HOUSE FILE 2249

BY  ISENHART

A BILL FOR

An Act directing the Iowa utilities board to require that energy efficiency plans and programs be developed and provided by an entity appointed by the board.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476.6, subsection 14, Code Supplement 2011, is amended to read as follows:
   14.  Energy efficiency plans.  Electric and gas public utilities shall offer energy efficiency programs to their customers through energy efficiency plans. An energy efficiency plan as a whole shall be cost-effective. In determining the cost-effectiveness of an energy efficiency plan, the board shall apply the societal test, utility cost test, rate-payer impact test, and participant test. Energy efficiency programs for qualified low-income persons and for tree planting programs, educational programs, and assessments of consumers’ needs for information to make effective choices regarding energy use and energy efficiency need not be cost-effective and shall not be considered in determining cost-effectiveness of plans as a whole. The energy efficiency programs in the plans may be provided by the utility, or by a contractor or agent of the utility, or on and after January 1, 2014, by an independent entity appointed by the board pursuant to subsection 16, paragraph “i”. Programs offered pursuant to this subsection by gas and electric utilities that are required to be rate-regulated shall require board approval.
    Sec. 2.  Section 476.6, subsection 16, Code Supplement 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  i.
  (1)  In lieu of the provision of utility-specific energy efficiency programs as specified in paragraphs “a” and “b” by gas and electric public utilities required to be rate-regulated under this chapter either directly by the utility or by a contractor or agent of the utility, the board shall, after conducting a contested case proceeding, provide for the development, implementation, and monitoring of energy efficiency plans and programs by one or more entities appointed by the board for such purposes by January 1, 2014. Development and implementation of these plans and programs shall satisfy a rate-regulated utility’s obligations with regard to energy efficiency plans and programs otherwise applicable pursuant to this subsection and subsection 14.
   (2)  The board shall establish, after a contested case proceeding, an automatic adjustment of rates and charges for the support of energy efficiency programs developed and implemented pursuant to this paragraph “i”. The charge shall be known as the energy efficiency charge, shall be shown separately on each customer’s bill, and shall be remitted by a utility to the board. When such a charge is imposed and shown on the bill, notice of an internet site containing information about energy efficiency programs developed and implemented pursuant to this paragraph “i” shall also be provided on a customer’s bill near notation of the energy efficiency charge. Charges remitted pursuant to this paragraph “i” shall be considered repayment receipts as defined in section 8.2 and shall be used by the board in compensating the appointed entity or entities. The board shall submit a report to the general assembly beginning January 1, 2015, and annually thereafter detailing the energy efficiency plans and programs developed and implemented pursuant to this paragraph “i” and the corresponding revenues collected and expenditures made.
EXPLANATION
   This bill relates to energy efficiency plans and programs required to be developed and implemented by gas and electric public utilities.
   The bill provides that in lieu of the provision of energy efficiency programs as required in Code section 476.6, subsection 16, by gas and electric public utilities required to be rate-regulated, by the utility directly or a third-party utility which the utility has contracted, the Iowa utilities board shall, after conducting a contested case proceeding, provide for the development, implementation, and monitoring of energy efficiency plans and programs by one or more entities appointed by the board for such purposes on and after January 1, 2014. The bill states that the development and implementation of these plans and programs satisfies a rate-regulated utility’s obligations with regard to otherwise applicable energy efficiency plan and program requirements.
   The bill additionally provides that the board shall establish, after a contested case proceeding, an automatic adjustment of rates and charges for the support of energy efficiency programs developed and implemented by the appointed entity or entities. The bill specifies that the charge shall be known as the energy efficiency charge, shall be shown separately on each customer’s bill, and shall be remitted by a utility to the board. When such a charge is imposed and shown on the bill, the bill requires that notice of an internet site containing information about energy efficiency programs developed and implemented by the entity or entities shall also be provided on a customer’s bill near notation of the energy efficiency charge. The bill provides that amounts remitted in the form of energy efficiency charges shall be considered repayment receipts as defined in Code section 8.2 and used by the board in compensating the appointed entity or entities.
   The bill directs the board to submit a report to the general assembly by January 1, 2015, and annually thereafter, detailing the energy efficiency plans and programs developed and implemented by an appointed entity or entities and the corresponding revenues collected and expenditures made.