Senate
Study
Bill
1226
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
PETERSEN)
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
1728SC
(2)
86
rn/sc
S.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,
in
cities
or
unincorporated
7
villages
with
a
population
of
ten
thousand
or
less
according
8
to
the
2010
federal
decennial
census,
a
public
utility
or
9
its
affiliates
shall
not
use
vehicles,
service
tools
and
10
instruments,
or
employees,
the
costs,
salaries,
or
benefits
11
of
which
are
recoverable
in
the
regulated
rates
for
electric
12
service
or
gas
service
to
install,
service,
or
repair
13
residential
or
commercial
gas
or
electric
heating,
ventilating,
14
or
air
conditioning
systems,
or
interior
lighting
systems
15
and
fixtures;
or
to
sell
at
retail
heating,
ventilating,
16
air
conditioning,
or
interior
lighting
equipment.
For
the
17
purpose
of
this
section
,
“commercial”
means
a
place
of
business
18
primarily
used
for
the
storage
or
sale,
at
wholesale
or
retail,
19
of
goods,
wares,
services,
or
merchandise.
Nothing
in
this
20
section
shall
be
construed
to
prohibit
a
public
utility
from
21
using
its
utility
vehicles,
service
tools
and
instruments,
22
and
employees
to
market
systems,
services,
and
equipment,
to
23
light
pilots,
or
to
eliminate
a
customer
emergency
or
threat
24
to
public
safety.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
modifies
provisions
relating
to
the
prohibition
on
29
cross-subsidization
of
public
utility
rates
or
charges.
30
Currently,
a
public
utility
or
its
affiliates
is
prohibited
31
from
recovering
in
the
regulated
rates
for
electric
service
or
32
gas
service
the
costs
applicable
to
vehicles,
service
tools
and
33
instruments,
and
the
salaries
and
benefits
of
employees.
This
34
prohibition
is
expressly
inapplicable
to
contracts
that
existed
35
-1-
LSB
1728SC
(2)
86
rn/sc
1/
2
S.F.
_____
as
of
July
1,
1996.
1
The
bill
deletes
the
exception
for
contracts
that
existed
2
as
of
July
1,
1996,
and
instead
provides
an
exception
to
the
3
prohibition
applicable
to
cities
or
unincorporated
villages
4
with
a
population
of
10,000
or
less
according
to
the
2010
5
federal
decennial
census.
6
-2-
LSB
1728SC
(2)
86
rn/sc
2/
2