House
Study
Bill
118
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
COWNIE)
A
BILL
FOR
An
Act
making
cross-subsidization
prohibitions
inapplicable
to
1
certain
public
utility
rates
or
charges.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1464YC
(3)
86
rn/sc
H.F.
_____
Section
1.
Section
476.78,
Code
2015,
is
amended
to
read
as
1
follows:
2
476.78
Cross-subsidization
prohibited.
3
A
public
utility
shall
not
directly
or
indirectly
include
4
any
costs
or
expenses
attributable
to
providing
nonutility
5
service
in
regulated
rates
or
charges.
Except
for
contracts
6
existing
as
of
July
1,
1996,
with
respect
to
rates
applicable
7
to
installation,
service,
repair,
or
equipment
sales
in
8
cities
or
unincorporated
villages
with
a
population
of
ten
9
thousand
or
less
according
to
the
most
recent
federal
decennial
10
census,
a
public
utility
or
its
affiliates
shall
not
use
11
vehicles,
service
tools
and
instruments,
or
employees,
the
12
costs,
salaries,
or
benefits
of
which
are
recoverable
in
the
13
regulated
rates
for
electric
service
or
gas
service
to
install,
14
service,
or
repair
residential
or
commercial
gas
or
electric
15
heating,
ventilating,
or
air
conditioning
systems,
or
interior
16
lighting
systems
and
fixtures;
or
to
sell
at
retail
heating,
17
ventilating,
air
conditioning,
or
interior
lighting
equipment.
18
For
the
purpose
of
this
section
,
“commercial”
means
a
place
of
19
business
primarily
used
for
the
storage
or
sale,
at
wholesale
20
or
retail,
of
goods,
wares,
services,
or
merchandise.
Nothing
21
in
this
section
shall
be
construed
to
prohibit
a
public
utility
22
from
using
its
utility
vehicles,
service
tools
and
instruments,
23
and
employees
to
market
systems,
services,
and
equipment,
to
24
light
pilots,
or
to
eliminate
a
customer
emergency
or
threat
25
to
public
safety.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
modifies
provisions
relating
to
the
prohibition
on
30
cross-subsidization
of
public
utility
rates
or
charges.
31
Currently,
a
public
utility
or
its
affiliates
is
prohibited
32
from
recovering
in
the
regulated
rates
for
electric
service
or
33
gas
service
the
costs
applicable
to
vehicles,
service
tools
and
34
instruments,
and
the
salaries
and
benefits
of
employees,
to
35
-1-
LSB
1464YC
(3)
86
rn/sc
1/
2
H.F.
_____
install,
service,
or
repair
residential
or
commercial
gas
or
1
electric
heating,
ventilating,
or
air
conditioning
systems,
or
2
interior
lighting
systems
and
fixtures;
or
to
sell
at
retail
3
heating,
ventilating,
air
conditioning,
or
interior
lighting
4
equipment.
This
prohibition
is
expressly
inapplicable
to
5
contracts
which
existed
as
of
July
1,
1996.
6
The
bill
deletes
the
exception
for
contracts
which
existed
7
as
of
July
1,
1996,
and
instead
provides
an
exception
from
the
8
prohibition
for
rates
applicable
to
installation,
service,
9
repair,
or
equipment
sales
in
cities
or
unincorporated
villages
10
with
a
population
of
10,000
or
less
according
to
the
most
11
recent
federal
decennial
census.
12
-2-
LSB
1464YC
(3)
86
rn/sc
2/
2