House approves changes to water and wastewater rate-making, limiting rate impact and tightening timelines

Lawmakers advanced measures aimed at changing how water and wastewater utilities recover costs for system enhancements.

Representative Scott presented House File 2581 and amendment H8284, described as incorporating input from the Iowa Utilities Commission. The amendment revises the definition of system enhancement costs, removes operation and maintenance expenses from that definition, adds non–revenue-producing projects, requires a financial-impact analysis with a limit of a 10% rate increase, limits filings to once per year, and shortens the IUB’s final-order deadline from 10 to 8 months unless extended for good cause.

Representative Magnusske (floor member) said early versions were ‘‘rocky’’ but that stakeholder engagement and work with the utilities commission produced an improved bill. The House consented to substitute Senate File 2304, identical to the House file, and passed the substituted bill on final reading with a recorded vote of 92 ayes, 0 no, 8 absent.

What happens next: The statute changes, if enacted, will affect utility rate cases and require utilities and the IUB to follow the new filing limits, analysis and timelines.