This bill introduces a regulatory framework for customer-based energy, specifically focusing on customer-based power plants and energy storage companies in Iowa. It amends existing law to include new definitions and provisions, such as defining a "customer-based energy storage company" and a "customer-based power plant." The bill stipulates that these companies will not be classified as electric utilities if they meet certain criteria, including not using energy from the grid during peak times and demonstrating benefits to nonparticipating customers. The Iowa Utilities Commission is tasked with establishing operational protocols, cybersecurity standards, and a certification process for these entities.

Additionally, the bill allows customer-based energy storage companies to purchase and sell power during nonpeak and peak times, respectively, through market-based tariffs. It prohibits public utilities from discriminating against customers of these energy storage companies and mandates that the commission oversee pilot programs to evaluate innovative models. The bill also outlines the process for requesting new tariffs aimed at reducing peak energy demand, ensuring that the benefits to nonparticipating customers outweigh any potential revenue losses. Overall, the legislation aims to promote innovation, enhance grid resilience, and protect consumer data within the evolving energy landscape.