Bill Text: IA HSB200 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to tariffs for public utility innovation programs and including applicability provisions.(See HF 600.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-03-03 - Committee report approving bill, renumbered as HF 600. [HSB200 Detail]
Download: Iowa-2023-HSB200-Introduced.html
House
Study
Bill
200
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
tariffs
for
public
utility
innovation
1
programs
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
476.6,
Code
2023,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
22.
Innovative
utility
programs.
3
a.
It
is
the
intent
of
the
general
assembly
to
encourage
4
public
utilities
to
pursue
innovation
in
pricing
and
programs
5
to
meet
the
dynamic
needs
of
current
and
prospective
customers,
6
enable
price-responsive
solutions,
and
to
provide
economic,
7
environmental,
employment,
and
other
benefits
to
the
state.
8
It
is
also
the
intent
of
the
general
assembly
that
these
9
new
endeavors
shall
not
negatively
impact
nonparticipating
10
customers.
Therefore,
the
general
assembly
declares
that
11
innovative
utility
programs
are
essential
to
further
the
12
attraction
and
retention
of
customers
to
benefit
the
state’s
13
economy
and
to
support
economical
and
sustainable
energy
14
production.
15
b.
(1)
A
tariff
authorized
under
this
subsection
shall
16
comply
with
all
of
the
following
conditions:
17
(a)
A
program
created
under
the
tariff
shall
be
available
to
18
interested
energy
customers
and
customer
participation
shall
19
be
optional.
20
(b)
A
tariff
shall
define
the
eligible
customer
groups.
21
(c)
Costs
of
the
program
shall
be
borne
by
participating
22
customers,
including
program-specific
facilities
and
23
administrative
or
overhead
costs.
Program
costs
shall
include
24
direct
costs
associated
with
the
construction,
operation,
25
maintenance,
and
interconnection
of
facilities,
including
new
26
transmission
infrastructure
directly
arising
from
the
tariff
27
program
and
costs
related
to
the
implementation
of
tariff
28
programs.
Participants
in
a
tariff
approved
pursuant
to
this
29
section
shall
participate
in
future
indirect
costs
allocated
to
30
customers
of
that
utility
without
regard
for
the
existence
of
a
31
tariff
approved
pursuant
to
this
section.
32
(d)
An
eligible
customer
group
shall
not
exclude
directly
33
competing
customers
in
the
same
customer
service
territory.
34
For
purposes
of
this
subparagraph,
“directly
competing
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customers”
means
customers
that
make
the
same
end
product
or
1
offer
the
same
service
for
the
same
general
group
of
customers,
2
and
excludes
customers
that
only
produce
component
parts
of
the
3
same
end
product.
4
(e)
A
tariff
shall
not
alter
the
existing
base
rates
or
5
charges
of
the
public
utility.
Refund,
credit,
or
waiver
of
6
existing
base
rates
or
charges
offered
as
part
of
the
program
7
shall
not
be
considered
an
alteration
of
existing
base
rates
8
or
charges.
9
(f)
The
program
created
under
the
tariff
shall
not
10
negatively
impact
nonparticipating
customers.
11
(2)
A
tariff
authorized
under
this
subsection
may
include
12
any
of
the
following:
13
(a)
Recovery
of
costs
associated
with
program-specific
14
services
or
facilities,
including
but
not
limited
to
energy
15
storage,
renewable
hydrogen,
transmission,
electric
generating
16
facilities,
electric
distribution
facilities,
renewable
natural
17
gas
generation
facilities,
renewable
natural
gas
distribution
18
facilities,
utility-assisted
hourly
prices,
or
liquefied
19
natural
gas
facilities.
20
(b)
A
just
and
reasonable
rate
of
return
applicable
to
21
the
program
for
its
duration
for
new
facilities,
existing
22
facilities,
or
services
provided
by
the
public
utility
that
are
23
serving
the
program
created
under
the
tariff.
In
the
absence
24
of
a
program-specific
rate
of
return,
the
rate
of
return
25
approved
in
a
public
utility’s
most
recent
general
rate
case
26
proceeding
shall
be
presumed
to
be
just
and
reasonable
for
the
27
purpose
of
this
subparagraph.
28
(c)
Application
of
the
program
to
readily
identifiable
29
customer
usage
patterns,
customer
characteristics,
or
output
30
of
specified
facilities.
31
(d)
Assignment
of
program
benefits,
including
nonmonetary
32
benefits
which
may
derive
from
dynamically
balancing
supply
33
and
demand,
providing
ancillary
services,
or
the
production
of
34
renewable
energy
attributes.
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(e)
When
the
program
created
under
the
tariff
replaces
1
a
service
for
which
the
public
utility
collects
an
existing
2
base
rate
or
charge,
a
tariff
may
refund,
credit,
or
waive
the
3
base
rate
or
charge
for
the
replaced
service.
A
participating
4
customer
shall
pay
the
costs
of
remaining
services
received
5
from
the
public
utility
unless
those
costs
are
refunded,
6
credited,
or
waived
under
the
program
created
by
the
tariff.
7
(f)
When
the
program
created
under
the
tariff
is
designed
8
to
recover
costs
associated
with
existing
facilities,
such
9
recovery
would
require
reconciliation
of
the
impact
to
10
nonparticipating
customers.
Existing
facilities
subject
to
11
advance
ratemaking
principles
established
pursuant
to
section
12
476.53
are
ineligible
for
program
inclusion.
13
(g)
If
the
program
or
its
eligible
customer
group
14
cease
to
exist
and
the
public
utility
seeks
the
recovery
15
of
the
program-specific
facilities
through
a
general
rate
16
case
proceeding,
the
public
utility
shall
demonstrate
the
17
reasonableness
and
prudence
without
any
presumption
regarding
18
approval
of
such
request.
A
public
utility
shall
not
be
19
prohibited
from
recovering
the
costs
of
program-specific
20
facilities
through
an
alternative
regulatory
mechanism.
21
c.
A
public
utility’s
participation
under
this
subsection
22
is
not
mandatory.
A
public
utility
that
elects
to
propose
a
23
tariff
or
tariff
amendment
under
this
subsection
shall
file
an
24
application
for
approval
with
the
board.
The
application
shall
25
include
an
identification
of
costs
and
benefits
related
to
the
26
program
for
the
board’s
review
of
the
conditions
specified
in
27
paragraph
“b”
,
subparagraph
(1).
28
d.
Within
thirty
days,
the
board
shall
approve,
deny,
29
or
docket
for
further
review
an
application
for
a
tariff
or
30
amended
tariff
submitted
pursuant
to
this
subsection.
If
31
the
application
is
docketed
for
further
review,
the
board
32
shall
render
a
decision
within
ninety
days
from
the
date
of
33
application
filing
unless
an
objection
has
been
filed
with
34
the
board.
If
the
application
proposes
to
amend
a
tariff
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previously
approved
under
this
subsection,
the
board
shall
not
1
reconsider
existing
programs
previously
approved
under
the
2
tariff
unless
proposed
as
part
of
the
amendment.
All
further
3
review
shall
be
conducted
as
a
contested
case
pursuant
to
4
chapter
17A.
5
e.
In
the
exercise
of
its
authority
under
this
subsection,
6
the
board
shall
not
do
any
of
the
following:
7
(1)
Limit
the
number
of
applications
a
public
utility
may
8
file.
9
(2)
Deny
or
condition
the
approval
of
a
tariff
because
10
a
public
utility
is
subject
to
an
alternative
regulatory
11
mechanism.
12
(3)
Require
a
public
utility
subject
to
an
alternative
13
regulatory
mechanism
to
record
the
revenues
and
costs
14
associated
with
the
program
in
an
inconsistent
manner
with
15
the
federal
energy
regulatory
commission’s
uniform
system
of
16
accounts,
18
C.F.R.
pt.
101.
17
(4)
Condition
its
approval
on
the
public
utility
changing
18
its
proposal
if
the
public
utility
has
not
agreed
to
such
19
changes.
This
subparagraph
shall
not
be
interpreted
to
prevent
20
the
board
from
identifying
changes
to
the
proposal
which
might
21
result
in
approval.
22
f.
Tariffs
and
programs
approved
pursuant
to
this
subsection
23
shall
be
presumed
just
and
reasonable
in
any
subsequent
general
24
rate
case
proceeding.
25
g.
The
board
shall
not
condition
approval
or
denial
of
a
26
tariff
on
final
adoption
of
rules
by
the
board.
27
h.
The
board
shall
adopt
rules
pursuant
to
chapter
17A
to
28
implement
this
subsection.
29
Sec.
2.
APPLICABILITY.
This
Act
applies
to
a
public
utility
30
filing
an
application
with
the
utilities
board
for
review
of
a
31
tariff
on
or
after
the
effective
date
of
this
Act.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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This
bill
creates
a
tariff
program
relating
to
innovative
1
utility
programs.
2
The
bill
provides
that
it
is
the
intent
of
the
general
3
assembly
to
encourage
public
utility
innovation
in
pricing
4
and
programs,
and
that
the
new
innovations
not
negatively
5
impact
nonparticipating
customers.
The
bill
additionally
6
provides
that
it
is
the
intent
of
the
general
assembly
to
7
attract
and
retain
customers
for
the
benefit
of
the
state’s
8
economy,
support
of
economical
energy
production,
and
support
9
of
sustainable
energy
production.
10
The
bill
authorizes
a
tariff
program.
The
bill
provides
11
that
a
tariff
shall
comply
with
several
provisions.
The
12
tariff
shall
be
optional
for
customers,
define
eligible
13
customer
groups,
and
assess
program
costs
to
participating
14
customers.
Program
costs
shall
include
specified
direct
costs
15
arising
from
the
tariff
program
and
costs
related
to
the
16
implementation
of
tariff
programs.
Participants
of
a
tariff
17
program
shall
participate
in
future
indirect
costs
allocated
18
to
customers
of
that
utility
without
regard
for
the
existence
19
of
an
approved
tariff.
The
tariff
shall
not
allow
for
an
20
eligible
customer
group
excluding
directly
competing
customers
21
in
the
same
customer
service
territory,
alter
existing
base
22
rate
or
charges
of
the
public
utility,
or
negatively
impact
23
nonparticipating
customers.
A
tariff
may
include
provisions
24
relating
to
recovery
of
costs,
rate
of
return,
application
of
25
the
program
to
other
specified
patterns,
program
benefits,
26
and
refunds,
credits,
or
waivers
where
the
program
replaces
27
an
existing
service,
or
recovery
of
costs
associated
with
28
existing
facilities.
A
participating
program
customer
shall
29
pay
the
costs
of
the
services
received
from
the
public
utility
30
unless
the
costs
are
refunded,
credited,
or
waived
under
the
31
program.
The
bill
provides
that
if
the
program
or
eligible
32
customer
group
cease
to
exist
and
the
public
utility
seeks
33
recovery
of
the
program-specific
facilities
through
a
general
34
rate
case
proceeding,
the
public
utility
shall
demonstrate
the
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reasonableness
and
prudence
without
any
presumption
regarding
1
approval
of
such
request.
A
public
utility
shall
be
allowed
2
to
recover
program-specific
facilities
though
alternative
3
regulatory
mechanisms.
4
The
bill
provides
for
tariff
application
and
approval.
A
5
public
utility’s
authority
is
not
mandatory
regarding
tariffs.
6
The
bill
provides
that
an
application
for
a
tariff
or
amendment
7
to
a
tariff
shall
be
filed
with
the
Iowa
utilities
board
8
(board).
The
board
shall
approve,
deny,
or
docket
for
further
9
review
an
application
within
30
days.
If
the
board
dockets
10
the
application
for
further
review,
the
board
shall
render
a
11
decision
within
90
days
from
the
date
of
application
filing,
12
unless
an
objection
is
filed.
The
board
shall
not
reconsider
13
existing
programs
previously
approved
under
the
tariff
during
a
14
review
of
an
application
for
an
amendment
to
a
tariff
unless
15
the
review
of
a
program
is
proposed
as
part
of
the
amendment.
16
The
bill
prohibits
the
board
from
certain
actions.
The
17
bill
provides
that
the
board
shall
not
limit
the
number
of
18
applications
a
public
utility
may
file,
deny
or
condition
the
19
approval
of
a
tariff
because
a
public
utility
is
subject
to
20
an
alternative
regulatory
mechanism,
require
a
public
utility
21
subject
to
an
alternative
regulatory
mechanism
to
record
22
revenues
and
costs
in
an
inconsistent
manner
with
specified
23
federal
standards,
or
condition
approval
of
a
tariff
on
the
24
requirement
that
the
public
utility
change
the
proposal
to
25
unagreed-upon
terms.
26
The
bill
provides
that
tariffs
and
programs
approved
27
pursuant
to
the
bill
shall
be
presumed
to
be
just
and
28
reasonable
in
general
rate
case
proceedings.
The
bill
29
prohibits
the
board
from
conditioning
approval
or
denial
of
a
30
tariff
on
the
final
adoption
of
rules
and
requires
the
board
to
31
adopt
rules
related
to
the
bill.
32
The
bill
applies
to
a
public
utility
filing
an
application
33
with
the
board
for
review
of
a
tariff
on
or
after
the
effective
34
date
of
the
bill.
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