1996 SUMMARY OF LEGISLATION

ENERGY AND PUBLIC UTILITIES

ENERGY AND PUBLIC UTILITIES LEGISLATION

SENATE FILE 2370 - Energy Efficiency and Public Utility Regulation (full text of bill)

BY COMMITTEE ON COMMERCE. This Act repeals existing energy efficiency requirements for rate-regulated gas and electric utilities under Chapter 476. The Act strikes requirements that an electric rate-regulated utility expend at least 2 percent and a gas rate-regulated utility expend at least 1.5 percent of gross operating revenues on implementation of the energy efficiency plan and budget, that the energy efficiency plan include specific programs and services, that a utility be assessed a reward or penalty based on energy efficiency performance, and that a legislative interim committee be established in 1996 to review energy efficiency programs.
Instead the Act provides that gas and electric utilities required to be rate-regulated must file energy efficiency plans with the Iowa Utilities Board. The plan must include a range of programs, tailored to meet the needs of all customer classes, and must include programs for qualified low-income persons. A utility is required to assess potential energy and capacity savings available from actual and projected customer usage and submit this assessment to the board. The board is to consult with the Energy Bureau of the Division of Energy and Geological Resources of the Department of Natural Resources to develop specific capacity and energy savings performance standards for each utility. The utility must then submit an energy efficiency plan designed to attain these energy and capacity performance standards.
The Act allows a gas or electric rate-regulated utility to automatically adjust rates to reflect the costs of an energy efficiency plan approved by the board and provides for periodic review by the board.
The Act requires each rate-regulated gas and electric utility operating within the state to maintain a principal office for Iowa operations within the state and requires the Iowa Utilities Board to report to the General Assembly by January 1, 1998, on energy efficiency planning efforts. These requirements take effect May 20, 1996.
The Act requires the Iowa Energy Center and the Center for Global and Regional Environmental Research to provide an annual report to the Iowa Utilities Board that describes their operations and the results that have been accomplished.
An Alternate Energy Revolving Loan Program is created in the Act to provide loans in an amount of up to $250,000 for the construction of alternate energy production facilities and small hydro facilities within the state. The loan program is administered by the Iowa Energy Center. All gas and electric utilities required to be rate-regulated must remit by July 1 of 1996, 1997 and 1998, 0.085 percent of the total gross operating revenues during the preceding calendar year, derived from the public utility's intrastate operations to fund the Alternate Energy Revolving Loan Program. The provision creating the Revolving Loan Program takes effect May 20, 1996.
The Act provides that except for contracts existing as of July 1, 1996, a rate-regulated gas or electric public utility or its affiliates cannot use vehicles, service tools and instruments, or employees, the costs, salaries or benefits of which are recoverable in the regulated rates for electric service or gas service; to install, service or repair residential or commercial gas or electric heating, ventilating or air conditioning systems, or interior lighting systems and fixtures; or to sell at retail heating, ventilating, air conditioning, or interior lighting equipment. The Act requires the Iowa Utilities Board to render a decision regarding a cross-subsidization complaint within 90 days from when the complaint was filed.
Finally, the Act allows a municipal utility to enter into an agreement with a public agency that has received a U.S. Department of Energy grant to jointly finance one wind turbine alternate energy production facility of not more than 20 megawatts, and to provide the municipal utility and other public or private agencies with electricity from the facility.

RELATED LEGISLATION

SENATE FILE 2074 - City Hospital or Health Care Facility Trustees -- Terms (Complete summary under LOCAL GOVERNMENT.)

This Act relates to the dates on which city hospital or health care facility trustees take and depart from office.

SENATE FILE 2278 - Natural Resource Commission -- Removal of Political Activity Ban (Complete summary under NATURAL RESOURCES & OUTDOOR RECREATION.)

This Act repeals the prohibition on political activity by a member, officer or employee of the Natural Resource Commission of the Department of Natural Resources.

HOUSE FILE 334 - Instructional Support Program -- Hearings and Elections (Complete summary under EDUCATION.)

This Act strikes a current Code requirement that an election held to determine school district participation in the Instructional Support Program must be held not later than December 1 of the base year.

HOUSE FILE 2416 - Appropriations -- Administration and Regulation (Complete summary under APPROPRIATIONS.)

This Act relates to and appropriates $84.1 million to various state departments, agencies, funds, and certain other interstate and national entities for the fiscal year beginning July 1, 1996, and ending June 30, 1997.

Iowa General Assembly

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Last update: Mon August 26, 1996
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