Text: H01409 Text: H01411 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,
1 29 including employment of employees of the public
1 30 utility required to fully staff the facility, and will
1 31 control the use and sale of all electricity generated
1 32 at the facility during the term of the lease.
1 33 (5) A provision at the end of the original lease
1 34 term that allows an option for either the extension of
1 35 the lease, pursuant to review under the terms of this
1 36 subsection, as applicable, or for the purchase of the
1 37 electric power generating facility, subject to the
1 38 approval of the board.
1 39 b. The board shall approve the lease if it finds,
1 40 after a contested case proceeding, that the terms of
1 41 the lease are reasonable and prudent.
1 42 c. The costs of the lease approved by the board
1 43 shall be included in the public utility's regulated
1 44 retail electric rates.
1 45 d. The board shall amortize the costs of the lease
1 46 over the expected useful life of the electric power
1 47 generating facility. However, the board shall not
1 48 allow recovery by the public utility in excess of the
1 49 proportional share of total amortized costs for the
1 50 term of the lease, if the expected useful life of the
2 1 electric power generating facility is longer than the
2 2 term of the lease.
2 3 e. The board may approve a surcharge to retail
2 4 customers for the cost of capital being invested in
2 5 the electric power generating facility during the
2 6 period of construction, if the board finds that it is
2 7 in the public interest to provide an incentive to
2 8 ensure the construction of a new electric power
2 9 generating facility in Iowa."
2 10 # . Title page, lines 3 and 4, by striking the
2 11 words "power purchase contracts" and inserting the
2 12 following: "certain leases of assets by public
2 13 utilities".
2 14 # . By renumbering or correcting internal
2 15 references as necessary."
2 16
2 17
2 18
2 19 CHIODO of Polk
2 20 HF 577.726 79
2 21 jj/cls
Text: H01409 Text: H01411 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
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Apr 4 03:35:24 CDT 2001
URL: /DOCS/GA/79GA/Legislation/H/01400/H01410/010402.html
jhf