Solar & Battery Regulation & Incentive Programs
Origin
In 2008, Iowa enacted S.B. 2386, which requires the Iowa Utilities Board (IUB) to create energy savings standards (electricity and natural gas) for all rate-regulated utilities. Utilities that are not rate-regulated (municipal and cooperative utilities) were required to establish their own energy efficiency goals. These goals were filed in December 2009. All utilities (rate-regulated and otherwise) must submit plans with the IUB utility, administer customer energy efficiency programs in order to reach the efficiency goals, and submit annual reports to the IUB describing energy efficiency efforts. Utility efficiency plans, operating plans, and annual reports can be found here.
Electric Sales and Demand Reduction
A utility may reduce energy consumption through improvements to its infrastructure or through customer programs. Examples of customer programs include energy studies and audits, education, direct rebates and other financial assistance, research projects, time-of-use-rates, tree planting, and hot water insulation distribution programs. The table below shows the required average energy savings levels during 2014-2018.
| Applicable Rate-Regulated Electric Utility |
Range of Average Target Reductions Relative to Baseline (2014-2018) |
|---|---|
| Interstate Power & Light (Alliant Energy) | 1.1% |
| MidAmerican Energy | 1.19% |
In addition, utilities must target peak demand reductions. The table below shows the required target for peak demand reduction by 2018.
| Applicable Rate-Regulated Electric Utility | Target Reductions Relative to Baseline (By 2018) |
|---|---|
| Interstate Power & Light (Alliant Energy) | 436 MW |
| MidAmerican Energy | 504 MW |
Natural Gas Sales Reduction
The Iowa Utilities Board has approved goals of approximately 1-1.2 percent for the natural gas programs of investor-owned utilities. The IUB also approved lower electricity efficiency goals for Interstate Power and Light Company. MidAmerican Energy Company reached 1.5% electricity savings in 2010.
| Applicable Rate-Regulated Natural Gas Utility |
Range of Average Target Reductions Relative to Baseline (2014-2018) |
|---|---|
| Interstate Power & Light (Alliant Energy) | 0.88% |
| MidAmerican Energy | 1.28% |
| Iowa Gas Utility Company (Black Hills Corp.) | 0.64% |
Program Administrator Type
Iowa’s electric utilities administer the programs used to comply with the standard.
Cost Effectiveness and Program Evaluation
Iowa uses the Societal Cost Test (SCT), one of the five “California tests” from the California Standard Practice Manual, as its primary cost-effectiveness tests for evaluating energy efficiency programs.
Utility Cost Recovery Provisions
The cost of these programs are recovered through cost recovery factors on each customer's bill. Currently, no utility has added performance incentives for achieving its goals.
| Name | Enacted Date | Effective Date | Expired Date |
|---|---|---|---|
| Iowa Code § 476.6.16 | |||
| IAC 199-35 | |||
| IAC 199-36 | |||
| 2008 IUB Order | 2008 | 2008 | |
| IUB Docket No. EEP-2012-0002 Final Order (MidAmerican 2014-2018 EE Plan) | 12/16/2013 | ||
| IUB Docket No. EEP-2012-0001 Final Order (Alliant Energy 2014-2018 EE Plan) | 12/02/2013 | ||
| IUB Docket No. EEP-2013-0001 Final Order (Black Hills 2014-2018 Gas EE Plan) | 12/17/2013 |