Text: HF00639                           Text: HF00641
Text: HF00600 - HF00699                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 640

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 455A.1, Code 2001, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  2A.  "Energy commission" means the energy
  1  4 commission created in section 455A.5A.
  1  5    Sec. 2.  NEW SECTION.  455A.5A  IOWA ENERGY COMMISSION –
  1  6 APPOINTMENT AND DUTIES.
  1  7    1.  An energy commission is created within the department
  1  8 of natural resources.
  1  9    2.  The energy commission shall consist of seven members,
  1 10 appointed by the governor.
  1 11    a.  The members shall serve staggered terms of four years,
  1 12 beginning and ending as provided in section 69.19, except for
  1 13 the initial appointments.  The governor shall indicate, when
  1 14 making the initial appointments, the two persons that shall
  1 15 serve four-year terms, the two persons that shall serve three-
  1 16 year terms, the two persons that shall serve two-year terms,
  1 17 and the one person that shall serve a one-year term, in order
  1 18 to initiate the system of four-year staggered terms.
  1 19 Commission appointees are subject to senate confirmation.
  1 20    b.  The members shall be electors of the state, and shall
  1 21 have substantial knowledge of the subjects embraced in chapter
  1 22 473.  The appointments shall be based upon the training,
  1 23 experience, and capacity of the appointees, and not based upon
  1 24 political considerations, other than as provided in section
  1 25 69.16.
  1 26    c.  A member of the energy commission shall not hold any
  1 27 other state or federal office.
  1 28    d.  The energy commission shall be subject to the
  1 29 provisions of section 69.16 regarding political affiliation
  1 30 and section 69.16A regarding gender balance.
  1 31    e.  A member of the energy commission may be reappointed,
  1 32 subject to the provisions of chapter 69.
  1 33    f.  A vacancy on the energy commission shall be filled for
  1 34 the unexpired term according to the provisions of chapter 69.
  1 35    3.  The energy commission shall hold an organizational
  2  1 meeting within thirty days of the beginning of a new regular
  2  2 term for one or more of its members.  The energy commission
  2  3 shall organize by electing a chairperson, vice chairperson,
  2  4 secretary, and any other officers deemed necessary or
  2  5 desirable.  The energy commission shall meet at least
  2  6 quarterly throughout the year, or upon the call of the
  2  7 chairperson.
  2  8    4.  A majority of the members of the energy commission is a
  2  9 quorum, and a majority of a quorum may act in any matter
  2 10 within the jurisdiction of the commission, unless a more
  2 11 restrictive rule is adopted by the commission.
  2 12    5.  The energy commission shall investigate and annually
  2 13 report to the general assembly on at least the following
  2 14 topics:
  2 15    a.  The latest technologies of energy efficiency and
  2 16 renewable resources.
  2 17    b.  Formulation of a statewide education policy to inform
  2 18 media and citizens of energy issues.
  2 19    c.  The short-term and long-term feasibility of
  2 20 implementing various alternative energy sources.
  2 21    d.  The regulation of utilities in Iowa.
  2 22    e.  Recommendations regarding responsible standards for
  2 23 improving the efficiency of projects that utilize state funds.
  2 24    6.  The energy commission is charged with the following
  2 25 responsibilities and duties, except as otherwise established
  2 26 by law:
  2 27    a.  Establish policy for the department and adopt rules,
  2 28 pursuant to chapter 17A, necessary to provide for the
  2 29 effective administration of chapter 473.
  2 30    b.  Hear appeals in contested cases pursuant to chapter 17A
  2 31 on matters relating to actions taken by the director under
  2 32 chapter 473 and approve the budget request prepared by the
  2 33 director for the programs authorized by chapter 473.
  2 34    c.  Increase, decrease, or strike any item within the
  2 35 department budget request for the programs authorized by
  3  1 chapter 473 before granting approval.
  3  2    7.  The energy commission shall also advise the governor in
  3  3 developing energy policy in Iowa.
  3  4    8.  Members of the energy commission are eligible for
  3  5 reimbursement of actual and necessary expenses incurred in the
  3  6 performance of their official duties.  Each member of the
  3  7 energy commission may also be eligible to receive compensation
  3  8 as provided in section 7E.6.
  3  9    Sec. 3.  Section 455A.6, subsection 6, paragraph b, Code
  3 10 2001, is amended to read as follows:
  3 11    b.  Hear appeals in contested cases pursuant to chapter 17A
  3 12 on matters relating to actions taken by the director under
  3 13 chapter 455C, 458A, or 464B, or 473.
  3 14    Sec. 4.  Section 473.1, subsection 1, Code 2001, is amended
  3 15 to read as follows:
  3 16    1.  "Commission" means the environmental protection energy
  3 17 commission of the department.
  3 18    Sec. 5.  Section 473.3, Code 2001, is amended to read as
  3 19 follows:
  3 20    473.3  LEGISLATIVE INTENT -- ENERGY EFFICIENCY GOAL.
  3 21    1.  Iowa imports over ninety-eight percent of its energy,
  3 22 and energy resources in relation to consumer demand are soon
  3 23 projected to reach a critical point in Iowa.  Increasing
  3 24 energy efficiency is one method for conserving energy
  3 25 resources.
  3 26    2.  The goal policy of this state is to more efficiently
  3 27 utilize energy resources more efficiently, especially those
  3 28 that are nonrenewable or that have negative environmental
  3 29 impacts, in order to enhance the economy of the state and to
  3 30 decrease the state's dependence on energy resources from
  3 31 outside the state by reducing the amount of energy used.
  3 32    3.  The long-term goal of this state is to increase energy
  3 33 efficiency by twenty percent, over a time period and by
  3 34 specific measures to be determined by the commission.
  3 35    4.  This goal is to The energy efficiency policy shall be
  4  1 implemented through all of the following policies and
  4  2 programs:
  4  3    a.  Through the development of programs that promote energy
  4  4 efficiency and energy conservation by all Iowans, through
  4  5 including through increased weatherization of homes.
  4  6    b.  Through the development and enhancement of an energy
  4  7 efficiency industry, through.
  4  8    c.  Through the development of indigenous energy resources
  4  9 that are economically and environmentally viable, and through.
  4 10    d.  Through the development and implementation of effective
  4 11 public information and education programs.
  4 12    5.  State government shall be a model and testing ground
  4 13 for the use of energy efficiency systems.
  4 14    Sec. 6.  Section 473.7, Code 2001, is amended to read as
  4 15 follows:
  4 16    473.7  DUTIES OF THE DEPARTMENT ENERGY COMMISSION.
  4 17    The department commission shall:
  4 18    1.  Deliver to the general assembly by January 15, 1990
  4 19 February 1, 2003, a plan for the development, management, and
  4 20 efficient utilization of all energy resources in the state.
  4 21 The plan shall evaluate existing energy utilization with
  4 22 regard to energy efficiency and shall evaluate the future
  4 23 energy needs of the state.  The plan shall include but is not
  4 24 limited to the following elements:
  4 25    a.  The historical use and distribution of energy in Iowa.
  4 26    b.  The growth rate of energy consumption in Iowa.
  4 27    c.  A projection of Iowa's energy needs at a minimum of
  4 28 ten, twenty, and thirty years into the future.
  4 29    d.  The impact of meeting Iowa's energy needs on the
  4 30 economy of the state.
  4 31    e.  The impact of meeting Iowa's energy needs on the
  4 32 environment of the state.
  4 33    f.  An evaluation of alternative sources and uses of
  4 34 energy.
  4 35    g.  Legislative recommendations that may be necessary as a
  5  1 basis for the development of a state policy for the
  5  2 development and efficient utilization of on energy resources.
  5  3    h.  An evaluation of the ability of existing laws and
  5  4 regulations surrounding the utilization of to address future
  5  5 needs regarding energy resources.
  5  6    The department commission shall develop the plan with the
  5  7 assistance of, and in consultation with, the utilities board
  5  8 within the department of commerce, representatives of the
  5  9 energy industry, economic interests, the public, and other
  5 10 interested parties.  The department commission shall submit a
  5 11 report to the general assembly concerning the status and
  5 12 implementation of the plan on a biennial basis.  The biennial
  5 13 update shall contain an evaluation of all state energy
  5 14 programs including expected versus actual benefits and
  5 15 forecasts of future energy demand in Iowa.
  5 16    2.  Identify a state facility in the state to be used as a
  5 17 marketing tool to promote energy conservation by providing a
  5 18 showcase for the department commission to demonstrate energy
  5 19 efficiency.
  5 20    3.  The department commission shall exchange information
  5 21 with other states on energy and especially on the allocation
  5 22 of fuel and shall request all information necessary to
  5 23 determine the reasonableness of any reduction of Iowa's fuel
  5 24 allocation, or the reasonableness of any increase in prices of
  5 25 any type of fuel, including the possibility of price-fixing or
  5 26 other manipulation of the market.
  5 27    4.  Establish a central depository within the state for
  5 28 energy data.
  5 29    a.  The central depository shall be located at or
  5 30 accessible through a library which that is a member of an
  5 31 interlibrary loan program to facilitate access to the data and
  5 32 information contained in the central depository.
  5 33    b.  The department commission shall collect data necessary
  5 34 to forecast future energy demands in the state.
  5 35    c.  The department commission may require a supplier to
  6  1 provide information pertaining to the supply, storage,
  6  2 distribution and sale of energy sources in this state.
  6  3    d.  The information shall be furnished on a periodic basis,
  6  4 shall be of a nature which that directly relates to the
  6  5 supply, storage, distribution and sale of energy sources, and
  6  6 shall not include any records, documents, books, or other data
  6  7 which that relate to the financial position of the supplier.
  6  8 Provided, provided that the department commission, prior to
  6  9 requiring any supplier to furnish it the commission with such
  6 10 information, shall make every reasonable effort to determine
  6 11 if the same such information is available from any other
  6 12 governmental source.  If it the commission finds such
  6 13 information is available, the department commission shall not
  6 14 require submission of the same such information from a
  6 15 supplier.
  6 16    e.  Notwithstanding the provisions of chapter 22,
  6 17 information and reports obtained under this section subsection
  6 18 shall be confidential except when used for statistical
  6 19 purposes without identifying a specific supplier and when
  6 20 release of the information will not give an advantage to
  6 21 competitors and serves a public purpose.  The department
  6 22 commission shall use this data to conduct energy forecasts
  6 23 which that shall be included in the biennial update required
  6 24 by this section.
  6 25    f.  The department commission may subpoena witnesses,
  6 26 administer oaths, and require the production of records,
  6 27 books, and documents for examination in order to obtain
  6 28 information required to be submitted under this section.  In
  6 29 case of failure or refusal on the part of any person to comply
  6 30 with a subpoena issued by the department commission, or in
  6 31 case of the refusal of any witness to testify as to any matter
  6 32 regarding which the witness may be interrogated under this
  6 33 chapter, the district court, upon the application of the
  6 34 department commission, may order the person to show cause why
  6 35 the person should not be held in contempt for failure to
  7  1 testify or comply with a subpoena, and may order the person to
  7  2 produce the records, books, and documents for examination, and
  7  3 to give testimony.  The courts may punish for contempt as in
  7  4 the case of disobedience to a like subpoena issued by the
  7  5 court, or for refusal to testify.
  7  6    5.  Develop, recommend, and implement with appropriate
  7  7 agencies public and professional education and communication
  7  8 programs in energy efficiency, energy conservation, and
  7  9 conversion to alternative sources of energy.
  7 10    6.  When necessary to carry out its duties under this
  7 11 chapter, enter into contracts with state agencies and other
  7 12 qualified contractors.
  7 13    7.  Receive and accept grants made available for programs
  7 14 relating to duties of the department commission under this
  7 15 chapter.
  7 16    8.  Promulgate Adopt rules pursuant to chapter 17A
  7 17 necessary to carry out the provisions of this chapter, subject
  7 18 to review in accordance with chapter 17A.  Rules promulgated
  7 19 by the governor pursuant to a proclamation issued under the
  7 20 provisions of section 473.8 shall not be subject to review or
  7 21 a public hearing as required in chapter 17A; however, agency
  7 22 rules for implementation of the governor's proclamation are
  7 23 subject to the requirements of chapter 17A.
  7 24    9.  Examine and determine whether additional state
  7 25 regulatory authority is necessary to protect the public
  7 26 interest and to promote the effective development, utilization
  7 27 and conservation of energy resources.  If the department
  7 28 commission finds that additional regulatory authority is
  7 29 necessary, the department commission shall submit
  7 30 recommendations to the general assembly concerning the nature
  7 31 and extent of such regulatory authority and which state agency
  7 32 should be assigned such regulatory responsibilities.
  7 33    10.  Develop and assist in the implementation of public
  7 34 education and communications programs in energy development,
  7 35 use and conservation, in co-operation cooperation with the
  8  1 department of education, the state university extension
  8  2 services and other public or private agencies and
  8  3 organizations as deemed appropriate by the department
  8  4 commission.
  8  5    11.  Develop a program to annually give annual public
  8  6 recognition to innovative methods of energy conservation.
  8  7    12.  Administer and coordinate federal funds for energy
  8  8 conservation programs including, but not limited to, the
  8  9 institutional conservation program, state energy conservation
  8 10 program, and energy extension service program, and related
  8 11 programs which that provide energy management and conservation
  8 12 assistance to schools, hospitals, health-care health care
  8 13 facilities, communities, and the general public.
  8 14    13.  Administer and coordinate the state building energy
  8 15 management program including projects funded through private
  8 16 financing.
  8 17    14.  Perform monthly fuel surveys which that establish a
  8 18 statistical average of motor fuel prices for various motor
  8 19 fuels provided throughout the state.  Additionally, the
  8 20 department commission shall perform monthly fuel surveys in
  8 21 cities with populations of over fifty thousand which that
  8 22 establish a statistical average of motor fuel prices for
  8 23 various motor fuels provided in those individual cities.  The
  8 24 survey results shall be publicized in a monthly press release
  8 25 issued by the department commission.
  8 26    15.  Conduct a study on Study activities related to energy
  8 27 production and use which that contribute to global climate
  8 28 change and the depletion of the stratospheric ozone layer.
  8 29 The study shall identify the types and relative contributions
  8 30 of these activities in Iowa.  The department commission shall
  8 31 develop a strategy to reduce emissions from activities
  8 32 identified as having an adverse impact on the global climate
  8 33 and the stratospheric ozone layer.  The department shall
  8 34 submit a report containing its findings and recommendations to
  8 35 the governor and general assembly by January 1, 1992.
  9  1    Sec. 7.  NEW SECTION.  473.14  IMPLEMENTATION OF ENERGY
  9  2 CONSERVATION MEASURES – SCHOOL CORPORATIONS.
  9  3    1.  Any energy efficiency projects approved by the
  9  4 commission that are completed by a school corporation subject
  9  5 to section 298.18 shall be exempt from the bonded debt levy
  9  6 limits in section 298.18.
  9  7    2.  The commission shall adopt rules pursuant to chapter
  9  8 17A to administer this section, including requirements for an
  9  9 energy management plan, an energy audit, and an engineering
  9 10 analysis of the energy conservation measures.
  9 11    3.  A participating school corporation shall annually
  9 12 report to the commission on August 1 the status of all energy
  9 13 conservation measures identified in their engineering
  9 14 analysis, whether or not the measures have been acquired or
  9 15 implemented, and the results of energy usage analyses of the
  9 16 board's facilities.  The report shall also be made available
  9 17 to the residents of the election district for the school
  9 18 corporation.
  9 19    Sec. 8.  Section 473.17, Code 2001, is amended to read as
  9 20 follows:
  9 21    473.17  REVIEW.
  9 22    The first session of the Seventy-second Eighty-first
  9 23 General Assembly meeting in the year 1987 2005 shall review
  9 24 the activities and performance of the department commission
  9 25 and shall not later than July 1, 1987 make a determination
  9 26 concerning the status and duties of the department commission,
  9 27 which review shall be performed every ten years thereafter.
  9 28    Sec. 9.  Section 476.2, Code 2001, is amended by adding the
  9 29 following new subsection:
  9 30    NEW SUBSECTION.  5A.  The board shall emphasize the
  9 31 maintenance of a safe, reliable, and adequate power system,
  9 32 through application of standards for customer response times,
  9 33 outage frequency and duration, strategic staffing, prevention
  9 34 of injury and loss of life, and facilitation of construction
  9 35 of adequate generation and transmission facilities, including
 10  1 maintenance of the existing power grid.
 10  2    Sec. 10.  Section 476.2, subsection 6, Code 2001, is
 10  3 amended to read as follows:
 10  4    6.  The board shall provide the general assembly energy
 10  5 commission with a report on the energy efficiency planning
 10  6 efforts undertaken by utilities required to offer energy
 10  7 efficiency plans pursuant to section 476.6, subsection 17.
 10  8 The report shall be completed by January 1, 1998. following
 10  9 subjects:
 10 10    a.  An analysis of the level of investment and incentives
 10 11 required to increase the energy generated from alternative or
 10 12 renewable sources by ten, twenty, and thirty percent.
 10 13    b.  Recommendations for promoting investment in integrated
 10 14 small-scale renewable energy systems.
 10 15    c.  An analysis of the costs and benefits of generating and
 10 16 transmitting electricity from renewable sources, and a
 10 17 proposal for a formula for establishing a fair cost for
 10 18 transmitting electricity from renewable sources.
 10 19    d.  Recommendations regarding establishment of a standard
 10 20 system for net metering and connecting renewable electricity
 10 21 generators to the electric transmission grid.
 10 22    Sec. 11.  Section 476.3, subsection 2, unnumbered paragraph
 10 23 1, Code 2001, is amended to read as follows:
 10 24    If, as a result of a review procedure conducted under
 10 25 section 476.31, a review conducted under section 476.32, a
 10 26 special audit, an investigation by division staff, or an
 10 27 investigation by the consumer advocate, a petition is filed
 10 28 with the board by the consumer advocate, alleging that a
 10 29 utility's rates are excessive, the disputed amount shall be
 10 30 specified in the petition.  The public utility shall, within
 10 31 the time prescribed by the board, file a bond or undertaking
 10 32 approved by the board conditioned upon the refund in a manner
 10 33 prescribed by the board of amounts collected after the date of
 10 34 filing of the petition in excess of rates or charges finally
 10 35 determined by the board to be lawful.  If upon hearing the
 11  1 board finds that the utility's rates are unlawful, the board
 11  2 shall order a refund, with interest, of amounts collected
 11  3 after the date of filing of the petition that are determined
 11  4 to be in excess of the amounts which would have been collected
 11  5 under the rates finally approved.  However, the board shall
 11  6 not order a refund that is greater than the amount specified
 11  7 in the petition, plus interest, and if the board fails to
 11  8 render a decision within ten months following the date of
 11  9 filing of the petition, the board shall not order a refund of
 11 10 any excess amounts that are collected after the expiration of
 11 11 that ten-month period and prior to the date the decision is
 11 12 rendered.  The interest rate to be applied to refunds
 11 13 determined by the board under this section shall be the same
 11 14 as applied to refunds ordered under section 476.6, subsection
 11 15 13.
 11 16    Sec. 12.  Section 476.6, subsection 19, Code 2001, is
 11 17 amended to read as follows:
 11 18    19.  ENERGY EFFICIENCY IMPLEMENTATION, COST REVIEW, AND
 11 19 COST RECOVERY.
 11 20    It is the intent of the general assembly that the board
 11 21 reinitiate the filing and evaluation of energy efficiency
 11 22 plans by gas and electric utilities, effective upon the
 11 23 effective date of this Act:
 11 24    a.  Gas and electric utilities required to be rate-
 11 25 regulated under this chapter shall file energy efficiency
 11 26 plans with the board.  An energy efficiency plan and budget
 11 27 shall include a range of programs, tailored to the needs of
 11 28 all customer classes, including residential, commercial, and
 11 29 industrial customers, for energy efficiency opportunities.
 11 30 The plans shall include rebates for the purchase and use of
 11 31 energy efficient appliances.  The plans shall include programs
 11 32 for qualified low-income persons including a cooperative
 11 33 program with any community action agency within the utility's
 11 34 service area to implement countywide or communitywide energy
 11 35 efficiency programs for qualified low-income persons, and
 12  1 shall also include a small business energy assistance program
 12  2 to be developed by the energy commission.  Rate-regulated gas
 12  3 and electric utilities shall utilize Iowa agencies and Iowa
 12  4 contractors to the maximum extent cost-effective in their
 12  5 energy efficiency plans filed with the board.
 12  6    b.  A gas and electric utility required to be rate-
 12  7 regulated under this chapter shall assess potential energy and
 12  8 capacity savings available from actual and projected customer
 12  9 usage by applying commercially available technology and
 12 10 improved operating practices to energy-using equipment and
 12 11 buildings.  The utility shall submit the assessment to the
 12 12 board.  Upon receipt of the assessment, the board shall
 12 13 consult with the energy bureau of the division of energy and
 12 14 geological resources of the department of natural resources to
 12 15 develop specific capacity and energy savings performance
 12 16 standards for each utility.  The utility shall submit an
 12 17 energy efficiency plan which that shall include economically
 12 18 achievable programs designed to attain these energy and
 12 19 capacity performance standards.
 12 20    The utilities shall make energy audits available to all
 12 21 customers.  Priority may be given to customers with greater
 12 22 energy use, but the service shall not be denied on the basis
 12 23 that the consumer purchases only a selected product or
 12 24 products from the utility.
 12 25    c.  The board shall conduct contested case proceedings for
 12 26 review of energy efficiency plans and budgets filed by gas and
 12 27 electric utilities required to be rate-regulated under this
 12 28 chapter.  The board may approve, reject, or modify the plans
 12 29 and budgets.  Notwithstanding the provisions of section
 12 30 17A.19, subsection 5, in an application for judicial review of
 12 31 the board's decision concerning a utility's energy efficiency
 12 32 plan or budget, the reviewing court shall not order a stay.
 12 33 Whenever a request to modify an approved plan or budget is
 12 34 filed subsequently by the office of consumer advocate or a gas
 12 35 or electric utility required to be rate-regulated under this
 13  1 chapter, the board shall promptly initiate a formal proceeding
 13  2 if the board determines that any reasonable ground exists for
 13  3 investigating the request.  The formal proceeding may be
 13  4 initiated at any time by the board on its own motion.
 13  5 Implementation of board-approved plans or budgets shall be
 13  6 considered continuous in nature and shall be subject to
 13  7 investigation at any time by the board or the office of the
 13  8 consumer advocate.
 13  9    d.  Notice to customers of a contested case proceeding for
 13 10 review of energy efficiency plans and budgets shall be in a
 13 11 manner prescribed by the board.
 13 12    e.  A gas or electric utility required to be rate-regulated
 13 13 under this chapter may recover, through an automatic
 13 14 adjustment mechanism filed pursuant to subsection 11, over a
 13 15 period not to exceed the term of the plan, the costs of an
 13 16 energy efficiency plan approved by the board, including
 13 17 amounts for a plan approved prior to July 1, 1996, in a
 13 18 contested case proceeding conducted pursuant to paragraph "c".
 13 19 The board shall periodically conduct a contested case
 13 20 proceeding to evaluate the reasonableness and prudence of the
 13 21 utility's implementation of an approved energy efficiency plan
 13 22 and budget.  If a utility is not taking all reasonable actions
 13 23 to cost-effectively implement an approved energy efficiency
 13 24 plan, the board shall not allow the utility to recover from
 13 25 customers costs in excess of those costs that would be
 13 26 incurred under reasonable and prudent implementation and shall
 13 27 not allow the utility to recover future costs at a level other
 13 28 than what the board determines to be reasonable and prudent.
 13 29 If the result of a contested case proceeding is a judgment
 13 30 against a utility, that utility's future level of cost
 13 31 recovery shall be reduced by the amount by which the programs
 13 32 were found to be imprudently conducted.  The utility shall not
 13 33 represent energy efficiency in customer billings as a separate
 13 34 cost or expense unless the board otherwise approves.
 13 35    f.  A rate-regulated utility required to submit an energy
 14  1 efficiency plan under this subsection shall, upon the request
 14  2 of the energy commission, or upon the direct request of a
 14  3 state agency or political subdivision to which it the utility
 14  4 provides service, provide advice and assistance to a state
 14  5 agency or political subdivision regarding measures which that
 14  6 the state agency or political subdivision might take in
 14  7 achieving improved energy efficiency results.  The cooperation
 14  8 shall include assistance in accessing financial assistance for
 14  9 energy efficiency measures.
 14 10    Sec. 13.  Section 476.8, Code 2001, is amended to read as
 14 11 follows:
 14 12    476.8  UTILITY CHARGES AND SERVICE.
 14 13    1.  Every public utility is required to furnish reasonably
 14 14 adequate service and facilities.
 14 15    a.  "Reasonably adequate service and facilities" for public
 14 16 utilities furnishing gas or electricity includes programs for
 14 17 customers to encourage the use of energy efficiency and
 14 18 renewable energy sources.
 14 19    b.  The charge made by any public utility for any heat,
 14 20 light, gas, energy efficiency and renewable energy programs,
 14 21 water or power produced, transmitted, delivered or furnished,
 14 22 or communications services, or for any service rendered or to
 14 23 be rendered in connection therewith with such service shall be
 14 24 reasonable and just, and every unjust or unreasonable charge
 14 25 for such service is prohibited and declared unlawful.  In
 14 26 determining reasonable and just rates, the board shall
 14 27 consider all factors relating to value and shall not be bound
 14 28 by rate base decisions or rulings made prior to the adoption
 14 29 of this chapter.
 14 30    2.  The board shall have the authority to order a rate-
 14 31 regulated public utility to construct an electric generating
 14 32 facility, transmission facility, or both, as necessary to
 14 33 ensure continued electric reliability, and to maintain
 14 34 reasonably adequate, reliable, safe, and cost-efficient
 14 35 electric service to Iowa consumers.  The prudent and
 15  1 reasonable costs incurred to construct and operate such
 15  2 generating facility or transmission facility shall be included
 15  3 in the determination of the rates of the rate-regulated public
 15  4 utility.
 15  5    3.  The board, in determining the value of materials or
 15  6 services to be included in valuations or costs of operations
 15  7 for rate-making purposes, may disallow any unreasonable profit
 15  8 made in the sale of materials to or services supplied for any
 15  9 public utility by any firm or corporation owned or controlled
 15 10 directly or indirectly by such utility or any affiliate,
 15 11 subsidiary, parent company, associate or any corporation whose
 15 12 controlling stockholders are also controlling stockholders of
 15 13 such utility.  The burden of proof shall be on the public
 15 14 utility to prove that no unreasonable profit is made.
 15 15    Sec. 14.  Section 476.20, Code 2001, is amended to read as
 15 16 follows:
 15 17    476.20  DISCONNECTION LIMITED – NOTICE – MORATORIUM –
 15 18 DEPOSITS.
 15 19    1.  A utility shall not, except in cases of emergency,
 15 20 discontinue, reduce, or impair service to a community, or a
 15 21 part of a community, except for nonpayment of account or
 15 22 violation of rules and regulations, unless and until
 15 23 permission to do so is obtained from the board.
 15 24    2.  a.  The board shall establish rules requiring a
 15 25 regulated public utility furnishing gas or electricity to
 15 26 include in the utility's notice of pending disconnection of
 15 27 service a written statement advising the customer that the
 15 28 customer may be eligible to participate in the low income home
 15 29 energy assistance program or weatherization assistance program
 15 30 administered by the division of community action agencies of
 15 31 the department of human rights.
 15 32    b.  The written statement shall list include the following
 15 33 information:
 15 34    (1)  The address and telephone number of the local agency
 15 35 which that is administering the customer's low income home
 16  1 energy assistance program and the weatherization assistance
 16  2 program.  The written statement shall also state
 16  3    (2)  A statement that the customer is advised to contact
 16  4 the public utility to settle any of the customer's complaints
 16  5 with the public utility, but if a complaint is not settled to
 16  6 the customer's satisfaction, the customer may file the do
 16  7 either of the following:
 16  8    (a)  Pursue arbitration with the public utility regarding a
 16  9 deposit or a disconnection from service, as described in
 16 10 subsection 6.
 16 11    (b) File a complaint with the board.  The written statement
 16 12 shall include the
 16 13    (3)  The address and phone number of the board.
 16 14    (4)  If the notice of pending disconnection of service
 16 15 applies to a residence served by an investor-owned public
 16 16 utility, the written statement shall advise that the
 16 17 disconnection does not apply from November 1 through April
 16 18 June 1 for a resident who is a "head of household", as defined
 16 19 by law, and who has been certified to the public utility by
 16 20 the local agency which is administering the low income home
 16 21 energy assistance program and weatherization assistance
 16 22 program as being eligible for either the low income home
 16 23 energy assistance program or weatherization assistance
 16 24 program, and that if such a resident resides within the
 16 25 serviced residence, the customer should promptly have the
 16 26 qualifying resident notify the local agency which is
 16 27 administering the low income home energy assistance program
 16 28 and weatherization assistance program if the customer meets
 16 29 the conditions described in subsection 3, paragraph "a",
 16 30 subparagraph (1) or (2).
 16 31    c.  The board shall establish rules requiring that the
 16 32 written notice contain additional information as it deems
 16 33 necessary and appropriate.
 16 34    3.  The board shall establish rules which shall be uniform
 16 35 with respect to all public utilities furnishing gas or
 17  1 electricity relating to disconnection of service.  This
 17  2 subsection applies both to regulated utilities and to
 17  3 municipally owned utilities and unincorporated villages which
 17  4 own their own distribution systems, and violations of this
 17  5 subsection subject the utilities to civil penalties under
 17  6 section 476.51.  The limits imposed by this subsection shall
 17  7 be applied to investor-owned public utilities only, unless the
 17  8 board by rule extends the same limitations to all public
 17  9 utilities furnishing gas or electricity.
 17 10    A qualified applicant for the low income home energy
 17 11 assistance program or the weatherization assistance program
 17 12 who is also a "head of household", as defined in section
 17 13 422.4, subsection 7, shall be promptly certified by the local
 17 14 agency administering the applicant's program to the
 17 15 applicant's public utility that the resident is a "head of
 17 16 household" as defined in section 422.4, subsection 7, and is
 17 17 qualified for the low income home energy assistance program or
 17 18 weatherization assistance program.  Notwithstanding subsection
 17 19 1, a
 17 20    a.  An investor-owned public utility furnishing gas or
 17 21 electricity shall not disconnect service from November 1
 17 22 through April June 1 to a residence which has a resident that
 17 23 has been certified under this paragraph., provided that one of
 17 24 the following conditions is satisfied:
 17 25    (1)  The customer currently is, or has been, a participant
 17 26 in any state or federal assistance program at any time during
 17 27 the previous twelve months, or whose projected adjusted gross
 17 28 income due to a demonstrated change in economic circumstances
 17 29 would make the customer eligible for state or federal
 17 30 assistance.
 17 31    (2)  The customer pays the lesser of a minimum of fifty
 17 32 percent of the current monthly payment, or three hundred
 17 33 dollars, for service during the months of November through
 17 34 May, provided that the board finds that public utility bills
 17 35 have or are likely to substantially increase due to causes
 18  1 other than increased consumption due to weather conditions.
 18  2    b.  An investor-owned public utility furnishing gas or
 18  3 electricity from November 1 through June 1 to a residential
 18  4 customer meeting the conditions under either subparagraph (1)
 18  5 or (2) of paragraph "a" shall also waive any late charge or
 18  6 penalty on gas or electric utility bills covering service
 18  7 provided during the period from November 1 through June 1.
 18  8    c.  A customer with a disability or medical need requiring
 18  9 environmental control or assistive medical devices shall be
 18 10 eligible for exemption from disconnection, provided that all
 18 11 of the following conditions are satisfied:
 18 12    (1)  (a)  The customer applies to the board on an
 18 13 application form furnished by the board providing the
 18 14 applicant's name, address, date of birth, and social security
 18 15 number and shall also provide a statement from a physician
 18 16 licensed under chapter 148, 149, 150, or 150A, a physician
 18 17 assistant licensed under chapter 148C, an advanced registered
 18 18 nurse practitioner licensed under chapter 152, or a
 18 19 chiropractor licensed under chapter 151, or a physician,
 18 20 physician assistant, nurse practitioner, or chiropractor
 18 21 licensed to practice in a contiguous state, written on the
 18 22 physician's, physician assistant's, nurse practitioner's, or
 18 23 chiropractor's stationery, stating the nature of the
 18 24 applicant's disability or medical need and such additional
 18 25 information as required by rules adopted by the utilities
 18 26 board.  The physician's, physician assistant's, nurse
 18 27 practitioner's, or chiropractor's statement shall state the
 18 28 period of time during which the person is expected to be
 18 29 disabled or the medical need is expected to exist.
 18 30    (b)  Any person providing false information with the intent
 18 31 to defraud on the application for an exemption under this
 18 32 paragraph "c" is subject to a civil penalty of one thousand
 18 33 dollars that may be imposed by the utilities board, for
 18 34 deposit in the energy assistance fund created in section
 18 35 476.20A and used for arbitration services pursuant to
 19  1 subsection 6.
 19  2    (c)  A physician, physician assistant, nurse practitioner,
 19  3 or chiropractor who provides false information with the intent
 19  4 to defraud on the physician's, physician assistant's, nurse
 19  5 practitioner's, or chiropractor's statement used in
 19  6 establishing proof is subject to a civil penalty of one
 19  7 thousand dollars that may be imposed by the utilities board,
 19  8 for deposit in the energy assistance fund created in section
 19  9 476.20A and used for arbitration services pursuant to
 19 10 subsection 6.  In addition to the civil penalty, the
 19 11 department shall revoke the exemption issued pursuant to this
 19 12 subsection, and allow the public utility to impose all
 19 13 applicable late fees and charges.
 19 14    (2)  During the time that the disability or medical need
 19 15 requiring the environmental control or assistive medical
 19 16 device is in existence, the customer makes a good faith effort
 19 17 to pay the customer's utility bill and any outstanding
 19 18 balance, according to the standards for payments reflecting
 19 19 income guidelines established by rule by the utilities board.
 19 20 If the customer does not meet the payment guidelines for two
 19 21 consecutive months, either the public utility or the customer
 19 22 may request that a new individual payment be established,
 19 23 subject to arbitration if necessary.
 19 24    3A.  a.  It is the intent of the general assembly that the
 19 25 board review the metering and billing practices of the
 19 26 utilities, and the related rules, on a regular basis.  Meter
 19 27 reading should be performed frequently for more accurate
 19 28 customer billing.
 19 29    b.  If a utility estimates a meter reading, the next
 19 30 monthly bill must accurately reflect the actual dates and
 19 31 changes in fuel prices and temperatures during the estimated
 19 32 month.  The utility shall not apply its highest cost, or an
 19 33 average cost, of fuel for the estimated month.
 19 34    4.  A public utility which that violates a provision of
 19 35 this section relating to the disconnection of service or which
 20  1 that violates a rule of the board relating to disconnection of
 20  2 service is subject to civil penalties imposed by the board
 20  3 under section 476.51.
 20  4    5.  The board shall establish rules which shall be uniform
 20  5 with respect to all public utilities furnishing gas or
 20  6 electricity relating to deposits which that may be required by
 20  7 the public utility for the initiation or reinstatement of
 20  8 service.  The limits imposed by this subsection shall be
 20  9 applied to investor-owned public utilities only, unless the
 20 10 board by rule extends the same limitations to all public
 20 11 utilities furnishing gas or electricity.
 20 12    a.  The deposit for a residential or commercial customer
 20 13 for a place which has previously received service shall not be
 20 14 greater than the highest billing of service for one month for
 20 15 the place in the previous twelve-month period two hundred
 20 16 dollars.
 20 17    b.  The deposit for a residential or a commercial customer
 20 18 for a place which has not previously received service or for
 20 19 an industrial customer shall be one-half of the customer's
 20 20 projected one month's usage for the place to be serviced as
 20 21 determined by the public utility according to rules
 20 22 established by the board.
 20 23    c.  This subsection does not prohibit a public utility from
 20 24 requiring payment of a customer's past due account with the
 20 25 utility prior to reinstatement of service; however, a customer
 20 26 can appeal this decision and require arbitration pursuant to
 20 27 subsection 6.
 20 28    d.  The rules shall allow a person other than the customer
 20 29 to pay the customer's deposit.  Upon termination of service to
 20 30 such a customer, the deposit plus accumulated interest less
 20 31 any unpaid utility bill of the customer, shall be reimbursed
 20 32 to the person who made the deposit.
 20 33    6.  Arbitration services shall be available for customers
 20 34 who cannot meet the payment guidelines established by rule
 20 35 under subsection 3, or who appeal a determination of a public
 21  1 utility under subsection 5.
 21  2    a.  The arbitration services shall be provided to the
 21  3 fullest extent possible by nonprofit organizations providing
 21  4 such services, and shall be supplemented as necessary by
 21  5 services provided with funds from the energy assistance fund
 21  6 created in section 476.20A.
 21  7    b.  Public utilities shall notify customers that they have
 21  8 the right to proceed to binding arbitration with the public
 21  9 utility, if direct negotiation in resolving payment or deposit
 21 10 disputes with the public utility is unsuccessful.
 21 11    c.  The parties shall accept an arbitrator's decision as
 21 12 binding.  The customer shall make the payment according to the
 21 13 terms of the decision, and the public utility shall accept the
 21 14 payment as payment in full from the customer.
 21 15    d.  The board shall adopt rules pursuant to chapter 17A to
 21 16 implement the arbitration process.
 21 17    Sec. 15.  NEW SECTION.  476.20A  ENERGY ASSISTANCE FUND.
 21 18    1.  An energy assistance fund is created in the state
 21 19 treasury.  Moneys deposited in the fund shall be used as
 21 20 follows:
 21 21    a.  For arbitration services under section 476.20.
 21 22    b.  To increase energy efficiency and weatherization.
 21 23    c.  To support research for and the use of emerging energy
 21 24 technology.
 21 25    2.  The energy assistance fund may receive moneys
 21 26 including, but not limited to, the following:
 21 27    a.  Moneys appropriated by the general assembly for the
 21 28 fund.
 21 29    b.  Moneys credited to the fund under section 476.20.
 21 30    c.  Contributions from customer utility bills under
 21 31 subsection 3.
 21 32    d.  Any other moneys available to, obtained, or accepted by
 21 33 the board for placement in the fund.
 21 34    3.  Each utility shall periodically notify its customers of
 21 35 the availability and purpose of the fund and provide them with
 22  1 forms on which they can authorize the utility to bill a
 22  2 contribution to the fund on a monthly basis.  The board shall
 22  3 adopt rules pursuant to chapter 17A regarding such
 22  4 contributions.
 22  5    4.  Notwithstanding section 12C.7, subsection 2, interest
 22  6 or earnings on moneys deposited in the energy assistance fund
 22  7 shall be credited to the fund.  Notwithstanding section 8.33,
 22  8 moneys remaining in the energy assistance fund at the end of a
 22  9 fiscal year shall not revert to the general fund of the state.
 22 10    Sec. 16.  Section 476.44, subsection 2, Code 2001, is
 22 11 amended to read as follows:
 22 12    2.  An electric utility subject to this division, except a
 22 13 utility which that elects rate regulation pursuant to section
 22 14 476.1A, shall not be required to purchase, at any one time,
 22 15 more than its share of one hundred five megawatts of power
 22 16 twenty percent of its Iowa retail load from alternative energy
 22 17 production facilities or small hydro facilities at the rates
 22 18 established pursuant to section 476.43.  The board shall
 22 19 allocate the one hundred five megawatts twenty percent based
 22 20 upon each utility's percentage of the total Iowa retail peak
 22 21 demand, for the each year, beginning January 1, 1990, of all
 22 22 utilities subject to this section.  If a utility undergoes
 22 23 reorganization as defined in section 476.76, the board shall
 22 24 combine the allocated purchases of power for each utility
 22 25 involved in the reorganization.
 22 26    Notwithstanding the one hundred five megawatt twenty
 22 27 percent maximum, the board may increase the amount of power
 22 28 that a utility is required to purchase at the rates
 22 29 established pursuant to section 476.43 if the board finds that
 22 30 a utility, including a reorganized utility, exceeds its 1990
 22 31 previous Iowa retail peak demand level by twenty percent, and
 22 32 the additional power the utility is required to purchase will
 22 33 encourage the development of alternate energy production
 22 34 facilities and small hydro facilities.  The increase shall not
 22 35 exceed the utility's increase in peak demand multiplied by the
 23  1 ratio of the utility's share of the one hundred five megawatt
 23  2 twenty percent maximum to its 1990 Iowa retail peak demand.
 23  3    Sec. 17.  Section 476.77, Code 2001, is amended by adding
 23  4 the following new subsection:
 23  5    NEW SUBSECTION.  3A.  The board may require additional
 23  6 reasonable terms and conditions to be added to the proposal
 23  7 for a merger as a condition for granting approval to the
 23  8 merger.  Such additional terms and conditions shall protect
 23  9 the interests of ratepayers, or the public interest.
 23 10    Sec. 18.  NEW SECTION.  476A.20  DEFINITIONS.
 23 11    For purposes of this subchapter, unless the context
 23 12 otherwise requires:
 23 13    1.  "Electric power agency" means an entity as defined in
 23 14 section 28F.2.
 23 15    2.  "Facility" means an electric power generating plant, or
 23 16 transmission line or system, as defined in section 476A.1.
 23 17    3.  "Public bond or obligation" means an obligation as
 23 18 defined in section 76.14.
 23 19    Sec. 19.  NEW SECTION.  476A.21  ELECTRIC POWER AGENCY –
 23 20 GENERAL AUTHORITY.
 23 21    In addition to other powers conferred upon an electric
 23 22 power agency by chapter 28F or other applicable law, an
 23 23 electric power agency may enter into and carry out joint
 23 24 agreements with other participants for the acquisition of
 23 25 ownership of a joint facility and for the planning, financing,
 23 26 operation, and maintenance of the joint facility, as provided
 23 27 in this subchapter.
 23 28    Sec. 20.  NEW SECTION.  476A.22  ELECTRIC POWER AGENCY –
 23 29 AUTHORITY – CONFLICTING PROVISIONS.
 23 30    1.  In addition to any powers conferred upon an electric
 23 31 power agency under chapter 28F or other applicable law, an
 23 32 electric power agency may exercise all other powers reasonably
 23 33 necessary or appropriate for or incidental to the effectuation
 23 34 of the electric power agency's authorized purposes, including
 23 35 without limitation, the powers enumerated in chapters 6A and
 24  1 6B for purposes of constructing or acquiring an electric power
 24  2 facility.
 24  3    2.  An electric power agency, in connection with its
 24  4 property and affairs, and in connection with property within
 24  5 its control, may exercise any and all powers that might be
 24  6 exercised by a natural person or a private corporation in
 24  7 connection with similar property and affairs.
 24  8    3.  The enumeration of specified powers and functions of an
 24  9 electric power agency in this subchapter is not a limitation
 24 10 of the powers of an electric power agency, but the procedures
 24 11 prescribed for exercising the powers and functions enumerated
 24 12 in this subchapter control and govern in the event of any
 24 13 conflict with any other provision of law.
 24 14    4.  The authority conferred pursuant to this subchapter
 24 15 applies to electric power agencies, notwithstanding any
 24 16 contrary provisions of section 28F.1.
 24 17    Sec. 21.  NEW SECTION.  476A.23  ISSUANCE OF PUBLIC BONDS
 24 18 OR OBLIGATIONS – PURPOSES – LIMITATIONS.
 24 19    1.  An electric power agency may from time to time issue
 24 20 its public bonds or obligations in such principal amounts as
 24 21 the electric power agency deems necessary to provide
 24 22 sufficient funds to carry out any of its purposes and powers,
 24 23 including but not limited to any of the following:
 24 24    a.  The acquisition or construction of any project to be
 24 25 owned or leased by the electric power agency, or the
 24 26 acquisition of any interest in such project or any right to
 24 27 the capacity of such project.
 24 28    b.  The funding or refunding of the principal of, or
 24 29 interest or redemption premiums on, any public bonds or
 24 30 obligations issued by the electric power agency whether or not
 24 31 the public bonds or obligations or interest to be funded or
 24 32 refunded have become due.
 24 33    c.  The establishment or increase of reserves to secure or
 24 34 to pay the public bonds or obligations or interest on the
 24 35 public bonds or obligations.
 25  1    d.  The payment of all other costs or expenses of the
 25  2 electric power agency incident to and necessary to carry out
 25  3 its purposes and powers.
 25  4    2.  Notwithstanding anything in this subchapter or chapter
 25  5 28F to the contrary, an electric power facility shall not be
 25  6 financed with the proceeds of public bonds or obligations, the
 25  7 interest on which is exempt from federal income tax, unless
 25  8 the public issuer of such public bonds or obligations
 25  9 covenants that the issuer shall comply with the requirements
 25 10 or limitations imposed by the Internal Revenue Code or other
 25 11 applicable federal law to preserve the tax exemption of
 25 12 interest payable on the bonds or obligations.
 25 13    Sec. 22.  NEW SECTION.  476A.24  PUBLIC BONDS OR
 25 14 OBLIGATIONS AUTHORIZED BY RESOLUTION OF BOARD – TERMS.
 25 15    1.  The board of directors of an electric power agency, by
 25 16 resolution, may authorize the issuance of public bonds or
 25 17 obligations of the electric power agency.
 25 18    2.  The public bonds or obligations may be issued in one or
 25 19 more series under the resolution or under a trust indenture or
 25 20 other security agreement.
 25 21    3.  The resolution, trust indenture, or other security
 25 22 agreement, with respect to such public bonds or obligations,
 25 23 shall provide for all of the following:
 25 24    a.  The date on the public bonds or obligations.
 25 25    b.  The time of maturity.
 25 26    c.  The rate of interest.
 25 27    d.  The denomination.
 25 28    e.  The form, either coupon or registered.
 25 29    f.  The conversion, registration, and exchange privileges.
 25 30    g.  The rank or priority.
 25 31    h.  The manner of execution.
 25 32    i.  The medium of payment, including the place of payment,
 25 33 either within or outside of the state.
 25 34    j.  The terms of redemption, either with or without
 25 35 premium.
 26  1    k.  Such other terms and conditions as set forth by the
 26  2 board in the resolution, trust indenture, or other security
 26  3 agreement.
 26  4    4.  Public bonds or obligations authorized by the board of
 26  5 directors shall not be subject to any restriction under other
 26  6 law with respect to the amount, maturity, interest rate, or
 26  7 other terms of obligation of a public agency or private
 26  8 person.
 26  9    5.  Chapter 75 shall not apply to public bonds or
 26 10 obligations authorized by the board of directors as provided
 26 11 in this section.
 26 12    Sec. 23.  NEW SECTION.  476A.25  PUBLIC BONDS OR
 26 13 OBLIGATIONS PAYABLE SOLELY FROM AGENCY REVENUES OR FUNDS.
 26 14    1.  The principal of and interest on any public bonds or
 26 15 obligations issued by an electric power agency shall be
 26 16 payable solely from the revenues or funds pledged or available
 26 17 for their payment as authorized in this subchapter.
 26 18    2.  Each public bond or obligation shall contain all of the
 26 19 following terms:
 26 20    a.  That the principal of or interest on such public bonds
 26 21 or obligation is payable solely from revenues or funds of the
 26 22 electric power agency.
 26 23    b.  That neither the state nor a political subdivision of
 26 24 the state other than the electric power agency, nor a public
 26 25 agency that is a member of the electric power agency is
 26 26 obligated to pay the principal or interest on such public
 26 27 bonds or obligations.
 26 28    c.  That neither the full faith and credit nor the taxing
 26 29 power of the state, of any political subdivision of the state,
 26 30 or of any such public agency is pledged to the payment of the
 26 31 principal of or the interest on the public bonds or
 26 32 obligations.
 26 33    Sec. 24.  NEW SECTION.  476A.26  PUBLIC BONDS OR
 26 34 OBLIGATIONS – TYPES – SOURCES FOR PAYMENT – SECURITY.
 26 35    1.  Except as otherwise expressly provided by this
 27  1 subchapter or by the electric power agency, every issue of
 27  2 public bonds or obligations of the electric power agency shall
 27  3 be payable out of any revenues or funds of the electric power
 27  4 agency, subject only to any agreements with the holders of
 27  5 particular public bonds or obligations pledging any particular
 27  6 revenues or funds.
 27  7    2.  An electric power agency may issue types of public
 27  8 bonds or obligations as it may determine, including public
 27  9 bonds or obligations as to which the principal and interest
 27 10 are payable exclusively from the revenues from one or more
 27 11 projects, or from an interest in such project or projects, or
 27 12 a right to capacity of such project or projects, or from any
 27 13 revenue-producing contract made by the electric power agency
 27 14 with any person, or from its revenues generally.
 27 15    3.  Any public bonds or obligations may be additionally
 27 16 secured by a pledge of any grant, subsidy, or contribution
 27 17 from any public agency or other person, or a pledge of any
 27 18 income or revenues, funds, or moneys of the electric power
 27 19 agency from any other source.
 27 20    Sec. 25.  NEW SECTION.  476A.27  PUBLIC BONDS OR
 27 21 OBLIGATIONS AND RATES FOR DEBT SERVICE NOT SUBJECT TO STATE
 27 22 APPROVAL.
 27 23    Public bonds or obligations of an electric power agency may
 27 24 be issued under this subchapter, and rents, rates, and charges
 27 25 may be established in the same manner as provided in section
 27 26 28F.5 and pledged for the security of public bonds or
 27 27 obligations and interest and redemption premiums on such
 27 28 public bonds or obligations, without obtaining the consent of
 27 29 any department, division, commission, board, bureau, or agency
 27 30 of the state and without any other proceeding or the happening
 27 31 of any other condition or occurrence, except as specifically
 27 32 required by this subchapter.
 27 33    Sec. 26.  NEW SECTION.  476A.28  PUBLIC BONDS OR
 27 34 OBLIGATIONS TO BE NEGOTIABLE.
 27 35    All public bonds or obligations of an electric power agency
 28  1 shall be negotiable within the meaning and for all of the
 28  2 purposes of the uniform commercial code, chapter 554, subject
 28  3 only to the registration requirement of section 76.10.
 28  4    Sec. 27.  NEW SECTION.  476A.29  VALIDITY OF PUBLIC BONDS
 28  5 OR OBLIGATIONS AT DELIVERY – TEMPORARY BONDS.
 28  6    1.  Any public bonds or obligations may be issued and
 28  7 delivered, notwithstanding that one or more of the officers
 28  8 executing them shall have ceased to hold office at the time
 28  9 when the public bonds or obligations are actually delivered.
 28 10    2.  Pending preparation of definitive bonds or obligations,
 28 11 an electric power agency may issue temporary bonds or
 28 12 obligations that shall be exchanged for the definitive bonds
 28 13 or obligations upon their issuance.
 28 14    Sec. 28.  NEW SECTION.  476A.30  PUBLIC OR PRIVATE SALE OF
 28 15 BONDS AND NOTES.
 28 16    Public bonds or obligations of an electric power agency may
 28 17 be sold at public or private sale for a price and in a manner
 28 18 determined by the electric power agency.
 28 19    Sec. 29.  NEW SECTION.  476A.31  PUBLIC BONDS OR
 28 20 OBLIGATIONS AS SUITABLE INVESTMENTS FOR GOVERNMENTAL UNITS,
 28 21 FINANCIAL INSTITUTIONS, AND FIDUCIARIES.
 28 22    The following persons may legally invest any debt service
 28 23 funds, money, or other funds belonging to such person or
 28 24 within such person's control in any public bonds or
 28 25 obligations issued pursuant to this subchapter:
 28 26    1.  A bank, trust company, savings association, building
 28 27 and loan association, savings and loan association, or
 28 28 investment company.
 28 29    2.  An insurance company, insurance association, or any
 28 30 other person carrying on an insurance business.
 28 31    3.  An executor, administrator, conservator, trustee, or
 28 32 other fiduciary.
 28 33    4.  Any other person authorized to invest in bonds or
 28 34 obligations of the state.
 28 35    Sec. 30.  NEW SECTION.  476A.32  RESOLUTION, TRUST
 29  1 INDENTURE, OR SECURITY AGREEMENT CONSTITUTES CONTRACT –
 29  2 PROVISIONS.
 29  3    The resolution, trust indenture, or other security
 29  4 agreement under which any public bonds or obligations are
 29  5 issued shall constitute a contract with the holders of the
 29  6 public bonds or obligations, and may contain provisions, among
 29  7 others, prescribing any of the following terms:
 29  8    1.  The terms and provisions of the public bonds or
 29  9 obligations.
 29 10    2.  The mortgage or pledge of and the grant of a security
 29 11 interest in any real or personal property and all or any part
 29 12 of the revenue from any project or any revenue producing
 29 13 contract made by the electric power agency with any person to
 29 14 secure the payment of public bonds or obligations, subject to
 29 15 any agreements with the holders of public bonds or obligations
 29 16 which might then exist.
 29 17    3.  The custody, collection, securing, investment, and
 29 18 payment of any revenues, assets, money, funds, or property
 29 19 with respect to which the electric power agency may have any
 29 20 rights or interest.
 29 21    4.  The rates or charges for electric energy sold by, or
 29 22 services rendered by, the electric power agency, the amount to
 29 23 be raised by the rates or charges, and the use and disposition
 29 24 of any or all revenue.
 29 25    5.  The creation of reserves or debt service funds and the
 29 26 regulation and disposition of such reserves or funds.
 29 27    6.  The purposes to which the proceeds from the sale of any
 29 28 public bonds or obligations to be issued may be applied, and
 29 29 the pledge of the proceeds to secure the payment of the public
 29 30 bonds or obligations.
 29 31    7.  Limitations on the issuance of any additional public
 29 32 bonds or obligations, the terms upon which additional public
 29 33 bonds or obligations may be issued and secured, and the
 29 34 refunding of outstanding public bonds or obligations.
 29 35    8.  The rank or priority of any public bonds or obligations
 30  1 with respect to any lien or security.
 30  2    9.  The creation of special funds or moneys to be held for
 30  3 operating expenses, payment, or redemption of public bonds or
 30  4 obligations, reserves or other purposes, and the use and
 30  5 disposition of moneys held in these funds.
 30  6    10.  The procedure by which the terms of any contract with
 30  7 or for the benefit of the holders of public bonds or
 30  8 obligations may be amended or abrogated, the amount of public
 30  9 bonds or obligations the holders of which must consent to such
 30 10 amendment or abrogation, and the manner in which consent may
 30 11 be given.
 30 12    11.  The definition of the acts or omissions to act that
 30 13 constitute a default in the duties of the electric power
 30 14 agency to holders of its public bonds or obligations, and the
 30 15 rights and remedies of the holders in the event of default
 30 16 including, if the electric power agency so determines, the
 30 17 right to accelerate the date of the maturation of the public
 30 18 bonds or obligations or the right to appoint a receiver or
 30 19 receivers of the property or revenues subject to the lien of
 30 20 the resolution, trust indenture, or other security agreement.
 30 21    12.  Any other or additional agreements with or for the
 30 22 benefit of the holders of public bonds or obligations or any
 30 23 covenants or restrictions necessary or desirable to safeguard
 30 24 the interests of the holders.
 30 25    13.  The custody of any of the electric power agency's
 30 26 property or investments, the safekeeping of such property or
 30 27 investments, the insurance to be carried on such property or
 30 28 investments, and the use and disposition of insurance
 30 29 proceeds.
 30 30    14.  The vesting in a trustee or trustees, within or
 30 31 outside the state, of such property, rights, powers, and
 30 32 duties as the electric power agency may determine; or the
 30 33 limiting or abrogating of the rights of the holders of any
 30 34 public bonds or obligations to appoint a trustee, or the
 30 35 limiting of the rights, powers, and duties of such trustee.
 31  1    15.  The appointment of and the establishment of the duties
 31  2 and obligations of any paying agent or other fiduciary within
 31  3 or outside the state.
 31  4    Sec. 31.  NEW SECTION.  476A.33  MORTGAGE OR TRUST DEED TO
 31  5 SECURE BONDS.
 31  6    For the security of public bonds or obligations issued or
 31  7 to be issued by an electric power agency, the electric power
 31  8 agency may mortgage or execute deeds of trust of the whole or
 31  9 any part of its property.
 31 10    Sec. 32.  NEW SECTION.  476A.34  NO PERSONAL LIABILITY ON
 31 11 PUBLIC BONDS OR OBLIGATIONS.
 31 12    An official, director, member of an electric power agency,
 31 13 or any person executing public bonds or obligations shall not
 31 14 be liable personally on the public bonds or obligations or be
 31 15 subject to any personal liability or accountability by reason
 31 16 of the issuance of such public bonds or obligations.
 31 17    Sec. 33.  NEW SECTION.  476A.35  REPURCHASE OF SECURITIES.
 31 18    An electric power agency may purchase public bonds or
 31 19 obligations out of any funds available for such purchase, and
 31 20 hold, pledge, cancel, or resell the public bonds or
 31 21 obligations, subject to and in accordance with any agreements
 31 22 with the holders.
 31 23    Sec. 34.  NEW SECTION.  476A.36  PLEDGE OF REVENUE AS
 31 24 SECURITY.
 31 25    An electric power agency may pledge its rates, rents, and
 31 26 other revenues, or any part of such rates, rents, and
 31 27 revenues, as security for the repayment, with interest and
 31 28 redemption premiums, if any, of the moneys borrowed by the
 31 29 electric power agency or advanced to the electric power agency
 31 30 for any of its authorized purposes and as security for the
 31 31 payment of moneys due and owed by the electric power agency
 31 32 under any contract.
 31 33    Sec. 35.  CODE EDITOR DIRECTIVE.  The Code editor shall
 31 34 change references to "this chapter" in sections 476A.1 through
 31 35 476A.15 as necessary and appropriate to reflect the addition
 32  1 of the new subchapter to chapter 476A as a result of this Act.
 32  2    Sec. 36.  LOW-INCOME ENERGY ASSISTANCE PROGRAM.  There is
 32  3 appropriated from the general fund of the state to the
 32  4 department of human rights for the fiscal period beginning
 32  5 July 1, 2001, and ending June 30, 2003, the following amount,
 32  6 or so much thereof as is necessary, to be used for the purpose
 32  7 designated:
 32  8    For providing low-income heating energy assistance to
 32  9 eligible low-income customers of rate-regulated utilities,
 32 10 including salaries, support, maintenance, and miscellaneous
 32 11 purposes:  
 32 12 .................................................. $ 40,000,000
 32 13                           EXPLANATION
 32 14    The bill addresses energy policy, including increased
 32 15 energy efficiency, increased development and use of
 32 16 alternative and renewable energy sources, reliable generation
 32 17 and transmission of electricity, and the protection of Iowa
 32 18 consumers.
 32 19    The bill provides for the creation of the Iowa energy
 32 20 commission within the department of natural resources.  The
 32 21 energy commission will be composed of seven members, appointed
 32 22 by the governor, serving staggered, four-year terms.  The
 32 23 members should have substantial knowledge of the subjects of
 32 24 energy development and conservation.
 32 25    The commission is directed to report annually to the
 32 26 general assembly on at least the following topics:  (1) the
 32 27 latest technologies of energy efficiency and renewable
 32 28 resources; (2) formulation of a statewide education policy to
 32 29 inform media and citizens of energy issues; (3) feasibility of
 32 30 implementing various alternative energy sources; (4)
 32 31 regulation of public utilities; (5) improving the efficiency
 32 32 of projects that utilize state funds.
 32 33    The commission is also directed to establish policy for the
 32 34 department related to Code chapter 473, hear appeals in
 32 35 contested cases related to actions under Code chapter 473,
 33  1 approve or amend the budget request prepared by the director
 33  2 for programs authorized under Code chapter 473, and advise the
 33  3 governor on developing energy policy.  A related amendment is
 33  4 made to Code section 455A.6 to remove Code chapter 473 from
 33  5 the jurisdiction of the environmental protection commission.
 33  6    The bill amends Code section 473.1, to name the energy
 33  7 commission as the commission responsible for the chapter.
 33  8    The bill amends Code section 473.3, to express the policy
 33  9 of the state regarding energy efficiency.
 33 10    The bill amends Code section 473.7, to provide that the
 33 11 energy commission assume the duties of the department under
 33 12 Code chapter 473, including development of a plan for the
 33 13 development, management, and efficient utilization of all
 33 14 energy resources in the state, to be presented to the general
 33 15 assembly by February 1, 2003, and updated on a biennial basis.
 33 16 The commission shall also be a repository for energy data, and
 33 17 is directed to collect data necessary to forecast future
 33 18 energy demands.
 33 19    The bill creates new Code section 473.14, regarding
 33 20 implementation of energy conservation measures for school
 33 21 corporations.  Any energy efficiency project approved by the
 33 22 commission that is completed by a school corporation subject
 33 23 to Code section 298.18 is exempt from the bonded debt levy
 33 24 limits in Code section 298.18.  The school corporation must
 33 25 submit an energy management plan, an energy audit, and an
 33 26 engineering analysis of the energy conservation measures.  The
 33 27 school corporation must report annually to the commission, and
 33 28 make such report available to the residents of the election
 33 29 district for the school corporation.
 33 30    The bill amends Code section 473.17 to provide that the
 33 31 Eighty-first General Assembly shall review the activities and
 33 32 performance of the commission in 2005, and make a
 33 33 determination regarding the status and duties of the
 33 34 commission.  The review will be performed every 10 years
 33 35 thereafter.
 34  1    The bill adds a new subsection to Code section 476.2 to
 34  2 provide that the utilities board shall emphasize the
 34  3 maintenance of a safe, reliable, and adequate power system
 34  4 through application of standards, construction of adequate
 34  5 generation and transmission, and maintenance of the existing
 34  6 power grid.  The bill amends another subsection to provide
 34  7 that the utilities board shall provide a report to the energy
 34  8 commission on the following subjects:  (1) an analysis of the
 34  9 level of investment and incentive required to increase the
 34 10 energy generated from alternative or renewable sources by 10,
 34 11 20, and 30 percent; (2) recommendations for promoting
 34 12 investment in integrated small-scale renewable energy systems;
 34 13 (3) an analysis of the costs and benefits of generating and
 34 14 transmitting electricity from renewable sources, and a
 34 15 proposal for a formula for establishing a fair cost for
 34 16 transmitting electricity from renewable sources; (4)
 34 17 recommendations regarding establishing of a standard system
 34 18 for net metering and connecting renewable electricity
 34 19 generators to the electric transmission grid.
 34 20    The bill amends Code section 476.3 to provide that the
 34 21 board shall not order a refund in a rate case that is greater
 34 22 than the amount specified in the petition, plus interest.  The
 34 23 interest rate is the same as for cases under Code section
 34 24 476.6.
 34 25    The bill amends Code section 476.6 to provide that the
 34 26 utilities board immediately reinstate the filing and
 34 27 evaluation of energy efficiency plans by gas and electric
 34 28 utilities.  The bill adds that the plans shall include rebates
 34 29 for the purchase and use of energy efficient appliances, and a
 34 30 small business energy assistance program developed by the
 34 31 energy commission.  Utilities are required to make energy
 34 32 audits available for all customers.
 34 33    The bill adds a new subsection to Code section 476.8 to
 34 34 provide that the utilities board has the authority to order a
 34 35 rate-regulated public utility to construct an electric
 35  1 generating facility, transmission facility, or both, as
 35  2 necessary to ensure continued electric reliability, and to
 35  3 maintain reasonably adequate, reliable, safe, and cost-
 35  4 efficient electric service to Iowa consumers.  The prudent and
 35  5 reasonable costs incurred in construction and operation shall
 35  6 be included in rates.
 35  7    The bill amends Code section 476.20 to provide that an
 35  8 investor-owned public utility furnishing gas or electricity is
 35  9 prohibited from disconnecting service from November 1 through
 35 10 June 1, provided that the customer either currently is or has
 35 11 been a participant in any state or federal assistance program
 35 12 at any time during the previous 12 months, or pays the lesser
 35 13 of a minimum of 50 percent of the current monthly payment or
 35 14 $300 for service during the months of November through May,
 35 15 provided that the board finds that public utility bills have
 35 16 or are likely to substantially increase due to causes other
 35 17 than increased consumption due to weather conditions.  Late
 35 18 charges are waived for such consumers, as well.
 35 19    A customer with a disability or medical need requiring
 35 20 environmental control or assistive medical devices is eligible
 35 21 for exemption from disconnection, by applying to the utilities
 35 22 board and presenting a medical statement from a licensed
 35 23 health care professional.  A person submitting false
 35 24 information with the intent to defraud is subject to a civil
 35 25 penalty of $1,000.  The bill provides for establishment of
 35 26 payment standards according to income guidelines for persons
 35 27 with such disabilities, and provides for arbitration if
 35 28 necessary, if the consumer is unable to meet the payment
 35 29 guidelines for two consecutive months.
 35 30    The bill states that it is the intent of the general
 35 31 assembly for the utilities board to review the metering and
 35 32 billing practices of utilities, and the related rules, on a
 35 33 regular basis.  Meter reading should be performed more
 35 34 frequently for more accurate customer billing.  If a utility
 35 35 estimates a meter reading, the utility shall not apply its
 36  1 highest cost, or an average cost, of fuel for the estimated
 36  2 month.
 36  3    The bill provides for a $200 deposit for residential
 36  4 utilities, and for one-half of a projected one-month usage for
 36  5 a commercial customer.
 36  6    The bill provides for binding arbitration services for
 36  7 customers who cannot meet payment guidelines under Code
 36  8 section 476.20, or who appeal a determination of a public
 36  9 utility to require payment of a customer's past due account
 36 10 prior to reinstating service.  The arbitration services shall
 36 11 be provided by nonprofit organizations to the fullest extent
 36 12 possible, and shall be supplemented as necessary by services
 36 13 provided with funds provided from the energy assistance fund
 36 14 created in Code section 476.20A.
 36 15    The energy assistance fund in Code section 476.20A is
 36 16 intended for use for arbitration services under Code section
 36 17 476.20, to increase energy efficiency and weatherization, and
 36 18 to support research for and the use of emerging energy
 36 19 technology.  The fund receives moneys from civil penalties
 36 20 under Code section 476.20 and utility customer contribution,
 36 21 among other sources.
 36 22    The bill amends Code section 476.44 to provide that
 36 23 required purchases from alternate energy production facilities
 36 24 shall be subject to a maximum of 20 percent of a utility's
 36 25 Iowa retail load.
 36 26    This bill creates new sections of Code chapter 476A,
 36 27 regarding electric power generators, that address joint
 36 28 agreements for the acquisition of ownership, and for the
 36 29 planning, financing, operation, and maintenance of joint
 36 30 facilities devoted to electric power generation and
 36 31 transmission, and providing for the bonding authority of
 36 32 electric power agencies.
 36 33    The bill creates new Code section 476A.20, which provides
 36 34 definitions for "electric power agency", "facility", and
 36 35 "public bond or obligation".  "Electric power agency" means an
 37  1 entity as defined in Code section 28F.2, which is an entity
 37  2 financing or acquiring electric power facilities pursuant to
 37  3 Code chapter 28F or Code chapter 28E.  "Public bond or
 37  4 obligation" means an obligation as defined in Code section
 37  5 76.14, which is any obligation issued by or on behalf of the
 37  6 state, an agency of the state, or a political subdivision of
 37  7 the state.  A "facility" is an electric power generating
 37  8 plant, or transmission line or system, as defined in Code
 37  9 section 476A.1.
 37 10    The bill creates new Code section 476A.21, providing for
 37 11 the general authority of an electric power agency to enter
 37 12 into and carry out joint agreements with other participants
 37 13 for the acquisition of ownership of a joint facility, and for
 37 14 the planning, financing, operation, and maintenance of the
 37 15 joint facility.
 37 16    The bill creates new Code section 476A.22, providing for
 37 17 the electric power agency to exercise all powers necessary and
 37 18 appropriate, that might be exercised by a natural person or
 37 19 private corporation, for constructing or acquiring an electric
 37 20 power facility.  The new Code sections added to Code chapter
 37 21 476A shall govern in the event of conflict.
 37 22    The bill adds new Code section 476A.23, providing for the
 37 23 issuance of public bonds to carry out any purposes and powers,
 37 24 including the following:  (1) the acquisition or construction
 37 25 of any project to be owned or leased by the electric power
 37 26 agency, or any interest in, or any right to the capacity of
 37 27 such project; (2) the funding or refunding of the principal,
 37 28 interest, or redemption premiums relating to any public bonds
 37 29 or obligations issued by the electric power agency, whether or
 37 30 not the public bonds or obligations or interest have become
 37 31 due; (3) the establishment or increase of reserves to secure
 37 32 or to pay the public bond or obligations or interest; (4) the
 37 33 payment of all other costs or expenses of the electric power
 37 34 agency necessary to carry out its purposes and powers.  An
 37 35 electric power facility shall not be financed with the
 38  1 proceeds from public bonds or obligations, the interest on
 38  2 which is exempt from federal income tax, unless the public
 38  3 issuer of such public bonds or obligations promises that the
 38  4 issuer shall comply with the requirements of the Internal
 38  5 Revenue Code to preserve the tax exemption of interest payable
 38  6 on the bonds or obligations.
 38  7    The bill enacts new Code section 476A.24, regarding public
 38  8 bonds or obligations authorized by resolution of the board of
 38  9 directors of the electric power agency, or under a trust
 38 10 indenture or other security agreement, that must specifically
 38 11 address a list of facts about the bonds.  The bonds may be
 38 12 issued in one or more series, and must not be subject to any
 38 13 restriction under other law regarding the amount, maturity,
 38 14 interest rate, or other terms of obligation of a public agency
 38 15 or private person.  Code chapter 75, regarding the
 38 16 authorization and sale of public bonds, does not apply to
 38 17 public bonds or obligations authorized under Code section
 38 18 476A.24.
 38 19    This bill creates new Code section 476A.25, regarding
 38 20 public bonds or obligations payable solely from agency
 38 21 revenues or funds.  The principal of and interest upon any
 38 22 public bonds and obligations issued by an electric power
 38 23 agency shall be payable solely from the revenues or funds
 38 24 pledged or available for their payment.  Each public bond or
 38 25 obligation shall contain all of the following terms:  (1) that
 38 26 the principal of or interest on such public bonds or
 38 27 obligation is payable solely from revenues or funds of the
 38 28 electric power agency; (2) that neither the state, or a
 38 29 political subdivision of the state other than the electric
 38 30 power agency, nor a public agency that is a member of the
 38 31 electric power agency is obligated to pay the principal or
 38 32 interest on such public bonds or obligations; (3) that the
 38 33 full faith and credit or the taxing power of the state or any
 38 34 political subdivision of the state or of any such public
 38 35 agency is not pledged to the payment of the principal of or
 39  1 the interest on the public bonds or obligations.
 39  2    The bill creates new Code section 476A.26, regarding
 39  3 sources for payment and security for public bonds and
 39  4 obligations.  Public bonds or obligations are payable from the
 39  5 revenues or funds of the electric power agency, subject to any
 39  6 agreements with holders of particular public bonds or
 39  7 obligations pledging any particular revenues or funds.  An
 39  8 electric power agency may issue types of public bonds or
 39  9 obligations as it may determine, including that where the
 39 10 principal and interest are payable exclusively from the
 39 11 revenues from one or more projects or from interest in such
 39 12 project or projects, or a right to capacity of such project or
 39 13 projects, or from any revenue-producing contract made by the
 39 14 electric power agency with any person.  Any public bonds or
 39 15 obligations may be secured by a pledge of any grant, subsidy,
 39 16 or contribution from any public agency or other person, or a
 39 17 pledge of any income or revenues, funds, or moneys of the
 39 18 electric power agency from any other source.
 39 19    The bill creates new Code section 476A.27, which provides
 39 20 that public bonds or obligations of an electric power agency
 39 21 may be issued pursuant to the new Code sections established
 39 22 under Code chapter 476A, and rates may be established in the
 39 23 same manner as provided in Code section 28F.5 without the
 39 24 consent of any department of the state.  New Code section
 39 25 476A.28 provides that all public bonds or obligations of an
 39 26 electric power agency shall be negotiable within the meaning
 39 27 of the uniform commercial code.
 39 28    New Code section 476A.29 provides that the electric power
 39 29 agency may issue temporary bonds or obligations that shall be
 39 30 exchanged for the definitive bonds or obligations upon their
 39 31 issuance, and that public bonds or obligations may be issued
 39 32 and delivered notwithstanding that one or more of the officers
 39 33 executing them shall have ceased to hold office at the time
 39 34 when the public bonds or obligations are actually delivered.
 39 35    New Code section 476A.30 provides that public bonds or
 40  1 obligations of an electric power agency may be sold at public
 40  2 or private sale for a price and in a manner determined by the
 40  3 electric power agency.  New Code section 476A.31 provides that
 40  4 the following persons may legally invest any debt service
 40  5 funds, money, or other funds belonging to such person or
 40  6 within such person's control in any public bonds or
 40  7 obligations issued pursuant to the new Code sections added to
 40  8 Code chapter 476A:  (1) a bank, trust company, savings
 40  9 association, building and loan association, savings and loan
 40 10 association, or investment company; (2) an insurance company,
 40 11 insurance association, or any other person carrying on an
 40 12 insurance business; (3) an executor, administrator,
 40 13 conservator, trustee, or other fiduciary; (4) any other person
 40 14 authorized to invest in bonds or obligations of the state.
 40 15    The bill creates new Code section 476A.32, providing that
 40 16 the resolution, trust indenture, or other security agreement
 40 17 under which any public bonds or obligations are issued shall
 40 18 constitute a contract with the holders of the public bonds or
 40 19 obligations.  Code section 476A.32 also provides that the
 40 20 document may contain provisions, among others, that address
 40 21 the following terms:  (1) the terms and provisions of the
 40 22 public bonds or obligations; (2) the mortgage or pledge of and
 40 23 the grant of a security interest in any real or personal
 40 24 property and all or any part of the revenue from any project
 40 25 or any revenue-producing contract made by the electric power
 40 26 agency with any person to secure the payment of the public
 40 27 bonds or obligations, subject to any agreements with the
 40 28 holders of public bonds or obligations which might then exist;
 40 29 (3) the custody, collection, securing, investment, and payment
 40 30 of any revenues, assets, money, funds, or property with
 40 31 respect to which the electric power agency may have any rights
 40 32 or interest; (4) the rates or charges for electric energy sold
 40 33 by, or services rendered by, the electric power agency, the
 40 34 amount to be raised by the rates or charges, and the use and
 40 35 disposition of any or all revenue; (5) the creation of
 41  1 reserves or debt service funds and the regulation and
 41  2 disposition of such reserves or funds; (6) the purposes to
 41  3 which the proceeds from the sale of any public bonds or
 41  4 obligations to be issued may be applied, and the pledge of the
 41  5 proceeds to secure the payment of the public bonds or
 41  6 obligations; (7) limitations on the issuance of any additional
 41  7 public bonds or obligations, the terms upon which additional
 41  8 public bonds or obligations may be issued and secured, and the
 41  9 refunding of outstanding public bonds or obligations; (8) the
 41 10 rank or priority of any public bonds or obligations with
 41 11 respect to any lien or security; (9) the creation of special
 41 12 funds or moneys to be held for operating expenses, payment or
 41 13 redemption of public bonds or obligations, reserves, or other
 41 14 purposes, and the use and disposition of moneys held in these
 41 15 funds; (10) the procedure by which the terms of any contract
 41 16 with or for the benefit of the holders of the public bonds or
 41 17 obligations may be amended or abrogated, the amount of public
 41 18 bonds or obligations the holders of which must consent to such
 41 19 amendment or abrogation, and the manner in which consent may
 41 20 be given; (11) the definition of the acts or omissions to act
 41 21 that shall constitute a default in the duties of the electric
 41 22 power agency to holders of its public bonds or obligations,
 41 23 and the rights and remedies of the holders in the event of
 41 24 default, including, if the electric power agency so
 41 25 determines, the right to accelerate the due date of the
 41 26 maturation of the public bonds or obligations or the right to
 41 27 appoint a receiver of the property or revenues; (12) any other
 41 28 agreements for the benefit of the holders of the public bonds
 41 29 or obligations; (13) the custody, safekeeping, and insurance
 41 30 for any of the electric power agency's property or
 41 31 investments, including the use and disposition of insurance
 41 32 proceeds; (14) the vesting of rights, powers, and duties in a
 41 33 trustee; the limiting or abrogating of the rights of the
 41 34 holders of any public bonds or obligations to appoint a
 41 35 trustee; or the limiting or the rights, powers, and duties of
 42  1 such trustee; (15) the appointment and establishment of duties
 42  2 and obligations of any paying agent or other fiduciary.
 42  3    The bill creates new Code section 476A.33, providing that
 42  4 the electric power agency may mortgage or execute deeds of
 42  5 trust of the whole or any part of its property for the
 42  6 security of public bonds or obligations issued or to be
 42  7 issued.
 42  8    New Code section 476A.34 provides that an official,
 42  9 director, member of an electric power agency, or any person
 42 10 executing public bonds or obligations shall not be personally
 42 11 liable on the public bonds or obligations, or be subject to
 42 12 personal liability or accountability by issuance of the public
 42 13 bonds or obligations.
 42 14    New Code section 476A.35 provides that an electric power
 42 15 agency may purchase public bonds or obligations out of any
 42 16 funds available for such purchase, and may hold, pledge,
 42 17 cancel, or resell the public bonds or obligations in
 42 18 accordance with any agreements with the holders.
 42 19    New Code section 476A.36 provides that an electric power
 42 20 agency may pledge its rates, rents, and other revenues as
 42 21 security for the repayment and payment of moneys due and owed
 42 22 by it under any contract.
 42 23    The bill provides that the Code editor may change the use
 42 24 of the term "this chapter" in the remainder of Code chapter
 42 25 476A to accommodate the addition of the new subchapter.
 42 26    The bill also makes an appropriation of $40 million for the
 42 27 fiscal period from July 1, 2001, through June 30, 2003, for
 42 28 low-income heating energy assistance to eligible low-income
 42 29 customers of rate-regulated utilities.  
 42 30 LSB 2550YH 79
 42 31 jj/pj/5.1
     

Text: HF00639                           Text: HF00641
Text: HF00600 - HF00699                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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