Text: H01406 Text: H01408 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the amendment, H-1397, to House File 577, as 1 2 follows: 1 3 #1. Page 1, by striking lines 2 through 50, and 1 4 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, redesignating, and 2 14 correcting internal references as necessary." 2 15 2 16 2 17 2 18 CHIODO of Polk 2 19 HF 577.720 79 2 20 jj/cls
Text: H01406 Text: H01408 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
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