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
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