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Iowa Bill Sparks Utility Cost Debate
4 Feb
Summary
- Legislation proposes customer-based power plants and storage.
- Utilities warn of increased costs for ratepayers.
- Bill aims to manage energy demand during peak hours.
Iowa is considering legislation, House Study Bill 630, that would permit customer-based power plants and storage facilities to manage energy needs. These systems, often termed virtual power plants, aggregate resources to optimize energy supply and demand. For instance, customer-owned systems could adjust energy consumption during non-peak hours to avoid higher peak rates.
Customer-based storage companies would purchase power during off-peak times, store it, and resell it to the grid during peak demand. A Texas company, Base Power, has successfully implemented a similar model using home batteries for backup and grid services.
Iowa Business for Clean Energy supports the bill, suggesting it complements the need for gas "peaker" plants. They presented study data indicating that virtual power plants could be more cost-effective than peaker plants, offering incentives for ratepayers to reduce peak hour load.
