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During the past three legislative sessions, there have been discussions about reforming energy rates in Iowa. We had been hopeful that Iowa would join a majority of states that have adopted requirements for transparent utility planning and ratemaking, namely an Integrated Resource Plan (IRP). However, the energy bill currently in the legislature (House File 834 and Senate File 585) doesn't do that. In fact, as it is written, this legislation would further put the thumb on the scale for monopoly utilities to increase their profits at the expense of Iowans. Ask your legislator to "fix it or forget it" — amend the bill to protect customers, or oppose it.
With costs for everyday goods and services on the rise, Iowans deserve to see real and effective integrated resource planning, increased transparency, and a more robust decision-making role for the Iowa Utilities Commission (IUC) in approving rates. The job of the IUC is to make sure there is a check on MidAmerican Energy's and Alliant Energy’s drive for profit and that they are doing what is right for Iowa customers. But the IUC does not have the necessary tools to make that happen. Reform of Iowa's energy regulation is needed, but some parts of this bill as written actually make the situation worse by limiting IUC oversight and helping monopoly utilities and big corporations at the expense of small businesses, farmers, and everyday Iowans.
We also have serious concerns about this bill's approach to how utilities build new generation resources, such as gas, wind, and solar, and how they make decisions about their existing coal plants. MidAmerican and Alliant are guaranteed a profit of 9-12% on everything they build – every power plant and power line they construct. These energy corporations are focused on delivering a profit to their shareholders, so the companies are incentivized to build as much as possible.
IEC will continue to work with legislators and partners for amendments that address problematic pieces of the bill.
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