HF 2729 (LSB 5060YH (9) 91)

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 rates or charges by gas and electric public utilities, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476.1A, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  f.  Rate and charge adjustment prohibitions before December 31, 2030, as set forth in section 476.6, subsections 1A, 8, and 9.
    Sec. 2.  Section 476.1B, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  Rate and charge adjustment prohibitions before December 31, 2030, as set forth in section 476.6, subsections 1A, 8, and 9.
    Sec. 3.  Section 476.1C, subsection 1, paragraph a, Code 2026, is amended to read as follows:
   a.  Are not subject to the regulation authority of the utilities commission under this chapter unless otherwise specifically provided. Sections Section 476.6, subsections 1A, 8, and 9, and sections 476.10, 476.20, 476.21, and 476.51 apply to such gas utilities.
    Sec. 4.  Section 476.6, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  Moratorium.  A public utility shall not make effective a new or changed rate, charge, schedule, or regulation that will result in an increase of any rate or charge for gas or electric service on a customer’s bill on or before December 31, 2030.
    Sec. 5.  Section 476.6, subsection 8, Code 2026, is amended to read as follows:
   8.  Automatic adjustments.
   a.  This chapter does not prohibit a public utility from making provision for the automatic adjustment of rates and charges for public utility service, except as provided in paragraph “c”, provided that a schedule showing the automatic adjustment of rates and charges is first filed with and approved by the commission.
   b.  A public utility may automatically adjust rates and charges to recover costs related to transmission incurred by or charged to the public utility consistent with a tariff or agreement that is subject to the jurisdiction of the federal energy regulatory commission, except as provided in paragraph “c”, provided that a schedule showing the automatic adjustment of rates and charges is first filed with and approved by the commission. The commission shall adopt rules regarding the reporting of transmission expenses and transmission-related activity pursuant to this paragraph.
   c.  A public utility shall not automatically adjust rates or charges, pursuant to any schedule, tariff, or agreement, that will result in an increase of any rate or charge for gas or electric service on a customer’s bill on or before December 31, 2030.
    Sec. 6.  Section 476.6, subsection 9, paragraph a, Code 2026, is amended to read as follows:
   a.  A public utility may choose to place in effect temporary rates, charges, schedules, or regulations without commission review on or after ten days following the filing date under this section, except as provided in paragraph “d”. If the utility chooses to place such rates, charges, schedules, or regulations in effect, the utility shall file with the commission a bond or other corporate undertaking approved by the commission conditioned upon the refund in a manner prescribed by the commission of amounts collected in excess of the amounts which that would have been collected under rates, charges, schedules, or regulations finally approved by the commission. At the conclusion of the proceeding if the commission determines that the temporary rates, charges, schedules, or regulations placed in effect under this paragraph were not based on previously established regulatory principles, the commission shall consider ordering refunds based upon the overpayments made by each individual customer class, rate zone, or customer group. If the commission has not rendered a final decision with respect to suspended rates, charges, schedules, or regulations upon the expiration of ten months after the filing date, plus the length of any delay that necessarily results either from the failure of the public utility to exercise due diligence in connection with the proceedings or from intervening judicial proceedings, plus the length of any extension permitted by section 476.33, subsection 3, then such temporary rates, charges, schedules, or regulations placed into effect on a temporary basis shall be deemed finally approved by the commission and the utility may place them into effect on a permanent basis.
    Sec. 7.  Section 476.6, subsection 9, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  A public utility shall not place in effect temporary rates, charges, schedules, or regulations that will result in an increase of any rate or charge for gas or electric service on a customer’s bill on or before December 31, 2030.
    Sec. 8.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes a temporary prohibition on an increase in rates or charges by gas and electric public utilities.
   The bill prohibits a public utility from making effective a new or changed rate, charge, schedule, or regulation that will result in an increase of any rate or charge for gas or electric service on a customer’s bill on or before December 31, 2030. This rate freeze applies to all public utilities providing gas or electric service and all rate, charge, schedule, and regulation changes, including automatic adjustments and temporary adjustments.
   The bill authorizes the Iowa utilities commission to regulate this rate freeze for smaller gas or electric public utilities, electric cooperative corporations and associations, and municipally owned utilities.
   The bill takes effect upon enactment.