IA HF2581

Creates a new regulatory framework allowing Iowa's investor-owned water and wastewater utilities to recover infrastructure improvement costs through a "system enhancement charge" outside traditional ratemaking processes.

Requires utilities to submit multiyear improvement plans to the Iowa Utilities Commission for approval, including projected capital expenditures, operation and maintenance costs, and descriptions of existing infrastructure conditions.

Covers costs for infrastructure projects mandated by federal, state, or local requirements related to resilience, health, safety, or environmental protection, including compliance with the Clean Water Act and Safe Drinking Water Act.

Authorizes the Commission to approve system enhancement charges that include depreciation expenses, operation and maintenance costs, property taxes, and a return on investment using the utility's last approved cost of capital.

Excludes fines, penalties, and infrastructure already included in a utility's rate base from recoverable costs, and requires utilities to have completed a general rate case within the past five years before filing a plan.