Text: H01405 Text: H01407 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend the amendment, H-1398, to House File 577 as
1 2 follows:
1 3 #1. By striking page 1, line 2, through page 2,
1 4 line 6, and inserting the following:
1 5 "# . By striking page 1, line 11, through page
1 6 2, line 30, and inserting the following:
1 7 "NEW SUBSECTION. 16A. PUBLIC UTILITY LEASE OF
1 8 ASSETS.
1 9 a. A rate-regulated public utility shall file with
1 10 the board any lease of assets from an affiliate,
1 11 subsidiary, or any other entity owned or controlled
1 12 directly or indirectly by such utility or any
1 13 affiliate, subsidiary, parent company, associate, or
1 14 any corporation whose controlling stockholders are
1 15 also controlling stockholders of such utility, if the
1 16 lease of assets meets all of the following conditions:
1 17 (1) The lease term is for a period of twenty-five
1 18 years or longer.
1 19 (2) The lease relates to an electric power
1 20 generating facility that is being planned or is under
1 21 construction in Iowa as of the date of the lease.
1 22 (3) The lease involves the acquisition of the
1 23 capacity of the facility, or a right to any percentage
1 24 of the capacity of the facility that equals or exceeds
1 25 five percent of the public utility's Iowa retail load.
1 26 (4) The lease provides that the public utility
1 27 will control, operate, and maintain the electric power
1 28 generating facility during the term of the lease, and
1 29 will control the use and sale of all electricity
1 30 generated at the facility during the term of the
1 31 lease.
1 32 (5) A provision at the end of the original lease
1 33 term that allows an option for either the extension of
1 34 the lease, pursuant to review under the terms of this
1 35 subsection, as applicable, or for the purchase of the
1 36 electric power generating facility, subject to the
1 37 approval of the board.
1 38 b. The board shall approve the lease if it finds,
1 39 after a contested case proceeding, that the terms of
1 40 the lease are reasonable and prudent.
1 41 c. The costs of the lease approved by the board
1 42 shall be included in the public utility's regulated
1 43 retail electric rates.
1 44 d. The board shall amortize the costs of the lease
1 45 over the expected useful life of the electric power
1 46 generating facility. However, the board shall not
1 47 allow recovery by the public utility in excess of the
1 48 proportional share of total amortized costs for the
1 49 term of the lease, if the expected useful life of the
1 50 electric power generating facility is longer than the
2 1 term of the lease.
2 2 e. The board may approve a surcharge to retail
2 3 customers for the cost of capital being invested in
2 4 the electric power generating facility during the
2 5 period of construction, if the board finds that it is
2 6 in the public interest to provide an incentive to
2 7 ensure the construction of a new electric power
2 8 generating facility in Iowa."
2 9 # . Title page, lines 3 and 4, by striking the
2 10 words "power purchase contracts" and inserting the
2 11 following: "certain leases of assets by public
2 12 utilities".
2 13 # . By renumbering or correcting internal
2 14 references as necessary."
2 15
2 16
2 17
2 18 CHIODO of Polk
2 19 HF 577.217 79
2 20 jj/gg
Text: H01405 Text: H01407 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
© 2001 Cornell College and League of Women Voters of Iowa
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