Senate
Study
Bill
3093
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
CHAPMAN)
A
BILL
FOR
An
Act
modifying
various
provisions
relating
to
public
1
utilities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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5362XC
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S.F.
_____
Section
1.
Section
28F.1,
subsection
1,
Code
2018,
is
1
amended
to
read
as
follows:
2
1.
This
chapter
provides
a
means
for
the
joint
financing
3
by
public
agencies
of
works
or
facilities
useful
and
necessary
4
for
the
collection,
treatment,
purification,
and
disposal
5
in
a
sanitary
manner
of
liquid
and
solid
waste,
sewage,
6
and
industrial
waste,
facilities
used
for
the
conversion
of
7
solid
waste
to
energy,
gasworks
and
facilities
useful
for
the
8
delivery
of
gas
service,
and
also
electric
power
facilities
9
constructed
within
the
state
of
Iowa,
except
that
hydroelectric
10
power
facilities
may
also
be
located
in
the
waters
and
on
the
11
dams
of
or
on
land
adjacent
to
either
side
of
the
Mississippi
12
or
Missouri
river
bordering
the
state
of
Iowa,
water
supply
13
systems,
swimming
pools
or
golf
courses.
This
chapter
applies
14
to
the
acquisition,
construction,
reconstruction,
ownership,
15
operation,
repair,
extension,
or
improvement
of
such
works
16
or
facilities,
by
a
separate
administrative
or
legal
entity
17
created
pursuant
to
chapter
28E
or
chapter
389
.
When
the
18
legal
entity
created
under
this
chapter
is
comprised
solely
19
of
cities,
counties,
and
sanitary
districts
established
under
20
chapter
358
,
or
any
combination
thereof
or
any
combination
of
21
the
foregoing
with
other
public
agencies,
the
entity
shall
22
be
both
a
corporation
and
a
political
subdivision
with
the
23
name
under
which
it
was
organized.
The
legal
entity
may
sue
24
and
be
sued,
contract,
acquire
and
hold
real
and
personal
25
property
necessary
for
corporate
purposes,
adopt
a
corporate
26
seal
and
alter
the
seal
at
pleasure,
and
execute
all
the
powers
27
conferred
in
this
chapter
.
28
Sec.
2.
Section
28F.11,
Code
2018,
is
amended
to
read
as
29
follows:
30
28F.11
Eminent
domain.
31
Any
public
agency
participating
in
an
agreement
authorizing
32
the
joint
exercise
of
governmental
powers
pursuant
to
this
33
chapter
may
exercise
its
power
of
eminent
domain
to
acquire
34
interests
in
property,
under
provisions
of
law
then
in
effect
35
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S.F.
_____
and
applicable
to
the
public
agency,
for
the
use
of
the
entity
1
created
to
carry
out
the
agreement,
provided
that
the
power
of
2
eminent
domain
is
not
used
to
acquire
interests
in
property
3
which
is
part
of
a
system
of
facilities
in
existence,
under
4
construction,
or
planned,
for
the
generation,
transmission
5
or
sale
of
electric
power
,
or
for
the
transmission,
6
transportation,
or
sale
of
natural
gas
.
In
the
exercise
7
of
the
power
of
eminent
domain,
the
public
agency
shall
8
proceed
in
the
manner
provided
by
chapter
6B
.
Any
interests
9
in
property
acquired
are
acquired
for
a
public
purpose,
as
10
defined
in
chapter
6A
,
of
the
condemning
public
agency,
and
the
11
payment
of
the
costs
of
the
acquisition
may
be
made
pursuant
12
to
the
agreement
or
to
any
separate
agreement
between
the
13
public
agency
and
the
entity
or
the
other
public
agencies
14
participating
in
the
entity
or
any
of
them.
Upon
payment
of
15
costs,
any
property
acquired
is
the
property
of
the
entity.
16
Sec.
3.
Section
476.1,
subsection
7,
Code
2018,
is
amended
17
to
read
as
follows:
18
7.
The
jurisdiction
of
the
board
under
this
chapter
19
shall
include
efforts
designed
to
promote
the
use
of
energy
20
efficiency
strategies
by
rate
or
service-regulated
gas
and
21
electric
utilities
required
to
be
rate-regulated
.
22
Sec.
4.
Section
476.1A,
subsections
1,
2,
and
4,
Code
2018,
23
are
amended
to
read
as
follows:
24
1.
Electric
public
utilities
having
fewer
than
ten
25
thousand
customers
and
electric
cooperative
corporations
26
and
associations
are
not
subject
to
the
rate
regulation
27
authority
of
the
board
.
Such
utilities
are
subject
to
all
28
other
regulation
and
enforcement
activities
of
the
board,
29
including
,
except
for
regulatory
action
pertaining
to
all
of
30
the
following
:
31
a.
Assessment
of
fees
for
the
support
of
the
division
and
32
the
office
of
consumer
advocate,
pursuant
to
section
476.10
.
33
b.
Safety
and
engineering
standards
for
equipment,
34
operations,
and
procedures.
35
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c.
Assigned
area
of
service.
1
d.
Pilot
projects
of
the
board.
2
e.
Assessment
of
fees
for
the
support
of
the
Iowa
energy
3
center
created
in
section
15.120
and
the
center
for
global
and
4
regional
environmental
research
established
by
the
state
board
5
of
regents.
This
paragraph
“e”
is
repealed
July
1,
2022.
6
f.
Filing
alternate
energy
purchase
program
plans
with
the
7
board,
and
offering
such
programs
to
customers,
pursuant
to
8
section
476.47
.
9
g.
Filing
energy
efficiency
plans
and
energy
efficiency
10
results
with
the
board.
The
energy
efficiency
programs
11
included
in
such
plans
as
a
whole
shall
be
cost-effective.
The
12
board
may
permit
these
utilities
to
file
joint
plans.
The
13
board
shall
periodically
report
the
energy
efficiency
results
14
including
energy
savings
of
each
of
these
utilities
to
the
15
general
assembly.
The
board
may
waive
all
or
part
of
the
16
energy
efficiency
filing
and
review
requirements
for
electric
17
cooperative
corporations
and
associations
and
electric
public
18
utilities
which
demonstrate
superior
results
with
existing
19
energy
efficiency
efforts.
20
2.
However,
sections
476.20
,
subsections
1
through
4,
21
476.21
,
476.41
through
476.44
,
476.51
,
476.56
,
476.62
,
and
22
476.66
and
chapters
476A
and
478
,
to
the
extent
applicable,
23
apply
to
such
electric
utilities.
24
4.
The
board
of
directors
or
the
membership
of
an
electric
25
cooperative
corporation
or
association
otherwise
exempt
26
from
rate
regulation
may
elect
to
have
the
cooperative’s
27
rates
regulated
by
the
board.
The
board
shall
adopt
rules
28
prescribing
the
manner
in
which
the
board
of
directors
or
the
29
membership
of
an
electric
cooperative
may
so
elect.
If
the
30
board
of
directors
or
the
membership
of
an
electric
cooperative
31
has
elected
to
have
the
cooperative’s
rates
regulated
by
the
32
board,
after
two
years
have
elapsed
from
the
effective
date
of
33
such
election
the
board
of
directors
or
the
membership
of
the
34
electric
cooperative
may
elect
to
exempt
the
cooperative
from
35
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the
rate
regulation
authority
of
the
board
,
provided,
however,
1
that
if
the
membership
elected
to
have
the
cooperative’s
rates
2
regulated
by
the
board,
only
the
membership
may
elect
to
exempt
3
the
cooperative
from
the
rate
regulation
authority
of
the
4
board
.
5
Sec.
5.
Section
476.1B,
subsection
1,
paragraph
l,
Code
6
2018,
is
amended
to
read
as
follows:
7
l.
Filing
energy
efficiency
plans
and
energy
efficiency
8
results
with
the
board.
The
energy
efficiency
programs
9
included
in
such
plans
as
a
whole
shall
be
cost-effective.
The
10
board
may
permit
these
utilities
to
file
joint
plans.
The
11
board
shall
periodically
report
the
energy
efficiency
results
12
including
energy
savings
of
each
of
these
utilities
to
the
13
general
assembly.
14
Sec.
6.
Section
476.2,
subsection
6,
Code
2018,
is
amended
15
by
striking
the
subsection.
16
Sec.
7.
Section
476.4,
subsection
1,
Code
2018,
is
amended
17
to
read
as
follows:
18
1.
Every
public
utility
shall
file
with
the
board
tariffs
19
showing
the
rates
and
charges
for
its
public
utility
services
20
and
the
rules
and
regulations
under
which
such
services
were
21
furnished,
on
April
1,
1963,
which
rates
and
charges
shall
be
22
subject
to
investigation
by
the
board
as
provided
in
section
23
476.3
,
and
upon
such
investigation
the
burden
of
establishing
24
the
reasonableness
of
such
rates
and
charges
shall
be
upon
the
25
public
utility
filing
the
same.
These
filings
shall
be
made
26
under
such
rules
as
the
board
may
prescribe
within
such
time
27
and
in
such
form
as
the
board
may
designate.
In
prescribing
28
rules
and
regulations
with
respect
to
the
form
of
tariffs
29
and
any
other
regulations
,
the
board
shall,
in
the
case
of
30
public
utilities
subject
to
regulation
by
any
federal
agency,
31
give
due
regard
to
any
corresponding
rules
and
regulations
of
32
such
federal
agency,
to
the
end
that
unnecessary
duplication
33
of
effort
and
expense
may
be
avoided
so
far
as
reasonably
34
possible.
Each
public
utility
shall
keep
copies
of
its
tariffs
35
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_____
open
to
public
inspection
under
such
rules
as
the
board
may
1
prescribe.
2
Sec.
8.
Section
476.6,
subsections
1,
8,
and
13,
Code
2018,
3
are
amended
to
read
as
follows:
4
1.
Filing
with
board.
A
public
utility
subject
to
rate
5
regulation
shall
not
make
effective
a
new
or
changed
rate,
6
charge,
schedule,
or
regulation
until
the
rate,
charge,
7
schedule,
or
regulation
has
been
approved
by
the
board,
except
8
as
provided
in
subsections
8
,
and
9
,
and
22
.
9
8.
Automatic
adjustments
permitted
.
10
a.
This
chapter
does
not
prohibit
a
public
utility
from
11
making
provision
for
the
automatic
adjustment
of
rates
and
12
charges
for
public
utility
service
provided
that
a
schedule
13
showing
the
automatic
adjustment
of
rates
and
charges
is
first
14
filed
with
the
board.
15
b.
A
public
utility
may
automatically
adjust
rates
and
16
charges
to
recover
costs
related
to
transmission
incurred
by
17
or
charged
to
the
public
utility
consistent
with
a
tariff
or
18
agreement
that
is
subject
to
the
jurisdiction
of
the
federal
19
energy
regulatory
commission,
provided
that
a
schedule
showing
20
the
automatic
adjustment
of
rates
and
charges
is
first
filed
21
with
the
board.
22
13.
Energy
efficiency
plans.
Electric
and
gas
public
23
utilities
shall
offer
energy
efficiency
programs
to
their
24
customers
through
energy
efficiency
plans.
An
Each
energy
25
efficiency
plan
as
a
whole
program
shall
be
cost-effective.
26
In
determining
the
cost-effectiveness
of
an
energy
efficiency
27
plan
program
,
the
board
shall
apply
the
societal
test,
total
28
resource
cost
test,
utility
cost
test,
rate-payer
impact
29
test,
and
participant
test.
Energy
efficiency
programs
for
30
qualified
low-income
persons
and
for
tree
planting
programs,
31
educational
programs,
and
assessments
of
consumers’
needs
for
32
information
to
make
effective
choices
regarding
energy
use
33
and
energy
efficiency
need
not
be
cost-effective
and
shall
34
not
be
considered
in
determining
cost-effectiveness
of
plans
35
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as
a
whole
.
The
energy
efficiency
programs
in
the
plans
may
1
be
provided
by
the
utility
or
by
a
contractor
or
agent
of
the
2
utility.
Programs
offered
pursuant
to
this
subsection
by
gas
3
and
electric
utilities
that
are
required
to
be
rate-regulated
4
shall
require
board
approval.
5
Sec.
9.
Section
476.6,
subsection
15,
paragraphs
a
and
b,
6
Code
2018,
are
amended
to
read
as
follows:
7
a.
(1)
(a)
Gas
and
electric
utilities
required
to
be
8
rate-regulated
under
this
chapter
shall
file
energy
efficiency
9
plans
with
the
board.
An
energy
efficiency
plan
and
budget
10
shall
include
a
range
of
energy
efficiency
and
demand
response
11
programs,
tailored
to
the
needs
of
all
customer
classes,
12
including
residential,
commercial,
and
industrial
customers,
13
for
energy
efficiency
opportunities.
The
plans
shall
14
include
programs
for
qualified
low-income
persons
including
a
15
cooperative
program
with
any
community
action
agency
within
the
16
utility’s
service
area
to
implement
countywide
or
communitywide
17
energy
efficiency
programs
for
qualified
low-income
persons.
18
Rate-regulated
gas
and
electric
utilities
shall
utilize
19
Iowa
agencies
and
Iowa
contractors
to
the
maximum
extent
20
cost-effective
in
their
energy
efficiency
plans
filed
with
the
21
board.
22
(b)
Gas
and
electric
utilities
required
to
be
23
rate-regulated
under
this
chapter
may
request
an
energy
24
efficiency
plan
modification
during
the
course
of
a
five-year
25
plan.
A
modification
may
be
requested
due
to
changes
in
26
funding
as
the
result
of
public
utility
customers
filing
27
exemptions
from
the
plan
or
for
any
other
reason
identified
by
28
the
gas
or
electric
utility.
The
board
shall
take
action
on
a
29
modification
request
made
by
the
gas
or
electric
utility
within
30
sixty
days
after
a
modification
request
is
filed.
If
the
board
31
fails
to
take
action
within
sixty
days
after
a
modification
32
request
is
filed,
the
modification
request
shall
be
deemed
33
approved.
34
(2)
Public
utility
customers
with
monthly
peak
usage
that
35
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_____
averages
fifteen
megawatts
or
more
of
electricity
during
a
plan
1
year
may
apply
for
an
exemption
from
participation
in
energy
2
efficiency
and
demand
response
programs
included
in
an
energy
3
efficiency
plan,
including
an
exemption
from
the
costs
of
the
4
plan.
For
an
exemption
from
a
plan
that
is
effective
prior
to
5
the
effective
date
of
this
Act,
a
customer
qualifying
pursuant
6
to
this
paragraph
shall
apply
within
three
months
after
the
7
effective
date
of
this
Act.
For
an
exemption
from
a
plan
that
8
takes
effect
on
or
after
the
effective
date
of
this
Act,
a
9
customer
qualifying
pursuant
to
this
paragraph
shall
apply
for
10
an
exemption
on
or
before
June
1
of
the
first
plan
year.
Upon
11
verification
that
a
customer
is
eligible
for
such
exemption,
12
the
gas
or
electric
utility
shall
grant
the
exemption
and,
13
beginning
January
1
of
the
following
year,
the
customer
shall
14
no
longer
be
assessed
the
costs
of
the
plan
and
shall
no
15
longer
be
required
to
participate
in
energy
efficiency
and
16
demand
response
programs
included
in
the
plan.
The
exemption
17
shall
be
considered
permanent
unless
the
customer
applies
for
18
reenrollment
in
such
programs
on
or
before
June
1
of
a
given
19
plan
year.
20
b.
(1)
A
gas
and
electric
utility
required
to
be
21
rate-regulated
under
this
chapter
shall
assess
potential
energy
22
and
capacity
savings
available
from
actual
and
projected
23
customer
usage
by
applying
commercially
available
technology
24
and
improved
operating
practices
to
energy-using
equipment
and
25
buildings.
The
utility
shall
submit
the
assessment
to
the
26
board.
Upon
receipt
of
the
assessment,
the
board
shall
consult
27
with
the
economic
development
authority
to
develop
specific
28
capacity
and
energy
savings
performance
standards
goals
for
29
each
utility.
Such
goals,
except
as
provided
for
in
subsection
30
13,
shall
only
include
cost-effective
energy
efficiency
and
31
demand
response
programs.
The
utility
shall
submit
an
energy
32
efficiency
plan
which
shall
include
economically
achievable
33
programs
designed
to
attain
these
energy
and
capacity
34
performance
standards
goals
.
The
board
shall
periodically
35
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report
the
energy
efficiency
results
including
energy
savings
1
of
each
utility
to
the
general
assembly.
2
(2)
For
purposes
of
this
paragraph,
“cost-effective”
means
3
the
total
resource
cost
test
result
for
a
program
is
greater
4
than
one.
In
applying
the
total
resource
cost
test,
benefits
5
to
be
considered
include
avoided
capacity
and
energy
costs
6
and
federal
tax
credits,
and
costs
to
be
considered
include
7
incremental
costs
of
equipment,
operation,
and
maintenance,
8
utility
costs,
and
program
administration
costs.
9
Sec.
10.
Section
476.6,
subsection
15,
paragraph
c,
10
subparagraphs
(1)
and
(3),
Code
2018,
are
amended
to
read
as
11
follows:
12
(1)
Gas
and
electric
utilities
that
are
not
required
to
13
be
rate-regulated
under
this
chapter
shall
assess
maximum
14
potential
energy
and
capacity
savings
available
from
actual
15
and
projected
customer
usage
through
cost-effective
energy
16
efficiency
measures
and
programs,
taking
into
consideration
the
17
utility
service
area’s
historic
energy
load,
projected
demand,
18
customer
base,
and
other
relevant
factors.
Each
utility
shall
19
establish
an
energy
efficiency
goal
based
upon
this
assessment
20
of
potential
and
shall
establish
cost-effective
energy
21
efficiency
programs
designed
to
meet
the
energy
efficiency
22
goal.
Separate
goals
may
be
established
for
various
customer
23
groupings.
24
(3)
Each
utility
shall
commence
the
process
of
determining
25
its
cost-effective
energy
efficiency
goal
on
or
before
July
1,
26
2008,
shall
provide
a
progress
report
to
the
board
on
or
before
27
January
1,
2009,
and
complete
the
process
and
submit
a
final
28
report
to
the
board
on
or
before
January
1,
2010.
The
report
29
shall
include
the
utility’s
cost-effective
energy
efficiency
30
goal,
and
for
each
measure
utilized
by
the
utility
in
meeting
31
the
goal,
the
measure’s
description,
projected
costs,
and
the
32
analysis
of
its
cost-effectiveness.
Each
utility
or
group
33
of
utilities
shall
evaluate
cost-effectiveness
using
the
34
cost-effectiveness
tests
in
accordance
with
subsection
13
of
35
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this
section
.
Individual
utilities
or
groups
of
utilities
may
1
collaborate
in
conducting
the
studies
required
hereunder
and
2
may
file
a
joint
report
or
reports
with
the
board.
However,
3
the
board
may
require
individual
information
from
any
utility,
4
even
if
it
participates
in
a
joint
report.
5
Sec.
11.
Section
476.6,
subsection
15,
paragraph
d,
Code
6
2018,
is
amended
by
striking
the
paragraph.
7
Sec.
12.
Section
476.6,
subsection
15,
paragraphs
e
and
g,
8
Code
2018,
are
amended
to
read
as
follows:
9
e.
(1)
The
board
shall
conduct
contested
case
proceedings
10
for
review
of
energy
efficiency
plans
and
budgets
filed
by
gas
11
and
electric
utilities
required
to
be
rate-regulated
under
12
this
chapter
.
Notwithstanding
the
goals
developed
pursuant
to
13
paragraph
“b”
,
the
board
shall
not
require
a
gas
or
electric
14
utility
to
adopt
an
energy
efficiency
plan
that
results
in
15
projected
average
annual
costs
that
exceed
two
percent
of
the
16
gas
or
electric
utility’s
annual
rate
revenue.
For
purposes
of
17
determining
the
two
percent
threshold
amount,
the
board
shall
18
exclude
from
a
gas
or
electric
utility’s
annual
rate
revenue
19
the
revenues
from
customers
that
receive
an
exemption
pursuant
20
to
paragraph
“a”
,
subparagraph
(2),
and
shall
exclude
revenues
21
associated
with
the
recovery
of
energy
efficiency
costs.
A
22
gas
or
electric
utility
may
voluntarily
propose
an
energy
23
efficiency
plan
that
results
in
projected
average
annual
costs
24
that
exceed
two
percent
of
the
gas
or
electric
utility’s
annual
25
rate
revenue.
The
board
may
approve,
reject,
or
modify
the
26
plans
and
budgets.
Notwithstanding
the
provisions
of
section
27
17A.19,
subsection
5
,
in
an
application
for
judicial
review
of
28
the
board’s
decision
concerning
a
utility’s
energy
efficiency
29
plan
or
budget,
the
reviewing
court
shall
not
order
a
stay.
30
Whenever
31
(2)
Notwithstanding
paragraph
“a”
,
subparagraph
(1),
32
subparagraph
division
(b),
if,
on
the
effective
date
of
this
33
Act,
a
gas
or
electric
utility’s
currently
approved
energy
34
efficiency
plan
includes
projected
annual
costs
that
exceed
35
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two
percent
of
the
gas
or
electric
utility’s
annual
rate
1
revenue
received
for
service
within
the
previous
calendar
year,
2
exclusive
of
recovery
of
energy
efficiency
costs,
the
gas
or
3
electric
utility
may
file
a
request
to
modify
its
approved
4
energy
efficiency
plan
to
achieve
projected
annual
costs
at
5
two
percent
or
less
of
the
gas
or
electric
utility’s
annual
6
rate
revenue.
In
such
case,
or
whenever
a
request
to
modify
7
an
approved
plan
or
budget
is
filed
subsequently
by
the
office
8
of
consumer
advocate
or
a
gas
or
electric
utility
required
to
9
be
rate-regulated
under
this
chapter
,
the
board
shall
promptly
10
initiate
a
formal
proceeding
if
the
board
determines
that
any
11
reasonable
ground
exists
for
investigating
the
request.
The
12
formal
proceeding
may
be
initiated
at
any
time
by
the
board
13
on
its
own
motion.
Implementation
of
board-approved
plans
or
14
budgets
shall
be
considered
continuous
in
nature
and
shall
be
15
subject
to
investigation
at
any
time
by
the
board
or
the
office
16
of
the
consumer
advocate.
17
g.
(1)
A
gas
or
electric
utility
required
to
be
18
rate-regulated
under
this
chapter
may
recover,
through
an
19
automatic
adjustment
mechanism
filed
pursuant
to
subsection
20
8
,
over
a
period
not
to
exceed
the
term
of
the
plan,
the
21
costs
of
an
energy
efficiency
plan
approved
by
the
board
,
22
including
amounts
for
a
plan
approved
prior
to
July
1,
1996,
23
in
a
contested
case
proceeding
conducted
pursuant
to
paragraph
24
“e”
.
The
board
shall
ensure
that
energy
efficiency
costs
are
25
recovered
from
all
customers
on
a
reasonably
comparable
basis,
26
including
customers
who
utilize
alternate
energy
production
27
facilities
as
defined
in
section
476.42.
Customers
who
are
28
granted
an
exemption
from
energy
efficiency
and
demand
response
29
programs
pursuant
to
paragraph
“a”
,
subparagraph
(2),
shall
not
30
be
charged
for
recovery
of
energy
efficiency
costs.
31
(2)
The
board
shall
periodically
conduct
a
contested
case
32
proceeding
to
evaluate
the
reasonableness
and
prudence
of
the
33
utility’s
implementation
of
an
approved
energy
efficiency
plan
34
and
budget.
If
a
utility
is
not
taking
all
reasonable
actions
35
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to
cost-effectively
implement
an
approved
energy
efficiency
1
plan,
the
board
shall
not
allow
the
utility
to
recover
from
2
customers
costs
in
excess
of
those
costs
that
would
be
incurred
3
under
reasonable
and
prudent
implementation
and
shall
not
allow
4
the
utility
to
recover
future
costs
at
a
level
other
than
what
5
the
board
determines
to
be
reasonable
and
prudent.
If
the
6
result
of
a
contested
case
proceeding
is
a
judgment
against
a
7
utility,
that
utility’s
future
level
of
cost
recovery
shall
be
8
reduced
by
the
amount
by
which
the
programs
were
found
to
be
9
imprudently
conducted.
The
utility
shall
not
represent
energy
10
efficiency
in
customer
billings
as
a
separate
cost
or
expense
11
unless
the
board
otherwise
approves.
12
Sec.
13.
Section
476.6,
subsection
17,
Code
2018,
is
amended
13
by
striking
the
subsection.
14
Sec.
14.
Section
476.6,
subsection
20,
Code
2018,
is
amended
15
to
read
as
follows:
16
20.
Electric
power
generating
facility
emissions.
17
a.
It
is
the
intent
of
the
general
assembly
that
the
state,
18
through
a
collaborative
effort
involving
state
agencies
and
19
affected
generation
owners,
provide
for
compatible
statewide
20
environmental
and
electric
energy
policies
with
respect
21
to
regulated
emissions
from
rate-regulated
electric
power
22
generating
facilities
in
the
state
that
are
fueled
by
coal.
23
Each
A
rate-regulated
public
utility
that
is
an
owner
of
one
24
or
more
electric
power
generating
facilities
fueled
by
coal
25
and
located
in
this
state
on
July
1,
2001,
shall
develop
a
26
multiyear
plan
and
budget
may,
in
its
sole
discretion,
file
for
27
advanced
review
of
projects
for
managing
regulated
emissions
28
from
its
facilities
in
a
cost-effective
manner.
29
(1)
The
initial
multiyear
plan
and
budget
shall
be
filed
30
with
the
board
by
April
1,
2002.
Updates
to
the
plan
and
budget
31
shall
be
filed
at
least
every
twenty-four
months.
32
(2)
Copies
of
the
initial
plan
and
budget,
as
well
as
33
any
subsequent
updates,
shall
be
served
on
the
department
of
34
natural
resources.
35
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(3)
The
initial
multiyear
plan
and
budget
and
any
subsequent
1
updates
shall
be
considered
in
a
contested
case
proceeding
2
pursuant
to
chapter
17A
.
The
department
of
natural
resources
3
and
the
consumer
advocate
shall
participate
as
parties
to
the
4
proceeding.
5
b.
A
rate-regulated
public
utility
shall
file
an
application
6
for
advanced
review
of
a
project
at
least
one
hundred
twenty
7
days
before
the
anticipated
start
of
construction.
Where
an
8
electric
power
generating
facility
is
owned
by
two
or
more
9
rate-regulated
public
utilities,
the
operator
of
the
electric
10
power
generating
facility
may
file
the
application
on
behalf
of
11
the
rate-regulated
public
utilities.
12
(4)
c.
The
department
of
natural
resources
shall
state
13
whether
the
plan
or
update
project
meets
applicable
state
or
14
federal
environmental
requirements
for
regulated
emissions
,
15
including
requirements
related
to
air,
water,
or
solid
waste
.
16
If
the
plan
project
does
not
meet
these
requirements,
the
17
department
shall
recommend
amendments
that
outline
actions
18
necessary
to
bring
the
plan
or
update
project
into
compliance
19
with
the
environmental
requirements.
20
b.
d.
The
board
shall
not
approve
a
plan
or
update
project
21
that
does
not
meet
applicable
state
or
federal
environmental
22
requirements
and
federal
ambient
air
quality
standards
for
23
regulated
emissions
from
electric
power
generating
facilities
24
located
in
the
state.
25
c.
e.
The
board
shall
review
the
plan
or
update
project
26
and
the
associated
budget,
and
shall
approve
the
plan
or
update
27
project
and
the
associated
budget
if
the
plan
or
update
project
28
and
the
associated
budget
are
reasonably
expected
to
achieve
29
cost-effective
compliance
with
applicable
state
or
federal
30
environmental
requirements
and
federal
ambient
air
quality
31
standards
.
In
reaching
its
decision,
the
board
shall
consider
32
whether
the
plan
or
update
project
and
the
associated
budget
33
reasonably
balance
costs,
environmental
requirements,
economic
34
development
potential,
and
the
reliability
of
the
electric
35
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generation
and
transmission
system.
1
d.
f.
The
board
shall
issue
an
order
approving
or
rejecting
2
a
plan,
update,
or
budget
project
within
one
hundred
eighty
3
ninety
days
after
the
public
utility’s
a
filing
is
deemed
4
complete;
however,
upon
good
cause
shown,
the
board
may
5
extend
the
time
for
issuing
the
order
as
follows:
for
approval
6
pursuant
to
this
subsection.
7
(1)
The
board
may
grant
an
extension
of
thirty
days.
8
(2)
The
board
may
grant
more
than
one
extension,
but
each
9
extension
must
rely
upon
a
separate
showing
of
good
cause.
10
(3)
A
subsequent
extension
must
not
be
granted
any
earlier
11
than
five
days
prior
to
the
expiration
of
the
original
12
one-hundred-eighty-day
period,
or
the
current
extension.
13
e.
g.
The
reasonable
costs
incurred
by
a
rate-regulated
14
public
utility
in
preparing
and
filing
the
plan,
update,
or
15
budget
project
and
in
participating
in
the
proceedings
before
16
the
board
and
the
reasonable
costs
associated
with
implementing
17
the
plan,
update,
or
budget
project
shall
be
included
in
its
18
regulated
retail
rates.
19
f.
It
is
the
intent
of
the
general
assembly
that
the
board,
20
in
an
environmental
plan,
update,
or
associated
budget
filed
21
under
this
section
by
a
rate-regulated
public
utility,
may
22
limit
investments
or
expenditures
that
are
proposed
to
be
23
undertaken
prior
to
the
time
that
the
environmental
benefit
to
24
be
produced
by
the
investment
or
expenditure
would
be
required
25
by
state
or
federal
law.
26
Sec.
15.
Section
476.6,
Code
2018,
is
amended
by
adding
the
27
following
new
subsections:
28
NEW
SUBSECTION
.
22.
Voluntary
rates
and
revenue-neutral
29
tariff
filings.
30
a.
A
rate-regulated
public
utility
may
file
at
any
time
for
31
approval
a
tariff
or
rate
that
satisfies
any
of
the
following
32
conditions:
33
(1)
The
tariff
or
rate
is
optional
for
customers
and
all
34
costs
associated
with
the
tariff
or
rate
are
borne
by
customers
35
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_____
who
elect
to
participate
in
the
tariff
or
rate.
1
(2)
The
tariff
or
rate
is
revenue-neutral.
For
purposes
2
of
this
subparagraph,
“revenue-neutral”
means
a
change
in
a
3
rate,
tariff
design,
or
mechanism
as
a
component
of
an
energy
4
efficiency
plan
or
base
rate
that
does
not
shift
annualized
5
allowed
revenue
between
customer
classes
and
does
not
increase
6
or
decrease
the
public
utility’s
average
nonfuel
revenue
per
7
customer
for
any
given
rate
class
when
compared
to
either
the
8
rate,
tariff
design,
or
mechanism
in
effect
at
the
time
that
a
9
filing
is
made
pursuant
to
this
subsection
or
the
allocation
10
of
costs
approved
by
the
board
in
a
rate
case
using
the
cost
of
11
service
methodology.
12
b.
The
board
shall
review
the
tariff
or
rate
filing
within
13
thirty
days
of
filing.
If
the
board
fails
to
review
the
tariff
14
or
rate
filing
within
thirty
days
of
filing,
the
tariff
or
15
rate
filing
shall
be
deemed
approved.
The
board
shall
not
be
16
required
to
hold
a
hearing
to
review
a
tariff
or
rate
filing
17
made
pursuant
to
this
subsection.
18
NEW
SUBSECTION
.
23.
Preapproval
for
natural
gas
extensions
19
——
rules.
The
board
may
adopt
rules
which
provide
for
a
20
preapproval
process
for
natural
gas
extensions
to
support
21
population
growth
or
economic
development.
22
Sec.
16.
Section
476.20,
subsection
5,
paragraph
a,
23
unnumbered
paragraph
1,
Code
2018,
is
amended
to
read
as
24
follows:
25
The
board
shall
establish
rules
which
shall
be
uniform
with
26
respect
to
all
public
utilities
furnishing
gas
or
electricity
27
relating
to
deposits
which
may
be
required
by
the
public
28
utility
for
the
initiation
or
reinstatement
of
service.
This
29
subsection
shall
not
apply
to
municipally
owned
utilities,
30
which
shall
be
governed
by
the
provisions
of
section
384.84
31
with
respect
to
deposits
and
payment
plans
for
delinquent
32
amounts
owed.
Municipally
owned
utilities
and
electric
33
utilities
that
are
not
required
to
be
rate-regulated
shall
not
34
be
subject
to
the
board’s
rules
in
regards
to
deposits
and
35
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payment
plans
for
delinquent
amounts
owed
and
repayment
of
past
1
due
debt.
Municipally
owned
utilities
and
electric
utilities
2
that
are
not
required
to
be
rate-regulated
shall
be
subject
to
3
the
board’s
rules
in
regards
to
payment
plans
made
prior
to
the
4
disconnection
of
services.
5
Sec.
17.
Section
476.21,
Code
2018,
is
amended
to
read
as
6
follows:
7
476.21
Discrimination
prohibited.
8
A
municipality,
corporation
or
cooperative
association
9
providing
electrical
or
gas
service
shall
not
consider
the
10
use
of
renewable
energy
sources
by
a
customer
as
a
basis
for
11
establishing
discriminatory
rates
or
charges
for
any
service
12
or
commodity
sold
to
the
customer
or
discontinue
services
or
13
subject
the
customer
to
any
other
prejudice
or
disadvantage
14
based
on
the
customer’s
use
or
intended
use
of
renewable
energy
15
sources.
As
used
in
this
section
,
“renewable
energy
sources”
16
includes
but
is
not
limited
to
solar
heating,
wind
power
17
and
the
conversion
of
urban
and
agricultural
organic
wastes
18
into
methane
gas
and
liquid
fuels.
This
section
shall
not
19
prohibit
the
establishment
of
rates
or
charges
for
customers
20
that
are
different
than
the
rates
or
charges
for
customers
who
21
obtain
all
of
their
energy
requirements
from
the
municipality,
22
corporation,
or
cooperative
association,
provided
that
the
23
difference
in
rates
or
charges
is
based
on
the
difference
in
24
cost
of
service
and
anticipated
energy
use.
25
Sec.
18.
NEW
SECTION
.
476.26A
Right
to
construct,
own,
and
26
maintain
electric
transmission
lines.
27
1.
As
used
in
this
section,
unless
the
context
otherwise
28
requires:
29
a.
“Electric
transmission
line”
means
a
high-voltage
30
direct
current
electric
transmission
line
with
a
capacity
of
31
one
hundred
kilovolts
or
more
and
any
associated
electric
32
transmission
facilities.
33
b.
“Electric
transmission
owner”
means
an
individual
or
34
entity
who,
as
of
the
effective
date
of
this
Act,
owns
and
35
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maintains
an
electric
transmission
facility
including
electric
1
transmission
lines,
wires,
or
cables
that
are
capable
of
2
operating
at
an
electric
voltage
of
one
hundred
kilovolts
or
3
more
that
are
required
for
rate-regulated
electric
utilities,
4
municipal
electric
utilities,
and
rural
electric
cooperatives
5
in
this
state
to
provide
electric
service
to
the
public
for
6
compensation.
7
c.
“Incumbent
electric
transmission
owner”
means
any
of
the
8
following:
9
(1)
A
public
utility
or
a
municipally
owned
utility
that
10
owns,
operates,
and
maintains
an
electric
transmission
line
in
11
this
state.
12
(2)
An
electric
cooperative
corporation
or
association
or
13
municipally
owned
utility
that
owns
an
electric
transmission
14
facility
in
this
state
and
has
turned
over
the
functional
15
control
of
such
facility
to
a
federally
approved
authority.
16
(3)
An
“electric
transmission
owner”
as
defined
in
paragraph
17
“b”
.
18
d.
“Municipally
owned
utility”
means
a
“city
utility”
as
19
defined
in
section
362.2,
or
an
“electric
power
agency”
as
20
defined
in
section
390.9
which
is
comprised
solely
of
cities
or
21
solely
of
cities
and
other
political
subdivisions.
22
2.
An
incumbent
electric
transmission
owner
may
construct,
23
own,
and
maintain
an
electric
transmission
line
that
has
24
been
approved
for
construction
in
a
federally
registered
25
planning
authority
transmission
plan
and
which
connects
to
an
26
electric
transmission
facility
owned
by
the
incumbent
electric
27
transmission
owner.
Where
an
electric
transmission
facility
is
28
owned
by
two
or
more
incumbent
electric
transmission
owners,
29
each
incumbent
electric
transmission
owner
shall
have
the
right
30
to
construct,
own,
and
maintain
an
electric
transmission
line
31
that
connects
to
the
electric
transmission
facility
regardless
32
of
whether
one
incumbent
electric
transmission
owner
declines
33
to
construct,
own,
or
maintain
its
portion
of
an
electric
34
transmission
line
connecting
to
the
electric
transmission
35
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facility,
unless
otherwise
agreed
upon
in
writing.
1
3.
This
section
shall
not
modify
the
rights
and
obligations
2
relating
to
the
construction,
maintenance,
and
operation
of
3
electric
transmission
lines
pursuant
to
chapter
478.
4
Sec.
19.
Section
476.33,
subsection
4,
Code
2018,
is
amended
5
to
read
as
follows:
6
4.
The
board
shall
adopt
rules
that
require
the
board,
in
7
rate
regulatory
proceedings
under
sections
476.3
and
476.6
,
to
8
utilize
either
a
historic
test
year
or
a
future
test
year
at
9
the
rate-regulated
public
utility’s
discretion.
10
a.
For
a
rate
regulatory
proceeding
utilizing
a
historic
11
test
year,
the
rules
shall
require
the
board
to
consider
the
12
use
of
the
most
current
test
period
possible
in
determining
13
reasonable
and
just
rates,
subject
only
to
the
availability
of
14
existing
and
verifiable
data
respecting
costs
and
revenues,
and
15
in
addition,
to
consider
verifiable
data
that
exists
within
16
nine
months
after
the
conclusion
of
the
test
year,
respecting
17
known
and
measurable
changes
in
costs
not
associated
with
a
18
different
level
of
revenue,
and
known
and
measurable
revenues
19
not
associated
with
a
different
level
of
costs,
that
are
to
20
occur
at
any
time
within
twelve
months
after
the
date
of
21
commencement
of
the
proceedings.
Parties
proposing
adjustments
22
that
are
not
verifiable
at
the
commencement
of
the
proceedings
23
shall
include
projected
data
related
to
the
adjustments
in
24
their
initial
substantive
filing
with
the
board.
For
purposes
25
of
this
subsection
paragraph
,
a
proceeding
commences
under
26
section
476.6
upon
the
filing
date
of
new
or
changed
rates,
27
charges,
schedules,
or
regulations.
This
subsection
does
not
28
limit
the
authority
of
the
board
to
consider
other
evidence
in
29
proceedings
under
sections
476.3
and
476.6
.
30
b.
For
a
rate
regulatory
proceeding
utilizing
a
future
test
31
year,
the
rules
shall
require
the
board
to
consider
the
use
32
of
any
twelve-month
period
beginning
no
later
than
the
date
33
on
which
a
proposed
rate
change
is
expected
to
take
effect
in
34
determining
just
and
reasonable
rates.
35
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c.
This
subsection
does
not
limit
the
authority
of
the
board
1
to
consider
other
evidence
in
proceedings
under
sections
476.3
2
and
476.6.
3
Sec.
20.
Section
476.53,
subsection
3,
paragraph
a,
4
subparagraph
(1),
subparagraph
division
(a),
Code
2018,
is
5
amended
by
adding
the
following
new
subparagraph
subdivision:
6
NEW
SUBPARAGRAPH
SUBDIVISION
.
(v)
Repowering
of
an
7
alternate
energy
production
facility
to
upgrade
or
extend
the
8
useful
life
of
the
facility.
9
Sec.
21.
NEW
SECTION
.
476.59
Emerging
energy
technologies.
10
1.
For
purposes
of
this
section,
“emerging
energy
11
technology”
includes
but
is
not
limited
to
an
energy
storage
12
facility,
electric
grid
protection
system,
electric
grid
13
management
system,
cyber
security
infrastructure,
electric
14
vehicle
infrastructure,
or
any
other
emerging
energy
technology
15
identified
by
the
board
and
consistent
with
the
general
16
assembly’s
intent
as
provided
in
subsection
2.
17
2.
a.
It
is
the
intent
of
the
general
assembly
to
attract
18
the
development
of
emerging
energy
technologies
within
the
19
state
in
sufficient
quantity
to
ensure
reliable
electric
20
service
to
Iowa
consumers
and
provide
economic
benefits
to
21
the
state.
It
is
also
the
intent
of
the
general
assembly
to
22
encourage
the
development
of
the
state’s
future
electric
energy
23
supply
and
the
protection
of
the
electric
grid
from
cyber
and
24
physical
threats.
25
b.
The
general
assembly’s
intent
with
regard
to
the
26
reliability
of
electric
service
to
Iowa
consumers
shall
be
27
implemented
by
considering,
among
other
things,
the
development
28
of
energy
storage,
and
the
protection
of
the
electric
grid
from
29
cyber
and
physical
threats.
30
c.
The
general
assembly’s
intent
with
regard
to
the
31
development
of
Iowa’s
future
electric
energy
supply
shall
be
32
implemented
in
a
manner
that
advances
a
reliable,
secure,
33
economical,
and
environmentally
responsible
energy
supply
34
for
the
state,
recognizing
the
value
of
emerging
energy
35
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technologies
to
promote
the
state’s
economic
development.
1
3.
a.
The
board
shall
specify
in
advance,
by
order
issued
2
after
a
contested
case
proceeding,
the
ratemaking
principles
3
that
will
apply
whenever
a
rate-regulated
public
utility
4
requests
advanced
ratemaking
principles
for
the
construction,
5
investment,
or
implementation
of
an
emerging
energy
technology,
6
and
the
costs
of
the
emerging
energy
technology
are
included
in
7
regulated
electric
rates.
8
b.
In
determining
the
applicable
ratemaking
principles,
the
9
board
shall
not
be
limited
to
traditional
ratemaking
principles
10
or
traditional
cost
recovery
mechanisms.
11
c.
In
determining
the
applicable
ratemaking
principles,
the
12
board
shall
make
the
following
findings:
13
(1)
The
rate-regulated
public
utility
has
demonstrated
14
to
the
board
that
the
proposed
emerging
energy
technology
is
15
reasonable.
16
(2)
The
rate-regulated
public
utility
has
demonstrated
17
to
the
board
that
the
public
utility
has
considered
18
other
reasonable
alternatives,
if
any,
to
the
proposed
19
emerging
energy
technology
and
that
the
proposed
emerging
20
energy
technology
is
reasonable
when
compared
to
any
such
21
alternatives.
22
d.
The
applicable
ratemaking
principles
shall
be
determined
23
in
a
contested
case
proceeding.
24
e.
The
order
setting
forth
the
applicable
ratemaking
25
principles
shall
be
issued
prior
to
the
construction,
26
investment,
or
implementation
of
the
emerging
energy
27
technology.
28
f.
Following
issuance
of
the
order,
the
rate-regulated
29
public
utility
may
proceed
with
the
construction,
investment,
30
or
implementation
of
the
emerging
energy
technology.
31
g.
Notwithstanding
any
provision
of
this
chapter
to
the
32
contrary,
the
ratemaking
principles
established
by
the
order
33
issued
pursuant
to
paragraph
“e”
shall
be
binding
with
regard
to
34
the
specific
emerging
energy
technology
in
any
subsequent
rate
35
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proceeding.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
This
bill
modifies
various
provisions
relating
to
public
5
utilities.
6
The
bill
adds
gasworks
and
facilities
useful
for
the
7
delivery
of
gas
service
to
the
list
of
works
or
facilities
8
permitted
for
joint
financing
by
public
agencies
pursuant
9
to
Code
chapter
28F.
The
bill
prohibits
public
agencies
10
participating
in
joint
financing
agreements
pursuant
to
Code
11
chapter
28F
from
exercising
their
powers
of
eminent
domain
to
12
acquire
interests
in
properties
used
for
the
transmission,
13
transportation,
or
sale
of
natural
gas.
14
Current
law
requires
certain
non-rate-regulated
electric
15
utilities
and
municipally
owned
utilities
to
file
energy
16
efficiency
plans
with
the
Iowa
utilities
board.
The
bill
17
provides
that
the
energy
efficiency
programs
included
in
such
18
plans
shall
be
cost-effective
and
removes
requirements
for
the
19
board
to
report
the
energy
efficiency
results
of
such
utilities
20
to
the
general
assembly.
21
Current
law
allows
the
board
of
directors
or
the
membership
22
of
non-rate-regulated
electric
cooperatives
to
elect
to
23
have
the
cooperative’s
rates
regulated
by
the
board,
and
24
subsequently
elect
to
exempt
the
cooperative
from
rate
25
regulation.
The
bill
provides
that
if
the
membership
of
a
26
cooperative
elects
to
have
the
cooperative’s
rates
regulated
27
by
the
board,
only
the
membership
may
elect
to
exempt
the
28
cooperative
from
rate
regulation.
29
The
bill
allows
a
public
utility
to
automatically
adjust
30
rates
and
charges
to
recover
certain
costs
related
to
31
transmission,
provided
that
the
public
utility
first
files
a
32
schedule
showing
such
automatic
adjustment
with
the
board.
33
Current
law
requires
electric
and
gas
public
utilities
to
34
offer
energy
efficiency
programs
to
customers
through
energy
35
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_____
efficiency
plans,
which
plans
must
be
cost-effective.
The
1
bill
requires
each
energy
efficiency
program,
instead
of
the
2
energy
efficiency
plan
as
a
whole,
to
be
cost-effective.
The
3
bill
adds
the
total
resource
cost
test
to
the
list
of
tests
the
4
board
must
apply
in
determining
the
cost-effectiveness
of
an
5
energy
efficiency
program.
The
bill
specifies
that
the
types
6
of
programs
included
in
an
energy
efficiency
plan
must
pertain
7
to
energy
efficiency
and
demand
response.
8
The
bill
allows
a
gas
and
electric
utility
to
request
an
9
energy
efficiency
plan
modification
during
the
course
of
a
10
five-year
plan
due
to
changes
in
funding
or
any
other
reason
11
identified
by
the
utility.
The
board
must
take
action
on
a
12
modification
request
within
60
days
after
filing,
or
such
13
request
is
deemed
approved.
14
The
bill
allows
public
utility
customers
with
monthly
peak
15
usage
of
15
megawatts
of
electricity
or
more
during
a
plan
16
year
to
apply
for
an
exemption
from
participation
in
programs
17
included
in
an
energy
efficiency
plan,
including
the
costs
of
18
the
plan.
For
a
plan
that
takes
effect
prior
to
the
effective
19
date
of
the
bill,
a
qualifying
customer
must
apply
within
three
20
months
after
the
effective
date
of
the
bill.
For
a
plan
taking
21
effect
on
or
after
the
effective
date
of
the
bill,
a
qualifying
22
customer
must
apply
no
later
than
June
1
of
the
first
plan
23
year.
An
exemption
shall
take
effect
on
January
1
of
the
24
year
following
the
application
filing
and
shall
be
considered
25
permanent
unless
the
customer
applies
for
reenrollment
on
or
26
before
June
1
of
a
given
plan
year.
27
Current
law
requires
the
board
to
consult
with
the
28
economic
development
authority
to
develop
capacity
and
energy
29
savings
performance
standards
for
each
rate-regulated
gas
or
30
electric
utility.
The
bill
replaces
“performance
standards”
31
with
“goals”,
and
specifies
that
such
goals
only
include
32
cost-effective
energy
efficiency
and
demand
response
programs,
33
as
defined
in
the
bill.
34
The
bill
removes
the
outdated
requirement
for
35
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_____
non-rate-regulated
gas
and
electric
utilities
to
submit
reports
1
to
the
board
on
or
before
January
1,
2010,
relating
to
such
2
utilities’
energy
efficiency
goals.
The
bill
also
removes
3
outdated
requirements
for
the
board
to
submit
certain
reports
4
relating
to
energy
efficiency
to
the
general
assembly
in
1998,
5
2009,
and
2011.
6
The
bill
prohibits
the
board
from
requiring
a
gas
or
electric
7
utility
from
adopting
an
energy
efficiency
plan
that
results
in
8
projected
annual
costs
in
excess
of
2
percent
of
the
utility’s
9
annual
rate
revenue.
In
determining
the
2
percent
threshold
10
amount,
the
board
shall
exclude
revenues
from
customers
11
receiving
exemptions
from
participation
in
energy
efficiency
12
programs
and
revenues
associated
with
the
recovery
of
energy
13
efficiency
costs.
A
gas
or
electric
utility
may
voluntarily
14
propose
an
energy
efficiency
plan
in
excess
of
the
2
percent
15
threshold
amount.
If
a
gas
or
electric
utility
has
an
approved
16
energy
efficiency
plan
that
exceeds
the
2
percent
threshold
17
amount
on
the
effective
date
of
the
bill,
the
utility
may
file
18
a
request
to
modify
the
energy
efficiency
plan
to
achieve
19
projected
annual
costs
below
the
2
percent
threshold
amount.
20
The
board
shall
promptly
initiate
a
formal
proceeding
if
21
reasonable
grounds
exist
for
investigating
the
request.
22
Current
law
allows
a
rate-regulated
gas
or
electric
utility
23
to
recover
the
costs
of
energy
efficiency
plans
through
24
automatic
adjustment
mechanisms.
The
bill
requires
the
board
25
to
ensure
that
energy
efficiency
costs
are
recovered
from
all
26
customers
on
a
reasonably
comparable
basis,
including
customers
27
who
utilize
alternate
energy
production
facilities.
The
bill
28
prohibits
customers
exempt
from
energy
efficiency
and
demand
29
response
programs
from
being
charged
for
recovery
of
energy
30
efficiency
costs.
31
The
bill
strikes
Code
section
476.6(17),
which
allows
the
32
board
to
require
rate-regulated
gas
or
electric
utilities
to
33
offer
financing
for
certain
energy
efficiency
improvements
to
34
customers.
35
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Current
law
specifies
the
general
assembly’s
intent
to
1
provide
for
compatible
statewide
environmental
and
electric
2
energy
policies
with
respect
to
emissions
from
electric
3
power
generating
facilities
in
the
state
that
are
fueled
4
by
coal.
Current
law
requires
each
rate-regulated
public
5
utility
that
owns
one
or
more
such
facilities
on
July
1,
2001,
6
to
develop
a
multiyear
plan
and
budget
managing
emissions
7
in
a
cost-effective
manner.
The
bill
strikes
the
language
8
expressing
the
general
assembly’s
intent
and
replaces
the
9
requirement
that
an
applicable
rate-regulated
public
utility
10
develop
a
multiyear
plan
and
budget
with
the
option
for
a
11
rate-regulated
public
utility
to
file
for
advanced
review
of
12
projects
to
manage
regulated
emissions
from
its
facilities
13
in
a
cost-effective
manner.
Such
filing
shall
be
made
at
14
least
120
days
before
the
anticipated
start
of
construction.
15
When
a
facility
is
owned
by
two
or
more
rate-regulated
public
16
utilities,
the
owner
of
such
facility
may
file
the
application
17
for
advanced
review
on
behalf
of
the
utilities.
The
bill
18
requires
a
project
to
comply
with
applicable
state
and
federal
19
environmental
requirements.
The
bill
requires
the
board
to
20
issue
an
order
approving
or
rejecting
a
project
within
90
days
21
after
filing.
The
bill
removes
the
ability
of
the
board
to
22
limit
certain
proposed
investments
or
expenditures
pursuant
to
23
an
environmental
plan,
update,
or
associated
budget.
24
The
bill
allows
rate-regulated
public
utilities
to
file
25
for
approval
of
a
tariff
or
rate
that
is
either
optional
26
for
customers,
with
all
associated
costs
borne
by
customers
27
electing
to
participate,
or
is
revenue-neutral,
as
defined
in
28
the
bill.
The
board
must
review
the
tariff
or
rate
within
30
29
days
of
filing
or
the
tariff
or
rate
is
deemed
approved.
The
30
board
is
not
required
to
hold
a
hearing
to
review
such
tariff
31
or
rate.
32
The
bill
allows
the
board
to
adopt
rules
to
provide
for
33
a
preapproval
process
for
natural
gas
extensions
to
support
34
population
growth
or
economic
development.
35
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_____
The
bill
provides
that
non-rate-regulated
electric
utilities
1
shall
not
be
subject
to
the
board’s
rules
in
regards
to
2
deposits
and
payment
plans
for
delinquent
amounts
owed
and
3
repayment
of
past
due
debt,
but
shall
be
subject
to
the
4
board’s
rules
in
regards
to
payment
plans
made
prior
to
the
5
disconnection
of
service.
6
Current
law
prohibits
a
municipality,
corporation,
7
or
cooperative
from
considering
the
use
of
renewable
8
energy
sources
by
a
customer
as
a
basis
for
establishing
9
discriminatory
rates
or
charges.
The
bill
provides
that
10
these
entities
shall
not
be
prohibited
from
establishing
11
rates
or
charges
for
customers
that
are
different
than
the
12
rates
or
charges
for
customers
who
obtain
all
of
their
energy
13
requirements
from
such
entities,
provided
that
the
difference
14
in
rates
or
charges
is
based
on
the
difference
in
cost
of
15
service
and
anticipated
energy
use.
16
The
bill
allows
an
incumbent
electric
transmission
owner,
17
as
defined
in
the
bill,
to
construct,
own,
and
maintain
an
18
electric
transmission
line,
as
defined
in
the
bill,
that
has
19
been
approved
for
construction
in
a
federally
registered
20
planning
authority
transmission
plan
and
which
connects
to
the
21
owner’s
electric
transmission
facility.
Where
an
electric
22
transmission
facility
is
owned
by
two
or
more
incumbent
23
electric
transmission
owners,
each
owner
shall
have
the
right
24
to
construct,
own,
and
maintain
an
electric
transmission
25
line
that
connects
to
the
facility
regardless
of
whether
one
26
owner
declines
to
construct,
own,
or
maintain
its
portion
of
27
an
electric
transmission
line
connecting
to
the
facility,
28
unless
otherwise
agreed
upon
in
writing.
The
bill
provides
29
that
this
does
not
modify
the
rights
and
obligations
related
30
to
the
construction,
maintenance,
and
operation
of
electric
31
transmission
lines
under
Code
chapter
478.
32
Current
law
requires
the
board
to
adopt
rules
that
require
33
the
board
to
consider
the
most
current
test
period
to
determine
34
just
and
reasonable
rates
in
rate
regulatory
proceedings
under
35
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_____
Code
sections
476.3
and
476.6.
The
bill
requires
the
board
1
to
adopt
rules
that
require
the
board
to
utilize
either
a
2
historic
test
year
or
a
future
test
year,
at
a
public
utility’s
3
discretion,
in
rate
regulatory
proceedings.
For
a
proceeding
4
utilizing
a
historic
test
year,
the
rules
shall
require
the
5
board
to
consider
the
use
of
the
most
current
test
period
6
to
determine
just
and
reasonable
rates.
For
a
proceeding
7
utilizing
a
future
test
year,
the
rules
shall
require
the
board
8
to
consider
the
use
of
any
12-month
period
beginning
no
later
9
than
the
date
on
which
a
proposed
rate
change
is
expected
to
10
take
effect
to
determine
just
and
reasonable
rates.
11
Current
law
requires
the
board
to
specify
ratemaking
12
principles
in
advance
whenever
a
rate-regulated
public
utility
13
files
an
application
to
significantly
alter
an
existing
14
electric
generating
facility.
The
bill
adds
the
repowering
of
15
an
alternate
energy
production
facility
to
upgrade
or
extend
16
the
useful
life
of
the
facility
to
the
list
of
significant
17
alterations
requiring
the
establishment
of
advanced
ratemaking
18
principles.
19
The
bill
creates
new
Code
section
476.59,
relating
to
20
emerging
energy
technologies.
The
bill
defines
“emerging
21
energy
technology”
to
include
but
not
be
limited
to
an
energy
22
storage
facility,
electric
grid
protection
system,
electric
23
grid
management
system,
cyber
security
infrastructure,
electric
24
vehicle
infrastructure,
or
other
technologies
identified
25
by
the
board.
The
bill
provides
that
it
is
the
general
26
assembly’s
intent
to
attract
the
development
of
emerging
energy
27
technologies
within
the
state
to
ensure
reliable
electric
28
service
and
encourage
the
development
of
the
state’s
future
29
electric
energy
supply
and
the
protection
of
the
electric
grid
30
from
cyber
and
physical
threats.
The
bill
further
elaborates
31
on
the
general
assembly’s
intent
with
respect
to
emerging
32
energy
technologies.
33
New
Code
section
476.59
requires
the
board
to
specify
in
34
advance
the
ratemaking
principles
that
will
apply
whenever
a
35
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_____
rate-regulated
public
utility
requests
advanced
ratemaking
1
principles
for
the
construction,
investment,
or
implementation
2
of
an
emerging
energy
technology
and
the
costs
of
such
3
technology
are
included
in
rates.
The
board
shall
not
be
4
limited
to
traditional
ratemaking
principles
or
cost
recovery
5
mechanisms
in
determining
such
ratemaking
principles.
In
6
determining
the
applicable
ratemaking
principles,
the
board
7
shall
find
that
the
utility
has
demonstrated
that
the
proposed
8
emerging
energy
technology
is
reasonable
and
that
such
9
technology
is
reasonable
when
compared
to
any
other
reasonable
10
alternatives.
The
applicable
ratemaking
principles
shall
be
11
determined
in
a
contested
case
proceeding
and
shall
be
issued
12
prior
to
the
construction,
investment,
or
implementation
of
13
the
emerging
energy
technology.
Following
the
issuance
of
14
the
order,
the
utility
may
proceed
with
the
construction,
15
investment,
or
implementation
of
the
emerging
energy
16
technology.
The
applicable
ratemaking
principles
shall
be
17
binding
with
respect
to
the
specific
emerging
energy
technology
18
in
subsequent
rate
proceedings.
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