# Periodic review of gas procurement practices.

**Citation:** 199 IAC 19.10  
**Type / status:** regulation / current  
**Agency:** Iowa Utilities Commission  
**Effective:** 2025-07-16  
**Published:** 2026-08-19

19.10(1) Procurement plan. Pursuant to Iowa Code section 476.6(11), the commission shall periodically conduct a contested case proceeding for the purpose of evaluating the reasonableness and prudence of a rate-regulated public utility's natural gas procurement and contracting practices. In the years

## Document text

19.10(1) Procurement plan. Pursuant to Iowa Code section 476.6(11), the commission shall periodically conduct a contested case proceeding for the purpose of evaluating the reasonableness and prudence of a rate-regulated public utility's natural gas procurement and contracting practices. In the years in which the commission does not conduct a contested case proceeding, the commission may require the utilities to file certain information for the commission's review. In years in which the commission conducts a full proceeding, a rate-regulated utility shall file prepared direct testimony and exhibits in support of a detailed 12-month plan and a three-year natural gas procurement plan. A utility's procurement plan shall be organized as follows and include:

a. An index of all documents and information filed in the plan and identification of the commission files in which documents incorporated by reference are located.

b. All contracts and gas supply arrangements executed or in effect for obtaining gas and all supply arrangements planned for the future 12-month and three-year periods.

c. A description of the utility's natural gas forecasting, procurement, and contracting practices; available supply options; and other available services (e.g., storage services, balancing services).

d. An exhibit detailing the utility's current, 12-month, and three-year forecasts of total annual throughput by customer class, peak day demand, and anticipated reserve margin on a PGA-year basis.

e. An organizational description of the officer or division responsible for gas procurement and a summary of operating procedures and policies for procuring and evaluating gas contracts.

f. A summary of the legal, regulatory, and commercial actions taken to minimize purchased gas costs.

g. Copies of all studies or investigation reports supporting the utility's testimony or materially considered by the utility in contracting decisions during the plan periods.

h. A complete list of all contracts in effect at the time of the procurement plan filing. The list shall include the contract term, the applicable service, and the contracted quantities.

i. A description of the supply options selected by the utility and an evaluation of the reasonableness and prudence of its contracting and procurement decisions. This evaluation should explain the relationship between forecast and procurement.

19.10(2) Burden on the utility. The utility has the burden to prove it is taking all reasonable actions to minimize its purchased gas costs.

19.10(3) Disallowance of costs. Purchased gas costs in excess of costs incurred under responsible and prudent policies and practices are disallowed. The PGA factor will be adjusted prospectively to reflect the disallowance.

19.10(4) Executive summary. On or before August 1 of each year, each natural gas utility shall file an executive summary and index of all standard and special contracts in effect for the purchase, sale or interchange of gas. The executive summary shall include the following information:

a. The contract number;

b. The start and end date;

c. The parties to the contract;

d. The total estimated dollar value of the contract;

e. A description of the type of service offered (including volumes and price).

This rule is intended to implement Iowa Code section 476.6(11).

## Provenance

- Official: Yes
- Source: <https://www.legis.iowa.gov/DOCS/ACO/IAC/LINC/Chapter.199.19.pdf>
- Source ID: `ia-legislature-pipeline-safety`
- SHA-256: `37028c57b79fe22b570bc80194d70fa42d47890d33279cd496d54dcabf3f0fc6`
- Retrieved: 2026-08-20T08:17:15.771Z
- Exported: 2026-08-24T06:22:45.559Z
- Document slug: `ia-iac-199-19-10`

### Source metadata

```json
{
  "jurisdiction": "US-IA",
  "chapter": "199 IAC chapter 19",
  "exactScope": "This bounded corpus contains every current rule in 199 IAC chapters 10 and 19, the two chapters identified by the Iowa Utilities Commission pipeline-safety page, plus 15 selected Iowa Code sections that directly establish gas-utility applicability, inspection and rulemaking authority, enforcement, penalties, and acceptance of federal pipeline-safety aid. It does not claim all Iowa pipeline law or all of Iowa Code chapters 476 and 479.",
  "excludedScope": "Excluded are hazardous-liquid safety (which the IUC says remains exclusively with PHMSA), hazardous-liquid permitting in 199 IAC chapter 13 and Iowa Code chapter 479B, damage prevention and one-call law, agricultural restoration chapter 9, railroad-crossing chapter 42, general procedure and filing chapters, permits/orders/forms, privately owned propane service, and federal or private incorporated text. Former 199 IAC chapter 12 is inventoried as repealed and is not searchable.",
  "applicabilityCaveat": "Applicability depends on IUC jurisdiction, public-utility or pipeline-company status, intrastate versus interstate status, the gas and facility involved, customer count, rate regulation, exemptions, federal preemption, waivers, permits, tariffs, and Commission orders. Iowa inspects interstate gas operators only as PHMSA's agent; federal authorities retain enforcement. Chapter 19 is limited to rate-regulated gas utilities except where another law or order extends a duty.",
  "incorporationCaveat": "The rules incorporate or reference 49 CFR Parts 191, 192, 193, and 199; ASME B31.8-2022; NFPA 59-2024, NFPA 54-2024, and NFPA 501A-2021; other Iowa rules and statutes; federal forms and interpretations; and utility tariffs. The connector records citations but does not reproduce incorporated federal or private material, decide which edition controls beyond the state text, or grant rights in private standards.",
  "publicationCaveat": "The current IAC chapter listings dated August 5, 2026 are used to prove chapter and rule inventory; their official PDF and DOCX-formatted 'RTF' artifacts are archived independently. The official 2026 Iowa Code was published December 22, 2025. The live 2026 Code & Acts Sections Amended report is provisional; signed HF 2799 sections 23 and 24, effective July 1, 2026, are preserved as overlays to selected sections 476.1B and 476.2. Any unexpected selected-section amendment causes refresh failure.",
  "rights": "Iowa legal text and other government edicts are preserved with official attribution and cryptographic provenance. Public access does not grant rights in agency seals, website presentation, forms, utility filings, incorporated federal compilations, or privately authored standards; redistribution of those materials requires a separate rights review.",
  "references": [
    {
      "citation": "Iowa Code 476.6",
      "referenceType": "iowa-code"
    }
  ],
  "sourceHistory": "[ARC 9351C, IAB 6/11/25, effective 7/16/25]",
  "region": "IA"
}
```