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IA SF2304
Bill
AI Summary
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Authorizes alternative ratemaking mechanisms for investor-owned water and wastewater utilities to recover costs of infrastructure improvements through a "system enhancement charge" separate from traditional rate cases
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Requires utilities to submit multi-year plans to the Iowa Utilities Commission for approval before recovering system enhancement costs, with plans covering 3-10 years of proposed infrastructure projects
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Defines eligible "system enhancement improvements" as projects that replace aging infrastructure, install new facilities for health/safety/environmental compliance, or relocate infrastructure for public improvement projects
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Allows utilities to file annual rate adjustments to recover approved costs including depreciation, operation/maintenance expenses, property taxes, and pretax returns based on the utility's weighted cost of capital
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Establishes that system enhancement costs cannot include fines or penalties for regulatory violations, and the Commission must approve plans within 180 days of filing
Legislative Description
A bill for an act establishing procedures for system enhancement of infrastructure, including for development of ratemaking principles permitted for recovery costs of certain investments in infrastructure by water and wastewater utilities.(Formerly SSB 3068.)
Last Action
Committee report, approving bill. S.J. 281.
2/12/2026