Text: HF00434                           Text: HF00436
Text: HF00400 - HF00499                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 435

Partial Bill History

Bill Text

  1  1    Section 1.  Section 476.10, unnumbered paragraphs 1, 2, and
  1  2 3, Code 2001, are amended to read as follows:
  1  3    When the board deems it necessary in In order to carry out
  1  4 the duties imposed upon it by this chapter for the purpose of
  1  5 determining rate matters to investigate the books, accounts,
  1  6 practices, and activities of, or make appraisals of the
  1  7 property of any public utility, or to render any engineering
  1  8 or accounting services to any public utility, or to review the
  1  9 operations or annual reports of the public utility under
  1 10 section 476.31 or 476.32, or to evaluate a proposal for
  1 11 reorganization under section 476.77, the public utility shall
  1 12 pay the expense reasonably attributable to the investigation,
  1 13 appraisal, service, or review law, the board may, at its
  1 14 discretion, allocate and charge directly the expenses
  1 15 attributable to its duties to the person bringing a proceeding
  1 16 before the board or to persons participating in matters before
  1 17 the board.  The board shall ascertain the expenses including
  1 18 certified expenses incurred and directly chargeable by the
  1 19 consumer advocate division of the department of justice
  1 20 directly chargeable to the public utility under section
  1 21 475A.6, and shall render in the performance of its duties.
  1 22 The board and the consumer advocate separately may decide not
  1 23 to charge expenses to persons who, without expanding the scope
  1 24 of the proceeding or matter, intervene in good faith in a
  1 25 board proceeding initiated by a person subject to the board's
  1 26 jurisdiction, the consumer advocate, or the board on its own
  1 27 motion.  For assessments in any proceedings or matters before
  1 28 the board, the board and the consumer advocate separately may
  1 29 consider the financial resources of the person, the impact of
  1 30 assessment on participation by intervenors, the nature of the
  1 31 proceeding or matter, and the contribution of a person's
  1 32 participation to the public interest.  The board may present a
  1 33 bill for expenses under this paragraph to the public utility
  1 34 person, either at the conclusion of the investigation,
  1 35 appraisal, services, or review a proceeding or matter, or from
  2  1 time to time during its progress, which.  Presentation of a
  2  2 bill is for expenses under this paragraph constitutes notice
  2  3 of the direct assessment and shall demand request for payment
  2  4 in accordance with this section.  The total amount of such
  2  5 expense in any one calendar year, for which any public utility
  2  6 shall become liable, shall not exceed two-tenths of one
  2  7 percent of its gross operating revenues derived from
  2  8 intrastate public utility operations in the last preceding
  2  9 calendar year.
  2 10    The board shall ascertain the total of the division's
  2 11 expenditures expenses incurred during each fiscal year which
  2 12 are reasonably attributable to in the performance of its
  2 13 duties under this chapter law.  The board shall add to this
  2 14 the total of the division's expenses the certified expenses of
  2 15 the consumer advocate as provided under section 475A.6 and.
  2 16 The board shall deduct all amounts chargeable directly to any
  2 17 specific utility under any law charged directly to any person
  2 18 from the total expenses of the board and the consumer
  2 19 advocate.  The remainder shall be assessed by the board may
  2 20 assess the amount remaining after the deduction to the public
  2 21 utilities all persons providing service over which the board
  2 22 has jurisdiction in proportion to their the respective gross
  2 23 operating revenues of such persons from intrastate operations
  2 24 during the last calendar year derived from intrastate public
  2 25 utility operations and may be assessed by the board on a
  2 26 quarterly basis over which the board has jurisdiction.  For
  2 27 purposes of determining gross operating revenues under this
  2 28 section, the board shall not include gross receipts received
  2 29 by a cooperative corporation or association for wholesale
  2 30 transactions with members of the cooperative corporation or
  2 31 association, provided that the members are subject to
  2 32 assessment by the board based upon the members' gross
  2 33 operating revenues, or provided that such a member is an
  2 34 association whose members are subject to assessment by the
  2 35 board based upon the members' gross operating revenues.
  3  1 Assessments may be made quarterly If any portion of the
  3  2 remainder can be identified with a specific type of utility
  3  3 service, the board shall assess those expenses only to the
  3  4 entities providing that type of service over which the board
  3  5 has jurisdiction.  The board may make the remainder
  3  6 assessments under this paragraph on a quarterly basis, based
  3  7 upon estimates of the utilities division's and the consumer
  3  8 advocate's expenditures for the fiscal year for the utilities
  3  9 division and the consumer advocate.  Beginning with the fiscal
  3 10 year beginning July 1, 1987, the first assessment for any
  3 11 fiscal year may be made by the utilities division by May 15 of
  3 12 the preceding fiscal year and shall be paid by the utility on
  3 13 or before the following July 1.  Not more than ninety days
  3 14 following the close of the fiscal year, the utilities division
  3 15 shall conform the amount of the prior fiscal year's
  3 16 assessments to the requirements of this section paragraph.
  3 17 Public utilities exempt from rate regulation under this
  3 18 chapter shall not be assessed for remainder expenses incurred
  3 19 during review of rate-regulated public utilities under section
  3 20 476.31 or 476.32, but such remainder expenses shall be
  3 21 assessed proportionally as provided in this section among only
  3 22 the rate-regulated public utilities.  The total amount which
  3 23 may be assessed to the public utilities under authority of
  3 24 this paragraph shall not exceed two-tenths of one percent of
  3 25 the total gross operating revenues of the public utilities
  3 26 during the calendar year derived from intrastate public
  3 27 utility operations.  However, the total amount which may be
  3 28 assessed in any one calendar year to a public utility under
  3 29 this section shall not exceed three-tenths of one percent of
  3 30 the utility's total gross operating revenues derived from
  3 31 intrastate public utility operation in the last preceding
  3 32 year.  For gas and electric public utilities exempted from
  3 33 rate regulation under pursuant to this chapter, the remainder
  3 34 assessments under this paragraph shall be computed at one-half
  3 35 the rate used in computing the assessment for other utilities
  4  1 persons.
  4  2    Each utility A person subject to a charge or assessment
  4  3 shall pay the division the amount charged or assessed against
  4  4 it the person within thirty days from the time the division
  4  5 mails provides notice to it the person of the amount due,
  4  6 unless it shall file with the board objections the person
  4  7 files an objection in writing with the board, setting out the
  4  8 grounds upon which it the person claims that such charge or
  4  9 assessment is excessive, unreasonable, erroneous, unlawful, or
  4 10 invalid.  Upon the filing of such objections receipt of an
  4 11 objection, the board shall set the matter down for hearing and
  4 12 issue its order in accordance with its findings in such the
  4 13 proceeding, which.
  4 14    The order shall be subject to review in the manner provided
  4 15 in this chapter.  All amounts collected by the division
  4 16 pursuant to the provisions of this section shall be deposited
  4 17 with the state treasurer of state and credited to the general
  4 18 fund of the state.  Such amounts shall be spent in accordance
  4 19 with the provisions of chapter 8.
  4 20    Sec. 2.  UTILITIES BOARD REPORT.  The utilities board shall
  4 21 submit a written report to the general assembly on or before
  4 22 March 1, 2002, regarding the direct and remainder assessments
  4 23 made pursuant to this Act.  The utilities board shall indicate
  4 24 for both direct and remainder assessments the amount of the
  4 25 assessment and the party to whom it was assessed.  The
  4 26 utilities board shall also provide a comparison of the
  4 27 assessments made to the same parties under the previous
  4 28 statute.  The utilities board may also address additional
  4 29 issues or information that it deems useful to the general
  4 30 assembly in reviewing the statutory changes.
  4 31    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  4 32 immediate importance, takes effect upon enactment.  
  4 33                           EXPLANATION
  4 34    This bill amends Code section 476.10, which deals with
  4 35 allocation of expenses incurred by the Iowa utilities board
  5  1 ("the board") and the consumer advocate.
  5  2    The bill provides that the board may allocate and directly
  5  3 charge to persons bringing or participating in a proceeding or
  5  4 matter before the board expenses attributable to the
  5  5 respective duties of the board and the consumer advocate.  The
  5  6 board and consumer advocate may consider the financial
  5  7 resources of the parties, the impact of assessment on
  5  8 participation by intervenors, the nature of the proceeding or
  5  9 matter, and the contribution to the public interest in making
  5 10 such direct assessments, and may decline to charge persons who
  5 11 intervene in a proceeding in good faith without expanding the
  5 12 scope of the proceeding.  The board may bill the person during
  5 13 a proceeding, or at the conclusion.  Presentation of a bill
  5 14 constitutes notice of direct assessment and a demand for
  5 15 payment according to the time frame established in the bill.
  5 16    This direct assessment procedure in the bill is more
  5 17 detailed than the current Code language on direct assessments
  5 18 and provides specific criteria for the board to consider in
  5 19 making an allocation, or in declining to allocate any expenses
  5 20 to interveners; applies to all proceedings and matters for
  5 21 which the board is responsible under the law rather than a
  5 22 limited list of activities; applies to all persons before the
  5 23 board rather than just public utilities; and contains no limit
  5 24 on the yearly amount that a person may be assessed, rather
  5 25 than an annual limit of two-tenths of 1 percent of a public
  5 26 utility's gross operating revenues.
  5 27    The bill also addresses quarterly assessments based on the
  5 28 actual expenses of the utilities division, less the direct
  5 29 charges made to persons involved in proceedings or other
  5 30 matters before the board.  This quarterly remainder assessment
  5 31 is made to all persons providing service over which the board
  5 32 has jurisdiction, in proportion to their respective gross
  5 33 operating revenues.  Electric and gas public utilities who are
  5 34 not subject to rate regulation by the board under Code chapter
  5 35 476 are assessed at one-half the rate of other persons.
  6  1    This quarterly remainder assessment procedure differs from
  6  2 current Code language on quarterly remainder assessments by
  6  3 applying the assessment process to all persons providing
  6  4 service over which the board has jurisdiction, rather than
  6  5 public utilities; by permitting expenses allocable to a
  6  6 particular type of utility to be assessed only to that type of
  6  7 entity over which the board has jurisdiction; by using fiscal
  6  8 year guidelines only and deleting references to specific dates
  6  9 in the procedure; and by not limiting the yearly amount that a
  6 10 person may be assessed, rather than an annual limit of two-
  6 11 tenths of 1 percent of a public utility's gross operating
  6 12 revenues from intrastate public utility operations during the
  6 13 calendar year, and a total of three-tenths of 1 percent of the
  6 14 gross operating revenues in the last preceding year for both
  6 15 the direct and remainder assessments.
  6 16    The bill requires direct charges or remainder assessments
  6 17 to be paid within 30 days of notice of the amount due, unless
  6 18 an objection is filed.  The board is required to set the
  6 19 matter of a filed objection for hearing and issue an order in
  6 20 accordance with the procedures in Code chapter 476.  The order
  6 21 is subject to review according to the procedures in the Code
  6 22 chapter.  The bill differs from current Code language
  6 23 regarding payment by requiring that the board provide notice,
  6 24 instead of mailing notice.
  6 25    The bill requires the utilities board to submit a written
  6 26 report to the general assembly on or before March 1, 2002,
  6 27 regarding the effect of statutory changes on the direct and
  6 28 remainder assessments actually made on utilities.  The report
  6 29 shall address the amount of the assessment, the party to whom
  6 30 it was assessed, a comparison of the assessments made to the
  6 31 same party under the previous statute, and any additional
  6 32 information the utilities board deems useful to the general
  6 33 assembly in evaluating the statutory changes.
  6 34    The bill takes effect upon enactment.  
  6 35 LSB 1236HV 79
  7  1 jj/cls/14

Text: HF00434                           Text: HF00436
Text: HF00400 - HF00499                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home 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 May 9 09:40:40 CDT 2001
URL: /DOCS/GA/79GA/Legislation/HF/00400/HF00435/010227.html