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IA SF2056

IA SF2056
A bill for an act relating to billing methods for distributed generation customers.


summary

Introduced
01/15/2026
In Committee
01/15/2026
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to the cash out of excess kilowatt-hours to distributed generation customers. Under current law, any excess kilowatt-hours remaining at the end of a 12-month period are cashed out by the electric utility at the electric utility’s avoided cost rate and distributed evenly between the customer and the electric utility’s low-income home energy assistance program. The customer chooses whether the cash out occurs in January or April. The bill changes the cash out process of excess kilowatt-hours for distributed generation customers. The bill provides that excess kilowatt-hours must be cashed out directly to the customer at the customer’s request or when the customer discontinues service. The bill requires any kilowatt-hour credits to remain in a customer’s account to offset future bills until a cash out is requested or the customer discontinues service.

AI Summary

This bill modifies how customers with distributed generation, such as solar panels, are compensated for excess electricity they produce. Previously, any unused electricity, measured in kilowatt-hours (kWh), was automatically cashed out at the end of a year at the electric utility's "avoided cost rate" (the cost the utility would have paid to generate or purchase that electricity), with the money split between the customer and a low-income energy assistance program, and the customer chose when this payout happened. Now, excess kWh will only be cashed out and sent directly to the customer when the customer specifically requests it or when they stop receiving service from the electric utility, and any credits for excess kWh will be held in the customer's account to reduce future electricity bills until one of those events occurs.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Subcommittee: Driscoll, Drey, and Webster. S.J. 132. (on 01/22/2026)

bill text


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