House Study Bill 527 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON YOUNG) A BILL FOR An Act relating to a public utility’s ability to provide 1 nonutility service and repair of residential heating, 2 ventilation, and air conditioning systems. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5597YC (6) 91 sb/js

H.F. _____ Section 1. Section 476.78, Code 2026, is amended to read as 1 follows: 2 476.78 Cross-subsidization prohibited. 3 1. A public utility shall not directly or indirectly include 4 any costs or expenses attributable to providing nonutility 5 service in regulated rates or charges. 6 2. a. Except for contracts existing as of July 1, 1996 as 7 provided in paragraph “b” , a public utility or its affiliates 8 shall not use vehicles, service tools and instruments, or 9 employees, the costs, salaries, or benefits of which are 10 recoverable in the regulated rates for electric service 11 or gas service to install, service, or repair residential 12 or commercial gas or electric heating, ventilating, or 13 air conditioning systems, or interior lighting systems and 14 fixtures ; or to . 15 b. A public utility with fewer than two hundred fifty 16 thousand customers may service and repair residential heating, 17 ventilation, and air conditioning systems in a manner that 18 complies with section 476.79. A public utility providing these 19 services shall comply with the applicable sections of chapters 20 103 and 105. 21 c. A public utility or its affiliates shall not sell at 22 retail heating, ventilating, air conditioning, or interior 23 lighting equipment. 24 3. For the purpose of this section , “commercial” means a 25 place of business primarily used for the storage or sale, at 26 wholesale or retail, of goods, wares, services, or merchandise. 27 4. Nothing in this section shall be construed to prohibit a 28 public utility from using its utility vehicles, service tools 29 and instruments, and employees to market systems, services, 30 and equipment, to light pilots, or to eliminate a customer 31 emergency or threat to public safety. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 5597YC (6) 91 sb/js 1/ 2

H.F. _____ This bill relates to a public utility’s ability to provide 1 nonutility service and repair of residential heating, 2 ventilation, and air conditioning systems. 3 Under current law, a public utility or its affiliates may not 4 use certain resources, the benefits of which are recoverable 5 in the regulated rates for electric service or gas service, to 6 install, service, or repair residential or commercial gas or 7 electric heating, ventilating, or air conditioning systems, or 8 interior lighting systems and fixtures. 9 The bill allows a public utility with fewer than 250,000 10 customers to service and repair residential heating, 11 ventilation, and air conditioning systems in a manner that 12 complies with applicable Code provisions, including keeping 13 records of nonutility service and following applicable 14 licensure requirements. 15 -2- LSB 5597YC (6) 91 sb/js 2/ 2