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.

This Iowa bill revises rules for public utilities acquiring water, sewer, or storm water systems. It removes the $3 million purchase price threshold requiring Iowa Utilities Commission approval and mandates the Commission must find acquisitions won’t harm ratepayers of either the utility being acquired or the acquiring utility. The bill also requires the Commission to set ratemaking principles (including using net book value instead of fair market value for cost calculations) before approval, prohibits deferring these principles to later proceedings, and mandates a 10-year rate freeze if the acquisition increases average customer rates. These changes directly affect utilities seeking acquisitions and protect ratepayers from immediate cost increases.