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Iowa authorizes alternative ratemaking and cost recovery for water and wastewater utility infrastructure improvements

Original title: 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.

Last action · June 1, 2026: Signed by Governor . S.J. 1031 .

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Does

Iowa law now permits investor-owned water and wastewater utilities to implement multiyear infrastructure improvement plans and recover associated costs through a separate monthly . The legislation allows utilities to recover 80 percent of approved system enhancement costs prior to a general rate case, capping total annualized revenue from the charge at 10 percent of the utility's authorized revenue requirement. Utilities must have received a final order in a general rate case within the past five years to qualify for the charge.

Why it matters

Investor-owned water and wastewater utility customers will see a separate monthly fixed fee on their bills based on meter size to fund infrastructure upgrades, while utilities gain a streamlined mechanism to recover capital investments outside of traditional rate cases.

Background
  • Kim Reynolds serves as the Governor of Iowa, responsible for signing or vetoing legislation passed by the General Assembly. context
  • Senate File 2304 originated as Senate Study Bill 3068 during the Ninety-first General Assembly of Iowa. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Investor-owned water and wastewater utilities

Eligible utilities may file multiyear infrastructure plans and apply for separate monthly system enhancement charges to recover 80 percent of approved costs prior to a general rate case.

Directly affected

Utility customers

Customers will pay a separate monthly fixed system enhancement charge based on meter size to fund approved infrastructure improvements.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

How will the system enhancement charge appear on customer bills?
The is calculated as a monthly fixed charge based upon meter size.
Can water service revenues be used to cover wastewater enhancement costs?
No, revenues collected from a for water service shall not be used to offset costs associated with a wastewater enhancement plan, and cross-subsidization is prohibited.
What is the maximum revenue limit allowed for these enhancement charges?
The aggregate total annualized revenue produced by all s cannot exceed 10 percent of the utility's total revenue requirement authorized in its most recent general rate case.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Current status: Signed into law.

Procedural history

20 actions
  1. Jun 1, 2026SenateEnrolled
    Signed by Governor . S.J. 1031 .
  2. May 5, 2026Senate
    Reported correctly enrolled, signed by President and Speaker, and sent to Governor. S.J. 1028 .
  3. Apr 7, 2026House
    Message from House. S.J. 731 .
  4. Apr 6, 2026House
    Immediate message. H.J. 819 .
  5. Apr 6, 2026HouseFloor
    Passed House , yeas 92, nays 0. H.J. 814 .
  6. Apr 6, 2026House
    Substituted for HF 2581 . H.J. 814 .
Show 14 earlier actions
  1. Apr 1, 2026HouseIntroduced
    Read first time, passed on file. H.J. 788 .
  2. Apr 1, 2026House
    Message from Senate. H.J. 788 .
  3. Mar 31, 2026Senate
    Immediate message. S.J. 686 .
  4. Mar 31, 2026SenateFloor
    Passed Senate , yeas 46, nays 0. S.J. 686 .
  5. Mar 31, 2026SenateFloor
    Amendment S-5124 adopted. S.J. 686 .
  6. Mar 23, 2026Senate
    Amendment S-5124 filed. S.J. 626 .
  7. Mar 19, 2026Senate
    Placed on calendar under unfinished business. S.J. 600 .
  8. Feb 12, 2026Senate
    Committee report, approving bill. S.J. 281 .
  9. Feb 12, 2026SenateIntroduced
    Introduced, placed on calendar. S.J. 270 .
  10. Feb 11, 2026Iowa Legislature
    Committee report approving bill, renumbered as SF 2304 .
  11. Feb 4, 2026Iowa Legislature
    Subcommittee recommends passage.
  12. Feb 3, 2026Iowa Legislature
    Subcommittee Meeting: 02/04/2026 2:30PM Room 217 Conference Room.
  13. Jan 22, 2026Iowa Legislature
    Subcommittee: Webster, Gruenhagen, and Knox.
  14. Jan 22, 2026Iowa LegislatureIntroduced
    Introduced, referred to Commerce.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Connected Entities

W. Charles Smithson, Paul Pate, Chris Cournoyer and 3 more
PersonW. Charles Smithson“Secretary of the Senate”Map →
PersonPaul Pate“Secretary of State of Iowa”Map →
PersonChris Cournoyer“Lieutenant Governor of Iowa”Map →
PersonKim Reynolds“Governor of Iowa who approved the bill”Map →
PersonAmy Sinclair“President of the Senate”Map →
PersonPat Grassley“Speaker of the House”Map →

Sources

Open source document

www.legis.iowa.gov

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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