Robert Szalay
MAY NEWSLETTER: Energy Bills Fail to Move ...

MAY NEWSLETTER: Energy Bills Fail to Move Forward in a Victory for Consumers

The Iowa legislature adjourned last week without passing either HF 834 or its companion bill SF 585, the omnibus energy bills that incorporated Governor Reynold’s recommendations.

Consumer groups worked together to first try to get important changes to the legislation, then when that did not occur, successfully worked to stop the legislation from passing. This coalition included AARP (representing seniors), NFIB (representing small business), the Iowa Retail Federation (representing Iowa’s small and large retailers), and the Iowa Economic Alliance and Iowa Business Energy Council (representing Iowa’s largest users).

MAY NEWSLETTER: Energy Bills Fail to Move Forward in a Victory for Consumers
Robert Szalay
February Newsletter- Governor's Omnibus Energy ...

Governor Reynolds introduced major new energy legislation over the past two weeks, House Study Bill 123 and Senate Study Bill 1112. The Governor’s bill includes several concepts which, if amended, can have a positive impact on the future electric rates of Iowa’s investor-owned electric utilities.

Unfortunately, as currently constructed, the bills are very pro-utility. These bills, if not amended, would:

  • allow utilities to determine future investment plans without the Utilities Commission evaluating whether investment decisions serve consumers' best interests,

  • increase the interest rate consumers have to pay utilities on new gas plants,

  • permit the utilities to retain 100% of the profits generated from innovative rate structures, revenue that would otherwise be allocated to mitigate future rate increases, and

  • allow incumbent utilities to build $3 billion in new transmission lines without competitive bidding.

All the ratepayer groups are united in advocating for amendments to change the pro-utility legislation into a pro-ratepayer bill. The groups range from AARP, representing Iowa’s seniors, to the National Federation of Business, which represents Iowa’s small businesses, to the Iowa Retail Federation and Iowa’s largest energy users.

February Newsletter- Governor's Omnibus Energy Bill Introduced
Robert Szalay
Iowa business groups: Lawmakers should change ...

Four Iowa business groups want state lawmakers to change the way its largest utilities raise rates, saying rising energy costs are hurting small businesses' ability to compete.

The groups — the Iowa Economic Alliance, the Iowa Business Energy Coalition, Iowa Business for Clean Energy and a large energy group that represents industrial users — say the state’s process is flawed and has led to Alliant Energy’s energy charges being among the highest nationally.

Iowa business groups: Lawmakers should change how investor-owned utilities get rate hikes
Robert Szalay
The Gazette: Iowa Business Groups Call for ...

Four Iowa business groups are advocating for a reform of how both residential and business electric rates are set in the state.

The groups — the Iowa Economic Alliance, the Large Energy Group, the Iowa Business Energy Coalition and Iowa Business for Clean Energy — released a statement this week saying it is “important to assess how legislative initiatives could meaningfully improve future utility infrastructure deployment, ensure reasonable energy costs, and give the (Iowa Utilities) Commission additional tools to adjudicate future rate requests by Iowa’s utilities.”

The Gazette: Iowa Business Groups Call for Electric Rate Reform
Robert Rafferty
Utilities Board Study Report: Iowa Businesses ...

Iowa’s business community was well represented on August 30th and 31st as the Iowa Utilities Board held its first meetings, referred to as charrettes, for its study of ratemaking initiated by the passage of House File 617. A few key themes emerged.

Theme # 1: Integrated Resource Planning is a Critical Need

If there was one theme that came out – Iowa suffers from a lack of Integrated Resource Planning ("IRP"). For those reading the comments submitted by the participants leading up to the event – this was not a surprise.

The business advocates for Integrated Resource Planning include the Iowa Business Energy Coalition (“IBEC”), which represents many of Iowa’s largest industrial energy users, the Iowa Economic Alliance ("IEA"), which represents large energy users including large technology ratepayers, and the Large Energy Group (“LEG”), which represents another group of Iowa’s largest energy users. As LEG noted, “Resource plans should be transparent, part of a stakeholder process which includes customers, and filed with the Board on a reoccurring basis to reflect changes in economics, the capacity of energy markets, customer demands, and the costs of potential resource additions.”

Utilities Board Study Report: Iowa Businesses Highlight Weaknesses in Energy Regulation

Newsletter: Is the Future of Iowa's Electric Grid keeping you up at night? Maybe It Should?

Newsletter: Is the Future of Iowa's Electric Grid keeping you up at night? Maybe It Should?

While electric utility regulation may put you to sleep, the impact on your businesses’ future energy costs may end up keeping you up at night. Given its importance, let us explain in layperson terms, why reform is critical for Iowa’s future energy competitiveness.

While complicated, in a nutshell, investor-owned utilities are allowed to make profits based on how much capital they invest, not necessarily on how efficiently the system operates. While this structure was well suited for yesterday’s power grid, it fails to address the needs of the electric grid of the future.

Newsletter: Biofuels or Electric Vehicles, Iowa’s Future Competitiveness Requires Support For Both

Newsletter: Biofuels or Electric Vehicles, Iowa’s Future Competitiveness Requires Support For Both

Iowa’s farmers reap a large bounty from growing corn for ethanol and soybeans for biodiesel. And as the future market for liquid fuels shrinks and as electric vehicle adoption increases, some voices are suggesting support for electric cars is counter to Iowa’s interests.

Whether or not one likes electric cars – for Iowa’s economic future – it will be critical that Iowa embraces both biofuels and electric vehicles. One might ask: But aren’t those interests diametrically opposed?

Newsletter: Iowa Utility Board Finalizes Electric Vehicle Charging Rules

Newsletter: Iowa Utility Board Finalizes Electric Vehicle Charging Rules

What started as a complaint to the Iowa Utility Board in July 2018, culminated this past week with the Iowa Utility Board finalizing the rules on publicly accessible electric vehicle chargers. The Iowa Utility Board made clear that a utility cannot regulate EV charging services, including the ability to charge by the kWh, if the EV charger is supplied electricity by the incumbent electric utility provider. See the full order here.

IOWA HAS THE 24TH HIGHEST COMMERCIAL ELECTRIC RATES IN THE COUNTRY

IOWA HAS THE 24TH HIGHEST COMMERCIAL ELECTRIC RATES IN THE COUNTRY

A report issued this week by the U.S. Energy Information Administration (EIA), shows Iowa had the 24th highest electric commercial electric rate in the nation and the 18th highest residential rate for the 2020 calendar year.

The EIA is the statistical and analytical agency within the U.S. Department of Energy. The February 2021 Electric Power Monthly report contains the full 2020 average per kWh price for each state, which shows Iowa’s average kWh rate of 10.24 for commercial customers for the full 2020 calendar year. The report can be downloaded at the following link: https://www.eia.gov/electricity/monthly/. (see Table 5.6.B for Year-To-Date State Averages through December 2020).

Renewable energy backers: Sun could go down on tax credits without state action

Renewable energy backers: Sun could go down on tax credits without state action

Iowa’s tax credits for businesses and homeowners who install solar panels could disappear next year unless state lawmakers approve legislation extending them.House File 221 would extend state tax credits on 15% of project costs for 10 years. It also would clear a backlog of tax credit applications totaling approximately $9 million and double the annual credits available in the future, to $10 million per year. The tax credits in the bill would expire in 2031, lawmakers voted to extend them. As it is, the state credits expire next year.

Iowa drops 13 spots in energy efficiency rankings

Iowa drops 13 spots in energy efficiency rankings

Iowa dropped 13 spots in a national ranking of states’ energy efficiency efforts, largely due to legislation that scaled back a state program, an interest group reported.

The American Council for an Energy Efficient Economy reported that Iowa had the biggest drop in this year’s rankings and now sits at 36th among the states. The group attributed the slide to 2018 legislation, Senate File 2311, that “capped certain efficiency investments, leading to a steep decline in progress in reducing electricity and gas use.”

Clean Energy Capitalist, green energy future

Clean Energy Capitalist, green energy future

In Fusion Capitalism, clean energy expert Steve Melink shares his vision of a clean energy future. In Melink’s view, the economy, national security, public health, and a sustainable environment are all inextricably linked to the world’s energy infrastructure – making the transition to alternative energy one of the greatest opportunities of the 21st Century. Sustainability, he argues, must become a core national value because it is fundamental to the future of America’s success.