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House Amendment 3710

Amendment Text

PAG LIN
  1  1    Amend House File 370 as follows:
  1  2    #1.  Page 1, line 4, by inserting after the figure
  1  3 "476.43," the following:  "476.43A,".
  1  4    #2.  Page 1, line 11, by inserting after the figure
  1  5 "476.43," the following:  "476.43A,".
  1  6    #3.  Page 1, by inserting after line 11 the
  1  7 following:
  1  8    "Sec.    .  Section 476.42, subsection 1, Code
  1  9 1995, is amended by adding the following new
  1 10 unnumbered paragraph:
  1 11    NEW UNNUMBERED PARAGRAPH.  An alternate energy
  1 12 production facility does not include a methane-
  1 13 producing sanitary landfill."
  1 14    #4.  Page 1, by striking lines 14 through 28 and
  1 15 inserting the following:
  1 16    "Sec.    .  Section 476.43, Code 1995, is amended
  1 17 to read as follows:
  1 18    476.43  RATES FOR ALTERNATE ENERGY PRODUCTION
  1 19 FACILITIES METHANE-PRODUCING SANITARY LANDFILLS.
  1 20    1.  Subject to section 476.44, the The board shall
  1 21 require electric utilities to enter into long-term
  1 22 contracts to do the following:
  1 23    a.  Purchase or wheel electricity from alternate
  1 24 energy production facilities or small hydro facilities
  1 25 methane-producing sanitary landfills located in the
  1 26 utility's service area under the terms and conditions
  1 27 that the board finds are just and economically
  1 28 reasonable to the electric utilities' ratepayers, and
  1 29 are nondiscriminatory to alternate energy producers
  1 30 and small hydro producers and will further the policy
  1 31 stated in section 476.41 methane-producing sanitary
  1 32 landfills.
  1 33    b.  Provide for the availability of supplemental or
  1 34 backup power to alternate energy production facilities
  1 35 or small hydro facilities methane-producing sanitary
  1 36 landfills on a nondiscriminatory basis and at just and
  1 37 reasonable rates.
  1 38    2.  Upon application by the owner or operator of an
  1 39 alternate energy production facility or small hydro
  1 40 facility or any interested party, a methane-producing
  1 41 sanitary landfill the board shall establish for the
  1 42 affected public utility just and economically
  1 43 reasonable rates for electricity purchased under
  1 44 subsection 1, paragraph "a".  The rates shall be
  1 45 established at levels sufficient to stimulate the
  1 46 development of alternate energy production and small
  1 47 hydro facilities electricity generated from methane
  1 48 production in a sanitary landfill in Iowa and to
  1 49 encourage the continuation of existing capacity from
  1 50 those facilities landfills.
  2  1    3.  The board may adopt individual utility or
  2  2 uniform statewide facility rates.  The board shall
  2  3 consider the following factors in setting individual
  2  4 or uniform rates:
  2  5    a.  The estimated capital cost of the next
  2  6 generating plant, including related transmission
  2  7 facilities, to be placed in service by the electric
  2  8 utility serving the area.
  2  9    b.  The term of the contract between the electric
  2 10 utility and the seller.
  2 11    c.  A levelized annual carrying charge based upon
  2 12 the term of the contract and determined in a manner
  2 13 consistent with both the methods and the current
  2 14 interest or return requirements associated with the
  2 15 electric utility's new construction program.
  2 16    d.  The electric utility's annual energy costs,
  2 17 including current fuel costs, related operation and
  2 18 maintenance costs, and other energy-related costs
  2 19 considered appropriate by the board.
  2 20    e.  External factors, including but not limited to,
  2 21 environmental and economic factors.
  2 22    f.  Other relevant factors.
  2 23    g.  If the board adopts uniform statewide rates,
  2 24 the board shall use representative data in lieu of
  2 25 utility specific information in applying the factors
  2 26 listed in paragraphs "a" through "f".
  2 27    4.  In the case of a utility that purchases all or
  2 28 substantially all of its electricity requirements, the
  2 29 rates established under this section must be based on
  2 30 the electric utility's current purchased power costs.
  2 31    5.  In lieu of the other procedures provided by
  2 32 this section, an electric utility and an owner or
  2 33 operator of an alternate energy production facility or
  2 34 small hydro facility a methane-producing sanitary
  2 35 landfill may enter into a long-term contract in
  2 36 accordance with subsection 1 and may agree to rates
  2 37 for purchase and sale transactions.  A contract
  2 38 entered into under this subsection must be filed with
  2 39 the board in the manner provided for tariffs under
  2 40 section 476.4.
  2 41    6.  This section does not require an electric
  2 42 utility to construct additional facilities unless
  2 43 those facilities are paid for by the owner or operator
  2 44 of the affected alternate energy production facility
  2 45 or small hydro facility methane-producing sanitary
  2 46 landfill.
  2 47    7.  For purposes of this section, "methane-
  2 48 producing sanitary landfill" means any electric
  2 49 generating facility fueled by methane extracted from a
  2 50 sanitary landfill.
  3  1    Sec.    .  NEW SECTION.  476.43A  RATES FOR
  3  2 ALTERNATE ENERGY PRODUCTION FACILITIES OR SMALL HYDRO
  3  3 FACILITIES.
  3  4    1.  The board shall require electric utilities to
  3  5 enter into long-term contracts to purchase electric
  3  6 energy from alternate energy production facilities or
  3  7 small hydro facilities.
  3  8    2.  The rates for purchases under this section
  3  9 shall not exceed the incremental costs to the electric
  3 10 utility of alternative electric energy.  For purposes
  3 11 of this section "incremental cost" means the cost to
  3 12 the electric utility of the electric energy which, but
  3 13 for the purchase from the alternate energy production
  3 14 facility or small hydro facility, the electric utility
  3 15 would have generated or purchased from another source.
  3 16    3.  In the case of a utility that purchases all or
  3 17 substantially all of its electricity requirements, the
  3 18 rates established under this section must be based on
  3 19 the electric utility's current purchased power costs.
  3 20    4.  In lieu of the other procedures provided by
  3 21 this section, an electric utility and an owner or
  3 22 operator of an alternate energy production facility or
  3 23 small hydro facility may enter into a long-term
  3 24 contract in accordance with subsection 1 and may agree
  3 25 to rates for purchase and sale transactions.  A
  3 26 contract entered into under this subsection must be
  3 27 filed with the board in the manner provided for
  3 28 tariffs under section 476.4.
  3 29    5.  This section does not require an electric
  3 30 utility to construct additional facilities unless
  3 31 those facilities are paid for by the owner or operator
  3 32 of the affected alternate energy production facility
  3 33 or small hydro facility."
  3 34    #5.  Page 1, by striking lines 31 and 32 and
  3 35 inserting the following:
  3 36    "Sec.    .  Notwithstanding the provisions of this
  3 37 Act, the Iowa".
  3 38    #6.  By renumbering as necessary.  
  3 39 
  3 40 
  3 41                              
  3 42 McCOY of Polk
  3 43 HF 370.704 76
  3 44 js/sc

Text: H03709                            Text: H03711
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