A bill for an act relating to the acquisition of water, sanitary sewer, and storm water utilities, including required findings by the Iowa utilities commission, the timeline for issuing ratemaking principles, and the determination of applicable ratemaking principles.

HSB 601 modifies Iowa's rules for public utilities acquiring water, sanitary sewer, and storm water systems. It removes the $3 million purchase price threshold for requiring Iowa Utilities Commission (IUC) approval, instead mandating the IUC find that acquisitions won't harm ratepayers of either the acquiring or acquired utility. The bill requires the IUC to set ratemaking principles (governing how acquisition costs affect future rates) *before* approving an acquisition, using net book value instead of fair market value for valuation, and prohibits deferring these principles to later proceedings. If an acquisition raises rates for existing customers, the IUC must block rate consolidation between the two utilities for at least ten years.