Senate Study Bill 3078 - IntroducedA Bill ForAn Act 1eliminating provisions relating to energy efficiency
2plans and programs for public utilities.
1   Section 1.  Section 476.1A, subsection 1, paragraph g, Code
22018, is amended by striking the paragraph.
3   Sec. 2.  Section 476.1B, subsection 1, paragraph l, Code
42018, is amended by striking the paragraph.
5   Sec. 3.  Section 476.1C, subsection 1, paragraph c, Code
62018, is amended by striking the paragraph.
7   Sec. 4.  Section 476.2, subsection 5, Code 2018, is amended
8to read as follows:
   95.  Each rate-regulated gas and electric utility operating
10within the state shall maintain within the state the utility’s
11principal office for Iowa operations. The principal office
12shall be subject to the jurisdiction of the board and shall
13house those books, accounts, papers, and records of the utility
14deemed necessary by the board to be housed within the state.
15The utility shall maintain within the state administrative,
16technical, and operating personnel necessary for the delivery
17of safe and reasonably adequate services and facilities as
18required pursuant to section 476.8. A public utility which
19violates this section shall be subject to the penalties
20provided in section 476.51 and shall be denied authority to
21recover, for a period determined by the board, the costs of an
22energy efficiency plan pursuant to section 476.6, subsection 8
23   Sec. 5.  Section 476.2, subsection 6, Code 2018, is amended
24by striking the subsection.
25   Sec. 6.  Section 476.6, subsections 13, 15, and 17, Code
262018, are amended by striking the subsections.
27   Sec. 7.  Section 476.8, subsection 1, Code 2018, is amended
28to read as follows:
   291.  Every public utility is required to furnish reasonably
30adequate service and facilities. “Reasonably adequate service
31and facilities”
for public utilities furnishing gas or
32electricity includes programs for customers to encourage the
33use of energy efficiency and renewable energy sources.
34charge made by any public utility for any heat, light, gas,
35energy efficiency and renewable energy programs, water or
-1-1power produced, transmitted, delivered or furnished, sanitary
2sewage or storm water collected and treated, or communications
3services, or for any service rendered or to be rendered in
4connection therewith shall be reasonable and just, and every
5unjust or unreasonable charge for such service is prohibited
6and declared unlawful. In determining reasonable and just
7rates, the board shall consider all factors relating to value
8and shall not be bound by rate base decisions or rulings made
9prior to the adoption of this chapter.
10   Sec. 8.  Section 476.10, subsection 3, Code 2018, is amended
11to read as follows:
   123.  Whenever the board shall deem it necessary in order
13to carry out the duties imposed upon it in connection with
14rate regulation under section 476.6, investigations under
15section 476.3, or review proceedings under section 476.31,
16the board may employ additional temporary or permanent staff,
17or may contract with persons who are not state employees for
18engineering, accounting, or other professional services, or
19both. The costs of these additional employees and contract
20services shall be paid by the public utility whose rates
21are being reviewed in the same manner as other expenses are
22paid under this section. Beginning on July 1, 1991, there
23is appropriated out of any funds in the state treasury not
24otherwise appropriated, such sums as may be necessary to enable
25the board to hire additional staff and contract for services
26under this section. The board shall increase quarterly
27assessments specified in subsection 1, paragraph “b”, by
28amounts necessary to enable the board to hire additional staff
29and contract for services under this section. The authority to
30hire additional temporary or permanent staff that is granted to
31the board by this section shall not be subject to limitation
32by any administrative or executive order or decision that
33restricts the number of state employees or the filling of
34employee vacancies, and shall not be subject to limitation
35by any law of this state that restricts the number of state
-2-1employees or the filling of employee vacancies unless that
2law is made applicable to this section by express reference
3to this section. Before the board expends or encumbers an
4amount in excess of the funds budgeted for rate regulation and
5before the board increases quarterly assessments pursuant to
6this subsection, the director of the department of management
7shall approve the expenditure or encumbrance. Before approval
8is given, the director of the department of management shall
9determine that the expenses exceed the funds budgeted by the
10general assembly to the board for rate regulation and that
11the board does not have other funds from which the expenses
12can be paid. Upon approval of the director of the department
13of management the board may expend and encumber funds for
14the excess expenses, and increase quarterly assessments to
15raise the additional funds. The board and the office of
16consumer advocate may add additional personnel or contract
17for additional assistance to review and evaluate energy
18efficiency plans and the implementation of energy efficiency
19programs including, but not limited to, professionally trained
20engineers, accountants, attorneys, skilled examiners and
21inspectors, and secretaries and clerks.
The board and the
22office of consumer advocate may also contract for additional
23assistance in the evaluation and implementation of issues
24relating to telecommunication competition. The board and the
25office of the consumer advocate may expend additional sums
26beyond those sums appropriated. However, the authority to add
27additional personnel or contract for additional assistance
28must first be approved by the department of management. The
29additional sums for energy efficiency shall be provided to the
30board and the office of the consumer advocate by the utilities
31subject to the energy efficiency requirements in this chapter.

32 Telephone companies shall pay any additional sums needed for
33assistance with telecommunication competition issues. The
34assessments shall be in addition to and separate from the
35quarterly assessment.
1   Sec. 9.  Section 476.10A, subsection 1, paragraph b, Code
22018, is amended to read as follows:
   3b.  The amounts collected pursuant to this section shall be
4in addition to the amounts permitted to be assessed pursuant
5to section 476.10. The board shall allow inclusion of these
6amounts in the budgets approved by the board pursuant to
7section 476.6, subsection 15, paragraph “e”.

8   Sec. 10.  Section 476.52, Code 2018, is amended to read as
   10476.52  Management efficiency.
   11It is the policy of this state that a public utility shall
12operate in an efficient manner. If the board determines in the
13course of a proceeding conducted under section 476.3 or 476.6
14that a utility is operating in an inefficient manner, or is
15not exercising ordinary, prudent management, or in comparison
16with other utilities in the state the board determines that the
17utility is performing in a less beneficial manner than other
18utilities, the board may reduce the level of profit or adjust
19the revenue requirement for the utility to the extent the board
20believes appropriate to provide incentives to the utility to
21correct its inefficient operation. If the board determines in
22the course of a proceeding conducted under section 476.3 or
23476.6 that a utility is operating in such an extraordinarily
24efficient manner that tangible financial benefits result to
25the ratepayer, the board may increase the level of profit or
26adjust the revenue requirement for the utility. In making its
27determination under this section, the board may also consider a
28public utility’s pursuit of energy efficiency programs.
29board shall adopt rules for determining the level of profit or
30the revenue requirement adjustment that would be appropriate.
   31The board shall also adopt rules establishing a methodology
32for an analysis of a utility’s management efficiency.
33   Sec. 11.  Section 476.53, subsection 3, paragraph c, Code
342018, is amended to read as follows:
   35c.  In determining the applicable ratemaking principles, the
-4-1board shall make the following findings:
   2(1)  The rate-regulated public utility has in effect a
3board-approved energy efficiency plan as required under section
4476.6, subsection 15.
   5(2)  The find that the rate-regulated public utility
6has demonstrated to the board that the public utility has
7considered other sources for long-term electric supply
8and that the facility or lease is reasonable when compared
9to other feasible alternative sources of supply. The
10rate-regulated public utility may satisfy the requirements
11of this subparagraph paragraph through a competitive bidding
12process, under rules adopted by the board, that demonstrate
13the facility or lease is a reasonable alternative to meet its
14electric supply needs.
15   Sec. 12.  REPEAL.  Sections 476.63 and 476.82, Code 2018,
16are repealed.
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
   20This bill eliminates provisions in the Code relating to
21energy efficiency plans and programs for public utilities.
   22The bill strikes Code sections 476.1A(1)(g), 476.1B(1)(l),
23and 476.1C(1)(c), which require specified nonregulated public
24utilities to file energy efficiency plans with the Iowa
25utilities board.
   26The bill strikes Code section 476.6(13), which requires
27rate-regulated electric and gas utilities to offer energy
28efficiency programs to customers through energy efficiency
   30The bill strikes Code section 476.6(15), which establishes
31requirements, implementation and review procedures, and cost
32recovery mechanisms applicable to rate-regulated electric and
33gas utilities, as well as certain requirements and review
34procedures applicable to non-rate-regulated electric and gas
35utilities, with respect to such energy efficiency plans and
-5-1energy efficiency programs.
   2The bill strikes Code section 476.6(17), which permits the
3board to require rate-regulated gas and electric utilities
4to offer energy efficiency program financing to qualified
   6The bill makes conforming changes by removing references to
7public utility energy efficiency plans and energy efficiency
8programs throughout Code chapter 476.