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
Robert Rafferty
Recent Utility Board Action, Supreme Court ...

In February, the Iowa Utilities Board ordered the public release of a redacted Zero Emission Study that MidAmerican Energy had commissioned for its internal use. MidAmerican’s own study concluded that solar was the best option to meet summer peak demand needs in 2040. The company had fought against sharing this internal report as a part of its $3.9 billion proposal known as WindPrime (the proposal contained just 2% of new solar generation). The study also highlighted the expensive nature of maintaining its existing large coal fleet.

The internal study’s findings were not surprising. Iowa’s peak energy use is on hot summer afternoons, as air conditioning is cranking up. Solar produces its greatest power on these hot days, while wind slows down. Iowa Business for Clean Energy had intervened in this case and highlighted this fact in our submittals to the Board.

Recent Utility Board Action, Supreme Court Decisions will Spur Greater Debate and Competition to Determine Iowa's Grid of the Future
Robert Rafferty
Newsletter: “Crony Capitalism”: IA Supreme ...

On June 14, 2020, a provision was inserted into an appropriations bill at 1:35am on the last night of the Iowa legislative session.  The provision granted sole right to the incumbent transmission provider to build any approved new transmission line, eliminating any competition for transmission in Iowa. 

This past Friday, the IA Supreme Court issued its ruling on a challenge to the law by LS Power (“LSP”), a national transmission line developer. Justice Waterman, writing for the majority, in commenting on the passage of what is known as the Right of First Refusal (“ROFR”), stated:

“We are not surprised the ROFR lacked enough votes to pass without logrolling. The provision is quintessentially crony capitalism. This rent-seeking, protectionist legislation is anti-competitive.”

Newsletter: “Crony Capitalism”: IA Supreme Court Sticks Dagger into Anti-Competitive Transmission Law

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.

New business network promotes clean energy future

New business network promotes clean energy future

A new organization has been created to help Iowa businesses access clean energy at competitive prices. Iowa Business for Clean Energy was launched this week, coinciding with Gov. Kim Reynolds’ “Clean Energy Week” proclamation.