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 theninety=day 2 1 and ten=monthtime 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 existsas of the date of commencement of the proceedings2 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 3 16 kk/sh/8.1