Senate File 2304 aims to enhance the regulatory framework for water and wastewater utilities in Iowa by introducing alternative ratemaking mechanisms. The bill allows eligible investor-owned public utilities to develop and sustain adequate water and wastewater treatment facilities without being constrained by traditional ratemaking principles. It establishes a new section, 476.59, which defines key terms such as "system enhancement infrastructure," "system enhancement charge," and "system enhancement costs." The bill outlines the process for utilities to seek recovery of system enhancement costs through a system enhancement charge, requiring them to submit a detailed plan to the commission for approval. The commission will evaluate the plans based on criteria such as compliance with regulatory requirements and the reasonableness of projected costs.

Additionally, the bill amends Section 476.84 to clarify the process for acquiring water, sanitary sewer, or storm water utilities. It specifies that if an acquiring public utility does not meet certain requirements, the commission will consider reasonable closing costs and other expenses incurred during the acquisition in the public utility's next rate case. This legislative change aims to streamline the acquisition process while ensuring that utilities can recover necessary costs associated with system enhancements and acquisitions, ultimately promoting better service for consumers.

Statutes affected:
Reprinted: 476.6
Enrolled: 476.6