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Senate File 2311 - ReprintedA Bill ForAn Act 1modifying various provisions relating to public
2utilities.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 28F.1, subsection 1, Code 2018, is
2amended to read as follows:
31. This chapter provides a means for the joint financing
4by public agencies of works or facilities useful and necessary
5for the collection, treatment, purification, and disposal
6in a sanitary manner of liquid and solid waste, sewage,
7and industrial waste, facilities used for the conversion of
8solid waste to energy, gasworks and facilities useful for
9the delivery of natural gas service, and also electric power
10facilities constructed within the state of Iowa, except that
11hydroelectric power facilities may also be located in the
12waters and on the dams of or on land adjacent to either side
13of the Mississippi or Missouri river bordering the state of
14Iowa, water supply systems, swimming pools or golf courses.
15This chapter applies to the acquisition, construction,
16reconstruction, ownership, operation, repair, extension,
17or improvement of such works or facilities, by a separate
18administrative or legal entity created pursuant to chapter
1928E or chapter 389. When the legal entity created under
20this chapter is comprised solely of cities, counties, and
21sanitary districts established under chapter 358, or any
22combination thereof or any combination of the foregoing with
23other public agencies, the entity shall be both a corporation
24and a political subdivision with the name under which it was
25organized. The legal entity may sue and be sued, contract,
26acquire and hold real and personal property necessary for
27corporate purposes, adopt a corporate seal and alter the seal
28at pleasure, and execute all the powers conferred in this
29chapter.
30 Sec. 2. Section 28F.11, Code 2018, is amended to read as
31follows:
3228F.11 Eminent domain.
33Any public agency participating in an agreement authorizing
34the joint exercise of governmental powers pursuant to this
35chapter may exercise its power of eminent domain to acquire
-1-1interests in property, under provisions of law then in effect
2and applicable to the public agency, for the use of the entity
3created to carry out the agreement, provided that the power of
4eminent domain is not used to acquire interests in property
5which is part of a system of facilities in existence, under
6construction, or planned, for the generation, transmission
7or sale of electric power, or for the transmission,
8transportation, or sale of natural gas. In the exercise
9of the power of eminent domain, the public agency shall
10proceed in the manner provided by chapter 6B. Any interests
11in property acquired are acquired for a public purpose, as
12defined in chapter 6A, of the condemning public agency, and the
13payment of the costs of the acquisition may be made pursuant
14to the agreement or to any separate agreement between the
15public agency and the entity or the other public agencies
16participating in the entity or any of them. Upon payment of
17costs, any property acquired is the property of the entity.
18 Sec. 3. Section 476.1, subsection 7, Code 2018, is amended
19to read as follows:
207. The jurisdiction of the board under this chapter
21shall include efforts designed to promote the use of energy
22efficiency strategies by rate or service-regulated gas and
23electric utilities required to be rate-regulated.
24 Sec. 4. Section 476.1A, subsections 1, 2, and 4, Code 2018,
25are amended to read as follows:
261. Electric public utilities having fewer than ten
27thousand customers and electric cooperative corporations
28and associations are not subject to the rate regulation
29authority of the board. Such utilities are subject to all
30other regulation and enforcement activities of the board,
31including, except for regulatory action pertaining to all of
32the following:
33a. Assessment of fees for the support of the division and
34the office of consumer advocate, pursuant to section 476.10.
35b. Safety and engineering standards for equipment,
-2-1operations, and procedures.
2c. Assigned area of service.
3d. Pilot projects of the board.
4e. Assessment of fees for the support of the Iowa energy
5center created in section 15.120 and the center for global and
6regional environmental research established by the state board
7of regents. This paragraph “e” is repealed July 1, 2022.
8f. Filing alternate energy purchase program plans with the
9board, and offering such programs to customers, pursuant to
10section 476.47.
11g. Filing energy efficiency plans and energy efficiency
12results with the board. The energy efficiencyplans as a
13whole shall be cost-effective. The board may permit these
14utilities to file joint plans. The board shall periodically
15report the energy efficiency results including energy savings
16of each of these utilities to the general assembly. The board
17may waive all or part of the energy efficiency filing and
18review requirements for electric cooperative corporations and
19associations and electric public utilities which demonstrate
20superior results with existing energy efficiency efforts.
212. However, sections 476.20, subsections 1 through 4,
22 476.21, 476.41 through 476.44, 476.51, 476.56, 476.62, and
23476.66 and chapters 476A and 478, to the extent applicable,
24apply to such electric utilities.
254. The board of directors or the membership of an electric
26cooperative corporation or association otherwise exempt
27from rate regulation may elect to have the cooperative’s
28rates regulated by the board. The board shall adopt rules
29prescribing the manner in which the board of directors or the
30membership of an electric cooperative may so elect. If the
31board of directors or the membership of an electric cooperative
32has elected to have the cooperative’s rates regulated by the
33board, after two years have elapsed from the effective date of
34such election the board of directors or the membership of the
35electric cooperative may elect to exempt the cooperative from
-3-1the rate regulation authority of the board, provided, however,
2that if the membership elected to have the cooperative’s rates
3regulated by the board, only the membership may elect to exempt
4the cooperative from the rate regulation authority of the
5board.
6 Sec. 5. Section 476.1B, subsection 1, paragraph l, Code
72018, is amended to read as follows:
8l. Filing energy efficiency plans and energy efficiency
9results with the board. The energy efficiencyplans as a whole
10shall be cost-effective. The board may permit these utilities
11to file joint plans. The board shall periodically report the
12energy efficiency results including energy savings of each of
13these utilities to the general assembly.
14 Sec. 6. Section 476.2, subsection 6, Code 2018, is amended
15by striking the subsection.
16 Sec. 7. Section 476.4, subsection 1, Code 2018, is amended
17to read as follows:
181. Every public utility shall file with the board tariffs
19showing the rates and charges for its public utility services
20and the rules and regulations under which such services were
21furnished, on April 1, 1963, which rates and charges shall be
22subject to investigation by the board as provided in section
23476.3, and upon such investigation the burden of establishing
24the reasonableness of such rates and charges shall be upon the
25public utility filing the same. These filings shall be made
26under such rules as the board may prescribe within such time
27and in such form as the board may designate. In prescribing
28rules and regulations with respect to the form of tariffs
29and any other regulations, the board shall, in the case of
30public utilities subject to regulation by any federal agency,
31give due regard to any corresponding rules and regulations of
32such federal agency, to the end that unnecessary duplication
33of effort and expense may be avoided so far as reasonably
34possible. Each public utility shall keep copies of its tariffs
35open to public inspection under such rules as the board may
-4-1prescribe.
2 Sec. 8. Section 476.6, subsections 1, 8, and 13, Code 2018,
3are amended to read as follows:
41. Filing with board. A public utility subject to rate
5regulation shall not make effective a new or changed rate,
6charge, schedule, or regulation until the rate, charge,
7schedule, or regulation has been approved by the board, except
8as provided in subsections 8, and 9, and 22.
98. Automatic adjustments permitted.
10a. This chapter does not prohibit a public utility from
11making provision for the automatic adjustment of rates and
12charges for public utility service provided that a schedule
13showing the automatic adjustment of rates and charges is first
14filed with the board.
15b. A public utility may automatically adjust rates and
16charges to recover costs related to transmission incurred by
17or charged to the public utility consistent with a tariff or
18agreement that is subject to the jurisdiction of the federal
19energy regulatory commission, provided that a schedule showing
20the automatic adjustment of rates and charges is first filed
21with the board.
2213. Energy efficiency plans. Electric and gas public
23utilities shall offer energy efficiency programs to their
24customers through energy efficiency plans. An energy
25efficiency plan as a whole shall be cost-effective. In
26determining the cost-effectiveness of an energy efficiency
27plan, the board shall apply the societal test, total resource
28cost test, utility cost test, rate-payer impact test, and
29participant test. Energy efficiency programs for qualified
30low-income persons and for tree planting programs, educational
31programs, and assessments of consumers’ needs for information
32to make effective choices regarding energy use and energy
33efficiency need not be cost-effective and shall not be
34considered in determining cost-effectiveness of plans as a
35whole. The energy efficiency programs in the plans may be
-5-1provided by the utility or by a contractor or agent of the
2utility. Programs offered pursuant to this subsection by gas
3and electric utilities that are required to be rate-regulated
4shall require board approval.
5 Sec. 9. Section 476.6, subsection 15, paragraphs a and b,
6Code 2018, are amended to read as follows:
7a. (1) (a) Gas and electric utilities required to be
8rate-regulated under this chapter shall file five-year energy
9efficiency plans and demand response plans with the board.
10An energy efficiency plan and budget or a demand response
11plan and budget shall include a range of energy efficiency
12or demand response programs, tailored to the needs of all
13customer classes, including residential, commercial, and
14industrial customers, for energy efficiency or demand response
15 opportunities. The plans shall include programs for qualified
16low-income persons including a cooperative program with any
17community action agency within the utility’s service area to
18implement countywide or communitywide energy efficiency or
19demand response programs for qualified low-income persons.
20Rate-regulated gas and electric utilities shall utilize
21Iowa agencies and Iowa contractors to the maximum extent
22cost-effective in their energy efficiency plans and demand
23response plans filed with the board.
24(b) A rate-regulated gas or electric utility customer
25may request an exemption from participation in any energy
26efficiency plan or demand response plan offered by a gas or
27electric utility. Upon receipt of a request for exemption
28submitted by a customer, the gas or electric utility shall
29grant the exemption and, beginning January 1 of the following
30year, the customer shall no longer be assessed the costs of the
31plan and shall be prohibited from participating in any program
32included in such plan. An exemption shall be permanent and
33shall exempt the customer from any subsequent five-year plan
34offered by the gas or electric utility, provided, however,
35that a customer granted an exemption may request to enroll
-6-1in a subsequent five-year energy efficiency plan or demand
2response plan at any time prior to the commencement of such
3plan. The gas or electric utility shall grant the enrollment
4and, beginning at the commencement of the subsequent plan, the
5customer shall be assessed the costs of the plan and shall be
6allowed to participate in any program included in such plan.
7(2) Gas and electric utilities required to be
8rate-regulated under this chapter may request an energy
9efficiency plan or demand response plan modification during the
10course of a five-year plan. A modification may be requested
11due to changes in funding as a result of public utility
12customers requesting exemptions from the plan or for any other
13reason identified by the gas or electric utility. The board
14shall take action on a modification request made by a gas or
15electric utility within ninety days after the modification
16request is filed. If the board fails to take action within
17ninety days after a modification request is filed, the
18modification request shall be deemed approved.
19(3) Before any energy efficiency plan or demand response
20plan is filed with the board pursuant to this subsection, the
21board shall adopt rules pursuant to chapter 17A establishing
22reasonable processes and procedures for utility customers to
23request exemptions from energy efficiency plans or demand
24response plans pursuant to this subsection. The rules adopted
25by the board shall only apply to rate-regulated gas or electric
26utilities and shall, at a minimum, do all of the following:
27(a) Prohibit a customer from obtaining an exemption from
28an energy efficiency plan or demand response plan if the
29customer has participated in any energy efficiency program or
30demand response program included in a plan during the course
31of the plan, or has redeemed any rebate pursuant to an energy
32efficiency program or demand response program included in a
33plan during the course of the plan.
34(b) Require utilities to provide notification to customers
35regarding the ability to request an exemption from an energy
-7-1efficiency plan or demand response plan, or the ability to
2enroll in a subsequent five-year plan if the customer received
3an exemption, and establish requirements regarding the content
4and form of such notification provided to customers. The
5notification provided to customers shall inform the customer
6that participation in any energy efficiency program or demand
7response program included in a plan during the course of
8the plan, or redemption of any rebate pursuant to an energy
9efficiency program or demand response program included
10in a plan during the course of a plan, shall preclude the
11customer from receiving an exemption from the plan until the
12commencement of the next five-year plan. Such information
13included in the notification shall also be included in any
14rebate provided to customers relating to an energy efficiency
15program or demand response program included in a plan.
16(c) Provide reasonable time for utilities to develop any
17billing or administrative systems required to implement the
18rules adopted by the board pursuant to this subparagraph.
19(d) Provide that if more than ninety percent of the total
20number of customers in a particular customer class request an
21exemption from an energy efficiency plan or demand response
22plan pursuant to this subsection, the utility may discontinue
23such plan for that particular customer class.
24(e) Specify how costs that have not been fully recovered
25from customers during a plan period, including costs of
26discontinued plans, are to be recovered from customers.
27(f) Allow a customer to request an exemption during the
28first plan year of a five-year energy efficiency plan or demand
29response plan that takes effect on or after January 1, 2019,
30within a time period of sixty days or more after the date such
31plan takes effect, which exemption shall become effective at
32the end of the time period allowed for customers to request an
33exemption.
34(g) Allow a customer that moves into the service area of a
35gas or electric utility during the course of a five-year energy
-8-1efficiency plan or demand response plan to request an exemption
2from such plan within sixty days after the commencement of gas
3or electric service, which exemption shall become effective at
4the end of the sixty-day time period from which gas or electric
5service commenced.
6b. (1) A gas and electric utility required to be
7rate-regulated under this chapter shall assess potential energy
8and capacity savings available from actual and projected
9customer usage by applying commercially available technology
10and improved operating practices to energy-using equipment
11and buildings. The utility shall submit the assessment to
12the board. Upon receipt of the assessment, the board shall
13consult with the economic development authority to develop
14specific capacity and energy savings performance standards
15 goals for each utility. Such goals, except as provided for in
16subsection 13, shall only include cost-effective plans. The
17utility shall submit an energy efficiency plan which shall
18include economically achievable programs designed to attain
19these energy and capacity performance standards goals. The
20board shall periodically report the energy efficiency results
21including energy savings of each utility to the general
22assembly.
23(2) For purposes of this paragraph, “cost-effective” means
24the total resource cost test result for a plan is greater
25than one. In applying the total resource cost test, benefits
26to be considered include avoided capacity and energy costs
27and federal tax credits, and costs to be considered include
28incremental costs of equipment, operation, and maintenance,
29utility costs, and administration costs.
30 Sec. 10. Section 476.6, subsection 15, paragraph c,
31subparagraphs (1) and (3), Code 2018, are amended to read as
32follows:
33(1) Gas and electric utilities that are not required to
34be rate-regulated under this chapter shall assess maximum
35 potential energy and capacity savings available from actual
-9-1and projected customer usage through cost-effective energy
2efficiency measures and programs, taking into consideration the
3utility service area’s historic energy load, projected demand,
4customer base, and other relevant factors. Each utility shall
5establish an energy efficiency goal based upon this assessment
6of potential and shall establish cost-effective energy
7efficiency programs designed to meet the energy efficiency
8goal. Separate goals may be established for various customer
9groupings. Gas and electric utilities that are not required to
10be rate-regulated shall allow customers to request exemptions
11from participation in any energy efficiency programs or demand
12response programs offered by the utility, and shall establish
13reasonable processes and procedures for customers to request
14such exemptions. Such processes and procedures established
15by non-rate-regulated gas and electric utilities shall not be
16subject to the regulatory authority of the board.
17(3) Each utility shall commence the process of determining
18its cost-effective energy efficiency goal on or before July 1,
192008, shall provide a progress report to the board on or before
20January 1, 2009, and complete the process and submit a final
21report to the board on or before January 1, 2010. The report
22shall include the utility’s cost-effective energy efficiency
23goal, and for each measure utilized by the utility in meeting
24the goal, the measure’s description, projected costs, and the
25analysis of its cost-effectiveness. Each utility or group
26of utilities shall evaluate cost-effectiveness using the
27cost-effectiveness tests in accordance with subsection 13 of
28this section. Individual utilities or groups of utilities may
29collaborate in conducting the studies required hereunder and
30may file a joint report or reports with the board. However,
31the board may require individual information from any utility,
32even if it participates in a joint report.
33 Sec. 11. Section 476.6, subsection 15, paragraph d, Code
342018, is amended by striking the paragraph.
35 Sec. 12. Section 476.6, subsection 15, paragraphs e, f, and
-10-1g, Code 2018, are amended to read as follows:
2e. (1) The board shall conduct contested case proceedings
3for review of energy efficiency plans, demand response plans,
4 and budgets filed by gas and electric utilities required to
5be rate-regulated under this chapter. Notwithstanding the
6goals developed pursuant to paragraph “b”, the board shall not
7require a gas utility to adopt an energy efficiency plan or
8a demand response plan that results in projected cumulative
9average annual costs that exceed one and one-half percent of
10the gas utility’s expected annual rate revenue from customers
11participating in such plans, and shall not require an electric
12utility to adopt an energy efficiency plan or demand response
13plan that results in projected cumulative average annual costs
14that exceed two percent of the electric utility’s expected
15annual rate revenue from customers participating in such
16plans. For purposes of determining the one and one-half or
17two percent threshold amount, the board shall exclude from a
18gas or electric utility’s expected annual rate revenue the
19revenues expected from customers that have received exemptions
20from energy efficiency plans or demand response plans pursuant
21to paragraph “a”, subparagraph (1), subparagraph division
22(b). A gas or electric utility may voluntarily propose an
23energy efficiency plan or demand response plan that results in
24projected average annual costs that exceed one and one-half
25percent, on a cumulative basis, of a gas utility’s expected
26annual rate revenue from customers participating in such plans,
27or two percent, on a cumulative basis, of an electric utility’s
28expected annual rate revenue from customers participating in
29such plans. The board may approve, reject, or modify the
30plans and budgets. Notwithstanding the provisions of section
3117A.19, subsection 5, in an application for judicial review of
32the board’s decision concerning a utility’s energy efficiency
33 plan or budget, the reviewing court shall not order a stay.
34Whenever
35(2) Notwithstanding paragraph “a”, subparagraph (2), if, on
-11-1the effective date of this Act, a gas or electric utility’s
2 currently approved energy efficiency plan or demand response
3plan includes projected average annual costs that exceed
4one and one-half percent, on a cumulative basis, of the gas
5utility’s expected annual rate revenue received from customers
6participating in such plan for service within the previous
7calendar year, exclusive of recovery of energy efficiency
8costs, or two percent, on a cumulative basis, of the electric
9utility’s expected annual rate revenue received from customers
10participating in such plan for service within the previous
11calendar year, exclusive of recovery of energy efficiency
12costs, the gas or electric utility may file a request to
13modify its approved energy efficiency plan or demand response
14plan to achieve projected average annual costs at one and
15one-half or less, on a cumulative basis, of the gas utility’s
16expected annual rate revenue from customers participating in
17such plan, or two percent or less, on a cumulative basis,
18of the electric utility’s expected annual rate revenue from
19customers participating in such plan. In such case, or
20whenever a request to modify an approved plan or budget is
21filed subsequently by the office of consumer advocate or a
22gas or electric utility required to be rate-regulated under
23this chapter, the board shall promptly initiate a formal
24proceeding if the board determines that any reasonable ground
25exists for investigating the request. The formal proceeding
26may be initiated at any time by the board on its own motion.
27Implementation of board-approved plans or budgets shall
28be considered continuous in nature and shall be subject to
29investigation at any time by the board or the office of the
30consumer advocate.
31f. Notice to customers of a contested case proceeding for
32review of energy efficiency plans, demand response plans, and
33budgets shall be in a manner prescribed by the board.
34g. (1) A gas or electric utility required to be
35rate-regulated under this chapter may recover, through an
-12-1automatic adjustment mechanism filed pursuant to subsection 8,
2over a period not to exceed the term of the plan, the costs of
3an energy efficiency plan or demand response plan approved by
4the board, including amounts for a plan approved prior to July
51, 1996, in a contested case proceeding conducted pursuant to
6paragraph “e”. The board shall ensure that costs are recovered
7from all customers on a reasonably comparable basis, including
8customers who utilize alternate energy production facilities as
9defined in section 476.42. Customers that have been granted
10exemptions from energy efficiency plans or demand response
11plans pursuant to paragraph “a”, subparagraph (1), subparagraph
12division (b), shall not be charged for recovery of energy
13efficiency or demand response costs beginning January 1 of the
14year following the year in which the customer was granted the
15exemption.
16(2) The board shall periodically conduct a contested case
17proceeding to evaluate the reasonableness and prudence of the
18utility’s implementation of an approved energy efficiency
19or demand response plan and budget. If a utility is not
20taking all reasonable actions to cost-effectively implement
21an approved energy efficiency plan, the board shall not allow
22the utility to recover from customers costs in excess of those
23costs that would be incurred under reasonable and prudent
24implementation and shall not allow the utility to recover
25future costs at a level other than what the board determines
26to be reasonable and prudent. If the result of a contested
27case proceeding is a judgment against a utility, that utility’s
28future level of cost recovery shall be reduced by the amount
29by which the programs were found to be imprudently conducted.
30The utility shall not represent energy efficiency or demand
31response in customer billings as a separate cost or expense
32unless the board otherwise approves.
33 Sec. 13. Section 476.6, subsection 17, Code 2018, is amended
34by striking the subsection.
35 Sec. 14. Section 476.6, subsection 20, Code 2018, is amended
-13-1to read as follows:
220. Electric power generating facility emissions.
3a. It is the intent of the general assembly that the state,
4through a collaborative effort involving state agencies and
5affected generation owners, provide for compatible statewide
6environmental and electric energy policies with respect
7to regulated emissions from rate-regulated electric power
8generating facilities in the state that are fueled by coal.
9Each A rate-regulated public utility that is an owner of one
10or more electric power generating facilities fueled by coal
11and located in this state on July 1, 2001, shall develop a
12multiyear plan and budget may, in its sole discretion, file for
13advanced review of projects for managing regulated emissions
14from its facilities in a cost-effective manner.
15(1) The initial multiyear plan and budget shall be filed
16with the board by April 1, 2002. Updates to the plan and budget
17shall be filed at least every twenty-four months.
18(2) Copies of the initial plan and budget, as well as
19any subsequent updates, shall be served on the department of
20natural resources.
21(3) The initial multiyear plan and budget and any subsequent
22updates shall be considered in a contested case proceeding
23pursuant to chapter 17A. The department of natural resources
24and the consumer advocate shall participate as parties to the
25proceeding.
26b. A rate-regulated public utility shall file an application
27for advanced review of a project at least one hundred twenty
28days before the anticipated start of construction. Where an
29electric power generating facility is owned by two or more
30rate-regulated public utilities, the operator of the electric
31power generating facility may file the application on behalf of
32the rate-regulated public utilities.
33(4) c. The department of natural resources shall state
34whether the plan or update project meets applicable state or
35federal environmental requirements for regulated emissions,
-14-1including requirements related to air, water, or solid waste.
2If the plan project does not meet these requirements, the
3department shall recommend amendments that outline actions
4necessary to bring the plan or update project into compliance
5with the environmental requirements.
6b. d. The board shall not approve a plan or update project
7 that does not meet applicable state or federal environmental
8requirements and federal ambient air quality standards for
9regulated emissions from electric power generating facilities
10located in the state.
11c. e. The board shall review the plan or update project
12 and the associated budget, and shall approve the plan or update
13 project and the associated budget if the plan or update project
14 and the associated budget are reasonably expected to achieve
15cost-effective compliance with applicable state or federal
16 environmental requirements and federal ambient air quality
17standards. In reaching its decision, the board shall consider
18whether the plan or update project and the associated budget
19reasonably balance costs, environmental requirements, economic
20development potential, and the reliability of the electric
21generation and transmission system.
22d. f. The board shall issue an order approving or rejecting
23a plan, update, or budget project within one hundred eighty
24 ninety days after the public utility’s a filing is deemed
25complete; however, upon good cause shown, the board may
26extend the time for issuing the order as follows: for approval
27pursuant to this subsection.
28(1) The board may grant an extension of thirty days.
29(2) The board may grant more than one extension, but each
30extension must rely upon a separate showing of good cause.
31(3) A subsequent extension must not be granted any earlier
32than five days prior to the expiration of the original
33one-hundred-eighty-day period, or the current extension.
34e. g. The reasonable costs incurred by a rate-regulated
35public utility in preparing and filing the plan, update, or
-15-1budget project and in participating in the proceedings before
2the board and the reasonable costs associated with implementing
3the plan, update, or budget project shall be included in its
4regulated retail rates.
5f. It is the intent of the general assembly that the board,
6in an environmental plan, update, or associated budget filed
7under this section by a rate-regulated public utility, may
8limit investments or expenditures that are proposed to be
9undertaken prior to the time that the environmental benefit to
10be produced by the investment or expenditure would be required
11by state or federal law.
12 Sec. 15. Section 476.6, Code 2018, is amended by adding the
13following new subsections:
14 NEW SUBSECTION. 22. Voluntary rates and tariff filings.
15a. A rate-regulated public utility may file at any time for
16expedited approval of a new tariff or rate that is optional for
17customers and all costs associated with the tariff or rate are
18borne by customers who elect to participate in the new tariff
19or rate.
20b. A tariff or rate approved under this subsection may not
21change any existing rates or charges.
22c. The board shall review the tariff or rate filing within
23sixty days of filing. If the board fails to review the tariff
24or rate filing within sixty days of filing, the tariff or
25rate filing shall be deemed approved. The board shall not be
26required to hold a hearing to review a tariff or rate filing
27made pursuant to this subsection.
28 NEW SUBSECTION. 23. Preapproval of cost recovery for natural
29gas extensions — rules. The board may adopt rules which
30provide for a preapproval process for cost recovery for natural
31gas extensions.
32 Sec. 16. Section 476.20, subsection 5, paragraph a,
33unnumbered paragraph 1, Code 2018, is amended to read as
34follows:
35The board shall establish rules which shall be uniform with
-16-1respect to all public utilities furnishing gas or electricity
2relating to deposits which may be required by the public
3utility for the initiation or reinstatement of service. This
4subsection shall not apply to municipally owned utilities,
5which shall be governed by the provisions of section 384.84
6with respect to deposits and payment plans for delinquent
7amounts owed. Municipally owned utilities and electric
8utilities that are not required to be rate-regulated shall not
9be subject to the board’s rules in regards to deposits and
10payment plans for delinquent amounts owed and repayment of past
11due debt. Municipally owned utilities and electric utilities
12that are not required to be rate-regulated shall be subject to
13the board’s rules in regards to payment plans made prior to the
14disconnection of services.
15 Sec. 17. NEW SECTION. 476.26A Right to construct, own, and
16maintain electric transmission lines.
171. As used in this section, unless the context otherwise
18requires:
19a. “Electric transmission line” means a high-voltage
20electric transmission line with a capacity of one hundred
21kilovolts or more and any associated electric transmission
22facilities.
23b. “Electric transmission owner” means an individual or
24entity who, as of the effective date of this Act, owns and
25maintains an electric transmission facility including electric
26transmission lines, wires, or cables that are capable of
27operating at an electric voltage of one hundred kilovolts or
28more that are required for rate-regulated electric utilities,
29municipal electric utilities, and rural electric cooperatives
30in this state to provide electric service to the public for
31compensation.
32c. “Incumbent electric transmission owner” means any of the
33following:
34(1) A public utility or a municipally owned utility that
35owns, operates, and maintains an electric transmission line in
-17-1this state.
2(2) An electric cooperative corporation or association or
3municipally owned utility that owns an electric transmission
4facility in this state and has turned over the functional
5control of such facility to a federally approved authority.
6(3) An “electric transmission owner” as defined in paragraph
7“b”.
8d. “Municipally owned utility” means a “city utility” as
9defined in section 362.2, or an “electric power agency” as
10defined in section 390.9 which is comprised solely of cities or
11solely of cities and other political subdivisions.
122. An incumbent electric transmission owner may construct,
13own, and maintain an electric transmission line that has
14been approved for construction in a federally registered
15planning authority transmission plan and which connects to an
16electric transmission facility owned by the incumbent electric
17transmission owner. Where an electric transmission line
18connects to electric transmission facilities owned by two or
19more incumbent electric transmission owners, each incumbent
20electric transmission owner whose facilities connect to the
21electric transmission line may construct, own, and maintain the
22electric transmission line individually and equally. If an
23incumbent electric transmission owner declines to construct,
24own, and maintain its portion of an electric transmission line
25that connects to electric transmission facilities owned by
26two or more incumbent electric transmission owners, then the
27other incumbent electric transmission owner or owners that own
28the electric transmission facilities to which the electric
29transmission line connects may construct, own, and maintain the
30electric transmission line individually and equally.
313. This section shall not modify the authority of the board
32under chapter 478 or the requirements, rights, and obligations
33relating to the construction, maintenance, and operation of
34electric transmission lines pursuant to chapter 478.
35 Sec. 18. Section 476.33, subsection 4, Code 2018, is amended
-18-1to read as follows:
24. The board shall adopt rules that require the board, in
3rate regulatory proceedings under sections 476.3 and 476.6, to
4utilize either a historic test year or a future test year at
5the rate-regulated public utility’s discretion.
6a. For a rate regulatory proceeding utilizing a historic
7test year, the rules shall require the board toconsider the
8use of the most current test period possible in determining
9reasonable and just rates, subject only to the availability of
10existing and verifiable data respecting costs and revenues, and
11in addition, to consider verifiable data that exists within
12nine months after the conclusion of the test year, respecting
13known and measurable changes in costs not associated with a
14different level of revenue, and known and measurable revenues
15not associated with a different level of costs, that are to
16occur at any time within twelve months after the date of
17commencement of the proceedings. Parties proposing adjustments
18that are not verifiable at the commencement of the proceedings
19shall include projected data related to the adjustments in
20their initial substantive filing with the board. For purposes
21of this subsection paragraph, a proceeding commences under
22section 476.6 upon the filing date of new or changed rates,
23charges, schedules, or regulations. This subsection does not
24limit the authority of the board to consider other evidence in
25proceedings under sections 476.3 and 476.6.
26b. For a rate regulatory proceeding utilizing a future test
27year, the rules shall require the board to consider the use
28of any twelve-month period beginning no later than the date
29on which a proposed rate change is expected to take effect in
30determining just and reasonable rates.
31c. This subsection does not limit the authority of the board
32to consider other evidence in proceedings under sections 476.3
33and 476.6.
34 Sec. 19. Section 476.53, subsection 3, paragraph a,
35subparagraph (1), subparagraph division (a), Code 2018, is
-19-1amended by adding the following new subparagraph subdivision:
2 NEW SUBPARAGRAPH SUBDIVISION. (v) Repowering of an
3alternate energy production facility to upgrade or extend the
4useful life of the facility.
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2utilities.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 28F.1, subsection 1, Code 2018, is
2amended to read as follows:
31. This chapter provides a means for the joint financing
4by public agencies of works or facilities useful and necessary
5for the collection, treatment, purification, and disposal
6in a sanitary manner of liquid and solid waste, sewage,
7and industrial waste, facilities used for the conversion of
8solid waste to energy, gasworks and facilities useful for
9the delivery of natural gas service, and also electric power
10facilities constructed within the state of Iowa, except that
11hydroelectric power facilities may also be located in the
12waters and on the dams of or on land adjacent to either side
13of the Mississippi or Missouri river bordering the state of
14Iowa, water supply systems, swimming pools or golf courses.
15This chapter applies to the acquisition, construction,
16reconstruction, ownership, operation, repair, extension,
17or improvement of such works or facilities, by a separate
18administrative or legal entity created pursuant to chapter
1928E or chapter 389. When the legal entity created under
20this chapter is comprised solely of cities, counties, and
21sanitary districts established under chapter 358, or any
22combination thereof or any combination of the foregoing with
23other public agencies, the entity shall be both a corporation
24and a political subdivision with the name under which it was
25organized. The legal entity may sue and be sued, contract,
26acquire and hold real and personal property necessary for
27corporate purposes, adopt a corporate seal and alter the seal
28at pleasure, and execute all the powers conferred in this
29chapter.
30 Sec. 2. Section 28F.11, Code 2018, is amended to read as
31follows:
3228F.11 Eminent domain.
33Any public agency participating in an agreement authorizing
34the joint exercise of governmental powers pursuant to this
35chapter may exercise its power of eminent domain to acquire
-1-1interests in property, under provisions of law then in effect
2and applicable to the public agency, for the use of the entity
3created to carry out the agreement, provided that the power of
4eminent domain is not used to acquire interests in property
5which is part of a system of facilities in existence, under
6construction, or planned, for the generation, transmission
7or sale of electric power, or for the transmission,
8transportation, or sale of natural gas. In the exercise
9of the power of eminent domain, the public agency shall
10proceed in the manner provided by chapter 6B. Any interests
11in property acquired are acquired for a public purpose, as
12defined in chapter 6A, of the condemning public agency, and the
13payment of the costs of the acquisition may be made pursuant
14to the agreement or to any separate agreement between the
15public agency and the entity or the other public agencies
16participating in the entity or any of them. Upon payment of
17costs, any property acquired is the property of the entity.
18 Sec. 3. Section 476.1, subsection 7, Code 2018, is amended
19to read as follows:
207. The jurisdiction of the board under this chapter
21shall include efforts designed to promote the use of energy
22efficiency strategies by rate or service-regulated gas and
23electric utilities required to be rate-regulated.
24 Sec. 4. Section 476.1A, subsections 1, 2, and 4, Code 2018,
25are amended to read as follows:
261. Electric public utilities having fewer than ten
27thousand customers and electric cooperative corporations
28and associations are not subject to the rate regulation
29authority of the board. Such utilities are subject to all
30other regulation and enforcement activities of the board,
31including, except for regulatory action pertaining to all of
32the following:
33a. Assessment of fees for the support of the division and
34the office of consumer advocate, pursuant to section 476.10.
35b. Safety and engineering standards for equipment,
-2-1operations, and procedures.
2c. Assigned area of service.
3d. Pilot projects of the board.
4e. Assessment of fees for the support of the Iowa energy
5center created in section 15.120 and the center for global and
6regional environmental research established by the state board
7of regents. This paragraph “e” is repealed July 1, 2022.
8f. Filing alternate energy purchase program plans with the
9board, and offering such programs to customers, pursuant to
10section 476.47.
11g. Filing energy efficiency plans and energy efficiency
12results with the board. The energy efficiencyplans as a
13whole shall be cost-effective. The board may permit these
14utilities to file joint plans. The board shall periodically
15report the energy efficiency results including energy savings
16of each of these utilities to the general assembly. The board
17may waive all or part of the energy efficiency filing and
18review requirements for electric cooperative corporations and
19associations and electric public utilities which demonstrate
20superior results with existing energy efficiency efforts.
212. However, sections 476.20, subsections 1 through 4,
22 476.21, 476.41 through 476.44, 476.51, 476.56, 476.62, and
23476.66 and chapters 476A and 478, to the extent applicable,
24apply to such electric utilities.
254. The board of directors or the membership of an electric
26cooperative corporation or association otherwise exempt
27from rate regulation may elect to have the cooperative’s
28rates regulated by the board. The board shall adopt rules
29prescribing the manner in which the board of directors or the
30membership of an electric cooperative may so elect. If the
31board of directors or the membership of an electric cooperative
32has elected to have the cooperative’s rates regulated by the
33board, after two years have elapsed from the effective date of
34such election the board of directors or the membership of the
35electric cooperative may elect to exempt the cooperative from
-3-1the rate regulation authority of the board, provided, however,
2that if the membership elected to have the cooperative’s rates
3regulated by the board, only the membership may elect to exempt
4the cooperative from the rate regulation authority of the
5board.
6 Sec. 5. Section 476.1B, subsection 1, paragraph l, Code
72018, is amended to read as follows:
8l. Filing energy efficiency plans and energy efficiency
9results with the board. The energy efficiencyplans as a whole
10shall be cost-effective. The board may permit these utilities
11to file joint plans. The board shall periodically report the
12energy efficiency results including energy savings of each of
13these utilities to the general assembly.
14 Sec. 6. Section 476.2, subsection 6, Code 2018, is amended
15by striking the subsection.
16 Sec. 7. Section 476.4, subsection 1, Code 2018, is amended
17to read as follows:
181. Every public utility shall file with the board tariffs
19showing the rates and charges for its public utility services
20and the rules and regulations under which such services were
21furnished, on April 1, 1963, which rates and charges shall be
22subject to investigation by the board as provided in section
23476.3, and upon such investigation the burden of establishing
24the reasonableness of such rates and charges shall be upon the
25public utility filing the same. These filings shall be made
26under such rules as the board may prescribe within such time
27and in such form as the board may designate. In prescribing
28rules and regulations with respect to the form of tariffs
29and any other regulations, the board shall, in the case of
30public utilities subject to regulation by any federal agency,
31give due regard to any corresponding rules and regulations of
32such federal agency, to the end that unnecessary duplication
33of effort and expense may be avoided so far as reasonably
34possible. Each public utility shall keep copies of its tariffs
35open to public inspection under such rules as the board may
-4-1prescribe.
2 Sec. 8. Section 476.6, subsections 1, 8, and 13, Code 2018,
3are amended to read as follows:
41. Filing with board. A public utility subject to rate
5regulation shall not make effective a new or changed rate,
6charge, schedule, or regulation until the rate, charge,
7schedule, or regulation has been approved by the board, except
8as provided in subsections 8, and 9, and 22.
98. Automatic adjustments permitted.
10a. This chapter does not prohibit a public utility from
11making provision for the automatic adjustment of rates and
12charges for public utility service provided that a schedule
13showing the automatic adjustment of rates and charges is first
14filed with the board.
15b. A public utility may automatically adjust rates and
16charges to recover costs related to transmission incurred by
17or charged to the public utility consistent with a tariff or
18agreement that is subject to the jurisdiction of the federal
19energy regulatory commission, provided that a schedule showing
20the automatic adjustment of rates and charges is first filed
21with the board.
2213. Energy efficiency plans. Electric and gas public
23utilities shall offer energy efficiency programs to their
24customers through energy efficiency plans. An energy
25efficiency plan as a whole shall be cost-effective. In
26determining the cost-effectiveness of an energy efficiency
27plan, the board shall apply the societal test, total resource
28cost test, utility cost test, rate-payer impact test, and
29participant test. Energy efficiency programs for qualified
30low-income persons and for tree planting programs, educational
31programs, and assessments of consumers’ needs for information
32to make effective choices regarding energy use and energy
33efficiency need not be cost-effective and shall not be
34considered in determining cost-effectiveness of plans as a
35whole. The energy efficiency programs in the plans may be
-5-1provided by the utility or by a contractor or agent of the
2utility. Programs offered pursuant to this subsection by gas
3and electric utilities that are required to be rate-regulated
4shall require board approval.
5 Sec. 9. Section 476.6, subsection 15, paragraphs a and b,
6Code 2018, are amended to read as follows:
7a. (1) (a) Gas and electric utilities required to be
8rate-regulated under this chapter shall file five-year energy
9efficiency plans and demand response plans with the board.
10An energy efficiency plan and budget or a demand response
11plan and budget shall include a range of energy efficiency
12or demand response programs, tailored to the needs of all
13customer classes, including residential, commercial, and
14industrial customers, for energy efficiency or demand response
15 opportunities. The plans shall include programs for qualified
16low-income persons including a cooperative program with any
17community action agency within the utility’s service area to
18implement countywide or communitywide energy efficiency or
19demand response programs for qualified low-income persons.
20Rate-regulated gas and electric utilities shall utilize
21Iowa agencies and Iowa contractors to the maximum extent
22cost-effective in their energy efficiency plans and demand
23response plans filed with the board.
24(b) A rate-regulated gas or electric utility customer
25may request an exemption from participation in any energy
26efficiency plan or demand response plan offered by a gas or
27electric utility. Upon receipt of a request for exemption
28submitted by a customer, the gas or electric utility shall
29grant the exemption and, beginning January 1 of the following
30year, the customer shall no longer be assessed the costs of the
31plan and shall be prohibited from participating in any program
32included in such plan. An exemption shall be permanent and
33shall exempt the customer from any subsequent five-year plan
34offered by the gas or electric utility, provided, however,
35that a customer granted an exemption may request to enroll
-6-1in a subsequent five-year energy efficiency plan or demand
2response plan at any time prior to the commencement of such
3plan. The gas or electric utility shall grant the enrollment
4and, beginning at the commencement of the subsequent plan, the
5customer shall be assessed the costs of the plan and shall be
6allowed to participate in any program included in such plan.
7(2) Gas and electric utilities required to be
8rate-regulated under this chapter may request an energy
9efficiency plan or demand response plan modification during the
10course of a five-year plan. A modification may be requested
11due to changes in funding as a result of public utility
12customers requesting exemptions from the plan or for any other
13reason identified by the gas or electric utility. The board
14shall take action on a modification request made by a gas or
15electric utility within ninety days after the modification
16request is filed. If the board fails to take action within
17ninety days after a modification request is filed, the
18modification request shall be deemed approved.
19(3) Before any energy efficiency plan or demand response
20plan is filed with the board pursuant to this subsection, the
21board shall adopt rules pursuant to chapter 17A establishing
22reasonable processes and procedures for utility customers to
23request exemptions from energy efficiency plans or demand
24response plans pursuant to this subsection. The rules adopted
25by the board shall only apply to rate-regulated gas or electric
26utilities and shall, at a minimum, do all of the following:
27(a) Prohibit a customer from obtaining an exemption from
28an energy efficiency plan or demand response plan if the
29customer has participated in any energy efficiency program or
30demand response program included in a plan during the course
31of the plan, or has redeemed any rebate pursuant to an energy
32efficiency program or demand response program included in a
33plan during the course of the plan.
34(b) Require utilities to provide notification to customers
35regarding the ability to request an exemption from an energy
-7-1efficiency plan or demand response plan, or the ability to
2enroll in a subsequent five-year plan if the customer received
3an exemption, and establish requirements regarding the content
4and form of such notification provided to customers. The
5notification provided to customers shall inform the customer
6that participation in any energy efficiency program or demand
7response program included in a plan during the course of
8the plan, or redemption of any rebate pursuant to an energy
9efficiency program or demand response program included
10in a plan during the course of a plan, shall preclude the
11customer from receiving an exemption from the plan until the
12commencement of the next five-year plan. Such information
13included in the notification shall also be included in any
14rebate provided to customers relating to an energy efficiency
15program or demand response program included in a plan.
16(c) Provide reasonable time for utilities to develop any
17billing or administrative systems required to implement the
18rules adopted by the board pursuant to this subparagraph.
19(d) Provide that if more than ninety percent of the total
20number of customers in a particular customer class request an
21exemption from an energy efficiency plan or demand response
22plan pursuant to this subsection, the utility may discontinue
23such plan for that particular customer class.
24(e) Specify how costs that have not been fully recovered
25from customers during a plan period, including costs of
26discontinued plans, are to be recovered from customers.
27(f) Allow a customer to request an exemption during the
28first plan year of a five-year energy efficiency plan or demand
29response plan that takes effect on or after January 1, 2019,
30within a time period of sixty days or more after the date such
31plan takes effect, which exemption shall become effective at
32the end of the time period allowed for customers to request an
33exemption.
34(g) Allow a customer that moves into the service area of a
35gas or electric utility during the course of a five-year energy
-8-1efficiency plan or demand response plan to request an exemption
2from such plan within sixty days after the commencement of gas
3or electric service, which exemption shall become effective at
4the end of the sixty-day time period from which gas or electric
5service commenced.
6b. (1) A gas and electric utility required to be
7rate-regulated under this chapter shall assess potential energy
8and capacity savings available from actual and projected
9customer usage by applying commercially available technology
10and improved operating practices to energy-using equipment
11and buildings. The utility shall submit the assessment to
12the board. Upon receipt of the assessment, the board shall
13consult with the economic development authority to develop
14specific capacity and energy savings performance standards
15 goals for each utility. Such goals, except as provided for in
16subsection 13, shall only include cost-effective plans. The
17utility shall submit an energy efficiency plan which shall
18include economically achievable programs designed to attain
19these energy and capacity performance standards goals. The
20board shall periodically report the energy efficiency results
21including energy savings of each utility to the general
22assembly.
23(2) For purposes of this paragraph, “cost-effective” means
24the total resource cost test result for a plan is greater
25than one. In applying the total resource cost test, benefits
26to be considered include avoided capacity and energy costs
27and federal tax credits, and costs to be considered include
28incremental costs of equipment, operation, and maintenance,
29utility costs, and administration costs.
30 Sec. 10. Section 476.6, subsection 15, paragraph c,
31subparagraphs (1) and (3), Code 2018, are amended to read as
32follows:
33(1) Gas and electric utilities that are not required to
34be rate-regulated under this chapter shall assess maximum
35 potential energy and capacity savings available from actual
-9-1and projected customer usage through cost-effective energy
2efficiency measures and programs, taking into consideration the
3utility service area’s historic energy load, projected demand,
4customer base, and other relevant factors. Each utility shall
5establish an energy efficiency goal based upon this assessment
6of potential and shall establish cost-effective energy
7efficiency programs designed to meet the energy efficiency
8goal. Separate goals may be established for various customer
9groupings. Gas and electric utilities that are not required to
10be rate-regulated shall allow customers to request exemptions
11from participation in any energy efficiency programs or demand
12response programs offered by the utility, and shall establish
13reasonable processes and procedures for customers to request
14such exemptions. Such processes and procedures established
15by non-rate-regulated gas and electric utilities shall not be
16subject to the regulatory authority of the board.
17(3) Each utility shall commence the process of determining
18its cost-effective energy efficiency goal on or before July 1,
192008, shall provide a progress report to the board on or before
20January 1, 2009, and complete the process and submit a final
21report to the board on or before January 1, 2010. The report
22shall include the utility’s cost-effective energy efficiency
23goal, and for each measure utilized by the utility in meeting
24the goal, the measure’s description, projected costs, and the
25analysis of its cost-effectiveness. Each utility or group
26of utilities shall evaluate cost-effectiveness using the
27cost-effectiveness tests in accordance with subsection 13 of
28this section. Individual utilities or groups of utilities may
29collaborate in conducting the studies required hereunder and
30may file a joint report or reports with the board. However,
31the board may require individual information from any utility,
32even if it participates in a joint report.
33 Sec. 11. Section 476.6, subsection 15, paragraph d, Code
342018, is amended by striking the paragraph.
35 Sec. 12. Section 476.6, subsection 15, paragraphs e, f, and
-10-1g, Code 2018, are amended to read as follows:
2e. (1) The board shall conduct contested case proceedings
3for review of energy efficiency plans, demand response plans,
4 and budgets filed by gas and electric utilities required to
5be rate-regulated under this chapter. Notwithstanding the
6goals developed pursuant to paragraph “b”, the board shall not
7require a gas utility to adopt an energy efficiency plan or
8a demand response plan that results in projected cumulative
9average annual costs that exceed one and one-half percent of
10the gas utility’s expected annual rate revenue from customers
11participating in such plans, and shall not require an electric
12utility to adopt an energy efficiency plan or demand response
13plan that results in projected cumulative average annual costs
14that exceed two percent of the electric utility’s expected
15annual rate revenue from customers participating in such
16plans. For purposes of determining the one and one-half or
17two percent threshold amount, the board shall exclude from a
18gas or electric utility’s expected annual rate revenue the
19revenues expected from customers that have received exemptions
20from energy efficiency plans or demand response plans pursuant
21to paragraph “a”, subparagraph (1), subparagraph division
22(b). A gas or electric utility may voluntarily propose an
23energy efficiency plan or demand response plan that results in
24projected average annual costs that exceed one and one-half
25percent, on a cumulative basis, of a gas utility’s expected
26annual rate revenue from customers participating in such plans,
27or two percent, on a cumulative basis, of an electric utility’s
28expected annual rate revenue from customers participating in
29such plans. The board may approve, reject, or modify the
30plans and budgets. Notwithstanding the provisions of section
3117A.19, subsection 5, in an application for judicial review of
32the board’s decision concerning a utility’s energy efficiency
33 plan or budget, the reviewing court shall not order a stay.
34Whenever
35(2) Notwithstanding paragraph “a”, subparagraph (2), if, on
-11-1the effective date of this Act, a gas or electric utility’s
2 currently approved energy efficiency plan or demand response
3plan includes projected average annual costs that exceed
4one and one-half percent, on a cumulative basis, of the gas
5utility’s expected annual rate revenue received from customers
6participating in such plan for service within the previous
7calendar year, exclusive of recovery of energy efficiency
8costs, or two percent, on a cumulative basis, of the electric
9utility’s expected annual rate revenue received from customers
10participating in such plan for service within the previous
11calendar year, exclusive of recovery of energy efficiency
12costs, the gas or electric utility may file a request to
13modify its approved energy efficiency plan or demand response
14plan to achieve projected average annual costs at one and
15one-half or less, on a cumulative basis, of the gas utility’s
16expected annual rate revenue from customers participating in
17such plan, or two percent or less, on a cumulative basis,
18of the electric utility’s expected annual rate revenue from
19customers participating in such plan. In such case, or
20whenever a request to modify an approved plan or budget is
21filed subsequently by the office of consumer advocate or a
22gas or electric utility required to be rate-regulated under
23this chapter, the board shall promptly initiate a formal
24proceeding if the board determines that any reasonable ground
25exists for investigating the request. The formal proceeding
26may be initiated at any time by the board on its own motion.
27Implementation of board-approved plans or budgets shall
28be considered continuous in nature and shall be subject to
29investigation at any time by the board or the office of the
30consumer advocate.
31f. Notice to customers of a contested case proceeding for
32review of energy efficiency plans, demand response plans, and
33budgets shall be in a manner prescribed by the board.
34g. (1) A gas or electric utility required to be
35rate-regulated under this chapter may recover, through an
-12-1automatic adjustment mechanism filed pursuant to subsection 8,
2over a period not to exceed the term of the plan, the costs of
3an energy efficiency plan or demand response plan approved by
4the board, including amounts for a plan approved prior to July
51, 1996, in a contested case proceeding conducted pursuant to
6paragraph “e”. The board shall ensure that costs are recovered
7from all customers on a reasonably comparable basis, including
8customers who utilize alternate energy production facilities as
9defined in section 476.42. Customers that have been granted
10exemptions from energy efficiency plans or demand response
11plans pursuant to paragraph “a”, subparagraph (1), subparagraph
12division (b), shall not be charged for recovery of energy
13efficiency or demand response costs beginning January 1 of the
14year following the year in which the customer was granted the
15exemption.
16(2) The board shall periodically conduct a contested case
17proceeding to evaluate the reasonableness and prudence of the
18utility’s implementation of an approved energy efficiency
19or demand response plan and budget. If a utility is not
20taking all reasonable actions to cost-effectively implement
21an approved energy efficiency plan, the board shall not allow
22the utility to recover from customers costs in excess of those
23costs that would be incurred under reasonable and prudent
24implementation and shall not allow the utility to recover
25future costs at a level other than what the board determines
26to be reasonable and prudent. If the result of a contested
27case proceeding is a judgment against a utility, that utility’s
28future level of cost recovery shall be reduced by the amount
29by which the programs were found to be imprudently conducted.
30The utility shall not represent energy efficiency or demand
31response in customer billings as a separate cost or expense
32unless the board otherwise approves.
33 Sec. 13. Section 476.6, subsection 17, Code 2018, is amended
34by striking the subsection.
35 Sec. 14. Section 476.6, subsection 20, Code 2018, is amended
-13-1to read as follows:
220. Electric power generating facility emissions.
3a. It is the intent of the general assembly that the state,
4through a collaborative effort involving state agencies and
5affected generation owners, provide for compatible statewide
6environmental and electric energy policies with respect
7to regulated emissions from rate-regulated electric power
8generating facilities in the state that are fueled by coal.
9Each A rate-regulated public utility that is an owner of one
10or more electric power generating facilities fueled by coal
11and located in this state on July 1, 2001, shall develop a
12multiyear plan and budget may, in its sole discretion, file for
13advanced review of projects for managing regulated emissions
14from its facilities in a cost-effective manner.
15(1) The initial multiyear plan and budget shall be filed
16with the board by April 1, 2002. Updates to the plan and budget
17shall be filed at least every twenty-four months.
18(2) Copies of the initial plan and budget, as well as
19any subsequent updates, shall be served on the department of
20natural resources.
21(3) The initial multiyear plan and budget and any subsequent
22updates shall be considered in a contested case proceeding
23pursuant to chapter 17A. The department of natural resources
24and the consumer advocate shall participate as parties to the
25proceeding.
26b. A rate-regulated public utility shall file an application
27for advanced review of a project at least one hundred twenty
28days before the anticipated start of construction. Where an
29electric power generating facility is owned by two or more
30rate-regulated public utilities, the operator of the electric
31power generating facility may file the application on behalf of
32the rate-regulated public utilities.
33(4) c. The department of natural resources shall state
34whether the plan or update project meets applicable state or
35federal environmental requirements for regulated emissions,
-14-1including requirements related to air, water, or solid waste.
2If the plan project does not meet these requirements, the
3department shall recommend amendments that outline actions
4necessary to bring the plan or update project into compliance
5with the environmental requirements.
6b. d. The board shall not approve a plan or update project
7 that does not meet applicable state or federal environmental
8requirements and federal ambient air quality standards for
9regulated emissions from electric power generating facilities
10located in the state.
11c. e. The board shall review the plan or update project
12 and the associated budget, and shall approve the plan or update
13 project and the associated budget if the plan or update project
14 and the associated budget are reasonably expected to achieve
15cost-effective compliance with applicable state or federal
16 environmental requirements and federal ambient air quality
17standards. In reaching its decision, the board shall consider
18whether the plan or update project and the associated budget
19reasonably balance costs, environmental requirements, economic
20development potential, and the reliability of the electric
21generation and transmission system.
22d. f. The board shall issue an order approving or rejecting
23a plan, update, or budget project within one hundred eighty
24 ninety days after the public utility’s a filing is deemed
25complete; however, upon good cause shown, the board may
26extend the time for issuing the order as follows: for approval
27pursuant to this subsection.
28(1) The board may grant an extension of thirty days.
29(2) The board may grant more than one extension, but each
30extension must rely upon a separate showing of good cause.
31(3) A subsequent extension must not be granted any earlier
32than five days prior to the expiration of the original
33one-hundred-eighty-day period, or the current extension.
34e. g. The reasonable costs incurred by a rate-regulated
35public utility in preparing and filing the plan, update, or
-15-1budget project and in participating in the proceedings before
2the board and the reasonable costs associated with implementing
3the plan, update, or budget project shall be included in its
4regulated retail rates.
5f. It is the intent of the general assembly that the board,
6in an environmental plan, update, or associated budget filed
7under this section by a rate-regulated public utility, may
8limit investments or expenditures that are proposed to be
9undertaken prior to the time that the environmental benefit to
10be produced by the investment or expenditure would be required
11by state or federal law.
12 Sec. 15. Section 476.6, Code 2018, is amended by adding the
13following new subsections:
14 NEW SUBSECTION. 22. Voluntary rates and tariff filings.
15a. A rate-regulated public utility may file at any time for
16expedited approval of a new tariff or rate that is optional for
17customers and all costs associated with the tariff or rate are
18borne by customers who elect to participate in the new tariff
19or rate.
20b. A tariff or rate approved under this subsection may not
21change any existing rates or charges.
22c. The board shall review the tariff or rate filing within
23sixty days of filing. If the board fails to review the tariff
24or rate filing within sixty days of filing, the tariff or
25rate filing shall be deemed approved. The board shall not be
26required to hold a hearing to review a tariff or rate filing
27made pursuant to this subsection.
28 NEW SUBSECTION. 23. Preapproval of cost recovery for natural
29gas extensions — rules. The board may adopt rules which
30provide for a preapproval process for cost recovery for natural
31gas extensions.
32 Sec. 16. Section 476.20, subsection 5, paragraph a,
33unnumbered paragraph 1, Code 2018, is amended to read as
34follows:
35The board shall establish rules which shall be uniform with
-16-1respect to all public utilities furnishing gas or electricity
2relating to deposits which may be required by the public
3utility for the initiation or reinstatement of service. This
4subsection shall not apply to municipally owned utilities,
5which shall be governed by the provisions of section 384.84
6with respect to deposits and payment plans for delinquent
7amounts owed. Municipally owned utilities and electric
8utilities that are not required to be rate-regulated shall not
9be subject to the board’s rules in regards to deposits and
10payment plans for delinquent amounts owed and repayment of past
11due debt. Municipally owned utilities and electric utilities
12that are not required to be rate-regulated shall be subject to
13the board’s rules in regards to payment plans made prior to the
14disconnection of services.
15 Sec. 17. NEW SECTION. 476.26A Right to construct, own, and
16maintain electric transmission lines.
171. As used in this section, unless the context otherwise
18requires:
19a. “Electric transmission line” means a high-voltage
20electric transmission line with a capacity of one hundred
21kilovolts or more and any associated electric transmission
22facilities.
23b. “Electric transmission owner” means an individual or
24entity who, as of the effective date of this Act, owns and
25maintains an electric transmission facility including electric
26transmission lines, wires, or cables that are capable of
27operating at an electric voltage of one hundred kilovolts or
28more that are required for rate-regulated electric utilities,
29municipal electric utilities, and rural electric cooperatives
30in this state to provide electric service to the public for
31compensation.
32c. “Incumbent electric transmission owner” means any of the
33following:
34(1) A public utility or a municipally owned utility that
35owns, operates, and maintains an electric transmission line in
-17-1this state.
2(2) An electric cooperative corporation or association or
3municipally owned utility that owns an electric transmission
4facility in this state and has turned over the functional
5control of such facility to a federally approved authority.
6(3) An “electric transmission owner” as defined in paragraph
7“b”.
8d. “Municipally owned utility” means a “city utility” as
9defined in section 362.2, or an “electric power agency” as
10defined in section 390.9 which is comprised solely of cities or
11solely of cities and other political subdivisions.
122. An incumbent electric transmission owner may construct,
13own, and maintain an electric transmission line that has
14been approved for construction in a federally registered
15planning authority transmission plan and which connects to an
16electric transmission facility owned by the incumbent electric
17transmission owner. Where an electric transmission line
18connects to electric transmission facilities owned by two or
19more incumbent electric transmission owners, each incumbent
20electric transmission owner whose facilities connect to the
21electric transmission line may construct, own, and maintain the
22electric transmission line individually and equally. If an
23incumbent electric transmission owner declines to construct,
24own, and maintain its portion of an electric transmission line
25that connects to electric transmission facilities owned by
26two or more incumbent electric transmission owners, then the
27other incumbent electric transmission owner or owners that own
28the electric transmission facilities to which the electric
29transmission line connects may construct, own, and maintain the
30electric transmission line individually and equally.
313. This section shall not modify the authority of the board
32under chapter 478 or the requirements, rights, and obligations
33relating to the construction, maintenance, and operation of
34electric transmission lines pursuant to chapter 478.
35 Sec. 18. Section 476.33, subsection 4, Code 2018, is amended
-18-1to read as follows:
24. The board shall adopt rules that require the board, in
3rate regulatory proceedings under sections 476.3 and 476.6, to
4utilize either a historic test year or a future test year at
5the rate-regulated public utility’s discretion.
6a. For a rate regulatory proceeding utilizing a historic
7test year, the rules shall require the board toconsider the
8use of the most current test period possible in determining
9reasonable and just rates, subject only to the availability of
10existing and verifiable data respecting costs and revenues, and
11in addition, to consider verifiable data that exists within
12nine months after the conclusion of the test year, respecting
13known and measurable changes in costs not associated with a
14different level of revenue, and known and measurable revenues
15not associated with a different level of costs, that are to
16occur at any time within twelve months after the date of
17commencement of the proceedings. Parties proposing adjustments
18that are not verifiable at the commencement of the proceedings
19shall include projected data related to the adjustments in
20their initial substantive filing with the board. For purposes
21of this subsection paragraph, a proceeding commences under
22section 476.6 upon the filing date of new or changed rates,
23charges, schedules, or regulations. This subsection does not
24limit the authority of the board to consider other evidence in
25proceedings under sections 476.3 and 476.6.
26b. For a rate regulatory proceeding utilizing a future test
27year, the rules shall require the board to consider the use
28of any twelve-month period beginning no later than the date
29on which a proposed rate change is expected to take effect in
30determining just and reasonable rates.
31c. This subsection does not limit the authority of the board
32to consider other evidence in proceedings under sections 476.3
33and 476.6.
34 Sec. 19. Section 476.53, subsection 3, paragraph a,
35subparagraph (1), subparagraph division (a), Code 2018, is
-19-1amended by adding the following new subparagraph subdivision:
2 NEW SUBPARAGRAPH SUBDIVISION. (v) Repowering of an
3alternate energy production facility to upgrade or extend the
4useful life of the facility.
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