House Journal: Page 39: Tuesday, June 19, 2001
30 power generating facility, or a new alternate energy
31 production facility as defined in section 476.42, the
32 board shall specify in advance, by order issued after
33 a contested case proceeding, the ratemaking principles
34 that will apply when the costs of the facility are
35 included in regulated electric rates.
36 b. In determining the applicable ratemaking
37 principles, the board shall not be limited to
38 traditional ratemaking principles or traditional cost
39 recovery mechanisms.
40 c. In determining the applicable ratemaking
41 principles, the board shall make the following
42 findings:
43 (1) The rate-regulated public utility has in
44 effect a board-approved energy efficiency plan as
45 required under section 476.6, subsection 19.
46 (2) The rate-regulated public utility has
47 demonstrated to the board that the public utility has
48 considered other sources for long-term electric supply
49 and that the facility or lease is reasonable when
50 compared to other feasible alternative sources of
Page 8
1 supply. The rate-regulated public utility may satisfy
2 the requirements of this subparagraph through a
3 competitive bidding process, under rules adopted by
4 the board, that demonstrate the facility or lease is a
5 reasonable alternative to meet its electric supply
6 needs.
7 d. The applicable ratemaking principles shall be
8 determined in a contested case proceeding, which
9 proceeding may be combined with the proceeding for
10 issuance of a certificate conducted pursuant to
11 chapter 476A.
12 e. The order setting forth the applicable
13 ratemaking principles shall be issued prior to the
14 commencement of construction or lease of the facility.
15 f. Following issuance of the order, the rate-
16 regulated public utility shall have the option of
17 proceeding with construction or lease of the facility
18 in Iowa, or withdrawing its application for a
19 certificate under chapter 476A.
20 g. Notwithstanding any provision of this chapter
21 to the contrary, the ratemaking principles established
22 by the order issued pursuant to paragraph "e" shall be
23 binding with regard to the specific electric power
24 generating facility in any subsequent rate proceeding.
25 Sec. 13. Section 476A.4, Code 2001, is amended by
26 adding the following new subsection:
27 NEW SUBSECTION. 5. A proceeding for the issuance
28 of a certificate under section 476A.5 may be
© 2001 Cornell College and
League of Women Voters of Iowa
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