Iowa Supreme Court rules for energy company

Company did not act as public utility

By Chelsea Keenan, The Gazette

The Iowa Supreme Court ruled in favor of a solar energy company on Friday, saying it was not acting as an electric utility when it entered into a third-party purchase agreement with the city of Dubuque.

The case arose after Dubuque-based Eagle Point wanted to own, install and operate photovoltaic solar panels on a city-owned building. The city would purchase the electricity the panels produced.

The Iowa Utilities Board originally said the company was acting as a public utility and violating Iowa code because the city was located within the exclusive service territory of Alliant Energy.

However, a district court ruled that although it is possible for an entity to act as an electric utility, Eagle Point's proposed arrangement was not acting in that manner.

The IUB believed that 'the District Court erroneously focused on the end results of energy efficiency rather than the nature of the transaction itself, which plainly involves the sale of electricity,” according to the Iowa Supreme Court ruling.

Meanwhile, Eagle Point said that 'the third-party purchase power agreement structure should be regarded as a long-term financing arrangement rather than a transaction involving the furnishing of electricity.”

In a 4-2 ruling, with one justice abstaining, the Supreme Court affirmed the district court's decision.

In a statement, the Iowa Solar Energy Trade Association praised the decision, saying it clears the way for third-party power purchase agreements in Iowa.

'Thanks to this decision, solar companies have greater market certainty, and Iowa consumers will have more affordable options for installing solar,” said association President Tim Dwight.

Alliant Energy spokesman Justin Foss said the utility has always supported renewable energy and the court's decision will not change that.

'This is being portrayed as renewable energy versus the utility,” he said. 'But it's not like that.”

Foss said the decision does have a long-term impact on Alliant as well as the other utilities across the state.

More power purchase power agreements could put pressure on costs, he said, because Iowa utilities look at the cost for the entire system, including the needed infrastructure, and divide it by the number of energy units used. Even if a building uses solar energy, it will still need to use traditional energy from the grid.

'We need to find the right balance and not burden our customers with costs from other customers,” he said.

Eagle Point CEO Barry Shear did not return a call for comment.

l Comments: (319) 398-8331; chelsea.keenan@sourcemedia.net