House File 2398 - Introduced HOUSE FILE 2398 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 554) (COMPANION TO SF 2221 BY COMMITTEE ON COMMERCE) A BILL FOR An Act relating to public utilities and sanitary sewage or 1 storm water drainage disposal system providers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5522HV (3) 86 rn/sc

H.F. 2398 Section 1. Section 476.1, subsection 3, Code 2016, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. Furnishing sanitary sewage or storm water 3 drainage disposal by piped collection system to the public for 4 compensation. 5 Sec. 2. Section 476.1, subsection 5, Code 2016, is amended 6 to read as follows: 7 5. This chapter does not apply to waterworks having less 8 than two thousand customers, municipally owned waterworks, 9 waterworks having less than two thousand customers, joint water 10 utilities established pursuant to chapter 389 , rural water 11 districts incorporated and organized pursuant to chapters 12 357A and 504 , cooperative water associations incorporated and 13 organized pursuant to chapter 499 , municipally owned sanitary 14 sewage or storm water drainage systems, sanitary districts 15 incorporated and organized pursuant to chapter 358, districts 16 organized pursuant to chapter 468, or to a person furnishing 17 electricity to five or fewer customers either by secondary line 18 or from an alternate energy production facility or small hydro 19 facility, from electricity that is produced primarily for the 20 person’s own use. 21 Sec. 3. Section 476.8, unnumbered paragraph 1, Code 2016, 22 is amended to read as follows: 23 Every public utility is required to furnish reasonably 24 adequate service and facilities. “Reasonably adequate service 25 and facilities” for public utilities furnishing gas or 26 electricity includes programs for customers to encourage the 27 use of energy efficiency and renewable energy sources. The 28 charge made by any public utility for any heat, light, gas, 29 energy efficiency and renewable energy programs, water or 30 power produced, transmitted, delivered or furnished, sanitary 31 sewage or storm water collected and treated, or communications 32 services, or for any service rendered or to be rendered in 33 connection therewith shall be reasonable and just, and every 34 unjust or unreasonable charge for such service is prohibited 35 -1- LSB 5522HV (3) 86 rn/sc 1/ 3

H.F. 2398 and declared unlawful. In determining reasonable and just 1 rates, the board shall consider all factors relating to value 2 and shall not be bound by rate base decisions or rulings made 3 prior to the adoption of this chapter . 4 Sec. 4. Section 476.9, subsection 2, Code 2016, is amended 5 to read as follows: 6 2. Every public utility engaged directly or indirectly in 7 any other business than that of the production, transmission , 8 or furnishing of heat, light, water , or power , the collection 9 and treatment of sanitary sewage or storm water, or the 10 furnishing of communications services to the public shall, 11 if required by the board, keep and render separately to the 12 board in like manner and form the accounts of all such other 13 business, in which case all the provisions of this chapter 14 shall apply to the books, accounts, papers and records of such 15 other business and all profits and losses may be taken into 16 consideration by the board if deemed relevant to the general 17 fiscal condition of the public utility. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill modifies the definition of a public utility for 22 purposes of the regulatory authority of the Iowa utilities 23 board. 24 Currently, a “public utility” is defined in Code chapter 476 25 to include any person, partnership, business association, or 26 domestic or foreign corporation owning or operating facilities 27 for the furnishing of specified services to the public for 28 compensation. The services include furnishing gas by piped 29 distribution system, electricity, communications services, 30 and water by piped distribution system. The bill adds to 31 this list the furnishing of sanitary sewage or storm water 32 drainage disposal by piped collection system. The bill 33 provides, however, that in addition to current exclusions 34 from applicability, Code chapter 476 shall not apply to a 35 -2- LSB 5522HV (3) 86 rn/sc 2/ 3

H.F. 2398 municipally owned sanitary sewage or storm water drainage 1 system, a sanitary district incorporated and organized pursuant 2 to Code chapter 358, or a levee and drainage district organized 3 pursuant to Code chapter 468. 4 The bill makes conforming changes to include sanitary sewage 5 or storm water collection and treatment in provisions requiring 6 public utilities to furnish reasonably adequate service and 7 facilities and in provisions requiring unrelated business 8 accounting by utilities to the Iowa utilities board. 9 -3- LSB 5522HV (3) 86 rn/sc 3/ 3