Senate Study Bill 3186 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON DAWSON) A BILL FOR An Act relating to a public utility’s automatic adjustment of 1 rates and charges. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6372XC (2) 88 ja/rn

S.F. _____ Section 1. Section 476.6, subsection 8, Code 2020, is 1 amended to read as follows: 2 8. Automatic adjustments. 3 a. This chapter does not prohibit a public utility from 4 making provision for the automatic adjustment of rates and 5 charges for public utility service provided that a schedule 6 tariff showing the automatic adjustment of rates and charges is 7 first filed with and approved by the board. 8 b. A public utility may automatically adjust rates and 9 charges to recover costs related to transmission incurred by 10 or charged to the public utility consistent with pursuant to a 11 tariff or agreement that is subject to the jurisdiction of and 12 approved by the federal energy regulatory commission, provided 13 that a schedule tariff showing the automatic adjustment of 14 rates and charges is first filed with and approved by the 15 board. The board shall adopt rules regarding the reporting 16 of transmission expenses and transmission-related activity 17 pursuant to this paragraph required content of the transmission 18 cost automatic adjustment tariff filing and requiring the 19 reporting of transmission expenses incurred by the public 20 utility . The board shall also adopt rules requiring the 21 reporting of activities undertaken by the public utility to 22 mitigate the transmission costs sought to be recovered through 23 an automatic adjustment pursuant to this paragraph. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to a public utility’s automatic adjustment 28 of rates and charges. 29 Current law provides that Code chapter 476 does not prohibit 30 a public utility from automatically adjusting rates and charges 31 if a schedule showing the automatic adjustment is filed with 32 and approved by the Iowa utilities board. The bill modifies 33 this provision to provide that it is a tariff that must be 34 filed with and approved by the board prior to such automatic 35 -1- LSB 6372XC (2) 88 ja/rn 1/ 2

S.F. _____ adjustment. 1 Current law also provides that a public utility may 2 automatically adjust its rates and charges to recover 3 transmission costs consistent with a tariff or agreement that 4 is subject to the jurisdiction of the federal energy regulatory 5 commission, if a schedule showing the automatic adjustment is 6 filed with and approved by the board. The bill modifies this 7 provision to provide that a public utility may automatically 8 adjust its rates and charges to recover such costs pursuant to 9 a tariff that is subject to the jurisdiction of and approved by 10 the federal energy regulatory commission, if a tariff showing 11 the automatic adjustment is first filed with and approved by 12 the board. 13 The bill requires the board to adopt rules regarding the 14 required content of the transmission cost automatic adjustment 15 tariff filing and requiring the reporting of transmission 16 expenses incurred by the public utility. The bill also 17 requires the board to adopt rules requiring the reporting 18 of activities undertaken by the public utility to mitigate 19 the costs sought to be recovered through a transmission cost 20 automatic adjustment. 21 -2- LSB 6372XC (2) 88 ja/rn 2/ 2