HSB 522 (LSB 5422YC (4) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON YOUNG)

A BILL FOR

An Act relating to electric utility resource planning.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476.53, subsection 3, paragraph c, subparagraph (2), Code 2026, is amended to read as follows:
   (2)  The rate-regulated public utility has demonstrated to the commission that the public utility has considered other sources for long-term electric supply and that the facility or lease is reasonable when compared to other feasible alternative sources of supply. The rate-regulated public utility shall provide support of reasonability with an electric utility resource plan pursuant to section 476.53B that has been updated no more than twenty-four months prior to the filing of the public utility’s application.
    Sec. 2.  NEW SECTION.  476.53B  Electric utility resource planning.
   1.  An electric utility required to be rate-regulated by the commission shall file a resource plan at least once every three years. A resource plan shall consider all reasonable resources proposed by the utility for meeting the probable future demand for energy, including supply resources and conservation and management of demand to meet the utility’s probable future demand over five-year and twenty-year horizons. For conservation and management of demand, an electric utility’s resource plan shall include programs approved in the electric utility’s most recent energy efficiency plan approved by the commission under section 476.6, subsection 15. The objectives of a resource plan include but are not limited to adequate, reasonable, and reliable energy service considering costs, fuel diversity, and probable future demand for energy. A resource plan shall not require a specific outcome or specific investment decisions, but an electric utility shall include proposed resource additions for each scenario studied. A resource plan shall reflect the circumstances and management judgment of an electric utility. This section does not restrict an electric utility from making planning decisions based on future resource needs subject to the ratemaking oversight of the commission, as described in section 476.53, subsection 3.
   2.  The commission shall review a resource plan. Within ninety days of filing the final resource plan, the commission shall issue an order acknowledging it has received the plan. In the order acknowledging receipt, the commission may provide recommendations to an electric utility regarding any additional analyses or actions that the electric utility shall include in its next resource plan.
   3.  The commission shall adopt rules pursuant to chapter 17A regarding the timeline and stakeholder process to review and provide comments on a resource plan. The stakeholder process shall include the electric utility organizing and facilitating stakeholder conferences for the resource plan, providing reasonable access to data, and providing the opportunity for stakeholders to provide comments during the plan’s development and after the plan is submitted to the commission. The stakeholder conferences shall include representatives from the commission, the consumer advocate, the electric utility’s customers, and the state load forecasting center. The electric utility may inform and consider input from the commission, the consumer advocate, stakeholders, and the state load forecasting center. In addition to participating in the stakeholder conferences, the state load forecasting center may provide technical assistance to other stakeholders.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to electric utility resource planning for rate-regulated utilities.
   The bill requires a rate-regulated public utility seeking ratemaking principles to provide support of reasonability with an electric utility resource plan that has been updated within 24 months of filing an application.
   The bill requires rate-regulated electric utilities to file a resource plan at least once every three years. The resource plan must consider all reasonable resources by the utility for meeting the probable future demand for energy, including supply resources and conservation and management of demand to meet the utility’s probable future demand over 5-year and 20-year horizons. For conservation and management of demand, the resource plan shall include programs approved in the electric utility’s most recently approved energy efficiency plan. The objectives of the resource plan include but are not limited to adequate, reasonable, and reliable energy service considering costs, fuel diversity, and probable future demand for energy, and should reflect the circumstances and management judgment of the electric utility. The resource plan shall not require specific outcomes or specific investment decisions, but the electric utility shall include proposed resource additions for each scenario studied.
   The bill directs the commission to issue an order within 90 days of the resource plan acknowledging receipt of the plan. This order may provide recommendations to an electric utility regarding any additional analyses or actions that the electric utility must include in its next resource plan.
   The bill directs the commission to adopt rules regarding the timeline and stakeholder process to review and provide comments on the resource plan. The stakeholder process shall include the electric utility organizing and facilitating stakeholder conferences with representatives of the commission, the consumer advocate, the electric utility’s customers, and the state load forecasting center. The bill authorizes the electric utility to inform and consider input from the commission, the consumer advocate, stakeholders, and the state load forecasting center. The bill also allows the state load forecasting center to provide technical assistance to other stakeholders.