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
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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.
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