Bill Text: IA SF583 | 2019-2020 | 88th General Assembly | Amended


Bill Title: A bill for an act relating to electric utility rates and infrastructure support options for private generation customers. (Formerly SSB 1201.)

Spectrum: Partisan Bill (? 1-0)

Status: (Engrossed) 2019-04-27 - Rereferred to Commerce. H.J. 1077. [SF583 Detail]

Download: Iowa-2019-SF583-Amended.html
Senate File 583 - Reprinted SENATE FILE 583 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1201) (As Amended and Passed by the Senate March 18, 2019 ) A BILL FOR An Act relating to electric utility rates and infrastructure 1 support options for private generation customers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 583 (4) 88 gh/rn/mb
S.F. 583 Section 1. NEW SECTION . 476.49 Private generation rates —— 1 infrastructure support options for customers. 2 1. The general assembly recognizes the importance of 3 electric utility infrastructure, including electric generation, 4 transmission, and distribution systems, to provide electric 5 service to all customers in this state, whether electricity 6 is generated by a public utility, by a customer, or on behalf 7 of a customer. The general assembly also recognizes that 8 tariffs for electric service are traditionally designed for 9 the provision of full electric service to customers, not 10 taking into account the private generation of electricity. It 11 is the intent of the general assembly to require customers 12 who utilize private generation to pay their share of costs 13 of electric utility infrastructure, thereby eliminating 14 cross-subsidization. It is also the intent of the general 15 assembly to provide private generation customers with options 16 to pay their share of costs. 17 2. For purposes of this section, unless the context 18 otherwise requires: 19 a. “Avoided cost” means the energy rate paid by an electric 20 utility for energy purchases from a private generation customer 21 established in the electric utility’s board-approved tariff for 22 cogeneration facilities and small power production facilities 23 and in accordance with section 476.43. 24 b. “Private generation customer” means an electric utility 25 customer who utilizes a private generation facility. 26 c. (1) “Private generation facility” means an alternate 27 energy production facility, as defined in section 476.42, that 28 is owned, leased, operated by, or operated on behalf of a 29 private generation customer and whose production of electricity 30 is used to offset a portion or all of the customer’s 31 electricity bill or usage that would otherwise be purchased 32 from an electric utility. 33 (2) “Private generation facility” does not include any of 34 the following: 35 -1- SF 583 (4) 88 gh/rn/mb 1/ 4
S.F. 583 (a) A cogeneration facility as defined in 18 C.F.R. pt. 292, 1 subpt. B, including without limitation combined heat and power 2 facilities. 3 (b) A facility that produces renewable fuel as defined 4 in section 214A.1, which is registered with the United 5 States environmental protection agency as a manufacturer, in 6 accordance with the requirements set forth in 40 C.F.R. §79.4. 7 (c) A facility that utilizes a de minimus amount of biomass 8 in its operations. For purposes of this subparagraph division, 9 “de minimus” means less than ten percent of all fuel utilized in 10 the generation processes. 11 (d) A private generation facility with a nameplate 12 generating capacity greater than one megawatt. 13 3. A rate-regulated electric utility may file tariffs with 14 the board applicable to any private generation customer who 15 utilizes a private generation facility installed on or after 16 the date a tariff is approved pursuant to subsection 4. All 17 tariff rates charged to a private generation customer for 18 electric service shall recover the electric utility’s actual 19 cost of providing electric service to the applicable customer 20 class, as determined by the board in the electric utility’s 21 most recently approved rate proceeding. Tariffs filed pursuant 22 to this section shall be designed to ensure that a private 23 generation customer pays for electric utility infrastructure 24 costs. Tariffs filed pursuant to this section shall require a 25 private generation customer to choose one of the following rate 26 structures for the provision of electric service: 27 a. A minimum infrastructure charge rate structure whereby 28 the private generation customer pays a minimum amount each 29 month, or the private generation customer’s applicable standard 30 electric service bill, whichever is higher. The private 31 generation customer’s applicable standard electric service 32 bill shall be calculated using the applicable standard retail 33 tariff. This tariff rate structure shall allow the private 34 generation facility to offset the private generation customer’s 35 -2- SF 583 (4) 88 gh/rn/mb 2/ 4
S.F. 583 energy usage, and shall allow excess energy to carry forward 1 in the form of excess energy credits to offset the private 2 generation customer’s energy usage in future billing periods. 3 This tariff rate structure shall also include an annual 4 cash-out of excess energy credits at a rate that does not 5 exceed the electric utility’s avoided cost. 6 b. A multi-part rate structure whereby rates applicable 7 to the customer include, at a minimum, a fixed basic service 8 charge, an energy charge designed to recover variable costs, 9 and a monthly demand charge designed to ensure that the 10 private generation customer pays for fixed electric utility 11 infrastructure costs. This tariff rate structure shall 12 allow the private generation facility to offset the private 13 generation customer’s energy usage, and shall allow excess 14 energy to carry forward in the form of excess energy credits to 15 offset the private generation customer’s energy usage in future 16 billing periods. This tariff rate structure shall also include 17 an annual cash-out of excess energy credits at a rate that does 18 not exceed the electric utility’s avoided cost. 19 c. A buy all and sell all rate structure whereby the private 20 generation facility’s output is measured separately from the 21 private generation customer’s consumption. All electricity 22 consumed shall be purchased from the electric utility and all 23 electricity generated shall be sold to the electric utility on 24 a monthly basis. Rates applicable to the private generation 25 customer for all electricity purchased from the electric 26 utility shall be the applicable standard retail tariff. 27 Rates applicable for electricity purchased from the private 28 generation customer shall not exceed the electric utility’s 29 avoided cost. 30 d. A rate structure filed by the electric utility that 31 recovers the electric utility’s cost of providing electric 32 service to the applicable customer class, subject to board 33 approval. 34 4. The board shall review a tariff filed pursuant to this 35 -3- SF 583 (4) 88 gh/rn/mb 3/ 4
S.F. 583 section for compliance with this section, and shall approve the 1 tariff as filed or docket the tariff for review in a formal 2 proceeding pursuant to section 476.6, and thereafter either 3 approve the tariff or modify the tariff to meet compliance 4 with this section within six months of the date of docketing. 5 If the board fails to complete a review of the tariff within 6 six months of the date of filing, the tariff shall be deemed 7 approved. A tariff approved pursuant to this subsection shall 8 supersede any previously approved tariffs applicable to private 9 generation customers, except as provided in subsection 5. 10 5. A private generation customer who utilizes a private 11 generation facility pursuant to a tariff approved by the board 12 on or before the effective date of this Act may continue to 13 receive electric service pursuant to the preexisting tariff for 14 the remaining duration of the contract involving the private 15 generation facility, regardless of any subsequent change in 16 ownership of such private generation facility. However, if the 17 private generation customer terminates electric service with 18 the electric utility, the preexisting tariff shall no longer 19 apply and the private generation customer shall be required to 20 receive electric service pursuant to a tariff approved pursuant 21 to subsection 4, provided that the electric utility filed such 22 tariff with the board. 23 6. Nothing in this section shall preclude a customer 24 from entering into a contract with an electric utility as an 25 alternate energy production facility, cogeneration and small 26 power production facility, or a standby and supplemental power 27 service customer under the terms of the electric utility’s 28 separate alternate energy production facility, cogeneration and 29 small power production facility, or standby and supplemental 30 power service tariffs filed pursuant to the federal Public 31 Utility Regulatory Policies Act of 1978, 16 U.S.C. §2601 et 32 seq. 33 -4- SF 583 (4) 88 gh/rn/mb 4/ 4
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