This bill addresses charges for utility services in Iowa, specifically targeting nonusage fees that have been increasing utility costs for customers. It establishes that water, electricity, and natural gas are essential services and highlights the lack of competition in utility service territories. The bill prohibits public utilities from imposing, collecting, or billing any nonusage fees or surcharges, allowing utility bills to consist solely of charges based on actual consumption and applicable late payment charges. Additionally, it prevents utilities from conditioning service on the payment of nonusage fees and prohibits them from passing on franchise fees or similar payments to customers.

To ensure compliance with these new regulations, the bill mandates the Iowa utilities commission to adopt necessary rules and review existing tariffs, rate schedules, and billing practices. Any inconsistent tariffs or billing practices will be deemed void. The bill also outlines enforcement mechanisms for violations, including administrative penalties, refunds or bill credits to affected customers, and potential enforcement actions by the attorney general. Each billing statement that includes a prohibited fee will be treated as a separate violation, and the bill applies to various public utilities, including those not fully regulated by the commission.

Statutes affected:
Introduced: 476.1A, 476.1B, 476.1C