Text: HF02529 Text: HF02531 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 476B.1 TITLE. 1 2 This chapter shall be known and may be cited as the 1 3 "Electric Choice and Competition Act". 1 4 Sec. 2. NEW SECTION. 476B.2 LEGISLATIVE FINDINGS. 1 5 The general assembly finds and declares all of the 1 6 following: 1 7 1. Electricity is essential and vital to the health and 1 8 well-being of all citizens of this state. 1 9 2. The citizens of the state are dependent upon the 1 10 availability of reliable, low-cost electricity, which is 1 11 essential to sustained economic development and the continued 1 12 quality of life now enjoyed by Iowans. 1 13 3. Advances in electric generation technology and federal 1 14 initiatives to introduce competition into the wholesale 1 15 electric market favor and compliment the introduction of 1 16 competition into the retail electric market in Iowa. 1 17 4. Restructuring the electric industry to provide greater 1 18 competition and more efficient regulation is a nationwide 1 19 trend, and Iowa must pursue restructuring and increased 1 20 consumer choice to introduce competitive incentives to provide 1 21 electric service at fair and reasonable prices to the 1 22 businesses and citizens of this state. 1 23 5. It is in the public interest to allow and encourage the 1 24 development of competitive markets for electric generation and 1 25 other electric services in both rural and urban Iowa because a 1 26 competitive market may be more effective than regulation in 1 27 determining the efficient price for these services and in 1 28 promoting efficiency in operations. 1 29 6. A competitive electric market holds the potential for 1 30 end-use consumers of electricity to have access to reliable 1 31 and safe competitive electric services at fair and reasonable 1 32 prices while providing for competitive choice, more effective 1 33 use of resources, and an improved quality and variety of 1 34 competitive electric services. 1 35 7. A competitive electric industry shall have adequate and 2 1 reasonable safeguards to protect the public interest. 2 2 Residential and small commercial consumer service safeguards 2 3 and protections shall be maintained or improved. 2 4 8. Encouraging the development of a competitive market can 2 5 be accomplished in a manner that protects the environment. 2 6 9. A competitive market encourages economic development by 2 7 permitting competitive markets to determine the most efficient 2 8 use of resources. 2 9 10. The needs of Iowa's low-income consumers of electric 2 10 services, including the need for economic energy efficiency 2 11 improvements and programs, can be met while restructuring the 2 12 electric industry. 2 13 11. Recognizing that the full costs of generation, fuel, 2 14 power, and energy owned or purchased by an incumbent provider 2 15 or consumer-owned utility, to the extent included in regulated 2 16 rates, have been determined to be just, reasonable, prudent, 2 17 and used and useful, incumbent providers and consumer-owned 2 18 utilities should be afforded an opportunity to prepare for the 2 19 transition from regulation to competition and afforded an 2 20 opportunity to recover a reasonable amount of the costs of the 2 21 transition. 2 22 12. Consumer-owned utilities can participate successfully 2 23 in a competitive electric environment by retaining their local 2 24 control over their own governance, including setting rates, 2 25 terms, and conditions for products and services. 2 26 13. Facilities and personnel needed to maintain the safety 2 27 of the electric supply, as well as all other competitive and 2 28 regulated electric services, must remain available and 2 29 operational. 2 30 14. The establishment of competitive electric markets 2 31 should be undertaken in a manner that mitigates any 2 32 detrimental effect on the safety and reliability of the 2 33 electric system and on utility employees. 2 34 15. Delivery services should remain regulated. In 2 35 recognition of their exclusive assigned service areas, 3 1 delivery service providers should have an obligation to extend 3 2 the delivery grid to all consumers within the assigned service 3 3 area. Standards of conduct for delivery service providers and 3 4 provisions regarding transactions between delivery service 3 5 providers and their affiliates shall be implemented. 3 6 16. Full and fair competition in the markets for 3 7 generation and electric services other than delivery service 3 8 should be encouraged and promoted. It is not the intent of 3 9 this chapter to displace applicable antitrust and unfair 3 10 competition laws and the enforcement of the same with respect 3 11 to competitive electric services or to weaken regulation with 3 12 respect to delivery services subject to the jurisdiction of 3 13 the Iowa utilities board. 3 14 Sec. 3. NEW SECTION. 476B.3 DEFINITIONS. 3 15 As used in this chapter, unless the context otherwise 3 16 requires: 3 17 1. "Affiliate" means a person, other than a municipal 3 18 utility or other political subdivision, that directly, or 3 19 indirectly, through one or more intermediaries, controls, is 3 20 controlled by, or is under common control with another person. 3 21 2. "Aggregation" means the process of organizing end-use 3 22 consumers into a group for the acquisition of competitive 3 23 electric services. 3 24 3. "Aggregator" means a person that organizes end-use 3 25 consumers into a group and arranges for the acquisition of 3 26 competitive electric services from a competitive electric 3 27 service provider without taking title to those services. 3 28 4. "Alliance" means a group of electric cooperatives or 3 29 their consumer-owned affiliates. 3 30 5. "Ancillary services" means those services that are 3 31 necessary to support the transmission of demand and energy 3 32 from generation to the point of usage while maintaining 3 33 reliable operation of the delivery system in accordance with 3 34 good operating practices. Ancillary services, as defined by 3 35 the federal energy regulatory commission as of the effective 4 1 date of this chapter, include all of the following: 4 2 a. Scheduling, system control, and dispatch. 4 3 b. Reactive supply and voltage control from generation 4 4 sources. 4 5 c. Regulation and frequency response. 4 6 d. Energy imbalance. 4 7 e. Operating reserve – spinning. 4 8 f. Operating reserve – supplemental. 4 9 6. "Assigned service area" means a geographic area 4 10 designated by the board within which a designated person has 4 11 the exclusive right to provide bundled electric services prior 4 12 to October 1, 2002, or unbundled delivery services on or after 4 13 October 1, 2002. 4 14 7. "Assignee" means a person, other than an incumbent 4 15 provider or grantee, to which an interest in intangible 4 16 transition property is assigned, sold, or transferred. 4 17 8. "Balancing" means the responsibility of a control area 4 18 operator to make necessary changes in the output of the 4 19 sources of generation under its control to maintain the 4 20 required voltage and frequency of the grid under its control. 4 21 9. "Basic energy service" means power supply services 4 22 provided by a consumer-owned utility to an end-use consumer 4 23 who has not chosen a competitive electric service provider or 4 24 is otherwise without a competitive electric service provider. 4 25 10. "Bilateral contract" means a contract between two 4 26 persons. 4 27 11. "Board" means the Iowa utilities board within the 4 28 department of commerce created in section 474.1. 4 29 12. "Board's website" means an electronic posting site 4 30 maintained or approved by the board. 4 31 13. "Bundled electric service" means combining generation, 4 32 transmission, distribution, and other electric services, and 4 33 pricing the combination as an undifferentiated package rather 4 34 than as individual services. 4 35 14. "Business unit" means a division or other economic 5 1 unit of a person and is considered to be an affiliate of other 5 2 business units of the person. 5 3 15. "Capacity" means a measurement of the electrical 5 4 output of a generating plant usually expressed in kilowatts or 5 5 megawatts. 5 6 16. "Comparable service" means regulated services provided 5 7 to any person on the same or functionally equivalent basis, 5 8 and under the same or functionally equivalent terms and 5 9 conditions, as the regulated services provided by a delivery 5 10 service provider to itself or its affiliates. 5 11 17. "Competitive electric services" means competitive 5 12 power supply services sold at retail in this state commencing 5 13 on or after October 1, 2002, in the assigned service areas of 5 14 delivery service providers. Electric metering services, 5 15 electric meter information gathering services, and electric 5 16 billing services sold at retail in the assigned service areas 5 17 of electric companies by competitive electric service 5 18 providers commencing on or after October 1, 2002, and other 5 19 services of electric companies determined by the board after 5 20 December 31, 2003, to be competitive pursuant to this chapter 5 21 are competitive electric services. Electric metering 5 22 services, electric meter information gathering services, and 5 23 electric billing services sold at retail in the assigned 5 24 service area of a consumer-owned utility by a competitive 5 25 electric service provider shall not be regulated by the board 5 26 or local governing body except as provided in this chapter. 5 27 Services provided pursuant to section 476B.8 are regulated 5 28 electric services and not competitive electric services. 5 29 18. "Competitive electric service provider" means a person 5 30 that provides or offers to provide competitive electric 5 31 services in this state and includes an aggregator. 5 32 19. "Competitive power supply services" means demand, 5 33 energy, and ancillary services sold at retail in this state, 5 34 excluding scheduling, system control, load profiling and 5 35 financial settlement when related to distribution, whether 6 1 subject to the regulation of the board or a local governing 6 2 body. 6 3 20. "Consumer-owned utility" means a municipal utility or 6 4 electric cooperative. 6 5 21. "Control" means the possession, direct or indirect, of 6 6 the power to direct or cause the direction of the management 6 7 and policies of a person through ownership, by contract, or 6 8 otherwise. 6 9 22. "Control area" means an electric delivery system or 6 10 combination of electric delivery systems to which a common 6 11 automatic control scheme is applied in order to do the 6 12 following: 6 13 a. Match, at all times, the sum of the power output of the 6 14 generators within the electric delivery systems and demand and 6 15 energy purchased from entities outside the electric delivery 6 16 systems with the load in the electric delivery systems. 6 17 b. Maintain, within the limits of good operating practice, 6 18 scheduled interchange with other control areas. 6 19 c. Maintain the frequency of the electric delivery systems 6 20 within reasonable limits in accordance with good operating 6 21 practices. 6 22 d. Arrange for, provide, or verify that sufficient 6 23 generating capacity or the right to sufficient generating 6 24 capacity is available to maintain operating reserves in 6 25 accordance with good operating practice. 6 26 23. "Control area operator" means a person operating a 6 27 control area. 6 28 24. "Delivery service" means the transportation of 6 29 electricity from one point on a delivery service provider's 6 30 system to another point on that system in this state. 6 31 Delivery service includes transmission service and 6 32 distribution service. 6 33 25. "Delivery service provider" means a person that 6 34 provides delivery service in this state but does not include a 6 35 licensed competitive electric service provider that purchases 7 1 delivery service from an electric company or consumer-owned 7 2 utility and resells the delivery service at retail to an end- 7 3 use consumer. A delivery service provider is deemed to be a 7 4 public utility for all purposes under the Code, except where 7 5 otherwise expressly provided to the contrary. 7 6 26. "Demand" means electric power measured in kilowatts or 7 7 megawatts. 7 8 27. "Distribution service" means that portion of delivery 7 9 service provided in this state that is not subject to the 7 10 exclusive jurisdiction of the federal energy regulatory 7 11 commission, or for consumer-owned utilities is not subject to 7 12 section 211 of the federal Power Act. If a provider of 7 13 distribution service is an electric company that is also a 7 14 control area operator, the control area operations which are 7 15 not subject to the exclusive jurisdiction of the federal 7 16 energy regulatory commission, if any, shall be considered to 7 17 be a part of distribution service and subject to the 7 18 jurisdiction of the board. 7 19 28. "Electric company" means a delivery service provider, 7 20 either on a bundled basis prior to October 1, 2002, or on an 7 21 unbundled basis on or after October 1, 2002, but does not 7 22 include a consumer-owned utility, municipal electric 7 23 cooperative association, or governmental subdivision. 7 24 29. "Electric cooperative" means a person formed or 7 25 organized as a cooperative under the laws of this state or 7 26 elsewhere, that engages in any of the following activities: 7 27 generation of electricity, transmission of electricity, 7 28 distribution of electricity, sale of electricity, control area 7 29 operator services, or performance of ancillary services as 7 30 designated by the federal energy regulatory commission. An 7 31 electric cooperative includes a consumer-owned affiliate of an 7 32 electric cooperative, an alliance, and an incorporated city 7 33 utility provider. 7 34 30. "Electric power agency" means a political subdivision 7 35 that acquires or finances electric facilities pursuant to 8 1 chapter 28E or 28F. 8 2 31. "Eligible rates" means those rates specified in an 8 3 application for a transitional funding order from which 8 4 instrument funding charges may be deducted and collected. 8 5 Eligible rates may include any of the following: bundled 8 6 electric rates, unbundled distribution service rates, other 8 7 unbundled rates, standard offer service rates, universal 8 8 service rates, transitional service rates, basic energy 8 9 service rates, transition charges, any other charges 8 10 authorized under section 476B.15, or any other rates for 8 11 tariffed services. 8 12 32. "End-use consumer" means a person that prior to having 8 13 the option to choose competitive electric service, purchases 8 14 for use in this state bundled electric service or that 8 15 participates in an electric retail access pilot project 8 16 approved by the board or local governing body. On and after 8 17 the date a person has the option to choose competitive 8 18 electric service, "end-use consumer" means a person that 8 19 purchases, directly or through a competitive electric service 8 20 provider, for use in this state, standard offer service, 8 21 transitional service, universal service, basic energy service, 8 22 or unbundled distribution service sold at retail. 8 23 33. "Energy" means electric power measured in kilowatt- 8 24 hours (kWh). 8 25 34. "Good operating practices" means any of the practices, 8 26 methods, and acts engaged in or approved by a significant 8 27 portion of the electric industry during a relevant time 8 28 period, or any of the practices, methods, or acts which, in 8 29 the exercise of reasonable judgment in light of the facts 8 30 known at the time the decision was made, could reasonably have 8 31 been expected to accomplish the desired result at reasonable 8 32 cost consistent with good business practices, reliability, 8 33 safety, and expedition. "Good operating practices" is not 8 34 limited to the optimum practice, method, or act, to the 8 35 exclusion of all others, but rather to acceptable practices, 9 1 methods, or acts consistently adhered to and generally 9 2 accepted in the region. 9 3 35. "Grantee" means a person, other than an incumbent 9 4 provider or an assignee which acquires its interest from an 9 5 incumbent provider, to whom or for whose benefit the board 9 6 creates, establishes, and grants rights in, to, or under 9 7 intangible transition property. 9 8 36. "Grid" means the interconnected system used for 9 9 delivering electricity within this state. 9 10 37. "Holder" means a holder of transitional funding 9 11 instruments, including a trustee, collateral agent, nominee, 9 12 or other such person acting for the benefit of such a holder. 9 13 38. "Incorporated city utility provider" means a 9 14 corporation, existing on the effective date of this chapter, 9 15 with assets worth one million dollars or more, which has one 9 16 or more platted villages located within the territorial limits 9 17 of the tract of land which it owns, and which provides 9 18 electricity to ten thousand or fewer end-use consumers. 9 19 39. "Incumbent provider" means a person, or the person's 9 20 successor or assign, that provided bundled electric service 9 21 within an assigned service area on the effective date of this 9 22 chapter. 9 23 40. "Instrument funding charge" means a nonbypassable 9 24 charge authorized in a transitional funding order to be 9 25 applied and invoiced to each responsible consumer, a class of 9 26 responsible consumers of an incumbent provider, or other 9 27 person or group of persons obligated to pay eligible rates 9 28 from which the instrument funding charge has been deducted and 9 29 stated separately pursuant to section 476B.17, subsection 4, 9 30 paragraph "d". 9 31 41. "Intangible transition property" means the right, 9 32 title, and interest of an incumbent provider, grantee, or 9 33 assignee arising pursuant to a transitional funding order to 9 34 impose and receive instrument funding charges, and all related 9 35 revenues, collections, claims, payments, money, or proceeds of 10 1 the transitional funding order, including all right, title, 10 2 and interest of an incumbent provider, grantee, or assignee 10 3 in, to, under, and pursuant to such transitional funding 10 4 order, whether or not such intangible transition property is 10 5 characterized on the books of the incumbent provider as a 10 6 regulatory asset, a cost incurred by the incumbent provider, 10 7 or otherwise. Intangible transition property arises and 10 8 exists only to the extent that instrument funding charges are 10 9 authorized in a transitional funding order that becomes 10 10 effective in accordance with this chapter. Such intangible 10 11 transition property shall continue to exist to the extent 10 12 provided in the transitional funding order. 10 13 42. "Interval metering" means metering that records end- 10 14 use consumer usage on the same time frame as pricing changes 10 15 in the market, typically hourly or more frequently. 10 16 43. "Issuer" means a person, other than an incumbent 10 17 provider, which has issued transitional funding instruments. 10 18 44. "Load" means the amount of demand or energy delivered 10 19 to or required by an end-use consumer or consumers. 10 20 45. "Load profiling" means the process of estimating 10 21 rather than directly measuring the demand and energy 10 22 consumption of an end-use consumer during a period of time. 10 23 46. "Local governing body" means the board of directors of 10 24 an electric cooperative as provided in section 499.36, the 10 25 utility board of a municipal electric utility as defined in 10 26 section 388.1, or the council of a city, as defined in section 10 27 362.2, whose municipal electric utility is not operated by a 10 28 utility board. 10 29 47. "Municipal electric cooperative association" means an 10 30 electric cooperative, the membership of which is composed 10 31 entirely of municipal utilities. 10 32 48. "Municipal utility" means all or part of an electric 10 33 light and power plant system which is owned by a city, 10 34 including all land, easements, rights of way, fixtures, 10 35 equipment, accessories, improvement, appurtenances, and other 11 1 property necessary or useful for the operation of a municipal 11 2 electric utility. Municipal utility includes a combined 11 3 utility system, as defined in section 384.80, in which at 11 4 least one of the components of the combined utility system is 11 5 a municipal electric utility. 11 6 49. "Nonbypassable charge" means a charge assessed by a 11 7 delivery service provider to each end-use consumer located 11 8 within the delivery service provider's assigned service area 11 9 or to a competitive electric service provider serving that 11 10 end-use consumer, regardless of whether the consumer purchases 11 11 delivery service from that delivery service provider. 11 12 50. "Nuclear decommissioning" means a series of activities 11 13 undertaken at the time a nuclear power plant is permanently 11 14 retired from service to ensure that the final entombment, 11 15 decontamination, dismantlement, removal, and disposal of the 11 16 structures, systems, and components of the power plant, 11 17 including the plant site, and any radioactive components and 11 18 materials associated with the plant, is accomplished in 11 19 compliance with all applicable state and federal laws, and to 11 20 ensure that such final disposition does not pose any material 11 21 threat to the public health and safety. 11 22 51. "Nuclear decommissioning costs" means all reasonable 11 23 costs and expenses that are expected to be incurred or are 11 24 actually incurred in connection with nuclear decommissioning 11 25 including all costs and expenses to prepare a unit of a plant 11 26 for decommissioning, such as the cost of moving spent fuel 11 27 off-site, interim spent fuel storage costs, and interim costs 11 28 incurred pursuant to a SAFSTOR decommissioning phase as 11 29 approved and defined by the nuclear regulatory commission, and 11 30 all costs and expenses after the actual decommissioning 11 31 occurs, such as physical security and radiation monitoring 11 32 expenses. "Nuclear decommissioning costs" also includes 11 33 reasonable costs and expenses to return the plant site to a 11 34 condition suitable for public use. 11 35 52. "Person" means person as defined in section 4.1. 12 1 53. "Renewable energy" means electric energy measured in 12 2 kilowatt-hours produced from a renewable energy facility. 12 3 54. "Renewable energy facility" means an electric 12 4 generating unit whose energy input is derived, in whole or in 12 5 part, from solar, wind, geothermal, landfill gas, refuse- 12 6 derived fuel, agricultural crops or residues, wood, or other 12 7 renewable energy sources as determined by the board. 12 8 "Renewable energy facility" also includes a hydroelectric 12 9 generating unit with a nameplate capacity, or a contract for 12 10 hydroelectric capacity, no greater than one hundred megawatts. 12 11 55. "Responsible consumer" means all of the following: 12 12 a. Prior to October 1, 2002, a person who receives bundled 12 13 electric service pursuant to a tariff or contract. 12 14 b. On or after October 1, 2002, a person responsible for 12 15 payment for distribution services pursuant to a tariff or 12 16 contract. 12 17 c. At any time, any other person responsible for payment 12 18 of eligible rates pursuant to a tariff or contract as 12 19 specified by an incumbent provider in its application for a 12 20 transitional funding order. 12 21 56. "Scheduling" means the process by which a person 12 22 notifies the control area operator of the amounts of demand 12 23 and energy it intends to provide to the grid for a specified 12 24 period of time, and the source and destination of that demand 12 25 and energy. 12 26 57. "Tariff" means a document containing rates, charges, 12 27 schedules, regulations, terms, or conditions of regulated 12 28 electric service, filed or posted with the appropriate 12 29 regulatory authority. 12 30 58. "Transition charges" means nonbypassable charges to 12 31 end-use consumers, competitive electric service providers, or 12 32 delivery service providers that are consumer-owned utilities, 12 33 that are designed to compensate an incumbent provider or 12 34 electric cooperative for all or a portion of the provider's or 12 35 cooperative's transition costs. 13 1 59. "Transition costs" means both of the following: 13 2 a. Costs and reduced revenues as calculated pursuant to 13 3 section 476B.15 incurred by an incumbent provider as a result 13 4 of changing from electric regulation under chapter 476 to a 13 5 competitive electric industry pursuant to this chapter. 13 6 b. Costs and reduced revenues as calculated by an electric 13 7 cooperative pursuant to section 476B.15, subsection 5, as a 13 8 result of changing from electric regulation under chapter 476 13 9 to a competitive electric industry pursuant to this chapter. 13 10 60. "Transitional funding instruments" means any 13 11 instruments, pass-through certificates, notes, debentures, 13 12 certificates of participation, bonds, certificates of 13 13 beneficial interest, or other evidences of indebtedness or 13 14 instruments evidencing a beneficial interest which are issued 13 15 by or on behalf of an incumbent provider or issuer pursuant to 13 16 a transitional funding order; which are issued pursuant to an 13 17 executed indenture, pooling agreement, security agreement, or 13 18 other similar agreement of an incumbent provider or issuer 13 19 creating a security interest, ownership interest, or other 13 20 beneficial interest in intangible transition property; and the 13 21 proceeds of which are to be used for the purposes set forth in 13 22 section 476B.17, subsection 3, paragraph "c". 13 23 61. "Transitional funding order" means an order of the 13 24 board issued under section 476B.17 creating and establishing 13 25 intangible transition property and the rights of any person in 13 26 such property, and approving the sale, pledge, assignment, or 13 27 other transfer of intangible transition property, the issuance 13 28 of transitional funding instruments, and the imposition and 13 29 collection of instrument funding charges. 13 30 62. "Transmission service" means the portion of delivery 13 31 service that is subject to the exclusive jurisdiction of the 13 32 federal energy regulatory commission or, for consumer-owned 13 33 utilities, the portion of delivery service subject to section 13 34 211 of the federal Power Act. 13 35 63. "Unbundled rates" means separate charges for 14 1 components of regulated electric services such as distribution 14 2 services. 14 3 64. "Unbundled services" means distribution service and 14 4 other services specified in section 476B.4. 14 5 Sec. 4. NEW SECTION. 476B.4 UNBUNDLING OF RATES AND 14 6 SERVICES. 14 7 1. ELECTRIC COMPANIES. On or before October 1, 2000, an 14 8 incumbent provider that is an electric company shall file with 14 9 the board unbundled rates as provided in this subsection. At 14 10 a minimum, unbundled rates for an electric company shall 14 11 reflect separate charges for distribution service; types of 14 12 delivery service metering; supplying competitive electric 14 13 service providers with meter information, if applicable; 14 14 delivery service billings issued to competitive electric 14 15 service providers; delivery service billings issued to end-use 14 16 consumers; connecting to the delivery system those meters not 14 17 owned by the delivery service provider; processing a change in 14 18 an end-use consumer's competitive electric service provider; 14 19 transition charges pursuant to section 476B.15, if applicable; 14 20 and nuclear decommissioning cost recovery pursuant to section 14 21 476B.16, if applicable. To the extent it elects to perform 14 22 billing services for competitive electric service providers 14 23 through its regulated delivery service function under section 14 24 476B.12 or elects to perform meter reading or meter 14 25 information gathering through its regulated delivery service 14 26 function under section 476B.11, an electric company shall also 14 27 propose unbundled rates for such services that shall apply to 14 28 all competitive electric service providers in a 14 29 nondiscriminatory manner. An electric company may propose 14 30 other regulated, unbundled rates and charges associated with 14 31 delivery service, as appropriate. Terms and conditions 14 32 associated with all unbundled rates and charges shall be filed 14 33 with the board at the time of filing unbundled rates. The 14 34 board shall treat the filing as a submission under section 14 35 476.6, except that subsection 5 of that section shall not 15 1 apply. 15 2 The initial unbundled rates for the services specified in 15 3 this subsection shall be based upon cost of service, including 15 4 current cost of capital. The electric company shall submit 15 5 written evidence with its initial unbundled rate filing to 15 6 support its proposed unbundled rates and charges, including 15 7 direct and allocated costs associated with the levels of the 15 8 unbundled rates and charges. The method used to determine 15 9 class cost of service, to the maximum extent practicable, 15 10 shall permit identification of cost differences attributable 15 11 to variations in demand, energy, voltage delivery level, 15 12 customer components of cost, and other factors. 15 13 The board shall approve rates, charges, terms, and 15 14 conditions that are just, reasonable, and nondiscriminatory. 15 15 The unbundled rates, charges, terms, and conditions approved 15 16 by the board shall be posted on the board's website for 15 17 informational purposes by no later than April 1, 2002, and 15 18 shall become effective on October 1, 2002. 15 19 2. ELECTRIC COOPERATIVES AND MUNICIPAL UTILITIES. Each 15 20 incumbent provider that is a consumer-owned utility, pursuant 15 21 to its local governing process, shall unbundle and post on the 15 22 board's website its rates and charges by April 1, 2002. At a 15 23 minimum, unbundled rates for a consumer-owned utility shall 15 24 reflect separate charges for distribution service; connecting 15 25 to the delivery system meters not owned by the delivery 15 26 service provider; supplying meter information to competitive 15 27 electric service providers, if applicable; and processing a 15 28 change in an end-use consumer's competitive electric service 15 29 provider. A consumer-owned utility may unbundle and post 15 30 other rates and charges, such as transition costs including 15 31 nuclear decommissioning costs, as determined by its local 15 32 governing body. The costs associated with meter reading or 15 33 meter information gathering may be included in the 15 34 distribution service rate as long as, for each metered 15 35 location, the consumer-owned utility makes the information 16 1 available at a reasonable cost-based fee to the competitive 16 2 electric service provider serving the metered location. Meter 16 3 reading, meter information, and billing charges, if 16 4 applicable, shall be posted. Terms and conditions associated 16 5 with all unbundled rates shall be posted at the same time as 16 6 the posting of unbundled rates. The unbundled rates, charges, 16 7 terms, and conditions of service of each consumer-owned 16 8 utility shall be established by its local governing body, be 16 9 nondiscriminatory, comply with section 476B.9, subsection 6, 16 10 and become effective when the first end-use consumer within 16 11 the assigned service area of the consumer-owned utility has 16 12 the option to choose competitive electric services. 16 13 3. CONTROL AREA OPERATORS. 16 14 a. A control area operator that is an electric company 16 15 shall file control area service rates, charges, terms, and 16 16 conditions applicable to distribution service with the board 16 17 by May 1, 2001. The filing shall also include the processes 16 18 proposed to be used by the control area operator for 16 19 scheduling and system control related to distribution service, 16 20 load profiling, and financial settlement, if applicable. The 16 21 filing shall be subject to review and approval by the board 16 22 pursuant to section 476B.9, subsection 7. Control area 16 23 service rates, charges, terms, conditions, and processes 16 24 approved by the board shall be posted on the board's website 16 25 for informational purposes by no later than April 1, 2002, and 16 26 shall become effective October 1, 2002. 16 27 b. A control area operator that is a consumer-owned 16 28 utility shall post on the board's website control area service 16 29 rates, charges, terms, and conditions applicable to 16 30 distribution service and the processes for load profiling and 16 31 financial settlement to be used by the control area operator. 16 32 The rates, charges, terms, conditions, and processes shall be 16 33 nondiscriminatory, comply with section 476B.9, subsection 6, 16 34 be regulated by the consumer-owned utility's local governing 16 35 body unless subject to the exclusive jurisdiction of the 17 1 federal energy regulatory commission or the exclusive 17 2 jurisdiction of another federal agency or, for consumer-owned 17 3 utilities, subject to section 211 of the federal Power Act, be 17 4 posted on the board's website for informational purposes by no 17 5 later than April 1, 2002, and become effective when the first 17 6 Iowa end-use consumer in the control area has the option to 17 7 choose competitive electric services. 17 8 4. INFORMATIONAL POSTING OF TRANSMISSION TARIFFS. On or 17 9 before April 1, 2002, each delivery service provider that 17 10 provides transmission service and each control area operator 17 11 shall post on the board's website, for informational purposes 17 12 only, all tariffs for transmission service and ancillary 17 13 services applicable to competitive electric service provider 17 14 and end-use consumer transactions that have been accepted by 17 15 the federal energy regulatory commission or another federal 17 16 agency with jurisdiction. The posting on the board's website 17 17 shall be updated at the time the delivery service provider 17 18 updates its comparable posting on the federal website. 17 19 Sec. 5. NEW SECTION. 476B.5 CONSUMER EDUCATION. 17 20 1. OBJECTIVE. Educated consumers and the availability of 17 21 information sufficient to allow consumers to evaluate the 17 22 prices, terms, and conditions of service offered are essential 17 23 to the development of an efficient competitive marketplace. 17 24 It is the intent of this section to establish a consumer 17 25 education program that explains changes in the retail electric 17 26 market, increases awareness of the opportunity to choose a 17 27 competitive electric service provider, and provides 17 28 information necessary to help consumers make appropriate 17 29 choices regarding their electric service, to understand their 17 30 rights and responsibilities as consumers, including rights 17 31 under the federal Telemarketing and Consumer Fraud and Abuse 17 32 Prevention Act, and to understand the legal obligations of the 17 33 competitive electric service providers and delivery service 17 34 providers. Targeted education initiatives shall be developed 17 35 for low-income, senior citizen, and non-English speaking end- 18 1 use consumers and shall be implemented, to the extent 18 2 possible, by utilizing local community-based organizations. A 18 3 collaborative process shall be used to develop a consumer 18 4 education program to assist consumers in understanding their 18 5 rights and opportunities. The board shall determine the date 18 6 for commencement of the education program approved by the 18 7 board. 18 8 2. COLLABORATIVE PROCESS. Within ninety days after the 18 9 effective date of this chapter, the board shall convene an 18 10 initial meeting of persons interested in participating in the 18 11 development of a consumer education program. Additional 18 12 meetings shall be scheduled by the board as necessary. 18 13 Interested persons shall be provided an opportunity for input, 18 14 consistent with the objective of commencing the consumer 18 15 education program on a date determined by the board. 18 16 3. STANDARDS. A consumer education program shall be 18 17 developed in a two-step process, including message development 18 18 and message dissemination. Message development shall be 18 19 designed to educate consumers about all of the following: 18 20 a. The existing electric industry structure and the 18 21 difference between that structure and the purchase of 18 22 competitive and regulated electric services in a competitive 18 23 market. 18 24 b. Consumers' rights and responsibilities in a competitive 18 25 electric market. 18 26 c. The rights and responsibilities of competitive electric 18 27 service providers, aggregators, and delivery service 18 28 providers. 18 29 d. The role of the board and the office of consumer 18 30 advocate. 18 31 The messages shall focus upon the educational and 18 32 informational needs of nonresidential consumers using fewer 18 33 than one hundred thousand kilowatt-hours annually and 18 34 residential consumers including rural consumers. The content 18 35 and dissemination of the messages shall be as competitively 19 1 neutral as practicable. 19 2 The board shall specify the methods of message 19 3 dissemination for electric companies. The method of message 19 4 dissemination for consumer-owned utilities shall be determined 19 5 by each local governing body with due consideration of the 19 6 recommendations of the board. However, the board shall 19 7 specify the minimum number of times that consumer-owned 19 8 utilities must disseminate the messages. The board shall 19 9 develop the messages and, for electric companies, the method 19 10 of message dissemination, giving due consideration to the 19 11 comments and suggestions received through the collaborative 19 12 process. 19 13 4. MAXIMUM COST. The total cost of message development 19 14 and dissemination shall not exceed six million dollars. 19 15 5. FUNDING. To the extent not funded through the interim 19 16 funding mechanism provided by section 476B.13, subsection 5, 19 17 paragraph "c", the costs of message development and 19 18 dissemination shall be funded through nonbypassable charges on 19 19 the bills issued for bundled electric service, with collection 19 20 to be completed by October 1, 2002. The costs of message 19 21 development shall be apportioned among the incumbent providers 19 22 in proportion to the number of kilowatt-hours used within an 19 23 incumbent provider's assigned service area in 1998 to the 19 24 total number of kilowatt-hours used in 1998 in all assigned 19 25 service areas. Ninety percent of the costs of message 19 26 dissemination shall be allocated to incumbent providers that 19 27 are electric companies and shall be apportioned among electric 19 28 companies in proportion to the number of kilowatt-hours used 19 29 within the electric company's assigned service area in 1998 to 19 30 the total number of kilowatt-hours used in 1998 in the 19 31 assigned service areas of all electric companies. The 19 32 remaining ten percent of the costs of message dissemination, 19 33 not to exceed six hundred thousand dollars, shall be allocated 19 34 to consumer-owned incumbent providers and shall be apportioned 19 35 among them in proportion to the number of kilowatt-hours used 20 1 in 1998 within the assigned service area of each to the total 20 2 number of kilowatt-hours used in 1998 in the assigned service 20 3 areas of all consumer-owned incumbent providers. 20 4 The board shall determine the date for commencement of 20 5 collection of the nonbypassable charge and shall specify for 20 6 electric companies by December 31, 2000, the method of 20 7 allocating the costs among rates, which method may differ from 20 8 the method used for apportioning costs among incumbent 20 9 providers. Moneys collected from the nonbypassable charges 20 10 shall be forwarded to the board quarterly. To the extent the 20 11 amount collected through the nonbypassable charge exceeds by 20 12 more than five percent the amount authorized to be collected, 20 13 the electric company shall be required to refund such 20 14 overcollections to the end-use consumers who paid those 20 15 amounts in a manner to be approved by the board. A consumer- 20 16 owned utility may collect its share of message development 20 17 costs and the costs of its own message dissemination program 20 18 through a nonbypassable delivery charge. 20 19 6. ADVANCEMENT OF FUNDS. The board may direct all 20 20 incumbent providers that are electric companies to advance to 20 21 the treasurer of state, on an as needed basis, a maximum of 20 22 six million dollars to fund the costs of message development 20 23 and dissemination. The board may direct all or a portion of 20 24 these amounts to be advanced at any time after the effective 20 25 date of this Act. Notwithstanding section 12C.7, subsection 20 26 2, interest or earnings on investments or time deposits of the 20 27 moneys advanced and remitted under this subsection shall be 20 28 retained and used for message development and dissemination. 20 29 An electric company advancing funds for message development 20 30 and dissemination shall be reimbursed first from funds 20 31 collected pursuant to section 476B.13, subsection 5, paragraph 20 32 "c". If those funds are not sufficient, any remaining funds 20 33 advanced shall be reimbursed from funds collected pursuant to 20 34 subsection 5. An electric company shall be paid interest on 20 35 any funds advanced at the rate of twelve percent per annum. 21 1 7. OTHER COMMUNICATIONS. Nothing in this section shall 21 2 prohibit a person from communicating to an end-use consumer in 21 3 an accurate and truthful manner regarding the competitive 21 4 electric market and regulated electric services through a 21 5 means other than the consumer education program developed 21 6 under this section. In addition, the board may continue to 21 7 provide information and education following the conclusion of 21 8 the consumer education program, but shall not continue the 21 9 nonbypassable charge established for that purpose. 21 10 Sec. 6. NEW SECTION. 476B.6 CONSUMER PROTECTIONS – 21 11 RIGHTS AND RESPONSIBILITIES OF CONSUMERS. 21 12 1. POLICY. It is the policy of this state that consumer 21 13 protection shall not be diminished as a result of the 21 14 implementation of this chapter. 21 15 2. LICENSE REQUIRED. 21 16 a. Except as provided in this section, a person shall not 21 17 provide or offer to provide competitive electric services to 21 18 an end-use consumer, or aggregate end-use consumers for the 21 19 acquisition of competitive electric services without first 21 20 obtaining a license from the board. This section does not 21 21 prohibit a person from communicating to an end-use consumer in 21 22 an accurate and truthful manner regarding the emerging 21 23 competitive electric market in this state and the person's 21 24 planned role in that market. In addition to the licensing 21 25 requirements in this section, the board may adopt, by rule, 21 26 additional licensing requirements consistent with this section 21 27 that are required to protect the public from fraud and unfair, 21 28 deceptive, or other abusive business sales practices, to 21 29 provide for reasonable disclosure of service terms and 21 30 conditions and consumer rights and responsibilities, and to 21 31 protect the integrity of the delivery system. The board shall 21 32 adopt rules providing additional protections that require 21 33 competitive electric service providers to disclose to a 21 34 residential end-use consumer information regarding service 21 35 prices, terms, and conditions with a written statement which 22 1 the residential end-use consumer may retain. The board shall 22 2 adopt rules regarding the form, content, and distribution of 22 3 the residential end-use consumer information, which shall 22 4 include, but not be limited to, the following: prices, fees, 22 5 charges, and penalties and other terms and conditions of 22 6 service; whether a credit agency will be contacted; deposit 22 7 requirements and interest paid on deposits; due dates of bills 22 8 and consequences of late payments; deferred payment 22 9 arrangements; limits, if any, on warranties and damages; any 22 10 other fees, charges, or penalties; whether the competitive 22 11 electric service provider or its primary power supplier, if 22 12 known, operates under a collective bargaining agreement and 22 13 whether it operates with employees hired as replacements 22 14 during the course of a labor dispute; and the methods by which 22 15 residential end-use consumers shall be notified of any changes 22 16 to these items. The competitive electric service provider, in 22 17 an informational booklet form, shall describe residential end- 22 18 use consumer rights under this chapter and annually mail this 22 19 booklet to its residential end-use consumers. The board may 22 20 adopt, by rule, additional licensing requirements regarding 22 21 adequate notice to end-use consumers prior to automatic 22 22 contract renewal. The board shall also adopt rules regarding 22 23 the circumstances under which residential end-use consumers 22 24 would have the right to terminate competitive electric service 22 25 contracts. The board may establish reasonable conditions or 22 26 restrictions on a license. Unless otherwise expressly 22 27 provided by this chapter, the licensing rules adopted by the 22 28 board shall not discriminate in favor of or against any 22 29 prospective licensee. The initial licensing rules shall be 22 30 proposed by the board no later than October 1, 2000. 22 31 b. The board may reject a request for a license if the 22 32 request does not contain sufficient information for the board 22 33 to evaluate the request, but must reject such a request within 22 34 thirty days of the request's filing. The board shall fully 22 35 describe in writing any deficiencies in a license request that 23 1 is rejected. 23 2 c. The board shall rule upon a request for a license that 23 3 is not found to be deficient within one hundred twenty days of 23 4 the filing of the request with the board. However, the board 23 5 may process a request for a license, but shall not make a 23 6 license effective until one hundred eighty days after the 23 7 adoption of the initial rules under paragraph "a". 23 8 d. The board shall maintain a current list of all licensed 23 9 providers of competitive electric services. The board shall 23 10 make such a list available to a person upon request and shall 23 11 post the list on its website. This list shall be updated as 23 12 soon as practicable following the issuance of a license to a 23 13 competitive electric service provider or upon revocation of 23 14 the license of a competitive electric service provider. 23 15 e. A license shall not be required for an incumbent 23 16 provider that is a consumer-owned utility who chooses to 23 17 provide competitive electric services only within its assigned 23 18 service area, either through the incumbent provider or its 23 19 affiliate. 23 20 f. The board may charge reasonable fees for licensing 23 21 requests and for administering licenses. 23 22 3. LICENSE REQUIREMENTS FOR COMPETITIVE ELECTRIC SERVICE 23 23 PROVIDERS OTHER THAN AGGREGATORS. In addition to other 23 24 requirements that the board may adopt under subsection 1, a 23 25 competitive electric service provider, except one acting only 23 26 as an aggregator, shall file with the board as a condition of 23 27 obtaining a license under this section all of the following: 23 28 a. The legal name and all trade names under which the 23 29 licensee will operate, a description of the business structure 23 30 of the licensee, evidence of authorization to do business in 23 31 the state if required, and, if applicable, the state of 23 32 organization. 23 33 b. The names, business addresses, and business telephone 23 34 numbers of the principal officers of the licensee, the name 23 35 and business address of the agent for the licensee who can be 24 1 contacted regarding its operations in this state, and a 24 2 telephone number at which the agent can be contacted twenty- 24 3 four hours a day. 24 4 c. Identification of any affiliates that are licensees 24 5 under this section and a listing of the names and addresses of 24 6 all affiliates of the competitive electric service provider 24 7 engaged in the provision of competitive electric services in 24 8 any other state. 24 9 d. Identification of any state in which the licensee or an 24 10 affiliate has had a comparable license suspended, revoked, or 24 11 denied, including identification of the title and number of 24 12 any applicable proceedings and a copy of any final orders in 24 13 such proceedings or the citation to the website where the text 24 14 of the orders can be found. 24 15 e. A listing of all pending and completed legal actions 24 16 and formal complaints pertaining to the provision of retail or 24 17 wholesale electric service in the United States that have been 24 18 filed against the licensee or its affiliates with a public 24 19 utility regulatory body other than the board in the twelve 24 20 months prior to the date of the request for a license, 24 21 including identification of the title and number of any 24 22 applicable proceedings and a copy of any final orders in such 24 23 proceedings or the citation to the website where the text of 24 24 the orders can be found. 24 25 f. Unless the licensee is an incumbent provider or a 24 26 consumer-owned utility with delivery service property in this 24 27 state on the effective date of this chapter, or a municipal 24 28 electric cooperative association established prior to the 24 29 effective date of this chapter, a demonstration that the 24 30 licensee has the operational and financial capability to 24 31 obtain and deliver the services it proposes to offer. 24 32 g. A commitment to provide the board, upon the board's 24 33 request, with evidence supporting the basis of any advertising 24 34 claims made regarding fuel sources. 24 35 h. A commitment to disclose to each prospective end-use 25 1 consumer prior to the initiation of service those terms and 25 2 conditions of service and those rights and responsibilities of 25 3 the end-use consumer associated with the offered service that 25 4 are required to be disclosed by rules adopted by the board 25 5 pursuant to subsection 1 and section 476B.8, subsection 3. 25 6 i. A bond or other demonstration of the financial 25 7 capability to satisfy claims and expenses that can reasonably 25 8 be anticipated to occur as part of operations under its 25 9 license, including the failure to honor contractual 25 10 commitments. The adequacy of the bond or demonstration shall 25 11 be determined by the board and reviewed by the board from time 25 12 to time. In determining the adequacy of the bond or 25 13 demonstration, the board shall consider the extent of the 25 14 services to be offered, the size of the licensee, and the size 25 15 of the load to be served, with the objective of ensuring that 25 16 the board's financial requirements do not unreasonably erect 25 17 barriers to market entry. In no event shall the board require 25 18 a bond or other demonstration of financial capability in 25 19 excess of ten million dollars. A person not subject to 25 20 paragraph "f" is deemed by the board to have fulfilled the 25 21 requirements of this paragraph. 25 22 j. A commitment not to terminate the provision of 25 23 competitive electric service to an end-use consumer without 25 24 providing at least twelve calendar days' prior notice to the 25 25 end-use consumer, unless the contract between a nonresidential 25 26 end-use consumer and the licensee provides otherwise. 25 27 k. A commitment to comply with the applicable rules of the 25 28 board and this chapter, and to recognize an end-use consumer's 25 29 rights including the right to voluntarily aggregate under 25 30 subsection 5, paragraph "e". 25 31 l. A commitment to comply with all applicable federal, 25 32 state, and regional rules and procedures, including those for 25 33 the use, operation, and maintenance of the electric delivery 25 34 system including control area operations. This shall include 25 35 a commitment by the proposed licensee to accept, to the extent 26 1 required by the applicable authority, the responsibility to 26 2 report the loads of the end-use consumers served by the 26 3 proposed licensee to the North American electric reliability 26 4 council or its successor, or a person performing similar 26 5 functions. 26 6 m. A commitment that competitive electric services, when 26 7 offered to residential end-use consumers, will be provided for 26 8 a minimum of thirty days. 26 9 n. A commitment to advise each end-use consumer of the 26 10 right to rescind the selection of a competitive electric 26 11 service offered by the licensee within three business days of 26 12 selection, in accordance with rules adopted pursuant to 26 13 subsection 5, paragraph "o". 26 14 o. A commitment not to transfer to another person the 26 15 competitive electric service account of any end-use consumer 26 16 except with the consent of the end-use consumer or in 26 17 accordance with any applicable statute. This chapter does not 26 18 preclude a competitive electric service provider from 26 19 transferring all or a portion of its end-use consumers and 26 20 competitive electric service accounts pursuant to a sale or 26 21 transfer of all or a substantial portion of a competitive 26 22 electric service provider's competitive electric service 26 23 business in this state, provided that the transfer satisfies 26 24 all of the following conditions: 26 25 (1) The transferee will serve the affected end-use 26 26 consumers through a licensed competitive electric service 26 27 provider. 26 28 (2) The transferee will honor the transferor's contracts 26 29 with affected end-use consumers. 26 30 (3) The transferor provides written notice of the transfer 26 31 to each affected end-use consumer not less than thirty days 26 32 prior to the transfer. 26 33 (4) An affected residential end-use consumer is given 26 34 thirty days to change to a competing competitive electric 26 35 service provider without penalty. 27 1 p. A commitment not to charge or attempt to collect any 27 2 charges from end-use consumers for any competitive electric 27 3 service or electric equipment not contracted for or otherwise 27 4 agreed to by the end-use consumer. 27 5 q. A commitment that the licensee will have the facilities 27 6 and the personnel to contact the delivery service provider in 27 7 a timely fashion, as provided by rules adopted by the board, 27 8 upon receipt of information from an end-use consumer of the 27 9 existence of an emergency situation with respect to delivery 27 10 service. The initial rules shall be proposed by October 1, 27 11 2000. 27 12 r. A commitment that if the licensee ceases to comply with 27 13 contractual commitments to end-use consumers, fails to 27 14 schedule energy with the control area operator for two 27 15 consecutive twenty-four-hour periods, fails to deliver energy 27 16 scheduled with or committed to a control area operator for two 27 17 consecutive twenty-four-hour periods, ceases operation under 27 18 its license, or otherwise substantially defaults on its 27 19 obligations under its license, within eight hours of such 27 20 occurrence, the licensee shall do both of the following: 27 21 (1) Provide the board with the names and addresses of all 27 22 end-use consumers of the licensee. 27 23 (2) If any of the end-use consumers of the licensee are 27 24 located in the assigned service area of a delivery service 27 25 provider that is a consumer-owned utility, the licensee shall 27 26 provide that delivery service provider with the names and 27 27 addresses of such consumers. 27 28 s. A commitment to include on bills rendered to 27 29 residential end-use consumers and all other end-use consumers 27 30 with usage at or below the threshold for standard offer 27 31 service all of the following: 27 32 (1) The period of time for which the billing is 27 33 applicable. 27 34 (2) The amount owed for current service, including an 27 35 itemization of all charges. 28 1 (3) Any past due amount owed. 28 2 (4) The last date for timely payment. 28 3 (5) The amount of penalty for any late payment. 28 4 (6) The location for or method of remitting payment. 28 5 (7) A toll-free telephone number for the end-use consumer 28 6 to contact for information and to make complaints regarding 28 7 the licensee. 28 8 (8) A toll-free telephone number for the end-use consumer 28 9 to contact the licensee in the event of an emergency. 28 10 (9) A toll-free telephone number for the end-use consumer 28 11 to notify the delivery service provider of an emergency 28 12 regarding delivery service. 28 13 (10) If the bill is to an end-use consumer in the assigned 28 14 service area of a delivery service provider that is an 28 15 electric company, information regarding regulated rates, 28 16 charges, refunds, and services as provided in rules adopted by 28 17 the board as being required by the public interest. The 28 18 initial rules shall be proposed by October 1, 2000. 28 19 t. A commitment to notify the board during the pendency of 28 20 the license request and after the issuance of the license of 28 21 any substantial change in the representations and commitments 28 22 required by this subsection within fourteen days of such 28 23 change. 28 24 u. A commitment to annually submit to the board such 28 25 information as the board reasonably determines by rule is 28 26 necessary to monitor the development of competitive electric 28 27 services in this state and the licensee's compliance with this 28 28 chapter. Information submitted pursuant to this paragraph 28 29 shall be kept confidential and shall not be available for 28 30 public examination. The initial rules shall be proposed by 28 31 October 1, 2000. 28 32 v. For a competitive electric service provider operating 28 33 generating facilities in Iowa, or involved in meter 28 34 installation, meter maintenance, or meter reading within Iowa, 28 35 including a competitive electric service provider that is a 29 1 consumer-owned utility but only to the extent that it provides 29 2 competitive electric service outside its assigned service 29 3 area, a commitment to conduct these activities in a prompt, 29 4 safe, and reliable manner; to maintain within the state those 29 5 administrative, technical, and operating personnel necessary 29 6 for the provision of reasonably safe, reliable, and prompt 29 7 generation and metering services and facilities; and to 29 8 demonstrate that personnel involved in installing, operating, 29 9 and maintaining generating facilities or electric meters and 29 10 metering equipment have the requisite skills, knowledge, 29 11 experience, and training to perform those work functions 29 12 necessary to provide high-quality, safe, reliable, and prompt 29 13 services. Such demonstration may include a showing that 29 14 applicable personnel have completed an accredited or 29 15 recognized apprenticeship training program for the particular 29 16 skill, trade, or craft. 29 17 w. A commitment to collect and remit to the department of 29 18 revenue and finance any sales, use, and local option taxes 29 19 imposed under chapter 422, 422B, 422E, or 423, upon the gross 29 20 receipts from the sale, furnishing, or service of electricity, 29 21 whether bundled or unbundled, to end-use consumers of the use 29 22 of electricity or electric service by end-use consumers in 29 23 this state, and a certified copy of a permit to collect tax 29 24 issued to the competitive electric service provider pursuant 29 25 to section 422.53 or section 423.10. For purposes of applying 29 26 the provisions of section 476B.20, failure to maintain the 29 27 permit to collect tax required by this paragraph constitutes a 29 28 substantial violation of the licensing requirements. 29 29 x. If the competitive electric service provider is a 29 30 foreign competitive electric service provider, a certified 29 31 copy of registration issued to a competitive electric service 29 32 provider pursuant to section 487.902 or a certified copy of a 29 33 certificate of authority to transact business or conduct 29 34 affairs in this state issued to the competitive electric 29 35 service provider by this state pursuant to section 490.1503, 30 1 490A.1402, or 504A.70, and a commitment to maintain a 30 2 registered office and registered agent in this state as 30 3 provided in section 487.104, 490.501, 490A.501, 499.72, or 30 4 504A.72. 30 5 4. LICENSE REQUIREMENTS FOR AGGREGATORS. In addition to 30 6 other requirements that the board may adopt under subsection 30 7 1, each competitive electric service provider that acts only 30 8 as an aggregator shall file with the board the information 30 9 specified in subsection 3, paragraphs "a", "b", "c", "d", "e", 30 10 "g", "h", "j", "k", "m", "n", "o", "t", and "u". If the 30 11 aggregator will be issuing bills to end-use consumers, then it 30 12 shall also file the information required in subsection 2, 30 13 paragraphs "p", "q", "s", "w", and "x". 30 14 5. RIGHTS OF CONSUMERS. 30 15 a. An end-use consumer shall have access to competitive 30 16 electric services and regulated delivery services in 30 17 accordance with this chapter. All such services shall be 30 18 provided in a safe, reliable, and prompt manner. 30 19 b. The electric grid shall be extended to every end-use 30 20 consumer in accordance with section 476B.9 and such applicable 30 21 rules as are adopted by the board, or, for a consumer-owned 30 22 utility, policies adopted by the local governing body. 30 23 c. An end-use consumer shall have nondiscriminatory access 30 24 to use the electric grid in accordance with this chapter. 30 25 d. An end-use consumer shall not be refused competitive 30 26 electric services, regulated delivery services, standard offer 30 27 service, transitional service, basic energy service, or 30 28 universal service on the basis of age, race, religion, 30 29 national origin, gender, or disability within the meaning of 30 30 the federal Americans with Disabilities Act. 30 31 e. An end-use consumer shall have the right to voluntarily 30 32 aggregate with other end-use consumers for the purpose of 30 33 seeking competitive electric services. Aggregation shall not 30 34 be restricted by any rule or regulation except those 30 35 determined necessary by the board to maintain the safety or 31 1 reliability of the delivery system or to prevent fraud or 31 2 unfair advantage. An end-use consumer shall not be forced to 31 3 aggregate with any group of end-use consumers or other persons 31 4 without the end-use consumer's express consent. 31 5 f. An end-use consumer that has the option to choose 31 6 competitive electric services under this chapter may negotiate 31 7 a bilateral contract for these services. 31 8 g. An end-use consumer or an account of an end-use 31 9 consumer shall not be transferred by a competitive electric 31 10 service provider to another person except as provided in 31 11 subsection 3, paragraph "o". 31 12 h. An end-use consumer located in the assigned service 31 13 area of an incumbent provider that is an electric company 31 14 shall have the right not to choose another competitive 31 15 electric service provider and automatically receive service 31 16 under section 476B.8, subsection 1 or 2, as applicable, from 31 17 their incumbent provider without further action by the end-use 31 18 consumer. 31 19 i. An end-use consumer located in the assigned service 31 20 area of an incumbent provider that is a consumer-owned utility 31 21 shall have the right not to choose another competitive 31 22 electric service provider and automatically receive service 31 23 from the consumer-owned utility under section 476B.8, 31 24 subsection 4, without further action by the end-use consumer. 31 25 j. A residential end-use consumer who is located in the 31 26 assigned service area of an electric company and who either 31 27 has made an effort to secure competitive electric services 31 28 from a competitive electric service provider, at reasonable 31 29 terms and conditions, as defined by board rules, but has not 31 30 been able to do so, or qualifies for assistance under section 31 31 476B.13, subsection 1, shall have the option to receive 31 32 electric services pursuant to section 476B.8, subsection 3, 31 33 and the rules adopted pursuant to that subsection. An end-use 31 34 consumer who is located in the assigned service area of a 31 35 consumer-owned utility and who is without a competitive 32 1 electric service provider shall have the option to receive 32 2 electric services pursuant to section 476B.8, subsection 4. 32 3 k. Except as otherwise provided in this chapter, on or 32 4 after October 1, 2002, information regarding the electric 32 5 usage history or electric account credit history of an 32 6 individual end-use consumer in the possession of an electric 32 7 company, consumer-owned utility, delivery service provider, 32 8 control area operator, competitive electric service provider, 32 9 or aggregator shall not be provided to any other electric 32 10 company, consumer-owned utility, delivery service provider, 32 11 control area operator, competitive electric service provider, 32 12 or aggregator except pursuant to an order of the board or a 32 13 court having jurisdiction, pursuant to a final determination 32 14 of an appropriate governmental entity with authority to compel 32 15 disclosure of such information, with the consent of the end- 32 16 use consumer, or pursuant to a proposed sale or transfer of 32 17 all or a substantial portion of the electric business in this 32 18 state of the person disclosing the information. 32 19 l. An end-use consumer shall be entitled to request from 32 20 its incumbent provider or competitive electric service 32 21 provider the most recent twenty-four months of the consumer's 32 22 historical usage information, if reasonably available, from 32 23 its account. The requested information shall be provided to 32 24 the end-use consumer without charge one time per calendar 32 25 year. If requested more than once per calendar year, the end- 32 26 use consumer may be charged the reasonable cost incurred by 32 27 the incumbent provider or competitive electric service 32 28 provider in providing the information. 32 29 m. The board may adopt rules regarding physical 32 30 disconnection procedures. Only a delivery service provider 32 31 with an assigned service area shall physically disconnect end- 32 32 use consumers located within its assigned service area. Rules 32 33 adopted, at a minimum, shall provide that disconnection is 32 34 warranted by any of the following: 32 35 (1) Failure to pay charges for delivery service including 33 1 nonbypassable charges. 33 2 (2) Failure of an end-use consumer that does not qualify 33 3 for service under section 476B.8 to designate one or more 33 4 competitive electric service providers to provide competitive 33 5 power supply services, and, where applicable, electric 33 6 metering, or electric billing services. 33 7 (3) Failure to pay for standard offer service, 33 8 transitional service, basic energy service, or universal 33 9 service. 33 10 The initial rules shall be proposed by October 1, 2001. 33 11 n. An end-use consumer shall have the right to install 33 12 metering in accordance with section 476B.11. 33 13 o. An end-use consumer shall have three business days 33 14 after the selection of a competitive electric service provider 33 15 or a competitive electric service, but prior to the initiation 33 16 of the service, within which to rescind the selection. The 33 17 board shall propose rules by October 1, 2001, applicable to 33 18 competitive electric service providers regarding the manner, 33 19 method, and content of the notice to be provided to end-use 33 20 consumers regarding this right. 33 21 p. Provisions addressing consumer fraud, including 33 22 misrepresentations regarding service and terms of service, 33 23 contained in section 714.16, subsection 2, paragraph "a", and 33 24 all accompanying provisions of chapter 714 shall apply to 33 25 competitive electric service providers. 33 26 q. A residential end-use consumer that is certified as a 33 27 low-income consumer shall have the opportunity to receive 33 28 assistance for bill payment and energy efficiency programs as 33 29 provided in section 476B.13, subsection 1, and is eligible to 33 30 request electric service under section 476B.8, subsection 3 or 33 31 4, as applicable. 33 32 r. The board shall establish rules of uniform 33 33 applicability to all competitive electric service providers 33 34 that it determines to be required to protect the public 33 35 interest regarding credit practices, consumer deposit 34 1 practices, collection practices, service termination 34 2 practices, billing practices, accuracy of information, public 34 3 safety, electric service reliability, and quality of electric 34 4 service. The initial rules shall be proposed by October 1, 34 5 2001. 34 6 Sec. 7. NEW SECTION. 476B.7 AVAILABILITY OF CHOICE. 34 7 1. Beginning on October 1, 2002, an end-use consumer 34 8 located in the assigned service area of a delivery service 34 9 provider shall have the option to choose competitive electric 34 10 services from competitive electric service providers and 34 11 unbundled delivery services from the delivery service 34 12 provider. The board shall adopt rules regarding the 34 13 procedures to be used by delivery service providers, 34 14 competitive electric service providers, and end-use consumers 34 15 for those end-use consumers exercising their option to choose 34 16 competitive electric services, including the amount of notice 34 17 that must be provided to the delivery service provider prior 34 18 to switching from bundled electric service to unbundled 34 19 delivery service. The initial rules shall be proposed by 34 20 October 1, 2000. 34 21 2. After January 1, 1999, the board shall not initiate or 34 22 order an increase or a reduction in any of the bundled 34 23 electric rates or standard offer service rates of an electric 34 24 company except as provided in section 476B.8. 34 25 3. A consumer-owned utility pursuant to a decision by its 34 26 local governing body may implement a retail access pilot 34 27 project at any time prior to the time end-use consumers within 34 28 the assigned service area have the option to choose 34 29 competitive electric services. Such pilot projects shall be 34 30 terminated at the time end-use consumers within the consumer- 34 31 owned utility's assigned service area have the option to 34 32 choose competitive electric services. An incumbent provider 34 33 that is an electric company may propose a retail access pilot 34 34 project to the board. 34 35 4. The board shall order the suspension of the dates for 35 1 commencement of the option to choose competitive electric 35 2 services specified in subsection 1 if the board determines 35 3 that essential deadlines cannot reasonably be met or there is 35 4 a threat to service reliability or the public safety. The 35 5 suspension may apply to all end-use consumers or some portion 35 6 of such consumers. The suspension shall continue until the 35 7 board determines the concern has been resolved or until the 35 8 conclusion of the next regular session of the Iowa general 35 9 assembly following the suspension, whichever occurs first. 35 10 5. If nationally recognized bond counsel determines that 35 11 access to a municipal utility's delivery system by a 35 12 competitive electric service provider, or provision of 35 13 competitive electric services by the municipal utility, will 35 14 result in the loss of exemption from federal income taxation 35 15 for interest on debt incurred for electric facilities prior to 35 16 the effective date of this chapter, the governing body of the 35 17 municipal utility may defer the commencement of the option to 35 18 choose competitive electric service in its assigned service 35 19 area for a period of up to six months following the date on 35 20 which the debt is eligible to be currently refunded. The 35 21 reasonable costs of replacing tax-exempt bonds with taxable 35 22 bonds may be collected as a nonbypassable charge. This 35 23 subsection shall not be used to unreasonably impair the 35 24 ability of consumers to choose competitive electric services. 35 25 6. The board may adopt rules for evaluating whether other 35 26 regulated electric services of electric companies subject to 35 27 the jurisdiction of the board should become competitive 35 28 services, in addition to the competitive electric services 35 29 specified in this chapter. For the purpose of this 35 30 subsection, the board's authority shall not include 35 31 distribution service except the control area services subject 35 32 to its jurisdiction. The initial rules shall be proposed by 35 33 June 1, 2002. Upon a board determination that a service 35 34 provided by an electric company is subject to effective 35 35 competition, the board shall deregulate the price of the 36 1 service. Service regulation, but not rate regulation, shall 36 2 continue if the service is deemed essential and the public 36 3 interest requires retention of service regulation. 36 4 Sec. 8. NEW SECTION. 476B.8 PRICE PROTECTIONS FOR 36 5 CERTAIN CONSUMERS. 36 6 1. STANDARD OFFER SERVICE. 36 7 a. (1) A nonresidential end-use consumer using, or 36 8 expected to use, fewer than seventy-five thousand kilowatt- 36 9 hours of electric service annually and a residential end-use 36 10 consumer located within the assigned service area of an 36 11 incumbent provider that is an electric company shall be 36 12 provided electric service by the incumbent provider under this 36 13 subsection commencing October 1, 2002. This service shall be 36 14 provided by the incumbent provider's competitive electric 36 15 service provider or its delivery service provider, at its 36 16 option, and shall be a regulated service. This service shall 36 17 continue until the earlier of any of the following: 36 18 (a) The end-use consumer selects an electric service 36 19 offering other than the one provided in this subsection. 36 20 (b) The end-use consumer no longer qualifies to receive 36 21 service under the terms and conditions of this paragraph "a" 36 22 or the applicable standard offer service tariff or board 36 23 rules. 36 24 (c) January 1, 2009. 36 25 (2) (a) Termination of standard offer service on January 36 26 1, 2009, is conditioned upon the board finding, after a 36 27 contested case proceeding concluding not later than January 1, 36 28 2008, that all of the following conditions exist: 36 29 (i) Transition cost recovery under section 476B.15, 36 30 subsection 1, will have concluded. 36 31 (ii) The delivery service provider substantially complies 36 32 with all applicable board rules governing the administration 36 33 of open access and comparable distribution service adopted 36 34 pursuant to section 476B.9, subsection 2. 36 35 (iii) The delivery service provider has in place an 37 1 enforceable dispute resolution process. 37 2 (iv) Transaction costs assessed by the delivery service 37 3 provider to end-use consumers exercising their option to 37 4 choose competitive electric services are reasonable. 37 5 (b) In addition to the conditions in subparagraph 37 6 subdivision (a), the board must also find that one of the 37 7 following three conditions exists: 37 8 (i) Competitive electric services purchased by end-use 37 9 consumers eligible for standard offer service are subject to 37 10 effective competition in the relevant markets. 37 11 (ii) The incumbent provider has divested its generation 37 12 assets in this state. 37 13 (iii) The incumbent provider's delivery service assets and 37 14 operations that are subject to rate regulation by the board 37 15 are maintained in a legal entity separate from the competitive 37 16 electric service assets and operations, including electric 37 17 generation assets and operations, of the incumbent provider 37 18 and its affiliates, and the incumbent provider has joined or 37 19 committed to join a regional entity accepted by the federal 37 20 energy regulatory commission, or its successor, that operates 37 21 the portion of the delivery system in this state subject to 37 22 federal regulation independently from the wholesale electric 37 23 sales function of the incumbent provider. 37 24 In determining whether a service is or becomes subject to 37 25 effective competition in the relevant markets, the board, in 37 26 addition to other factors, shall consider whether a comparable 37 27 service is available from a competitive electric service 37 28 provider other than the incumbent provider and whether market 37 29 forces are sufficient to assure competitively priced services 37 30 without regulation. 37 31 (3) If the board finds that the required conditions have 37 32 not been satisfied to terminate standard offer service, 37 33 standard offer service shall continue until a showing is made 37 34 by the incumbent provider, and the board determines, that the 37 35 required conditions are satisfied. An incumbent provider 38 1 shall not file for such a determination within six months of a 38 2 previous filing. 38 3 (4) If the board finds that the required conditions to 38 4 terminate standard offer service have been satisfied, the 38 5 provider of the service shall furnish the board with the names 38 6 and addresses of all end-use consumers that would be affected 38 7 by the termination. The information shall be provided within 38 8 thirty days of the board's finding. The board shall notify 38 9 each affected end-use consumer at least twice of the date that 38 10 standard offer service will terminate, and of the need to 38 11 secure another service or competitive electric service 38 12 provider by a specified date. The notice shall advise the 38 13 affected end-use consumer that if another service or 38 14 competitive electric service provider is not secured by the 38 15 consumer by the date specified, the end-use consumer may be 38 16 assigned to another service or competitive electric service 38 17 provider. The costs of the notice required under this 38 18 subparagraph shall be assessed to delivery service providers 38 19 that are electric companies and recovered by them as a charge 38 20 upon unbundled distribution service rates. 38 21 (5) Six months prior to the termination of standard offer 38 22 service, the provider of the service shall provide the board 38 23 with an updated list of the names and addresses of end-use 38 24 consumers still receiving standard offer service. The board 38 25 may request additional information from the provider of 38 26 standard offer service necessary to enable the board to seek 38 27 offers from competitive electric service providers to serve 38 28 the affected end-use consumers. If the board determines that 38 29 a reasonable competitive offer to serve a standard offer 38 30 service consumer that will be affected by the termination of 38 31 standard offer service is not received, the consumer shall be 38 32 transferred to universal service upon the termination of 38 33 standard offer service, even if the affected consumer is a 38 34 nonresidential consumer. 38 35 (6) An end-use consumer has no right to return to standard 39 1 offer service after any of the conditions identified under 39 2 subparagraph (1) occur, except that an end-use consumer having 39 3 selected an electric service offering other than standard 39 4 offer service may return to standard offer service if all of 39 5 the following apply: 39 6 (a) No more than three hundred sixty-five days have passed 39 7 since the consumer left standard offer service. 39 8 (b) The consumer has not previously left and returned to 39 9 standard offer service. 39 10 (c) The consumer is otherwise still qualified to receive 39 11 standard offer service. 39 12 The three-hundred-sixty-five-day period in subparagraph 39 13 subdivision (a) shall not extend the termination date of 39 14 standard offer service. 39 15 b. At the time an incumbent provider that is an electric 39 16 company files its initial unbundled rates with the board 39 17 pursuant to section 476B.4, it shall also file its initial 39 18 standard offer service tariffs under this subsection, which 39 19 shall be subject to review and approval by the board. The 39 20 initial standard offer service tariffs shall reflect the 39 21 electric rates, charges, terms, and conditions of the tariffs 39 22 applicable to nonresidential end-use consumers using fewer 39 23 than seventy-five thousand kilowatt-hours per year and the 39 24 tariffs applicable to residential end-use consumers, as those 39 25 tariffs existed in the rate zones of the incumbent provider's 39 26 assigned service area on the effective date of this chapter, 39 27 adjusted to avoid duplicate recovery of costs to be recovered 39 28 under section 476B.15, subsection 3, costs to be recovered 39 29 under section 476B.16, and the costs projected to be offset by 39 30 section 476B.13. However, the board may approve modifications 39 31 to the terms and conditions of such tariffs existing on the 39 32 effective date of this chapter to the extent just, reasonable, 39 33 and nondiscriminatory. An electric company, to the extent it 39 34 has not already done so, shall eliminate automatic adjustment 39 35 mechanisms in effect pursuant to section 476.6, subsection 11, 40 1 that are applicable to standard offer service rates. 40 2 Elimination shall be accomplished by adjusting the initial 40 3 standard offer service rates to include a representative 40 4 amount of the costs which would have been recovered through 40 5 the mechanisms. If an electric company's nuclear generating 40 6 unit is unavailable for reasons beyond the electric company's 40 7 reasonable control, the electric company may file with the 40 8 board an adjustment reflecting changes in exogenous factors 40 9 beyond the control of the electric company. The board shall 40 10 allow the adjustment to become effective immediately. The 40 11 board shall review the adjustment within thirty days after the 40 12 date the adjustment is effective, and order refunds of the 40 13 revenues resulting from the adjustment if the board determines 40 14 after its review that the nuclear generating unit's 40 15 unavailability was reasonably within the control of the 40 16 electric company. The effective date of the automatic 40 17 adjustment mechanism elimination for standard offer service 40 18 rates shall be October 1, 2002. An electric company may 40 19 retain automatic adjustment mechanisms to the extent the 40 20 mechanisms apply to transitional service under subsection 2. 40 21 c. After January 1, 1999, the board shall not initiate or 40 22 order an increase or a reduction in any of the bundled 40 23 electric rates of an electric company or in the standard offer 40 24 service rates established pursuant to this section except as 40 25 provided in this subsection. However, an incumbent provider 40 26 that is an electric company may reduce its bundled electric 40 27 rates or standard offer service rates at any time, so long as 40 28 such reduction is effected in a nondiscriminatory manner, the 40 29 reduction is filed with the board thirty days prior to the 40 30 proposed effective date of the reduction, and the reduced 40 31 rates are posted on the board's website. The board may hold a 40 32 hearing on the reduction prior to the proposed effective date 40 33 and may suspend the effective date for up to an additional 40 34 sixty days. The board shall approve the reduction unless it 40 35 determines that it is unreasonably discriminatory or would 41 1 constitute predatory pricing as defined by applicable 41 2 antitrust law. A board finding of predatory pricing under 41 3 this paragraph shall be given no weight in any subsequent 41 4 legal action, except with respect to judicial review of the 41 5 board's ruling brought pursuant to section 476B.22. 41 6 d. Commencing January 1, 2003, an incumbent provider that 41 7 is an electric company may increase its standard offer service 41 8 rates to reflect increases in its unbundled distribution 41 9 service rates approved by the board under section 476B.9, 41 10 subsection 5. An incumbent provider that is an electric 41 11 company may also increase its standard offer service rates 41 12 after January 1, 2003, to reflect increases in applicable 41 13 transmission service rates approved by a federal or state 41 14 agency with rate jurisdiction. Standard offer service rates 41 15 incorporating an increase permitted by this paragraph shall be 41 16 filed with the board thirty days prior to becoming effective. 41 17 The increased standard offer service rates shall become 41 18 effective at the conclusion of the thirty-day period unless 41 19 the board determines that the incumbent provider has increased 41 20 standard offer service rates by an amount greater than the 41 21 increase in unbundled distribution service rates or 41 22 transmission service rates, in which case the board may 41 23 suspend the effective date for up to an additional sixty days. 41 24 If the board suspends a filing made pursuant to this 41 25 paragraph, the board shall provide the incumbent provider with 41 26 an opportunity for hearing. 41 27 e. On or before January 1, 2003, an incumbent provider 41 28 that is an electric company may file with the board a 41 29 mechanism to increase or decrease standard offer service rates 41 30 by adjusting the generation component of the rates to or 41 31 toward the market price of competitive power supply services 41 32 that an affected end-use consumer would reasonably be expected 41 33 to pay in the relevant competitive market. The mechanism 41 34 shall be approved by the board if it finds, after hearing, 41 35 that it is in the public interest and is as revenue neutral to 42 1 the incumbent provider as practicable. In determining the 42 2 public interest of the mechanism, the board, in addition to 42 3 other factors, shall consider whether the approval of the 42 4 mechanism would contribute to the development of effective 42 5 competition in the relevant markets. A mechanism approved 42 6 under this paragraph shall not become effective before October 42 7 1, 2003. The board shall determine the market price that the 42 8 affected end-use consumer would reasonably be expected to pay 42 9 in the relevant competitive market. An incumbent provider's 42 10 filing under this paragraph is subject to section 476B.9, 42 11 subsection 5. 42 12 f. On October 1, 2006, the generation component of each 42 13 standard offer service rate shall be adjusted to equal the 42 14 market price for competitive power supply services that the 42 15 affected end-use consumer would pay in the relevant 42 16 competitive market. The provider of standard offer service 42 17 shall be required to acquire competitive power supply services 42 18 in the market for this service, and may bid for the service 42 19 itself. The price of standard offer service shall be adjusted 42 20 to reflect the cost of acquiring that supply. The board shall 42 21 adopt rules to assure competitive pricing under this 42 22 paragraph. 42 23 g. At any time, an incumbent provider that is an electric 42 24 company may file with the board a request to recalculate the 42 25 generation component of its bundled electric rates or standard 42 26 offer service rates to reflect changes in revenues, expenses, 42 27 and investments due to exogenous factors beyond the control of 42 28 the electric company. Such filing is subject to section 42 29 476B.9, subsection 5. 42 30 h. Rates, charges, terms, and conditions in effect under 42 31 this subsection shall be posted on the board's website. 42 32 i. An end-use consumer receiving standard offer service 42 33 under this subsection shall also be billed for applicable 42 34 charges under section 476B.13, section 476B.15, subsection 3, 42 35 and section 476B.16. 43 1 2. TRANSITIONAL SERVICE. 43 2 a. Commencing on October 1, 2002, a nonresidential end-use 43 3 consumer of an incumbent provider that is an electric company 43 4 who purchased seventy-five thousand kilowatt-hours of electric 43 5 service or more from the electric company in 2001 and who has 43 6 not chosen competitive electric services from a competitive 43 7 electric service provider shall receive transitional service 43 8 from the incumbent provider for a period not to exceed one 43 9 year and under tariff provisions approved by the board. On or 43 10 before June 1, 2001, an incumbent provider shall file its 43 11 initial rates, charges, terms, and conditions applicable to 43 12 this transitional service and shall specify the duration for 43 13 which the service will be available. The board shall approve 43 14 transitional service rates, charges, terms, and conditions to 43 15 the extent it determines them to be just and reasonable. The 43 16 filing shall be subject to section 476B.9, subsection 5. The 43 17 rates, charges, terms, conditions, and duration of 43 18 transitional service approved by the board shall be posted on 43 19 the board's website for informational purposes by no later 43 20 than April 1, 2002, and shall become effective October 1, 43 21 2002. 43 22 b. Nothing in this subsection shall preclude a qualifying 43 23 end-use consumer from exercising its option to choose 43 24 competitive electric services from a licensed competitive 43 25 electric service provider at any time, consistent with this 43 26 chapter and applicable board rules. 43 27 c. An end-use consumer receiving transitional service 43 28 under this subsection shall also be billed for applicable 43 29 charges under section 476B.13, section 476B.15, subsection 3, 43 30 and section 476B.16. 43 31 3. UNIVERSAL SERVICE. 43 32 a. The board shall adopt rules establishing the conditions 43 33 with which a residential end-use consumer located in the 43 34 assigned service area of a delivery service provider that is 43 35 an electric company must comply to qualify to receive service 44 1 under this subsection. The rules, at a minimum, shall address 44 2 the rights and remedies to avoid disconnection including, but 44 3 not limited to, payment plans, deposit requirements, and other 44 4 provisions deemed appropriate by the board. The rules shall 44 5 include a requirement that electric service to a residential 44 6 end-use consumer who is the head of the household as defined 44 7 by law and who is eligible for assistance under the programs 44 8 established by section 476B.13, subsection 1, shall not be 44 9 discontinued from November 1 through April 1 except as 44 10 otherwise provided by the board. The board may adopt rules 44 11 prohibiting the use of prepaid meters and load limiters for 44 12 some or all universal service end-use consumers. Prepaid 44 13 meters and load limiters shall not be authorized for use by 44 14 any end-use consumer who is head of the household and who is 44 15 eligible for and receiving assistance pursuant to section 44 16 476B.13, subsection 1. The installation and use of prepaid 44 17 meters or load limiters shall not be used as an eligibility 44 18 criterion for purposes of receipt of benefits under section 44 19 476B.13, subsection 1. The initial rules shall be proposed by 44 20 October 1, 2001. 44 21 b. Prior to the termination of standard offer service, a 44 22 residential end-use consumer who qualifies to receive service 44 23 under the rules adopted pursuant to paragraph "a" and who can 44 24 demonstrate that an effort has been made to secure competitive 44 25 electric service from a competitive electric service provider 44 26 at reasonable terms and conditions, as defined by board rules, 44 27 but has been denied service, or offered service only with the 44 28 use of a prepaid meter or load limiter, or has not been 44 29 offered competitive electric service at reasonable prices, 44 30 terms, and conditions, or who has been determined to qualify 44 31 for assistance under section 476B.13, subsection 1, shall have 44 32 the option to be provided electric service under this 44 33 subsection by such consumer's delivery service provider. The 44 34 board may determine the reasonableness of the prices, terms, 44 35 and conditions of the competitive electric service based upon 45 1 the specific offer made to the end-use consumer or the 45 2 competitive electric service offerings available to the 45 3 consumer group or geographic area in which the affected end- 45 4 use consumer is located. For purposes of this paragraph, the 45 5 board, in determining whether prices, terms, and conditions of 45 6 competitive electric service are reasonable, may consider the 45 7 extent to which the board has found that effective competition 45 8 does not exist for the affected end-use consumer, consumer 45 9 group, or geographic area in the relevant market under 45 10 subsection 1, paragraph "a". Subsequent to the termination of 45 11 standard offer service, this subsection shall apply to an end- 45 12 use consumer taking standard offer service at the date of 45 13 termination. 45 14 c. At the time an electric company files its initial 45 15 unbundled rates with the board pursuant to section 476B.4, the 45 16 electric company shall also file its initial universal service 45 17 tariffs under this subsection, which shall be subject to 45 18 review and approval by the board. Through September 30, 2006, 45 19 the rates for universal service shall generally be the same as 45 20 the residential rates that would be available to the consumer 45 21 from its incumbent provider under subsection 1, including the 45 22 adjustments as specified in that subsection. However, an 45 23 electric company may propose to offer only one universal 45 24 service rate in each rate zone and may propose automatic 45 25 adjustment mechanisms applicable only to rates under this 45 26 subsection. The board shall provide for a portion of the 45 27 costs of collecting past due accounts, including uncollectible 45 28 costs, of universal service to be recovered through the 45 29 unbundled distribution service rates established pursuant to 45 30 section 476B.9, subsection 5. The initial universal service 45 31 rates approved by the board shall be posted on the board's 45 32 website by no later than April 1, 2002, and shall become 45 33 effective October 1, 2002. Beginning October 1, 2006, the 45 34 rates for this service shall be based upon the market prices 45 35 applicable to the type of service received by the consumer, 46 1 adjusted for any state or federal subsidy of the rate paid to 46 2 the delivery service provider. The board may adopt rules, to 46 3 be effective October 1, 2006 that require the delivery service 46 4 provider to acquire competitive power supply services for this 46 5 service. 46 6 d. Section 476B.9, subsection 5, applies to changes in the 46 7 initial universal service tariffs proposed by an electric 46 8 company after the board's approval of the initial tariffs. 46 9 e. Rates, charges, terms, and conditions in effect under 46 10 this subsection shall be posted on the board's website within 46 11 twenty-four hours after becoming effective. 46 12 f. An end-use consumer receiving universal service under 46 13 this subsection shall also be billed for applicable charges 46 14 under section 476B.13, section 476B.15, subsection 3, and 46 15 section 476B.16. 46 16 4. CONSUMER-OWNED UTILITIES. 46 17 a. BASIC ENERGY SERVICE. Delivery service providers with 46 18 an assigned service area that are consumer-owned utilities 46 19 shall offer basic energy services to all end-use consumers 46 20 within their assigned service areas that have not specified a 46 21 competitive electric service provider or are otherwise without 46 22 a competitive electric service provider. Rates, charges, 46 23 terms, and conditions of basic energy services shall be 46 24 established by the local governing body and shall comply with 46 25 section 476B.9, subsection 6. 46 26 b. UNIVERSAL SERVICE. Delivery service providers with an 46 27 assigned service area that are consumer-owned utilities shall 46 28 offer universal service as a type of basic energy service to 46 29 eligible residential end-use consumers who are participating 46 30 in the low-income affordability program under section 476B.13, 46 31 subsection 1, paragraph "d". Such service shall be subject to 46 32 the board's rules adopted pursuant to subsection 3, paragraph 46 33 "a". This service will only be offered to eligible consumers 46 34 for the same period of time this service is offered by 46 35 electric company delivery service providers. Rates associated 47 1 with this service are subject to section 476B.9, subsection 6. 47 2 Sec. 9. NEW SECTION. 476B.9 RESPONSIBILITIES AND RIGHTS 47 3 OF DELIVERY SERVICE PROVIDERS. 47 4 1. RESPONSIBILITIES FOR SAFE, RELIABLE, AND PROMPT 47 5 SERVICE. 47 6 a. A delivery service provider shall furnish safe, 47 7 reliable, and prompt delivery services and facilities. A 47 8 delivery service provider with an assigned service area shall 47 9 maintain within the state those administrative, technical, and 47 10 operating personnel necessary for the provision of safe, 47 11 reliable, and prompt delivery services and facilities. Such 47 12 personnel shall be strategically located by the delivery 47 13 service provider to ensure that end-use consumers receive 47 14 safe, reliable, and prompt service. A delivery service 47 15 provider shall also maintain within the state an office for 47 16 Iowa operations that shall maintain those books, accounts, 47 17 papers, and records deemed necessary by the board to be 47 18 maintained within the state, unless otherwise authorized by 47 19 the board. Nothing in this paragraph requires a consumer- 47 20 owned utility to relocate any delivery service personnel or to 47 21 change the current location of its books, accounts, papers, or 47 22 records. 47 23 b. The board shall have general oversight responsibility 47 24 for delivery service safety requirements and inspection and 47 25 maintenance activities for all delivery service providers. 47 26 The board shall adopt rules for delivery service providers 47 27 that it determines are required for reasonably safe, reliable, 47 28 and prompt delivery service, including rules relating to 47 29 credit practices, collection practices, disconnection 47 30 practices, billing practices, public safety, service 47 31 reliability, quality of service, power quality, preventive 47 32 maintenance standards, line clearance standards, outage 47 33 frequency, outage duration, service restoration, and other 47 34 necessary provisions. The board shall also adopt rules 47 35 regarding distribution service extensions, staffing levels as 48 1 related to outage duration, and the timeliness of service 48 2 installation for delivery service providers that are electric 48 3 companies. In adopting the rules required by this paragraph, 48 4 the board shall give due consideration to weather, terrain, 48 5 public safety, staffing levels, cost, end-use consumer density 48 6 per mile of distribution line, and end-use consumer 48 7 satisfaction. The initial rules shall be proposed by October 48 8 1, 2001. 48 9 c. The board shall adopt rules requiring that delivery 48 10 service providers demonstrate that personnel who will be 48 11 installing, operating, and maintaining the delivery system 48 12 have the requisite skills, knowledge, experience, and training 48 13 to perform those work functions necessary to provide high 48 14 quality, safe, and reliable services. Such demonstration may 48 15 include a showing that applicable personnel have completed an 48 16 accredited or recognized apprenticeship training program for 48 17 the particular skill, trade, or craft. The initial rules 48 18 shall be proposed by October 1, 2001. 48 19 2. OPEN ACCESS AND COMPARABLE DELIVERY SERVICE. 48 20 a. Commencing October 1, 2002, for each delivery service 48 21 provider, unbundled distribution services, and other electric 48 22 services unbundled pursuant to section 476B.4, shall be made 48 23 available to end-use consumers and, if in the assigned service 48 24 area of an electric company, to licensed competitive electric 48 25 service providers, as provided in this chapter and the rules 48 26 adopted by the board to implement this section. Unbundled 48 27 delivery services shall be offered on a nondiscriminatory and 48 28 comparable service basis. 48 29 b. The board may adopt uniform rules for administering 48 30 open access and comparable delivery service including, but not 48 31 limited to, procedures for access to consumer information for 48 32 operational purposes, data transfers, and switching of 48 33 competitive electric service providers by end-use consumers. 48 34 However, the board shall not impose rates upon a consumer- 48 35 owned utility. The rules shall give due consideration to the 49 1 technology available, the administrative and financial burden 49 2 on delivery service providers and competitive electric service 49 3 providers, the objective of reasonable distribution service 49 4 rates, and the objective of nondiscriminatory and comparable 49 5 service. The initial rules shall be proposed by October 1, 49 6 2001. 49 7 c. Delivery service providers shall adopt and implement 49 8 procedures for distribution service line extensions, service 49 9 installations, timeliness of such extensions and 49 10 installations, and for restoring delivery service after 49 11 outages on a nondiscriminatory basis without regard to the 49 12 competitive electric service provider serving the end-use 49 13 consumer. The board has jurisdiction to hear complaints with 49 14 respect to matters under this paragraph brought by any person. 49 15 However, the board shall not impose rates or charges on a 49 16 consumer-owned utility. 49 17 d. If, after notice and opportunity for hearing, the board 49 18 determines that any delivery service provider or control area 49 19 operator is imposing unreasonable or artificial barriers to 49 20 access to any competitive electric service on the delivery 49 21 system, the board shall require the delivery service provider 49 22 or control area operator to take corrective measures, not 49 23 inconsistent with federal law, to the extent necessary and 49 24 feasible to eliminate the barriers to access. However, the 49 25 board shall not impose rates upon a consumer-owned utility. 49 26 The measures ordered by the board may include a requirement 49 27 that the delivery service provider participate in a regional 49 28 entity approved by the federal energy regulatory commission, 49 29 or its successor, that has authority over the portion of the 49 30 delivery system subject to federal regulation independently 49 31 from the wholesale electric sales function of the delivery 49 32 service provider. For the purposes of this paragraph, 49 33 artificial barriers shall not include legislative or 49 34 regulatory actions. 49 35 3. ELIMINATION OF OBLIGATION TO PROVIDE CERTAIN ELECTRIC 50 1 SERVICES. 50 2 a. Except as provided in subsection 7 and sections 476B.8, 50 3 476B.11, and 476B.12, an incumbent provider and a delivery 50 4 service provider shall not have any obligation to provide 50 5 competitive electric services to an end-use consumer that has 50 6 the option to choose competitive electric services. 50 7 b. A delivery service provider or a control area operator 50 8 shall not be liable for any damages to an end-use consumer if 50 9 a competitive electric service provider chosen by the consumer 50 10 fails to fulfill the terms of its contract with the end-use 50 11 consumer. This paragraph shall not be construed to limit the 50 12 liability of a delivery service provider or a control area 50 13 operator for damages caused by its own actions or failure to 50 14 act. 50 15 4. ASSIGNED SERVICE AREAS. 50 16 a. EXCLUSIVE ASSIGNED SERVICE AREAS ESTABLISHED. The 50 17 state has established a system of exclusive assigned service 50 18 areas for electric service pursuant to section 476.25 and in 50 19 effect on January 1, 1999. The service areas shall continue 50 20 to be assigned to the persons to whom such areas were assigned 50 21 on January 1, 1999, or their successors, who shall provide 50 22 bundled electric service to end-use consumers on an exclusive 50 23 basis until the dates when choice is available as specified in 50 24 section 476B.7. On or after the dates when choice is 50 25 available, a person assigned a service area immediately prior 50 26 to the dates when choice is available shall be the delivery 50 27 service provider for the assigned service area unless such 50 28 person designates to the board a different person. A delivery 50 29 service provider shall provide delivery services to end-use 50 30 consumers within its assigned area on an exclusive basis 50 31 pursuant to this chapter. 50 32 b. CLARIFICATION OR MODIFICATION OF BOUNDARIES. 50 33 (1) Consistent with this subsection, the board, on its own 50 34 motion or at the request of a delivery service provider or 50 35 municipal corporation, after notice and opportunity for 51 1 hearing, may clarify or modify the boundaries of an assigned 51 2 service area if it finds that the clarification or 51 3 modification will promote the public interest, preserve 51 4 existing assigned service areas and the delivery service 51 5 providers' right to serve existing end-use consumers, prevent 51 6 unnecessary duplication of facilities, provide adequate 51 7 delivery service to all assigned service areas and end-use 51 8 consumers affected, and promote the efficient and economical 51 9 use and development of the electric delivery system. 51 10 (2) An agreement between delivery service providers to 51 11 designate assigned service areas and end-use consumers or to 51 12 clarify or modify assigned service areas to be served by the 51 13 delivery service providers or for the exchange of end-use 51 14 consumers between delivery service providers shall be 51 15 submitted to the board for review. The agreement, when 51 16 approved by the board, is valid and enforceable and shall be 51 17 incorporated into the appropriate assigned service areas 51 18 established pursuant to this subsection. The board shall 51 19 approve an agreement if the board finds the agreement 51 20 satisfies the criteria set forth in subparagraph (1). 51 21 (3) If a delivery service provider declines to enter into 51 22 an agreement to designate an assigned service area or end-use 51 23 consumers, or to clarify or modify an assigned service area, 51 24 an aggrieved person may petition the board to order such a 51 25 designation, clarification, or modification on the grounds 51 26 that the proposed designation, clarification, or modification 51 27 will promote the public interest, preserve existing service 51 28 areas and the delivery service providers' right to serve 51 29 existing end-use consumers, prevent unnecessary duplication of 51 30 facilities, provide adequate delivery service to all assigned 51 31 service areas and end-use consumers affected, and promote the 51 32 efficient and economical use and development of the electric 51 33 delivery system. If the board finds that the petition meets 51 34 the foregoing standards, the board shall order the 51 35 designation, clarification, or modification on such terms and 52 1 conditions as it finds just and reasonable. 52 2 c. LIMIT ON BYPASS. Except with the written approval of 52 3 the affected delivery service provider and the board, a person 52 4 shall not provide or offer to provide delivery service to an 52 5 end-use consumer in an assigned service area assigned to 52 6 another delivery service provider, or construct delivery 52 7 service facilities in an assigned service area assigned to 52 8 another delivery service provider to serve an end-use consumer 52 9 in such assigned service area. This paragraph does not 52 10 preclude an end-use consumer from constructing, or having 52 11 constructed, on real estate which the end-use consumer owns or 52 12 leases, distribution service facilities for the exclusive 52 13 purpose of meeting the end-use consumer's own electric service 52 14 requirements, as long as such facilities are constructed 52 15 entirely within the boundaries of such real estate and, as a 52 16 consequence of constructing such facilities, will not allow 52 17 that end-use consumer to avoid nonbypassable charges or reduce 52 18 the value of facilities dedicated to that end-use consumer for 52 19 which the delivery service provider would not be compensated. 52 20 With respect to matters subject to the board's jurisdiction, a 52 21 person may file a complaint with the board regarding a 52 22 violation of this paragraph. Upon finding a violation, the 52 23 board shall order appropriate corrective action including 52 24 discontinuance of the unlawful service, removal of the 52 25 unlawful facility, compensation for lost margin, or other 52 26 disposition commensurate with the injury suffered. A petition 52 27 for franchise filed by a municipal utility pursuant to section 52 28 478.2 for facilities used to connect the utility to the 52 29 transmission grid shall not be limited by this paragraph. 52 30 d. CERTIFICATES OF AUTHORITY. A municipal corporation, 52 31 after being authorized by a vote of the people, or any 52 32 delivery service provider may file a petition with the board 52 33 requesting a certificate of authority to furnish delivery 52 34 service to the existing point of delivery of any end-use 52 35 consumer already receiving delivery service. If, after thirty 53 1 days have elapsed following notice by the board to the person 53 2 currently serving the end-use consumer, objection to the 53 3 petition is not filed and investigation is not deemed 53 4 necessary, the board shall issue a certificate. If an 53 5 objection is filed, and the board, after notice and 53 6 opportunity for hearing, determines that delivery service to 53 7 the end-use consumer by the petitioner should be granted, the 53 8 board shall grant a certificate in whole or in part, upon such 53 9 terms, conditions, and restrictions as may be justified. In 53 10 determining whether a proposal should be granted, the board 53 11 shall consider the factors set forth in paragraph "b", 53 12 subparagraph (1). Whether or not an objection is filed, a 53 13 certificate issued shall require that the petitioner pay to 53 14 the person presently serving the end-use consumer the 53 15 reasonable price for the facilities serving the end-use 53 16 consumer as determined by the board. A price determination by 53 17 the board shall include due consideration of all of the 53 18 following: 53 19 (1) The value of the facilities being acquired. 53 20 (2) Any penalties, buyout costs, or other costs associated 53 21 with any commitments to generating and transmission capacity 53 22 on behalf of the departing consumers or to support the 53 23 delivery service facilities being acquired. 53 24 (3) Projected loss of revenue and its impact on remaining 53 25 end-use consumers of the affected provider. 53 26 (4) The cost of any facilities necessary to reintegrate 53 27 the system of the delivery service provider after detaching 53 28 the portion sold. 53 29 e. OBLIGATION TO EXTEND DELIVERY SERVICE FACILITIES. A 53 30 delivery service provider that has been assigned an exclusive 53 31 delivery service area pursuant to this subsection shall extend 53 32 delivery service facilities to all end-use consumers within 53 33 its assigned service area as provided in this chapter. The 53 34 board shall adopt rules for electric companies setting forth 53 35 the terms and conditions of delivery service facility 54 1 extensions for electric companies and shall issue proposed 54 2 rules by no later than October 1, 2001. 54 3 f. DELIVERY SERVICE AREA MAPS. Whenever requested by the 54 4 board, delivery service providers shall file with the board, 54 5 jointly or severally, detailed maps of their assigned service 54 6 areas drawn to a scale specified by the board showing all of 54 7 the following: 54 8 (1) The locations of franchised transmission lines, 54 9 distribution lines, and related facilities. 54 10 (2) All state and federal highways and other public roads 54 11 within the delivery service area. 54 12 (3) All section lines and numbers, and township and range 54 13 numbers within the delivery service area. 54 14 (4) The corporate boundaries of all cities within the 54 15 delivery service area. 54 16 (5) All lakes and rivers within the delivery service area. 54 17 (6) All railroads within the delivery service area. 54 18 (7) The number, classifications, training levels, and 54 19 locations of personnel involved in installing, operating, and 54 20 maintaining delivery services and facilities. 54 21 (8) Any additional information requested by the board. 54 22 If deemed by the board to be necessary, the board shall 54 23 prepare or cause to have prepared a composite map of this 54 24 state showing the delivery service areas. The form and detail 54 25 of all maps shall be determined by the board. 54 26 g. EXCEPTION. Notwithstanding contrary provisions of this 54 27 section, a delivery service provider may extend delivery 54 28 service facilities and provide delivery service outside its 54 29 assigned service area to its own utility property and 54 30 facilities. 54 31 h. RIGHTS OF CITIES. If not inconsistent with this 54 32 chapter, the rights of cities under chapters 362 through 390 54 33 are preserved. 54 34 However, prior to the institution of condemnation 54 35 proceedings under chapter 6B, a city shall obtain a 55 1 certificate of authority from the board as provided in 55 2 paragraph "d" and the board's determination of price shall be 55 3 conclusive evidence of damages in these condemnation 55 4 proceedings. 55 5 i. EFFECT OF INCORPORATION, ANNEXATION, OR CONSOLIDATION. 55 6 The inclusion by incorporation, annexation, or consolidation 55 7 of any facilities or service area of a person with an 55 8 exclusive assigned service area within the boundaries of any 55 9 city shall not by such inclusion impair or affect in any 55 10 respect the rights of the delivery service provider to 55 11 continue to provide delivery services and to extend service to 55 12 prospective end-use consumers in accordance with this chapter. 55 13 5. DELIVERY SERVICE RATE REGULATION FOR ELECTRIC 55 14 COMPANIES. A delivery service provider that is also an 55 15 electric company shall file, post, and maintain applicable 55 16 unbundled rates in accordance with this subsection and section 55 17 476B.4. The board shall regulate the rates, charges, 55 18 schedules, and regulations for distribution services and other 55 19 services unbundled pursuant to section 476B.4, subsection 1, 55 20 and provided by delivery service providers that are electric 55 21 companies. The burden of establishing the reasonableness of 55 22 rates, charges, schedules, and regulations is upon the 55 23 delivery service provider. 55 24 a. FILING WITH BOARD. Except as provided in paragraphs 55 25 "g" and "i", a delivery service provider that is an electric 55 26 company shall not make effective a new or changed distribution 55 27 service rate, charge, schedule, or regulation or other 55 28 unbundled rate, charge, schedule, or regulation subject to the 55 29 jurisdiction of the board until the rate, charge, schedule, or 55 30 regulation has been approved by the board. Notwithstanding 55 31 anything in this chapter to the contrary, if an application 55 32 for a new or changed rate or charge is filed with the board 55 33 and posted on its website, and if affected competitive 55 34 electric service providers and end-use consumers have the 55 35 option to select or not select such rate or charge, the rate 56 1 or charge shall become effective within ten business days 56 2 after filing. The board, within ten business days after the 56 3 filing, may docket the filing and suspend the rate or charge, 56 4 either upon the filing of a written objection or on its own 56 5 motion, but the board shall not suspend the rate or charge for 56 6 more than ninety days from the date the tariff was filed. 56 7 b. LIMITATIONS ON FILING. A delivery service provider 56 8 that is an electric company shall not make a subsequent filing 56 9 of an application for a new or changed rate, charge, schedule, 56 10 or regulation which relates to the same rate, charge, 56 11 schedule, or regulation for which a filing is pending within 56 12 twelve months following the date the prior application was 56 13 filed or until the board has issued a final order on the prior 56 14 application, whichever date is earlier, unless the delivery 56 15 service provider applies to the board for authority to make a 56 16 subsequent filing at an earlier date and such application is 56 17 approved by the board. 56 18 c. WRITTEN NOTICE OF INCREASE. A delivery service 56 19 provider that is an electric company shall give written notice 56 20 of a proposed increase of a distribution service rate or 56 21 charge or other unbundled rate or charge subject to the 56 22 jurisdiction of the board to all affected competitive electric 56 23 service providers and end-use consumers receiving service 56 24 under board-approved tariffs or with whom the delivery service 56 25 provider has distribution service contracts, whether or not 56 26 written, prior to the time the application for the increase is 56 27 filed with the board. The notice shall state that the 56 28 competitive electric service provider or end-use consumer has 56 29 a right to file a written objection to the rate increase and 56 30 may request the board to hold a public hearing to determine if 56 31 the increase should be allowed. The board shall adopt rules 56 32 prescribing the timing, manner, and method of serving the 56 33 written notice. The board may adopt rules regarding 56 34 notification of other end-use consumers that may be affected 56 35 by a proposed increase. The initial rules shall be proposed 57 1 by December 1, 2001. 57 2 d. FACTS AND ARGUMENTS SUBMITTED. At the time an 57 3 application for any new or changed rate, charge, schedule, or 57 4 regulation is filed with the board, the delivery service 57 5 provider shall submit factual evidence and written argument 57 6 offered in support of the filing. If the application proposes 57 7 an increase in distribution service rates, the delivery 57 8 service provider shall also file testimonial evidence in 57 9 support of the filing. 57 10 e. HEARING SET. After the filing of an application by a 57 11 delivery service provider for a new or changed rate, charge, 57 12 schedule, or regulation subject to the jurisdiction of the 57 13 board, the board, prior to the expiration of thirty days after 57 14 the filing date, shall docket the case as a formal proceeding 57 15 and set the case for hearing unless the new or changed rate, 57 16 charge, schedule, or regulation is approved by the board. If 57 17 an application presents no material issue of fact subject to 57 18 dispute, and the board determines that the application 57 19 violates a relevant statute, or is not in substantial 57 20 compliance with a board rule, the application may be rejected 57 21 by the board without prejudice and without a hearing, provided 57 22 that the board issues a written order setting forth all of its 57 23 reasons for rejecting the application. The board shall give 57 24 notice of formal proceedings as it deems appropriate. Except 57 25 as provided in paragraphs "g" and "i", the docketing of a case 57 26 as a formal proceeding suspends the effective date of the new 57 27 or changed rate, charge, schedule, or regulation until the 57 28 rate, charge, schedule, or regulation is approved by the 57 29 board. 57 30 f. UTILITY HEARING EXPENSES REPORTED. If a case has been 57 31 docketed as a formal proceeding, the delivery service provider 57 32 shall file with the board a report outlining the expected 57 33 expenses for litigating the case through the period allowed by 57 34 the board in rendering a final decision. Within ten days 57 35 after the conclusion of the delivery service provider's 58 1 presentation of comments, testimony, or briefs, the delivery 58 2 service provider shall submit to the board a listing of the 58 3 delivery service provider's actual litigation expenses in the 58 4 proceeding, excluding costs to be billed by the board and the 58 5 consumer advocate. As part of the findings of the board, the 58 6 board shall allow recovery of all reasonable costs of the 58 7 litigation, including all costs billed by the board and the 58 8 consumer advocate, over a reasonable period of time. 58 9 g. DISTRIBUTION SERVICE RATES AND CHARGES. Distribution 58 10 service rates and charges and other unbundled rates and 58 11 charges shall be based upon a cost of service method, 58 12 performance-based incentives, or such other method of 58 13 ratemaking as the board deems just and reasonable. If cost of 58 14 service is used for establishing a component of unbundled 58 15 rates, the method used to determine class cost of service, to 58 16 the maximum extent practicable, should permit identification 58 17 of cost differences attributable to variations in demand, 58 18 energy, voltage delivery level, customer components of costs, 58 19 and other factors. This chapter does not prohibit a delivery 58 20 service provider from making provision for the automatic 58 21 adjustment of a distribution service rate or charge or other 58 22 rate or charge subject to the jurisdiction of the board, 58 23 provided that a tariff setting forth the mechanism for 58 24 automatic adjustment of a rate or charge is first filed with 58 25 and approved by the board. Notice of such filing to end-use 58 26 consumers and competitive electric service providers receiving 58 27 service under board-approved tariffs or with whom the delivery 58 28 service provider has distribution service contracts, whether 58 29 or not written, shall be required, but adjustments pursuant to 58 30 an approved mechanism shall not require further notice. The 58 31 board may adopt rules regarding notification of other end-use 58 32 consumers that may be affected by the automatic adjustment 58 33 mechanism. 58 34 The board, in determining the value of materials or 58 35 services to be included in valuations or costs of operations 59 1 for ratemaking purposes, may disallow any unreasonable profit 59 2 made in the sale of materials to or services supplied for any 59 3 delivery service provider by a firm or corporation owned or 59 4 controlled directly or indirectly by such delivery service 59 5 provider or any affiliate, subsidiary, parent company, 59 6 associate, or any corporation whose controlling stockholders 59 7 are also controlling stockholders of such delivery service 59 8 provider. The burden of proof is on the delivery service 59 9 provider to prove that no unreasonable profit is made. 59 10 h. FINDING BY BOARD. If, after hearing and decision on 59 11 all issues presented for determination in the rate proceeding, 59 12 the board finds the proposed rate, charge, schedule, or 59 13 regulation to be unlawful or not just and reasonable, the 59 14 board shall, by order, authorize and direct the delivery 59 15 service provider to file a new or changed rate, charge, 59 16 schedule, or regulation which, when approved by the board and 59 17 placed in effect, will satisfy the requirements of this 59 18 chapter. A rate, charge, schedule, or regulation so approved 59 19 is lawful and effective upon its approval. 59 20 i. TEMPORARY AUTHORITY. Upon the request of a delivery 59 21 service provider, the board, when required by this paragraph, 59 22 shall grant temporary authority to place in effect any or all 59 23 of a suspended rate, charge, schedule, or regulation. A 59 24 delivery service provider shall file with the board a bond or 59 25 other undertaking approved by the board conditioned upon the 59 26 refund in a manner to be prescribed by the board of any 59 27 amounts collected in excess of the amounts which would have 59 28 been collected under a rate, charge, schedule, or regulation 59 29 finally approved by the board. In determining that portion of 59 30 the new or changed rate, charge, schedule, or regulation to be 59 31 placed into effect prior to a final decision, the board shall 59 32 apply previously established regulatory principles and, at a 59 33 minimum, shall permit rates and charges which will allow the 59 34 delivery service provider the opportunity to earn a return on 59 35 common stock equity equal to that which the board held 60 1 reasonable and just in the most recent rate case involving 60 2 electric or distribution service. However, if the most recent 60 3 final decision of the board in an applicable rate case was 60 4 rendered more than twelve months prior to the date of filing 60 5 of the request for temporary rates, the board, in addition, 60 6 shall consider financial market data that is filed or that is 60 7 otherwise available to the board and shall adjust the rate of 60 8 return on common stock equity that was approved in that 60 9 decision upward or downward as necessary to reflect current 60 10 conditions. The board shall render a decision on a request 60 11 for temporary authority within ninety days after the date of 60 12 filing of the request. The decision shall be effective 60 13 immediately. If the board has not rendered a final decision 60 14 with respect to a suspended rate, charge, schedule, or 60 15 regulation upon the expiration of ten months after the filing 60 16 date, plus the length of any delay that necessarily results 60 17 either from the failure of the delivery service provider to 60 18 exercise due diligence in connection with the proceedings or 60 19 from intervening judicial proceedings, the portion of the 60 20 rate, charge, schedule, or regulation that was approved by the 60 21 board on a temporary basis shall be deemed finally approved by 60 22 the board and the delivery service provider may place that 60 23 portion of the rate, charge, schedule, or regulation into 60 24 effect on a permanent basis, and also may place into effect 60 25 subject to refund and until the final decision of the board 60 26 any portion of the suspended rate, charge, schedule, or 60 27 regulation not previously approved on a temporary basis by 60 28 filing with the board a bond or other undertaking approved by 60 29 the board. 60 30 The board shall determine the rate of interest to be paid 60 31 by a delivery service provider to persons receiving refunds. 60 32 j. INVESTIGATIONS. If a written request is filed with the 60 33 board by any person or body politic, or filed by the board 60 34 upon its own motion, requesting the board to determine the 60 35 reasonableness of a distribution service rate, charge, 61 1 schedule, or regulation or other unbundled rate, charge, 61 2 schedule, or regulation subject to the jurisdiction of the 61 3 board, or anything done or omitted to be done in contravention 61 4 of this chapter by a delivery service provider that is an 61 5 electric company, the written complaint shall be forwarded by 61 6 the board to the delivery service provider, which shall be 61 7 called upon to satisfy the complaint or to answer it in 61 8 writing within a reasonable time to be specified by the board. 61 9 Copies of the written complaint forwarded by the board to the 61 10 delivery service provider and copies of all correspondence 61 11 from the delivery service provider in response to the 61 12 complaint shall be provided by the board in an expeditious 61 13 manner to the consumer advocate. If the board determines the 61 14 delivery service provider's response is inadequate and there 61 15 appears to be any reasonable ground for investigating the 61 16 complaint, the board shall promptly initiate a formal 61 17 proceeding. If the consumer advocate determines the delivery 61 18 service provider's response to the complaint is inadequate, 61 19 the consumer advocate may file a petition with the board which 61 20 shall promptly initiate a formal proceeding if the board 61 21 determines that there is any reasonable ground for 61 22 investigating the complaint. The complainant or the delivery 61 23 service provider also may petition the board to initiate a 61 24 formal proceeding, which petition shall be granted if the 61 25 board determines that there is any reasonable ground for 61 26 investigating the complaint. A formal proceeding may be 61 27 initiated at any time by the board on its own motion. If a 61 28 formal proceeding is initiated, the board shall set the case 61 29 for hearing and give notice as it deems appropriate. If the 61 30 board, after a hearing held after reasonable notice, finds a 61 31 delivery service provider's rate, charge, schedule, or 61 32 regulation subject to the jurisdiction of the board is unjust, 61 33 unreasonable, discriminatory, or otherwise in violation of any 61 34 law, the board shall determine a just, reasonable, and 61 35 nondiscriminatory rate, charge, schedule, or regulation to be 62 1 observed and enforced. 62 2 k. RATE COMPLAINTS BY CONSUMER ADVOCATE. If the consumer 62 3 advocate files a complaint with the board alleging that a 62 4 delivery service provider's regulated rates are excessive, the 62 5 disputed amount shall be specified in the petition. The board 62 6 shall promptly initiate a formal proceeding if it determines 62 7 that there is any reasonable ground for investigating the 62 8 complaint. If the board determines to initiate a formal 62 9 proceeding, the delivery service provider, within the time 62 10 prescribed by the board, shall file a bond or undertaking 62 11 approved by the board conditioned upon the refund in a manner 62 12 prescribed by the board of amounts collected after the date of 62 13 filing of the petition in excess of a rate or charge finally 62 14 determined by the board to be lawful. If after hearing the 62 15 board finds that the delivery service provider's regulated 62 16 rates are unlawful or not just and reasonable, the board shall 62 17 order a refund, with interest, of amounts collected after the 62 18 date of filing of the petition that are determined to be in 62 19 excess of the amounts which would have been collected under 62 20 the rates finally approved. However, the board shall not 62 21 order a refund that is greater than the amount specified in 62 22 the petition, plus interest, and if the board fails to render 62 23 a decision within ten months following the date of filing of 62 24 the petition, the board shall not order a refund of any excess 62 25 amounts that are collected after the expiration of that ten- 62 26 month period and prior to the date the decision is rendered. 62 27 l. PROSPECTIVE EFFECT. A determination by the board of a 62 28 distribution service rate or charge or another unbundled rate, 62 29 charge, schedule, or regulation pursuant to paragraph "i" or 62 30 "j" that is based upon a variance from previously established 62 31 regulatory principles shall apply prospectively from the date 62 32 of the decision. 62 33 m. RULES GOVERNING HEARINGS. The board shall adopt rules 62 34 to provide for the completion of proceedings under this 62 35 subsection within ten months after the date of the filing of 63 1 the application or complaint. The rules shall include 63 2 reasonable time limitations for the submission or completion 63 3 of comments, testimony, exhibits, briefs, and hearings, which 63 4 the board may extend upon the request of a party to the 63 5 proceeding for good cause shown. Additional time granted to a 63 6 party shall not extend the amount of time for which a delivery 63 7 service provider is required to file a bond or other 63 8 undertaking. If additional time is granted, the board may 63 9 extend the ten-month period during which a delivery service 63 10 provider is prohibited from placing its entire rate increase 63 11 request into effect, but an extension shall not exceed the 63 12 aggregate amount of all additional time granted under this 63 13 paragraph. The initial rules shall be proposed by December 1, 63 14 2001. 63 15 n. CONSIDERATION OF CURRENT INFORMATION. The board shall 63 16 adopt rules that require the board in rate proceedings under 63 17 this subsection to consider the use of the most current test 63 18 period possible in determining reasonable and just rates, 63 19 subject only to the availability of existing and verifiable 63 20 data with respect to costs and revenues, and in addition to 63 21 consider verifiable data that exist as of the filing date of 63 22 the application or complaint with respect to known and 63 23 measurable changes in costs not associated with a different 63 24 level of revenue, and known and measurable revenues not 63 25 associated with a different level of costs, that are to occur 63 26 at any time within twelve months after the date of the filing. 63 27 This paragraph shall not limit the authority of the board to 63 28 consider other evidence in proceedings under this subsection. 63 29 The initial rules shall be proposed by December 1, 2001. 63 30 o. TARIFFS POSTED. A rate, charge, schedule, term, 63 31 condition, or regulation applicable to distribution service or 63 32 other unbundled service that has been approved by the board or 63 33 is otherwise in effect pursuant to this subsection shall be 63 34 posted on the board's website within twenty-four hours after 63 35 being placed into effect. 64 1 p. ACCOUNTS RENDERED TO THE BOARD. 64 2 (1) A delivery service provider that is an electric 64 3 company shall keep and render to the board, in the manner and 64 4 form prescribed by rules of the board, uniform accounts of all 64 5 business transacted. 64 6 (2) A delivery service provider that is an electric 64 7 company and that is engaged directly or indirectly in any 64 8 other business than that of the provision of delivery services 64 9 to the public, if required by rules adopted by the board, 64 10 shall keep and render separately to the board in like manner 64 11 and form the accounts of all such other business, in which 64 12 case this subsection shall apply to the books, accounts, 64 13 papers, and records of such other business and all profits and 64 14 losses may be taken into consideration by the board if deemed 64 15 relevant to the general fiscal condition of the delivery 64 16 service provider. 64 17 (3) A delivery service provider that is an electric 64 18 company is required to keep and render its books, accounts, 64 19 papers, and records accurately and faithfully in the manner 64 20 and form prescribed by rules of the board, and to comply with 64 21 all directions of the board relating to such books, accounts, 64 22 papers, and records. 64 23 (4) The board shall consult with other state and federal 64 24 regulatory bodies for the purpose of eliminating accounting 64 25 discrepancies with regard to the keeping of accounts before 64 26 prescribing any system of account to be kept by a delivery 64 27 service provider. The initial rules shall be proposed by 64 28 December 1, 2001. 64 29 q. JURISDICTION OVER DELIVERY SERVICE PROVIDERS. The 64 30 jurisdiction and powers of the board shall extend as provided 64 31 in this chapter to a delivery service business of an electric 64 32 company operating within this state to the full extent 64 33 permitted by the Constitution and laws of the United States. 64 34 r. AUDIT OF DELIVERY SERVICE OPERATIONS. The board shall 64 35 adopt rules to administer a program for the continuous review 65 1 of operations of a delivery service provider that is an 65 2 electric company with respect to all matters that affect rates 65 3 or charges for delivery service. The initial rules shall be 65 4 proposed by December 1, 2001. 65 5 s. LOBBYING COSTS. A delivery service provider that is an 65 6 electric company is prohibited from including either directly 65 7 or indirectly the costs of lobbying in the charges or rates 65 8 subject to the jurisdiction of the board. 65 9 t. LEGAL COSTS. Legal costs and attorney fees incurred by 65 10 a delivery service provider that is an electric company in a 65 11 judicial review proceeding in state or federal court involving 65 12 the validity of any action of the board shall not be included 65 13 either directly or indirectly in the charges or rates subject 65 14 to the jurisdiction of the board except to the extent that 65 15 recovery of legal costs and attorney fees is allowed by the 65 16 board. The board shall allow recovery of the reasonable legal 65 17 costs and attorney fees incurred in judicial review. The 65 18 board may consider the degree of success of the legal 65 19 arguments of the delivery service provider in determining the 65 20 reasonable legal costs and attorney fees to be allowed. 65 21 u. ADVERTISING. Except as provided in this paragraph, a 65 22 delivery service provider that is an electric company shall 65 23 not include either directly or indirectly in the charges or 65 24 rates subject to the jurisdiction of the board the costs of 65 25 advertising other than advertising regarding public safety or 65 26 advertising that is required by the board or by any other 65 27 state or federal regulation. However, this restriction does 65 28 not apply to advertising which is deemed by the board to be in 65 29 the public interest and which is approved by the board. 65 30 An advertisement which is published, broadcast, or 65 31 otherwise displayed or disseminated to the public by a 65 32 delivery service provider that is an electric company, the 65 33 costs of which will be included in the rates or charges 65 34 subject to the jurisdiction of the board and which is not 65 35 public safety advertising or advertising required by the board 66 1 or by other state or federal regulation, shall include a 66 2 statement in the advertisement that the costs of the 66 3 advertisement are being charged to the users of delivery 66 4 service. This paragraph does not apply to a delivery service 66 5 provider's product or service that is or becomes subject to 66 6 competition as determined by the board. 66 7 v. ANNUAL REPORTS OF DELIVERY SERVICE PROVIDERS. The 66 8 board shall adopt rules prescribing the form and content of an 66 9 annual report to be filed with the board by a delivery service 66 10 provider, other than a consumer-owned utility. The board 66 11 shall review annual reports submitted pursuant to the rules. 66 12 The board may commence rate-review proceedings under this 66 13 chapter for an electric company if an annual report indicates 66 14 that its earnings are excessive. The initial rules shall be 66 15 proposed by December 1, 2001. 66 16 6. DELIVERY SERVICE RATE REGULATION FOR CONSUMER-OWNED 66 17 UTILITIES. 66 18 a. LOCAL REGULATION. The rates for delivery service and 66 19 other unbundled services provided by a consumer-owned utility 66 20 and all other matters not specifically reserved to the board 66 21 by statute shall be regulated by the consumer-owned utility's 66 22 local governing body. An election made pursuant to section 66 23 476.1A by the board of directors or the membership of an 66 24 electric cooperative corporation or association to have the 66 25 cooperative's rates regulated by the board is rescinded 66 26 effective June 1, 2000. 66 27 b. POSTING. Rates, terms, and conditions of applicable 66 28 distribution services and other unbundled services provided by 66 29 a consumer-owned utility shall be posted on the board's 66 30 website. Any change in rates, terms, or conditions shall be 66 31 posted no less than twenty-four hours prior to becoming 66 32 effective. 66 33 c. NOTICE OF CHANGES. A consumer-owned utility shall give 66 34 written notice of any proposed increase in delivery service 66 35 rates or charges or other unbundled rates or charges to all 67 1 applicable and directly affected end-use consumers and 67 2 competitive electric service providers at least thirty days 67 3 prior to the effective date of the increase. 67 4 d. DISCRIMINATION PROHIBITED. A consumer-owned utility 67 5 shall not make or grant to any person any unreasonable 67 6 preference or advantage as to delivery service rates, 67 7 services, terms, or conditions or subject any person to 67 8 unreasonable prejudice or disadvantage. This paragraph shall 67 9 not be construed to prohibit a municipal utility from 67 10 providing preferential rates, terms, or conditions of services 67 11 to any department or function of municipal government pursuant 67 12 to section 384.91. 67 13 e. DISPUTES. The district court has original jurisdiction 67 14 concerning disputes with respect to the distribution service 67 15 rates and charges and other unbundled service rates of a 67 16 consumer-owned utility and all other matters concerning a 67 17 consumer-owned utility not specifically reserved to the board 67 18 by this chapter or another statute. 67 19 f. ANNUAL REPORTS OF CONSUMER-OWNED DELIVERY SERVICE 67 20 PROVIDERS. The board shall adopt rules prescribing the form 67 21 and content of an annual report to be filed with the board by 67 22 a consumer-owned delivery service provider. The initial rules 67 23 shall be proposed by December 1, 2001. 67 24 7. CONTROL AREA OPERATIONS. 67 25 a. REGULATORY JURISDICTION. A rate, charge, term, and 67 26 condition of distribution services provided within the state 67 27 by a control area operator that is an electric company is 67 28 subject to subsection 5 and to regulation by the board except 67 29 to the extent such rate, charge, term, or condition is subject 67 30 to the exclusive jurisdiction of the federal energy regulatory 67 31 commission or another federal agency. Distribution services 67 32 may include load profiling, financial settlement, distribution 67 33 system scheduling, and ancillary services to the extent not 67 34 subject to exclusive federal jurisdiction. The board shall 67 35 approve rates, charges, terms, conditions, and processes for 68 1 load profiling and financial settlement that are just, 68 2 reasonable, and nondiscriminatory. The board shall adopt 68 3 rules governing the filing and posting of control area 68 4 operator's services, rates, charges, terms, conditions, and 68 5 processes subject to its jurisdiction and changes in such 68 6 services, rates, charges, terms, conditions, and processes. 68 7 The initial rules shall be proposed by October 1, 2000. 68 8 b. NOTICE TO BOARD OF DEFAULT. If a control area operator 68 9 becomes aware that a competitive electric service provider has 68 10 substantially failed to schedule energy for two consecutive 68 11 twenty-four-hour periods, failed to deliver energy scheduled 68 12 with or committed to the control area operator for two 68 13 consecutive twenty-four-hour periods, or has otherwise 68 14 substantially defaulted upon its obligations to or agreements 68 15 with the control area operator, the control area operator 68 16 shall notify the board and the affected delivery service 68 17 provider of such occurrence as soon as practicable. A control 68 18 area operator shall use reasonable commercial efforts to 68 19 provide power supply services on an emergency basis to end-use 68 20 consumers if a competitive electric service provider defaults. 68 21 However, notwithstanding subsection 3, paragraph "b", a 68 22 control area operator shall not be liable to an end-use 68 23 consumer for failure to provide emergency power supply 68 24 services. 68 25 The board shall adopt rules addressing the failure of a 68 26 competitive electric service provider to comply with the 68 27 terms, conditions, and obligations of control area services. 68 28 The rules shall provide for finding a replacement competitive 68 29 electric service provider or competitive electric service 68 30 providers to serve the end-use consumers of the defaulting 68 31 competitive electric service provider as soon as feasible in 68 32 order to eliminate the burden on the control area operator to 68 33 provide power supply services for such consumers. The rules 68 34 shall include a provision for the board or an entity 68 35 designated by the board to notify affected end-use consumers 69 1 if a need exists for the end-use consumers to select a new 69 2 competitive electric service provider. The rules shall also 69 3 include a provision that permits a control area operator to 69 4 recover all reasonable costs incurred by the control area 69 5 operator in remedying the competitive electric service 69 6 provider's failure and providing service to the end-use 69 7 consumers of the competitive electric service provider to the 69 8 extent the competitive electric service provider fails to pay 69 9 such costs. The initial rules shall be proposed by October 1, 69 10 2000. 69 11 8. STANDARDS OF CONDUCT. 69 12 a. DELIVERY SERVICE PROVIDERS. No later than April 1, 69 13 2002, each delivery service provider shall post on the board's 69 14 website standards of conduct, to be effective October 1, 2002, 69 15 that require the delivery service provider to do all of the 69 16 following: 69 17 (1) Apply all tariff provisions in a nondiscriminatory and 69 18 comparable service manner to similarly situated persons. 69 19 (2) Process requests for delivery service in a 69 20 nondiscriminatory manner. 69 21 (3) Make available any distribution service discounts, 69 22 rebates, or waiver of fees on a nondiscriminatory basis to all 69 23 similarly situated persons. 69 24 (4) Comply with section 476B.6, subsection 5, paragraph 69 25 "k". 69 26 (5) Deny to any competitive electric service provider 69 27 preferential access to information related to the distribution 69 28 of electricity which is not otherwise made publicly available, 69 29 except information regarding the competitive electric service 69 30 provider's own end-use consumers. 69 31 (6) Not represent that any advantages accrue to end-use 69 32 consumers or others in the use of the delivery service 69 33 provider's services as a result of that end-use consumer or 69 34 others dealing with any particular competitive electric 69 35 service provider. 70 1 (7) Establish a complaint procedure applicable to the 70 2 standards of conduct, and process and resolve complaints in 70 3 accordance with such procedure. 70 4 (8) Develop written agreements with generating plant 70 5 operators as needed to maintain distribution system 70 6 reliability. 70 7 (9) Abide by the applicable federal energy regulatory 70 8 commission standards of conduct when providing delivery 70 9 service subject to the jurisdiction of the federal energy 70 10 regulatory commission. 70 11 (10) Take reasonable steps to keep its delivery system in 70 12 operation in emergency circumstances affecting system 70 13 reliability. 70 14 (11) Prohibit discrimination in the extension or repair of 70 15 the delivery system facilities. 70 16 (12) If the delivery service provider is an electric 70 17 company, maintain separate books, records, and accounts for 70 18 distribution service operations. If the delivery service 70 19 provider is a consumer-owned utility, maintain records in such 70 20 a manner as to enable delivery service data to reasonably be 70 21 separated from data that do not pertain to delivery services. 70 22 (13) With respect to distribution service and control area 70 23 operator employees engaged in receiving requests from a 70 24 competitive electric service provider for reservation or 70 25 scheduling of energy over the distribution system, prohibit 70 26 the sharing of such employees with a competitive electric 70 27 service provider and physically separate such employees from a 70 28 competitive electric service provider. 70 29 A consumer-owned utility shall not be required to comply 70 30 with subparagraph (13), but shall be required to comply with 70 31 paragraph "b", subparagraph (7), with respect to employees 70 32 engaged in receiving requests from a competitive electric 70 33 service provider for reservation or scheduling of energy over 70 34 the delivery system. 70 35 The board shall review any posting of an electric company 71 1 and, if it concludes there are reasonable grounds to do so, 71 2 may hold a hearing to determine if the standards comply with 71 3 this subsection. 71 4 b. CONTROL AREA OPERATORS. No later than April 1, 2002, 71 5 each control area operator that engages in retail electric 71 6 sales within a control area, either directly or through its 71 7 own corporate structure or an affiliate, shall post on the 71 8 board's website standards of conduct, to be effective October 71 9 1, 2002, that require the control area operator to do all of 71 10 the following: 71 11 (1) Disclose tariff information to users of the control 71 12 area and apply all tariff provisions on a nondiscriminatory 71 13 basis to similarly situated persons. 71 14 (2) If the control area operator is an electric company, 71 15 maintain separate books of accounts and financial records from 71 16 any competitive electric service provider. If the control 71 17 area operator is a consumer-owned utility, maintain records in 71 18 such a manner as to enable control area service data to 71 19 reasonably be separated from other data. 71 20 (3) Prohibit the tying of the provision of any control 71 21 area services to the selection of any particular competitive 71 22 electric service provider or the selection of a product or 71 23 service from any particular competitive electric service 71 24 provider. 71 25 (4) Deny a competitive electric service provider 71 26 preferential access to information related to control area 71 27 operations which is not otherwise made publicly available, 71 28 except with respect to information regarding the competitive 71 29 electric service provider's own end-use consumers. 71 30 (5) Solicit, from time to time, competitive bids for 71 31 ancillary services, to the extent not inconsistent with any 71 32 applicable federal requirements. 71 33 (6) Administer energy balancing and financial settlement 71 34 performed by the control area in a nondiscriminatory manner. 71 35 (7) Develop and administer a method for maintaining the 72 1 integrity of proprietary and confidential information. 72 2 (8) Develop and post on the board's website a system for 72 3 reporting declared emergencies. However, a control area 72 4 operator shall not declare an emergency situation for the 72 5 purpose of unreasonably discriminating against any other 72 6 person. 72 7 The board shall review the posting of standards of conduct 72 8 of an electric company and, if it concludes there are 72 9 reasonable grounds to do so, may hold a hearing to determine 72 10 if the standards comply with the provisions of this 72 11 subsection. 72 12 c. INFORMATIONAL FILING AND ADDITIONAL STANDARDS FOR 72 13 ELECTRIC COMPANIES. A delivery service provider or control 72 14 area operator that is an electric company shall submit to the 72 15 board such information as the board may require in order to 72 16 evaluate the actual effectiveness of the standards of conduct 72 17 in fulfilling the purposes of this chapter. The board, upon 72 18 its own motion or upon receipt of a complaint from any person 72 19 alleging a violation of the standards of conduct, may 72 20 investigate a delivery service provider's or control area 72 21 operator's compliance with the standards of conduct. In 72 22 addition, the board may add new standards of conduct by rule, 72 23 if it determines the existing standards are not sufficient to 72 24 ensure open access and comparable and nondiscriminatory 72 25 service. 72 26 9. ADHERENCE TO SCHEDULES. A delivery service provider 72 27 shall not directly or indirectly charge a greater compensation 72 28 for its services than that prescribed in its tariffs, and a 72 29 delivery service provider shall not make or grant any 72 30 unreasonable preferences or advantages as to rates, charges, 72 31 or services to any person, or subject any person to any 72 32 unreasonable prejudice or disadvantage. 72 33 10. AFFILIATES OF DELIVERY SERVICE PROVIDERS. 72 34 a. Except as provided in this section or as otherwise 72 35 approved by the board, a delivery service provider that is an 73 1 electric company shall not directly or indirectly include in 73 2 regulated rates or charges any costs or expenses of an 73 3 affiliate engaged in any business other than delivery service 73 4 unless the affiliate provides goods or services to the 73 5 delivery service provider in accordance with rules adopted 73 6 pursuant to this subsection. Any costs included in regulated 73 7 rates or charges shall be reasonably necessary and appropriate 73 8 for the delivery service business. 73 9 b. A delivery service provider that is an electric company 73 10 shall only provide regulated services in a manner that 73 11 minimizes the possibility of cross-subsidization of 73 12 unregulated services and unfair competitive advantage and 73 13 shall provide services as described in subsection 11 only in a 73 14 manner that minimizes the possibility of cross-subsidization 73 15 or unfair competitive advantage. 73 16 c. A delivery service provider that is an electric company 73 17 shall keep and render to the board upon request delivery 73 18 service records and records pertaining to services as 73 19 described in subsection 11 separate from affiliates or 73 20 operations that do not provide delivery service. 73 21 d. For a delivery service provider that is an electric 73 22 company, the board, for delivery service ratemaking purposes, 73 23 may inquire as to and prescribe the allocation of 73 24 capitalization, earnings, debts, shared corporate services, 73 25 and expenses related to ownership, operation, or management of 73 26 affiliates. 73 27 e. Not later than January 15, 2001, the board shall 73 28 propose rules identifying those services that may be shared 73 29 between a delivery service provider or control area operator 73 30 that is an electric company and an affiliated competitive 73 31 electric service provider. Such rules shall not prevent a 73 32 delivery service provider or control area operator from using 73 33 the following shared corporate services, even when shared with 73 34 an affiliated competitive electric service provider: 73 35 corporate oversight; governance; administrative services, 74 1 including travel administration, security, printing, graphics, 74 2 custodial services, secretarial support, mail services and 74 3 records management; financial management services, including 74 4 accounting, treasury, internal audit, tax and financial 74 5 reporting and planning; data processing; shareholder services; 74 6 strategic corporate planning; human resources; employee 74 7 benefits; regulatory services; legal services; lobbying; and 74 8 nonmarket research and development activities. Such rules 74 9 shall not prevent a delivery service provider or control area 74 10 operator from using such shared corporate services even when 74 11 shared with an affiliated competitive electric service 74 12 provider. This paragraph shall not be construed to limit the 74 13 authority of the board to determine the amount of shared 74 14 corporate service costs, if any, to be included in regulated 74 15 rates for distribution service and other unbundled services 74 16 under section 476B.4 and this section. 74 17 f. A contract or arrangement providing for the furnishing 74 18 or receiving of goods and services between a delivery service 74 19 provider that is an electric company and an affiliate shall be 74 20 filed with the board in a time frame established by rule of 74 21 the board. The initial rules shall be proposed by December 1, 74 22 2001. 74 23 g. A contract or arrangement for the purchase, sale, 74 24 lease, or exchange of any property, right, or thing between a 74 25 delivery service provider that is an electric company and any 74 26 affiliate shall be filed with the board in a time frame 74 27 established by rule by the board. The initial rules shall be 74 28 proposed by December 1, 2001. 74 29 h. A contract or arrangement providing for a loan of money 74 30 or an extension or renewal of a loan of money or any similar 74 31 transaction between a delivery service provider that is an 74 32 electric company and an affiliate, whether as guarantor, 74 33 endorser, surety, or otherwise, shall be filed with the board 74 34 in a time frame established by rule of the board. The initial 74 35 rules shall be proposed by December 1, 2001. 75 1 i. A contract or agreement filed pursuant to paragraph 75 2 "f", "g", or "h" and determined by the board to be a 75 3 confidential record pursuant to section 22.7 shall be 75 4 available for review by an interested party under rules 75 5 protecting the confidentiality of the contract or agreement as 75 6 adopted by the board. The initial rules shall be proposed by 75 7 December 1, 2001. The contract or agreement shall be returned 75 8 to the delivery service provider filing the confidential 75 9 record within sixty days after the contract or agreement is 75 10 filed. 75 11 j. The board shall adopt rules excluding from the filing 75 12 requirements of paragraphs "f", "g", and "h", the filing of a 75 13 contract or agreement for a transaction with an affiliate 75 14 where the amount of consideration involved does not exceed a 75 15 threshold level of annual distribution and transmission 75 16 revenues of the delivery service provider. The initial rules 75 17 to be adopted pursuant to this paragraph shall be proposed by 75 18 December 1, 2001. 75 19 k. In a proceeding involving the rates, charges, or 75 20 practices of a delivery service provider that is an electric 75 21 company, the board may exclude from rates or charges any 75 22 unreasonable payment or compensation to an affiliate made 75 23 pursuant to a contract or arrangement whether or not filed 75 24 under this subsection. For ratemaking purposes, the board may 75 25 exclude the payment of compensation to an affiliate or adjust 75 26 the revenue received from an affiliate associated with any 75 27 contract or arrangement required to be filed with the board if 75 28 the contract or arrangement is not so filed. 75 29 l. The board has the same jurisdiction over modification 75 30 of or amendment to a contract or arrangement filed under this 75 31 subsection as it has over the original contracts or 75 32 arrangements. A modification of or amendment to a contract or 75 33 arrangement shall also be filed in a time frame as determined 75 34 by the board. 75 35 m. The board shall consult with other state and federal 76 1 regulatory agencies for the purpose of eliminating duplicate 76 2 or conflicting filing requirements and may adopt rules which 76 3 provide that comparable information required to be filed with 76 4 other state or federal regulatory agencies may be accepted by 76 5 the board in lieu of information required by this subsection. 76 6 n. The board may adopt rules or issue orders which exempt 76 7 a class of contracts or arrangements from this subsection, or 76 8 waive the requirements of this subsection if the board finds 76 9 that the exemption or waiver is in the public interest. 76 10 o. The board may periodically retain a nationally or 76 11 regionally recognized independent auditing firm to conduct an 76 12 audit of the transactions between a delivery service provider 76 13 that is an electric company and its affiliates to investigate 76 14 compliance with this subsection. An affiliate transaction 76 15 audit shall not be conducted more frequently than twelve 76 16 months after the conclusion of the most recently completed 76 17 audit, unless ordered by the board for good cause after notice 76 18 and opportunity for hearing. The cost of the audit shall be 76 19 paid by the delivery service provider to the independent 76 20 auditing firm and shall be included in its regulated rates and 76 21 charges, unless otherwise ordered by the board for good cause 76 22 after providing the delivery service provider the opportunity 76 23 for a hearing. 76 24 p. A delivery service provider that is a consumer-owned 76 25 utility shall keep and render to the board upon request 76 26 delivery service records in a manner as to enable delivery 76 27 service data to reasonably be separated from affiliates' data. 76 28 This subsection shall not be construed to authorize the board 76 29 to impose rates on a consumer-owned utility. Information 76 30 rendered to the board pursuant to this paragraph and 76 31 determined by the board to be a confidential record pursuant 76 32 to section 22.7 shall be returned to the delivery service 76 33 provider rendering the confidential record within sixty days 76 34 after rendering the confidential record or at the end of the 76 35 investigation or proceeding. Except as provided in this 77 1 subsection, a consumer-owned delivery service provider shall 77 2 not directly or indirectly include in delivery service rates 77 3 or charges any costs or expenses of an affiliate engaged in 77 4 any business other than delivery service unless the affiliate 77 5 provides goods and services to the delivery service provider. 77 6 Any costs included in rates or charges shall be reasonably 77 7 necessary and appropriate for the delivery service business, 77 8 and shall be market priced and directly related to such goods 77 9 or services in a manner that avoids cross-subsidization or 77 10 unfair competitive advantage. 77 11 11. CROSS-SUBSIDIZATION PROHIBITED. A delivery service 77 12 provider that is an electric company shall not directly or 77 13 indirectly include in distribution service rates or charges 77 14 any costs or expenses attributable to the sale, lease, or 77 15 other conveyance of commercial and residential electric 77 16 appliances, interior lighting systems or fixtures, or electric 77 17 heating, ventilating, or air conditioning systems and 77 18 component parts, or the servicing, repair, or maintenance of 77 19 such equipment. Except for contracts existing as of July 1, 77 20 1996, a delivery service provider that is an electric company, 77 21 or its affiliate, shall not use the delivery service 77 22 provider's vehicles, service tools and instruments, or 77 23 employees, the costs, salaries, or benefits of which are 77 24 recoverable in regulated rates for distribution service, to do 77 25 either of the following: 77 26 a. Install, service, or repair residential or commercial 77 27 electric heating, ventilating, or air conditioning systems, or 77 28 interior lighting systems and fixtures. 77 29 b. Sell at retail electric heating, ventilating, air 77 30 conditioning, or interior lighting equipment. 77 31 For purposes of this subsection, "commercial" means a place 77 32 of business primarily used for the storage or sale, at 77 33 wholesale or retail, of goods, wares, services, or 77 34 merchandise, as well as a nonprofit institution and a business 77 35 office. This subsection shall not be construed to prohibit a 78 1 delivery service provider from using its vehicles, service 78 2 tools and instruments, and employees to market its systems, 78 3 services, and equipment or to eliminate an emergency or threat 78 4 to public safety. 78 5 12. REORGANIZATION OF DELIVERY SERVICE PROVIDERS THAT ARE 78 6 ELECTRIC COMPANIES. 78 7 a. For purposes of this subsection, "reorganization" means 78 8 any of the following: 78 9 (1) The acquisition, sale, lease, or any other 78 10 disposition, directly or indirectly, including by merger or 78 11 consolidation, of the whole or any substantial part of the 78 12 regulated delivery service assets of an incumbent provider 78 13 that is an electric company. This includes a sale, lease, or 78 14 other disposition, directly or indirectly, including, but not 78 15 limited to, a transfer of control, of delivery service 78 16 facilities subject to federal regulation as part of an 78 17 incumbent provider's participation in a regional entity 78 18 accepted by the federal energy regulatory commission, or its 78 19 successor, that operates the portion of the delivery system in 78 20 this state subject to federal regulation independently from 78 21 the wholesale electric sales function of the incumbent 78 22 provider. 78 23 (2) Until January 1, 2009, the sale of any ownership 78 24 interest in a generation unit, the costs of which have been 78 25 included in regulated retail electric rates, by an incumbent 78 26 provider that is an electric company to any person. After 78 27 January 1, 2009, this subsection 12 shall not apply to this 78 28 type of transaction. 78 29 (3) The purchase or other acquisition or sale or other 78 30 disposition of the controlling capital stock of any delivery 78 31 service provider that is an electric company, either directly 78 32 or indirectly. 78 33 (4) Notwithstanding subparagraphs (1) through (3), a 78 34 transaction that results in an incumbent provider that is an 78 35 electric company maintaining its delivery service assets and 79 1 operations subject to rate regulation by the board in a legal 79 2 entity separate from the competitive electric service assets 79 3 and operations, including electric generation assets and 79 4 operations, of the incumbent provider and its affiliates is 79 5 subject to the following: 79 6 (a) If the transaction is filed with the board as part of 79 7 the initial unbundled distribution service rate review 79 8 proceeding under section 476B.4, the incumbent provider is not 79 9 required to comply with this subsection, including 79 10 satisfaction of the criteria in paragraph "d". 79 11 (b) If the transaction is not filed with the board as part 79 12 of the initial unbundled distribution service rate review 79 13 proceeding under section 476B.4, the incumbent provider shall 79 14 file sufficient information with the board to determine 79 15 whether the transaction will result in regulated distribution 79 16 rates that are just, reasonable, and nondiscriminatory and 79 17 shall also file sufficient information for the board's 79 18 consideration under paragraph "d", subparagraph (5). 79 19 Under subparagraph subdivisions (a) and (b), a delivery 79 20 service provider must demonstrate that it will comply with 79 21 applicable standards of conduct. A board finding that 79 22 authorizes a transaction under subparagraph subdivision (a) or 79 23 (b) shall provide the incumbent provider a reasonable period 79 24 of time to consummate the transaction. The period of time may 79 25 be extended by the board for good cause. 79 26 b. A reorganization shall not take place unless the board 79 27 approves. Prior to reorganization, an applicant shall file 79 28 with the board a proposal for reorganization with supporting 79 29 testimony and evidence addressing the items specified in 79 30 paragraph "d". 79 31 c. A proposal for reorganization shall be approved or 79 32 disapproved within ninety days after its filing. However, the 79 33 board may extend the time for its decision by no more than an 79 34 additional ninety-day period for good cause. The board shall 79 35 provide for notice and opportunity for hearing on the 80 1 proposal. The notice of hearing shall be provided no later 80 2 than fifty days after the proposal for reorganization has been 80 3 filed. 80 4 d. In its review of a proposal for reorganization, the 80 5 board shall consider all of the following: 80 6 (1) Whether the board will have reasonable access to 80 7 books, records, documents, and other information relating to 80 8 the delivery service provider or any affiliates with which the 80 9 delivery service provider has contracts. 80 10 (2) Whether the delivery service provider's ability to 80 11 attract capital on reasonable terms, including the maintenance 80 12 of a reasonable capital structure, is impaired. 80 13 (3) Whether the ability of the delivery service provider 80 14 to provide safe, reasonable, and adequate delivery service is 80 15 impaired. 80 16 (4) Whether users of the delivery service are 80 17 detrimentally affected. 80 18 (5) Whether the public interest is detrimentally affected, 80 19 including, but not limited to, whether the proposed 80 20 reorganization is likely to have a significant adverse effect 80 21 on competition in this state. 80 22 (6) Whether the delivery service provider has shown that 80 23 it will maintain within the state those administrative, 80 24 technical, and operating personnel necessary for the provision 80 25 of reasonably safe, reliable, and prompt delivery services and 80 26 facilities, and that such personnel shall be strategically 80 27 located by the delivery service provider to ensure that end- 80 28 use consumers receive safe, reliable, and prompt service. 80 29 e. The board may adopt rules or issue orders which exempt 80 30 a class of reorganization from this subsection if the board 80 31 finds, with respect to the class of reorganization, that 80 32 review is not necessary in the public interest. The board may 80 33 waive any or all of the requirements of this subsection, if 80 34 the board finds that board review is not necessary in the 80 35 public interest. 81 1 f. In approving any proposed reorganization pursuant to 81 2 this subsection, the board may impose such terms, conditions, 81 3 or requirements as in its judgment are necessary to protect 81 4 the financial and operational integrity of the delivery 81 5 service provider. 81 6 13. JOINT ADVERTISING PROHIBITED. 81 7 a. No later than October 1, 2002, a delivery service 81 8 provider that is an electric company shall use a name that is 81 9 distinct from any affiliated competitive electric service 81 10 provider. An affiliated competitive electric service provider 81 11 may use any name and logo of its choosing, including that of 81 12 the incumbent provider or parent company. The board shall 81 13 determine whether the name of the delivery service provider is 81 14 distinct from any affiliated competitive electric service 81 15 provider. Except as provided in rules adopted by the board, 81 16 the delivery service provider shall not identify its 81 17 affiliation with a competitive electric service provider or 81 18 the parent of a competitive electric service provider either 81 19 through a tag line or other means, except that a common logo 81 20 may be used. 81 21 b. A delivery service provider or a control area operator 81 22 of an electric company shall neither jointly advertise nor 81 23 jointly market its services or products with an affiliated 81 24 competitive electric service provider. However, this 81 25 subsection does not preclude a delivery service provider from 81 26 having joint meetings and contacts with end-use consumers and 81 27 competitive electric service providers, including affiliated 81 28 competitive electric service providers, for legitimate 81 29 business purposes. The board shall adopt rules regarding such 81 30 meetings and purposes. The initial rules shall be proposed by 81 31 January 15, 2001. 81 32 Sec. 10. NEW SECTION. 476B.10 RESPONSIBILITIES AND 81 33 RIGHTS OF COMPETITIVE ELECTRIC SERVICE PROVIDERS. 81 34 1. GENERAL. The responsibilities and rights of a licensed 81 35 competitive electric service provider include those specified 82 1 in this section and elsewhere in this chapter. 82 2 2. RESPONSIBILITIES AND RIGHTS. 82 3 a. A competitive electric service provider may do any of 82 4 the following: 82 5 (1) To the extent permitted by its license, offer and 82 6 enter into contracts to provide competitive electric services 82 7 to end-use consumers. 82 8 (2) Purchase delivery services from a delivery service 82 9 provider that is an electric company to sell to end-use 82 10 consumers, subject to this chapter and any applicable delivery 82 11 service tariffs and board rules. 82 12 (3) Purchase delivery services from a delivery service 82 13 provider that is a consumer-owned utility at the discretion of 82 14 the consumer-owned utility and subject to the terms and 82 15 conditions of the consumer-owned utility. 82 16 (4) Consistent with the rules adopted pursuant to section 82 17 476B.6, subsection 5, require a money deposit from an end-use 82 18 consumer as a condition of service, with any deposit so 82 19 required becoming part of the contract between the end-use 82 20 consumer and the competitive electric service provider. 82 21 (5) Bill for services in accordance with section 476B.12. 82 22 (6) With the agreement of an end-use consumer, install, 82 23 own, maintain, and read a meter in accordance with section 82 24 476B.11. 82 25 b. A competitive electric service provider shall do all of 82 26 the following: 82 27 (1) Comply with all applicable environmental, safety, and 82 28 service standards. 82 29 (2) Be able to demonstrate the truth of any claim that it 82 30 makes to end-use consumers regarding types of fuel used to 82 31 produce energy. 82 32 (3) Pay a delivery service provider for services provided 82 33 and charges assessed to a competitive electric service 82 34 provider or to an end-use consumer for whom the competitive 82 35 electric service provider has agreed to assume payment 83 1 responsibility, without regard to whether the competitive 83 2 electric service provider receives payment from the end-use 83 3 consumer. 83 4 (4) Pay a delivery service provider for services provided 83 5 to an end-use consumer and charges assessed to an end-use 83 6 consumer for which the delivery service provider has 83 7 authorized the competitive electric service provider to bill 83 8 and collect, without regard to whether the competitive 83 9 electric service provider receives payment from the end-use 83 10 consumer. 83 11 (5) If requested, provide to each delivery service 83 12 provider, schedules and schedule changes submitted for 83 13 deliveries to the delivery service provider at the same time 83 14 that they are submitted to the control area operator. 83 15 (6) If operating generating facilities in Iowa or offering 83 16 metering installation, meter maintenance, or meter reading 83 17 services within Iowa, perform these activities in a prompt, 83 18 safe, and reliable manner; maintain within the state those 83 19 administrative, technical, and operating personnel necessary 83 20 for the provision of reasonably safe, reliable, and prompt 83 21 generation and metering services and facilities; and 83 22 demonstrate that personnel involved in installing, operating, 83 23 and maintaining generating facilities or electric meters and 83 24 metering equipment have the requisite skills, knowledge, 83 25 experience, and training to perform those work functions 83 26 necessary to provide high-quality, safe, reliable, and prompt 83 27 services. Such demonstration may include a showing that 83 28 applicable personnel have completed an accredited or 83 29 recognized apprenticeship training program for the particular 83 30 skill, trade, or craft. This subparagraph shall only apply to 83 31 a competitive electric service provider that is a consumer- 83 32 owner utility to the extent that it provides competitive 83 33 electric service outside its assigned service area. 83 34 c. A competitive electric service provider shall not be 83 35 required to provide individual end-use consumer information, 84 1 including metering information, to other competitive electric 84 2 service providers. 84 3 d. This chapter is not intended to affect the activities 84 4 of a licensed competitive electric service provider in the 84 5 provision of goods and services other than the sale of 84 6 competitive electric services at retail in this state. 84 7 e. The board shall not regulate the rates or charges of 84 8 competitive electric services of or a competitive electric 84 9 service provider with the exception of the rates or charges 84 10 for standard offer service under section 476B.8, subsection 1. 84 11 f. Commencing on October 1, 2002, a licensed competitive 84 12 electric service provider, on a semiannual basis unless the 84 13 frequency of publication is otherwise extended by the board, 84 14 shall provide to each end-use consumer to whom it sells 84 15 electric energy a fuel and associated emissions disclosure 84 16 statement for the known sources of electric energy sold to the 84 17 consumer. The board shall adopt rules governing the form and 84 18 content of the disclosure statement by October 1, 2001. The 84 19 board's rules shall be designed to provide adequate 84 20 information to consumers about their sources of electricity, 84 21 disclose the amount of energy purchased by consumers from 84 22 renewable resources, and minimize transaction costs and 84 23 administrative burdens on licensed competitive electric 84 24 service providers. The disclosure shall be made available to 84 25 the board and the division of energy and geological resources 84 26 of the department of natural resources, or its successor, for 84 27 inclusion on their websites. 84 28 3. COMMUNITY CHOICE. On or after October 1, 2007, a city 84 29 may serve as a buying agent or aggregator on behalf of end-use 84 30 consumers within its jurisdiction. Such service shall be 84 31 conditioned on satisfaction of all of the following: 84 32 a. The city must adopt an ordinance or resolution 84 33 specifying the conditions applicable to the aggregation 84 34 process. 84 35 b. A city may group end-use consumers to solicit bids, 85 1 brokers, and contracts for the acquisition of competitive 85 2 electric services and other related energy services for 85 3 consumers. Such service agreements may be entered into by a 85 4 single city or by a group of cities. 85 5 c. A majority of the voters within a city must approve 85 6 community choice in a referendum. Prior to the referendum, 85 7 the city must make available information regarding the purpose 85 8 of the community choice program and any known terms and 85 9 conditions of enrollment, including whether an end-use 85 10 consumer will be automatically enrolled in the program if the 85 11 consumer does not choose another competitive electric service 85 12 provider or choose to receive service pursuant to section 85 13 476B.8, subsection 4. 85 14 d. Upon approval of the referendum, a city shall complete 85 15 a plan of operation and governance for review by its citizens. 85 16 The plan must ensure that all end-use consumers participating 85 17 in the community choice program will be served by a licensed 85 18 competitive electric service provider. The plan shall be 85 19 posted on the board's website. 85 20 e. A city completing a plan shall hold at least two public 85 21 hearings on the plan. Before the first hearing, the city 85 22 shall publish notice of the hearings pursuant to chapter 362. 85 23 The notice shall summarize the plan and state the date, time, 85 24 and location of each hearing. 85 25 f. The city shall fully inform participating end-use 85 26 consumers in advance of automatic enrollment that they are to 85 27 be automatically enrolled and that they have the right to 85 28 elect not to participate in the community choice program 85 29 without penalty. The disclosure shall prominently state the 85 30 rates, charges, and other terms and conditions of enrollment. 85 31 End-use consumers under contract to a competitive electric 85 32 service provider or who have chosen to receive service 85 33 pursuant to section 476B.8, subsection 4, shall not be 85 34 automatically enrolled in the community choice program. 85 35 g. From the date the first disclosure is mailed stating 86 1 the rates, charges, and other terms and conditions of 86 2 enrollment, such program shall allow an end-use consumer a 86 3 number of calendar days specified in the disclosure to elect 86 4 not to participate and to choose any other competitive 86 5 electric service provider or choose to receive service 86 6 pursuant to section 476B.8, subsection 4. 86 7 h. Participation by an end-use consumer in the community 86 8 choice program is voluntary. An end-use consumer 86 9 participating in the program must comply with the terms and 86 10 conditions of the community choice program. 86 11 This subsection does not preclude a city from becoming a 86 12 licensed aggregator under section 476B.6, subsection 4, and 86 13 soliciting voluntary participation by end-use consumers in an 86 14 aggregation group. 86 15 Sec. 11. NEW SECTION. 476B.11 METERING AND METER 86 16 INFORMATION. 86 17 1. An existing meter owned by an incumbent provider shall 86 18 remain the property of the delivery service provider. 86 19 2. A delivery service provider shall install, own, and 86 20 maintain metering as deemed necessary by the delivery service 86 21 provider. However, this chapter shall not be construed to 86 22 require a delivery service provider to provide, install, own, 86 23 or maintain meters that are not necessary for the purpose of 86 24 providing delivery service. 86 25 3. A delivery service provider or a control area operator 86 26 shall not require interval metering as a condition for 86 27 residential end-use consumers and nonresidential end-use 86 28 consumers using fewer than seventy-five thousand kilowatt- 86 29 hours annually to exercise the option to choose competitive 86 30 services. 86 31 4. A meter owned by the delivery service provider shall be 86 32 installed by that delivery service provider regardless of the 86 33 location of the meter. 86 34 5. An end-use consumer may install metering not owned by 86 35 the delivery service provider on the consumer's side of the 87 1 main disconnect, subject to the reasonable connection 87 2 requirements of the delivery service provider and the rules of 87 3 the board. The end-use consumer is subject to the board's 87 4 rules regarding standards, installation, maintenance, and 87 5 testing of meters used for billing if the end-use consumer 87 6 chooses to own the meter. The delivery service provider may 87 7 disconnect electric service at such meter subject to board 87 8 rules. 87 9 6. An end-use consumer or such consumer's competitive 87 10 electric service provider may request that metering and 87 11 associated hardware be installed on the electric facilities of 87 12 the delivery service provider or on the delivery service 87 13 provider's side of the main disconnect, to enable the consumer 87 14 to take advantage of competitive service offerings. The meter 87 15 and associated hardware shall comply with applicable board 87 16 rules, and the costs of the meter shall be borne by the end- 87 17 use consumer or the competitive electric service provider. 87 18 The installation of the meter and associated hardware shall be 87 19 performed by the delivery service provider in accordance with 87 20 its requirements and the rules of the board. The delivery 87 21 service provider may charge a reasonable, cost-based fee for 87 22 the installation. The delivery service provider shall have 87 23 reasonable discretion in prescribing the location and 87 24 necessary connection equipment for the installation of meters 87 25 and associated hardware under this subsection. 87 26 7. If the meter will be owned by the end-use consumer or 87 27 the competitive electric service provider and will be 87 28 installed on the end-use consumer's side of the main 87 29 disconnect, the delivery service provider may offer to, but is 87 30 not required to, install the meter. 87 31 8. The board shall adopt rules relating to metering 87 32 practices, including, but not limited to, installation of 87 33 meters, uniform metering standards and practices, master 87 34 metering availability and related billing practices, 87 35 inspection and testing programs, accuracy requirements, data 88 1 transmission protocols, load profiling, and maintenance of 88 2 meter reading records. In addition, the board shall require a 88 3 competitive electric service provider and an end-use consumer 88 4 owning a meter to provide meter access to the delivery service 88 5 provider for disconnections, and may require a presence for 88 6 meter testing. The initial rules shall be proposed by October 88 7 1, 2001. 88 8 9. A person is entitled to read meters that the person 88 9 owns. A delivery service provider is entitled to reasonable 88 10 access to any meters connected to the delivery service 88 11 provider's system without regard to ownership. A competitive 88 12 electric service provider is responsible for obtaining the 88 13 meter information necessary to bill such provider's end-use 88 14 consumers. With the consent of the end-use consumer, a 88 15 competitive electric service provider serving the end-use 88 16 consumer is entitled to reasonable access to read any meters 88 17 owned by the delivery service provider on the end-use 88 18 consumer's premises for this purpose. 88 19 10. A delivery service provider is not required to read 88 20 meters but, to the extent such provider does so, the delivery 88 21 service provider shall make the meter information needed for 88 22 billing available to a competitive electric service provider 88 23 serving the metered premises. A delivery service provider may 88 24 assess the competitive electric service provider a reasonable 88 25 charge for making such information available to the 88 26 competitive electric service provider. 88 27 11. To avoid unnecessary reading of an end-use consumer's 88 28 meter, a competitive electric service provider responsible for 88 29 meter information gathering shall make end-use consumer usage 88 30 information needed for billing and financial settlement 88 31 available to the delivery service provider at a charge if the 88 32 competitive electric service provider so chooses. It shall 88 33 also make necessary information available to the control area 88 34 operator serving the metered premises. 88 35 Sec. 12. NEW SECTION. 476B.12 BILLING. 89 1 1. Subject to subsections 3 and 4, a delivery service 89 2 provider and a control area operator may bill an end-use 89 3 consumer and a competitive electric service provider for the 89 4 services each provides. A delivery service provider or a 89 5 control area operator shall not be required to bill for 89 6 services provided by a competitive electric service provider 89 7 except as provided in subsection 3, but either may do so at 89 8 its option for a cost-based charge. 89 9 2. A competitive electric service provider may bill an 89 10 end-use consumer for services it provides, subject to section 89 11 476B.6, subsection 3, and other applicable provisions of this 89 12 chapter and board rules. 89 13 3. An end-use consumer receiving delivery service from an 89 14 electric company is entitled to request a single consolidated 89 15 bill for competitive electric services, delivery services, and 89 16 control area services. Unless otherwise agreed by the 89 17 affected service providers, such consolidated billing is the 89 18 responsibility of the competitive electric service provider 89 19 selling competitive billing services. 89 20 4. An end-use consumer receiving delivery service from a 89 21 consumer-owned utility shall receive a bill from the consumer- 89 22 owned utility for services rendered and a bill from the 89 23 competitive electric service provider for competitive electric 89 24 services, unless otherwise agreed to by the affected service 89 25 providers. Any consolidated billing for an end-use consumer 89 26 receiving delivery service from a consumer-owned utility shall 89 27 be the responsibility of the consumer-owned utility, unless 89 28 otherwise agreed to by the consumer-owned utility and affected 89 29 competitive electric service providers. If a delivery service 89 30 provider that is a consumer-owned utility provides all billing 89 31 services for its associated licensed competitive electric 89 32 service provider function within its assigned service area, 89 33 such consumer-owned utility shall provide comparable service 89 34 within its assigned service area for all other competitive 89 35 electric service providers. 90 1 5. Not later than October 1, 2000, the board shall propose 90 2 rules related to billing services consistent with this 90 3 chapter. Except as provided in this chapter, the board shall 90 4 not restrict a delivery service provider or a control area 90 5 operator from contracting with a competitive electric service 90 6 provider to provide or receive billing services. 90 7 Sec. 13. NEW SECTION. 476B.13 SYSTEM BENEFIT PROGRAMS. 90 8 1. LOW-INCOME AFFORDABILITY AND ENERGY EFFICIENCY 90 9 PROGRAMS. 90 10 a. PURPOSE. For purposes of this subsection, "division" 90 11 means the division of community action agencies within the 90 12 department of human rights or its successor. A low-income 90 13 affordability program and a low-income energy efficiency 90 14 program are created to be administered by the division. The 90 15 purpose of the low-income affordability program is to 90 16 encourage the competitive market to serve the electric needs 90 17 of low-income, end-use consumers. The purpose of the low- 90 18 income energy efficiency program is to reduce the consumption 90 19 of electricity by low-income, end-use consumers through energy 90 20 efficiency improvements. 90 21 b. APPORTIONMENT. Low-income affordability and low-income 90 22 energy efficiency assistance shall be distributed statewide. 90 23 c. ELIGIBILITY. Eligibility for the low-income 90 24 affordability and low-income energy efficiency programs shall 90 25 be determined as follows: 90 26 (1) A residential end-use consumer with a household income 90 27 at or below one hundred fifty percent of the federal poverty 90 28 level, as determined annually by the United States department 90 29 of health and human services, is eligible to receive low- 90 30 income affordability assistance. 90 31 (2) A residential end-use consumer with a household income 90 32 at or below one hundred fifty percent of the federal poverty 90 33 level, as determined annually by the United States department 90 34 of health and human services, is eligible to receive low- 90 35 income energy efficiency program assistance, regardless of 91 1 their eligibility to receive low-income affordability 91 2 assistance. 91 3 d. LOW-INCOME AFFORDABILITY PROGRAM. The community action 91 4 agencies shall qualify a consumer for participation in the 91 5 low-income affordability program and shall notify a person 91 6 billing the end-use consumer of the consumer's monthly fixed 91 7 credit and the duration for which the monthly fixed credit is 91 8 authorized. The monthly fixed credit is the amount necessary 91 9 to reduce the consumer's total electric bill to an affordable 91 10 percentage of income in accordance with rules adopted by the 91 11 division. Additionally, the monthly fixed credit shall 91 12 include an amount equal to the amount of monthly systems 91 13 benefits charges paid by the end-use consumer pursuant to this 91 14 section. The affordable percentage of income shall be tiered 91 15 to reflect the ratio of the consumer's household income to the 91 16 federal poverty level, with greater assistance provided to 91 17 those at lower poverty levels, as determined by rules of the 91 18 division. 91 19 Program benefits shall be distributed as a monthly fixed 91 20 credit applied toward a consumer's delivery service bill for 91 21 provision of electricity. A person billing an end-use 91 22 consumer shall subtract the amount of the credit from the 91 23 amount of the consumer's bill each month, or an equivalent 91 24 amount if a different billing cycle is utilized. If the 91 25 monthly fixed credit exceeds the portion of the bill related 91 26 to delivery service, the excess shall be applied toward the 91 27 cost of the consumer's competitive power supply services. A 91 28 person billing the end-use consumer shall bill the appropriate 91 29 community action agency for the sum of the total amount of 91 30 fixed credits provided to the consumer and the division shall 91 31 timely reimburse the person for all credited amounts. Only 91 32 those credits that are authorized in accordance with this 91 33 subsection shall be reimbursed. 91 34 e. LOW-INCOME ENERGY EFFICIENCY PROGRAM. Energy 91 35 efficiency assistance shall be prioritized based on the end- 92 1 use consumers with the largest kilowatt-hours of annual use. 92 2 Moneys allocated to the low-income energy efficiency program 92 3 may be used for space heating as allowed pursuant to the 92 4 federal weatherization assistance program or nonspace heating 92 5 as determined by the division as necessary and appropriate to 92 6 provide maximum comprehensive cost-effective energy efficiency 92 7 treatment to low-income households. 92 8 f. FUNDING. (1) For the first three years the low-income 92 9 affordability program and the low-income energy efficiency 92 10 program are in effect, funds for the programs shall be 92 11 provided by all end-use consumers through a nonbypassable 92 12 monthly surcharge on all distribution services within a 92 13 delivery service provider's assigned service area, including 92 14 service provided under rates or charges pursuant to section 92 15 476B.8. The monthly surcharge shall be collected by the 92 16 person billing the end-use consumer for the service. The 92 17 monthly surcharge shall commence with bills issued on October 92 18 1, 2002. 92 19 (2) The monthly surcharge for an end-use consumer located 92 20 in the assigned service area of a delivery service provider 92 21 that is an electric company shall be as follows: 92 22 (a) Sixty-nine cents for a residential electric account. 92 23 (b) Thirty-eight cents for a nonresidential electric 92 24 account with an annual usage of less than twenty-five thousand 92 25 kilowatt-hours in the prior calendar year. 92 26 (c) Two dollars and eighty cents for a nonresidential 92 27 electric account with an annual usage of twenty-five thousand 92 28 kilowatt-hours to one hundred thousand kilowatt-hours in the 92 29 prior calendar year. 92 30 (d) Eleven dollars and seventy cents for a nonresidential 92 31 electric account with an annual usage of more than one hundred 92 32 thousand kilowatt-hours to four hundred thousand kilowatt- 92 33 hours in the prior calendar year. 92 34 (e) Fifty dollars and eighty-four cents for a 92 35 nonresidential electric account with an annual usage of more 93 1 than four hundred thousand kilowatt-hours to one million five 93 2 hundred thousand kilowatt-hours in the prior calendar year. 93 3 (f) Two hundred dollars and twenty-two cents for a 93 4 nonresidential electric account with an annual usage of more 93 5 than one million five hundred thousand kilowatt-hours to six 93 6 million kilowatt-hours in the prior calendar year. 93 7 (g) One thousand eight hundred forty-seven dollars and 93 8 fifty cents for a nonresidential electric account with an 93 9 annual usage of more than six million kilowatt-hours in the 93 10 prior calendar year. 93 11 (3) The monthly surcharge for an end-use consumer located 93 12 in the assigned service area of a delivery service provider 93 13 that is a consumer-owned utility shall be as follows: 93 14 (a) Eighteen cents for a residential electric account. 93 15 (b) Fourteen cents for a nonresidential electric account 93 16 with an annual usage of less than twenty-five thousand 93 17 kilowatt-hours in the prior calendar year. 93 18 (c) One dollar and one cent for a nonresidential electric 93 19 account with an annual usage of twenty-five thousand kilowatt- 93 20 hours to one hundred thousand kilowatt-hours in the prior 93 21 calendar year. 93 22 (4) Four dollars and twenty-two cents for a nonresidential 93 23 electric account with an annual usage of more than one hundred 93 24 thousand kilowatt-hours to four hundred thousand kilowatt- 93 25 hours in the prior calendar year. 93 26 (5) Eighteen dollars and thirty-five cents for a 93 27 nonresidential electric account with an annual usage of more 93 28 than four hundred thousand kilowatt-hours to one million five 93 29 hundred thousand kilowatt-hours in the prior calendar year. 93 30 (6) Seventy-two dollars and twenty-six cents for a 93 31 nonresidential electric account with an annual usage of more 93 32 than one million five hundred thousand kilowatt-hours to six 93 33 million kilowatt-hours in the prior calendar year. 93 34 (7) Six hundred sixty-six dollars and eighty-one cents for 93 35 a nonresidential electric account with an annual usage of more 94 1 than six million kilowatt-hours in the prior calendar year. 94 2 For the purpose of determining the monthly charge, the term 94 3 "accounts" may be interpreted by the board in appropriate 94 4 circumstances to mean end-use consumers. During the second 94 5 and third twelve-month periods that the program is in effect, 94 6 the monthly charges shall be adjusted as necessary to yield no 94 7 less than twenty-three million, five hundred thousand dollars 94 8 annually. For nonresidential consumers with no prior 94 9 calendar-year usage the delivery service provider may use a 94 10 reasonable estimate of the consumer's usage. 94 11 All moneys collected pursuant to this subsection shall be 94 12 remitted to the treasurer of state. The treasurer shall make 94 13 disbursements from this fund as appropriate. The unencumbered 94 14 or unobligated moneys remaining at the end of any fiscal year 94 15 from the appropriations made in this subsection shall not 94 16 revert but shall be available for expenditure during 94 17 subsequent fiscal years until expended for the purposes for 94 18 which originally appropriated. Interest or earnings on 94 19 investments or time deposits of the moneys remitted under this 94 20 section shall be retained for the purposes designated in this 94 21 section. 94 22 After the third year of the program, the board shall 94 23 annually establish levels of charges on electric accounts 94 24 based on the total program budget developed by the division. 94 25 When determining the per account charge, the board shall not 94 26 substantially deviate from the cost allocation among consumer 94 27 groups reflected in the initial funding charges. Any increase 94 28 in monthly charges as provided in this paragraph shall not go 94 29 into effect without prior approval by joint resolution as 94 30 adopted by the general assembly. 94 31 g. PROGRAM ALLOCATIONS, ADMINISTRATION, AND BUDGETS. 94 32 (1) Amounts allocated to the low-income affordability 94 33 program shall be based on participation rates from prior years 94 34 and the level of credits necessary to maintain affordable 94 35 energy burdens. Low-income energy efficiency program 95 1 allocations shall be based on the level of funding necessary 95 2 to deliver adequate energy efficiency to participating 95 3 households, as determined by the weatherization assistance 95 4 program. The level of funding allocated for the low-income 95 5 energy efficiency program shall not exceed twenty percent of 95 6 total low-income affordability program funding. The level of 95 7 funding allocated for administration shall not exceed ten 95 8 percent of the amounts allocated for the sum of the low-income 95 9 affordability program and the low-income energy efficiency 95 10 program. 95 11 (2) The division shall administer the program. 95 12 Administration of the program shall include contracting with 95 13 community action agencies, enrolling low-income, end-use 95 14 consumers in the program, providing outreach and consumer 95 15 education, notifying consumers and answering consumer 95 16 inquiries, and keeping records relating to the numbers of 95 17 program participants and program expenditures. 95 18 (3) The division shall develop a budget for the low-income 95 19 affordability program and the low-income energy efficiency 95 20 program on an annual basis. 95 21 (4) The division shall provide a report to the legislative 95 22 fiscal committee on a monthly basis regarding any expenditures 95 23 for the low-income affordability program and low-income energy 95 24 efficiency program. A monthly report shall cover a calendar 95 25 month and is due the tenth day of the following month, and 95 26 shall provide a summary of all expenditures made under such 95 27 programs. The division shall also provide a copy of the 95 28 annual budget developed under subparagraph (3) to the 95 29 legislative fiscal committee. 95 30 (5) Amounts in the fund shall not be subject to 95 31 appropriation for any other purpose by the general assembly, 95 32 but shall be used only for the purpose set forth in this 95 33 subsection. 95 34 h. IMPLEMENTATION PLAN. Within ninety days after the 95 35 effective date of this chapter, the division shall convene an 96 1 initial meeting of persons interested in participating in the 96 2 development of an implementation plan. Additional meetings 96 3 shall be scheduled by the division as necessary. The plan, at 96 4 a minimum, shall include the requirements identified in this 96 5 subsection. 96 6 i. DELIVERY SERVICE PROVIDER REPORT. A delivery service 96 7 provider shall report to the board annually the number of end- 96 8 use consumer accounts in its assigned service area eligible 96 9 for each program under paragraph "c". 96 10 j. BOARD RULES. The board shall propose rules by December 96 11 1, 2001, applicable to a delivery service provider and 96 12 competitive electric service provider concerning the 96 13 collection of funds pursuant to paragraph "f". 96 14 k. EVALUATION AND PLAN. Every other year, the division, 96 15 in consultation with the board, shall evaluate the performance 96 16 and effectiveness of the low-income affordability program 96 17 through use of an independent third party and develop a low- 96 18 income needs and resources plan for the state which shall 96 19 include a statewide assessment of the need for low-income 96 20 affordability assistance and low-income energy efficiency 96 21 assistance; an identification of the public and private 96 22 resources available to meet the identified needs; and 96 23 recommendations on how to coordinate the available resources 96 24 to most effectively address the identified needs, taking into 96 25 account the difference between short-term and long-term 96 26 effectiveness. 96 27 Upon completion, the evaluation and the plan shall be 96 28 submitted to the general assembly. 96 29 2. CONTRIBUTION FUND. 96 30 a. A delivery service provider and a licensed competitive 96 31 electric service provider may establish a fund whose purposes 96 32 shall include receiving contributions to assist consumers with 96 33 weatherization measures to improve energy efficiency related 96 34 to winter heating and summer cooling and to supplement other 96 35 energy assistance sources for the payment of electric bills. 97 1 b. The delivery service provider or competitive electric 97 2 service provider establishing the fund may be reimbursed by 97 3 the fund for the reasonable administrative costs of the 97 4 billings, disbursements, notices to potential contributors, 97 5 and financial recordkeeping. However, such reimbursement 97 6 shall not exceed five percent of the total contributions 97 7 collected. 97 8 3. ENVIRONMENTAL ASSESSMENT. 97 9 a. (1) An environmental assessment shall be funded by all 97 10 end-use consumers through a nonbypassable monthly surcharge on 97 11 all distribution services within a delivery service provider's 97 12 assigned service area, including service provided under rates 97 13 or charges pursuant to section 476B.8. The monthly surcharge 97 14 shall be collected by the person billing the end-use consumer 97 15 for the service and shall be remitted to the treasurer of the 97 16 state. The monthly surcharge shall commence with bills issued 97 17 on October 1, 2002. 97 18 (2) The monthly surcharge for an end-use consumer located 97 19 in the assigned service area of a delivery service provider 97 20 that is an electric company shall be as follows: 97 21 (a) Six cents for a residential electric account. 97 22 (b) Three cents for a nonresidential electric account with 97 23 an annual usage of less than twenty-five thousand kilowatt- 97 24 hours in the prior calendar year. 97 25 (c) Twenty-four cents for a nonresidential electric 97 26 account with an annual usage of twenty-five thousand kilowatt- 97 27 hours to one hundred thousand kilowatt-hours in the prior 97 28 calendar year. 97 29 (d) One dollar for a nonresidential electric account with 97 30 an annual usage of more than one hundred thousand kilowatt- 97 31 hours to four hundred thousand kilowatt-hours in the prior 97 32 calendar year. 97 33 (e) Four dollars and thirty-three cents for a 97 34 nonresidential electric account with an annual usage of more 97 35 than four hundred thousand kilowatt-hours to one million five 98 1 hundred thousand kilowatt-hours in the prior calendar year. 98 2 (f) Seventeen dollars and four cents for a nonresidential 98 3 electric account with an annual usage of more than one million 98 4 five hundred thousand kilowatt-hours to six million kilowatt- 98 5 hours in the prior calendar year. 98 6 (g) One hundred fifty-seven dollars and twenty-three cents 98 7 for a nonresidential electric account with an annual usage of 98 8 more than six million kilowatt-hours in the prior calendar 98 9 year. 98 10 (3) The monthly surcharge for an end-use consumer located 98 11 in the assigned service area of a delivery service provider 98 12 that is a consumer-owned utility shall be as follows: 98 13 (a) Two cents for a residential electric account. 98 14 (b) One cent for a nonresidential electric account with an 98 15 annual usage of less than twenty-five thousand kilowatt-hours 98 16 in the prior calendar year. 98 17 (c) Nine cents for a nonresidential electric account with 98 18 an annual usage of twenty-five thousand kilowatt-hours to one 98 19 hundred thousand kilowatt-hours in the prior calendar year. 98 20 (d) Thirty-six cents for a nonresidential electric account 98 21 with an annual usage of more than one hundred thousand 98 22 kilowatt-hours to four hundred thousand kilowatt-hours in the 98 23 prior calendar year. 98 24 (e) One dollar and fifty-six cents for a nonresidential 98 25 electric account with an annual usage of more than four 98 26 hundred thousand kilowatt-hours to one million five hundred 98 27 thousand kilowatt-hours in the prior calendar year. 98 28 (f) Six dollars and fifteen cents for a nonresidential 98 29 electric account with an annual usage of more than one million 98 30 five hundred thousand kilowatt-hours to six million kilowatt- 98 31 hours in the prior calendar year. 98 32 (g) Fifty-six dollars and seventy-five cents for a 98 33 nonresidential electric account with an annual usage of more 98 34 than six million kilowatt-hours in the prior calendar year. 98 35 For the purpose of determining the monthly charge, the term 99 1 "accounts" may be interpreted by the board in appropriate 99 2 circumstances to mean end-use consumers. After the first 99 3 twelve-month period that moneys are collected pursuant to this 99 4 section, the monthly charges shall be adjusted as necessary to 99 5 yield no less than two million dollars annually. For a 99 6 nonresidential consumer with no prior calendar-year usage, the 99 7 delivery service provider may use a reasonable estimate of the 99 8 consumer's usage. The board shall, by rule, provide a 99 9 schedule for remittances. The initial rules shall be proposed 99 10 by December 1, 2001. The board shall allow inclusion of the 99 11 remittance amounts on all distribution services within the 99 12 electric company's assigned service area, including service 99 13 provided under rates or charges pursuant to section 476B.8. 99 14 Eighty-five percent of the remittances collected pursuant to 99 15 this subsection is appropriated to the Iowa energy center 99 16 created in section 266.39C. Fifteen percent of the 99 17 remittances collected pursuant to this subsection is 99 18 appropriated to the center for global and regional 99 19 environmental research established by the state board of 99 20 regents. 99 21 Notwithstanding section 8.33, any unexpended moneys 99 22 remitted to the treasurer of state under this subsection shall 99 23 not revert and shall be retained by the centers for the 99 24 purposes designated. Notwithstanding section 12C.7, 99 25 subsection 2, interest or earnings on investments or time 99 26 deposits of the moneys remitted under this subsection shall be 99 27 retained and used for the purposes designated. 99 28 The Iowa energy center and the center for global and 99 29 regional environmental research shall each provide a written 99 30 annual report to the board which describes each center's 99 31 activities and the results that each center has accomplished. 99 32 Each report shall include an explanation of initiatives and 99 33 projects of importance to the state. 99 34 (4) The Iowa energy center and the center for global and 99 35 regional environmental research shall each provide a report to 100 1 the legislative fiscal committee on a monthly basis regarding 100 2 any expenditures of funds associated with each center's 100 3 activities under this subsection. A monthly report shall 100 4 cover a calendar month and is due the tenth day of the 100 5 following month. 100 6 (5) Amounts in the fund shall not be subject to 100 7 appropriation for any other purpose by the general assembly, 100 8 but shall be used only for the purpose set forth in this 100 9 subsection. 100 10 4. RENEWABLE ENERGY AND EMISSIONS REDUCTION FUND. 100 11 a. PURPOSE. A renewable energy and emissions reduction 100 12 fund is created in the office of the treasurer of state under 100 13 the control of the Iowa department of economic development. 100 14 The purposes of the fund include the following: 100 15 (1) Encourage investment in and development of renewable 100 16 energy facilities in this state, including technologies 100 17 furthering agricultural opportunities. 100 18 (2) Enable Iowa-based renewable energy facilities to 100 19 compete in the national energy markets. 100 20 (3) Encourage investment in and development of fossil- 100 21 fueled generation and associated equipment in this state that 100 22 produce a quantifiable net reduction in air emissions for the 100 23 state, region, or nation. 100 24 (4) Encourage investment in and development of equipment 100 25 and processes to more efficiently utilize fossil fuels for 100 26 generation of electricity. 100 27 b. GOALS. To the maximum extent possible within the 100 28 funding available, the goals of the fund are to support the 100 29 establishment of competitively priced, Iowa-based renewable 100 30 energy facilities capable of annually generating one billion 100 31 four hundred ninety-two million seven hundred thirty-two 100 32 thousand kilowatt-hours by December 31, 2006, two billion six 100 33 hundred twelve million two hundred eighty thousand kilowatt- 100 34 hours by December 31, 2010, and three billion seven hundred 100 35 thirty-one million eight hundred twenty-nine thousand 101 1 kilowatt-hours by December 31, 2015; and to achieve 101 2 quantifiable reductions in air emissions reported to the 101 3 United States environmental protection agency and other 101 4 government agencies for fossil-fueled generation in this 101 5 state. For purposes of calculating achievement of the goals 101 6 established, all renewable energy facilities within this state 101 7 shall be included. 101 8 The Iowa department of economic development and the Iowa 101 9 energy center shall cooperate in the administration of this 101 10 subsection, and each shall adopt rules as necessary for the 101 11 implementation of the respective duties of the department and 101 12 the center. 101 13 c. AVAILABILITY. (1) Moneys deposited in the fund shall 101 14 be made available by the Iowa department of economic 101 15 development in the form of grants, loans, or other incentives, 101 16 including research development and demonstration, for any of 101 17 the following purposes: 101 18 (a) Investment in and development of renewable energy 101 19 facilities in this state that take advantage of agricultural 101 20 opportunities in the state, such as biomass, and new renewable 101 21 energy technologies. 101 22 (b) Investment in and development of renewable energy 101 23 facilities totaling no more than one megawatt in nameplate 101 24 capacity at an individual residence or farm in this state, and 101 25 serving only the end-use consumers at that residence or farm. 101 26 (c) Investment in and development of wind energy 101 27 facilities and other renewable energy technologies located in 101 28 this state. 101 29 (d) Investment in and development of technologies for 101 30 existing or proposed fossil-fueled electric generating 101 31 facilities and associated equipment in this state, including 101 32 research and investments in clean coal technologies, that 101 33 quantifiably reduce net air emissions below 1998 levels. 101 34 (e) Investment in and development of equipment and 101 35 processes to more efficiently utilize fossil fuels for 102 1 generation of electricity in this state. 102 2 (2) The Iowa department of economic development, by 102 3 October 1, 2001, shall adopt rules pursuant to chapter 17A 102 4 establishing the criteria and process for applying for grants, 102 5 loans, and other incentives from the fund and the criteria 102 6 that will be used to select the successful applicants. The 102 7 Iowa energy center, by October 1, 2001, shall adopt rules 102 8 specifying the criteria to be used to prioritize the 102 9 distribution of the moneys in the fund to achieve the purposes 102 10 and goals of this subsection. At least seven percent of the 102 11 fund, prior to administrative expenses, collected during the 102 12 life of the fund shall be used for fostering investments to 102 13 reduce air emissions and for clean coal technologies. In 102 14 order to encourage investment in and development of renewable 102 15 energy facilities that take advantage of new technologies and 102 16 agricultural opportunities, at least ten percent of the fund, 102 17 prior to deduction for administrative expenses, collected 102 18 during the life of the fund shall be used for the development 102 19 of renewable energy facilities other than wind power 102 20 facilities. 102 21 The Iowa energy center, for the purposes of implementing 102 22 the center's duties under this subsection, shall comply with 102 23 the rulemaking provisions of chapter 17A. 102 24 d. ADMINISTRATIVE EXPENSE. The reasonable costs, 102 25 including labor expenses, incurred by the Iowa department of 102 26 economic development and the Iowa energy center in 102 27 administering this subsection shall be reimbursed from moneys 102 28 in the fund but shall not in any twelve-month period exceed 102 29 five percent of the annual collections under paragraph "j". 102 30 For the purpose of the Iowa energy center's administration of 102 31 this subsection, the salary cap established in section 266.39C 102 32 does not apply. 102 33 e. OVERSIGHT. The advisory council established under 102 34 section 266.39C, subsection 2, shall have oversight 102 35 responsibility for the actions of the Iowa energy center under 103 1 this subsection and shall be responsible for reviewing and 103 2 approving any rules to be adopted by the Iowa energy center. 103 3 f. INTERAGENCY COOPERATION. The Iowa department of 103 4 economic development and the Iowa energy center shall solicit 103 5 assistance and advice from the utilities board and the 103 6 department of natural resources as appropriate. 103 7 g. MONTHLY REPORT. The Iowa energy center shall provide a 103 8 report to the legislative fiscal committee on a monthly basis 103 9 regarding any expenditures of funds associated with the 103 10 center's activities under this subsection. A monthly report 103 11 shall cover a calendar month and is due the tenth day of the 103 12 following month. 103 13 Amounts in the fund shall not be subject to appropriation 103 14 for any other purpose by the general assembly, but shall be 103 15 used only for the purpose set forth in this subsection. 103 16 h. ANNUAL REPORT. The Iowa department of economic 103 17 development and the Iowa energy center shall prepare an annual 103 18 report concerning the status of the fund, the amount of 103 19 administrative expenses incurred in the governance of the 103 20 fund, the progress toward the purposes and goals in the prior 103 21 year and since the inception of the fund, and any 103 22 recommendations for legislation to encourage the development 103 23 of additional renewable energy resources and investments in 103 24 fossil-fueled generation and associated equipment to reduce 103 25 air emissions. The report shall be submitted to the governor 103 26 and to the general assembly by March 1 of each year, 103 27 commencing in 2003 and concluding in 2017. 103 28 i. INDEPENDENT AUDIT. The Iowa department of economic 103 29 development, every three years commencing in 2004, shall cause 103 30 an audit of the fund collections and disbursements, including 103 31 administrative expenses, to be conducted by an independent 103 32 accounting firm. A copy of the audit shall be included with 103 33 the annual report required in paragraph "h". 103 34 j. FUNDING. (1) The renewable energy and emissions 103 35 reduction fund shall be funded by all end-use consumers 104 1 through a nonbypassable monthly surcharge on all distribution 104 2 services within a delivery service provider's assigned service 104 3 area, including service provided under rates or charges 104 4 pursuant to section 476B.8. The monthly surcharge shall be 104 5 collected by the person billing the end-use consumer for the 104 6 service. The monthly surcharge is designed to provide an 104 7 average collection over the life of the fund of twenty-nine 104 8 million five hundred thousand dollars per year. The monthly 104 9 surcharge shall commence with bills issued on October 1, 2002, 104 10 and shall cease to be collected on bills issued after December 104 11 31, 2016. 104 12 (2) The monthly surcharge for an end-use consumer located 104 13 in the assigned service area of a delivery service provider 104 14 that is an electric company shall be as follows: 104 15 (a) Eighty-seven cents for a residential electric account. 104 16 (b) Forty-eight cents for a nonresidential electric 104 17 account with an annual usage of less than twenty-five thousand 104 18 kilowatt-hours in the prior calendar year. 104 19 (c) Three dollars and fifty-one cents for a nonresidential 104 20 electric account with an annual usage of twenty-five thousand 104 21 kilowatt-hours to one hundred thousand kilowatt-hours in the 104 22 prior calendar year. 104 23 (d) Fourteen dollars and sixty-nine cents for a 104 24 nonresidential electric account with an annual usage of more 104 25 than one hundred thousand kilowatt-hours to four hundred 104 26 thousand kilowatt-hours in the prior calendar year. 104 27 (e) Sixty-three dollars and eighty-two cents for a 104 28 nonresidential electric account with an annual usage of more 104 29 than four hundred thousand kilowatt-hours to one million five 104 30 hundred thousand kilowatt-hours in the prior calendar year. 104 31 (f) Two hundred fifty-one dollars and thirty-three cents 104 32 for a nonresidential electric account with an annual usage of 104 33 more than one million five hundred thousand kilowatt-hours to 104 34 six million kilowatt-hours in the prior calendar year. 104 35 (g) Two thousand three hundred nineteen dollars and 105 1 twenty-one cents for a nonresidential account with an annual 105 2 usage of more than six million kilowatt-hours in the prior 105 3 calendar year. 105 4 (3) The monthly surcharge for an end-use consumer located 105 5 in the assigned service area of a delivery service provider 105 6 that is a consumer-owned utility shall be as follows: 105 7 (a) Twenty-three cents for a residential electric account. 105 8 (b) Seventeen cents for a nonresidential electric account 105 9 with an annual usage of less than twenty-five thousand 105 10 kilowatt-hours in the prior calendar year. 105 11 (c) One dollar and twenty-seven cents for a nonresidential 105 12 electric account with an annual usage of twenty-five thousand 105 13 kilowatt-hours to one hundred thousand kilowatt-hours in the 105 14 prior calendar year. 105 15 (d) Five dollars and thirty cents for a nonresidential 105 16 electric account with an annual usage of more than one hundred 105 17 thousand kilowatt-hours to four hundred thousand kilowatt- 105 18 hours in the prior calendar year. 105 19 (e) Twenty-three dollars and three cents for a 105 20 nonresidential electric account with an annual usage of more 105 21 than four hundred thousand kilowatt-hours to one million five 105 22 hundred thousand kilowatt-hours in the prior calendar year. 105 23 (f) Ninety dollars and seventy-one cents for a 105 24 nonresidential electric account with an annual usage of more 105 25 than one million five hundred thousand kilowatt-hours to six 105 26 million kilowatt-hours in the prior calendar year. 105 27 (g) Eight hundred thirty-seven dollars and six cents for a 105 28 nonresidential electric account with an annual usage of more 105 29 than six million kilowatt-hours in the prior calendar year. 105 30 (4) For purposes of determining the monthly surcharge, 105 31 "accounts" may be interpreted by the Iowa energy center in 105 32 appropriate circumstances to mean end-use consumers. For a 105 33 nonresidential end-use consumer with no prior calendar-year 105 34 usage, the delivery service provider may use a reasonable 105 35 estimate of the end-use consumer's usage. 106 1 (5) All moneys collected pursuant to this subsection shall 106 2 be remitted to the treasurer of state and deposited in the 106 3 renewable energy and emissions reduction fund. The moneys are 106 4 appropriated for the purposes of that fund. The treasurer of 106 5 state shall make disbursements from this fund as requested by 106 6 the Iowa energy center. The unencumbered or unobligated 106 7 moneys remaining in the fund at the end of any fiscal year 106 8 shall not revert but shall be available for expenditure during 106 9 subsequent fiscal years. Notwithstanding section 12C.7, 106 10 subsection 2, interest or earnings on investments or time 106 11 deposits of the moneys deposited in the electric energy 106 12 efficiency fund shall be credited to the fund. 106 13 k. ASSESSMENT AND EVALUATION. An assessment and 106 14 evaluation shall be conducted by an independent third party 106 15 selected by the Iowa energy center, in collaboration with the 106 16 utilities board and advisory council, to do all of the 106 17 following: 106 18 (1) Evaluate the performance and effectiveness of the 106 19 fund's administration. 106 20 (2) Determine whether moneys collected are sufficient or 106 21 in excess of the amount needed to achieve the goals 106 22 established in this subsection. 106 23 (3) Identify any nonmonetary impediments to achieving the 106 24 goals. 106 25 The assessment and evaluation shall begin after January 1, 106 26 2007, and be delivered to the governor and general assembly on 106 27 or before January 1, 2008. 106 28 5. ELECTRIC ENERGY EFFICIENCY FUND AND PROGRAMS. 106 29 a. FUND CREATION AND PURPOSE. An electric energy 106 30 efficiency fund is created in the state treasury to be 106 31 administered by the division. For purposes of this 106 32 subsection, "division" means the division of energy and 106 33 geological resources of the department of natural resources. 106 34 The purpose of the fund is to achieve cost-effective 106 35 reductions in the consumption of electricity or need for 107 1 electric capacity by end-use consumers in residential and 107 2 nonresidential consumer classes, serve the electric energy 107 3 efficiency needs of the citizens of this state that are not 107 4 met by the competitive market, and assist the development of a 107 5 competitive market to serve the electric energy efficiency 107 6 needs of the citizens of this state. 107 7 b. ADVISORY COMMITTEE. An electric energy efficiency fund 107 8 advisory committee is established. The committee, in 107 9 collaboration with the division, shall work to determine the 107 10 parameters for the needs assessment and develop and implement 107 11 electric energy efficiency programs under this subsection. 107 12 The membership of the committee shall consist of the 107 13 following: 107 14 (1) One person representing Iowa state university of 107 15 science and technology, appointed by its president. 107 16 (2) One person representing the university of Iowa, 107 17 appointed by its president. 107 18 (3) One person representing the university of northern 107 19 Iowa, appointed by its president. 107 20 (4) One person representing the office of consumer 107 21 advocate, appointed by the consumer advocate. 107 22 (5) One person representing the utilities board, appointed 107 23 by the board. 107 24 (6) Two persons representing consumer-owned utilities, one 107 25 each appointed by the governing body of the Iowa association 107 26 of electric cooperatives and the governing body of the Iowa 107 27 association of municipal utilities. 107 28 (7) One person representing delivery service providers 107 29 that are electric companies, appointed by the Iowa utility 107 30 association. 107 31 (8) Three persons representing consumers, including one 107 32 person representing residential consumers, one person 107 33 representing commercial consumers, and one person representing 107 34 industrial consumers, appointed by the governor. 107 35 (9) One person representing competitive electric service 108 1 providers licensed in this state that are not affiliated with 108 2 an incumbent provider, appointed by the board. 108 3 (10) One person representing competitive electric service 108 4 providers acting as aggregators, appointed by the board. 108 5 (11) One person representing energy services companies 108 6 that are not affiliated with a licensed competitive electric 108 7 service provider, appointed by the governor. 108 8 (12) One person representing trade unions, appointed by 108 9 the governor. 108 10 (13) Three persons representing groups focused on electric 108 11 energy efficiency, appointed by the governor. Of the persons 108 12 appointed pursuant to this subparagraph, one person shall have 108 13 expertise in heating and air conditioning, and one person 108 14 shall have expertise in building and insulation materials and 108 15 techniques. 108 16 (14) One person representing environmental groups, 108 17 appointed by the governor. 108 18 (15) Four legislators, serving as ex officio members, one 108 19 each appointed by the majority and minority leaders of the 108 20 senate, one appointed by the speaker of the house and one 108 21 appointed by the minority leader of the house. 108 22 The term of the members shall begin and end as provided in 108 23 section 69.19 and any vacancy shall be filled by the original 108 24 appointing authority. The terms shall be for four years and 108 25 shall be staggered. 108 26 c. INTERIM FUNDING AND PROGRAMS. (1) An incumbent 108 27 provider that is an electric company shall begin collecting 108 28 funds for remittance to the electric energy efficiency fund as 108 29 of the date it has fully recovered accumulated deferred costs 108 30 associated with electric energy efficiency plans pursuant to 108 31 section 476.6, subsection 19. From the date such accumulated 108 32 deferred costs have been fully recovered until October 1, 108 33 2002, the amount collected shall equal the amount of 108 34 accumulated deferred costs included in each electric company's 108 35 rates and charges prior to the date of full recovery and shall 109 1 be apportioned to customers on a monthly basis in the same 109 2 manner as those deferred electric energy efficiency costs. 109 3 All moneys collected pursuant to this subsection shall be 109 4 remitted monthly to the treasurer of state and deposited in 109 5 the electric energy efficiency fund. The moneys are 109 6 appropriated for the purposes of the electric energy 109 7 efficiency fund. The treasurer of state shall make 109 8 disbursements from the fund as requested by the department of 109 9 natural resources or the board, and in accordance with this 109 10 section. Any unencumbered or unobligated moneys remaining in 109 11 the fund on October 1, 2002, shall not revert but shall be 109 12 available for expenditure during subsequent fiscal years to 109 13 offset the amount of moneys collected through nonbypassable 109 14 surcharges on consumer bills. If the amount remaining in the 109 15 fund on October 1, 2002, is greater than the amount of annual 109 16 funding indicated by the needs assessment, the difference 109 17 between the amount of annual funding indicated by the needs 109 18 assessment and the amount in the fund prior to October 1, 109 19 2002, shall be refunded to consumers in a manner determined by 109 20 the board. Notwithstanding section 12C.7, subsection 2, 109 21 interest or earnings on investments or time deposits of the 109 22 moneys deposited in the electric energy efficiency fund shall 109 23 be credited to the fund. 109 24 (2) The board may direct all incumbent providers that are 109 25 electric companies to advance to the treasurer of state, on an 109 26 as needed basis, a maximum of two million five hundred 109 27 thousand dollars to fund the needs assessment. The board may 109 28 direct all or a portion of these amounts to be advanced at any 109 29 time after the effective date of this Act. Notwithstanding 109 30 section 12C.7, subsection 2, interest or earnings on 109 31 investments or time deposits of the moneys advanced and 109 32 remitted under this subparagraph shall be retained and used 109 33 for the needs assessment. An electric company advancing funds 109 34 for the needs assessment shall be reimbursed from funds 109 35 collected pursuant to this paragraph "c", and interest shall 110 1 be paid on any funds advanced at the rate of twelve percent 110 2 per annum. 110 3 (3) Until the programs established pursuant to paragraph 110 4 "d" are implemented, the fund may be used for the following 110 5 purposes: 110 6 (a) A maximum of three million dollars for a needs 110 7 assessment and for reimbursement with interest of funds 110 8 advanced by electric companies. 110 9 (b) A maximum of ten percent of the fund for 110 10 administrative expenses related to the development of the 110 11 electric energy efficiency program to the division. 110 12 (c) A maximum of thirty percent of the fund for pilot 110 13 programs and other cost-effective programs for residential and 110 14 nonresidential consumers, customized programs for 110 15 nonresidential consumers, community-based electric energy 110 16 efficiency programs, and public sector electric energy 110 17 efficiency programs developed by the division and approved by 110 18 the advisory committee. These programs shall be limited to 110 19 the assigned service areas of electric companies. 110 20 (d) A maximum of seven million dollars to the board for 110 21 reimbursement with interest of funds advanced by incumbent 110 22 providers that are electric companies for the consumer 110 23 education program. 110 24 (e) A maximum of one million two hundred forty thousand 110 25 dollars to the division of community action agencies in the 110 26 department of human rights, for administrative expenses 110 27 related to the development of the low-income energy efficiency 110 28 program. 110 29 (f) A maximum of two million one hundred thousand dollars 110 30 for the intervenor fund created in section 476B.26. 110 31 d. ELECTRIC ENERGY EFFICIENCY FUND PROGRAMS AND 110 32 ELIGIBILITY. Electric energy efficiency programs shall be 110 33 developed and prioritized by the division based on the needs 110 34 assessment conducted pursuant to paragraph "e" and the 110 35 evaluations performed pursuant to paragraph "m". Moneys 111 1 allocated to the electric energy efficiency fund may be used 111 2 for improvements or programs that are cost-effective and 111 3 result in energy, capacity, or dollar savings for the end-use 111 4 consumer and for tree planting programs. 111 5 The division, in collaboration with the advisory committee, 111 6 shall adopt rules establishing electric energy efficiency 111 7 programs, criteria for use of the moneys in the electric 111 8 energy efficiency fund, and providing for the equitable 111 9 distribution of such moneys on a statewide basis. Except as 111 10 provided in this paragraph "d", any end-use consumer is 111 11 eligible for participation in the applicable electric energy 111 12 efficiency program, and any person shall be eligible to 111 13 provide programs and receive funds as provided by the rules of 111 14 the division. 111 15 A consumer-owned delivery service provider that annually 111 16 notifies the division of its intent to deliver local programs 111 17 by submitting an informational implementation plan may retain 111 18 up to ninety percent of the amount it collects pursuant to 111 19 paragraph "f" for such service provider's electric energy 111 20 efficiency programs. If a consumer-owned delivery service 111 21 provider is unable to spend the funds it retains for electric 111 22 energy efficiency programs it determines to be cost-effective, 111 23 the balance shall be remitted to the treasurer of state's 111 24 office for deposit in the electric energy efficiency fund. No 111 25 more than ten percent of the funds retained by a consumer- 111 26 owned delivery service provider shall be expended for 111 27 administrative costs. Such programs shall be developed and 111 28 prioritized by the consumer-owned delivery service provider 111 29 based upon the findings of the needs assessment, experience of 111 30 the consumer-owned delivery service provider, and the needs of 111 31 its end-use consumers. A consumer-owned delivery service 111 32 provider choosing to retain funds as provided in this 111 33 paragraph is ineligible to receive any additional funds from 111 34 the electric energy efficiency fund for use in its assigned 111 35 service area. An end-use consumer located in the assigned 112 1 service area of a consumer-owned delivery service provider 112 2 choosing to retain funds as provided in this paragraph is also 112 3 ineligible to receive any additional funds, directly or 112 4 indirectly, from the electric energy efficiency fund. A 112 5 report shall be filed with the division biennially by each 112 6 consumer-owned delivery service provider choosing to retain 112 7 funds. The informational report shall contain a summary of 112 8 the total amount spent on each program, the number of 112 9 participants, the estimated benefits of each program, the 112 10 total amount collected by the consumer-owned delivery service 112 11 provider, and the total amount expended or committed by the 112 12 consumer-owned delivery service provider in connection with 112 13 its electric energy efficiency programs. 112 14 This paragraph "d" does not preclude a person from offering 112 15 other energy efficiency and tree planting programs and 112 16 services. 112 17 e. NEEDS ASSESSMENT. The division, in collaboration with 112 18 the advisory committee, shall oversee a needs assessment for 112 19 this state. The assessment shall be conducted through the use 112 20 of an independent third party selected by the division in 112 21 collaboration with the advisory committee. At a minimum, the 112 22 assessment shall identify the need for cost-effective electric 112 23 energy efficiency programs for residential and nonresidential 112 24 end-use consumers, the public and private resources available 112 25 to meet the identified needs, those needs that can be 112 26 reasonably expected to be met by the competitive market, and 112 27 those needs that are met through existing building codes and 112 28 appliance manufacturing standards. The assessment shall 112 29 include recommendations for cost-effective efforts that could 112 30 be undertaken to meet electric energy efficiency needs not 112 31 expected to be met by the competitive market. The assessment 112 32 shall be used to develop the implementation plan provided for 112 33 under paragraph "i". The assessment shall be completed by 112 34 January 2, 2002. The division, in consultation with the 112 35 advisory committee, shall report the findings of the 113 1 assessment to the general assembly by January 30, 2002. 113 2 f. FUNDING. (1) The electric energy efficiency fund 113 3 shall be funded by all end-use consumers through a 113 4 nonbypassable monthly surcharge on all distribution services 113 5 within a delivery service provider's assigned service area, 113 6 including service provided under rates or charges pursuant to 113 7 section 476B.8. The monthly surcharge shall be collected by 113 8 the person billing the end-use consumer for the service. The 113 9 monthly surcharge is designed to provide an average collection 113 10 of not more than twenty-six million five hundred thousand 113 11 dollars per year. The monthly surcharge shall commence with 113 12 bills issued on October 1, 2002. 113 13 (2) The monthly surcharge for an end-use consumer located 113 14 in the assigned service area of a delivery service provider 113 15 that is an electric company shall be as follows: 113 16 (a) Seventy-eight cents for a residential electric 113 17 account. 113 18 (b) Forty-three cents for a nonresidential electric 113 19 account with an annual usage of less than twenty-five thousand 113 20 kilowatt-hours in the prior calendar year. 113 21 (c) Three dollars and sixteen cents for a nonresidential 113 22 electric account with an annual usage of twenty-five thousand 113 23 kilowatt-hours to one hundred thousand kilowatt-hours in the 113 24 prior calendar year. 113 25 (d) Thirteen dollars and nineteen cents for a 113 26 nonresidential electric account with an annual usage of more 113 27 than one hundred thousand kilowatt-hours to four hundred 113 28 thousand kilowatt-hours in the prior calendar year. 113 29 (e) Fifty-seven dollars and thirty-three cents for a 113 30 nonresidential electric account with an annual usage of more 113 31 than four hundred thousand kilowatt-hours to one million five 113 32 hundred thousand kilowatt-hours in the prior calendar year. 113 33 (f) Two hundred twenty-five dollars and seventy-eight 113 34 cents for a nonresidential electric account with an annual 113 35 usage of more than one million five hundred thousand kilowatt- 114 1 hours to six million kilowatt-hours in the prior calendar 114 2 year. 114 3 (g) Two thousand eighty-three dollars and thirty-six cents 114 4 for a nonresidential electric account with an annual usage of 114 5 more than six million kilowatt-hours in the prior calendar 114 6 year. 114 7 (3) The monthly surcharge for an end-use consumer located 114 8 in the assigned service areas of a delivery service provider 114 9 that is a consumer-owned utility shall be as follows: 114 10 (a) Twenty-one cents for a residential electric account. 114 11 (b) Fifteen cents for a nonresidential electric account 114 12 with an annual usage of less than twenty-five thousand 114 13 kilowatt-hours in the prior calendar year. 114 14 (c) One dollar and fourteen cents for a nonresidential 114 15 electric account with an annual usage of twenty-five thousand 114 16 kilowatt-hours to one hundred thousand kilowatt-hours in the 114 17 prior calendar year. 114 18 (d) Four dollars and seventy-six cents for a 114 19 nonresidential electric account with an annual usage of more 114 20 than one hundred thousand kilowatt-hours to four hundred 114 21 thousand kilowatt-hours in the prior calendar year. 114 22 (e) Twenty dollars and sixty-nine cents for a 114 23 nonresidential electric account with an annual usage of more 114 24 than four hundred thousand kilowatt-hours to one million five 114 25 hundred thousand kilowatt-hours in the prior calendar year. 114 26 (f) Eighty-one dollars and forty-nine cents for a 114 27 nonresidential electric account with an annual usage of more 114 28 than one million five hundred thousand kilowatt-hours to six 114 29 million kilowatt-hours in the prior calendar year. 114 30 (g) Seven hundred fifty-one dollars and ninety-four cents 114 31 for a nonresidential electric account with an annual usage of 114 32 more than six million kilowatt-hours in the prior calendar 114 33 year. 114 34 (4) Upon recommendation of the advisory committee and 114 35 approval of the division, the annual amount of the fund shall 115 1 be adjusted based on the needs assessment and subsequent 115 2 evaluations to reflect changes to the estimated costs of 115 3 delivering electric energy efficiency programs to produce an 115 4 amount of collections below twenty-six million five hundred 115 5 thousand dollars. The board shall annually establish levels 115 6 of surcharges on electric accounts based on the total program 115 7 budget developed by the division and based on the evaluations. 115 8 The board, when determining the per account surcharge, shall 115 9 not deviate from the cost allocation methodology among end-use 115 10 consumer groups reflected in the surcharge amounts; provided, 115 11 however, that the board shall eliminate the per account 115 12 surcharge for an end-use consumer grouping specified in 115 13 subparagraph (2) or (3) if the needs assessment pursuant to 115 14 paragraph "e" or an evaluation pursuant to paragraph "m" 115 15 determines, and the advisory committee and the division agree, 115 16 that there is no need for electric energy efficiency programs 115 17 for that end-use consumer grouping other than the programs 115 18 available in the competitive market. All monthly surcharges 115 19 under this paragraph "f" shall cease to be collected with 115 20 bills issued after December 31, 2016. 115 21 (5) For purposes of determining the monthly surcharge, 115 22 "accounts" may be interpreted by the board in appropriate 115 23 circumstances to mean end-use consumers. For a nonresidential 115 24 end-use consumer with no prior calendar year usage, the 115 25 delivery service provider may use a reasonable estimate of the 115 26 consumer's usage. 115 27 All moneys collected pursuant to this subsection shall be 115 28 remitted to the treasurer of state and deposited in the 115 29 electric energy efficiency fund. The moneys are appropriated 115 30 for the purposes of the electric energy efficiency fund. The 115 31 treasurer shall make disbursements from the fund as requested 115 32 by the division. The unencumbered or unobligated moneys 115 33 remaining in the fund at the end of any fiscal year shall not 115 34 revert but shall be available for expenditure during 115 35 subsequent fiscal years. Notwithstanding section 12C.7, 116 1 subsection 2, interest or earnings on investments or time 116 2 deposits of the moneys deposited in the electric energy 116 3 efficiency fund shall be credited to the fund. 116 4 g. ADMINISTRATIVE EXPENSE. The reasonable costs, 116 5 including labor expenses, incurred by the division in 116 6 administering the programs established pursuant to this 116 7 subsection shall be reimbursed from the fund, but shall not 116 8 exceed ten percent of annual collections under paragraph "f". 116 9 h. PROGRAM ADMINISTRATION AND BUDGETS. The division shall 116 10 administer the fund and adopt rules as necessary and shall 116 11 develop a budget for the programs on an annual basis. The 116 12 division may develop and implement pilot programs. 116 13 i. IMPLEMENTATION PLAN. The division, within ninety days 116 14 after the effective date of this chapter, shall convene an 116 15 initial meeting of the advisory committee to assist in the 116 16 development of an implementation plan. The plan, at a 116 17 minimum, shall provide for the purposes established pursuant 116 18 to paragraph "a". The division shall propose rules as 116 19 necessary. 116 20 j. INFORMATION REQUESTS. The division may request 116 21 information from competitive electric service providers and 116 22 delivery service providers as necessary to complete the 116 23 program evaluation. The division may adopt rules as 116 24 necessary. 116 25 k. BOARD RULES. The board shall propose rules by October 116 26 1, 2001, concerning the collection of funds pursuant to 116 27 paragraph "f". 116 28 l. MONTHLY REPORT. The division shall provide a report to 116 29 the legislative fiscal committee on a monthly basis regarding 116 30 any expenditures of funds associated with the Iowa energy 116 31 center's activities under this subsection. A monthly report 116 32 shall cover a calendar month and is due the tenth day of the 116 33 following month. 116 34 Amounts in the fund shall not be subject to appropriation 116 35 for any other purpose by the general assembly, but shall be 117 1 used only for the purpose set forth in this subsection. 117 2 m. BIENNIAL REPORT. The division, beginning on March 1, 117 3 2003, shall prepare a biennial report detailing the status of 117 4 the fund, the amount of administrative expenses incurred in 117 5 the governance of the fund, and the implementation of programs 117 6 established pursuant to this subsection. The report shall be 117 7 submitted to the general assembly and to the governor. 117 8 n. EVALUATION. Every third year, beginning on January 1, 117 9 2005, the division, in consultation with the board and the 117 10 advisory committee, shall evaluate the performance and 117 11 effectiveness of the electric energy efficiency programs 117 12 through use of an independent third party and develop an 117 13 electric energy efficiency plan for the state which shall 117 14 include a statewide assessment of the needs for electric 117 15 energy efficiency and programming; an identification of the 117 16 public and private resources available to meet the identified 117 17 needs; and recommendations on how to coordinate the available 117 18 resources to most effectively address the identified needs, 117 19 taking into account the difference between short-term and 117 20 long-term effectiveness. 117 21 Upon completion, the evaluation and the implementation plan 117 22 shall be submitted to the general assembly with any 117 23 recommendations for continued funding. 117 24 6. EMISSION CREDITS. Carbon emission reduction credits or 117 25 allowances generated as a result of the implementation of 117 26 electric energy efficiency measures or the construction or 117 27 operation of renewable energy facilities funded by this 117 28 section shall be owned by the individual or entity 117 29 implementing the measures or constructing or operating the 117 30 facility unless otherwise sold or voluntarily transferred to 117 31 the division or another person. If emission reduction credits 117 32 or allowances are voluntarily transferred to the division, the 117 33 monetary value of such credits or allowances shall be used to 117 34 reduce the charges to end-use consumers under subsections 4 117 35 and 5. The division shall develop a carbon-trading program 118 1 and develop rules as necessary. For purposes of this 118 2 subsection, "division" means the division of energy and 118 3 geological resources of the department of natural resources. 118 4 Sec. 14. NEW SECTION. 476B.14 COMPLAINTS. 118 5 1. A competitive electric service provider, a delivery 118 6 service provider, and a control area operator shall develop 118 7 and post on the board's website the procedures for filing and 118 8 resolving complaints regarding their services and operations. 118 9 2. The board is authorized to hear all complaints subject 118 10 to its jurisdiction by and against an end-use consumer, a 118 11 competitive electric service provider, a delivery service 118 12 provider, and a control area operator. This subsection does 118 13 not confer exclusive jurisdiction in collection matters upon 118 14 the board. 118 15 3. The district court has original jurisdiction concerning 118 16 disputes with respect to all rates and charges of a consumer- 118 17 owned utility and all other matters concerning a consumer- 118 18 owned utility not specifically reserved to the board by this 118 19 chapter or another statute. A complaint shall be filed in the 118 20 district court for the county in which the complainant resides 118 21 or, if the complainant is a nonresident, in the district court 118 22 for Polk county. 118 23 4. The board shall render a decision upon a complaint as 118 24 soon as practicable. A person aggrieved by the board's 118 25 decision may seek judicial review pursuant to chapter 17A. 118 26 5. A delivery service provider or a competitive electric 118 27 service provider shall not take any detrimental action against 118 28 an employee of such provider for the filing of a good faith 118 29 complaint with the board. 118 30 Sec. 15. NEW SECTION. 476B.15 TRANSITION CHARGES. 118 31 1. COSTS OF GENERATION AND CONTRACTS FOR POWER AND ENERGY. 118 32 An electric company is entitled, but not required, to 118 33 implement transition charges under this subsection. If an 118 34 electric company elects to implement transition charges, such 118 35 charges shall be nonbypassable charges collected from each 119 1 end-use consumer within the incumbent provider's assigned 119 2 service area. However, transition charges shall not increase 119 3 the rates for electric service provided under section 476B.8. 119 4 Transition charges under this subsection shall be billed by an 119 5 electric company to end-use consumers, directly or through a 119 6 competitive electric service provider, commencing with service 119 7 rendered on October 1, 2002, and concluding with service 119 8 rendered on and including September 30, 2006. 119 9 Transition charges shall be calculated for each bundled 119 10 retail rate group or code existing on the date the electric 119 11 company files its unbundled rates pursuant to section 476B.4. 119 12 Transition charges shall be calculated each year in which the 119 13 electric company is entitled to implement such charges. 119 14 Transition charges in cents per kilowatt-hour shall be 119 15 calculated by rate group or code by first subtracting the 119 16 market price from the cost of generation, and then multiplying 119 17 that result times a mitigation factor, the percentage of which 119 18 varies by calendar year as follows: 119 19 a. Eighty percent from October 1, 2002, to September 30, 119 20 2003. 119 21 b. Seventy percent from October 1, 2003, to September 30, 119 22 2004. 119 23 c. Sixty percent from October 1, 2004, to September 30, 119 24 2005. 119 25 d. Fifty percent from October 1, 2005, to September 30, 119 26 2006. 119 27 Under no circumstance shall a charge under this subsection 119 28 be less than zero. 119 29 For purposes of this subsection, the cost of generation 119 30 shall be stated in cents per kilowatt-hour included in a 119 31 bundled rate group or code on the effective date of this 119 32 chapter. The cost of generation shall include the return on 119 33 plant investment allowed in the most recent rate proceeding, 119 34 but shall exclude that portion of regulatory assets to be 119 35 recovered under subsection 3 that are attributable to 120 1 generation costs, and the amount of nuclear decommissioning 120 2 expenses included in the rate group or code. 120 3 For purposes of this subsection, the market price shall be 120 4 stated in cents per kilowatt-hour an electric company should 120 5 reasonably be expected to receive for demand and energy from a 120 6 rate group or code when sold in a competitive power market. 120 7 At a minimum, separate values shall be determined by the board 120 8 for firm and interruptible sales. The market price shall be 120 9 determined by the board by no later than March 1, 2002, and 120 10 shall be updated annually. In determining the market price, 120 11 the board shall consider relevant wholesale and retail 120 12 contracts for demand and energy sales and purchases, 120 13 recognizing such factors as the time differentiation of price 120 14 levels in the contracts and whether the prices in the 120 15 contracts are for firm or interruptible service. The board 120 16 shall also consider other relevant information from power 120 17 exchanges, trading hubs, and similar sources. 120 18 An electric company that elects to implement transition 120 19 charges under this subsection shall file tariffs with the 120 20 board that identify the cost of generation to be included in 120 21 the calculation of transition charges to be paid by end-use 120 22 consumers in each bundled rate group or code at the time it 120 23 files its initial unbundled rates under section 476B.4. Rate 120 24 groups or codes, for purposes of calculating transition 120 25 charges, shall be defined in tariffs included in the electric 120 26 company's filing under section 476B.4, subsection 1. The 120 27 board shall issue its decision regarding the transition charge 120 28 tariffs at the same time it issues its order regarding the 120 29 initial unbundled rates filed under section 476B.4. Charges 120 30 approved by the board shall be posted on its website starting 120 31 no later than April 1, 2002. 120 32 2. DIVESTITURE OPTION. The board may permit, but shall 120 33 not require, an incumbent provider that is an electric company 120 34 to divest itself of its generation assets and contracts for 120 35 power and energy. This subsection does not apply to a 121 1 transaction that results in an incumbent provider maintaining 121 2 its delivery service assets and operations subject to rate 121 3 regulation by the board in a legal entity separate from the 121 4 competitive electric service assets and operations, including 121 5 electric generation assets and operations, of that incumbent 121 6 provider and its affiliates. 121 7 No later than January 1, 2001, an incumbent provider, 121 8 including, for the purposes of this subsection, any affiliated 121 9 incumbent provider, may submit an election to divest to the 121 10 board. The election shall be accompanied by the submittal of 121 11 a divestiture plan to the board, which shall review the plan. 121 12 By July 1, 2001, the board shall issue an order approving or 121 13 modifying the plan. The incumbent provider may revoke its 121 14 election within ninety days of the board's order approving or 121 15 modifying the plan. If the incumbent provider does not revoke 121 16 its election, the incumbent provider shall divest its 121 17 generation assets and contracts for power and energy in 121 18 accordance with the board's order. Such divestiture must be 121 19 completed by October 1, 2002, unless such time is extended for 121 20 good cause as determined by the board. An incumbent provider 121 21 that divests its generation assets and contracts for power and 121 22 energy pursuant to this subsection is not entitled to recover 121 23 generation transition charges under subsection 1. 121 24 If an incumbent provider makes an election to divest, the 121 25 incumbent provider shall divest of all generation assets and 121 26 contracts for power and energy that are included in the 121 27 incumbent provider's most recent board-determined Iowa revenue 121 28 requirement except to the extent such divestiture is found by 121 29 a court of proper jurisdiction to be impermissible. All 121 30 generation assets and contracts for power and energy not 121 31 included in the incumbent provider's most recent board- 121 32 determined Iowa revenue requirement shall be subject to a 121 33 determination by the board as to whether divestiture is in the 121 34 public interest, except to the extent such divestiture is 121 35 found by a court of proper jurisdiction to be impermissible. 122 1 The board shall not allow any supply contracts, for which 122 2 bids are sought as part of the divestiture plan to satisfy an 122 3 incumbent provider's standard offer service obligation 122 4 pursuant to section 476B.8, to extend beyond October 1, 2006. 122 5 Unless waived by the board upon a showing of substantial 122 6 harm to the public interest, the divestiture plan shall 122 7 include transfer of the decommissioning responsibility for any 122 8 nuclear generation asset to the purchaser of such asset. 122 9 For each incumbent provider electing divestiture under this 122 10 subsection, the board shall determine the sum of the following 122 11 amounts: 122 12 a. The net of an incumbent provider's generation-related 122 13 regulatory assets and liabilities. 122 14 b. The difference between net plant investment associated 122 15 with an incumbent provider's generation assets and the market 122 16 value of the generation assets. 122 17 c. The difference between future contract payments and the 122 18 market value of an incumbent provider's purchased power 122 19 contracts. 122 20 When determining the market value of generation assets and 122 21 existing purchase power contracts, the board shall rely solely 122 22 on the market information resulting from the sale of the 122 23 generation assets and the rights to energy and demand under 122 24 contracts held by the incumbent provider including the supply 122 25 contracts to meet the incumbent provider's standard offer 122 26 service obligation. 122 27 To the extent that the divestiture realizes an amount less 122 28 than the sum of the amounts determined in paragraphs "a", "b", 122 29 and "c," beginning no later than October 1, 2002, the board 122 30 shall provide an incumbent provider a reasonable opportunity 122 31 to recover all costs not recovered through the sale of 122 32 generation assets and the contracts for energy and demand 122 33 through nonbypassable charges. This cost recovery opportunity 122 34 must be equal to the incumbent provider's opportunity to 122 35 recover costs before the effective date of this chapter. 123 1 To the extent that the divestiture realizes an amount 123 2 greater than the sum of the amounts determined in paragraphs 123 3 "a", "b", and "c", such difference shall be applied to reduce 123 4 end-use consumers' responsibility for nuclear decommissioning 123 5 costs held by the incumbent provider after divestiture. To 123 6 the extent that the divestiture realizes an amount greater 123 7 than the sum of the amounts determined in paragraphs "a", "b", 123 8 and "c", and no responsibility for nuclear decommissioning 123 9 costs remains with the incumbent provider, the incumbent 123 10 provider shall be entitled to retain fifty percent of the 123 11 remaining amounts. The other fifty percent shall be credited 123 12 to the incumbent provider's end-use consumers in the form of a 123 13 credit on bills for delivery service. The board shall 123 14 determine the allocation of the credit among delivery service 123 15 consumers. 123 16 Nothing in this chapter shall be construed to give an 123 17 incumbent provider a greater or lesser opportunity to recover 123 18 all costs than existed prior to the effective date of this 123 19 chapter. 123 20 This subsection, including the treatment of proceeds from 123 21 divestiture, shall not be construed to apply to any other 123 22 provision of this chapter or to any regulatory or legal 123 23 proceeding not pertaining to this specific subsection. 123 24 All costs that are afforded recovery as a result of 123 25 generation asset divestiture pursuant to this subsection shall 123 26 qualify for securitization as set forth in section 476B.17. 123 27 All savings from this securitization shall flow back to end- 123 28 use consumers through a reduction in the nonbypassable charge 123 29 required under this subsection. 123 30 3. REGULATORY ASSETS AND LIABILITIES. 123 31 a. Regulatory assets and regulatory liabilities exist 123 32 because regulators have allowed recovery of certain costs in 123 33 different time periods than normally recognized under 123 34 generally accepted accounting principles, with assurances to 123 35 an incumbent provider that is an electric company of ultimate 124 1 recovery. An incumbent provider that is an electric company 124 2 shall be permitted, but not required, to recover all of its 124 3 net regulatory assets attributable to electric operations in 124 4 this state. For purposes of this subsection, net regulatory 124 5 assets equals regulatory assets less regulatory liabilities. 124 6 For the purpose of this paragraph, regulatory assets shall 124 7 include but not be limited to the costs of programs offered 124 8 under section 476.6, subsections 17 and 19, the costs of 124 9 contracts or arrangements entered into under section 476.43, 124 10 and the costs of contracts or arrangements entered into under 124 11 199 IAC 15.11(5). 124 12 b. Recovery of net regulatory assets shall be accomplished 124 13 through charges on all delivery services within the electric 124 14 company's assigned service area, including electricity 124 15 delivered under rates or charges charged pursuant to section 124 16 476B.8. The net regulatory asset charges may be either 124 17 positive or negative, and may vary by type of delivery service 124 18 to the extent such variation is just, reasonable, and based 124 19 upon relevant cost factors. The board may require that such 124 20 charges be nonbypassable. Collection of the net regulatory 124 21 asset charges shall commence on October 1, 2002. 124 22 c. An electric company electing to recover net regulatory 124 23 assets shall annually file with the board its estimates of the 124 24 unamortized amount of regulatory assets and liabilities. The 124 25 initial estimates shall be filed with the initial unbundled 124 26 rate filing pursuant to section 476B.4, followed by annual 124 27 filings until the amortization of these net assets is 124 28 completed. Such filing shall include a proposed amortization 124 29 period or periods over which the net assets are to be 124 30 recovered, estimated sales in kilowatt-hours in its assigned 124 31 service area during the first year of the proposed 124 32 amortization period, and any proposed variation in charges by 124 33 type of delivery service. The electric company shall also 124 34 file supporting documentation for its proposals. If it does 124 35 not approve the electric company's filing, the board after 125 1 notice and opportunity for hearing shall determine the 125 2 regulatory assets and regulatory liabilities of the electric 125 3 company eligible for recovery; the appropriate periods over 125 4 which net regulatory assets shall be recovered, which shall 125 5 not exceed fifteen years; and the charges applicable to each 125 6 type of delivery service. In determining net regulatory 125 7 assets, the board shall not combine or net assets or 125 8 liabilities that would be recorded on the electric company's 125 9 books absent regulation or that would cause violation of the 125 10 normalization provisions of the Internal Revenue Code. The 125 11 board shall issue its decision regarding the regulatory asset 125 12 filing at the time it issues its order regarding the initial 125 13 unbundled rates filed under section 476B.4. Charges approved 125 14 by the board shall be posted on its website starting on April 125 15 1, 2002. 125 16 4. START-UP COSTS OF DELIVERY SERVICE PROVIDERS. The 125 17 board shall permit a delivery service provider that is an 125 18 electric company to recover one hundred percent of its 125 19 reasonable start-up costs caused by the transition to 125 20 competition, including the reasonable costs associated with 125 21 implementing the requirements of this chapter and the board 125 22 orders issued and rules adopted pursuant to this chapter. 125 23 Start-up costs to be considered by the board shall include, 125 24 but are not limited to, costs associated with new computer 125 25 information systems, changes in computer information systems, 125 26 new and existing metering, and costs incurred pursuant to 125 27 section 476B.24. The board may require that recoverable 125 28 start-up costs be amortized over a period not to exceed ten 125 29 years. Start-up cost charges under this subsection shall not 125 30 be applicable to the rates for electric service provided under 125 31 section 476B.8. 125 32 An electric company electing to recover start-up costs 125 33 shall file estimates of the start-up costs and a tariff for 125 34 recovery of the costs with the board at the time it files its 125 35 initial unbundled rates pursuant to section 476B.4. The board 126 1 shall issue its decision regarding the start-up cost filing at 126 2 the time it issues its order regarding the initial unbundled 126 3 rate filing. Charges approved by the board shall be posted on 126 4 its website starting on April 1, 2002. Collection of start-up 126 5 cost charges shall commence on October 1, 2002. Electric 126 6 companies shall file annually with the board a reconciliation 126 7 of start-up costs actually collected versus estimated start-up 126 8 costs. The first reconciliation filing shall be made no later 126 9 than March 31, 2003, reflecting costs and revenues for the 126 10 period ending December 31, 2002. The board shall allow the 126 11 electric company to adjust its cost recovery factors to 126 12 reflect any differences, with the intent of allowing one 126 13 hundred percent recovery of reasonable costs incurred. The 126 14 board shall have ninety days to issue its decision on the 126 15 reconciliation factors. 126 16 5. CONSUMER-OWNED UTILITY TRANSITION COSTS. 126 17 a. ELECTRIC COOPERATIVES. The local governing body of an 126 18 electric cooperative shall determine the nature and amount of 126 19 transition costs which shall be paid by its respective 126 20 members. The local governing body shall have the sole 126 21 authority to determine the manner, rates, charges, terms, and 126 22 conditions of recovery. A member electric cooperative is 126 23 authorized, but not required, to collect the transition costs 126 24 through nonbypassable charges on all end-use consumers in its 126 25 assigned service area. The calculation of transition costs by 126 26 an electric cooperative shall consider the market value of 126 27 capacity and energy. The transition cost recovery shall be 126 28 reconciled periodically. 126 29 b. MUNICIPAL UTILITIES. The local governing body of a 126 30 municipal utility shall determine the nature and amount of 126 31 transition costs which shall be paid through nonbypassable 126 32 charges by the end-use consumers in its assigned service area. 126 33 The local governing body shall have the sole authority to 126 34 determine the manner, rates, charges, terms, and conditions of 126 35 recovery. Each municipal utility is authorized, but not 127 1 required, to collect the transition costs on all end-use 127 2 consumers in its assigned service area. The calculation of 127 3 transition costs by a municipal utility shall consider the 127 4 market value of capacity and energy. The transition cost 127 5 recovery shall be reconciled periodically. 127 6 Sec. 16. NEW SECTION. 476B.16 NUCLEAR DECOMMISSIONING. 127 7 1. RECOVERY OF NUCLEAR DECOMMISSIONING CHARGES. An 127 8 incumbent provider or electric cooperative, and its successors 127 9 or assigns, owning an interest in or having responsibility as 127 10 a matter of contract, statute, or energy purchase agreement 127 11 for the nuclear decommissioning costs of the Duane Arnold 127 12 energy center, Quad Cities nuclear power station, Cooper 127 13 nuclear station, or La Crosse boiling water reactor shall be 127 14 allowed to recover nuclear decommissioning costs. An electric 127 15 company shall be allowed to recover nuclear decommissioning 127 16 costs allocated to Iowa through nonbypassable charges, 127 17 including charges on service provided pursuant to section 127 18 476B.8. The tariffs of an electric company for the nuclear 127 19 decommissioning charges shall conform to subsection 2. An 127 20 electric company shall file its nuclear decommissioning 127 21 tariffs with the board as part of the filing of initial 127 22 unbundled rates under section 476B.4. The local governing 127 23 body of each consumer-owned utility shall determine the amount 127 24 of and method and timing for recovery of nuclear 127 25 decommissioning costs and shall post that information as 127 26 provided in section 476B.4. All nuclear decommissioning 127 27 tariffs of electric companies under this section and the 127 28 initial charges under such tariffs shall become effective 127 29 October 1, 2002. 127 30 2. DESIGN OF NUCLEAR DECOMMISSIONING TARIFF FOR ELECTRIC 127 31 COMPANIES. The nuclear decommissioning tariffs of an 127 32 incumbent provider that is an electric company shall provide 127 33 for the nonbypassable charges to be collected from each end- 127 34 use consumer within the incumbent provider's assigned service 127 35 area and in each assigned service area in Iowa of any 128 1 affiliated incumbent provider. The decommissioning charges 128 2 shall be a surcharge upon unbundled distribution service rates 128 3 and rates charged pursuant to section 476B.8. Decommissioning 128 4 charges shall be billed to each end-use consumer, directly or 128 5 through a competitive electric service provider, commencing 128 6 with bills issued on and after October 1, 2002. The 128 7 allocation of decommissioning charges among end-use consumers 128 8 shall be subject to approval by the board. The 128 9 decommissioning charges in such tariffs shall be set at a 128 10 level that will ensure the incumbent provider recovery of its 128 11 nuclear decommissioning costs, with the objective of achieving 128 12 full recovery as of the date on which decommissioning is 128 13 commenced for a unit or units. The decommissioning charges 128 14 shall be adjusted periodically to reflect increases or 128 15 decreases in the estimated costs of decommissioning the 128 16 nuclear unit or units, irrespective of any increases or 128 17 decreases in other costs or revenues of the incumbent provider 128 18 or delivery service provider. The decommissioning charges 128 19 shall cease when the nuclear plant is fully decommissioned or 128 20 the incumbent provider no longer has a responsibility for 128 21 nuclear decommissioning costs. All revenues collected under 128 22 the tariff shall be contributed to appropriate decommissioning 128 23 trust funds to be used to decommission the nuclear unit or 128 24 units or to reduce the amounts to be charged under such 128 25 tariffs in the future. All material changes to the trust fund 128 26 agreements, including a change in the trustee, shall be filed 128 27 with the board for approval. Decommissioning charges in such 128 28 tariffs shall be considered the equivalent of "cost of 128 29 service" amounts for purposes of determining contributions 128 30 deductible by the incumbent provider pursuant to section 468A 128 31 of the Internal Revenue Code. 128 32 3. ADJUSTMENT OF CHARGES FOR ELECTRIC COMPANIES. Nuclear 128 33 decommissioning tariffs filed with the board under this 128 34 section by an electric company shall provide that no increase 128 35 in charges under the decommissioning tariffs may take effect 129 1 until approved by the board. Notice to end-use consumers and 129 2 competitive electric service providers served under delivery 129 3 service tariffs or with whom the delivery service provider has 129 4 delivery service contracts, whether or not written, shall not 129 5 be required. The board may suspend the filing and hold 129 6 hearings as provided in section 476B.9, subsection 5. 129 7 Sec. 17. NEW SECTION. 476B.17 SECURITIZATION. 129 8 1. FINDINGS. The general assembly finds and declares all 129 9 of the following: 129 10 a. Securitization is a common financing technique which 129 11 has been used by other states as an effective tool to mitigate 129 12 transition costs. 129 13 b. It is in the state's interest to allow securitization 129 14 because it will help incumbent providers manage their costs 129 15 without increasing rates paid by end-use consumers. 129 16 c. Securitization will not create obligations of the state 129 17 or any of its political subdivisions. 129 18 2. DEFINITION. For purposes of this section, "incumbent 129 19 provider" includes a delivery service provider who was an 129 20 incumbent provider prior to October 1, 2002. 129 21 3. ISSUANCE OF TRANSITIONAL FUNDING ORDERS. 129 22 a. Upon application of an incumbent provider, the board is 129 23 authorized to issue transitional funding orders to create, 129 24 establish, and grant rights in, to, and under intangible 129 25 transition property in and to any grantee, incumbent provider, 129 26 issuer, or assignee in accordance with the terms of such 129 27 application. 129 28 b. After the effective date of this chapter, an incumbent 129 29 provider may file any number of applications for transitional 129 30 funding orders. An application for a transitional funding 129 31 order shall contain the incumbent provider's detailed proposal 129 32 for all of the following: 129 33 (1) The assignment, sale, pledge, or other transfer of, or 129 34 the establishment, creation, and granting of rights in, to, or 129 35 under intangible transition property. 130 1 (2) The issuance of transitional funding instruments. 130 2 (3) The amount of transitional funding instruments to be 130 3 issued which amount shall not exceed four hundred million 130 4 dollars in the aggregate for any incumbent provider. 130 5 (4) The method for calculating the amount of instrument 130 6 funding charges to be collected. 130 7 (5) The method for allocating such instrument funding 130 8 charges among classes of responsible consumers. 130 9 (6) The time to maturity for the transitional funding 130 10 instruments. 130 11 (7) The incumbent provider's planned use of the proceeds 130 12 from the issuance. 130 13 c. After notice, the board shall hold a hearing to 130 14 determine whether the application and requested transitional 130 15 funding order are in compliance with this section. The board 130 16 shall complete its review of the application and issue its 130 17 final transitional funding order no later than ninety days 130 18 after the filing of such application. The order shall create 130 19 and establish the proposed intangible transition property and 130 20 approve the proposed sale, pledge, assignment, or other 130 21 transfer of, or the establishment, creation, and granting of 130 22 rights in, to, or under intangible transition property; the 130 23 proposed issuance of transitional funding instruments; and the 130 24 proposed imposition and collection of the corresponding 130 25 instrument funding charges. Such transitional funding order 130 26 shall be issued if the board finds that each of the following 130 27 conditions are met: 130 28 (1) The application provides that the incumbent provider 130 29 will apply all net savings from the issuance of the 130 30 transitional funding instruments during the term of the 130 31 instruments in the following order: 130 32 (a) An amount, not to exceed two million dollars annually, 130 33 to reduce the charges under section 476B.13, subsection 1. 130 34 (b) Any remainder to compensate the incumbent provider for 130 35 transition costs associated with generation assets and 131 1 contracts for power and energy not recovered under section 131 2 476B.15, subsection 1. 131 3 (c) Any remainder to reduce charges under section 476B.15, 131 4 subsection 4. 131 5 (d) Any remainder to reduce charges under section 476B.15, 131 6 subsection 3. 131 7 (e) Eighty percent of any remainder to further reduce the 131 8 charges under section 476B.13, subsection 1. 131 9 Any remaining savings may be retained by the incumbent 131 10 provider. After October 1, 2006, annual transition costs 131 11 associated with generation assets and contracts for power and 131 12 energy not recovered under section 476B.15, subsection 1, 131 13 shall equal those costs determined by the board for the year 131 14 ending October 1, 2006. If the incumbent provider issues 131 15 transitional funding instruments prior to October 1, 2002, any 131 16 savings associated with the period prior to October 1, 2002, 131 17 shall be amortized in equal annual amounts in accordance with 131 18 the above purposes over the period from October 1, 2002, 131 19 through the remaining term of the transitional funding 131 20 instruments. Incumbent providers choosing to divest their 131 21 generation assets under section 476B.15, subsection 2, shall 131 22 first use the savings from securitization to compensate 131 23 themselves for any losses which may result from divestiture, 131 24 with any remaining savings to be allocated to the purposes, 131 25 and in the order provided, as set forth in this subparagraph. 131 26 (2) The expected maturity date for the transitional 131 27 funding instruments, and the final date on which the incumbent 131 28 provider, grantee, or assignee is entitled to charge and 131 29 collect instrument funding charges, shall each be set to occur 131 30 no later than December 31, 2012, subject to subsection 4, 131 31 paragraph "m". 131 32 (3) The instrument funding charges authorized in such 131 33 order will be deducted and stated separately from eligible 131 34 rates, all as provided in subsection 4, paragraph "d", and in 131 35 a manner conforming to the allocation of the instrument 132 1 funding charges implemented pursuant to subparagraph (4). 132 2 (4) The proposed method for allocating such instrument 132 3 funding charges among all classes of responsible consumers is 132 4 just and reasonable. 132 5 (5) The issuance of the transitional funding instruments 132 6 will not cause eligible rates to increase over the rates which 132 7 would otherwise be chargeable from time to time in the absence 132 8 of such issuance. 132 9 (6) Use of transitional funding proceeds shall not result 132 10 in the common equity component of the incumbent provider's 132 11 capital structure, exclusive of the portion of its capital 132 12 structure that consists of obligations representing 132 13 transitional funding instruments, as measured by the most 132 14 recently available thirteen-month average when adjusted for 132 15 the use of proceeds, being reduced below the lesser of forty- 132 16 two and one-half percent or the common equity percentage as of 132 17 December 31, 1998. The incumbent provider shall not use the 132 18 proceeds from transitional funding instruments to repay or 132 19 retire obligations incurred by any affiliate of the incumbent 132 20 provider without the consent of the board. However, consent 132 21 is not required to repay or retire debt or equity securities 132 22 of the incumbent provider which are held by the parent company 132 23 of the incumbent provider. A disbursement out of retained 132 24 earnings from the incumbent provider to its parent will not be 132 25 treated as repayment or retirement of an obligation of an 132 26 affiliate for purposes of this section. 132 27 (7) The incumbent provider will use the net proceeds of 132 28 the sale and issuance of the transitional funding instruments 132 29 to repay or refinance debt and equity, or to replenish cash 132 30 used for such purposes. 132 31 d. A transitional funding order issued by the board shall 132 32 become effective in accordance with its terms only after the 132 33 incumbent provider files with the board its written consent to 132 34 all terms and conditions of such order. After the issuance of 132 35 a transitional funding order, the incumbent provider, grantee, 133 1 or assignee shall retain sole discretion regarding whether to 133 2 cause transitional funding instruments to be issued, including 133 3 the right to defer or postpone such issuance or to change the 133 4 terms of such instruments as allowed by such order. 133 5 4. TERMS AND PROVISIONS OF TRANSITIONAL FUNDING ORDERS. 133 6 a. CREATION OF INTANGIBLE TRANSITION PROPERTY. A 133 7 transitional funding order shall create intangible transition 133 8 property in favor of an incumbent provider or grantee 133 9 representing the right to impose and collect instrument 133 10 funding charges necessary to pay principal and interest on the 133 11 transitional funding instruments authorized in the order 133 12 together with premium, servicing fees and other fees, costs, 133 13 and charges related to such funding instruments, and to fund 133 14 or maintain any required reserves, after giving effect to 133 15 delays in bill collections and uncollectibles. The party in 133 16 whose favor such rights are granted and any assignee of such 133 17 rights shall be granted the power to levy general tariffs on 133 18 responsible consumers of an incumbent provider or any other 133 19 person required to pay an instrument funding charge in order 133 20 to collect the instrument funding charges authorized in such 133 21 order and in order to facilitate the issuance of transitional 133 22 funding instruments authorized in such order. The board may 133 23 create, establish, and grant such rights under this paragraph 133 24 in and to such party with or without receiving consideration 133 25 from such party. 133 26 b. BASIC TERMS. The transitional funding order shall 133 27 authorize the establishment, creation, and granting of rights 133 28 in and to intangible transition property; any requested sale, 133 29 pledge, assignment, or other transfer of such rights; the 133 30 issuance of a specific dollar amount of transitional funding 133 31 instruments by or on behalf of an incumbent provider, 133 32 assignee, issuer, or grantee, as the case may be in an amount 133 33 not exceeding the limits set forth in subsection 3, paragraph 133 34 "b"; and the imposition and collection of instrument funding 133 35 charges projected to be sufficient to pay when due the 134 1 principal of and interest on the corresponding transitional 134 2 funding instruments, in each case, together with premium, 134 3 servicing fees and other fees, costs, and charges related to 134 4 such funding instruments, and to fund or maintain any required 134 5 reserves. The transitional funding order shall require that 134 6 the proceeds from the issuance of transitional funding 134 7 instruments be used for the purposes set forth in subsection 134 8 3, paragraph "c". Except where this section specifically 134 9 requires otherwise, the collection of instrument funding 134 10 charges and the allocation of any such collections as among 134 11 holders, assignees, issuers, grantees, and any other parties 134 12 entitled to receive portions of such collections, may be 134 13 accomplished according to the applicable transitional funding 134 14 order, or, if the order is silent on any such matters, 134 15 according to the documents relating to the pertinent 134 16 transitional funding instruments. 134 17 c. FLEXIBILITY – CREDIT AND COLLECTION POLICIES. The 134 18 board, in a transitional funding order, shall afford 134 19 flexibility in establishing the terms and conditions of the 134 20 transitional funding instruments including repayment 134 21 schedules, collateral, required debt service and other 134 22 reserves, interest rates and other financing costs, and the 134 23 ability of the incumbent provider, at its option, to effect a 134 24 series of issuances of transitional funding instruments and 134 25 correlated assignments, sales, pledges, or other transfers of 134 26 intangible transition property. At the request of an 134 27 incumbent provider, the board in its transitional funding 134 28 order may establish such terms with respect to credit and 134 29 collection policies to be followed by persons collecting 134 30 instrument funding charges as the incumbent provider may 134 31 reasonably demonstrate are likely to be required for at least 134 32 two nationally recognized statistical rating agencies to rate 134 33 the transitional funding instruments in the highest rating 134 34 category assigned by such agencies to securities of comparable 134 35 maturities. 135 1 d. TARIFFS. Concurrently with the issuance of 135 2 transitional funding instruments, an incumbent provider, 135 3 grantee, issuer, or an assignee shall begin to impose and 135 4 collect the specified instrument funding charges from 135 5 responsible consumers, classes of responsible consumers, and 135 6 any other persons or groups of persons as set forth in the 135 7 relevant transitional funding order and shall file tariffs in 135 8 accordance with this paragraph. As a precondition to the 135 9 imposition of any instrument funding charges, an incumbent 135 10 provider shall file tariffs directing that the amount of such 135 11 instrument funding charges be deducted, stated, and collected 135 12 separately from the amounts otherwise billed by such incumbent 135 13 provider for eligible rates as set forth in the transitional 135 14 funding order. Upon the effectiveness of such tariffs, the 135 15 amounts of instrument funding charges thereby deducted and to 135 16 be deducted become intangible transition property as specified 135 17 in the transitional funding order and the rights to such 135 18 intangible transition property shall constitute a current 135 19 property right. The board shall not review such tariffs 135 20 except to confirm that the instrument funding charges 135 21 authorized in the transitional funding order have been 135 22 deducted and stated separately from eligible rates in effect 135 23 at such time, and the filing of any such tariff shall not be 135 24 suspended for any other reason. Deductions referred to in 135 25 this paragraph shall not be construed as a change in or 135 26 otherwise require a recalculation of the authorized amounts of 135 27 eligible rates. Instrument funding charges shall be 135 28 recoverable with respect to services for which the deductions 135 29 provided in this paragraph have become effective and such 135 30 deductions shall not be effective with respect to any services 135 31 or power in respect of which instrument funding charges have 135 32 not been so authorized and imposed. 135 33 e. PERIODIC ADJUSTMENTS. The board shall provide in any 135 34 transitional funding order for a procedure for periodic 135 35 adjustments to the instrument funding charges to ensure 136 1 adequate revenues from such instrument funding charges for 136 2 repaying principal of the transitional funding instruments in 136 3 accordance with their expected amortization schedule, for 136 4 paying interest and related fees and expenses, and for funding 136 5 and maintaining required reserves on a timely basis. If so 136 6 requested by an incumbent provider in an application for a 136 7 transitional funding order, the transitional funding order may 136 8 specify a dollar or percentage amount of variation from the 136 9 projected revenues within which no such adjustment will be 136 10 required, set forth a maximum adjustment amount for the 136 11 instrument funding charges, or both. If an adjustment 136 12 described in this paragraph is required, such adjustment shall 136 13 be implemented by the incumbent provider, grantee, assignee, 136 14 or issuer, as applicable, with prior written notice to the 136 15 board. Any such adjustment shall be calculated to include 136 16 amounts necessary for recovery of any additional costs 136 17 incurred by the incumbent provider, grantee, assignee, or 136 18 issuer as a result of the relevant delay in collections of 136 19 instrument funding charges. If any such adjustment would 136 20 cause the amount of any instrument funding charge to exceed 136 21 the eligible rates from which such instrument funding charge 136 22 is to be deducted, the relevant incumbent provider may ratably 136 23 allocate the deficiency to other responsible consumers as part 136 24 of the adjustment mechanism set forth in this paragraph and in 136 25 the relevant transitional funding order. If, as a result of 136 26 any adjustment, the amount of any instrument funding charge, 136 27 as adjusted, will exceed an amount greater than the amount of 136 28 the instrument funding charge initially authorized by the 136 29 board in its transitional funding order, the relevant 136 30 incumbent provider shall be obligated to file amendatory 136 31 tariffs in compliance with paragraph "f". 136 32 f. AMENDATORY TARIFFS. If an adjustment under paragraph 136 33 "e" results in the amount of any instrument funding charge as 136 34 so adjusted exceeding the amount of the instrument funding 136 35 charge initially authorized by the board in its transitional 137 1 funding order, the relevant incumbent provider shall file 137 2 amendatory tariffs reducing the amounts otherwise billed by 137 3 such incumbent provider for eligible rates by the amount of 137 4 such excess. Such amendatory tariff shall be subject to the 137 5 provisions of paragraph "d", except that the failure of such 137 6 amendatory tariff to become effective for any reason shall not 137 7 delay or impair the effectiveness of the adjustments required 137 8 under paragraph "e" and the obligation of responsible 137 9 consumers and other persons or groups of persons to pay 137 10 instrument funding charges as so adjusted shall not be subject 137 11 to any defense, counterclaim, or right of setoff arising as a 137 12 result of failure by the incumbent provider to comply with 137 13 this paragraph. This paragraph does not restrict any 137 14 responsible end-use consumer or other person from bringing any 137 15 suit in any court or from exercising any other legal or 137 16 equitable remedy against an incumbent provider for any failure 137 17 by such incumbent provider to comply with this paragraph. 137 18 g. NONRECOURSE STATUS – NO DEFENSE, COUNTERCLAIM, OR 137 19 SETOFF. Except as otherwise specifically set forth in the 137 20 transitional funding order, the transitional funding 137 21 instruments issued pursuant to such order shall be nonrecourse 137 22 to the credit or to any assets of the incumbent provider other 137 23 than any assets comprising intangible transition property. 137 24 The obligation of responsible consumers and other persons to 137 25 pay instrument funding charges shall be contingent upon the 137 26 receipt by such responsible consumers and other persons of 137 27 delivery service or other services related to the provision of 137 28 electric power for which eligible rates may be assessed, but 137 29 the transitional funding order shall specifically provide that 137 30 such instrument funding charges will not be subject to any 137 31 defense, counterclaim, or right of set-off arising as a result 137 32 of failure by the incumbent provider, upon whose application 137 33 the intangible transition property was created, to perform or 137 34 provide past, present, or future services. 137 35 h. TRANSFER AND SERVICING. On such conditions as the 138 1 board may approve in the relevant transitional funding order, 138 2 the interest of any party in intangible transition property 138 3 may be assigned, sold or otherwise transferred, in whole or in 138 4 part, and may, in whole or in part, be pledged or assigned as 138 5 security to or for the benefit of a holder or holders. To the 138 6 extent that any such interest or portion of such interest is 138 7 assigned, sold, pledged, or otherwise transferred or is 138 8 established, created, and granted to a party other than the 138 9 incumbent provider, the board, in the relevant transitional 138 10 funding order, shall authorize the incumbent provider or any 138 11 affiliate of the incumbent provider to contract with any owner 138 12 or pledgee of such intangible transition property and any 138 13 holders of the relevant transitional funding instruments to 138 14 collect the applicable instrument funding charges for the 138 15 benefit and account of such persons, and such incumbent 138 16 provider or affiliate shall, except as otherwise specified in 138 17 the transitional funding order, account for and remit the 138 18 applicable instrument funding charges, without the obligation 138 19 to remit any investment earnings on such charges, to or for 138 20 the account of the relevant persons. The obligation of such 138 21 incumbent provider or affiliate to collect and remit the 138 22 applicable instrument funding charges shall continue 138 23 irrespective of whether such incumbent provider is providing 138 24 the services to which such instrument funding charges relate. 138 25 If the documents creating the transitional funding instruments 138 26 so provide, such obligations, in the event of a default by the 138 27 incumbent provider or affiliate in performing such 138 28 obligations, shall be undertaken and performed by any other 138 29 entity selected by the grantee, assignee or any holder, group 138 30 of holders or trustee or agent on behalf of such holder or 138 31 holders, as the case may be. However, a failure by the 138 32 designated party to perform such obligations shall not affect 138 33 the existence of the intangible transition property or the 138 34 instrument funding charges or the validity or enforceability 138 35 of the instrument funding charges in accordance with their 139 1 terms. 139 2 i. REPORTING. An incumbent provider shall file a 139 3 statement of the final terms of the issuance of any series of 139 4 transitional funding instruments with the board within ninety 139 5 days of the receipt of proceeds from such issuance. In 139 6 addition, the board may require an incumbent provider to file 139 7 periodic reports on its use of the proceeds at intervals of 139 8 not less than one year. Commencing January 1, 2001, and 139 9 annually thereafter, concluding on January 1, 2009, if an 139 10 incumbent provider has not issued the maximum amount of 139 11 transitional funding instruments permitted by this section, 139 12 the incumbent provider shall advise the board of the reasons 139 13 for not doing so. 139 14 j. REFINANCING. Any adjustment to instrument funding 139 15 charges that is necessary due to subsequent refinancing of 139 16 transitional funding instruments shall be authorized by the 139 17 board in a supplemental order. Unless specifically requested 139 18 by the incumbent provider in the application for such 139 19 supplemental order, no refinancing of previously issued 139 20 transitional funding instruments shall be deemed a new 139 21 issuance to be counted towards the dollar limitations set 139 22 forth in subsection 3, paragraph "b". 139 23 k. NO REDUCTION, POSTPONEMENT, IMPAIRMENT, OR TERMINATION. 139 24 A transitional funding order, the intangible transition 139 25 property created and established by such order, or the 139 26 instrument funding charges authorized to be imposed and 139 27 collected under such order, shall not be subject to reduction, 139 28 postponement, impairment, or termination by any subsequent 139 29 action of the board. However, a party to the board's 139 30 proceeding relating to the transitional funding order may seek 139 31 judicial review of such transitional funding order in 139 32 accordance with the provisions of other applicable law. 139 33 l. ONGOING VALIDITY. A transitional funding order shall 139 34 remain valid notwithstanding the invalidation of any portion 139 35 of this chapter. A transitional funding instrument, 140 1 instrument funding charge, intangible transition property, 140 2 lien, or other right established pursuant to a transitional 140 3 funding order is valid and binding in accordance with terms of 140 4 such order, notwithstanding that such order or any portion of 140 5 this chapter is later vacated, modified, or otherwise held to 140 6 be wholly or partly invalid. 140 7 m. CONTINUATION OF INTANGIBLE TRANSITION PROPERTY. The 140 8 intangible transition property created under a transitional 140 9 funding order and the authority of the grantee, assignee, 140 10 issuer, incumbent provider, or other person authorized under 140 11 such order to impose and collect instrument funding charges 140 12 and to exercise its rights under a transitional funding order, 140 13 including the right to make periodic adjustments pursuant to 140 14 paragraph "e", shall continue beyond the final date set forth 140 15 in the applicable transitional funding order until such time 140 16 as all transitional funding instruments authorized in such 140 17 order have been paid in full. Upon the later of the final 140 18 date set forth in the applicable transitional funding order 140 19 for the imposition and collection of instrument funding 140 20 charges or the repayment in full of any transitional funding 140 21 instruments, as applicable, authorized in such order, the 140 22 authority to impose and collect the related instrument funding 140 23 charges shall cease and any instrument funding charges 140 24 collected in excess of the amount required for the repayment 140 25 of the transitional funding instruments shall be paid to the 140 26 owner of such intangible transition property, and the relevant 140 27 incumbent provider shall be entitled to file tariffs revoking 140 28 any deductions from eligible rates which were granted in 140 29 connection with such instrument funding charges pursuant to 140 30 paragraph "d" or "f". The board shall not review such tariffs 140 31 except to determine that the rates and charges resulting from 140 32 such revocation do not exceed the applicable eligible rates 140 33 which would otherwise have been in effect at the time of such 140 34 revocation had no instrument funding charges ever been 140 35 deducted from such rates. 141 1 5. RELATIONSHIP TO STATE AND OTHER LAW. 141 2 a. The state pledges to, and agrees with, the holders of 141 3 any transitional funding instruments who may enter into 141 4 contracts with an incumbent provider, grantee, assignee, or 141 5 issuer pursuant to this section that the state will not in any 141 6 way limit, alter, impair, or reduce the value of intangible 141 7 transition property created by, or instrument funding charges 141 8 approved by, a transitional funding order so as to impair the 141 9 terms of any contract made by such incumbent provider, 141 10 grantee, assignee, or issuer with such holders or in any way 141 11 impair the rights and remedies of such holders until the 141 12 pertinent transitional funding instruments and interest, 141 13 premium and other fees, costs, and charges related to such 141 14 funding instruments, are fully paid and discharged. An 141 15 incumbent provider, grantee, or issuer is authorized to 141 16 include these pledges and agreements of the state in any 141 17 contract with the holders of transitional funding instruments 141 18 or with any assignees pursuant to this section, and any 141 19 assignees are similarly authorized to include these pledges 141 20 and agreements of the state in any contract with any issuer, 141 21 holder, or any other assignee. This section shall not 141 22 preclude the state from requiring adjustments as may otherwise 141 23 be allowed by law to eligible rates, so long as any such 141 24 adjustment does not directly affect or impair any instrument 141 25 funding charges previously authorized by a transitional 141 26 funding order issued by the board. 141 27 b. A transitional funding instrument issued under this 141 28 section does not constitute debt or liability of the state or 141 29 of any political subdivision, and transitional funding orders 141 30 authorizing such issuance do not constitute a pledge of the 141 31 full faith and credit of the state or of any political 141 32 subdivision. The issuance of transitional funding instruments 141 33 shall not directly, indirectly, or contingently obligate the 141 34 state or any political subdivision to levy or to pledge any 141 35 form of taxation or to make any appropriation for the payment 142 1 of such funding instruments. A transitional funding 142 2 instrument shall be payable solely from the intangible 142 3 transition property or from such other proceeds or property as 142 4 may be pledged for such funding instrument. This section 142 5 shall not be construed to prevent the state or any political 142 6 subdivision from owning any interest in a grantee, assignee, 142 7 or issuer or to prevent any incumbent provider, grantee, 142 8 issuer, or assignee from selling, pledging, or assigning 142 9 intangible transition property or from providing recourse or 142 10 guarantees or any other third-party credit enhancement in 142 11 connection with such sale, pledge, or assignment. 142 12 c. The procedures set forth in this section shall 142 13 constitute the sole procedures by which rights in, to, or 142 14 under intangible transition property may be created, 142 15 established, and granted, and no other approvals shall be 142 16 required under other law for such creation, establishment, 142 17 grant, or for the issuance of transitional funding 142 18 instruments. The rights of incumbent providers, grantees, 142 19 assignees, and holders in and to any such intangible 142 20 transition property shall be interpreted in accordance with 142 21 this section, which shall supersede any other law, rule, or 142 22 regulation to the contrary. 142 23 6. SECURITY INTERESTS IN INTANGIBLE TRANSITION PROPERTY. 142 24 a. Intangible transition property or any right, title, or 142 25 interest in such intangible transition property shall not 142 26 constitute property in which a security interest may be 142 27 created under the uniform commercial code. Additionally, such 142 28 property, or any such right, title, or interest in such 142 29 property shall not be deemed proceeds of any property which is 142 30 not intangible transition property. For purposes of this 142 31 paragraph, the terms "account" and "general intangible", as 142 32 defined under section 554.9106 of the uniform commercial code, 142 33 and the term "instrument", as used in the uniform commercial 142 34 code, shall be deemed to exclude any such intangible 142 35 transition property or any right, title, or interest in such 143 1 intangible transition property. 143 2 b. The granting, perfection, and enforcement of security 143 3 interests in intangible transition property shall be governed 143 4 by this section and not by the uniform commercial code. 143 5 c. A valid and enforceable security interest in intangible 143 6 transition property shall attach and be perfected only as 143 7 follows: 143 8 (1) To the extent a transitional funding instrument is 143 9 purported to be secured by intangible transition property as 143 10 specified in the applicable transitional funding order, the 143 11 lien of the transitional funding instrument shall attach 143 12 automatically to such intangible transition property from the 143 13 time of issuance of the transitional funding instrument. Such 143 14 lien shall be a valid and enforceable security interest in the 143 15 intangible transition property securing the transitional 143 16 funding instruments and shall be continuously perfected if, 143 17 before the date of issuance of the applicable transitional 143 18 funding instrument or within no more than ten days after such 143 19 issuance, a filing has been made by or on behalf of the holder 143 20 with the executive secretary of the board stating that such 143 21 transitional funding instrument has been or is to be issued. 143 22 Any such filing made with the board in respect to such 143 23 transitional funding instrument shall take precedence over any 143 24 subsequent filing except as may otherwise be provided in the 143 25 applicable transitional funding order. 143 26 (2) A lien under this paragraph is enforceable against the 143 27 incumbent provider, any grantee, issuer, or assignee, and any 143 28 third party, including a judicial lien creditor, subject only 143 29 to the rights of a third party holding a security interest in 143 30 the intangible transition property previously perfected in the 143 31 manner described in this subsection if value has been given by 143 32 the purchaser of a transitional funding instrument. A 143 33 perfected lien in intangible transition property is a 143 34 continuously perfected security interest in all then existing 143 35 or future revenues and proceeds arising with respect to the 144 1 associated intangible transition property whether or not the 144 2 electric power and related services included in the 144 3 calculation of such revenues and proceeds have been provided. 144 4 A lien created under this paragraph is perfected, and ranks 144 5 prior to any other lien, including a judicial lien, which 144 6 subsequently attaches to the intangible transition property 144 7 and to any other rights created by the transitional funding 144 8 order or any revenues or proceeds of the foregoing. The 144 9 relative priority of a lien created under this subsection is 144 10 not defeated or adversely affected by changes to the 144 11 transitional funding order or to the instrument funding 144 12 charges payable by a responsible consumer, class of 144 13 responsible consumers, or other person or group of persons 144 14 obligated to pay such charges. 144 15 (3) The relative priority of a lien created under this 144 16 subsection is not defeated or adversely affected by the 144 17 commingling of revenues arising with respect to intangible 144 18 transition property with funds of the incumbent provider or 144 19 other funds of the assignee, issuer, or grantee. 144 20 (4) If a default occurs under a transitional funding 144 21 instrument, the holders of such instrument or their authorized 144 22 representative, as secured parties, may foreclose or otherwise 144 23 enforce the lien in the intangible transition property 144 24 securing the transitional funding instrument, subject to the 144 25 rights of any third parties holding prior security interests 144 26 in the intangible transition property previously perfected as 144 27 provided in this subsection. Upon application by a holder or 144 28 such holder's authorized representative, without limiting any 144 29 other remedies, the board shall order the sequestration and 144 30 payment to such holder or authorized representative of 144 31 revenues arising with respect to the intangible transition 144 32 property pledged to the holder. An order under this 144 33 subsection shall remain in full force and effect 144 34 notwithstanding any bankruptcy, reorganization, or other 144 35 insolvency proceeding with respect to the incumbent provider, 145 1 grantee, assignee, or issuer. 145 2 (5) The board shall maintain segregated records which 145 3 reflect the date and time of receipt of all filings made under 145 4 this subsection. The board may provide that transfers of 145 5 intangible transition property be filed in accordance with the 145 6 same system. 145 7 7. TRUE SALE CHARACTERIZATION OF TRANSFER. 145 8 A sale, assignment, grant, or other transfer of intangible 145 9 transition property in a transaction approved in a 145 10 transitional funding order, unless otherwise provided in the 145 11 documents governing such transaction, shall be irrevocable as 145 12 against the incumbent provider requesting such transitional 145 13 funding order and shall be treated as an absolute transfer of 145 14 all of the transferor's right, title, and interest in, to, and 145 15 under such intangible transition property, or, in the case of 145 16 a grant to a grantee, as an absolute vesting of such property 145 17 in the name of the grantee. Any such sale, assignment, grant, 145 18 or other transfer is perfected as against third persons, 145 19 including judicial lien creditors, when the sale, assignment, 145 20 grant, or other transfer has become effective as between the 145 21 parties, and shall place such intangible transition property 145 22 beyond the reach of the transferor or incumbent provider and 145 23 their respective creditors, as in a true sale, and not as a 145 24 pledge or other financing, of such intangible transition 145 25 property. The characterization of a sale, assignment, grant, 145 26 or other transfer as an absolute transfer or vesting and the 145 27 corresponding characterization of the grantee's or 145 28 transferee's property interest shall not be defeated or 145 29 adversely affected by, among other things, any of the 145 30 following: the commingling of revenues arising with respect 145 31 to intangible transition property with funds of the incumbent 145 32 provider or other funds of the assignee, issuer, or grantee; 145 33 the granting to holders of transitional funding instruments a 145 34 preferred right to the intangible transition property, whether 145 35 direct or indirect; the provision by the incumbent provider, 146 1 grantee, assignee, or issuer of any recourse, collateral, or 146 2 credit enhancement with respect to transitional funding 146 3 instruments; the retention by the assigning party of a partial 146 4 interest in any intangible transition property, whether direct 146 5 or indirect, or whether subordinate or otherwise; or the 146 6 incumbent provider's responsibilities for collecting 146 7 instrument funding charges and any retention of bare legal 146 8 title for the purpose of such collection activities. The 146 9 treatment of any such sale, assignment, grant, or other 146 10 transfer for federal tax purposes shall be governed by 146 11 applicable law without regard to this section. 146 12 8. TREATMENT OF TRANSITIONAL FUNDING INSTRUMENTS IN 146 13 REGULATED RATES. The debt associated with a transitional 146 14 funding instrument shall not be included in the regulated 146 15 capital structure for the purpose of determining regulated 146 16 rates for any service. 146 17 9. ACTIONS WITH RESPECT TO INTANGIBLE TRANSITION PROPERTY 146 18 AND RELATED INSTRUMENT FUNDING CHARGES. 146 19 a. The board shall have exclusive jurisdiction over any 146 20 dispute arising out of the obligations to impose and collect 146 21 instrument funding charges. This section does not prevent a 146 22 holder from bringing an action in any court or from exercising 146 23 any other legal or equitable remedy against an incumbent 146 24 provider for failure to distribute collections of instrument 146 25 funding charges or for any other failure by the incumbent 146 26 provider to perform the contractual obligations agreed to by 146 27 the incumbent provider under any documents pertaining to, or 146 28 executed in connection with, a transitional funding instrument 146 29 issued by or on behalf of the incumbent provider. 146 30 b. An incumbent provider, issuer, assignee, grantee, or 146 31 holder is expressly permitted to bring an action against a 146 32 responsible consumer or other person for nonpayment of any 146 33 instrument funding charges constituting a part of the 146 34 intangible transition property then held by the incumbent 146 35 provider, issuer, assignee, grantee, or holder. Any such 147 1 action shall be subject to any and all applicable consumer 147 2 credit protection laws and other laws relating to origination, 147 3 collection, and reporting of consumer credit obligations. 147 4 10. TAXATION OF TRANSFERS OF INTANGIBLE TRANSITION 147 5 PROPERTY. A sale, grant, pledge, assignment, or other 147 6 transfer of intangible transition property is exempt from any 147 7 state or local sales, income, transfers, gains, receipts, or 147 8 similar taxes. A transfer of intangible transition property 147 9 shall be treated as a pledge or other financing for state tax 147 10 purposes, including state and local income and franchise 147 11 taxes, unless the documents governing such transfer 147 12 specifically state that the transfer is intended to be treated 147 13 otherwise. 147 14 Sec. 18. NEW SECTION. 476B.18 RECIPROCITY. 147 15 A person with an assigned service area in this state, 147 16 including an affiliate of such person, shall not offer 147 17 competitive power supply services within another person's 147 18 assigned service area in this state until the former person 147 19 allows the latter person a reasonable opportunity to offer 147 20 competitive power supply services in the former person's 147 21 assigned service area in this state. If the board suspends 147 22 the dates for commencement of the option to choose competitive 147 23 electric service pursuant to section 476B.7, the board shall 147 24 determine the manner and extent to which this section applies. 147 25 Sec. 19. NEW SECTION. 476B.19 APPLICABILITY OF AUTHORITY 147 26 – CONSUMER-OWNED UTILITIES. 147 27 An electric cooperative and a municipal utility are not 147 28 subject to regulation by the board except as specifically 147 29 provided in this chapter. 147 30 Sec. 20. NEW SECTION. 476B.20 REMEDIES AND PENALTIES. 147 31 1. The board, after notice and opportunity for hearing, 147 32 may impose the following penalties and remedies for the 147 33 following violations: 147 34 a. The board may impose a civil penalty of up to two 147 35 thousand dollars for each nonmaterial violation of a licensing 148 1 requirement, including all board rules and orders, governing a 148 2 competitive electric service provider. The maximum aggregate 148 3 penalty per person pursuant to this paragraph shall not exceed 148 4 twenty thousand dollars per calendar year. 148 5 b. The board may impose a civil penalty of up to ten 148 6 thousand dollars for each material violation of a licensing 148 7 requirement, including all board rules and orders, governing a 148 8 competitive electric service provider. The maximum aggregate 148 9 penalty per person pursuant to this paragraph shall not exceed 148 10 two hundred thousand dollars per calendar year. 148 11 c. The board may impose a civil penalty of up to twenty- 148 12 five thousand dollars for each repeat violation of a licensing 148 13 requirement, including all board rules and orders, governing a 148 14 competitive electric service provider if the board finds the 148 15 violation to be substantial. The maximum aggregate penalty 148 16 per person under this paragraph shall not exceed one million 148 17 dollars per calendar year. 148 18 d. For repeat violations of licensing requirements, 148 19 including board rules and orders, governing a competitive 148 20 electric service provider, the board may by order prohibit the 148 21 competitive electric service provider or any other person 148 22 acting on behalf of the competitive electric service provider 148 23 from billing charges directly associated with the violation. 148 24 e. For repeat substantial violations under paragraph "c" 148 25 occurring within a twenty-four-month period, the board may 148 26 revoke the competitive electric service provider's license if 148 27 the board determines that no less severe remedy is likely to 148 28 correct the competitive electric service provider's conduct. 148 29 A repeat violation for the purpose of this paragraph means 148 30 that the occurrence of the second applicable violation takes 148 31 place subsequent to the date the board has issued a notice of 148 32 violation in a contested case on the initial violation, and 148 33 the board finds that the same provision of this chapter, or 148 34 the same requirement of a board rule or order, has been 148 35 violated in both contested cases. The written notice of 149 1 violation given by the board under this paragraph shall 149 2 specify an appropriate and reasonable time for compliance. 149 3 f. The board may issue a cease and desist order if the 149 4 board finds a competitive electric service provider has 149 5 engaged in conduct to monopolize in the relevant competitive 149 6 market, including, but not limited to predatory pricing as 149 7 defined by applicable law. The board's determination of 149 8 predatory pricing shall be given no weight in any legal action 149 9 brought in court, except with respect to judicial review of a 149 10 ruling brought pursuant to section 476B.23. For a repeat 149 11 violation of a cease and desist order issued pursuant to this 149 12 paragraph, the board may revoke a competitive electric service 149 13 provider's license if the board determines that no less severe 149 14 remedy is likely to result in a change in the competitive 149 15 electric service provider's conduct. This paragraph shall not 149 16 be construed as creating an exemption from federal or state 149 17 antitrust laws. 149 18 g. If a competitive electric service provider 149 19 substantially defaults on its obligations such that a control 149 20 area operator or other person provides emergency supply to 149 21 serve a customer of the defaulting competitive electric 149 22 service provider, the board may impose a monetary penalty on 149 23 the competitive electric service provider which does not 149 24 exceed three times the cost of the emergency supply and may 149 25 also revoke a competitive electric service provider's license 149 26 if the board determines that no less severe remedy is likely 149 27 to result in a change in the competitive electric service 149 28 provider's conduct. 149 29 h. The board may issue a cease and desist order if any 149 30 competitive electric service provider has engaged or is 149 31 engaging in any act or practice in violation of this chapter 149 32 or rule or order of the board, or any act or practice that 149 33 could create a danger to public safety or reliability of the 149 34 delivery system or possibly lead to injury to the public. 149 35 Such order is effective when issued unless otherwise specified 150 1 in the order. For a violation of a cease and desist order 150 2 issued pursuant to this paragraph, the board may revoke a 150 3 competitive electric service provider's license if the board 150 4 determines that no less severe remedy is likely to result in a 150 5 change of the competitive electric service provider's conduct. 150 6 i. The board may impose a civil penalty of up to five 150 7 thousand dollars for each nonmaterial violation of this 150 8 chapter, or a board rule or order, governing delivery service 150 9 providers. The maximum aggregate penalty to which a delivery 150 10 service provider may be subject pursuant to this paragraph 150 11 shall not exceed twenty thousand dollars per calendar year. 150 12 j. The board may impose a civil penalty of up to ten 150 13 thousand dollars for a material violation of this chapter, or 150 14 a board rule or order, by a delivery service provider. The 150 15 maximum aggregate penalty to which a delivery service provider 150 16 may be subject pursuant to this paragraph shall not exceed two 150 17 hundred thousand dollars per calendar year. 150 18 k. The board may impose a civil penalty of up to twenty- 150 19 five thousand dollars for each repeat violation of this 150 20 chapter, or a board rule or order, by a delivery service 150 21 provider if the board finds the violation to be substantial. 150 22 The maximum aggregate penalty to which a delivery service 150 23 provider may be subject pursuant to this paragraph shall not 150 24 exceed one million dollars per calendar year. 150 25 l. For a violation of this chapter, or a board rule or 150 26 order, by a delivery service provider, in addition to the 150 27 penalties and remedies in this subsection, the board may issue 150 28 a cease and desist order and disallow cost recovery of any 150 29 associated costs in electric company rate proceedings. Such 150 30 cease and desist order is effective when issued unless 150 31 otherwise specified in the order. 150 32 2. The board may issue a cease and desist order in an 150 33 emergency, without hearing or notice, if the board receives a 150 34 written verified complaint or affidavit showing that a person 150 35 is selling competitive electric services without being duly 151 1 licensed or is engaging in conduct that creates an immediate 151 2 danger to the public safety or reliability of the delivery 151 3 system or is reasonably expected to cause significant, 151 4 imminent, and irreparable public injury. An emergency cease 151 5 and desist order is effective immediately and continues in 151 6 force and effect until further order of the board or until 151 7 stayed by a court of competent jurisdiction. A hearing shall 151 8 be held by the board within ten business days of the issuance 151 9 of the emergency cease and desist order in which the board 151 10 shall in a final order affirm, modify, or set aside the 151 11 emergency cease and desist order. 151 12 3. The board, after notice and opportunity for hearing, 151 13 may order restitution for a person injured by a violation of 151 14 any board rule including, but not limited to, rules concerning 151 15 deceptive, abusive, and unfair sales practices, and the 151 16 provision of safe, reliable, and prompt delivery services and 151 17 competitive electric services. The board shall not have 151 18 authority to order special, incidental, consequential, or 151 19 punitive damages. 151 20 4. The board, after written notice and opportunity for 151 21 hearing, may impose a civil penalty of up to twenty-five 151 22 thousand dollars per occurrence upon a delivery service 151 23 provider for an excessive number of delivery-related outages, 151 24 excessive outage durations, or failure to undertake reasonable 151 25 and prudent maintenance measures to avoid outages. For 151 26 purposes of this subsection, an occurrence does not mean per 151 27 day or per consumer affected by an occurrence. The board 151 28 shall adopt rules specifying the circumstances under which 151 29 penalties would apply and shall give due consideration to 151 30 conditions within and beyond the control of the delivery 151 31 service provider. Delivery service providers that are 151 32 electric companies shall not include such civil penalties in 151 33 regulated rates. The initial rules shall be proposed by 151 34 October 1, 2001. 151 35 5. A person, after previously having been found by the 152 1 board to have violated a provision of this chapter or a rule 152 2 or order of the board, who willfully violates the same 152 3 provision of this chapter, the same rule or provision of an 152 4 order, shall after notice and opportunity for hearing be 152 5 subject to a civil penalty of up to twenty-five thousand 152 6 dollars per violation. For the purposes of this subsection, 152 7 "willful" means knowing and deliberate, with a specific intent 152 8 to violate. 152 9 6. Except as provided in subsection 4, each violation is a 152 10 separate offense, and in the case of a continuing violation, 152 11 each day a violation continues, after a reasonable time 152 12 specified for compliance in the written notice by the board, 152 13 is a separate and distinct offense. A civil penalty assessed 152 14 under this section may be compromised below the maximum by the 152 15 board. In determining the amount of the penalty, or the 152 16 amount agreed upon in the compromise, the board may consider 152 17 the appropriateness of the penalty in relation to the 152 18 financial resources of the person being penalized, the gravity 152 19 of the violation, the good faith of the person in attempting 152 20 to achieve compliance following notification of a violation, 152 21 and any other relevant factors. The board shall not impose a 152 22 civil penalty for any single violation in excess of fifty 152 23 thousand dollars and for any continuing violation in excess of 152 24 five hundred thousand dollars. 152 25 7. Civil penalties collected by the board under this 152 26 section shall be forwarded to the treasurer of state. 152 27 8. The board may apply to the district court of any county 152 28 of the state to enforce any order made or action taken by the 152 29 board pursuant to this section or to have a violation stopped 152 30 or prevented by injunction, mandamus, or other appropriate 152 31 remedy. 152 32 9. The board may award costs of litigation, including 152 33 reasonable attorney and expert witness fees, actually incurred 152 34 by a person found by the board to have materially contributed 152 35 to the enforcement of the remedies or penalties provided for 153 1 in this section. Litigation costs, in an amount approved by 153 2 the board and not to exceed twenty-five thousand dollars, 153 3 shall be paid by the person or persons found by the board to 153 4 be in violation of this chapter. In determining the award, 153 5 the board may consider the financial resources of such person. 153 6 10. A person who suffers harm as a result of a violation 153 7 of this chapter or of any rule or order lawfully issued by the 153 8 board pursuant to this chapter shall have a right to bring an 153 9 action in the courts of this state to recover any damages 153 10 caused by such violation. 153 11 Sec. 21. NEW SECTION. 476B.21 REHEARINGS BEFORE THE 153 12 BOARD. 153 13 Notwithstanding chapter 17A, a party, as defined in the 153 14 rules adopted by the board, to a contested case before the 153 15 board may within twenty days after the issuance of the final 153 16 decision apply for a rehearing. The board shall either grant 153 17 or refuse an application for rehearing within thirty days 153 18 after the filing of the application or, after giving the 153 19 interested parties notice and opportunity to be heard and 153 20 after consideration of all the facts, including those arising 153 21 since the making of the order, may abrogate or modify its 153 22 order. A failure by the board to act upon the application for 153 23 rehearing within the thirty-day period shall be deemed a 153 24 denial of the application. Neither the filing of an 153 25 application for rehearing nor the granting of the application 153 26 shall stay the effectiveness of an order unless the board so 153 27 directs. 153 28 Sec. 22. NEW SECTION. 476B.22 JUDICIAL REVIEW. 153 29 1. Notwithstanding chapter 17A, the district court for 153 30 Polk county has exclusive venue for the judicial review under 153 31 chapter 17A of actions of the board pursuant to section 153 32 476B.4, subsection 1, section 476B.8, subsections 1, 2, and 3, 153 33 and section 476B.9, subsections 5 and 7. 153 34 2. Upon the filing of a petition for judicial review 153 35 pursuant to subsection 1, the clerk of the district court 154 1 shall notify the chief justice of the supreme court for 154 2 purposes of assignment of a district judge under section 154 3 602.1212. The judicial review proceeding shall be heard by 154 4 the district judge appointed by the supreme court under 154 5 section 602.1212, but in the court of venue under subsection 154 6 1. 154 7 3. Notwithstanding chapter 17A, if a delivery service 154 8 provider that is an electric company seeks judicial review of 154 9 an order approving rates for the delivery service provider, 154 10 the level of rates that may be collected, under bond and 154 11 subject to refund, while the judicial review proceeding is 154 12 pending is limited to the level of the temporary rates set by 154 13 the board, or the level of the final rates set by the board, 154 14 whichever is greater. During the period the judicial review 154 15 proceeding is pending, the board shall retain jurisdiction to 154 16 determine the rate of interest to be paid on any refunds 154 17 eventually required on rates collected during judicial review. 154 18 Sec. 23. NEW SECTION. 476B.23 CONTRACT RIGHTS. 154 19 Except as provided in this section, this chapter shall not 154 20 affect the rights and duties of parties under a contract for 154 21 electric service in effect on the effective date of this 154 22 chapter. Notwithstanding a provision in a contract to the 154 23 contrary, contracts entered into pursuant to a board-approved 154 24 pilot project for bundled electric service executed before the 154 25 effective date of this chapter between an incumbent provider 154 26 and an end-use consumer may be terminated without penalty by 154 27 the end-use consumer on or after May 1, 2002, upon ninety 154 28 days' prior written notice to the incumbent provider. 154 29 Sec. 24. NEW SECTION. 476B.24 UTILITY EMPLOYEE 154 30 TRANSITION SERVICES AND BENEFITS. 154 31 1. The general assembly finds, based on experience in 154 32 other industries that have undergone similar transitions, that 154 33 the introduction of competition into the state's electric 154 34 utility industry may result in workforce reductions by 154 35 electric companies which may adversely affect persons who have 155 1 been employed by this state's electric utilities in functions 155 2 important to the public convenience and welfare. The general 155 3 assembly further finds that the impacts on employees and their 155 4 communities of any necessary reductions in the utility 155 5 workforce caused by this restructuring of the electric 155 6 industry shall be mitigated to the extent practicable through 155 7 such means as offers of voluntary severance, retraining, early 155 8 retirement, outplacement, and related benefits. Therefore, 155 9 before any such reduction in the workforce during the period 155 10 between the effective date of this chapter and January 1, 155 11 2007, an electric utility shall present to its employees or 155 12 their representatives a workforce reduction plan outlining the 155 13 means by which the electric utility intends to mitigate the 155 14 impact of such workforce reduction on its employees. If the 155 15 employees are represented by a labor organization, the 155 16 electric utility shall negotiate in good faith with the 155 17 representatives of the affected workforce not less than sixty 155 18 days in advance of any planned reduction in force caused by 155 19 restructuring during the period. Failure to reach agreement 155 20 on a workforce reduction plan may result in either party 155 21 requesting mediation or binding arbitration to determine the 155 22 reasonableness of the plan. If the employees are not 155 23 represented by a labor organization and will involuntarily 155 24 lose employment, the electric utility shall develop a 155 25 workforce reduction plan satisfactory to its board of 155 26 directors, if the electric utility is an electric company, or 155 27 its governing body, if the electric utility is a consumer- 155 28 owned utility. For the purpose of this section, the term 155 29 "electric utility" means the electric delivery service 155 30 operations in Iowa and the electric generating operations and 155 31 units located in Iowa of all incumbent providers that are 155 32 electric companies and those incumbent providers that are 155 33 consumer-owned utilities choosing to become licensed 155 34 competitive electric service providers. 155 35 2. In the event of a sale, purchase, or any other transfer 156 1 of ownership by an electric utility, during the period from 156 2 the effective date of this chapter to January 1, 2006, of one 156 3 or more Iowa divisions, business units, generating stations, 156 4 or generating units located in Iowa, the electric utility's 156 5 contract or agreement with the acquiring person shall require 156 6 that the acquiring person hire a sufficient number of 156 7 nonsupervisory employees to operate and maintain the station, 156 8 division, or unit by initially making offers of employment to 156 9 the nonsupervisory workforce of the electric utility's 156 10 division, business unit, generating stations, or generating 156 11 unit at no less than the wage rates and substantially 156 12 equivalent fringe benefits and terms and conditions of 156 13 employment that are in effect at the time of transfer of 156 14 ownership of the division, business unit, generating station, 156 15 or generating units. The wage rates and substantially 156 16 equivalent fringe benefits and terms and conditions of 156 17 employment shall continue for at least thirty months from the 156 18 time of the transfer of ownership unless the parties mutually 156 19 agree to different terms and conditions of employment within 156 20 that thirty-month period. The electric utility shall offer a 156 21 transition plan to those nonsupervisory employees who are not 156 22 offered jobs by the acquiring person because that person has a 156 23 need for fewer workers. If there is litigation concerning the 156 24 sale or other transfer of ownership of the electric utility's 156 25 divisions, business units, generating stations, or generating 156 26 units, the thirty-month period will begin on the date the 156 27 acquiring person takes control or management of the divisions, 156 28 business units, generating stations, or generating units of 156 29 the electric utility. 156 30 3. If an electric utility transfers ownership of one or 156 31 more of its divisions, business units, generating stations, or 156 32 generating units located in Iowa to an affiliate, during the 156 33 period from the effective date of this chapter to January 1, 156 34 2006, that affiliate shall comply with the transition 156 35 provisions in subsection 2. If ownership of the affiliate is 157 1 subsequently sold or transferred to another person during the 157 2 transition period, the transition provisions in subsection 2 157 3 shall continue to apply. 157 4 Sec. 25. NEW SECTION. 476B.25 REPORTS TO GENERAL 157 5 ASSEMBLY. 157 6 1. After providing an opportunity for public input, the 157 7 board shall submit to the secretary of the senate and the 157 8 chief clerk of the house of representatives for transmittal to 157 9 the Iowa senate and house of representatives a report on or 157 10 before January 10, 2006, which includes both of the following: 157 11 a. An evaluation of the effectiveness of competition in 157 12 the market for each competitive electric service. 157 13 b. Recommendations, if any, that the general assembly 157 14 should consider to increase the effectiveness of competition 157 15 in the markets for all competitive electric services. 157 16 2. On or before January 10, 2006, the consumer advocate 157 17 shall provide a written report to the general assembly that 157 18 sets forth the consumer advocate's conclusions regarding the 157 19 effectiveness of competition in the market for competitive 157 20 electric services. The report may include any recommendations 157 21 which the consumer advocate believes the general assembly 157 22 should consider in light of the conclusions. 157 23 Sec. 26. NEW SECTION. 476B.26 INTERVENOR FUNDING. 157 24 1. PURPOSE. An intervenor fund in the amount of two 157 25 million one hundred thousand dollars is created, to be 157 26 administered by the office of citizens' aide under chapter 2C. 157 27 The fund shall be used to reimburse nonprofit entities that 157 28 satisfy the requirements of subsection 2 and that intervene in 157 29 rulemaking proceedings before the utilities board as provided 157 30 in this section. 157 31 2. QUALIFICATIONS. An entity, to qualify for 157 32 reimbursement from the fund, must be nonprofit and have at 157 33 least one hundred members who are residents of this state. 157 34 Additionally, the entity, must be granted intervention by the 157 35 utilities board in a rulemaking proceeding required to be 158 1 conducted under this chapter, and must have filed an 158 2 application with the citizens' aide for reimbursement. The 158 3 citizens' aide shall develop the form and content of the 158 4 application. 158 5 3. DISTRIBUTION OF FUNDS. a. A qualified applicant shall 158 6 be reimbursed up to ten thousand dollars of such applicant's 158 7 actual, reasonable costs of participating in a rulemaking 158 8 proceeding required by this chapter. The citizens' aide may 158 9 require the applicant to submit proof of such costs. 158 10 b. The citizens' aide shall not award amounts for 158 11 reimbursement in excess of one hundred thousand dollars per 158 12 rulemaking proceeding. If ten or fewer applicants request 158 13 reimbursement in a rulemaking, the citizens' aide shall award 158 14 each qualifying applicant up to ten thousand dollars. If more 158 15 than ten qualifying applicants request reimbursement from the 158 16 fund, the citizens' aide shall determine the method for 158 17 distribution of the available funding. 158 18 c. A qualified applicant may join with another qualified 158 19 applicant to participate in a utilities board rulemaking 158 20 without diminishing the eligibility of either for funding 158 21 under this section. 158 22 4. SOURCE OF FUNDS. The citizens' aide shall request up 158 23 to two million one hundred thousand dollars from the utilities 158 24 board, as funds are needed, for distribution or administrative 158 25 expenses. Administrative expenses shall not exceed one 158 26 hundred thousand dollars in total. The funds shall be 158 27 provided by the utilities board from the interim funding 158 28 mechanism established under section 476B.13, subsection 5, 158 29 paragraph "c". 158 30 5. REPEALER. This section is repealed effective October 158 31 1, 2002. 158 32 Sec. 27. NEW SECTION. 28F.15 POWERS – CONFLICTING 158 33 PROVISIONS. 158 34 In addition to the powers conferred elsewhere in this 158 35 chapter, an electric power agency may exercise all other 159 1 powers reasonably necessary or appropriate for or incidental 159 2 to the effectuation of its authorized purposes including 159 3 without limitation, the powers enumerated in chapters 6A and 159 4 6B for purposes of constructing or acquiring electric power 159 5 facilities within this state. The failure of a city to comply 159 6 with requirements of section 28F.1, relating to joining an 159 7 electric power agency for the purpose of financing electric 159 8 power facilities, shall not limit the ability of that electric 159 9 power agency to jointly finance open access transmission 159 10 facilities pursuant to this subchapter. An electric power 159 11 agency may exercise in connection with its property and 159 12 affairs, and in connection with property within its control, 159 13 any and all powers which might be exercised by a natural 159 14 person or a private corporation in connection with similar 159 15 property and affairs. The enumeration of specific powers and 159 16 functions in this subchapter is not a limitation of the powers 159 17 of a public agency or an electric power agency as otherwise 159 18 provided by law. For purposes of this subchapter, open access 159 19 transmission facilities are those available for use by others 159 20 in a manner comparable to the use of transmission facilities 159 21 of a public utility subject to the federal Power Act. 159 22 Sec. 28. NEW SECTION. 28F.16 ISSUANCE OF BONDS AND NOTES 159 23 – PURPOSES. 159 24 An electric power agency may from time to time issue its 159 25 bonds or notes in such principal amounts as the electric power 159 26 agency deems necessary to provide sufficient funds to carry 159 27 out the following corporate purposes and powers: 159 28 a. The construction of open access transmission facilities 159 29 to be owned or leased by the electric power agency, or the 159 30 acquisition of any interest or any right to capacity in such 159 31 facilities constructed on or after July 1, 1999. 159 32 b. The funding or refunding of the principal of, or 159 33 interest or redemption premiums on, any bonds or notes issued 159 34 by the electric power agency whether or not the bonds or notes 159 35 or interest to be funded or refunded has become due. 160 1 c. The establishment or increase of reserves to secure or 160 2 to pay the bonds or notes, or interest on such bonds or notes. 160 3 d. The payment of all other costs or expenses of the 160 4 electric power agency incident to and necessary to carry out 160 5 the foregoing corporate purposes and powers. 160 6 Sec. 29. NEW SECTION. 28F.17 BONDS AND NOTES AUTHORIZED 160 7 BY RESOLUTION OF BOARD – TERMS. 160 8 1. Bonds or notes of an electric power agency shall be 160 9 authorized by resolution of its board of directors and may be 160 10 issued under the resolution or under a trust indenture or 160 11 other security agreement, in one or more series, which shall 160 12 include all of the following: 160 13 a. Date of issue. 160 14 b. Date of maturity. 160 15 c. Rate of interest. 160 16 d. Amount of denomination. 160 17 2. The terms and conditions in the resolution, trust 160 18 indenture, or other security agreement shall provide for all 160 19 of the following: 160 20 a. The form of the bond or note, either coupon or 160 21 registered. 160 22 b. Conversion, registration, and exchange privileges. 160 23 c. Rank or priority. 160 24 d. Execution requirements. 160 25 e. Medium and place of payment. 160 26 f. Terms of redemption with or without premium. 160 27 g. Such other terms and conditions as the resolution, 160 28 trust indenture, or other security agreement may provide. 160 29 3. Bonds and notes issued pursuant to this subchapter 160 30 shall not be restricted by any other law limiting the amounts, 160 31 maturities, interest rates, or other terms of obligation of 160 32 public agencies or private persons. Chapter 75 shall not 160 33 apply to such bonds or notes. 160 34 Sec. 30. NEW SECTION. 28F.18 BONDS AND NOTES PAYABLE 160 35 SOLELY FROM AGENCY REVENUES OR FUNDS. 161 1 The principal of and interest upon any bonds or notes 161 2 issued by an electric power agency shall be payable solely 161 3 from the revenues or funds pledged or available for their 161 4 payment as authorized in this subchapter. Each bond and note 161 5 shall contain a statement that the principal or interest 161 6 associated with such bond or note is payable solely from 161 7 revenues or funds of the electric power agency, and that the 161 8 state, any political subdivision of the state other than the 161 9 electric power agency, or any public agency which is a member 161 10 of the electric power agency is not obligated to pay the 161 11 principal or interest and that the full faith and credit or 161 12 the taxing power of the state, any political subdivision of 161 13 the state, or any such public agency is not pledged to the 161 14 payment of the principal of or the interest on the bonds or 161 15 notes. 161 16 Sec. 31. NEW SECTION. 28F.19 BONDS AND NOTES – TYPES – 161 17 SOURCES FOR PAYMENT – SECURITY. 161 18 Except as may be otherwise expressly provided by this 161 19 subchapter or by the electric power agency, every issue of 161 20 bonds or notes of the electric power agency shall be payable 161 21 out of any revenues or funds of the electric power agency, 161 22 subject only to any agreements with the holders of particular 161 23 bonds or notes pledging any particular revenues or funds. An 161 24 electric power agency may issue types of bonds or notes as it 161 25 may determine, including bonds or notes as to which the 161 26 principal and interest are payable exclusively from the 161 27 revenues from one or more projects, or from an interest in 161 28 such projects or a right to capacity of such projects, or from 161 29 one or more revenue-producing contracts made by the electric 161 30 power agency with any person, or from its revenues generally. 161 31 Any bonds or notes may be additionally secured by a pledge of 161 32 any grant, subsidy, or contribution from any public agency or 161 33 other person, or a pledge of any income or revenues, funds, or 161 34 moneys of the electric power agency from any source 161 35 whatsoever. 162 1 Sec. 32. NEW SECTION. 28F.20 BONDS, NOTES, AND RATES FOR 162 2 DEBT SERVICE NOT SUBJECT TO STATE APPROVAL. 162 3 Bonds or notes of an electric power agency may be issued 162 4 under this subchapter, and rents, rates, and charges may be 162 5 established pursuant to section 28F.5 and pledged for the 162 6 security of bonds or notes, and interest and redemption 162 7 premiums on such bonds or notes, without obtaining the consent 162 8 of any department, division, commission, board, bureau, or 162 9 agency of the state and without any other proceeding or the 162 10 happening of any other condition or occurrence except as 162 11 specifically required by this subchapter. 162 12 Sec. 33. NEW SECTION. 28F.21 BONDS AND NOTES TO BE 162 13 NEGOTIABLE. 162 14 All bonds and notes of an electric power agency shall be 162 15 negotiable within the meaning and for all the purposes of the 162 16 uniform commercial code, subject only to any registration 162 17 requirement. 162 18 Sec. 34. NEW SECTION. 28F.22 VALIDITY OF BONDS AND NOTES 162 19 AT DELIVERY – TEMPORARY BONDS. 162 20 Any bonds or notes may be issued and delivered, 162 21 notwithstanding that one or more of the officers executing 162 22 them shall have ceased to hold office at the time when the 162 23 bonds or notes are actually delivered. Pending preparation of 162 24 definitive bonds, an electric power agency may issue temporary 162 25 bonds which shall be exchanged for the definitive bonds. 162 26 Sec. 35. NEW SECTION. 28F.23 PUBLIC OR PRIVATE SALE OF 162 27 BONDS AND NOTES. 162 28 Bonds or notes of an electric power agency may be sold at 162 29 public or private sale for a price and in a manner as 162 30 determined by the agency. 162 31 Sec. 36. NEW SECTION. 28F.24 BONDS AND NOTES SUITABLE 162 32 INVESTMENTS FOR GOVERNMENTAL UNITS, FINANCIAL INSTITUTIONS, 162 33 AND FIDUCIARIES. 162 34 A bank, trust company, savings bank, building and loan 162 35 association, savings and loan association, credit union, 163 1 investment company, insurance company, insurance association, 163 2 executor, guardian, trustee, and other fiduciaries responsible 163 3 for the investment of funds, may legally invest any debt 163 4 service funds, money, or other funds belonging to them or 163 5 within their control in any bonds or notes issued pursuant to 163 6 this subchapter, and the bonds or notes shall be authorized 163 7 security for any and all public deposits. 163 8 Sec. 37. NEW SECTION. 28F.25 RESOLUTION, TRUST 163 9 INDENTURE, OR SECURITY AGREEMENT CONSTITUTES CONTRACT – 163 10 PROVISIONS. 163 11 1. The resolution, trust indenture, or other security 163 12 agreement under which any bonds or notes are issued shall 163 13 constitute a contract with the holders of the bonds or notes, 163 14 and may contain provisions, among others, prescribing any of 163 15 the following: 163 16 a. The terms and provisions of the bonds or notes. 163 17 b. The mortgage or pledge of and the grant of a security 163 18 interest in any real or personal property and all or any part 163 19 of the revenue from any project or any revenue-producing 163 20 contract made by the electric power agency with any person to 163 21 secure the payment of bonds or notes, subject to any 163 22 agreements with the holders of bonds or notes which might then 163 23 exist. 163 24 c. The custody, collection, securing, investment, and 163 25 payment of any revenues, assets, money, funds, or property 163 26 with respect to which the electric power agency may have any 163 27 rights or interest. 163 28 d. The rates or charges for electric energy sold by, or 163 29 services rendered by, the electric power agency, the amount to 163 30 be raised by the rates or charges, and the use and disposition 163 31 of any or all revenue. 163 32 e. The creation of reserves or debt service funds and the 163 33 regulation and disposition of such reserves or funds. 163 34 f. The purposes to which the proceeds from the sale of any 163 35 bonds or notes to be issued may be applied, and the pledge of 164 1 the proceeds to secure the payment of the bonds or notes. 164 2 g. Limitations on the issuance of any additional bonds or 164 3 notes, the terms upon which additional bonds or notes may be 164 4 issued and secured, and the refunding of outstanding bonds or 164 5 notes. 164 6 h. The rank or priority of any bonds or notes with respect 164 7 to any lien or security. 164 8 i. The creation of special funds or moneys to be held in 164 9 trust or otherwise for operating expenses, payment, or 164 10 redemption of bonds or notes, reserves or other purposes, and 164 11 the use and disposition of moneys held in these funds. 164 12 j. The procedure by which the terms of any contract with 164 13 or for the benefit of the holders of bonds or notes may be 164 14 amended or abrogated, the amount of bonds or notes the holders 164 15 of which must consent to such amendment or abrogation, and the 164 16 manner in which consent may be given. 164 17 k. The definition of the acts or omissions to act which 164 18 shall constitute a default in the duties of the electric power 164 19 agency to holders of its bonds or notes, and the rights and 164 20 remedies of the holders in the event of default including, if 164 21 the electric power agency so determines, the right to 164 22 accelerate the due date of the bonds or notes or the right to 164 23 appoint a receiver of the property or revenues subject to the 164 24 lien of the resolution, trust indenture, or other security 164 25 agreement. 164 26 l. Any other or additional agreements with or for the 164 27 benefit of the holders of bonds or notes or any covenants or 164 28 restrictions necessary or desirable to safeguard the interests 164 29 of the holders. 164 30 m. The custody of any of its properties or investments, 164 31 the safekeeping of such properties or investments, the 164 32 insurance to be carried on such properties or investments, and 164 33 the use and disposition of insurance proceeds. 164 34 n. The vesting in a trustee, within or outside the state, 164 35 of such properties, rights, powers, and duties in trust as the 165 1 electric power agency may determine; or the limiting or 165 2 abrogating of the rights of the holders of any bonds or notes 165 3 to appoint a trustee, or the limiting of the rights, powers, 165 4 and duties of such trustee. 165 5 o. The appointment of, and the establishment of the duties 165 6 and obligations of, any paying agent or other fiduciary within 165 7 or outside the state. 165 8 Sec. 38. NEW SECTION. 28F.26 MORTGAGE OR TRUST DEED TO 165 9 SECURE BONDS. 165 10 For the security of bonds or notes issued, or to be issued, 165 11 by an electric power agency, the electric power agency may 165 12 mortgage or execute deeds of trust of the whole or any part of 165 13 its property. 165 14 Sec. 39. NEW SECTION. 28F.27 NO PERSONAL LIABILITY ON 165 15 BONDS OR NOTES. 165 16 An official, director, or member of an electric power 165 17 agency, or any person executing bonds or notes pursuant to 165 18 this subchapter shall not be liable personally on the bonds or 165 19 notes or be subject to any personal liability or 165 20 accountability by reason of the issuance of such bonds or 165 21 notes. 165 22 Sec. 40. NEW SECTION. 28F.28 REPURCHASE OF SECURITIES. 165 23 An electric power agency may purchase, out of any funds 165 24 available for such purchase, bonds or notes, and may hold, 165 25 pledge, cancel, or resell the bonds or notes, subject to and 165 26 in accordance with any agreements with the holders. 165 27 Sec. 41. NEW SECTION. 28F.29 PLEDGE OF REVENUE AS 165 28 SECURITY. 165 29 An electric power agency may pledge its rates, rents, and 165 30 other revenues, or any part of such rates, rents, or other 165 31 revenues, as security for the repayment, with interest and 165 32 redemption premiums, if any, of the moneys borrowed by it or 165 33 advanced to it for any of its authorized purposes and as 165 34 security for the payment of amounts due and owed by it under 165 35 any contract. 166 1 Sec. 42. Section 266.39C, subsection 2, paragraph l, Code 166 2 1999, is amended to read as follows: 166 3 l. Two representatives from investor-owned utilities, one 166 4 representing gas utilities, appointed by the Iowa utility 166 5 association, and one representing electricutilitiesdelivery 166 6 service providers, appointed by the Iowa utility association. 166 7 Sec. 43. Section 266.39C, subsection 2, Code 1999, is 166 8 amended by adding the following new paragraphs: 166 9 NEW PARAGRAPH. m. One representative appointed by the 166 10 governor from each of the following groups: 166 11 (1) Residential electric end-use consumers. 166 12 (2) Commercial electric end-use consumers. 166 13 (3) Industrial electric end-use consumers. 166 14 NEW PARAGRAPH. n. Beginning May 1, 2002, one 166 15 representative of competitive electric service providers 166 16 licensed in this state that are not affiliated with an 166 17 incumbent provider as defined in section 476B.3, appointed by 166 18 the board. 166 19 Sec. 44. Section 384.24, subsection 4, Code 1999, is 166 20 amended by adding the following new paragraph: 166 21 NEW PARAGRAPH. j. The acquisition of competitive electric 166 22 services, as defined in chapter 476B, to meet the demands of 166 23 city residents. 166 24 Sec. 45. Section 384.84, subsection 1, Code 1999, is 166 25 amended to read as follows: 166 26 1. The governing body of a city utility, combined utility 166 27 system, city enterprise, or combined city enterprise may 166 28 establish, impose, adjust, and provide for the collection of 166 29 rates and charges to produce gross revenues at least 166 30 sufficient to pay the expenses of operation and maintenance of 166 31 the city utility, combined utility system, city enterprise, or 166 32 combined city enterprise. When revenue bonds or pledge orders 166 33 are issued and outstanding pursuant to this division, the 166 34 governing body shall establish, impose, adjust, and provide 166 35 for the collection of rates to produce gross revenues at least 167 1 sufficient to pay the expenses of operation and maintenance of 167 2 the city utility, combined utility system, city enterprise, or 167 3 combined city enterprise, and to leave a balance of net 167 4 revenues sufficient to pay the principal of and interest on 167 5 the revenue bonds and pledge orders as they become due and to 167 6 maintain a reasonable reserve for the payment of principal and 167 7 interest, and a sufficient portion of net revenues must be 167 8 pledged for that purpose. Rates must be established by 167 9 ordinance of the council or by resolution of the trustees, 167 10 published in the same manner as an ordinance. However, prices 167 11 for electric services subject to direct competition under 167 12 chapter 476B may be changed in accordance with a policy that 167 13 has been adopted in the same manner as rates. 167 14 Sec. 46. Section 388.6, Code 1999, is amended to read as 167 15 follows: 167 16 388.6 DISCRIMINATION IN RATES. 167 17 A city utility or a combined utility system may not provide 167 18 use or service at a discriminatory rate, except to the city or 167 19 its agencies, as provided in section 384.91. However, the 167 20 pricing of competitive electric services, as defined in 167 21 section 476B.3, at market rates is not prohibited. 167 22 Sec. 47. Section 422.53, subsection 5, Code Supplement 167 23 1999, is amended by adding the following new unnumbered 167 24 paragraph: 167 25 NEW UNNUMBERED PARAGRAPH. The director, within thirty days 167 26 after the date of revocation of a permit issued to a person 167 27 licensed pursuant to section 476B.6, shall provide written 167 28 notice to the executive secretary of the utilities board 167 29 identifying the person whose permit was revoked and the date 167 30 of revocation. 167 31 Sec. 48. Section 423.22, Code 1999, is amended by adding 167 32 the following new unnumbered paragraph: 167 33 NEW UNNUMBERED PARAGRAPH. The director, within thirty days 167 34 after the date of revocation of a permit issued to a person 167 35 licensed pursuant to section 476B.6, shall provide written 168 1 notice to the executive secretary of the utilities board 168 2 identifying the person whose permit was revoked and the date 168 3 of revocation. 168 4 Sec. 49. Section 474.9, Code 1999, is amended by striking 168 5 the section and inserting in lieu thereof the following: 168 6 474.9 GENERAL JURISDICTION OF UTILITIES BOARD. 168 7 1. The board shall have broad general powers to effect the 168 8 purposes of this chapter and chapters 476, 476A, 476B, 478, 168 9 479, 479A, and 479B. The board may issue subpoenas and pay 168 10 the same fees and mileage as are payable to witnesses in the 168 11 courts of record of general jurisdiction. The board shall 168 12 adopt rules pursuant to chapter 17A to govern the exercise of 168 13 its powers and duties, the practice and procedure before it, 168 14 and to govern the form, contents, and filing of reports, 168 15 documents, and other papers as required. 168 16 2. The board shall employ at rates of compensation 168 17 consistent with current standards in industry, such 168 18 professionally trained economists, engineers, accountants, 168 19 attorneys, and skilled examiners and inspectors, secretaries, 168 20 clerks, and other employees as it may find necessary for the 168 21 full and efficient discharge of its duties and 168 22 responsibilities as required by this chapter and chapters 476, 168 23 476A, 476B, 478, 479, 479A, and 479B. 168 24 3. The board may intervene in any proceedings before the 168 25 federal energy regulatory commission or any other federal or 168 26 state regulatory body when it finds that any decision of the 168 27 commission would adversely affect the costs of regulated or 168 28 competitive utility services within this state. 168 29 4. The board shall have authority to inquire into the 168 30 management of the business of all public utilities and 168 31 delivery service providers that are electric companies, and 168 32 shall keep itself informed as to the manner and method in 168 33 which the same is conducted, and may obtain from any public 168 34 utility or delivery service provider all necessary information 168 35 to enable the board to perform its duties. 169 1 5. To the maximum extent fair and equitable, the board 169 2 shall directly charge its expenses and those of the consumer 169 3 advocate to the person causing the board or consumer advocate 169 4 to incur those expenses in accomplishing the purposes of the 169 5 board. No part of such expenses shall be charged to persons, 169 6 who without expanding the scope of the proceeding, intervene 169 7 in good faith in a board proceeding initiated by an entity 169 8 subject to the board's rate and licensing jurisdiction, the 169 9 consumer advocate, or the board on its own motion. For 169 10 allocations in complaint proceedings, the board may consider 169 11 the financial resources of the parties and the contribution to 169 12 the public interest. 169 13 6. a. In order to carry out the duties imposed upon it by 169 14 law, the board may allocate the expenses attributable to such 169 15 duties to the parties to proceedings before the board or to 169 16 persons participating in other matters before the board. The 169 17 board shall ascertain the certified expenses incurred by the 169 18 consumer advocate division of the department of justice in the 169 19 performance of its duties under the law and may allocate those 169 20 expenses that are directly chargeable. 169 21 b. The board shall ascertain the total of the division's 169 22 expenditures during each year that is reasonably attributable 169 23 to the performance of its duties under the law. The board 169 24 shall add to this total the certified expenses of the consumer 169 25 advocate as provided under section 475A.6 and shall deduct all 169 26 amounts chargeable directly to any person under any law. The 169 27 remainder may be assessed by the board to all entities 169 28 providing service over which the board has jurisdiction. The 169 29 assessment shall be in proportion to the respective gross 169 30 operating revenues of such entities during the last calendar 169 31 year from intrastate operations over which the board has 169 32 jurisdiction. The board shall not assess the same transaction 169 33 twice. If any portion of the remainder can be identified with 169 34 a specific type of utility service, the board may allocate 169 35 those expenses to the corresponding entities over which the 170 1 board has jurisdiction. Assessments may be made quarterly 170 2 based upon estimates of the expenditures for the fiscal year 170 3 of the utilities division and the consumer advocate. Not more 170 4 than ninety days following the close of the fiscal year, the 170 5 utilities division shall conform the amount of the prior 170 6 fiscal year's assessments to the requirements of this section. 170 7 The total amount that may be assessed to an entity under 170 8 authority of this paragraph shall not exceed six-tenths of one 170 9 percent of the total gross operating revenues during the 170 10 calendar year derived from intrastate operations over which 170 11 the board has jurisdiction. For public utilities exempted 170 12 from board rate regulation pursuant to chapter 476 and 170 13 delivery service providers that are incumbent provider 170 14 consumer-owned utilities pursuant to chapter 476B, the 170 15 assessments under this paragraph shall be computed at one-half 170 16 the rate used in computing the assessment for other utilities 170 17 and delivery service providers that are electric companies. 170 18 c. A person subject to assessment shall pay the division 170 19 the amount assessed against it within thirty days from the 170 20 time the division mails notice to it of the amount due unless 170 21 it shall file with the board objections in writing setting out 170 22 the grounds upon which it claims that such assessment is 170 23 excessive, erroneous, unlawful, or invalid. Upon the filing 170 24 of such objections the board shall set the matter down for 170 25 hearing and issue its order in accordance with its findings in 170 26 such proceeding, which order shall be subject to review as 170 27 provided in this chapter. All amounts collected by the 170 28 division pursuant to this section shall be deposited with the 170 29 treasurer of state and credited to the general fund of the 170 30 state. 170 31 d. Whenever the board deems it necessary in order to carry 170 32 out the duties imposed by law, the board may expend additional 170 33 sums beyond those sums appropriated. However, the authority 170 34 to add additional personnel or contract for additional 170 35 assistance must first be approved by the director of the 171 1 department of management. The costs of any additional 171 2 employees and contract services shall be assessed and paid in 171 3 the same manner as other expenses are paid under this section. 171 4 There is appropriated out of any funds in the state treasury 171 5 not otherwise appropriated, such sums as may be necessary to 171 6 enable the board to hire additional staff and contract for 171 7 services under this section. The authority to hire additional 171 8 temporary or permanent staff that is granted to the board by 171 9 this section shall not be subject to limitation by an 171 10 administrative or executive order or decision that restricts 171 11 the number of state employees or the filling of employee 171 12 vacancies, and shall not be subject to limitation by any law 171 13 of this state that restricts the number of state employees or 171 14 the filling of employee vacancies unless that law is made 171 15 applicable by express reference to this section. Fees paid to 171 16 the utilities division shall be deposited in the general fund 171 17 of the state. These funds, upon appropriation by the general 171 18 assembly, shall be used for payment of the expenses of the 171 19 utilities division and the consumer advocate division. 171 20 Subject to this section, the utilities division or the 171 21 consumer advocate division may keep on hand with the treasurer 171 22 of state funds in excess of the current needs of the utilities 171 23 division or the consumer advocate division. 171 24 e. The administrator and consumer advocate shall account 171 25 for receipts and disbursements according to the separate 171 26 duties imposed upon the utilities division and the consumer 171 27 advocate division by the laws of this state and each separate 171 28 duty shall be fiscally self-sustaining. 171 29 f. All fees and other moneys collected under this section 171 30 shall be deposited into the general fund of the state and 171 31 expenses required to be paid under this section shall be paid 171 32 from funds appropriated for those purposes. Moneys deposited 171 33 into the general fund of the state pursuant to this section 171 34 shall be used in accordance with section 8.60. 171 35 Sec. 50. Section 476.1, subsection 1, Code 1999, is 172 1 amended to read as follows: 172 2 1. Furnishing gas by piped distribution systemor172 3electricityto the public for compensation. 172 4 Sec. 51. Section 476.1, Code 1999, is amended by adding 172 5 the following new subsection: 172 6 NEW SUBSECTION. 4. Furnishing electricity to the public 172 7 for compensation, except to the extent inconsistent with 172 8 chapter 476B, as follows: 172 9 a. (1) Until October 1, 2002, for an electric company, as 172 10 defined in section 476B.3. 172 11 (2) Until the date selected by the governing body of each 172 12 consumer-owned utility, as defined in section 476B.3. 172 13 b. Except as provided in paragraph "c", after the dates 172 14 specified in paragraph "a", an electric company and a 172 15 consumer-owned utility, as so defined, shall not be subject to 172 16 this chapter. 172 17 c. The dates specified in paragraph "a" shall be adjusted, 172 18 if necessary, consistent with an action of the board 172 19 suspending the dates for commencement of the option to choose 172 20 competitive electric services pursuant to section 476B.7, 172 21 subsection 4. 172 22 Sec. 52. Section 476A.6, Code 1999, is amended to read as 172 23 follows: 172 24 476A.6 DECISION – CRITERIA. 172 25 The board shall render a decision on the application in an 172 26 expeditious manner. A certificate shall be issued to the 172 27 applicant if the board findsallboth of the following: 172 281. The services and operations resulting from the172 29construction of the facility are required by the present or172 30future public convenience, use and necessity.172 312.1. The applicant is willing to perform such services 172 32 and construct, maintain, and operate the facility pursuant to 172 33 the provisions of the certificate and this chapter. 172 343.2. The construction, maintenance, and operation of the 172 35 facility will cause minimum adverse land use, environmental, 173 1 and aesthetic impact and are consonant with reasonable 173 2 utilization of air, land, and water resourcesfor beneficial173 3purposes considering available technology and the economics of173 4available alternatives. 173 54. The applicant, if a public utility as defined in173 6section 476.1, has in effect a comprehensive energy management173 7program designed to reduce peak loads and to increase173 8efficiency of use of energy by all classes of customers of the173 9utility, and the facility in the application is necessary173 10notwithstanding the existence of the comprehensive energy173 11management program. As used in this subsection, a173 12"comprehensive energy management program" includes at a173 13minimum the following:173 14a. Establishment of load management and interruptible173 15service programs, where cost effective.173 16b. Development of wheeling agreements and other energy173 17sharing agreements, where cost effective with utilities that173 18have available capacity.173 19c. Establishment of cost-effective energy efficiency and173 20renewable energy services and programs.173 21d. Compliance with board rules on energy management173 22procedures.173 235. The applicant, if a public utility as defined in173 24section 476.1, shall demonstrate to the board that the utility173 25has considered sources for long-term electric supply from173 26either purchase of electricity or investment in facilities173 27owned by other persons.173 286. The applicant, if a public utility as defined in173 29section 476.1, has considered all feasible alternatives to the173 30proposed facility including nongeneration alternatives; has173 31ranked those alternatives by cost; has implemented the least-173 32cost alternatives first; and the facility in the application173 33is necessary notwithstanding the implementation of these173 34alternatives.173 35 Sec. 53. Section 476A.7, subsection 1, paragraph b, Code 174 1 1999, is amended to read as follows: 174 2 b.GivesTo the extent the applicant proves the location 174 3 of generation at the site is required to maintain or enhance 174 4 the reliability of the delivery system serving the public, 174 5 gives the applicant the power of eminent domainto the extent174 6andunder such conditions as the board may approve, prescribe, 174 7 and find necessaryfor the public convenience, use and174 8necessity,proceeding in the manner of works of internal 174 9 improvement under chapter 6B. The burden of proving the 174 10 necessity for the exercise of the power of eminent domain 174 11 shall be on the personissuedseeking the certificate. 174 12 Sec. 54. Section 476A.15, Code 1999, is amended to read as 174 13 follows: 174 14 476A.15 WAIVER. 174 15 The board, if it determines that the public interest would 174 16 not be adversely affected, may waive any of the requirements 174 17 of this chapterfor facilities with a capacity of one hundred174 18or fewer megawatts. 174 19 Sec. 55. Section 478.3, subsection 1, paragraph h, Code 174 20 1999, is amended to read as follows: 174 21 h. An allegation that the proposed construction is 174 22 necessary to serve a public use. This allegation may be 174 23 satisfied by the filing of an order of the federal energy 174 24 regulatory commission or its successor directing that the 174 25 project be constructed. 174 26 Sec. 56. NEW SECTION. 478.34 RELATIONSHIP TO COMPETITIVE 174 27 SERVICES. 174 28 The rights and powers conferred under this chapter, 174 29 including the right of eminent domain, shall be interpreted 174 30 and exercised in a manner consistent with the provisions of 174 31 chapter 476B. 174 32 Sec. 57. Section 499.14A, Code 1999, is amended to read as 174 33 follows: 174 34 499.14A ELECTRIC COOPERATIVE ASSOCIATION MEMBERSHIPS. 174 35 An electricgeneration and transmissioncooperative 175 1 association may have one or more classes of members. 175 2 Qualifications, requirements, methods of acceptance, terms, 175 3 conditions, termination, and other incidents of membership 175 4 shall be set forth in the bylaws of the association.An175 5electric utility as defined in section 476.22 and a person who175 6generates or transmits electric power for sale at wholesale to175 7an electric utility may become a member in accordance with the175 8bylaws.175 9 Sec. 58. Section 499.30, subsection 5, Code 1999, is 175 10 amended to read as follows: 175 11 5. Notwithstanding an association's articles of 175 12 incorporation, for each taxable year of the association, the 175 13 association shall allocate all remaining net earnings to the 175 14 account of each member, including subscribers described in 175 15 section 499.16, ratably in proportion to the business the 175 16 member did with the association during that year. The 175 17 directors shall determine, or the articles of incorporation or 175 18 bylaws of the association may specify, the percentage or the 175 19 amount of the allocation to be currently paid in cash. 175 20 However, for a cooperative association, other than an electric 175 21 cooperative associationother than a public utility as defined175 22in section 476.1, the amount to be currently payable in cash 175 23 shall not exceed twenty percent of the allocation during any 175 24 period when unpaid local deferred patronage dividends of 175 25 deceased members for prior years are outstanding. 175 26 Notwithstanding the twenty percent allocation limitation, the 175 27 directors of a cooperative association or the articles of 175 28 incorporation or bylaws of the association may specify any 175 29 percentage or amount to be currently paid in cash to the 175 30 estates of deceased natural persons who were members. All the 175 31 remaining allocation not paid in cash shall be transferred to 175 32 a revolving fund as provided in section 499.33 and credited to 175 33 the members and subscribers. The credits in the revolving 175 34 fund are referred to in this chapter as deferred patronage 175 35 dividends. 176 1 Sec. 59. Section 499.33, subsection 2, paragraphs a and b, 176 2 Code 1999, are amended to read as follows: 176 3 a. Prior to other payments of deferred patronage dividends 176 4 or redemption of preferred stock held by members, the 176 5 directors of a cooperative association, other thanaan 176 6 electric cooperative associationwhich is a public utility as176 7defined in section 476.1, shall pay local deferred patronage 176 8 dividends and redeem local deferred patronage preferred stock 176 9 of deceased natural persons who were members, and may pay 176 10 deferred patronage dividends or may redeem preferred stock of 176 11 deceased natural persons who were members or of members who 176 12 become ineligible, without reference to the order of priority. 176 13 b. The directors ofaan electric cooperative association 176 14which is a public utility as defined in section 476.1may pay 176 15 deferred patronage dividends and redeem preferred stock of 176 16 deceased natural persons who were members, and may pay all 176 17 other deferred patronage dividends or redeem preferred stock 176 18 of members without reference to priority. 176 19 Sec. 60. STATUTORY CONSTRUCTION. This Act shall not be 176 20 construed to invalidate any proceedings under statutes 176 21 existing prior to the effective date of this Act. 176 22 Additionally, this Act shall not affect any action, 176 23 litigation, or appeal pending prior to the effective date of 176 24 this Act. 176 25 Sec. 61. DIRECTIONS TO CODE EDITOR. The Code editor shall 176 26 codify sections 28F.15 through 28F.29, as enacted in this Act, 176 27 as a separate subchapter of chapter 28F. 176 28 Sec. 62. EFFECTIVE DATE. This Act takes effect on June 1, 176 29 2000. 176 30 EXPLANATION 176 31 This bill creates new Code chapter 476B, which provides for 176 32 restructuring of portions of the electric utility industry and 176 33 related matters. Generally, the bill provides that all 176 34 consumers will be given the option to choose an electric 176 35 supplier at some future date as determined in the bill. 177 1 New Code section 476B.1 establishes the title of the 177 2 chapter as the "Electric Choice and Competition Act". 177 3 New Code section 476B.2 sets forth legislative findings 177 4 concerning restructuring. 177 5 New Code section 476B.3 establishes definitions for key 177 6 terms used in the new Code chapter. 177 7 New Code section 476B.4 provides for the unbundling of 177 8 rates and charges by electric companies and consumer-owned 177 9 utilities (electric cooperatives and municipal utilities). 177 10 The bill directs the electric companies and consumer-owned 177 11 utilities to post such rates and charges on the utilities 177 12 board's website. The section also provides for the posting of 177 13 all tariffs for transmission service and ancillary services 177 14 applicable to competitive electric service provider and end- 177 15 use consumer transactions by delivery service providers 177 16 providing transmission service and by control area operators. 177 17 New Code section 476B.5 provides that within 90 days of the 177 18 effective date of new Code chapter 476B, the board is to 177 19 convene a meeting of persons interested in participating in 177 20 the development of a consumer education program. Such 177 21 education program is to consist of two steps including message 177 22 development and message dissemination. The board is to 177 23 determine the method of message dissemination for electric 177 24 companies, and each local governing body is to determine the 177 25 method of message dissemination for consumer-owned utilities. 177 26 The bill provides that the total cost of message development 177 27 and dissemination shall not exceed $6 million. The program is 177 28 to be funded through the imposition of a nonbypassable charge 177 29 on bills issued for electric service, with collection to be 177 30 completed by October 1, 2002. 177 31 New Code section 476B.6 establishes consumer protections, 177 32 as well as defining the rights of consumers with respect to 177 33 competitive electric services. The section prohibits a person 177 34 from providing or offering to provide competitive electric 177 35 services to an end-use consumer, or from aggregating end-use 178 1 consumers for the acquisition of competitive electric services 178 2 without first obtaining a license from the board. The section 178 3 authorizes the board to adopt rules to require a competitive 178 4 electric service provider to disclose to residential end-use 178 5 consumers information regarding service prices, terms, and 178 6 conditions. The board is authorized to adopt additional 178 7 licensing requirements regarding adequate notice to end-use 178 8 consumers prior to automatic contract renewal; circumstances 178 9 under which an end-use consumer has the right to terminate a 178 10 competitive electric service contract; and other reasonable 178 11 conditions or restrictions on a license. The board is 178 12 directed to maintain, and make available upon request, a list 178 13 of all licensed providers of competitive electric services. 178 14 The bill exempts from the licensing requirement an incumbent 178 15 provider that is a consumer-owned utility who chooses to 178 16 provide competitive electric services only within its assigned 178 17 service area. 178 18 The section provides that an end-use consumer shall have 178 19 access to competitive electric services and regulated delivery 178 20 services as provided in the new Code chapter. The section 178 21 sets forth rights of consumers under the bill. 178 22 New Code section 476B.7 provides that an end-use consumer 178 23 located in the assigned service area of a delivery service 178 24 provider will have the option to choose competitive electric 178 25 services from competitive electric service providers and 178 26 unbundled delivery services from the delivery service provider 178 27 beginning on October 1, 2002. The section provides that the 178 28 board may suspend the date for commencement of the option to 178 29 choose if the board determines that essential deadlines cannot 178 30 reasonably be met or there is a threat to service reliability 178 31 or the public safety. 178 32 New Code section 476B.8 provides for standard offer 178 33 service. Standard offer service will be available for 178 34 nonresidential end-use consumers that purchased fewer than 178 35 75,000 kilowatt-hours of electric service annually and 179 1 residential end-use consumers who do not chose a competitive 179 2 electric service provider. The service will be provided by 179 3 the incumbent provider and shall be regulated. Such service 179 4 shall continue until the earlier of the end-use consumer 179 5 making a choice of competitive electric service, the end-use 179 6 consumer no longer qualifies to receive standard offer 179 7 service, or January 1, 2009. Termination of standard offer 179 8 service on January 1, 2009, is conditioned upon the board 179 9 making certain findings. The section provides for 179 10 transitional service for certain end-use consumers and for 179 11 universal service protections and provides that low-income 179 12 consumers receiving universal service are protected from 179 13 disconnection of service from November 1 through April 1. 179 14 New Code section 476B.9 sets forth the responsibilities and 179 15 rights of delivery service providers. A delivery service 179 16 provider is required to provide safe, reliable, and prompt 179 17 delivery services and facilities. The board is given general 179 18 oversight responsibility for delivery service safety 179 19 requirements and inspection and maintenance activities for all 179 20 delivery service providers. The section provides that 179 21 unbundled delivery service must be provided on a 179 22 nondiscriminatory and comparable service basis. The section 179 23 provides that an incumbent provider and a delivery service 179 24 provider do not have any obligation to provide competitive 179 25 electric services to an end-use consumer that has an option to 179 26 choose competitive electric services. The section also 179 27 provides for assigned service areas for delivery service 179 28 providers, certificates of authority to furnish delivery 179 29 service to end-use consumers already receiving delivery 179 30 service; the obligation to extend delivery service facilities; 179 31 delivery service rate regulation; and rate complaints filed by 179 32 the consumer advocate. The section also provides that a 179 33 delivery service provider that is an electric company shall 179 34 not directly or indirectly include in distribution service 179 35 rates or charges any costs or expenses attributable to the 180 1 sale, lease, or other conveyance of commercial and residential 180 2 electric appliances, interior lighting systems or fixtures, or 180 3 electric heating, ventilating, or air conditioning systems and 180 4 component parts, or the servicing, repair, or maintenance of 180 5 such equipment. 180 6 New Code section 476B.10 sets forth the responsibilities 180 7 and rights of competitive electric service providers. 180 8 New Code section 476B.11 provides that a delivery service 180 9 provider shall install, own, and maintain metering as deemed 180 10 necessary by the delivery service provider. The section also 180 11 provides that an end-use consumer may install metering not 180 12 owned by the delivery service provider on the consumer's side 180 13 of the main disconnect, subject to reasonable connection 180 14 requirements of the delivery service provider and board rules. 180 15 New Code section 476B.12 sets forth billing requirements 180 16 associated with electric services. The section provides that 180 17 an end-use consumer is entitled to request a single 180 18 consolidated bill for competitive electric services, delivery 180 19 services, and control area services. Unless otherwise agreed 180 20 by the affected service providers, such consolidated billing 180 21 is the responsibility of the competitive electric service 180 22 provider selling competitive billing services. 180 23 New Code section 476B.13 sets forth the low-income 180 24 affordability and energy efficiency programs. These programs 180 25 are to be administered by the division of community action 180 26 agencies within the department of human rights. The Code 180 27 section creates an electric energy-efficiency fund and related 180 28 programs to be administered by the division of energy and 180 29 geological resources of the department of natural resources. 180 30 New Code section 476B.14 provides that a competitive 180 31 electric service provider, a delivery service provider, and a 180 32 control area operator must develop and post on the board's 180 33 website the procedures for filing a complaint regarding their 180 34 services and operations. The board is authorized to hear all 180 35 complaints. 181 1 New Code section 476B.15 provides for the imposition and 181 2 collection of transition charges. Such charges are for the 181 3 purpose of allowing electric companies to recover a portion of 181 4 their transition costs associated with electric generation. 181 5 Transition charges are to be billed commencing with service 181 6 rendered on October 1, 2002, and concluding with service 181 7 rendered on September 30, 2006. The section also provides 181 8 that the board may permit, but not require, an incumbent 181 9 provider that is an electric company to divest itself of its 181 10 generation assets and contracts for power and energy. 181 11 New Code section 476B.16 provides for the decommissioning 181 12 of nuclear generating facilities and the recovery of costs 181 13 associated with such decommissioning. 181 14 New Code section 476B.17 provides for securitization, or 181 15 the issuance of transitional funding instruments. The board 181 16 is authorized to issue transitional funding orders which 181 17 create intangible transition property in favor of an incumbent 181 18 provider or grantee representing the right to impose and 181 19 collect instrument funding charges necessary to pay the 181 20 principal and interest on the transitional funding 181 21 instruments. The section establishes the permissible uses of 181 22 the proceeds from such instruments. Such instruments do not 181 23 create an obligation on the part of the state. 181 24 New Code section 476B.18 prohibits a person with an 181 25 assigned service area in this state from offering competitive 181 26 power supply services within another person's assigned service 181 27 area in this state until the offering person allows the latter 181 28 person a reasonable opportunity to offer competitive power 181 29 supply services in the offering person's assigned service area 181 30 in this state. 181 31 New Code section 476B.19 provides that an electric 181 32 cooperative and a municipal utility are not subject to 181 33 regulation by the board except as specifically provided in 181 34 this chapter. 181 35 New Code section 476B.20 grants authority to the board to 182 1 impose civil remedies and penalties for certain violations. 182 2 New Code section 476B.21 provides for rehearings before the 182 3 board after the issuance of a final decision by the board. 182 4 New Code section 476B.22 provides for judicial review of 182 5 board decisions. 182 6 New Code section 476B.23 establishes certain contractual 182 7 rights and provides that certain end-use consumers may 182 8 terminate a contract for electric service in effect before the 182 9 effective date of the new Code chapter. 182 10 New Code section 476B.24 provides for certain benefits for 182 11 electric utility employees adversely affected as a result of 182 12 restructuring. 182 13 New Code section 476B.25 provides for reports to be 182 14 prepared by the board and the consumer advocate and submitted 182 15 to the general assembly. 182 16 New Code section 476B.26 creates an intervenor fund in the 182 17 amount of $2,100,000 to be administered by the office of the 182 18 citizen's aide. The fund is to be used to reimburse nonprofit 182 19 entities that intervene in rulemaking proceedings before the 182 20 utilities board required under new Code chapter 476B. The 182 21 section is repealed effective October 1, 2002. 182 22 New Code sections 28F.15 through 28F.29 provide for the 182 23 funding of construction of open access transmission facilities 182 24 to be owned or leased by an electric power agency. An 182 25 electric power agency is defined in new Code chapter 476B as a 182 26 political subdivision that acquires or finances electric 182 27 facilities pursuant to Code chapter 28E or 28F. 182 28 The bill makes certain conforming and transitional 182 29 amendments to existing Code sections. 182 30 The bill takes effect June 1, 2000. 182 31 LSB 7118HV 78 182 32 mj/cf/24.1
Text: HF02529 Text: HF02531 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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