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