Bill Text: IA SSB3084 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to rate regulatory proceedings before the utilities board within the utilities division of the department of commerce.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-01-28 - Subcommittee: Breitbach, Bisignano, and Dawson. [SSB3084 Detail]
Download: Iowa-2019-SSB3084-Introduced.html
Senate
Study
Bill
3084
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
rate
regulatory
proceedings
before
the
1
utilities
board
within
the
utilities
division
of
the
2
department
of
commerce.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
476.6,
subsection
7,
Code
2020,
is
1
amended
to
read
as
follows:
2
7.
Limitation
on
filings.
3
a.
A
public
utility
that
utilizes
a
historic
test
year
in
a
4
rate
regulatory
proceeding
pursuant
to
section
476.33
shall
not
5
make
a
subsequent
filing
of
an
application
for
a
new
or
changed
6
rate,
charge,
schedule,
or
regulation
which
relates
to
services
7
for
which
a
rate
filing
is
pending
within
twelve
months
8
following
the
date
the
prior
application
was
filed
or
until
9
the
board
has
issued
a
final
order
on
the
prior
application,
10
whichever
date
is
earlier,
unless
the
public
utility
applies
11
to
the
board
for
authority
and
receives
authority
to
make
a
12
subsequent
filing
at
an
earlier
date.
13
b.
A
public
utility
that
utilizes
a
future
test
year
in
a
14
rate
regulatory
proceeding
pursuant
to
section
476.33
shall
15
not
file
an
application
for
a
new
or
changed
rate,
charge,
16
schedule,
or
regulation
within
twenty-four
months
following
17
the
date
the
board
has
issued
a
final
order
related
to
the
18
subsequent
proceeding
unless
the
public
utility
applies
to
the
19
board
for
authority
and
receives
authority
to
make
a
subsequent
20
filing
at
an
earlier
date.
21
Sec.
2.
Section
476.6,
subsection
9,
paragraph
a,
Code
2020,
22
is
amended
to
read
as
follows:
23
a.
A
If
a
public
utility
utilizes
a
historic
test
year
in
24
a
rate
regulatory
proceeding
pursuant
to
section
476.33,
the
25
public
utility
may
choose
to
place
in
effect
temporary
rates,
26
charges,
schedules,
or
regulations
without
board
review
on
or
27
after
ten
days
following
the
filing
date
under
this
section
.
28
If
the
utility
chooses
to
place
such
rates,
charges,
schedules,
29
or
regulations
in
effect,
the
utility
shall
file
with
the
30
board
a
bond
or
other
corporate
undertaking
approved
by
the
31
board
conditioned
upon
the
refund
in
a
manner
prescribed
by
32
the
board
of
amounts
collected
in
excess
of
the
amounts
which
33
would
have
been
collected
under
rates,
charges,
schedules,
or
34
regulations
finally
approved
by
the
board.
At
the
conclusion
35
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of
the
proceeding
if
the
board
determines
that
the
temporary
1
rates,
charges,
schedules,
or
regulations
placed
in
effect
2
under
this
paragraph
were
not
based
on
previously
established
3
regulatory
principles,
the
board
shall
consider
ordering
4
refunds
based
upon
the
overpayments
made
by
each
individual
5
customer
class,
rate
zone,
or
customer
group.
If
the
board
6
has
not
rendered
a
final
decision
with
respect
to
suspended
7
rates,
charges,
schedules,
or
regulations
upon
the
expiration
8
of
ten
months
after
the
filing
date,
plus
the
length
of
any
9
delay
that
necessarily
results
either
from
the
failure
of
the
10
public
utility
to
exercise
due
diligence
in
connection
with
11
the
proceedings
or
from
intervening
judicial
proceedings,
12
plus
the
length
of
any
extension
permitted
by
section
476.33,
13
subsection
3
,
then
such
temporary
rates,
charges,
schedules,
or
14
regulations
placed
into
effect
on
a
temporary
basis
shall
be
15
deemed
finally
approved
by
the
board
and
the
utility
may
place
16
them
into
effect
on
a
permanent
basis.
17
Sec.
3.
Section
476.33,
subsection
4,
unnumbered
paragraph
18
1,
Code
2020,
is
amended
to
read
as
follows:
19
The
board
shall
adopt
rules
that
require
the
board,
in
20
rate
regulatory
proceedings
under
sections
476.3
,
to
utilize
21
a
historic
test
year,
and
in
rate
regulatory
proceedings
22
under
section
476.6
,
to
utilize
either
a
historic
test
year
23
or
a
future
test
year
at
the
rate-regulated
public
utility’s
24
discretion.
25
Sec.
4.
Section
476.33,
subsection
4,
paragraph
b,
Code
26
2020,
is
amended
to
read
as
follows:
27
b.
For
a
rate
regulatory
proceeding
utilizing
a
future
test
28
year,
the
rules
shall
require
the
board
to
consider
the
use
29
of
any
twelve-month
period
beginning
no
later
than
the
date
30
on
which
a
proposed
rate
change
is
expected
to
take
effect
in
31
determining
just
and
reasonable
rates.
The
rules
shall
also
32
require
the
board
to
conduct
initiate
a
proceeding
subsequent
33
to
within
eighteen
months
after
the
effective
date
of
a
rate
34
resulting
from
a
rate
regulatory
proceeding
utilizing
a
future
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test
year
to
determine
whether
the
actual
costs
and
revenues
1
are
reasonably
consistent
with
those
approved
by
the
board.
If
2
the
actual
costs
and
revenues
are
not
reasonably
consistent
3
with
those
approved
by
the
board
board
determines
a
public
4
utility’s
rates
are
excessive
,
the
board
shall
adjust
reduce
5
the
rates
accordingly
and
shall
order
refunds
based
upon
the
6
overpayment
made
by
each
customer
class,
rate
zone,
or
customer
7
group.
The
refund
shall
include
interest
as
determined
by
8
the
board
pursuant
to
section
476.6,
subsection
9,
paragraph
9
“c”
.
For
a
rate
regulatory
proceeding
utilizing
a
future
test
10
year,
the
board
may
shall
also
adopt
rules
regarding
evidence
11
required,
information
to
support
forecasts,
and
any
reporting
12
obligations.
The
board
may
shall
also
adopt
rules
regarding
13
the
conditions
under
which
a
public
utility
that
utilizes
a
14
future
test
year
may
subsequently
utilize
a
historic
test
year.
15
A
public
utility
shall
not
be
precluded
from
filing
a
rate
16
regulatory
proceeding
utilizing
a
future
test
year
prior
to
the
17
adoption
of
any
rules
pursuant
to
this
subsection
.
A
public
18
utility
utilizing
a
future
test
year
in
a
rate
regulatory
19
proceeding
shall
not
do
any
of
the
following:
20
(1)
Place
in
effect
temporary
rates,
charges,
schedules,
or
21
regulations
pursuant
to
section
476.6,
subsection
9,
paragraph
22
“a”
.
23
(2)
Propose
the
use
of
multiple
future
test
years
in
the
24
same
rate
regulatory
proceeding.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
rate
regulatory
proceedings
before
the
29
utilities
board
within
the
utilities
division
of
the
department
30
of
commerce.
31
Current
law
provides
that
a
public
utility
shall
not,
32
without
the
approval
of
the
board,
make
a
subsequent
filing
of
33
an
application
or
a
new
or
changed
rate,
charge,
schedule,
or
34
regulation
which
relates
to
services
for
which
a
rate
filing
35
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is
pending
within
12
months
following
the
date
the
prior
1
application
was
filed
or
the
board
has
issued
a
final
order
on
2
the
prior
application,
whichever
date
is
earlier.
The
bill
3
limits
this
prohibition
to
a
public
utility
that
utilizes
a
4
historic
test
year
in
a
rate
regulatory
proceeding
pursuant
to
5
Code
section
476.33.
The
bill
prohibits
a
public
utility
that
6
utilizes
a
future
test
year
in
a
rate
regulatory
proceeding
7
under
Code
section
476.33
from
filing
an
application
for
a
new
8
or
changed
rate,
charge,
schedule,
or
regulation
within
24
9
months
following
the
date
the
board
has
issued
a
final
order
10
related
to
the
proceeding,
unless
the
board
approves
an
earlier
11
filing.
12
Current
law
allows
public
utilities
to
place
in
effect
13
temporary
rates,
charges,
schedules,
or
regulations
without
14
board
review
on
or
after
10
days
following
the
filing
date
15
under
Code
section
476.6.
The
bill
provides
only
a
public
16
utility
that
utilizes
a
historic
test
year
under
Code
section
17
476.33
may
place
in
effect
such
temporary
rates,
charges,
18
schedules,
or
regulations.
19
Current
law
provides
that
the
board
is
to
adopt
rules
that
20
require
the
board
to
utilize
either
a
historic
test
year
21
or
a
future
test
year
in
rate
regulatory
proceedings
under
22
Code
section
476.3,
relating
to
the
reasonableness
of
rates,
23
charges,
schedules,
service,
regulations,
or
anything
done
24
or
omitted
to
be
done
by
a
public
utility,
or
Code
section
25
476.6,
relating
to
changes
in
rates,
charges,
schedules,
or
26
regulations.
The
bill
changes
this
provision
to
require
the
27
board
to
utilize
only
a
historic
test
year,
rather
than
a
28
future
test
year,
in
rate
regulatory
proceedings
under
Code
29
section
476.3.
30
Current
law
provides
the
rules
adopted
by
the
board
shall
31
require
the
board
to
conduct
a
proceeding
subsequent
to
the
32
effective
date
of
a
rate
resulting
from
a
rate
regulatory
33
proceeding
utilizing
a
future
test
year
to
determine
whether
34
the
actual
costs
and
revenues
are
reasonably
consistent
with
35
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those
approved
by
the
board.
The
bill
provides
the
rules
1
adopted
by
the
board
shall
require
the
board
to
initiate
the
2
proceeding
within
18
months
after
the
effective
date.
3
Current
law
provides
that
if
the
proceeding
results
in
4
the
board
determining
the
actual
costs
and
revenues
are
not
5
reasonably
consistent
with
those
approved
by
the
board,
the
6
board
shall
adjust
the
rates
accordingly.
The
bill
provides
7
that
the
board
shall
order
refunds
based
on
overpayments
by
8
a
customer
class,
rate
zone,
or
customer
group
of
revenues
9
collected
after
the
effective
date
of
the
rate
that
the
board
10
determines
to
be
excessive.
The
bill
also
provides
the
refunds
11
are
to
include
interest
as
determined
by
the
board
pursuant
to
12
Code
section
476.6,
subsection
9,
paragraph
“c”.
13
Current
law
provides,
for
a
rate
regulatory
proceeding
14
utilizing
a
future
test
year,
that
the
board
may
adopt
rules
15
regarding
evidence
required,
information
to
support
forecasts,
16
any
reporting
obligations,
and
rules
regarding
the
conditions
17
under
which
a
public
utility
that
utilizes
a
future
test
year
18
may
subsequently
utilize
a
historic
test
year.
The
bill
19
provides
the
board
is
required
to
adopt
rules
in
each
of
these
20
instances.
21
The
bill
provides
that
a
public
utility
utilizing
a
future
22
test
year
in
a
rate
regulatory
proceeding
shall
not
place
in
23
effect
temporary
rates,
charges,
schedules,
or
regulations
24
pursuant
to
Code
section
476.6,
subsection
9,
paragraph
“a”,
or
25
propose
the
use
of
multiple
future
test
years
in
the
same
rate
26
regulatory
proceeding.
27
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