Bill Text: IA HF669 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to electric utility rates and infrastructure support options for private generation customers. (Formerly HSB 185.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2019-04-27 - Referred to Commerce. H.J. 1076. [HF669 Detail]
Download: Iowa-2019-HF669-Introduced.html
House
File
669
-
Introduced
HOUSE
FILE
669
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
185)
A
BILL
FOR
An
Act
relating
to
electric
utility
rates
and
infrastructure
1
support
options
for
private
generation
customers.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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1368HV
(1)
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H.F.
669
Section
1.
NEW
SECTION
.
476.49
Private
generation
rates
——
1
infrastructure
support
options
for
customers.
2
1.
The
general
assembly
recognizes
the
importance
of
3
electric
utility
infrastructure,
including
electric
generation,
4
transmission,
and
distribution
systems,
to
provide
electric
5
service
to
all
customers
in
this
state,
whether
electricity
6
is
generated
by
a
public
utility,
by
a
customer,
or
on
behalf
7
of
a
customer.
The
general
assembly
also
recognizes
that
8
tariffs
for
electric
service
are
traditionally
designed
for
9
the
provision
of
full
electric
service
to
customers,
not
10
taking
into
account
the
private
generation
of
electricity.
It
11
is
the
intent
of
the
general
assembly
to
require
customers
12
who
utilize
private
generation
to
pay
their
share
of
costs
13
of
electric
utility
infrastructure,
thereby
eliminating
14
cross-subsidization.
It
is
also
the
intent
of
the
general
15
assembly
to
provide
such
customers
with
options
to
pay
their
16
share
of
costs.
17
2.
For
purposes
of
this
section,
unless
the
context
18
otherwise
requires:
19
a.
“Avoided
cost”
means
the
energy
rate
paid
by
an
electric
20
utility
for
energy
purchases
from
a
private
generation
customer
21
established
in
the
electric
utility’s
board-approved
tariff
for
22
cogeneration
facilities
and
small
power
production
facilities
23
in
compliance
with
the
federal
Public
Utility
Regulatory
24
Policies
Act
of
1978,
16
U.S.C.
§2601
et
seq.
25
b.
“Private
generation
customer”
means
an
electric
utility
26
customer
who
utilizes
a
private
generation
facility.
27
c.
“Private
generation
facility”
means
an
alternate
energy
28
production
facility
that
is
owned,
leased,
operated
by,
or
29
operated
on
behalf
of
a
private
generation
customer
and
whose
30
production
of
electricity
is
used
to
offset
a
portion
or
all
of
31
the
customer’s
electricity
bill
or
usage
that
would
otherwise
32
be
purchased
from
an
electric
utility.
33
3.
A
rate-regulated
electric
utility
may
file
tariffs
with
34
the
board
applicable
to
any
private
generation
customer
who
35
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utilizes
a
private
generation
facility
installed
on
or
after
1
the
date
a
tariff
is
approved
pursuant
to
subsection
5.
All
2
tariff
rates
charged
to
a
private
generation
customer
for
3
electric
service
shall
recover
the
electric
utility’s
cost
of
4
providing
electric
service
to
the
applicable
customer
class,
5
as
determined
by
the
board
in
the
electric
utility’s
most
6
recently
approved
rate
proceeding.
Tariffs
filed
pursuant
7
to
this
section
shall
be
designed
to
ensure
that
a
private
8
generation
customer
pays
for
electric
utility
infrastructure
9
costs.
Tariffs
filed
pursuant
to
this
section
shall
require
a
10
private
generation
customer
to
choose
one
of
the
following
rate
11
structures
for
the
provision
of
electric
service:
12
a.
A
minimum
infrastructure
charge
rate
structure
whereby
13
the
private
generation
customer
pays
a
minimum
amount
each
14
month,
or
the
private
generation
customer’s
applicable
standard
15
electric
service
bill,
whichever
is
higher.
The
private
16
generation
customer’s
applicable
standard
electric
service
17
bill
shall
be
calculated
using
the
applicable
standard
retail
18
tariff.
This
tariff
rate
structure
shall
allow
the
private
19
generation
facility
to
offset
the
private
generation
customer’s
20
energy
usage,
and
shall
allow
excess
energy
to
carry
forward
21
in
the
form
of
excess
energy
credits
to
offset
the
private
22
generation
customer’s
energy
usage
in
future
billing
periods.
23
This
tariff
rate
structure
shall
also
include
an
annual
24
cash-out
of
excess
energy
credits
at
a
rate
that
does
not
25
exceed
the
electric
utility’s
avoided
cost.
26
b.
A
multi-part
rate
structure
whereby
rates
applicable
27
to
the
customer
include,
at
a
minimum,
a
fixed
basic
service
28
charge,
an
energy
charge
designed
to
recover
variable
costs,
29
and
a
monthly
demand
charge
designed
to
ensure
that
the
30
private
generation
customer
pays
for
fixed
electric
utility
31
infrastructure
costs.
This
tariff
rate
structure
shall
32
allow
the
private
generation
facility
to
offset
the
private
33
generation
customer’s
energy
usage,
and
shall
allow
excess
34
energy
to
carry
forward
in
the
form
of
excess
energy
credits
to
35
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offset
the
private
generation
customer’s
energy
usage
in
future
1
billing
periods.
This
tariff
rate
structure
shall
also
include
2
an
annual
cash-out
of
excess
energy
credits
at
a
rate
that
does
3
not
exceed
the
electric
utility’s
avoided
cost.
4
c.
A
buy
all
and
sell
all
rate
structure
whereby
the
private
5
generation
facility’s
output
is
measured
separately
from
the
6
private
generation
customer’s
consumption.
All
electricity
7
consumed
shall
be
purchased
from
the
electric
utility
and
all
8
electricity
generated
shall
be
sold
to
the
electric
utility
on
9
a
monthly
basis.
Rates
applicable
to
the
private
generation
10
customer
for
all
electricity
purchased
from
the
electric
11
utility
shall
be
the
applicable
standard
retail
tariff.
12
Rates
applicable
for
electricity
purchased
from
the
private
13
generation
customer
shall
not
exceed
the
electric
utility’s
14
avoided
cost.
15
d.
A
rate
structure
filed
by
the
electric
utility
that
16
recovers
the
electric
utility’s
cost
of
providing
electric
17
service
to
the
applicable
customer
class,
subject
to
board
18
approval.
19
4.
The
board
shall
review
a
tariff
filed
pursuant
to
this
20
section
for
compliance
with
this
section,
and
shall
approve
21
the
tariff
as
filed
or
with
modification
to
meet
compliance
22
with
this
section
within
ninety
days
of
filing.
If
the
board
23
fails
to
review
the
tariff
within
ninety
days
of
filing,
the
24
tariff
shall
be
deemed
approved.
A
tariff
approved
pursuant
to
25
this
subsection
shall
supersede
any
previously
approved
tariffs
26
applicable
to
private
generation
customers,
except
as
provided
27
in
subsection
5.
28
5.
A
private
generation
customer
who
utilizes
a
private
29
generation
facility
pursuant
to
a
tariff
approved
by
the
board
30
on
or
before
the
effective
date
of
this
Act
may
continue
to
31
receive
electric
service
pursuant
to
the
preexisting
tariff
for
32
the
remaining
duration
of
the
contract
involving
the
private
33
generation
facility,
regardless
of
any
subsequent
change
in
34
ownership
of
such
private
generation
facility.
However,
if
the
35
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private
generation
customer
terminates
electric
service
with
1
the
electric
utility,
the
preexisting
tariff
shall
no
longer
2
apply
and
the
private
generation
customer
shall
be
required
to
3
receive
electric
service
pursuant
to
a
tariff
approved
pursuant
4
to
subsection
4,
provided
that
the
electric
utility
filed
such
5
tariff
with
the
board.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
establishes
new
Code
section
476.49,
relating
to
10
electric
utility
rates
and
infrastructure
support
options
for
11
private
generation
customers.
12
The
bill
defines
“private
generation
customer”
to
mean
an
13
electric
utility
customer
who
utilizes
a
private
generation
14
facility.
“Private
generation
facility”
is
defined
as
an
15
alternate
energy
production
facility
that
is
owned,
leased,
16
operated
by,
or
operated
on
behalf
of
a
private
generation
17
customer
and
whose
production
of
electricity
is
used
to
offset
18
a
portion
or
all
of
the
customer’s
electricity
bill
or
usage
19
that
would
otherwise
be
purchased
from
an
electric
utility.
20
The
bill
provides
that
the
general
assembly
recognizes
21
the
importance
of
electric
utility
infrastructure,
including
22
generation,
transmission,
and
distribution
systems,
to
provide
23
electric
service
to
all
customers
in
Iowa.
The
general
24
assembly
also
recognizes
that
tariffs
are
traditionally
25
designed
for
the
provision
of
full
electric
service
to
26
customers,
not
taking
private
generation
into
account.
The
27
bill
specifies
that
it
is
the
intent
of
the
general
assembly
28
to
require
private
generation
customers
to
pay
their
share
of
29
costs
of
electric
utility
infrastructure,
and
to
provide
such
30
customers
with
options
to
pay
their
share
of
costs.
31
The
bill
allows
rate-regulated
electric
utilities
to
file
32
tariffs
with
the
Iowa
utilities
board
applicable
to
any
private
33
generation
customer
who
utilizes
a
private
generation
facility
34
installed
on
or
after
the
date
a
tariff
is
approved
pursuant
35
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to
the
bill.
All
tariff
rates
charged
to
a
customer
shall
1
recover
the
electric
utility’s
cost
of
providing
service
to
the
2
applicable
customer
class.
3
The
bill
provides
that
tariffs
filed
pursuant
to
the
bill
4
shall
be
designed
to
ensure
that
a
private
generation
customer
5
pays
for
electric
utility
infrastructure
costs
and
shall
6
require
a
private
generation
customer
to
choose
from
one
of
7
several
rate
structures
described
in
the
bill.
8
The
bill
provides
that
the
board
shall
review
a
tariff
for
9
compliance
with
the
bill
and
shall
approve
the
tariff
as
filed
10
or
with
modification
to
meet
compliance
within
90
days
of
11
filing.
If
the
board
fails
to
review
the
tariff
within
90
days
12
of
filing,
the
tariff
is
deemed
approved.
An
approved
tariff
13
shall
supersede
any
previously
approved
tariffs
applicable
to
14
private
generation
customers,
except
as
provided
in
the
bill.
15
The
bill
provides
that
a
private
generation
customer
who
16
utilizes
a
private
generation
facility
pursuant
to
a
tariff
17
approved
by
the
board
on
or
before
the
effective
date
of
the
18
bill
may
continue
to
receive
electric
service
pursuant
to
the
19
preexisting
tariff
for
the
remaining
duration
of
the
contract
20
involving
the
facility,
regardless
of
any
subsequent
change
in
21
ownership
of
such
facility.
If
the
private
generation
customer
22
terminates
electric
service
with
the
utility,
the
preexisting
23
tariff
shall
no
longer
apply
and
the
customer
shall
be
required
24
to
receive
electric
service
pursuant
to
a
tariff
approved
in
25
accordance
with
the
bill,
if
such
tariff
was
filed
with
the
26
board.
27
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