House Study Bill 680 



                                  HOUSE FILE       
                                  BY  (PROPOSED COMMITTEE ON HUMAN
                                       RESOURCES BILL BY CHAIRPERSON
                                       SMITH)


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

                                      A BILL FOR

  1 An Act relating to the establishment or approval of discounted
  2    gas and electric utility rates applicable to low=income
  3    residents.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5867HC 82
  6 rn/nh/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  476.8A  LOW=INCOME RESIDENTIAL
  1  2 CUSTOMERS == DISCOUNT RATE.
  1  3    The board may establish or approve low=income residential
  1  4 discount rates for gas and electric utility service furnished
  1  5 to qualified low=income residents as determined pursuant to
  1  6 section 476.20, subsection 2, to ensure the affordable,
  1  7 reliable, and continuous furnishing of such services, lower
  1  8 the percentage of income devoted to utility bills by
  1  9 low=income households, increase customer payment rates, and
  1 10 reduce costs associated with customer account collection
  1 11 activities.  The discount rates, if established, shall be
  1 12 applicable to gas and electric service furnished by a public
  1 13 utility subject to rate regulation and, at a utility's
  1 14 discretion, to a public utility exempt from the board's rate
  1 15 regulation authority.  The disconnection restrictions
  1 16 applicable to qualifying low=income residents pursuant to
  1 17 section 476.20 shall continue to apply notwithstanding
  1 18 imposition of discount rates established pursuant to this
  1 19 section.
  1 20                           EXPLANATION
  1 21    This bill authorizes the Iowa utilities board to establish
  1 22 or approve discount rates for gas and electric utility service
  1 23 applicable to low=income residents who qualify for
  1 24 disconnection restriction provisions specified in Code section
  1 25 476.20.  The bill specifies that discount rates would be
  1 26 established to ensure the affordable, reliable, and continuous
  1 27 furnishing of utility services, lower the percentage of income
  1 28 devoted to utility bills by low=income households, increase
  1 29 customer payment rates, and reduce costs associated with
  1 30 customer account collection activities by utilities.  The
  1 31 rates, if established, would apply to gas and electric
  1 32 utilities subject to rate regulation under Code chapter 476,
  1 33 and optionally to utilities not subject to the board's rate
  1 34 regulation authority.  The bill provides that disconnection
  1 35 restrictions shall continue to apply to qualifying low=income
  2  1 residents notwithstanding application of a discount rate.
  2  2 LSB 5867HC 82
  2  3 rn/nh/5