SSB 3078 (LSB 5728XC (3) 87)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA)

A BILL FOR

An Act eliminating provisions relating to energy efficiency plans and programs for public utilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476.1A, subsection 1, paragraph g, Code 2018, is amended by striking the paragraph.
    Sec. 2.  Section 476.1B, subsection 1, paragraph l, Code 2018, is amended by striking the paragraph.
    Sec. 3.  Section 476.1C, subsection 1, paragraph c, Code 2018, is amended by striking the paragraph.
    Sec. 4.  Section 476.2, subsection 5, Code 2018, is amended to read as follows:
   5.  Each rate-regulated gas and electric utility operating within the state shall maintain within the state the utility’s principal office for Iowa operations. The principal office shall be subject to the jurisdiction of the board and shall house those books, accounts, papers, and records of the utility deemed necessary by the board to be housed within the state. The utility shall maintain within the state administrative, technical, and operating personnel necessary for the delivery of safe and reasonably adequate services and facilities as required pursuant to section 476.8. A public utility which violates this section shall be subject to the penalties provided in section 476.51 and shall be denied authority to recover, for a period determined by the board, the costs of an energy efficiency plan pursuant to section 476.6, subsection 8.
    Sec. 5.  Section 476.2, subsection 6, Code 2018, is amended by striking the subsection.
    Sec. 6.  Section 476.6, subsections 13, 15, and 17, Code 2018, are amended by striking the subsections.
    Sec. 7.  Section 476.8, subsection 1, Code 2018, is amended to read as follows:
   1.  Every public utility is required to furnish reasonably adequate service and facilities. “Reasonably adequate service and facilities” for public utilities furnishing gas or electricity includes programs for customers to encourage the use of energy efficiency and renewable energy sources. The charge made by any public utility for any heat, light, gas, energy efficiency and renewable energy programs, water or power produced, transmitted, delivered or furnished, sanitary sewage or storm water collected and treated, or communications services, or for any service rendered or to be rendered in connection therewith shall be reasonable and just, and every unjust or unreasonable charge for such service is prohibited and declared unlawful. In determining reasonable and just rates, the board shall consider all factors relating to value and shall not be bound by rate base decisions or rulings made prior to the adoption of this chapter.
    Sec. 8.  Section 476.10, subsection 3, Code 2018, is amended to read as follows:
   3.  Whenever the board shall deem it necessary in order to carry out the duties imposed upon it in connection with rate regulation under section 476.6, investigations under section 476.3, or review proceedings under section 476.31, the board may employ additional temporary or permanent staff, or may contract with persons who are not state employees for engineering, accounting, or other professional services, or both. The costs of these additional employees and contract services shall be paid by the public utility whose rates are being reviewed in the same manner as other expenses are paid under this section. Beginning on July 1, 1991, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the board to hire additional staff and contract for services under this section. The board shall increase quarterly assessments specified in subsection 1, paragraph “b”, by amounts necessary to enable the board to hire additional staff and contract for services under this section. The authority to hire additional temporary or permanent staff that is granted to the board by this section shall not be subject to limitation by any administrative or executive order or decision that restricts the number of state employees or the filling of employee vacancies, and shall not be subject to limitation by any law of this state that restricts the number of state employees or the filling of employee vacancies unless that law is made applicable to this section by express reference to this section. Before the board expends or encumbers an amount in excess of the funds budgeted for rate regulation and before the board increases quarterly assessments pursuant to this subsection, the director of the department of management shall approve the expenditure or encumbrance. Before approval is given, the director of the department of management shall determine that the expenses exceed the funds budgeted by the general assembly to the board for rate regulation and that the board does not have other funds from which the expenses can be paid. Upon approval of the director of the department of management the board may expend and encumber funds for the excess expenses, and increase quarterly assessments to raise the additional funds. The board and the office of consumer advocate may add additional personnel or contract for additional assistance to review and evaluate energy efficiency plans and the implementation of energy efficiency programs including, but not limited to, professionally trained engineers, accountants, attorneys, skilled examiners and inspectors, and secretaries and clerks. The board and the office of consumer advocate may also contract for additional assistance in the evaluation and implementation of issues relating to telecommunication competition. The board and the office of the consumer advocate may expend additional sums beyond those sums appropriated. However, the authority to add additional personnel or contract for additional assistance must first be approved by the department of management. The additional sums for energy efficiency shall be provided to the board and the office of the consumer advocate by the utilities subject to the energy efficiency requirements in this chapter. Telephone companies shall pay any additional sums needed for assistance with telecommunication competition issues. The assessments shall be in addition to and separate from the quarterly assessment.
    Sec. 9.  Section 476.10A, subsection 1, paragraph b, Code 2018, is amended to read as follows:
   b.  The amounts collected pursuant to this section shall be in addition to the amounts permitted to be assessed pursuant to section 476.10. The board shall allow inclusion of these amounts in the budgets approved by the board pursuant to section 476.6, subsection 15, paragraph “e”.
    Sec. 10.  Section 476.52, Code 2018, is amended to read as follows:
   476.52  Management efficiency.
   It is the policy of this state that a public utility shall operate in an efficient manner. If the board determines in the course of a proceeding conducted under section 476.3 or 476.6 that a utility is operating in an inefficient manner, or is not exercising ordinary, prudent management, or in comparison with other utilities in the state the board determines that the utility is performing in a less beneficial manner than other utilities, the board may reduce the level of profit or adjust the revenue requirement for the utility to the extent the board believes appropriate to provide incentives to the utility to correct its inefficient operation. If the board determines in the course of a proceeding conducted under section 476.3 or 476.6 that a utility is operating in such an extraordinarily efficient manner that tangible financial benefits result to the ratepayer, the board may increase the level of profit or adjust the revenue requirement for the utility. In making its determination under this section, the board may also consider a public utility’s pursuit of energy efficiency programs. The board shall adopt rules for determining the level of profit or the revenue requirement adjustment that would be appropriate.
   The board shall also adopt rules establishing a methodology for an analysis of a utility’s management efficiency.
    Sec. 11.  Section 476.53, subsection 3, paragraph c, Code 2018, is amended to read as follows:
   c.  In determining the applicable ratemaking principles, the board shall make the following findings:
   (1)  The rate-regulated public utility has in effect a board-approved energy efficiency plan as required under section 476.6, subsection 15.
   (2)  The find that the rate-regulated public utility has demonstrated to the board that the public utility has considered other sources for long-term electric supply and that the facility or lease is reasonable when compared to other feasible alternative sources of supply. The rate-regulated public utility may satisfy the requirements of this subparagraph paragraph through a competitive bidding process, under rules adopted by the board, that demonstrate the facility or lease is a reasonable alternative to meet its electric supply needs.
    Sec. 12.  REPEAL.  Sections 476.63 and 476.82, Code 2018, are repealed.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill eliminates provisions in the Code relating to energy efficiency plans and programs for public utilities.
   The bill strikes Code sections 476.1A(1)(g), 476.1B(1)(l), and 476.1C(1)(c), which require specified nonregulated public utilities to file energy efficiency plans with the Iowa utilities board.
   The bill strikes Code section 476.6(13), which requires rate-regulated electric and gas utilities to offer energy efficiency programs to customers through energy efficiency plans.
   The bill strikes Code section 476.6(15), which establishes requirements, implementation and review procedures, and cost recovery mechanisms applicable to rate-regulated electric and gas utilities, as well as certain requirements and review procedures applicable to non-rate-regulated electric and gas utilities, with respect to such energy efficiency plans and energy efficiency programs.
   The bill strikes Code section 476.6(17), which permits the board to require rate-regulated gas and electric utilities to offer energy efficiency program financing to qualified customers.
   The bill makes conforming changes by removing references to public utility energy efficiency plans and energy efficiency programs throughout Code chapter 476.