Text: SF02245 Text: SF02247 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.6, subsections 15 and 16, Code 1 2 1997, are amended to read as follows: 1 3 15. NATURAL GAS SUPPLY AND COST REVIEW. The board shall 1 4 periodically, but not less than annually,conduct a proceeding 1 5 for the purpose of evaluating the reasonableness and prudence 1 6 of a rate-regulated public utility's natural gas procurement 1 7 and contracting practices. The natural gas supply and cost 1 8 review shall be conducted as a contested case pursuant to 1 9 chapter 17A. 1 10 Under procedures established by the board, each rate- 1 11 regulated public utility furnishing gas shall periodically 1 12 file a complete natural gas procurement plan describing the 1 13 expected sources and volumes of its gas supply and changes in 1 14 the cost of gas anticipated over a future twelve-month period 1 15 specified by the board.The plan shall describe all major1 16contracts and gas supply arrangements entered into by the1 17utility for obtaining gas during the specified twelve-month1 18period. The description of the major contracts and1 19arrangements shall include the price of gas, the duration of1 20the contract or arrangement, and an explanation or description1 21of any other term or provision as required by the board. The1 22plan shall also include the utility's evaluation of the1 23reasonableness and prudence of its decisions to obtain gas in1 24the manner described in the plan, an explanation of the legal1 25and regulatory actions taken by the utility to minimize the1 26cost of gas purchased by the utility, and such other1 27information as the board may require.The utilities shall 1 28 file information as the board deems appropriate. 1 29 During the natural gas supply and cost review, the board 1 30 shall evaluate the reasonableness and prudence of the gas 1 31 procurement plan.In evaluating the gas procurement plan, the1 32board shall consider the volume, cost, and reliability of the1 33major alternative gas supplies available to the utility; the1 34cost of alternative fuels available to the utility's1 35customers; the availability of gas in storage; the appropriate2 1legal and regulatory actions which the utility could take to2 2minimize the cost of purchased gas; the gas procurement2 3practices of the utility; and other relevant factors.If a 2 4 utility is not taking all reasonable actions to minimize its 2 5 purchase gas costs, consistent with assuring an adequate long- 2 6 term supply of natural gas, the board shall not allow the 2 7 utility to recover from its customers purchase gas costs in 2 8 excess of those costs that would be incurred under reasonable 2 9 and prudent policies and practices. 2 10 16.ANNUAL ELECTRICELECTRIC ENERGY SUPPLY AND COST 2 11 REVIEW. The board shall periodically conductan annuala 2 12 proceeding for the purpose of evaluating the reasonableness 2 13 and prudence of a rate-regulated public utility's procurement 2 14 and contracting practices related to the acquisition of fuel 2 15 for use in generating electricity. The evaluation may review 2 16 the reasonableness and prudence of actions taken by a rate- 2 17 regulated public utility to comply with the federal Clean Air 2 18 Act Amendments of 1990, Pub. L. No. 101-549. The proceeding 2 19 shall be conducted as a contested case pursuant to chapter 2 20 17A. Under procedures established by the board, the utility 2 21 shall file information as the board deems appropriate. If a 2 22 utility is not taking all reasonable actions to minimize its 2 23 fuel and allowance transaction costs, the board shall not 2 24 allow the utility to recover from its customers fuel and 2 25 allowance transaction costs in excess of those costs that 2 26 would be or would have been incurred under reasonable and 2 27 prudent policies and practices. 2 28 EXPLANATION 2 29 This bill amends provisions relating to the natural gas 2 30 supply and cost review, and the electric energy supply and 2 31 cost review of rate-regulated public utilities. The bill 2 32 strikes the requirement that a natural gas supply and cost 2 33 review be conducted at least annually. The bill also strikes 2 34 language requiring a gas public utility to include a 2 35 description of all major contracts and gas supply arrangements 3 1 entered into by the utility for obtaining gas during a 12- 3 2 month period as specified by the board in its natural gas 3 3 procurement plan. The bill strikes certain specific items the 3 4 board is to consider in evaluating the gas procurement plan 3 5 including the volume, cost, and reliability of the major 3 6 alternative gas supplies available to the utility; the cost of 3 7 alternative fuels available to the utility's customers; the 3 8 availability of gas in storage; the appropriate legal and 3 9 regulatory actions which the utility could take to minimize 3 10 the cost of purchased gas; the gas procurement practices of 3 11 the utility; and other relevant factors. The bill provides 3 12 that utilities shall file information as the board deems 3 13 appropriate regarding the evaluation of the gas procurement 3 14 plan. 3 15 The bill also provides that the utilities board is to 3 16 periodically, rather than annually, conduct a proceeding for 3 17 the purpose of evaluating the reasonableness and prudence of a 3 18 rate-regulated public utility's procurement and contracting 3 19 practices related to the acquisition of fuel for use in 3 20 generating electricity. 3 21 LSB 3265SV 77 3 22 mj/sc/14
Text: SF02245 Text: SF02247 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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