Iowa House Bill HF56

Iowa 2023-2024 Regular Session

• Introduced: 1/18/23
• Refer: 1/19/23
• Refer: 1/18/23

Caption

A bill for an act relating to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities.(See HF 473, HF 2101.)

Impact

The bill includes provisions that require cities to certify compliance with appraisal and alternative assessment requirements prior to the acquisition of city-owned utilities. This change is crucial because it emphasizes a more formalized admission process for cities before their utilities can be acquired, ensuring that fair market values are established and that alternatives to selling the utility system are considered. Additionally, the proposed law mandates that various costs associated with the acquisition, including appraisals and legal expenses, will be included in the rate base, thus impacting the long-term financial frameworks within which public utilities operate.

Summary

HF56 is a legislative bill aimed at modifying the existing regulations concerning the acquisition of water, sanitary sewer, and storm water utilities by public utilities in Iowa. The bill proposes to increase the threshold for mandatory approval from the Iowa Utilities Board, raising it from $500,000 to $5 million. This significant change is intended to streamline the process for public utilities looking to acquire these essential services, potentially easing the financial burden and regulatory requirements on them during acquisitions.

Contention

Discussions surrounding HF56 have raised concerns among various stakeholders, particularly in regards to consumer protection and rate fairness. Opponents argue that the increased threshold could lead to rushed acquisitions without the thorough oversight that is currently in place, potentially disadvantaging consumers if the utilities are acquired at inflated prices. Critics also express apprehension that the bill might prioritize the interests of utility companies over community interests, possibly undermining the ability of local governments to manage their utilities effectively and responsively to local needs.