SF 2311 (LSB 5362SV (5) 87)

SENATE FILE 2311

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3093)

(As Amended and Passed by the Senate 2018-03-06)

A BILL FOR

An Act modifying various provisions relating to public utilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 28F.1, subsection 1, Code 2018, is amended to read as follows:
   1.  This chapter provides a means for the joint financing by public agencies of works or facilities useful and necessary for the collection, treatment, purification, and disposal in a sanitary manner of liquid and solid waste, sewage, and industrial waste, facilities used for the conversion of solid waste to energy, gasworks and facilities useful for the delivery of natural gas service, and also electric power facilities constructed within the state of Iowa, except that hydroelectric power facilities may also be located in the waters and on the dams of or on land adjacent to either side of the Mississippi or Missouri river bordering the state of Iowa, water supply systems, swimming pools or golf courses. This chapter applies to the acquisition, construction, reconstruction, ownership, operation, repair, extension, or improvement of such works or facilities, by a separate administrative or legal entity created pursuant to chapter 28E or chapter 389. When the legal entity created under this chapter is comprised solely of cities, counties, and sanitary districts established under chapter 358, or any combination thereof or any combination of the foregoing with other public agencies, the entity shall be both a corporation and a political subdivision with the name under which it was organized. The legal entity may sue and be sued, contract, acquire and hold real and personal property necessary for corporate purposes, adopt a corporate seal and alter the seal at pleasure, and execute all the powers conferred in this chapter.
    Sec. 2.  Section 28F.11, Code 2018, is amended to read as follows:
   28F.11  Eminent domain.
   Any public agency participating in an agreement authorizing the joint exercise of governmental powers pursuant to this chapter may exercise its power of eminent domain to acquire interests in property, under provisions of law then in effect and applicable to the public agency, for the use of the entity created to carry out the agreement, provided that the power of eminent domain is not used to acquire interests in property which is part of a system of facilities in existence, under construction, or planned, for the generation, transmission or sale of electric power, or for the transmission, transportation, or sale of natural gas. In the exercise of the power of eminent domain, the public agency shall proceed in the manner provided by chapter 6B. Any interests in property acquired are acquired for a public purpose, as defined in chapter 6A, of the condemning public agency, and the payment of the costs of the acquisition may be made pursuant to the agreement or to any separate agreement between the public agency and the entity or the other public agencies participating in the entity or any of them. Upon payment of costs, any property acquired is the property of the entity.
    Sec. 3.  Section 476.1, subsection 7, Code 2018, is amended to read as follows:
   7.  The jurisdiction of the board under this chapter shall include efforts designed to promote the use of energy efficiency strategies by rate or service-regulated gas and electric utilities required to be rate-regulated.
    Sec. 4.  Section 476.1A, subsections 1, 2, and 4, Code 2018, are amended to read as follows:
   1.  Electric public utilities having fewer than ten thousand customers and electric cooperative corporations and associations are not subject to the rate regulation authority of the board. Such utilities are subject to all other regulation and enforcement activities of the board, including, except for regulatory action pertaining to all of the following:
   a.  Assessment of fees for the support of the division and the office of consumer advocate, pursuant to section 476.10.
   b.  Safety and engineering standards for equipment, operations, and procedures.
   c.  Assigned area of service.
   d.  Pilot projects of the board.
   e.  Assessment of fees for the support of the Iowa energy center created in section 15.120 and the center for global and regional environmental research established by the state board of regents. This paragraph “e” is repealed July 1, 2022.
   f.  Filing alternate energy purchase program plans with the board, and offering such programs to customers, pursuant to section 476.47.
   g.  Filing energy efficiency plans and energy efficiency results with the board. The energy efficiency plans as a whole shall be cost-effective. The board may permit these utilities to file joint plans. The board shall periodically report the energy efficiency results including energy savings of each of these utilities to the general assembly. The board may waive all or part of the energy efficiency filing and review requirements for electric cooperative corporations and associations and electric public utilities which demonstrate superior results with existing energy efficiency efforts.
   2.  However, sections 476.20, subsections 1 through 4, 476.21, 476.41 through 476.44, 476.51, 476.56, 476.62, and 476.66 and chapters 476A and 478, to the extent applicable, apply to such electric utilities.
   4.  The board of directors or the membership of an electric cooperative corporation or association otherwise exempt from rate regulation may elect to have the cooperative’s rates regulated by the board. The board shall adopt rules prescribing the manner in which the board of directors or the membership of an electric cooperative may so elect. If the board of directors or the membership of an electric cooperative has elected to have the cooperative’s rates regulated by the board, after two years have elapsed from the effective date of such election the board of directors or the membership of the electric cooperative may elect to exempt the cooperative from the rate regulation authority of the board, provided, however, that if the membership elected to have the cooperative’s rates regulated by the board, only the membership may elect to exempt the cooperative from the rate regulation authority of the board.
    Sec. 5.  Section 476.1B, subsection 1, paragraph l, Code 2018, is amended to read as follows:
   l.  Filing energy efficiency plans and energy efficiency results with the board. The energy efficiency plans as a whole shall be cost-effective. The board may permit these utilities to file joint plans. The board shall periodically report the energy efficiency results including energy savings of each of these utilities to the general assembly.
    Sec. 6.  Section 476.2, subsection 6, Code 2018, is amended by striking the subsection.
    Sec. 7.  Section 476.4, subsection 1, Code 2018, is amended to read as follows:
   1.  Every public utility shall file with the board tariffs showing the rates and charges for its public utility services and the rules and regulations under which such services were furnished, on April 1, 1963, which rates and charges shall be subject to investigation by the board as provided in section 476.3, and upon such investigation the burden of establishing the reasonableness of such rates and charges shall be upon the public utility filing the same. These filings shall be made under such rules as the board may prescribe within such time and in such form as the board may designate. In prescribing rules and regulations with respect to the form of tariffs and any other regulations, the board shall, in the case of public utilities subject to regulation by any federal agency, give due regard to any corresponding rules and regulations of such federal agency, to the end that unnecessary duplication of effort and expense may be avoided so far as reasonably possible. Each public utility shall keep copies of its tariffs open to public inspection under such rules as the board may prescribe.
    Sec. 8.  Section 476.6, subsections 1, 8, and 13, Code 2018, are amended to read as follows:
   1.  Filing with board.  A public utility subject to rate regulation shall not make effective a new or changed rate, charge, schedule, or regulation until the rate, charge, schedule, or regulation has been approved by the board, except as provided in subsections 8, and 9, and 22.
   8.  Automatic adjustments permitted.
   a.  This chapter does not prohibit a public utility from making provision for the automatic adjustment of rates and charges for public utility service provided that a schedule showing the automatic adjustment of rates and charges is first filed with the board.
   b.  A public utility may automatically adjust rates and charges to recover costs related to transmission incurred by or charged to the public utility consistent with a tariff or agreement that is subject to the jurisdiction of the federal energy regulatory commission, provided that a schedule showing the automatic adjustment of rates and charges is first filed with the board.
   13.  Energy efficiency plans.  Electric and gas public utilities shall offer energy efficiency programs to their customers through energy efficiency plans. An energy efficiency plan as a whole shall be cost-effective. In determining the cost-effectiveness of an energy efficiency plan, the board shall apply the societal test, total resource cost test, utility cost test, rate-payer impact test, and participant test. Energy efficiency programs for qualified low-income persons and for tree planting programs, educational programs, and assessments of consumers’ needs for information to make effective choices regarding energy use and energy efficiency need not be cost-effective and shall not be considered in determining cost-effectiveness of plans as a whole. The energy efficiency programs in the plans may be provided by the utility or by a contractor or agent of the utility. Programs offered pursuant to this subsection by gas and electric utilities that are required to be rate-regulated shall require board approval.
    Sec. 9.  Section 476.6, subsection 15, paragraphs a and b, Code 2018, are amended to read as follows:
   a.  (1)  (a)  Gas and electric utilities required to be rate-regulated under this chapter shall file five-year energy efficiency plans and demand response plans with the board. An energy efficiency plan and budget or a demand response plan and budget shall include a range of energy efficiency or demand response programs, tailored to the needs of all customer classes, including residential, commercial, and industrial customers, for energy efficiency or demand response opportunities. The plans shall include programs for qualified low-income persons including a cooperative program with any community action agency within the utility’s service area to implement countywide or communitywide energy efficiency or demand response programs for qualified low-income persons. Rate-regulated gas and electric utilities shall utilize Iowa agencies and Iowa contractors to the maximum extent cost-effective in their energy efficiency plans and demand response plans filed with the board.
   (b)  A rate-regulated gas or electric utility customer may request an exemption from participation in any energy efficiency plan or demand response plan offered by a gas or electric utility. Upon receipt of a request for exemption submitted by a customer, the gas or electric utility shall grant the exemption and, beginning January 1 of the following year, the customer shall no longer be assessed the costs of the plan and shall be prohibited from participating in any program included in such plan. An exemption shall be permanent and shall exempt the customer from any subsequent five-year plan offered by the gas or electric utility, provided, however, that a customer granted an exemption may request to enroll in a subsequent five-year energy efficiency plan or demand response plan at any time prior to the commencement of such plan. The gas or electric utility shall grant the enrollment and, beginning at the commencement of the subsequent plan, the customer shall be assessed the costs of the plan and shall be allowed to participate in any program included in such plan.
   (2)  Gas and electric utilities required to be rate-regulated under this chapter may request an energy efficiency plan or demand response plan modification during the course of a five-year plan. A modification may be requested due to changes in funding as a result of public utility customers requesting exemptions from the plan or for any other reason identified by the gas or electric utility. The board shall take action on a modification request made by a gas or electric utility within ninety days after the modification request is filed. If the board fails to take action within ninety days after a modification request is filed, the modification request shall be deemed approved.
   (3)  Before any energy efficiency plan or demand response plan is filed with the board pursuant to this subsection, the board shall adopt rules pursuant to chapter 17A establishing reasonable processes and procedures for utility customers to request exemptions from energy efficiency plans or demand response plans pursuant to this subsection. The rules adopted by the board shall only apply to rate-regulated gas or electric utilities and shall, at a minimum, do all of the following:
   (a)  Prohibit a customer from obtaining an exemption from an energy efficiency plan or demand response plan if the customer has participated in any energy efficiency program or demand response program included in a plan during the course of the plan, or has redeemed any rebate pursuant to an energy efficiency program or demand response program included in a plan during the course of the plan. 
   (b)  Require utilities to provide notification to customers regarding the ability to request an exemption from an energy efficiency plan or demand response plan, or the ability to enroll in a subsequent five-year plan if the customer received an exemption, and establish requirements regarding the content and form of such notification provided to customers. The notification provided to customers shall inform the customer that participation in any energy efficiency program or demand response program included in a plan during the course of the plan, or redemption of any rebate pursuant to an energy efficiency program or demand response program included in a plan during the course of a plan, shall preclude the customer from receiving an exemption from the plan until the commencement of the next five-year plan. Such information included in the notification shall also be included in any rebate provided to customers relating to an energy efficiency program or demand response program included in a plan. 
   (c)  Provide reasonable time for utilities to develop any billing or administrative systems required to implement the rules adopted by the board pursuant to this subparagraph.
   (d)  Provide that if more than ninety percent of the total number of customers in a particular customer class request an exemption from an energy efficiency plan or demand response plan pursuant to this subsection, the utility may discontinue such plan for that particular customer class.
   (e)  Specify how costs that have not been fully recovered from customers during a plan period, including costs of discontinued plans, are to be recovered from customers.
   (f)  Allow a customer to request an exemption during the first plan year of a five-year energy efficiency plan or demand response plan that takes effect on or after January 1, 2019, within a time period of sixty days or more after the date such plan takes effect, which exemption shall become effective at the end of the time period allowed for customers to request an exemption.
   (g)  Allow a customer that moves into the service area of a gas or electric utility during the course of a five-year energy efficiency plan or demand response plan to request an exemption from such plan within sixty days after the commencement of gas or electric service, which exemption shall become effective at the end of the sixty-day time period from which gas or electric service commenced.
   b.  (1)  A gas and electric utility required to be rate-regulated under this chapter shall assess potential energy and capacity savings available from actual and projected customer usage by applying commercially available technology and improved operating practices to energy-using equipment and buildings. The utility shall submit the assessment to the board. Upon receipt of the assessment, the board shall consult with the economic development authority to develop specific capacity and energy savings performance standards goals for each utility.  Such goals, except as provided for in subsection 13, shall only include cost-effective plans. The utility shall submit an energy efficiency plan which shall include economically achievable programs designed to attain these energy and capacity performance standards goals. The board shall periodically report the energy efficiency results including energy savings of each utility to the general assembly.
   (2)  For purposes of this paragraph, “cost-effective” means the total resource cost test result for a plan is greater than one. In applying the total resource cost test, benefits to be considered include avoided capacity and energy costs and federal tax credits, and costs to be considered include incremental costs of equipment, operation, and maintenance, utility costs, and administration costs.
    Sec. 10.  Section 476.6, subsection 15, paragraph c, subparagraphs (1) and (3), Code 2018, are amended to read as follows:
   (1)  Gas and electric utilities that are not required to be rate-regulated under this chapter shall assess maximum potential energy and capacity savings available from actual and projected customer usage through cost-effective energy efficiency measures and programs, taking into consideration the utility service area’s historic energy load, projected demand, customer base, and other relevant factors. Each utility shall establish an energy efficiency goal based upon this assessment of potential and shall establish cost-effective energy efficiency programs designed to meet the energy efficiency goal. Separate goals may be established for various customer groupings. Gas and electric utilities that are not required to be rate-regulated shall allow customers to request exemptions from participation in any energy efficiency programs or demand response programs offered by the utility, and shall establish reasonable processes and procedures for customers to request such exemptions. Such processes and procedures established by non-rate-regulated gas and electric utilities shall not be subject to the regulatory authority of the board.
   (3)  Each utility shall commence the process of determining its cost-effective energy efficiency goal on or before July 1, 2008, shall provide a progress report to the board on or before January 1, 2009, and complete the process and submit a final report to the board on or before January 1, 2010. The report shall include the utility’s cost-effective energy efficiency goal, and for each measure utilized by the utility in meeting the goal, the measure’s description, projected costs, and the analysis of its cost-effectiveness. Each utility or group of utilities shall evaluate cost-effectiveness using the cost-effectiveness tests in accordance with subsection 13 of this section. Individual utilities or groups of utilities may collaborate in conducting the studies required hereunder and may file a joint report or reports with the board. However, the board may require individual information from any utility, even if it participates in a joint report.
    Sec. 11.  Section 476.6, subsection 15, paragraph d, Code 2018, is amended by striking the paragraph.
    Sec. 12.  Section 476.6, subsection 15, paragraphs e, f, and g, Code 2018, are amended to read as follows:
   e.  (1)  The board shall conduct contested case proceedings for review of energy efficiency plans, demand response plans, and budgets filed by gas and electric utilities required to be rate-regulated under this chapter.  Notwithstanding the goals developed pursuant to paragraph “b”, the board shall not require a gas utility to adopt an energy efficiency plan or a demand response plan that results in projected cumulative average annual costs that exceed one and one-half percent of the gas utility’s expected annual rate revenue from customers participating in such plans, and shall not require an electric utility to adopt an energy efficiency plan or demand response plan that results in projected cumulative average annual costs that exceed two percent of the electric utility’s expected annual rate revenue from customers participating in such plans. For purposes of determining the one and one-half or two percent threshold amount, the board shall exclude from a gas or electric utility’s expected annual rate revenue the revenues expected from customers that have received exemptions from energy efficiency plans or demand response plans pursuant to paragraph “a”, subparagraph (1), subparagraph division (b). A gas or electric utility may voluntarily propose an energy efficiency plan or demand response plan that results in projected average annual costs that exceed one and one-half percent, on a cumulative basis, of a gas utility’s expected annual rate revenue from customers participating in such plans, or two percent, on a cumulative basis, of an electric utility’s expected annual rate revenue from customers participating in such plans. The board may approve, reject, or modify the plans and budgets. Notwithstanding the provisions of section 17A.19, subsection 5, in an application for judicial review of the board’s decision concerning a utility’s energy efficiency plan or budget, the reviewing court shall not order a stay. Whenever
   (2)  Notwithstanding paragraph “a”, subparagraph (2), if, on the effective date of this Act, a gas or electric utility’s  currently approved energy efficiency plan or demand response plan includes projected average annual costs that exceed one and one-half percent, on a cumulative basis, of the gas utility’s expected annual rate revenue received from customers participating in such plan for service within the previous calendar year, exclusive of recovery of energy efficiency costs, or two percent, on a cumulative basis, of the electric utility’s expected annual rate revenue received from customers participating in such plan for service within the previous calendar year, exclusive of recovery of energy efficiency costs, the gas or electric utility may file a request to modify its approved energy efficiency plan or demand response plan to achieve projected average annual costs at one and one-half or less, on a cumulative basis, of the gas utility’s expected annual rate revenue from customers participating in such plan, or two percent or less, on a cumulative basis, of the electric utility’s expected annual rate revenue from customers participating in such plan. In such case, or whenever a request to modify an approved plan or budget is filed subsequently by the office of consumer advocate or a gas or electric utility required to be rate-regulated under this chapter, the board shall promptly initiate a formal proceeding if the board determines that any reasonable ground exists for investigating the request. The formal proceeding may be initiated at any time by the board on its own motion. Implementation of board-approved plans or budgets shall be considered continuous in nature and shall be subject to investigation at any time by the board or the office of the consumer advocate.
   f.  Notice to customers of a contested case proceeding for review of energy efficiency plans, demand response plans, and budgets shall be in a manner prescribed by the board.
   g.  (1)  A gas or electric utility required to be rate-regulated under this chapter may recover, through an automatic adjustment mechanism filed pursuant to subsection 8, over a period not to exceed the term of the plan, the costs of an energy efficiency plan or demand response plan approved by the board, including amounts for a plan approved prior to July 1, 1996, in a contested case proceeding conducted pursuant to paragraph “e”.  The board shall ensure that costs are recovered from all customers on a reasonably comparable basis, including customers who utilize alternate energy production facilities as defined in section 476.42. Customers that have been granted exemptions from energy efficiency plans or demand response plans pursuant to paragraph “a”, subparagraph (1), subparagraph division (b), shall not be charged for recovery of energy efficiency or demand response costs beginning January 1 of the year following the year in which the customer was granted the exemption.
   (2)  The board shall periodically conduct a contested case proceeding to evaluate the reasonableness and prudence of the utility’s implementation of an approved energy efficiency or demand response plan and budget. If a utility is not taking all reasonable actions to cost-effectively implement an approved energy efficiency plan, the board shall not allow the utility to recover from customers costs in excess of those costs that would be incurred under reasonable and prudent implementation and shall not allow the utility to recover future costs at a level other than what the board determines to be reasonable and prudent. If the result of a contested case proceeding is a judgment against a utility, that utility’s future level of cost recovery shall be reduced by the amount by which the programs were found to be imprudently conducted. The utility shall not represent energy efficiency or demand response in customer billings as a separate cost or expense unless the board otherwise approves.
    Sec. 13.  Section 476.6, subsection 17, Code 2018, is amended by striking the subsection.
    Sec. 14.  Section 476.6, subsection 20, Code 2018, is amended to read as follows:
   20.  Electric power generating facility emissions.
   a.  It is the intent of the general assembly that the state, through a collaborative effort involving state agencies and affected generation owners, provide for compatible statewide environmental and electric energy policies with respect to regulated emissions from rate-regulated electric power generating facilities in the state that are fueled by coal. Each A rate-regulated public utility that is an owner of one or more electric power generating facilities fueled by coal and located in this state on July 1, 2001, shall develop a multiyear plan and budget may, in its sole discretion, file for advanced review of projects for managing regulated emissions from its facilities in a cost-effective manner.
   (1)  The initial multiyear plan and budget shall be filed with the board by April 1, 2002. Updates to the plan and budget shall be filed at least every twenty-four months.
   (2)  Copies of the initial plan and budget, as well as any subsequent updates, shall be served on the department of natural resources.
   (3)  The initial multiyear plan and budget and any subsequent updates shall be considered in a contested case proceeding pursuant to chapter 17A. The department of natural resources and the consumer advocate shall participate as parties to the proceeding.
   b.  A rate-regulated public utility shall file an application for advanced review of a project at least one hundred twenty days before the anticipated start of construction. Where an electric power generating facility is owned by two or more rate-regulated public utilities, the operator of the electric power generating facility may file the application on behalf of the rate-regulated public utilities.
   (4)  c.  The department of natural resources shall state whether the plan or update project meets applicable state or federal environmental requirements for regulated emissions, including requirements related to air, water, or solid waste. If the plan project does not meet these requirements, the department shall recommend amendments that outline actions necessary to bring the plan or update project into compliance with the environmental requirements.
   b.  d.  The board shall not approve a plan or update project that does not meet applicable state or federal environmental requirements and federal ambient air quality standards for regulated emissions from electric power generating facilities located in the state.
   c.  e.  The board shall review the plan or update project and the associated budget, and shall approve the plan or update project and the associated budget if the plan or update project and the associated budget are reasonably expected to achieve cost-effective compliance with applicable state or federal environmental requirements and federal ambient air quality standards. In reaching its decision, the board shall consider whether the plan or update project and the associated budget reasonably balance costs, environmental requirements, economic development potential, and the reliability of the electric generation and transmission system.
   d.  f.  The board shall issue an order approving or rejecting a plan, update, or budget project within one hundred eighty ninety days after the public utility’s a filing is deemed complete; however, upon good cause shown, the board may extend the time for issuing the order as follows: for approval pursuant to this subsection.
   (1)  The board may grant an extension of thirty days.
   (2)  The board may grant more than one extension, but each extension must rely upon a separate showing of good cause.
   (3)  A subsequent extension must not be granted any earlier than five days prior to the expiration of the original one-hundred-eighty-day period, or the current extension.
   e.  g.  The reasonable costs incurred by a rate-regulated public utility in preparing and filing the plan, update, or budget project and in participating in the proceedings before the board and the reasonable costs associated with implementing the plan, update, or budget project shall be included in its regulated retail rates.
   f.  It is the intent of the general assembly that the board, in an environmental plan, update, or associated budget filed under this section by a rate-regulated public utility, may limit investments or expenditures that are proposed to be undertaken prior to the time that the environmental benefit to be produced by the investment or expenditure would be required by state or federal law.
    Sec. 15.  Section 476.6, Code 2018, is amended by adding the following new subsections:
   NEW SUBSECTION.  22.  Voluntary rates and tariff filings. 
   a.  A rate-regulated public utility may file at any time for expedited approval of a new tariff or rate that is optional for customers and all costs associated with the tariff or rate are borne by customers who elect to participate in the new tariff or rate. 
   b.  A tariff or rate approved under this subsection may not change any existing rates or charges.
   c.  The board shall review the tariff or rate filing within sixty days of filing. If the board fails to review the tariff or rate filing within sixty days of filing, the tariff or rate filing shall be deemed approved. The board shall not be required to hold a hearing to review a tariff or rate filing made pursuant to this subsection.
   NEW SUBSECTION.  23.  Preapproval of cost recovery for natural gas extensions —— rules.  The board may adopt rules which provide for a preapproval process for cost recovery for natural gas extensions.
    Sec. 16.  Section 476.20, subsection 5, paragraph a, unnumbered paragraph 1, Code 2018, is amended to read as follows:
   The board shall establish rules which shall be uniform with respect to all public utilities furnishing gas or electricity relating to deposits which may be required by the public utility for the initiation or reinstatement of service. This subsection shall not apply to municipally owned utilities, which shall be governed by the provisions of section 384.84 with respect to deposits and payment plans for delinquent amounts owed. Municipally owned utilities and electric utilities that are not required to be rate-regulated shall not be subject to the board’s rules in regards to deposits and payment plans for delinquent amounts owed and repayment of past due debt. Municipally owned utilities and electric utilities that are not required to be rate-regulated shall be subject to the board’s rules in regards to payment plans made prior to the disconnection of services.
    Sec. 17.  NEW SECTION.  476.26A  Right to construct, own, and maintain electric transmission lines.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Electric transmission line” means a high-voltage electric transmission line with a capacity of one hundred kilovolts or more and any associated electric transmission facilities.
   b.  “Electric transmission owner” means an individual or entity who, as of the effective date of this Act, owns and maintains an electric transmission facility including electric transmission lines, wires, or cables that are capable of operating at an electric voltage of one hundred kilovolts or more that are required for rate-regulated electric utilities, municipal electric utilities, and rural electric cooperatives in this state to provide electric service to the public for compensation.
   c.  “Incumbent electric transmission owner” means any of the following:
   (1)  A public utility or a municipally owned utility that owns, operates, and maintains an electric transmission line in this state.
   (2)  An electric cooperative corporation or association or municipally owned utility that owns an electric transmission facility in this state and has turned over the functional control of such facility to a federally approved authority.
   (3)  An “electric transmission owner” as defined in paragraph “b”.
   d.  “Municipally owned utility” means a “city utility” as defined in section 362.2, or an “electric power agency” as defined in section 390.9 which is comprised solely of cities or solely of cities and other political subdivisions.
   2.  An incumbent electric transmission owner may construct, own, and maintain an electric transmission line that has been approved for construction in a federally registered planning authority transmission plan and which connects to an electric transmission facility owned by the incumbent electric transmission owner. Where an electric transmission line connects to electric transmission facilities owned by two or more incumbent electric transmission owners, each incumbent electric transmission owner whose facilities connect to the electric transmission line may construct, own, and maintain the electric transmission line individually and equally. If an incumbent electric transmission owner declines to construct, own, and maintain its portion of an electric transmission line that connects to electric transmission facilities owned by two or more incumbent electric transmission owners, then the other incumbent electric transmission owner or owners that own the electric transmission facilities to which the electric transmission line connects may construct, own, and maintain the electric transmission line individually and equally.
   3.  This section shall not modify the authority of the board under chapter 478 or the requirements, rights, and obligations relating to the construction, maintenance, and operation of electric transmission lines pursuant to chapter 478.
    Sec. 18.  Section 476.33, subsection 4, Code 2018, is amended to read as follows:
   4.  The board shall adopt rules that require the board, in rate regulatory proceedings under sections 476.3 and 476.6, to utilize either a historic test year or a future test year at the rate-regulated public utility’s discretion.
   a.  For a rate regulatory proceeding utilizing a historic test year, the rules shall require the board to consider the use of the most current test period possible in determining reasonable and just rates, subject only to the availability of existing and verifiable data respecting costs and revenues, and in addition, to consider verifiable data that exists within nine months after the conclusion of the test year, respecting known and measurable changes in costs not associated with a different level of revenue, and known and measurable revenues not associated with a different level of costs, that are to occur at any time within twelve months after the date of commencement of the proceedings. Parties proposing adjustments that are not verifiable at the commencement of the proceedings shall include projected data related to the adjustments in their initial substantive filing with the board. For purposes of this subsection paragraph, a proceeding commences under section 476.6 upon the filing date of new or changed rates, charges, schedules, or regulations. This subsection does not limit the authority of the board to consider other evidence in proceedings under sections 476.3 and 476.6.
   b.  For a rate regulatory proceeding utilizing a future test year, the rules shall require the board to consider the use of any twelve-month period beginning no later than the date on which a proposed rate change is expected to take effect in determining just and reasonable rates.
   c.  This subsection does not limit the authority of the board to consider other evidence in proceedings under sections 476.3 and 476.6.
    Sec. 19.  Section 476.53, subsection 3, paragraph a, subparagraph (1), subparagraph division (a), Code 2018, is amended by adding the following new subparagraph subdivision:
   NEW SUBPARAGRAPH SUBDIVISION.  (v)  Repowering of an alternate energy production facility to upgrade or extend the useful life of the facility.