A bill for an act relating to certain public utilities, including the development of ratemaking principles permitted for recovery costs of certain investments in infrastructure by water and wastewater utilities and cost considerations for acquisitions of water, sanitary sewer, or storm water utilities.

SF 2304 allows Iowa water and wastewater utilities (specifically investor-owned, regulated utilities) to recover costs for certain infrastructure improvements through a new "system enhancement charge" on customer bills. Utilities must first get approval from the Iowa Utilities Commission for a detailed multiyear plan, including engineering reports, cost estimates, and proof that projects meet environmental or safety requirements (like replacing aging pipes or complying with federal regulations). The commission must approve the plan if it covers eligible improvements (e.g., resilience upgrades, new systems for health/safety, or regulatory compliance) and sets fair rates, but cannot block the plan over individual projects that don’t meet criteria. This applies only to projects not already included in the utility’s existing rate base.