Iowa Code

Iowa Code § 476.25 (2026)

Assigned service areas — electric utilities — legislative policy

✓ current as of July 2026

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It is declared to be in the public interest to encourage the development of coordinated statewide electric service at retail, to eliminate or avoid unnecessary duplication of electric utility facilities, and to promote economical, efficient, and adequate electric service to the public. In order to effect that public interest, the commission may establish service areas within which specified electric utilities shall provide electric service to customers on an exclusive basis. Except for good cause expressed through formal public statement, the commission shall establish these exclusive service areas on or before July 1, 1979. These exclusive service area boundaries shall be established by the commission upon the following basis:

1. The service area boundaries shall be in a line approximately equidistant between the electric distribution lines of adjacent electric utilities as they existed on January 1, 1976, and as shown by the maps filed in accordance with this subchapter. However, those boundaries may be modified by the commission to promote the public interest, to preserve existing service areas and electric utilities’ rights to serve existing customers, and to prevent unnecessary duplication of facilities, to take account of natural and physical barriers which would make electric service beyond these barriers uneconomic and impractical and those boundaries shall be modified by the commission to take account of the contracts between electric utilities which have been approved by the commission pursuant to subsection 2 of this section. When an electric utility’s exclusive service area is established by the\n\nTue Dec 09 22:08:33 2025 Iowa Code 2026, Chapter 476 (110, 2) §476.25, PUBLIC UTILITY REGULATION 28\n\ncommission to include existing customers presently served by the facilities of another electric utility, unless a voluntary exchange of facilities is agreed upon by the electric utilities involved and approved by the commission, the commission after notice and opportunity for hearing, shall require the purchase of those facilities presently serving these customers at a reasonable price to be determined by the commission. The commission, on its own motion or at the request of an electric utility or municipal corporation, after notice and opportunity for hearing, may modify the boundaries of an electric utility exclusive service area which it has previously established if this modification, including consideration of the factors noted in this subsection, is found to be in the public interest.

2. Contracts between electric utilities to designate service areas and customers to be served by the electric utilities or for the exchange of customers between electric utilities, when approved by the commission, shall be valid and enforceable and shall be incorporated into the appropriate exclusive service areas established pursuant to subsection 1 of this section. The commission shall approve a contract if it finds that the contract will eliminate or avoid unnecessary duplication of facilities, will provide adequate electric service to all areas and customers affected, will promote the efficient and economical use and development of the electric systems of the contracting electric utilities, and is in the public interest.

3. An electric utility shall not serve or offer to serve electric customers in an exclusive service area assigned to another electric utility, nor shall an electric utility construct facilities to serve electric customers in an exclusive service area assigned to another electric utility. The state, an electric utility, or any other person who is injured or threatened with injury by conduct prohibited by this section may initiate a contested case proceeding with the commission under chapter 17A. Upon finding a violation of this section the commission shall order appropriate corrective action including discontinuance of the unlawful service to electric customers, removal of the unlawful facility, or other disposition the commission deems just and reasonable. [C77, 79, 81, §476.25] 84 Acts, ch 1101, §1; 2014 Acts, ch 1026, §143; 2024 Acts, ch 1170, §369 Referred to in §476.1A, 476.1B \n

Notes of Decisions

Cited in 6 cases, 1984–2014 · leading case: Sz Enter., LLC D/B/A Eagle Point Solar v. Iowa Utils. Bd., a Div. of the Dep't of Com., State of Iowa, 850 N.W.2d 441 (Iowa 2014).

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Sz Enter., LLC D/B/A Eagle Point Solar v. Iowa Utils. Bd., a Div. of the Dep't of Com., State of Iowa, 850 N.W.2d 441 (Iowa 2014). · cites it 44× “See Iowa Code § 476.25 (3). The IUB concluded that under the proposed business arrangement, Eagle Point would be a public utility and thus was prohibited from selling the electricity to the city under the proposed arrangement.”

O'Brien Cnty. Rural Elec. Coop. v. Iowa State Com. Comm'n, 352 N.W.2d 264 (Iowa 1984). · cites it 19× “In a complaint filed with the Iowa State Commerce Commission, Iowa Public Service Company (IPS) challenged the right of the O’Brien County Rural Electric Cooperative (O’Brien) to provide electrical service for a rural water district which included land in the “assigned service…”

S.E. Iowa Coop. Elec. Ass'n v. Iowa Utils. Bd., 633 N.W.2d 814 (Iowa 2001). · cites it 12× “Iowa Code § 476.25 . In this area, our legislature has specifically declared a need for exclusive service areas to be established for specific utilities to provide electric service to avoid unnecessary duplication of facilities in the public interest.”

Pub. Serv. Co. of Colorado v. Pub. Utils. Comm'n, 765 P.2d 1015 (Colo. 1988). “2d at 269 (citing Iowa Code § 476.25 ). Because our public utility statutes contain no such exception, the Iowa decision is distinguishable and does not compel a finding that the geographic load center test is consistent with the doctrine of regulated monopoly as applied in…”

Se Iowa Co-op. Elec. v. Iowa Util. Bd., 633 N.W.2d 814 (Iowa 2001). · cites it 12× “Iowa Code § 476.25 . In this area, our legislature has specifically declared a need for exclusive service areas to be established for specific utilities to provide electric service to avoid unnecessary duplication of facilities in the public interest.”

Sioux Elec. Coop. Ass'n v. Iowa State Com. Comm'n, 420 N.W.2d 490 (Iowa Ct. App. 1988). · cites it 4× “Iowa Code section 476.25(1) provides in pertinent part: The board [Iowa Utilities Board], on its own motion or at the request of an electric utility or municipal corporation, after notice and opportunity for hearing, may modify the boundaries of an electric utility exclusive…”

— Iowa Code § 476.25(1) — 1 case

Sioux Elec. Coop. Ass'n v. Iowa State Com. Comm'n, 420 N.W.2d 490 (Iowa Ct. App. 1988). “Iowa Code section 476.25(1) provides in pertinent part: The board [Iowa Utilities Board], on its own motion or at the request of an electric utility or municipal corporation, after notice and opportunity for hearing, may modify the boundaries of an electric utility exclusive…”

— Iowa Code § 476.25(3) — 2 cases

Sz Enter., LLC D/B/A Eagle Point Solar v. Iowa Utils. Bd., a Div. of the Dep't of Com., State of Iowa, 850 N.W.2d 441 (Iowa 2014). “See Iowa Code § 476.25 (3). The IUB concluded that under the proposed business arrangement, Eagle Point would be a public utility and thus was prohibited from selling the electricity to the city under the proposed arrangement.”

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