CHAPTER 19
SERVICE SUPPLIED BY GAS UTILITIES
[Prior to 10/8/86, Commerce Commission [250]]
199—19.1(476) General information.
	19.1(1) Authorization of rules. Iowa Code chapter 476 provides that the Iowa utilities board shall establish all needful, just and reasonable rules, not inconsistent with law, to govern the exercise of its powers and duties, the practice and procedure before it, and to govern the form, contents and filing of reports, documents and other papers necessary to carry out the provisions of this law.
Iowa Code chapter 479 provides that the Iowa utilities board shall have full authority and power to promulgate rules as it deems proper and expedient in the supervision of the transportation or transmission and underground storage of gas within the state of Iowa.
The application of the rules in this chapter to municipally owned utilities furnishing gas is limited by Iowa Code section 476.1B.
	19.1(2) Application of rules. The rules shall apply to any gas utility operating within the state of Iowa as defined in Iowa Code chapter 476 and shall supersede any tariff on file with this board which is in conflict with these rules. These rules are intended to promote safe and adequate service to the public, to provide standards for uniform and reasonable practices by utilities, and to establish a basis for determining the reasonableness of such demands as may be made by the public upon the utilities. A request to waive the application of any rule on a permanent or temporary basis may be made in accordance with rule 199—1.3(17A,474,476,78GA,HF2206). The adoption of these rules shall in no way preclude the board from altering or amending them, pursuant to statute, or from making such modifications with respect to their application as may be found necessary to meet exceptional conditions. These regulations shall in no way relieve any utility from any of its duties under the laws of this state.
	19.1(3) Definitions. The following words and terms, when used in these rules shall have the meaning indicated below:
The abbreviations used, and their meanings, are as follows:
Btu—British thermal unit
LP-Gas—Liquefied Petroleum Gas
psig—Pounds per Square Inch, Gauge
W.C.—Water Column
“Appliance” refers to any device which utilizes gas fuel to produce light, heat or power.
“Board” means the Iowa utilities board.
“Complaint” as used in these rules is a statement or question by anyone, whether a utility customer or not, alleging a wrong, grievance, injury, dissatisfaction, illegal action or procedure, dangerous condition or action, or utility failure to fulfill an obligation.
“Cubic foot” of gas has the following meanings:
	1.	Where gas is supplied and metered to customers at the pressure (as defined in 19.7(2)) normally used for domestic customers’ appliances, a cubic foot of gas shall be that quantity of gas which, at the temperature and pressure existing in the meter, occupies one cubic foot, except that where a temperature compensated meter is used, the temperature base shall be 60°F.
	2.	When gas is supplied to customers at other than the pressure in (1) above, the utility shall specify in its rules the base for measurement of a cubic foot of gas (see 19.2(4)“c”(6)). Unless otherwise stated by the utility, such cubic foot of gas shall be that quantity of gas which, at a temperature of 60°F and a pressure of 14.73 pounds per square inch absolute, occupies one cubic foot.
	3.	The standard cubic foot of gas for testing the gas itself for heating value shall be that quantity of gas, saturated with water vapor, which, at a temperature of 60°F and a pressure of 30 inches of mercury, occupies one cubic foot. (Temperature of mercury = 32°F acceleration due to gravity = 32.17 ft. per second per second density = 13.595 grams per cubic centimeter.)
“Customer” means any person, firm, association, or corporation, any agency of the federal, state or local government, or legal entity responsible by law for payment for the gas service or heat from the gas utility.
“Delinquent” or “delinquency” means an account for which a service bill or service payment agreement has not been paid in full on or before the last day for timely payment.
“Gas,” unless otherwise specifically designated, means manufactured gas, natural gas, other hydrocarbon gases, or any mixture of gases produced, transmitted, distributed or furnished by any gas utility.
“Gas plant” means all facilities including all real estate, fixtures and property owned, controlled, operated or managed by a gas utility for the production, storage, transmission and distribution of gas and heat.
“Heating and calorific values.” The following values shall be used:
	1.	“British thermal unit” (Btu) is the quantity of heat that must be added to one avoirdupois pound of pure water to raise its temperature from 58.5°F to 59.5°F under standard pressure.
	2.	“Dry calorific value” of a gas (total or net) is the value of the total or the net calorific value of the gas divided by the volume of dry gas in a standard cubic foot.
Note:  The amount of dry gas in a standard cubic foot is .9826 cubic foot.
	3.	“Net calorific value” of a gas is the number of British thermal units evolved by the complete combustion, at constant pressure, of one standard cubic foot of gas with air, the temperature of the gas, air, and products of combustion being 60°F and all water formed by the combustion reaction remaining in the vapor state.
Note:  The net calorific value of a gas is its total calorific value minus the latent heat of evaporation at standard temperature of the water formed by the combustion reaction.
	4.	“Therm” means 100,000 British thermal units.
	5.	“Total calorific value” of a gas is the number of British thermal units evolved by the complete combustion, at constant pressure, of one standard cubic foot of gas with air, the temperature of the gas, air and products of combustion being 60°F and all water formed by the combustion reaction condensed to the liquid state.
“Interruption of service” means any disturbance of the gas supply whereby gas service to a customer cannot be maintained.
“Loss factor” as used in rule 199—19.10(476) means test-year purchases less test-year sales. A five-year average of purchases less sales may be used if the test year is determined by the board to be abnormal.
“Main” means a gas pipe, owned, operated, or maintained by a utility, which is used for the purpose of transmission or distribution of gas, but does not include “service line”.
“Meter,” without other qualification, shall mean any device or instrument which is used by a utility in measuring a quantity of gas.
“Meter shop” is a shop where meters are inspected, repaired and tested, and may be at a fixed location or may be mobile.
“Pressure,” unless otherwise stated, is expressed in pounds per square inch above atmospheric pressure, i.e., gauge pressure (abbreviation-psig).
“Rate-regulated utility” means any utility as defined in the definition of “utility” below which is subject to rate regulation provided for in Iowa Code chapter 476.
“Service line” means a distribution line that transports gas from a common source of supply to a customer meter or the connection to a customer’s piping, whichever is farther downstream, or the connection to a customer’s piping if there is not a customer meter. A customer meter is the meter that measures the transfer of gas from a utility to a customer.
“Tap” or “town border station” means the delivery point or measuring station at which a gas distribution utility receives gas from a natural gas transmission company.
“Tariff” means the entire body of rates, tolls, rentals, charges, classifications, rules, procedures, policies, etc., adopted and filed with the board by a gas utility in fulfilling its role of furnishing gas service.
“Timely payment” is a payment on a customer’s account made on or before the date shown on a current bill for service or on a form which records an agreement between the customer and a utility for a series of partial payments to settle a delinquent account, as the date which determines application of a late payment charge to the current bill or future collection efforts.
“Utility” means any person, partnership, business association, or corporation, domestic or foreign, owning or operating any facilities for furnishing gas or heat to the public for compensation.
199—19.2(476) Records, reports, and tariffs.
	19.2(1) Location and retention of records. Unless otherwise specified in this chapter, all records required by these rules shall be kept and preserved in accordance with the applicable provisions of Chapter 18 of the board’s rules, Utility Records.
	19.2(2) Tariffs to be filed with the board. The schedules of rates and rules of rate-regulated gas utilities shall be filed with the board and shall be classified, designated, arranged and submitted so as to conform to the requirements of this chapter. Provisions of the schedules shall be definite and so stated as to minimize ambiguity or the possibility of misinterpretation. The form, identification and content of tariffs shall be in accordance with these rules.
Utilities which are not subject to the rate regulation provided for by Iowa Code chapter 476 shall not be required to file schedules of rates, rules, or contracts primarily concerned with a rate schedule with the board, but nothing contained in these rules shall be deemed to relieve any utility of the requirement of furnishing any of these same schedules or contracts which are needed by the board in the performance of the board’s duties upon request to do so by the board.
	19.2(3) Form and identification. All tariffs shall conform to the following rules:
	a. 	The tariff shall be printed, typewritten or otherwise reproduced on 8½- × 11- inch sheets of durable white paper so as to result in a clear and permanent record. The sheets of the tariff should be ruled or spaced to set off a border on the left side suitable for binding. In the case of utilities subject to regulation by any federal agency the format of sheets of tariff as filed with the board may be the same format as is required by the federal agency provided that the rules of the board as to title page; identity of superseding, replacing or revision sheets; identity of amending sheets; identity of the filing utility, issuing official, date of issue, effective date; and the words, “Gas Tariff Filed with Board” shall apply in the modification of the federal agency format for the purposes of filing with this board.
	b. 	The title page of every tariff and supplement shall show:
	(1)	The first page shall be the title page which shall show:
(Name of Public Utility)
Gas Tariff
Filed with
Iowa Utilities Board
(date)
(This requirement does not apply to tariffs or amendments filed with the board prior to April 1, 1982.)
	(2)	When a tariff is to be superseded or replaced in its entirety, the replacing tariff shall show on the upper right corner of its title page that it is a revision of a tariff on file and the number being superseded or replaced, for example:
Tariff No.		
Supersedes Tariff No.		
(This requirement does not apply to tariffs or amendments filed with the board prior to April 1, 1982.)
	(3)	When a new part of a tariff eliminates an existing part of a tariff it shall so state and clearly identify the part eliminated.
	(4)	Any tariff modifications as defined in “3” above replacing tariff sheets shall be marked in the right margin with symbols as herein described to indicate the place, nature and extent of the change in text.

Symbol	 	Meaning	
(C)	 	A change in regulation	
(D)	 	A discontinued rate, treatment or regulation	
(I)	 	An increased rate or new treatment resulting in increased rate	
(N)	 	A new rate, treatment or regulation	
(R)	 	A reduced rate or new treatment resulting in a reduced rate	
(T)	 	A change in text but no change in rate, treatment or regulation	
	c. 	All sheets except the title page shall have, in addition to the above-stated requirements, the following information:
	(1)	Name of utility under which shall be set forth the words “Filed with Board.” If the utility is not a corporation, and a trade name is used, the name of the individual or partners must precede the trade name.
	(2)	Issuing official and issue date.
	(3)	Effective date (to be left blank by rate-regulated utilities).
	d. 	All sheets except the title page shall have the following form:

(Company Name)	 	(Part identification)	
Gas Tariff	 	(This sheet identification)	
Filed with board	 	(Canceled sheet identification, if any)	
 	(Content of tariff)	 	
Issued: (Date)	 	Effective:	
Issued by: (Name, title)	 	(Proposed Effective Date:)	
The issued date is the date the tariff or the amended sheet content was adopted by the utility.
The effective date will be left blank by rate-regulated utilities and shall be determined by the board. The utility may propose an effective date.
	19.2(4) Content of tariffs. A tariff filed with the board shall contain:
	a. 	A table of contents containing a list of rate schedules and other sections in the order in which they appear showing the sheet number of the first page of each section.
	b. 	All rates of utilities subject to rate regulation for service with indication of each rate for the type of gas and the class of customers to which each rate applies. There shall also be shown the prices per unit of service, the number of units per billing period to which the prices apply, the period of billing, the minimum bill, the method of measuring demands and consumptions, including the method of calculating or estimating loads or minimums, delivery pressure, and any special terms or conditions applicable. All rates should be separated into “gas” and “nongas” components, and books and records shall be maintained on this basis. Books and records shall be available to the board for audits upon request. The gas components will be the result of the utility’s periodic review of gas procurement practices rule (199—19.11(476)) and PGA (rule 199—19.10(476)) proceeding. The nongas components will be established through rate case proceedings under Iowa Code section 476.3 or 476.6. The period during which the net amount may be paid before the account becomes delinquent shall be specified. In any case where net and gross amounts are billed, the difference between net and gross is a late payment charge and shall be so specified.
Customer charges for all special services relating to providing the basic utility service including, but not limited to, reconnect charge and different categories of service calls shall be specified.
	c. 	A copy of the utility’s rules, or terms and conditions, describing the utility’s policies and practices in rendering service shall include:
	(1)	A statement as to the equivalent total heating value of the gas in Btu’s per cubic foot on which their customers are billed. If necessary, this may be listed by district, division or community.
	(2)	The list of the items which the utility furnishes, owns, and maintains on the customer’s premises, such as service pipe, meters, regulators, vents and shut-off valves.
	(3)	General statement indicating the extent to which the utility will provide service in the adjustment of customer appliances at no additional customer charge.
	(4)	General statement of the utility’s policy in making adjustments for wastage of gas when such wastage occurs without the knowledge of the customer.
	(5)	A statement indicating the minimum number of days allowed for payment after the due date of the customer’s bill before service will be discontinued for nonpayment.
	(6)	A statement indicating the volumetric measurement base to which all sales of gas at other than standard delivery pressure are corrected.
	(7)	Forms of standard contracts required of customers for the various types of service available.
	(8)	All tariffs must provide that, notwithstanding any other provision of this tariff or contract with reference thereto, all rates and charges contained in this tariff or contract with reference thereto may be modified at any time by a subsequent filing made pursuant to the provisions of Iowa Code chapter 476.
	(9)	A copy of each type of customer bill.
	(10)	Definitions of classes of customer.
	(11)	Rules for extending service in accordance with 19.3(10).
	(12)	Rules with which prospective customers must comply as a condition of receiving service, and the terms of contracts required.
	(13)	Rules governing the establishment and maintenance of credit by customers for payment of service bills.
	(14)	Rules governing disconnecting and reconnecting service.
	(15)	Notice required from customer for having service discontinued.
	(16)	Rules covering temporary, emergency, auxiliary, and stand-by service.
	(17)	Rules shall show any limitations on loads and cover the type of equipment which may or may not be connected.
	(18)	Rate-regulated utilities shall include a list of service areas and the applicable rates in such form as to facilitate ready determination of the rates available in each municipality and in such unincorporated communities as have service.
	(19)	Rules on meter reading, billing periods, bill issuance, timely customer payment, notice of delinquency and service disconnection for nonpayment of bill.
	(20)	Rules on how a customer or prospective customer should file a complaint with the utility, and how the complaint will be processed.
	(21)	Rules on how a customer, disconnected customer or potential customer for residential service may negotiate for a payment agreement on amount due, determination of even payment amounts, and time allowed for payments.
	(22)	If a sliding scale or automatic adjustment is applicable to regulated rates or charges of billed customers, the manner and method of such adjustment calculation shall be covered through a detailed explanation.
	19.2(5) Annual, periodic and other reports to be filed with the board.
	a. 	System map verification. A utility shall file annually with the board a verification that it has a correct set of utility system maps for each operating or distribution area. The maps shall show:
	(1)	Peak shaving facilities location.
	(2)	Feeder and distribution mains indicating size and pressure.
	(3)	System metering (town border stations and other supply points).
	(4)	Regulator stations in system indicating inlet and outlet pressures.
	(5)	Calorimeter location.
	(6)	State boundary crossing.
	(7)	Franchise area.
	(8)	Names of all communities (post offices) served.
	b. 	Incident reports. Rescinded IAB 1/30/08, effective 3/5/08.
	c. 	Construction programs. Rescinded IAB 11/19/97, effective 12/24/97.
	d. 	Reports of gas service. Each utility shall compile a monthly record of gas service. The record shall be completed within 30 days after the end of the month covered. The compilation is to be kept available, for inspection by the board or its staff, at the utility’s principal office within the state of Iowa. Such record shall contain:
	(1)	The daily and monthly average of total heating values of gas in accordance with 19.7(6).
	(2)	The monthly acquisition and disposition of gas.
	(3)	Interruptions of service occurring during the month in accordance with 19.7(7). If there were no interruptions, then it should be so stated.
	(4)	The number of customer pressure investigations made and the results.
	(5)	The number of customer meters tested and test results tabulated as follows: The number that falls into limits 0 to + 2%, + 2 to + 4%, 0 to - 2%, - 2 to - 4%, over + 4%, under - 4%, and “Does Not Register” in accuracy.
	(6)	Progress on leak survey programs including the number of leaks found classified as to hazard and nature, and if known, the cause and type of pipe involved.
	(7)	Number of district regulators checked and nature of repairs required.
	(8)	Number of house regulators checked and nature of repairs required.
	(9)	Description of any unusual operating difficulties.
	(10)	Type of odorant and monthly average pounds per million cubic feet used in each individual distribution system.
A summary of the 12 monthly gas service records for each calendar year shall be attached to and submitted with the utility’s annual fiscal plant and statistical report to the board.
	e. 	Filing published meter and service installation rules. A copy of the utility’s current rules, if any, published or furnished by the utility for the use of engineers, architects, plumbing contractors, etc., covering meter and service installation shall be filed with the board.
	f. 	Filing customer bill forms. A copy of each type of customer bill form in current use shall be filed with the board.
	g. 	Reports to federal agencies. Copies of reports submitted to the U.S. Department of Transportation pursuant to 49 CFR Part 191, Part 192, or Part 199, as amended through April 9, 2014, shall be filed with the board. Utilities operating in other states shall provide to the board data for Iowa only.
	h. 	Change in rate. A notification to the board shall be made of any planned change in rate of service by a utility even though the change in rate of service is provided for in its tariff filing with the board. This information shall reflect the amount of increase or decrease and the effective date of application. An up-to-date tariff sheet shall be supplied to the Iowa utilities board for its copy of the tariff showing the current rates.
	i. 	List of persons authorized to receive board inquiries. Each utility shall file with the board in the annual report required by 199—subrule 23.1(2) a list of names, titles, addresses, and telephone numbers of persons authorized to receive, act upon, and respond to communications from the board in connection with: (1) general management duties; (2) customer relations (complaints); (3) engineering operations; (4) meter tests and repairs; (5) pipeline permits (gas). Each utility shall file with the board a telephone contact number or numbers where the board can obtain current information 24 hours a day about incidents and interruptions of service from a knowledgeable person. The contact information required by this paragraph shall be kept current as changes or corrections are made.
	j. 	Residential customer statistics. Each rate-regulated gas utility shall file with the board on or before the fifteenth day of each month one copy of the following residential customer statistics for the preceding month:
	(1)	Number of accounts;
	(2)	Number of accounts certified as eligible for energy assistance since the preceding October 1;
	(3)	Number of accounts past due;
	(4)	Number of accounts eligible for energy assistance and past due;
	(5)	Total revenue owed on accounts past due;
	(6)	Total revenue owed on accounts eligible for energy assistance and past due;
	(7)	Number of disconnection notices issued;
	(8)	Number of disconnection notices issued on accounts eligible for energy assistance;
	(9)	Number of disconnections for nonpayment;
	(10)	Number of reconnections;
	(11)	Number of accounts determined uncollectible; and
	(12)	Number of accounts eligible for energy assistance and determined uncollectible.
	k. 	Monthly, periodic and annual reports. Each utility shall file such other monthly, periodic and annual reports as are requested by the board. Monthly and periodic reports shall be due in the board’s office within 30 days after the end of the reporting period. All annual reports shall be filed with this board by April 1 of each year for the preceding calendar year.
This rule is intended to implement Iowa Code section 476.2.
[ARC 7962B, IAB 7/15/09, effective 8/19/09; ARC 9501B, IAB 5/18/11, effective 6/22/11; ARC 1359C, IAB 3/5/14, effective 4/9/14]
199—19.3(476) General service requirements.
	19.3(1) Disposition of gas. The meter and any service line pressure regulator shall be owned by the utility. The utility shall place a visible seal on all meters and service line regulators in customer use, such that the seal must be broken to gain entry.
	a. 	All gas sold by a utility shall be on the basis of meter measurement except:
	(1)	Where the consumption of gas may be readily computed without metering; or
	(2)	For temporary service installations.
	b. 	The amount of all gas delivered to multioccupancy premises within a single building, where units are separately rented or owned, shall be measured on the basis of individual meter measurement for each unit, except in the following instances:
	(1)	Where gas is used in centralized heating, cooling or water-heating systems;
	(2)	Where a facility is designated for elderly or handicapped persons;
	(3)	Where submetering or resale of service was permitted prior to 1966; or
	(4)	Where individual metering is impractical. “Impractical” means: (1) where conditions or structural barriers exist in the multioccupancy building that would make individual meters unsafe or physically impossible to install; (2) where the cost of providing individual metering exceeds the long-term benefits of individual metering; or (3) where the benefits of individual metering (reduced and controlled energy consumption) are more effectively accomplished through a master meter arrangement.
If a multioccupancy building is master-metered, the end-user occupants may be charged for natural gas as an unidentified portion of the rent, condominium fee, or similar payment, or, if some other method of allocating the cost of the gas service is used, the total charge for gas service shall not exceed the total gas bill charged by the utility for the same period.
	c. 	Master metering to multiple buildings is prohibited, except for multiple buildings owned by the same person or entity. Multioccupancy premises within a multiple building complex may be master-metered pursuant to this paragraph only if the requirements of paragraph 19.3(1)“b” have been met.
	d. 	For purposes of this subrule, a “master meter” means a single meter used in determining the amount of natural gas provided to a multioccupancy building or multiple buildings.
	e. 	This rule shall not be construed to prohibit any utility from requiring more extensive individual metering than otherwise required by this rule if pursuant to tariffs filed with and approved by the board.
	f. 	All gas consumed by the utility shall be on the basis of meter measurement except where consumption may be readily computed without metering or where metering is impractical.
	19.3(2) Condition of meter. Rescinded IAB 11/12/03, effective 12/17/03. See 199 IAC 19.6(7).
	19.3(3) Meter reading records. The meter reading records shall show:
	a. 	Customer’s name, address, rate schedule, or identification of rate schedule.
	b. 	Identifying number or description of the meter(s).
	c. 	Meter readings.
	d. 	If the reading has been estimated.
	e. 	Any applicable multiplier or constant, or reference thereto.
	19.3(4) Meter charts. All charts taken from recording meters shall be marked with the initial and final date and hour of the record, the meter identification, customer’s name and location and the chart multiplier.
	19.3(5) Meter register. If it is necessary to apply a multiplier to the meter readings, the multiplier must be marked on the face of the meter register or stenciled in weather resistant paint upon the front cover of the meter. Where remote meter reading is used, whether outdoor on-premises or off-premises-automated, the customers shall have a readable meter register at the meter as a means of verifying the accuracy of bills presented to them.
	19.3(6) Prepayment meters. Prepayment meters shall not be geared or set so as to result in the charge of a rate or amount higher than would be paid if a standard type meter were used, except under such special rate schedule as may be filed under 19.2(4).
	19.3(7) Meter reading and billing interval. Readings of all meters used for determining charges and billings to customers shall be scheduled at least monthly and for the beginning and termination of service. Bills to larger customers may, for good cause, be rendered weekly or daily for a period not to exceed one month. Intervals other than monthly shall not be applied to smaller customers, or to larger customers after the initial month provided above, without an exemption from the board. A waiver request must include the information required by 199—1.3(17A,474,476,78GA,HF2206). If the board denies a waiver, or if a waiver is not sought with respect to a large volume customer after the initial month, that customer’s bill shall be rendered monthly for the next 12 months, unless prior approval is received from the board for a shorter interval. The group of larger customers to which shorter billing intervals may be applied shall be specified in the utility’s tariff sheets, but shall not include residential customers.
An effort shall be made to obtain readings of the meters on corresponding days of each meter-reading period. The utility rules may permit the customer to supply the meter readings by telephone or on a form supplied by the utility. The utility may arrange for customer meter reading forms to be delivered to the utility by United States mail, electronically, or by hand delivery. Unless the utility has a plan to test check meter readings, a utility representative shall physically read the meter at least once each 12 months and when the utility is notified there is a change of customer.
The utility may arrange for the meter to be read by electronic means. Unless the utility has a plan to test check electronic meter readings, a utility representative shall physically read the meter at least once every 12 months.
	19.3(8) Readings and estimates. When a customer is connected or disconnected or the meter reading date causes a given billing period to deviate by more than 10 percent (counting only business days) from the normal meter reading period, such bill shall be prorated on a daily basis.
When access to meters cannot be gained, the utility may leave with the customer a meter reading form. The customer may provide the meter reading by telephone, electronic mail (if it is allowed by the utility), or by mail. If the meter reading information is not returned in time for the billing operation, an estimated bill may be rendered. If an actual meter reading cannot be obtained, the utility may render an estimated bill without reading the meter or supplying a meter reading form to the customer. Only in unusual cases or when approval is obtained from the customer shall more than three consecutive estimated bills be rendered.
The utility shall incorporate normalized weather data in its calculation of an estimated bill.
Utilities shall file with the board their procedures for calculating estimated bills, including their procedures for determining the reasonable degree-day data to use in the calculations. Utilities shall inform the board when changes are made to the procedures for calculating estimated bills.
	19.3(9) Temporary service. When the utility renders a temporary service to a customer it may require that the customer bear all the cost of installing and removing the service in excess of any salvage realized.
	19.3(10) Plant additions, distribution main extensions, and service lines.
	a. 	Definitions. The following definitions shall apply to the terms as used in this subrule.
“Advance for construction,” as used in this subrule, means cash payments or equivalent surety made to the utility by an applicant for an extensive plant addition or a distribution main extension, portions of which may be refunded depending on any subsequent service line attached to the extensive plant addition or distribution main extension. Cash payments or equivalent surety shall include a grossed-up amount for the income tax effect of such revenue. The amount of tax shall be reduced by the present value of the tax benefits to be obtained by depreciating the property in determining the tax liability.
“Agreed-upon attachment period,” as used in this subrule, means a period of not less than 30 days nor more than one year mutually agreed upon by the utility and the applicant within which the customer will attach. If no time period is mutually agreed upon, the agreed-upon attachment period shall be deemed to be 30 days.
“Contribution in aid of construction,” as used in this subrule, means a nonrefundable cash payment grossed-up for the income tax effect of such revenue covering the costs of a distribution main extension or service line that are in excess of costs paid by the utility. The amount of tax shall be reduced by the present value of the tax benefits to be obtained by depreciating the property in determining the tax liability.
“Distribution main extension,” as used in this subrule, means a segment of pipeline installed to convey gas to individual service lines or other distribution mains.
“Estimated annual revenues,” as used in this subrule, shall be calculated based upon the following factors, including, but not limited to: The size of the facility to be used by the customer, the size and type of equipment to be used by the customer, the average annual amount of service required by the equipment, and the average number of hours per day and days per year the equipment will be in use.
“Estimated base revenues,” as used in this subrule, shall be calculated by subtracting the cost of purchased gas and energy efficiency charges from estimated annual revenues.
“Estimated construction costs,” as used in this subrule, shall be calculated using average current costs in accordance with good engineering practices and upon the following factors: amount of service required or desired by the customer requesting the distribution main extension or service line; size, location, and characteristics of the distribution main extension or service line, including appurtenances; and whether the ground is frozen or whether other adverse conditions exist. In no event shall estimated construction costs include costs associated with facilities built for the convenience of the utility. The customer shall be charged actual permit fees in addition to estimated construction costs. Permit fees are to be paid regardless of whether the customer is required to pay an advance for construction or a nonrefundable contribution in aid of construction, and the cost of any permit fee is not refundable.
“Plant addition,” as used in this subrule, means any additional plant, other than a distribution main or service line, required to be constructed to provide service to a customer.
“Service line,” as used in this subrule, means the piping that extends from the distribution main to the meter set riser.
“Similarly situated customer,” as used in this subrule, means a customer whose annual consumption or service requirements, as defined by estimated annual revenue, are approximately the same as the annual consumption or service requirements of other customers.
“Utility,” as used in this subrule, means a rate-regulated utility.
	b. 	Plant additions. The utility shall provide all gas plant at its cost and expense without requiring an advance for construction from customers or developers except in those unusual circumstances where extensive plant additions are required before the customer can be served. A written contract between the utility and the customer which requires an advance for construction by the customer to make plant additions shall be available for board inspection.
	c. 	Distribution main extensions. Where the customer will attach to the distribution main extension within the agreed-upon attachment period after completion of the distribution main extension, the following shall apply:
	(1)	The utility shall finance and make the distribution main extension for a customer without requiring an advance for construction if the estimated construction costs to provide a distribution main extension are less than or equal to three times estimated base revenue calculated on the basis of similarly situated customers. The utility may use a feasibility model, rather than three times estimated base revenue, to determine what, if any, advance for construction is required of the customer. The utility shall file a summary explaining the inputs into the feasibility model and a description of the model as part of the utility’s tariff. Whether or not the construction of the distribution main extension would otherwise require a payment from a customer, the utility shall charge the customer for actual permit fees, and the permit fees are not refundable.
	(2)	If the estimated construction cost to provide a distribution main extension is greater than three times estimated base revenue calculated on the basis of similarly situated customers, the applicant for a distribution main extension shall contract with the utility and make, no more than 30 days prior to commencement of construction, an advance for construction equal to the estimated construction cost less three times estimated base revenue to be produced by the customer. The utility may use a feasibility model to determine whether an advance for construction is required. The utility shall file a summary explaining the inputs into the feasibility model and a description of the model as part of the utility’s tariff. A written contract between the utility and the customer shall be available for board inspection upon request. Whether or not the construction of the distribution main extension would otherwise require a payment from the customer, the utility shall charge the customer for actual permit fees, and the permit fees are not refundable.
	(3)	Where the customer will not attach within the agreed-upon attachment period after completion of the distribution main extension, the applicant for the distribution main extension shall contract with the utility and make, no more than 30 days prior to the commencement of construction, an advance for construction equal to the estimated construction cost. The utility may use a feasibility model to determine the amount of the advance for construction. The utility shall file a summary explaining the inputs into the feasibility model and a description of the model as part of the utility’s tariff. A written contract between the utility and the customer shall be available for board inspection upon request. Whether or not the construction of the distribution main extension would otherwise require a payment from the customer, the utility shall charge the customer for actual permit fees, and the permit fees are not refundable.
	(4)	Advances for construction may be paid by cash or equivalent surety and shall be refundable for ten years. The customer has the option of providing an advance for construction by cash or equivalent surety unless the utility determines that the customer has failed to comply with the conditions of a surety in the past.
	(5)	Refunds. When the customer is required to make an advance for construction, the utility shall refund to the depositor for a period of ten years from the date of the original advance a pro-rata share for each service line attached to the distribution main extension. The pro-rata refund shall be computed in the following manner:
	1.	If the combined total of three times estimated base revenue, or the amount allowed by the feasibility model, for the distribution main extension and each service line attached to the distribution main extension exceeds the total estimated construction cost to provide the distribution main extension, the entire amount of the advance for construction shall be refunded.
	2.	If the combined total of three times estimated base revenue, or the amount allowed by the feasibility model, for the distribution main extension and each service line attached to the distribution main extension is less than the total estimated construction cost to provide the distribution main extension, the amount to be refunded shall equal three times estimated base revenue, or the amount allowed by the feasibility model, when a service line is attached to the distribution main extension.
	3.	In no event shall the total amount to be refunded exceed the amount of the advance for construction. Any amounts subject to refund shall be paid by the utility without interest. At the expiration of the above-described ten-year period, the advance for construction record shall be closed and the remaining balance shall be credited to the respective plant account.
	(6)	The utility shall keep a record of each work order under which the distribution main extension was installed, to include the estimated revenues, the estimated construction costs, the amount of any payment received, and any refunds paid.
	d. 	Service lines.
	(1)	The utility shall finance and construct a service line without requiring a nonrefundable contribution in aid of construction or any payment by the applicant where the length of the service line to the riser is up to 50 feet on private property or 100 feet on private property if polyethylene plastic pipe is used.
	(2)	Where the length of the service line exceeds 50 feet on private property or 100 feet if polyethylene plastic pipe is used, the applicant shall be required to provide a nonrefundable contribution in aid of construction, within 30 days after completion, for that portion of the service line on private property, exclusive of the riser, in excess of 50 feet or in excess of 100 feet if polyethylene plastic pipe is used. The nonrefundable contribution in aid of construction for that portion of the service line shall be computed as follows:
(Estimated Construction Costs) ×

(Total Length in Excess of 50 Feet) or (Total Length in Excess of 100 Feet)	
(Total Length of Service Line)	
	(3)	A utility may adopt a tariff or rule that allows the utility to finance and construct a service line of more than 50 feet, or 100 feet if polyethylene plastic pipe is used, without requiring a nonrefundable contribution in aid of construction from the customer if the tariff or rule applies equally to all customers.
	(4)	Whether or not the construction of the service line would otherwise require a payment from the customer, the utility shall charge the customer for actual permit fees.
	e. 	Extensions not required. Utilities shall not be required to make distribution main extensions or attach service lines as described in this subrule, unless the distribution main extension or service line shall be of a permanent nature.
	f. 	Different payment arrangement. This subrule shall not be construed as prohibiting any utility from making a contract with a customer using a different payment arrangement, if the contract provides a more favorable payment arrangement to the customer, so long as no discrimination is practiced among customers.
	19.3(11) Cooperation and advance notice. In order that full benefit may be derived from this chapter and in order to facilitate its proper application, all utilities shall observe the following cooperative practices:
	a. 	Every utility shall give to other public utilities in the same general territory advance notice of any construction or change in construction or in operating conditions of its facilities concerned or likely to be concerned in situations of proximity, provided, however, that the requirements of this chapter shall not apply to routine extensions or minor changes in the local underground distribution facilities.
	b. 	Every utility shall assist in promoting conformity with this chapter. An arrangement should be set up among all utilities whose facilities may occupy the same general territory, providing for the interchange of pertinent data and information including that relative to proposed and existing construction and changes in operating conditions concerned or likely to be concerned in situations of proximity.
This rule is intended to implement 42 U.S.C.A. §8372, 10 CFR 516.30, and Iowa Code section 476.8.
[ARC 7584B, IAB 2/25/09, effective 4/1/09]
199—19.4(476) Customer relations.
	19.4(1) Customer information. Each utility shall:
	a. 	Maintain up-to-date maps, plans or records of its entire transmission and distribution systems, with such other information as may be necessary to enable the utility to advise prospective customers, and others entitled to the information, as to the facilities available for serving customers in its service area.
	b. 	Assist the customer or prospective customer in selecting the most economical rate schedule available for the proposed type of service.
	c. 	Notify customers affected by a change in rates or schedule classification in the manner provided in the rules of practice and procedure before the board. (199—7.4(476))
	d. 	Post a notice in a conspicuous place in each office of the utility where applications for service are received, informing the public that copies of the rate schedules and rules relating to the service of the utility, as filed with the board, are available for public inspection. If the utility provides access to its rate schedules and rules for service on its Web site, the notice should include the Web site address.
	e. 	Upon request, inform its customers as to the method of reading meters.
	f. 	State, on the bill form, that tariff and rate schedule information is available upon request at the utility’s local business office.
	g. 	Upon request, transmit a statement of either the customer’s actual consumption, or degree day adjusted consumption, at the company’s option, of natural gas for each billing period during the prior 12 months.
	h. 	Furnish such additional information as the customer may reasonably request.
	i. 	Promptly and courteously resolve inquiries for information or complaints. Employees who receive customer telephone calls and office visits shall be qualified and trained in screening and resolving complaints, to avoid a preliminary recitation of the entire complaint to employees without ability and authority to act. The employee shall provide identification to the customer that will enable the customer to reach that employee again if needed.
Each utility shall notify its customers, by bill insert or notice on the bill form, of the address and telephone number where a utility representative qualified to assist in resolving the complaint can be reached. The bill insert or notice shall also include the following statement: “If (utility name) does not resolve your complaint, you may request assistance from the Iowa Utilities Board by calling (515)725-7321 or toll-free 1-877-565-4450, or by writing to 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319-0069, or by E-mail to customer@iub.iowa.gov.”
The bill insert or notice for municipal utilities shall include the following statement: “If your complaint is related to service disconnection, safety, or renewable energy, and (utility name) does not resolve your complaint, you may request assistance from the Iowa Utilities Board by calling (515)725-7321, or toll-free 1-877-565-4450, by writing to 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319-0069, or by E-mail to customer@iub.iowa.gov.”
The bill insert or notice on the bill shall be provided monthly by utilities serving more than 50,000 Iowa retail customers and no less than annually by all other natural gas utilities. Any utility which does not use the standard statement described in this paragraph shall file its proposed statement in its tariff for approval. A utility that bills by postcard may place an advertisement in a local newspaper of general circulation or a customer newsletter instead of a mailing. The advertisement must be of a type size that is easily legible and conspicuous and must contain the information set forth above.
	19.4(2) Customer deposits.
	a. 	Each utility may require from any customer or prospective customer a deposit intended to guarantee partial payment of bills for service. Each utility shall allow a person other than the customer to pay the customer’s deposit. In lieu of a cash deposit, the utility may accept the written guarantee of a surety or other responsible party as surety for an account. Upon termination of a guarantee contract, or whenever the utility deems the contract insufficient as to amount or surety, a cash deposit or a new or additional guarantee may be required for good cause upon reasonable written notice.
	b. 	A new or additional deposit may be required from a customer when a deposit has been refunded or is found to be inadequate. Written notice shall be mailed advising the customer of any new or additional deposit requirement. The customer shall have no less than 12 days from the date of mailing to comply. The new or additional deposit shall be payable at any of the utility’s business offices or local authorized agents. An appropriate receipt shall be provided. No written notice is required to be given of a deposit required as a prerequisite for commencing initial service.
	c. 	No deposit shall be required as a condition for service other than determined by application of either credit rating or deposit calculation criteria, or both, of the filed tariff.
	d. 	The total deposit for any residential or commercial customer for a place which has previously received service shall not be greater than the highest billing of service for one month for the place in the previous 12-month period. The deposit for any residential or commercial customer for a place which has not previously received service or for an industrial customer, shall be the customer’s projected one-month usage for the place to be served as determined by the utility, or as may be reasonably required by the utility in cases involving service for short periods or special occasions.
	19.4(3) Interest on customer deposits. Interest shall be paid by the rate-regulated utility to each customer required to make a deposit. On or after April 21, 1994, rate-regulated utilities shall compute interest on customer deposits at 7.5 percent per annum, compounded annually. Interest for prior periods shall be computed at the rate specified by the rule in effect for the period in question. Interest shall be paid for the period beginning with the date of deposit to the date of refund or to the date that the deposit is applied to the customer’s account, or to the date the customer’s bill becomes permanently delinquent. The date of refund is that date on which the refund or the notice of deposit refund is forwarded to the customer’s last-known address. The date a customer’s bill becomes permanently delinquent, relative to an account treated as an uncollectible account, is the most recent date the account became delinquent.
	19.4(4) Customer deposit records. Each utility shall keep records to show:
	a. 	The name and address of each depositor.
	b. 	The amount and date of the deposit.
	c. 	Each transaction concerning the deposit.
	19.4(5) Customer’s receipt for a deposit. Each utility shall issue a receipt of deposit to each customer from whom a deposit is received, and shall provide means whereby a depositor may establish claim if the receipt is lost.
	19.4(6) Deposit refund. A deposit shall be refunded after 12 consecutive months of prompt payment (which may be 11 timely payments and one automatic forgiveness of late payment), unless the utility is entitled to require a new or additional deposit. For refund purposes, the account shall be reviewed after 12 months of service following the making of the deposit and for each 12-month interval terminating on the anniversary of the deposit. However, deposits received from customers subject to the exemption provided by subrule 19.3(7), including surety deposits, may be retained by the utility until final billing. Upon termination of service, the deposit plus accumulated interest, less any unpaid utility bill of the customer, shall be reimbursed to the person who made the deposit.
	19.4(7) Unclaimed deposits. The utility shall make a reasonable effort to return each unclaimed deposit and accrued interest after the termination of the services for which the deposit was made. The utility shall maintain a record of deposit information for at least two years or until such time as the deposit, together with accrued interest, escheats to the state pursuant to Iowa Code section 556.4, at which time the record and deposit, together with accrued interest less any lawful deductions, shall be sent to the state treasurer pursuant to Iowa Code section 556.11.
	19.4(8) Customer bill forms. Each customer shall be informed as promptly as possible following the reading of the customer’s meter, on bill form or otherwise, the following:
	a. 	The reading of the meter at the beginning and at the end of the period for which the bill is rendered.
	b. 	The dates on which the meter was read at the beginning and end of the billing period.
	c. 	The number and kind of units metered.
	d. 	The applicable rate schedule or identification of the applicable rate schedule.
	e. 	The account balance brought forward and the amount of each net charge for rate-schedule-priced utility service, sales tax, other taxes, late payment charge, and total amount currently due. In the case of prepayment meters, the amount of money collected shall be shown.
	f. 	The last date for timely payment shall be clearly shown and shall be not less than 20 days after the bill is rendered.
	g. 	A distinct marking to identify an estimated bill.
	h. 	A distinct marking to identify a minimum bill.
	i. 	Any conversions from meter reading units to billing units, or any calculations to determine billing units from recording or other devices, or any other factors, such as sliding scale or automatic adjustment and amount of sales tax adjustments used in determining the bill.
	19.4(9) Customer billing information alternate. A utility serving fewer than 5000 gas customers may provide the information in 19.4(8) on bill form or otherwise. If the utility elects not to provide the information of 19.4(8) on the bill form, it shall advise the customer, on the bill form or by bill insert, that such information can be obtained by contacting the utility’s local office.
	19.4(10) Payment agreements.
	a. 	Availability of a first payment agreement. When a residential customer cannot pay in full a delinquent bill for utility service or has an outstanding debt to the utility for residential utility service and is not in default of a payment agreement with the utility, a utility shall offer the customer an opportunity to enter into a reasonable payment agreement.
	b. 	Reasonableness. Whether a payment agreement is reasonable will be determined by considering the current household income, ability to pay, payment history including prior defaults on similar agreements, the size of the bill, the amount of time and the reasons why the bill has been outstanding, and any special circumstances creating extreme hardships within the household. The utility may require the person to confirm financial difficulty with an acknowledgment from the department of human services or another agency.
	c. 	Terms of payment agreements.
	(1)	First payment agreement. The utility shall offer customers who have received a disconnection notice or have been disconnected 120 days or less and who are not in default of a payment agreement the option of spreading payments evenly over at least 12 months by paying specific amounts at scheduled times. The utility shall offer customers who have been disconnected more than 120 days and who are not in default of a payment agreement the option of spreading payments evenly over at least 6 months by paying specific amounts at scheduled times.
	1.	The agreement shall also include provision for payment of the current account. The agreement negotiations and periodic payment terms shall comply with tariff provisions which are consistent with these rules. The utility may also require the customer to enter into a level payment plan to pay the current bill.
	2.	When the customer makes the agreement in person, a signed copy of the agreement shall be provided to the customer.
	3.	The utility may offer the customer the option of making the agreement over the telephone or through electronic transmission. When the customer makes the agreement over the telephone or through electronic transmission, the utility shall render to the customer a written document reflecting the terms and conditions of the agreement within three days of the date the parties entered into the oral agreement or electronic agreement. The document will be considered rendered to the customer when addressed to the customer’s last-known address and deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the document shall be considered rendered to the customer when delivered to the last-known address of the person responsible for payment for the service. The document shall state that unless the customer notifies the utility within ten days from the date the document is rendered, it will be deemed that the customer accepts the terms as reflected in the written document. The document stating the terms and agreements shall include the address and a toll-free or collect telephone number where a qualified representative can be reached. By making the first payment, the customer confirms acceptance of the terms of the oral agreement or electronic agreement.
	4.	Each customer entering into a first payment agreement shall be granted at least one late payment that is made four days or less beyond the due date for payment and the first payment agreement shall remain in effect.
	(2)	Second payment agreement. The utility shall offer a second payment agreement to a customer who is in default of a first payment agreement if the customer has made at least two consecutive full payments under the first payment agreement. The second payment agreement shall be for the same term as or longer than the term of the first payment agreement. The customer shall be required to pay for current service in addition to the monthly payments under the second payment agreement and may be required to make the first payment up-front as a condition of entering into the second payment agreement. The utility may also require the customer to enter into a level payment plan to pay the current bill. The utility may offer additional payment agreements to the customer.
	d. 	Refusal by utility. A customer may offer the utility a proposed payment agreement. If the utility and the customer do not reach an agreement, the utility may refuse the offer orally, but the utility must render a written refusal of the customer’s final offer, stating the reason for the refusal, within three days of the oral notification. The written refusal shall be considered rendered to the customer when addressed to the customer’s last-known address and deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the written refusal shall be considered rendered to the customer when handed to the customer or when delivered to the last-known address of the person responsible for the payment for the service.
A customer may ask the board for assistance in working out a reasonable payment agreement. The request for assistance must be made to the board within ten days after the rendering of the written refusal. During the review of this request, the utility shall not disconnect the service.
	19.4(11) Bill payment terms. The bill shall be considered rendered to the customer when deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the bill shall be considered rendered when delivered to the last-known address of the party responsible for payment. There shall be not less than 20 days between the rendering of a bill and the date by which the account becomes delinquent. Bills for customers on more frequent billing intervals under subrule 19.3(7) may not be considered delinquent less than 5 days from the date of rendering. However, a late payment charge may not be assessed if payment is received within 20 days of the date the bill is rendered.
	a. 	The date of delinquency for all residential customers or other customers whose consumption is less than 250 ccf per month shall be changeable for cause in writing; such as, but not limited to, 15 days from approximate date each month upon which income is received by the person responsible for payment. In no case, however, shall the utility be required to delay the date of delinquency more than 30 days beyond the date of preparation of the previous bill.
	b. 	In any case where net and gross amounts are billed to customers, the difference between net and gross is a late payment charge and is valid only when part of a delinquent bill payment. A utility’s late payment charge shall not exceed 1.5 percent per month of the past due amount. No collection fee may be levied in addition to this late payment charge. This rule does not prohibit cost-justified charges for disconnection and reconnection of service.
	c. 	If the customer makes partial payment in a timely manner, and does not designate the service or product for which payment is made, the payment shall be credited pro rata between the bill for utility services and related taxes.
	d. 	Each account shall be granted not less than one complete forgiveness of a late payment charge each calendar year. The utility’s rules shall be definitive that on one monthly bill in each period of eligibility, the utility will accept the net amount of such bill as full payment for such month after expiration of the net payment period. The rules shall state how the customer is notified that the eligibility has been used. Complete forgiveness prohibits any effect upon the credit rating of the customer or collection of late payment charge.
	e. 	Level payment plan. Utilities shall offer a level payment plan to all residential customers or other customers whose consumption is less than 250 ccf per month. A level payment plan should be designed to limit the volatility of a customer’s bill and maintain reasonable account balances. The level payment plan shall include at least the following:
	(1)	Be offered to each eligible customer when the customer initially requests service.
	(2)	Allow for entry into the level payment plan anytime during the calendar year.
	(3)	Provide that a customer may request termination of the plan at any time. If the customer’s account is in arrears at the time of termination, the balance shall be due and payable at the time of termination. If there is a credit balance, the customer shall be allowed the option of obtaining a refund or applying the credit to future charges. A utility is not required to offer a new level payment plan to a customer for six months after the customer has terminated from a level payment plan.
	(4)	Use a computation method that produces a reasonable monthly level payment amount, which may take into account forward-looking factors such as fuel price and weather forecasts, and that complies with requirements in 19.4(11)“e”(4). The computation method used by the utility shall be described in the utility’s tariff and shall be subject to board approval. The utility shall give notice to customers when it changes the type of computation method in the level payment plan.
The amount to be paid at each billing interval by a customer on a level payment plan shall be computed at the time of entry into the plan and shall be recomputed at least annually. The level payment amount may be recomputed monthly, quarterly, when requested by the customer, or whenever price, consumption, or a combination of factors results in a new estimate differing by 10 percent or more from that in use.
When the level payment amount is recomputed, the level payment plan account balance shall be divided by 12, and the resulting amount shall be added to the estimated monthly level payment amount. Except when a utility has a level payment plan that recomputes the level payment amount monthly, the customer shall be given the option of applying any credit to payments of subsequent months’ level payment amounts due or of obtaining a refund of any credit in excess of $25.
Except when a utility has a level payment plan that recomputes the level payment amount monthly, the customer shall be notified of the recomputed payment amount not less than one full billing cycle prior to the date of delinquency for the recomputed payment. The notice may accompany the bill prior to the bill that is affected by the recomputed payment amount.
	(5)	Irrespective of the account balance, a delinquency in payment shall be subject to the same collection and disconnection procedures as other accounts, with the late payment charge applied to the level payment amount. If the account balance is a credit, the level payment plan may be terminated by the utility after 30 days of delinquency.
	19.4(12) Customer records. The utility shall retain customer billing records for the length of time necessary to permit the utility to comply with 19.4(13) but not less than three years.
	19.4(13) Adjustment of bills. Bills which are incorrect due to billing errors or faulty metering installation are to be adjusted as follows:
	a. 	Fast metering. Whenever a metering installation is tested and found to have overregistered more than 2 percent, the utility shall recalculate the bills for service.
	(1)	The bills for service shall be recalculated from the time at which the error first developed or occurred if that time can be definitely determined.
	(2)	If the time at which the error first developed or occurred cannot be definitely determined, it shall be assumed that the overregistration has existed for the shortest time period calculated as one-half the time since the meter was installed or one-half the time elapsed since the last meter test unless otherwise ordered by the board.
	(3)	If the recalculated bills indicate that $5 or more is due an existing customer or $10 or more is due a person no longer a customer of the utility, the tariff shall provide for refunding of the full amount of the calculated difference between the amount paid and the recalculated amount. Refunds shall be made to the two most recent customers who received service through the metering installation during the time the error existed. In the case of a previous customer who is no longer a customer of the utility, a notice of the amount subject to refund shall be mailed to such previous customer at the last-known address, and the utility shall, upon demand made within three months thereafter, refund the same.
Refunds shall be completed within six months following the date of the metering installation test.
	b. 	Slow metering. Whenever a meter is found to be more than 2 percent slow, the tariff may provide for back billing the customer for the amount the test indicates has been undercharged for the period of inaccuracy.
When the average error cannot be determined by test because of failure of part or all of the metering equipment, the tariff may provide for use of the registration of check metering installation, if any, or for estimating the quantity consumed based on available data. The customer must be advised of the failure and of the basis for the estimate of quantity billed.
	(1)	The utility may not back bill due to underregistration unless a minimum back bill amount is specified in its tariff. The minimum amount specified for back billing shall not be less than, but may be greater than, $5 for an existing customer or $10 for a former customer. All recalculations resulting in an amount due equal or greater than the tariff specified minimum shall result in issuance of a back bill.
	(2)	The period for back billing shall not exceed the last six months the meter was in service unless otherwise ordered by the board.
	(3)	Back billings shall be rendered no later than six months following the date of the metering installation test.
	c. 	Billing adjustments due to fast or slow meters shall be calculated on the basis that the meter should be 100 percent accurate. For the purpose of billing adjustment the meter error shall be one-half of the algebraic sum of the error at full-rated flow plus the error at check flow.
	d. 	When a customer has been overcharged as a result of incorrect reading of the meter, incorrect application of the rate schedule, incorrect connection of the meter, or other similar reasons, the amount of the overcharge shall be adjusted, refunded, or credited to the customer. The time period for which the utility is required to adjust, refund, or credit the customer’s bill shall not exceed five years unless otherwise ordered by the board.
	e. 	Undercharges. When a customer has been undercharged as a result of incorrect reading of the meter, incorrect application of the rate schedule, incorrect connection of the meter, or other similar reasons, the amount of the undercharge may be billed to the customer. The period for which the utility may adjust for the undercharge shall not exceed five years unless otherwise ordered by the board. The maximum back bill shall not exceed the dollar amount equivalent to the tariffed rate for like charges (e.g., usage-based, fixed or service charges) in the 12 months preceding discovery of the error unless otherwise ordered by the board.
	19.4(14) Credits and explanations. Credits due a customer because of meter inaccuracies, errors in billing, or misapplication of rates shall be separately identified.
	19.4(15) Refusal or disconnection of service. A utility shall refuse service or disconnect service to a customer, as defined in subrule 19.1(3), in accordance with tariffs that are consistent with these rules.
	a. 	The utility shall give written notice of pending disconnection except as specified in paragraph 19.4(15)“b.” The notice shall set forth the reason for the notice and final date by which the account is to be settled or specific action taken. The notice shall be considered rendered to the customer when addressed to the customer’s last-known address and deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the notice shall be considered rendered when delivered to the last-known address of the person responsible for payment for the service. The date for disconnection of service shall be not less than 12 days after the notice is rendered. The date for disconnection of service for customers on shorter billing intervals under subrule 19.3(7) shall not be less than 24 hours after the notice is posted at the service premises.
One written notice, including all reasons for the notice, shall be given where more than one cause exists for disconnection of service. In determining the final date by which the account is to be settled or other specific action taken, the days of notice for the causes shall be concurrent.
	b. 	Service may be disconnected without notice:
	(1)	In the event of a condition determined by the utility to be hazardous.
	(2)	In the event of customer use of equipment in a manner which adversely affects the utility’s equipment or the utility’s service to others.
	(3)	In the event of tampering with the equipment furnished and owned by the utility. For the purposes of this subrule, a broken or absent meter seal alone shall not constitute tampering.
	(4)	In the event of unauthorized use.
	c. 	Service may be disconnected or refused after proper notice:
	(1)	For violation of or noncompliance with the utility’s rules on file with the board.
	(2)	For failure of the customer to furnish the service equipment, permits, certificates, or rights-of-way which are specified to be furnished, in the utility’s rules filed with the board, as conditions of obtaining service, or for the withdrawal of that same equipment, or for the termination of those same permissions or rights, or for the failure of the customer to fulfill the contractual obligations imposed as conditions of obtaining service by any contract filed with and subject to the regulatory authority of the board.
	(3)	For failure of the customer to permit the utility reasonable access to the utility’s equipment.
	d. 	Service may be refused or disconnected after proper notice for nonpayment of a bill or deposit, except as restricted by subrules 19.4(16) and 19.4(17), provided that the utility has complied with the following provisions when applicable:
	(1)	Given the customer a reasonable opportunity to dispute the reason for the disconnection or refusal;
	(2)	Given the customer, and any other person or agency designated by the customer, written notice that the customer has at least 12 days in which to make settlement of the account to avoid disconnection and a written summary of the rights and responsibilities available. Customers billed more frequently than monthly pursuant to subrule 19.3(7) shall be given posted written notice that they have 24 hours to make settlement of the account to avoid disconnection and a written summary of the rights and responsibilities. All written notices shall include a toll-free or collect telephone number where a utility representative qualified to provide additional information about the disconnection can be reached. Each utility representative must provide the representative’s name and have immediate access to current, detailed information concerning the customer’s account and previous contacts with the utility.
	(3)	The summary of the rights and responsibilities must be approved by the board. Any utility providing gas service and defined as a public utility in Iowa Code section 476.1 which does not use the standard form set forth below for customers billed monthly shall submit to the board an original and six copies of its proposed form for approval. A utility billing a combination customer for both gas and electric service may modify the standard form to replace each use of the word “gas” with the words “gas and electric” in all instances.
CUSTOMER RIGHTS AND RESPONSIBILITIES TO AVOID SHUTOFF
OF GAS SERVICE FOR NONPAYMENT
1. What can I do if I receive a notice from the utility that says my gas service will be shut off because I have a past due bill?
a. Pay the bill in full; or
b. Enter into a reasonable payment plan with the utility (see #2 below); or
c. Apply for and become eligible for low-income energy assistance (see #3 below); or
d. Give the utility a written statement from a doctor or public health official stating that shutting off your gas service would pose an especial health danger for a person living at the residence (see #4 below); or
e. Tell the utility if you think part of the amount shown on the bill is wrong. However, you must still pay the part of the bill you agree you owe the utility (see #5 below).
2. How do I go about making a reasonable payment plan? (Residential customers only)
a. Contact the utility as soon as you know you cannot pay the amount you owe. If you cannot pay all the money you owe at one time, the utility may offer you a payment plan that spreads payments evenly over at least 12 months. The plan may be longer depending on your financial situation.
b. If you have not made the payments you promised in a previous payment plan with the utility and still owe money, you may qualify for a second payment agreement under certain conditions.
c. If you do not make the payments you promise, the utility may shut off your utility service on one day’s notice unless all the money you owe the utility is paid or you enter into another payment agreement.
3. How do I apply for low-income energy assistance? (Residential customers only)
a. Contact the local community action agency in your area (see attached list); or
b. Contact the Division of Community Action Agencies at the Iowa Department of Human Rights, Lucas State Office Building, Des Moines, Iowa 50319; telephone (515)281-0859. To prevent disconnection, you must contact the utility prior to disconnection of your service.
c. To avoid disconnection, you must apply for energy assistance before your service is shut off. Notify your utility that you may be eligible and have applied for energy assistance. Once your service has been disconnected, it will not be reconnected based on approval for energy assistance.
d. Being certified eligible for energy assistance will prevent your service from being disconnected from November 1 through April 1.
4. What if someone living at the residence has a serious health condition? (Residential customers only)
Contact the utility if you believe this is the case. Contact your doctor or a public health official and ask the doctor or health official to contact the utility and state that shutting off your utility service would pose an especial health danger for a person living at your residence. The doctor or public health official must provide a written statement to the utility office within 5 days of when your doctor or public health official notifies the utility of the health condition; otherwise, your utility service may be shut off. If the utility receives this written statement, your service will not be shut off for 30 days. This 30-day delay is to allow you time to arrange payment of your utility bill or find other living arrangements. After 30 days, your service may be shut off if payment arrangements have not been made.
5. What should I do if I believe my bill is not correct?
You may dispute your utility bill. You must tell the utility that you dispute the bill. You must pay the part of the bill you think is correct. If you do this, the utility will not shut off your service for 45 days from the date the bill was mailed while you and the utility work out the dispute over the part of the bill you think is incorrect. You may ask the Iowa Utilities Board for assistance in resolving the dispute. (See #9 below.)
6. When can the utility shut off my utility service because I have not paid my bill?
a. Your utility can shut off service between the hours of 6 a.m.	and 2 p.m., Monday through Friday.
b. The utility will not shut off your service on nights, weekends, or holidays for nonpayment of a bill.
c. The utility will not shut off your service if you enter into a reasonable payment plan to pay the overdue amount (see #2 above).
d. The utility will not shut off your service if the temperature is forecasted to be 20 degrees Fahrenheit or colder during the following 24-hour period, including the day your service is scheduled to be shut off.
e. If you have qualified for low-income energy assistance, the utility cannot shut off your service from November 1 through April 1. However, you will still owe the utility for the service used during this time.
f. The utility will not shut off your service if you have notified the utility that you dispute a portion of your bill and you pay the part of the bill that you agree is correct.
g. If one of the heads of household is a service member deployed for military service, utility service cannot be shut off during the deployment or within 90 days after the end of deployment. In order for this exception to disconnection to apply, the utility must be informed of the deployment prior to disconnection. However, you will still owe the utility for service used during this time.
7. How will I be told the utility is going to shut off my gas service?
a. You must be given a written notice at least 12 days before the utility service can be shut off for nonpayment. This notice will include the reason for shutting off your service.
b. If you have not made payments required by an agreed-upon payment plan, your service may be disconnected with only one day’s notice.
c. The utility must also try to reach you by telephone or in person before it shuts off your service. From November 1 through April 1, if the utility cannot reach you by telephone or in person, the utility will put a written notice on the door of your residence to tell you that your utility service will be shut off.
8. If service is shut off, when will it be turned back on?
a. The utility will turn your service back on if you pay the whole amount you owe or agree to a reasonable payment plan (see #2 above).
b. If you make your payment during regular business hours, or by 7 p.m.	for utilities permitting such payment or other arrangements after regular business hours, the utility must make a reasonable effort to turn your service back on that day. If service cannot reasonably be turned on that same day, the utility must do it by 11 a.m.	the next day.
c. The utility may charge you a fee to turn your service back on. Those fees may be higher in the evening or on weekends, so you may ask that your service be turned on during normal utility business hours.
9. Is there any other help available besides my utility?
If the utility has not been able to help you with your problem, you may contact the Iowa Utilities Board toll-free at 1-877-565-4450. You may also write the Iowa Utilities Board at 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319-0069, or by E-mail at customer@iub.iowa.gov. Low-income customers may also be eligible for free legal assistance from Iowa Legal Aid, and may contact Legal Aid at 1-800-532-1275.
	(4)	When disconnecting service to a residence, made a diligent attempt to contact, by telephone or in person, the customer responsible for payment for service to the residence to inform the customer of the pending disconnection and the customer’s rights and responsibilities. During the period from November 1 through April 1, if the attempt at customer contact fails, the premises shall be posted at least one day prior to disconnection with a notice informing the customer of the pending disconnection and rights and responsibilities available to avoid disconnection.
If an attempt at personal or telephone contact of a customer occupying a rental unit has been unsuccessful, the landlord of the rental unit, if known, shall be contacted to determine if the customer is still in occupancy and, if so, the customer’s present location. The landlord shall also be informed of the date when service may be disconnected.
If the disconnection will affect occupants of residential units leased from the customer, the premises of any building known by the utility to contain residential units affected by disconnection must be posted, at least two days prior to disconnection, with a notice informing any occupants of the date when service will be disconnected and the reasons for the disconnection.
	(5)	Disputed bill. If the customer has received notice of disconnection and has a dispute concerning a bill for natural gas service, the utility may require the customer to pay a sum of money equal to the amount of the undisputed portion of the bill pending settlement and thereby avoid disconnection of service. A utility shall delay disconnection for nonpayment of the disputed bill for up to 45 days after the rendering of the bill if the customer pays the undisputed amount. The 45 days shall be extended by up to 60 days if requested of the utility by the board in the event the customer files a written complaint with the board in compliance with 199—Chapter 6.
	(6)	Reconnection. Disconnection of a residential customer may take place only between the hours of 6 a.m.	and 2 p.m.	on a weekday and not on weekends or holidays. If a disconnected customer makes payment or other arrangements during normal business hours, or by 7 p.m.	for utilities permitting such payment or other arrangements after normal business hours, all reasonable efforts shall be made to reconnect the customer that day. If a disconnected customer makes payment or other arrangements after 7 p.m., all reasonable efforts shall be made to reconnect the customer not later than 11 a.m.	the next day.
	(7)	Severe cold weather. A disconnection may not take place where gas is used as the only source of space heating or to control or operate the only space heating equipment at the residence on any day when the National Weather Service forecast for the following 24 hours covering the area in which the residence is located includes a forecast that the temperature will be 20 degrees Fahrenheit or colder. In any case where the utility has posted a disconnect notice in compliance with subparagraph 19.4(15)“d”(4) but is precluded from disconnecting service because of a National Weather Service forecast, the utility may immediately proceed with appropriate disconnection procedures, without further notice, when the temperature in the area where the residence is located rises above 20 degrees Fahrenheit and is forecasted to be above 20 degrees Fahrenheit for at least 24 hours, unless the customer has paid in full the past due amount or is entitled to postponement of disconnection under some other provision of paragraph 19.4(15)“d.”
	(8)	Health of a resident. Disconnection of a residential customer shall be postponed if the disconnection of service would present an especial danger to the health of any permanent resident of the premises. An especial danger to health is indicated if a person appears to be seriously impaired and may, because of mental or physical problems, be unable to manage the person’s own resources, to carry out activities of daily living or to be protected from neglect or hazardous situations without assistance from others. Indicators of an especial danger to health include but are not limited to: age, infirmity, or mental incapacitation; serious illness; physical disability, including blindness and limited mobility; and any other factual circumstances which indicate a severe or hazardous health situation.
The utility may require written verification of the especial danger to health by a physician or a public health official, including the name of the person endangered; a statement that the person is a resident of the premises in question; the name, business address, and telephone number of the certifying party; the nature of the health danger; and approximately how long the danger will continue. Initial verification by the verifying party may be by telephone if written verification is forwarded to the utility within five days.
Verification shall postpone disconnection for 30 days. In the event service is terminated within 14 days prior to verification of illness by or for a qualifying resident, service shall be restored to that residence if a proper verification is thereafter made in accordance with the foregoing provisions. If the customer does not enter into a reasonable payment agreement for the retirement of the unpaid balance of the account within the first 30 days and does not keep the current account paid during the period that the unpaid balance is to be retired, the customer is subject to disconnection pursuant to paragraph 19.4(15)“f.”
	(9)	Winter energy assistance (November 1 through April 1). If the utility is informed that the customer’s household may qualify for winter energy assistance or weatherization funds, there shall be no disconnection of service for 30 days from the date the utility is notified to allow the customer time to obtain assistance. Disconnection shall not take place from November 1 through April 1 for a resident who is a head of household and who has been certified to the public utility by the community action agency as eligible for either the low-income home energy assistance program or weatherization assistance program.
	(10)	Deployment. If the utility is informed that one of the heads of household as defined in Iowa Code section 476.20 is a service member deployed for military service, as defined in Iowa Code section 29A.90, disconnection cannot take place at the residence during the deployment or prior to 90 days after the end of the deployment.
	e. 	Abnormal gas consumption. A customer who is subject to disconnection for nonpayment of bill, and who has gas consumption which appears to the customer to be abnormally high, may request the utility to provide assistance in identifying the factors contributing to this usage pattern and to suggest remedial measures. The utility shall provide assistance by discussing patterns of gas usage which may be readily identifiable, suggesting that an energy audit be conducted, and identifying sources of energy conservation information and financial assistance which may be available to the customer.
	f. 	A utility may disconnect gas service without the written 12-day notice for failure of the customer to comply with the terms of a payment agreement, except as provided in numbered paragraph 19.4(10)“c”(1)“4,” provided the utility complies with the provisions of paragraph 19.4(15)“d.”
	g. 	The utility shall, prior to November 1, mail customers a notice describing the availability of winter energy assistance funds and the application process. The notice must be of a type size that is easily legible and conspicuous and must contain the information set out by the state agency administering the assistance program. A utility serving fewer than 25,000 customers may publish the notice in a customer newsletter in lieu of mailing. A utility serving fewer than 6,000 customers may publish the notice in an advertisement in a local newspaper of general circulation or shopper’s guide.
	19.4(16) Insufficient reasons for denying service. The following shall not constitute sufficient cause for refusal of service to a customer:
	a. 	Delinquency in payment for service by a previous occupant of the premises to be served.
	b. 	Failure to pay for merchandise purchased from the utility.
	c. 	Failure to pay for a different type or class of public utility service.
	d. 	Failure to pay the bill of another customer as guarantor thereof.
	e. 	Failure to pay the back bill rendered in accordance with paragraph 19.4(13)“b” (slow meters).
	f. 	Failure to pay adjusted bills based on the undercharges set forth in paragraph 19.4(13)“e.”
	g. 	Failure of a residential customer to pay a deposit during the period November 1 through April 1 for the location at which the customer has been receiving service.
	h. 	Delinquency in payment for service by an occupant, if the customer applying for service is creditworthy and able to satisfy any deposit requirements.
	19.4(17) When disconnection prohibited.
	a. 	No disconnection may take place from November 1 through April 1 for a resident who is a head of household and who has been certified to the public utility by the local community action agency as being eligible for either the low-income home energy assistance program or weatherization assistance program.
	b. 	If the utility is informed that one of the heads of household as defined in Iowa Code section 476.20 is a service member deployed for military service, as defined in Iowa Code section 29A.90, disconnection cannot take place at the residence during the deployment or prior to 90 days after the end of the deployment.
	19.4(18) Change in character of service. The following shall apply to a material change in the character of gas service:
	a. 	Changes under the control of the utility. The utility shall make such changes only with the approval of the board, and after adequate notice to the customers (see 19.7(6)“a”).
	b. 	Changes not under control of the utility or customer. The utility shall adjust appliances to attain the proper combustion of the gas supplied. Due consideration shall be given to the gas heating value and specific gravity (see 19.7(6)“b”).
	c. 	Appliance adjustment charge. The utility shall make any necessary adjustments to the customer’s appliances without charge and shall conduct the adjustment program with a minimum of inconvenience to the customers.
	19.4(19) Customer complaints. Each utility shall investigate promptly and thoroughly and keep a record of written complaints and all other reasonable complaints received by it from its customers in regard to safety, service, or rates, and the operation of its system as will enable it to review and analyze its procedures and actions. The record shall show the name and address of the complainant, the date and nature of the complaint, and its disposition and the date thereof. All complaints caused by a major outage or interruption shall be summarized in a single report.
	a. 	Each utility shall provide in its filed tariff a concise, fully informative procedure for the resolution of customer complaints.
	b. 	The utility shall take reasonable steps to ensure that customers unable to travel shall not be denied the right to be heard.
	c. 	The final step in a complaint hearing and review procedure shall be a filing for board resolution of the issues.
This rule is intended to implement Iowa Code sections 476.2, 476.6, 476.8, 476.20 and 476.54.
[ARC 9101B, IAB 9/22/10, effective 10/27/10; Editorial change: IAC Supplement 12/29/10]
199—19.5(476) Engineering practice.
	19.5(1) Requirement for good engineering practice. The gas plant of the utility shall be constructed, installed, maintained and operated in accordance with accepted good engineering practice in the gas industry to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property.
	19.5(2) Standards incorporated by reference.
	a. 	The design, construction, operation, and maintenance of gas systems and liquefied natural gas facilities shall be in accordance with the following standards where applicable:
	(1)	49 CFR Part 191, “Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports,” as amended through April 9, 2014.
	(2)	49 CFR Part 192, “Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards,” as amended through April 9, 2014.
	(3)	49 CFR Part 193, “Liquefied Natural Gas Facilities: Federal Safety Standards,” as amended through April 9, 2014.
	(4)	49 CFR Part 199, “Drug and Alcohol Testing,” as amended through April 9, 2014.
	(5)	ASME B31.8 - 2007, “Gas Transmission and Distribution Piping Systems.”
	(6)	NFPA 59-2008, “Utility LP-Gas Plant Code.”
	(7)	At railroad crossings, 199—42.7(476), “Engineering standards for pipelines.”
	b. 	The following publications are adopted as standards of accepted good practice for gas utilities:
	(1)	ANSI Z223.1/NFPA 54-2012, “National Fuel Gas Code.”
	(2)	NFPA 501A-2013, “Standard for Fire Safety Criteria for Manufactured Home Installations, Sites, and Communities.”
	19.5(3) Adequacy of gas supply. The natural gas regularly available from supply sources supplemented by production or storage capacity must be sufficiently large to meet all reasonable demands for firm gas service.
	19.5(4) Gas transmission and distribution facilities. The utility’s gas transmission and distribution facilities shall be designed, constructed and maintained as required to reliably perform the gas delivery burden placed upon them. Each utility shall be capable of emergency repair work on a scale consistent with its scope of operation and with the physical conditions of its transmission and distribution facilities.
In appraising the reliability of the utility’s transmission and distribution system, the board will consider, as principal factors, the condition of the physical property and the size, training, supervision, availability, equipment and mobility of the maintenance forces.
	19.5(5) Inspection of gas plant. Each utility shall adopt a program of inspection of its gas plant in order to determine the necessity for replacement and repair. The frequency of the various inspections shall be based on the utility’s experience and accepted good practice. Each utility shall keep sufficient records to give evidence of compliance with its inspection program.
[ARC 7962B, IAB 7/15/09, effective 8/19/09; ARC 9501B, IAB 5/18/11, effective 6/22/11; ARC 1359C, IAB 3/5/14, effective 4/9/14]
199—19.6(476) Metering.
	19.6(1) Inspection and testing program. Each utility shall adopt a written program for the inspection and testing of its meters to determine the necessity for adjustment, replacement or repair. The frequency of inspection and methods of testing shall be based on the utility’s experience, manufacturer’s recommendations, and accepted good practice. The board considers the publications listed in 19.6(3) to be representative of accepted good practice. Each utility shall maintain inspection and testing records for each meter and associated device until three years after its retirement.
	19.6(2) Program content. The written program shall, at minimum, address the following subject areas:
	a. 	Classification of meters by capacity, type, and any other factor considered pertinent.
	b. 	Checking of new meters for acceptable accuracy before being placed in service.
	c. 	Testing of in-service meters, including any associated instruments or corrective devices, for accuracy, adjustments or repairs. This may be accomplished by periodic tests at specified intervals or on the basis of a statistical sampling plan, but shall include meters removed from service for any reason.
	d. 	Periodic calibration or testing of devices or instruments used by the utility to test meters.
	e. 	Leak testing of meters before return to service.
	f. 	The limits of meter accuracy considered acceptable by the utility.
	g. 	The nature of meter and meter test records maintained by the utility.
	19.6(3) Accepted good practice. The following publications are considered to be representative of accepted good practice in matters of metering and meter testing:
	a. 	American National Standard for Gas Displacement Meters (500 Cubic Feet Per Hour Capacity and Under), ANSI B109.1-2000.
	b. 	American National Standard for Diaphragm Type Gas Displacement Meters (Over 500 Cubic Feet Per Hour Capacity), ANSI B109.2-2000.
	c. 	American National Standard for Rotary Type Gas Displacement Meters, ANSI B109.3-2000.
	d. 	Measurement of Gas Flow by Turbine Meters, ANSI/ASME MFC-4M-1986 (Reaffirmed 2008).
	e. 	Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids, API MPMS Chapter 14.3, Parts 1-4.
	19.6(4) Meter adjustment. All meters and associated metering devices shall, when tested, be adjusted as closely as practicable to the condition of zero error.
	19.6(5) Request tests. Upon request by a customer, a utility shall test the meter servicing that customer. A test need not be made more frequently than once in 18 months.
A written report of the test results shall be mailed to the customer within ten days of the completed test and a record of each test shall be kept on file at the utility’s office. The utility shall give the customer or a representative of the customer the opportunity to be present while the test is conducted.
If the test finds the meter is accurate within the limits accepted by the utility in its meter inspection and testing program, the utility may charge the customer $25 or the cost of conducting the test, whichever is less. The customer shall be advised of any potential charge before the meter is removed for testing.
	19.6(6) Referee tests. Upon written request by a customer or utility, the board will conduct a referee test of a meter. A test need not be made more frequently than once in 18 months. The customer request shall be accompanied by a $30 deposit in the form of a check or money order made payable to the utility.
Within 5 days of receipt of the written request and payment, the board shall forward the deposit to the utility and notify the utility of the requirement for a test. The utility shall, within 30 days after notification of the request, schedule the date, time and place of the test with the board and customer. The meter shall not be removed or adjusted before the test. The utility shall furnish all testing equipment and facilities for the test. If the tested meter is found to be more than 2 percent fast or 2 percent slow, the deposit will be returned to the party requesting the test and billing adjustments shall be made as required in 19.4(13). The board shall issue its report within 15 days after the test is conducted, with a copy to the customer and the utility.
	19.6(7) Condition of meter. No meter that is known to be mechanically defective, has an incorrect correction factor, or has not been tested and adjusted, if necessary, in accordance with 19.6(2)“b,” “c,” and “e,” shall be installed or continued in service. The capacity of the meter and the index mechanism shall be consistent with the gas requirements of the customer.
[ARC 7962B, IAB 7/15/09, effective 8/19/09]
199—19.7(476) Standards of quality of service.
	19.7(1) Purity requirements. All gas supplied to customers shall be substantially free of impurities which may cause corrosion of mains or piping or from corrosive or harmful fumes when burned in a properly designed and adjusted burner.
	19.7(2) Pressure limits. The maximum allowable operating pressure for a low-pressure distribution system shall not be so high as to cause the unsafe operation of any connected and properly adjusted low-pressure gas-burning equipment.
	19.7(3) Adequacy for pressure. Each utility shall have a substantially accurate knowledge of the pressures inside its piping. Periodic pressure measurements shall be taken during periods of high demand at remote locations in distribution systems to determine the adequacy of service. Records of such measurements including the date, time, and location of the measurement shall be maintained not less than two years.
	19.7(4) Standards for pressure measurements.
	a. 	Secondary standards. Each utility shall own or have access to a dead weight tester. This instrument must be maintained in an accurate condition.
	b. 	Working standards. Each utility must have or have access to water manometers, laboratory quality indicating pressure gauges, and field-type dead weight pressure gauges as necessary for the proper testing of the indicating and recording pressure gauges used in determining the pressure on the utility’s system. Working standards must be checked periodically by comparison with a secondary standard.
	19.7(5) Handling of standards. Extreme care must be exercised in the handling of standards to ensure that their accuracy is not disturbed. Each standard shall be accompanied at all times by a certificate or calibration card, duly signed and dated, on which are recorded the corrections required to compensate for errors found at the customary test points at the time of the last previous test.
	19.7(6) Heating value.
	a. 	Awareness. Each utility shall have a substantially accurate knowledge of the heating value of the gas being delivered to customers at all times.
	b. 	Natural and LP-gas. The heating value of natural gas and undiluted, commercially pure LP-gas shall be considered as being not under the control of the utility. The utility shall determine the allowable range of monthly average heating values within which its customers’ appliances may be expected to function properly without repeated readjustment of the burners. If the monthly average heating value is above or below the limits of the allowable range for three successive months, the customers’ appliances must be readjusted in accordance with 19.4(18)“c.”
	c. 	Peak shaving or other mixed gas. The heating value of gas in a distribution system which includes gas from LP or LNG peak shaving facilities, or gas from a source other than a pipeline supplier, shall be considered within the control of the utility. The average daily heating value of mixed gas shall be at least 95 percent of that normally delivered by the pipeline supplier. All mixed gas shall have a specific gravity of less than 1.000, and heating value shall not be so high as to cause improper operation of properly adjusted customer equipment.
	d. 	Heating value determination and records. Unless acceptable heating value information is available for all periods from other sources, including the pipeline supplier, the utility shall provide and maintain equipment, or shall have a method of computation, by which the heating value of the gas in a distribution system can be accurately determined. The type, accuracy, operation and location of equipment, and the accuracy of computation methods, shall be in accordance with accepted industry practices and equipment manufacturer’s recommendations and shall be subject to review by the board.
	19.7(7) Interruptions of service.
	a. 	Each utility shall make reasonable efforts to avoid interruptions of service, but when interruptions occur, service shall be reestablished within the shortest time practicable, consistent with safety. Each utility shall maintain records for not less than two years of interruptions of service as required to be reported in 19.17(1) and shall periodically review these records to determine steps to be taken to prevent recurrence.
	b. 	Planned interruptions shall be made at a time that will not cause unreasonable inconvenience to customers. Interruptions shall be preceded by adequate notice to those who will be affected.
199—19.8(476) Safety.
	19.8(1) Acceptable standards. As criteria of accepted good safety practice the board will use the applicable provisions of the standard listed in 19.5(2).
	19.8(2) Protective measures. Each utility shall exercise reasonable care to reduce hazards inherent in connection with utility service to which its employees, its customers, and the general public may be subjected and shall adopt and execute a safety program designed to protect the public, fitted to the size and type of its operations. The utility shall give reasonable assistance to the board in the investigation of the cause of accidents and in the determination of suitable means of preventing accidents. Each utility shall maintain a summary of all reportable accidents arising from its operations.
	19.8(3) Turning on gas. Each utility upon the installation of a meter and turning on gas or the act of turning on gas alone shall take the necessary steps to assure itself that there exists no flow of gas through the meter which is a warning that the customer’s piping or appliances are not safe for gas turn on (Ref: Sec.	8.2.3 and Annex D, ANSI Z223.1/NFPA 54-2009).
	19.8(4) Gas leaks. A report of a gas leak shall be considered as an emergency requiring immediate attention.
	19.8(5) Odorization. Any gas distributed to customers through gas mains or gas services or used for domestic purposes in compressor plants, which does not naturally possess a distinctive odor to the extent that its presence in the atmosphere is readily detectable at all gas concentrations of one-fifth of the lower explosive limit and above, shall have an odorant added to it to make it so detectable. Odorization is not necessary, however, for such gas as is delivered for further processing or use where the odorant would serve no useful purpose as a warning agent. Suitable tests must be made to determine whether the odor meets the standards of subrule 19.5(2). Prompt remedial action shall be taken if odorization levels do not meet the prescribed limits for detectability.
	19.8(6) Burial near electric lines. Each pipeline shall be installed with at least 12 inches of clearance from buried electrical conductors. If this clearance cannot be maintained, protection from damage or introduction of current from an electrical fault shall be provided by other means.
[ARC 7962B, IAB 7/15/09, effective 8/19/09]
199—19.9(476) Energy conservation strategies. Rescinded IAB 11/12/03, effective 12/7/03.
199—19.10(476) Purchased gas adjustment (PGA).
	19.10(1) Purchased gas adjustment clause. Purchased gas adjustments shall be computed separately for each customer classification or grouping previously approved by the board. Purchased gas adjustments shall use the same unit of measure as the utility’s tariffed rates. Purchased gas adjustments shall be calculated using factors filed in annual or periodic filings according to the following formula:
PGA = (C × Rc) + (D × Rd) + (Z × Rz) + Rb + E
S
PGA is the purchased gas adjustment per unit.
S is the anticipated yearly gas commodity sales volume for each customer classification or grouping.
C is the volume of applicable commodity purchased or transported for each customer classification or grouping required to meet sales, S, plus the expected lost and unaccounted for volumes.
Rc is the weighted average of applicable commodity prices or rates, including appropriate hedging tools costs, to be in effect September 1 corresponding to purchases C.
D is the total volume of applicable entitlement reservation purchases required to meet sales, S, for each customer classification or grouping.
Rd is the weighted average of applicable entitlement reservation charges to be in effect September 1 corresponding to purchases D.
Z is the total quantity of applicable storage service purchases required to meet sales, S, for each customer classification or grouping.
Rz is the weighted average of applicable storage service rates to be in effect September 1 corresponding to purchases Z.
Rb is the adjusted amount necessary to obtain the anticipated balance for the remaining PGA year calculated by taking the anticipated PGA balance divided by the forecasted volumes, including storage, for one or more months of the remaining PGA year.
E is the per unit overcollection or undercollection adjustment as calculated under subrule 19.10(7).
The components of the formula shall be determined as follows for each customer classification or grouping:
	a. 	The actual sales volumes S for the prior 12-month period ending May 31, with the necessary degree-day adjustments, and further adjustments approved by the board.
Unless a utility receives prior board approval to use another methodology, a utility shall use the same weather normalization methodology used in prior approved PGA and rate case.
	b. 	The annual expected lost and unaccounted for factors shall be calculated by determining the actual difference between sales and purchase volumes for the 12 months ending May 31 or from the current annual IG-1 filing, but in no case will this factor be less than 0.
	c. 	The purchases C, D, and Z which will be necessary to meet requirements as determined in 19.10(1).
	d. 	The purchased gas adjustments shall be adjusted prospectively to reflect the final decision issued by the board in a periodic review proceeding.
	19.10(2) Annual purchased gas adjustment filing. Each rate-regulated utility shall file on or before August 1 of each year, for the board’s approval, a purchased gas adjustment for the 12-month period beginning September 1 of that year.
The annual filing shall restate each factor of the formula stated in subrule 19.10(1).
The annual filing shall be based on customer classifications and groupings previously approved by the board unless new classifications or groupings are proposed.
The annual filing shall include all worksheets and detailed supporting data used to determine the purchased gas adjustment volumes and factors. The utility shall provide an explanation of the calculations of each factor. Information already on file with the board may be incorporated by reference in the filing.
	19.10(3) Periodic changes to purchased gas adjustment clause. Periodic purchased gas adjustment filings shall be based on the purchased gas adjustment customer classifications and groupings previously approved by the board. Changes in the customer classification and grouping on file are not automatic and require prior approval by the board.
Periodic filings shall include all worksheets and detailed supporting data used to determine the amount of the adjustment.
Changes in factors S or C may not be made in periodic purchased gas filings. A change in factor D or Z may be made in periodic filings and will be deemed approved if it conforms to the annual purchased gas filing or if it conforms to the principles set out in 19.10(6).
The utility shall implement automatically all purchased gas adjustment changes which result from changes in Rc, Rd, or Rz with concurrent board notification with adequate information to calculate and support the change. The purchased gas adjustment shall be calculated separately for each customer classification or grouping.
Unless otherwise ordered by the board, a rate-regulated utility’s purchased gas adjustment rate factors shall be adjusted as purchased gas costs change and shall recover from the customers only the actual costs of purchased gas and other currently incurred charges associated with the delivery, inventory, or reservation of natural gas. Such periodic changes shall become effective with usage on or after the date of change.
	19.10(4) Factor Rb. Each utility has the option of filing an Rb calculation with its October-January PGA filings but shall file an Rb calculation with its February filing and subsequent monthly filings in the PGA year. If the anticipated PGA balance represents costs in excess of revenues, factor Rb shall be assigned a positive value; if the anticipated balance represents revenues in excess of costs, factor Rb shall be assigned a negative value.
	19.10(5) Take-or-pay adjustment. Rescinded IAB 11/12/03, effective 12/17/03.
	19.10(6) Allocations of changes in contract pipeline transportation capacity obligations. Any change in contractual pipeline transportation capacity obligations to transportation or storage service providers serving Iowa must be reported to the board within 30 days of receipt. The change must be applied on a pro-rata basis to all customer classifications or groupings, unless another method has been approved by the board. Where a change has been granted as a result of the utility’s request based on the needs of specified customers, that change may be allocated to the specified customers. Where the board has approved anticipated sales levels for one or more customer classifications or groupings, those levels may limit the pro-rata reduction for those classifications or groupings.
	19.10(7) Reconciliation of underbillings and overbillings. The utility shall file with the board on or before October 1 of each year a purchased gas adjustment reconciliation for the 12-month period which began on September 1 of the previous year. This reconciliation shall be the actual net invoiced costs of purchased gas and appropriate financial hedging tools costs less the actual revenue billed through its purchased gas adjustment clause net of the prior year’s reconciliation dollars for each customer classification or grouping. Actual net costs for purchased gas shall be the applicable invoice costs from all appropriate sources associated with the time period of usage.
Negative differences in the reconciliation shall be considered overbilling by the utility and positive differences shall be considered underbilling. This reconciliation shall be filed with all worksheets and detailed supporting data for each particular purchased gas adjustment clause. Penalty purchases shall only be includable where the utility clearly demonstrates a net savings.
	a. 	The annual reconciliation filing shall include the following information concerning the hedging tools used by the utility:
	(1)	The type and volume of physical gas being hedged.
	(2)	The reason the hedge was undertaken (e.g., to hedge storage gas, a floating price contract).
	(3)	A detailed explanation of the hedging strategy (e.g., costless collar, straddled costless collar, purchasing or selling options).
	(4)	The date the futures contract or option was purchased or the date the swap was entered into.
	(5)	The spot price of gas at the time the hedge was made, including an explanation of how the spot price was determined including the index or indices used.
	(6)	The amount of all commissions paid and to whom those payments were made.
	(7)	All administrative costs associated with the hedge.
	(8)	The name(s) of all marketers used and the amount of money paid to each marketer.
	(9)	The amount of savings or costs resulting from the hedge.
	(10)	The amount of money tied up in margin accounts for futures trading and the cost of that money.
	(11)	The premium paid for each option.
	(12)	The strike price of each option.
	(13)	The contracting costs for each swap transaction.
	(14)	The name of the fixed-price payer in a swap transaction.
	(15)	A statement as to how the hedge is consistent with the LDC’s natural gas procurement plan.
	(16)	An explanation as to why the LDC believes the hedge was in the best interest of general system customers.
	(17)	All invoices, work papers, and internal reports associated with the hedge.
	b. 	Any underbilling determined from the reconciliation shall be collected through ten-month adjustments to the appropriate purchased gas adjustment. The underbilling generated from each purchased gas adjustment clause shall be divided by the anticipated sales volumes for the prospective ten-month period beginning November 1 (based upon the sales determination in subrule 19.10(1)).
The quotient, determined on the same basis as the utility’s tariff rates, shall be added to the purchased gas adjustment for the prospective ten-month period beginning November 1.
	c. 	Any overbilling determined from the reconciliation shall be refunded to the customer classification or grouping from which it was generated. The overbilling shall be divided by the annual cost of purchased gas subject to recovery for the 12-month period which began the prior September 1 for each purchased gas adjustment clause and applied as follows:
	(1)	If the net overbilling from the purchased gas adjustment reconciliation exceeds 3 percent of the annual cost of purchased gas subject to recovery for a specific customer classification or grouping, the utility shall refund the overbilling by bill credit or check starting on the first day of billing in the November billing cycle of the current year. The minimum amount to be refunded by check shall be $10. Interest shall be calculated on amounts exceeding 3 percent from the PGA year midpoint to the date of refunding. The interest rate shall be the dealer commercial paper rate (90-day, high-grade unsecured notes) quoted in the “Money Rates” section of the Wall Street Journal on the last working day of August of the current year.
	(2)	If the net overbilling from the purchased gas adjustment reconciliation does not exceed 3 percent of the annual cost of purchased gas subject to recovery for a specific customer classification or grouping, the utility may refund the overbilling by bill credit or check starting on the first day of billing in the November billing cycle of the current year, or the utility may refund the overbilling through ten-month adjustments to the particular purchased gas adjustment from which they were generated. The minimum amount to be refunded by check shall be $10. This adjustment shall be determined by dividing the overcollection by the anticipated sales volume for the prospective ten-month period beginning November 1 as determined in subrule 19.10(1) for the applicable purchased gas adjustment clause. The quotient, determined on the same basis as the utility’s tariff rates, shall be a reduction to that particular purchased gas adjustment for the prospective ten-month period beginning November 1.
	d. 	When a customer has reduced or terminated system supply service and is receiving transportation service, any liability for overcollections and undercollections shall be determined in accordance with the utility’s gas transportation tariff.
	19.10(8) Refunds related to gas costs charged through the PGA. The utility shall file a refund plan with the board within 30 days of the receipt of any refund related to gas costs charged through the PGA.
	a. 	The utility shall refund to customers by bill credit or check an amount equal to any refund, plus accrued interest, if the refund exceeds $10 per average residential customer under the applicable customer classification or grouping. The utility may refund lesser amounts through the applicable customer classification or grouping or retain undistributed refund amounts in special refund retention accounts for each customer classification or grouping under the applicable PGA clause until such time as additional refund obligations or interest cause the average residential customer refund to exceed $10. Any obligations remaining in the retention accounts on September 1 shall become a part of the annual PGA reconciliation.
	b. 	The utility shall file with the refund plan the following information:
	(1)	A statement of reason for the refund.
	(2)	The amount of the refund with support for the amount.
	(3)	The balance of the appropriate refund retention accounts.
	(4)	The amount due under each customer classification or grouping.
	(5)	The intended period of the refund distribution.
	(6)	The estimated interest accrued for each refund through the proposed refund period, with complete interest calculations and supporting data as determined in paragraph 19.10(8)“d.”
	(7)	The total amount to be refunded, the amount to be refunded per customer classification or grouping, and the refund per ccf or therm.
	(8)	The estimated interest accrued for each refund received and for each amount in the refund retention accounts through the date of the filing with the complete interest calculation and support as determined in paragraph 19.10(8)“d.”
	(9)	The total amount to be retained, the amount to be retained per customer classification or grouping, and the level per ccf or therm.
	(10)	The calculations demonstrating that the retained balance is less than $10 per average residential customer with supporting schedules for all factors used.
	c. 	The refund to each customer shall be determined by dividing the amount in the appropriate refund retention account, including interest, by the total ccf or therm of system gas consumed by affected customers during the period for which the refundable amounts are applicable and multiplying the quotient by the ccf or therms of system supply gas actually consumed by the customer during the appropriate period. The utility may use the last available 12-month period if the use of the actual period generating the refund is impractical. The utility shall file complete support documentation for all figures used.
	d. 	The interest rate on refunds distributed under this subrule, compounded annually, shall be the dealer commercial paper rate (90-day, high-grade unsecured notes) quoted in the “Money Rates” section of the Wall Street Journal on the day the refund obligation vests. Interest shall accrue from the date the rate-regulated utility receives the refund or billing from the supplier or the midpoint of the first month of overcollection to the date the refund is distributed to customers.
	e. 	The rate-regulated utility shall make a reasonable effort to forward refunds, by check, to eligible recipients who are no longer customers.
	f. 	The minimum amount to be refunded by check shall be $5.
This rule is intended to implement Iowa Code section 476.6(11).
199—19.11(476) Periodic review of gas procurement practices [476.6(15)].
	19.11(1) Procurement plan. The board shall periodically conduct a contested case proceeding for the purpose of evaluating the reasonableness and prudence of a rate-regulated public utility’s natural gas procurement and contracting practices. The board shall provide the utilities 90 days’ notice of the requirement to file a procurement plan. In the years in which the board does not conduct a contested case proceeding, the board may require the utilities to file certain information for the board’s review. In years in which the board conducts a full proceeding, a rate-regulated utility shall file prepared direct testimony and exhibits in support of a detailed 12-month plan and a 3-year natural gas procurement plan. A utility’s procurement plan shall be organized as follows and shall include:
	a. 	An index of all documents and information filed in the plan and identification of the board files in which documents incorporated by reference are located.
	b. 	All contracts and gas supply arrangements executed or in effect for obtaining gas and all supply arrangements planned for the future 12-month and 3-year periods.
	c. 	An organizational description of the officer or division responsible for gas procurement and a summary of operating procedures and policies for procuring and evaluating gas contracts.
	d. 	A summary of the legal and regulatory actions taken to minimize purchased gas costs.
	e. 	All studies or investigation reports considered in gas purchase contract or arrangement decisions during the plan periods.
	f. 	A complete list of all contracts executed since the last procurement review.
	g. 	A list of other unbundled services available (for example, storage services if offered).
	h. 	A description of the supply options selected and an evaluation of the reasonableness and prudence of its decisions. This evaluation should show the relationship between forecast and procurement.
	19.11(2) Gas requirement forecast. Rescinded IAB 4/3/91, effective 3/15/91.
	19.11(3) Annual review proceeding. Rescinded IAB 2/9/00, effective 3/15/00.
	19.11(4) Evaluation of the plan. The burden shall be on the utility to prove it is taking all reasonable actions to minimize its purchased gas costs. The board will evaluate the reasonableness and prudence of the gas procurement plan.
	19.11(5) Disallowance of costs. The board shall disallow any purchased gas costs in excess of costs incurred under responsible and prudent policies and practices. The PGA factor shall be adjusted prospectively to reflect the disallowance.
	19.11(6) Executive summary. On or before August 1, 2003, each natural gas utility shall file an executive summary and index of all standard and special contracts in effect for the purchase, sale or interchange of gas. On or before August 1 each year thereafter, each natural gas utility shall file an update of the executive summary and index showing the standard and special contracts in effect on that date for the purchase, sale or interchange of gas. The executive summary shall include the following information:
	a. 	The contract number;
	b. 	The start and end date;
	c. 	The parties to the contract;
	d. 	The total estimated dollar value of the contract;
	e. 	A description of the type of service offered (including volumes and price).
This rule is intended to implement Iowa Code section 476.6(15).
199—19.12(476) Flexible rates.
	19.12(1) Purpose. This subrule is intended to allow gas utility companies to offer, at their option, incentive or discount rates to their sales and transportation customers.
	19.12(2) General criteria.
	a. 	Natural gas utility companies may offer discounts to individual customers, to selected groups of customers, or to an entire class of customer. However, discounted rates must be offered to all directly competing customers in the same service territory. Customers are direct competitors if they make the same end product (or offer the same service) for the same general group of customers. Customers that only produce component parts of the same end product are not directly competing customers.
	b. 	In deciding whether to offer a specific discount, the utility shall evaluate the individual customer’s, group’s, or class’s situation and perform a cost-benefit analysis before offering the discount.
	c. 	Any discount offered should be such as to significantly affect the customer’s or customers’ decision to stay on the system or to increase consumption.
	d. 	The consequences of offering the discount should be beneficial to all customers and to the utility. Other customers should not be at risk of loss as a result of these discounts; in addition, the offering of discounts shall in no way lead to subsidization of the discounted rates by other customers in the same or different classes.
	19.12(3) Tariff requirements. If a company elects to offer flexible rates, the utility shall file for review and approval tariff sheets specifying the general conditions for offering discounted rates. The tariff sheets shall include, at a minimum, the following criteria:
	a. 	The cost-benefit analysis must demonstrate that offering the discount will be more beneficial than not offering the discount.
	b. 	The ceiling for all discounted rates shall be the approved rate on file for the customer’s rate class.
	c. 	The floor for the discount sales rates shall be equal to the cost of gas. Therefore, the maximum discount allowed under the sales or transportation tariffs is equal to the nongas costs of serving the customer.
	d. 	No discount shall be offered for a period longer than five years, unless the board determines upon good cause shown that a longer period is warranted.
	e. 	Discounts should not be offered if they will encourage deterioration in the load characteristics of the customer receiving the discount.
	f. 	Customer charges may be discounted.
	19.12(4) Reporting requirements. Each natural gas utility electing to offer flexible rates shall file annual reports with the board within 30 days of the end of each 12 months. Reports shall include the following information:
	a. 	Section 1 of the report concerns discounts initiated in the last 12 months. For all discounts initiated in the last 12 months, the report shall include:
	(1)	The identity of the new customers (by account number, if necessary);
	(2)	The value of the discount offered;
	(3)	The cost-benefit analysis results;
	(4)	The cost of alternate fuels available to the customer, if relevant;
	(5)	The volume of gas sold to or transported for the customer in the preceding 12 months; and
	(6)	A copy of all new or revised flexible rate contracts executed between the utility and its customers.
	b. 	Section 2 of the report relates to overall program evaluation. For all discounts currently being offered, the report shall include:
	(1)	The identity of each customer (by account number, if necessary);
	(2)	The total volume of gas sold or transported in the last 12 months to each customer at discounted rates, by month;
	(3)	The volume of gas sold or transported to each customer in the same 12 months of the preceding year, by month;
	(4)	The dollar value of the discount in the last 12 months to each customer, by month;
	(5)	The dollar value of volumes sold or transported to each customer for each of the previous 12 months; and
	(6)	If customer charges are discounted, the dollar value of the discount shall be separately reported.
	c. 	Section 3 of the report concerns discounts denied or discounts terminated. For all customers specifically evaluated and denied or having a discount terminated in the last 12 months, the report shall include:
	(1)	Customer identification (by account number, if necessary);
	(2)	The volume of gas sold or transported in the last 12 months to each customer, by month;
	(3)	The volume of gas sold or transported to each customer in the same 12 months of the preceding year, by month; and
	(4)	The dollar value of volumes sold or transported to each customer for each of the past 12 months.
	d. 	No report is required if the utility had no customers receiving a discount during the relevant period and had no customers which were evaluated for the discount and rejected during the relevant period.
	19.12(5) Rate case treatment. In a rate case, 50 percent of any identifiable increase in net revenues will be used to reduce rates for all customers; the remaining 50 percent of the identifiable increase in net revenues may be kept by the utility. If there is a decrease in revenues due to the discount, the utility’s test year revenues will be adjusted to remove the effects of the discount by assuming that all sales or transportation services or customer charges were provided at full tariffed rate for the customer class. Determining the actual amount will be a factual determination to be made in the rate case.
199—19.13(476) Transportation service.
	19.13(1) Purpose. This subrule requires gas distribution utility companies to transport natural gas owned by an end-user on a nondiscriminatory basis, subject to the capacity limitations of the specific system. System capacity is defined as the maximum flow of gas the relevant portion of the system is capable of handling. Capacity availability shall be determined using the total current firm gas flow, including both system and transportation gas.
	19.13(2) End-user rights. The end-user purchasing transportation services from the utility shall have the following rights and be subject to the following conditions:
	a. 	The end-user shall have the right to receive, pursuant to agreement, 100 percent of the gas delivered by it or on its behalf to the transporting utility (adjusted for a reasonable volume of lost, unaccounted-for, and company-used gas).
	b. 	The volumes which the end-user is entitled to receive shall be subject to curtailment or interruption due to limitations in the system capacity of the transporting utility. Curtailment of the transportation volumes will take place according to the priority class, subdivision, or category which the end-user would have been assigned if it were purchasing gas from the transporting utility.
	c. 	During periods of curtailment or interruption, the party is entitled to a credit equal to the difference between the volumes delivered to the utility and those received by the end-user, adjusted for lost, unaccounted-for, and company-used gas. The credit shall be available at any time, within the conditions of the agreement.
	d. 	The end-user shall be responsible for all costs associated with any additional plant required for providing transportation services to the end-user.
	19.13(3) Transportation service charges. Transportation service shall be offered to at least the following classes:
	a. 	Interruptible service with system supply reserve.
	b. 	Interruptible service without system supply reserve.
	c. 	Firm service with system supply reserve.
	d. 	Firm service without system supply reserve.
	19.13(4) Transportation service charges and rates. All rates and charges for transportation shall be based on the cost of providing the service.
	a. 	“System supply reserve” service shall entitle the end-user to return to the system service to the extent of the capacity purchased. The charge shall be at least equal to the administrative costs of monitoring the service, plus any other costs (including but not limited to gas demand costs which are directly assignable to the end-user).
	b. 	End-users without system supply reserve service may only return to system service by paying an additional charge and are subject to the availability of adequate system capacity. An end-user wishing to receive transportation service without system supply reserve must pay the utility for the discounted value of any contract between the utility and the end-user remaining in effect at the time of beginning transportation service. The discounted values shall include all directly assignable and identifiable costs (including but not limited to gas costs).
	c. 	The utility may require a reconnection charge when an end-user receiving transportation service without system supply reserve service requests to return to the system supply. The end-user shall return to the system and receive service under the appropriate classification as determined by the utility.
	d. 	The end-user electing to receive transportation service shall pay reasonable rates for any use of the facilities, equipment, or services of the transporting utility.
	e. 	Small volume transportation service. Rescinded IAB 4/28/04, effective 6/2/04.
	f. 	Optional plan filing. Rescinded IAB 4/28/04, effective 6/2/04.
	19.13(5) Reporting requirements. A natural gas utility shall file with the board two copies of each transportation contract entered into within 30 days of the date of execution. The utility may delete any information identifying the end-user and replace it with an identification number. The utility shall promptly supply the deleted information if requested by the board staff. The deleted information may be filed with a request for confidentiality, pursuant to 199 Iowa Administrative Code rule 1.9(22).
	19.13(6) Written notice of risks. The utility must notify its large volume users as defined in 19.14(1) contracting for transportation service in writing that unless the customer buys system supply reserve service from the utility, the utility is not obligated to supply gas to the customer. The notice must also advise the large volume user of the nature of any identifiable penalties, any administrative or reconnection costs associated with purchasing available firm or interruptible gas, and how any available gas would be priced by the utility. The notice may be provided through a contract provision or separate written instrument. The large volume user must acknowledge in writing that it has been made aware of the risks and accepts the risks.
199—19.14(476) Certification of competitive natural gas providers and aggregators.
	19.14(1) Definitions. The following words and terms, when used in these rules, shall have the meanings indicated below:
“Competitive natural gas provider” or “CNGP” means a person who takes title to natural gas and sells it for consumption by a retail end user in the state of Iowa, and it also means an aggregator as defined in Iowa Code section 476.86. CNGP includes an affiliate of an Iowa public utility. CNGP excludes the following:
	1.	A public utility which is subject to rate regulation under Iowa Code chapter 476.
	2.	A municipally owned utility which provides natural gas service within its incorporated area or within the municipal natural gas competitive service area, as defined in Iowa Code section 437A.3(21)“a”(1), in which the municipally owned utility is located.
“Competitive natural gas services” means natural gas sold at retail in this state excluding the sale of natural gas by a rate-regulated public utility or a municipally owned utility as provided in the definition of CNGP in 19.14(1).
“Large volume user” means any end user whose usage exceeds 25,000 therms in any month or 100,000 therms in any consecutive 12-month period.
“Small volume user” means any end user whose usage does not exceed 25,000 therms in any month and does not exceed 100,000 therms in any consecutive 12-month period.
“Vehicle fuel provider” or “VFP” means a competitive natural gas provider or aggregator as defined in Iowa Code section 476.86 that owns or operates facilities to sell natural gas as vehicle fuel to a retail end user.
	19.14(2) General requirement to obtain certificate. A CNGP shall not provide competitive natural gas services to an Iowa retail end user without a certificate approved by the board pursuant to Iowa Code section 476.87. An exception to this requirement is a CNGP that has provided service to retail customers before April 25, 2001. A CNGP subject to this exception shall file for a certificate under the provisions of this rule on or before June 1, 2001, to continue providing service pending the approval of the certificate.
	19.14(3) Filing requirements and application process. Applications for a certificate to provide service as a competitive natural gas provider shall be filed electronically through the board’s electronic filing system. Instructions for making an electronic filing can be found on the board’s electronic filing system Web site at http://efs.iowa.gov. Application forms can be found on the board’s Web site at http://iub.iowa.gov or may be requested from the Executive Secretary, Iowa Utilities Board, 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319.
	a. 	An application fee of $125 must be included with the application to cover the administrative costs of accepting and processing a filing. In addition, each applicant may be billed an hourly rate for actual time spent by the board reviewing the application. Iowa Code section 476.87(3) requires the board to allocate the costs and expenses reasonably attributable to certification and dispute resolution to applicants and participants to the proceeding.
	b. 	Applications to provide service as a competitive natural gas provider pursuant to Iowa Code sections 476.86 and 476.87 shall contain information to reasonably demonstrate that the applicant possesses the managerial, technical, and financial capability sufficient to obtain and deliver the services the competitive natural gas provider or aggregator proposes to offer. Application forms to provide competitive natural gas service to large volume, small volume, and vehicle fuel providers can be accessed on the board’s Web site, http://iub.iowa.gov. All applications shall include, at a minimum, the following information:
	(1)	The legal name and all trade names under which the applicant will operate, a description of the business structure of the applicant, evidence of authority to do business in Iowa, and the applicant’s state of incorporation.
	(2)	Names, addresses, and telephone numbers of corporate officers responsible for the applicant’s operations in Iowa, and a telephone number where the applicant can be contacted 24 hours a day.
	(3)	Identification of the states and jurisdictions in which the applicant or an affiliate is providing natural gas service.
	(4)	A commitment to comply with all the applicable conditions of certification contained in subrules 19.14(5) and 19.14(6) and acknowledgment that failure to comply with all the applicable conditions of certification may result in the revocation of the competitive natural gas provider’s certificate.
	c. 	A request for confidential treatment of the information required to obtain a competitive natural gas provider certificate may be filed with the board pursuant to 199—subrule 1.9(6).
	d. 	An applicant shall notify the board during the pendency of the certification request of any material change in the representations and commitments made in the application within 14 days of such change. Any new legal actions or formal complaints are considered material changes in the request. Once certified, CNGPs shall notify the board of any material change in the representations and commitments required for certification within 14 days of such change.
	19.14(4) Deficiencies and board determination. The board shall act on a certification application within 90 days unless it determines an additional 60 days is necessary. Applications will be considered complete and the 90-day period will commence when all required items are submitted. Applicants will be notified of deficiencies and given 30 days to complete applications. Applicants will be notified when their application is complete and the 90-day period commences.
	19.14(5) Conditions of certification. CNGPs shall comply with the conditions set out in this subrule. Failure to comply with the conditions of certification may result in revocation of the certificate.
	a. 	Unauthorized charges. A CNGP shall not charge or attempt to collect any charges from end users for any competitive natural gas services or equipment used in providing competitive natural gas services not contracted for or otherwise agreed to by the end user.
	b. 	Notification of emergencies. Upon receipt of information from an end user of the existence of an emergency situation with respect to delivery service, a CNGP shall immediately contact the appropriate public utility whose facilities may be involved. The CNGP shall also provide the end user with the emergency telephone number of the public utility.
	c. 	Reports to the board. Each CNGP shall file a report with the board on April 1 of each year for the 12-month period ending December 31 of the previous year. The report shall be filed on forms provided by the board, which can be accessed on the board’s Web site, http://iub.iowa.gov. This information may be filed with a request for confidentiality, pursuant to 199—subrule 1.9(6). For each utility distribution system, the report shall include, at a minimum, total monthly and annual sales volumes, total monthly revenues, and total number of customers served each month as of December 31 of the applicable year.
	d. 	Rescinded IAB 4/28/04, effective 6/2/04.
	19.14(6) Additional conditions applicable to CNGPs providing service to small volume end users. All CNGPs when providing service to small volume natural gas end users shall be subject to the following conditions in addition to those listed under subrule 19.14(5):
	a. 	Customer deposits. Compliance with the following provisions shall apply to customers whose usage does not exceed 2500 therms in any month or 10,000 therms in any consecutive 12-month period.
Customer deposits – subrule 19.4(2)
Interest on customer deposits – subrule 19.4(3)
Customer deposit records – subrule 19.4(4)
Customer’s receipt for a deposit – subrule 19.4(5)
Deposit refund – subrule 19.4(6)
Unclaimed deposits – subrule 19.4(7)
	b. 	Bills to end users. A CNGP shall include on bills to end users all the information listed in this paragraph. The bill may be sent to the customer electronically at the customer’s option.
	(1)	The period of time for which the billing is applicable.
	(2)	The amount owed for current service, including an itemization of all charges.
	(3)	Any past-due amount owed.
	(4)	The last date for timely payment.
	(5)	The amount of penalty for any late payment.
	(6)	The location for or method of remitting payment.
	(7)	A toll-free telephone number for the end user to call for information and to make complaints regarding the CNGP.
	(8)	A toll-free telephone number for the end user to contact the CNGP in the event of an emergency.
	(9)	A toll-free telephone number for the end user to notify the public utility of an emergency regarding delivery service.
	(10)	The tariffed transportation charges and supplier refunds, where a combined bill is provided to the customer.
	c. 	Disclosure. Each prospective end user must receive in writing, prior to initiation of service, all terms and conditions of service and all rights and responsibilities of the end user associated with the offered service. The information required by this paragraph may be provided electronically, at the customer’s option.
	d. 	Notice of service termination. Notice must be provided to the end user and the public utility at least 12 calendar days prior to service termination. If the notice of service termination is rescinded, the CNGP must notify the public utility. CNGPs are prohibited from physically disconnecting the end user or threatening physical disconnection for any reason.
	e. 	Transfer of accounts. CNGPs are prohibited from transferring the account of any end user to another supplier except with the consent of the end user. This provision does not preclude a CNGP from transferring all or a portion of its accounts pursuant to a sale or transfer of all or a substantial portion of a CNGP’s business in Iowa, provided that the transfer satisfies all of the following conditions:
	(1)	The transferee will serve the affected end users through a certified CNGP;
	(2)	The transferee will honor the transferor’s contracts with the affected end users;
	(3)	The transferor provides written notice of the transfer to each affected end user prior to the transfer;
	(4)	Any affected end user is given 30 days to change supplier without penalty; and
	(5)	The transferor provides notice to the public utility of the effective date of the transfer.
	f. 	Bond requirement. The board may require the applicant to file a bond or other demonstration of its financial capability to satisfy claims and expenses that can reasonably be anticipated to occur as part of operations under its certificate, including the failure to honor contractual commitments. The adequacy of the bond or demonstration shall be determined by the board and reviewed by the board from time to time. In determining the adequacy of the bond or demonstration, the board shall consider the extent of the services to be offered, the size of the provider, and the size of the load to be served, with the objective of ensuring that the board’s financial requirements do not create unreasonable barriers to market entry.
	g. 	Replacement cost for supply failure. Each individual rate-regulated public utility shall file for the board’s review tariffs establishing replacement cost for supply failure. Replacement cost revenue will be credited to the rate-regulated public utility’s system purchased gas adjustment.
[Editorial change: IAC Supplement 12/29/10; ARC 1623C, IAB 9/17/14, effective 10/22/14]
199—19.15(476) Customer contribution fund.
	19.15(1) Applicability and purpose. This rule applies to each gas public utility, as defined in Iowa Code sections 476.1 and 476.1B. Each utility shall maintain a program plan to assist the utility’s low-income customers with weatherization and to supplement assistance received under the federal low-income home energy assistance program for the payment of winter heating bills.
	19.15(2) Program plan. Each utility shall have on file with the board a detailed description of its program plan. At a minimum, the plan shall include the following information:
	a. 	A list of the members of the governing board, council, or committee established to determine the appropriate distribution of the funds collected. The list shall include the organization each member represents;
	b. 	A sample of the customer notification with a description of the method and frequency of its distribution;
	c. 	A sample of the authorization form provided to customers; and
	d. 	The date of implementation.
Program plans for new customer contribution funds shall be rejected if not in compliance with this rule.
	19.15(3) Notification. Each utility shall notify all customers of the fund at least twice a year. The method of notice which will ensure the most comprehensive notification to the utility’s customers shall be employed. Upon commencement of service and at least once a year, the notice shall be mailed or personally delivered to all customers. The other required notice may be published in a local newspaper(s) of general circulation within the utility’s service territory. A utility serving fewer than 6,000 customers may publish their semiannual notices locally in a free newspaper, utility newsletter or shopper’s guide instead of a newspaper. At a minimum the notice shall include:
	a. 	A description of the availability and the purpose of the fund;
	b. 	A customer authorization form. This form shall include a monthly billing option and any other methods of contribution.
	19.15(4) Methods of contribution. The utility shall provide for contributions as monthly pledges, as well as one-time or periodic contributions. Each utility may allow persons or organizations to contribute matching funds.
	19.15(5) Annual report. On or before September 30 of each year, each utility shall file with the board a report of all the customer contribution fund activity for the previous fiscal year beginning July 1 and ending June 30. The report shall be in a form provided by the board and shall contain an accounting of the total revenues collected and all distributions of the fund. The utility shall report all utility expenses directly related to the customer contribution fund.
	19.15(6) Binding effect. A pledge by a customer or other party shall not be construed to be a binding contract between the utility and the pledgor. The pledge amount shall not be subject to delayed payment charges by the utility.
199—19.16(476) Reserve margin.
	19.16(1) Applicability. All rate-regulated gas utility companies may maintain a reserve of contract services in excess of their maximum daily system demand requirement and recover the cost of the reserve from their customers through the purchased gas adjustment.
	19.16(2) Definitions.
	a. 	Contract services. The amount of firm gas delivery capacity or delivery services contracted for use by a utility to satisfy its maximum daily system demand requirement, including the planned delivery capacity of the utility-owned liquefied natural gas facilities, but excluding the delivery capacity of propane storage facilities, shall be considered as contract services.
	b. 	Maximum daily system demand requirements. The maximum daily gas demand requirement that the utility forecasts to occur on behalf of its system firm sales customers under peak (design day) weather conditions.
	c. 	Design day. The maximum heating season forecast level of all firm sales customers’ gas requirements during a 24-hour period beginning at 9 a.m.	The design day forecast shall be the combined estimated gas requirements of all firm sales customers calculated by totaling the gas requirements of each customer classification or grouping. The estimated gas requirements for each customer classification or grouping shall be determined based upon an evaluation of historic usage levels of customers in each customer classification or grouping, adjusted for reasonably anticipated colder-than-normal weather conditions and any other clearly identifiable factors that may contribute to the demand for gas by firm customers. The design day calculation shall be submitted for approval by the board with the annual PGA filing required by subrule 19.10(2).
	19.16(3) Maximum daily system demand requirements of less than 25,000 Dth per day. A reserve margin of 9 percent or less in excess of the maximum daily system demand requirements will be presumed reasonable.
	19.16(4) Maximum daily system demand requirements of more than 25,000 Dth per day. A reserve margin of 5 percent or less in excess of the maximum daily system demand requirements will be presumed reasonable.
	19.16(5) Rebuttable presumption. All contract services in excess of an amount needed to meet the maximum daily system demand requirements plus the reserve are presumed to be unjust and unreasonable unless a factual showing to the contrary is made during the periodic review of gas proceeding or in a proceeding specifically addressing the issue with an opportunity for an evidentiary hearing. All contract services less than an amount of the maximum daily system demand requirements plus the reserve are presumed to be just and reasonable unless a factual showing to the contrary can be made during the periodic review of gas proceeding or in a proceeding specifically addressing the issue with an opportunity for an evidentiary hearing.
	19.16(6) Allocation of cost of the reserve. Fifty percent of the reserve cost shall be collected as a demand charge allocation to noncontractual firm customers. The remaining 50 percent shall be collected as a throughput charge on customers excluding transportation customers who have elected no system supply reserve.
199—19.17(476) Incident notification and reports.
	19.17(1) Notification. A utility shall notify the board immediately, or as soon as practical, of any incident involving the release of gas, failure of equipment, or interruption of facility operations, which results in any of the following:
	a. 	A death or personal injury necessitating in-patient hospitalization.
	b. 	Estimated property damage of $15,000 or more to the property of the utility and to others, including the cost of gas lost.
	c. 	Emergency shutdown of a liquefied natural gas (LNG) facility.
	d. 	An interruption of service to 50 or more customers.
	e. 	Any other incident considered significant by the utility.
	19.17(2) Information required. The utility shall notify the board by e-mail, as soon as practical, of any reportable incident at dutyofficer@iub.iowa.gov or, when e-mail is not available, by calling the board duty officer at (515)745-2332. The person sending the e-mail or the caller shall leave a call-back number for a person who can provide the following information:
	a. 	The name of the utility, the name and telephone number of the person making the report, and the name and telephone number of a contact person knowledgeable about the incident.
	b. 	The location of the incident.
	c. 	The time of the incident.
	d. 	The number of deaths or personal injuries and the extent of those injuries, if any.
	e. 	An initial estimate of damages.
	f. 	The number of services interrupted.
	g. 	A summary of the significant information available to the utility regarding the probable cause of the incident and extent of damages.
	h. 	Any oral or written report required by the U.S. Department of Transportation, and the name of the person who made the oral report or prepared the written report.
	19.17(3) Written incident reports. Within 30 days of the date of the incident, the utility shall file a written report with the board. The report shall include the information required for telephone notice in subrule 19.17(2), the probable cause as determined by the utility, the number and cause of any deaths or personal injuries requiring in-patient hospitalization, and a detailed description of property damage and the amount of monetary damages. If significant additional information becomes available at a later date, a supplemental report shall be filed. Copies of any written reports concerning an incident or safety-related condition filed with or submitted to the U.S. Department of Transportation or the National Transportation Safety Board shall also be provided to the board.
[Editorial change: IAC Supplement 12/29/10; ARC 1359C, IAB 3/5/14, effective 4/9/14; ARC 1623C, IAB 9/17/14, effective 10/22/14]
199—19.18(476) Capital infrastructure investment automatic adjustment mechanism.
	19.18(1) Eligible capital infrastructure investment. A rate-regulated natural gas utility may file for board approval a capital infrastructure investment automatic adjustment mechanism to allow recovery of certain costs from customers. To be eligible for recovery through the capital infrastructure investment automatic adjustment mechanism, the costs shall either:
	a. 	Meet the following criteria:
	(1)	The costs are beyond the direct control of management;
	(2)	The costs are subject to sudden, important change in level;
	(3)	The costs are an important factor in determining the total cost of capital infrastructure investment to serve customers; and
	(4)	The costs are readily, precisely, and continuously segregated in the accounts of the utility; or
	b. 	Be costs for a capital infrastructure investment which:
	(1)	Does not serve to increase revenues by directly connecting the infrastructure replacement to new customers;
	(2)	Is in service but was not included in the gas utility’s rate base in its most recent general rate case; and
	(3)	Replaces or modifies existing infrastructure required by state or local government action or is required to meet state or federal natural gas pipeline safety regulations.
	c. 	Recovery of additional costs for eligible infrastructure investment through an automatic adjustment mechanism under paragraph 19.18(1)“b” shall not be allowed after four years from December 7, 2011. The costs of eligible capital infrastructure investment included in rates prior to the end of the four-year period may still be recovered until the utility’s next general rate proceeding filing or until the unit of capital has been depreciated to zero. The utility shall file a proposed tariff annually for recovery after the end of the four-year period.
	19.18(2) Determination of recovery factor. The utility may recover a rate of return and depreciation expense associated with eligible capital infrastructure investments described in subrule 19.18(1). The allowed rate of return shall be the average cost of debt from the utility’s last general rate review proceeding. Depreciation expense shall be based upon the depreciation rates allowed by the board in the utility’s last general rate review proceeding.
	19.18(3) Recovery procedures.
	a. 	To recover capital infrastructure investment costs that meet the criteria in paragraph 19.18(1)“a” through an automatic adjustment mechanism, the utility is required to obtain prior board approval of the automatic adjustment mechanism. The utility shall file information in support of the proposed automatic adjustment mechanism that includes:
	(1)	A description of the capital infrastructure investment and the costs that are proposed to be recovered through the automatic adjustment mechanism;
	(2)	An explanation of why the costs of the capital infrastructure investment are beyond the control of the utility’s management;
	(3)	An exhibit that shows the changes in level of the costs of the capital infrastructure investment that are proposed to be recovered, both historical and projected;
	(4)	An explanation of why these particular capital infrastructure investment costs are an important factor in determining the total cost of capital infrastructure investment to serve customers;
	(5)	A description of proposed recovery procedures, if different from the procedures described in paragraphs 19.18(3)“c” and “d”; and
	(6)	The length of time that the automatic adjustment mechanism will be in place.
	b. 	Recovery of capital infrastructure investment costs that meet the requirements in paragraph 19.18(1)“b” may be made by the utility by filing a proposed tariff with a 30-day effective date. Only one tariff filing to recover capital infrastructure investment costs shall be made in a 12-month period. The utility shall file information in support of the proposed automatic adjustment rates that includes:
	(1)	The government entity mandate or action, including compliance with an integrity or safety plan adopted by the gas utility to comply with any such mandate or action, that results in the gas utility project and the purpose of the project, or the safety-related reason requiring the project.
	(2)	The location, description, and costs associated with the project.
	(3)	The cost of debt and applicable depreciation rates from the utility’s last general rate review proceeding.
	(4)	The calculations showing the total costs that are eligible for recovery and the rates that are proposed to be implemented.
	(5)	The utility shall provide supporting documentation, including but not limited to work orders and journal entries, to the board staff or the office of consumer advocate upon request.
	(6)	If the capital infrastructure investment to be included in the automatic adjustment mechanism is based upon an integrity or safety plan adopted in compliance with state or federal natural gas pipeline safety regulations, describe the relationship of the capital infrastructure investment to the integrity or safety plan and the relationship of the integrity or safety plan to a specific state or federal regulation. Provide the date the state or federal regulation was adopted, any relevant compliance dates, and the date the integrity or safety plan was adopted by the utility and how the integrity or safety plan was developed.
	c. 	The utility shall calculate the rates for the recovery of the capital infrastructure investment through the automatic adjustment mechanism over the 12-month period beginning from the effective date of the tariff, unless otherwise ordered by the board. Unless otherwise specified in an approved tariff, the capital infrastructure investment factor shall be calculated by taking the total eligible investment costs for the prior calendar year divided by the actual prior calendar year’s sales volumes with the necessary degree-day adjustments. The utility may also use the degree-day adjustment that the utility utilized in the most recent purchased gas adjustment annual filing or any other appropriate degree-day adjustment. The degree-day adjustment shall not be determinative of any weather normalization adjustment in any future rate case.
	d. 	The utility shall file an annual reconciliation within 60 days of the end of the 12-month period each year after the initial year in which the automatic adjustment mechanism is implemented that reconciles the actual revenue recovered through the automatic adjustment mechanism with the costs of the eligible capital infrastructure investments proposed to be recovered. The reconciliation shall be for the 12-month period beginning with the effective date of the tariff. Any over-recoveries or under-recoveries from the reconciliation shall be recovered over the ten-month period from the effective date of any adjustment required by the reconciliation.
	e. 	Recovery of a return on and return of capital infrastructure investment that is eligible for recovery pursuant to an automatic adjustment mechanism approved under this rule shall continue until the effective date of temporary rates in a subsequent general rate proceeding or, if temporary rates are not implemented, until final rates approved by the board in the utility’s next general rate proceeding. To continue recovery, a utility shall file a proposed tariff each year. Once final rates approved by the board in the next general rate proceeding are effective, the automatic adjustment mechanism shall reset to zero.
[ARC 9831B, IAB 11/2/11, effective 12/7/11]
These rules are intended to implement 42 U.S.C.A. 8372, 10 CFR, 516.30, and Iowa Code sections 476.1, 476.2, 476.6, 476.8, 476.20, 476.54, 476.66, 476.86, 476.87 and 546.7.
[Filed 7/12/66; amended 6/27/75]
[Filed 12/30/75, Notice 10/6/75—published 1/26/76, effective 3/1/76]
[Filed 9/30/77, Notice 6/29/77—published 10/19/77, effective 11/23/77]
[Filed 10/4/78, Notice 8/23/78—published 11/1/78, effective 12/6/78]
[Filed emergency 12/22/78—published 1/10/79, effective 12/22/78]
[Filed 4/10/79, Notice 11/1/78—published 5/2/79, effective 6/6/79]
[Filed 6/8/79, Notice 4/4/79—published 6/27/79, effective 8/1/79]
[Filed 9/24/80, Notice 7/23/80—published 10/15/80, effective 11/19/80]
[Filed 9/26/80, Notice 8/6/80—published 10/15/80, effective 11/19/80]
[Filed 6/5/81, Notice 4/15/81—published 6/24/81, effective 7/29/81]
[Filed 6/19/81, Notice 10/1/80—published 7/8/81, effective 8/12/81]
[Filed 10/20/81, Notice 11/26/80—published 11/11/81, effective 12/16/81]
[Filed emergency 11/17/81 after Notice 9/30/81—published 12/9/81, effective 11/17/81]
[Filed emergency 12/14/81—published 1/6/82, effective 12/14/81]
[Filed 1/28/82, Notice 5/27/81—published 2/17/82, effective 3/24/82]
[Filed 1/28/82, Notice 10/1/80—published 2/17/82, effective 3/31/82]
[Filed 9/24/82, Notice 4/28/82—published 10/13/82, effective 11/17/82]
[Filed 10/21/82, Notice 8/18/82—published 11/10/82, effective 12/15/82]
[Filed 2/25/83, Notice 12/22/82—published 3/16/83, effective 4/20/83]
[Filed emergency 4/22/83—published 5/11/83, effective 4/22/83]
[Filed 4/15/83, Notice 1/19/83—published 5/11/83, effective 6/15/83]
[Filed emergency 6/3/83—published 6/22/83, effective 7/1/83]
[Filed emergency 7/29/83—published 8/17/83, effective 7/29/83]
[Filed 9/9/83, Notice 6/8/83—published 9/28/83, effective 11/2/83]
[Filed 9/9/83, Notice 6/8/83—published 9/28/83, effective 1/1/84]
[Filed 11/4/83, Notice 8/31/83—published 11/23/83, effective 1/1/84]
[Filed emergency 12/16/83 after Notice 9/28/83—published 1/4/84, effective 1/1/84]
[Filed 12/16/83, Notice 9/14/83—published 1/4/84, effective 2/8/84]
[Filed 1/13/84, Notice 11/9/83—published 2/1/84, effective 3/7/84]
[Filed 1/27/84, Notice 11/23/84—published 2/15/84, effective 3/21/84]1
[Filed 4/9/84, Notice 1/18/84—published 4/25/84, effective 5/30/84]
[Filed 4/20/84, Notice 2/15/84—published 5/9/84, effective 6/13/84]2
[Filed 5/4/84, Notice 1/4/84—published 5/23/84, effective 6/27/84]
[Filed emergency 6/1/84—published 6/20/84, effective 6/1/84]
[Filed emergency 6/15/84—published 7/4/84, effective 6/15/84]
[Filed 8/24/84, Notice 1/18/84—published 9/12/84, effective 10/17/84]
[Filed 9/10/84, Notice 7/18/84—published 9/26/84, effective 10/31/84]
[Filed 9/21/84, Notice 5/23/84—published 10/10/84, effective 11/14/84]
[Filed 10/19/84, Notice 8/15/84—published 11/7/84, effective 12/26/84]
[Filed 1/14/85, Notice 11/7/84—published 1/30/85, effective 3/6/85]
[Filed 4/19/85, Notice 2/13/85—published 5/8/85, effective 6/12/85]
[Filed 5/6/85, Notice 1/2/85—published 5/22/85, effective 6/26/85]
[Filed 6/14/85, Notice 4/10/85—published 7/3/85, effective 8/7/85]
[Filed 8/9/85, Notice 6/19/85—published 8/28/85, effective 10/2/85]
[Filed emergency 2/7/86 after Notices 10/9/85, 12/4/85—published 2/26/86, effective 3/31/86]
[Filed 8/8/86, Notice 5/7/86—published 8/27/86, effective 10/1/86]3
[Filed 8/22/86, Notice 6/18/86—published 9/10/86, effective 10/15/86]3
[Filed 8/22/86, Notices 5/21/86, 6/4/86—published 9/10/86, effective 10/15/86]4
[Filed emergency 9/18/86—published 10/8/86, effective 9/18/86]
[Filed 4/3/87, Notices 11/5/86, 12/3/86, 2/25/87—published 4/22/87, effective 5/27/87]
[Filed 4/17/87, Notice 12/3/86—published 5/6/87, effective 6/10/87]
[Filed 11/13/87, Notice 10/7/87—published 12/2/87, effective 1/6/88]
[Filed 9/2/88, Notice 3/9/88—published 9/21/88, effective 10/26/88]
[Filed 9/2/88, Notice 7/27/88—published 9/21/88, effective 10/26/88]
[Filed 12/8/88, Notice 10/19/88—published 12/28/88, effective 2/1/89]
[Filed 1/6/89, Notices 7/1/87, 1/13/88, 7/27/88—published 1/25/89, effective 3/1/89]
[Filed 3/30/89, Notice 10/19/88—published 4/19/89, effective 5/24/89]
[Filed 4/28/89, Notice 9/21/88—published 5/17/89, effective 6/21/89]
[Filed 5/24/89, Notices 5/4/88, 6/29/88, 12/14/88—published 6/14/89, effective 7/19/89]
[Filed 5/24/89, Notice 1/11/89—published 6/14/89, effective 7/19/89]
[Filed 11/27/89, Notice 9/6/89—published 12/13/89, effective 1/17/90]
[Filed 2/1/90, Notice 9/20/89—published 2/21/90, effective 3/28/90]
[Filed 2/28/90, Notice 11/1/89—published 3/21/90, effective 4/25/90]◊
[Filed emergency 4/13/90—published 5/2/90, effective 4/13/90]
[Filed 4/13/90, Notice 10/18/89—published 5/2/90, effective 6/6/90]
[Filed 5/11/90, Notice 10/18/89—published 5/30/90, effective 7/4/90]
[Filed 5/25/90, Notice 2/21/90—published 6/13/90, effective 7/18/90]
[Filed 9/14/90, Notice 11/29/89—published 10/3/90, effective 11/7/90]
[Filed 11/21/90, Notice 5/2/90—published 12/12/90, effective 1/16/91]
[Filed 12/21/90, Notice 6/27/90—published 1/9/91, effective 2/13/91]
[Filed emergency 3/15/91 after Notice 1/23/91—published 4/3/91, effective 3/15/91]
[Filed 3/28/91, Notice 10/3/90—published 4/17/91, effective 5/22/91]
[Filed emergency 7/16/91 after Notice 6/12/91—published 8/7/91, effective 7/16/91]
[Filed emergency 8/16/91 after Notice 5/1/91—published 9/4/91, effective 10/1/91]
[Filed 3/20/92, Notice 8/7/91—published 4/15/92, effective 5/20/92]
[Filed 4/23/92, Notice 10/30/91—published 5/13/92, effective 6/17/92]
[Filed 2/12/93, Notice 9/16/92—published 3/3/93, effective 4/7/93]
[Filed 8/11/93, Notice 5/12/93—published 9/1/93, effective 10/6/93]5
[Filed emergency 4/21/94—published 5/11/94, effective 4/21/94]
[Filed emergency 7/15/94 after Notice 3/16/94—published 8/3/94, effective 8/1/94]
[Filed 4/21/95, Notice 9/28/94—published 5/10/95, effective 6/14/95]
[Filed 12/23/96, Notice 9/11/96—published 1/15/97, effective 2/19/97]
[Filed 9/4/97, Notice 3/12/97—published 9/24/97, effective 10/29/97]
[Filed 10/31/97, Notices 1/29/97, 3/12/97—published 11/19/97, effective 12/24/97]
[Filed 10/31/97, Notice 5/7/97—published 11/19/97, effective 12/24/97]
[Filed 1/23/98, Notice 7/2/97—published 2/11/98, effective 3/18/98]
[Published 6/17/98 to update name and address of board]
[Filed 10/13/99, Notice 5/19/99—published 11/3/99, effective 12/8/99]
[Filed 12/8/99, Notice 4/21/99—published 12/29/99, effective 2/2/00]
[Filed 1/21/00, Notice 11/3/99—published 2/9/00, effective 3/15/00]
[Filed 5/11/00, Notice 10/6/99—published 5/31/00, effective 7/5/00]
[Filed 1/4/01, Notices 3/8/00, 8/23/00—published 1/24/01, effective 2/28/01]
[Filed 3/1/01, Notice 7/12/00—published 3/21/01, effective 4/25/01]
[Filed emergency 3/30/01—published 4/18/01, effective 3/30/01]
[Filed 8/3/01, Notice 3/21/01—published 8/22/01, effective 11/1/01]
[Filed 9/14/01, Notice 4/18/01—published 10/3/01, effective 11/7/01]
[Filed 3/29/02, Notice 2/6/02—published 4/17/02, effective 5/22/02]
[Filed 12/27/02, Notice 7/24/02—published 1/22/03, effective 2/26/03]
[Filed 7/18/03, Notice 2/5/03—published 8/6/03, effective 9/10/03]
[Filed 10/24/03, Notices 2/5/03, 4/2/03—published 11/12/03, effective 12/17/03]
[Filed 11/19/03, Notice 4/2/03—published 12/10/03, effective 1/14/04]
[Filed 4/9/04, Notice 10/15/03—published 4/28/04, effective 6/2/04]
[Filed 7/16/04, Notice 6/9/04—published 8/4/04, effective 9/8/04]
[Filed 7/30/04, Notice 6/9/04—published 8/18/04, effective 9/22/04]
[Filed 9/24/04, Notice 8/18/04—published 10/13/04, effective 11/17/04]
[Filed 10/8/04, Notice 7/7/04—published 10/27/04, effective 12/1/04]
[Filed 1/22/07, Notice 11/8/06—published 2/14/07, effective 3/21/07]
[Filed 4/4/07, Notice 9/13/06—published 4/25/07, effective 5/30/07]
[Filed 5/2/07, Notice 3/28/07—published 5/23/07, effective 6/27/07]
[Filed 12/27/07, Notice 9/26/07—published 1/30/08, effective 3/5/08]
[Filed ARC 7584B (Notice ARC 7420B, IAB 12/17/08), IAB 2/25/09, effective 4/1/09]
[Filed ARC 7962B (Notice ARC 7749B, IAB 5/6/09), IAB 7/15/09, effective 8/19/09]
[Filed ARC 9101B (Notice ARC 8858B, IAB 6/16/10), IAB 9/22/10, effective 10/27/10]
[Editorial change: IAC Supplement 12/29/10]
[Filed ARC 9501B (Notice ARC 9394B, IAB 2/23/11), IAB 5/18/11, effective 6/22/11]
[Filed ARC 9831B (Notice ARC 9529B, IAB 6/1/11), IAB 11/2/11, effective 12/7/11]
[Filed ARC 1359C (Notice ARC 1169C, IAB 11/13/13), IAB 3/5/14, effective 4/9/14]
[Filed ARC 1623C (Notice ARC 1460C, IAB 5/14/14), IAB 9/17/14, effective 10/22/14]
◊	Two or more ARCs
1	Effective date of 19.3(10)“a,” “b,”(1), (2), (2)“1,” (3) and (4) delayed 70 days by administrative rules review committee.
2	Effective date of 19.4(11), third unnumbered paragraph, delayed 70 days by administrative rules review committee.
3	See IAB, Utilities Division
4	Published in Notice portion of IAB 9/10/86; See IAB 10/22/86
5	Effective date of 19.4(3) delayed until the adjournment of the 1994 Session of the General Assembly pursuant to Iowa Code section 17A.8(9) by the Administrative Rules Review Committee at its meeting held September 15, 1993.