Text: HF00434 Text: HF00436 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.10, unnumbered paragraphs 1, 2, and 1 2 3, Code 2001, are amended to read as follows: 1 3When the board deems it necessary inIn order to carry out 1 4 the duties imposed upon it bythis chapter for the purpose of1 5determining rate matters to investigate the books, accounts,1 6practices, and activities of, or make appraisals of the1 7property of any public utility, or to render any engineering1 8or accounting services to any public utility, or to review the1 9operations or annual reports of the public utility under1 10section 476.31 or 476.32, or to evaluate a proposal for1 11reorganization under section 476.77, the public utility shall1 12pay the expense reasonably attributable to the investigation,1 13appraisal, service, or reviewlaw, 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 theexpenses including1 18 certified expenses incurred and directly chargeable by the 1 19 consumer advocate division of the department of justice 1 20directly chargeable to the public utility under section1 21475A.6, and shall renderin 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 thepublic utility1 34 person, either at the conclusion ofthe investigation,1 35appraisal, services, or reviewa proceeding or matter, or from 2 1 time to time during its progress, which. Presentation of a 2 2 billisfor expenses under this paragraph constitutes notice 2 3 ofthedirect assessment andshall demandrequest for payment 2 4 in accordance with this section.The total amount of such2 5expense in any one calendar year, for which any public utility2 6shall become liable, shall not exceed two-tenths of one2 7percent of its gross operating revenues derived from2 8intrastate public utility operations in the last preceding2 9calendar year.2 10 The board shall ascertain the total of the division's 2 11expendituresexpenses incurred during each fiscal yearwhich2 12are reasonably attributable toin the performance of its 2 13 duties underthis chapterlaw. The board shall add tothis2 14 the total of the division's expenses the certified expenses of 2 15 the consumer advocate as provided under section 475A.6and. 2 16 The board shall deduct all amountschargeable directly to any2 17specific utility under any lawcharged directly to any person 2 18 from the total expenses of the board and the consumer 2 19 advocate. Theremainder shall be assessed by theboard may 2 20 assess the amount remaining after the deduction tothe public2 21utilitiesall persons providing service over which the board 2 22 has jurisdiction in proportion totheirthe respective gross 2 23 operating revenues of such persons from intrastate operations 2 24 during the last calendar yearderived from intrastate public2 25utility operations and may be assessed by the board on a2 26quarterly basisover 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 1Assessments may be made quarterlyIf 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 theutilities division's and the consumer3 8advocate'sexpenditures for the fiscal year for the utilities 3 9 division and the consumer advocate.Beginning with the fiscal3 10year beginning July 1, 1987, the first assessment for any3 11fiscal year may be made by the utilities division by May 15 of3 12the preceding fiscal year and shall be paid by the utility on3 13or 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 thissectionparagraph. 3 17Public utilities exempt from rate regulation under this3 18chapter shall not be assessed for remainder expenses incurred3 19during review of rate-regulated public utilities under section3 20476.31 or 476.32, but such remainder expenses shall be3 21assessed proportionally as provided in this section among only3 22the rate-regulated public utilities. The total amount which3 23may be assessed to the public utilities under authority of3 24this paragraph shall not exceed two-tenths of one percent of3 25the total gross operating revenues of the public utilities3 26during the calendar year derived from intrastate public3 27utility operations. However, the total amount which may be3 28assessed in any one calendar year to a public utility under3 29this section shall not exceed three-tenths of one percent of3 30the utility's total gross operating revenues derived from3 31intrastate public utility operation in the last preceding3 32year.For gas and electric public utilities exempted from 3 33 rate regulationunderpursuant 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 otherutilities4 1 persons. 4 2Each utilityA person subject to a charge or assessment 4 3 shall pay the division the amount charged or assessed against 4 4itthe person within thirty days from the time the division 4 5mailsprovides notice toitthe person of the amount due, 4 6 unlessit shall file with the board objectionsthe person 4 7 files an objection in writing with the board, setting out the 4 8 grounds upon whichitthe person claims that such charge or 4 9 assessment is excessive, unreasonable, erroneous, unlawful, or 4 10 invalid. Uponthe filing of such objectionsreceipt of an 4 11 objection, the board shall set the matterdownfor hearing and 4 12 issue its order in accordance with its findings insuchthe 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 thestatetreasurer 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
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