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House File 2381 - IntroducedA Bill ForAn Act 1relating to the regulation of specified gas and electric
2utilities.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 364.3, subsection 13, paragraph b,
2subparagraph (2), Code 2022, is amended to read as follows:
3(2) Paragraph “a” does not apply to an ordinance, motion,
4resolution, or amendment relating to the rates, services, or
5governance of a municipally owned public utility providing
6gas service to the public for compensation and subject to
7the jurisdiction of the utilities board of the department of
8commerce pursuant to section 476.1B 476.1A.
9 Sec. 2. Section 476.1A, Code 2022, is amended by striking
10the section and inserting in lieu thereof the following:
11476.1A Applicability of authority — certain utilities.
121. For purposes of this section, unless the context
13otherwise requires:
14a. “Engineering standards” means standards adopted by the
15American national standards institute, or the institute of
16electrical and electronics engineers, rural utilities service,
17or comparable engineering organization or engineering standards
18adopted by the board.
19b. “Safety standards” means applicable regulations
20promulgated by the United States occupational safety and health
21administration and by Iowa occupational safety and health
22administration. Safety standards for electric utilities
23subject to this section also include those contained in the
24national electric safety code, as published by the institute
25of electrical and electronic engineers, inc.and approved by
26the American national standards institute. Safety standards
27for municipal gas utilities subject to this section include the
28pipeline safety rules contained in the federal regulations at
2949 C.F.R.pts.191 – 193 and 199.
302. Electric public utilities having fewer than ten thousand
31customers, electric cooperative corporations and associations,
32and municipally owned utilities furnishing gas or electricity
33are not subject to the regulation authority of the board,
34except for regulatory action pertaining to the following:
35a. Assessment of fees for the support of the division and
-1-1the office of consumer advocate, pursuant to section 476.10.
2b. Safety standards.
3c. Procedures and requirements for disconnection of service,
4as set forth in section 476.20, subsections 1 through 4.
5d. Assigned area of service, as set forth in sections 476.22
6through 476.26.
7e. Public utility railroad crossings, as set forth in
8section 476.27.
9f. Filing alternate energy purchase program plans with the
10board, and offering such programs to customers, pursuant to
11section 476.47.
12g. Civil penalties pursuant to section 476.51.
13h. Providing energy cost information pursuant to section
14476.56.
15i. Distributed generation interconnection safety pursuant to
16section 476.58, subsections 3 and 4.
17j. Utility-owned exterior flood lighting pursuant to section
18476.62.
19k. Customer contribution funds pursuant to section 476.66.
20l. Chapters 476A and 478, to the extent applicable.
213. Electric public utilities having fewer than ten
22thousand customers and electric cooperative corporations and
23associations are also subject to the regulation authority of
24the board for engineering standards for equipment, operations,
25and procedures and shall be subject to section 476.21.
26a. This subsection shall not apply to a municipally owned
27utility.
28b. This subsection shall apply to an electric power agency
29as defined in chapter 28F and section 390.9 that includes
30as a member a city or municipally owned utility that builds
31transmission facilities after July 1, 2001, and is subject to
32applicable transmission reliability rules or standards adopted
33by the board for those facilities.
344. Electric public utilities having fewer than ten
35thousand customers and electric cooperative corporations and
-2-1associations not subject to rate regulation by the board
2shall give written notice of a proposed increase of any rate
3or charge to all affected customers served by the public
4utility at least thirty days prior to the effective date of
5the increase pursuant to section 476.6, subsection 2. This
6subsection shall not apply to a municipal utility.
75. The board may hear complaints regarding the practices,
8facilities, or services of public utilities subject to
9this section. Such complaints shall be limited solely to
10matters directly related to the regulatory actions listed
11in subsections 2 through 4. After a complaint is submitted
12to the board or filed by the board upon its own motion, the
13written complaint shall be forwarded by the board to the public
14utility. The public utility shall be called upon to satisfy
15the complaint or to answer it in writing within a reasonable
16time to be specified by the board.
17a. Copies of the written complaint forwarded by the board to
18the public utility and copies of all correspondence from the
19public utility in response to the complaint shall be provided
20by the board in an expeditious manner to the consumer advocate.
21(1) If the board determines the public utility’s response
22is inadequate and there appears to be reasonable ground for
23investigating the complaint, the board shall promptly initiate
24a formal proceeding.
25(2) If the consumer advocate determines the public
26utility’s response to the complaint is inadequate, the consumer
27advocate may file a petition with the board which shall
28promptly initiate a formal proceeding if the board determines
29that there is any reasonable ground for investigating the
30complaint.
31(3) The complainant or the public utility may petition the
32board to initiate a formal proceeding and such petition shall
33be granted if the board determines that there is any reasonable
34ground for investigating the complaint.
35b. The formal proceeding may be initiated at any time by
-3-1the board on its own motion. If a proceeding is initiated
2upon petition filed by the consumer advocate, complainant,
3or the public utility, or upon the board’s own motion, the
4board shall set the case for hearing and give notice as it
5deems appropriate. When the board, after a hearing held after
6reasonable notice, finds a public utility’s practices or
7services over which it exercises regulatory authority pursuant
8to subsections 2 through 4 are in violation of law, the board
9shall determine reasonable practices, services, or regulations
10to be observed and enforced.
116. Electric public utilities having fewer than ten
12thousand customers and electric cooperative corporations and
13associations under this section shall not make or grant any
14unreasonable preferences or advantages as to rates or services
15to any person or subject any person to any unreasonable
16prejudice or disadvantage. This subsection shall not apply to
17municipal utilities subject to section 388.6.
187. The board of directors or the membership of an electric
19cooperative otherwise exempt from rate regulation may
20elect to have the cooperative’s corporation or association
21rates regulated by the board. The board shall adopt rules
22prescribing the manner in which the board of directors or the
23membership of an electric cooperative may so elect.
24a. If the board of directors or the membership of an
25electric cooperative has elected to have the cooperative’s
26rates regulated by the board, after two years have elapsed from
27the effective date of such election the board of directors or
28the membership of an electric cooperative may elect to exempt
29the cooperative from the rate regulation authority of the
30board.
31b. If the membership of an electric cooperative elected to
32have the cooperative’s rates regulated by the board, only the
33membership may elect to exempt the cooperative from the rate
34regulation authority of the board.
358. A municipal utility providing local exchange services
-4-1is not subject to regulation by the board under this chapter
2except for regulatory action pertaining to the enforcement of
3sections 476.95, 476.95A, 476.95B, 476.100, and 476.102.
49. The Iowa utilities board does not have direct or indirect
5rate authority over the utilities in this section, unless an
6electric cooperative has elected rate regulation authority.
7 Sec. 3. Section 476.2, subsection 4, Code 2022, is amended
8to read as follows:
94. The board shall have authority, to the extent reasonably
10necessary to implement the provisions of this chapter, to
11inquire into the management of the business of all public
12utilities that are subject to regulation pursuant to this
13chapter, and shall keep itself informed as to the manner and
14method in which the same such business is conducted, and may
15obtain from any public utility all necessary the information
16reasonably necessary to enable the board to perform its duties,
17as provided in this chapter.
18 Sec. 4. Section 476.6, subsection 2, Code 2022, is amended
19to read as follows:
202. Written notice of increase. All Rate-regulated public
21utilities, except those exempted from rate regulation by
22section 476.1 and telecommunications service providers
23registered pursuant to section 476.95A, shall give written
24notice of a proposed increase of any rate or charge to all
25affected customers served by the public utility no more
26than sixty-two days prior to the time the application for
27the increase is filed with the board. Public utilities
28exempted from rate regulation by section 476.1, except
29telecommunications service providers registered pursuant to
30section 476.95A, The notice to affected customers shall state
31that the customer has a right to file a written objection to
32the rate increase and that the affected customers may request
33the board to hold a public hearing to determine if the rate
34increase should be allowed. Electric public utilities having
35fewer than ten thousand customers and electric cooperative
-5-1corporations and associations not subject to rate regulation
2by the board shall give written notice of a proposed increase
3of any rate or charge to all affected customers served by the
4public utility at least thirty days prior to the effective
5date of the increase. If the public utility is subject
6to rate regulation, the notice to affected customers shall
7also state that the customer has a right to file a written
8objection to the rate increase and that the affected customers
9may request the board to hold a public hearing to determine
10if the rate increase should be allowed. The board shall
11prescribe the manner and method that the written notice to each
12affected customer of the public utility shall be served. This
13subsection shall not apply to municipal utilities subject to
14section 384.84.
15 Sec. 5. Section 476.20, subsection 3, paragraph a, Code
162022, is amended to read as follows:
17a. The board shall establish adopt rules which shall
18be uniform with respect to all public utilities furnishing
19gas or electricity relating to establishing the procedures
20and requirements for disconnection of service. The rules
21adopted by the board shall be uniform with respect to all
22rate-regulated public utilities furnishing gas or electricity.
23The rules adopted by the board shall reflect the limited
24scope of the board’s jurisdiction pursuant to section 476.1A.
25 This subsection applies both to regulated rate-regulated
26 utilities, utilities over which the board’s jurisdiction is
27limited by section 476.1A, and to municipally owned utilities
28and unincorporated villages which own their own distribution
29systems, and violations of this subsection subject the
30utilities to civil penalties under section 476.51.
31 Sec. 6. Section 476.58, subsections 3 and 4, Code 2022, are
32amended to read as follows:
333. Procedures and requirements provided in rules adopted
34pursuant to subsection 2 shall apply to all electric utilities
35and all interconnection customers in this state. However,
-6-1only those rule provisions concerning interconnections between
2distributed generation facilities and electric distribution
3systems and safety issues shall apply to utilities over which
4the board’s jurisdiction is limited by section 476.1A or
5476.1B.
64. This section shall not be construed to expand the
7board’s jurisdiction over a utility over which the board’s
8jurisdiction is limited by section 476.1A or 476.1B. This
9section shall not be construed to authorize the board to
10require that an installation or connection of a distributed
11generation facility, disconnection device, or interconnection
12between a distributed generation facility and an electric
13distribution system be performed by a licensed electrician,
14installer, or professional engineer. This section shall not
15be construed to require inspection of a distributed generation
16facility, disconnection device, or interconnection between a
17distributed generation facility and an electric distribution
18system pursuant to chapter 103.
19 Sec. 7. REPEAL. Section 476.1B, Code 2022, is repealed.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill relates to the regulatory authority of the Iowa
24utilities board regarding specified gas and electric utilities.
25The bill provides that municipally owned gas or utility
26companies, electric public utilities having less than
2710,000 customers, and electric cooperative corporations and
28associations shall not be subject to the regulation authority
29of the board except for the assessment of fees for the
30support of the office of consumer advocate, safety standards,
31assigned areas of service, public utility railroad crossings,
32procedures for the disconnection of service, alternative
33energy program plans filed with the board, specified civil
34penalties, energy cost information, distributed generation
35interconnection safety, utility-owned exterior flood lighting,
-7-1customer contribution funds, and electric power generation and
2transmission under Code chapter 476A and electric transmission
3lines under Code chapter 478.
4The bill provides that electric public utilities with less
5than 10,000 customers and electric cooperative corporations
6and associations, and certain electric power agencies are
7subject to board regulation for engineering standards and are
8prohibited from discriminatory rates or charges under Code
9section 476.21. This provision is inapplicable to municipal
10utilities.
11The bill provides that an electric cooperative not subject
12to rate regulation may elect to have their rates regulated
13by the board. After two years, rate regulation may be
14reconsidered. If the membership of the electric cooperative
15chooses to have the rates regulated, only the membership may
16elect to be exempt from regulation.
17The bill provides that a municipal utility providing local
18exchange services is not subject to regulation by the board
19except for regulatory action pertaining to Code sections
20476.95, 476.95A, 476.95B, 476.100, and 476.102.
21The bill provides that electric public utilities with less
22than 10,000 customers and electric cooperative corporations
23and associations shall not make or grant any unreasonable
24preferences or advantages as to rates or services to any
25person or subject any person to any unreasonable prejudice or
26disadvantage. The bill provides that this bill does not apply
27to municipal utilities subject to the prohibition relating to
28discrimination in rates specified in Code section 388.6.
29Rate-regulated public utilities shall give written notice to
30customers of a proposed rate increase or charge no more than 62
31days prior to filing an application for a proposed increase.
32The notice from the rate-regulated public utility shall include
33a provision whereby customers are informed of rights to file an
34objection and request a hearing. The bill provides electric
35public utilities with less than 10,000 customers and electric
-8-1cooperative corporations and associations that are not subject
2to rate regulation by the board shall give written notice to
3customers regarding a proposed rate increase or charge at least
430 days before the effective date of the increase. These
5notice provisions are made inapplicable to municipal utilities
6subject to the rates and charges provisions of Code section
7384.84.
8The bill establishes a written complaint and response
9process. Both the board and the division of the office
10of the consumer advocate may determine if the utility’s
11response is inadequate and initiate further action. The bill
12establishes practices and procedures for a formal action filed
13by complainants.
14The bill provides that the board shall adopt rules
15establishing procedures and requirements for public utilities
16supplying gas or electricity and to utilities over which the
17board’s jurisdiction is limited by the bill relating to the
18disconnection of service. These rules must be uniform for all
19rate-regulated public utilities.
-9-es/rn
2utilities.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 364.3, subsection 13, paragraph b,
2subparagraph (2), Code 2022, is amended to read as follows:
3(2) Paragraph “a” does not apply to an ordinance, motion,
4resolution, or amendment relating to the rates, services, or
5governance of a municipally owned public utility providing
6gas service to the public for compensation and subject to
7the jurisdiction of the utilities board of the department of
8commerce pursuant to section 476.1B 476.1A.
9 Sec. 2. Section 476.1A, Code 2022, is amended by striking
10the section and inserting in lieu thereof the following:
11476.1A Applicability of authority — certain utilities.
121. For purposes of this section, unless the context
13otherwise requires:
14a. “Engineering standards” means standards adopted by the
15American national standards institute, or the institute of
16electrical and electronics engineers, rural utilities service,
17or comparable engineering organization or engineering standards
18adopted by the board.
19b. “Safety standards” means applicable regulations
20promulgated by the United States occupational safety and health
21administration and by Iowa occupational safety and health
22administration. Safety standards for electric utilities
23subject to this section also include those contained in the
24national electric safety code, as published by the institute
25of electrical and electronic engineers, inc.and approved by
26the American national standards institute. Safety standards
27for municipal gas utilities subject to this section include the
28pipeline safety rules contained in the federal regulations at
2949 C.F.R.pts.191 – 193 and 199.
302. Electric public utilities having fewer than ten thousand
31customers, electric cooperative corporations and associations,
32and municipally owned utilities furnishing gas or electricity
33are not subject to the regulation authority of the board,
34except for regulatory action pertaining to the following:
35a. Assessment of fees for the support of the division and
-1-1the office of consumer advocate, pursuant to section 476.10.
2b. Safety standards.
3c. Procedures and requirements for disconnection of service,
4as set forth in section 476.20, subsections 1 through 4.
5d. Assigned area of service, as set forth in sections 476.22
6through 476.26.
7e. Public utility railroad crossings, as set forth in
8section 476.27.
9f. Filing alternate energy purchase program plans with the
10board, and offering such programs to customers, pursuant to
11section 476.47.
12g. Civil penalties pursuant to section 476.51.
13h. Providing energy cost information pursuant to section
14476.56.
15i. Distributed generation interconnection safety pursuant to
16section 476.58, subsections 3 and 4.
17j. Utility-owned exterior flood lighting pursuant to section
18476.62.
19k. Customer contribution funds pursuant to section 476.66.
20l. Chapters 476A and 478, to the extent applicable.
213. Electric public utilities having fewer than ten
22thousand customers and electric cooperative corporations and
23associations are also subject to the regulation authority of
24the board for engineering standards for equipment, operations,
25and procedures and shall be subject to section 476.21.
26a. This subsection shall not apply to a municipally owned
27utility.
28b. This subsection shall apply to an electric power agency
29as defined in chapter 28F and section 390.9 that includes
30as a member a city or municipally owned utility that builds
31transmission facilities after July 1, 2001, and is subject to
32applicable transmission reliability rules or standards adopted
33by the board for those facilities.
344. Electric public utilities having fewer than ten
35thousand customers and electric cooperative corporations and
-2-1associations not subject to rate regulation by the board
2shall give written notice of a proposed increase of any rate
3or charge to all affected customers served by the public
4utility at least thirty days prior to the effective date of
5the increase pursuant to section 476.6, subsection 2. This
6subsection shall not apply to a municipal utility.
75. The board may hear complaints regarding the practices,
8facilities, or services of public utilities subject to
9this section. Such complaints shall be limited solely to
10matters directly related to the regulatory actions listed
11in subsections 2 through 4. After a complaint is submitted
12to the board or filed by the board upon its own motion, the
13written complaint shall be forwarded by the board to the public
14utility. The public utility shall be called upon to satisfy
15the complaint or to answer it in writing within a reasonable
16time to be specified by the board.
17a. Copies of the written complaint forwarded by the board to
18the public utility and copies of all correspondence from the
19public utility in response to the complaint shall be provided
20by the board in an expeditious manner to the consumer advocate.
21(1) If the board determines the public utility’s response
22is inadequate and there appears to be reasonable ground for
23investigating the complaint, the board shall promptly initiate
24a formal proceeding.
25(2) If the consumer advocate determines the public
26utility’s response to the complaint is inadequate, the consumer
27advocate may file a petition with the board which shall
28promptly initiate a formal proceeding if the board determines
29that there is any reasonable ground for investigating the
30complaint.
31(3) The complainant or the public utility may petition the
32board to initiate a formal proceeding and such petition shall
33be granted if the board determines that there is any reasonable
34ground for investigating the complaint.
35b. The formal proceeding may be initiated at any time by
-3-1the board on its own motion. If a proceeding is initiated
2upon petition filed by the consumer advocate, complainant,
3or the public utility, or upon the board’s own motion, the
4board shall set the case for hearing and give notice as it
5deems appropriate. When the board, after a hearing held after
6reasonable notice, finds a public utility’s practices or
7services over which it exercises regulatory authority pursuant
8to subsections 2 through 4 are in violation of law, the board
9shall determine reasonable practices, services, or regulations
10to be observed and enforced.
116. Electric public utilities having fewer than ten
12thousand customers and electric cooperative corporations and
13associations under this section shall not make or grant any
14unreasonable preferences or advantages as to rates or services
15to any person or subject any person to any unreasonable
16prejudice or disadvantage. This subsection shall not apply to
17municipal utilities subject to section 388.6.
187. The board of directors or the membership of an electric
19cooperative otherwise exempt from rate regulation may
20elect to have the cooperative’s corporation or association
21rates regulated by the board. The board shall adopt rules
22prescribing the manner in which the board of directors or the
23membership of an electric cooperative may so elect.
24a. If the board of directors or the membership of an
25electric cooperative has elected to have the cooperative’s
26rates regulated by the board, after two years have elapsed from
27the effective date of such election the board of directors or
28the membership of an electric cooperative may elect to exempt
29the cooperative from the rate regulation authority of the
30board.
31b. If the membership of an electric cooperative elected to
32have the cooperative’s rates regulated by the board, only the
33membership may elect to exempt the cooperative from the rate
34regulation authority of the board.
358. A municipal utility providing local exchange services
-4-1is not subject to regulation by the board under this chapter
2except for regulatory action pertaining to the enforcement of
3sections 476.95, 476.95A, 476.95B, 476.100, and 476.102.
49. The Iowa utilities board does not have direct or indirect
5rate authority over the utilities in this section, unless an
6electric cooperative has elected rate regulation authority.
7 Sec. 3. Section 476.2, subsection 4, Code 2022, is amended
8to read as follows:
94. The board shall have authority, to the extent reasonably
10necessary to implement the provisions of this chapter, to
11inquire into the management of the business of all public
12utilities that are subject to regulation pursuant to this
13chapter, and shall keep itself informed as to the manner and
14method in which the same such business is conducted, and may
15obtain from any public utility all necessary the information
16reasonably necessary to enable the board to perform its duties,
17as provided in this chapter.
18 Sec. 4. Section 476.6, subsection 2, Code 2022, is amended
19to read as follows:
202. Written notice of increase. All Rate-regulated public
21utilities, except those exempted from rate regulation by
22section 476.1 and telecommunications service providers
23registered pursuant to section 476.95A, shall give written
24notice of a proposed increase of any rate or charge to all
25affected customers served by the public utility no more
26than sixty-two days prior to the time the application for
27the increase is filed with the board. Public utilities
28exempted from rate regulation by section 476.1, except
29telecommunications service providers registered pursuant to
30section 476.95A, The notice to affected customers shall state
31that the customer has a right to file a written objection to
32the rate increase and that the affected customers may request
33the board to hold a public hearing to determine if the rate
34increase should be allowed. Electric public utilities having
35fewer than ten thousand customers and electric cooperative
-5-1corporations and associations not subject to rate regulation
2by the board shall give written notice of a proposed increase
3of any rate or charge to all affected customers served by the
4public utility at least thirty days prior to the effective
5date of the increase. If the public utility is subject
6to rate regulation, the notice to affected customers shall
7also state that the customer has a right to file a written
8objection to the rate increase and that the affected customers
9may request the board to hold a public hearing to determine
10if the rate increase should be allowed. The board shall
11prescribe the manner and method that the written notice to each
12affected customer of the public utility shall be served. This
13subsection shall not apply to municipal utilities subject to
14section 384.84.
15 Sec. 5. Section 476.20, subsection 3, paragraph a, Code
162022, is amended to read as follows:
17a. The board shall establish adopt rules which shall
18be uniform with respect to all public utilities furnishing
19gas or electricity relating to establishing the procedures
20and requirements for disconnection of service. The rules
21adopted by the board shall be uniform with respect to all
22rate-regulated public utilities furnishing gas or electricity.
23The rules adopted by the board shall reflect the limited
24scope of the board’s jurisdiction pursuant to section 476.1A.
25 This subsection applies both to regulated rate-regulated
26 utilities, utilities over which the board’s jurisdiction is
27limited by section 476.1A, and to municipally owned utilities
28and unincorporated villages which own their own distribution
29systems, and violations of this subsection subject the
30utilities to civil penalties under section 476.51.
31 Sec. 6. Section 476.58, subsections 3 and 4, Code 2022, are
32amended to read as follows:
333. Procedures and requirements provided in rules adopted
34pursuant to subsection 2 shall apply to all electric utilities
35and all interconnection customers in this state. However,
-6-1only those rule provisions concerning interconnections between
2distributed generation facilities and electric distribution
3systems and safety issues shall apply to utilities over which
4the board’s jurisdiction is limited by section 476.1A or
5476.1B.
64. This section shall not be construed to expand the
7board’s jurisdiction over a utility over which the board’s
8jurisdiction is limited by section 476.1A or 476.1B. This
9section shall not be construed to authorize the board to
10require that an installation or connection of a distributed
11generation facility, disconnection device, or interconnection
12between a distributed generation facility and an electric
13distribution system be performed by a licensed electrician,
14installer, or professional engineer. This section shall not
15be construed to require inspection of a distributed generation
16facility, disconnection device, or interconnection between a
17distributed generation facility and an electric distribution
18system pursuant to chapter 103.
19 Sec. 7. REPEAL. Section 476.1B, Code 2022, is repealed.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill relates to the regulatory authority of the Iowa
24utilities board regarding specified gas and electric utilities.
25The bill provides that municipally owned gas or utility
26companies, electric public utilities having less than
2710,000 customers, and electric cooperative corporations and
28associations shall not be subject to the regulation authority
29of the board except for the assessment of fees for the
30support of the office of consumer advocate, safety standards,
31assigned areas of service, public utility railroad crossings,
32procedures for the disconnection of service, alternative
33energy program plans filed with the board, specified civil
34penalties, energy cost information, distributed generation
35interconnection safety, utility-owned exterior flood lighting,
-7-1customer contribution funds, and electric power generation and
2transmission under Code chapter 476A and electric transmission
3lines under Code chapter 478.
4The bill provides that electric public utilities with less
5than 10,000 customers and electric cooperative corporations
6and associations, and certain electric power agencies are
7subject to board regulation for engineering standards and are
8prohibited from discriminatory rates or charges under Code
9section 476.21. This provision is inapplicable to municipal
10utilities.
11The bill provides that an electric cooperative not subject
12to rate regulation may elect to have their rates regulated
13by the board. After two years, rate regulation may be
14reconsidered. If the membership of the electric cooperative
15chooses to have the rates regulated, only the membership may
16elect to be exempt from regulation.
17The bill provides that a municipal utility providing local
18exchange services is not subject to regulation by the board
19except for regulatory action pertaining to Code sections
20476.95, 476.95A, 476.95B, 476.100, and 476.102.
21The bill provides that electric public utilities with less
22than 10,000 customers and electric cooperative corporations
23and associations shall not make or grant any unreasonable
24preferences or advantages as to rates or services to any
25person or subject any person to any unreasonable prejudice or
26disadvantage. The bill provides that this bill does not apply
27to municipal utilities subject to the prohibition relating to
28discrimination in rates specified in Code section 388.6.
29Rate-regulated public utilities shall give written notice to
30customers of a proposed rate increase or charge no more than 62
31days prior to filing an application for a proposed increase.
32The notice from the rate-regulated public utility shall include
33a provision whereby customers are informed of rights to file an
34objection and request a hearing. The bill provides electric
35public utilities with less than 10,000 customers and electric
-8-1cooperative corporations and associations that are not subject
2to rate regulation by the board shall give written notice to
3customers regarding a proposed rate increase or charge at least
430 days before the effective date of the increase. These
5notice provisions are made inapplicable to municipal utilities
6subject to the rates and charges provisions of Code section
7384.84.
8The bill establishes a written complaint and response
9process. Both the board and the division of the office
10of the consumer advocate may determine if the utility’s
11response is inadequate and initiate further action. The bill
12establishes practices and procedures for a formal action filed
13by complainants.
14The bill provides that the board shall adopt rules
15establishing procedures and requirements for public utilities
16supplying gas or electricity and to utilities over which the
17board’s jurisdiction is limited by the bill relating to the
18disconnection of service. These rules must be uniform for all
19rate-regulated public utilities.
-9-es/rn