IA HF2261

Requires the Iowa Utilities Commission to create a separate customer class for each "large energy use facility," defined as facilities using 20 megawatts or more that primarily provide data processing and hosting services (NAICS code 518210, which includes data centers).

Mandates that rates for large energy use facilities directly assign all costs of serving to that customer, including transmission, distribution, capacity, and ancillary services.

Requires rate structures to mitigate the risk of other customer classes paying unwarranted costs or having costs shifted to them from serving large energy use facilities.

Extends these requirements to municipal waterworks, rural water districts, and cooperative water associations that provide service to large energy use facilities, not just electric utilities.

Commission must consider whether proposed rates could result in increased costs or risks to other customers and whether they provide equitable contributions to grid efficiency, reliability, and resiliency.