Senate Study Bill 3099 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON PETERSEN) A BILL FOR An Act including certain sanitary sewage or storm water 1 drainage disposal system providers under public utility 2 regulation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5983XC (2) 86 rn/sc

S.F. _____ Section 1. Section 476.1, subsection 3, Code 2016, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. Furnishing sanitary sewage or storm water 3 drainage disposal by piped collection system to the public for 4 compensation. 5 Sec. 2. Section 476.1, subsection 5, Code 2016, is amended 6 to read as follows: 7 5. This chapter does not apply to waterworks having less 8 than two thousand customers, municipally owned waterworks, 9 joint water utilities established pursuant to chapter 389 , 10 rural water districts incorporated and organized pursuant 11 to chapters 357A and 504 , cooperative water associations 12 incorporated and organized pursuant to chapter 499 , municipally 13 owned sanitary sewage or storm water drainage systems, sanitary 14 districts incorporated and organized pursuant to chapter 358, 15 rural water districts granted a franchise by a city pursuant 16 to section 357A.23, or to a person furnishing electricity to 17 five or fewer customers either by secondary line or from an 18 alternate energy production facility or small hydro facility, 19 from electricity that is produced primarily for the person’s 20 own use. 21 Sec. 3. Section 476.8, unnumbered paragraph 1, Code 2016, 22 is amended to read as follows: 23 Every public utility is required to furnish reasonably 24 adequate service and facilities. “Reasonably adequate service 25 and facilities” for public utilities furnishing gas or 26 electricity includes programs for customers to encourage the 27 use of energy efficiency and renewable energy sources. The 28 charge made by any public utility for any heat, light, gas, 29 energy efficiency and renewable energy programs, water or 30 power produced, transmitted, delivered or furnished, sanitary 31 sewage or storm water collected and treated, or communications 32 services, or for any service rendered or to be rendered in 33 connection therewith shall be reasonable and just, and every 34 unjust or unreasonable charge for such service is prohibited 35 -1- LSB 5983XC (2) 86 rn/sc 1/ 3

S.F. _____ and declared unlawful. In determining reasonable and just 1 rates, the board shall consider all factors relating to value 2 and shall not be bound by rate base decisions or rulings made 3 prior to the adoption of this chapter . 4 Sec. 4. Section 476.9, subsection 2, Code 2016, is amended 5 to read as follows: 6 2. Every public utility engaged directly or indirectly in 7 any other business than that of the production, transmission , 8 or furnishing of heat, light, water , or power , the collection 9 and treatment of sanitary sewage or storm water, or the 10 furnishing of communications services to the public shall, 11 if required by the board, keep and render separately to the 12 board in like manner and form the accounts of all such other 13 business, in which case all the provisions of this chapter 14 shall apply to the books, accounts, papers and records of such 15 other business and all profits and losses may be taken into 16 consideration by the board if deemed relevant to the general 17 fiscal condition of the public utility. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill modifies the definition of a public utility for 22 purposes of the regulatory authority of the Iowa utilities 23 board. 24 Currently, a “public utility” is defined in Code chapter 476 25 to include any person, partnership, business association, or 26 domestic or foreign corporation owning or operating facilities 27 for the furnishing of specified services to the public for 28 compensation. The services include furnishing gas by piped 29 distribution system, electricity, communications services, and 30 water by piped distribution system. The bill adds to this 31 list the furnishing of sanitary sewage or storm water drainage 32 disposal by piped collection system. The bill provides, 33 however, that Code chapter 476 shall not apply to a municipally 34 owned sanitary sewage or storm water drainage system, sanitary 35 -2- LSB 5983XC (2) 86 rn/sc 2/ 3

S.F. _____ districts incorporated and organized pursuant to Code chapter 1 358, or a rural water district granted a franchise by a city. 2 The bill makes conforming changes to include sanitary sewage 3 or storm water collection and treatment in provisions requiring 4 public utilities to furnish reasonably adequate service and 5 facilities and in provisions requiring unrelated business 6 accounting by utilities to the Iowa utilities board. 7 -3- LSB 5983XC (2) 86 rn/sc 3/ 3