Iowa House Bill HF600

Iowa 2023-2024 Regular Session

• Introduced: 3/3/23
• Refer: 5/4/23

Caption

A bill for an act relating to tariffs for public utility innovation programs and including applicability provisions.(Formerly HSB 200.)

Impact

If enacted, HF600 will modify existing state laws governing public utility tariffs by establishing guidelines for the implementation of innovative utility programs. It mandates that any new tariff created must ensure participation is optional for customers and that costs are borne by those who participate in the program. Importantly, the legislation stipulates that public utility tariffs cannot alter existing base rates or charges and must not negatively impact those who do not participate in the programs.

Summary

House File 600 introduces a framework for public utility tariff programs aimed at promoting innovation in pricing and services. The intent of the bill is to encourage utilities to adopt new pricing structures and programs that can adapt to customer needs while making sure these innovations do not disadvantage nonparticipating customers. The legislation highlights the importance of innovation for attracting and retaining customers and supporting economic and sustainable energy production across the state.

Contention

While HF600 is designed to foster innovation in energy pricing, notable areas of contention may arise regarding the potential implications for nonparticipating customers in terms of cost coverage and the overall fairness of the tariff structures that are developed. There are also concerns over the accountability of public utilities in demonstrating the prudence and reasonableness of program-specific costs should a utility seek recovery of such costs through standard rate case proceedings.