Bill Text: IA HF2510 | 2019-2020 | 88th General Assembly | Amended


Bill Title: A bill for an act relating to rate regulatory proceedings before the utilities board within the utilities division of the department of commerce. (Formerly HSB 591.)

Spectrum: Partisan Bill (? 1-0)

Status: (Engrossed) 2020-03-12 - Subcommittee: Breitbach, Bisignano, and Chapman. S.J. 613. [HF2510 Detail]

Download: Iowa-2019-HF2510-Amended.html
House File 2510 - Reprinted HOUSE FILE 2510 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 591) (As Amended and Passed by the House March 10, 2020 ) A BILL FOR An Act relating to rate regulatory proceedings before the 1 utilities board within the utilities division of the 2 department of commerce. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 2510 (3) 88 ja/rn/md
H.F. 2510 Section 1. Section 476.6, subsection 7, Code 2020, is 1 amended to read as follows: 2 7. Limitation on filings. 3 a. A public utility that utilizes a historic test year in a 4 rate regulatory proceeding pursuant to section 476.33 shall not 5 make a subsequent filing of an application for a new or changed 6 rate, charge, schedule, or regulation which relates to services 7 for which a rate filing is pending within twelve months 8 following the date the prior application was filed or until 9 the board has issued a final order on the prior application, 10 whichever date is earlier, unless the public utility applies 11 to the board for authority and receives authority to make a 12 subsequent filing at an earlier date. 13 b. A public utility that utilizes a future test year in a 14 rate regulatory proceeding pursuant to section 476.33 shall 15 not file an application for a new or changed rate, charge, 16 schedule, or regulation until after the date the board has 17 issued a final order related to the subsequent proceeding 18 unless the public utility applies to the board for authority 19 and receives authority to make a subsequent filing. 20 Sec. 2. Section 476.33, subsection 4, paragraph b, Code 21 2020, is amended to read as follows: 22 b. For a rate regulatory proceeding utilizing a future test 23 year, the rules shall require the board to consider the use 24 of any twelve-month period beginning no later than the date 25 on which a proposed rate change is expected to take effect 26 in determining just and reasonable rates. The rules shall 27 also require the board to conduct a proceeding subsequent to 28 the effective date of a rate resulting from a rate regulatory 29 proceeding utilizing a future test year to determine whether 30 the actual costs and revenues are reasonably consistent with 31 those approved by the board. If the actual costs and revenues 32 are not reasonably consistent with those approved by the 33 board, the board shall adjust the rates accordingly. For a 34 rate regulatory proceeding utilizing a future test year, the 35 -1- HF 2510 (3) 88 ja/rn/md 1/ 2
H.F. 2510 board may adopt rules regarding evidence required, information 1 to support forecasts, and any reporting obligations. The 2 board may also adopt rules regarding the conditions under 3 which a public utility that utilizes a future test year may 4 subsequently utilize a historic test year. A public utility 5 shall not be precluded from filing a rate regulatory proceeding 6 utilizing a future test year prior to the adoption of any rules 7 pursuant to this subsection . A public utility that utilizes 8 a future test year in a rate regulatory proceeding shall not 9 propose the use of multiple future test years in the same rate 10 regulatory proceeding. 11 Sec. 3. Section 476.33, subsection 4, Code 2020, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . 0c. For the proceeding subsequent to the 14 effective date of a rate resulting from a rate regulatory 15 proceeding utilizing a future test year, the rules shall 16 establish filing requirements for the subsequent proceeding, 17 procedural rules, and standards of reasonableness for 18 determining whether the actual costs and revenues are 19 reasonably consistent with those approved by the board and if 20 refunds, reduced rates, or increased rates should be required. 21 The subsequent proceeding shall be based upon twelve months of 22 actual data beginning from the date that the rates based upon a 23 future test year became effective, and the board shall conduct 24 a hearing within ninety days after the public utility files 25 the twelve-month data with the board, if the board determines 26 that a hearing is necessary. The public utility shall file 27 the twelve-month data within ninety days of the end of the 28 twelve-month period. The board shall issue a final order 29 within one hundred twenty days after the public utility files 30 the twelve-month data required for the subsequent proceeding. 31 -2- HF 2510 (3) 88 ja/rn/md 2/ 2
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