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House File 659

Partial Bill History

Bill Text

PAG LIN
  1  1                                           HOUSE FILE 659
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO OWNERSHIP OF ALTERNATE ENERGY PRODUCTION FACILITIES
  1  5    BY PUBLIC UTILITIES, MAKING RELATED CHANGES, AND PROVIDING
  1  6    AN EFFECTIVE DATE.
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9 
  1 10    Section 1.  Section 476.23, subsection 1, Code 2003, is
  1 11 amended to read as follows:
  1 12    1.  An electric utility shall not construct or extend
  1 13 facilities or furnish or offer to furnish electric service to
  1 14 the existing point of delivery of any customer already
  1 15 receiving electric service from another electric utility
  1 16 without having first filed with the board the express written
  1 17 agreement of the electric utility presently serving this
  1 18 customer, except as otherwise provided in this section.  Any
  1 19 municipal corporation, after being authorized by a vote of the
  1 20 people, or any electric utility may file a petition with the
  1 21 board requesting a certificate of authority to furnish
  1 22 electric service to the existing point of delivery of any
  1 23 customer already receiving electric service from another
  1 24 electric utility.  If, after notice by the board to the
  1 25 electric utility currently serving the customer, objection to
  1 26 the petition is not filed and investigation is not deemed
  1 27 necessary, the board shall issue a certificate within thirty
  1 28 days of the filing of the petition.  When an objection is
  1 29 filed, if the board, after notice and opportunity for hearing,
  1 30 determines that service to the customer by the petitioner is
  1 31 in the public interest, including consideration of any
  1 32 unnecessary duplication of facilities, it shall grant this
  1 33 certificate in whole or in part, upon such terms, conditions,
  1 34 and restrictions as may be justified.  Whether or not an
  1 35 objection is filed, any certificate issued shall require that
  2  1 the petitioner pay to the electric utility presently serving
  2  2 the customer, the reasonable price for facilities serving the
  2  3 customer.  This price determination by the board shall include
  2  4 due consideration of the cost of the facilities being
  2  5 acquired,; any necessary generating capacity and transmission
  2  6 capacity dedicated to the customer, including, but not limited
  2  7 to, electric power generating facilities and alternate energy
  2  8 production facilities not yet in service but for which the
  2  9 board has issued an order pursuant to section 476.53, and
  2 10 electric power generating facility emissions plan budgets
  2 11 approved by the board pursuant to section 476.6, subsection
  2 12 25; depreciation,; loss of revenue,; and the cost of
  2 13 facilities necessary to reintegrate the system of the utility
  2 14 after detaching the portion sold.
  2 15    Sec. 2.  Section 476.43, subsection 1, Code 2003, is
  2 16 amended to read as follows:
  2 17    1.  Subject to section 476.44, the board shall require
  2 18 electric utilities to enter into long-term contracts to do
  2 19 both of the following under terms and conditions that the
  2 20 board finds are just and economically reasonable for the
  2 21 electric utilities' customers, are nondiscriminatory to
  2 22 alternate energy producers and small hydro producers, and will
  2 23 further the policy stated in section 476.41:
  2 24    a.  Purchase At least one of the following:
  2 25    (1)  Own alternate energy production facilities or small
  2 26 hydro facilities located in this state.
  2 27    (2)  Enter into long-term contracts to purchase or wheel
  2 28 electricity from alternate energy production facilities or
  2 29 small hydro facilities located in the utility's service area
  2 30 under the terms and conditions that the board finds are just
  2 31 and economically reasonable to the electric utilities'
  2 32 ratepayers, are nondiscriminatory to alternate energy
  2 33 producers and small hydro producers and will further the
  2 34 policy stated in section 476.41.
  2 35    b.  Provide for the availability of supplemental or backup
  3  1 power to alternate energy production facilities or small hydro
  3  2 facilities on a nondiscriminatory basis and at just and
  3  3 reasonable rates.
  3  4    Sec. 3.  Section 476.44, subsection 2, Code 2003, is
  3  5 amended to read as follows:
  3  6    2.  An electric utility subject to this division, except a
  3  7 utility which that elects rate regulation pursuant to section
  3  8 476.1A, shall not be required to own or purchase, at any one
  3  9 time, more than its share of one hundred five megawatts of
  3 10 power from alternative energy production facilities or small
  3 11 hydro facilities at the rates established pursuant to section
  3 12 476.43.  The board shall allocate the one hundred five
  3 13 megawatts based upon each utility's percentage of the total
  3 14 Iowa retail peak demand, for the year beginning January 1,
  3 15 1990, of all utilities subject to this section.  If a utility
  3 16 undergoes reorganization as defined in section 476.76, the
  3 17 board shall combine the allocated purchases of power for each
  3 18 utility involved in the reorganization.
  3 19    Notwithstanding the one hundred five megawatt maximum, the
  3 20 board may increase the amount of power that a utility is
  3 21 required to own or purchase at the rates established pursuant
  3 22 to section 476.43 if the board finds that a utility, including
  3 23 a reorganized utility, exceeds its 1990 Iowa retail peak
  3 24 demand by twenty percent and the additional power the utility
  3 25 is required to purchase will encourage the development of
  3 26 alternate energy production facilities and small hydro
  3 27 facilities.  The increase shall not exceed the utility's
  3 28 increase in peak demand multiplied by the ratio of the
  3 29 utility's share of the one hundred five megawatt maximum to
  3 30 its 1990 Iowa retail peak demand.
  3 31    Sec. 4.  Section 476.45, Code 2003, is amended to read as
  3 32 follows:
  3 33    476.45  EXEMPTION FROM EXCESS CAPACITY.
  3 34    Capacity purchased from of an alternate energy production
  3 35 facility or small hydro facility, that is owned or purchased
  4  1 by an electric utility, shall not be included in a calculation
  4  2 of an electric utility's excess generating capacity for rate-
  4  3 making ratemaking purposes.
  4  4    Sec. 5.  Section 476.53, subsection 3, paragraph b, Code
  4  5 2003, is amended to read as follows:
  4  6    b.  In determining the applicable ratemaking principles,
  4  7 the board shall not be limited to traditional ratemaking
  4  8 principles or traditional cost recovery mechanisms.  Among the
  4  9 principles and mechanisms the board may consider, the board
  4 10 has the authority to approve ratemaking principles proposed by
  4 11 a rate-regulated public utility that provide for reasonable
  4 12 restrictions upon the ability of the public utility to seek a
  4 13 general increase in electric rates under section 476.6 for at
  4 14 least three years after the generation facility begins
  4 15 providing service to Iowa customers.
  4 16    Sec. 6.  EFFECTIVE DATE.  This Act, being deemed of
  4 17 immediate importance, takes effect upon enactment.  
  4 18 
  4 19 
  4 20                                                             
  4 21                               CHRISTOPHER C. RANTS
  4 22                               Speaker of the House
  4 23 
  4 24 
  4 25                                                             
  4 26                               MARY E. KRAMER
  4 27                               President of the Senate
  4 28 
  4 29    I hereby certify that this bill originated in the House and
  4 30 is known as House File 659, Eightieth General Assembly.
  4 31 
  4 32 
  4 33                                                             
  4 34                               MARGARET THOMSON
  4 35                               Chief Clerk of the House
  5  1 Approved                , 2003
  5  2 
  5  3 
  5  4                            
  5  5 THOMAS J. VILSACK
  5  6 Governor
     

Text: HF00658                           Text: HF00660
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