House
File
2100
-
Introduced
HOUSE
FILE
2100
BY
QUIRK
A
BILL
FOR
An
Act
modifying
provisions
applicable
to
electric
generating
1
and
transmission
facilities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
476.53,
Code
2009,
is
amended
to
read
as
1
follows:
2
476.53
Electric
generating
and
transmission
facilities.
3
1.
It
is
the
intent
of
the
general
assembly
to
attract
4
the
development
of
electric
power
generating
and
transmission
5
facilities
within
the
state
in
sufficient
quantity
to
ensure
6
reliable
electric
service
to
Iowa
consumers
and
provide
7
economic
benefits
to
the
state.
8
2.
a.
The
general
assembly’s
intent
with
regard
to
the
9
development
of
electric
power
generating
and
transmission
10
facilities,
as
provided
in
subsection
1,
shall
be
implemented
11
in
a
manner
that
is
cost-effective
and
compatible
with
the
12
environmental
policies
of
the
state,
as
expressed
in
Title
XI.
13
b.
The
general
assembly’s
intent
with
regard
to
the
14
reliability
of
electric
service
to
Iowa
consumers,
as
provided
15
in
subsection
1,
shall
be
implemented
by
considering
the
16
diversity
of
the
types
of
fuel
used
to
generate
electricity,
17
the
availability
and
reliability
of
fuel
supplies,
and
the
18
impact
of
the
volatility
of
fuel
costs.
19
3.
For
purposes
of
this
section
,
unless
the
context
20
otherwise
requires,
the
terms
“cogeneration
pilot
project
21
facility”
,
“energy
sales
agreement”
,
“qualified
cogeneration
22
pilot
project
facility”
,
and
“utility-owned
cogeneration
pilot
23
project
facility”
mean
the
same
as
defined
in
section
15.269
.
24
4.
3.
a.
The
board
shall
specify
in
advance,
by
order
25
issued
after
a
contested
case
proceeding,
the
ratemaking
26
principles
that
will
apply
when
the
costs
of
the
an
electric
27
power
generating
facility
,
or
alternate
energy
production
28
facility
,
cogeneration
pilot
project
facility,
or
energy
sales
29
agreement
are
included
in
regulated
electric
rates
whenever
a
30
rate-regulated
public
utility
does
any
of
the
following:
31
(1)
Files
an
application
pursuant
to
section
476A.3
to
32
construct
in
Iowa
a
baseload
electric
power
generating
facility
33
with
a
nameplate
generating
capacity
equal
to
or
greater
than
34
three
hundred
megawatts
or
a
combined-cycle
electric
power
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generating
facility,
or
an
alternate
energy
production
facility
1
as
defined
in
section
476.42.
2
(2)
Leases
or
owns
in
Iowa,
in
whole
or
in
part,
a
new
3
baseload
electric
power
generating
facility
with
a
nameplate
4
generating
capacity
equal
to
or
greater
than
three
hundred
5
megawatts
or
a
combined-cycle
electric
power
generating
6
facility,
or
a
new
alternate
energy
production
facility
as
7
defined
in
section
476.42.
8
(3)
Enters
into
an
agreement
for
the
purchase
of
the
9
electric
power
output
of
a
qualified
cogeneration
pilot
project
10
facility
or
constructs
a
utility-owned
cogeneration
pilot
11
project
facility
pursuant
to
section
15.269
.
12
b.
In
determining
the
applicable
ratemaking
principles,
13
the
board
shall
not
be
limited
to
traditional
ratemaking
14
principles
or
traditional
cost
recovery
mechanisms.
Among
the
15
principles
and
mechanisms
the
board
may
consider,
the
board
16
has
the
authority
to
approve
ratemaking
principles
proposed
by
17
a
rate-regulated
public
utility
that
provide
for
reasonable
18
restrictions
upon
the
ability
of
the
public
utility
to
seek
19
a
general
increase
in
electric
rates
under
section
476.6
for
20
at
least
three
years
after
the
generating
facility
begins
21
providing
service
to
Iowa
customers.
22
c.
In
determining
the
applicable
ratemaking
principles,
the
23
board
shall
make
the
following
findings:
24
(1)
The
rate-regulated
public
utility
has
in
effect
a
25
board-approved
energy
efficiency
plan
as
required
under
section
26
476.6,
subsection
16.
27
(2)
The
rate-regulated
public
utility
has
demonstrated
to
28
the
board
that
the
public
utility
has
considered
other
sources
29
for
long-term
electric
supply
and
that
the
facility
,
or
lease
,
30
or
cogeneration
pilot
project
facility
is
reasonable
when
31
compared
to
other
feasible
alternative
sources
of
supply.
The
32
rate-regulated
public
utility
may
satisfy
the
requirements
of
33
this
subparagraph
through
a
competitive
bidding
process,
under
34
rules
adopted
by
the
board,
that
demonstrate
the
facility
,
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energy
sales
agreement,
or
lease
is
a
reasonable
alternative
to
1
meet
its
electric
supply
needs.
2
d.
The
applicable
ratemaking
principles
shall
be
determined
3
in
a
contested
case
proceeding,
which
proceeding
may
be
4
combined
with
the
proceeding
for
issuance
of
a
certificate
5
conducted
pursuant
to
chapter
476A.
6
e.
The
order
setting
forth
the
applicable
ratemaking
7
principles
shall
be
issued
prior
to
the
commencement
of
8
construction
or
lease
of
the
facility
,
or
execution
of
an
9
energy
sales
agreement
related
to
the
cogeneration
pilot
10
project
facility
.
11
f.
Following
issuance
of
the
order,
the
rate-regulated
12
public
utility
shall
have
the
option
of
proceeding
according
to
13
either
of
the
following:
14
(1)
Withdrawing
its
application
for
a
certificate
pursuant
15
to
chapter
476A.
16
(2)
Proceeding
with
the
construction
or
lease
of
the
17
facility
or
implementation
of
an
energy
sales
agreement
related
18
to
a
cogeneration
pilot
project
facility
.
19
g.
Notwithstanding
any
provision
of
this
chapter
to
the
20
contrary,
the
ratemaking
principles
established
by
the
order
21
issued
pursuant
to
paragraph
“e”
shall
be
binding
with
regard
to
22
the
specific
electric
power
generating
facility
or
cogeneration
23
pilot
project
facility
in
any
subsequent
rate
proceeding.
24
5.
4.
The
utilities
board
and
the
consumer
advocate
25
may
employ
additional
temporary
staff,
or
may
contract
26
for
professional
services
with
persons
who
are
not
state
27
employees,
as
the
board
and
the
consumer
advocate
deem
28
necessary
to
perform
required
functions
as
provided
in
this
29
section,
including
but
not
limited
to
review
of
power
purchase
30
contracts,
review
of
emission
plans
and
budgets,
and
review
31
of
ratemaking
principles
proposed
for
construction
or
lease
32
of
a
new
generating
facility
or
a
cogeneration
pilot
project
33
facility
.
Beginning
July
1,
2002,
there
is
appropriated
out
34
of
any
funds
in
the
state
treasury
not
otherwise
appropriated,
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such
sums
as
may
be
necessary
to
enable
the
board
and
the
1
consumer
advocate
to
hire
additional
staff
and
contract
for
2
services
under
this
section.
The
costs
of
the
additional
staff
3
and
services
shall
be
assessed
to
the
utilities
pursuant
to
the
4
procedure
in
section
476.10
and
section
475A.6.
5
6.
a.
A
qualified
cogeneration
pilot
project
facility
6
may
file
a
petition
with
the
board
for
a
determination
of
the
7
avoided
cost
of
an
electric
utility
as
provided
in
the
federal
8
Public
Utility
Regulatory
Policies
Act
of
1978
and
related
9
federal
regulations,
if
such
a
determination
has
not
been
made
10
within
the
last
twenty-four
months
or
if
there
is
reason
to
11
believe
the
avoided
cost
has
changed.
12
b.
The
board
shall
issue
its
determination
of
the
electric
13
utility’s
avoided
cost
within
one
hundred
twenty
days
after
the
14
petition
is
filed.
15
c.
The
board,
for
good
cause
shown,
may
extend
the
deadline
16
for
issuing
the
decision
for
an
additional
period
not
to
exceed
17
one
hundred
twenty
days.
18
d.
The
board
shall
not
issue
a
decision
under
this
19
subsection
without
providing
notice
and
an
opportunity
for
20
hearing.
21
e.
The
utilities
board
and
the
consumer
advocate
may
employ
22
additional
temporary
staff,
or
may
contract
for
professional
23
services
with
persons
who
are
not
state
employees,
as
the
24
board
and
the
consumer
advocate
deem
necessary
to
perform
25
required
functions
as
provided
in
this
subsection
.
There
26
is
appropriated
out
of
any
funds
in
the
state
treasury
not
27
otherwise
appropriated,
such
sums
as
may
be
necessary
to
enable
28
the
board
and
the
consumer
advocate
to
hire
additional
staff
29
and
contract
for
services
under
this
section
.
The
costs
of
the
30
additional
staff
and
services
shall
be
assessed
to
the
electric
31
utility
pursuant
to
the
procedure
in
sections
476.10
and
32
475A.6
.
33
5.
In
order
to
encourage
electric
utility
investment
in
34
nuclear
power
generating
facilities,
the
board
shall
by
rule
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establish
a
mechanism
for
the
recovery
of
the
costs
of
siting,
1
design,
licensing,
and
construction
incurred
by
electric
2
utilities
subject
to
rate-regulation
applying
for
a
certificate
3
pursuant
to
chapter
476A
for
the
construction
of
a
nuclear
4
power
plant.
The
rules
shall
also
provide
for
the
recovery
5
over
a
reasonable
period
of
time
of
all
prudent
preconstruction
6
and
construction
costs
if
a
utility
elects
not
to
complete
or
7
is
precluded
from
completing
construction
of
a
nuclear
power
8
plant
after
issuance
of
a
certificate
under
chapter
476A.
The
9
rules
shall
include
but
not
be
limited
to
conducting
contested
10
case
proceedings
and
determining
applicable
ratemaking
11
principles.
12
Sec.
2.
Section
476A.3,
Code
2009,
is
amended
to
read
as
13
follows:
14
476A.3
Application
submitted
——
review.
15
1.
An
application
for
a
certificate
or
an
amendment
to
16
a
certificate
shall
be
submitted
to
the
board
on
such
forms
17
as
the
board
may
prescribe.
Copies
of
the
application
shall
18
be
forwarded
to
regulatory
agencies.
Regulatory
agencies
19
receiving
a
copy
of
the
application
shall
conduct
a
preliminary
20
review
of
the
contents
and
shall
evaluate
the
application
for
21
completeness
and
compliance
with
the
regulatory
agency’s
permit
22
and
licensing
requirements
within
a
reasonable
amount
of
time.
23
2.
Applications
submitted
under
this
section,
and
decisions
24
of
the
board
under
section
476A.6
regarding
such
applications,
25
are
governed
by
the
applicable
provisions
of
law
in
effect
on
26
the
date
the
application
was
submitted.
27
EXPLANATION
28
This
bill
modifies
provisions
applicable
to
electric
29
generating
and
transmission
facilities.
30
The
bill
expands
current
legislative
intent
regarding
the
31
development
of
electric
power
generating
and
transmission
32
facilities
to
ensure
reliable
electric
service.
The
bill
33
provides
that
reliability
of
service
should
take
into
34
account
the
diversity
of
the
types
of
fuel
used
to
generate
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electricity,
the
availability
and
reliability
of
fuel
supplies,
1
and
the
impact
of
the
volatility
of
fuel
costs.
2
The
bill
also
provides
that
in
order
to
encourage
electric
3
utility
investment
in
nuclear
power
generating
facilities,
4
the
Iowa
utilities
board
shall
by
rule
establish
a
cost
5
recovery
mechanism
for
the
costs
of
siting,
design,
licensing,
6
and
construction
incurred
by
electric
utilities
subject
7
to
rate-regulation
applying
for
a
certificate
of
public
8
convenience,
use,
and
necessity
for
the
construction
of
a
9
nuclear
power
plant.
The
bill
states
that
the
rules
shall
10
also
provide
for
cost
recovery
of
all
prudent
preconstruction
11
and
construction
costs
if
a
utility
elects
not
to
complete
or
12
is
precluded
from
completing
construction
of
a
nuclear
power
13
plant
after
issuance
of
a
certificate.
The
rules
shall
also
14
include
conducting
contested
case
proceedings
and
determining
15
applicable
ratemaking
principles.
16
The
bill
provides
that
an
application
for
a
certificate,
and
17
a
decision
by
the
board
regarding
such
application,
shall
be
18
governed
by
the
applicable
provisions
of
law
in
effect
on
the
19
date
the
application
was
submitted.
20
Additionally,
the
bill
deletes
outdated
provisions
21
referencing
a
cogeneration
pilot
program
which
was
repealed
22
effective
July
1,
2007.
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