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House File 2331

Partial Bill History

Bill Text

PAG LIN
  1  1                                        HOUSE FILE 2331
  1  2 
  1  3 
  1  4                             AN ACT
  1  5 RELATING TO UTILITY COST REVIEWS ASSOCIATED WITH A RATE-
  1  6    REGULATED PUBLIC UTILITY'S PROCUREMENT OF NATURAL GAS 
  1  7    OR FUEL FOR USE IN GENERATING ELECTRICITY.
  1  8 
  1  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 10 
  1 11    Section 1.  Section 476.6, subsections 15 and 16, Code
  1 12 1997, are amended to read as follows:
  1 13    15.  NATURAL GAS SUPPLY AND COST REVIEW.  The board shall
  1 14 periodically, but not less than annually, conduct a proceeding
  1 15 for the purpose of evaluating the reasonableness and prudence
  1 16 of a rate-regulated public utility's natural gas procurement
  1 17 and contracting practices.  The natural gas supply and cost
  1 18 review shall be conducted as a contested case pursuant to
  1 19 chapter 17A.
  1 20    Under procedures established by the board, each rate-
  1 21 regulated public utility furnishing gas shall periodically
  1 22 file a complete natural gas procurement plan describing the
  1 23 expected sources and volumes of its gas supply and changes in
  1 24 the cost of gas anticipated over a future twelve-month period
  1 25 specified by the board.  The plan shall describe all major
  1 26 contracts and gas supply arrangements entered into by the
  1 27 utility for obtaining gas during the specified twelve-month
  1 28 period.  The description of the major contracts and
  1 29 arrangements shall include the price of gas, the duration of
  1 30 the contract or arrangement, and an explanation or description
  1 31 of any other term or provision as required by the board.  The
  1 32 plan shall also include the utility's evaluation of the
  1 33 reasonableness and prudence of its decisions to obtain gas in
  1 34 the manner described in the plan, an explanation of the legal
  1 35 and regulatory actions taken by the utility to minimize the
  2  1 cost of gas purchased by the utility, and such other
  2  2 information as the board may require.  The utilities shall
  2  3 file information as the board deems appropriate.
  2  4    During the natural gas supply and cost review, the board
  2  5 shall evaluate the reasonableness and prudence of the gas
  2  6 procurement plan.  In evaluating the gas procurement plan, the
  2  7 board shall consider the volume, cost, and reliability of the
  2  8 major alternative gas supplies available to the utility; the
  2  9 cost of alternative fuels available to the utility's
  2 10 customers; the availability of gas in storage; the appropriate
  2 11 legal and regulatory actions which the utility could take to
  2 12 minimize the cost of purchased gas; the gas procurement
  2 13 practices of the utility; and other relevant factors.  If a
  2 14 utility is not taking all reasonable actions to minimize its
  2 15 purchase gas costs, consistent with assuring an adequate long-
  2 16 term supply of natural gas, the board shall not allow the
  2 17 utility to recover from its customers purchase gas costs in
  2 18 excess of those costs that would be incurred under reasonable
  2 19 and prudent policies and practices.
  2 20    16.  ANNUAL ELECTRIC ELECTRIC ENERGY SUPPLY AND COST
  2 21 REVIEW.  The board shall periodically conduct an annual a
  2 22 proceeding for the purpose of evaluating the reasonableness
  2 23 and prudence of a rate-regulated public utility's procurement
  2 24 and contracting practices related to the acquisition of fuel
  2 25 for use in generating electricity.  The evaluation may review
  2 26 the reasonableness and prudence of actions taken by a rate-
  2 27 regulated public utility to comply with the federal Clean Air
  2 28 Act Amendments of 1990, Pub. L. No. 101-549.  The proceeding
  2 29 shall be conducted as a contested case pursuant to chapter
  2 30 17A.  Under procedures established by the board, the utility
  2 31 shall file information as the board deems appropriate.  If a
  2 32 utility is not taking all reasonable actions to minimize its
  2 33 fuel and allowance transaction costs, the board shall not
  2 34 allow the utility to recover from its customers fuel and
  2 35 allowance transaction costs in excess of those costs that
  3  1 would be or would have been incurred under reasonable and
  3  2 prudent policies and practices.  
  3  3 
  3  4 
  3  5                                                             
  3  6                               RON J. CORBETT
  3  7                               Speaker of the House
  3  8 
  3  9 
  3 10                                                             
  3 11                               MARY E. KRAMER
  3 12                               President of the Senate
  3 13 
  3 14    I hereby certify that this bill originated in the House and
  3 15 is known as House File 2331, Seventy-seventh General Assembly.
  3 16 
  3 17 
  3 18                                                             
  3 19                               ELIZABETH ISAACSON
  3 20                               Chief Clerk of the House
  3 21 Approved                , 1998
  3 22 
  3 23 
  3 24                         
  3 25 TERRY E. BRANSTAD
  3 26 Governor
     
Text: HF02330                           Text: HF02332
Text: HF02300 - HF02399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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