Text: HF02446 Text: HF02448 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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PAG LIN 1 1 Section 1. Section 476.1, unnumbered paragraph 7, Code 1 2 1995, is amended to read as follows: 1 3 The jurisdiction of the board under this chapter shall 1 4 includeprogramsefforts designed to promote the use of energy 1 5 efficiency strategies by rate or service-regulated gas and 1 6 electric utilities.These programs shall be cost effective.1 7The board may initiate these programs as pilot projects to1 8accumulate sufficient data to determine if the programs meet1 9the requirements of this paragraph.Energy efficiency 1 10 strategies shall be designed to assure the lowering of overall 1 11 costs of energy investments within this state, to increase the 1 12 economic productivity of energy investments in this state, to 1 13 enhance employment retention and creation resulting from 1 14 energy investments within this state, and to reduce adverse 1 15 environmental impacts associated with energy production and 1 16 energy use within this state. 1 17 Sec. 2. Section 476.1A, subsections 5 and 6, Code 1995, 1 18 are amended to read as follows: 1 19 5. Assessment of fees for the support of the Iowa energy 1 20 center created in section 266.39C and the center for global 1 21warmingand regional environmental research established by the 1 22 state board of regents. 1 23 6. Filing energy efficiency plans and energy efficiency 1 24 results with the board. The energy efficiency plans as a 1 25 whole shall be cost-effective. The board may permit these 1 26 utilities to file joint plans. 1 27 Sec. 3. Section 476.1A, unnumbered paragraph 2, Code 1995, 1 28 is amended to read as follows: 1 29 The board may waive all or part of the energy efficiency 1 30 filing and review requirements for electric cooperative 1 31 corporations and associations and electric public utilities 1 32 which demonstrate superior results with existing energy 1 33 efficiencyprogramsefforts. 1 34 Sec. 4. Section 476.1B, subsection 1, paragraphs k and l, 1 35 Code 1995, are amended to read as follows: 2 1 k. Assessment of fees for the support of the Iowa energy 2 2 center created in section 266.39C and theglobal warming2 3 center for global and regional environmental research created 2 4 by the state board of regents. 2 5 l. Filing energy efficiency plans and energy efficiency 2 6 results with the board. The energy efficiency plans as a 2 7 whole shall be cost-effective. The board may permit these 2 8 utilities to file joint plans. 2 9 Sec. 5. Section 476.1B, subsection 2, Code 1995, is 2 10 amended to read as follows: 2 11 2. The board may waive all or part of the energy 2 12 efficiency filing and review requirements for municipally 2 13 owned utilities which demonstrate superior results with 2 14 existing energy efficiencyprogramsefforts. 2 15 Sec. 6. Section 476.1C, subsection 1, unnumbered paragraph 2 16 2, Code 1995, is amended to read as follows: 2 17 Gas public utilities having fewer than two thousand 2 18 customers shall be subject to the assessment of fees for the 2 19 support of the Iowa energy center created in section 266.39C 2 20 and theglobal warmingcenter for global and regional 2 21 environmental research created by the state board of regents 2 22 and shall file energy efficiency plans and energy efficiency 2 23 results with the board. The energy efficiency plans as a 2 24 whole shall be cost-effective. The board may waive all or 2 25 part of the energy efficiency filing requirements if the gas 2 26 utility demonstrates superior results with existing energy 2 27 efficiencyprogramsefforts. 2 28 Sec. 7. Section 476.2, subsections 5, 6, and 7, Code 1995, 2 29 are amended by striking the subsections. 2 30 Sec. 8. Section 476.6, subsection 17, Code 1995, is 2 31 amended by striking the subsection and inserting in lieu 2 32 thereof the following: 2 33 17. ENERGY EFFICIENCY PLANS. Electric and gas public 2 34 utilities shall offer energy efficiency programs to their 2 35 customers through energy efficiency plans. An energy 3 1 efficiency plan as a whole shall be cost-effective. Energy 3 2 efficiency programs for qualified low-income persons and for 3 3 tree planting programs need not be cost-effective and shall 3 4 not be considered in determining cost-effectiveness of plans 3 5 as a whole. The energy efficiency programs in the plans may 3 6 be provided by the utility or by a contractor or agent of the 3 7 utility. 3 8 Sec. 9. Section 476.6, subsection 19, paragraphs a through 3 9 f, Code 1995, are amended by striking the paragraphs and 3 10 inserting in lieu thereof the following: 3 11 a. Rate-regulated gas and electric utilities shall file 3 12 energy efficiency plans with the board. An energy efficiency 3 13 plan and budget shall include a range of programs, tailored to 3 14 the needs of all customer classes, including residential, 3 15 commercial, and industrial customers, for energy efficiency 3 16 opportunities. The plans shall include programs for qualified 3 17 low-income persons. 3 18 b. An energy efficiency plan shall assess potential energy 3 19 and capacity savings available from actual and projected 3 20 customer usage by applying commercially available technology 3 21 and improved operating practices to energy-using equipment and 3 22 buildings. The plan shall include economically achievable 3 23 programs designed to attain these potential energy and 3 24 capacity savings. 3 25 c. The board shall conduct contested case proceedings for 3 26 review of energy efficiency plans and budgets filed by rate- 3 27 regulated gas or electric utilities. The board may approve, 3 28 reject, or modify the plans and budgets. Notwithstanding the 3 29 provisions of section 17A.19, subsection 5, in an application 3 30 for judicial review of the board's decision concerning a 3 31 utility's energy efficiency plan or budget, the reviewing 3 32 court shall not order a stay. Whenever a request to modify an 3 33 approved plan or budget is filed subsequently by the office of 3 34 consumer advocate or a rate-regulated gas or electric utility, 3 35 the board shall promptly initiate a formal proceeding if the 4 1 board determines that any reasonable ground exists for 4 2 investigating the request. The formal proceeding may be 4 3 initiated at any time by the board on its own motion. 4 4 Implementation of board approved plans or budgets shall be 4 5 considered continuous in nature and shall be subject to 4 6 investigation at any time by the board or the office of the 4 7 consumer advocate. 4 8 d. Notice to customers of a contested case proceeding for 4 9 review of energy efficiency plans and budgets shall be in a 4 10 manner prescribed by the board. 4 11 e. A gas or electric rate-regulated public utility may 4 12 recover, through an automatic adjustment mechanism filed 4 13 pursuant to subsection 11, over a period not to exceed the 4 14 term of the plan, the costs of an energy efficiency plan 4 15 approved by the board, including amounts for a plan approved 4 16 prior to July 1, 1996, in a contested case proceeding 4 17 conducted pursuant to paragraph "c". The board shall 4 18 periodically conduct a contested case proceeding to evaluate 4 19 the reasonableness and prudence of the utility's 4 20 implementation of an approved energy efficiency plan and 4 21 budget. If a utility is not taking all reasonable actions to 4 22 cost-effectively implement an approved energy efficiency plan, 4 23 the board shall not allow the utility to recover from 4 24 customers costs in excess of those costs that would be 4 25 incurred under reasonable and prudent implementation and shall 4 26 not allow the utility to recover future costs at a level other 4 27 than what the board determines to be reasonable and prudent. 4 28 If the result of a contested case proceeding is a judgment 4 29 against a utility, that utility's future level of cost 4 30 recovery shall be reduced by the amount by which the programs 4 31 were found to be imprudently conducted. The utility shall not 4 32 represent energy efficiency in customer billings as a separate 4 33 cost or expense unless the board otherwise approves. 4 34 Sec. 10. Section 476.10A, Code 1995, is amended to read as 4 35 follows: 5 1 476.10A FUNDING FOR IOWA ENERGY CENTER ANDGLOBAL WARMING5 2 CENTER FOR GLOBAL AND REGIONAL ENVIRONMENTAL RESEARCH. 5 3 The board shall direct all gas and electric utilities to 5 4 remit to the treasurer of state one-tenth of one percent of 5 5 the total gross operating revenues during the last calendar 5 6 year derived from their intrastate public utility operations. 5 7 The board shall by rule provide a schedule for remittances 5 8 which shall require that the first remittance be made not 5 9 before July 1, 1991. The amounts collected pursuant to this 5 10 section shall be in addition to the amounts permitted to be 5 11 assessed pursuant to section 476.10. The board shall allow 5 12 inclusion of these amounts in the budgets approved by the 5 13 board pursuant to section 476.6, subsection 19, paragraph "a". 5 14 Eighty-five percent of the remittances collected pursuant to 5 15 this section is appropriated to the Iowa energy center created 5 16 in section 266.39C. Fifteen percent of the remittances 5 17 collected pursuant to this section is appropriated to the 5 18 center for globalwarmingand regional environmental research 5 19 established by the state board of regents. 5 20 Notwithstanding section 8.33, any unexpended moneys 5 21 remitted to the treasurer of state under this section shall be 5 22 retained for the purposes designated. Notwithstanding section 5 23 12C.7, subsection 2, interest or earnings on investments or 5 24 time deposits of the moneys remitted under this section shall 5 25 be retained and used for the purposes designated. 5 26 The Iowa energy center and the center for global and 5 27 regional environmental research shall each provide a written 5 28 annual report to the utilities board which describes each 5 29 center's activities and the results that each center has 5 30 accomplished. Each report shall include an explanation of 5 31 initiatives and projects of importance to the state of Iowa. 5 32 Sec. 11. Section 476.83, Code 1995, is amended by striking 5 33 the section and inserting in lieu thereof the following: 5 34 476.83 COMPLAINTS. 5 35 Any person may file a written complaint with the board 6 1 requesting that the board determine compliance by a rate- 6 2 regulated gas or electric public utility with the provisions 6 3 of section 476.78, 476.79, or 476.80, or any validly adopted 6 4 rules to implement these sections. Upon the filing of a 6 5 complaint, the board may promptly initiate a formal complaint 6 6 proceeding and give notice of the proceeding and the 6 7 opportunity for hearing. The formal complaint proceeding may 6 8 be initiated at any time by the board on its own motion. The 6 9 board shall render a decision in the proceeding within ninety 6 10 days after the date the written complaint was filed, unless a 6 11 longer period of time is requested by the complainant. 6 12 Sec. 12. Section 476A.6, subsections 4 and 5, Code 1995, 6 13 are amended by striking the subsections and inserting in lieu 6 14 thereof the following: 6 15 4. The applicant, if a public utility as defined in 6 16 section 476.1, has in effect an energy efficiency plan 6 17 designed to reduce peak loads and to increase efficiency of 6 18 use of energy, and the facility in the application is 6 19 necessary notwithstanding the existence of the energy 6 20 efficiency plan. As used in this subsection, "energy 6 21 efficiency plan" includes at a minimum, cost-effective energy 6 22 efficiency services and programs, including cost-effective 6 23 load management and interruptible service programs. 6 24 5. The applicant, if a public utility as defined in 6 25 section 476.1, shall demonstrate to the board that the utility 6 26 has considered sources for long-term electric supply from 6 27 either purchase of electricity or investment in facilities 6 28 owned by other persons, including consideration of the 6 29 following: 6 30 a. Wheeling agreements and other energy or capacity- 6 31 sharing agreements, where cost-effective, with other sources 6 32 that have available energy or capacity. 6 33 b. Establishment of renewable energy programs or purchase 6 34 of electricity from renewable energy suppliers. 6 35 Sec. 13. Section 476.65, Code 1995, is repealed. 7 1 EXPLANATION 7 2 This bill makes several changes regarding energy efficiency 7 3 programs and requirements. It changes "energy efficiency 7 4 programs" to "energy efficiency efforts", and requires that 7 5 the energy efficiency plans submitted by rural electric 7 6 cooperatives, municipal utilities, and certain gas utilities 7 7 be cost-effective, as a whole, except for low-income programs 7 8 and tree planting programs. The bill requires that energy 7 9 efficiency strategies be designed to enhance the economy of 7 10 the state and reduce adverse environmental impacts. 7 11 The bill strikes the requirement that an electric rate- 7 12 regulated utility expend at least two percent and a gas rate- 7 13 regulated utility expend at least one and one-half percent of 7 14 gross operating revenues on implementation of the energy 7 15 efficiency plan and budget, that the energy efficiency plan 7 16 include specified programs and services, that a utility can be 7 17 assessed a reward or a penalty based on energy efficiency 7 18 performance, that a legislative interim committee be 7 19 established in 1996 to review energy efficiency programs. 7 20 Instead, the bill requires that rate-regulated gas and 7 21 electric utilities file an energy efficiency plan and budget 7 22 with the board. The energy efficiency plan must include a 7 23 range of programs tailored to the needs of all customer 7 24 classes, and must include programs for low-income persons. 7 25 The plan must assess potential energy and capacity savings by 7 26 applying commercially available technology and improved 7 27 operating practices to energy-using buildings and equipment 7 28 and must include economically achievable programs designed to 7 29 attain potential energy and capacity savings. 7 30 The bill allows a gas or electric rate-regulated utility to 7 31 automatically adjust rates over the time period of the energy 7 32 efficiency plan if the plan was approved by the Iowa utilities 7 33 board in a contested case proceeding and the schedule showing 7 34 the automatic adjustment of rates and charges is first filed 7 35 with the board. The bill provides that if a utility is not 8 1 taking all reasonable actions to cost-effectively implement an 8 2 approved energy efficiency plan, the board will not allow the 8 3 recovery of costs in excess of those that would have been 8 4 incurred under reasonable and prudent implementation and 8 5 prohibits a utility from recovering future costs at a level 8 6 other than what the board determines to be reasonable and 8 7 prudent. If a contested case results in a judgment against a 8 8 utility, the utility's future level of cost recovery is 8 9 reduced by the amount by which the programs were found to be 8 10 imprudently conducted. The bill provides that a utility 8 11 cannot list energy efficiency as a separate cost or expense in 8 12 customer billings unless the board otherwise approves. 8 13 The bill requires the Iowa energy center and the center for 8 14 global and regional environmental research to provide an 8 15 annual report to the Iowa utilities board which describes 8 16 their operations and the results that have been accomplished. 8 17 The bill strikes a requirement that a utility seeking a 8 18 certificate allowing construction of a new generating plant 8 19 have a comprehensive energy management program and instead 8 20 requires that an energy efficiency plan be in effect in 8 21 addition to the requirement that a utility consider sources 8 22 for long-term electricity supply from either purchase of 8 23 electricity or investment in facilities owned by another 8 24 person. The bill requires that the utility consider wheeling 8 25 agreements and other energy or capacity-sharing agreements and 8 26 the establishment of an alternate energy program or the 8 27 purchase of alternate energy. 8 28 The bill amends provisions relating to cross subsidization. 8 29 Finally, the bill repeals section 476.65 relating to energy 8 30 audits. 8 31 LSB 4299HV 76 8 32 js/jj/8
Text: HF02446 Text: HF02448 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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