IA HSB601

Removes the $3 million purchase price threshold for Iowa Utilities Commission approval of water, sanitary sewer, and storm water utility acquisitions, requiring commission approval for all such acquisitions regardless of price.

Requires the Iowa Utilities Commission to find that any acquisition will not detrimentally affect ratepayers of either the utility being acquired or the acquiring utility before approving the transaction.

Mandates that ratemaking principles be established in advance through a contested case proceeding before acquisition approval, prohibiting deferral of these principles to a later proceeding.

Requires use of the lesser of the sale price, fair market value, or net book value when determining applicable ratemaking principles for acquired utilities.

Prohibits rate consolidation between the two utilities for at least 10 years following the contested case proceeding if the acquisition would increase the average rate base per customer for existing customers of the acquiring utility.