Relating to electric utility rates and infrastructure support options for private generation customers

The bill provides that the general assembly recognizes the importance of electric utility infrastructure, including generation, transmission, and distribution systems, to provide electric service to all customers in Iowa. The general assembly also recognizes that tariffs are traditionally designed for the provision of full electric service to customers, not taking private generation into account. The bill specifies that it is the intent of the general assembly to require private generation customers to pay their share of costs of electric utility infrastructure, and to provide such customers with options to pay their share of costs. The bill allows rate-regulated electric utilities to file tariffs with the Iowa utilities board applicable to any private generation customer who utilizes a private generation facility installed on or after the date a tariff is approved pursuant to the bill. All tariff rates charged to a customer shall recover the electric utility’s cost of providing service to the applicable customer class. The bill provides that tariffs filed pursuant to the bill shall be designed to ensure that a private generation customer pays for electric utility infrastructure costs and shall require a private generation customer to choose from one of several rate structures described in the bill. The bill provides that the board shall review a tariff for compliance with the bill and shall approve the tariff as filed or with modification to meet compliance within days of filing. If the board fails to review the tariff within days of filing, the tariff is deemed approved. An approved tariff shall supersede any previously approved tariffs applicable to private generation customers, except as provided in the bill. The bill provides that a private generation customer who utilizes a private generation facility pursuant to a tariff approved by the board on or before the effective date of the bill may continue to receive electric service pursuant to the preexisting tariff for the remaining duration of the contract involving the facility, regardless of any subsequent change in ownership of such facility. If the private generation customer terminates electric service with the utility, the preexisting tariff shall no longer apply and the customer shall be required to receive electric service pursuant to a tariff approved in accordance with the bill, if such tariff was filed with the board.