Senate Study Bill 3018 SENATE FILE BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BEHN) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to rules of the Iowa utilities board regarding 2 rate regulation proceedings. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5577SC 80 5 kk/sh/8 PAG LIN 1 1 Section 1. Section 476.33, subsection 4, Code Supplement 1 2 2003, is amended to read as follows: 1 3 4. The board shall adopt rules that require the board, in 1 4 rate regulatory proceedings under sections 476.3 and 476.6, to 1 5 considertheuse of the most current test periodpossiblein 1 6 determining reasonable and just rates, subject only to the 1 7 availability of existing and verifiable data respecting 1 8 changes in costs and revenues,and in addition to consider 1 9 verifiable data that exists as of the date of commencement of 1 10 the proceedings respectingincluding but not limited to the 1 11 costs of capital, that are known and measurablechanges in 1 12 costs not associated with a different level of revenue, and 1 13 known and measurable revenues not associated with a different 1 14 level of costs, that are to occuror that will become known 1 15 and measurable at any time within twelve months after the date 1 16 of commencement of the proceedings. In determining rates, the 1 17 board shall consider data respecting changes in costs not 1 18 associated with a different level of revenues and changes in 1 19 revenues not associated with a different level of costs. For 1 20 purposes of this subsection, a proceeding commences under 1 21 section 476.6 upon the filing date of new or changed rates, 1 22 charges, schedules, or regulations. This subsection does not 1 23 limit the authority of the board to consider other evidence in 1 24 proceedings under sections 476.3 and 476.6. 1 25 EXPLANATION 1 26 This bill relates to adoption of rules by the utilities 1 27 board in rate regulation proceedings. 1 28 Code section 476.33 is modified to provide for 1 29 consideration, in determining just and reasonable rates, of 1 30 data such as the costs of capital that are or will become 1 31 known and measurable within 12 months of the commencement of 1 32 the proceeding. The board is directed to consider additional 1 33 data regarding changes in costs not associated with a 1 34 different level of revenues, and changes in revenues not 1 35 associated with a different level of costs. 2 1 LSB 5577SC 80 2 2 kk/sh/8