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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. "Alternative energy" means electric energy measured in 3 31 kilowatt-hours produced from an alternative energy facility. 3 32 6. "Alternative energy facility" means an electric 3 33 generating unit whose energy input is derived, in whole or in 3 34 part, from solar, wind, geothermal, landfill gas, refuse- 3 35 derived fuel, agricultural crops or residues, wood, or other 4 1 renewable energy sources as determined by the board. 4 2 "Alternative energy facility" also includes a hydroelectric 4 3 generating unit with a nameplate capacity, or a contract for 4 4 hydroelectric capacity, no greater than one hundred megawatts. 4 5 7. "Ancillary services" means those services that are 4 6 necessary to support the transmission of demand and energy 4 7 from generation to the point of usage while maintaining 4 8 reliable operation of the delivery system in accordance with 4 9 good operating practices. Ancillary services, as defined by 4 10 the federal energy regulatory commission as of the effective 4 11 date of this chapter, include all of the following: 4 12 a. Scheduling, system control, and dispatch. 4 13 b. Reactive supply and voltage control from generation 4 14 sources. 4 15 c. Regulation and frequency response. 4 16 d. Energy imbalance. 4 17 e. Operating reserve – spinning. 4 18 f. Operating reserve – supplemental. 4 19 8. "Assigned service area" means a geographic area 4 20 designated by the board within which a designated person has 4 21 the exclusive right to provide bundled electric services prior 4 22 to May 1, 2002, or unbundled delivery services on or after May 4 23 1, 2002. 4 24 9. "Assignee" means a person, other than an incumbent 4 25 provider or grantee, to which an interest in intangible 4 26 transition property is assigned, sold, or transferred. 4 27 10. "Balancing" means the responsibility of a control area 4 28 operator to make necessary changes in the output of the 4 29 sources of generation under its control to maintain the 4 30 required voltage and frequency of the grid under its control. 4 31 11. "Basic energy service" means power supply services 4 32 provided by a consumer-owned utility to an end-use consumer 4 33 who has not chosen a competitive electric service provider or 4 34 is otherwise without a competitive electric service provider. 4 35 12. "Bilateral contract" means a contract between two 5 1 persons. 5 2 13. "Board" means the Iowa utilities board within the 5 3 department of commerce created in section 474.1. 5 4 14. "Board's website" means an electronic posting site 5 5 maintained or approved by the board. 5 6 15. "Bundled electric service" means combining generation, 5 7 transmission, distribution, and other electric services, and 5 8 pricing the combination as an undifferentiated package rather 5 9 than as individual services. 5 10 16. "Business unit" means a division or other economic 5 11 unit of a person and is considered to be an affiliate of other 5 12 business units of the person. 5 13 17. "Capacity" means a measurement of the electrical 5 14 output of a generating plant usually expressed in kilowatts or 5 15 megawatts. 5 16 18. "Comparable service" means regulated services provided 5 17 to any person on the same or functionally equivalent basis, 5 18 and under the same or functionally equivalent terms and 5 19 conditions, as the regulated services provided by a delivery 5 20 service provider to itself or its affiliates. 5 21 19. "Competitive electric services" means competitive 5 22 power supply services sold at retail in this state commencing 5 23 on or after May 1, 2002, in the assigned service areas of 5 24 delivery service providers that are electric companies and 5 25 commencing no later than October 1, 2002, in the assigned 5 26 service areas of consumer-owned utilities. Electric metering 5 27 services, electric meter information gathering services, and 5 28 electric billing services sold at retail in the assigned 5 29 service areas of electric companies by competitive electric 5 30 service providers commencing on or after May 1, 2002, and 5 31 other services of electric companies determined by the board 5 32 after December 31, 2002, to be competitive pursuant to this 5 33 chapter are competitive electric services. Electric metering 5 34 services, electric meter information gathering services, and 5 35 electric billing services sold at retail in the assigned 6 1 service area of a consumer-owned utility by a competitive 6 2 electric service provider shall not be regulated by the board 6 3 or local governing body except as provided in this chapter. 6 4 Services provided pursuant to section 476B.8 are regulated 6 5 electric services and not competitive electric services. 6 6 20. "Competitive electric service provider" means a person 6 7 that provides or offers to provide competitive electric 6 8 services in this state and includes an aggregator. 6 9 21. "Competitive power supply services" means demand, 6 10 energy, and ancillary services sold at retail in this state, 6 11 excluding scheduling, system control, load profiling and 6 12 financial settlement when related to distribution, whether 6 13 subject to the regulation of the board or a local governing 6 14 body. 6 15 22. "Consumer-owned utility" means a municipal utility or 6 16 electric cooperative. 6 17 23. "Control" means the possession, direct or indirect, of 6 18 the power to direct or cause the direction of the management 6 19 and policies of a person through ownership, by contract, or 6 20 otherwise. 6 21 24. "Control area" means an electric delivery system or 6 22 combination of electric delivery systems to which a common 6 23 automatic control scheme is applied in order to do the 6 24 following: 6 25 a. Match, at all times, the sum of the power output of the 6 26 generators within the electric delivery systems and demand and 6 27 energy purchased from entities outside the electric delivery 6 28 systems with the load in the electric delivery systems. 6 29 b. Maintain, within the limits of good operating practice, 6 30 scheduled interchange with other control areas. 6 31 c. Maintain the frequency of the electric delivery systems 6 32 within reasonable limits in accordance with good operating 6 33 practices. 6 34 d. Arrange for, provide, or verify that sufficient 6 35 generating capacity or the right to sufficient generating 7 1 capacity is available to maintain operating reserves in 7 2 accordance with good operating practice. 7 3 25. "Control area operator" means a person operating a 7 4 control area. 7 5 26. "Delivery service" means the transportation of 7 6 electricity from one point on a delivery service provider's 7 7 system to another point on that system in this state. 7 8 Delivery service includes transmission service and 7 9 distribution service. 7 10 27. "Delivery service provider" means a person that 7 11 provides delivery service in this state but does not include a 7 12 licensed competitive electric service provider that purchases 7 13 delivery service from an electric company or consumer-owned 7 14 utility and resells the delivery service at retail to an end- 7 15 use consumer. 7 16 28. "Demand" means electric power measured in kilowatts or 7 17 megawatts. 7 18 29. "Distribution service" means that portion of delivery 7 19 service provided in this state that is not subject to the 7 20 exclusive jurisdiction of the federal energy regulatory 7 21 commission, or for consumer-owned utilities is not subject to 7 22 section 211 of the federal Power Act. If a provider of 7 23 distribution service is an electric company that is also a 7 24 control area operator, the control area operations which are 7 25 not subject to the exclusive jurisdiction of the federal 7 26 energy regulatory commission, if any, shall be considered to 7 27 be a part of distribution service and subject to the 7 28 jurisdiction of the board. 7 29 30. "Electric company" means a delivery service provider, 7 30 either on a bundled basis prior to May 1, 2002, or on an 7 31 unbundled basis on or after May 1, 2002, but does not include 7 32 a consumer-owned utility, municipal electric cooperative 7 33 association, or governmental subdivision. 7 34 31. "Electric cooperative" means a person formed or 7 35 organized as a cooperative under the laws of this state or 8 1 elsewhere, that engages in any of the following activities: 8 2 generation of electricity, transmission of electricity, 8 3 distribution of electricity, sale of electricity, control area 8 4 operator services, or performance of ancillary services as 8 5 designated by the federal energy regulatory commission. An 8 6 electric cooperative includes a consumer-owned affiliate of an 8 7 electric cooperative, an alliance, and an incorporated city 8 8 utility provider. 8 9 32. "Electric power agency" means a political subdivision 8 10 that acquires or finances electric facilities pursuant to 8 11 chapter 28E or 28F. 8 12 33. "Eligible rates" means those rates specified in an 8 13 application for a transitional funding order from which 8 14 instrument funding charges may be deducted and collected. 8 15 Eligible rates may include any of the following: bundled 8 16 electric rates, unbundled distribution service rates, other 8 17 unbundled rates, standard offer service rates, universal 8 18 service rates, transitional service rates, basic energy 8 19 service rates, transition charges, any other charges 8 20 authorized under section 476B.15, or any other rates for 8 21 tariffed services. 8 22 34. "End-use consumer" means a person that prior to having 8 23 the option to choose competitive electric service, purchases 8 24 for use in this state bundled electric service or that 8 25 participates in an electric retail access pilot project 8 26 approved by the board or local governing body. On and after 8 27 the date a person has the option to choose competitive 8 28 electric service, "end-use consumer" means a person that 8 29 purchases, directly or through a competitive electric service 8 30 provider, for use in this state, standard offer service, 8 31 transitional service, universal service, basic energy service, 8 32 or unbundled distribution service sold at retail. 8 33 35. "Energy" means electric power measured in kilowatt- 8 34 hours (kWh). 8 35 36. "Good operating practices" means any of the practices, 9 1 methods, and acts engaged in or approved by a significant 9 2 portion of the electric industry during a relevant time 9 3 period, or any of the practices, methods, or acts which, in 9 4 the exercise of reasonable judgment in light of the facts 9 5 known at the time the decision was made, could reasonably have 9 6 been expected to accomplish the desired result at reasonable 9 7 cost consistent with good business practices, reliability, 9 8 safety, and expedition. "Good operating practices" is not 9 9 limited to the optimum practice, method, or act, to the 9 10 exclusion of all others, but rather to acceptable practices, 9 11 methods, or acts consistently adhered to and generally 9 12 accepted in the region. 9 13 37. "Grantee" means a person, other than an incumbent 9 14 provider or an assignee which acquires its interest from an 9 15 incumbent provider, to whom or for whose benefit the board 9 16 creates, establishes, and grants rights in, to, or under 9 17 intangible transition property. 9 18 38. "Grid" means the interconnected system used for 9 19 delivering electricity within this state. 9 20 39. "Holder" means a holder of transitional funding 9 21 instruments, including a trustee, collateral agent, nominee, 9 22 or other such person acting for the benefit of such a holder. 9 23 40. "Incorporated city utility provider" means a 9 24 corporation, existing on the effective date of this chapter, 9 25 with assets worth one million dollars or more, which has one 9 26 or more platted villages located within the territorial limits 9 27 of the tract of land which it owns, and which provides 9 28 electricity to ten thousand or fewer end-use consumers. 9 29 41. "Incumbent provider" means a person, or the person's 9 30 successor or assign, that provided bundled electric service 9 31 within an assigned service area on the effective date of this 9 32 chapter. 9 33 42. "Instrument funding charge" means a nonbypassable 9 34 charge authorized in a transitional funding order to be 9 35 applied and invoiced to each responsible consumer, a class of 10 1 responsible consumers of an incumbent provider, or other 10 2 person or group of persons obligated to pay eligible rates 10 3 from which the instrument funding charge has been deducted and 10 4 stated separately pursuant to section 476B.17, subsection 4, 10 5 paragraph "d". 10 6 43. "Intangible transition property" means the right, 10 7 title, and interest of an incumbent provider, grantee, or 10 8 assignee arising pursuant to a transitional funding order to 10 9 impose and receive instrument funding charges, and all related 10 10 revenues, collections, claims, payments, money, or proceeds of 10 11 the transitional funding order, including all right, title, 10 12 and interest of an incumbent provider, grantee, or assignee 10 13 in, to, under, and pursuant to such transitional funding 10 14 order, whether or not such intangible transition property is 10 15 characterized on the books of the incumbent provider as a 10 16 regulatory asset, a cost incurred by the incumbent provider, 10 17 or otherwise. Intangible transition property arises and 10 18 exists only to the extent that instrument funding charges are 10 19 authorized in a transitional funding order that becomes 10 20 effective in accordance with this chapter. Such intangible 10 21 transition property shall continue to exist to the extent 10 22 provided in the transitional funding order. 10 23 44. "Interval metering" means metering that records end- 10 24 use consumer usage on the same time frame as pricing changes 10 25 in the market, typically hourly or more frequently. 10 26 45. "Issuer" means a person, other than an incumbent 10 27 provider, which has issued transitional funding instruments. 10 28 46. "Load" means the amount of demand or energy delivered 10 29 to or required by an end-use consumer or consumers. 10 30 47. "Load profiling" means the process of estimating 10 31 rather than directly measuring the demand and energy 10 32 consumption of an end-use consumer during a period of time. 10 33 48. "Local governing body" means the board of directors of 10 34 an electric cooperative as provided in section 499.36, the 10 35 utility board of a municipal electric utility as defined in 11 1 section 388.1, or the council of a city, as defined in section 11 2 362.2, whose municipal electric utility is not operated by a 11 3 utility board. 11 4 49. "Municipal electric cooperative association" means an 11 5 electric cooperative, the membership of which is composed 11 6 entirely of municipal utilities. 11 7 50. "Municipal utility" means all or part of an electric 11 8 light and power plant system which is owned by a city, 11 9 including all land, easements, rights of way, fixtures, 11 10 equipment, accessories, improvement, appurtenances, and other 11 11 property necessary or useful for the operation of a municipal 11 12 electric utility. Municipal utility includes a combined 11 13 utility system, as defined in section 384.80, in which at 11 14 least one of the components of the combined utility system is 11 15 a municipal electric utility. 11 16 51. "Nonbypassable charge" means a charge assessed by a 11 17 delivery service provider to each end-use consumer located 11 18 within the delivery service provider's assigned service area 11 19 or to a competitive electric service provider serving that 11 20 end-use consumer, regardless of whether the consumer purchases 11 21 delivery service from that delivery service provider. 11 22 52. "Nuclear decommissioning" means a series of activities 11 23 undertaken at the time a nuclear power plant is permanently 11 24 retired from service to ensure that the final entombment, 11 25 decontamination, dismantlement, removal, and disposal of the 11 26 structures, systems, and components of the power plant, 11 27 including the plant site, and any radioactive components and 11 28 materials associated with the plant, is accomplished in 11 29 compliance with all applicable state and federal laws, and to 11 30 ensure that such final disposition does not pose any material 11 31 threat to the public health and safety. 11 32 53. "Nuclear decommissioning costs" means all reasonable 11 33 costs and expenses that are expected to be incurred or are 11 34 actually incurred in connection with nuclear decommissioning 11 35 including all costs and expenses to prepare a unit of a plant 12 1 for decommissioning, such as the cost of moving spent fuel 12 2 off-site, interim spent fuel storage costs, and interim costs 12 3 incurred pursuant to a SAFSTOR decommissioning phase as 12 4 approved and defined by the nuclear regulatory commission, and 12 5 all costs and expenses after the actual decommissioning 12 6 occurs, such as physical security and radiation monitoring 12 7 expenses. "Nuclear decommissioning costs" also includes 12 8 reasonable costs and expenses to return the plant site to a 12 9 condition suitable for public use. 12 10 54. "Person" means person as defined in section 4.1. 12 11 55. "Responsible consumer" means all of the following: 12 12 a. Prior to May 1, 2002, a person who receives bundled 12 13 electric service pursuant to a tariff or contract. 12 14 b. On or after May 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, 1999, 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 November 1, 2001, and 15 18 shall become effective on May 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 January 1, 2002. At 15 23 a 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 October 1, 1999. The filing shall also include the 16 18 processes 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 November 1, 2001, 16 26 and shall become effective May 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 January 1, 2002, and become effective when the 17 6 first Iowa end-use consumer in the control area has the option 17 7 to choose competitive electric services. 17 8 4. INFORMATIONAL POSTING OF TRANSMISSION TARIFFS. On or 17 9 before November 1, 2001, 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 and provides information necessary to help consumers 17 27 make appropriate choices regarding their electric service, to 17 28 understand their rights and responsibilities as consumers, 17 29 including rights under the federal Telemarketing and Consumer 17 30 Fraud and Abuse Prevention Act, and to understand the legal 17 31 obligations of the competitive electric service providers and 17 32 delivery service providers. A collaborative process shall be 17 33 used to develop a consumer education program to assist 17 34 consumers in understanding their rights and opportunities. 17 35 The board shall determine the date for commencement of the 18 1 education program approved by the board. 18 2 2. COLLABORATIVE PROCESS. Within ninety days after the 18 3 effective date of this chapter, the board shall convene an 18 4 initial meeting of persons interested in participating in the 18 5 development of a consumer education program. Additional 18 6 meetings shall be scheduled by the board as necessary. 18 7 Interested persons shall be provided an opportunity for input, 18 8 consistent with the objective of commencing the consumer 18 9 education program on a date determined by the board. 18 10 3. STANDARDS. A consumer education program shall be 18 11 developed in a two-step process, including message development 18 12 and message dissemination. Message development shall be 18 13 designed to educate consumers about all of the following: 18 14 a. The existing electric industry structure and the 18 15 difference between that structure and the purchase of 18 16 competitive and regulated electric services in a competitive 18 17 market. 18 18 b. Consumers' rights and responsibilities in a competitive 18 19 electric market. 18 20 c. The rights and responsibilities of competitive electric 18 21 service providers, aggregators, and delivery service 18 22 providers. 18 23 d. The role of the board and the office of consumer 18 24 advocate. 18 25 The messages shall focus upon the educational and 18 26 informational needs of nonresidential consumers using fewer 18 27 than one hundred thousand kilowatt-hours annually and 18 28 residential consumers including rural consumers. The content 18 29 and dissemination of the messages shall be as competitively 18 30 neutral as practicable. 18 31 The board shall specify the methods of message 18 32 dissemination for electric companies. The method of message 18 33 dissemination for consumer-owned utilities shall be determined 18 34 by each local governing body with due consideration of the 18 35 recommendations of the board. However, the board shall 19 1 specify the minimum number of times that consumer-owned 19 2 utilities must disseminate the messages. The board shall 19 3 develop the messages and, for electric companies, the method 19 4 of message dissemination, giving due consideration to the 19 5 comments and suggestions received through the collaborative 19 6 process. 19 7 4. MAXIMUM COST. The total cost of message development 19 8 and dissemination shall not exceed six million dollars. 19 9 5. FUNDING. The costs of message development and 19 10 dissemination shall be funded through nonbypassable charges on 19 11 the bills issued for bundled electric service, with collection 19 12 to be completed by May 1, 2002. The costs of message 19 13 development shall be apportioned among the incumbent providers 19 14 in proportion to the number of kilowatt-hours used within an 19 15 incumbent provider's assigned service area in 1998 to the 19 16 total number of kilowatt-hours used in 1998 in all assigned 19 17 service areas. Ninety percent of the costs of message 19 18 dissemination shall be allocated to incumbent providers that 19 19 are electric companies and shall be apportioned among electric 19 20 companies in proportion to the number of kilowatt-hours used 19 21 within the electric company's assigned service area in 1998 to 19 22 the total number of kilowatt-hours used in 1998 in the 19 23 assigned service areas of all electric companies. The 19 24 remaining ten percent of the costs of message dissemination, 19 25 not to exceed six hundred thousand dollars, shall be allocated 19 26 to consumer-owned incumbent providers and shall be apportioned 19 27 among them in proportion to the number of kilowatt-hours used 19 28 in 1998 within the assigned service area of each to the total 19 29 number of kilowatt-hours used in 1998 in the assigned service 19 30 areas of all consumer-owned incumbent providers. 19 31 The board shall determine the date for commencement of 19 32 collection of the nonbypassable charge and shall specify for 19 33 electric companies by December 31, 1999, the method of 19 34 allocating the costs among rates, which method may differ from 19 35 the method used for apportioning costs among incumbent 20 1 providers. Moneys collected from the nonbypassable charges 20 2 shall be forwarded to the board quarterly. To the extent the 20 3 amount collected through the nonbypassable charge exceeds by 20 4 more than five percent the amount authorized to be collected, 20 5 the electric company shall be required to refund such 20 6 overcollections to the end-use consumers who paid those 20 7 amounts in a manner to be approved by the board. A consumer- 20 8 owned utility may collect its share of message development 20 9 costs and the costs of its own message dissemination program 20 10 through a nonbypassable delivery charge. 20 11 6. OTHER COMMUNICATIONS. Nothing in this section shall 20 12 prohibit a person from communicating to an end-use consumer in 20 13 an accurate and truthful manner regarding the competitive 20 14 electric market and regulated electric services through a 20 15 means other than the consumer education program developed 20 16 under this section. In addition, the board may continue to 20 17 provide information and education following the conclusion of 20 18 the consumer education program, but shall not continue the 20 19 nonbypassable charge established for that purpose. 20 20 Sec. 6. NEW SECTION. 476B.6 CONSUMER PROTECTIONS – 20 21 RIGHTS AND RESPONSIBILITIES OF CONSUMERS. 20 22 1. LICENSE REQUIRED. 20 23 a. Except as provided in this section, a person shall not 20 24 provide or offer to provide competitive electric services to 20 25 an end-use consumer, or aggregate end-use consumers for the 20 26 acquisition of competitive electric services without first 20 27 obtaining a license from the board. This section does not 20 28 prohibit a person from communicating to an end-use consumer in 20 29 an accurate and truthful manner regarding the emerging 20 30 competitive electric market in this state and the person's 20 31 planned role in that market. In addition to the licensing 20 32 requirements in this section, the board may adopt, by rule, 20 33 additional licensing requirements consistent with this section 20 34 that are required to protect the public from fraud and unfair, 20 35 deceptive, or other abusive business sales practices, to 21 1 provide for reasonable disclosure of service terms and 21 2 conditions and consumer rights and responsibilities, and to 21 3 protect the integrity of the delivery system. However, the 21 4 disclosure of fuel sources to an end-use consumer or the board 21 5 shall only be required if necessary to support advertising 21 6 claims. The board shall adopt rules providing additional 21 7 protections that require competitive electric service 21 8 providers to disclose to a residential end-use consumer 21 9 information regarding service prices, terms, and conditions 21 10 with a written statement which the residential end-use 21 11 consumer may retain. The board shall adopt rules regarding 21 12 the form, content, and distribution of the residential end-use 21 13 consumer information, which shall include, but not be limited 21 14 to, the following: prices, fees, charges, and penalties and 21 15 other terms and conditions of service; whether a credit agency 21 16 will be contacted; deposit requirements and interest paid on 21 17 deposits; due dates of bills and consequences of late 21 18 payments; deferred payment arrangements; limits, if any, on 21 19 warranties and damages; any other fees, charges, or penalties; 21 20 whether the competitive electric service provider or its 21 21 primary power supplier, if known, operates under a collective 21 22 bargaining agreement and whether it operates with employees 21 23 hired as replacements during the course of a labor dispute; 21 24 and the methods by which residential end-use consumers shall 21 25 be notified of any changes to these items. The competitive 21 26 electric service provider, in an informational booklet form, 21 27 shall describe residential end-use consumer rights under this 21 28 chapter and annually mail this booklet to its residential end- 21 29 use consumers. The board may adopt, by rule, additional 21 30 licensing requirements regarding adequate notice to end-use 21 31 consumers prior to automatic contract renewal. The board 21 32 shall also adopt rules regarding the circumstances under which 21 33 residential end-use consumers would have the right to 21 34 terminate competitive electric service contracts. The board 21 35 may establish reasonable conditions or restrictions on a 22 1 license. Unless otherwise expressly provided by this chapter, 22 2 the licensing rules adopted by the board shall not 22 3 discriminate in favor of or against any prospective licensee. 22 4 The initial licensing rules shall be proposed by the board no 22 5 later than October 1, 1999. 22 6 b. The board may reject a request for a license if the 22 7 request does not contain sufficient information for the board 22 8 to evaluate the request, but must reject such a request within 22 9 thirty days of the request's filing. The board shall fully 22 10 describe in writing any deficiencies in a license request that 22 11 is rejected. 22 12 c. The board shall rule upon a request for a license that 22 13 is not found to be deficient within one hundred twenty days of 22 14 the filing of the request with the board. However, the board 22 15 may process a request for a license, but shall not make a 22 16 license effective until one hundred eighty days after the 22 17 adoption of the initial rules under paragraph "a". 22 18 d. The board shall maintain a current list of all licensed 22 19 providers of competitive electric services. The board shall 22 20 make such a list available to a person upon request and shall 22 21 post the list on its website. This list shall be updated as 22 22 soon as practicable following the issuance of a license to a 22 23 competitive electric service provider or upon revocation of 22 24 the license of a competitive electric service provider. 22 25 e. A license shall not be required for an incumbent 22 26 provider that is a consumer-owned utility who chooses to 22 27 provide competitive electric services only within its assigned 22 28 service area, either through the incumbent provider or its 22 29 affiliate. 22 30 f. The board may charge reasonable fees for licensing 22 31 requests and for administering licenses. 22 32 2. LICENSE REQUIREMENTS FOR COMPETITIVE ELECTRIC SERVICE 22 33 PROVIDERS OTHER THAN AGGREGATORS. In addition to other 22 34 requirements that the board may adopt under subsection 1, a 22 35 competitive electric service provider, except one acting only 23 1 as an aggregator, shall file with the board as a condition of 23 2 obtaining a license under this section all of the following: 23 3 a. The legal name and all trade names under which the 23 4 licensee will operate, a description of the business structure 23 5 of the licensee, evidence of authorization to do business in 23 6 the state if required, and, if applicable, the state of 23 7 organization. 23 8 b. The names, business addresses, and business telephone 23 9 numbers of the principal officers of the licensee, the name 23 10 and business address of the agent for the licensee who can be 23 11 contacted regarding its operations in this state, and a 23 12 telephone number at which the agent can be contacted twenty- 23 13 four hours a day. 23 14 c. Identification of any affiliates that are licensees 23 15 under this section and a listing of the names and addresses of 23 16 all affiliates of the competitive electric service provider 23 17 engaged in the provision of competitive electric services in 23 18 any other state. 23 19 d. Identification of any state in which the licensee or an 23 20 affiliate has had a comparable license suspended, revoked, or 23 21 denied, including identification of the title and number of 23 22 any applicable proceedings and a copy of any final orders in 23 23 such proceedings or the citation to the website where the text 23 24 of the orders can be found. 23 25 e. A listing of all pending and completed legal actions 23 26 and formal complaints pertaining to the provision of retail or 23 27 wholesale electric service in the United States that have been 23 28 filed against the licensee or its affiliates with a public 23 29 utility regulatory body other than the board in the twelve 23 30 months prior to the date of the request for a license, 23 31 including identification of the title and number of any 23 32 applicable proceedings and a copy of any final orders in such 23 33 proceedings or the citation to the website where the text of 23 34 the orders can be found. 23 35 f. Unless the licensee is an incumbent provider or a 24 1 consumer-owned utility with delivery service property in this 24 2 state on the effective date of this chapter, or a municipal 24 3 electric cooperative association established prior to the 24 4 effective date of this chapter, a demonstration that the 24 5 licensee has the operational and financial capability to 24 6 obtain and deliver the services it proposes to offer. 24 7 g. A commitment to provide the board, upon the board's 24 8 request, with evidence supporting the basis of any advertising 24 9 claims made regarding fuel sources. 24 10 h. A commitment to disclose to each prospective end-use 24 11 consumer prior to the initiation of service those terms and 24 12 conditions of service and those rights and responsibilities of 24 13 the end-use consumer associated with the offered service that 24 14 are required to be disclosed by rules adopted by the board 24 15 pursuant to subsection 1 and section 476B.8, subsection 3. 24 16 i. A bond or other demonstration of the financial 24 17 capability to satisfy claims and expenses that can reasonably 24 18 be anticipated to occur as part of operations under its 24 19 license, including the failure to honor contractual 24 20 commitments. The adequacy of the bond or demonstration shall 24 21 be determined by the board and reviewed by the board from time 24 22 to time. In determining the adequacy of the bond or 24 23 demonstration, the board shall consider the extent of the 24 24 services to be offered, the size of the licensee, and the size 24 25 of the load to be served, with the objective of ensuring that 24 26 the board's financial requirements do not unreasonably erect 24 27 barriers to market entry. In no event shall the board require 24 28 a bond or other demonstration of financial capability in 24 29 excess of ten million dollars. A person not subject to 24 30 paragraph "f" is deemed by the board to have fulfilled the 24 31 requirements of this paragraph. 24 32 j. A commitment that, commencing with calendar year 2006, 24 33 an annual calendar year average of at least two percent of the 24 34 capacity, in megawatts, available for purchase by end-use 24 35 consumers as a competitive power supply service will represent 25 1 the licensee's ownership of, or contracts for the purchase of, 25 2 capacity from alternative energy facilities, provided that the 25 3 board may waive this requirement to the extent that it 25 4 determines that compliance with the requirement is not 25 5 practicable or that the requirement constitutes a significant 25 6 impediment to the development of competitive electric 25 7 services, or to the extent that a consumer-owned utility can 25 8 demonstrate that a statute or a contract in effect as of 25 9 January 1, 1999, precludes compliance. For purposes of 25 10 meeting this requirement, the capacity available for purchase 25 11 from alternative energy facilities shall be calculated by 25 12 multiplying an alternative energy facility's nameplate 25 13 capacity in megawatts or kilowatts by the fraction of fuel 25 14 input derived from geothermal, landfill gas, refuse-derived 25 15 fuel, agricultural crops or residues, or wood. If the 25 16 facility was not designed as an alternative energy facility, 25 17 the facility's rated capacity for purposes of reliability in 25 18 the applicable reliability region or council, or its 25 19 successor, shall be used in lieu of the nameplate capacity in 25 20 determining the megawatts available for purchase from 25 21 alternative energy facilities. In the case of a solar, wind, 25 22 or hydroelectric alternative energy facility, the megawatts 25 23 available for purchase shall be deemed to be equal to the 25 24 nameplate capacity or contract amount. If the board finds 25 25 that any costs of a contract for alternative energy during an 25 26 annual calendar year are being recovered through the charges 25 27 provided in section 476B.15, subsection 3, the alternative 25 28 energy in that contract shall not be used to satisfy the 25 29 requirement of this paragraph for that year. A licensee may 25 30 credit against the capacity requirement of this paragraph one 25 31 hundred fifty percent of the nameplate capacity of any 25 32 alternative energy facility located in this state that is no 25 33 larger than five hundred kilowatts in nameplate capacity to 25 34 the extent that the licensee agrees to allow net billing. For 25 35 purposes of this paragraph, "net billing" means that an end- 26 1 use consumer's electric service and the generation from its 26 2 alternative energy facility are both measured by a single 26 3 meter, and the end-use consumer only pays for service net of 26 4 its own generation. 26 5 k. A commitment not to terminate the provision of 26 6 competitive electric service, or to request a delivery service 26 7 provider to disconnect electric service, to an end-use 26 8 consumer without providing at least twelve calendar days' 26 9 prior notice to the end-use consumer, unless the contract 26 10 between a nonresidential end-use consumer and the licensee 26 11 provides otherwise. 26 12 l. A commitment to comply with the applicable rules of the 26 13 board and this chapter, and to recognize an end-use consumer's 26 14 rights including the right to voluntarily aggregate under 26 15 subsection 4, paragraph "e". 26 16 m. A commitment to comply with all applicable federal, 26 17 state, and regional rules and procedures, including those for 26 18 the use, operation, and maintenance of the electric delivery 26 19 system including control area operations. This shall include 26 20 a commitment by the proposed licensee to accept, to the extent 26 21 required by the applicable authority, the responsibility to 26 22 report the loads of the end-use consumers served by the 26 23 proposed licensee to the North American electric reliability 26 24 council or its successor, or a person performing similar 26 25 functions. 26 26 n. A commitment that competitive electric services, when 26 27 offered to residential end-use consumers, will be provided for 26 28 a minimum of thirty days. 26 29 o. A commitment to advise each end-use consumer of the 26 30 right to rescind the selection of a competitive electric 26 31 service offered by the licensee within three business days of 26 32 selection, in accordance with rules adopted pursuant to 26 33 subsection 4, paragraph "o". 26 34 p. A commitment not to transfer to another person the 26 35 competitive electric service account of any end-use consumer 27 1 except with the consent of the end-use consumer or in 27 2 accordance with any applicable statute. This chapter does not 27 3 preclude a competitive electric service provider from 27 4 transferring all or a portion of its end-use consumers and 27 5 competitive electric service accounts pursuant to a sale or 27 6 transfer of all or a substantial portion of a competitive 27 7 electric service provider's competitive electric service 27 8 business in this state, provided that the transfer satisfies 27 9 all of the following conditions: 27 10 (1) The transferee will serve the affected end-use 27 11 consumers through a licensed competitive electric service 27 12 provider. 27 13 (2) The transferee will honor the transferor's contracts 27 14 with affected end-use consumers. 27 15 (3) The transferor provides written notice of the transfer 27 16 to each affected end-use consumer not less than thirty days 27 17 prior to the transfer. 27 18 (4) An affected residential end-use consumer is given 27 19 thirty days to change to a competing competitive electric 27 20 service provider without penalty. 27 21 q. A commitment not to charge or attempt to collect any 27 22 charges from end-use consumers for any competitive electric 27 23 service or electric equipment not contracted for or otherwise 27 24 agreed to by the end-use consumer. 27 25 r. A commitment that the licensee will have the facilities 27 26 and the personnel to contact the delivery service provider in 27 27 a timely fashion, as provided by rules adopted by the board, 27 28 upon receipt of information from an end-use consumer of the 27 29 existence of an emergency situation with respect to delivery 27 30 service. The initial rules shall be proposed by October 1, 27 31 1999. 27 32 s. A commitment that if the licensee ceases to comply with 27 33 contractual commitments to end-use consumers, fails to 27 34 schedule energy with the control area operator for two 27 35 consecutive twenty-four-hour periods, fails to deliver energy 28 1 scheduled with or committed to a control area operator for two 28 2 consecutive twenty-four-hour periods, ceases operation under 28 3 its license, or otherwise substantially defaults on its 28 4 obligations under its license, within eight hours of such 28 5 occurrence, the licensee shall do both of the following: 28 6 (1) Provide the board with the names and addresses of all 28 7 end-use consumers of the licensee. 28 8 (2) If any of the end-use consumers of the licensee are 28 9 located in the assigned service area of a delivery service 28 10 provider that is a consumer-owned utility, the licensee shall 28 11 provide that delivery service provider with the names and 28 12 addresses of such consumers. 28 13 t. A commitment to include on bills rendered to 28 14 residential end-use consumers all of the following: 28 15 (1) The period of time for which the billing is 28 16 applicable. 28 17 (2) The amount owed for current service, including an 28 18 itemization of all charges. 28 19 (3) Any past due amount owed. 28 20 (4) The last date for timely payment. 28 21 (5) The amount of penalty for any late payment. 28 22 (6) The location for or method of remitting payment. 28 23 (7) A toll-free telephone number for the end-use consumer 28 24 to contact for information and to make complaints regarding 28 25 the licensee. 28 26 (8) A toll-free telephone number for the end-use consumer 28 27 to contact the licensee in the event of an emergency. 28 28 (9) A toll-free telephone number for the end-use consumer 28 29 to notify the delivery service provider of an emergency 28 30 regarding delivery service. 28 31 (10) If the bill is to an end-use consumer in the assigned 28 32 service area of a delivery service provider that is an 28 33 electric company, information regarding regulated rates, 28 34 charges, refunds, and services as provided in rules adopted by 28 35 the board as being required by the public interest. The 29 1 initial rules shall be by October 1, 1999. 29 2 u. A commitment to notify the board during the pendency of 29 3 the license request and after the issuance of the license of 29 4 any substantial change in the representations and commitments 29 5 required by this subsection within fourteen days of such 29 6 change. 29 7 v. A commitment to annually submit to the board such 29 8 information as the board reasonably determines by rule is 29 9 necessary to monitor the development of competitive electric 29 10 services in this state and the licensee's compliance with this 29 11 chapter. Information submitted pursuant to this paragraph 29 12 shall be kept confidential and shall not be available for 29 13 public examination. The initial rules shall be by October 1, 29 14 1999. 29 15 w. For a competitive electric service provider operating 29 16 generating facilities in Iowa, or involved in meter 29 17 installation, meter maintenance, or meter reading within Iowa, 29 18 including a competitive electric service provider that is a 29 19 consumer-owned utility but only to the extent that it provides 29 20 competitive electric service outside its assigned service 29 21 area, a commitment to conduct these activities in a prompt, 29 22 safe, and reliable manner; to maintain within the state those 29 23 administrative, technical, and operating personnel necessary 29 24 for the provision of reasonably safe, reliable, and prompt 29 25 generation and metering services and facilities; and to 29 26 demonstrate that personnel involved in installing, operating, 29 27 and maintaining generating facilities or electric meters and 29 28 metering equipment have the requisite skills, knowledge, 29 29 experience, and training to perform those work functions 29 30 necessary to provide high-quality, safe, reliable, and prompt 29 31 services. Such demonstration may include a showing that 29 32 applicable personnel have completed an accredited or 29 33 recognized apprenticeship training program for the particular 29 34 skill, trade, or craft. 29 35 3. LICENSE REQUIREMENTS FOR AGGREGATORS. In addition to 30 1 other requirements that the board may adopt under subsection 30 2 1, each competitive electric service provider that acts only 30 3 as an aggregator shall file with the board the information 30 4 specified in subsection 2, paragraphs "a", "b", "c", "d", "e", 30 5 "g", "h", "k", "l", "n", "o", "p", "u", and "v". If the 30 6 aggregator will be issuing bills to end-use consumers, then it 30 7 shall also file the information required in subsection 2, 30 8 paragraphs "q", "r", and "t". 30 9 4. RIGHTS OF CONSUMERS. 30 10 a. An end-use consumer shall have access to competitive 30 11 electric services and regulated delivery services in 30 12 accordance with this chapter. All such services shall be 30 13 provided in a safe, reliable, and prompt manner. 30 14 b. The electric grid shall be extended to every end-use 30 15 consumer in accordance with section 476B.9 and such applicable 30 16 rules as are adopted by the board, or, for a consumer-owned 30 17 utility, policies adopted by the local governing body. 30 18 c. An end-use consumer shall have nondiscriminatory access 30 19 to use the electric grid in accordance with this chapter. 30 20 d. An end-use consumer shall not be refused competitive 30 21 electric services, regulated delivery services, standard offer 30 22 service, transitional service, basic energy service, or 30 23 universal service on the basis of age, race, religion, 30 24 national origin, gender, or disability within the meaning of 30 25 the federal Americans with Disabilities Act. 30 26 e. An end-use consumer shall have the right to voluntarily 30 27 aggregate with other end-use consumers for the purpose of 30 28 seeking competitive electric services. Aggregation shall not 30 29 be restricted by any rule or regulation except those 30 30 determined necessary by the board to maintain the safety or 30 31 reliability of the delivery system or to prevent fraud or 30 32 unfair advantage. An end-use consumer shall not be forced to 30 33 aggregate with any group of end-use consumers or other persons 30 34 without the end-use consumer's express consent. 30 35 f. An end-use consumer that has the option to choose 31 1 competitive electric services under this chapter may negotiate 31 2 a bilateral contract for these services. 31 3 g. An end-use consumer or an account of an end-use 31 4 consumer shall not be transferred by a competitive electric 31 5 service provider to another person except as provided in 31 6 subsection 2, paragraph "p". 31 7 h. An end-use consumer located in the assigned service 31 8 area of an incumbent provider that is an electric company 31 9 shall have the right not to choose another competitive 31 10 electric service provider and automatically receive service 31 11 under section 476B.8, subsection 1 or 2, as applicable, from 31 12 their incumbent provider without further action by the end-use 31 13 consumer. 31 14 i. An end-use consumer located in the assigned service 31 15 area of an incumbent provider that is a consumer-owned utility 31 16 shall have the right not to choose another competitive 31 17 electric service provider and automatically receive service 31 18 from the consumer-owned utility under section 476B.8, 31 19 subsection 4, without further action by the end-use consumer. 31 20 j. A residential end-use consumer who is located in the 31 21 assigned service area of an electric company and who either 31 22 has made a good faith effort to obtain a competitive electric 31 23 service provider, but has not been able to do so, or qualifies 31 24 for assistance under section 476B.13, subsection 1, shall have 31 25 the option to receive electric services pursuant to section 31 26 476B.8, subsection 3, and the rules adopted pursuant to that 31 27 subsection. An end-use consumer who is located in the 31 28 assigned service area of a consumer-owned utility and who is 31 29 without a competitive electric service provider shall have the 31 30 option to receive electric services pursuant to section 31 31 476B.8, subsection 4. 31 32 k. Except as otherwise provided in this chapter, on or 31 33 after May 1, 2002, information regarding the electric usage 31 34 history or electric account credit history of an individual 31 35 end-use consumer in the possession of an electric company, 32 1 consumer-owned utility, delivery service provider, control 32 2 area operator, competitive electric service provider, or 32 3 aggregator shall not be provided to any other electric 32 4 company, consumer-owned utility, delivery service provider, 32 5 control area operator, competitive electric service provider, 32 6 or aggregator except pursuant to an order of the board or a 32 7 court having jurisdiction, pursuant to a final determination 32 8 of an appropriate governmental entity with authority to compel 32 9 disclosure of such information, with the consent of the end- 32 10 use consumer, or pursuant to a proposed sale or transfer of 32 11 all or a substantial portion of the electric business in this 32 12 state of the person disclosing the information. 32 13 l. An end-use consumer shall be entitled to request from 32 14 its incumbent provider or competitive electric service 32 15 provider the most recent twenty-four months of the consumer's 32 16 historical usage information, if reasonably available, from 32 17 its account. The requested information shall be provided to 32 18 the end-use consumer without charge one time per calendar 32 19 year. If requested more than once per calendar year, the end- 32 20 use consumer may be charged the reasonable cost incurred by 32 21 the incumbent provider or competitive electric service 32 22 provider in providing the information. 32 23 m. The board may adopt rules regarding physical 32 24 disconnection procedures. Only a delivery service provider 32 25 with an assigned service area shall physically disconnect end- 32 26 use consumers located within its assigned service area. Rules 32 27 adopted, at a minimum, shall provide that disconnection is 32 28 warranted by any of the following: 32 29 (1) Failure to pay charges for delivery service including 32 30 nonbypassable charges. 32 31 (2) Failure of an end-use consumer that does not qualify 32 32 for service under section 476B.8 to designate one or more 32 33 competitive electric service providers to provide competitive 32 34 power supply services, and, where applicable, electric 32 35 metering, or electric billing services. 33 1 (3) Failure to pay for standard offer service, 33 2 transitional service, basic energy service, or universal 33 3 service. 33 4 The initial rules shall be proposed by June 1, 2001. 33 5 n. An end-use consumer shall have the right to install 33 6 metering in accordance with section 476B.11. 33 7 o. An end-use consumer shall have three business days 33 8 after the selection of a competitive electric service provider 33 9 or a competitive electric service, but prior to the initiation 33 10 of the service, within which to rescind the selection. The 33 11 board shall propose rules by June 1, 2001, applicable to 33 12 competitive electric service providers regarding the manner, 33 13 method, and content of the notice to be provided to end-use 33 14 consumers regarding this right. 33 15 p. Provisions addressing consumer fraud, including 33 16 misrepresentations regarding service and terms of service, 33 17 contained in section 714.16, subsection 2, paragraph "a", and 33 18 all accompanying provisions of chapter 714 shall apply to 33 19 competitive electric service providers. 33 20 q. A residential end-use consumer that is certified as a 33 21 low-income consumer shall have the opportunity to receive 33 22 assistance for bill payment and energy efficiency programs as 33 23 provided in section 476B.13, subsection 1, and is eligible to 33 24 request electric service under section 476B.8, subsection 3 or 33 25 4, as applicable. 33 26 r. The board shall establish rules of uniform 33 27 applicability to all competitive electric service providers 33 28 that it determines to be required to protect the public 33 29 interest regarding credit practices, consumer deposit 33 30 practices, collection practices, service termination 33 31 practices, billing practices, accuracy of information, public 33 32 safety, electric service reliability, and quality of electric 33 33 service. The initial rules shall be proposed by June 1, 2001. 33 34 Sec. 7. NEW SECTION. 476B.7 AVAILABILITY OF CHOICE. 33 35 1. Beginning on May 1, 2002, an end-use consumer located 34 1 in the assigned service area of a delivery service provider 34 2 that is an electric company shall have the option to choose 34 3 competitive electric services from competitive electric 34 4 service providers and unbundled delivery services from the 34 5 delivery service provider. An end-use consumer located in the 34 6 assigned service area of a delivery service provider that is a 34 7 consumer-owned utility shall have the option to choose 34 8 competitive electric services from competitive electric 34 9 service providers and unbundled delivery services from the 34 10 delivery service provider on a date to be determined by the 34 11 consumer-owned utility's local governing body, but in no event 34 12 prior to May 1, 2002, or after October 1, 2002. The board 34 13 shall adopt rules regarding the procedures to be used by 34 14 delivery service providers, competitive electric service 34 15 providers, and end-use consumers for those end-use consumers 34 16 exercising their option to choose competitive electric 34 17 services, including the amount of notice that must be provided 34 18 to the delivery service provider prior to switching from 34 19 bundled electric service to unbundled delivery service. The 34 20 initial rules shall be proposed by 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, 2001. 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 that purchased 36 8 fewer than twenty-five thousand kilowatt-hours of electric 36 9 service in 2001 and in each calendar year after 2001 and a 36 10 residential end-use consumer located within the assigned 36 11 service area of an incumbent provider that is an electric 36 12 company shall be provided electric service by the incumbent 36 13 provider under this subsection commencing May 1, 2002. This 36 14 service shall be provided by the incumbent provider's 36 15 competitive electric service provider or its delivery service 36 16 provider, at its option, and shall be a regulated service. 36 17 This service shall continue until the earlier of any of the 36 18 following: 36 19 (a) The end-use consumer selects an electric service 36 20 offering other than the one provided in this subsection. 36 21 (b) The end-use consumer no longer qualifies to receive 36 22 service under the terms and conditions of this paragraph "a" 36 23 or the applicable standard offer service tariff or board 36 24 rules. 36 25 (c) January 1, 2006. 36 26 (2) Termination of standard offer service on January 1, 36 27 2006, is conditioned upon the board finding, after a contested 36 28 case proceeding concluding not later than October 1, 2005, 36 29 that as of January 1, 2006, all of the following conditions 36 30 will exist: 36 31 (a) Transition cost recovery under section 476B.15, 36 32 subsection 1, will have concluded. 36 33 (b) The delivery service provider substantially complies 36 34 with all applicable board rules governing the administration 36 35 of open access and comparable distribution service adopted 37 1 pursuant to section 476B.9, subsection 2. 37 2 (c) The delivery service provider has in place an 37 3 enforceable dispute resolution process. 37 4 (d) Transaction costs assessed by the delivery service 37 5 provider to end-use consumers exercising their option to 37 6 choose competitive electric services are reasonable. 37 7 (e) Competitive electric services purchased by end-use 37 8 consumers eligible for standard offer service are subject to 37 9 effective competition in the relevant markets. 37 10 (3) In determining whether a service is or becomes subject 37 11 to effective competition in the relevant markets, the board, 37 12 in addition to other factors, shall consider whether a 37 13 comparable service is available from a competitive electric 37 14 service provider other than the incumbent provider and whether 37 15 market forces are sufficient to assure competitively priced 37 16 services without regulation. If the board finds that any of 37 17 the conditions under subparagraph (2) have not been met, 37 18 standard offer service shall continue until a showing is made 37 19 by the incumbent provider and the board determines all 37 20 conditions are met. An end-use consumer has no right to 37 21 return to standard offer service after any of the conditions 37 22 identified under subparagraph (1) occur, except that an end- 37 23 use consumer having selected an electric service offering 37 24 other than standard offer service may return to standard offer 37 25 service if all of the following apply: 37 26 (a) No more than ninety days have passed since the 37 27 consumer left standard offer service. 37 28 (b) The consumer has not previously left and returned to 37 29 standard offer service. 37 30 (c) The consumer is otherwise still qualified to receive 37 31 standard offer service. 37 32 The ninety-day period in subparagraph subdivision (a) shall 37 33 not extend the termination date of standard offer service. 37 34 b. At the time an incumbent provider that is an electric 37 35 company files its initial unbundled rates with the board 38 1 pursuant to section 476B.4, it shall also file its initial 38 2 standard offer service tariffs under this subsection, which 38 3 shall be subject to review and approval by the board. The 38 4 initial standard offer service tariffs shall reflect the 38 5 electric rates, charges, terms, and conditions of the tariffs 38 6 applicable to nonresidential end-use consumers using fewer 38 7 than twenty-five thousand kilowatt-hours per year and the 38 8 tariffs applicable to residential end-use consumers, as those 38 9 tariffs existed in the rate zones of the incumbent provider's 38 10 assigned service area on the effective date of this chapter, 38 11 adjusted to avoid duplicate recovery of costs to be recovered 38 12 under section 476B.15, subsection 3, costs to be recovered 38 13 under section 476B.16, and the portion of uncollectible costs 38 14 projected to be offset by the programs established under 38 15 section 476B.13, subsection 1. However, the board may approve 38 16 modifications to the terms and conditions of such tariffs 38 17 existing on the effective date of this chapter to the extent 38 18 just, reasonable, and nondiscriminatory. An electric company, 38 19 to the extent it has not already done so, shall eliminate 38 20 automatic adjustment mechanisms in effect pursuant to section 38 21 476.6, subsection 11, that are applicable to standard offer 38 22 service rates. Elimination shall be accomplished by adjusting 38 23 the initial standard offer service rates to include a 38 24 representative amount of the costs which would have been 38 25 recovered through the mechanisms. If an electric company's 38 26 nuclear generating unit is unavailable for reasons beyond the 38 27 electric company's reasonable control, the electric company 38 28 may file with the board an adjustment reflecting changes in 38 29 exogenous factors beyond the control of the electric company. 38 30 The board shall allow the adjustment to become effective 38 31 immediately. The board shall review the adjustment within 38 32 thirty days after the date the adjustment is effective, and 38 33 order refunds of the revenues resulting from the adjustment if 38 34 the board determines after its review that the nuclear 38 35 generating unit's unavailability was reasonably within the 39 1 control of the electric company. The effective date of the 39 2 automatic adjustment mechanism elimination for standard offer 39 3 service rates shall be May 1, 2002. An electric company may 39 4 retain automatic adjustment mechanisms to the extent the 39 5 mechanisms apply to transitional service under subsection 2. 39 6 c. After January 1, 1999, the board shall not initiate or 39 7 order an increase or a reduction in any of the bundled 39 8 electric rates of an electric company or in the standard offer 39 9 service rates established pursuant to this section except as 39 10 provided in this subsection. However, an incumbent provider 39 11 that is an electric company may reduce its bundled electric 39 12 rates or standard offer service rates at any time, so long as 39 13 such reduction is effected in a nondiscriminatory manner, the 39 14 reduction is filed with the board thirty days prior to the 39 15 proposed effective date of the reduction, and the reduced 39 16 rates are posted on the board's website. The board may hold a 39 17 hearing on the reduction prior to the proposed effective date 39 18 and may suspend the effective date for up to an additional 39 19 sixty days. The board shall approve the reduction unless it 39 20 determines that it is unreasonably discriminatory or would 39 21 constitute predatory pricing as defined by applicable 39 22 antitrust law. A board finding of predatory pricing under 39 23 this paragraph shall be given no weight in any subsequent 39 24 legal action, except with respect to judicial review of the 39 25 board's ruling brought pursuant to section 476B.22. 39 26 d. Commencing January 1, 2003, an incumbent provider that 39 27 is an electric company may increase its standard offer service 39 28 rates to reflect increases in its unbundled distribution 39 29 service rates approved by the board under section 476B.9, 39 30 subsection 5. An incumbent provider that is an electric 39 31 company may also increase its standard offer service rates 39 32 after January 1, 2003, to reflect increases in applicable 39 33 transmission service rates approved by a federal or state 39 34 agency with rate jurisdiction. Standard offer service rates 39 35 incorporating an increase permitted by this paragraph shall be 40 1 filed with the board thirty days prior to becoming effective. 40 2 The increased standard offer service rates shall become 40 3 effective at the conclusion of the thirty-day period unless 40 4 the board determines that the incumbent provider has increased 40 5 standard offer service rates by an amount greater than the 40 6 increase in unbundled distribution service rates or 40 7 transmission service rates, in which case the board may 40 8 suspend the effective date for up to an additional sixty days. 40 9 If the board suspends a filing made pursuant to this 40 10 paragraph, the board shall provide the incumbent provider with 40 11 an opportunity for hearing. 40 12 e. On or before January 1, 2003, an incumbent provider 40 13 that is an electric company may file with the board a 40 14 mechanism to increase or decrease standard offer service rates 40 15 by adjusting the generation components of the rates to or 40 16 toward the market price of generation that an affected end-use 40 17 consumer should reasonably be expected to pay after the 40 18 termination of standard offer service. The mechanism shall be 40 19 approved by the board if it finds, after hearing, that it is 40 20 in the public interest and is as revenue neutral to the 40 21 incumbent provider as practicable. In determining the public 40 22 interest of the mechanism, the board, in addition to other 40 23 factors, shall consider whether the approval of the mechanism 40 24 would contribute to the development of effective competition 40 25 in the relevant markets. A mechanism approved under this 40 26 paragraph shall not become effective before January 1, 2004. 40 27 The board shall determine the market price that the affected 40 28 end-use consumer would reasonably be expected to pay in the 40 29 relevant competitive market. An incumbent provider's filing 40 30 under this paragraph is subject to section 476B.9, subsection 40 31 5. 40 32 f. If the board does not allow the termination of standard 40 33 offer service in a relevant market on or before January 1, 40 34 2006, pursuant to paragraph "a", the incumbent provider shall 40 35 be required to acquire competitive power supply services in 41 1 the market for this service. The price of standard offer 41 2 service shall be adjusted to reflect the cost of acquiring 41 3 that supply. The board shall adopt rules to assure 41 4 competitive pricing under this paragraph. 41 5 g. At any time, an incumbent provider that is an electric 41 6 company may file with the board a request to recalculate the 41 7 generation component of its bundled electric rates or standard 41 8 offer service rates to reflect changes in revenues, expenses, 41 9 and investments due to exogenous factors beyond the control of 41 10 the electric company. Such filing is subject to section 41 11 476B.9, subsection 5. 41 12 h. At a time and in a manner determined by the board to be 41 13 reasonable and in the public interest, an electric company 41 14 shall notify those end-use consumers receiving standard offer 41 15 service of the termination of such service and the 41 16 alternatives reasonably available to such consumers. 41 17 i. Rates, charges, terms, and conditions in effect under 41 18 this subsection shall be posted on the board's website. 41 19 j. An end-use consumer receiving standard offer service 41 20 under this subsection shall also be billed for applicable 41 21 charges under section 476B.13, subsection 1, section 476B.15, 41 22 subsection 3, and section 476B.16. 41 23 2. TRANSITIONAL SERVICE. 41 24 a. Commencing on May 1, 2002, a nonresidential end-use 41 25 consumer of an incumbent provider that is an electric company 41 26 who purchased twenty-five thousand kilowatt-hours of electric 41 27 service or more from the electric company in 2001 and who has 41 28 not chosen competitive electric services from another 41 29 competitive electric service provider shall receive 41 30 transitional service from the incumbent provider for a period 41 31 not to exceed one year and under tariff provisions approved by 41 32 the board. On or before January 1, 2001, an incumbent 41 33 provider shall file its initial rates, charges, terms, and 41 34 conditions applicable to this transitional service and shall 41 35 specify the duration for which the service will be available. 42 1 The board shall approve transitional service rates, charges, 42 2 terms, and conditions to the extent it determines them to be 42 3 just and reasonable. The filing shall be subject to section 42 4 476B.9, subsection 5. The rates, charges, terms, conditions, 42 5 and duration of transitional service approved by the board 42 6 shall be posted on the board's website for informational 42 7 purposes by no later than November 1, 2001, and shall become 42 8 effective May 1, 2002. 42 9 b. Nothing in this subsection shall preclude a qualifying 42 10 end-use consumer from exercising its option to choose 42 11 competitive electric services from a licensed competitive 42 12 electric service provider at any time, consistent with this 42 13 chapter and applicable board rules. 42 14 c. An end-use consumer receiving transitional service 42 15 under this subsection shall also be billed for applicable 42 16 charges under section 476B.13, subsection 1, section 476B.15, 42 17 subsection 3, and section 476B.16. 42 18 3. UNIVERSAL SERVICE. 42 19 a. The board shall adopt rules establishing the conditions 42 20 with which a residential end-use consumer located in the 42 21 assigned service area of a delivery service provider that is 42 22 an electric company must comply to qualify to receive service 42 23 under this subsection. The rules, at a minimum, shall address 42 24 the rights and remedies to avoid disconnection including, but 42 25 not limited to, use of prepaid meters, payment plans, deposit 42 26 requirements, load limiters, and other provisions deemed 42 27 appropriate by the board. The rules shall include a 42 28 requirement that electric service to a residential end-use 42 29 consumer who is the head of the household as defined by law 42 30 and who is eligible for assistance under the programs 42 31 established by section 476B.13, subsection 1, shall not be 42 32 discontinued from November 1 through April 1 except as 42 33 otherwise provided by the board. The initial rules shall be 42 34 proposed by March 1, 2001. 42 35 b. Residential end-use consumers who qualify to receive 43 1 service under the rules adopted pursuant to paragraph "a" and 43 2 who can demonstrate they have made an effort, as defined by 43 3 the board rules, to secure electric service from a competitive 43 4 electric service provider, but have been denied service, or 43 5 who have been determined to qualify for assistance under 43 6 section 476B.13, subsection 1, shall have the option to be 43 7 provided electric service under this subsection by their 43 8 delivery service provider. 43 9 c. At the time an electric company files its initial 43 10 unbundled rates with the board pursuant to section 476B.4, the 43 11 electric company shall also file its initial universal service 43 12 tariffs under this subsection, which shall be subject to 43 13 review and approval by the board. Through December 31, 2005, 43 14 the rates for universal service shall generally be the same as 43 15 the residential rates that would be available to the consumer 43 16 from its incumbent provider under subsection 1, including the 43 17 adjustments as specified in that subsection. However, an 43 18 electric company may propose to offer only one universal 43 19 service rate in each rate zone and may propose automatic 43 20 adjustment mechanisms applicable only to rates under this 43 21 subsection. The board shall approve universal service rates 43 22 and tariffs to the extent it determines those rates and 43 23 tariffs to be just and reasonable. The initial universal 43 24 service rates approved by the board shall be posted on the 43 25 board's website by no later than November 1, 2001, and shall 43 26 become effective May 1, 2002. Beginning January 1, 2006, the 43 27 rates for this service shall be based upon the market prices 43 28 applicable to the type of service received by the consumer, 43 29 adjusted for any state or federal subsidy of the rate paid to 43 30 the delivery service provider. The board may adopt rules, to 43 31 be effective January 1, 2006, that require the delivery 43 32 service provider to acquire competitive power supply services 43 33 for this service. 43 34 d. Section 476B.9, subsection 5, applies to changes in the 43 35 initial universal service tariffs proposed by an electric 44 1 company after the board's approval of the initial tariffs. 44 2 e. Rates, charges, terms, and conditions in effect under 44 3 this subsection shall be posted on the board's website within 44 4 twenty-four hours after becoming effective. 44 5 f. An end-use consumer receiving universal service under 44 6 this subsection shall also be billed for applicable charges 44 7 under section 476B.13, subsection 1, section 476B.15, 44 8 subsection 3, and section 476B.16. 44 9 4. CONSUMER-OWNED UTILITIES. 44 10 a. BASIC ENERGY SERVICE. Delivery service providers with 44 11 an assigned service area that are consumer-owned utilities 44 12 shall offer basic energy services to all end-use consumers 44 13 within their assigned service areas that have not specified a 44 14 competitive electric service provider or are otherwise without 44 15 a competitive electric service provider. Rates, charges, 44 16 terms, and conditions of basic energy services shall be 44 17 established by the local governing body and shall comply with 44 18 section 476B.9, subsection 6. 44 19 b. UNIVERSAL SERVICE. Delivery service providers with an 44 20 assigned service area that are consumer-owned utilities shall 44 21 offer universal service as a type of basic energy service to 44 22 eligible residential consumers determined in accordance with 44 23 the board's rules adopted pursuant to subsection 3, paragraphs 44 24 "a" and "b". This service will only be offered to eligible 44 25 consumers for the same period of time this service is offered 44 26 by electric company delivery service providers. Rates 44 27 associated with this service are subject to section 476B.9, 44 28 subsection 6. 44 29 Sec. 9. NEW SECTION. 476B.9 RESPONSIBILITIES AND RIGHTS 44 30 OF DELIVERY SERVICE PROVIDERS. 44 31 1. RESPONSIBILITIES FOR SAFE, RELIABLE, AND PROMPT 44 32 SERVICE. 44 33 a. A delivery service provider shall furnish safe, 44 34 reliable, and prompt delivery services and facilities. A 44 35 delivery service provider with an assigned service area shall 45 1 maintain within the state those administrative, technical, and 45 2 operating personnel necessary for the provision of safe, 45 3 reliable, and prompt delivery services and facilities. Such 45 4 personnel shall be strategically located by the delivery 45 5 service provider to ensure that end-use consumers receive 45 6 safe, reliable, and prompt service. A delivery service 45 7 provider shall also maintain within the state an office for 45 8 Iowa operations that shall maintain those books, accounts, 45 9 papers, and records deemed necessary by the board to be 45 10 maintained within the state, unless otherwise authorized by 45 11 the board. Nothing in this paragraph requires a consumer- 45 12 owned utility to relocate any delivery service personnel or to 45 13 change the current location of its books, accounts, papers, or 45 14 records. 45 15 b. The board shall have general oversight responsibility 45 16 for delivery service safety requirements and inspection and 45 17 maintenance activities for all delivery service providers. 45 18 The board shall adopt rules for delivery service providers 45 19 that it determines are required for reasonably safe, reliable, 45 20 and prompt delivery service, including rules relating to 45 21 credit practices, collection practices, disconnection 45 22 practices, billing practices, public safety, service 45 23 reliability, quality of service, power quality, preventive 45 24 maintenance standards, line clearance standards, outage 45 25 frequency, outage duration, service restoration, and other 45 26 necessary provisions. The board shall also adopt rules 45 27 regarding distribution service extensions, staffing levels as 45 28 related to outage duration, and the timeliness of service 45 29 installation for delivery service providers that are electric 45 30 companies. In adopting the rules required by this paragraph, 45 31 the board shall give due consideration to weather, terrain, 45 32 public safety, staffing levels, cost, and end-use consumer 45 33 satisfaction. The initial rules shall be proposed by March 1, 45 34 2001. 45 35 c. The board shall adopt rules requiring that delivery 46 1 service providers demonstrate that personnel who will be 46 2 installing, operating, and maintaining the delivery system 46 3 have the requisite skills, knowledge, experience, and training 46 4 to perform those work functions necessary to provide high 46 5 quality, safe, and reliable services. Such demonstration may 46 6 include a showing that applicable personnel have completed an 46 7 accredited or recognized apprenticeship training program for 46 8 the particular skill, trade, or craft. The initial rules 46 9 shall be proposed by June 1, 2001. 46 10 2. OPEN ACCESS AND COMPARABLE DELIVERY SERVICE. 46 11 a. Commencing May 1, 2002, for each delivery service 46 12 provider that is an electric company, and commencing on the 46 13 date that an end-use consumer has the option to choose 46 14 competitive electric services in the assigned service area of 46 15 each delivery service provider that is a consumer-owned 46 16 utility, unbundled distribution services, and other electric 46 17 services unbundled pursuant to section 476B.4, shall be made 46 18 available to end-use consumers and, if in the assigned service 46 19 area of an electric company, to licensed competitive electric 46 20 service providers, as provided in this chapter and the rules 46 21 adopted by the board to implement this section. Unbundled 46 22 delivery services shall be offered on a nondiscriminatory and 46 23 comparable service basis. 46 24 b. The board may adopt uniform rules for administering 46 25 open access and comparable delivery service including, but not 46 26 limited to, procedures for access to consumer information for 46 27 operational purposes, data transfers, and switching of 46 28 competitive electric service providers by end-use consumers. 46 29 However, the board shall not impose rates upon a consumer- 46 30 owned utility. The rules shall give due consideration to the 46 31 technology available, the administrative and financial burden 46 32 on delivery service providers and competitive electric service 46 33 providers, the objective of reasonable distribution service 46 34 rates, and the objective of nondiscriminatory and comparable 46 35 service. The initial rules shall be proposed by October 1, 47 1 2000. 47 2 c. Delivery service providers shall adopt and implement 47 3 procedures for restoring delivery service after outages on a 47 4 nondiscriminatory basis without regard to the competitive 47 5 electric service provider serving the end-use consumer. 47 6 d. If, after notice and opportunity for hearing, the board 47 7 determines that any delivery service provider or control area 47 8 operator is imposing unreasonable or artificial barriers to 47 9 access to any competitive electric service on the delivery 47 10 system, the board shall require the delivery service provider 47 11 or control area operator to take corrective measures, not 47 12 inconsistent with federal law, to the extent necessary and 47 13 feasible to eliminate the barriers to access. However, the 47 14 board shall not impose rates upon a consumer-owned utility. 47 15 The measures ordered by the board may include a requirement 47 16 that the delivery service provider participate in a regional 47 17 entity approved by the federal energy regulatory commission, 47 18 or its successor, that has authority over the portion of the 47 19 delivery system subject to federal regulation independently 47 20 from the wholesale electric sales function of the delivery 47 21 service provider. For the purposes of this paragraph, 47 22 artificial barriers shall not include legislative or 47 23 regulatory actions. 47 24 3. ELIMINATION OF OBLIGATION TO PROVIDE CERTAIN ELECTRIC 47 25 SERVICES. 47 26 a. Except as provided in subsection 7 and sections 476B.8, 47 27 476B.11, and 476B.12, an incumbent provider and a delivery 47 28 service provider shall not have any obligation to provide 47 29 competitive electric services to an end-use consumer that has 47 30 the option to choose competitive electric services. 47 31 b. A delivery service provider or a control area operator 47 32 shall not be liable for any damages to an end-use consumer if 47 33 a competitive electric service provider chosen by the consumer 47 34 fails to fulfill the terms of its contract with the end-use 47 35 consumer. This paragraph shall not be construed to limit the 48 1 liability of a delivery service provider or a control area 48 2 operator for damages caused by its own actions or failure to 48 3 act. 48 4 4. ASSIGNED SERVICE AREAS. 48 5 a. EXCLUSIVE ASSIGNED SERVICE AREAS ESTABLISHED. The 48 6 state has established a system of exclusive assigned service 48 7 areas for electric service pursuant to section 476.25 and in 48 8 effect on January 1, 1999. The service areas shall continue 48 9 to be assigned to the persons to whom such areas were assigned 48 10 on January 1, 1999, or their successors, who shall provide 48 11 bundled electric service to end-use consumers on an exclusive 48 12 basis until the dates when choice is available as specified in 48 13 section 476B.7. On or after the dates when choice is 48 14 available, a person assigned a service area immediately prior 48 15 to the dates when choice is available shall be the delivery 48 16 service provider for the assigned service area unless such 48 17 person designates to the board a different person. A delivery 48 18 service provider shall provide delivery services to end-use 48 19 consumers within its assigned area on an exclusive basis 48 20 pursuant to this chapter. 48 21 b. CLARIFICATION OR MODIFICATION OF BOUNDARIES. 48 22 (1) Consistent with this subsection, the board, on its own 48 23 motion or at the request of a delivery service provider or 48 24 municipal corporation, after notice and opportunity for 48 25 hearing, may clarify or modify the boundaries of an assigned 48 26 service area if it finds that the clarification or 48 27 modification will promote the public interest, preserve 48 28 existing assigned service areas and the delivery service 48 29 providers' right to serve existing end-use consumers, prevent 48 30 unnecessary duplication of facilities, provide adequate 48 31 delivery service to all assigned service areas and end-use 48 32 consumers affected, and promote the efficient and economical 48 33 use and development of the electric delivery system. 48 34 (2) An agreement between delivery service providers to 48 35 designate assigned service areas and end-use consumers or to 49 1 clarify or modify assigned service areas to be served by the 49 2 delivery service providers or for the exchange of end-use 49 3 consumers between delivery service providers shall be 49 4 submitted to the board for review. The agreement, when 49 5 approved by the board, is valid and enforceable and shall be 49 6 incorporated into the appropriate assigned service areas 49 7 established pursuant to this subsection. The board shall 49 8 approve an agreement if the board finds the agreement 49 9 satisfies the criteria set forth in subparagraph (1). 49 10 (3) If a delivery service provider declines to enter into 49 11 an agreement to designate an assigned service area or end-use 49 12 consumers, or to clarify or modify an assigned service area, 49 13 an aggrieved person may petition the board to order such a 49 14 designation, clarification, or modification on the grounds 49 15 that the proposed designation, clarification, or modification 49 16 will promote the public interest, preserve existing service 49 17 areas and the delivery service providers' right to serve 49 18 existing end-use consumers, prevent unnecessary duplication of 49 19 facilities, provide adequate delivery service to all assigned 49 20 service areas and end-use consumers affected, and promote the 49 21 efficient and economical use and development of the electric 49 22 delivery system. If the board finds that the petition meets 49 23 the foregoing standards, the board shall order the 49 24 designation, clarification, or modification on such terms and 49 25 conditions as it finds just and reasonable. 49 26 c. LIMIT ON BYPASS. Except with the written approval of 49 27 the affected delivery service provider and the board, a person 49 28 shall not provide or offer to provide delivery service to an 49 29 end-use consumer in an assigned service area assigned to 49 30 another delivery service provider, or construct delivery 49 31 service facilities in an assigned service area assigned to 49 32 another delivery service provider to serve an end-use consumer 49 33 in such assigned service area. This paragraph does not 49 34 preclude an end-use consumer from constructing, or having 49 35 constructed, on real estate which the end-use consumer owns or 50 1 leases, distribution service facilities for the exclusive 50 2 purpose of meeting the end-use consumer's own electric service 50 3 requirements, as long as such facilities are constructed 50 4 entirely within the boundaries of such real estate and, as a 50 5 consequence of constructing such facilities, will not allow 50 6 that end-use consumer to avoid nonbypassable charges or reduce 50 7 the value of facilities dedicated to that end-use consumer for 50 8 which the delivery service provider would not be compensated. 50 9 With respect to matters subject to the board's jurisdiction, a 50 10 person may file a complaint with the board regarding a 50 11 violation of this paragraph. Upon finding a violation, the 50 12 board shall order appropriate corrective action including 50 13 discontinuance of the unlawful service, removal of the 50 14 unlawful facility, compensation for lost margin, or other 50 15 disposition commensurate with the injury suffered. A petition 50 16 for franchise filed by a municipal utility pursuant to section 50 17 478.2 for facilities used to connect the utility to the 50 18 transmission grid shall not be limited by this paragraph. 50 19 d. CERTIFICATES OF AUTHORITY. A municipal corporation, 50 20 after being authorized by a vote of the people, or any 50 21 delivery service provider may file a petition with the board 50 22 requesting a certificate of authority to furnish delivery 50 23 service to the existing point of delivery of any end-use 50 24 consumer already receiving delivery service. If, after thirty 50 25 days have elapsed following notice by the board to the person 50 26 currently serving the end-use consumer, objection to the 50 27 petition is not filed and investigation is not deemed 50 28 necessary, the board shall issue a certificate. If an 50 29 objection is filed, and the board, after notice and 50 30 opportunity for hearing, determines that delivery service to 50 31 the end-use consumer by the petitioner should be granted, the 50 32 board shall grant a certificate in whole or in part, upon such 50 33 terms, conditions, and restrictions as may be justified. In 50 34 determining whether a proposal should be granted, the board 50 35 shall consider the factors set forth in paragraph "b", 51 1 subparagraph (1). Whether or not an objection is filed, a 51 2 certificate issued shall require that the petitioner pay to 51 3 the person presently serving the end-use consumer the 51 4 reasonable price for the facilities serving the end-use 51 5 consumer as determined by the board. A price determination by 51 6 the board shall include due consideration of all of the 51 7 following: 51 8 (1) The value of the facilities being acquired. 51 9 (2) Any penalties, buyout costs, or other costs associated 51 10 with any commitments to generating and transmission capacity 51 11 on behalf of the departing consumers or to support the 51 12 delivery service facilities being acquired. 51 13 (3) Projected loss of revenue and its impact on remaining 51 14 end-use consumers of the affected provider. 51 15 (4) The cost of any facilities necessary to reintegrate 51 16 the system of the delivery service provider after detaching 51 17 the portion sold. 51 18 e. OBLIGATION TO EXTEND DELIVERY SERVICE FACILITIES. A 51 19 delivery service provider that has been assigned an exclusive 51 20 delivery service area pursuant to this subsection shall extend 51 21 delivery service facilities to all end-use consumers within 51 22 its assigned service area as provided in this chapter. The 51 23 board shall adopt rules for electric companies setting forth 51 24 the terms and conditions of delivery service facility 51 25 extensions for electric companies and shall issue proposed 51 26 rules by no later than October 1, 2001. 51 27 f. DELIVERY SERVICE AREA MAPS. Whenever requested by the 51 28 board, delivery service providers shall file with the board, 51 29 jointly or severally, detailed maps of their assigned service 51 30 areas drawn to a scale specified by the board showing all of 51 31 the following: 51 32 (1) The locations of franchised transmission lines, 51 33 distribution lines, and related facilities. 51 34 (2) All state and federal highways and other public roads 51 35 within the delivery service area. 52 1 (3) All section lines and numbers, and township and range 52 2 numbers within the delivery service area. 52 3 (4) The corporate boundaries of all cities within the 52 4 delivery service area. 52 5 (5) All lakes and rivers within the delivery service area. 52 6 (6) All railroads within the delivery service area. 52 7 (7) The number, classifications, training levels, and 52 8 locations of personnel involved in installing, operating, and 52 9 maintaining delivery services and facilities. 52 10 (8) Any additional information requested by the board. 52 11 If deemed by the board to be necessary, the board shall 52 12 prepare or cause to have prepared a composite map of this 52 13 state showing the delivery service areas. The form and detail 52 14 of all maps shall be determined by the board. 52 15 g. EXCEPTION. Notwithstanding contrary provisions of this 52 16 section, a delivery service provider may extend delivery 52 17 service facilities and provide delivery service outside its 52 18 assigned service area to its own utility property and 52 19 facilities. 52 20 h. RIGHTS OF CITIES. If not inconsistent with this 52 21 chapter, the rights of cities under chapters 362 through 390 52 22 are preserved. 52 23 However, prior to the institution of condemnation 52 24 proceedings under chapter 6B, a city shall obtain a 52 25 certificate of authority from the board as provided in 52 26 paragraph "d" and the board's determination of price shall be 52 27 conclusive evidence of damages in these condemnation 52 28 proceedings. 52 29 i. EFFECT OF INCORPORATION, ANNEXATION, OR CONSOLIDATION. 52 30 The inclusion by incorporation, annexation, or consolidation 52 31 of any facilities or service area of a person with an 52 32 exclusive assigned service area within the boundaries of any 52 33 city shall not by such inclusion impair or affect in any 52 34 respect the rights of the delivery service provider to 52 35 continue to provide delivery services and to extend service to 53 1 prospective end-use consumers in accordance with this chapter. 53 2 5. DELIVERY SERVICE RATE REGULATION FOR ELECTRIC 53 3 COMPANIES. A delivery service provider that is also an 53 4 electric company shall file, post, and maintain applicable 53 5 unbundled rates in accordance with this subsection and section 53 6 476B.4. The board shall regulate the rates, charges, 53 7 schedules, and regulations for distribution services and other 53 8 services unbundled pursuant to section 476B.4, subsection 1, 53 9 and provided by delivery service providers that are electric 53 10 companies. The burden of establishing the reasonableness of 53 11 rates, charges, schedules, and regulations is upon the 53 12 delivery service provider. 53 13 a. FILING WITH BOARD. Except as provided in paragraphs 53 14 "g" and "i", a delivery service provider that is an electric 53 15 company shall not make effective a new or changed distribution 53 16 service rate, charge, schedule, or regulation or other 53 17 unbundled rate, charge, schedule, or regulation subject to the 53 18 jurisdiction of the board until the rate, charge, schedule, or 53 19 regulation has been approved by the board. Notwithstanding 53 20 anything in this chapter to the contrary, if an application 53 21 for a new or changed rate or charge is filed with the board 53 22 and posted on its website, and if affected competitive 53 23 electric service providers and end-use consumers have the 53 24 option to select or not select such rate or charge, the rate 53 25 or charge shall become effective within ten business days 53 26 after filing. The board, within ten business days after the 53 27 filing, may docket the filing and suspend the rate or charge, 53 28 either upon the filing of a written objection or on its own 53 29 motion, but the board shall not suspend the rate or charge for 53 30 more than ninety days from the date the tariff was filed. 53 31 b. LIMITATIONS ON FILING. A delivery service provider 53 32 that is an electric company shall not make a subsequent filing 53 33 of an application for a new or changed rate, charge, schedule, 53 34 or regulation which relates to the same rate, charge, 53 35 schedule, or regulation for which a filing is pending within 54 1 twelve months following the date the prior application was 54 2 filed or until the board has issued a final order on the prior 54 3 application, whichever date is earlier, unless the delivery 54 4 service provider applies to the board for authority to make a 54 5 subsequent filing at an earlier date and such application is 54 6 approved by the board. 54 7 c. WRITTEN NOTICE OF INCREASE. A delivery service 54 8 provider that is an electric company shall give written notice 54 9 of a proposed increase of a distribution service rate or 54 10 charge or other unbundled rate or charge subject to the 54 11 jurisdiction of the board to all affected competitive electric 54 12 service providers and end-use consumers receiving service 54 13 under board-approved tariffs or with whom the delivery service 54 14 provider has distribution service contracts, whether or not 54 15 written, prior to the time the application for the increase is 54 16 filed with the board. The notice shall state that the 54 17 competitive electric service provider or end-use consumer has 54 18 a right to file a written objection to the rate increase and 54 19 may request the board to hold a public hearing to determine if 54 20 the increase should be allowed. The board shall adopt rules 54 21 prescribing the timing, manner, and method of serving the 54 22 written notice. The board may adopt rules regarding 54 23 notification of other end-use consumers that may be affected 54 24 by a proposed increase. The initial rules shall be proposed 54 25 by March 1, 2001. 54 26 d. FACTS AND ARGUMENTS SUBMITTED. At the time an 54 27 application for any new or changed rate, charge, schedule, or 54 28 regulation is filed with the board, the delivery service 54 29 provider shall submit factual evidence and written argument 54 30 offered in support of the filing. If the application proposes 54 31 an increase in distribution service rates, the delivery 54 32 service provider shall also file testimonial evidence in 54 33 support of the filing. 54 34 e. HEARING SET. After the filing of an application by a 54 35 delivery service provider for a new or changed rate, charge, 55 1 schedule, or regulation subject to the jurisdiction of the 55 2 board, the board, prior to the expiration of thirty days after 55 3 the filing date, shall docket the case as a formal proceeding 55 4 and set the case for hearing unless the new or changed rate, 55 5 charge, schedule, or regulation is approved by the board. If 55 6 an application presents no material issue of fact subject to 55 7 dispute, and the board determines that the application 55 8 violates a relevant statute, or is not in substantial 55 9 compliance with a board rule, the application may be rejected 55 10 by the board without prejudice and without a hearing, provided 55 11 that the board issues a written order setting forth all of its 55 12 reasons for rejecting the application. The board shall give 55 13 notice of formal proceedings as it deems appropriate. Except 55 14 as provided in paragraphs "g" and "i", the docketing of a case 55 15 as a formal proceeding suspends the effective date of the new 55 16 or changed rate, charge, schedule, or regulation until the 55 17 rate, charge, schedule, or regulation is approved by the 55 18 board. 55 19 f. UTILITY HEARING EXPENSES REPORTED. If a case has been 55 20 docketed as a formal proceeding, the delivery service provider 55 21 shall file with the board a report outlining the expected 55 22 expenses for litigating the case through the period allowed by 55 23 the board in rendering a final decision. Within ten days 55 24 after the conclusion of the delivery service provider's 55 25 presentation of comments, testimony, or briefs, the delivery 55 26 service provider shall submit to the board a listing of the 55 27 delivery service provider's actual litigation expenses in the 55 28 proceeding, excluding costs to be billed by the board and the 55 29 consumer advocate. As part of the findings of the board, the 55 30 board shall allow recovery of all reasonable costs of the 55 31 litigation, including all costs billed by the board and the 55 32 consumer advocate, over a reasonable period of time. 55 33 g. DISTRIBUTION SERVICE RATES AND CHARGES. Distribution 55 34 service rates and charges and other unbundled rates and 55 35 charges shall be based upon a cost of service method, 56 1 performance-based incentives, or such other method of 56 2 ratemaking as the board deems just and reasonable. If cost of 56 3 service is used for establishing a component of unbundled 56 4 rates, the method used to determine class cost of service, to 56 5 the maximum extent practicable, should permit identification 56 6 of cost differences attributable to variations in demand, 56 7 energy, voltage delivery level, customer components of costs, 56 8 and other factors. This chapter does not prohibit a delivery 56 9 service provider from making provision for the automatic 56 10 adjustment of a distribution service rate or charge or other 56 11 rate or charge subject to the jurisdiction of the board, 56 12 provided that a tariff setting forth the mechanism for 56 13 automatic adjustment of a rate or charge is first filed with 56 14 and approved by the board. Notice of such filing to end-use 56 15 consumers and competitive electric service providers receiving 56 16 service under board-approved tariffs or with whom the delivery 56 17 service provider has distribution service contracts, whether 56 18 or not written, shall be required, but adjustments pursuant to 56 19 an approved mechanism shall not require further notice. The 56 20 board may adopt rules regarding notification of other end-use 56 21 consumers that may be affected by the automatic adjustment 56 22 mechanism. 56 23 The board, in determining the value of materials or 56 24 services to be included in valuations or costs of operations 56 25 for ratemaking purposes, may disallow any unreasonable profit 56 26 made in the sale of materials to or services supplied for any 56 27 delivery service provider by a firm or corporation owned or 56 28 controlled directly or indirectly by such delivery service 56 29 provider or any affiliate, subsidiary, parent company, 56 30 associate, or any corporation whose controlling stockholders 56 31 are also controlling stockholders of such delivery service 56 32 provider. The burden of proof is on the delivery service 56 33 provider to prove that no unreasonable profit is made. 56 34 h. FINDING BY BOARD. If, after hearing and decision on 56 35 all issues presented for determination in the rate proceeding, 57 1 the board finds the proposed rate, charge, schedule, or 57 2 regulation to be unlawful or not just and reasonable, the 57 3 board shall, by order, authorize and direct the delivery 57 4 service provider to file a new or changed rate, charge, 57 5 schedule, or regulation which, when approved by the board and 57 6 placed in effect, will satisfy the requirements of this 57 7 chapter. A rate, charge, schedule, or regulation so approved 57 8 is lawful and effective upon its approval. 57 9 i. TEMPORARY AUTHORITY. Upon the request of a delivery 57 10 service provider, the board, when required by this paragraph, 57 11 shall grant temporary authority to place in effect any or all 57 12 of a suspended rate, charge, schedule, or regulation. A 57 13 delivery service provider shall file with the board a bond or 57 14 other undertaking approved by the board conditioned upon the 57 15 refund in a manner to be prescribed by the board of any 57 16 amounts collected in excess of the amounts which would have 57 17 been collected under a rate, charge, schedule, or regulation 57 18 finally approved by the board. In determining that portion of 57 19 the new or changed rate, charge, schedule, or regulation to be 57 20 placed into effect prior to a final decision, the board shall 57 21 apply previously established regulatory principles and, at a 57 22 minimum, shall permit rates and charges which will allow the 57 23 delivery service provider the opportunity to earn a return on 57 24 common stock equity equal to that which the board held 57 25 reasonable and just in the most recent rate case involving 57 26 electric or distribution service. However, if the most recent 57 27 final decision of the board in an applicable rate case was 57 28 rendered more than twelve months prior to the date of filing 57 29 of the request for temporary rates, the board, in addition, 57 30 shall consider financial market data that is filed or that is 57 31 otherwise available to the board and shall adjust the rate of 57 32 return on common stock equity that was approved in that 57 33 decision upward or downward as necessary to reflect current 57 34 conditions. The board shall render a decision on a request 57 35 for temporary authority within ninety days after the date of 58 1 filing of the request. The decision shall be effective 58 2 immediately. If the board has not rendered a final decision 58 3 with respect to a suspended rate, charge, schedule, or 58 4 regulation upon the expiration of ten months after the filing 58 5 date, plus the length of any delay that necessarily results 58 6 either from the failure of the delivery service provider to 58 7 exercise due diligence in connection with the proceedings or 58 8 from intervening judicial proceedings, the portion of the 58 9 rate, charge, schedule, or regulation that was approved by the 58 10 board on a temporary basis shall be deemed finally approved by 58 11 the board and the delivery service provider may place that 58 12 portion of the rate, charge, schedule, or regulation into 58 13 effect on a permanent basis, and also may place into effect 58 14 subject to refund and until the final decision of the board 58 15 any portion of the suspended rate, charge, schedule, or 58 16 regulation not previously approved on a temporary basis by 58 17 filing with the board a bond or other undertaking approved by 58 18 the board. 58 19 The board shall determine the rate of interest to be paid 58 20 by a delivery service provider to persons receiving refunds. 58 21 j. INVESTIGATIONS. If a written request is filed with the 58 22 board by any person or body politic, or filed by the board 58 23 upon its own motion, requesting the board to determine the 58 24 reasonableness of a distribution service rate, charge, 58 25 schedule, or regulation or other unbundled rate, charge, 58 26 schedule, or regulation subject to the jurisdiction of the 58 27 board, or anything done or omitted to be done in contravention 58 28 of this chapter by a delivery service provider that is an 58 29 electric company, the written complaint shall be forwarded by 58 30 the board to the delivery service provider, which shall be 58 31 called upon to satisfy the complaint or to answer it in 58 32 writing within a reasonable time to be specified by the board. 58 33 Copies of the written complaint forwarded by the board to the 58 34 delivery service provider and copies of all correspondence 58 35 from the delivery service provider in response to the 59 1 complaint shall be provided by the board in an expeditious 59 2 manner to the consumer advocate. If the board determines the 59 3 delivery service provider's response is inadequate and there 59 4 appears to be any reasonable ground for investigating the 59 5 complaint, the board shall promptly initiate a formal 59 6 proceeding. If the consumer advocate determines the delivery 59 7 service provider's response to the complaint is inadequate, 59 8 the consumer advocate may file a petition with the board which 59 9 shall promptly initiate a formal proceeding if the board 59 10 determines that there is any reasonable ground for 59 11 investigating the complaint. The complainant or the delivery 59 12 service provider also may petition the board to initiate a 59 13 formal proceeding, which petition shall be granted if the 59 14 board determines that there is any reasonable ground for 59 15 investigating the complaint. A formal proceeding may be 59 16 initiated at any time by the board on its own motion. If a 59 17 formal proceeding is initiated, the board shall set the case 59 18 for hearing and give notice as it deems appropriate. If the 59 19 board, after a hearing held after reasonable notice, finds a 59 20 delivery service provider's rate, charge, schedule, or 59 21 regulation subject to the jurisdiction of the board is unjust, 59 22 unreasonable, discriminatory, or otherwise in violation of any 59 23 law, the board shall determine a just, reasonable, and 59 24 nondiscriminatory rate, charge, schedule, or regulation to be 59 25 observed and enforced. 59 26 k. RATE COMPLAINTS BY CONSUMER ADVOCATE. If the consumer 59 27 advocate files a complaint with the board alleging that a 59 28 delivery service provider's regulated rates are excessive, the 59 29 disputed amount shall be specified in the petition. The board 59 30 shall promptly initiate a formal proceeding if it determines 59 31 that there is any reasonable ground for investigating the 59 32 complaint. If the board determines to initiate a formal 59 33 proceeding, the delivery service provider, within the time 59 34 prescribed by the board, shall file a bond or undertaking 59 35 approved by the board conditioned upon the refund in a manner 60 1 prescribed by the board of amounts collected after the date of 60 2 filing of the petition in excess of a rate or charge finally 60 3 determined by the board to be lawful. If after hearing the 60 4 board finds that the delivery service provider's regulated 60 5 rates are unlawful or not just and reasonable, the board shall 60 6 order a refund, with interest, of amounts collected after the 60 7 date of filing of the petition that are determined to be in 60 8 excess of the amounts which would have been collected under 60 9 the rates finally approved. However, the board shall not 60 10 order a refund that is greater than the amount specified in 60 11 the petition, plus interest, and if the board fails to render 60 12 a decision within ten months following the date of filing of 60 13 the petition, the board shall not order a refund of any excess 60 14 amounts that are collected after the expiration of that ten- 60 15 month period and prior to the date the decision is rendered. 60 16 l. PROSPECTIVE EFFECT. A determination by the board of a 60 17 distribution service rate or charge or another unbundled rate, 60 18 charge, schedule, or regulation pursuant to paragraph "i" or 60 19 "j" that is based upon a variance from previously established 60 20 regulatory principles shall apply prospectively from the date 60 21 of the decision. 60 22 m. RULES GOVERNING HEARINGS. The board shall adopt rules 60 23 to provide for the completion of proceedings under this 60 24 subsection within ten months after the date of the filing of 60 25 the application or complaint. The rules shall include 60 26 reasonable time limitations for the submission or completion 60 27 of comments, testimony, exhibits, briefs, and hearings, which 60 28 the board may extend upon the request of a party to the 60 29 proceeding for good cause shown. Additional time granted to a 60 30 party shall not extend the amount of time for which a delivery 60 31 service provider is required to file a bond or other 60 32 undertaking. If additional time is granted, the board may 60 33 extend the ten-month period during which a delivery service 60 34 provider is prohibited from placing its entire rate increase 60 35 request into effect, but an extension shall not exceed the 61 1 aggregate amount of all additional time granted under this 61 2 paragraph. The initial rules shall be proposed by March 1, 61 3 2001. 61 4 n. CONSIDERATION OF CURRENT INFORMATION. The board shall 61 5 adopt rules that require the board in rate proceedings under 61 6 this subsection to consider the use of the most current test 61 7 period possible in determining reasonable and just rates, 61 8 subject only to the availability of existing and verifiable 61 9 data with respect to costs and revenues, and in addition to 61 10 consider verifiable data that exist as of the filing date of 61 11 the application or complaint with respect to known and 61 12 measurable changes in costs not associated with a different 61 13 level of revenue, and known and measurable revenues not 61 14 associated with a different level of costs, that are to occur 61 15 at any time within twelve months after the date of the filing. 61 16 This paragraph shall not limit the authority of the board to 61 17 consider other evidence in proceedings under this subsection. 61 18 The initial rules shall be proposed by March 1, 2001. 61 19 o. TARIFFS POSTED. A rate, charge, schedule, term, 61 20 condition, or regulation applicable to distribution service or 61 21 other unbundled service that has been approved by the board or 61 22 is otherwise in effect pursuant to this subsection shall be 61 23 posted on the board's website within twenty-four hours after 61 24 being placed into effect. 61 25 p. ACCOUNTS RENDERED TO THE BOARD. 61 26 (1) A delivery service provider that is an electric 61 27 company shall keep and render to the board, in the manner and 61 28 form prescribed by rules of the board, uniform accounts of all 61 29 business transacted. 61 30 (2) A delivery service provider that is an electric 61 31 company and that is engaged directly or indirectly in any 61 32 other business than that of the provision of delivery services 61 33 to the public, if required by rules adopted by the board, 61 34 shall keep and render separately to the board in like manner 61 35 and form the accounts of all such other business, in which 62 1 case this subsection shall apply to the books, accounts, 62 2 papers, and records of such other business and all profits and 62 3 losses may be taken into consideration by the board if deemed 62 4 relevant to the general fiscal condition of the delivery 62 5 service provider. 62 6 (3) A delivery service provider that is an electric 62 7 company is required to keep and render its books, accounts, 62 8 papers, and records accurately and faithfully in the manner 62 9 and form prescribed by rules of the board, and to comply with 62 10 all directions of the board relating to such books, accounts, 62 11 papers, and records. 62 12 (4) The board shall consult with other state and federal 62 13 regulatory bodies for the purpose of eliminating accounting 62 14 discrepancies with regard to the keeping of accounts before 62 15 prescribing any system of account to be kept by a delivery 62 16 service provider. The initial rules shall be proposed by 62 17 March 1, 2001. 62 18 q. JURISDICTION OVER DELIVERY SERVICE PROVIDERS. The 62 19 jurisdiction and powers of the board shall extend as provided 62 20 in this chapter to a delivery service business of an electric 62 21 company operating within this state to the full extent 62 22 permitted by the Constitution and laws of the United States. 62 23 r. AUDIT OF DELIVERY SERVICE OPERATIONS. The board shall 62 24 adopt rules to administer a program for the continuous review 62 25 of operations of a delivery service provider that is an 62 26 electric company with respect to all matters that affect rates 62 27 or charges for delivery service. The initial rules shall be 62 28 proposed by March 1, 2001. 62 29 s. LOBBYING COSTS. A delivery service provider that is an 62 30 electric company is prohibited from including either directly 62 31 or indirectly the costs of lobbying in the charges or rates 62 32 subject to the jurisdiction of the board. 62 33 t. LEGAL COSTS. Legal costs and attorney fees incurred by 62 34 a delivery service provider that is an electric company in a 62 35 judicial review proceeding in state or federal court involving 63 1 the validity of any action of the board shall not be included 63 2 either directly or indirectly in the charges or rates subject 63 3 to the jurisdiction of the board except to the extent that 63 4 recovery of legal costs and attorney fees is allowed by the 63 5 board. The board shall allow recovery of the reasonable legal 63 6 costs and attorney fees incurred in judicial review. The 63 7 board may consider the degree of success of the legal 63 8 arguments of the delivery service provider in determining the 63 9 reasonable legal costs and attorney fees to be allowed. 63 10 u. ADVERTISING. Except as provided in this paragraph, a 63 11 delivery service provider that is an electric company shall 63 12 not include either directly or indirectly in the charges or 63 13 rates subject to the jurisdiction of the board the costs of 63 14 advertising other than advertising regarding public safety or 63 15 advertising that is required by the board or by any other 63 16 state or federal regulation. However, this restriction does 63 17 not apply to advertising which is deemed by the board to be in 63 18 the public interest and which is approved by the board. 63 19 An advertisement which is published, broadcast, or 63 20 otherwise displayed or disseminated to the public by a 63 21 delivery service provider that is an electric company, the 63 22 costs of which will be included in the rates or charges 63 23 subject to the jurisdiction of the board and which is not 63 24 public safety advertising or advertising required by the board 63 25 or by other state or federal regulation, shall include a 63 26 statement in the advertisement that the costs of the 63 27 advertisement are being charged to the users of delivery 63 28 service. This paragraph does not apply to a delivery service 63 29 provider's product or service that is or becomes subject to 63 30 competition as determined by the board. 63 31 v. ANNUAL REPORTS OF DELIVERY SERVICE PROVIDERS. The 63 32 board shall adopt rules prescribing the form and content of an 63 33 annual report to be filed with the board by a delivery service 63 34 provider, other than a consumer-owned utility. The board 63 35 shall review annual reports submitted pursuant to the rules. 64 1 The board may commence rate-review proceedings under this 64 2 chapter for an electric company if an annual report indicates 64 3 that its earnings are excessive. The initial rules shall be 64 4 proposed by March 1, 2001. 64 5 6. DELIVERY SERVICE RATE REGULATION FOR CONSUMER-OWNED 64 6 UTILITIES. 64 7 a. LOCAL REGULATION. The rates for delivery service and 64 8 other unbundled services provided by a consumer-owned utility 64 9 and all other matters not specifically reserved to the board 64 10 by statute shall be regulated by the consumer-owned utility's 64 11 local governing body. An election made pursuant to section 64 12 476.1A by the board of directors or the membership of an 64 13 electric cooperative corporation or association to have the 64 14 cooperative's rates regulated by the board is rescinded 64 15 effective June 1, 1999. 64 16 b. POSTING. Rates, terms, and conditions of applicable 64 17 distribution services and other unbundled services provided by 64 18 a consumer-owned utility shall be posted on the board's 64 19 website. Any change in rates, terms, or conditions shall be 64 20 posted no less than twenty-four hours prior to becoming 64 21 effective. 64 22 c. NOTICE OF CHANGES. A consumer-owned utility shall give 64 23 written notice of any proposed increase in delivery service 64 24 rates or charges or other unbundled rates or charges to all 64 25 applicable and directly affected end-use consumers and 64 26 competitive electric service providers at least thirty days 64 27 prior to the effective date of the increase. 64 28 d. DISCRIMINATION PROHIBITED. A consumer-owned utility 64 29 shall not make or grant to any person any unreasonable 64 30 preference or advantage as to delivery service rates, 64 31 services, terms, or conditions or subject any person to 64 32 unreasonable prejudice or disadvantage. This paragraph shall 64 33 not be construed to prohibit a municipal utility from 64 34 providing preferential rates, terms, or conditions of services 64 35 to any department or function of municipal government pursuant 65 1 to section 384.91. 65 2 e. DISPUTES. The district court has original jurisdiction 65 3 concerning disputes with respect to the distribution service 65 4 rates and charges and other unbundled service rates of a 65 5 consumer-owned utility and all other matters concerning a 65 6 consumer-owned utility not specifically reserved to the board 65 7 by this chapter or another statute. 65 8 f. ANNUAL REPORTS OF CONSUMER-OWNED DELIVERY SERVICE 65 9 PROVIDERS. The board shall adopt rules prescribing the form 65 10 and content of an annual report to be filed with the board by 65 11 a consumer-owned delivery service provider. The initial rules 65 12 shall be proposed by March 1, 2001. 65 13 7. CONTROL AREA OPERATIONS. 65 14 a. REGULATORY JURISDICTION. A rate, charge, term, and 65 15 condition of distribution services provided within the state 65 16 by a control area operator that is an electric company is 65 17 subject to subsection 5 and to regulation by the board except 65 18 to the extent such rate, charge, term, or condition is subject 65 19 to the exclusive jurisdiction of the federal energy regulatory 65 20 commission or another federal agency. Distribution services 65 21 may include load profiling, financial settlement, distribution 65 22 system scheduling, and ancillary services to the extent not 65 23 subject to exclusive federal jurisdiction. The board shall 65 24 approve rates, charges, terms, conditions, and processes for 65 25 load profiling and financial settlement that are just, 65 26 reasonable, and nondiscriminatory. The board shall adopt 65 27 rules governing the filing and posting of control area 65 28 operator's services, rates, charges, terms, conditions, and 65 29 processes subject to its jurisdiction and changes in such 65 30 services, rates, charges, terms, conditions, and processes. 65 31 The initial rules shall be proposed by October 1, 1999. 65 32 b. NOTICE TO BOARD OF DEFAULT. If a control area operator 65 33 becomes aware that a competitive electric service provider has 65 34 substantially failed to schedule energy for two consecutive 65 35 twenty-four-hour periods, failed to deliver energy scheduled 66 1 with or committed to the control area operator for two 66 2 consecutive twenty-four-hour periods, or has otherwise 66 3 substantially defaulted upon its obligations to or agreements 66 4 with the control area operator, the control area operator 66 5 shall notify the board and the affected delivery service 66 6 provider of such occurrence as soon as practicable. A control 66 7 area operator shall use reasonable commercial efforts to 66 8 provide power supply services on an emergency basis to end-use 66 9 consumers if a competitive electric service provider defaults. 66 10 However, notwithstanding subsection 3, paragraph "b", a 66 11 control area operator shall not be liable to an end-use 66 12 consumer for failure to provide emergency power supply 66 13 services. 66 14 The board shall adopt rules addressing the failure of a 66 15 competitive electric service provider to comply with the 66 16 terms, conditions, and obligations of control area services. 66 17 The rules shall provide for finding a replacement competitive 66 18 electric service provider or competitive electric service 66 19 providers to serve the end-use consumers of the defaulting 66 20 competitive electric service provider as soon as feasible in 66 21 order to eliminate the burden on the control area operator to 66 22 provide power supply services for such consumers. The rules 66 23 shall include a provision for the board or an entity 66 24 designated by the board to notify affected end-use consumers 66 25 if a need exists for the end-use consumers to select a new 66 26 competitive electric service provider. The rules shall also 66 27 include a provision that permits a control area operator to 66 28 recover all reasonable costs incurred by the control area 66 29 operator in remedying the competitive electric service 66 30 provider's failure and providing service to the end-use 66 31 consumers of the competitive electric service provider to the 66 32 extent the competitive electric service provider fails to pay 66 33 such costs. The initial rules shall be proposed by October 1, 66 34 2000. 66 35 8. STANDARDS OF CONDUCT. 67 1 a. DELIVERY SERVICE PROVIDERS. No later than November 1, 67 2 2001, each delivery service provider shall post on the board's 67 3 website standards of conduct, to be effective May 1, 2002, 67 4 that require the delivery service provider to do all of the 67 5 following: 67 6 (1) Apply all tariff provisions in a nondiscriminatory and 67 7 comparable service manner to similarly situated persons. 67 8 (2) Process requests for delivery service in a 67 9 nondiscriminatory manner. 67 10 (3) Make available any distribution service discounts, 67 11 rebates, or waiver of fees on a nondiscriminatory basis to all 67 12 similarly situated persons. 67 13 (4) Comply with section 476B.6, subsection 4, paragraph 67 14 "k". 67 15 (5) Deny to any competitive electric service provider 67 16 preferential access to information related to the distribution 67 17 of electricity which is not otherwise made publicly available, 67 18 except information regarding the competitive electric service 67 19 provider's own end-use consumers. 67 20 (6) Not represent that any advantages accrue to end-use 67 21 consumers or others in the use of the delivery service 67 22 provider's services as a result of that end-use consumer or 67 23 others dealing with any particular competitive electric 67 24 service provider. 67 25 (7) Establish a complaint procedure applicable to the 67 26 standards of conduct, and process and resolve complaints in 67 27 accordance with such procedure. 67 28 (8) Develop written agreements with generating plant 67 29 operators as needed to maintain distribution system 67 30 reliability. 67 31 (9) Abide by the applicable federal energy regulatory 67 32 commission standards of conduct when providing delivery 67 33 service subject to the jurisdiction of the federal energy 67 34 regulatory commission. 67 35 (10) Take reasonable steps to keep its delivery system in 68 1 operation in emergency circumstances affecting system 68 2 reliability. 68 3 (11) Prohibit discrimination in the extension or repair of 68 4 the delivery system facilities. 68 5 (12) If the delivery service provider is an electric 68 6 company, maintain separate books, records, and accounts for 68 7 distribution service operations. If the delivery service 68 8 provider is a consumer-owned utility, maintain records in such 68 9 a manner as to enable delivery service data to reasonably be 68 10 separated from data that do not pertain to delivery services. 68 11 (13) With respect to distribution service and control area 68 12 operator employees engaged in receiving requests from a 68 13 competitive electric service provider for reservation or 68 14 scheduling of energy over the distribution system, prohibit 68 15 the sharing of such employees with a competitive electric 68 16 service provider and physically separate such employees from a 68 17 competitive electric service provider. 68 18 A consumer-owned utility shall not be required to comply 68 19 with subparagraph (13), but shall be required to comply with 68 20 paragraph "b", subparagraph (7), with respect to employees 68 21 engaged in receiving requests from a competitive electric 68 22 service provider for reservation or scheduling of energy over 68 23 the delivery system. 68 24 The board shall review any posting of an electric company 68 25 and, if it concludes there are reasonable grounds to do so, 68 26 may hold a hearing to determine if the standards comply with 68 27 this subsection. 68 28 b. CONTROL AREA OPERATORS. No later than November 1, 68 29 2001, each control area operator that engages in retail 68 30 electric sales within a control area, either directly or 68 31 through its own corporate structure or an affiliate, shall 68 32 post on the board's website standards of conduct, to be 68 33 effective May 1, 2002, that require the control area operator 68 34 to do all of the following: 68 35 (1) Disclose tariff information to users of the control 69 1 area and apply all tariff provisions on a nondiscriminatory 69 2 basis to similarly situated persons. 69 3 (2) If the control area operator is an electric company, 69 4 maintain separate books of accounts and financial records from 69 5 any competitive electric service provider. If the control 69 6 area operator is a consumer-owned utility, maintain records in 69 7 such a manner as to enable control area service data to 69 8 reasonably be separated from other data. 69 9 (3) Prohibit the tying of the provision of any control 69 10 area services to the selection of any particular competitive 69 11 electric service provider or the selection of a product or 69 12 service from any particular competitive electric service 69 13 provider. 69 14 (4) Deny a competitive electric service provider 69 15 preferential access to information related to control area 69 16 operations which is not otherwise made publicly available, 69 17 except with respect to information regarding the competitive 69 18 electric service provider's own end-use consumers. 69 19 (5) Solicit, from time to time, competitive bids for 69 20 ancillary services, to the extent not inconsistent with any 69 21 applicable federal requirements. 69 22 (6) Administer energy balancing and financial settlement 69 23 performed by the control area in a nondiscriminatory manner. 69 24 (7) Develop and administer a method for maintaining the 69 25 integrity of proprietary and confidential information. 69 26 (8) Develop and post on the board's website a system for 69 27 reporting declared emergencies. However, a control area 69 28 operator shall not declare an emergency situation for the 69 29 purpose of unreasonably discriminating against any other 69 30 person. 69 31 The board shall review the posting of standards of conduct 69 32 of an electric company and, if it concludes there are 69 33 reasonable grounds to do so, may hold a hearing to determine 69 34 if the standards comply with the provisions of this 69 35 subsection. 70 1 c. INFORMATIONAL FILING AND ADDITIONAL STANDARDS FOR 70 2 ELECTRIC COMPANIES. A delivery service provider or control 70 3 area operator that is an electric company shall submit to the 70 4 board such information as the board may require in order to 70 5 evaluate the actual effectiveness of the standards of conduct 70 6 in fulfilling the purposes of this chapter. The board, upon 70 7 its own motion or upon receipt of a complaint from any person 70 8 alleging a violation of the standards of conduct, may 70 9 investigate a delivery service provider's or control area 70 10 operator's compliance with the standards of conduct. In 70 11 addition, the board may add new standards of conduct by rule, 70 12 if it determines the existing standards are not sufficient to 70 13 ensure open access and comparable and nondiscriminatory 70 14 service. 70 15 9. ADHERENCE TO SCHEDULES. A delivery service provider 70 16 shall not directly or indirectly charge a greater compensation 70 17 for its services than that prescribed in its tariffs, and a 70 18 delivery service provider shall not make or grant any 70 19 unreasonable preferences or advantages as to rates, charges, 70 20 or services to any person, or subject any person to any 70 21 unreasonable prejudice or disadvantage. 70 22 10. AFFILIATES OF DELIVERY SERVICE PROVIDERS. 70 23 a. Except as provided in this section or as otherwise 70 24 approved by the board, a delivery service provider that is an 70 25 electric company shall not directly or indirectly include in 70 26 regulated rates or charges any costs or expenses of an 70 27 affiliate engaged in any business other than delivery service 70 28 unless the affiliate provides goods or services to the 70 29 delivery service provider in accordance with rules adopted 70 30 pursuant to this subsection. Any costs included in regulated 70 31 rates or charges shall be reasonably necessary and appropriate 70 32 for the delivery service business. 70 33 b. A delivery service provider that is an electric company 70 34 shall only provide regulated services in a manner that 70 35 minimizes the possibility of cross-subsidization of 71 1 unregulated services and unfair competitive advantage and 71 2 shall provide services as described in subsection 11 only in a 71 3 manner that minimizes the possibility of cross-subsidization 71 4 or unfair competitive advantage. 71 5 c. A delivery service provider that is an electric company 71 6 shall keep and render to the board upon request delivery 71 7 service records and records pertaining to services as 71 8 described in subsection 11 separate from affiliates or 71 9 operations that do not provide delivery service. 71 10 d. For a delivery service provider that is an electric 71 11 company, the board, for delivery service ratemaking purposes, 71 12 may inquire as to and prescribe the allocation of 71 13 capitalization, earnings, debts, shared corporate services, 71 14 and expenses related to ownership, operation, or management of 71 15 affiliates. 71 16 e. Not later than October 1, 2000, the board shall propose 71 17 rules identifying those services that may be shared between a 71 18 delivery service provider or control area operator that is an 71 19 electric company and an affiliated competitive electric 71 20 service provider. Such rules shall not prevent a delivery 71 21 service provider or control area operator from using the 71 22 following shared corporate services, even when shared with an 71 23 affiliated competitive electric service provider: corporate 71 24 oversight; governance; administrative services, including 71 25 travel administration, security, printing, graphics, custodial 71 26 services, secretarial support, mail services and records 71 27 management; financial management services, including 71 28 accounting, treasury, internal audit, tax and financial 71 29 reporting and planning; data processing; shareholder services; 71 30 strategic corporate planning; human resources; employee 71 31 benefits; regulatory services; legal services; lobbying; and 71 32 nonmarket research and development activities. Such rules 71 33 shall not prevent a delivery service provider or control area 71 34 operator from using such shared corporate services even when 71 35 shared with an affiliated competitive electric service 72 1 provider. This paragraph shall not be construed to limit the 72 2 authority of the board to determine the amount of shared 72 3 corporate service costs, if any, to be included in regulated 72 4 rates for distribution service and other unbundled services 72 5 under section 476B.4 and this section. 72 6 f. A contract or arrangement providing for the furnishing 72 7 or receiving of goods and services between a delivery service 72 8 provider that is an electric company and an affiliate shall be 72 9 filed with the board in a time frame established by rule of 72 10 the board. The initial rules shall be proposed by March 1, 72 11 2001. 72 12 g. A contract or arrangement for the purchase, sale, 72 13 lease, or exchange of any property, right, or thing between a 72 14 delivery service provider that is an electric company and any 72 15 affiliate shall be filed with the board in a time frame 72 16 established by rule by the board. The initial rules shall be 72 17 proposed by March 1, 2001. 72 18 h. A contract or arrangement providing for a loan of money 72 19 or an extension or renewal of a loan of money or any similar 72 20 transaction between a delivery service provider that is an 72 21 electric company and an affiliate, whether as guarantor, 72 22 endorser, surety, or otherwise, shall be filed with the board 72 23 in a time frame established by rule of the board. The initial 72 24 rules shall be proposed by March 1, 2001. 72 25 i. A contract or agreement filed pursuant to paragraph 72 26 "f", "g", or "h" and determined by the board to be a 72 27 confidential record pursuant to section 22.7 shall be 72 28 available for review by an interested party under rules 72 29 protecting the confidentiality of the contract or agreement as 72 30 adopted by the board. The initial rules shall be proposed by 72 31 March 1, 2001. The contract or agreement shall be returned to 72 32 the delivery service provider filing the confidential record 72 33 within sixty days after the contract or agreement is filed. 72 34 j. The board shall adopt rules excluding from the filing 72 35 requirements of paragraphs "f", "g", and "h", the filing of a 73 1 contract or agreement for a transaction with an affiliate 73 2 where the amount of consideration involved does not exceed a 73 3 threshold level of annual distribution and transmission 73 4 revenues of the delivery service provider. The initial rules 73 5 to be adopted pursuant to this paragraph shall be proposed by 73 6 March 1, 2001. 73 7 k. In a proceeding involving the rates, charges, or 73 8 practices of a delivery service provider that is an electric 73 9 company, the board may exclude from rates or charges any 73 10 unreasonable payment or compensation to an affiliate made 73 11 pursuant to a contract or arrangement whether or not filed 73 12 under this subsection. For ratemaking purposes, the board may 73 13 exclude the payment of compensation to an affiliate or adjust 73 14 the revenue received from an affiliate associated with any 73 15 contract or arrangement required to be filed with the board if 73 16 the contract or arrangement is not so filed. 73 17 l. The board has the same jurisdiction over modification 73 18 of or amendment to a contract or arrangement filed under this 73 19 subsection as it has over the original contracts or 73 20 arrangements. A modification of or amendment to a contract or 73 21 arrangement shall also be filed in a time frame as determined 73 22 by the board. 73 23 m. The board shall consult with other state and federal 73 24 regulatory agencies for the purpose of eliminating duplicate 73 25 or conflicting filing requirements and may adopt rules which 73 26 provide that comparable information required to be filed with 73 27 other state or federal regulatory agencies may be accepted by 73 28 the board in lieu of information required by this subsection. 73 29 n. The board may adopt rules or issue orders which exempt 73 30 a class of contracts or arrangements from this subsection, or 73 31 waive the requirements of this subsection if the board finds 73 32 that the exemption or waiver is in the public interest. 73 33 o. The board may periodically retain a nationally or 73 34 regionally recognized independent auditing firm to conduct an 73 35 audit of the transactions between a delivery service provider 74 1 that is an electric company and its affiliates to investigate 74 2 compliance with this subsection. An affiliate transaction 74 3 audit shall not be conducted more frequently than twelve 74 4 months after the conclusion of the most recently completed 74 5 audit, unless ordered by the board for good cause after notice 74 6 and opportunity for hearing. The cost of the audit shall be 74 7 paid by the delivery service provider to the independent 74 8 auditing firm and shall be included in its regulated rates and 74 9 charges, unless otherwise ordered by the board for good cause 74 10 after providing the delivery service provider the opportunity 74 11 for a hearing. 74 12 p. A delivery service provider that is a consumer-owned 74 13 utility shall keep and render to the board upon request 74 14 delivery service records in a manner as to enable delivery 74 15 service data to reasonably be separated from affiliates' data. 74 16 This subsection shall not be construed to authorize the board 74 17 to impose rates on a consumer-owned utility. Information 74 18 rendered to the board pursuant to this paragraph and 74 19 determined by the board to be a confidential record pursuant 74 20 to section 22.7 shall be returned to the delivery service 74 21 provider rendering the confidential record within sixty days 74 22 after rendering the confidential record or at the end of the 74 23 investigation or proceeding. Except as provided in this 74 24 subsection, a consumer-owned delivery service provider shall 74 25 not directly or indirectly include in delivery service rates 74 26 or charges any costs or expenses of an affiliate engaged in 74 27 any business other than delivery service unless the affiliate 74 28 provides goods and services to the delivery service provider. 74 29 Any costs included in rates or charges shall be reasonably 74 30 necessary and appropriate for the delivery service business, 74 31 and shall be market priced and directly related to such goods 74 32 or services in a manner that avoids cross-subsidization or 74 33 unfair competitive advantage. 74 34 11. CROSS-SUBSIDIZATION PROHIBITED. A delivery service 74 35 provider that is an electric company shall not directly or 75 1 indirectly include in distribution service rates or charges 75 2 any costs or expenses attributable to the sale, lease, or 75 3 other conveyance of commercial and residential electric 75 4 appliances, interior lighting systems or fixtures, or electric 75 5 heating, ventilating, or air conditioning systems and 75 6 component parts, or the servicing, repair, or maintenance of 75 7 such equipment. Except for contracts existing as of July 1, 75 8 1996, a delivery service provider that is an electric company, 75 9 or its affiliate, shall not use the delivery service 75 10 provider's vehicles, service tools and instruments, or 75 11 employees, the costs, salaries, or benefits of which are 75 12 recoverable in regulated rates for distribution service, to do 75 13 either of the following: 75 14 a. Install, service, or repair residential or commercial 75 15 electric heating, ventilating, or air conditioning systems, or 75 16 interior lighting systems and fixtures. 75 17 b. Sell at retail electric heating, ventilating, air 75 18 conditioning, or interior lighting equipment. 75 19 For purposes of this subsection, "commercial" means a place 75 20 of business primarily used for the storage or sale, at 75 21 wholesale or retail, of goods, wares, services, or 75 22 merchandise, as well as a nonprofit institution and a business 75 23 office. This subsection shall not be construed to prohibit a 75 24 delivery service provider from using its vehicles, service 75 25 tools and instruments, and employees to market its systems, 75 26 services, and equipment or to eliminate an emergency or threat 75 27 to public safety. 75 28 12. REORGANIZATION OF DELIVERY SERVICE PROVIDERS THAT ARE 75 29 ELECTRIC COMPANIES. 75 30 a. For purposes of this subsection, "reorganization" means 75 31 any of the following: 75 32 (1) The acquisition, sale, lease, or any other 75 33 disposition, directly or indirectly, including by merger or 75 34 consolidation, of the whole or any substantial part of the 75 35 regulated delivery service assets of an electric company. 76 1 (2) Until the cessation of standard offer service under 76 2 section 476B.8, subsection 1, the sale by an electric company 76 3 to any person, or the transfer by an electric company to any 76 4 of its unregulated affiliates, of any interest in a generation 76 5 unit located in this state, the costs of which have been 76 6 included in the standard offer service rates. 76 7 (3) The purchase or other acquisition or sale or other 76 8 disposition of the controlling capital stock of any delivery 76 9 service provider that is an electric company, either directly 76 10 or indirectly. 76 11 b. A reorganization shall not take place unless the board 76 12 approves. Prior to reorganization, an applicant shall file 76 13 with the board a proposal for reorganization with supporting 76 14 testimony and evidence addressing the items specified in 76 15 paragraph "d". 76 16 c. A proposal for reorganization shall be approved or 76 17 disapproved within ninety days after its filing. However, the 76 18 board may extend the time for its decision by no more than an 76 19 additional ninety-day period for good cause. The board shall 76 20 provide for notice and opportunity for hearing on the 76 21 proposal. The notice of hearing shall be provided no later 76 22 than fifty days after the proposal for reorganization has been 76 23 filed. 76 24 d. In its review of a proposal for reorganization, the 76 25 board shall consider all of the following: 76 26 (1) Whether the board will have reasonable access to 76 27 books, records, documents, and other information relating to 76 28 the delivery service provider or any affiliates with which the 76 29 delivery service provider has contracts. 76 30 (2) Whether the delivery service provider's ability to 76 31 attract capital on reasonable terms, including the maintenance 76 32 of a reasonable capital structure, is impaired. 76 33 (3) Whether the ability of the delivery service provider 76 34 to provide safe, reasonable, and adequate delivery service is 76 35 impaired. 77 1 (4) Whether users of the delivery service are 77 2 detrimentally affected. 77 3 (5) Whether the public interest is detrimentally affected, 77 4 including, but not limited to, whether the proposed 77 5 reorganization is likely to have a significant adverse effect 77 6 on competition in this state. 77 7 (6) Whether the delivery service provider has shown that 77 8 it will maintain within the state those administrative, 77 9 technical, and operating personnel necessary for the provision 77 10 of reasonably safe, reliable, and prompt delivery services and 77 11 facilities, and that such personnel shall be strategically 77 12 located by the delivery service provider to ensure that end- 77 13 use consumers receive safe, reliable, and prompt service. 77 14 e. The board may adopt rules or issue orders which exempt 77 15 a class of reorganization from this subsection if the board 77 16 finds, with respect to the class of reorganization, that 77 17 review is not necessary in the public interest. The board may 77 18 waive any or all of the requirements of this subsection, if 77 19 the board finds that board review is not necessary in the 77 20 public interest. 77 21 f. In approving any proposed reorganization pursuant to 77 22 this subsection, the board may impose such terms, conditions, 77 23 or requirements as in its judgment are necessary to protect 77 24 the financial and operational integrity of the delivery 77 25 service provider. 77 26 13. JOINT ADVERTISING PROHIBITED. 77 27 a. No later than May 1, 2002, a delivery service provider 77 28 that is an electric company shall use a name that is distinct 77 29 from any affiliated competitive electric service provider. An 77 30 affiliated competitive electric service provider may use any 77 31 name and logo of its choosing, including that of the incumbent 77 32 provider or parent company. The board shall determine whether 77 33 the name of the delivery service provider is distinct from any 77 34 affiliated competitive electric service provider. Except as 77 35 provided in rules adopted by the board, the delivery service 78 1 provider shall not identify its affiliation with a competitive 78 2 electric service provider or the parent of a competitive 78 3 electric service provider either through a tag line or other 78 4 means, except that a common logo may be used. 78 5 b. A delivery service provider or a control area operator 78 6 of an electric company shall neither jointly advertise nor 78 7 jointly market its services or products with an affiliated 78 8 competitive electric service provider. However, this 78 9 subsection does not preclude a delivery service provider from 78 10 having joint meetings and contacts with end-use consumers and 78 11 competitive electric service providers, including affiliated 78 12 competitive electric service providers, for legitimate 78 13 business purposes. The board shall adopt rules regarding such 78 14 meetings and purposes. The initial rules shall be proposed by 78 15 October 1, 2000. 78 16 Sec. 10. NEW SECTION. 476B.10 RESPONSIBILITIES AND 78 17 RIGHTS OF COMPETITIVE ELECTRIC SERVICE PROVIDERS. 78 18 1. GENERAL. The responsibilities and rights of a licensed 78 19 competitive electric service provider include those specified 78 20 in this section and elsewhere in this chapter. 78 21 2. RESPONSIBILITIES AND RIGHTS. 78 22 a. A competitive electric service provider may do any of 78 23 the following: 78 24 (1) To the extent permitted by its license, offer and 78 25 enter into contracts to provide competitive electric services 78 26 to end-use consumers. 78 27 (2) Purchase delivery services from a delivery service 78 28 provider that is an electric company to sell to end-use 78 29 consumers, subject to this chapter and any applicable delivery 78 30 service tariffs and board rules. 78 31 (3) Purchase delivery services from a delivery service 78 32 provider that is a consumer-owned utility at the discretion of 78 33 the consumer-owned utility and subject to the terms and 78 34 conditions of the consumer-owned utility. 78 35 (4) Consistent with the rules adopted pursuant to section 79 1 476B.6, subsection 4, require a money deposit from an end-use 79 2 consumer as a condition of service, with any deposit so 79 3 required becoming part of the contract between the end-use 79 4 consumer and the competitive electric service provider. 79 5 (5) Bill for services in accordance with section 476B.12. 79 6 (6) With the agreement of an end-use consumer, install, 79 7 own, maintain, and read a meter in accordance with section 79 8 476B.11. 79 9 b. A competitive electric service provider shall do all of 79 10 the following: 79 11 (1) Comply with all applicable environmental, safety, and 79 12 service standards. 79 13 (2) Be able to demonstrate the truth of any claim that it 79 14 makes to end-use consumers regarding types of fuel used to 79 15 produce energy. 79 16 (3) Pay a delivery service provider for services provided 79 17 and charges assessed to a competitive electric service 79 18 provider or to an end-use consumer for whom the competitive 79 19 electric service provider has agreed to assume payment 79 20 responsibility, without regard to whether the competitive 79 21 electric service provider receives payment from the end-use 79 22 consumer. 79 23 (4) Pay a delivery service provider for services provided 79 24 to an end-use consumer and charges assessed to an end-use 79 25 consumer for which the delivery service provider has 79 26 authorized the competitive electric service provider to bill 79 27 and collect, without regard to whether the competitive 79 28 electric service provider receives payment from the end-use 79 29 consumer. 79 30 (5) If requested, provide to each delivery service 79 31 provider, schedules and schedule changes submitted for 79 32 deliveries to the delivery service provider at the same time 79 33 that they are submitted to the control area operator. 79 34 (6) If operating generating facilities in Iowa or offering 79 35 metering installation, meter maintenance, or meter reading 80 1 services within Iowa, perform these activities in a prompt, 80 2 safe, and reliable manner; maintain within the state those 80 3 administrative, technical, and operating personnel necessary 80 4 for the provision of reasonably safe, reliable, and prompt 80 5 generation and metering services and facilities; and 80 6 demonstrate that personnel involved in installing, operating, 80 7 and maintaining generating facilities or electric meters and 80 8 metering equipment have the requisite skills, knowledge, 80 9 experience, and training to perform those work functions 80 10 necessary to provide high-quality, safe, reliable, and prompt 80 11 services. Such demonstration may include a showing that 80 12 applicable personnel have completed an accredited or 80 13 recognized apprenticeship training program for the particular 80 14 skill, trade, or craft. This subparagraph shall only apply to 80 15 a competitive electric service provider that is a consumer- 80 16 owner utility to the extent that it provides competitive 80 17 electric service outside its assigned service area. 80 18 c. A competitive electric service provider shall not be 80 19 required to provide individual end-use consumer information, 80 20 including metering information, to other competitive electric 80 21 service providers. 80 22 d. This chapter is not intended to affect the activities 80 23 of a licensed competitive electric service provider in the 80 24 provision of goods and services other than the sale of 80 25 competitive electric services at retail in this state. 80 26 e. The board shall not regulate the rates or charges of 80 27 competitive electric services of or a competitive electric 80 28 service provider with the exception of the rates or charges 80 29 for standard offer service under section 476B.8, subsection 1. 80 30 Sec. 11. NEW SECTION. 476B.11 METERING AND METER 80 31 INFORMATION. 80 32 1. An existing meter owned by an incumbent provider shall 80 33 remain the property of the delivery service provider. 80 34 2. A delivery service provider shall install, own, and 80 35 maintain metering as deemed necessary by the delivery service 81 1 provider. However, this chapter shall not be construed to 81 2 require a delivery service provider to provide, install, own, 81 3 or maintain meters that are not necessary for the purpose of 81 4 providing delivery service. 81 5 3. A delivery service provider or a control area operator 81 6 shall not require interval metering as a condition for 81 7 residential end-use consumers and nonresidential end-use 81 8 consumers using fewer than twenty-five thousand kilowatt-hours 81 9 annually to exercise the option to choose competitive 81 10 services. 81 11 4. A meter owned by the delivery service provider shall be 81 12 installed by that delivery service provider regardless of the 81 13 location of the meter. 81 14 5. An end-use consumer may install metering not owned by 81 15 the delivery service provider on the consumer's side of the 81 16 main disconnect, subject to the reasonable connection 81 17 requirements of the delivery service provider and the rules of 81 18 the board. The end-use consumer is subject to the board's 81 19 rules regarding standards, installation, maintenance, and 81 20 testing of meters used for billing if the end-use consumer 81 21 chooses to own the meter. The delivery service provider may 81 22 disconnect electric service at such meter subject to board 81 23 rules. 81 24 6. An end-use consumer or such consumer's competitive 81 25 electric service provider may request that metering and 81 26 associated hardware be installed on the electric facilities of 81 27 the delivery service provider or on the delivery service 81 28 provider's side of the main disconnect, to enable the consumer 81 29 to take advantage of competitive service offerings. The meter 81 30 and associated hardware shall comply with applicable board 81 31 rules, and the costs of the meter shall be borne by the end- 81 32 use consumer or the competitive electric service provider. 81 33 The installation of the meter and associated hardware shall be 81 34 performed by the delivery service provider in accordance with 81 35 its requirements and the rules of the board. The delivery 82 1 service provider may charge a reasonable, cost-based fee for 82 2 the installation. The delivery service provider shall have 82 3 reasonable discretion in prescribing the location and 82 4 necessary connection equipment for the installation of meters 82 5 and associated hardware under this subsection. 82 6 7. If the meter will be owned by the end-use consumer or 82 7 the competitive electric service provider and will be 82 8 installed on the end-use consumer's side of the main 82 9 disconnect, the delivery service provider may offer to, but is 82 10 not required to, install the meter. 82 11 8. The board shall adopt rules relating to installation of 82 12 meters, uniform metering standards and practices, inspection 82 13 and testing programs, accuracy requirements, data transmission 82 14 protocols, load profiling, and maintenance of meter reading 82 15 records. The board shall not preclude the use of accurate 82 16 prepaid meters by a competitive electric service provider. In 82 17 addition, the board shall require a competitive electric 82 18 service provider and an end-use consumer owning a meter to 82 19 provide meter access to the delivery service provider for 82 20 disconnections, and may require a presence for meter testing. 82 21 The initial rules shall be proposed by October 1, 2000. 82 22 9. A person is entitled to read meters that the person 82 23 owns. A delivery service provider is entitled to reasonable 82 24 access to any meters connected to the delivery service 82 25 provider's system without regard to ownership. A competitive 82 26 electric service provider is responsible for obtaining the 82 27 meter information necessary to bill such provider's end-use 82 28 consumers. With the consent of the end-use consumer, a 82 29 competitive electric service provider serving the end-use 82 30 consumer is entitled to reasonable access to read any meters 82 31 owned by the delivery service provider on the end-use 82 32 consumer's premises for this purpose. 82 33 10. A delivery service provider is not required to read 82 34 meters but, to the extent such provider does so, the delivery 82 35 service provider shall make the meter information needed for 83 1 billing available to a competitive electric service provider 83 2 serving the metered premises. A delivery service provider may 83 3 assess the competitive electric service provider a reasonable 83 4 charge for making such information available to the 83 5 competitive electric service provider. 83 6 11. To avoid unnecessary reading of an end-use consumer's 83 7 meter, a competitive electric service provider responsible for 83 8 meter information gathering shall make end-use consumer usage 83 9 information needed for billing and financial settlement 83 10 available to the delivery service provider at a charge if the 83 11 competitive electric service provider so chooses. It shall 83 12 also make necessary information available to the control area 83 13 operator serving the metered premises. 83 14 Sec. 12. NEW SECTION. 476B.12 BILLING. 83 15 1. Subject to subsections 3 and 4, a delivery service 83 16 provider and a control area operator may bill an end-use 83 17 consumer and a competitive electric service provider for the 83 18 services each provides. A delivery service provider or a 83 19 control area operator shall not be required to bill for 83 20 services provided by a competitive electric service provider 83 21 except as provided in subsection 3, but either may do so at 83 22 its option for a cost-based charge. 83 23 2. A competitive electric service provider may bill an 83 24 end-use consumer for services it provides, subject to section 83 25 476B.6, subsection 2, and other applicable provisions of this 83 26 chapter and board rules. 83 27 3. An end-use consumer receiving delivery service from an 83 28 electric company is entitled to request a single consolidated 83 29 bill for competitive electric services, delivery services, and 83 30 control area services. Unless otherwise agreed by the 83 31 affected service providers, such consolidated billing is the 83 32 responsibility of the competitive electric service provider 83 33 selling competitive billing services. 83 34 4. An end-use consumer receiving delivery service from a 83 35 consumer-owned utility shall receive a bill from the consumer- 84 1 owned utility for services rendered and a bill from the 84 2 competitive electric service provider for competitive electric 84 3 services, unless otherwise agreed to by the affected service 84 4 providers. Any consolidated billing for an end-use consumer 84 5 receiving delivery service from a consumer-owned utility shall 84 6 be the responsibility of the consumer-owned utility, unless 84 7 otherwise agreed to by the consumer-owned utility and affected 84 8 competitive electric service providers. If a delivery service 84 9 provider that is a consumer-owned utility provides all billing 84 10 services for its associated licensed competitive electric 84 11 service provider function within its assigned service area, 84 12 such consumer-owned utility shall provide comparable service 84 13 within its assigned service area for all other competitive 84 14 electric service providers. 84 15 5. Not later than March 1, 2000, the board shall propose 84 16 rules related to billing services consistent with this 84 17 chapter. Except as provided in this chapter, the board shall 84 18 not restrict a delivery service provider or a control area 84 19 operator from contracting with a competitive electric service 84 20 provider to provide or receive billing services. 84 21 Sec. 13. NEW SECTION. 476B.13 SYSTEM BENEFIT PROGRAMS. 84 22 1. LOW-INCOME AFFORDABILITY AND ENERGY EFFICIENCY 84 23 PROGRAMS. 84 24 a. PURPOSE. For purposes of this subsection, "division" 84 25 means the division of community action agencies within the 84 26 department of human rights or its successor. A low-income 84 27 affordability program and a low-income energy efficiency 84 28 program are created to be administered by the division. The 84 29 purpose of the low-income affordability program is to 84 30 encourage the competitive market to serve the electric needs 84 31 of low-income, end-use consumers. The purpose of the low- 84 32 income energy efficiency program is to reduce the consumption 84 33 of electricity by low-income, end-use consumers through energy 84 34 efficiency improvements. 84 35 b. APPORTIONMENT. Low-income affordability and low-income 85 1 energy efficiency assistance shall be distributed statewide. 85 2 However, an electric company or consumer-owned utility shall 85 3 not receive in the first two years of the program an 85 4 apportionment of funding that is less than eighty percent of 85 5 the total amount of funding paid by end-use consumers in such 85 6 company's or utility's assigned service area under this 85 7 subsection, as determined by the division. Commencing in the 85 8 third year of the program and biannually after that year, if 85 9 the apportionment of funding to low-income, end-use consumers 85 10 in an assigned service area would be less than eighty percent 85 11 of the funds collected pursuant to paragraph "f" in that 85 12 assigned service area, the division shall return or direct the 85 13 return of the difference between the amount apportioned and 85 14 eighty percent of the amount collected to the appropriate 85 15 delivery service provider. The delivery service provider 85 16 shall return to end-use consumers in its assigned service area 85 17 the above amount in a manner that reflects the proportion of 85 18 collections. The board shall approve the mechanism for return 85 19 for electric companies. Consumer-owned utilities shall 85 20 determine the return mechanism. 85 21 c. ELIGIBILITY. Eligibility for the low-income 85 22 affordability and low-income energy efficiency programs shall 85 23 be determined as follows: 85 24 (1) A residential end-use consumer with a household income 85 25 at or below one hundred fifty percent of the federal poverty 85 26 level, as determined annually by the United States department 85 27 of health and human services, is eligible to receive low- 85 28 income affordability assistance. 85 29 (2) A residential end-use consumer with a household income 85 30 at or below one hundred fifty percent of the federal poverty 85 31 level, as determined annually by the United States department 85 32 of health and human services, is eligible to receive low- 85 33 income energy efficiency program assistance, regardless of 85 34 their eligibility to receive low-income affordability 85 35 assistance. 86 1 d. LOW-INCOME AFFORDABILITY PROGRAM. The community action 86 2 agencies shall qualify a consumer for participation in the 86 3 low-income affordability program and shall notify a person 86 4 billing the end-use consumer of the consumer's monthly fixed 86 5 credit and the duration for which the monthly fixed credit is 86 6 authorized. The monthly fixed credit is the amount necessary 86 7 to reduce the consumer's total electric bill to an affordable 86 8 percentage of income in accordance with rules adopted by the 86 9 division. The affordable percentage of income shall be tiered 86 10 to reflect the ratio of the consumer's household income to the 86 11 federal poverty level, with greater assistance provided to 86 12 those at lower poverty levels, as determined by rules of the 86 13 division. 86 14 Program benefits shall be distributed as a monthly fixed 86 15 credit applied toward a consumer's delivery service bill for 86 16 provision of electricity. A person billing an end-use 86 17 consumer shall subtract the amount of the credit from the 86 18 amount of the consumer's bill each month, or an equivalent 86 19 amount if a different billing cycle is utilized. If the 86 20 monthly fixed credit exceeds the portion of the bill related 86 21 to delivery service, the excess shall be applied toward the 86 22 cost of the consumer's competitive power supply services. A 86 23 person billing the end-use consumer shall bill the appropriate 86 24 community action agency for the sum of the total amount of 86 25 fixed credits provided to the consumer and the division shall 86 26 timely reimburse the person for all credited amounts. Only 86 27 those credits that are authorized in accordance with this 86 28 subsection shall be reimbursed. 86 29 e. LOW-INCOME ENERGY EFFICIENCY PROGRAM. Energy 86 30 efficiency assistance shall be prioritized based on the end- 86 31 use consumers with the largest kilowatt-hours of annual use. 86 32 Moneys allocated to the low-income energy efficiency program 86 33 may be used for space heating as allowed pursuant to the 86 34 federal weatherization assistance program or nonspace heating 86 35 as determined by the division as necessary and appropriate to 87 1 provide maximum comprehensive cost-effective energy efficiency 87 2 treatment to low-income households. 87 3 f. FUNDING. For the first three years the low-income 87 4 affordability program and the low-income energy efficiency 87 5 program are in effect, funds for the programs shall be 87 6 provided by all end-use consumers through a nonbypassable 87 7 surcharge on distribution service to be collected by the 87 8 person billing the end-use consumer for such distribution 87 9 service. The monthly charge shall commence with bills issued 87 10 on February 1, 2002, and shall be as follows: 87 11 (1) Seventy cents for all residential electric accounts. 87 12 (2) Seventy cents for nonresidential electric accounts 87 13 with an annual usage of less than twenty-five thousand 87 14 kilowatt-hours in the prior calendar year. 87 15 (3) Two dollars and fifty cents for nonresidential 87 16 electric accounts with an annual usage of twenty-five thousand 87 17 kilowatt-hours to one hundred thousand kilowatt-hours in the 87 18 prior calendar year. 87 19 (4) Ten dollars for nonresidential electric accounts with 87 20 annual usage of more than one hundred thousand kilowatt-hours 87 21 to four hundred thousand kilowatt-hours in the prior calendar 87 22 year. 87 23 (5) Forty dollars for nonresidential electric accounts 87 24 with annual usage of more than four hundred thousand kilowatt- 87 25 hours to one million five hundred thousand kilowatt-hours in 87 26 the prior calendar year. 87 27 (6) One hundred fifty dollars for nonresidential electric 87 28 accounts with annual usage of more than one million five 87 29 hundred thousand kilowatt-hours to six million kilowatt-hours 87 30 in the prior calendar year. 87 31 (7) Six hundred dollars for nonresidential electric 87 32 accounts with annual usage of more than six million kilowatt- 87 33 hours in the prior calendar year. 87 34 For the purpose of determining the monthly charge, the term 87 35 "accounts" may be interpreted by the board in appropriate 88 1 circumstances to mean end-use consumers. During the second 88 2 and third twelve-month periods that the program is in effect, 88 3 the monthly charges shall be adjusted as necessary to yield no 88 4 less than twenty-three million dollars annually. For 88 5 nonresidential consumers with no prior calendar-year usage the 88 6 delivery service provider may use a reasonable estimate of the 88 7 consumer's usage. 88 8 All moneys collected pursuant to this subsection shall be 88 9 remitted to the treasurer of state. The treasurer shall make 88 10 disbursements from this fund as appropriate. The unencumbered 88 11 or unobligated moneys remaining at the end of any fiscal year 88 12 from the appropriations made in this subsection shall not 88 13 revert but shall be available for expenditure during 88 14 subsequent fiscal years until expended for the purposes for 88 15 which originally appropriated. Interest or earnings on 88 16 investments or time deposits of the moneys remitted under this 88 17 section shall be retained for the purposes designated in this 88 18 section. 88 19 After the third year of the program, the board shall 88 20 annually establish levels of charges on electric accounts 88 21 based on the total program budget developed by the division. 88 22 When determining the per account charge, the board shall not 88 23 substantially deviate from the cost allocation among consumer 88 24 groups reflected in the initial funding charges. Any increase 88 25 in monthly charges as provided in this paragraph shall not go 88 26 into effect without prior approval by joint resolution as 88 27 adopted by the general assembly. 88 28 g. PROGRAM ALLOCATIONS, ADMINISTRATION, AND BUDGETS. 88 29 (1) Amounts allocated to the low-income affordability 88 30 program shall be based on participation rates from prior years 88 31 and the level of credits necessary to maintain affordable 88 32 energy burdens. Low-income energy efficiency program 88 33 allocations shall be based on the level of funding necessary 88 34 to deliver adequate energy efficiency to participating 88 35 households, as determined by the weatherization assistance 89 1 program. The level of funding allocated for the low-income 89 2 energy efficiency program shall not exceed twenty percent of 89 3 total low-income affordability program funding. The level of 89 4 funding allocated for administration shall not exceed ten 89 5 percent of the amounts allocated for the sum of the low-income 89 6 affordability program and the low-income energy efficiency 89 7 program. 89 8 (2) The division shall administer the program. 89 9 Administration of the program shall include contracting with 89 10 community action agencies, enrolling low-income, end-use 89 11 consumers in the program, providing outreach and consumer 89 12 education, notifying consumers and answering consumer 89 13 inquiries, and keeping records relating to the numbers of 89 14 program participants and program expenditures. 89 15 (3) The division shall develop a budget for the low-income 89 16 affordability program and the low-income energy efficiency 89 17 program on an annual basis. 89 18 h. IMPLEMENTATION PLAN. Within ninety days after the 89 19 effective date of this chapter, the division shall convene an 89 20 initial meeting of persons interested in participating in the 89 21 development of an implementation plan. Additional meetings 89 22 shall be scheduled by the division as necessary. The plan, at 89 23 a minimum, shall include the requirements identified in this 89 24 subsection. 89 25 i. DELIVERY SERVICE PROVIDER REPORT. A delivery service 89 26 provider shall report to the board annually the number of end- 89 27 use consumer accounts in its assigned service area eligible 89 28 for each program under paragraph "c". 89 29 j. BOARD RULES. The board shall propose rules by October 89 30 1, 2000, applicable to a delivery service provider and 89 31 competitive electric service provider concerning the 89 32 collection of funds pursuant to paragraph "f". 89 33 k. EVALUATION AND PLAN. Every other year, the division, 89 34 in consultation with the board, shall evaluate the performance 89 35 and effectiveness of the low-income affordability program 90 1 through use of an independent third party and develop a low- 90 2 income needs and resources plan for the state which shall 90 3 include a statewide assessment of the need for low-income 90 4 affordability assistance and low-income energy efficiency 90 5 assistance; an identification of the public and private 90 6 resources available to meet the identified needs; and 90 7 recommendations on how to coordinate the available resources 90 8 to most effectively address the identified needs, taking into 90 9 account the difference between short-term and long-term 90 10 effectiveness. 90 11 Upon completion, the evaluation and the plan shall be 90 12 submitted to the general assembly. 90 13 2. CONTRIBUTION FUND. 90 14 a. A delivery service provider and a licensed competitive 90 15 electric service provider may establish a fund whose purposes 90 16 shall include receiving contributions to assist consumers with 90 17 weatherization measures to improve energy efficiency related 90 18 to winter heating and summer cooling and to supplement other 90 19 energy assistance sources for the payment of electric bills. 90 20 b. The delivery service provider or competitive electric 90 21 service provider establishing the fund may be reimbursed by 90 22 the fund for the reasonable administrative costs of the 90 23 billings, disbursements, notices to potential contributors, 90 24 and financial recordkeeping. However, such reimbursement 90 25 shall not exceed five percent of the total contributions 90 26 collected. 90 27 3. ENVIRONMENTAL ASSESSMENT. 90 28 a. On and after May 1, 2002, the board shall direct all 90 29 delivery service providers with an assigned service area to 90 30 collect from each end-use consumer in the assigned service 90 31 area, directly or through the competitive electric service 90 32 provider billing the end-use consumer, the following 90 33 nonbypassable monthly charge, with the proceeds to be remitted 90 34 to the treasurer of state as follows: 90 35 (1) Six cents for all residential electric accounts. 91 1 (2) Six cents for a nonresidential electric account with 91 2 an annual usage of less than twenty-five thousand kilowatt- 91 3 hours in the prior calendar year. 91 4 (3) Twenty cents for a nonresidential electric account 91 5 with an annual usage of twenty-five thousand kilowatt-hours to 91 6 one hundred thousand kilowatt-hours in the prior calendar 91 7 year. 91 8 (4) Eighty cents for a nonresidential electric account 91 9 with annual usage of more than one hundred thousand kilowatt- 91 10 hours to four hundred thousand kilowatt-hours in the prior 91 11 calendar year. 91 12 (5) Three dollars and twenty cents for a nonresidential 91 13 electric account with annual usage of more than four hundred 91 14 thousand kilowatt-hours to one million five hundred thousand 91 15 kilowatt-hours in the prior calendar year. 91 16 (6) Twelve dollars for a nonresidential electric account 91 17 with annual usage of more than one million five hundred 91 18 thousand kilowatt-hours to six million kilowatt-hours in the 91 19 prior calendar year. 91 20 (7) Forty-eight dollars for a nonresidential electric 91 21 account with annual usage of more than six million kilowatt- 91 22 hours in the prior calendar year. 91 23 For the purpose of determining the monthly charge, the term 91 24 "accounts" may be interpreted by the board in appropriate 91 25 circumstances to mean end-use consumers. The board shall, by 91 26 rule, provide a schedule for remittances. The initial rules 91 27 shall be proposed by March 1, 2001. The board shall allow 91 28 inclusion of the remittance amounts in unbundled distribution 91 29 service rates. Eighty-five percent of the remittances 91 30 collected pursuant to this subsection is appropriated to the 91 31 Iowa energy center created in section 266.39C. Fifteen 91 32 percent of the remittances collected pursuant to this 91 33 subsection is appropriated to the center for global and 91 34 regional environmental research established by the state board 91 35 of regents. 92 1 Notwithstanding section 8.33, any unexpended moneys 92 2 remitted to the treasurer of state under this subsection shall 92 3 not revert and shall be retained by the centers for the 92 4 purposes designated. Notwithstanding section 12C.7, 92 5 subsection 2, interest or earnings on investments or time 92 6 deposits of the moneys remitted under this subsection shall be 92 7 retained and used for the purposes designated. 92 8 The Iowa energy center and the center for global and 92 9 regional environmental research shall each provide a written 92 10 annual report to the board which describes each center's 92 11 activities and the results that each center has accomplished. 92 12 Each report shall include an explanation of initiatives and 92 13 projects of importance to the state. 92 14 4. ENERGY EFFICIENCY PROGRAMS. This chapter shall not be 92 15 interpreted to preclude a delivery service provider from 92 16 offering energy efficiency programs and tree planting 92 17 programs. Such tree planting programs need not be cost 92 18 effective. 92 19 Sec. 14. NEW SECTION. 476B.14 COMPLAINTS. 92 20 1. A competitive electric service provider, a delivery 92 21 service provider, and a control area operator shall develop 92 22 and post on the board's website the procedures for filing and 92 23 resolving complaints regarding their services and operations. 92 24 2. The board is authorized to hear all complaints subject 92 25 to its jurisdiction by and against an end-use consumer, a 92 26 competitive electric service provider, a delivery service 92 27 provider, and a control area operator. This subsection does 92 28 not confer exclusive jurisdiction in collection matters upon 92 29 the board. 92 30 3. The district court has original jurisdiction concerning 92 31 disputes with respect to all rates and charges of a consumer- 92 32 owned utility and all other matters concerning a consumer- 92 33 owned utility not specifically reserved to the board by this 92 34 chapter or another statute. A complaint shall be filed in the 92 35 district court for the county in which the complainant resides 93 1 or, if the complainant is a nonresident, in the district court 93 2 for Polk county. 93 3 4. The board shall render a decision upon a complaint as 93 4 soon as practicable. A person aggrieved by the board's 93 5 decision may seek judicial review pursuant to chapter 17A. 93 6 5. A delivery service provider or a competitive electric 93 7 service provider shall not take any detrimental action against 93 8 an employee of such provider for the filing of a good faith 93 9 complaint with the board. 93 10 Sec. 15. NEW SECTION. 476B.15 TRANSITION CHARGES. 93 11 1. COSTS OF GENERATION AND CONTRACTS FOR POWER AND ENERGY. 93 12 An electric company is entitled, but not required, to 93 13 implement transition charges under this subsection. If an 93 14 electric company elects to implement transition charges, such 93 15 charges shall be nonbypassable charges collected from each 93 16 end-use consumer within the incumbent provider's assigned 93 17 service area. However, transition charges shall not increase 93 18 the rates for electric service provided under section 476B.8. 93 19 Transition charges under this subsection shall be billed by an 93 20 electric company to end-use consumers, directly or through a 93 21 competitive electric service provider, commencing with service 93 22 rendered on May 1, 2002, and concluding with service rendered 93 23 on and including December 31, 2005. 93 24 Transition charges shall be calculated for each bundled 93 25 retail rate group or code existing on the date the electric 93 26 company files its unbundled rates pursuant to section 476B.4. 93 27 Transition charges shall be calculated each year in which the 93 28 electric company is entitled to implement such charges. 93 29 Transition charges in cents per kilowatt-hour shall be 93 30 calculated by rate group or code by first subtracting the 93 31 market price from the cost of generation, and then multiplying 93 32 that result times a mitigation factor, the percentage of which 93 33 varies by calendar year as follows: 93 34 a. Eighty percent applicable to 2002. 93 35 b. Seventy percent applicable to 2003. 94 1 c. Sixty percent applicable to 2004. 94 2 d. Fifty percent applicable to 2005. 94 3 Under no circumstance shall a charge under this subsection 94 4 be less than zero. 94 5 For purposes of this subsection, the cost of generation 94 6 shall be stated in cents per kilowatt-hour included in a 94 7 bundled rate group or code on the effective date of this 94 8 chapter. The cost of generation shall include the return on 94 9 plant investment allowed in the most recent rate proceeding, 94 10 but shall exclude that portion of regulatory assets to be 94 11 recovered under subsection 3 that are attributable to 94 12 generation costs, and the amount of nuclear decommissioning 94 13 expenses included in the rate group or code. 94 14 For purposes of this subsection, the market price shall be 94 15 stated in cents per kilowatt-hour an electric company should 94 16 reasonably be expected to receive for demand and energy from a 94 17 rate group or code when sold in a competitive power market. 94 18 At a minimum, separate values shall be determined by the board 94 19 for firm and interruptible sales. The market price shall be 94 20 determined by the board by no later than January 1, 2002, and 94 21 shall be updated annually. In determining the market price, 94 22 the board shall consider relevant wholesale and retail 94 23 contracts for demand and energy sales and purchases, 94 24 recognizing such factors as the time differentiation of price 94 25 levels in the contracts and whether the prices in the 94 26 contracts are for firm or interruptible service. The board 94 27 shall also consider other relevant information from power 94 28 exchanges, trading hubs, and similar sources. 94 29 An electric company that elects to implement transition 94 30 charges under this subsection shall file tariffs with the 94 31 board that identify the cost of generation to be included in 94 32 the calculation of transition charges to be paid by end-use 94 33 consumers in each bundled rate group or code at the time it 94 34 files its initial unbundled rates under section 476B.4. Rate 94 35 groups or codes, for purposes of calculating transition 95 1 charges, shall be defined in tariffs included in the electric 95 2 company's filing under section 476B.4, subsection 1. The 95 3 board shall issue its decision regarding the transition charge 95 4 tariffs at the same time it issues its order regarding the 95 5 initial unbundled rates filed under section 476B.4. Charges 95 6 approved by the board shall be posted on its website starting 95 7 no later than November 1, 2001. 95 8 2. DIVESTITURE OPTION. The board may permit, but shall 95 9 not require, an incumbent provider that is an electric company 95 10 to divest itself of its generation assets and contracts for 95 11 power and energy. 95 12 No later than January 1, 2000, an incumbent provider, 95 13 including, for the purposes of this subsection, any affiliated 95 14 incumbent provider, may submit an election to divest to the 95 15 board. The election shall be accompanied by the submittal of 95 16 a divestiture plan to the board, which shall review the plan. 95 17 By July 1, 2000, the board shall issue an order approving or 95 18 modifying the plan. The incumbent provider may revoke its 95 19 election within ninety days of the board's order approving or 95 20 modifying the plan. If the incumbent provider does not revoke 95 21 its election, the incumbent provider shall divest its 95 22 generation assets and contracts for power and energy in 95 23 accordance with the board's order. Such divestiture must be 95 24 completed by December 31, 2001, unless such time is extended 95 25 for good cause as determined by the board. 95 26 If an incumbent provider makes an election to divest, the 95 27 incumbent provider shall divest of all generation assets and 95 28 contracts for power and energy that are included in the 95 29 incumbent provider's most recent board-determined Iowa revenue 95 30 requirement except to the extent such divestiture is found by 95 31 a court of proper jurisdiction to be impermissible. All 95 32 generation assets and contracts for power and energy not 95 33 included in the incumbent provider's most recent board- 95 34 determined Iowa revenue requirement shall be subject to a 95 35 determination by the board as to whether divestiture is in the 96 1 public interest, except to the extent such divestiture is 96 2 found by a court of proper jurisdiction to be impermissible. 96 3 The board shall not allow any supply contracts, for which 96 4 bids are sought as part of the divestiture plan to satisfy an 96 5 incumbent provider's standard offer service obligation 96 6 pursuant to section 476B.8, to extend beyond December 31, 96 7 2005. 96 8 The board may allow the divestiture plan to include 96 9 transfer of the decommissioning responsibility for any nuclear 96 10 generation asset to the purchaser if such transfer of 96 11 responsibility is deemed by the board to be in the public 96 12 interest. 96 13 For each incumbent provider electing divestiture under this 96 14 subsection, the board shall determine the sum of the following 96 15 amounts: 96 16 a. The net of an incumbent provider's generation-related 96 17 regulatory assets and liabilities. 96 18 b. The difference between net plant investment associated 96 19 with an incumbent provider's generation assets and the market 96 20 value of the generation assets. 96 21 c. The difference between future contract payments and the 96 22 market value of an incumbent provider's purchased power 96 23 contracts. 96 24 When determining the market value of generation assets and 96 25 existing purchase power contracts, the board shall rely solely 96 26 on the market information resulting from the sale of the 96 27 generation assets and the rights to energy and demand under 96 28 contracts held by the incumbent provider including the supply 96 29 contracts to meet the incumbent provider's standard offer 96 30 service obligation. 96 31 To the extent that the divestiture realizes an amount less 96 32 than the sum of the amounts determined in paragraphs "a", "b", 96 33 and "c," beginning no later than May 1, 2002, the board shall 96 34 provide an incumbent provider a reasonable opportunity to 96 35 recover all costs not recovered through the sale of generation 97 1 assets and the contracts for energy and demand through 97 2 nonbypassable charges. This cost recovery opportunity must be 97 3 equal to the incumbent provider's opportunity to recover costs 97 4 before the effective date of this chapter. 97 5 To the extent that the divestiture realizes an amount 97 6 greater than the sum of the amounts determined in paragraphs 97 7 "a", "b", and "c", such difference shall be applied to reduce 97 8 end-use consumers' responsibility for nuclear decommissioning 97 9 costs held by the incumbent provider after divestiture. To 97 10 the extent that the divestiture realizes an amount greater 97 11 than the sum of the amounts determined in paragraphs "a", "b", 97 12 and "c", and no responsibility for nuclear decommissioning 97 13 costs remains with the incumbent provider, the incumbent 97 14 provider shall be entitled to retain the remaining amounts. 97 15 Nothing in this chapter shall be construed to give an 97 16 incumbent provider a greater or lesser opportunity to recover 97 17 all costs than existed prior to the effective date of this 97 18 chapter. 97 19 This subsection, including the treatment of proceeds from 97 20 divestiture, shall not be construed to apply to any other 97 21 provision of this chapter or to any regulatory or legal 97 22 proceeding not pertaining to this specific subsection. 97 23 All costs that are afforded recovery as a result of 97 24 generation asset divestiture pursuant to this subsection shall 97 25 qualify for securitization as set forth in section 476B.17. 97 26 All savings from this securitization shall flow back to end- 97 27 use consumers through a reduction in the nonbypassable charge 97 28 required under this subsection. 97 29 3. REGULATORY ASSETS AND LIABILITIES. 97 30 a. Regulatory assets and regulatory liabilities exist 97 31 because regulators have allowed recovery of certain costs in 97 32 different time periods than normally recognized under 97 33 generally accepted accounting principles, with assurances to 97 34 an incumbent provider that is an electric company of ultimate 97 35 recovery. An incumbent provider that is an electric company 98 1 shall be permitted, but not required, to recover all of its 98 2 net regulatory assets attributable to electric operations in 98 3 this state. For purposes of this subsection, net regulatory 98 4 assets equals regulatory assets less regulatory liabilities. 98 5 For the purpose of this paragraph, regulatory assets shall 98 6 include but not be limited to the costs of programs offered 98 7 under section 476.6, subsections 17 and 19, and the costs of 98 8 contracts or arrangements entered into under section 476.43. 98 9 b. Recovery of net regulatory assets shall be accomplished 98 10 through charges on all delivery services within the electric 98 11 company's assigned service area, including electricity 98 12 delivered under rates or charges charged pursuant to section 98 13 476B.8. The rates or charges may vary by type of delivery 98 14 service to the extent such variation is just, reasonable, and 98 15 based upon relevant cost factors. The board may require that 98 16 such charges be nonbypassable. Collection of the net 98 17 regulatory asset charges shall commence on May 1, 2002. 98 18 c. An electric company electing to recover net regulatory 98 19 assets shall annually file with the board its estimates of the 98 20 unamortized amount of regulatory assets and liabilities. The 98 21 initial estimates shall be filed with the initial unbundled 98 22 rate filing pursuant to section 476B.4, followed by annual 98 23 filings until the amortization of these net assets is 98 24 completed. Such filing shall include a proposed amortization 98 25 period or periods over which the net assets are to be 98 26 recovered, estimated sales in kilowatt-hours in its assigned 98 27 service area during the first year of the proposed 98 28 amortization period, and any proposed variation in charges by 98 29 type of delivery service. The electric company shall also 98 30 file supporting documentation for its proposals. If it does 98 31 not approve the electric company's filing, the board after 98 32 notice and opportunity for hearing shall determine the 98 33 regulatory assets and regulatory liabilities of the electric 98 34 company eligible for recovery; the appropriate periods over 98 35 which net regulatory assets shall be recovered, which shall 99 1 not exceed fifteen years; and the charges applicable to each 99 2 type of delivery service. In determining net regulatory 99 3 assets, the board shall not combine or net assets or 99 4 liabilities that would be recorded on the electric company's 99 5 books absent regulation or that would cause violation of the 99 6 normalization provisions of the Internal Revenue Code. The 99 7 board shall issue its decision regarding the regulatory asset 99 8 filing at the time it issues its order regarding the initial 99 9 unbundled rates filed under section 476B.4. Charges approved 99 10 by the board shall be posted on its website starting on 99 11 November 1, 2001. 99 12 4. START-UP COSTS OF DELIVERY SERVICE PROVIDERS. The 99 13 board shall permit a delivery service provider that is an 99 14 electric company to recover one hundred percent of its 99 15 reasonable start-up costs caused by the transition to 99 16 competition, including the reasonable costs associated with 99 17 implementing the requirements of this chapter and the board 99 18 orders issued and rules adopted pursuant to this chapter. 99 19 Start-up costs to be considered by the board shall include, 99 20 but are not limited to, costs associated with new computer 99 21 information systems, changes in computer information systems, 99 22 new and existing metering, and costs incurred pursuant to 99 23 section 476B.24. The board may require that recoverable 99 24 start-up costs be amortized over a period not to exceed ten 99 25 years. Start-up cost charges under this subsection shall not 99 26 be applicable to the rates for electric service provided under 99 27 section 476B.8. 99 28 An electric company electing to recover start-up costs 99 29 shall file estimates of the start-up costs and a tariff for 99 30 recovery of the costs with the board at the time it files its 99 31 initial unbundled rates pursuant to section 476B.4. The board 99 32 shall issue its decision regarding the start-up cost filing at 99 33 the time it issues its order regarding the initial unbundled 99 34 rate filing. Charges approved by the board shall be posted on 99 35 its website starting on November 1, 2001. Collection of 100 1 start-up cost charges shall commence on May 1, 2002. Electric 100 2 companies shall file annually with the board a reconciliation 100 3 of start-up costs actually collected versus estimated start-up 100 4 costs. The first reconciliation filing shall be made no later 100 5 than March 31, 2003, reflecting costs and revenues for the 100 6 period ending December 31, 2002. The board shall allow the 100 7 electric company to adjust its cost recovery factors to 100 8 reflect any differences, with the intent of allowing one 100 9 hundred percent recovery of reasonable costs incurred. The 100 10 board shall have ninety days to issue its decision on the 100 11 reconciliation factors. 100 12 5. CONSUMER-OWNED UTILITY TRANSITION COSTS. 100 13 a. ELECTRIC COOPERATIVES. The local governing body of an 100 14 electric cooperative shall determine the nature and amount of 100 15 transition costs which shall be paid by its respective 100 16 members. The local governing body shall have the sole 100 17 authority to determine the manner, rates, charges, terms, and 100 18 conditions of recovery. A member electric cooperative is 100 19 authorized, but not required, to collect the transition costs 100 20 through nonbypassable charges on all end-use consumers in its 100 21 assigned service area. The calculation of transition costs by 100 22 an electric cooperative shall consider the market value of 100 23 capacity and energy. The transition cost recovery shall be 100 24 reconciled periodically. 100 25 b. MUNICIPAL UTILITIES. The local governing body of a 100 26 municipal utility shall determine the nature and amount of 100 27 transition costs which shall be paid through nonbypassable 100 28 charges by the end-use consumers in its assigned service area. 100 29 The local governing body shall have the sole authority to 100 30 determine the manner, rates, charges, terms, and conditions of 100 31 recovery. Each municipal utility is authorized, but not 100 32 required, to collect the transition costs on all end-use 100 33 consumers in its assigned service area. The calculation of 100 34 transition costs by a municipal utility shall consider the 100 35 market value of capacity and energy. The transition cost 101 1 recovery shall be reconciled periodically. 101 2 Sec. 16. NEW SECTION. 476B.16 NUCLEAR DECOMMISSIONING. 101 3 1. RECOVERY OF NUCLEAR DECOMMISSIONING CHARGES. An 101 4 incumbent provider or electric cooperative, and its successors 101 5 or assigns, owning an interest in or having responsibility as 101 6 a matter of contract, statute, or energy purchase agreement 101 7 for the nuclear decommissioning costs of the Duane Arnold 101 8 energy center, Quad Cities nuclear power station, Cooper 101 9 nuclear station, or La Crosse boiling water reactor shall be 101 10 allowed to recover nuclear decommissioning costs. An electric 101 11 company shall be allowed to recover nuclear decommissioning 101 12 costs allocated to Iowa through nonbypassable charges, 101 13 including charges on service provided pursuant to section 101 14 476B.8. The tariffs of an electric company for the nuclear 101 15 decommissioning charges shall conform to subsection 2. An 101 16 electric company shall file its nuclear decommissioning 101 17 tariffs with the board as part of the filing of initial 101 18 unbundled rates under section 476B.4. The local governing 101 19 body of each consumer-owned utility shall determine the amount 101 20 of and method and timing for recovery of nuclear 101 21 decommissioning costs and shall post that information as 101 22 provided in section 476B.4. All nuclear decommissioning 101 23 tariffs of electric companies under this section and the 101 24 initial charges under such tariffs shall become effective May 101 25 1, 2002. 101 26 2. DESIGN OF NUCLEAR DECOMMISSIONING TARIFF FOR ELECTRIC 101 27 COMPANIES. The nuclear decommissioning tariffs of an 101 28 incumbent provider that is an electric company shall provide 101 29 for the nonbypassable charges to be collected from each end- 101 30 use consumer within the incumbent provider's assigned service 101 31 area and in each assigned service area in Iowa of any 101 32 affiliated incumbent provider. The decommissioning charges 101 33 shall be a surcharge upon unbundled distribution service rates 101 34 and rates charged pursuant to section 476B.8. Decommissioning 101 35 charges shall be billed to each end-use consumer, directly or 102 1 through a competitive electric service provider, commencing 102 2 with bills issued on and after May 1, 2002. The allocation of 102 3 decommissioning charges among end-use consumers shall be 102 4 subject to approval by the board. The decommissioning charges 102 5 in such tariffs shall be set at a level that will ensure the 102 6 incumbent provider recovery of its nuclear decommissioning 102 7 costs, with the objective of achieving full recovery as of the 102 8 date on which decommissioning is commenced for a unit or 102 9 units. The decommissioning charges shall be adjusted 102 10 periodically to reflect increases or decreases in the 102 11 estimated costs of decommissioning the nuclear unit or units, 102 12 irrespective of any increases or decreases in other costs or 102 13 revenues of the incumbent provider or delivery service 102 14 provider. The decommissioning charges shall cease when the 102 15 nuclear plant is fully decommissioned or the incumbent 102 16 provider no longer has a responsibility for nuclear 102 17 decommissioning costs. All revenues collected under the 102 18 tariff shall be contributed to appropriate decommissioning 102 19 trust funds to be used to decommission the nuclear unit or 102 20 units or to reduce the amounts to be charged under such 102 21 tariffs in the future. All material changes to the trust fund 102 22 agreements, including a change in the trustee, shall be filed 102 23 with the board for approval. Decommissioning charges in such 102 24 tariffs shall be considered the equivalent of "cost of 102 25 service" amounts for purposes of determining contributions 102 26 deductible by the incumbent provider pursuant to section 468A 102 27 of the Internal Revenue Code. 102 28 3. ADJUSTMENT OF CHARGES FOR ELECTRIC COMPANIES. Nuclear 102 29 decommissioning tariffs filed with the board under this 102 30 section by an electric company shall provide that no increase 102 31 in charges under the decommissioning tariffs may take effect 102 32 until approved by the board. Notice to end-use consumers and 102 33 competitive electric service providers served under delivery 102 34 service tariffs or with whom the delivery service provider has 102 35 delivery service contracts, whether or not written, shall not 103 1 be required. The board may suspend the filing and hold 103 2 hearings as provided in section 476B.9, subsection 5. 103 3 Sec. 17. NEW SECTION. 476B.17 SECURITIZATION. 103 4 1. FINDINGS. The general assembly finds and declares all 103 5 of the following: 103 6 a. Securitization is a common financing technique which 103 7 has been used by other states as an effective tool to mitigate 103 8 transition costs. 103 9 b. It is in the state's interest to allow securitization 103 10 because it will help incumbent providers manage their costs 103 11 without increasing rates paid by end-use consumers. 103 12 c. Securitization will not create obligations of the state 103 13 or any of its political subdivisions. 103 14 2. DEFINITION. For purposes of this section, "incumbent 103 15 provider" includes a delivery service provider who was an 103 16 incumbent provider prior to May 1, 2002. 103 17 3. ISSUANCE OF TRANSITIONAL FUNDING ORDERS. 103 18 a. Upon application of an incumbent provider, the board is 103 19 authorized to issue transitional funding orders to create, 103 20 establish, and grant rights in, to, and under intangible 103 21 transition property in and to any grantee, incumbent provider, 103 22 issuer, or assignee in accordance with the terms of such 103 23 application. 103 24 b. After the effective date of this chapter, an incumbent 103 25 provider may file any number of applications for transitional 103 26 funding orders. An application for a transitional funding 103 27 order shall contain the incumbent provider's detailed proposal 103 28 for all of the following: 103 29 (1) The assignment, sale, pledge, or other transfer of, or 103 30 the establishment, creation, and granting of rights in, to, or 103 31 under intangible transition property. 103 32 (2) The issuance of transitional funding instruments. 103 33 (3) The amount of transitional funding instruments to be 103 34 issued which amount shall not exceed four hundred million 103 35 dollars in the aggregate for any incumbent provider. 104 1 (4) The method for calculating the amount of instrument 104 2 funding charges to be collected. 104 3 (5) The method for allocating such instrument funding 104 4 charges among classes of responsible consumers. 104 5 (6) The time to maturity for the transitional funding 104 6 instruments. 104 7 (7) The incumbent provider's planned use of the proceeds 104 8 from the issuance. 104 9 c. After notice, the board shall hold a hearing to 104 10 determine whether the application and requested transitional 104 11 funding order are in compliance with this section. The board 104 12 shall complete its review of the application and issue its 104 13 final transitional funding order no later than ninety days 104 14 after the filing of such application. The order shall create 104 15 and establish the proposed intangible transition property and 104 16 approve the proposed sale, pledge, assignment, or other 104 17 transfer of, or the establishment, creation, and granting of 104 18 rights in, to, or under intangible transition property; the 104 19 proposed issuance of transitional funding instruments; and the 104 20 proposed imposition and collection of the corresponding 104 21 instrument funding charges. Such transitional funding order 104 22 shall be issued if the board finds that each of the following 104 23 conditions are met: 104 24 (1) The application provides that the incumbent provider 104 25 will apply all savings not to exceed two million dollars 104 26 annually, from the issuance of the transitional funding 104 27 instruments during the term of the transitional funding 104 28 instruments to reduce the funding surcharges for the low- 104 29 income programs established under section 476B.13, subsection 104 30 1. If savings exceed two million dollars annually, the 104 31 incumbent provider shall use the amounts in excess of two 104 32 million dollars to compensate the incumbent provider for 104 33 transition costs associated with generation assets and 104 34 contracts for power and energy not recovered under section 104 35 476B.15, subsection 1, and if a savings remain during the 105 1 period ending December 31, 2005, to use the remaining savings 105 2 to first reduce charges under section 476B.15, subsection 4, 105 3 and second to reduce charges under section 476B.15, subsection 105 4 3. Any remaining savings may be retained by the incumbent 105 5 provider and used for any lawful purpose. If the incumbent 105 6 provider issues transitional funding instruments prior to May 105 7 1, 2002, any savings associated with the period prior to May 105 8 1, 2002, shall be amortized in equal annual amounts in 105 9 accordance with the above purposes over the period from May 1, 105 10 2002, through the remaining term of the transitional funding 105 11 instruments. Incumbent providers choosing to divest their 105 12 generation assets under section 476B.15, subsection 2, shall 105 13 first use the savings from securitization to compensate 105 14 themselves for any losses which may result from divestiture, 105 15 with any remaining savings to be allocated to the purposes, 105 16 and in the order provided, as set forth in this subparagraph. 105 17 (2) The expected maturity date for the transitional 105 18 funding instruments, and the final date on which the incumbent 105 19 provider, grantee, or assignee is entitled to charge and 105 20 collect instrument funding charges, shall each be set to occur 105 21 no later than December 31, 2011, subject to subsection 4, 105 22 paragraph "m". 105 23 (3) The instrument funding charges authorized in such 105 24 order will be deducted and stated separately from eligible 105 25 rates, all as provided in subsection 4, paragraph "d", and in 105 26 a manner conforming to the allocation of the instrument 105 27 funding charges implemented pursuant to subparagraph (4). 105 28 (4) The proposed method for allocating such instrument 105 29 funding charges among all classes of responsible consumers is 105 30 just and reasonable. 105 31 (5) The issuance of the transitional funding instruments 105 32 will not cause eligible rates to increase over the rates which 105 33 would otherwise be chargeable from time to time in the absence 105 34 of such issuance. 105 35 (6) Use of transitional funding proceeds shall not result 106 1 in the common equity component of the incumbent provider's 106 2 capital structure, exclusive of the portion of its capital 106 3 structure that consists of obligations representing 106 4 transitional funding instruments, as measured by the most 106 5 recently available thirteen-month average when adjusted for 106 6 the use of proceeds, being reduced below the lesser of forty- 106 7 two and one-half percent or the common equity percentage as of 106 8 December 31, 1998. The incumbent provider shall not use the 106 9 proceeds from transitional funding instruments to repay or 106 10 retire obligations incurred by any affiliate of the incumbent 106 11 provider without the consent of the board. However, consent 106 12 is not required to repay or retire debt or equity securities 106 13 of the incumbent provider which are held by the parent company 106 14 of the incumbent provider. A disbursement out of retained 106 15 earnings from the incumbent provider to its parent will not be 106 16 treated as repayment or retirement of an obligation of an 106 17 affiliate for purposes of this section. 106 18 (7) The incumbent provider will use the net proceeds of 106 19 the sale and issuance of the transitional funding instruments 106 20 to repay or refinance debt and equity, or to replenish cash 106 21 used for such purposes. 106 22 d. A transitional funding order issued by the board shall 106 23 become effective in accordance with its terms only after the 106 24 incumbent provider files with the board its written consent to 106 25 all terms and conditions of such order. After the issuance of 106 26 a transitional funding order, the incumbent provider, grantee, 106 27 or assignee shall retain sole discretion regarding whether to 106 28 cause transitional funding instruments to be issued, including 106 29 the right to defer or postpone such issuance or to change the 106 30 terms of such instruments as allowed by such order. 106 31 4. TERMS AND PROVISIONS OF TRANSITIONAL FUNDING ORDERS. 106 32 a. CREATION OF INTANGIBLE TRANSITION PROPERTY. A 106 33 transitional funding order shall create intangible transition 106 34 property in favor of an incumbent provider or grantee 106 35 representing the right to impose and collect instrument 107 1 funding charges necessary to pay principal and interest on the 107 2 transitional funding instruments authorized in the order 107 3 together with premium, servicing fees and other fees, costs, 107 4 and charges related to such funding instruments, and to fund 107 5 or maintain any required reserves, after giving effect to 107 6 delays in bill collections and uncollectibles. The party in 107 7 whose favor such rights are granted and any assignee of such 107 8 rights shall be granted the power to levy general tariffs on 107 9 responsible consumers of an incumbent provider or any other 107 10 person required to pay an instrument funding charge in order 107 11 to collect the instrument funding charges authorized in such 107 12 order and in order to facilitate the issuance of transitional 107 13 funding instruments authorized in such order. The board may 107 14 create, establish, and grant such rights under this paragraph 107 15 in and to such party with or without receiving consideration 107 16 from such party. 107 17 b. BASIC TERMS. The transitional funding order shall 107 18 authorize the establishment, creation, and granting of rights 107 19 in and to intangible transition property; any requested sale, 107 20 pledge, assignment, or other transfer of such rights; the 107 21 issuance of a specific dollar amount of transitional funding 107 22 instruments by or on behalf of an incumbent provider, 107 23 assignee, issuer, or grantee, as the case may be in an amount 107 24 not exceeding the limits set forth in subsection 3, paragraph 107 25 "b"; and the imposition and collection of instrument funding 107 26 charges projected to be sufficient to pay when due the 107 27 principal of and interest on the corresponding transitional 107 28 funding instruments, in each case, together with premium, 107 29 servicing fees and other fees, costs, and charges related to 107 30 such funding instruments, and to fund or maintain any required 107 31 reserves. The transitional funding order shall require that 107 32 the proceeds from the issuance of transitional funding 107 33 instruments be used for the purposes set forth in subsection 107 34 3, paragraph "c". Except where this section specifically 107 35 requires otherwise, the collection of instrument funding 108 1 charges and the allocation of any such collections as among 108 2 holders, assignees, issuers, grantees, and any other parties 108 3 entitled to receive portions of such collections, may be 108 4 accomplished according to the applicable transitional funding 108 5 order, or, if the order is silent on any such matters, 108 6 according to the documents relating to the pertinent 108 7 transitional funding instruments. 108 8 c. FLEXIBILITY – CREDIT AND COLLECTION POLICIES. The 108 9 board, in a transitional funding order, shall afford 108 10 flexibility in establishing the terms and conditions of the 108 11 transitional funding instruments including repayment 108 12 schedules, collateral, required debt service and other 108 13 reserves, interest rates and other financing costs, and the 108 14 ability of the incumbent provider, at its option, to effect a 108 15 series of issuances of transitional funding instruments and 108 16 correlated assignments, sales, pledges, or other transfers of 108 17 intangible transition property. At the request of an 108 18 incumbent provider, the board in its transitional funding 108 19 order may establish such terms with respect to credit and 108 20 collection policies to be followed by persons collecting 108 21 instrument funding charges as the incumbent provider may 108 22 reasonably demonstrate are likely to be required for at least 108 23 two nationally recognized statistical rating agencies to rate 108 24 the transitional funding instruments in the highest rating 108 25 category assigned by such agencies to securities of comparable 108 26 maturities. 108 27 d. TARIFFS. Concurrently with the issuance of 108 28 transitional funding instruments, an incumbent provider, 108 29 grantee, issuer, or an assignee shall begin to impose and 108 30 collect the specified instrument funding charges from 108 31 responsible consumers, classes of responsible consumers, and 108 32 any other persons or groups of persons as set forth in the 108 33 relevant transitional funding order and shall file tariffs in 108 34 accordance with this paragraph. As a precondition to the 108 35 imposition of any instrument funding charges, an incumbent 109 1 provider shall file tariffs directing that the amount of such 109 2 instrument funding charges be deducted, stated, and collected 109 3 separately from the amounts otherwise billed by such incumbent 109 4 provider for eligible rates as set forth in the transitional 109 5 funding order. Upon the effectiveness of such tariffs, the 109 6 amounts of instrument funding charges thereby deducted and to 109 7 be deducted become intangible transition property as specified 109 8 in the transitional funding order and the rights to such 109 9 intangible transition property shall constitute a current 109 10 property right. The board shall not review such tariffs 109 11 except to confirm that the instrument funding charges 109 12 authorized in the transitional funding order have been 109 13 deducted and stated separately from eligible rates in effect 109 14 at such time, and the filing of any such tariff shall not be 109 15 suspended for any other reason. Deductions referred to in 109 16 this paragraph shall not be construed as a change in or 109 17 otherwise require a recalculation of the authorized amounts of 109 18 eligible rates. Instrument funding charges shall be 109 19 recoverable with respect to services for which the deductions 109 20 provided in this paragraph have become effective and such 109 21 deductions shall not be effective with respect to any services 109 22 or power in respect of which instrument funding charges have 109 23 not been so authorized and imposed. 109 24 e. PERIODIC ADJUSTMENTS. The board shall provide in any 109 25 transitional funding order for a procedure for periodic 109 26 adjustments to the instrument funding charges to ensure 109 27 adequate revenues from such instrument funding charges for 109 28 repaying principal of the transitional funding instruments in 109 29 accordance with their expected amortization schedule, for 109 30 paying interest and related fees and expenses, and for funding 109 31 and maintaining required reserves on a timely basis. If so 109 32 requested by an incumbent provider in an application for a 109 33 transitional funding order, the transitional funding order may 109 34 specify a dollar or percentage amount of variation from the 109 35 projected revenues within which no such adjustment will be 110 1 required, set forth a maximum adjustment amount for the 110 2 instrument funding charges, or both. If an adjustment 110 3 described in this paragraph is required, such adjustment shall 110 4 be implemented by the incumbent provider, grantee, assignee, 110 5 or issuer, as applicable, with prior written notice to the 110 6 board. Any such adjustment shall be calculated to include 110 7 amounts necessary for recovery of any additional costs 110 8 incurred by the incumbent provider, grantee, assignee, or 110 9 issuer as a result of the relevant delay in collections of 110 10 instrument funding charges. If any such adjustment would 110 11 cause the amount of any instrument funding charge to exceed 110 12 the eligible rates from which such instrument funding charge 110 13 is to be deducted, the relevant incumbent provider may ratably 110 14 allocate the deficiency to other responsible consumers as part 110 15 of the adjustment mechanism set forth in this paragraph and in 110 16 the relevant transitional funding order. If, as a result of 110 17 any adjustment, the amount of any instrument funding charge, 110 18 as adjusted, will exceed an amount greater than the amount of 110 19 the instrument funding charge initially authorized by the 110 20 board in its transitional funding order, the relevant 110 21 incumbent provider shall be obligated to file amendatory 110 22 tariffs in compliance with paragraph "f". 110 23 f. AMENDATORY TARIFFS. If an adjustment under paragraph 110 24 "e" results in the amount of any instrument funding charge as 110 25 so adjusted exceeding the amount of the instrument funding 110 26 charge initially authorized by the board in its transitional 110 27 funding order, the relevant incumbent provider shall file 110 28 amendatory tariffs reducing the amounts otherwise billed by 110 29 such incumbent provider for eligible rates by the amount of 110 30 such excess. Such amendatory tariff shall be subject to the 110 31 provisions of paragraph "d", except that the failure of such 110 32 amendatory tariff to become effective for any reason shall not 110 33 delay or impair the effectiveness of the adjustments required 110 34 under paragraph "e" and the obligation of responsible 110 35 consumers and other persons or groups of persons to pay 111 1 instrument funding charges as so adjusted shall not be subject 111 2 to any defense, counterclaim, or right of setoff arising as a 111 3 result of failure by the incumbent provider to comply with 111 4 this paragraph. This paragraph does not restrict any 111 5 responsible end-use consumer or other person from bringing any 111 6 suit in any court or from exercising any other legal or 111 7 equitable remedy against an incumbent provider for any failure 111 8 by such incumbent provider to comply with this paragraph. 111 9 g. NONRECOURSE STATUS – NO DEFENSE, COUNTERCLAIM, OR 111 10 SETOFF. Except as otherwise specifically set forth in the 111 11 transitional funding order, the transitional funding 111 12 instruments issued pursuant to such order shall be nonrecourse 111 13 to the credit or to any assets of the incumbent provider other 111 14 than any assets comprising intangible transition property. 111 15 The obligation of responsible consumers and other persons to 111 16 pay instrument funding charges shall be contingent upon the 111 17 receipt by such responsible consumers and other persons of 111 18 delivery service or other services related to the provision of 111 19 electric power for which eligible rates may be assessed, but 111 20 the transitional funding order shall specifically provide that 111 21 such instrument funding charges will not be subject to any 111 22 defense, counterclaim, or right of set-off arising as a result 111 23 of failure by the incumbent provider, upon whose application 111 24 the intangible transition property was created, to perform or 111 25 provide past, present, or future services. 111 26 h. TRANSFER AND SERVICING. On such conditions as the 111 27 board may approve in the relevant transitional funding order, 111 28 the interest of any party in intangible transition property 111 29 may be assigned, sold or otherwise transferred, in whole or in 111 30 part, and may, in whole or in part, be pledged or assigned as 111 31 security to or for the benefit of a holder or holders. To the 111 32 extent that any such interest or portion of such interest is 111 33 assigned, sold, pledged, or otherwise transferred or is 111 34 established, created, and granted to a party other than the 111 35 incumbent provider, the board, in the relevant transitional 112 1 funding order, shall authorize the incumbent provider or any 112 2 affiliate of the incumbent provider to contract with any owner 112 3 or pledgee of such intangible transition property and any 112 4 holders of the relevant transitional funding instruments to 112 5 collect the applicable instrument funding charges for the 112 6 benefit and account of such persons, and such incumbent 112 7 provider or affiliate shall, except as otherwise specified in 112 8 the transitional funding order, account for and remit the 112 9 applicable instrument funding charges, without the obligation 112 10 to remit any investment earnings on such charges, to or for 112 11 the account of the relevant persons. The obligation of such 112 12 incumbent provider or affiliate to collect and remit the 112 13 applicable instrument funding charges shall continue 112 14 irrespective of whether such incumbent provider is providing 112 15 the services to which such instrument funding charges relate. 112 16 If the documents creating the transitional funding instruments 112 17 so provide, such obligations, in the event of a default by the 112 18 incumbent provider or affiliate in performing such 112 19 obligations, shall be undertaken and performed by any other 112 20 entity selected by the grantee, assignee or any holder, group 112 21 of holders or trustee or agent on behalf of such holder or 112 22 holders, as the case may be. However, a failure by the 112 23 designated party to perform such obligations shall not affect 112 24 the existence of the intangible transition property or the 112 25 instrument funding charges or the validity or enforceability 112 26 of the instrument funding charges in accordance with their 112 27 terms. 112 28 i. REPORTING. An incumbent provider shall file a 112 29 statement of the final terms of the issuance of any series of 112 30 transitional funding instruments with the board within ninety 112 31 days of the receipt of proceeds from such issuance. In 112 32 addition, the board may require an incumbent provider to file 112 33 periodic reports on its use of the proceeds at intervals of 112 34 not less than one year. 112 35 j. REFINANCING. Any adjustment to instrument funding 113 1 charges that is necessary due to subsequent refinancing of 113 2 transitional funding instruments shall be authorized by the 113 3 board in a supplemental order. Unless specifically requested 113 4 by the incumbent provider in the application for such 113 5 supplemental order, no refinancing of previously issued 113 6 transitional funding instruments shall be deemed a new 113 7 issuance to be counted towards the dollar limitations set 113 8 forth in subsection 3, paragraph "b". 113 9 k. NO REDUCTION, POSTPONEMENT, IMPAIRMENT, OR TERMINATION. 113 10 A transitional funding order, the intangible transition 113 11 property created and established by such order, or the 113 12 instrument funding charges authorized to be imposed and 113 13 collected under such order, shall not be subject to reduction, 113 14 postponement, impairment, or termination by any subsequent 113 15 action of the board. However, a party to the board's 113 16 proceeding relating to the transitional funding order may seek 113 17 judicial review of such transitional funding order in 113 18 accordance with the provisions of other applicable law. 113 19 l. ONGOING VALIDITY. A transitional funding order shall 113 20 remain valid notwithstanding the invalidation of any portion 113 21 of this chapter. A transitional funding instrument, 113 22 instrument funding charge, intangible transition property, 113 23 lien, or other right established pursuant to a transitional 113 24 funding order is valid and binding in accordance with terms of 113 25 such order, notwithstanding that such order or any portion of 113 26 this chapter is later vacated, modified, or otherwise held to 113 27 be wholly or partly invalid. 113 28 m. CONTINUATION OF INTANGIBLE TRANSITION PROPERTY. The 113 29 intangible transition property created under a transitional 113 30 funding order and the authority of the grantee, assignee, 113 31 issuer, incumbent provider, or other person authorized under 113 32 such order to impose and collect instrument funding charges 113 33 and to exercise its rights under a transitional funding order, 113 34 including the right to make periodic adjustments pursuant to 113 35 paragraph "e", shall continue beyond the final date set forth 114 1 in the applicable transitional funding order until such time 114 2 as all transitional funding instruments authorized in such 114 3 order have been paid in full. Upon the later of the final 114 4 date set forth in the applicable transitional funding order 114 5 for the imposition and collection of instrument funding 114 6 charges or the repayment in full of any transitional funding 114 7 instruments, as applicable, authorized in such order, the 114 8 authority to impose and collect the related instrument funding 114 9 charges shall cease and any instrument funding charges 114 10 collected in excess of the amount required for the repayment 114 11 of the transitional funding instruments shall be paid to the 114 12 owner of such intangible transition property, and the relevant 114 13 incumbent provider shall be entitled to file tariffs revoking 114 14 any deductions from eligible rates which were granted in 114 15 connection with such instrument funding charges pursuant to 114 16 paragraph "d" or "f". The board shall not review such tariffs 114 17 except to determine that the rates and charges resulting from 114 18 such revocation do not exceed the applicable eligible rates 114 19 which would otherwise have been in effect at the time of such 114 20 revocation had no instrument funding charges ever been 114 21 deducted from such rates. 114 22 5. RELATIONSHIP TO STATE AND OTHER LAW. 114 23 a. The state pledges to, and agrees with, the holders of 114 24 any transitional funding instruments who may enter into 114 25 contracts with an incumbent provider, grantee, assignee, or 114 26 issuer pursuant to this section that the state will not in any 114 27 way limit, alter, impair, or reduce the value of intangible 114 28 transition property created by, or instrument funding charges 114 29 approved by, a transitional funding order so as to impair the 114 30 terms of any contract made by such incumbent provider, 114 31 grantee, assignee, or issuer with such holders or in any way 114 32 impair the rights and remedies of such holders until the 114 33 pertinent transitional funding instruments and interest, 114 34 premium and other fees, costs, and charges related to such 114 35 funding instruments, are fully paid and discharged. An 115 1 incumbent provider, grantee, or issuer is authorized to 115 2 include these pledges and agreements of the state in any 115 3 contract with the holders of transitional funding instruments 115 4 or with any assignees pursuant to this section, and any 115 5 assignees are similarly authorized to include these pledges 115 6 and agreements of the state in any contract with any issuer, 115 7 holder, or any other assignee. This section shall not 115 8 preclude the state from requiring adjustments as may otherwise 115 9 be allowed by law to eligible rates, so long as any such 115 10 adjustment does not directly affect or impair any instrument 115 11 funding charges previously authorized by a transitional 115 12 funding order issued by the board. 115 13 b. A transitional funding instrument issued under this 115 14 section does not constitute debt or liability of the state or 115 15 of any political subdivision, and transitional funding orders 115 16 authorizing such issuance do not constitute a pledge of the 115 17 full faith and credit of the state or of any political 115 18 subdivision. The issuance of transitional funding instruments 115 19 shall not directly, indirectly, or contingently obligate the 115 20 state or any political subdivision to levy or to pledge any 115 21 form of taxation or to make any appropriation for the payment 115 22 of such funding instruments. A transitional funding 115 23 instrument shall be payable solely from the intangible 115 24 transition property or from such other proceeds or property as 115 25 may be pledged for such funding instrument. This section 115 26 shall not be construed to prevent the state or any political 115 27 subdivision from owning any interest in a grantee, assignee, 115 28 or issuer or to prevent any incumbent provider, grantee, 115 29 issuer, or assignee from selling, pledging, or assigning 115 30 intangible transition property or from providing recourse or 115 31 guarantees or any other third-party credit enhancement in 115 32 connection with such sale, pledge, or assignment. 115 33 c. The procedures set forth in this section shall 115 34 constitute the sole procedures by which rights in, to, or 115 35 under intangible transition property may be created, 116 1 established, and granted, and no other approvals shall be 116 2 required under other law for such creation, establishment, 116 3 grant, or for the issuance of transitional funding 116 4 instruments. The rights of incumbent providers, grantees, 116 5 assignees, and holders in and to any such intangible 116 6 transition property shall be interpreted in accordance with 116 7 this section, which shall supersede any other law, rule, or 116 8 regulation to the contrary. 116 9 6. SECURITY INTERESTS IN INTANGIBLE TRANSITION PROPERTY. 116 10 a. Intangible transition property or any right, title, or 116 11 interest in such intangible transition property shall not 116 12 constitute property in which a security interest may be 116 13 created under the uniform commercial code. Additionally, such 116 14 property, or any such right, title, or interest in such 116 15 property shall not be deemed proceeds of any property which is 116 16 not intangible transition property. For purposes of this 116 17 paragraph, the terms "account" and "general intangible", as 116 18 defined under section 554.9106 of the uniform commercial code, 116 19 and the term "instrument", as used in the uniform commercial 116 20 code, shall be deemed to exclude any such intangible 116 21 transition property or any right, title, or interest in such 116 22 intangible transition property. 116 23 b. The granting, perfection, and enforcement of security 116 24 interests in intangible transition property shall be governed 116 25 by this section and not by the uniform commercial code. 116 26 c. A valid and enforceable security interest in intangible 116 27 transition property shall attach and be perfected only as 116 28 follows: 116 29 (1) To the extent a transitional funding instrument is 116 30 purported to be secured by intangible transition property as 116 31 specified in the applicable transitional funding order, the 116 32 lien of the transitional funding instrument shall attach 116 33 automatically to such intangible transition property from the 116 34 time of issuance of the transitional funding instrument. Such 116 35 lien shall be a valid and enforceable security interest in the 117 1 intangible transition property securing the transitional 117 2 funding instruments and shall be continuously perfected if, 117 3 before the date of issuance of the applicable transitional 117 4 funding instrument or within no more than ten days after such 117 5 issuance, a filing has been made by or on behalf of the holder 117 6 with the executive secretary of the board stating that such 117 7 transitional funding instrument has been or is to be issued. 117 8 Any such filing made with the board in respect to such 117 9 transitional funding instrument shall take precedence over any 117 10 subsequent filing except as may otherwise be provided in the 117 11 applicable transitional funding order. 117 12 (2) A lien under this paragraph is enforceable against the 117 13 incumbent provider, any grantee, issuer, or assignee, and any 117 14 third party, including a judicial lien creditor, subject only 117 15 to the rights of a third party holding a security interest in 117 16 the intangible transition property previously perfected in the 117 17 manner described in this subsection if value has been given by 117 18 the purchaser of a transitional funding instrument. A 117 19 perfected lien in intangible transition property is a 117 20 continuously perfected security interest in all then existing 117 21 or future revenues and proceeds arising with respect to the 117 22 associated intangible transition property whether or not the 117 23 electric power and related services included in the 117 24 calculation of such revenues and proceeds have been provided. 117 25 A lien created under this paragraph is perfected, and ranks 117 26 prior to any other lien, including a judicial lien, which 117 27 subsequently attaches to the intangible transition property 117 28 and to any other rights created by the transitional funding 117 29 order or any revenues or proceeds of the foregoing. The 117 30 relative priority of a lien created under this subsection is 117 31 not defeated or adversely affected by changes to the 117 32 transitional funding order or to the instrument funding 117 33 charges payable by a responsible consumer, class of 117 34 responsible consumers, or other person or group of persons 117 35 obligated to pay such charges. 118 1 (3) The relative priority of a lien created under this 118 2 subsection is not defeated or adversely affected by the 118 3 commingling of revenues arising with respect to intangible 118 4 transition property with funds of the incumbent provider or 118 5 other funds of the assignee, issuer, or grantee. 118 6 (4) If a default occurs under a transitional funding 118 7 instrument, the holders of such instrument or their authorized 118 8 representative, as secured parties, may foreclose or otherwise 118 9 enforce the lien in the intangible transition property 118 10 securing the transitional funding instrument, subject to the 118 11 rights of any third parties holding prior security interests 118 12 in the intangible transition property previously perfected as 118 13 provided in this subsection. Upon application by a holder or 118 14 such holder's authorized representative, without limiting any 118 15 other remedies, the board shall order the sequestration and 118 16 payment to such holder or authorized representative of 118 17 revenues arising with respect to the intangible transition 118 18 property pledged to the holder. An order under this 118 19 subsection shall remain in full force and effect 118 20 notwithstanding any bankruptcy, reorganization, or other 118 21 insolvency proceeding with respect to the incumbent provider, 118 22 grantee, assignee, or issuer. 118 23 (5) The board shall maintain segregated records which 118 24 reflect the date and time of receipt of all filings made under 118 25 this subsection. The board may provide that transfers of 118 26 intangible transition property be filed in accordance with the 118 27 same system. 118 28 7. TRUE SALE CHARACTERIZATION OF TRANSFER. A sale, 118 29 assignment, grant, or other transfer of intangible transition 118 30 property in a transaction approved in a transitional funding 118 31 order, unless otherwise provided in the documents governing 118 32 such transaction, shall be irrevocable as against the 118 33 incumbent provider requesting such transitional funding order 118 34 and shall be treated as an absolute transfer of all of the 118 35 transferor's right, title, and interest in, to, and under such 119 1 intangible transition property, or, in the case of a grant to 119 2 a grantee, as an absolute vesting of such property in the name 119 3 of the grantee. Any such sale, assignment, grant, or other 119 4 transfer is perfected as against third persons, including 119 5 judicial lien creditors, when the sale, assignment, grant, or 119 6 other transfer has become effective as between the parties, 119 7 and shall place such intangible transition property beyond the 119 8 reach of the transferor or incumbent provider and their 119 9 respective creditors, as in a true sale, and not as a pledge 119 10 or other financing, of such intangible transition property. 119 11 The characterization of a sale, assignment, grant, or other 119 12 transfer as an absolute transfer or vesting and the 119 13 corresponding characterization of the grantee's or 119 14 transferee's property interest shall not be defeated or 119 15 adversely affected by, among other things, any of the 119 16 following: the commingling of revenues arising with respect 119 17 to intangible transition property with funds of the incumbent 119 18 provider or other funds of the assignee, issuer, or grantee; 119 19 the granting to holders of transitional funding instruments a 119 20 preferred right to the intangible transition property, whether 119 21 direct or indirect; the provision by the incumbent provider, 119 22 grantee, assignee, or issuer of any recourse, collateral, or 119 23 credit enhancement with respect to transitional funding 119 24 instruments; the retention by the assigning party of a partial 119 25 interest in any intangible transition property, whether direct 119 26 or indirect, or whether subordinate or otherwise; or the 119 27 incumbent provider's responsibilities for collecting 119 28 instrument funding charges and any retention of bare legal 119 29 title for the purpose of such collection activities. The 119 30 treatment of any such sale, assignment, grant, or other 119 31 transfer for federal tax purposes shall be governed by 119 32 applicable law without regard to this section. 119 33 8. TREATMENT OF TRANSITIONAL FUNDING INSTRUMENTS IN 119 34 REGULATED RATES. The debt associated with a transitional 119 35 funding instrument shall not be included in the regulated 120 1 capital structure for the purpose of determining regulated 120 2 rates for any service. 120 3 9. ACTIONS WITH RESPECT TO INTANGIBLE TRANSITION PROPERTY 120 4 AND RELATED INSTRUMENT FUNDING CHARGES. 120 5 a. The board shall have exclusive jurisdiction over any 120 6 dispute arising out of the obligations to impose and collect 120 7 instrument funding charges. This section does not prevent a 120 8 holder from bringing an action in any court or from exercising 120 9 any other legal or equitable remedy against an incumbent 120 10 provider for failure to distribute collections of instrument 120 11 funding charges or for any other failure by the incumbent 120 12 provider to perform the contractual obligations agreed to by 120 13 the incumbent provider under any documents pertaining to, or 120 14 executed in connection with, a transitional funding instrument 120 15 issued by or on behalf of the incumbent provider. 120 16 b. An incumbent provider, issuer, assignee, grantee, or 120 17 holder is expressly permitted to bring an action against a 120 18 responsible consumer or other person for nonpayment of any 120 19 instrument funding charges constituting a part of the 120 20 intangible transition property then held by the incumbent 120 21 provider, issuer, assignee, grantee, or holder. Any such 120 22 action shall be subject to any and all applicable consumer 120 23 credit protection laws and other laws relating to origination, 120 24 collection, and reporting of consumer credit obligations. 120 25 10. TAXATION OF TRANSFERS OF INTANGIBLE TRANSITION 120 26 PROPERTY. A sale, grant, pledge, assignment, or other 120 27 transfer of intangible transition property is exempt from any 120 28 state or local sales, income, transfers, gains, receipts, or 120 29 similar taxes. A transfer of intangible transition property 120 30 shall be treated as a pledge or other financing for state tax 120 31 purposes, including state and local income and franchise 120 32 taxes, unless the documents governing such transfer 120 33 specifically state that the transfer is intended to be treated 120 34 otherwise. 120 35 Sec. 18. NEW SECTION. 476B.18 RECIPROCITY. 121 1 A person with an assigned service area in this state, 121 2 including an affiliate of such person, shall not offer 121 3 competitive power supply services within another person's 121 4 assigned service area in this state until the former person 121 5 allows the latter person a reasonable opportunity to offer 121 6 competitive power supply services in the former person's 121 7 assigned service area in this state. If the board suspends 121 8 the dates for commencement of the option to choose competitive 121 9 electric service pursuant to section 476B.7, the board shall 121 10 determine the manner and extent to which this section applies. 121 11 Sec. 19. NEW SECTION. 476B.19 APPLICABILITY OF AUTHORITY 121 12 – CONSUMER-OWNED UTILITIES. 121 13 An electric cooperative and a municipal utility are not 121 14 subject to regulation by the board except as specifically 121 15 provided in this chapter. 121 16 Sec. 20. NEW SECTION. 476B.20 REMEDIES AND PENALTIES. 121 17 1. The board, after notice and opportunity for hearing, 121 18 may impose the following penalties and remedies for the 121 19 following violations: 121 20 a. The board may impose a civil penalty of up to two 121 21 thousand dollars for each nonmaterial violation of a licensing 121 22 requirement, including all board rules and orders, governing a 121 23 competitive electric service provider. The maximum aggregate 121 24 penalty per person pursuant to this paragraph shall not exceed 121 25 twenty thousand dollars per calendar year. 121 26 b. The board may impose a civil penalty of up to ten 121 27 thousand dollars for each material violation of a licensing 121 28 requirement, including all board rules and orders, governing a 121 29 competitive electric service provider. The maximum aggregate 121 30 penalty per person pursuant to this paragraph shall not exceed 121 31 two hundred thousand dollars per calendar year. 121 32 c. The board may impose a civil penalty of up to twenty- 121 33 five thousand dollars for each repeat violation of a licensing 121 34 requirement, including all board rules and orders, governing a 121 35 competitive electric service provider if the board finds the 122 1 violation to be substantial. The maximum aggregate penalty 122 2 per person under this paragraph shall not exceed one million 122 3 dollars per calendar year. 122 4 d. For repeat violations of licensing requirements, 122 5 including board rules and orders, governing a competitive 122 6 electric service provider, the board may by order prohibit the 122 7 competitive electric service provider or any other person 122 8 acting on behalf of the competitive electric service provider 122 9 from billing charges directly associated with the violation. 122 10 e. For repeat substantial violations under paragraph "c" 122 11 occurring within a twenty-four-month period, the board may 122 12 revoke the competitive electric service provider's license if 122 13 the board determines that no less severe remedy is likely to 122 14 correct the competitive electric service provider's conduct. 122 15 A repeat violation for the purpose of this paragraph means 122 16 that the occurrence of the second applicable violation takes 122 17 place subsequent to the date the board has issued a notice of 122 18 violation in a contested case on the initial violation, and 122 19 the board finds that the same provision of this chapter, or 122 20 the same requirement of a board rule or order, has been 122 21 violated in both contested cases. The written notice of 122 22 violation given by the board under this paragraph shall 122 23 specify an appropriate and reasonable time for compliance. 122 24 f. The board may issue a cease and desist order if the 122 25 board finds a competitive electric service provider has 122 26 engaged in conduct to monopolize in the relevant competitive 122 27 market, including, but not limited to predatory pricing as 122 28 defined by applicable law. The board's determination of 122 29 predatory pricing shall be given no weight in any legal action 122 30 brought in court, except with respect to judicial review of a 122 31 ruling brought pursuant to section 476B.23. For a repeat 122 32 violation of a cease and desist order issued pursuant to this 122 33 paragraph, the board may revoke a competitive electric service 122 34 provider's license if the board determines that no less severe 122 35 remedy is likely to result in a change in the competitive 123 1 electric service provider's conduct. This paragraph shall not 123 2 be construed as creating an exemption from federal or state 123 3 antitrust laws. 123 4 g. If a competitive electric service provider 123 5 substantially defaults on its obligations such that a control 123 6 area operator or other person provides emergency supply to 123 7 serve a customer of the defaulting competitive electric 123 8 service provider, the board may impose a monetary penalty on 123 9 the competitive electric service provider which does not 123 10 exceed three times the cost of the emergency supply and may 123 11 also revoke a competitive electric service provider's license 123 12 if the board determines that no less severe remedy is likely 123 13 to result in a change in the competitive electric service 123 14 provider's conduct. 123 15 h. The board may issue a cease and desist order if any 123 16 competitive electric service provider has engaged or is 123 17 engaging in any act or practice in violation of this chapter 123 18 or rule or order of the board. Such order is effective when 123 19 issued unless otherwise specified in the order. For a 123 20 violation of a cease and desist order issued pursuant to this 123 21 paragraph, the board may revoke a competitive electric service 123 22 provider's license if the board determines that no less severe 123 23 remedy is likely to result in a change of the competitive 123 24 electric service provider's conduct. 123 25 i. The board may impose a civil penalty of up to five 123 26 thousand dollars for each nonmaterial violation of this 123 27 chapter, or a board rule or order, governing delivery service 123 28 providers. The maximum aggregate penalty to which a delivery 123 29 service provider may be subject pursuant to this paragraph 123 30 shall not exceed twenty thousand dollars per calendar year. 123 31 j. The board may impose a civil penalty of up to ten 123 32 thousand dollars for a material violation of this chapter, or 123 33 a board rule or order, by a delivery service provider. The 123 34 maximum aggregate penalty to which a delivery service provider 123 35 may be subject pursuant to this paragraph shall not exceed two 124 1 hundred thousand dollars per calendar year. 124 2 k. The board may impose a civil penalty of up to twenty- 124 3 five thousand dollars for each repeat violation of this 124 4 chapter, or a board rule or order, by a delivery service 124 5 provider if the board finds the violation to be substantial. 124 6 The maximum aggregate penalty to which a delivery service 124 7 provider may be subject pursuant to this paragraph shall not 124 8 exceed one million dollars per calendar year. 124 9 l. For a violation of this chapter, or a board rule or 124 10 order, by a delivery service provider, in addition to the 124 11 penalties and remedies in this subsection, the board may issue 124 12 a cease and desist order and disallow cost recovery of any 124 13 associated costs in electric company rate proceedings. Such 124 14 cease and desist order is effective when issued unless 124 15 otherwise specified in the order. 124 16 2. The board may issue a cease and desist order in an 124 17 emergency, without hearing or notice, if the board receives a 124 18 written verified complaint or affidavit showing that a person 124 19 is selling competitive electric services without being duly 124 20 licensed or is engaging in conduct that creates an immediate 124 21 danger to the public safety or reliability of the delivery 124 22 system or is reasonably expected to cause significant, 124 23 imminent, and irreparable public injury. An emergency cease 124 24 and desist order is effective immediately and continues in 124 25 force and effect until further order of the board or until 124 26 stayed by a court of competent jurisdiction. A hearing shall 124 27 be held by the board within ten business days of the issuance 124 28 of the emergency cease and desist order in which the board 124 29 shall in a final order affirm, modify, or set aside the 124 30 emergency cease and desist order. 124 31 3. The board, after notice and opportunity for hearing, 124 32 may order restitution for a person injured by a violation of 124 33 any board rule including, but not limited to, rules concerning 124 34 deceptive, abusive, and unfair sales practices, and the 124 35 provision of safe, reliable, and prompt delivery services and 125 1 competitive electric services. The board shall not have 125 2 authority to order special, incidental, consequential, or 125 3 punitive damages. 125 4 4. The board, after written notice and opportunity for 125 5 hearing, may impose a civil penalty of up to twenty-five 125 6 thousand dollars per occurrence upon a delivery service 125 7 provider for an excessive number of delivery-related outages, 125 8 excessive outage durations, or failure to undertake reasonable 125 9 and prudent maintenance measures to avoid outages. For 125 10 purposes of this subsection, an occurrence does not mean per 125 11 day or per consumer affected by an occurrence. The board 125 12 shall adopt rules specifying the circumstances under which 125 13 penalties would apply and shall give due consideration to 125 14 conditions within and beyond the control of the delivery 125 15 service provider. Delivery service providers that are 125 16 electric companies shall not include such civil penalties in 125 17 regulated rates. The initial rules shall be proposed by 125 18 November 1, 2001. 125 19 5. A person, after previously having been found by the 125 20 board to have violated a provision of this chapter or a rule 125 21 or order of the board, who willfully violates the same 125 22 provision of this chapter, the same rule or provision of an 125 23 order, shall after notice and opportunity for hearing be 125 24 subject to a civil penalty of up to twenty-five thousand 125 25 dollars per violation. For the purposes of this subsection, 125 26 "willful" means knowing and deliberate, with a specific intent 125 27 to violate. 125 28 6. Except as provided in subsection 4, each violation is a 125 29 separate offense, and in the case of a continuing violation, 125 30 each day a violation continues, after a reasonable time 125 31 specified for compliance in the written notice by the board, 125 32 is a separate and distinct offense. A civil penalty assessed 125 33 under this section may be compromised below the maximum by the 125 34 board. In determining the amount of the penalty, or the 125 35 amount agreed upon in the compromise, the board may consider 126 1 the appropriateness of the penalty in relation to the 126 2 financial resources of the person being penalized, the gravity 126 3 of the violation, the good faith of the person in attempting 126 4 to achieve compliance following notification of a violation, 126 5 and any other relevant factors. The board shall not impose a 126 6 civil penalty for any single violation in excess of fifty 126 7 thousand dollars and for any continuing violation in excess of 126 8 five hundred thousand dollars. 126 9 7. Civil penalties collected by the board under this 126 10 section shall be forwarded to the treasurer of state. 126 11 8. The board may apply to the district court of any county 126 12 of the state to enforce any order made or action taken by the 126 13 board pursuant to this section or to have a violation stopped 126 14 or prevented by injunction, mandamus, or other appropriate 126 15 remedy. 126 16 9. The board may award costs of litigation, including 126 17 reasonable attorney and expert witness fees, actually incurred 126 18 by a person found by the board to have materially contributed 126 19 to the enforcement of the remedies or penalties provided for 126 20 in this section. Litigation costs, in an amount approved by 126 21 the board and not to exceed twenty-five thousand dollars, 126 22 shall be paid by the person or persons found by the board to 126 23 be in violation of this chapter. In determining the award, 126 24 the board may consider the financial resources of such person. 126 25 10. A person who suffers harm as a result of a violation 126 26 of this chapter or of any rule or order lawfully issued by the 126 27 board pursuant to this chapter shall have a right to bring an 126 28 action in the courts of this state to recover any damages 126 29 caused by such violation. 126 30 Sec. 21. NEW SECTION. 476B.21 REHEARINGS BEFORE THE 126 31 BOARD. 126 32 Notwithstanding chapter 17A, a party, as defined in the 126 33 rules adopted by the board, to a contested case before the 126 34 board may within twenty days after the issuance of the final 126 35 decision apply for a rehearing. The board shall either grant 127 1 or refuse an application for rehearing within thirty days 127 2 after the filing of the application or, after giving the 127 3 interested parties notice and opportunity to be heard and 127 4 after consideration of all the facts, including those arising 127 5 since the making of the order, may abrogate or modify its 127 6 order. A failure by the board to act upon the application for 127 7 rehearing within the thirty-day period shall be deemed a 127 8 denial of the application. Neither the filing of an 127 9 application for rehearing nor the granting of the application 127 10 shall stay the effectiveness of an order unless the board so 127 11 directs. 127 12 Sec. 22. NEW SECTION. 476B.22 JUDICIAL REVIEW. 127 13 1. Notwithstanding chapter 17A, the district court for 127 14 Polk county has exclusive venue for the judicial review under 127 15 chapter 17A of actions of the board pursuant to section 127 16 476B.4, subsection 1, section 476B.8, subsections 1, 2, and 3, 127 17 and section 476B.9, subsections 5 and 7. 127 18 2. Upon the filing of a petition for judicial review 127 19 pursuant to subsection 1, the clerk of the district court 127 20 shall notify the chief justice of the supreme court for 127 21 purposes of assignment of a district judge under section 127 22 602.1212. The judicial review proceeding shall be heard by 127 23 the district judge appointed by the supreme court under 127 24 section 602.1212, but in the court of venue under subsection 127 25 1. 127 26 3. Notwithstanding chapter 17A, if a delivery service 127 27 provider that is an electric company seeks judicial review of 127 28 an order approving rates for the delivery service provider, 127 29 the level of rates that may be collected, under bond and 127 30 subject to refund, while the judicial review proceeding is 127 31 pending is limited to the level of the temporary rates set by 127 32 the board, or the level of the final rates set by the board, 127 33 whichever is greater. During the period the judicial review 127 34 proceeding is pending, the board shall retain jurisdiction to 127 35 determine the rate of interest to be paid on any refunds 128 1 eventually required on rates collected during judicial review. 128 2 Sec. 23. NEW SECTION. 476B.23 CONTRACT RIGHTS. 128 3 Except as provided in this section, this chapter shall not 128 4 affect the rights and duties of parties under a contract for 128 5 electric service in effect on the effective date of this 128 6 chapter. Notwithstanding a provision in a contract to the 128 7 contrary, contracts for bundled electric service executed 128 8 before the effective date of this chapter between an incumbent 128 9 provider and a nonresidential end-use consumer that uses fewer 128 10 than one hundred thousand kilowatt-hours in 2001 or a 128 11 residential end-use consumer may be terminated without penalty 128 12 by the consumer on or after May 1, 2002, upon thirty days' 128 13 prior written notice. 128 14 Sec. 24. NEW SECTION. 476B.24 UTILITY EMPLOYEE 128 15 TRANSITION SERVICES AND BENEFITS. 128 16 1. The general assembly finds, based on experience in 128 17 other industries that have undergone similar transitions, that 128 18 the introduction of competition into the state's electric 128 19 utility industry may result in workforce reductions by 128 20 electric companies which may adversely affect persons who have 128 21 been employed by this state's electric utilities in functions 128 22 important to the public convenience and welfare. The general 128 23 assembly further finds that the impacts on employees and their 128 24 communities of any necessary reductions in the utility 128 25 workforce caused by this restructuring of the electric 128 26 industry shall be mitigated to the extent practicable through 128 27 such means as offers of voluntary severance, retraining, early 128 28 retirement, outplacement, and related benefits. Therefore, 128 29 before any such reduction in the workforce during the period 128 30 between the effective date of this chapter and January 1, 128 31 2006, an electric utility shall present to its employees or 128 32 their representatives a workforce reduction plan outlining the 128 33 means by which the electric utility intends to mitigate the 128 34 impact of such workforce reduction on its employees. For the 128 35 purpose of this section, the term "electric utility" means the 129 1 electric delivery service operations in Iowa and the electric 129 2 generating operations and units located in Iowa of incumbent 129 3 providers other than consumer-owned utilities. 129 4 2. In the event of a sale, purchase, or any other transfer 129 5 of ownership by an electric utility, during the period from 129 6 the effective date of this chapter to January 1, 2006, of one 129 7 or more Iowa divisions, business units, generating stations, 129 8 or generating units located in Iowa, the electric utility's 129 9 contract or agreement with the acquiring person shall require 129 10 that the acquiring person hire a sufficient number of 129 11 nonsupervisory employees to operate and maintain the station, 129 12 division, or unit by initially making offers of employment to 129 13 the nonsupervisory workforce of the electric utility's 129 14 division, business unit, generating stations, or generating 129 15 unit at no less than the wage rates and substantially 129 16 equivalent fringe benefits and terms and conditions of 129 17 employment that are in effect at the time of transfer of 129 18 ownership of the division, business unit, generating station, 129 19 or generating units. The wage rates and substantially 129 20 equivalent fringe benefits and terms and conditions of 129 21 employment shall continue for at least thirty months from the 129 22 time of the transfer of ownership unless the parties mutually 129 23 agree to different terms and conditions of employment within 129 24 that thirty-month period. The electric utility shall offer a 129 25 transition plan to those nonsupervisory employees who are not 129 26 offered jobs by the acquiring person because that person has a 129 27 need for fewer workers. If there is litigation concerning the 129 28 sale or other transfer of ownership of the electric utility's 129 29 divisions, business units, generating stations, or generating 129 30 units, the thirty-month period will begin on the date the 129 31 acquiring person takes control or management of the divisions, 129 32 business units, generating stations, or generating units of 129 33 the electric utility. 129 34 3. If an electric utility transfers ownership of one or 129 35 more of its divisions, business units, generating stations, or 130 1 generating units located in Iowa to an affiliate, during the 130 2 period from the effective date of this chapter to January 1, 130 3 2006, that affiliate shall comply with the transition 130 4 provisions in subsection 2. If ownership of the affiliate is 130 5 subsequently sold or transferred to another person during the 130 6 transition period, the transition provisions in subsection 2 130 7 shall continue to apply. 130 8 Sec. 25. NEW SECTION. 476B.25 REPORTS TO GENERAL 130 9 ASSEMBLY. 130 10 1. After providing an opportunity for public input, the 130 11 board shall submit to the secretary of the senate and the 130 12 chief clerk of the house of representatives for transmittal to 130 13 the Iowa senate and house of representatives a report on or 130 14 before January 10, 2005, which includes both of the following: 130 15 a. An evaluation of the effectiveness of competition in 130 16 the market for each competitive electric service. 130 17 b. Recommendations, if any, that the general assembly 130 18 should consider to increase the effectiveness of competition 130 19 in the markets for all competitive electric services. 130 20 2. On or before January 10, 2005, the consumer advocate 130 21 shall provide a written report to the general assembly that 130 22 sets forth the consumer advocate's conclusions regarding the 130 23 effectiveness of competition in the market for competitive 130 24 electric services. The report may include any recommendations 130 25 which the consumer advocate believes the general assembly 130 26 should consider in light of the conclusions. 130 27 Sec. 26. NEW SECTION. 28F.15 POWERS – CONFLICTING 130 28 PROVISIONS. 130 29 In addition to the powers conferred elsewhere in this 130 30 chapter, an electric power agency may exercise all other 130 31 powers reasonably necessary or appropriate for or incidental 130 32 to the effectuation of its authorized purposes including 130 33 without limitation, the powers enumerated in chapters 6A and 130 34 6B for purposes of constructing or acquiring electric power 130 35 facilities within this state. The failure of a city to comply 131 1 with requirements of section 28F.1, relating to joining an 131 2 electric power agency for the purpose of financing electric 131 3 power facilities, shall not limit the ability of that electric 131 4 power agency to jointly finance open access transmission 131 5 facilities pursuant to this subchapter. An electric power 131 6 agency may exercise in connection with its property and 131 7 affairs, and in connection with property within its control, 131 8 any and all powers which might be exercised by a natural 131 9 person or a private corporation in connection with similar 131 10 property and affairs. The enumeration of specific powers and 131 11 functions in this subchapter is not a limitation of the powers 131 12 of a public agency or an electric power agency as otherwise 131 13 provided by law. For purposes of this subchapter, open access 131 14 transmission facilities are those available for use by others 131 15 in a manner comparable to the use of transmission facilities 131 16 of a public utility subject to the federal Power Act. 131 17 Sec. 27. NEW SECTION. 28F.16 ISSUANCE OF BONDS AND NOTES 131 18 – PURPOSES. 131 19 An electric power agency may from time to time issue its 131 20 bonds or notes in such principal amounts as the electric power 131 21 agency deems necessary to provide sufficient funds to carry 131 22 out the following corporate purposes and powers: 131 23 1. The construction of open access transmission facilities 131 24 to be owned or leased by the electric power agency, or the 131 25 acquisition of any interest or any right to capacity in such 131 26 facilities constructed on or after July 1, 1999. 131 27 2. The funding or refunding of the principal of, or 131 28 interest or redemption premiums on, any bonds or notes issued 131 29 by the electric power agency whether or not the bonds or notes 131 30 or interest to be funded or refunded has become due. 131 31 3. The establishment or increase of reserves to secure or 131 32 to pay the bonds or notes, or interest on such bonds or notes. 131 33 4. The payment of all other costs or expenses of the 131 34 electric power agency incident to and necessary to carry out 131 35 the foregoing corporate purposes and powers. 132 1 Sec. 28. NEW SECTION. 28F.17 BONDS AND NOTES AUTHORIZED 132 2 BY RESOLUTION OF BOARD – TERMS. 132 3 1. Bonds or notes of an electric power agency shall be 132 4 authorized by resolution of its board of directors and may be 132 5 issued under the resolution or under a trust indenture or 132 6 other security agreement, in one or more series, which shall 132 7 include all of the following: 132 8 a. Date of issue. 132 9 b. Date of maturity. 132 10 c. Rate of interest. 132 11 d. Amount of denomination. 132 12 2. The terms and conditions in the resolution, trust 132 13 indenture, or other security agreement shall provide for all 132 14 of the following: 132 15 a. The form of the bond or note, either coupon or 132 16 registered. 132 17 b. Conversion, registration, and exchange privileges. 132 18 c. Rank or priority. 132 19 d. Execution requirements. 132 20 e. Medium and place of payment. 132 21 f. Terms of redemption with or without premium. 132 22 g. Such other terms and conditions as the resolution, 132 23 trust indenture, or other security agreement may provide. 132 24 3. Bonds and notes issued pursuant to this subchapter 132 25 shall not be restricted by any other law limiting the amounts, 132 26 maturities, interest rates, or other terms of obligation of 132 27 public agencies or private persons. Chapter 75 shall not 132 28 apply to such bonds or notes. 132 29 Sec. 29. NEW SECTION. 28F.18 BONDS AND NOTES PAYABLE 132 30 SOLELY FROM AGENCY REVENUES OR FUNDS. 132 31 The principal of and interest upon any bonds or notes 132 32 issued by an electric power agency shall be payable solely 132 33 from the revenues or funds pledged or available for their 132 34 payment as authorized in this subchapter. Each bond and note 132 35 shall contain a statement that the principal or interest 133 1 associated with such bond or note is payable solely from 133 2 revenues or funds of the electric power agency, and that the 133 3 state, any political subdivision of the state other than the 133 4 electric power agency, or any public agency which is a member 133 5 of the electric power agency is not obligated to pay the 133 6 principal or interest and that the full faith and credit or 133 7 the taxing power of the state, any political subdivision of 133 8 the state, or any such public agency is not pledged to the 133 9 payment of the principal of or the interest on the bonds or 133 10 notes. 133 11 Sec. 30. NEW SECTION. 28F.19 BONDS AND NOTES – TYPES – 133 12 SOURCES FOR PAYMENT – SECURITY. 133 13 Except as may be otherwise expressly provided by this 133 14 subchapter or by the electric power agency, every issue of 133 15 bonds or notes of the electric power agency shall be payable 133 16 out of any revenues or funds of the electric power agency, 133 17 subject only to any agreements with the holders of particular 133 18 bonds or notes pledging any particular revenues or funds. An 133 19 electric power agency may issue types of bonds or notes as it 133 20 may determine, including bonds or notes as to which the 133 21 principal and interest are payable exclusively from the 133 22 revenues from one or more projects, or from an interest in 133 23 such projects or a right to capacity of such projects, or from 133 24 one or more revenue-producing contracts made by the electric 133 25 power agency with any person, or from its revenues generally. 133 26 Any bonds or notes may be additionally secured by a pledge of 133 27 any grant, subsidy, or contribution from any public agency or 133 28 other person, or a pledge of any income or revenues, funds, or 133 29 moneys of the electric power agency from any source 133 30 whatsoever. 133 31 Sec. 31. NEW SECTION. 28F.20 BONDS, NOTES, AND RATES FOR 133 32 DEBT SERVICE NOT SUBJECT TO STATE APPROVAL. 133 33 Bonds or notes of an electric power agency may be issued 133 34 under this subchapter, and rents, rates, and charges may be 133 35 established pursuant to section 28F.5 and pledged for the 134 1 security of bonds or notes, and interest and redemption 134 2 premiums on such bonds or notes, without obtaining the consent 134 3 of any department, division, commission, board, bureau, or 134 4 agency of the state and without any other proceeding or the 134 5 happening of any other condition or occurrence except as 134 6 specifically required by this subchapter. 134 7 Sec. 32. NEW SECTION. 28F.21 BONDS AND NOTES TO BE 134 8 NEGOTIABLE. 134 9 All bonds and notes of an electric power agency shall be 134 10 negotiable within the meaning and for all the purposes of the 134 11 uniform commercial code, subject only to any registration 134 12 requirement. 134 13 Sec. 33. NEW SECTION. 28F.22 VALIDITY OF BONDS AND NOTES 134 14 AT DELIVERY – TEMPORARY BONDS. 134 15 Any bonds or notes may be issued and delivered, 134 16 notwithstanding that one or more of the officers executing 134 17 them shall have ceased to hold office at the time when the 134 18 bonds or notes are actually delivered. Pending preparation of 134 19 definitive bonds, an electric power agency may issue temporary 134 20 bonds which shall be exchanged for the definitive bonds. 134 21 Sec. 34. NEW SECTION. 28F.23 PUBLIC OR PRIVATE SALE OF 134 22 BONDS AND NOTES. 134 23 Bonds or notes of an electric power agency may be sold at 134 24 public or private sale for a price and in a manner as 134 25 determined by the agency. 134 26 Sec. 35. NEW SECTION. 28F.24 BONDS AND NOTES SUITABLE 134 27 INVESTMENTS FOR GOVERNMENTAL UNITS, FINANCIAL INSTITUTIONS, 134 28 AND FIDUCIARIES. 134 29 A bank, trust company, savings bank, building and loan 134 30 association, savings and loan association, credit union, 134 31 investment company, insurance company, insurance association, 134 32 executor, guardian, trustee, and other fiduciaries responsible 134 33 for the investment of funds, may legally invest any debt 134 34 service funds, money, or other funds belonging to them or 134 35 within their control in any bonds or notes issued pursuant to 135 1 this subchapter, and the bonds or notes shall be authorized 135 2 security for any and all public deposits. 135 3 Sec. 36. NEW SECTION. 28F.25 RESOLUTION, TRUST 135 4 INDENTURE, OR SECURITY AGREEMENT CONSTITUTES CONTRACT – 135 5 PROVISIONS. 135 6 1. The resolution, trust indenture, or other security 135 7 agreement under which any bonds or notes are issued shall 135 8 constitute a contract with the holders of the bonds or notes, 135 9 and may contain provisions, among others, prescribing any of 135 10 the following: 135 11 a. The terms and provisions of the bonds or notes. 135 12 b. The mortgage or pledge of and the grant of a security 135 13 interest in any real or personal property and all or any part 135 14 of the revenue from any project or any revenue-producing 135 15 contract made by the electric power agency with any person to 135 16 secure the payment of bonds or notes, subject to any 135 17 agreements with the holders of bonds or notes which might then 135 18 exist. 135 19 c. The custody, collection, securing, investment, and 135 20 payment of any revenues, assets, money, funds, or property 135 21 with respect to which the electric power agency may have any 135 22 rights or interest. 135 23 d. The rates or charges for electric energy sold by, or 135 24 services rendered by, the electric power agency, the amount to 135 25 be raised by the rates or charges, and the use and disposition 135 26 of any or all revenue. 135 27 e. The creation of reserves or debt service funds and the 135 28 regulation and disposition of such reserves or funds. 135 29 f. The purposes to which the proceeds from the sale of any 135 30 bonds or notes to be issued may be applied, and the pledge of 135 31 the proceeds to secure the payment of the bonds or notes. 135 32 g. Limitations on the issuance of any additional bonds or 135 33 notes, the terms upon which additional bonds or notes may be 135 34 issued and secured, and the refunding of outstanding bonds or 135 35 notes. 136 1 h. The rank or priority of any bonds or notes with respect 136 2 to any lien or security. 136 3 i. The creation of special funds or moneys to be held in 136 4 trust or otherwise for operating expenses, payment, or 136 5 redemption of bonds or notes, reserves or other purposes, and 136 6 the use and disposition of moneys held in these funds. 136 7 j. The procedure by which the terms of any contract with 136 8 or for the benefit of the holders of bonds or notes may be 136 9 amended or abrogated, the amount of bonds or notes the holders 136 10 of which must consent to such amendment or abrogation, and the 136 11 manner in which consent may be given. 136 12 k. The definition of the acts or omissions to act which 136 13 shall constitute a default in the duties of the electric power 136 14 agency to holders of its bonds or notes, and the rights and 136 15 remedies of the holders in the event of default including, if 136 16 the electric power agency so determines, the right to 136 17 accelerate the due date of the bonds or notes or the right to 136 18 appoint a receiver of the property or revenues subject to the 136 19 lien of the resolution, trust indenture, or other security 136 20 agreement. 136 21 l. Any other or additional agreements with or for the 136 22 benefit of the holders of bonds or notes or any covenants or 136 23 restrictions necessary or desirable to safeguard the interests 136 24 of the holders. 136 25 m. The custody of any of its properties or investments, 136 26 the safekeeping of such properties or investments, the 136 27 insurance to be carried on such properties or investments, and 136 28 the use and disposition of insurance proceeds. 136 29 n. The vesting in a trustee, within or outside the state, 136 30 of such properties, rights, powers, and duties in trust as the 136 31 electric power agency may determine; or the limiting or 136 32 abrogating of the rights of the holders of any bonds or notes 136 33 to appoint a trustee, or the limiting of the rights, powers, 136 34 and duties of such trustee. 136 35 o. The appointment of, and the establishment of the duties 137 1 and obligations of, any paying agent or other fiduciary within 137 2 or outside the state. 137 3 Sec. 37. NEW SECTION. 28F.26 MORTGAGE OR TRUST DEED TO 137 4 SECURE BONDS. 137 5 For the security of bonds or notes issued, or to be issued, 137 6 by an electric power agency, the electric power agency may 137 7 mortgage or execute deeds of trust of the whole or any part of 137 8 its property. 137 9 Sec. 38. NEW SECTION. 28F.27 NO PERSONAL LIABILITY ON 137 10 BONDS OR NOTES. 137 11 An official, director, or member of an electric power 137 12 agency, or any person executing bonds or notes pursuant to 137 13 this subchapter shall not be liable personally on the bonds or 137 14 notes or be subject to any personal liability or 137 15 accountability by reason of the issuance of such bonds or 137 16 notes. 137 17 Sec. 39. NEW SECTION. 28F.28 REPURCHASE OF SECURITIES. 137 18 An electric power agency may purchase, out of any funds 137 19 available for such purchase, bonds or notes, and may hold, 137 20 pledge, cancel, or resell the bonds or notes, subject to and 137 21 in accordance with any agreements with the holders. 137 22 Sec. 40. NEW SECTION. 28F.29 PLEDGE OF REVENUE AS 137 23 SECURITY. 137 24 An electric power agency may pledge its rates, rents, and 137 25 other revenues, or any part of such rates, rents, or other 137 26 revenues, as security for the repayment, with interest and 137 27 redemption premiums, if any, of the moneys borrowed by it or 137 28 advanced to it for any of its authorized purposes and as 137 29 security for the payment of amounts due and owed by it under 137 30 any contract. 137 31 Sec. 41. Section 384.24, subsection 4, Code 1999, is 137 32 amended by adding the following new paragraph: 137 33 NEW PARAGRAPH. j. The acquisition of competitive electric 137 34 services, as defined in chapter 476B, to meet the demands of 137 35 city residents. 138 1 Sec. 42. Section 384.84, subsection 1, Code Supplement 138 2 1999, is amended to read as follows: 138 3 1. The governing body of a city utility, combined utility 138 4 system, city enterprise, or combined city enterprise may 138 5 establish, impose, adjust, and provide for the collection of 138 6 rates and charges to produce gross revenues at least 138 7 sufficient to pay the expenses of operation and maintenance of 138 8 the city utility, combined utility system, city enterprise, or 138 9 combined city enterprise. When revenue bonds or pledge orders 138 10 are issued and outstanding pursuant to this division, the 138 11 governing body shall establish, impose, adjust, and provide 138 12 for the collection of rates to produce gross revenues at least 138 13 sufficient to pay the expenses of operation and maintenance of 138 14 the city utility, combined utility system, city enterprise, or 138 15 combined city enterprise, and to leave a balance of net 138 16 revenues sufficient to pay the principal of and interest on 138 17 the revenue bonds and pledge orders as they become due and to 138 18 maintain a reasonable reserve for the payment of principal and 138 19 interest, and a sufficient portion of net revenues must be 138 20 pledged for that purpose. Rates must be established by 138 21 ordinance of the council or by resolution of the trustees, 138 22 published in the same manner as an ordinance. However, prices 138 23 for electric services subject to direct competition under 138 24 chapter 476B may be changed in accordance with a policy that 138 25 has been adopted in the same manner as rates. 138 26 Sec. 43. Section 388.6, Code 1999, is amended to read as 138 27 follows: 138 28 388.6 DISCRIMINATION IN RATES. 138 29 A city utility or a combined utility system may not provide 138 30 use or service at a discriminatory rate, except to the city or 138 31 its agencies, as provided in section 384.91. However, the 138 32 pricing of competitive electric services, as defined in 138 33 section 476B.3, at market rates is not prohibited. 138 34 Sec. 44. Section 474.9, Code 1999, is amended by striking 138 35 the section and inserting in lieu thereof the following: 139 1 474.9 GENERAL JURISDICTION OF UTILITIES BOARD. 139 2 1. The board shall have broad general powers to effect the 139 3 purposes of this chapter and chapters 476, 476A, 476B, 478, 139 4 479, 479A, and 479B. The board may issue subpoenas and pay 139 5 the same fees and mileage as are payable to witnesses in the 139 6 courts of record of general jurisdiction. The board shall 139 7 adopt rules pursuant to chapter 17A to govern the exercise of 139 8 its powers and duties, the practice and procedure before it, 139 9 and to govern the form, contents, and filing of reports, 139 10 documents, and other papers as required. 139 11 2. The board shall employ at rates of compensation 139 12 consistent with current standards in industry, such 139 13 professionally trained economists, engineers, accountants, 139 14 attorneys, and skilled examiners and inspectors, secretaries, 139 15 clerks, and other employees as it may find necessary for the 139 16 full and efficient discharge of its duties and 139 17 responsibilities as required by this chapter and chapters 476, 139 18 476A, 476B, 478, 479, 479A, and 479B. 139 19 3. The board may intervene in any proceedings before the 139 20 federal energy regulatory commission or any other federal or 139 21 state regulatory body when it finds that any decision of the 139 22 commission would adversely affect the costs of regulated or 139 23 competitive utility services within this state. 139 24 4. The board shall have authority to inquire into the 139 25 management of the business of all public utilities and 139 26 delivery service providers that are electric companies, and 139 27 shall keep itself informed as to the manner and method in 139 28 which the same is conducted, and may obtain from any public 139 29 utility or delivery service provider all necessary information 139 30 to enable the board to perform its duties. 139 31 5. To the maximum extent fair and equitable, the board 139 32 shall directly charge its expenses and those of the consumer 139 33 advocate to the person causing the board or consumer advocate 139 34 to incur those expenses in accomplishing the purposes of the 139 35 board. No part of such expenses shall be charged to persons, 140 1 who without expanding the scope of the proceeding, intervene 140 2 in good faith in a board proceeding initiated by an entity 140 3 subject to the board's rate and licensing jurisdiction, the 140 4 consumer advocate, or the board on its own motion. For 140 5 allocations in complaint proceedings, the board may consider 140 6 the financial resources of the parties and the contribution to 140 7 the public interest. 140 8 6. a. In order to carry out the duties imposed upon it by 140 9 law, the board may allocate the expenses attributable to such 140 10 duties to the parties to proceedings before the board or to 140 11 persons participating in other matters before the board. The 140 12 board shall ascertain the certified expenses incurred by the 140 13 consumer advocate division of the department of justice in the 140 14 performance of its duties under the law and may allocate those 140 15 expenses that are directly chargeable. 140 16 b. The board shall ascertain the total of the division's 140 17 expenditures during each year that is reasonably attributable 140 18 to the performance of its duties under the law. The board 140 19 shall add to this total the certified expenses of the consumer 140 20 advocate as provided under section 475A.6 and shall deduct all 140 21 amounts chargeable directly to any person under any law. The 140 22 remainder may be assessed by the board to all entities 140 23 providing service over which the board has jurisdiction. The 140 24 assessment shall be in proportion to the respective gross 140 25 operating revenues of such entities during the last calendar 140 26 year from intrastate operations over which the board has 140 27 jurisdiction. The board shall not assess the same transaction 140 28 twice. If any portion of the remainder can be identified with 140 29 a specific type of utility service, the board may allocate 140 30 those expenses to the corresponding entities over which the 140 31 board has jurisdiction. Assessments may be made quarterly 140 32 based upon estimates of the expenditures for the fiscal year 140 33 of the utilities division and the consumer advocate. Not more 140 34 than ninety days following the close of the fiscal year, the 140 35 utilities division shall conform the amount of the prior 141 1 fiscal year's assessments to the requirements of this section. 141 2 The total amount that may be assessed to an entity under 141 3 authority of this paragraph shall not exceed six-tenths of one 141 4 percent of the total gross operating revenues during the 141 5 calendar year derived from intrastate operations over which 141 6 the board has jurisdiction. For public utilities exempted 141 7 from board rate regulation pursuant to chapter 476 and 141 8 delivery service providers that are incumbent provider 141 9 consumer-owned utilities pursuant to chapter 476B, the 141 10 assessments under this paragraph shall be computed at one-half 141 11 the rate used in computing the assessment for other utilities 141 12 and delivery service providers that are electric companies. 141 13 c. A person subject to assessment shall pay the division 141 14 the amount assessed against it within thirty days from the 141 15 time the division mails notice to it of the amount due unless 141 16 it shall file with the board objections in writing setting out 141 17 the grounds upon which it claims that such assessment is 141 18 excessive, erroneous, unlawful, or invalid. Upon the filing 141 19 of such objections the board shall set the matter down for 141 20 hearing and issue its order in accordance with its findings in 141 21 such proceeding, which order shall be subject to review as 141 22 provided in this chapter. All amounts collected by the 141 23 division pursuant to this section shall be deposited with the 141 24 treasurer of state and credited to the general fund of the 141 25 state. 141 26 d. Whenever the board deems it necessary in order to carry 141 27 out the duties imposed by law, the board may expend additional 141 28 sums beyond those sums appropriated. However, the authority 141 29 to add additional personnel or contract for additional 141 30 assistance must first be approved by the director of the 141 31 department of management. The costs of any additional 141 32 employees and contract services shall be assessed and paid in 141 33 the same manner as other expenses are paid under this section. 141 34 There is appropriated out of any funds in the state treasury 141 35 not otherwise appropriated, such sums as may be necessary to 142 1 enable the board to hire additional staff and contract for 142 2 services under this section. The authority to hire additional 142 3 temporary or permanent staff that is granted to the board by 142 4 this section shall not be subject to limitation by an 142 5 administrative or executive order or decision that restricts 142 6 the number of state employees or the filling of employee 142 7 vacancies, and shall not be subject to limitation by any law 142 8 of this state that restricts the number of state employees or 142 9 the filling of employee vacancies unless that law is made 142 10 applicable by express reference to this section. Fees paid to 142 11 the utilities division shall be deposited in the general fund 142 12 of the state. These funds, upon appropriation by the general 142 13 assembly, shall be used for payment of the expenses of the 142 14 utilities division and the consumer advocate division. 142 15 Subject to this section, the utilities division or the 142 16 consumer advocate division may keep on hand with the treasurer 142 17 of state funds in excess of the current needs of the utilities 142 18 division or the consumer advocate division. 142 19 e. The administrator and consumer advocate shall account 142 20 for receipts and disbursements according to the separate 142 21 duties imposed upon the utilities division and the consumer 142 22 advocate division by the laws of this state and each separate 142 23 duty shall be fiscally self-sustaining. 142 24 f. All fees and other moneys collected under this section 142 25 shall be deposited into the general fund of the state and 142 26 expenses required to be paid under this section shall be paid 142 27 from funds appropriated for those purposes. Moneys deposited 142 28 into the general fund of the state pursuant to this section 142 29 shall be used in accordance with section 8.60. 142 30 Sec. 45. Section 476.1, subsection 1, Code 1999, is 142 31 amended to read as follows: 142 32 1. Furnishing gas by piped distribution systemor142 33electricityto the public for compensation. 142 34 Sec. 46. Section 476.1, Code 1999, is amended by adding 142 35 the following new subsection: 143 1 NEW SUBSECTION. 4. Furnishing electricity to the public 143 2 for compensation, except to the extent inconsistent with 143 3 chapter 476B, as follows: 143 4 a. (1) Until May 1, 2002, for an electric company, as 143 5 defined in section 476B.3. 143 6 (2) Until the date selected by the governing body of each 143 7 consumer-owned utility, as defined in section 476B.3. 143 8 b. Except as provided in paragraph "c", after the dates 143 9 specified in paragraph "a", an electric company and a 143 10 consumer-owned utility, as so defined, shall not be subject to 143 11 this chapter. 143 12 c. The dates specified in paragraph "a" shall be adjusted, 143 13 if necessary, consistent with an action of the board 143 14 suspending the dates for commencement of the option to choose 143 15 competitive electric services pursuant to section 476B.7, 143 16 subsection 4. 143 17 Sec. 47. Section 476A.6, Code 1999, is amended to read as 143 18 follows: 143 19 476A.6 DECISION – CRITERIA. 143 20 The board shall render a decision on the application in an 143 21 expeditious manner. A certificate shall be issued to the 143 22 applicant if the board findsallboth of the following: 143 231. The services and operations resulting from the143 24construction of the facility are required by the present or143 25future public convenience, use and necessity.143 262.1. The applicant is willing to perform such services 143 27 and construct, maintain, and operate the facility pursuant to 143 28 the provisions of the certificate and this chapter. 143 293.2. The construction, maintenance, and operation of the 143 30 facility will cause minimum adverse land use, environmental, 143 31 and aesthetic impact and are consonant with reasonable 143 32 utilization of air, land, and water resourcesfor beneficial143 33purposes considering available technology and the economics of143 34available alternatives. 143 354. The applicant, if a public utility as defined in144 1section 476.1, has in effect a comprehensive energy management144 2program designed to reduce peak loads and to increase144 3efficiency of use of energy by all classes of customers of the144 4utility, and the facility in the application is necessary144 5notwithstanding the existence of the comprehensive energy144 6management program. As used in this subsection, a144 7"comprehensive energy management program" includes at a144 8minimum the following:144 9a. Establishment of load management and interruptible144 10service programs, where cost effective.144 11b. Development of wheeling agreements and other energy144 12sharing agreements, where cost effective with utilities that144 13have available capacity.144 14c. Establishment of cost-effective energy efficiency and144 15renewable energy services and programs.144 16d. Compliance with board rules on energy management144 17procedures.144 185. The applicant, if a public utility as defined in144 19section 476.1, shall demonstrate to the board that the utility144 20has considered sources for long-term electric supply from144 21either purchase of electricity or investment in facilities144 22owned by other persons.144 236. The applicant, if a public utility as defined in144 24section 476.1, has considered all feasible alternatives to the144 25proposed facility including nongeneration alternatives; has144 26ranked those alternatives by cost; has implemented the least-144 27cost alternatives first; and the facility in the application144 28is necessary notwithstanding the implementation of these144 29alternatives.144 30 Sec. 48. Section 476A.7, subsection 1, paragraph b, Code 144 31 1999, is amended to read as follows: 144 32 b.GivesTo the extent the applicant proves the location 144 33 of generation at the site is required to maintain or enhance 144 34 the reliability of the delivery system serving the public, 144 35 gives the applicant the power of eminent domainto the extent145 1andunder such conditions as the board may approve, prescribe, 145 2 and find necessaryfor the public convenience, use and145 3necessity,proceeding in the manner of works of internal 145 4 improvement under chapter 6B. The burden of proving the 145 5 necessity for the exercise of the power of eminent domain 145 6 shall be on the personissuedseeking the certificate. 145 7 Sec. 49. Section 476A.15, Code 1999, is amended to read as 145 8 follows: 145 9 476A.15 WAIVER. 145 10 The board, if it determines that the public interest would 145 11 not be adversely affected, may waive any of the requirements 145 12 of this chapterfor facilities with a capacity of one hundred145 13or fewer megawatts. 145 14 Sec. 50. Section 478.3, subsection 1, paragraph h, Code 145 15 1999, is amended to read as follows: 145 16 h. An allegation that the proposed construction is 145 17 necessary to serve a public use. This allegation may be 145 18 satisfied by the filing of an order of the federal energy 145 19 regulatory commission or its successor directing that the 145 20 project be constructed. 145 21 Sec. 51. NEW SECTION. 478.34 RELATIONSHIP TO COMPETITIVE 145 22 SERVICES. 145 23 The rights and powers conferred under this chapter, 145 24 including the right of eminent domain, shall be interpreted 145 25 and exercised in a manner consistent with the provisions of 145 26 chapter 476B. 145 27 Sec. 52. Section 499.14A, Code 1999, is amended to read as 145 28 follows: 145 29 499.14A ELECTRIC COOPERATIVE ASSOCIATION MEMBERSHIPS. 145 30 An electricgeneration and transmissioncooperative 145 31 association may have one or more classes of members. 145 32 Qualifications, requirements, methods of acceptance, terms, 145 33 conditions, termination, and other incidents of membership 145 34 shall be set forth in the bylaws of the association.An145 35electric utility as defined in section 476.22 and a person who146 1generates or transmits electric power for sale at wholesale to146 2an electric utility may become a member in accordance with the146 3bylaws.146 4 Sec. 53. Section 499.30, subsection 5, Code 1999, is 146 5 amended to read as follows: 146 6 5. Notwithstanding an association's articles of 146 7 incorporation, for each taxable year of the association, the 146 8 association shall allocate all remaining net earnings to the 146 9 account of each member, including subscribers described in 146 10 section 499.16, ratably in proportion to the business the 146 11 member did with the association during that year. The 146 12 directors shall determine, or the articles of incorporation or 146 13 bylaws of the association may specify, the percentage or the 146 14 amount of the allocation to be currently paid in cash. 146 15 However, for a cooperative association, other than an electric 146 16 cooperative associationother than a public utility as defined146 17in section 476.1, the amount to be currently payable in cash 146 18 shall not exceed twenty percent of the allocation during any 146 19 period when unpaid local deferred patronage dividends of 146 20 deceased members for prior years are outstanding. 146 21 Notwithstanding the twenty percent allocation limitation, the 146 22 directors of a cooperative association or the articles of 146 23 incorporation or bylaws of the association may specify any 146 24 percentage or amount to be currently paid in cash to the 146 25 estates of deceased natural persons who were members. All the 146 26 remaining allocation not paid in cash shall be transferred to 146 27 a revolving fund as provided in section 499.33 and credited to 146 28 the members and subscribers. The credits in the revolving 146 29 fund are referred to in this chapter as deferred patronage 146 30 dividends. 146 31 Sec. 54. Section 499.33, subsection 2, paragraphs a and b, 146 32 Code 1999, are amended to read as follows: 146 33 a. Prior to other payments of deferred patronage dividends 146 34 or redemption of preferred stock held by members, the 146 35 directors of a cooperative association, other thanaan 147 1 electric cooperative associationwhich is a public utility as147 2defined in section 476.1, shall pay local deferred patronage 147 3 dividends and redeem local deferred patronage preferred stock 147 4 of deceased natural persons who were members, and may pay 147 5 deferred patronage dividends or may redeem preferred stock of 147 6 deceased natural persons who were members or of members who 147 7 become ineligible, without reference to the order of priority. 147 8 b. The directors ofaan electric cooperative association 147 9which is a public utility as defined in section 476.1may pay 147 10 deferred patronage dividends and redeem preferred stock of 147 11 deceased natural persons who were members, and may pay all 147 12 other deferred patronage dividends or redeem preferred stock 147 13 of members without reference to priority. 147 14 Sec. 55. STATUTORY CONSTRUCTION. This Act shall not be 147 15 construed to invalidate any proceedings under statutes 147 16 existing prior to the effective date of this Act. 147 17 Additionally, this Act shall not affect any action, 147 18 litigation, or appeal pending prior to the effective date of 147 19 this Act. 147 20 Sec. 56. DIRECTIONS TO CODE EDITOR. The Code editor shall 147 21 codify sections 28F.15 through 28F.29, as enacted in this Act, 147 22 as a separate subchapter of chapter 28F. 147 23 Sec. 57. EFFECTIVE DATE. This Act takes effect on June 1, 147 24 2000. 147 25 EXPLANATION 147 26 This bill creates new Code chapter 476B, which provides for 147 27 restructuring of portions of the electric utility industry and 147 28 related matters. Generally, the bill provides that all 147 29 consumers will be given the option to choose an electric 147 30 supplier at some future date as determined in the bill. 147 31 New Code section 476B.1 establishes the title of the 147 32 chapter as the "Electric Choice and Competition Act". 147 33 New Code section 476B.2 sets forth legislative findings 147 34 concerning restructuring. 147 35 New Code section 476B.3 establishes definitions for key 148 1 terms used in the new Code chapter. 148 2 New Code section 476B.4 provides for the unbundling of 148 3 rates and charges by electric companies and consumer-owned 148 4 utilities (electric cooperatives and municipal utilities). 148 5 The bill directs the electric companies and consumer-owned 148 6 utilities to post such rates and charges on the utilities 148 7 board's website. The section also provides for the posting of 148 8 all tariffs for transmission service and ancillary services 148 9 applicable to competitive electric service provider and end- 148 10 use consumer transactions by delivery service providers 148 11 providing transmission service and by control area operators. 148 12 New Code section 476B.5 provides that within 90 days of the 148 13 effective date of new Code chapter 476B, the board is to 148 14 convene a meeting of persons interested in participating in 148 15 the development of a consumer education program. Such 148 16 education program is to consist of two steps including message 148 17 development and message dissemination. The board is to 148 18 determine the method of message dissemination for electric 148 19 companies, and each local governing body is to determine the 148 20 method of message dissemination for consumer-owned utilities. 148 21 The bill provides that the total cost of message development 148 22 and dissemination shall not exceed $6 million. The program is 148 23 to be funded through the imposition of a nonbypassable charge 148 24 on bills issued for electric service, with collection to be 148 25 completed by May 1, 2002. 148 26 New Code section 476B.6 establishes consumer protections, 148 27 as well as defining the rights of consumers with respect to 148 28 competitive electric services. The section prohibits a person 148 29 from providing or offering to provide competitive electric 148 30 services to an end-use consumer, or from aggregating end-use 148 31 consumers for the acquisition of competitive electric services 148 32 without first obtaining a license from the board. The section 148 33 authorizes the board to adopt rules to require a competitive 148 34 electric service provider to disclose to residential end-use 148 35 consumers information regarding service prices, terms, and 149 1 conditions. The board is authorized to adopt additional 149 2 licensing requirements regarding adequate notice to end-use 149 3 consumers prior to automatic contract renewal; circumstances 149 4 under which an end-use consumer has the right to terminate a 149 5 competitive electric service contract; and other reasonable 149 6 conditions or restrictions on a license. The board is 149 7 directed to maintain, and make available upon request, a list 149 8 of all licensed providers of competitive electric services. 149 9 The bill exempts from the licensing requirement an incumbent 149 10 provider that is a consumer-owned utility who chooses to 149 11 provide competitive electric services only within its assigned 149 12 service area. 149 13 The section provides that an end-use consumer shall have 149 14 access to competitive electric services and regulated delivery 149 15 services as provided in the new Code chapter. The section 149 16 sets forth rights of consumers under the bill. 149 17 New Code section 476B.7 provides that an end-use consumer 149 18 located in the assigned service area of an electric company 149 19 will have the option to choose competitive electric services 149 20 from competitive electric service providers and unbundled 149 21 delivery services from the delivery service provider beginning 149 22 on May 1, 2002. An end-use consumer located in the assigned 149 23 service area of a consumer-owned utility will have the option 149 24 to choose such services on a date as determined by the 149 25 consumer-owned utility's local governing body, but in no event 149 26 prior to May 1, 2002, or after October 1, 2002. The section 149 27 provides that the board may suspend the dates for commencement 149 28 of the option to choose if the board determines that essential 149 29 deadlines cannot reasonably be met or there is a threat to 149 30 service reliability or the public safety. 149 31 New Code section 476B.8 provides for standard offer 149 32 service. Standard offer service will be available for 149 33 nonresidential end-use consumers that purchased fewer than 149 34 25,000 kilowatt-hours of electric service in 2001 and 149 35 subsequent calendar years and residential end-use consumers 150 1 who do not chose a competitive electric service provider. The 150 2 service will be provided by the incumbent provider and shall 150 3 be regulated. Such service shall continue until the earlier 150 4 of the end-use consumer making a choice of competitive 150 5 electric service, the end-use consumer no longer qualifies to 150 6 receive standard offer service, or January 1, 2006. 150 7 Termination of standard offer service on January 1, 2006, is 150 8 conditioned upon the board making certain findings. The 150 9 section provides for transitional service for certain end-use 150 10 consumers and for universal service protections and provides 150 11 that low-income consumers receiving universal service are 150 12 protected from disconnection of service from November 1 150 13 through April 1. 150 14 New Code section 476B.9 sets forth the responsibilities and 150 15 rights of delivery service providers. A delivery service 150 16 provider is required to provide safe, reliable, and prompt 150 17 delivery services and facilities. The board is given general 150 18 oversight responsibility for delivery service safety 150 19 requirements and inspection and maintenance activities for all 150 20 delivery service providers. The section provides that 150 21 unbundled delivery service must be provided on a 150 22 nondiscriminatory and comparable service basis. The section 150 23 provides that an incumbent provider and a delivery service 150 24 provider do not have any obligation to provide competitive 150 25 electric services to an end-use consumer that has an option to 150 26 choose competitive electric services. The section also 150 27 provides for assigned service areas for delivery service 150 28 providers, certificates of authority to furnish delivery 150 29 service to end-use consumers already receiving delivery 150 30 service; the obligation to extend delivery service facilities; 150 31 delivery service rate regulation; and rate complaints filed by 150 32 the consumer advocate. The section also provides that a 150 33 delivery service provider that is an electric company shall 150 34 not directly or indirectly include in distribution service 150 35 rates or charges any costs or expenses attributable to the 151 1 sale, lease, or other conveyance of commercial and residential 151 2 electric appliances, interior lighting systems or fixtures, or 151 3 electric heating, ventilating, or air conditioning systems and 151 4 component parts, or the servicing, repair, or maintenance of 151 5 such equipment. 151 6 New Code section 476B.10 sets forth the responsibilities 151 7 and rights of competitive electric service providers. 151 8 New Code section 476B.11 provides that a delivery service 151 9 provider shall install, own, and maintain metering as deemed 151 10 necessary by the delivery service provider. The section also 151 11 provides that an end-use consumer may install metering not 151 12 owned by the delivery service provider on the consumer's side 151 13 of the main disconnect, subject to reasonable connection 151 14 requirements of the delivery service provider and board rules. 151 15 New Code section 476B.12 sets forth billing requirements 151 16 associated with electric services. The section provides that 151 17 an end-use consumer is entitled to request a single 151 18 consolidated bill for competitive electric services, delivery 151 19 services, and control area services. Unless otherwise agreed 151 20 by the affected service providers, such consolidated billing 151 21 is the responsibility of the competitive electric service 151 22 provider selling competitive billing services. 151 23 New Code section 476B.13 sets forth the low-income 151 24 affordability and energy efficiency programs. These programs 151 25 are to be administered by the division of community action 151 26 agencies within the department of human rights. 151 27 New Code section 476B.14 provides that a competitive 151 28 electric service provider, a delivery service provider, and a 151 29 control area operator must develop and post on the board's 151 30 website the procedures for filing a complaint regarding their 151 31 services and operations. The board is authorized to hear all 151 32 complaints. 151 33 New Code section 476B.15 provides for the imposition and 151 34 collection of transition charges. Such charges are for the 151 35 purpose of allowing electric companies to recover a portion of 152 1 their transition costs associated with electric generation. 152 2 Transition charges are to be billed commencing with service 152 3 rendered on May 1, 2002, and concluding with service rendered 152 4 on December 31, 2005. The section also provides that the 152 5 board may permit, but not require, an incumbent provider that 152 6 is an electric company to divest itself of its generation 152 7 assets and contracts for power and energy. 152 8 New Code section 476B.16 provides for the decommissioning 152 9 of nuclear generating facilities and the recovery of costs 152 10 associated with such decommissioning. 152 11 New Code section 476B.17 provides for securitization, or 152 12 the issuance of transitional funding instruments. The board 152 13 is authorized to issue transitional funding orders which 152 14 create intangible transition property in favor of an incumbent 152 15 provider or grantee representing the right to impose and 152 16 collect instrument funding charges necessary to pay the 152 17 principal and interest on the transitional funding 152 18 instruments. The section establishes the permissible uses of 152 19 the proceeds from such instruments. Such instruments do not 152 20 create an obligation on the part of the state. 152 21 New Code section 476B.18 prohibits a person with an 152 22 assigned service area in this state from offering competitive 152 23 power supply services within another person's assigned service 152 24 area in this state until the offering person allows the latter 152 25 person a reasonable opportunity to offer competitive power 152 26 supply services in the offering person's assigned service area 152 27 in this state. 152 28 New Code section 476B.19 provides that an electric 152 29 cooperative and a municipal utility are not subject to 152 30 regulation by the board except as specifically provided in 152 31 this chapter. 152 32 New Code section 476B.20 grants authority to the board to 152 33 impose civil remedies and penalties for certain violations. 152 34 New Code section 476B.21 provides for rehearings before the 152 35 board after the issuance of a final decision by the board. 153 1 New Code section 476B.22 provides for judicial review of 153 2 board decisions. 153 3 New Code section 476B.23 establishes certain contractual 153 4 rights and provides that certain end-use consumers may 153 5 terminate a contract for electric service in effect before the 153 6 effective date of the new Code chapter. 153 7 New Code section 476B.24 provides for certain benefits for 153 8 electric utility employees adversely affected as a result of 153 9 restructuring. 153 10 New Code section 476B.25 provides for reports to be 153 11 prepared by the board and the consumer advocate and submitted 153 12 to the general assembly. 153 13 New Code sections 28F.15 through 28F.29 provide for the 153 14 funding of construction of open access transmission facilities 153 15 to be owned or leased by an electric power agency. An 153 16 electric power agency is defined in new Code chapter 476B as a 153 17 political subdivision that acquires or finances electric 153 18 facilities pursuant to Code chapter 28E or 28F. 153 19 The bill makes certain conforming and transitional 153 20 amendments to existing Code sections. 153 21 The bill takes effect June 1, 2000. 153 22 LSB 5217SV 78 153 23 mj/as/5
Text: SF02360 Text: SF02362 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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