SENATE FILE _____

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON MCCOY)

A BILL FOR

An Act relating to permissible forms of ownership of transmission facilities subject to a joint agreement for generating, purchasing, or otherwise acquiring electric power and energy.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 390.1, subsection 9, Code 2011, is amended to read as follows:
   9.  “Own” and “ownership” in the case of transmission facilities, including substations and associated facilities, which are located in whole or in part in Iowa, may include the right to the use of an amount of the capacity of the facilities, if the joint agreement so provides. “Own” and “ownership” in the case of transmission facilities, including substations and associated facilities, does not
 
may include those which are located in states which are not contiguous to Iowa
 
a joint facility located in this state or outside this state.
    Sec. 2.  NEW SECTION.  390.8A  Transmission facility ownership.
   In addition to the powers conferred upon a city or electric power agency elsewhere in this chapter, a city or electric power agency may acquire ownership interest in a transmission facility, including ownership of the capacity of such facility, within this state or in any other state for the purpose of participating with other utilities in transmission to be operated by a regional transmission organization or an independent transmission operator approved by the federal energy regulatory commission. For purposes of this section, “electric power agency” means the same as defined in section 390.9.
EXPLANATION
   This bill expands the definition of “ownership” of transmission facilities subject to a joint agreement between participants, which may include a city, electric cooperative, or privately owned utility company, to include facilities located outside the state of Iowa. Currently, Code section 390.1, subsection 9, restricts ownership to facilities which are located within Iowa or in states contiguous to Iowa.
   The bill provides that in addition to other powers conferred upon a city or electric power agency, a city or electric power agency may acquire ownership interest in a transmission facility, including ownership of the capacity of such facility, within Iowa or in any other state for the purpose of participating with other utilities in transmission to be operated by a regional transmission organization or an independent transmission operator approved by the federal energy regulatory commission.