HOUSE FILE 2233

BY  WOLFE

A BILL FOR

An Act relating to permissible charges imposed by a public utility furnishing water to a city in connection with the installation and maintenance of fire sprinkler systems.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476.6, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  15A.  Water costs for fire protection —— limitation.
   a.  Notwithstanding subsection 15, paragraph “a”, a public utility furnishing water to a city may not include in the rates or charges assessed to consumers receiving fire protection service by the city, or otherwise impose, any fee or recurring maintenance charge for the installation and maintenance of a fire sprinkler system that exceeds the actual costs associated with the water line to the system.
   b.  For the purposes of this subsection, “actual costs” include direct labor, material, and other charges associated with an individual sprinkler line documented by either an invoice or work order that specifically assigns to the individual line the costs associated with that line.
EXPLANATION
   This bill relates to permissible charges imposed by a public utility furnishing water to a city in connection with the installation and maintenance of fire sprinkler systems.
   Currently, Code section 476.6, subsection 15, permits a city furnished water by a public utility subject to rate regulation to apply to the Iowa utilities board for inclusion of all or a part of the costs of fire hydrants or other improvements, maintenance, and operations for the purpose of providing adequate water production, storage, and distribution for public fire protection in the rates or charges assessed to consumers covered by the applicant’s fire protection service.
   This bill provides that, notwithstanding this provision, a public utility furnishing water to a city may not include in the rates or charges assessed to consumers receiving fire protection service by the city, or otherwise impose, any fee or recurring maintenance charge for the installation and maintenance of a fire sprinkler system that exceeds the actual costs associated with the water line to the system. The bill defines “actual costs” to include direct labor, material, and other charges associated with an individual sprinkler line documented by either an invoice or work order that specifically assigns the costs incurred to the individual line.