Senate
Study
Bill
1157
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
BROWN)
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
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Section
1.
Section
476.1A,
Code
2023,
is
amended
to
read
as
1
follows:
2
476.1A
Applicability
of
authority
——
certain
electric
3
utilities.
4
1.
Electric
public
utilities
having
fewer
than
ten
5
thousand
customers
and
electric
cooperative
corporations
and
6
associations
are
not
subject
to
the
regulation
authority
of
the
7
board,
except
for
regulatory
action
pertaining
to
all
of
the
8
following:
9
a.
Assessment
of
fees
for
the
support
of
the
division
and
10
the
office
of
consumer
advocate,
pursuant
to
section
476.10
.
11
b.
Safety
standards
and
engineering
standards
for
equipment,
12
operations,
and
procedures
.
13
c.
Assigned
area
areas
of
service
,
as
set
forth
in
sections
14
476.22
through
476.26
.
15
d.
Pilot
projects
of
the
board
Public
utility
railroad
16
crossings,
as
set
forth
in
476.27
.
17
e.
Filing
alternate
energy
purchase
program
plans
with
the
18
board,
and
offering
such
programs
to
customers,
pursuant
to
19
section
476.47
.
20
2.
However,
sections
476.20,
subsections
1
through
4
,
21
476.21
,
476.51
,
476.56
,
476.58,
476.62
,
and
476.66
and
chapters
22
476A
and
478
,
to
the
extent
applicable,
apply
to
such
electric
23
utilities.
24
3.
Electric
cooperative
corporations
and
associations
25
and
electric
public
utilities
exempt
from
rate
regulation
26
under
this
section
shall
not
make
or
grant
any
unreasonable
27
preferences
or
advantages
as
to
rates
or
services
to
any
28
person
or
subject
any
person
to
any
unreasonable
prejudice
or
29
disadvantage.
30
4.
The
board
of
directors
or
the
membership
of
an
electric
31
cooperative
corporation
or
association
otherwise
exempt
32
from
rate
regulation
may
elect
to
have
the
cooperative’s
33
rates
regulated
by
the
board.
The
board
shall
adopt
rules
34
prescribing
the
manner
in
which
the
board
of
directors
or
the
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membership
of
an
electric
cooperative
may
so
elect.
If
the
1
board
of
directors
or
the
membership
of
an
electric
cooperative
2
has
elected
to
have
the
cooperative’s
rates
regulated
by
the
3
board,
after
two
years
have
elapsed
from
the
effective
date
of
4
such
election
the
board
of
directors
or
the
membership
of
the
5
electric
cooperative
may
elect
to
exempt
the
cooperative
from
6
the
rate
regulation
authority
of
the
board,
provided,
however,
7
that
if
the
membership
elected
to
have
the
cooperative’s
rates
8
regulated
by
the
board,
only
the
membership
may
elect
to
exempt
9
the
cooperative
from
the
rate
regulation
authority
of
the
10
board.
11
5.
An
electric
utility
subject
to
regulatory
action
12
pursuant
to
this
section
is
subject
to
complaints
and
13
investigations
as
set
forth
in
section
476.3,
but
only
with
14
regard
to
matters
within
the
regulatory
authority
of
the
board
15
as
set
forth
in
subsections
1
and
2.
16
6.
As
used
in
this
section:
17
a.
“Engineering
standards”
means
standards
adopted
by
the
18
American
national
standards
institute,
or
the
institute
of
19
electrical
and
electronics
engineers,
rural
utilities
service,
20
or
comparable
engineering
organization
or
engineering
standards
21
adopted
by
the
board.
22
b.
“Rates”
means
the
same
as
defined
in
section
384.80
23
and
includes
all
charges
or
fees
imposed
or
collected
for
the
24
provision
of
or
incidental
to
utility
service.
25
c.
“Safety
standards”
means
applicable
regulations
26
promulgated
by
the
United
States
occupational
safety
and
health
27
administration
and
by
Iowa
occupational
safety
and
health
by
28
the
administration.
Safety
standards
for
electric
utilities
29
subject
to
this
section
also
include
outage
notifications,
30
safety
standards
contained
in
the
national
electric
safety
31
code,
as
published
by
the
institute
of
electrical
and
32
electronic
engineers,
inc.,
and
electric
safety
standards
33
approved
by
the
American
national
standards
institute.
34
Sec.
2.
Section
476.1B,
Code
2023,
is
amended
to
read
as
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follows:
1
476.1B
Applicability
of
authority
——
municipally
owned
2
utilities.
3
1.
Unless
otherwise
specifically
provided
by
statute,
a
4
A
municipally
owned
utility
furnishing
gas
or
electricity
is
5
not
subject
to
the
regulation
by
authority
of
the
board
under
6
this
chapter
,
except
for
regulatory
action
pertaining
to
the
7
following
:
8
a.
Assessment
of
fees
for
the
support
of
the
division
9
and
the
office
of
consumer
advocate,
as
set
forth
in
section
10
476.10
.
11
b.
Safety
standards.
12
c.
Assigned
areas
of
service,
as
set
forth
in
sections
13
476.22
through
476.26
.
14
d.
Enforcement
of
civil
penalties
pursuant
to
section
15
476.51
.
16
e.
Disconnection
of
service,
as
set
forth
in
section
476.20,
17
subsections
1
through
4
.
18
f.
Encouragement
of
alternate
energy
production
facilities,
19
as
set
forth
in
sections
476.41
through
476.45
.
20
g.
Enforcement
of
section
476.56
.
21
h.
Enforcement
of
section
476.66
.
22
i.
Enforcement
of
section
476.62
.
23
d.
Public
utility
railroad
crossings,
as
set
forth
in
24
section
476.27.
25
j.
e.
An
electric
power
agency
as
defined
in
chapter
26
28F
and
section
390.9
that
includes
as
a
member
a
city
or
27
municipally
owned
utility
that
builds
transmission
facilities
28
after
July
1,
2001,
is
subject
to
applicable
transmission
29
reliability
rules
or
standards
adopted
by
the
board
for
those
30
facilities.
31
k.
f.
Filing
alternate
energy
purchase
program
plans
with
32
the
board,
and
offering
such
programs
to
customers,
pursuant
33
to
section
476.47
.
34
2.
The
board
may
waive
all
or
part
of
the
energy
efficiency
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filing
and
review
requirements
for
municipally
owned
utilities
1
which
demonstrate
superior
results
with
existing
energy
2
efficiency
efforts
Sections
476.20,
subsections
1
through
4,
3
476.51,
476.56,
476.58,
476.62,
and
476.66
and
chapters
476A
4
and
478,
to
the
extent
applicable,
apply
to
such
electric
and
5
gas
utilities
.
6
3.
Unless
otherwise
specifically
provided
by
statute,
a
A
7
municipally
owned
utility
providing
local
exchange
services
8
is
not
subject
to
the
regulation
by
authority
of
the
board
9
under
this
chapter
except
for
regulatory
action
pertaining
to
10
the
enforcement
of
sections
476.10,
476.95
,
476.95A
,
476.95B
,
11
476.100
,
and
476.102
,
and
476.103
.
12
4.
An
electric
utility
subject
to
regulatory
action
13
pursuant
to
this
section
is
subject
to
complaints
and
14
investigations
as
set
forth
in
section
476.3,
but
only
with
15
regard
to
matters
within
the
regulatory
authority
of
the
board
16
as
set
forth
in
subsections
1
and
2.
17
Sec.
3.
Section
476.20,
subsection
3,
paragraph
a,
Code
18
2023,
is
amended
to
read
as
follows:
19
a.
The
board
shall
establish
adopt
rules
which
shall
be
20
uniform
with
respect
to
all
rate-regulated
public
utilities
21
furnishing
gas
or
electricity
relating
to
disconnection
22
of
service.
The
board
shall
adopt
rules
with
respect
to
23
electric
and
gas
utilities
subject
to
sections
476.1A
and
24
476.1B
that
prescribe
the
procedures
and
notice
requirements
25
for
the
disconnection
of
service
consistent
with
the
rules
26
for
rate-regulated
public
utilities,
but
such
rules
shall
27
not
regulate
the
rates
of
such
utilities.
This
subsection
28
applies
both
to
regulated
rate-regulated
utilities
,
utilities
29
subject
to
regulation
under
sections
476.1A
and
476.1B,
and
to
30
municipally
owned
utilities
and
unincorporated
villages
which
31
own
their
own
distribution
systems
,
and
violations
.
Violations
32
of
this
subsection
may
subject
the
utilities
a
utility
to
civil
33
penalties
under
section
476.51
.
34
Sec.
4.
Section
476.20,
subsection
5,
paragraph
a,
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unnumbered
paragraph
1,
Code
2023,
is
amended
to
read
as
1
follows:
2
The
board
shall
establish
rules
which
shall
be
uniform
with
3
respect
to
all
rate-regulated
public
utilities
furnishing
gas
4
or
electricity
relating
to
deposits
which
may
be
required
by
5
the
public
utility
for
the
initiation
or
reinstatement
of
6
service.
This
subsection
shall
not
apply
to
utilities
subject
7
to
section
476.1A,
or
to
municipally
owned
utilities
,
which
8
shall
be
governed
by
the
provisions
of
section
384.84
with
9
respect
to
deposits
and
payment
plans
for
delinquent
amounts
10
owed.
Municipally
owned
utilities
and
electric
utilities
11
that
are
not
required
to
be
rate-regulated
utilities
subject
12
to
section
476.1A
shall
not
be
subject
to
the
board’s
rules
13
in
regards
regard
to
deposits
,
rates
and
charges
for
the
14
disconnection
or
reinstatement
of
service,
and
payment
plans
15
for
delinquent
amounts
owed
and
repayment
of
past
due
debt.
16
Municipally
owned
utilities
and
electric
utilities
that
are
17
not
required
to
be
rate-regulated
utilities
subject
to
section
18
476.1A
shall
be
subject
to
the
board’s
rules
in
regards
to
19
payment
plans
made
prior
to
the
disconnection
of
services.
20
Sec.
5.
Section
592.9,
Code
2023,
is
amended
to
read
as
21
follows:
22
592.9
City
waterworks
utilities
and
utility
boards
.
23
All
proceedings
taken
prior
to
January
1,
1961
the
effective
24
date
of
this
Act
purporting
to
provide
for
the
establishment,
25
organization,
formation,
operation,
or
maintenance
of
a
city
26
waterworks
utility
or
utility
board
and
not
previously
declared
27
invalid
by
any
court,
are
legalized,
validated
and
confirmed.
28
All
such
proceedings
are
declared
to
be
legally
sufficient
to
29
create,
establish
and
authorize
the
maintenance
and
operation
30
of
a
city
waterworks
as
a
city
utility,
as
defined
in
section
31
362.2,
subsection
6
.
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
relates
to
the
regulation
of
specified
gas
and
1
electric
utilities.
2
The
bill
provides
that
electric
public
utilities
having
3
fewer
than
10,000
customers
and
electric
cooperative
4
corporations
and
associations
are
subject
to
regulatory
action
5
from
the
Iowa
utilities
board
(board)
regarding
public
utility
6
railroad
crossings.
The
bill
removes
regulation
authority
7
from
the
board
for
electric
public
utilities
having
fewer
8
than
10,000
customers
and
electric
cooperative
corporations
9
and
associations
regarding
pilot
projects
of
the
board.
The
10
bill
provides
that
such
utilities
are
subject
to
complaint
and
11
investigation
procedures
set
forth
in
Code
section
476.3.
The
12
bill
provides
definitions
for
“engineering
standards”,
“rates”,
13
and
“safety
standards”.
14
With
regard
to
municipally
owned
utilities
furnishing
gas
or
15
electricity,
the
bill
similarly
provides
that
such
utilities
16
are
subject
to
regulation
authority
regarding
public
utility
17
railroad
crossings.
The
bill
strikes
provisions
relating
to
18
waiver
of
energy
efficiency
filing
and
review
requirements,
19
civil
penalties
in
Code
section
476.51,
disconnection
20
of
service,
encouragement
of
alternate
energy
production
21
facilities,
enforcement
of
the
energy
costs
provided
in
Code
22
section
476.56,
enforcement
of
the
customer
contribution
23
fund
provided
in
Code
section
476.66,
and
enforcement
of
24
energy-efficient
lighting
requirements
provided
in
Code
25
section
476.62.
The
bill
adds
that
the
board
has
regulatory
26
authority
over
a
municipally
owned
utility
providing
local
27
exchange
services
regarding
Code
section
476.10,
relating
28
to
investigations,
and
Code
section
476.103,
relating
to
29
unauthorized
change
in
service.
The
bill
provides
that
30
disconnection
of
services
in
Code
section
476.20,
subsections
31
1
through
4,
civil
penalties
in
Code
section
476.51,
32
encouragement
of
alternate
energy
production
facilities,
energy
33
cost
requirements,
safety
of
distributed
generation
facilities,
34
customer
contribution
fund
requirements,
and
energy-efficient
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lighting
requirements,
Code
chapter
476A
relating
to
electric
1
power
generation
and
transmission,
and
Code
chapter
478
2
relating
to
electric
transmission
lines,
also
apply
to
3
municipally
owned
utilities
furnishing
gas
or
electricity.
The
4
bill
provides
that
disconnection
of
services
in
Code
section
5
476.20,
subsections
1
through
4,
civil
penalties
in
Code
6
section
476.51,
encouragement
of
alternate
energy
production
7
facilities,
energy
cost
requirements,
safety
of
distributed
8
generation
facilities,
customer
contribution
fund
requirements,
9
and
energy-efficient
lighting
requirements,
Code
chapter
476A
10
relating
to
electric
power
generation
and
transmission,
and
11
Code
chapter
478
relating
to
electric
transmission
lines,
12
also
apply
to
municipally
owned
utilities
furnishing
gas
or
13
electricity.
14
The
bill
changes
the
applicability
of
deposit-related
15
uniform
rules
established
by
the
board
from
all
public
16
utilities
furnishing
gas
or
electricity
to
rate-regulated
17
public
utilities
furnishing
gas
or
electricity
and
excludes
18
utilities
subject
to
Code
section
476.1A.
The
bill
provides
19
that
municipally
owned
utilities
and
utilities
subject
to
Code
20
section
476.1A
shall
not
be
subject
to
the
board’s
rules
in
21
regards
to
deposits,
rates,
charges
for
the
disconnection
or
22
reinstatement
of
service,
and
payment
plans
for
delinquent
23
amounts
owed
and
repayment
of
past-due
debt,
but
are
subject
to
24
rules
regarding
payment
plans
made
prior
to
the
disconnection
25
of
services.
26
The
bill
provides
that
all
proceedings
taking
place
27
before
the
effective
date
of
the
bill
for
the
establishment,
28
organization,
formation,
operation,
or
maintenance
of
a
city
29
utility
or
utility
board
that
were
not
previously
declared
30
invalid
shall
be
determined
to
be
legally
sufficient
to
create,
31
establish,
and
authorize
the
maintenance
and
operation
of
a
32
city
utility.
Current
law
provides
for
the
procedure
to
apply
33
exclusively
to
city
waterworks
processed
before
January
1,
34
1961.
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