Iowa Senate Bill SF373

Iowa 2025-2026 Regular Session

• Introduced: 2/19/25
• Refer: 2/19/25

Caption

A bill for an act relating to rate-regulated public utilities, including rate proceedings, automatic adjustments, ratemaking principles, and integrated resource plans.

Impact

With the passage of SF373, significant changes will occur in how electric utilities operate and set rates. The law mandates that rate-regulated utilities file a comprehensive rate case periodically to confirm that their charges are just and reasonable. This requirement aims to ensure that utility rates align closely with the actual costs of service for various customer groups. Additionally, automatic adjustments to rates will now necessitate approval through a general rate case, limiting the circumstances in which utilities can unilaterally change pricing structures.

Summary

Senate File 373 (SF373) focuses on the regulation of rate-regulated public utilities in Iowa, specifically addressing rate proceedings, automatic adjustments, ratemaking principles, and integrated resource plans. The bill amends existing laws to ensure that any new electric generating facilities are subjected to rigorous evaluation criteria, such as being the least-cost option for reliable service and undergoing a competitive procurement process. To enforce this, utilities must present an integrated resource plan demonstrating their consideration of various energy sources while ensuring cost-effectiveness.

Contention

Discussions around SF373 have revealed notable points of contention among stakeholders in the energy sector. Proponents argue that the bill is essential for enhancing transparency and ensuring that utility rates reflect actual service costs, fostering competition and consumer protection. However, critics express concerns that the stringent requirements may hinder utilities' operational flexibility and increase operational costs, potentially leading to higher rates for consumers in the long run. Overall, the balance between regulatory oversight and utility operational efficiency remains a critical debate as this legislation moves forward.