 476.6, subsection 8, Code 2026, is amended 25 to read as follows: 26 8. Automatic adjustments. 27 a. This chapter does not prohibit a public utility from 28 making provision for the automatic adjustment of rates and 29 charges for public utility service , except as provided in 30 paragraph “c” , provided that a schedule showing the automatic 31 adjustment of rates and charges is first filed with and 32 approved by the commission. 33 b. A public utility may automatically adjust rates and 34 charges to recover costs related to transmission incurred by 35 -1- LSB 5060YH (9) 91 sb/js 1/ 4

H.F. 2729 or charged to the public utility consistent with a tariff or 1 agreement that is subject to the jurisdiction of the federal 2 energy regulatory commission, except as provided in paragraph 3 “c” , provided that a schedule showing the automatic adjustment 4 of rates and charges is first filed with and approved by the 5 commission. The commission shall adopt rules regarding the 6 reporting of transmission expenses and transmission-related 7 activity pursuant to this paragraph. 8 c. A public utility shall not automatically adjust rates or 9 charges, pursuant to any schedule, tariff, or agreement, that 10 will result in an increase of any rate or charge for gas or 11 electric service on a customer’s bill on or before December 31, 12 2030. 13 Sec. 6. Section 476.6, subsection 9, paragraph a, Code 2026, 14 is amended to read as follows: 15 a. A public utility may choose to place in effect temporary 16 rates, charges, schedules, or regulations without commission 17 review on or after ten days following the filing date under 18 this section , except as provided in paragraph “d” . If the 19 utility chooses to place such rates, charges, schedules, 20 or regulations in effect, the utility shall file with the 21 commission a bond or other corporate undertaking approved 22 by the commission conditioned upon the refund in a manner 23 prescribed by the commission of amounts collected in excess 24 of the amounts which that would have been collected under 25 rates, charges, schedules, or regulations finally approved 26 by the commission. At the conclusion of the proceeding if 27 the commission determines that the temporary rates, charges, 28 schedules, or regulations placed in effect under this paragraph 29 were not based on previously established regulatory principles, 30 the commission shall consider ordering refunds based upon the 31 overpayments made by each individual customer class, rate zone, 32 or customer group. If the commission has not rendered a final 33 decision with respect to suspended rates, charges, schedules, 34 or regulations upon the expiration of ten months after the 35 -2- LSB 5060YH (9) 91 sb/js 2/ 4

H.F. 2729 filing date, plus the length of any delay that necessarily 1 results either from the failure of the public utility to 2 exercise due diligence in connection with the proceedings or 3 from intervening judicial proceedings, plus the length of any 4 extension permitted by section 476.33, subsection 3 , then such 5 temporary rates, charges, schedules, or regulations placed into 6 effect on a temporary basis shall be deemed finally approved by 7 the commission and the utility may place them into effect on 8 a permanent basis. 9 Sec. 7. Section 476.6, subsection 9, Code 2026, is amended 10 by adding the following new paragraph: 11 NEW PARAGRAPH . d. A public utility shall not place in 12 effect temporary rates, charges, schedules, or regulations that 13 will result in an increase of any rate or charge for gas or 14 electric service on a customer’s bill on or before December 31, 15 2030. 16 Sec. 8. EFFECTIVE DATE. This Act, being deemed of immediate 17 importance, takes effect upon enactment. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill establishes a temporary prohibition on an increase 22 in rates or charges by gas and electric public utilities. 23 The bill prohibits a public utility from making effective a 24 new or changed rate, charge, schedule, or regulation that will 25 result in an increase of any rate or charge for gas or electric 26 service on a customer’s bill on or before December 31, 2030. 27 This rate freeze applies to all public utilities providing 28 gas or electric service and all rate, charge, schedule, 29 and regulation changes, including automatic adjustments and 30 temporary adjustments. 31 The bill authorizes the Iowa utilities commission to 32 regulate this rate freeze for smaller gas or electric public 33 utilities, electric cooperative corporations and associations, 34 and municipally owned utilities. 35 -3- LSB 5060YH (9) 91 sb/js 3/ 4