Senate Study Bill 1059 - IntroducedA Bill ForAn Act 1relating to plan, update, and budget review of
2rate-regulated electric utilities, and including effective
3date provisions.
1   Section 1.  Section 476.6, subsection 16, Code 2023, is
2amended to read as follows:
   316.  Filing of forecasts.  The board shall periodically
4require each rate-regulated gas or electric public utility
5to file a forecast of future gas requirements or electric
6generating needs
and the board shall evaluate the forecast.
7The forecast shall include but is not limited to a forecast of
8the requirements of its customers, its anticipated sources of
9supply, and its anticipated means of addressing the forecasted
10gas requirements or electric generating needs.
11   Sec. 2.  Section 476.6, subsection 19, Code 2023, is amended
12to read as follows:
   1319.  Electric power generating facility emissions Biannual
14resource planning
   15a.  It is the intent of the general assembly that the state,
16through a collaborative effort involving state agencies and
17affected generation owners, provide for compatible statewide
18environmental and electric energy policies with respect
19to regulated emissions from rate-regulated electric power
20generating facilities in the state that are fueled by coal.

21 Each rate-regulated public utility that is an owner of one or
22more electric power generating facilities fueled by coal and
23located in this state on July 1, 2001,
 owns or operates an
24electric power generating facility
shall develop a multiyear
25plan and budget for managing regulated emissions from its
26facilities in a cost-effective manner
 the area served by the
27utility that provides reliable, secure, and low-emission
28electricity at the lowest cost
   29b.  The plan and budget shall include a minimum of all of the
   31(1)  The future projected electricity requirements of the
   33(2)  The projected electricity resources mix, capacity, and
34infrastructure needed to meet the projected requirements.
   35(3)  The future potential demand response capabilities of
-1-1the area.
   2(4)  The future nonutility energy resources in the area,
3including both generation and storage.
   4(5)  Planning to efficiently leverage demand response
5and nonutility energy resources to reduce costs and increase
   7(6)  Alternate planning scenarios for meeting the projected
8electricity requirements.
   9(7)  Additional information that the board deems necessary
10pursuant to this section.
   (1)  The initial multiyear plan and budget shall be filed
12with the board by April 1, 2002 2024. Updates to the plan and
13budget shall be filed at least every twenty-four months.
   14(2)  Copies of the initial plan and budget, as well as
15any subsequent updates, shall be served on the department of
16natural resources.
   17(3)  The initial multiyear plan and budget and any
18subsequent updates
shall be considered in a contested case
19proceeding pursuant to chapter 17A. Subsequent updates shall
20be considered in a contested case proceeding every twenty-four
21months, unless the board determines a contested case is
22necessary for an earlier update.
The department of natural
23resources and the consumer advocate shall participate as
24parties to the a contested case proceeding.
   25(4)  The department of natural resources shall state whether
26the plan or update meets applicable state environmental
27requirements for regulated emissions. If the plan does
28not meet these requirements, the department shall recommend
29amendments that outline actions necessary to bring the plan or
30update into compliance with the environmental requirements.

   31b.  The board shall not approve a plan or update that does
32not meet applicable state environmental requirements and
33federal ambient air quality standards for regulated emissions
34from electric power generating facilities located in the state.
   35c.    d.  The board shall review the plan or update and the
-2-1associated budget, and shall approve the plan or update and
2the associated budget if the plan or update and the associated
3budget are reasonably expected to achieve cost-effective
4compliance with applicable state environmental requirements
5and federal ambient air quality standards. In reaching its
6decision, the board shall consider whether
 determine whether
7 the plan or update and the associated budget reasonably
8balance balances costs, environmental requirements, economic
9development potential, and the reliability of the electric
10generation, distribution, and transmission system.
   11d.    e.  The board shall issue an order approving or rejecting
12a plan, update, or budget within one hundred eighty days after
13the public utility’s filing is deemed complete; however, upon
14good cause shown, the board may extend the time for issuing the
15order as follows:
   16(1)  The board may grant an extension of thirty days.
   17(2)  The board may grant more than one extension, but each
18extension must rely upon a separate showing of good cause.
   19(3)  A subsequent extension must not be granted any earlier
20than five days prior to the expiration of the original
21one-hundred-eighty-day period, or the current extension.
   22f.  To ensure the utility can timely respond to changes in
23circumstances, the utility may modify plans by providing notice
24to the board. The board shall have thirty days to respond by
25any of the following methods:
   26(1)  Indicating no objection to the change.
   27(2)  Ordering a contested case.
   28(3)  Requesting more information. Upon receiving additional
29information, the board shall not object to the change or order
30a contested case proceeding.
   31e.    g.  The reasonable costs incurred by a rate-regulated
32public utility in preparing and filing the plan, update, or
33budget and in participating in the proceedings before the board
34and the reasonable costs associated with implementing the plan,
35update, or budget shall be included in its regulated retail
   2f.  It is the intent of the general assembly that the board,
3in an environmental plan, update, or associated budget filed
4under this section by a rate-regulated public utility, may
5limit investments or expenditures that are proposed to be
6undertaken prior to the time that the environmental benefit to
7be produced by the investment or expenditure would be required
8by state or federal law.
   9h.  The board shall adopt rules concerning the plan
10submission of multiyear plan and budgets pursuant to this
12   Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate
13importance, takes effect upon enactment.
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
   17This bill relates to plan, update, and budget review of
18rate-regulated electric utilities by the Iowa utilities board.
   19The bill removes electric utilities from the filing of
20forecasts for future electric generating needs. Current law
21requires electric public utilities to file a forecast with
22the Iowa utilities board (board) which includes anticipated
23customer requirements, supply sources, and future electric
24generating needs.
   25The bill strikes intent language relating to electric
26energy policies and emissions. The bill modifies the type of
27rate-regulated public utility that is subject to developing
28a multiyear plan and budget with the board to include all
29rate-regulated public utilities owning or operating an electric
30power generating facility instead of rate-regulated public
31utilities owned by one or more electric power generating
32facilities fueled by coal and located in Iowa on July 1, 2001.
33The bill modifies the content of the multiyear plan and budget
34from including cost-effective emission management to a plan
35and budget for the area served by the utility that provides
-4-1reliable, secure, and low-emission electricity at the lowest
   3The bill provides that the plan and budget shall include
4information relating to electricity requirements for the area,
5needs for the electricity project, future potential demand
6capabilities, future nonutility energy resources in the area,
7efficient planning, alternative planning, and other information
8the board requires.
   9The bill updates the date for the filing of the initial
10multiyear plan and budget to be April 1, 2024, and modifies
11subsequent plan and budget update requirements in a contested
12case proceeding. The bill provides that every 24 months,
13subsequent updates shall be considered in a contested case
14proceeding, except where the board determines an earlier update
15is necessary.
   16The bill maintains the requirement for the department of
17natural resources (DNR) to state whether a plan or update meets
18applicable state or environmental laws and strikes language
19relating to the DNR to recommend plan adaptations. The bill
20adds criteria for the board to use in determining whether a
21plan or update and associated budget balance costs and other
22considerations. Current law provides that the board shall
23reject a plan or update that does not meet applicable state
24environmental requirements or federal standards as determined
25by the DNR, and that the board shall review and approve the
26plan, update, and budget if the plan, update, and budget are
27reasonably expected to achieve cost-effective compliance
28with applicable state environmental requirements and federal
   30The bill strikes provisions relating to subsequent
31extensions of timelines for a public utility’s filing of a
32plan, update, or budget.
   33The bill provides that a utility may modify plans and provide
34notice to the board. The board shall have 30 days to respond
35by indicating no objection, ordering a contested case, or
-5-1requesting more information.
   2The bill strikes the intent language providing that the
3board has ability to limit certain investments or expenditures.
   4The bill provides that the board shall adopt rules
5concerning plan and budget submission.
   6The bill takes effect upon enactment.