Bill > HSB630

Introduced Session

This bill relates to customer-based energy, including power plants and energy storage. The bill defines “customer-based energy storage company” as a company that provides power to a customer through an energy storage system and provides that the company is not considered an electric utility or any other type of public utility if it meets certain criteria. The bill defines “customer-based power plant” as a system that aggregates, manages, and optimizes H.F. _____ distributed energy resources to operate collectively as a single entity for purposes that may include energy supply, demand response, and ancillary services. The bill requires operators of customer-based power plants (CPPs) to maintain ongoing coordination with public utilities regarding scheduling, dispatch, and emergency protocols. The bill requires the Iowa utilities commission (commission) to establish operational protocols for CPPs, including requirements related to system reliability, participation in demand response programs, and provision of ancillary services. The bill requires CPPs to operate only within the geographic territory of a public utility subject to rate regulation. The bill requires CPP operators to implement safeguards to protect consumer data from unauthorized access, disclosure, or misuse. The bill requires the commission to adopt minimum cybersecurity standards to ensure the integrity and resilience of CPP systems and associated data. The bill requires operators to obtain informed consent from consumers before collecting, using, or sharing consumer data and to provide mechanisms for consumers to access and correct their data. The bill requires the commission to establish a process to certify CPPs, requiring a demonstration of technical competence, financial stability, cybersecurity measures, and compliance with applicable laws and regulations. The bill authorizes the commission to approve and oversee pilot programs to evaluate innovative CPP models and technologies and requires the commission to report the findings to the general assembly. The bill authorizes a customer-based energy storage company to purchase power during nonpeak times and sell power during peak times through market-based tariffs to compensate for distribution or transmission use. The bill provides that a customer-based energy storage company may provide any portion of power to a customer regardless of assigned service area laws and regulations, provided the customer is located in the geographic area of a public utility subject to rate regulation. H.F. _____ The bill prohibits a public utility from discriminating against a customer who is served by a customer-based energy storage company. The bill authorizes the commission to approve and oversee pilot programs to evaluate innovative customer-based energy storage models and technologies and requires reporting of the findings to the general assembly. The bill requires the commission to adopt rules necessary to implement the bill. The rules must address technical standards and reporting requirements for CPPs, determination of peak energy times, a market-based tariff designed to benefit nonparticipating ratepayers, certification of customer-based energy storage companies, and the establishment of penalties for noncompliance, including suspension or revocation of certifications. The bill provides that if more than 30 months have passed since the commission entered an order in a rate-review proceeding, the office of consumer advocate or a user or aggregation of users with a generating capacity of at least 15 megawatts may request a new tariff. The bill requires a requested tariff to encourage the reduction of peak energy demand and the value of the potential reduction of peak energy demand for nonparticipating customers to exceed the cost of projected lost revenue.

Committee Categories

No sponsors listed

Other Sponsors (1)

Subcommittee recommends passage. (on 02/03/2026)

Official Document