All Roll Calls
Yes: 138 • No: 0
IowaSF 230491st General Assembly (2025–2026)SenateWALLET
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. (Formerly SSB 3068.) Effective date: 07/01/2026.
Sponsored By: COMMITTEE ON COMMERCE
Signed by Governor
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
New water charges for Iowa customers
Beginning July 1, 2026, Iowa’s rate-regulated, investor-owned water and wastewater utilities can seek approval for new infrastructure charges. These fixed monthly charges depend on meter size and require Iowa Utilities Commission approval of a multiyear improvement plan. Eligible projects address legal requirements, resilience, health, safety, or environmental needs, including certain unreimbursed relocation and nonrevenue work. Recoverable costs include depreciation, property restoration, property taxes, and an approved return on investment—not violation penalties. Projects already included in the utility’s latest base rates are excluded. Annual charges can recover 80% of the eligible, unrecovered revenue requirement calculated before the charge application. The remaining 20% is deferred to the next general rate case. Combined water and wastewater charge revenue cannot exceed 10% of the utility’s latest approved revenue requirement—not each household’s bill. Costs above that cap are deferred to the next general rate case. When approved improvements move into new base rates, the separate charge resets to zero; those costs remain in base rates. Water and wastewater need separate plans and charges, and neither service can pay the other’s costs. Utilities can file one plan per service every 12 months. Plan approval and later cost adjustments require a final general rate order for that service within the past five years. Plans must document costs, engineering reviews, alternatives, schedules, and financial effects. The commission must decide plan filings within eight months, with extensions allowed for cause. Plan and charge filings must be published to inform customers.
Utility buyouts can affect customer rates
Beginning July 1, 2026, qualifying buyers of water, sanitary sewer, or storm water utilities can submit initial rates before closing. If the acquired system fails Iowa Code section 476.84(2)(a)’s requirements, the commission must consider acquisition expenses in the buyer’s next rate case. These include reasonable and customary closing, appraisal, legal, and regulatory costs. Consideration does not guarantee approval to recover those costs from customers. Customer rates can rise if the commission includes those costs in rates.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON COMMERCE
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/6/2026
Passed House
Yes: 92 • No: 0
Senate vote • 3/31/2026
Passed Senate
Yes: 46 • No: 0
Actions Timeline
Signed by Governor.
6/1/2026SenateReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/5/2026SenateMessage from House.
4/7/2026SenateImmediate message.
4/6/2026HousePassed House, yeas 92, nays 0.
4/6/2026HouseSubstituted for HF 2581.
4/6/2026HouseRead first time, passed on file.
4/1/2026HouseMessage from Senate.
4/1/2026HouseImmediate message.
3/31/2026SenatePassed Senate, yeas 46, nays 0.
3/31/2026SenateAmendment S-5124 adopted.
3/31/2026SenateAmendment S-5124 filed.
3/23/2026SenatePlaced on calendar under unfinished business.
3/19/2026SenateCommittee report, approving bill.
2/12/2026SenateIntroduced, placed on calendar.
2/12/2026Senate
Bill Text
As Introduced
Enrolled
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