Senate File 238 - Introduced
SENATE FILE
BY KIBBIE
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the sale of energy by specified alternate
2 energy production facilities and the rates applicable to such
3 sales.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1446XS 83
6 rn/nh/24
PAG LIN
1 1 Section 1. Section 476.42, Code 2009, is amended by adding
1 2 the following new subsections:
1 3 NEW SUBSECTION. 1A. "Average retail utility rate" means
1 4 the average of the retail rates, exclusive of special rates
1 5 based on income, age, or energy efficiency measures,
1 6 calculated by the board according to the applicable rate
1 7 schedule of the utility for sales to a particular class of
1 8 customer.
1 9 NEW SUBSECTION. 2A. "Net metering" means service to a
1 10 customer of an electric utility under which electric energy
1 11 produced by that customer from an alternate energy production
1 12 facility and delivered to a utility may be used to offset
1 13 electric energy provided by the utility to the customer during
1 14 the applicable or a future billing period.
1 15 Sec. 2. Section 476.43, subsection 5, Code 2009, is
1 16 amended to read as follows:
1 17 5. In lieu of the other procedures provided by this
1 18 section, and subject to subsection 5A, an electric utility and
1 19 an owner or operator of an alternate energy production
1 20 facility or small hydro facility may enter into a long=term
1 21 contract in accordance with subsection 1 and may agree to
1 22 rates for purchase and sale transactions. A contract entered
1 23 into under this subsection must be filed with the board in the
1 24 manner provided for tariffs under section 476.4.
1 25 Sec. 3. Section 476.43, Code 2009, is amended by adding
1 26 the following new subsection:
1 27 NEW SUBSECTION. 5A. a. Notwithstanding subsections 2
1 28 through 4, the sale of energy by, and the rates applicable to,
1 29 an alternate energy production facility consisting of one or
1 30 more wind turbines with a combined nameplate generating
1 31 capacity of one hundred eight kilowatts or less shall be
1 32 subject to the following:
1 33 (1) The facility may sell no more than twenty percent of
1 34 the excess energy produced by the facility above the level
1 35 consumed by the facility in a calendar year to an electric
2 1 utility. The rate applicable to such sales shall be the
2 2 average retail rate.
2 3 (2) Amounts generated by the facility exceeding twenty
2 4 percent of the excess energy produced by the facility above
2 5 the level consumed by the facility shall be credited by the
2 6 utility to the facility pursuant to net metering.
2 7 b. Rates applicable to alternate energy production
2 8 facilities consisting of one or more wind turbines with a
2 9 combined nameplate generating capacity exceeding one hundred
2 10 eight kilowatts shall be determined pursuant to subsections 2
2 11 through 4.
2 12 EXPLANATION
2 13 This bill relates to the sale of energy by specified
2 14 alternate energy production facilities and the rates
2 15 applicable to such sales.
2 16 The bill provides an exception to provisions in Code
2 17 section 476.43 setting forth rate=making principles applicable
2 18 to alternate energy production facilities for facilities
2 19 consisting of one or more wind turbines with a combined
2 20 nameplate generating capacity of 108 kilowatts or less. The
2 21 bill provides that such facilities shall sell no more than 20
2 22 percent of the excess energy produced by the facility above
2 23 the level consumed by the facility in a calendar year to an
2 24 electric utility, and that the rates applicable to such sales
2 25 shall be the average retail rate. The bill defines "average
2 26 retail rate" as the average of the retail rates, exclusive of
2 27 special rates based on income, age, or energy efficiency
2 28 measures, calculated by the Iowa utilities board according to
2 29 the applicable rate schedule of the utility for sales to a
2 30 particular class of customer.
2 31 The bill provides that amounts generated by the facility
2 32 exceeding 20 percent of the excess energy produced by the
2 33 facility above the level consumed by the facility shall be
2 34 credited by the utility to the facility pursuant to net
2 35 metering. The bill defines "net metering" as service to a
3 1 customer of an electric utility under which electric energy
3 2 produced by that customer from an alternate energy production
3 3 facility and delivered to a utility may be used to offset
3 4 electric energy provided by the utility to the customer during
3 5 the applicable or a future billing period.
3 6 The bill states that rates applicable to alternate energy
3 7 production facilities consisting of one or more wind turbines
3 8 with a combined nameplate generating capacity exceeding 108
3 9 kilowatts shall be determined pursuant to the rate=making
3 10 principles otherwise applicable to alternate energy production
3 11 facilities under current law.
3 12 LSB 1446XS 83
3 13 rn/nh/24.1