Bill Text: IA SF2355 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to the regulation of specified gas and electric utilities.(Formerly SSB 3125.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2022-03-17 - Placed on calendar under unfinished business. S.J. 553. [SF2355 Detail]

Download: Iowa-2021-SF2355-Introduced.html
Senate File 2355 - Introduced SENATE FILE 2355 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3125) A BILL FOR An Act relating to the regulation of specified gas and electric 1 utilities. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5465SV (2) 89 es/rn
S.F. 2355 Section 1. Section 364.3, subsection 13, paragraph b, 1 subparagraph (2), Code 2022, is amended to read as follows: 2 (2) Paragraph “a” does not apply to an ordinance, motion, 3 resolution, or amendment relating to the rates, services, or 4 governance of a municipally owned public utility providing 5 gas service to the public for compensation and subject to 6 the jurisdiction of the utilities board of the department of 7 commerce pursuant to section 476.1B 476.1A . 8 Sec. 2. Section 476.1A, Code 2022, is amended by striking 9 the section and inserting in lieu thereof the following: 10 476.1A Applicability of authority —— certain utilities. 11 1. For purposes of this section, unless the context 12 otherwise requires: 13 a. “Engineering standards” means standards adopted by the 14 American national standards institute, or the institute of 15 electrical and electronics engineers, rural utilities service, 16 or comparable engineering organization or engineering standards 17 adopted by the board. 18 b. “Safety standards” means applicable regulations 19 promulgated by the United States occupational safety and health 20 administration and by Iowa occupational safety and health 21 administration and outage notifications. Safety standards for 22 electric utilities subject to this section also include those 23 contained in the national electric safety code, as published by 24 the institute of electrical and electronic engineers, inc. and 25 approved by the American national standards institute. Safety 26 standards for municipal gas utilities subject to this section 27 include the pipeline safety rules contained in the federal 28 regulations at 49 C.F.R. pts. 191 193 and 199. 29 2. Electric public utilities having fewer than ten thousand 30 customers, electric cooperative corporations and associations, 31 and municipally owned utilities furnishing gas or electricity 32 are not subject to the regulation authority of the board, 33 except for regulatory action pertaining to the following: 34 a. Assessment of fees for the support of the division and 35 -1- LSB 5465SV (2) 89 es/rn 1/ 8
S.F. 2355 the office of consumer advocate, pursuant to section 476.10. 1 b. Safety standards. 2 c. Procedures and requirements for disconnection of service, 3 as set forth in section 476.20, subsections 1 through 4. 4 d. Assigned area of service, as set forth in sections 476.22 5 through 476.26. 6 e. Public utility railroad crossings, as set forth in 7 section 476.27. 8 f. Filing alternate energy purchase program plans with the 9 board, and offering such programs to customers, pursuant to 10 section 476.47. 11 g. Civil penalties pursuant to section 476.51. 12 h. Providing energy cost information pursuant to section 13 476.56. 14 i. Distributed generation interconnection safety pursuant to 15 section 476.58, subsections 3 and 4. 16 j. Utility-owned exterior flood lighting pursuant to section 17 476.62. 18 k. Customer contribution funds pursuant to section 476.66. 19 l. Chapters 476A and 478, to the extent applicable. 20 3. Electric public utilities having fewer than ten 21 thousand customers and electric cooperative corporations and 22 associations are also subject to the regulation authority of 23 the board for engineering standards for equipment, operations, 24 and procedures and shall be subject to section 476.21. 25 a. This subsection shall not apply to a municipally owned 26 utility. 27 b. This subsection shall apply to an electric power agency 28 as defined in chapter 28F and section 390.9 that includes 29 as a member a city or municipally owned utility that builds 30 transmission facilities after July 1, 2001, and is subject to 31 applicable transmission reliability rules or standards adopted 32 by the board for those facilities. 33 4. The board may hear complaints regarding the practices, 34 facilities, or services of public utilities subject to 35 -2- LSB 5465SV (2) 89 es/rn 2/ 8
S.F. 2355 this section. Such complaints shall be limited solely to 1 matters directly related to the regulatory actions listed 2 in subsections 2 through 4. After a complaint is submitted 3 to the board or filed by the board upon its own motion, the 4 written complaint shall be forwarded by the board to the public 5 utility. The public utility shall be called upon to satisfy 6 the complaint or to answer it in writing within a reasonable 7 time to be specified by the board. 8 a. Copies of the written complaint forwarded by the board to 9 the public utility and copies of all correspondence from the 10 public utility in response to the complaint shall be provided 11 by the board in an expeditious manner to the consumer advocate. 12 (1) If the board determines the public utility’s response 13 is inadequate and there appears to be reasonable ground for 14 investigating the complaint, the board shall promptly initiate 15 a formal proceeding. 16 (2) If the consumer advocate determines the public 17 utility’s response to the complaint is inadequate, the consumer 18 advocate may file a petition with the board which shall 19 promptly initiate a formal proceeding if the board determines 20 that there is any reasonable ground for investigating the 21 complaint. 22 (3) The complainant or the public utility may petition the 23 board to initiate a formal proceeding and such petition shall 24 be granted if the board determines that there is any reasonable 25 ground for investigating the complaint. 26 b. The formal proceeding may be initiated at any time by 27 the board on its own motion. If a proceeding is initiated 28 upon petition filed by the consumer advocate, complainant, 29 or the public utility, or upon the board’s own motion, the 30 board shall set the case for hearing and give notice as it 31 deems appropriate. When the board, after a hearing held after 32 reasonable notice, finds a public utility’s practices or 33 services over which it exercises regulatory authority pursuant 34 to subsections 2 through 4 are in violation of law, the board 35 -3- LSB 5465SV (2) 89 es/rn 3/ 8
S.F. 2355 shall determine reasonable practices, services, or regulations 1 to be observed and enforced. 2 5. Electric public utilities having fewer than ten 3 thousand customers and electric cooperative corporations and 4 associations under this section shall not make or grant any 5 unreasonable preferences or advantages as to rates or services 6 to any person or subject any person to any unreasonable 7 prejudice or disadvantage. This subsection shall not apply to 8 municipal utilities subject to section 388.6. 9 6. The board of directors or the membership of an electric 10 cooperative otherwise exempt from rate regulation may 11 elect to have the cooperative’s corporation or association 12 rates regulated by the board. The board shall adopt rules 13 prescribing the manner in which the board of directors or the 14 membership of an electric cooperative may so elect. 15 a. If the board of directors or the membership of an 16 electric cooperative has elected to have the cooperative’s 17 rates regulated by the board, after two years have elapsed from 18 the effective date of such election the board of directors or 19 the membership of an electric cooperative may elect to exempt 20 the cooperative from the rate regulation authority of the 21 board. 22 b. If the membership of an electric cooperative elected to 23 have the cooperative’s rates regulated by the board, only the 24 membership may elect to exempt the cooperative from the rate 25 regulation authority of the board. 26 7. A municipal utility providing local exchange services 27 is not subject to regulation by the board under this chapter 28 except for regulatory action pertaining to the enforcement of 29 sections 476.10, 476.95, 476.95A, 476.95B, 476.100, 476.102, 30 and 476.103. 31 8. The Iowa utilities board does not have direct or indirect 32 rate authority over the utilities in this section, unless an 33 electric cooperative has elected rate regulation authority. 34 For purposes of this section, “rate” means the same as defined 35 -4- LSB 5465SV (2) 89 es/rn 4/ 8
S.F. 2355 in section 384.80 and also includes the charges for services 1 provided by utilities subject to this chapter. 2 Sec. 3. Section 476.2, subsection 4, Code 2022, is amended 3 to read as follows: 4 4. The board shall have authority , to the extent reasonably 5 necessary to implement the provisions of this chapter, to 6 inquire into the management of the business of all public 7 utilities that are subject to regulation pursuant to this 8 chapter , and shall keep itself informed as to the manner and 9 method in which the same such business is conducted, and may 10 obtain from any public utility all necessary the information 11 reasonably necessary to enable the board to perform its duties , 12 as provided in this chapter . 13 Sec. 4. Section 476.20, subsection 3, paragraph a, Code 14 2022, is amended to read as follows: 15 a. The board shall establish adopt rules which shall 16 be uniform with respect to all public utilities furnishing 17 gas or electricity relating to establishing the procedures 18 and requirements for disconnection of service. The rules 19 adopted by the board shall be uniform with respect to all 20 rate-regulated public utilities furnishing gas or electricity. 21 The rules adopted by the board shall reflect the limited 22 scope of the board’s jurisdiction pursuant to section 476.1A. 23 This subsection applies both to regulated rate-regulated 24 utilities , utilities over which the board’s jurisdiction is 25 limited by section 476.1A, and to municipally owned utilities 26 and unincorporated villages which own their own distribution 27 systems, and violations of this subsection subject the 28 utilities to civil penalties under section 476.51 . 29 Sec. 5. Section 476.58, subsections 3 and 4, Code 2022, are 30 amended to read as follows: 31 3. Procedures and requirements provided in rules adopted 32 pursuant to subsection 2 shall apply to all electric utilities 33 and all interconnection customers in this state. However, 34 only those rule provisions concerning interconnections between 35 -5- LSB 5465SV (2) 89 es/rn 5/ 8
S.F. 2355 distributed generation facilities and electric distribution 1 systems and safety issues shall apply to utilities over which 2 the board’s jurisdiction is limited by section 476.1A or 3 476.1B . 4 4. This section shall not be construed to expand the 5 board’s jurisdiction over a utility over which the board’s 6 jurisdiction is limited by section 476.1A or 476.1B . This 7 section shall not be construed to authorize the board to 8 require that an installation or connection of a distributed 9 generation facility, disconnection device, or interconnection 10 between a distributed generation facility and an electric 11 distribution system be performed by a licensed electrician, 12 installer, or professional engineer. This section shall not 13 be construed to require inspection of a distributed generation 14 facility, disconnection device, or interconnection between a 15 distributed generation facility and an electric distribution 16 system pursuant to chapter 103 . 17 Sec. 6. REPEAL. Section 476.1B, Code 2022, is repealed. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to the regulatory authority of the Iowa 22 utilities board regarding specified gas and electric utilities. 23 The bill provides that municipally owned gas or utility 24 companies, electric public utilities having less than 25 10,000 customers, and electric cooperative corporations and 26 associations shall not be subject to the regulation authority 27 of the board except for the assessment of fees for the 28 support of the office of consumer advocate, safety standards, 29 assigned areas of service, public utility railroad crossings, 30 procedures for the disconnection of service, alternative 31 energy program plans filed with the board, specified civil 32 penalties, energy cost information, distributed generation 33 interconnection safety, utility-owned exterior flood lighting, 34 customer contribution funds, and electric power generation and 35 -6- LSB 5465SV (2) 89 es/rn 6/ 8
S.F. 2355 transmission under Code chapter 476A and electric transmission 1 lines under Code chapter 478. 2 The bill provides that electric public utilities with less 3 than 10,000 customers and electric cooperative corporations 4 and associations, and certain electric power agencies are 5 subject to board regulation for engineering standards and are 6 prohibited from discriminatory rates or charges under Code 7 section 476.21. This provision is inapplicable to municipal 8 utilities. 9 The bill provides that an electric cooperative not subject 10 to rate regulation may elect to have their rates regulated 11 by the board. After two years, rate regulation may be 12 reconsidered. If the membership of the electric cooperative 13 chooses to have the rates regulated, only the membership may 14 elect to be exempt from regulation. 15 The bill provides that a municipal utility providing local 16 exchange services is not subject to regulation by the board 17 except for regulatory action pertaining to Code sections 18 476.10, 476.95, 476.95A, 476.95B, 476.100, 476.102, and 19 476.103. 20 The bill provides that electric public utilities with less 21 than 10,000 customers and electric cooperative corporations 22 and associations shall not make or grant any unreasonable 23 preferences or advantages as to rates or services to any 24 person or subject any person to any unreasonable prejudice or 25 disadvantage. The bill provides that this bill does not apply 26 to municipal utilities subject to the prohibition relating to 27 discrimination in rates specified in Code section 388.6. 28 The bill establishes a written complaint and response 29 process. Both the board and the division of the office 30 of the consumer advocate may determine if the utility’s 31 response is inadequate and initiate further action. The bill 32 establishes practices and procedures for a formal action filed 33 by complainants. 34 The bill provides that the board shall adopt rules 35 -7- LSB 5465SV (2) 89 es/rn 7/ 8
S.F. 2355 establishing procedures and requirements for public utilities 1 supplying gas or electricity and to utilities over which the 2 board’s jurisdiction is limited by the bill relating to the 3 disconnection of service. These rules must be uniform for all 4 rate-regulated public utilities. 5 -8- LSB 5465SV (2) 89 es/rn 8/ 8
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