Bill Text: IA SF450 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to energy efficiency plan filing requirements for certain public utilities, and including effective date provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-06 - Subcommittee: Chapman, Quirmbach, and R. Smith. S.J. 485. [SF450 Detail]

Download: Iowa-2019-SF450-Introduced.html
Senate File 450 - Introduced SENATE FILE 450 BY CELSI A BILL FOR An Act relating to energy efficiency plan filing requirements 1 for certain public utilities, and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2660XS (2) 88 gh/rn
S.F. 450 Section 1. Section 476.1A, subsection 1, Code 2019, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . g. Filing energy efficiency plans and energy 3 efficiency results with the board. The energy efficiency plans 4 as a whole shall be cost-effective. The board may permit these 5 utilities to file joint plans. The board shall periodically 6 report the energy efficiency results including energy savings 7 of each of these utilities to the general assembly. The board 8 may waive all or part of the energy efficiency filing and 9 review requirements for electric cooperative corporations and 10 associations and electric public utilities which demonstrate 11 superior results with existing energy efficiency efforts. 12 Sec. 2. Section 476.1B, subsection 1, Code 2019, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . m. Filing energy efficiency plans and energy 15 efficiency results with the board. The energy efficiency plans 16 as a whole shall be cost-effective. The board may permit these 17 utilities to file joint plans. The board shall periodically 18 report the energy efficiency results including energy savings 19 of each of these utilities to the general assembly. 20 Sec. 3. Section 476.6, subsection 15, Code 2019, is amended 21 to read as follows: 22 15. Energy efficiency implementation, cost review, and cost 23 recovery. 24 a. (1) (a) Electric Gas and electric utilities required 25 to be rate-regulated under this chapter shall file five-year 26 energy efficiency plans and demand response plans with the 27 board. Gas utilities required to be rate-regulated under 28 this chapter shall file five-year energy efficiency plans 29 with the board. An energy efficiency plan and budget or a 30 demand response plan and budget shall include a range of energy 31 efficiency or demand response programs, tailored to the needs 32 of all customer classes, including residential, commercial, 33 and industrial customers, for energy efficiency opportunities. 34 The plans shall include programs for qualified low-income 35 -1- LSB 2660XS (2) 88 gh/rn 1/ 7
S.F. 450 persons including a cooperative program with any community 1 action agency within the utility’s service area to implement 2 countywide or communitywide energy efficiency programs for 3 qualified low-income persons. Rate-regulated gas and electric 4 utilities shall utilize Iowa agencies and Iowa contractors to 5 the maximum extent cost-effective in their energy efficiency 6 plans or demand response plans filed with the board. 7 (b) The board shall allow a customer of an electric utility 8 that is required to be rate-regulated to request an exemption 9 from participation in any five-year energy efficiency plan 10 offered by an electric utility if the energy efficiency plan 11 and demand response plan, at the time of approval by the board, 12 have a cumulative rate-payer impact test result of less than 13 one. Upon receipt of a request for exemption submitted by 14 a customer, the electric utility shall grant the exemption 15 and, beginning January 1 of the following year, the customer 16 shall no longer be assessed the costs of the plan and shall be 17 prohibited from participating in any program included in such 18 plan until the exemption no longer applies, as determined by 19 the board. 20 (2) Gas and electric utilities required to be 21 rate-regulated under this chapter may request an energy 22 efficiency plan or demand response plan modification during the 23 course of a five-year plan. A modification may be requested 24 due to changes in funding as a result of public utility 25 customers requesting exemptions from the plan or for any other 26 reason identified by the gas or electric utility. The board 27 shall take action on a modification request made by a gas or 28 electric utility within ninety days after the modification 29 request is filed. If the board fails to take action within 30 ninety days after a modification request is filed, the 31 modification request shall be deemed approved. 32 (3) The board shall adopt rules pursuant to chapter 17A 33 establishing reasonable processes and procedures for utility 34 customers from any customer class to request exemptions 35 -2- LSB 2660XS (2) 88 gh/rn 2/ 7
S.F. 450 from energy efficiency plans that meet the requirements of 1 subparagraph (1), subparagraph division (b). The rules adopted 2 by the board shall only apply to electric utilities that are 3 required to be rate-regulated. 4 b. A gas and electric utility required to be rate-regulated 5 under this chapter shall assess potential energy and capacity 6 savings available from actual and projected customer usage 7 by applying commercially available technology and improved 8 operating practices to energy-using equipment and buildings. 9 The utility shall submit the assessment to the board. Upon 10 receipt of the assessment, the board shall consult with the 11 economic development authority to develop specific capacity 12 and energy savings performance standards for each utility. 13 The utility shall submit an energy efficiency plan which 14 shall include economically achievable programs designed to 15 attain these energy and capacity performance standards. The 16 board shall periodically report the energy efficiency results 17 including energy savings of each utility to the general 18 assembly. 19 c. (1) The board shall conduct contested case proceedings 20 for review of energy efficiency plans , demand response plans, 21 and budgets filed by gas and electric utilities required to be 22 rate-regulated under this chapter . 23 (2) Notwithstanding the goals developed pursuant to 24 paragraph “b” , the board shall not require a gas utility to 25 adopt an energy efficiency plan that results in projected 26 cumulative average annual costs that exceed one and one-half 27 percent of the gas utility’s expected annual Iowa retail rate 28 revenue from retail customers in the state, shall not require 29 an electric utility to adopt an energy efficiency plan that 30 results in projected cumulative average annual costs that 31 exceed two percent of the electric utility’s expected annual 32 Iowa retail rate revenue from retail customers in the state, 33 and shall not require an electric utility to adopt a demand 34 response plan that results in projected cumulative average 35 -3- LSB 2660XS (2) 88 gh/rn 3/ 7
S.F. 450 annual costs that exceed two percent of the electric utility’s 1 expected annual Iowa retail rate revenue from retail customers 2 in the state. For purposes of determining the two percent 3 threshold amount, the board shall exclude from an electric 4 utility’s expected annual Iowa retail rate revenue the revenues 5 expected from customers that have received exemptions from 6 energy efficiency plans pursuant to paragraph “a” . This 7 subparagraph shall apply to energy efficiency plans and demand 8 response plans that are effective on or after January 1, 2019. 9 (3) (2) The board may approve, reject, or modify the plans 10 and budgets. Notwithstanding the provisions of section 17A.19, 11 subsection 5 , in an application for judicial review of the 12 board’s decision concerning a utility’s energy efficiency plan 13 or budget, the reviewing court shall not order a stay. 14 (4) (3) The board shall approve, reject, or may modify 15 a plan filed pursuant to this subsection no later than March 16 31, 2019. If the board fails to approve, reject, or modify a 17 plan filed by a gas or electric utility on or before such date, 18 any energy efficiency plan or budget filed by the a gas or 19 electric utility that was approved by the board prior to May 4, 20 2018, shall be terminated. The board shall not require a gas 21 or electric utility to implement an energy efficiency plan or 22 demand response plan that does not the effective date of this 23 Act, or require a gas or electric utility to file a new energy 24 efficiency plan or budget on or after the effective date of 25 this Act, to ensure that gas and electric utilities implement 26 energy efficiency plans and budgets which meet the requirements 27 of this subsection . 28 (5) (4) Whenever a request to modify an approved plan or 29 budget is filed subsequently by the office of consumer advocate 30 or a gas or electric utility required to be rate-regulated 31 under this chapter , the board shall promptly initiate a formal 32 proceeding if the board determines that any reasonable ground 33 exists for investigating the request. The formal proceeding 34 may be initiated at any time by the board on its own motion. 35 -4- LSB 2660XS (2) 88 gh/rn 4/ 7
S.F. 450 Implementation of board-approved plans or budgets shall 1 be considered continuous in nature and shall be subject to 2 investigation at any time by the board or the office of the 3 consumer advocate. 4 d. Notice to customers of a contested case proceeding for 5 review of energy efficiency plans , demand response plans, and 6 budgets shall be in a manner prescribed by the board. 7 e. (1) A gas or electric utility required to be 8 rate-regulated under this chapter may recover, through an 9 automatic adjustment mechanism filed pursuant to subsection 8 , 10 over a period not to exceed the term of the plan, the costs of 11 an energy efficiency plan or demand response plan approved by 12 the board in a contested case proceeding conducted pursuant to 13 paragraph “c” . Customers that have been granted exemptions from 14 energy efficiency plans pursuant to paragraph “a” , shall not 15 be charged for recovery of energy efficiency costs beginning 16 January 1 of the year following the year in which the customer 17 was granted the exemption. 18 (2) The board shall periodically conduct a contested case 19 proceeding to evaluate the reasonableness and prudence of the 20 utility’s implementation of an approved energy efficiency 21 or demand response plan and budget. If a utility is not 22 taking all reasonable actions to cost-effectively implement 23 an approved energy efficiency plan, the board shall not allow 24 the utility to recover from customers costs in excess of those 25 costs that would be incurred under reasonable and prudent 26 implementation and shall not allow the utility to recover 27 future costs at a level other than what the board determines 28 to be reasonable and prudent. If the result of a contested 29 case proceeding is a judgment against a utility, that utility’s 30 future level of cost recovery shall be reduced by the amount 31 by which the programs were found to be imprudently conducted. 32 Beginning January 1, 2019, a gas or electric utility shall 33 represent energy efficiency and demand response in customer 34 billings as a separate cost or expense. 35 -5- LSB 2660XS (2) 88 gh/rn 5/ 7
S.F. 450 f. A rate-regulated utility required to submit an energy 1 efficiency plan under this subsection shall, upon the request 2 of a state agency or political subdivision to which it provides 3 service, provide advice and assistance regarding measures 4 which the state agency or political subdivision might take in 5 achieving improved energy efficiency results. The cooperation 6 shall include assistance in accessing financial assistance for 7 energy efficiency measures. 8 Sec. 4. Section 476.6, Code 2019, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 16A. Energy efficiency program 11 financing. The board may require each rate-regulated gas 12 or electric public utility to offer qualified customers the 13 opportunity to enter into an agreement for the amount of 14 moneys reasonably necessary to finance cost-effective energy 15 efficiency improvements to the qualified customers’ residential 16 dwellings or businesses. 17 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 18 importance, takes effect upon enactment. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill modifies energy efficiency plan filing 23 requirements for certain public utilities. 24 Current law exempts electric public utilities with fewer 25 than 10,000 customers, electric cooperative corporations and 26 associations, and municipally owned utilities furnishing gas or 27 electricity from regulation by the Iowa utilities board, unless 28 otherwise specified in law. The bill requires such entities to 29 file energy efficiency plans and energy efficiency results with 30 the board, as described in the bill. 31 Current Code section 476.6(15) requires rate-regulated 32 electric utilities to file five-year energy efficiency plans 33 and demand response plans with the board, and rate-regulated 34 gas utilities to file five-year energy efficiency plans with 35 -6- LSB 2660XS (2) 88 gh/rn 6/ 7
S.F. 450 the board. Current law allows electric utility customers to 1 request exemptions from participation in energy efficiency 2 plans and gas and electric utilities to request plan 3 modifications. A gas utility is not required to adopt a plan 4 that results in projected cumulative average annual costs 5 that exceed one and one-half percent of its expected annual 6 Iowa retail rate revenue, whereas an electric utility is not 7 required to adopt a plan that results in projected cumulative 8 average annual costs that exceed 2 percent of its expected 9 annual Iowa retail rate revenue. 10 The bill removes references to “five-year” and “demand 11 response plans” throughout Code section 476.6(15), thereby 12 requiring rate-regulated gas and electric utilities to file 13 energy efficiency plans with the board, as described in the 14 bill. The bill removes provisions allowing electric utility 15 customers to request exemptions from participation in energy 16 efficiency plans and gas and electric utilities to request plan 17 modifications. The bill also removes provisions which limit a 18 gas or electric utility’s plan to no more than one and one-half 19 percent or 2 percent of the utility’s expected annual Iowa 20 retail rate revenue, as applicable. 21 The bill allows the board to modify any energy efficiency 22 plan or budget approved prior to the effective date of the 23 bill, or require a gas or electric utility to file a new energy 24 efficiency plan or budget on or after such date, to ensure 25 that gas and electric utilities implement energy efficiency 26 plans and budgets which meet the requirements of the bill. The 27 bill also allows the office of consumer advocate to request to 28 modify an approved energy efficiency plan or budget, as well as 29 a rate-regulated gas or electric utility. 30 The bill allows the board to require each rate-regulated 31 gas or electric utility to offer energy efficiency program 32 financing to qualified customers, as described in the bill. 33 The bill takes effect upon enactment. 34 -7- LSB 2660XS (2) 88 gh/rn 7/ 7
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