Text: H01592 Text: H01594 Text: H01500 - H01599 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 698 as follows: 1 2 #1. Page 1, by inserting before line 1, the 1 3 following: 1 4 "Section 1. Section 476.6, Code 2001, is amended 1 5 by adding the following new subsection: 1 6 NEW SUBSECTION. 16A. POWER PURCHASE CONTRACTS. 1 7 a. A rate-regulated public utility shall file with 1 8 the board any contract for the purchase of electric 1 9 power to serve Iowa retail electric consumers if the 1 10 contract meets all of the following conditions: 1 11 (1) The contract term is for a period of five 1 12 years or longer. 1 13 (2) The amount of power purchased equals or 1 14 exceeds five percent of the public utility's Iowa 1 15 retail load. 1 16 (3) The power is being purchased from a new 1 17 electric power generating facility that is being 1 18 planned or is under construction in Iowa as of the 1 19 date of the contract. 1 20 b. A public utility, at its option, may file with 1 21 the board other contracts for the purchase of electric 1 22 power from an electric power generating facility in 1 23 Iowa if the amount of power purchased equals or 1 24 exceeds twenty-five megawatts. 1 25 c. The board shall issue its decision within 1 26 ninety days after the public utility's filing is 1 27 deemed complete; however, upon good cause shown, the 1 28 board may extend the time for issuing the order as 1 29 follows: 1 30 (1) The board may grant an extension of twenty 1 31 days. 1 32 (2) The board may grant more than one extension, 1 33 but each extension must rely upon a separate showing 1 34 of good cause. 1 35 (3) A subsequent extension must not be granted any 1 36 earlier than five days prior to the expiration of the 1 37 original ninety-day period, or the current extension. 1 38 d. The board shall approve the contract if it 1 39 finds, after a contested case proceeding, that the 1 40 terms of the contract are reasonable and prudent. In 1 41 determining whether the terms of the contract are 1 42 reasonable and prudent, the board may consider the 1 43 reliability and economic benefits of new, Iowa-based 1 44 generation. The rate-regulated public utility shall 1 45 also demonstrate to the board that it has considered 1 46 other sources for long-term electric supply, and that 1 47 the purchase power contract is reasonable when 1 48 compared to other feasible alternative sources of 1 49 supply including the building of utility-owned 1 50 generation. The board may condition its approval upon 2 1 the utility and the successful bidder agreeing to 2 2 contract modifications identified by the board. 2 3 e. Board approval of a contract shall constitute 2 4 an irrevocable determination of the prudence and 2 5 reasonableness of the contract and its terms. The 2 6 board, subsequent to approval of a contract, may at 2 7 anytime by order compel the public utility to enforce 2 8 the terms of the contract. 2 9 f. The costs of the contract shall be included in 2 10 the public utility's regulated retail electric rates. 2 11 The public utility may propose to recover the costs 2 12 through an automatic adjustment of rates as provided 2 13 in subsection 11. 2 14 g. The board shall adopt rules pursuant to chapter 2 15 17A regarding the filing and approval of contracts 2 16 under this subsection, including rules to ensure that 2 17 there is a fair and open bidding process for power 2 18 purchase contracts. 2 19 Sec. . Section 476.53, Code 2001, is amended by 2 20 striking the section and inserting in lieu thereof the 2 21 following: 2 22 476.53 ELECTRIC GENERATING AND TRANSMISSION 2 23 FACILITIES. 2 24 1. It is the intent of the general assembly to 2 25 attract the development of electric power generating 2 26 and transmission facilities within the state in 2 27 sufficient quantity to ensure reliable electric 2 28 service to Iowa consumers and provide economic 2 29 benefits to the state. 2 30 2. The general assembly's intent with regard to 2 31 the development of electric power generating and 2 32 transmission facilities, as provided in subsection 1, 2 33 shall be implemented in a manner that is cost- 2 34 effective and compatible with the environmental 2 35 policies of the state, as expressed in Title XI. 2 36 3. a. If a rate-regulated public utility files an 2 37 application pursuant to section 476A.3 to construct an 2 38 electric power generating facility in Iowa equal to or 2 39 greater than three hundred megawatts of nameplate 2 40 baseload capacity, or an alternate energy facility as 2 41 defined in section 476.42, or if a rate-regulated 2 42 public utility leases or purchases, in whole or in 2 43 part, a new electric power generating facility in Iowa 2 44 equal to or greater than three hundred megawatts of 2 45 nameplate baseload capacity, or a new alternate energy 2 46 facility as defined in section 476.42, the board shall 2 47 specify in advance, by order issued after a contested 2 48 case proceeding, the ratemaking principles that will 2 49 apply when the costs of the facility are included in 2 50 regulated electric rates. 3 1 b. In determining the applicable ratemaking 3 2 principles, the board shall not be limited to 3 3 traditional ratemaking principles or traditional cost 3 4 recovery mechanisms. 3 5 c. The applicable ratemaking principles shall be 3 6 determined in a contested case proceeding, which 3 7 proceeding may be combined with the proceeding for 3 8 issuance of a certificate conducted pursuant to 3 9 chapter 476A. 3 10 d. The order setting forth the applicable 3 11 ratemaking principles shall be issued prior to the 3 12 commencement of construction or lease of the facility. 3 13 e. Following issuance of the order, the rate- 3 14 regulated public utility shall have the option of 3 15 proceeding with construction or lease of the facility 3 16 in Iowa, or withdrawing its application for a 3 17 certificate under chapter 476A. 3 18 f. Notwithstanding any provision of this chapter 3 19 to the contrary, the ratemaking principles established 3 20 by the order issued pursuant to paragraph "d" shall be 3 21 binding with regard to the specific electric power 3 22 generating facility in any subsequent rate proceeding, 3 23 unless there is a sale, lease, or any other 3 24 disposition of a facility or lease, directly or 3 25 indirectly, including by merger or consolidation." 3 26 #2. Page 1, line 3, by striking the figure "1." 3 27 #3. Page 1, by striking lines 16 through 27. 3 28 #4. By renumbering as necessary. 3 29 3 30 3 31 3 32 JENKINS of Black Hawk 3 33 3 34 3 35 3 36 HANSEN of Pottawattamie 3 37 HF 698.701 79 3 38 jj/cls
Text: H01592 Text: H01594 Text: H01500 - H01599 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: Sat Apr 21 03:35:34 CDT 2001
URL: /DOCS/GA/79GA/Legislation/H/01500/H01593/010419.html
jhf