A bill for an act establishing procedures for system enhancement of infrastructure, including for development of ratemaking principles permitted for recovery costs of certain investments in infrastructure by water and wastewater utilities.

HF 2032 allows Iowa water and wastewater utilities to recover costs for specific infrastructure upgrades through new "system enhancement charges" on customer bills. It directly affects investor-owned utilities regulated by the Iowa Utilities Commission, enabling them to recover expenses for projects like replacing aging systems, installing new infrastructure for safety/environmental protection, or complying with federal/state regulations. Utilities must first get commission approval for a multiyear plan detailing costs and benefits before implementing these charges, with the commission requiring the plan to include cost estimates, engineering reports, and evidence of compliance with environmental rules. The bill defines "system enhancement costs" to include capital expenses, operations, and a pretax return, but explicitly excludes fines or penalties.