House File 2483
HOUSE FILE
BY COMMITTEE ON COMMERCE,
REGULATION AND LABOR
(SUCCESSOR TO HSB 588)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to temporary rate authority and rules of the Iowa
2 utilities board regarding rate regulation proceedings.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5577HV 80
5 kk/sh/8
PAG LIN
1 1 Section 1. Section 476.6, subsection 10, unnumbered
1 2 paragraph 2, Code Supplement 2003, is amended to read as
1 3 follows:
1 4 A public utility may choose to place in effect temporary
1 5 rates, charges, schedules, or regulations without board review
1 6 ten days after the filing under this section. If the utility
1 7 chooses to place such rates, charges, schedules, or
1 8 regulations in effect without board review, the utility shall
1 9 file with the board a bond or other corporate undertaking
1 10 approved by the board conditioned upon the refund in a manner
1 11 prescribed by the board of amounts collected in excess of the
1 12 amounts which would have been collected under rates, charges,
1 13 schedules, or regulations finally approved by the board. At
1 14 the conclusion of the proceeding if the board determines that
1 15 the temporary rates, charges, schedules, or regulations placed
1 16 in effect under this paragraph were not based on previously
1 17 established regulatory principles, the board shall consider
1 18 ordering refunds based upon the overpayments made by each
1 19 individual customer class, rate zone, or customer group.
1 20 If the board finds that an extension of the ten=month
1 21 period is necessary to permit the accumulation of necessary
1 22 data with respect to the operation of a newly constructed
1 23 electric generating facility that has a capacity of one
1 24 hundred megawatts or more of electricity and that is proposed
1 25 to be included in the rate base for the first time, the board
1 26 may extend the ten=month period up to a maximum extension of
1 27 six months, but only with respect to that portion of the
1 28 suspended rates, charges, schedules, or regulations that are
1 29 necessarily connected with the inclusion of the generating
1 30 facility in the rate base. If a utility is proposing to
1 31 include in its rate base for the first time a newly
1 32 constructed electric generating facility that has a capacity
1 33 of one hundred megawatts or more of electricity, the filing
1 34 date of new or changed rates, charges, schedules, or
1 35 regulations shall, for purposes of computing the ninety=day
2 1 and ten=month time limitations stated above, be the date as
2 2 determined by the board that the new plant went into service,
2 3 but only with respect to that portion of the suspended rates,
2 4 charges, schedules, or regulations that are necessarily
2 5 connected with the inclusion of the generating facility in the
2 6 rate base.
2 7 Sec. 2. Section 476.33, subsection 4, Code Supplement
2 8 2003, is amended to read as follows:
2 9 4. The board shall adopt rules that require the board, in
2 10 rate regulatory proceedings under sections 476.3 and 476.6, to
2 11 consider the use of the most current test period possible in
2 12 determining reasonable and just rates, subject only to the
2 13 availability of existing and verifiable data respecting costs
2 14 and revenues, and in addition to consider verifiable data that
2 15 exists as of the date of commencement of the proceedings
2 16 within nine months after the conclusion of the test year,
2 17 respecting known and measurable changes in costs not
2 18 associated with a different level of revenue, and known and
2 19 measurable revenues not associated with a different level of
2 20 costs, that are to occur at any time within twelve months
2 21 after the date of commencement of the proceedings. Parties
2 22 proposing adjustments that are not verifiable at the
2 23 commencement of the proceedings shall include projected data
2 24 related to the adjustments in their initial substantive filing
2 25 with the board. For purposes of this subsection, a proceeding
2 26 commences under section 476.6 upon the filing date of new or
2 27 changed rates, charges, schedules or regulations. This
2 28 subsection does not limit the authority of the board to
2 29 consider other evidence in proceedings under sections 476.3
2 30 and 476.6.
2 31 EXPLANATION
2 32 This bill relates to temporary rate authority of public
2 33 utilities and to the adoption of rules by the utilities board
2 34 in rate regulation proceedings.
2 35 The bill permits a public utility to place in effect
3 1 temporary rates and charges 10 days after filing an
3 2 application with the utilities board. If the public utility
3 3 places such rates and charges in effect, the utility must file
3 4 a bond with the board. The bill provides that if the utility
3 5 board does not approve the temporary rates and charges, the
3 6 board may order refunds to customers affected by the temporary
3 7 rates and charges.
3 8 The bill provides that when the board adopts rules
3 9 regarding rate regulatory proceedings, the board shall
3 10 consider verifiable data that exists within nine months after
3 11 the end of the test year and that parties proposing
3 12 adjustments not verifiable at the start of proceedings must
3 13 include projected data related to the adjustments in their
3 14 initial filing with the board.
3 15 LSB 5577HV 80
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