This bill establishes new procedures for enhancing infrastructure related to water and wastewater utilities in Iowa, allowing for the development of alternative ratemaking principles to recover costs associated with certain investments. It emphasizes the intent of the General Assembly to support the sustainability of adequate water and wastewater treatment facilities, ensuring resilient services for consumers. The bill defines key terms such as "system enhancement costs," which include depreciation, operation and maintenance expenses, and property taxes, while excluding fines and penalties. It also outlines what constitutes a "system enhancement improvement," such as replacing aging infrastructure or installing new systems to comply with health and environmental regulations.

Before an eligible utility can recover system enhancement costs through a charge, it must obtain approval from the commission for a detailed plan that includes projected expenditures, operational costs, and compliance with legal requirements. The commission is required to issue a final order on the application within six months and can approve the plan if it meets specific criteria. The bill allows utilities to file annual applications to establish or adjust a system enhancement charge, which must be calculated based on meter size and cannot include costs already recovered through other means. Additionally, it permits utilities to defer costs incurred prior to plan approval for future recovery, while exempting certain petitions from publication notice requirements.