H.F. 700 Section 1. Section 476.6, subsection 7, Code 2021, is 1 amended to read as follows: 2 7. Limitation on filings. 3 a. A public utility that utilizes a historic test year in a 4 rate regulatory proceeding pursuant to section 476.33 shall not 5 make a subsequent filing of an application for a new or changed 6 rate, charge, schedule, or regulation which relates to services 7 for which a rate filing is pending within twelve months 8 following the date the prior application was filed or until 9 the board has issued a final order on the prior application, 10 whichever date is earlier, unless the public utility applies 11 to the board for authority and receives authority to make a 12 subsequent filing at an earlier date. 13 b. A public utility that utilizes a future test year in a 14 rate regulatory proceeding pursuant to section 476.33 shall 15 not file an application for a new or changed rate, charge, 16 schedule, or regulation until after the date the board has 17 issued a final order related to the subsequent proceeding 18 unless the public utility applies to the board for authority 19 and receives authority to make a subsequent filing. 20 Sec. 2. Section 476.6, subsection 9, paragraph a, Code 2021, 21 is amended to read as follows: 22 a. A If a public utility utilizes a historic test year in 23 a rate regulatory proceeding pursuant to section 476.33, the 24 public utility may choose to place in effect temporary rates, 25 charges, schedules, or regulations without board review on or 26 after ten days following the filing date under this section . 27 If the utility chooses to place such rates, charges, schedules, 28 or regulations in effect, the utility shall file with the 29 board a bond or other corporate undertaking approved by the 30 board conditioned upon the refund in a manner prescribed by 31 the board of amounts collected in excess of the amounts which 32 would have been collected under rates, charges, schedules, or 33 regulations finally approved by the board. At the conclusion 34 of the proceeding if the board determines that the temporary 35 -1- LSB 2109HV (1) 89 jda/rn 1/ 4

H.F. 700 rates, charges, schedules, or regulations placed in effect 1 under this paragraph were not based on previously established 2 regulatory principles, the board shall consider ordering 3 refunds based upon the overpayments made by each individual 4 customer class, rate zone, or customer group. If the board 5 has not rendered a final decision with respect to suspended 6 rates, charges, schedules, or regulations upon the expiration 7 of ten months after the filing date, plus the length of any 8 delay that necessarily results either from the failure of the 9 public utility to exercise due diligence in connection with 10 the proceedings or from intervening judicial proceedings, 11 plus the length of any extension permitted by section 476.33, 12 subsection 3 , then such temporary rates, charges, schedules, or 13 regulations placed into effect on a temporary basis shall be 14 deemed finally approved by the board and the utility may place 15 them into effect on a permanent basis. 16 Sec. 3. Section 476.33, subsection 4, paragraph b, Code 17 2021, is amended to read as follows: 18 b. For a rate regulatory proceeding utilizing a future test 19 year, the rules shall require the board to consider the use 20 of any twelve-month period beginning no later than the date 21 on which a proposed rate change is expected to take effect 22 in determining just and reasonable rates. The rules shall 23 also require the board to conduct a proceeding subsequent to 24 the effective date of a rate resulting from a rate regulatory 25 proceeding utilizing a future test year to determine whether 26 the actual costs and revenues are reasonably consistent with 27 those approved by the board. If the actual costs and revenues 28 are not reasonably consistent with those approved by the 29 board, the board shall adjust the rates accordingly. For a 30 rate regulatory proceeding utilizing a future test year, the 31 board may adopt rules regarding evidence required, information 32 to support forecasts, and any reporting obligations. The 33 board may also adopt rules regarding the conditions under 34 which a public utility that utilizes a future test year may 35 -2- LSB 2109HV (1) 89 jda/rn 2/ 4

H.F. 700 subsequently utilize a historic test year. A public utility 1 shall not be precluded from filing a rate regulatory proceeding 2 utilizing a future test year prior to the adoption of any rules 3 pursuant to this subsection . A public utility that utilizes 4 a future test year in a rate regulatory proceeding shall not 5 propose the use of multiple future test years in the same rate 6 regulatory proceeding. 7 Sec. 4. Section 476.33, subsection 4, Code 2021, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0c. For the proceeding subsequent to the 10 effective date of a rate resulting from a rate regulatory 11 proceeding utilizing a future test year, the rules shall 12 establish filing requirements for the subsequent proceeding, 13 procedural rules, and standards of reasonableness for 14 determining whether the actual costs and revenues are 15 reasonably consistent with those approved by the board and if 16 refunds, reduced rates, or increased rates should be required. 17 The subsequent proceeding shall be based upon twelve months of 18 actual data beginning from the date that the rates based upon a 19 future test year became effective, and the board shall conduct 20 a hearing within ninety days after the public utility files 21 the twelve-month data with the board, if the board determines 22 that a hearing is necessary. The public utility shall file 23 the twelve-month data within ninety days of the end of the 24 twelve-month period. The board shall issue a final order 25 within one hundred twenty days after the public utility files 26 the twelve-month data required for the subsequent proceeding. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to rate regulatory proceedings before the 31 utilities board within the utilities division of the department 32 of commerce. 33 The bill prohibits a public utility that utilizes a historic 34 test year in a rate regulatory proceeding from making a 35 -3- LSB 2109HV (1) 89 jda/rn 3/ 4

H.F. 700 subsequent filing of an application for a new or changed rate 1 which relates to services for which a rate filing is pending 2 within 12 months following the date the prior application 3 was filed or until the board has issued a final order on 4 the prior application, whichever date is earlier, unless the 5 public utility applies to the board and receives authority. 6 Additionally, the bill prohibits a public utility that utilizes 7 a future test year in a proceeding from filing an application 8 for a new or changed rate until after the board has issued an 9 order related to the subsequent proceeding unless the public 10 utility applies to the board and receives authority. 11 Current law allows public utilities to place in effect 12 temporary rates, charges, schedules, or regulations without 13 board review on or after 10 days following the filing date 14 under Code section 476.6. The bill provides only a public 15 utility that utilizes a historic test year under Code section 16 476.33 may place in effect such temporary rates, charges, 17 schedules, or regulations. 18 The bill prohibits a public utility that utilizes a future 19 test year in a rate regulatory proceeding from proposing the 20 use of multiple future test years in the same proceeding. 21 Current law requires the board to adopt rules that require 22 the board to utilize either a historic test year or a future 23 test year in a rate regulatory proceeding. With respect 24 to proceedings that take place after the effective date of 25 a rate resulting from a proceeding utilizing a future test 26 year, the bill requires the board’s rules to establish filing 27 requirements and standards of reasonableness for determining 28 whether the actual costs and revenues are consistent with 29 those approved by the board. The bill requires the subsequent 30 proceeding to be based on 12 months of data. Additionally, the 31 bill requires the public utility to file the data within 90 32 days of the end of the 12-month period, and requires the board 33 to issue a final order within 120 days after the public utility 34 files the data. 35 -4- LSB 2109HV (1) 89 jda/rn 4/ 4