Iowa Legislature: 03-01-2017

Bulletin 03-01-2017

Front matter not included

ARC 2957CUtilities Division[199]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

Pursuant to Iowa Code sections 17A.4, 474.5, and 476.2, the Utilities Board (Board) gives notice that on February 10, 2017, the Board issued an order in Docket No. RMU-2016-0002, In re: Review of Organization and Operation [199 IAC 1], “Order Commencing Rule Making,” proposing to update and streamline Chapter 1 of the Board’s rules. The order approving this Notice of Intended Action can be found on the Board’s Electronic Filing System (EFS) Web site, http://efs.iowa.gov, in Docket No. RMU-2016-0002. To develop the proposed amendments, the Board sought early input from stakeholders. Stakeholder comments and reply comments were filed by Interstate Power and Light Company (IPL), MidAmerican Energy Company (MidAmerican), and the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice. Those comments have been considered in the preparation of the order in connection with the relevant rules. Pursuant to Iowa Code sections 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendments. The statement must be filed on or before March 21, 2017. The statement should be filed electronically through the Board’s EFS. Instructions for making an electronic filing can be found on the EFS Web site at http://efs.iowa.gov. Filings shall comply with the format requirements in 199 IAC 2.2(2) and clearly state the author’s name and address and make specific reference to Docket No. RMU-2016-0002. Paper comments may be filed with approval of the Board. No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested or the Board on its own motion after reviewing the comments may determine an oral presentation should be scheduled. Requests for oral presentation should be filed in EFS by March 21, 2017, in Docket No. RMU-2016-0002. After analysis and review of this rule making, the Board tentatively concludes that the proposed amendments, if adopted, will not have a detrimental effect on jobs in Iowa. These amendments are intended to implement Iowa Code sections 17A.4, 474.5, and 476.2. The following amendments are proposed.

ITEM 1. Amend rule 199—1.3(17A,474,476,78GA,HF2206) as follows:

199—1.3(17A,474,476,78GA,HF2206) Waivers. In response to a request, or on its own motion, the board may grant a waiver from a rule adopted by the board, in whole or in part, as applied to a specific set of circumstances, if the board finds, based on clear and convincing evidence, that:

The application of the rule would pose an undue hardship on the person for whom the waiver is requested;
The waiver would not prejudice the substantial legal rights of any person;
The provisions of the rule subject to a petition for waiver are not specifically mandated by statute or another provision of law; and
Substantially equal protection of public health, safety, and welfare will be afforded by a means other than that prescribed in the rule for which the waiver is requested.

The burden of persuasion rests with the person who petitions the board for the waiver. If the above criteria are met, a waiver may be granted at the discretion of the board upon consideration of all relevant factors.Persons requesting a waiver may use the form provided in 199—subrule 2.2(17), or may submit their request as a part of another pleading. The waiver request must state the relevant facts and reasons the requester believes will justify the waiver, if they have not already been provided to the board in another pleading. The waiver request must also state the scope and operative period of the requested waiver. If the request is for a permanent waiver, the requester must state reasons why a temporary waiver would be impractical.The waiver shall describe its precise scope and operative period. Grants or denials of waiver requests shall contain a statement of the facts and reasons upon which the decision is based. The board may condition the grant of the waiver on such reasonable conditions as appropriate to achieve the objectives of the particular rule in question. The board may at any time cancel a waiver upon appropriate notice and opportunity for hearing. This rule is intended to implement Iowa Code chapters 17A, 474, and 476 and 2000 Iowa Acts, House File 2206.

ITEM 2. Amend rule 199—1.4(17A,474) as follows:

199—1.4(17A,474) Duties of the board. The utilities board regulates electric, gas, telephone, telegraph, and water utilities; and pipelines and underground gas storagecertain sanitary sewer and storm water drainage facilities. The board regulates the rates and services of public utilities pursuant to Iowa Code chapter 476; certification of electric power generators pursuant to chapter 476A; construction and safety of electric transmission lines pursuant to chapter 478; and the construction and operation of pipelines and underground gas or hazardous liquid storage pursuant to chapters 479, 479A and 479B.

ITEM 3. Amend rule 199—1.5(17A,474), introductory paragraph, as follows:

199—1.5(17A,474) Organization. The utilities divisionboard consists of the three-member board, the office of the executive secretary, which heads the technical and administrative staff, and the office of general counsel.

ITEM 4. Rescind and reserve subrules 1.5(2) and 1.5(3).

ITEM 5. Amend subrule 1.8(1) as follows: 1.8(1) Communications. All communications to the board shall, other than those filed through the board’s electronic filing system, may be addressed to the Executive Secretary, Iowa Utilities Board, 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319-0069, unless otherwise specifically directed. Pleadings and other papers required to be filed with the board shall be filed in the office of the executive secretary of the board within the time limit, if any, for such filing. Unless otherwise specifically provided, all communications and documents are officially filed upon receiptand acceptance at the office of the board.

ITEM 6. Rescind and reserve subrule 1.8(3).

ITEM 7. Amend subrule 1.9(1) as follows: 1.9(1) Public information. Any interested person may examine all public records of the board by written request or in person at the offices of the boardoffices. Public records shallmay be examined only at the boardoffice only during the board’s regular business hours, Monday through Friday from 8 a.m. to 4:30 p.m., excluding legal holidays.Public records in docketed matters may be examined at any time using the board’s electronic filing system. Unless otherwise provided by law, all public records, other than confidential records, maintained by the board shall be made available for public inspection.

ITEM 8. Amend subrule 1.9(2), definition of “Personally identifiable information,” as follows: "Personally identifiable information." Information about or pertaining to an individual, specifically including the following unique identifiers when combined with an individual’s name: social security number or a financial account number (checking, savings, or share account number or credit, debit, or charge card number). This“Personally identifiable information” does not include information pertaining to corporations.

ITEM 9. Rescind and reserve subrules 1.9(3) and 1.9(4).

ITEM 10. Amend subrules 1.9(5) to 1.9(8) as follows: .(5) Records not routinely available for public inspection. The following records are not routinely available for public inspection. The records are listed in this subrule by category, according to the statutory basis for withholding them from inspection. a. Materials that are specifically exempted from disclosure by statute and which the board may in its discretion withhold from public inspection.Any person may request permission to inspect particular records withheld from inspection under this subrule. At the time of the request, the board will notify all interested parties. If the request is to review materials under subparagraphs 1.9(5)“a”(1) and 1.9(5)“a”(3), the board will withhold the materials from public inspection for 14 days to allow the party who submitted the materials an opportunity to seek injunctive relief. Records the commissionboard is authorized to withhold from public inspection under Iowa law in its discretion include, but are not limited to, the following: (1) Trade secrets recognized and protected as such by law. Iowa Code section 22.7. (2) Records that represent and constitute the work product of an attorney, which are related to litigation or claim made by or against a public body. Iowa Code section 22.7. (3) Reports made to the board which, if released, would give advantage to competitors and serve no public purpose. Iowa Code section 22.7. (4) Personal information in confidential personnel records of the board. Iowa Code section 22.7. (5) Communications not required by law, rule, or procedure that are made to a government body or to any of its employees by identified persons outside of government, to the extent that the government body receiving those communications could reasonably believe that those persons would be discouraged from making them to the government body if they were available for general public examination. Notwithstanding this provision:

The communication is a public record to the extent the person outside of government making that communication consents to its treatment as a public record.
Information contained in the communication is a public record to the extent it can be disclosed without directly or indirectly indicating the identity of the person outside of government making it or enabling others to ascertain the identity of that person.
Information contained in the communication is a public record to the extent it indicates the date, time, specific location, and immediate facts and circumstances surrounding the occurrence of a crime or other illegal act, except to the extent its disclosure would plainly and seriously jeopardize a continuing investigation or pose a clear and present danger to the safety of any person. In any action challenging the failure of the lawful custodian to disclose any particular information of the kind enumerated in this paragraph, the burden of proof is on the lawful custodian to demonstrate the disclosure of that information would jeopardize such an investigation or would pose such a clear and present danger. Iowa Code section 22.7.

(6) Materials exempted from public inspection under any other provisions of state law. b. Materials that are specifically exempted from disclosure by statute and which the board is prohibited from making available for public inspection.The board is required to withhold the following materials from public inspection: (1) Tax records submitted to the board and required by it in the execution of its duties shall be held confidential. Iowa Code section 422.20. (2) Reserved. c. Materials exempted pursuant to requests deemed granted by the board.Requests to withhold from public inspection the materials and information listed in the subparagraphs below are deemed granted by the board pursuant to Iowa Code section 22.7(3) or 22.7(6), or both sections, provided that the confidential portions of the filings are identified as confidential and filed as provided in 199—14.12(17A,476) and an attorney for the company or corporate officer avers that the material or information satisfies the requirements in Iowa Code section 22.7(3) or 22.7(6), or both sections. The material or information filed pursuant to this paragraph will be deemed confidential upon the filer’s receipt of a notice of electronic filing without further review or acknowledgement by the board, and the material or information shall be withheld from public inspection subject to the provisions of subparagraph 1.9(8)“b”(3). (1) Negotiated transportation rates and prices for natural gas supply. (2) Reservation charges for portfolio gas supply contracts. (3) Terms and prices for all hedging activity, including financial hedges and weather-related information. (4) Sales data by individual natural gas customer. (5) Natural gas purchase volumes by individual receipt point, by pipeline. (6) Specific gas costs included in interstate pipeline contracts and contracted volume quantities, invoices, commodity contracts, and individual commodity purchases and invoices. (7) Design day forecasting model reserve margin calculations for natural gas service. (8) Negotiated purchase prices for electric power, fuel, and transportation. (9) Electric customer-specific information. (10) Power supply bills in support of energy adjustment clause filings. (11) Network improvement and maintenance plans and related extensions and progress reports filed with the board pursuant to 199—subrule 39.7(3). (12) Wireless coverage area maps depicting signal strength filed with the board pursuant to 199—paragraph 39.3(2)“g.” (13) Revenue recovery amounts and loop or line count data filed with the board pursuant to 199—subrule 39.7(2). (14) Financial reports and loop or line count data included in rate floor data filed with the board pursuant to 199—subrule 39.7(3). (15) Loop or line count data included in rate floor data updates filed with the board pursuant to 199—subrule 39.7(4). (16) The financial records filed by applicants for certificates of convenience and necessity to provide competitive local exchange service. (17) The financial records, number of customers, and volumes filed by competitive natural gas providers in each company’s annual report. The aggregate total sales volume is not granted confidential treatment by this subparagraph. (18) The financial information regarding affiliate transactions required for rate-regulated utilities. This information is subject to staff and legal review to ensure the information protected is similar to other information included in this subparagraph. .(6) Requests that materials or information submitted to the board be withheld from public inspection. Any person submitting information or materials to the board may submit a request that part or all of the information or materials not be made available for public inspection pursuant to the following requirements.In addition, parties are required to redact protected information as defined in Iowa R. Elec. P. 16.602 and 16.603. a. Procedure.The materials to which the request applies shall be physically separated from any materials to which the request does not apply. The request shall be attached to the materials to which it applies. Each page of the materials to which the request applies shall be clearly marked confidential. b. Content of request.Each request shall contain a statement of the legal basis for withholding the materials from inspection and the facts to support the legal basis relied upon. The facts underlying the legal basis shall be supported by affidavit executed by a corporate officer (or by an individual, if not a business entity) with personal knowledge of the specific facts. If the request is that the materials be withheld from inspection for a limited period of time, the period shall be specified. c. Compliance.If a request complies with the requirements of paragraphs “a” and “b” of this subrule, the materials will be temporarily withheld from public inspection. The board will examine the documentsinformation to determine whether the documentsinformation should be afforded confidentiality. If the request is granted, the ruling will be placed in a public file in lieu of the materials withheld from public inspection. d. Request denied.If a request for confidentiality is denied, the documentsinformation will be held confidential for 14 days to allow the applicant an opportunity to seek injunctive relief. After the 14 days expire, the materials will be available for public inspection, unless the board is directed by a court to keep the information confidential. .(7) Procedures for thephysical inspection of commissionboard records which are routinely available for public inspection. The records in question must be reasonably described by the person requesting them to permit their location by staff personnel. Members of the public will not be given access to the area in which records are kept and will not be permitted to search the files.Advance requests to have records available on a certain date may be made by telephone or by correspondence. a. Search fees.An hourly fee willmay be charged for searching for requested records. The fee will be based upon the pay scale of the employee who makes the search. No search fee will be charged if the records are not located, the records are not made available for inspection, or the search does not exceed one-quarter hour in duration. b. Written request.Written requests should list the telephone number (if any) of the person making the request, and for each document requested should set out all available information which would assist in identifying and locating the document. The request should also set out the maximum search fee the person making the request is prepared to pay. If the maximum search fee is reached before all of the requested documents have been located and copied, the requesting person will be notified. When the requesting person requests that the board mail copies of the materials, postage and handling expenses should also be included. c. Procedure for written request.The records will be produced for inspection at the earliest possible date following a request. Records should be inspected within seven days after notice is given that the records have been located and are available for inspection. After seven days, the records will be returned to storage and additional charges may be imposed for having to produce them again. d. Copies.Copies of public records may be made in the board’s records and information center and the charge shall be the actual copying cost. .(8) Procedures for the inspection of board records which are not routinely available for public inspection. Any person desiring to inspect board records which are not routinely available for public inspection shall file a request for inspection meeting the requirements of this subrule. a. Content of request.The records must be reasonably described by the person requesting them, so as to permit their location by staff personnel. Requests shall be directed to the executive secretary of the board. b. Procedure.Requests for inspection shall be acted upon as follows: (1) If the board is prohibited from disclosing the records, the request for inspection will be denied with a statement setting forth the specific grounds for denial. (2) If the board is prohibited from disclosing part of a document from inspection, that part will be deletedredacted and the remainder will be made available for inspection. (3) In the case of requests to inspect records not routinely available for public inspection under 1.9(5)“a”(1), 1.9(5)“a”(3), and 1.9(5)“c,” the board will notify all interested parties of the request to view the materials. The board will withhold the materials from public inspection for 14 days to allow the party who submitted the materials an opportunity to seek injunctive relief. If injunctive relief is not requested within this period, the records will be produced for inspection. Requests to review materials not routinely available for public inspection under any other category of paragraph 1.9(5)“a” will be acted upon by the board. If the request is granted by the board, or is partially granted and partially denied, the person who submitted the records to the board will be afforded 14 days from the date of the written ruling in which to seek injunctive relief. If injunctive relief is not requested within this period, the records will be produced for inspection.

ITEM 11. Amend subrule 1.9(12) as follows: 1.9(12) Data processing system. TheAs required by Iowa Code section 22.11(1)“g,” the board does not currently have a data processing system which matches, collates, or permits the comparison of personally identifiable information in one record system with personally identifiable information on another record system.ARC 2956CUtilities Division[199]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Pursuant to Iowa Code sections 17A.4, 474.5, and 476.2, the Utilities Board (Board) gives notice that on February 10, 2017, the Board issued an order in Docket No. RMU-2016-0007, In re: Service Supplied by Gas Utilities [199 IAC Chapter 19], “Order Commencing Rule Making,” that identifies and updates or eliminates those rules the Board has determined to be outdated, redundant, or inconsistent with statutes or other administrative rules. In addition, the Board has proposed certain substantive amendments, including substantive amendments to the natural gas customer service and infrastructure investment rules. To develop the proposed amendments, the Board sought early input from stakeholders. Stakeholder comments were filed by the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice; Black Hills/Iowa Gas Utility, LLC, d/b/a Black Hills Energy (BHE); Interstate Power and Light Company (IPL); MidAmerican Energy Company (MidAmerican); the Iowa Association of Municipal Utilities (IAMU); and Iowa Legal Aid. The Board also received joint comments from IPL, BHE, MidAmerican, and Liberty Utilities (Midstates Natural Gas) Corp. d/b/a Liberty Utilities (Liberty) specifically regarding the capital infrastructure investment automatic adjustment mechanism (i.e., Tracker) in 199—19.18(476). ITC Midwest LLC also filed an appearance in this matter to monitor the docket but did not file comments. The Board received numerous comments from all of the parties in response to the potential changes to rule 199—19.4(476) that the Board proposed in its August 8, 2016, order requesting stakeholder comment. In response to those comments, the Board is proposing to allow utilities additional electronic communications to customers. The Board supports the adoption of electronic communications due to the convenience and lower costs of such methods. The Board also considers that certain safeguards are needed for those customers who do not have Internet access or do not desire electronic communications and for those specific types of notices that are of a more critical nature. The Board has attempted to strike a balance with the proposed amendments. The Board is proposing to renumber the requirements in subrule 19.4(10) (renumbered herein as 19.4(11)). The Board notes that its general intent with these changes is to make the required terms of the payment agreements clearer and more readily accessible. The Board is not proposing significant changes to the requirements. The Board is changing the references to agreements whereby a customer pays a specific amount each month that is reconciled on a periodic basis from “level payment plan” to “budget billing plan.” The Board does not consider that this change will create additional confusion or require additional definitions but welcomes additional feedback if parties have reason to believe otherwise. The Board is proposing amendments to subrule 19.4(15) to allow the posting of the disconnection notice on a conspicuous place other than the door in situations where either the door is not accessible or where it is readily apparent that another place is the best place for such notice. The Board agrees the door should be the default option. Currently, the Board’s rule that allowed natural gas utilities to file for approval of an automatic adjustment mechanism to recover the costs of certain capital infrastructure investments has sunsetted. Comments were filed by stakeholders addressing the establishment of a permanent rule that would reinstate such a mechanism, known as a Tracker. The Board is proposing amendments to establish a Tracker with certain changes from the Tracker that is in the Board’s current rule 199—19.18(476). These changes establish specific requirements for a Tracker mechanism and limit recovery of expenses for up to five years’ worth of projects between rate cases. While a utility could continue to recover investments from those five years into subsequent years, no new capital cost could be recovered until the utility has a general rate proceeding and the Tracker resets. In addition, the proposed amendments establish the cost of debt as the return on the investments in the Tracker and the cost of debt is to be based on the utility’s most recent general gas or electric rate case. Finally, the Board is also proposing to simplify the eligibility requirements by focusing on safety-related projects and streamlining the recovery process by requiring projects to be preapproved for eligibility. The order approving this Notice of Intended Action can be found on the Board’s Electronic Filing System (EFS) Web site, http://efs.iowa.gov, in Docket No. RMU-2016-0007. Pursuant to Iowa Code sections 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendments. The statement must be filed on or before March 21, 2017. The statement should be filed electronically through the Board’s EFS. Instructions for making an electronic filing can be found on the EFS Web site at http://efs.iowa.gov. Filings shall comply with the format requirements in 199 IAC 2.2(2) and shall clearly state the author’s name and address and make specific reference to Docket No. RMU-2016-0007. Paper comments may only be filed with approval of the Board. An opportunity for interested persons to present oral comments on the proposed amendments will be held at 9 a.m. on April 20, 2017, in the Board’s hearing room at 1375 E. Court Avenue, Room 69, Des Moines, Iowa. Persons with disabilities who require assistive services or devices to observe or participate should contact the Board at (515)725-7334 at least five days in advance of the scheduled date to request that appropriate arrangements be made. After analysis and review, the Board tentatively concludes that the proposed amendments, if adopted, will not have a detrimental effect on employment in Iowa. These amendments are intended to implement Iowa Code sections 476.2, 476.6, 476.8, 476.18, 476.20, 476.54, and 546.7. The following amendments are proposed.

ITEM 1. Amend subrule 19.2(3) as follows: 19.2(3) Form and identification. All tariffs shall conform to the following rules: a. The tariff shall be printed, typewritten or otherwise reproduced on 8½- × 11- inch sheets of durable white paper so as to result in a clear and permanent record. The sheets of the tariff should be ruled or spaced to set off a border on the left side suitable for binding. In the case of utilities subject to regulation by any federal agency, the format of sheets of tariff as filed with the board may be the same format as is required by the federal agency provided that the rules of the board as to title page; identity of superseding, replacing or revision sheets; identity of amending sheets; identity of the filing utility, issuing official, date of issue, effective date; and the words, “Gas Tariff Filed with Board” shall apply in the modification of the federal agency format for the purposes of filing with this board.Pursuant to 199—subrule 14.5(5), tariffs filed electronically shall be formatted in accordance with this rule. b. The title page of every tariff and supplement shall show: (1) The first page shall be the title page which shall show:(Name of Public Utility)Gas TariffFiled withIowa Utilities Board(date)(This requirement does not apply to tariffs or amendments filed with the board prior to April 1, 1982.) (2) When a tariff is to be superseded or replaced in its entirety, the replacing tariff shall show on the upper right corner of its title page that it is a revision of a tariff on file and the number being superseded or replaced, for example:Tariff No. Supersedes Tariff No. (This requirement does not apply to tariffs or amendments filed with the board prior to April 1, 1982.) (3) When a new part of a tariff eliminates an existing part of a tariff it shall so state and clearly identify the part eliminated. (4) Any tariff modifications as defined in “3” above replacing tariff sheets shall be marked in the right margin with symbols as herein described to indicate the place, nature and extent of the change in text.SymbolMeaning(C)A change in regulation(D)A discontinued rate, treatment or regulation(I)An increased rate or new treatment resulting in increased rate(N)A new rate, treatment or regulation(R)A reduced rate or new treatment resulting in a reduced rate(T)A change in text but no change in rate, treatment or regulation c. All sheets except the title page shall have, in addition to the above-stated requirements, the following information: (1) Name of utility under which shall be set forth the words “Filed with Board.” If the utility is not a corporation, and a trade name is used, the name of the individual or partners must precede the trade name. (2) Issuing official and issue date. (3) Effective date (to be left blank by rate-regulated utilities). d. All sheets except the title page shall have the following form:(Company Name)(Part identification) Gas Tariff(This sheet identification)Filed with board(Canceled sheet identification, if any)(Content of tariff)Issued: (Date)Effective:Issued by: (Name, title)(Proposed Effective Date:)The issued date is the date the tariff or the amended sheet content was adopted by the utility.The effective date will be left blank by rate-regulated utilities and shall be determined by the board. The utility may propose an effective date.

ITEM 2. Amend paragraph 19.3(1)"e" as follows: e. This rule shall not be construed to prohibit any utility from requiring more extensive individual metering than otherwise required by this rule ifrequired pursuant to tariffs filed with and approved by the board.

ITEM 3. Rescind and reserve subrule 19.3(4).

ITEM 4. Amend subrule 19.3(5) as follows: 19.3(5) Meter register. If it is necessary to apply a multiplier to the meter readings, the multiplier must be marked on the face of the meter register or stenciled in weather resistant paint upon the front cover of the meter. Where remote meter reading is used, whether outdoor on-premises or off-premises-automated, the customers shall have a readable meter register at the meter as a means of verifying the accuracy of bills presented to them.A utility may comply with the requirements of this subrule by making the required information available via the Internet or other equivalent means.

ITEM 5. Amend subrule 19.3(6) as follows: 19.3(6) Prepayment meters. Prepayment meters shall not be geared or set so as to result in the charge of a rate or amount higher than would be paid if a standard type meter were used, except under such special rate schedule as may be filed under 19.2(4)tariffs approved by the board.

ITEM 6. Amend subrule 19.3(7) as follows: 19.3(7) Meter reading and billing interval. Readings of all meters used for determining charges and billings to customers shall be scheduled at least monthly and for the beginning and termination of service. Bills to larger customers may, for good cause, be rendered weekly or daily for a period not to exceed one month. Intervals other than monthly shall not be applied to smaller customers, or to larger customers after the initial month provided above, without an exemptiona waiver from the board. A waiver request must include the information required by 199—1.3(17A,474,476,78GA,HF2206). If the board denies a waiver, or if a waiver is not sought with respect to a large volume customer after the initial month, that customer’s bill shall be rendered monthly for the next 12 months, unless prior approval is received from the board for a shorter interval. The group of larger customers to which shorter billing intervals may be applied shall be specified in the utility’s tariff sheets, but shall not include residential customers.An effort shall be made to obtain readings of the meters on corresponding days of each meter-reading period. The utility rules may permit the customer to supply the meter readings by telephone, by electronic means, or on a form supplied by the utility. The utility may arrange for customer meter reading forms to be delivered to the utility by United States mail, electronically, or by hand delivery.The utility may arrange for the meter to be read by electronic means. Unless the utility has a plan to test check meter readings, a utility representative shall physically read the meter at least once each 12 months and when the utility is notified there is a change of customer.The utility may arrange for the meter to be read by electronic means. Unless the utility has a plan to test check electronic meter readings, a utility representative shall physically read the meter at least once every 12 months.

ITEM 7. Rescind and reserve subrule 19.3(9).

ITEM 8. Amend paragraph 19.3(10)"a", definition of “Contribution in aid of construction,” as follows: "Contribution in aid of construction," as used in this subrule, means a nonrefundable cash payment grossed-up for the income tax effect of such revenue covering the costs of a distribution main extension or service line that are in excess of costs paid by the utility. The amount of tax shall be reduced by the present value of the tax benefits to be obtained by depreciating the property in determining the tax liability.

ITEM 9. Amend paragraphs 19.3(10)"e" and 19.3(10)"f" as follows: e. Extensions not required.Utilities shall not be required to make distribution main extensions or attach service lines as described in this subrule, unless the distribution main extension or service line shall be of a permanent nature.When the utility renders a temporary service to a customer, the utility may require that the customer bear all of the cost of installing and removing the service in excess of any salvage realized. f. Different payment arrangement.This subrule shall not be construed as prohibiting any utility from making a contract with a customer using a different payment arrangement, if the contract provides a more favorable payment arrangement to the customer, so long as no discrimination is practiced amongsimilarly situated customers.

ITEM 10. Amend paragraphs 19.4(1)"c", 19.4(1)"d" and 19.4(1)"f" as follows: c. Notify customers affected by a change in rates or schedule classification in the manner provided in the rules of practice and procedure before the board. (199—7.4(476)199—26.5(476)) d. Post a notice in a conspicuous place in each office of the utility where applications for service are received, informing the public that copies of the rate schedules and rules relating to the service of the utility, as filed with the board, are available for public inspection. If the utility provides access to its rate schedules and rules for service on its Web site, the notice shouldshall include the Web site address. f. State, on the bill form, that tariff and rate schedule information is available upon request at the utility’s local business office.If the utility provides access to its tariff and rate schedules on its Web site, the statement shall include the Web site address.

ITEM 11. Rescind paragraph 19.4(1)"i" and subrule 19.4(14).

ITEM 12. Renumber subrules 19.4(2) to 19.4(13) as 19.4(3) to 19.4(14).

ITEM 13. Adopt the following new subrule 19.4(2): 19.4(2) Customer contact employee qualifications. Each utility shall promptly and courteously resolve inquiries for information or complaints. Employees who receive customer telephone calls and office visits shall be qualified and trained in screening and resolving complaints, to avoid a preliminary recitation of the entire complaint to employees without ability and authority to act. The employee shall provide identification to the customer that will enable the customer to reach that employee again if needed.Each utility shall notify its customers, by bill insert or notice on the bill form, of the address and telephone number where a utility representative qualified to assist in resolving the complaint can be reached. The bill insert or notice shall also include the following statement: “If (utility name) does not resolve your complaint, you may request assistance from the Iowa Utilities Board by calling (515)725-7321 or toll-free 1-877-565-4450, or by writing to 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319-0069, or by e-mail to customer@iub.iowa.gov.”The bill insert or notice for municipal utilities shall include the following statement: “If your complaint is related to service disconnection, safety, or renewable energy, and (utility name) does not resolve your complaint, you may request assistance from the Iowa Utilities Board by calling (515)725-7321, or toll-free 1-877-565-4450, by writing to 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319-0069, or by e-mail to customer@iub.iowa.gov.”The bill insert or notice on the bill form shall be provided monthly by utilities serving more than 50,000 Iowa retail customers and no less than annually by all other natural gas utilities. Any utility which does not use the standard statement described in this subrule shall file its proposed statement in its tariff for approval. A utility that bills by postcard may place an advertisement in a local newspaper of general circulation or a customer newsletter instead of a mailing. The advertisement must be of a type size that is easily legible and conspicuous and must contain the information set forth above.

ITEM 14. Amend renumbered subrule 19.4(7) as follows: 19.4(7) Deposit refund. A deposit shall be refunded after 12 consecutive months of prompt payment (which may be 11 timely payments and one automatic forgiveness of late payment), unless the utility is entitled to require a new or additional deposit. For refund purposes, the account shall be reviewed after 12 months of service following the making of the deposit and for each 12-month interval terminating on the anniversary of the deposit. However, deposits received from customers subject to the exemptionwaiver provided by subrule 19.3(7), including surety deposits, may be retained by the utility until final billing. Upon termination of service, the deposit plus accumulated interest, less any unpaid utility bill of the customer, shall be reimbursed to the person who made the deposit.

ITEM 15. Amend renumbered subrule 19.4(9) as follows: 19.4(9) Customer bill forms. Each customer shall be informed as promptly as possible following the reading of the customer’s meter, on bill form or otherwise,of the following: a. The reading of the meter at the beginning and at the end of the period for which the bill is rendered. b. The dates on which the meter was read at the beginning and end of the billing period. c. The number and kind of units metered. d. The applicable rate schedule orwith the identification of the applicable rate scheduleclassification. e. The account balance brought forward and the amount of each net charge for rate-schedule-priced utility service, sales tax, other taxes, late payment charge, and total amount currently due. In the case of prepayment meters, the amount of money collected shall be shown. f. The last date for timely payment shall be clearly shown and shall be not less than 20 days after the bill is rendered. g. A distinct marking to identify an estimated bill. h. A distinct marking to identify a minimum bill. i. Any conversions from meter reading units to billing units, or any calculations to determine billing units from recording or other devices, or any other factors, such as sliding scale or automatic adjustment and amount of sales tax adjustments used in determining the bill.

ITEM 16. Amend renumbered subrule 19.4(10) as follows: 19.4(10) Customer billing information alternate. A utility serving fewer than 5000 gas customers may provide the information in 19.4(8)19.4(9) on bill form or otherwise. If the utility elects not to provide the information of 19.4(8)19.4(9) on the bill form, it shall advise the customer, on the bill form or by bill insert, that such information can be obtained by contacting the utility’s local office.

ITEM 17. Amend renumbered subrule 19.4(11) as follows: 19.4(11) Payment agreements. a. Availability of a first payment agreement.When a residential customer cannot pay in full a delinquent bill for utility service or has an outstanding debt to the utility for residential utility service and is not in default of a payment agreement with the utility, a utility shall offer the customer an opportunity to enter into a reasonable payment agreement. b. Reasonableness.Whether a payment agreement is reasonable will be determined by considering the current household income, ability to pay, payment history including prior defaults on similar agreements, the size of the bill, the amount of time and the reasons why the bill has been outstanding, and any special circumstances creating extreme hardships within the household. The utility may require the person to confirm financial difficulty with an acknowledgment from the department of human services or another agency. c. Terms of payment agreements. (1) First payment agreement.The utility shall offer customers who have received a disconnection notice or have been disconnected 120 days or less and who are not in default of a payment agreement the option of spreading payments evenly over at least 12 months by paying specific amounts at scheduled times. The utility shall offer customers who have been disconnected more than 120 days and who are not in default of a payment agreement the option of spreading payments evenly over at least 6 months by paying specific amounts at scheduled times.The utility shall offer the following conditions to customers who have received a disconnection notice or have been previously disconnected and who are not in default of a payment agreement:

The agreement shall also include provision for payment of the current account. The agreement negotiations and periodic payment terms shall comply with tariff provisions which are consistent with these rules. The utility may also require the customer to enter into a level payment plan to pay the current bill.
When the customer makes the agreement in person, a signed copy of the agreement shall be provided to the customer.
The utility may offer the customer the option of making the agreement over the telephone or through electronic transmission. When the customer makes the agreement over the telephone or through electronic transmission, the utility shall render to the customer a written document reflecting the terms and conditions of the agreement within three days of the date the parties entered into the oral agreement or electronic agreement. The document will be considered rendered to the customer when addressed to the customer’s last-known address and deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the document shall be considered rendered to the customer when delivered to the last-known address of the person responsible for payment for the service. The document shall state that unless the customer notifies the utility within ten days from the date the document is rendered, it will be deemed that the customer accepts the terms as reflected in the written document. The document stating the terms and agreements shall include the address and a toll-free or collect telephone number where a qualified representative can be reached. By making the first payment, the customer confirms acceptance of the terms of the oral agreement or electronic agreement.
Each customer entering into a first payment agreement shall be granted at least one late payment that is made four days or less beyond the due date for payment and the first payment agreement shall remain in effect.

For customers who received a disconnection notice or have been disconnected less than 120 days and are not in default of a payment agreement, the utility shall offer an agreement with at least 12 monthly payments. For customers who have been disconnected more than 120 days and are not in default of a payment agreement, the utility shall offer an agreement with at least 6 monthly payments.
The agreement shall also include provision for payment of the current account.
The utility may also require the customer to enter into a budget billing plan to pay the current bill.
When the customer makes the agreement in person, a signed copy of the agreement shall be provided to the customer.
The utility may offer the customer the option of making the agreement over the telephone or through electronic transmission.
When the customer makes the agreement over the telephone or through electronic transmission, the utility shall provide to the customer a written document reflecting the terms and conditions of the agreement within three days of the date the parties entered into the oral agreement or electronic agreement.
The document will be considered rendered to the customer when addressed to the customer’s last-known address and deposited in the U.S. mail with postage paid. If delivery is by other than U.S. mail, the document shall be considered rendered to the customer when delivered to the last-known address of the person responsible for payment for the service.
The document shall state that unless the customer notifies the utility within ten days from the date the document is rendered, it will be deemed that the customer accepts the terms as reflected in the written document. The document stating the terms and agreements shall include the address and a toll-free or collect telephone number where a qualified representative can be reached.
By making the first payment, the customer confirms acceptance of the terms of the oral or electronic agreement.
Each customer entering into a first payment agreement shall be granted at least one late payment that is four days or less beyond the due date for payment, and the first payment agreement shall remain in effect.
The payment is due on the due date for the next regular bill.

(2) Second payment agreement. The utility shall offer a second payment agreement to a customer who is in default of a first payment agreement if the customer has made at least two consecutive full payments under the first payment agreement.

The second payment agreement shall be for the same term as orfor a term longer than the term of the first payment agreement.
The customer shall be required to pay for current service in addition to the monthly payments under the second payment agreement and may be required to make the first payment up-front as a condition of entering into the second payment agreement.
The utility may also require the customer to enter into a level paymentbudget billing plan to pay the current bill.

(3) Additional payment agreements.The utility may offer additional payment agreements to the customer. d. Refusal by utility.A customer may offer the utility a proposed payment agreement. If the utility and the customer do not reach an agreement, the utility may refuse the offer orally, but the utility must render a written refusal of the customer’s final offer, stating the reason for the refusal, within three days of the oral notification. The written refusal shall be considered rendered to the customer when addressed to the customer’s last-known address and deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the written refusal shall be considered rendered to the customer when handed to the customer or when delivered to the last-known address of the person responsible for the payment for the service.A customer may ask the board for assistance in working out a reasonable payment agreement. The request for assistance must be made to the board within ten days after the rendering of the written refusal. During the review of this request, the utility shall not disconnect the service.

ITEM 18. Amend renumbered subrule 19.4(12) as follows: 19.4(12) Bill payment terms. The bill shall be considered rendered to the customer when deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the bill shall be considered rendered when delivered to the last-known address of the party responsible for payment. There shall be not less than 20 days between the rendering of a bill and the date by which the account becomes delinquent. Bills for customers on more frequent billing intervals under subrule 19.3(7) may not be considered delinquent less than 5 days from the date of rendering. However, a late payment charge may not be assessed if payment is received within 20 days of the date the bill is rendered. a. The date of delinquency for all residential customers or other customers whose consumption is less than 250 ccf per month shall be changeable for cause in writing; such as, but not limited to, 15 days from approximate date each month upon which income is received by the person responsible for payment. In no case, however, shall the utility be required to delay the date of delinquency more than 30 days beyond the date of preparation of the previous bill. b. In any case where net and gross amounts are billed to customers, the difference between net and gross is a late payment charge and is valid only when part of a delinquent bill payment. A utility’s late payment charge shall not exceed 1.5 percent per month of the past due amount. No collection fee may be levied in addition to this late payment charge. This rule does not prohibit cost-justified charges for disconnection and reconnection of service. c. If the customer makes partial payment in a timely manner, and does not designate the service or product for which payment is made, the payment shall be credited pro rata between the bill for utility services and related taxes. d. Each account shall be granted not less than one complete forgiveness of a late payment charge each calendar year. The utility’s rules shall be definitive that on one monthly bill in each period of eligibility, the utility will accept the net amount of such bill as full payment for such month after expiration of the net payment period. The rules shall state how the customer is notified that the eligibility has been used. Complete forgiveness prohibits any effect upon the credit rating of the customer or collection of late payment charge. e. Level paymentBudget billing plan. Utilities shall offer a level paymentbudget billing plan to all residential customers or other customers whose consumption is less than 250 ccf per month. A level paymentbudget billing plan should be designed to limit the volatility of a customer’s bill and maintain reasonable account balances. The level paymentbudget billing plan shall include at least the following: (1) Be offered to each eligible customer when the customer initially requests service.The plan may be estimated if there is insufficient usage history to create a budget billing plan based on actual use. (2) Allow for entry into the level paymentbudget billing plan anytime during the calendar year. (3) Provide that a customer may request termination of the plan at any time. If the customer’s account is in arrears at the time of termination, the balance shall be due and payable at the time of termination. If there is a credit balance, the customer shall be allowed the option of obtaining a refund or applying the credit to future charges. A utility is not required to offer a new level paymentbudget billing plan to a customer for six months after the customer has terminated from a level paymentbudget billing plan. (4) Use a computation method that produces a reasonable monthly level paymentbudget billing amount, which may take into account forward-looking factors such as fuel price and weather forecasts, and that complies with requirements in 19.4(11)“e”(4)this subrule. The computation method used by the utility shall be described in the utility’s tariff and shall be subject to board approval. The utility shall give notice to customers when it changes the type of computation method in the level paymentbudget billing plan.The amount to be paid at each billing interval by a customer on a level paymentbudget billing plan shall be computed at the time of entry into the plan and shall be recomputed at least annually. The level paymentbudget billing amount may be recomputed monthly, quarterly, when requested by the customer, or whenever price, consumption, or a combination of factors results in a new estimate differing by 10 percent or more from that in use.When the level paymentbudget billing amount is recomputed, the level paymentbudget billing plan account balance shall be divided by 12, and the resulting amount shall be added to the estimated monthly level paymentbudget billing amount. Except when a utility has a level paymentbudget billing plan that recomputes the level paymentbudget billing amount monthly, the customer shall be given the option of applying any credit to payments of subsequent months’ level paymentbudget billing amounts due or of obtaining a refund of any credit in excess of $25.Except when a utility has a level paymentbudget billing plan that recomputes the level paymentbudget billing amount monthly, the customer shall be notified of the recomputed payment amount not less than one full billing cycle prior to the date of delinquency for the recomputed payment. The notice may accompany the bill prior to the bill that is affected by the recomputed payment amount. (5) Irrespective of the account balance, a delinquency in payment shall be subject to the same collection and disconnection procedures as other accounts, with the late payment charge applied to the level paymentbudget billing amount. If the account balance is a credit, the level paymentbudget billing plan may be terminated by the utility after 30 days of delinquency.

ITEM 19. Amend renumbered subrule 19.4(13) as follows: 19.4(13) Customer records. The utility shall retain customer billing records for the length of time necessary to permit the utility to comply with 19.4(13)19.4(14) but not less than threefive years.Customer billing records shall show, where applicable: a. Therm reading. b. Therm consumption. c. Meter reading. d. Total amount of bill.

ITEM 20. Amend renumbered subrule 19.4(14) by adopting the following new paragraph “f”: f. Credits and explanations. Credits due a customer because of meter inaccuracies, errors in billing, or misapplication of rates shall be separately identified.

ITEM 21. Amend subparagraph 19.4(15)"d", introductory paragraph, as follows: (3) The summary of the rights and responsibilities must be approved by the board. Any utility providing gas service and defined as a public utility in Iowa Code section 476.1 which does not use the standard form set forth below for customers billed monthly shall submit to the board an original and six copies ofelectronically its proposed form for approval. A utility billing a combination customer for both gas and electric service may modify the standard form to replace each use of the word “gas” with the words “gas and electric” in all instances.

ITEM 22. Amend subparagraph 19.4(15)"d", Customer Rights and Responsibilities form, paragraph “7,” as follows:7. How will I be told the utility is going to shut off my gas service?a. You must be given a written notice at least 12 days before the utility service can be shut off for nonpayment. This notice will include the reason for shutting off your service.b. If you have not made payments required by an agreed-upon payment plan, your service may be disconnected with only one day’s notice.c. The utility must also try to reach you by telephone or in person before it shuts off your service. From November 1 through April 1, if the utility cannot reach you by telephone or in person, the utility will put a written notice on the dooror another conspicuous place of your residence to tell you that your utility service will be shut off.

ITEM 23. Amend subparagraph 19.4(15)"d" as follows: (4) When disconnecting service to a residence, made a diligent attempt to contact, by telephone or in person, the customer responsible for payment for service to the residence to inform the customer of the pending disconnection and the customer’s rights and responsibilities. During the period from November 1 through April 1, if the attempt at customer contact fails, the premises shall be posted at least one day prior to disconnection with a notice informing the customer of the pending disconnection and rights and responsibilities available to avoid disconnection.If an attempt at personal or telephone contact of a customer occupying a rental unit has been unsuccessful, the landlord of the rental unit, if known, shall be contacted to determine if the customer is still in occupancy and, if so, the customer’s present location. The landlord shall also be informed of the date when service may be disconnected.The landlord shall be notified at least 48 hours prior to disconnection of service to a tenant.If the disconnection will affect occupants of residential units leased from the customer, the premises of any building known by the utility to contain residential units affected by disconnection must be posted, at least two days prior to disconnection, with a notice informing any occupants of the date when service will be disconnected and the reasons for the disconnection.

ITEM 24. Amend subparagraph 19.4(15)"d" as follows: (7) Severe cold weather. A disconnection may not take place where gas is used as the only source of space heating or to control or operate the only space heating equipment at thea residence on any day when theactual temperature or the 24-hour forecast of the National Weather Service forecast for the following 24 hours covering the area in which the residence is located includes a forecast that the temperature willresidence’s area is predicted to be 20 degrees Fahrenheit or colder. In any case whereIf the utility hasproperly posted a disconnect notice in compliance with subparagraph 19.4(15)“d”(4) but is precluded from disconnecting service because of a National Weather Service forecastsevere cold weather, the utility may immediately proceed with appropriate disconnection procedures, without further notice, when the temperature in theresidence’s area where the residence is located rises above 20 degrees Fahrenheit and is forecasted to beremain above 20 degrees Fahrenheit for at least 24 hours, unless the customer has paid in full the past due amount or isotherwise entitled to postponement of disconnection.under some other provision of paragraph 19.4(15)“d.”

ITEM 25. Amend paragraph 19.4(15)"f" as follows: f. A utility may disconnect gas service without the written 12-day notice for failure of the customer to comply with the terms of a payment agreement, except as provided in numbered paragraph 19.4(10)“c”(1)“4,”19.4(11)“c”(1)“4,” provided the utility complies with the provisions of paragraph 19.4(15)“d.”

ITEM 26. Amend subrule 19.4(16) as follows: 19.4(16) Insufficient reasons for denying service. The following shall not constitute sufficient cause for refusal of service to a customer: a. Delinquency in payment for service by a previous occupant of the premises to be served. b. Failure to pay for merchandise purchased from the utility. c. Failure to pay for a different type or class of public utility service. d. Failure to pay the bill of another customer as guarantor thereof. e. Failure to pay the back bill rendered in accordance with paragraph 19.4(13)“b”19.4(14)“b” (slow meters). f. Failure to pay adjusted bills based on the undercharges set forth in paragraph 19.4(13)“e.”19.4(14)“e.” g. Failure of a residential customer to pay a deposit during the period November 1 through April 1 for the location at which the customer has been receiving servicein the customer’s name. h. Delinquency in payment for service by an occupant, if the customer applying for service is creditworthy and able to satisfy any deposit requirements. i. Delinquency in payment for service arising more than ten years prior, as measured from the most recent of the last date of service, physical disconnection of service, or the last voluntary payment or written voluntary promise of payment made by the customer prior to the expiration of the ten-year period.

ITEM 27. Amend subrule 19.6(6) as follows: 19.6(6) Referee tests. Upon written request by a customer or utility, the board will conduct a referee test of a meter. A test need not be made more frequently than once in 18 months. The customer request shall be accompanied by a $30 deposit in the form of a check or money order made payable to the utility.Within 5 days of receipt of the written request and payment, the board shall forward the deposit to the utility and notify the utility of the requirement for a test. The utility shall, within 30 days after notification of the request, schedule the date, time and place of the test with the board and customer. The meter shall not be removed or adjusted before the test. The utility shall furnish all testing equipment and facilities for the test. If the tested meter is found to be more than 2 percent fast or 2 percent slow, the deposit will be returned to the party requesting the test and billing adjustments shall be made as required in 19.4(13)19.4(14). The board shall issue its report within 15 days after the test is conducted, with a copy to the customer and the utility.

ITEM 28. Amend subrule 19.10(1) as follows: 19.10(1) Purchased gas adjustment clause. PurchasedPursuant to Iowa Code section 476.6(11), purchased gas adjustments shall be computed separately for each customer classification or grouping previously approved by the board. Purchased gas adjustments shall use the same unit of measure as the utility’s tariffed rates. Purchased gas adjustments shall be calculated using factors filed in annual or periodic filings according to the following formula:PGA = (C × Rc) + (D × Rd) + (Z × Rz) + Rb + ESPGA is the purchased gas adjustment per unit.S is the anticipated yearly gas commodity sales volume for each customer classification or grouping.C is the volume of applicable commodity purchased or transported for each customer classification or grouping required to meet sales, S, plus the expected lost and unaccounted for volumes.Rc is the weighted average of applicable commodity prices or rates, including appropriate hedging tools costs, to be in effect September 1 corresponding to purchases C.D is the total volume of applicable entitlement reservation purchases required to meet sales, S, for each customer classification or grouping.Rd is the weighted average of applicable entitlement reservation charges to be in effect September 1 corresponding to purchases D.Z is the total quantity of applicable storage service purchases required to meet sales, S, for each customer classification or grouping.Rz is the weighted average of applicable storage service rates to be in effect September 1 corresponding to purchases Z.Rb is the adjusted amount necessary to obtain the anticipated balance for the remaining PGA year calculated by taking the anticipated PGA balance divided by the forecasted volumes, including storage, for one or more months of the remaining PGA year.E is the per unit overcollection or undercollection adjustment as calculated under subrule 19.10(7).The components of the formula shall be determined as follows for each customer classification or grouping: a. The actual sales volumes S for the prior 12-month period ending May 31, with the necessary degree-day adjustments, and further adjustments approved by the board.Unless a utility receives prior board approval to use another methodology, a utility shall use the same weather normalization methodology used in prior approved PGA and rate case. b. The annual expected lost and unaccounted for factors shall be calculated by determining the actual difference between sales and purchase volumes for the 12 months ending May 31 or from the current annual IG-1 filing, but in no case will this factor be less than 0. c. The purchases C, D, and Z which will be necessary to meet requirements as determined in 19.10(1). d. The purchased gas adjustments shall be adjusted prospectively to reflect the final decision issued by the board in a periodic review proceeding.

ITEM 29. Amend subrule 19.10(7) as follows: 19.10(7) Reconciliation of underbillings and overbillings. The utility shall file with the board on or before October 1 of each year a purchased gas adjustment reconciliation for the 12-month period which began on September 1 of the previous year. This reconciliation shall be the actual net invoiced costs of purchased gas and appropriate financial hedging tools costs less the actual revenue billed through its purchased gas adjustment clause net of the prior year’s reconciliation dollars for each customer classification or grouping. Actual net costs for purchased gas shall be the applicable invoice costs from all appropriate sources associated with the time period of usage.Negative differences in the reconciliation shall be considered overbilling by the utility, and positive differences shall be considered underbilling. This reconciliation shall be filed with all worksheets and detailed supporting data for each particular purchased gas adjustment clause. Penalty purchases shall only be includable where the utility clearly demonstrates a net savings. a. The annual reconciliation filing shall include the following information concerning the hedging tools used by the utility: (1) The type and volume of physical gas being hedgedby the utility and the strategies used by the utility for hedging. (2) The reason the hedgeeach hedging strategy was undertaken (e.g., to hedge storage gas, a floating price contract). (3) A statement as to how each hedging strategy was consistent with the local distribution company’s natural gas procurement plan. (4) An explanation as to why the local distribution company believes each hedging strategy was in the best interest of general system customers. (3) (5) A detailed explanation of theinstruments used to implement each hedging strategy (e.g., costless collar, straddled costless collar, purchasing or selling optionsfixed-price purchases, future contracts, basis swaps, fixed-price swaps, call options, put options, option collars). (4) The date the futures contract or option was purchased or the date the swap was entered into. (5) The spot price of gas at the time the hedge was made, including an explanation of how the spot price was determined including the index or indices used. (6) The amount of all commissions paid and to whom those payments were made. (7) All administrative costs associated with the hedge. (8) The name(s) of all marketers used and the amount of money paid to each marketer. (9) The amount of savings or costs resulting from the hedge. (10) (7) The amount of money tied upor other collateral held in margin accounts for futures trading and the cost of that moneyor provided to counterparties as credit support for hedging transactions. (8) The amount of all other third-party administrative or contracting costs paid and to whom those costs were paid. (9) The name of each hedging counterparty and the amount of money paid to or received from each counterparty with respect to hedging (e.g., option premiums, financial settlement of gains or losses). (10) Detailed reports or schedules of each hedging strategy, including the following information for each hedging instrument entered into by the utility:

The type of hedging instrument.
The date on which the hedging instrument was entered into by the utility.
The name of the counterparty with whom the hedging instrument was entered into.
The notional quantity of natural gas associated with the hedging instrument.
The notional delivery period associated with the hedging instrument.
The total amount of gains or losses realized by the utility on the hedging instrument.
For each futures contract or fixed-price purchase or sale, the fixed price paid or received by the utility and the final settlement price for the futures contract.
For each swap contract, the fixed price or index price paid by the utility, the index price or fixed price received by the utility, and the final settlement price of each applicable index referenced in the swap contract.
For each option contract, the underlying futures contract or index price referenced in the option contract, the strike price for the option, the premium paid or received by the utility for the option, and the final settlement price for the futures contract or index price referenced in the option.
For any other hedging instruments, relevant economic terms, conditions, reference prices, and other factors to support calculations of gains or losses associated with such instruments.
For the total natural gas volumes hedged during the PGA year, the fully hedged price of gas and the price if the gas had not been hedged.

(11) The premium paid for each option. (12) The strike price of each option. (13) The contracting costs for each swap transaction. (14) The name of the fixed-price payer in a swap transaction. (15) A statement as to how the hedge is consistent with the LDC’s natural gas procurement plan. (16) An explanation as to why the LDC believes the hedge was in the best interest of general system customers. (17) All invoices, work papers, and internal reports associated with the hedge. b. Any underbilling determined from the reconciliation shall be collected through ten-month adjustments to the appropriate purchased gas adjustment. The underbilling generated from each purchased gas adjustment clause shall be divided by the anticipated sales volumes for the prospective ten-month period beginning November 1 (based upon the sales determination in subrule 19.10(1)).The quotient, determined on the same basis as the utility’s tariff rates, shall be added to the purchased gas adjustment for the prospective ten-month period beginning November 1. c. Any overbilling determined from the reconciliation shall be refunded to the customer classification or grouping from which it was generated. The overbilling shall be divided by the annual cost of purchased gas subject to recovery for the 12-month period which began the prior September 1 for each purchased gas adjustment clause and applied as follows: (1) If the net overbilling from the purchased gas adjustment reconciliation exceeds 3 percentthe applicable percentage of the annual cost of purchased gas subject to recovery for a specific customer classification or grouping, the utility shall refund the overbilling by bill credit or check starting on the first day of billing in the November billing cycle of the current year. The minimum amount to be refunded by check shall be $10. Interest shall be calculated on amounts exceeding 3 percentthe applicable percentage from the PGA year midpoint to the date of refunding. The interest rate shall be the dealer commercial paper rate (90-day, high-grade unsecured notes) quoted in the “Money Rates” section of the Wall Street Journal on the last working day of August of the current year. (2) If the net overbilling from the purchased gas adjustment reconciliation does not exceed 3 percentthe applicable percentage of the annual cost of purchased gas subject to recovery for a specific customer classification or grouping, the utility may refund the overbilling by bill credit or check starting on the first day of billing in the November billing cycle of the current year, or the utility may refund the overbilling through ten-month adjustments to the particular purchased gas adjustment from which they were generated. The minimum amount to be refunded by check shall be $10. This adjustment shall be determined by dividing the overcollection by the anticipated sales volume for the prospective ten-month period beginning November 1 as determined in subrule 19.10(1) for the applicable purchased gas adjustment clause. The quotient, determined on the same basis as the utility’s tariff rates, shall be a reduction to that particular purchased gas adjustment for the prospective ten-month period beginning November 1. (3) The overbilling percentage applicable to utilities serving fewer than 10,000 customers is 10 percent. For utilities serving 10,000 or more customers, the applicable percentage is 3 percent. d. When a customer has reduced or terminated system supply service and is receiving transportation service, any liability for overcollections and undercollections shall be determined in accordance with the utility’s gas transportation tariff.

ITEM 30. Amend rule 199—19.11(476), catchwords, as follows:

199—19.11(476) Periodic review of gas procurement practices [476.6(15)].

ITEM 31. Amend subrule 19.11(1) as follows: 19.11(1) Procurement plan. ThePursuant to Iowa Code section 476.6(11), the board shall periodically conduct a contested case proceeding for the purpose of evaluating the reasonableness and prudence of a rate-regulated public utility’s natural gas procurement and contracting practices. The board shall provide the utilities 90 days’ notice of the requirement to file a procurement plan. In the years in which the board does not conduct a contested case proceeding, the board may require the utilities to file certain information for the board’s review. In years in which the board conducts a full proceeding, a rate-regulated utility shall file prepared direct testimony and exhibits in support of a detailed 12-month plan and a 3-year natural gas procurement plan. A utility’s procurement plan shall be organized as follows and shall include: a. An index of all documents and information filed in the plan and identification of the board files in which documents incorporated by reference are located. b. All contracts and gas supply arrangements executed or in effect for obtaining gas and all supply arrangements planned for the future 12-month and 3-year periods.A description of the utility’s natural gas forecasting, procurement, and contracting practices; available supply options; and other available services (e.g., storage services, balancing services). c. An exhibit detailing the utility’s current, 12-month, and 3-year forecasts of total annual throughput, peak day demand, and anticipated reserve margin on a PGA-year basis by customer class. c. d. An organizational description of the officer or division responsible for gas procurement and a summary of operating procedures and policies for procuring and evaluating gas contracts. d. e. A summary of the legal,and regulatory, and commercial actions taken to minimize purchased gas costs. e. f. AllCopies of all studies or investigation reportssupporting the utility’s testimony or materially consideredby the utility in gas purchase contract or arrangementcontracting decisions during the plan periods. f. g. A complete list of all contracts executed since the last procurement reviewin effect at the time of the procurement plan filing.The list shall include the contract term, the applicable service, and the contracted quantities. g. A list of other unbundled services available (for example, storage services if offered). h. A description of the supply options selectedby the utility and an evaluation of the reasonableness and prudence of itscontracting and procurement decisions. This evaluation should show the relationship between forecast and procurement.

ITEM 32. Renumber subrules 19.11(4) to 19.11(6) as 19.11(2) to 19.11(4).

ITEM 33. Amend renumbered subrule 19.11(4), introductory paragraph, as follows: 19.11(4) Executive summary. On or before August 1, 2003of each year, each natural gas utility shall file an executive summary and index of all standard and special contracts in effect for the purchase, sale or interchange of gas. On or before August 1 each year thereafter, each natural gas utility shall file an update of the executive summary and index showing the standard and special contracts in effect on that date for the purchase, sale or interchange of gas. The executive summary shall include the following information:

ITEM 34. Amend paragraph 19.12(2)"a" as follows: a. Natural gas utility companies may offer discounts to individual customers, to selected groups of customers, or to an entire class of customercustomers. However, discounted rates must be offered to all directly competing customers in the same service territory. Customers are direct competitors if they make the same end product (or offer the same service) for the same general group of customers. Customers that only produce component parts of the same end product are not directly competing customers.

ITEM 35. Amend subrule 19.12(4) as follows: 19.12(4) Reporting requirements. Eachrate-regulated natural gas utility electing to offer flexible rates shall file annual reports with the board within 30 days of the end of each 12 months. Reports shall include the following information:report flexible-rate activity in the utility’s annual report filed with the board. a. Section 1 of the report concerns discounts initiated in the last 12 months. For all discounts initiated in the last 12 months, the report shall include: (1) The identity of the new customers (by account number, if necessary); (2) The value of the discount offered; (3) The cost-benefit analysis results; (4) The cost of alternate fuels available to the customer, if relevant; (5) The volume of gas sold to or transported for the customer in the preceding 12 months; and (6) A copy of all new or revised flexible rate contracts executed between the utility and its customers. b. Section 2 of the report relates to overall program evaluation. For all discounts currently being offered, the report shall include: (1) The identity of each customer (by account number, if necessary); (2) The total volume of gas sold or transported in the last 12 months to each customer at discounted rates, by month; (3) The volume of gas sold or transported to each customer in the same 12 months of the preceding year, by month; (4) The dollar value of the discount in the last 12 months to each customer, by month; (5) The dollar value of volumes sold or transported to each customer for each of the previous 12 months; and (6) If customer charges are discounted, the dollar value of the discount shall be separately reported. c. Section 3 of the report concerns discounts denied or discounts terminated. For all customers specifically evaluated and denied or having a discount terminated in the last 12 months, the report shall include: (1) Customer identification (by account number, if necessary); (2) The volume of gas sold or transported in the last 12 months to each customer, by month; (3) The volume of gas sold or transported to each customer in the same 12 months of the preceding year, by month; and (4) The dollar value of volumes sold or transported to each customer for each of the past 12 months. d. No report is required if the utility had no customers receiving a discount during the relevant period and had no customers which were evaluated for the discount and rejected during the relevant period.

ITEM 36. Amend subrule 19.12(5) as follows: 19.12(5) Rate case treatment. In a rate case, 50 percent of any identifiable increase in net revenues will be used to reduce rates for all customers; the remaining 50 percent of the identifiable increase in net revenues may be kept by the utility. If there is a decrease in revenues due to the discount, the utility’s test year revenues will be adjusted to remove the effects of the discount by assuming that all sales or transportation services or customer charges were providedmade at full tariffed raterates for the customer class. Determining the actual amount will be a factual determination to be made in the rate case.

ITEM 37. Amend subrule 19.13(3) as follows: 19.13(3) Transportation service charges. Transportation service shall be offered to at least the following classes: a. Interruptibledistribution service with system supply reserve. b. Interruptibledistribution service without system supply reserve. c. Firmdistribution service with system supply reserve. d. Firmdistribution service without system supply reserve.

ITEM 38. Amend subrule 19.13(4) as follows: 19.13(4) Transportation service charges and rates. All rates and charges for transportation shall be based on the cost of providing the service. a. “System supply reserve” service shall entitle the end-user to return to the system service to the extent of theinterstate pipeline capacity purchased. The charge shall be at least equal to the administrative costs of monitoring the service, plus any other costs (including but not limited to gas demand costs which are directly assignable to the end-user). b. End-users without system supply reserve service may only return to system service by paying an additional charge and are subject to the availability of adequate systeminterstate pipeline capacity. An end-user wishing to receive transportation service without system supply reserve must pay the utility for the discounted value of any contract between the utility and the end-user remaining in effect at the time of beginning transportation service. The discounted values shall include all directly assignable and identifiable costs (including but not limited to gas costs). c. The utility may require a reconnection charge when an end-user receiving transportation service without system supply reserve service requests to return to the system supply. The end-user shall return to the system and receive service under the appropriate classification as determined by the utility. d. The end-user electing to receive transportation service shall pay reasonable rates for any use of the facilities, equipment, or services of the transporting utility. e. Small volume transportation service. Rescinded IAB 4/28/04, effective 6/2/04. f. Optional plan filing. Rescinded IAB 4/28/04, effective 6/2/04.

ITEM 39. Amend subrule 19.13(5) as follows: 19.13(5) Reporting requirements. A natural gas utility shall file with the board two copies of each transportation contract entered into within 30 days of the date of executionbe required to provide a copy of information concerning transportation contracts upon request of the board, board staff, or the office of consumer advocate. The utility may delete any information identifying the end-user and replace it with an identification number. The utility shall promptly supply the deleted information if requested by the board staff. The deleted information may be filed with a request for confidentiality, pursuant to 199 Iowa Administrative Code rule 1.9(22).

ITEM 40. Amend subrule 19.14(1), definition of “Competitive natural gas provider,” as follows: "Competitive natural gas provider" "CNGP" means a person who takes title to natural gas and sells it for consumption by a retail end user in the state of Iowa, and it also means an aggregator as defined in Iowa Code section 476.86. CNGP includes an affiliate of an Iowa public utility. CNGP excludes the following:

A public utility which is subject to rate regulation under Iowa Code chapter 476.
A municipally owned utility which provides natural gas service within its incorporated area or within the municipal natural gas competitive service area, as defined in Iowa Code section 437A.3(21)“a”(1)437A.3(22)“a”(1), in which the municipally owned utility is located.

ITEM 41. Amend subrule 19.14(2) as follows: 19.14(2) General requirement to obtain certificate. A CNGP shall not provide competitive natural gas services to an Iowa retail end user without a certificate approved by the board pursuant to Iowa Code section 476.87. An exception to this requirement is a CNGP that has provided service to retail customers before April 25, 2001. A CNGP subject to this exception shall file for a certificate under the provisions of this rule on or before June 1, 2001, to continue providing service pending the approval of the certificate.

ITEM 42. Amend subrule 19.14(4) as follows: 19.14(4) Deficiencies and board determination. The board shall act on a certification application within 90 days unless it determines an additional 60 days is necessary. Applications will be considered complete and the 90-day period will commence when all required items are submitted. Applicants will be notified of deficiencies and given 30 days to complete applications. Applicants will be notified when their application is complete and the 90-day period commences.

ITEM 43. Amend paragraph 19.14(6)"a" as follows: a. Customer deposits.Compliance with the following provisions shall apply to customers whose usage does not exceed 2500 therms in any month or 10,000 therms in any consecutive 12-month period.Customer deposits – subrule 19.4(2)19.4(3).Interest on customer deposits – subrule 19.4(3)19.4(4).Customer deposit records – subrule 19.4(4)19.4(5).Customer’s receipt for a deposit – subrule 19.4(5)19.4(6).Deposit refund – subrule 19.4(6)19.4(7).Unclaimed deposits – subrule 19.4(7)19.4(8).

ITEM 44. Amend subrule 19.15(1) as follows: 19.15(1) Applicability and purpose. This rule applies to each gas public utility, as defined in Iowa Code sections 476.1 and 476.1B. EachPursuant to Iowa Code section 476.66, each utility shall maintain a program plan to assist the utility’s low-income customers with weatherization and to supplement assistance received under the federal low-income home energy assistance program for the payment of winter heating bills.

ITEM 45. Rescind subrules 19.15(2) and 19.15(6).

ITEM 46. Renumber subrules 19.15(3) to 19.15(5) as 19.15(2) to 19.15(4).

ITEM 47. Amend renumbered subrule 19.15(2), introductory paragraph, as follows: 19.15(2) Notification. Each utility shall notify all customers of the fund at least twice a year. The method of notice which will ensure the most comprehensive notification to the utility’s customers shall be employed. Upon commencement of service and at least once a year, the notice shall be mailed or personally delivered to all customers, or rendered by electronic means to those customers who have consented to receiving electronic notices. The other required notice may be published in a local newspaper(s) of general circulation within the utility’s service territory. A utility serving fewer than 6,000 customers may publish theirits semiannual notices locally in a free newspaper, utility newsletter or shopper’s guide instead of a newspaper. At a minimum, the notice shall include:

ITEM 48. Amend renumbered subrule 19.15(3) as follows: 19.15(3) Methods of contribution. The utility shall provide for contributions as monthly pledges, as well as one-time or periodic contributions.A pledge by a customer or other party shall not be construed to be a binding contract between the utility and the pledgor. The pledge amount shall not be subject to delayed payment charges by the utility. Each utility may allow persons or organizations to contribute matching funds.

ITEM 49. Amend subparagraph 19.18(1)"b" as follows: (3) Replaces or modifies existing infrastructure required by state or local government action or is required to meet state or federal natural gas pipeline safety regulationsor to otherwise enhance safety as approved in advance by the board.The utility shall make an annual filing with the board to seek advance determination of projects that meet this criterion.

ITEM 50. Rescind paragraph 19.18(1)"c".

ITEM 51. Amend subrule 19.18(2) as follows: 19.18(2) Determination of recovery factor. The utility may recover a rate of return and depreciation expense associated with eligible capital infrastructure investments described in subrule 19.18(1). The allowed rate of return shall be theapproved average cost of debt from the utility’s lastmost recent generalgas or electric rate review proceedingbefore the board. Depreciation expense shall be based upon the depreciation rates allowed by the board in the utility’s lastmost recent generalgas rate review proceedingbefore the board.

ITEM 52. Amend subrule 19.18(3) as follows: 19.18(3) Recovery procedures. a. To recover capital infrastructure investment costs that meet the criteria in paragraph 19.18(1)“a” through an automatic adjustment mechanism, the utility is required to obtain prior board approval of the automatic adjustment mechanism. The utility shall file information in support of the proposed automatic adjustment mechanism that includes: (1) A description of the capital infrastructure investment and the costs that are proposed to be recovered through the automatic adjustment mechanism; (2) An explanation of why the costs of the capital infrastructure investment are beyond the control of the utility’s management; (3) An exhibit that shows the changes in level of the costs of the capital infrastructure investment that are proposed to be recovered, both historical and projected; (4) An explanation of why these particular capital infrastructure investment costs are an important factor in determining the total cost of capital infrastructure investment to serve customers; (5) A description of proposed recovery procedures, if different from the procedures described in paragraphsparagraph19.18(3)“c”and “d”; and (6) The length of time that the automatic adjustment mechanism will be in place. b. Recovery of capital infrastructure investment costs that meet the requirements in paragraph 19.18(1)“b” may be made by the utility by filing a proposed tariff with a 30-day effective dateno later than April 1 of each year. Only one tariff filing to recover capital infrastructure investment costs shall be made in a 12-month period.After [the effective date of this amendment], any recovery previously approved shall be aligned with an April 1 filing period when the utility next seeks recovery under this rule. The utility shall file information in support of the proposed automatic adjustment rates that includes: (1) The government entity mandate or action, including compliance with an integrity or safety plan adopted by the gas utility to comply with any such mandate or action, that results in the gas utility project and the purpose of the project, or the safety-related reason requiring the project.Proof that the capital infrastructure investment is a project that was approved in advance by the board as specified in 19.18(1)“b”(3). (2) The location, description, and costs associated with the project. (3) The cost of debtfrom the utility’s most recent general gas or electric rate review proceeding before the board andthe applicable depreciation rates from the utility’s lastmost recent generalgas rate review proceedingbefore the board. (4) The calculations showing the total costs that are eligible for recovery and the rates that are proposed to be implemented. (5) The utility shall provide supporting documentation, including but not limited to work orders and journal entries, to the board staff or the office of consumer advocate upon request. (6) If the capital infrastructure investment to be included in the automatic adjustment mechanism is based upon an integrity or safety plan adopted in compliance with state or federal natural gas pipeline safety regulations, describe the relationship of the capital infrastructure investment to the integrity or safety plan and the relationship of the integrity or safety plan to a specific state or federal regulation. Provide the date the state or federal regulation was adopted, any relevant compliance dates, and the date the integrity or safety plan was adopted by the utility and how the integrity or safety plan was developed. c. The utility shall calculate the rates for the recovery of the capital infrastructure investment through the automatic adjustment mechanism over the 12-month period beginning from the effective date of the tariff, unless otherwise ordered by the board. Unless otherwise specified in an approved tariff, the capital infrastructure investment factor shall be calculated by taking the total eligible investment costs for the prior calendar year divided by the actual prior calendar year’s sales volumes with the necessary degree-day adjustments. The utility may also use the degree-day adjustment that the utility utilized in the most recent purchased gas adjustment annual filing or any other appropriate degree-day adjustment. The degree-day adjustment shall not be determinative of any weather normalization adjustment in any future rate case.The calculated rate shall include a reconciliation that reconciles the actual revenue recovered through the automatic adjustment mechanism with the costs of the eligible capital infrastructure investments proposed to be recovered over the previous collection period. Unless otherwise specified in an approved tariff, the capital infrastructure investment factor shall be recovered by a fixed monthly surcharge to customers, to be determined by totaling eligible investment costs for the prior calendar year, adjusted for the reconciliation amount, then dividing the total recovery amount among customer classes based upon the utility’s most recent approved cost of service study, dividing the class recovery amounts by the number of months in the recovery period, and then dividing the assigned costs by the number of customers in each respective class. The recovery amount will be limited to annual depreciation plus a return on the undepreciated balance based on the cost of debt. d. The utility shall file an annual reconciliation within 60 days of the end of the 12-month period each year after the initial year in which the automatic adjustment mechanism is implemented that reconciles the actual revenue recovered through the automatic adjustment mechanism with the costs of the eligible capital infrastructure investments proposed to be recovered. The reconciliation shall be for the 12-month period beginning with the effective date of the tariff. Any over-recoveries or under-recoveries from the reconciliation shall be recovered over the ten-month period from the effective date of any adjustment required by the reconciliation. e. d. Recovery of a return on and return of capital infrastructure investment that is eligible for recovery pursuant to an automatic adjustment mechanism, including any recoveries approved under this ruleprior to [the effective date of this amendment], shall continue until the effective date of temporary rates in a subsequent general rate proceeding or, if temporary rates are not implemented, until final rates approved by the board in the utility’s next general rate proceeding. To continue recovery, a utility shall file a proposed tariff each year. Oncetemporary or final rates approved by the board in the next general rate proceeding are effective, the automatic adjustment mechanism shall reset to zero.No more than five years of capital investment recovery, including any recoveries approved prior to [the effective date of this amendment], shall be allowed between general rate proceedings.ARC 2955CUtilities Division[199]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Pursuant to Iowa Code chapters 476, 476B, and 476C and section 17A.4, the Utilities Board (Board) gives notice that on February 10, 2017, the Board issued an order in Docket No. RMU-2016-0016, In re: Review of Access to Affiliate Records, Requirements for Annual Filings, and Asset and Service Transfers Rules [199 IAC Chapter 31], “Order Commencing Rule Making” proposing to amend Chapter 31 of the Board’s rules. The Board is undertaking a comprehensive review of its rules and, as part of that review, is attempting to make the rules more readable, streamline reporting requirements in the rules, ensure the rules are current, and transition away from providing forms within the rules. The intent of these amendments is to promote ease of access for those interacting with the Board. The order approving this Notice of Intended Action can be found on the Board’s Electronic Filing System (EFS) Web site, http://efs.iowa.gov, in Docket No. RMU-2016-0016. Pursuant to Iowa Code sections 17A.4(1)“a” and “b,” any interested person may file a written statement of position pertaining to the proposed amendments. The statement must be filed on or before March 21, 2017. The statement should be filed electronically through the Board’s EFS. Instructions for making an electronic filing can be found on the EFS Web site at http://efs.iowa.gov. Filings shall comply with the format requirements in 199 IAC 2.2(2) and clearly state the author’s name and address and make specific reference to Docket No. RMU-2016-0016. Paper comments may only be filed with approval of the Board. No oral presentation is scheduled at this time. Pursuant to Iowa Code section 17A.4(1)“b,” an oral presentation may be requested or the Board on its own motion after reviewing the comments may determine an oral presentation should be scheduled. Requests for oral presentation should be filed in EFS by March 21, 2017, in Docket No. RMU-2016-0016. After analysis and review of this rule making, the Board tentatively concludes that the proposed amendments, if adopted, will not have a detrimental effect on jobs in Iowa. These amendments are intended to implement Iowa Code sections 476.72, 476.73, and 476.74. The following amendments are proposed.

ITEM 1. Amend rule 199—31.1(476) as follows:

199—31.1(476) Applicability and definition of terms. This chapter applies to all rate-regulated gas or electric public utilities and rate-regulated telephone utilities providing local exchange telecommunication service. All terms used in this chapter shall be defined as the terms are defined in Iowa Code section 476.72 unless further defined in this chapter. "Fully distributed cost" is a costing approach that fully allocates all current and embedded costs to determine the revenue contribution of regulated and nonregulated affiliate operations. "Net book value" means the original purchase price minus depreciation.

ITEM 2. Amend subrule 31.2(2) as follows: 31.2(2) Records to be maintained. The records maintained by each affiliate and made available for inspection through the public utility shall include, but not be limited to: ledgers; balance sheets; income statements—both consolidated and consolidating; documents depicting accounts payable and vouchers; purchase orders; time sheets; journal entries; source and supporting documents for all transactions;supporting documents and models for all forecasts of affiliates used by the public utility; all contracts, including summaries of unwritten contracts or agreements; a description of methods used to allocate revenues, expenses, and investments among affiliates or jurisdictions, including supporting detail; and copies of all filings required by other state and federal agencies.

ITEM 3. Rescind and reserve rule 199—31.4(476).

ITEM 4. Amend rule 199—31.9(476) as follows:

199—31.9(476) Waivers. Any public utility may file an application for waiver of the requirements of this chapter. The application shall include a detailed statement of why the waiver is in the public interestand shall otherwise comply with rule 199—1.3(17A,474,476).ARC 2958CHuman Services Department[441]Adopted and Filed

Pursuant to the authority of Iowa Code section 217.3(6) and 2016 Iowa Acts, House File 2460, section 12, the Department of Human Services amends Chapter 51, “Eligibility,” and Chapter 52, “Payment,” Iowa Administrative Code. These amendments implement the January 1, 2017, cost-of-living adjustment (COLA) increases to the income limits and benefit amounts for several State Supplementary Assistance (SSA) categories. These amendments also implement the changed personal needs allowance for residential care facility assistance and family life home assistance. The net change to the personal needs allowance is a decrease due to a small COLA percentage increase that is offset by a decrease in the average monthly Medicaid copays used to calculate the amount of this deduction. Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2890C on January 4, 2017. These amendments were also Adopted and Filed Emergency and published as ARC 2891C on the same date and became effective January 1, 2017. The Department received no comments during the public comment period. These amendments are identical to those published under Notice of Intended Action and Adopted and Filed Emergency. The Council on Human Services adopted these amendments on February 8, 2017. These amendments do not provide for waivers in specified situations since the increases are required by federal and state law. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code section 217.3(6) and 2016 Iowa Acts, House File 2460, section 12. These amendments will become effective April 5, 2017, at which time the Adopted and Filed Emergency amendments are hereby rescinded. The following amendments are adopted.

ITEM 1. Amend subrule 51.4(1) as follows: 51.4(1) Income. Income of a dependent relative shall be less than $377$379 per month. When the dependent’s income is from earnings, an exemption of $65 shall be allowed to cover work expense.

ITEM 2. Amend rule 441—51.7(249) as follows:

441—51.7(249) Income from providing room and board. In determining profit from furnishing room and board or providing family life home care, $377$379 per month shall be deducted to cover the cost, and the remaining amount treated as earned income. This rule is intended to implement Iowa Code sections 249.3 and 249.4.

ITEM 3. Amend subrule 52.1(1) as follows: 52.1(1) Protective living arrangement. The following assistance standards have been established for state supplementary assistance for persons living in a family-life home certified under rules in 441—Chapter 111.$792$797Care allowance$103$100Personal allowance$895$897Total

ITEM 4. Amend subrule 52.1(2) as follows: 52.1(2) Dependent relative. The following assistance standards have been established for state supplementary assistance for dependent relatives residing in a recipient’s home.a. Aged or disabled client and a dependent relative$1,110$1,114b. Aged or disabled client, eligible spouse, and a dependent relative$1,477$1,482c. Blind client and a dependent relative$1,132$1,136d. Blind client, aged or disabled spouse, and a dependent relative$1,499$1,504e. Blind client, blind spouse, and a dependent relative$1,521$1,526

ITEM 5. Amend subrule 52.1(3) as follows: 52.1(3) Residential care. Payment to a recipient in a residential care facility shall be made on a flat per diem rate of $17.86 or on a cost-related reimbursement system with a maximum per diem rate of $30.05$30.11. The department shall establish a cost-related per diem rate for each facility choosing this method of payment according to rule 441—54.3(249).The facility shall accept the per diem rate established by the department for state supplementary assistance recipients as payment in full from the recipient and make no additional charges to the recipient. a. All income of a recipient as described in this subrule after the disregards described in this subrule shall be applied to meet the cost of care before payment is made through the state supplementary assistance program.Income applied to meet the cost of care shall be the income considered available to the resident pursuant to supplemental security income (SSI) policy plus the SSI benefit less the following monthly disregards applied in the order specified: (1) When income is earned, impairment related work expenses, as defined by SSI plus $65 plus one-half of any remaining earned income. (2) An allowance of $103$100 to meet personal expenses and Medicaid copayment expenses. (3) When there is a spouse at home, the amount of the SSI benefit for an individual minus the spouse’s countable income according to SSI policies. When the spouse at home has been determined eligible for SSI benefits, no income disregard shall be made. (4) When there is a dependent child living with the spouse at home who meets the definition of a dependent according to the SSI program, the amount of the SSI allowance for a dependent minus the dependent’s countable income and the amount of income from the parent at home that exceeds the SSI benefit for one according to SSI policies. (5) Established unmet medical needs of the resident, excluding private health insurance premiums and Medicaid copayment expenses. Unmet medical needs of the spouse at home, exclusive of health insurance premiums and Medicaid copayment expenses, shall be an additional deduction when the countable income of the spouse at home is not sufficient to cover those expenses. Unmet medical needs of the dependent living with the spouse at home, exclusive of health insurance premiums and Medicaid copayment expenses, shall also be deducted when the countable income of the dependent and the income of the parent at home that exceeds the SSI benefit for one is not sufficient to cover the expenses. (6) The income of recipients of state supplementary assistance or Medicaid needed to pay the cost of care in another residential care facility, a family-life home, an in-home health-related care provider, a home- and community-based waiver setting, or a medical institution is not available to apply to the cost of care. The income of a resident who lived at home in the month of entry shall not be applied to the cost of care except to the extent the income exceeds the SSI benefit for one person or for a married couple if the resident also had a spouse living in the home in the month of entry. b. Payment is made for only the days the recipient is a resident of the facility. Payment shall be made for the date of entry into the facility, but not the date of death or discharge. c. Payment shall be made in the form of a grant to the recipient on a post payment basis. d. Payment shall not be made when income is sufficient to pay the cost of care in a month with less than 31 days, but the recipient shall remain eligible for all other benefits of the program. e. Payment will be made for periods the resident is absent overnight for the purpose of visitation or vacation. The facility will be paid to hold the bed for a period not to exceed 30 days during any calendar year, unless a family member or legal guardian of the resident, the resident’s physician, case manager, or department service worker provides signed documentation that additional visitation days are desired by the resident and are for the benefit of the resident. This documentation shall be obtained by the facility for each period of paid absence which exceeds the 30-day annual limit. This information shall be retained in the resident’s personal file. If documentation is not available to justify periods of absence in excess of the 30-day annual limit, the facility shall submit a Case Activity Report, Form 470-0042, to the county office of the department to terminate the state supplementary assistance payment.A family member may contribute to the cost of care for a resident subject to supplementation provisions at rule 441—51.2(249) and any contributions shall be reported to the county office of the department by the facility. f. Payment will be made for a period not to exceed 20 days in any calendar month when the resident is absent due to hospitalization. A resident may not start state supplementary assistance on reserve bed days. g. The per diem rate established for recipients of state supplementary assistance shall not exceed the average rate established by the facility for private pay residents. (1) Residents placed in a facility by another governmental agency are not considered private paying individuals. Payments received by the facility from such an agency shall not be included in determining the average rate for private paying residents. (2) To compute the facilitywide average rate for private paying residents, the facility shall accumulate total monthly charges for those individuals over a six-month period and divide by the total patient days care provided to this group during the same period of time. [Filed 2/8/17, effective 4/5/17][Published 3/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/1/17.ARC 2959CLabor Services Division[875]Adopted and Filed

Pursuant to the authority of Iowa Code section 88.5, the Labor Commissioner hereby amends Chapter 10, “General Industry Safety and Health Rules,” Iowa Administrative Code. The U.S. Department of Labor, Occupational Safety and Health Administration (OSHA) promulgated new standards concerning walking and working surfaces for general industry. The Iowa Labor Commissioner must adopt the federal standards by reference. The federal standard changes align general industry requirements with construction requirements, which is beneficial to employers that perform both types of activities. The federal standard changes give employers greater flexibility over deciding what method of compliance to use. The standards are reorganized and written in plain language. The standards are updated to reflect new technology and to align with other OSHA standards and national consensus standards. It is estimated that 29 fatalities and 5,842 lost-workday injuries per year will be prevented by the new standards. Various provisions have delayed effective dates. One provision will not become effective until 2036. The principal reasons for adoption of this amendment are to implement legislative intent, protect the safety and health of Iowa workers, and make Iowa’s regulations current and consistent with federal regulations. Pursuant to Iowa Code subsection 88.5(1) and 29 CFR 1953.5, Iowa must adopt changes to the federal occupational safety and health standards. After analysis and review of this rule making, jobs could be impacted. However, this amendment is implementing federally mandated regulations, and the State of Iowa is only implementing the federal regulations. The requirements imposed on Iowa businesses by these regulations do not exceed those imposed by federal law. Notice of Intended Action was published in the December 21, 2016, Iowa Administrative Bulletin as ARC 2866C. No comments were received. This amendment is identical to that published under Notice of Intended Action. No variance procedures are included in this rule. Variance procedures are set forth in 875—Chapter 5. This amendment is intended to implement Iowa Code section 88.5 and 29 CFR 1953.5. This amendment shall become effective on April 5, 2017. The following amendment is adopted.

ITEM 1. Amend rule 875—10.20(88) by inserting the following at the end thereof:81 Fed. Reg. 82981 (November 18, 2016) [Filed 1/30/17, effective 4/5/17][Published 3/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/1/17.ARC 2960CLaw Enforcement Academy[501]Adopted and Filed

Pursuant to the authority of Iowa Code sections 80B.11(1)“a” and 80B.11(1)“h,” the Iowa Law Enforcement Academy amends Chapter 2, “Minimum Standards for Iowa Law Enforcement Officers,” and Chapter 10, “Reserve Peace Officers,” Iowa Administrative Code. The rules in Chapters 2 and 10 describe the minimum hiring requirements for certified peace officers and certified reserve peace officers. These amendments bring Chapters 2 and 10 into compliance with 2016 Iowa Acts, House File 2267, which amended Iowa Code section 400.17(3) to change the residency requirement of civil service employees employed by cities and to allow those employees to reside outside of the state of Iowa if a city ordinance allowed it. Chapters 2 and 10 are also amended to allow certified police officers and certified reserve peace officers who are allowed to live outside of the state of Iowa to possess out-of-state driver’s licenses. The proposed amendments were approved by the Iowa Law Enforcement Academy Council on October 6, 2016. Notice of Intended Action was published in the Iowa Administrative Bulletin on December 7, 2016, as ARC 2850C. No public comment was received. These amendments are identical to those published under Notice. After analysis and review of this rule making, the fiscal impact of these amendments on the law enforcement agencies affected may be significant. Law enforcement agencies in Iowa have seen significant issues with hiring and retention of trained officers, and agencies and officers often have incurred significant relocation expenses to comply with the former residency requirements. Iowa Code section 400.17(3) as amended by 2016 Iowa Acts, House File 2267, and the amendments to Chapters 2 and 10 may significantly lower many of these costs for agencies and officers. After analysis and review of this rule making, no adverse impact on jobs is anticipated. These amendments are intended to implement Iowa Code section 80B.11(1). These amendments will become effective April 5, 2017. The following amendments are adopted.

ITEM 1. Amend subrule 2.1(1) as follows: 2.1(1) Is a citizen of the United States and a resident of Iowa or intends to become a resident upon being employed; provided that, with the approval of the Iowa law enforcement academy council, a city located on a state border that is within a standard metropolitan statistical area may allow officers to reside in an adjacent state within that statistical area upon written application by the agency administrator to the council showing substantial reason and documenting undue hardshipthe state residency requirement under this subrule shall not apply to employees of a city or county that has adopted an ordinance to allow employees of the city or county to reside in another state and shall not apply to an employee of a city or county that later repeals such an ordinance if the employee resides in another state at the time of the repeal. A city or county that has adopted an ordinance to allow the employees of the city or county to reside in another state shall provide a current copy of the ordinance to the Iowa law enforcement academy. Railway special agents who are approved by the commissioner of public safety as special agents of the department shall be exempt from the Iowa residency requirement.

ITEM 2. Amend subrule 2.1(3) as follows: 2.1(3) Has a valid driver’s or chauffeur’s license issued by the state of Iowa. Railway special agents who are approved by the commissioner of public safety as special agents of the department and officers who are allowed to reside in an adjacent state within a standard metropolitan statistical area shall be required to possess a valid driver’s or chauffeur’s licenseof the state of residence of the officer.

ITEM 3. Amend subrule 10.100(1) as follows: 10.100(1) Is a citizen of the United States and a resident of Iowa or intends to become a resident of Iowa upon appointment as a reserve peace officer. However, with the approval of the Iowa law enforcement academy council, a city located on a state border that is within a standard metropolitan statistical area may allow reserve peace officers to reside in an adjacent state within that statistical area upon written application by the agency administrator to the council showing substantial reason and documenting undue hardship; provided that the state residency requirement under this subrule shall not apply to employees of a city or county that has adopted an ordinance to allow the employees of the city or county to reside in another state and shall not apply to an employee of a city or county that later repeals such an ordinance if the employee resides in another state at the time of the repeal. A city or county that has adopted an ordinance to allow the employees of the city or county to reside in another state shall provide a current copy of the ordinance to the Iowa law enforcement academy.

ITEM 4. Amend subrule 10.100(3) as follows: 10.100(3) Has a valid driver’s or chauffeur’s license issued by the state of Iowa. Reserve peace officers who are allowed to reside in an adjacent state within a standard metropolitan statistical area shall be required to possess a valid driver’s or chauffeur’s licenseof the state of residence of the officer. [Filed 2/8/17, effective 4/5/17][Published 3/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/1/17.ARC 2961CNatural Resource Commission[571]Adopted and Filed

Pursuant to the authority of Iowa Code section 456A.38, the Natural Resource Commission hereby amends Chapter 21, “Agricultural Lease Program,” Iowa Administrative Code. The purpose of this rule making is to adopt rules for the administration of the Lease to Beginning Farmers Program. This program gives certified beginning farmers the opportunity to obtain agricultural leases on lands managed by the Department of Natural Resources (Department) before those leases are made available to the general public. This program has been in effect since 2013, when authority for this program was established by 2013 Iowa Acts, House File 457, and signed by Governor Branstad on April 24, 2013. Over the past three years, the Department has entered into approximately 150 leases with beginning farmers. These amendments are being incorporated into the Department’s existing agricultural lease program requirements. Notice of Intended Action was published in the Iowa Administrative Bulletin on December 7, 2016, as ARC 2831C. A public hearing was held on January 11, 2017. One comment, which contained several suggestions, was received from the Iowa Farm Bureau Federation (IFBF) during the comment period. The following changes from the Notice were made in response to the comment received. Paragraph 21.4(1)“c” was changed to include the cost of establishment or maintenance of water quality practices, vegetation management, and food plots in the criteria used to establish lease payments. These are practices utilized by the Department in the agricultural lease program, and the Department agrees that they should be factored in to the annual lease payments. Subrule 21.6(4) was changed to clarify that the lease shall serve as the written agreement fixing the time of termination of the tenancy, and the lease shall terminate at the end of the agreed-upon lease term without notice. This change provides additional clarity to the rule while maintaining the flexibility required by the Department to meet management objectives. The Department has determined that many of the other changes suggested by IFBF can be more appropriately addressed through revision of the Department’s standard lease language outside of the context of this rule making. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code section 456A.38. These amendments will become effective April 5, 2017. The following amendments are adopted.

ITEM 1. Adopt the following new definitions in rule 571—21.2(456A): "Agricultural land" means land suitable for use in farming. "Authority" means the Iowa finance authority created in Iowa Code section 16.1A. "Beginning farmer" means an individual, partnership, family farm corporation, or family farm limited liability company, with a low or moderate net worth that engages in farming or wishes to engage in farming. "Farming" means the cultivation of land for the production of agricultural crops, the raising of poultry, the production of eggs, the production of milk, the production of fruit or other horticultural crops, grazing, the production of livestock, aquaculture, hydroponics, the production of forest products, or other activities designated by rule by the authority. "Program" means the lease to beginning farmers program as provided in Iowa Code section 456A.38.

ITEM 2. Rescind rule 571—21.4(456A) and adopt the following new rule in lieu thereof:

571—21.4(456A) Lease to beginning farmers program. The department shall annually lease agricultural land that it holds or manages as wildlife habitat in each county to beginning farmers seeking to participate in the program. The department is not required to lease agricultural land under the program that it would not otherwise lease for farming. 21.4(1) Establishing annual lease payments. The department shall establish annual lease payments for available agricultural land under the program by using the following criteria: a. Market factors. b. Prior leases for the same or comparable agricultural land. c. The cost of the establishment or maintenance of water quality practices, soil conservation practices, wildlife habitat, vegetation management, or food plots, if applicable. 21.4(2) Eligibility to participate. A beginning farmer is eligible to participate in the program following certification as a beginning farmer by the authority based on the following criteria: a. The beginning farmer is a resident of the state of Iowa. b. The beginning farmer has sufficient education, training, or experience in the type of farming required under the lease agreement. c. The agricultural land and agricultural improvements shall only be used for farming by the beginning farmer, the beginning farmer’s spouse, or the beginning farmer’s minor children. d. Other criteria as the authority prescribes by rule. 21.4(3) Selection of beginning farmer. The department shall execute a lease with a beginning farmer selected to participate in the program after such person has been certified by the authority. If two or more beginning farmers seek to execute a lease under the program for the same agricultural land, the department shall select the beginning farmer by drawing lots. At the end of the lease term, a beginning farmer who leased agricultural land under the program is eligible to be selected again to lease the same agricultural land. However, the department shall provide preference to an available beginning farmer who has not previously participated in the program. 21.4(4) Terms of the lease. The department shall establish terms and conditions in the lease for beginning farmers participating in the program. The lease executed by the department under the program shall at least include all of the following: a. The number of acres leased. The department shall not lease more than 240 acres of agricultural land to a beginning farmer for the production of crops. However, this restriction does not apply to agricultural land leased for grazing livestock or land leased by a beginning farmer under rule 571—21.5(456A). b. The term of the lease. The term may be based on the use of the agricultural land. A lease shall not be for more than seven years. A beginning farmer shall not sublease the agricultural land. c. The required and permitted uses of the agricultural land during the term of the lease. The department may require the establishment of a conservation system, crop rotation, or cover crop, if appropriate. The department may require that a beginning farmer adopt generally accepted farming or soil conservation practices, so long as such practices are compatible with the department’s policies related to resource management and outdoor recreation.

ITEM 3. Adopt the following new rule 571—21.5(456A):

571—21.5(456A) Alternative lease procedures. In the event that no beginning farmer seeks to participate in the program, or no beginning farmer is found qualified to participate in the program for a given lease, the following procedures shall be followed by the department in administering the agricultural lease program. 21.5(1) Advertising for bids. A notice advertising for bids shall be published in at least two local newspapers a minimum of two weeks prior to the date of the bid opening. 21.5(2) Prebid informational meeting. A prebid informational meeting may be held when the land manager determines that a meeting is in the state’s best interest. Notice of a prebid informational meeting shall be included in the advertisement for bids and in the written instructions to bidders. The meeting shall be held no later than one week prior to the bid opening. If a prebid meeting is required, bidders must attend to qualify to submit a bid. 21.5(3) Form of bid. Written sealed bids shall be utilized. 21.5(4) Public bid opening. All sealed bids shall be publicly opened as stated in the notice for bids. The results of the bids shall be made available to any interested party. 21.5(5) Awarding of lease. The amount of the bid, past experience with the bidder, the bidder’s ability to comply with the terms of the lease, and the bidder’s ability to perform the required farming practices shall be considered. The department reserves the right to waive technicalities and reject any or all bids not in the best interest of the state of Iowa. 21.5(6) Negotiated leases. The land manager may negotiate a lease with any prospective operator, subject to approval of the director, in any of the following instances: a. No bids are received. b. Gross annual rent is $5,000 or less. c. Where land acquired by the department is subject to an existing tenancy. d. To synchronize the lease period of newly leased areas with other leases in the same management unit. e. Where a proposed lease includes only land not accessible to equipment necessary to perform the required farming operations, except over privately owned land, provided the prospective operator possesses legal access to the leased land over said privately owned land. f. Where the director authorizes a lease as a condition of a land purchase or trade.

ITEM 4. Adopt the following new rule 571—21.6(456A):

571—21.6(456A) Terms applicable to all agricultural leases. The following terms and conditions apply to all department agricultural leases entered into pursuant to rule 571—21.4(456A) or 571—21.5(456A). 21.6(1) Final approval of award. All awards of leases shall be approved by the director. Additionally, awards of all leases on sovereign land shall be subject to approval by the state executive council on recommendation of the natural resource commission. 21.6(2) Payment of cash rent. The operator shall pay a minimum of 10 percent of the total gross rent at the time of the signing of the lease and the balance for each crop year on or before December 1, or the operator shall pay 50 percent of the total annual rent each April 1 and the balance for each crop year on or before December 1. The appropriate minimum payment shall be determined by the land manager. 21.6(3) Payment of crop share rent. The operator shall pay the total annual rent on December 1 or at the time of harvest, whichever is later. 21.6(4) Termination. In accordance with Iowa Code chapter 562, the lease shall serve as the written agreement fixing the time of termination of the tenancy. The lease shall terminate at the end of the agreed-upon lease term without notice. If the department requires leased land for other conservation purposes during the term of the lease, the operator shall relinquish all rights under the existing lease, upon demand by the director, at the end of the current crop year. 21.6(5) Termination for cause. If the operator fails to comply with any of the terms of the lease, the department may serve notice on the operator demanding redress within a specified period of time. If compliance is not made within the specified period, the department may proceed to collect any moneys which may be due and payable during the crop year in which the lease is terminated and may void the remainder of the lease. Further, the department shall have a landlord’s lien as set out by Iowa Code chapter 570. 21.6(6) Previous agreements. The department shall recognize legal agreements regarding agricultural leases which are in effect at the time the department acquires jurisdiction to the land covered by those legal agreements. 21.6(7) Amendment to lease. Amendments to any lease shall be evidenced by written instruments attached to and made a part of the lease. Final approval of amendments shall be made by the director.

ITEM 5. Amend 571—Chapter 21, implementation sentence, as follows: These rules are intended to implement Iowa Code sections 461A.25, 456A.24(2), and456A.24(5), and 456A.38. [Filed 2/9/17, effective 4/5/17][Published 3/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/1/17.ARC 2962CSecretary of State[721]Adopted and Filed

Pursuant to the authority of Iowa Code section 29C.24, the Secretary of State hereby amends Chapter 4, “Forms,” and adopts a new Chapter 12, “Disaster Recovery for Out-of-State Entities,” Iowa Administrative Code. These adopted amendments create a new chapter and a new form to implement 2016 Iowa Acts, Senate File 2306, “Facilitating Business Rapid Response to State-Declared Disasters Act.” These amendments were published under Notice of Intended Action in the December 7, 2016, Iowa Administrative Bulletin as ARC 2856C. References to 2016 Iowa Acts, Senate File 2306, have been updated to reference Iowa Code section 29C.24 to reflect the codification of Senate File 2306. In addition, an implementation sentence has been added to new Chapter 12. These amendments are otherwise identical to those published under Notice of Intended Action. After analysis and review of this rule making, no fiscal impact has been found. After analysis and review of this rule making, no impact on jobs has been found. These amendments are intended to implement Iowa Code sections 29C.3 and 29C.24. These amendments will become effective April 5, 2017. The following amendments are adopted.

ITEM 1. Amend subrule 4.2(2) by inserting the following at the end thereof:Form NumberDescriptionBC-25Disaster Recovery Registration

ITEM 2. Adopt the following new 721—Chapter 12: CHAPTER 12DISASTER RECOVERY FOR OUT-OF-STATE ENTITIES

721—12.1(29C) Definitions. For purposes of this chapter, the definitions from Iowa Code section 29C.24 are adopted by reference.

721—12.2(29C) Notification and insurance verification. Within 15 days of entering the state in response to a disaster in accordance with Iowa Code section 29C.24, an entity shall file with the secretary of state the following information, from the secretary of state’s prescribed form for out-of-state corporations for disaster recovery.

Name.
State of domicile.
Principal business address.
Federal employer identification number.
The date the entity entered the state.
Contact information.
Certificate of worker compensation insurance.
Certificate of liability insurance.
A signed statement that the out-of-state business is in the state for the purpose of responding to a declared state disaster or emergency.

721—12.3(29C) Transmittal of notification. Once the form from rule 721—12.2(29C) is processed, the secretary of state shall transmit the information to the Iowa department of revenue and the Iowa homeland security and emergency management department. The secretary of state shall provide the information to other state and local government agencies at their request. These rules are intended to implement Iowa Code sections 29C.3 and 29C.24. [Filed 2/8/17, effective 4/5/17][Published 3/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/1/17.ARC 2963CUtilities Division[199]Adopted and Filed

Pursuant to Iowa Code sections 17A.4 and 476.2, the Utilities Board (Board) gives notice that on February 7, 2017, the Board issued an order in Docket No. RMU-2016-0010, In re: Review of Tax Reform Revenue Adjustment Rules [199 IAC Chapter 30], “Order Adopting Rules and Rescinding Chapter,” rescinding the Board’s rules at 199—Chapter 30. The rules were adopted in 1987 to implement Iowa Code section 476.8A, which in turn was enacted in connection with the Tax Reform Act of 1986. Iowa Code section 476.8A was repealed in 1990, and Chapter 30 of the Board’s rules can be rescinded. Notice of Intended Action was published in the September 14, 2016, Iowa Administrative Bulletin as ARC 2714C. One party, the Office of Consumer Advocate, a division of the Iowa Department of Justice, filed comments stating that it has no objection to the proposed rescission. The adopted amendment is identical to that published under Notice. The order approving this Adopted and Filed rule making can be found on the Board’s Electronic Filing System Web site, http://efs.iowa.gov, in Docket No. RMU-2016-0010. After analysis and review of this rule making, the Board concludes that the amendment will not have a detrimental effect on jobs in Iowa. This amendment is intended to implement Iowa Code section 476.2. This amendment will become effective April 5, 2017. The following amendment is adopted.

ITEM 1. Rescind and reserve 199—Chapter 30. [Filed 2/6/17, effective 4/5/17][Published 3/1/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 3/1/17.

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