Bill Text: IA SF583 | 2019-2020 | 88th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to billing methods that may be utilized in connection with distributed generation facilities. (Formerly SSB 1201.) Effective date: 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-03-12 - Signed by Governor. S.J. 614. [SF583 Detail]
Download: Iowa-2019-SF583-Introduced.html
Bill Title: A bill for an act relating to billing methods that may be utilized in connection with distributed generation facilities. (Formerly SSB 1201.) Effective date: 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-03-12 - Signed by Governor. S.J. 614. [SF583 Detail]
Download: Iowa-2019-SF583-Introduced.html
Senate
File
583
-
Introduced
SENATE
FILE
583
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
1201)
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
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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
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(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
5.
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
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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
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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
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
35
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
establishes
new
Code
section
476.49,
relating
to
2
electric
utility
rates
and
infrastructure
support
options
for
3
private
generation
customers.
4
The
bill
defines
“private
generation
customer”
to
mean
an
5
electric
utility
customer
who
utilizes
a
private
generation
6
facility.
“Private
generation
facility”
is
defined
as
an
7
alternate
energy
production
facility
as
defined
in
Code
section
8
476.42
that
is
owned,
leased,
operated
by,
or
operated
on
9
behalf
of
a
private
generation
customer
and
whose
production
10
of
electricity
is
used
to
offset
a
portion
or
all
of
the
11
customer’s
electricity
bill
or
usage
that
would
otherwise
12
be
purchased
from
an
electric
utility,
but
does
not
include
13
certain
facilities
described
in
the
bill.
14
The
bill
provides
that
the
general
assembly
recognizes
15
the
importance
of
electric
utility
infrastructure,
including
16
generation,
transmission,
and
distribution
systems,
to
provide
17
electric
service
to
all
customers
in
Iowa.
The
general
18
assembly
also
recognizes
that
tariffs
are
traditionally
19
designed
for
the
provision
of
full
electric
service
to
20
customers,
not
taking
private
generation
into
account.
The
21
bill
specifies
that
it
is
the
intent
of
the
general
assembly
22
to
require
private
generation
customers
to
pay
their
share
23
of
costs
of
electric
utility
infrastructure,
and
to
provide
24
private
generation
customers
with
options
to
pay
their
share
of
25
costs.
26
The
bill
allows
rate-regulated
electric
utilities
to
file
27
tariffs
with
the
Iowa
utilities
board
applicable
to
any
private
28
generation
customer
who
utilizes
a
private
generation
facility
29
installed
on
or
after
the
date
a
tariff
is
approved
pursuant
to
30
the
bill.
All
tariff
rates
charged
to
a
customer
shall
recover
31
the
electric
utility’s
actual
cost
of
providing
service
to
the
32
applicable
customer
class.
33
The
bill
provides
that
tariffs
filed
pursuant
to
the
bill
34
shall
be
designed
to
ensure
that
a
private
generation
customer
35
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pays
for
electric
utility
infrastructure
costs
and
shall
1
require
a
private
generation
customer
to
choose
from
one
of
2
several
rate
structures
described
in
the
bill.
3
The
bill
provides
that
the
board
shall
review
a
tariff
for
4
compliance
with
the
bill
and
shall
approve
the
tariff
as
filed
5
or
docket
the
tariff
for
review
in
a
formal
proceeding,
and
6
thereafter
either
approve
the
tariff
or
modify
the
tariff
to
7
meet
compliance
within
six
months
of
the
date
of
docketing.
8
If
the
board
fails
to
review
the
tariff
within
six
months
9
of
the
date
of
filing,
the
tariff
is
deemed
approved.
An
10
approved
tariff
shall
supersede
any
previously
approved
tariffs
11
applicable
to
private
generation
customers,
except
as
provided
12
in
the
bill.
13
The
bill
provides
that
a
private
generation
customer
who
14
utilizes
a
private
generation
facility
pursuant
to
a
tariff
15
approved
by
the
board
on
or
before
the
effective
date
of
the
16
bill
may
continue
to
receive
electric
service
pursuant
to
the
17
preexisting
tariff
for
the
remaining
duration
of
the
contract
18
involving
the
facility,
regardless
of
any
subsequent
change
in
19
ownership
of
such
facility.
If
the
private
generation
customer
20
terminates
electric
service
with
the
utility,
the
preexisting
21
tariff
shall
no
longer
apply
and
the
customer
shall
be
required
22
to
receive
electric
service
pursuant
to
a
tariff
approved
in
23
accordance
with
the
bill,
if
such
tariff
was
filed
with
the
24
board.
25
The
bill
provides
that
nothing
in
the
bill
shall
preclude
a
26
customer
from
entering
into
a
contract
with
an
electric
utility
27
as
an
alternate
energy
production
facility,
cogeneration
and
28
small
power
production
facility,
or
a
standby
and
supplemental
29
power
service
customer
under
the
terms
of
the
electric
30
utility’s
separate
tariffs
filed
pursuant
to
specified
federal
31
law.
32
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