Bill Text: IA HSB118 | 2015-2016 | 86th General Assembly | Introduced


Bill Title: A study bill for making cross-subsidization prohibitions inapplicable to certain public utility rates or charges.

Spectrum: Unknown

Status: (Introduced - Dead) 2015-02-26 - 12:00PM; House Lounge Commerce. [HSB118 Detail]

Download: Iowa-2015-HSB118-Introduced.html
House Study Bill 118 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act making cross-subsidization prohibitions inapplicable to 1 certain public utility rates or charges. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1464YC (3) 86 rn/sc
H.F. _____ Section 1. Section 476.78, Code 2015, is amended to read as 1 follows: 2 476.78 Cross-subsidization prohibited. 3 A public utility shall not directly or indirectly include 4 any costs or expenses attributable to providing nonutility 5 service in regulated rates or charges. Except for contracts 6 existing as of July 1, 1996, with respect to rates applicable 7 to installation, service, repair, or equipment sales in 8 cities or unincorporated villages with a population of ten 9 thousand or less according to the most recent federal decennial 10 census, a public utility or its affiliates shall not use 11 vehicles, service tools and instruments, or employees, the 12 costs, salaries, or benefits of which are recoverable in the 13 regulated rates for electric service or gas service to install, 14 service, or repair residential or commercial gas or electric 15 heating, ventilating, or air conditioning systems, or interior 16 lighting systems and fixtures; or to sell at retail heating, 17 ventilating, air conditioning, or interior lighting equipment. 18 For the purpose of this section , “commercial” means a place of 19 business primarily used for the storage or sale, at wholesale 20 or retail, of goods, wares, services, or merchandise. Nothing 21 in this section shall be construed to prohibit a public utility 22 from using its utility vehicles, service tools and instruments, 23 and employees to market systems, services, and equipment, to 24 light pilots, or to eliminate a customer emergency or threat 25 to public safety. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill modifies provisions relating to the prohibition on 30 cross-subsidization of public utility rates or charges. 31 Currently, a public utility or its affiliates is prohibited 32 from recovering in the regulated rates for electric service or 33 gas service the costs applicable to vehicles, service tools and 34 instruments, and the salaries and benefits of employees, to 35 -1- LSB 1464YC (3) 86 rn/sc 1/ 2
H.F. _____ install, service, or repair residential or commercial gas or 1 electric heating, ventilating, or air conditioning systems, or 2 interior lighting systems and fixtures; or to sell at retail 3 heating, ventilating, air conditioning, or interior lighting 4 equipment. This prohibition is expressly inapplicable to 5 contracts which existed as of July 1, 1996. 6 The bill deletes the exception for contracts which existed 7 as of July 1, 1996, and instead provides an exception from the 8 prohibition for rates applicable to installation, service, 9 repair, or equipment sales in cities or unincorporated villages 10 with a population of 10,000 or less according to the most 11 recent federal decennial census. 12 -2- LSB 1464YC (3) 86 rn/sc 2/ 2
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