House File 558 - Introduced



                                       HOUSE FILE       
                                       BY  MURPHY


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to municipal corporations providing electric
  2    service in the exclusive service area of another electric
  3    utility.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2117HH 81
  6 kk/pj/5

PAG LIN



  1  1    Section 1.  Section 476.23, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  2A.  Notwithstanding subsections 1 and 2,
  1  4 a municipal corporation providing electric service may extend
  1  5 electric service and transmission lines into an area annexed
  1  6 by the municipal corporation upon payment to the electric
  1  7 utility presently serving the customers a reasonable price for
  1  8 the facilities serving the customers.  If the municipal
  1  9 corporation and the electric utility are unable to agree upon
  1 10 a reasonable price for the facilities, the parties may pursue
  1 11 mediation pursuant to chapter 679C or request a price
  1 12 determination from the board pursuant to subsection 1.
  1 13                           EXPLANATION
  1 14    This bill relates to municipal corporations providing
  1 15 electric service outside of the municipal corporation's
  1 16 exclusive service area.  Under current law, a municipal
  1 17 corporation may not furnish electric service to a customer
  1 18 located in another utility's exclusive service area without
  1 19 the express written agreement of the electric utility
  1 20 currently providing service or without approval of the
  1 21 utilities board of the department of commerce.  The bill
  1 22 permits a municipal corporation to provide electric service
  1 23 outside of its own exclusive service area and in another
  1 24 electric utility's exclusive area if the municipal corporation
  1 25 has annexed the area and has paid the electric utility
  1 26 currently providing service a reasonable price for the
  1 27 facilities.  The municipal corporation and the electric
  1 28 utility currently providing service may agree upon the
  1 29 reasonable price for the facilities serving the customers or
  1 30 may pursue mediation proceedings.  If the municipal
  1 31 corporation and the electric utility are unable to agree upon
  1 32 a reasonable price, a price determination may be requested
  1 33 from the utilities board pursuant to existing procedures for a
  1 34 price determination when a municipal corporation is first
  1 35 authorized to furnish electric service.
  2  1 LSB 2117HH 81
  2  2 kk:nh/pj/5