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Text: SSB00256                          Text: SSB00258
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Senate Study Bill 257

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 364.2, subsection 4, paragraphs a and
  1  2 b, Code 1995, are amended to read as follows:
  1  3    a.  A city may grant to any person a franchise to erect,
  1  4 maintain, and operate plants and systems for electric light
  1  5 and power, heating, telephone, telegraph, cable television,
  1  6 district telegraph and alarm, motor bus, trolley bus, street
  1  7 railway or other public transit, waterworks, or gasworks,
  1  8 within the city for a term of not more than twenty-five years.
  1  9 The franchise may be granted, amended, extended, or renewed
  1 10 only by an ordinance, but no exclusive franchise shall be
  1 11 granted, amended, extended, or renewed.  A city may amend a
  1 12 granted franchise to include an area annexed into the city by
  1 13 ordinance without an election under paragraph "b".
  1 14    b.  No such An ordinance other than an ordinance under
  1 15 paragraph "a" shall not become effective unless approved at an
  1 16 election.  The proposal may be submitted by the council on its
  1 17 own motion to the voters at any city election.  Upon receipt
  1 18 of a valid petition as defined in section 362.4 requesting
  1 19 that a proposal be submitted to the voters, the council shall
  1 20 submit the proposal at the next regular city election or at a
  1 21 special election called for that purpose before the next
  1 22 regular city election.  If a majority of those voting approves
  1 23 approve the proposal the city may proceed as proposed.  The
  1 24 complete text of the ordinance shall be included on the
  1 25 ballot, if paper ballots are used.  If an electronic voting
  1 26 system or voting machine is used, the proposal shall be stated
  1 27 on the ballot and the full text of the ordinance posted for
  1 28 the voters pursuant to section 52.25.  All absentee voters
  1 29 shall receive the full text of the ordinance.
  1 30    Sec. 2.  Section 476.26, Code 1995, is amended to read as
  1 31 follows:
  1 32    476.26  EFFECT OF INCORPORATION, ANNEXATION OR
  1 33 CONSOLIDATION.
  1 34    The Except as provided in section 476.27, the inclusion by
  1 35 incorporation, consolidation, or annexation of any facilities
  2  1 or service area of an electric utility within the boundaries
  2  2 of any city shall not by such inclusion impair or affect in
  2  3 any respect the rights of the electric utility to continue to
  2  4 provide electric utility service and to extend service to
  2  5 prospective customers in accordance with the provisions of
  2  6 this division.
  2  7    Sec. 3.  NEW SECTION.  476.27  CHANGE OF SERVICE BOUNDARIES
  2  8 &endash; ANNEXED AREAS.
  2  9    1.  The boundary of an exclusive service area of an
  2 10 electric utility may be modified if a city which owns and
  2 11 operates an electric utility and provides retail electric
  2 12 service to the public annexes area beyond the exclusive
  2 13 services area of its city electric utility after January 1,
  2 14 1976, and the ordinance providing for the annexation provides
  2 15 that the annexing city has developed a plan and has
  2 16 established a definite policy to provide city services to the
  2 17 area to be annexed.  The city electric utility may petition
  2 18 the board to change the exclusive service area of the city
  2 19 utility to include the annexed area.  If, upon notice and
  2 20 after hearing, the board decides that it is in the public
  2 21 interest for the city electric utility to provide service to
  2 22 the annexed area, it shall order the exclusive service area of
  2 23 the city electric utility to be modified to include the
  2 24 annexed area.  The city electric utility shall have the right
  2 25 to provide service in the annexed area.  The board order is
  2 26 enforceable in court pending an appeal of that order.  A
  2 27 person appealing a court order enforcing a board order issued
  2 28 under this section shall not be entitled to a stay of the
  2 29 court order pending appeal.
  2 30    2.  For purposes of this section, in determining public
  2 31 interest, the board shall consider any relevant factors,
  2 32 including, but not limited to, the following:
  2 33    a.  Preference of owners, occupiers, and consumers in the
  2 34 annexed area.
  2 35    b.  Ability of the electric utility to serve the annexed
  3  1 area.
  3  2    c.  Other utility services to be supplied in the annexed
  3  3 area.
  3  4    d.  Proximity and capability of the service repair
  3  5 facilities of the electric suppliers involved.
  3  6    e.  Appropriateness of utility facilities considering the
  3  7 type of facilities, age of facilities, and needs of customers.
  3  8    f.  Preference of local government officials.
  3  9    3.  If a modification of an exclusive service area is
  3 10 ordered by the board, all of the electric utility property of
  3 11 the electric utility which provided retail electric service to
  3 12 the annexed service area shall be acquired at a reasonable
  3 13 price which may include a percentage of the lost marginal
  3 14 profits from the newly assigned service area for a period not
  3 15 to exceed five years.  If the parties do not agree on the
  3 16 amount the acquiring electricity supplier is to pay, the board
  3 17 shall determine the amount and order its payment.  
  3 18                           EXPLANATION
  3 19    This bill authorizes the modification of boundaries of
  3 20 exclusive city electric utility service areas in order to
  3 21 include annexed areas of a city.  The bill provides that an
  3 22 exclusive service area may be modified if a city which
  3 23 provides retail electric service to the public annexes area
  3 24 after January 1, 1976, and the annexing ordinance provids that
  3 25 the city intends to provide city services to the annexed area.
  3 26 The city electric utility may petition the county board of
  3 27 supervisors to include the annexed area in the city utility's
  3 28 service area.  The board must provide notice and a public
  3 29 hearing and may modify the boundary to include the annexed
  3 30 area if it is in the public interest.
  3 31    The bill lists several factors for the board to consider in
  3 32 order to determine public interest.
  3 33    The bill allows for the city electric utility to acquire
  3 34 the property of the former electric utility at a reasonable
  3 35 price.  If the parties cannot agree on an amount, the board is
  4  1 required to determine the amount and order payment.  
  4  2 LSB 2275SC 76
  4  3 js/cf/24
     

Text: SSB00256                          Text: SSB00258
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