Senate Study Bill 1256 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON FEENSTRA)

A BILL FOR

1 An Act relating to energy efficiency and demand response
2
plan filing requirements for certain public utilities, and
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including effective date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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Section 1. Section 476.6, subsection 15, paragraph c,
subparagraphs (2) and (4), Code 2019, are amended to read as
follows:
(2) Notwithstanding the goals developed pursuant to
paragraph “b”, the board shall not require allow a gas utility
to adopt an energy efficiency plan that results in projected
cumulative average annual costs that exceed one and one-half
percent of the gas utility’s expected annual Iowa retail rate
revenue from retail customers in the state, shall not require
allow an electric utility to adopt an energy efficiency plan
that results in projected cumulative average annual costs that
exceed two percent of the electric utility’s expected annual
Iowa retail rate revenue from retail customers in the state,
and shall not require allow an electric utility to adopt a
demand response plan that results in projected cumulative
average annual costs that exceed two percent of the electric
utility’s expected annual Iowa retail rate revenue from retail
customers in the state. For purposes of determining the two
percent threshold amount, the board shall exclude from an
electric utility’s expected annual Iowa retail rate revenue
the revenues expected from customers that have received
exemptions from energy efficiency plans pursuant to paragraph
“a”. The board shall not allow recovery of costs of an energy
efficiency plan or demand response plan pursuant to paragraph
“e”, subparagraph (1), inclusive of assessments remitted under
section 476.10A, in excess of the one and one-half or two
percent threshold amount, as applicable, for each plan year.
This subparagraph shall apply to energy efficiency plans and
demand response plans that are effective on or after January
1, 2019.
(4) The board shall approve, reject, or modify a plan
filed pursuant to this subsection no later than March 31,
2019. If the board fails to approve, reject, or modify a plan
filed by a gas or electric utility on or before such date, any
plan filed by the gas or electric utility that was approved

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by the board prior to May 4, 2018, shall be terminated. The
board shall not require allow a gas or electric utility to
implement an energy efficiency plan or demand response plan
that does not meet the requirements of this subsection. For
any plan approved by the board after January 1, 2019, in
excess of the one and one-half or two percent threshold amount
established in subparagraph (2), as applicable, inclusive of
assessments remitted under section 476.10A, the gas or electric
utility subject to the plan shall file a plan modification
with the board within thirty days of the effective date of
this Act in order to comply with the one and one-half or two
percent threshold amount established in subparagraph (2), as
applicable. The board shall approve such plan modification
within thirty days of filing without docketing the case as a
formal proceeding and without further modification, provided
that the only modification to the plan as filed by the gas or
electric utility is to adjust the plan and budget in order
to comply with the one and one-half or two percent threshold
amount established in subparagraph (2), as applicable.
Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
importance, takes effect upon enactment.
EXPLANATION

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The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.

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This bill modifies energy efficiency and demand response
plan filing requirements for certain public utilities.
Current law requires rate-regulated electric utilities to
file five-year energy efficiency plans with the Iowa utilities
board, and rate-regulated gas utilities to file five-year
energy efficiency plans with the board. The board shall not
require a gas utility to adopt a plan that results in projected
cumulative average annual costs that exceed 1.5 percent of its
expected annual Iowa retail rate revenue, and the board shall
not require an electric utility to adopt a plan that results in
projected cumulative average annual costs that exceed 2 percent
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of its expected annual Iowa retail rate revenue.
The bill provides that the board shall not allow a gas or
electric utility to adopt a plan that exceeds the 1.5 or 2
percent threshold amount, as applicable. The board shall not
allow plan cost recovery, inclusive of assessments remitted
under Code section 476.10A for the Iowa energy center and the
center for global and regional environmental research, in
excess of the applicable threshold amount, for each plan year.
The bill provides that for any plan approved by the board
after January 1, 2019, in excess of the applicable threshold
amount, inclusive of assessments remitted under Code section
476.10A, the gas or electric utility subject to the plan shall
file a plan modification with the board within 30 days of
the effective date of the bill in order to comply with the
applicable threshold amount. The board shall approve such
plan modification within 30 days of filing without a formal
proceeding and without further modification, provided that the
only modification to such plan is to adjust the plan and budget
in order to comply with the applicable threshold amount.
The bill takes effect upon enactment.

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