Bill Text: IA HF700 | 2021-2022 | 89th General Assembly | Introduced
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 206.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-04-15 - Referred to Commerce. H.J. 965. [HF700 Detail]
Download: Iowa-2021-HF700-Introduced.html
House
File
700
-
Introduced
HOUSE
FILE
700
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
206)
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
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700
Section
1.
Section
476.6,
subsection
7,
Code
2021,
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
476.6,
subsection
9,
paragraph
a,
Code
2021,
21
is
amended
to
read
as
follows:
22
a.
A
If
a
public
utility
utilizes
a
historic
test
year
in
23
a
rate
regulatory
proceeding
pursuant
to
section
476.33,
the
24
public
utility
may
choose
to
place
in
effect
temporary
rates,
25
charges,
schedules,
or
regulations
without
board
review
on
or
26
after
ten
days
following
the
filing
date
under
this
section
.
27
If
the
utility
chooses
to
place
such
rates,
charges,
schedules,
28
or
regulations
in
effect,
the
utility
shall
file
with
the
29
board
a
bond
or
other
corporate
undertaking
approved
by
the
30
board
conditioned
upon
the
refund
in
a
manner
prescribed
by
31
the
board
of
amounts
collected
in
excess
of
the
amounts
which
32
would
have
been
collected
under
rates,
charges,
schedules,
or
33
regulations
finally
approved
by
the
board.
At
the
conclusion
34
of
the
proceeding
if
the
board
determines
that
the
temporary
35
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rates,
charges,
schedules,
or
regulations
placed
in
effect
1
under
this
paragraph
were
not
based
on
previously
established
2
regulatory
principles,
the
board
shall
consider
ordering
3
refunds
based
upon
the
overpayments
made
by
each
individual
4
customer
class,
rate
zone,
or
customer
group.
If
the
board
5
has
not
rendered
a
final
decision
with
respect
to
suspended
6
rates,
charges,
schedules,
or
regulations
upon
the
expiration
7
of
ten
months
after
the
filing
date,
plus
the
length
of
any
8
delay
that
necessarily
results
either
from
the
failure
of
the
9
public
utility
to
exercise
due
diligence
in
connection
with
10
the
proceedings
or
from
intervening
judicial
proceedings,
11
plus
the
length
of
any
extension
permitted
by
section
476.33,
12
subsection
3
,
then
such
temporary
rates,
charges,
schedules,
or
13
regulations
placed
into
effect
on
a
temporary
basis
shall
be
14
deemed
finally
approved
by
the
board
and
the
utility
may
place
15
them
into
effect
on
a
permanent
basis.
16
Sec.
3.
Section
476.33,
subsection
4,
paragraph
b,
Code
17
2021,
is
amended
to
read
as
follows:
18
b.
For
a
rate
regulatory
proceeding
utilizing
a
future
test
19
year,
the
rules
shall
require
the
board
to
consider
the
use
20
of
any
twelve-month
period
beginning
no
later
than
the
date
21
on
which
a
proposed
rate
change
is
expected
to
take
effect
22
in
determining
just
and
reasonable
rates.
The
rules
shall
23
also
require
the
board
to
conduct
a
proceeding
subsequent
to
24
the
effective
date
of
a
rate
resulting
from
a
rate
regulatory
25
proceeding
utilizing
a
future
test
year
to
determine
whether
26
the
actual
costs
and
revenues
are
reasonably
consistent
with
27
those
approved
by
the
board.
If
the
actual
costs
and
revenues
28
are
not
reasonably
consistent
with
those
approved
by
the
29
board,
the
board
shall
adjust
the
rates
accordingly.
For
a
30
rate
regulatory
proceeding
utilizing
a
future
test
year,
the
31
board
may
adopt
rules
regarding
evidence
required,
information
32
to
support
forecasts,
and
any
reporting
obligations.
The
33
board
may
also
adopt
rules
regarding
the
conditions
under
34
which
a
public
utility
that
utilizes
a
future
test
year
may
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subsequently
utilize
a
historic
test
year.
A
public
utility
1
shall
not
be
precluded
from
filing
a
rate
regulatory
proceeding
2
utilizing
a
future
test
year
prior
to
the
adoption
of
any
rules
3
pursuant
to
this
subsection
.
A
public
utility
that
utilizes
4
a
future
test
year
in
a
rate
regulatory
proceeding
shall
not
5
propose
the
use
of
multiple
future
test
years
in
the
same
rate
6
regulatory
proceeding.
7
Sec.
4.
Section
476.33,
subsection
4,
Code
2021,
is
amended
8
by
adding
the
following
new
paragraph:
9
NEW
PARAGRAPH
.
0c.
For
the
proceeding
subsequent
to
the
10
effective
date
of
a
rate
resulting
from
a
rate
regulatory
11
proceeding
utilizing
a
future
test
year,
the
rules
shall
12
establish
filing
requirements
for
the
subsequent
proceeding,
13
procedural
rules,
and
standards
of
reasonableness
for
14
determining
whether
the
actual
costs
and
revenues
are
15
reasonably
consistent
with
those
approved
by
the
board
and
if
16
refunds,
reduced
rates,
or
increased
rates
should
be
required.
17
The
subsequent
proceeding
shall
be
based
upon
twelve
months
of
18
actual
data
beginning
from
the
date
that
the
rates
based
upon
a
19
future
test
year
became
effective,
and
the
board
shall
conduct
20
a
hearing
within
ninety
days
after
the
public
utility
files
21
the
twelve-month
data
with
the
board,
if
the
board
determines
22
that
a
hearing
is
necessary.
The
public
utility
shall
file
23
the
twelve-month
data
within
ninety
days
of
the
end
of
the
24
twelve-month
period.
The
board
shall
issue
a
final
order
25
within
one
hundred
twenty
days
after
the
public
utility
files
26
the
twelve-month
data
required
for
the
subsequent
proceeding.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
relates
to
rate
regulatory
proceedings
before
the
31
utilities
board
within
the
utilities
division
of
the
department
32
of
commerce.
33
The
bill
prohibits
a
public
utility
that
utilizes
a
historic
34
test
year
in
a
rate
regulatory
proceeding
from
making
a
35
-3-
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2109HV
(1)
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jda/rn
3/
4
H.F.
700
subsequent
filing
of
an
application
for
a
new
or
changed
rate
1
which
relates
to
services
for
which
a
rate
filing
is
pending
2
within
12
months
following
the
date
the
prior
application
3
was
filed
or
until
the
board
has
issued
a
final
order
on
4
the
prior
application,
whichever
date
is
earlier,
unless
the
5
public
utility
applies
to
the
board
and
receives
authority.
6
Additionally,
the
bill
prohibits
a
public
utility
that
utilizes
7
a
future
test
year
in
a
proceeding
from
filing
an
application
8
for
a
new
or
changed
rate
until
after
the
board
has
issued
an
9
order
related
to
the
subsequent
proceeding
unless
the
public
10
utility
applies
to
the
board
and
receives
authority.
11
Current
law
allows
public
utilities
to
place
in
effect
12
temporary
rates,
charges,
schedules,
or
regulations
without
13
board
review
on
or
after
10
days
following
the
filing
date
14
under
Code
section
476.6.
The
bill
provides
only
a
public
15
utility
that
utilizes
a
historic
test
year
under
Code
section
16
476.33
may
place
in
effect
such
temporary
rates,
charges,
17
schedules,
or
regulations.
18
The
bill
prohibits
a
public
utility
that
utilizes
a
future
19
test
year
in
a
rate
regulatory
proceeding
from
proposing
the
20
use
of
multiple
future
test
years
in
the
same
proceeding.
21
Current
law
requires
the
board
to
adopt
rules
that
require
22
the
board
to
utilize
either
a
historic
test
year
or
a
future
23
test
year
in
a
rate
regulatory
proceeding.
With
respect
24
to
proceedings
that
take
place
after
the
effective
date
of
25
a
rate
resulting
from
a
proceeding
utilizing
a
future
test
26
year,
the
bill
requires
the
board’s
rules
to
establish
filing
27
requirements
and
standards
of
reasonableness
for
determining
28
whether
the
actual
costs
and
revenues
are
consistent
with
29
those
approved
by
the
board.
The
bill
requires
the
subsequent
30
proceeding
to
be
based
on
12
months
of
data.
Additionally,
the
31
bill
requires
the
public
utility
to
file
the
data
within
90
32
days
of
the
end
of
the
12-month
period,
and
requires
the
board
33
to
issue
a
final
order
within
120
days
after
the
public
utility
34
files
the
data.
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