This bill amends Section 476.6 of the Iowa Code to establish specific customer classes for large energy use facilities, defined as those using or capable of using twenty megawatts or more. It mandates that electric and water utilities create separate and distinct customer classes for these facilities, each with its own rates, charges, and schedules. The bill outlines that any rates or charges must directly assign the costs of serving these facilities, mitigate the risk of other customer classes incurring unwarranted costs, and prevent the shifting of costs to other classes. Additionally, the utilities commission is required to consider potential impacts on other customers and contributions to grid efficiency and reliability when approving rates.

The bill also extends these requirements to certain water utilities not regulated by the commission, ensuring they create similar customer classes for large energy use facilities. It stipulates that these water utilities must also directly assign costs and mitigate risks associated with serving these facilities. Furthermore, the bill includes a compliance mechanism, requiring water utilities to submit documentation to the commission upon request, with penalties for non-compliance. The provisions of this bill will apply to electric and water utility services for large energy use facilities constructed or expanded on or after January 1, 2027.

Statutes affected:
Introduced: 476.6