Senate File 2104 - Introduced SENATE FILE 2104 BY JOCHUM A BILL FOR An Act exempting persons furnishing electricity from solar 1 energy conversion facilities to designated entities under 2 specified circumstances from public utility regulation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5748XS (7) 84 rn/nh

S.F. 2104 Section 1. Section 476.1, Code 2011, is amended to read as 1 follows: 2 476.1 Applicability of authority. 3 1. The utilities board within the utilities division of the 4 department of commerce shall regulate the rates and services of 5 public utilities to the extent and in the manner hereinafter 6 provided. 7 2. a. As used in this chapter , “board” or “utilities board” 8 means the utilities board within the utilities division of the 9 department of commerce. 10 b. As used in this chapter , “public utility” shall include 11 any person, partnership, business association, or corporation, 12 domestic or foreign, owning or operating any facilities for: 13 1. (1) Furnishing gas by piped distribution system or 14 electricity to the public for compensation. 15 2. (2) Furnishing communications services to the public for 16 compensation. 17 3. (3) Furnishing water by piped distribution system to the 18 public for compensation. 19 3. Mutual telephone companies in which at least fifty 20 percent of the users are owners, cooperative telephone 21 corporations or associations, telephone companies having less 22 fewer than fifteen thousand customers and less fewer than 23 fifteen thousand access lines, municipally owned utilities, 24 and unincorporated villages which own their own distribution 25 systems are not subject to the rate regulation provided for in 26 this chapter . 27 This chapter does not apply to waterworks having less than 28 two thousand customers, municipally owned waterworks, joint 29 water utilities established pursuant to chapter 389 , rural 30 water districts incorporated and organized pursuant to chapters 31 357A and 504 , cooperative water associations incorporated and 32 organized pursuant to chapter 499 , or to a person furnishing 33 electricity to five or fewer customers either by secondary line 34 or from an alternate energy production facility or small hydro 35 -1- LSB 5748XS (7) 84 rn/nh 1/ 3

S.F. 2104 facility, from electricity that is produced primarily for the 1 person’s own use. 2 4. A telephone company otherwise exempt from rate 3 regulation and having telephone exchange facilities which cross 4 state lines may elect, in a writing filed with the board, to 5 have its rates regulated by the board. When a written election 6 has been filed with the board, the board shall assume rate 7 regulation jurisdiction over the company. 8 5. The jurisdiction of the board under this chapter 9 shall include efforts designed to promote the use of energy 10 efficiency strategies by rate or service-regulated gas and 11 electric utilities. 12 6. This chapter does not apply to the following: 13 a. Waterworks having fewer than two thousand customers. 14 b. Municipally owned waterworks. 15 c. Joint water utilities established pursuant to chapter 16 389. 17 d. Rural water districts incorporated and organized pursuant 18 to chapters 357A and 504. 19 e. Cooperative water associations incorporated and organized 20 pursuant to chapter 499. 21 f. Persons furnishing electricity to five or fewer customers 22 either by secondary line or from an alternate energy production 23 facility or small hydro facility, from electricity that is 24 produced primarily for the person’s own use. 25 g. Persons furnishing electricity to a political subdivision 26 of the state, or to an organization qualifying under section 27 501(c)(3) of the Internal Revenue Code as an organization 28 exempt from taxation, from a solar energy conversion facility 29 pursuant to a power purchase agreement whereby the electricity 30 is used on the real property where the facility is located. 31 EXPLANATION 32 This bill provides that persons furnishing electricity to 33 a political subdivision of the state, or to an organization 34 qualifying under section 501(c)(3) of the Internal Revenue Code 35 -2- LSB 5748XS (7) 84 rn/nh 2/ 3

S.F. 2104 as an organization exempt from taxation, from a solar energy 1 conversion facility pursuant to a power purchase agreement 2 whereby the electricity is used on the real property where the 3 facility is located shall not be considered a public utility 4 subject to regulation under Code chapter 476. 5 -3- LSB 5748XS (7) 84 rn/nh 3/ 3