Senate Amendment 5191
PAG LIN
1 1 Amend Senate File 2314 as follows:
1 2 #1. By striking everything after the enacting clause
1 3 and inserting:
1 4 <Section 1. Section 476.6, Code Supplement 2009, is
1 5 amended by adding the following new subsection:
1 6 NEW SUBSECTION. 22. a. It is the intent of the
1 7 general assembly to require certain rate=regulated
1 8 public utilities to undertake analyses of and
1 9 preparations for the possible construction of nuclear
1 10 generating facilities in this state that would be
1 11 beneficial in a carbon=constrained environment.
1 12 b. A rate=regulated electric utility that was
1 13 subject to a revenue sharing settlement agreement with
1 14 regard to its electric base rates as of January 1,
1 15 2010, shall recover, through a rider and pursuant to
1 16 a tariff filing made on or before December 31, 2013,
1 17 the reasonable and prudent costs of its analyses of
1 18 and preparations for the possible construction of
1 19 facilities of the type referenced in paragraph "a".
1 20 Cost recovery shall be accomplished by instituting a
1 21 revenue increase applied in the same percentage amount
1 22 to each customer class and not designed to recover,
1 23 on an annual basis, more than five=tenths percent of
1 24 the electric utility's calendar year 2009 revenues
1 25 attributable to billed base rates in this state. At
1 26 the conclusion of the cost recovery period, which
1 27 shall extend no more than thirty=six months in total,
1 28 the board shall conduct a contested case proceeding
1 29 pursuant to chapter 17A to evaluate the reasonableness
1 30 and prudence of the cost recovery. The utility shall
1 31 file such information with the board as the board deems
1 32 appropriate, including the filing of an annual report
1 33 identifying and explaining expenditures identified in
1 34 the rider as items for cost recovery, and any other
1 35 information required by the board. If the board
1 36 determines that the utility has imprudently incurred
1 37 costs, or has incurred costs that are less than the
1 38 amount recovered, the board shall order the utility to
1 39 modify the rider to adjust the amount recoverable.
1 40 c. Costs that may be recovered through the rider
1 41 described in paragraph "b" shall be consistent with
1 42 the United States nuclear regulatory guide, section
1 43 4.7, general site suitability criteria for nuclear
1 44 power stations, revision two, April 1998, including
1 45 costs related to the study and use of sites for nuclear
1 46 generation.
1 47 Sec. 2. Section 476.53, Code 2009, is amended to
1 48 read as follows:
1 49 476.53 Electric generating and transmission
1 50 facilities.
2 1 1. It is the intent of the general assembly to
2 2 attract the development of electric power generating
2 3 and transmission facilities within the state in
2 4 sufficient quantity to ensure reliable electric service
2 5 to Iowa consumers and provide economic benefits to
2 6 the state. It is also the intent of the general
2 7 assembly to encourage rate=regulated public utilities
2 8 to consider altering existing electric generating
2 9 facilities, where reasonable, to manage carbon emission
2 10 intensity in order to facilitate the transition to a
2 11 carbon=constrained environment.
2 12 2. a. The general assembly's intent with regard
2 13 to the development of electric power generating and
2 14 transmission facilities, or the significant alteration
2 15 of an existing generating facility as provided in
2 16 subsection 1, shall be implemented in a manner that is
2 17 cost=effective and compatible with the environmental
2 18 policies of the state, as expressed in Title XI.
2 19 b. The general assembly's intent with regard to
2 20 the reliability of electric service to Iowa consumers,
2 21 as provided in subsection 1, shall be implemented by
2 22 considering the diversity of the types of fuel used to
2 23 generate electricity, the availability and reliability
2 24 of fuel supplies, and the impact of the volatility of
2 25 fuel costs.
2 26 3. For purposes of this section, unless the context
2 27 otherwise requires, the terms "cogeneration pilot
2 28 project facility", "energy sales agreement", "qualified
2 29 cogeneration pilot project facility", and "utility=owned
2 30 cogeneration pilot project facility" mean the same as
2 31 defined in section 15.269.
2 32 4. 3. a. The board shall specify in advance, by
2 33 order issued after a contested case proceeding, the
2 34 ratemaking principles that will apply when the costs of
2 35 the electric power generating facility, or alternate
2 36 energy production facility,cogeneration pilot project
2 37 facility, or energy sales agreement are included in
2 38 regulated electric rates whenever a rate=regulated
2 39 public utility does any of the following:
2 40 (1) Files an application pursuant to section 476A.3
2 41 to construct in Iowa a baseload electric generating
2 42 facility with a nameplate generating capacity equal
2 43 to or greater than three hundred megawatts or a
2 44 combined=cycle electric power generating facility, or
2 45 an alternative energy production facility as defined
2 46 in section 476.42, or to significantly alter an
2 47 existing generating facility. For purposes of this
2 48 subparagraph, a significant alteration of an existing
2 49 generating facility must, in order to qualify for
2 50 establishment of ratemaking principles, fall into one
3 1 of the following categories:
3 2 (a) Conversion of a coal fueled facility into a gas
3 3 fueled facility.
3 4 (b) Addition of carbon capture and storage
3 5 facilities at a coal fueled facility.
3 6 (c) Addition of gas fueled capability to a coal
3 7 fueled facility, in order to convert the facility
3 8 to one that will rely primarily on gas for future
3 9 generation.
3 10 (d) Addition of a biomass fueled capability to a
3 11 coal fueled facility.
3 12 With respect to a significant alteration of an
3 13 existing generating facility, an original facility
3 14 shall not be required to be either a baseload or
3 15 a combined=cycle facility. Only the incremental
3 16 investment undertaken by a utility under subparagraph
3 17 divisions (a), (b), (c), or (d) shall be eligible to
3 18 apply the ratemaking principles established by the
3 19 order issued pursuant to paragraph "e". Facilities
3 20 for which advanced ratemaking principles are obtained
3 21 pursuant to this section shall not be subject to a
3 22 subsequent board review pursuant to section 476.6,
3 23 subsection 21 to the extent that the investment has
3 24 been considered by the board under this section. To
3 25 the extent an eligible utility has been authorized to
3 26 make capital investments subject to section 476.6,
3 27 subsection 21, such investments shall not be eligible
3 28 for ratemaking principles pursuant to this section.
3 29 (2) Leases or owns in Iowa, in whole or in part, a
3 30 new baseload electric power generating facility with a
3 31 nameplate generating capacity equal to or greater than
3 32 three hundred megawatts or a combined=cycle electric
3 33 power generating facility, or a new alternate energy
3 34 production facility as defined in section 476.42.
3 35 (3) Enters into an agreement for the purchase of
3 36 the electric power output of a qualified cogeneration
3 37 pilot project facility or constructs a utility=owned
3 38 cogeneration pilot project facility pursuant to section
3 39 15.269.
3 40 b. In determining the applicable ratemaking
3 41 principles, the board shall not be limited to
3 42 traditional ratemaking principles or traditional
3 43 cost recovery mechanisms. Among the principles and
3 44 mechanisms the board may consider, the board has the
3 45 authority to approve ratemaking principles proposed
3 46 by a rate=regulated public utility that provide for
3 47 reasonable restrictions upon the ability of the public
3 48 utility to seek a general increase in electric rates
3 49 under section 476.6 for at least three years after the
3 50 generating facility begins providing service to Iowa
4 1 customers.
4 2 c. In determining the applicable ratemaking
4 3 principles, the board shall make the following
4 4 findings:
4 5 (1) The rate=regulated public utility has in effect
4 6 a board=approved energy efficiency plan as required
4 7 under section 476.6, subsection 16.
4 8 (2) The rate=regulated public utility has
4 9 demonstrated to the board that the public utility
4 10 has considered other sources for long=term electric
4 11 supply and that the facility, or lease, or cogeneration
4 12 pilot project facility is reasonable when compared
4 13 to other feasible alternative sources of supply.
4 14 The rate=regulated public utility may satisfy the
4 15 requirements of this subparagraph through a competitive
4 16 bidding process, under rules adopted by the board, that
4 17 demonstrate the facility, energy sales agreement, or
4 18 lease is a reasonable alternative to meet its electric
4 19 supply needs.
4 20 d. The applicable ratemaking principles shall
4 21 be determined in a contested case proceeding, which
4 22 proceeding may be combined with the proceeding for
4 23 issuance of a certificate conducted pursuant to chapter
4 24 476A.
4 25 e. The order setting forth the applicable
4 26 ratemaking principles shall be issued prior to the
4 27 commencement of construction or lease of the facility,
4 28 or execution of an energy sales agreement related to
4 29 the cogeneration pilot project facility.
4 30 f. Following issuance of the order, the
4 31 rate=regulated public utility shall have the option of
4 32 proceeding according to either of the following:
4 33 (1) Withdrawing its application for a certificate
4 34 pursuant to chapter 476A.
4 35 (2) Proceeding with the construction or lease
4 36 of the facility or implementation of an energy sales
4 37 agreement related to a cogeneration pilot project
4 38 facility.
4 39 g. Notwithstanding any provision of this chapter
4 40 to the contrary, the ratemaking principles established
4 41 by the order issued pursuant to paragraph "e" shall
4 42 be binding with regard to the specific electric power
4 43 generating facility or cogeneration pilot project
4 44 facility in any subsequent rate proceeding.
4 45 5. 4. The utilities board and the consumer
4 46 advocate may employ additional temporary staff, or may
4 47 contract for professional services with persons who
4 48 are not state employees, as the board and the consumer
4 49 advocate deem necessary to perform required functions
4 50 as provided in this section, including but not limited
5 1 to review of power purchase contracts, review of
5 2 emission plans and budgets, and review of ratemaking
5 3 principles proposed for construction or lease of
5 4 a new generating facility or a cogeneration pilot
5 5 project facility. Beginning July 1, 2002, there is
5 6 appropriated out of any funds in the state treasury not
5 7 otherwise appropriated, such sums as may be necessary
5 8 to enable the board and the consumer advocate to
5 9 hire additional staff and contract for services under
5 10 this section. The costs of the additional staff and
5 11 services shall be assessed to the utilities pursuant to
5 12 the procedure in section 476.10 and section 475A.6.
5 13 6. a. A qualified cogeneration pilot project
5 14 facility may file a petition with the board for a
5 15 determination of the avoided cost of an electric
5 16 utility as provided in the federal Public Utility
5 17 Regulatory Policies Act of 1978 and related federal
5 18 regulations, if such a determination has not been made
5 19 within the last twenty=four months or if there is
5 20 reason to believe the avoided cost has changed.
5 21 b. The board shall issue its determination of the
5 22 electric utility's avoided cost within one hundred
5 23 twenty days after the petition is filed.
5 24 c. The board, for good cause shown, may extend the
5 25 deadline for issuing the decision for an additional
5 26 period not to exceed one hundred twenty days.
5 27 d. The board shall not issue a decision under this
5 28 subsection without providing notice and an opportunity
5 29 for hearing.
5 30 e. The utilities board and the consumer advocate
5 31 may employ additional temporary staff, or may contract
5 32 for professional services with persons who are not
5 33 state employees, as the board and the consumer advocate
5 34 deem necessary to perform required functions as
5 35 provided in this subsection. There is appropriated
5 36 out of any funds in the state treasury not otherwise
5 37 appropriated, such sums as may be necessary to enable
5 38 the board and the consumer advocate to hire additional
5 39 staff and contract for services under this section.
5 40 The costs of the additional staff and services shall
5 41 be assessed to the electric utility pursuant to the
5 42 procedure in sections 476.10 and 475A.6.
5 43 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being
5 44 deemed of immediate importance, takes effect upon
5 45 enactment.>
5 46 #2. Title page, by striking lines 1 and 2 and
5 47 inserting <An Act requiring certain rate=regulated
5 48 public utilities to undertake analyses of and
5 49 preparation for the possible construction of low carbon
5 50 emitting nuclear generating facilities in this state,
6 1 permitting all rate=regulated public utilities to make
6 2 significant alterations to an existing generating
6 3 facility, and including effective date provisions.>
TOM HANCOCK
SF2314.1831 (4) 83
rn/sc
-1-