Text: SF00431 Text: SF00433 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.23, subsection 1, Code 2003, is 1 2 amended to read as follows: 1 3 1. An electric utility shall not construct or extend 1 4 facilities or furnish or offer to furnish electric service to 1 5 the existing point of delivery of any customer already 1 6 receiving electric service from another electric utility 1 7 without having first filed with the board the express written 1 8 agreement of the electric utility presently serving this 1 9 customer, except as otherwise provided in this section. Any 1 10 municipal corporation, after being authorized by a vote of the 1 11 people, or any electric utility may file a petition with the 1 12 board requesting a certificate of authority to furnish 1 13 electric service to the existing point of delivery of any 1 14 customer already receiving electric service from another 1 15 electric utility. If, after notice by the board to the 1 16 electric utility currently serving the customer, objection to 1 17 the petition is not filed and investigation is not deemed 1 18 necessary, the board shall issue a certificate within thirty 1 19 days of the filing of the petition. When an objection is 1 20 filed, if the board, after notice and opportunity for hearing, 1 21 determines that service to the customer by the petitioner is 1 22 in the public interest, including consideration of any 1 23 unnecessary duplication of facilities, it shall grant this 1 24 certificate in whole or in part, upon such terms, conditions, 1 25 and restrictions as may be justified. Whether or not an 1 26 objection is filed, any certificate issued shall require that 1 27 the petitioner pay to the electric utility presently serving 1 28 the customer, the reasonable price for facilities serving the 1 29 customer. This price determination by the board shall include 1 30 due consideration of the cost of the facilities being 1 31 acquired,; any necessary generating capacity and transmission 1 32 capacity dedicated to the customer, including, but not limited 1 33 to, electric power generating facilities and alternate energy 1 34 production facilities not yet in service but for which the 1 35 board has issued an order pursuant to section 476.53, and 2 1 electric power generating facility emissions plan budgets 2 2 approved by the board pursuant to section 476.6, subsection 2 3 25; depreciation,; loss of revenue,; and the cost of 2 4 facilities necessary to reintegrate the system of the utility 2 5 after detaching the portion sold. 2 6 Sec. 2. Section 476.43, subsection 1, Code 2003, is 2 7 amended to read as follows: 2 8 1. Subject to section 476.44, the board shall require 2 9 electric utilitiesto enter into long-term contractsto do 2 10 both of the following under terms and conditions that the 2 11 board finds are just and economically reasonable for the 2 12 electric utilities' customers, are nondiscriminatory to 2 13 alternate energy producers and small hydro producers, and will 2 14 further the policy stated in section 476.41: 2 15 a.PurchaseAt least one of the following: 2 16 (1) Own alternate energy production facilities or small 2 17 hydro facilities located in this state. 2 18 (2) Enter into long-term contracts to purchase or wheel 2 19 electricity from alternate energy production facilities or 2 20 small hydro facilities located in the utility's service area 2 21under the terms and conditions that the board finds are just2 22and economically reasonable to the electric utilities'2 23ratepayers, are nondiscriminatory to alternate energy2 24producers and small hydro producers and will further the2 25policy stated in section 476.41. 2 26 b. Provide for the availability of supplemental or backup 2 27 power to alternate energy production facilities or small hydro 2 28 facilities on a nondiscriminatory basis and at just and 2 29 reasonable rates. 2 30 Sec. 3. Section 476.44, subsection 2, Code 2003, is 2 31 amended to read as follows: 2 32 2. An electric utility subject to this division, except a 2 33 utilitywhichthat elects rate regulation pursuant to section 2 34 476.1A, shall not be required to own or purchase, at any one 2 35 time, more than its share of one hundred five megawatts of 3 1 power from alternative energy production facilities or small 3 2 hydro facilities at the rates established pursuant to section 3 3 476.43. The board shall allocate the one hundred five 3 4 megawatts based upon each utility's percentage of the total 3 5 Iowa retail peak demand, for the year beginning January 1, 3 6 1990, of all utilities subject to this section. If a utility 3 7 undergoes reorganization as defined in section 476.76, the 3 8 board shall combine the allocated purchases of power for each 3 9 utility involved in the reorganization. 3 10 Notwithstanding the one hundred five megawatt maximum, the 3 11 board may increase the amount of power that a utility is 3 12 required to own or purchase at the rates established pursuant 3 13 to section 476.43 if the board finds that a utility, including 3 14 a reorganized utility, exceeds its 1990 Iowa retail peak 3 15 demand by twenty percent and the additional power the utility 3 16 is required to purchase will encourage the development of 3 17 alternate energy production facilities and small hydro 3 18 facilities. The increase shall not exceed the utility's 3 19 increase in peak demand multiplied by the ratio of the 3 20 utility's share of the one hundred five megawatt maximum to 3 21 its 1990 Iowa retail peak demand. 3 22 Sec. 4. Section 476.45, Code 2003, is amended to read as 3 23 follows: 3 24 476.45 EXEMPTION FROM EXCESS CAPACITY. 3 25 Capacitypurchased fromof an alternate energy production 3 26 facility or small hydro facility, that is owned or purchased 3 27 by an electric utility, shall not be included in a calculation 3 28 of an electric utility's excess generating capacity forrate-3 29makingratemaking purposes. 3 30 Sec. 5. Section 476.53, subsection 3, paragraph b, Code 3 31 2003, is amended to read as follows: 3 32 b. In determining the applicable ratemaking principles, 3 33 the board shall not be limited to traditional ratemaking 3 34 principles or traditional cost recovery mechanisms. In 3 35 particular, the board shall have the authority to consider 4 1 ratemaking proposals by a rate-regulated public utility that 4 2 facilitate the construction of an electric power generating 4 3 facility or an alternate energy production facility pursuant 4 4 to paragraph "a" and provide for reasonable restrictions on 4 5 the ability of the public utility to seek a general increase 4 6 in electric rates under section 476.6 for at least three years 4 7 after the generation facility begins providing service to Iowa 4 8 consumers. 4 9 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 4 10 immediate importance, takes effect upon enactment. 4 11 EXPLANATION 4 12 This bill amends various provisions in Code chapter 476, 4 13 relating to public utilities. Specifically, the bill provides 4 14 for ownership of alternate energy production facilities by 4 15 public utilities, and makes related changes. 4 16 The bill in Code section 476.23 states the authority of the 4 17 utilities board to consider the cost of a utility's alternate 4 18 energy production facilities and other generating facilities, 4 19 as well as generating plant emissions plan budgets approved by 4 20 the board, when valuing an electric utility's property. 4 21 The bill provides in Code section 476.43 that public 4 22 utilities may own alternate energy production facilities or 4 23 small hydro facilities located in Iowa. The bill also 4 24 restructures the language in subsection 1. Related changes 4 25 are made in Code sections 476.44 and 476.45. 4 26 The bill in Code section 476.53 specifies the authority of 4 27 the utilities board to consider rate proposals that facilitate 4 28 construction of alternate energy production facilities or 4 29 other electric generating facilities when the proposal 4 30 provides for reasonable restrictions on the utility's ability 4 31 to seek rate increases for at least three years after the 4 32 generating facility begins providing service. 4 33 The bill is effective upon enactment. 4 34 LSB 3115XS 80 4 35 jj/cf/24.2
Text: SF00431 Text: SF00433 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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