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House Journal: Page 1711: Wednesday, April 17, 1996

45   and at just and reasonable rates.
46     c.  If the parties fail to agree on the terms of a
47   contract required pursuant to this section, a party
48   may request that the board intervene.  The board shall
49   have sixty days from the date of the intervention
50   request to render a decision on the contract.

Page   7

 1     Sec. 20.  Section 476.43, subsections 2, 3, and 4,
 2   Code 1995, are amended by striking the subsections and
 3   inserting in lieu thereof the following:
 4     2.  The board shall establish a uniform competitive
 5   bidding process so that an electric utility shall
 6   acquire alternate energy at a just and economically
 7   based market rate.  An alternate energy contract shall
 8   require that the utility pay the competitive bid rate
 9   to the facility during the contract term.  The
10   kilowatt per hour competitive bid rate shall not be
11   less than the annual average rate of off-peak kilowatt
12   per hour rates and peak kilowatt per hour rates at
13   which an electric utility would have had to purchase
14   the power.  An electric utility may produce its own
15   alternate energy by constructing and operating an
16   alternate energy production facility or small hydro
17   facility if the facility is constructed and operated
18   as a separate affiliate entity.  However, the electric
19   utility shall participate in the competitive bidding
20   process using a third-party evaluator.  A bid from an
21   electric utility producing its own alternate energy
22   shall not take into account regulated industry-based
23   factors including, but not limited to, eminent domain
24   and transmission ownership in order to produce a lower
25   cost bid.
26     3.  Notwithstanding section 476.51, an electric
27   utility which fails to comply with the requirements of
28   subsection 1 or which obstructs the policy of this
29   state as stated in section 476.41 shall be subject to
30   a civil penalty, levied by the board, in an amount
31   that is equivalent to three times the total project
32   capital cost of the lowest bid filed with the board to
33   comply with the requirements of subsection 1.  Civil
34   penalties collected under this subsection shall be
35   forwarded to the treasurer of state to be credited to
36   the Iowa energy center.  Any moneys allocated to the
37   Iowa energy center pursuant to this subsection shall
38   be used solely for providing grants to nonprofit
39   agencies for alternate energy production.  These
40   penalties shall be excluded from the electric
41   utility's costs when determining the electric
42   utility's revenue requirement, and shall not be
43   included either directly or indirectly in the electric
44   utility's rates or charges to customers.

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 2)

© 1996 Cornell College and League of Women Voters of Iowa

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Last update: Thu Apr 18 13:30:03 CDT 1996
URL: /DOCS/GA/76GA/Session.2/HJournal/01700/01711.html
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