House Amendment 8274
PAG LIN
1 1 Amend House File 2399 as follows:
1 2 #1. Page 1, before line 1 by inserting:
1 3 <Sec. ___. Section 476.6, Code Supplement 2009, is
1 4 amended by adding the following new subsection:
1 5 NEW SUBSECTION. 22. a. It is the intent of the
1 6 general assembly to require certain rate=regulated
1 7 public utilities to undertake analyses of and
1 8 preparations for the possible construction of nuclear
1 9 generating facilities in this state that would be
1 10 beneficial in a carbon=constrained environment.
1 11 b. A rate=regulated electric utility that was
1 12 subject to a revenue sharing settlement agreement with
1 13 regard to its electric base rates as of January 1,
1 14 2010, shall recover, through a rider and pursuant to a
1 15 tariff filing made on or after the effective date of
1 16 this Act and through December 31, 2013, the reasonable
1 17 and prudent costs of its analyses of and preparations
1 18 for the possible construction of facilities of the type
1 19 referenced in paragraph "a". Cost recovery shall be
1 20 accomplished by instituting a revenue increase applied
1 21 in the same percentage amount to each customer class
1 22 and not designed to recover, on an annual basis, more
1 23 than five=tenths percent of the electric utility's
1 24 calendar year 2009 revenues attributable to billed base
1 25 rates in this state. At the conclusion of the cost
1 26 recovery period, the board shall conduct a contested
1 27 case proceeding pursuant to chapter 17A to evaluate the
1 28 reasonableness and prudence of the cost recovery. The
1 29 utility shall file such information with the board as
1 30 the board deems appropriate, including the filing of an
1 31 annual report identifying and explaining expenditures
1 32 identified in the rider as items for cost recovery,
1 33 and any other information required by the board. If
1 34 the board determines that the utility has imprudently
1 35 incurred costs, or has incurred costs that are less
1 36 than the amount recovered, the board shall order
1 37 the utility to modify the rider to adjust the amount
1 38 recoverable.
1 39 c. Costs that may be recovered through the rider
1 40 described in paragraph "b" shall be consistent with
1 41 the United States nuclear regulatory guide, section
1 42 4.7, general site suitability criteria for nuclear
1 43 power stations, revision two, April 1998, including
1 44 costs related to the study and use of sites for nuclear
1 45 generation.>
1 46 #2. Page 1, line 8, after <state.> by inserting
1 47 <It is also the intent of the general assembly
1 48 to encourage rate=regulated public utilities to
1 49 consider altering existing electric generating
1 50 facilities, where reasonable, to manage carbon emission
2 1 intensity in order to facilitate the transition to a
2 2 carbon=constrained environment.>
2 3 #3. By striking page 1, line 25, through page 2,
2 4 line 2, and inserting:
2 5 <4. 3. a. The board shall specify in advance, by
2 6 order issued after a contested case proceeding, the
2 7 ratemaking principles that will apply when the costs
2 8 of the electric power generating facility, the costs
2 9 of significant alteration of the generating facility
2 10 as defined in section 476A.2, subsection 2, and any
2 11 related emissions control or storage facilities, or
2 12 the costs of the alternate energy production facility,
2 13 cogeneration pilot project facility, or energy sales
2 14 agreement are included in regulated electric rates
2 15 whenever a rate=regulated public utility does any of
2 16 the following:
2 17 (1) Files an application pursuant to section 476A.3
2 18 to construct in Iowa a baseload electric generating
2 19 facility, or to significantly alter an existing
2 20 generating facility, with a nameplate generating
2 21 capacity equal to or greater than three hundred
2 22 megawatts or a combined=cycle electric power generating
2 23 facility, or an alternative energy production facility
2 24 as defined in section 476.42. For purposes of this
2 25 subparagraph, a significant alteration of an existing
2 26 generating facility must, in order to qualify for
2 27 establishment of ratemaking principles, fall into one
2 28 of the following categories:
2 29 (a) Conversion of a coal fueled facility into a gas
2 30 fueled facility.
2 31 (b) Addition of carbon capture and storage
2 32 facilities at a coal fueled facility.
2 33 (c) Addition of gas fueled capability to a coal
2 34 fueled facility, in order to convert the facility
2 35 to one that will rely primarily on gas for future
2 36 generation.
2 37 (d) Addition of a biomass fueled capability to a
2 38 coal fueled facility.
2 39 With respect to a significant alteration of an
2 40 existing generating facility, an original facility
2 41 shall not be required to be either a baseload or
2 42 a combined=cycle facility. Only the incremental
2 43 investment undertaken by a utility under subparagraph
2 44 divisions (a), (b), (c), or (d) shall be eligible to
2 45 apply the ratemaking principles established by the
2 46 order issued pursuant to paragraph "e". Facilities
2 47 for which advanced ratemaking principles are obtained
2 48 pursuant to this section shall not be subject to a
2 49 subsequent board review pursuant to section 476.6,
2 50 subsection 21 to the extent that the investment has
3 1 been considered by the board under this section. To
3 2 the extent an eligible utility has been authorized to
3 3 make capital investments subject to section 476.6,
3 4 subsection 21, such investments shall not be eligible
3 5 for ratemaking principles pursuant to this section.>
3 6 #4. Page 4, after line 33 by inserting:
3 7 <Sec. ___. EFFECTIVE UPON ENACTMENT. This Act,
3 8 being deemed of immediate importance, takes effect upon
3 9 enactment.>
3 10 #5. Title page, by striking lines 1 through 2 and
3 11 inserting <An Act requiring certain rate=regulated
3 12 public utilities to undertake analyses of and
3 13 preparation for the possible construction of low carbon
3 14 emitting nuclear generating facilities in this state,
3 15 and including effective date provisions.>
REICHERT of Muscatine
D. OLSON of Boone
QUIRK of Chickasaw
SODERBERG of Plymouth
WAGNER of Linn
HF2399.1418 (4) 83
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