A massive energy Bill introduced by Iowa’s governor, addressing support for renewed nuclear power generation to building farm-based anaerobic digesters to produce biogas, is getting a positive reception in the Iowa Legislature. A House Commerce Committee has approved House Study Bill 123, moving it to the appropriations committee for consideration. Both House and Senate subcommittees approved companion Bills. The Bills build on Iowa’s existing strengths of low rates and a strong transmission grid.
Utilities in Iowa and across the nation are scrambling to meet growing energy needs, driven in part by tech companies’ expanding artificial intelligence capabilities, the move to electric vehicles, and reshoring of manufacturing in the US. Florida-based NextEra Energy is weighing efforts needed to restart its shuttered Duane Arnold nuclear plant near Palo — Iowa’s only nuclear facility — by late 2028 to meet the demand.
The Commerce Committee approved removing language that directed the Iowa Utilities Commission to allow utilities to swap service area territories for economic development. Getting some of the most intense discussion was whether MidAmerican Energy, Alliant Energy, and other Iowa utilities should have first preference at building regional transmission projects that can add up to billions of dollars.
Some highlights of the comprehensive Bill include that Iowa utilities should have the “right of first refusal” when it comes to building regional transmission projects, argued Alliant, MidAmerican, an electrical workers union, and some industry associations.
Iowa companies confirmed they are equipped to respond to disasters such as the 2020 derecho that swept across the state, causing widespread and lengthy power outages. ITC Midwest, a transmission company based in Cedar Rapids, had 1,200 poles on the ground following the derecho across 26 counties, and had power restored in eight days.
Bill opponents feel it is not required to remove competition from the selection of transmission developers in the state, especially when the country needs to build a tremendous amount of infrastructure to meet the nation’s growing energy needs.
The Bill also calls for Iowa utilities to supply the Iowa Utilities Commission with an integrated resource plan every five years that’s uncontested by ratepayers, outlining the infrastructure needed to meet consumer energy demands. During the review by the Appropriations Committee, it would give lawmakers time to strengthen language on utilities filing integrated resource plans and address concerns about the section on anaerobic digesters.