Senate File 2249 - Introduced SENATE FILE 2249 BY WEINER , DONAHUE , STAED , DREY , BLAKE , KNOX , ZIMMER , WINCKLER , QUIRMBACH , TRONE GARRIOTT , BENNETT , PETERSEN , DOTZLER , HARDMAN , and WAHLS A BILL FOR An Act relating to customer classes for large energy use 1 facilities, and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5673XS (4) 91 sb/js

S.F. 2249 Section 1. Section 476.6, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 22. Large energy use facilities. 3 a. For purposes of this subsection: 4 (1) “Costs of serving” includes, as applicable, the costs 5 incurred by an electric utility in providing transmission, 6 distribution, energy, capacity, or ancillary electricity 7 services, and any related costs or associated risks with 8 serving a customer class or customer. 9 (2) “Large energy use facility” means a facility that uses 10 or is able to use twenty megawatts or more and is primarily 11 engaged in providing a service as described under code number 12 518210 of the North American industry classification system. 13 b. The commission shall create a customer class for each 14 customer that is a large energy use facility. The customer 15 class must be separate and distinct from customer classes for 16 other customers and have its own rates, charges, and schedules. 17 Any rate, charge, or schedule approved by the commission for 18 the class must meet all of the following requirements: 19 (1) Directly assign the costs of serving to the customer. 20 (2) Mitigate the risk of other customer classes paying 21 unwarranted costs. 22 (3) Mitigate the risk of shifting, in an unwarranted manner, 23 the costs of serving a customer that is a large energy use 24 facility to other customer classes, including costs incurred by 25 an electric utility to meet load requirements resulting from 26 the provision of electricity service to a customer that is a 27 large energy use facility. 28 c. In deciding whether to approve a proposed rate, charge, 29 or schedule of an electric utility for a customer class 30 described under this subsection, the commission shall consider 31 whether the rate, charge, or schedule may do any of the 32 following: 33 (1) Result in, or have the potential to result in, increased 34 costs or unwarranted risk to other customers. 35 -1- LSB 5673XS (4) 91 sb/js 1/ 3

S.F. 2249 (2) Provide for equitable contributions to grid efficiency, 1 reliability, and resiliency benefits. 2 (3) Meet any other conditions the commission may require in 3 the public interest. 4 d. An electric utility and a customer that is a large 5 energy use facility are not required to use a classification of 6 service provided for under this subsection if the commission 7 has not approved for the electric utility a rate, charge, or 8 schedule for that classification of service. 9 Sec. 2. APPLICABILITY. This Act applies to electric utility 10 services provided to large energy use facilities constructed or 11 expanded on or after January 1, 2027. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to customer classes for large energy use 16 facilities. 17 The bill defines “costs of serving” to include, as 18 applicable, the costs incurred by an electric utility in 19 providing transmission, distribution, energy, capacity, or 20 ancillary electricity services, and any related costs or 21 associated risks with serving a customer class or customer. 22 The bill defines “large energy use facility” as a facility 23 that uses or is able to use 20 megawatts or more and that is 24 primarily engaged in providing a service described under code 25 number 518210 of the North American industry classification 26 system. 27 The bill requires the utilities commission to create a 28 customer class for each customer that is a large energy use 29 facility. The customer class must be separate and distinct 30 from customer classes for other customers and must have its 31 own rates, charges, and schedules. The bill provides that 32 any rate, charge, or schedule approved by the commission for 33 a large energy use facility customer must directly assign the 34 costs of serving the customer, mitigate the risk of other 35 -2- LSB 5673XS (4) 91 sb/js 2/ 3

S.F. 2249 customer classes paying unwarranted costs, and mitigate the 1 risk of shifting, in an unwarranted manner, the costs of 2 serving a large energy use facility to other customer classes. 3 The bill specifies that these costs include costs incurred by 4 an electric utility to meet load requirements resulting from 5 providing electricity service to a large energy use facility. 6 The bill requires the commission, when deciding whether 7 to approve a proposed rate, charge, or schedule for a large 8 energy use facility customer class, to consider whether the 9 proposal may result in or have the potential to result in 10 increased costs or unwarranted risk to other customers, whether 11 the proposal provides for equitable contributions to grid 12 efficiency, reliability, and resiliency benefits, and whether 13 the proposal meets any other conditions the commission may 14 require in the public interest. 15 The bill provides that an electric utility and a customer 16 that is a large energy use facility are not required to use 17 the customer classification created under the bill if the 18 commission has not approved a rate, charge, or schedule for 19 that classification of service. 20 The bill applies to electric utility services provided to 21 large energy use facilities constructed or expanded on or after 22 January 1, 2027. 23 -3- LSB 5673XS (4) 91 sb/js 3/ 3