Bill Text: IA SF2311 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act modifying various provisions relating to public utilities, providing for a study of electric vehicle infrastructure support, and including effective date provisions. (Formerly SSB 3093.) Various effective dates; see section 20 of bill.
Spectrum: Committee Bill
Status: (Passed) 2018-05-04 - Signed by Governor. S.J. 1059. [SF2311 Detail]
Download: Iowa-2017-SF2311-Introduced.html
Senate File 2311 - Introduced SENATE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3093) A BILL FOR 1 An Act modifying various provisions relating to public 2 utilities. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5362SV (4) 87 gh/rn PAG LIN 1 1 Section 1. Section 28F.1, subsection 1, Code 2018, is 1 2 amended to read as follows: 1 3 1. This chapter provides a means for the joint financing 1 4 by public agencies of works or facilities useful and necessary 1 5 for the collection, treatment, purification, and disposal 1 6 in a sanitary manner of liquid and solid waste, sewage, 1 7 and industrial waste, facilities used for the conversion of 1 8 solid waste to energy, gasworks and facilities useful for 1 9 the delivery of natural gas service, and also electric power 1 10 facilities constructed within the state of Iowa, except that 1 11 hydroelectric power facilities may also be located in the 1 12 waters and on the dams of or on land adjacent to either side 1 13 of the Mississippi or Missouri river bordering the state of 1 14 Iowa, water supply systems, swimming pools or golf courses. 1 15 This chapter applies to the acquisition, construction, 1 16 reconstruction, ownership, operation, repair, extension, 1 17 or improvement of such works or facilities, by a separate 1 18 administrative or legal entity created pursuant to chapter 1 19 28E or chapter 389. When the legal entity created under 1 20 this chapter is comprised solely of cities, counties, and 1 21 sanitary districts established under chapter 358, or any 1 22 combination thereof or any combination of the foregoing with 1 23 other public agencies, the entity shall be both a corporation 1 24 and a political subdivision with the name under which it was 1 25 organized. The legal entity may sue and be sued, contract, 1 26 acquire and hold real and personal property necessary for 1 27 corporate purposes, adopt a corporate seal and alter the seal 1 28 at pleasure, and execute all the powers conferred in this 1 29 chapter. 1 30 Sec. 2. Section 28F.11, Code 2018, is amended to read as 1 31 follows: 1 32 28F.11 Eminent domain. 1 33 Any public agency participating in an agreement authorizing 1 34 the joint exercise of governmental powers pursuant to this 1 35 chapter may exercise its power of eminent domain to acquire 2 1 interests in property, under provisions of law then in effect 2 2 and applicable to the public agency, for the use of the entity 2 3 created to carry out the agreement, provided that the power of 2 4 eminent domain is not used to acquire interests in property 2 5 which is part of a system of facilities in existence, under 2 6 construction, or planned, for the generation, transmission 2 7 or sale of electric power, or for the transmission, 2 8 transportation, or sale of natural gas. In the exercise 2 9 of the power of eminent domain, the public agency shall 2 10 proceed in the manner provided by chapter 6B. Any interests 2 11 in property acquired are acquired for a public purpose, as 2 12 defined in chapter 6A, of the condemning public agency, and the 2 13 payment of the costs of the acquisition may be made pursuant 2 14 to the agreement or to any separate agreement between the 2 15 public agency and the entity or the other public agencies 2 16 participating in the entity or any of them. Upon payment of 2 17 costs, any property acquired is the property of the entity. 2 18 Sec. 3. Section 476.1, subsection 7, Code 2018, is amended 2 19 to read as follows: 2 20 7. The jurisdiction of the board under this chapter 2 21 shall include efforts designed to promote the use of energy 2 22 efficiency strategies byrate or service=regulatedgas and 2 23 electric utilities required to be rate=regulated. 2 24 Sec. 4. Section 476.1A, subsections 1, 2, and 4, Code 2018, 2 25 are amended to read as follows: 2 26 1. Electric public utilities having fewer than ten 2 27 thousand customers and electric cooperative corporations 2 28 and associations are not subject to therateregulation 2 29 authority of the board. Such utilities are subject to all 2 30 other regulation and enforcement activities of the board, 2 31 including, except for regulatory action pertaining to all of 2 32 the following: 2 33 a. Assessment of fees for the support of the division and 2 34 the office of consumer advocate, pursuant to section 476.10. 2 35 b. Safety and engineering standards for equipment, 3 1 operations, and procedures. 3 2 c. Assigned area of service. 3 3 d. Pilot projects of the board. 3 4 e. Assessment of fees for the support of the Iowa energy 3 5 center created in section 15.120 and the center for global and 3 6 regional environmental research established by the state board 3 7 of regents. This paragraph "e" is repealed July 1, 2022. 3 8 f. Filing alternate energy purchase program plans with the 3 9 board, and offering such programs to customers, pursuant to 3 10 section 476.47. 3 11 g. Filing energy efficiency plans and energy efficiency 3 12 results with the board. The energy efficiency plans as a 3 13 whole shall be cost=effective. The board may permit these 3 14 utilities to file joint plans.The board shall periodically 3 15 report the energy efficiency results including energy savings 3 16 of each of these utilities to the general assembly.The board 3 17 may waive all or part of the energy efficiency filing and 3 18 review requirements for electric cooperative corporations and 3 19 associations and electric public utilities which demonstrate 3 20 superior results with existing energy efficiency efforts. 3 21 2. However, sections 476.20, subsections 1 through 4, 3 22 476.21,476.41 through 476.44,476.51, 476.56, 476.62, and 3 23 476.66 and chapters 476A and 478, to the extent applicable, 3 24 apply to such electric utilities. 3 25 4. The board of directors or the membership of an electric 3 26 cooperative corporation or association otherwise exempt 3 27 from rate regulation may elect to have the cooperative's 3 28 rates regulated by the board. The board shall adopt rules 3 29 prescribing the manner in which the board of directors or the 3 30 membership of an electric cooperative may so elect. If the 3 31 board of directors or the membership of an electric cooperative 3 32 has elected to have the cooperative's rates regulated by the 3 33 board, after two years have elapsed from the effective date of 3 34 such election the board of directors or the membership of the 3 35 electric cooperative may elect to exempt the cooperative from 4 1 the rate regulation authority of the board, provided, however, 4 2 that if the membership elected to have the cooperative's rates 4 3 regulated by the board, only the membership may elect to exempt 4 4 the cooperative from the rate regulation authority of the 4 5 board. 4 6 Sec. 5. Section 476.1B, subsection 1, paragraph l, Code 4 7 2018, is amended to read as follows: 4 8 l. Filing energy efficiency plans and energy efficiency 4 9 results with the board. The energy efficiency plans as a whole 4 10 shall be cost=effective. The board may permit these utilities 4 11 to file joint plans.The board shall periodically report the 4 12 energy efficiency results including energy savings of each of 4 13 these utilities to the general assembly.4 14 Sec. 6. Section 476.2, subsection 6, Code 2018, is amended 4 15 by striking the subsection. 4 16 Sec. 7. Section 476.4, subsection 1, Code 2018, is amended 4 17 to read as follows: 4 18 1. Every public utility shall file with the board tariffs 4 19 showing the rates and charges for its public utility services 4 20 and the rules and regulations under which such services were 4 21 furnished, on April 1, 1963, which rates and charges shall be 4 22 subject to investigation by the board as provided in section 4 23 476.3, and upon such investigation the burden of establishing 4 24 the reasonableness of such rates and charges shall be upon the 4 25 public utility filing the same. These filings shall be made 4 26 under such rules as the board may prescribe within such time 4 27 and in such form as the board may designate. In prescribing 4 28 rules and regulations with respect to the form of tariffs 4 29 and any other regulations, the board shall, in the case of 4 30 public utilities subject to regulation by any federal agency, 4 31 give due regard to any corresponding rules and regulations of 4 32 such federal agency, to the end that unnecessary duplication 4 33 of effort and expense may be avoided so far as reasonably 4 34 possible. Each public utility shall keep copies of its tariffs 4 35 open to public inspection under such rules as the board may 5 1 prescribe. 5 2 Sec. 8. Section 476.6, subsections 1, 8, and 13, Code 2018, 5 3 are amended to read as follows: 5 4 1. Filing with board. A public utility subject to rate 5 5 regulation shall not make effective a new or changed rate, 5 6 charge, schedule, or regulation until the rate, charge, 5 7 schedule, or regulation has been approved by the board, except 5 8 as provided in subsections 8,and9, and 22. 5 9 8. Automatic adjustmentspermitted. 5 10 a. This chapter does not prohibit a public utility from 5 11 making provision for the automatic adjustment of rates and 5 12 charges for public utility service provided that a schedule 5 13 showing the automatic adjustment of rates and charges is first 5 14 filed with the board. 5 15 b. A public utility may automatically adjust rates and 5 16 charges to recover costs related to transmission incurred by 5 17 or charged to the public utility consistent with a tariff or 5 18 agreement that is subject to the jurisdiction of the federal 5 19 energy regulatory commission, provided that a schedule showing 5 20 the automatic adjustment of rates and charges is first filed 5 21 with the board. 5 22 13. Energy efficiency plans. Electric and gas public 5 23 utilities shall offer energy efficiency programs to their 5 24 customers through energy efficiency plans. An energy 5 25 efficiency plan as a whole shall be cost=effective. In 5 26 determining the cost=effectiveness of an energy efficiency 5 27 plan, the board shall apply the societal test, total resource 5 28 cost test, utility cost test, rate=payer impact test, and 5 29 participant test. Energy efficiency programs for qualified 5 30 low=income persons and for tree planting programs, educational 5 31 programs, and assessments of consumers' needs for information 5 32 to make effective choices regarding energy use and energy 5 33 efficiency need not be cost=effective and shall not be 5 34 considered in determining cost=effectiveness of plans as a 5 35 whole. The energy efficiency programs in the plans may be 6 1 provided by the utility or by a contractor or agent of the 6 2 utility. Programs offered pursuant to this subsection by gas 6 3 and electric utilities that are required to be rate=regulated 6 4 shall require board approval. 6 5 Sec. 9. Section 476.6, subsection 15, paragraphs a and b, 6 6 Code 2018, are amended to read as follows: 6 7 a.(1) (a) Gas and electric utilities required to be 6 8 rate=regulated under this chapter shall file five=year energy 6 9 efficiency plans and demand response plans with the board as 6 10 provided. An energy efficiency plan and budget or a demand 6 11 response plan and budget shall include a range of energy 6 12 efficiency or demand response programs, tailored to the needs 6 13 of all customer classes, including residential, commercial, and 6 14 industrial customers, for energy efficiency or demand response 6 15 opportunities. The plans shall include programs for qualified 6 16 low=income persons including a cooperative program with any 6 17 community action agency within the utility's service area to 6 18 implement countywide or communitywide energy efficiency or 6 19 demand response programs for qualified low=income persons. 6 20 Rate=regulated gas and electric utilities shall utilize 6 21 Iowa agencies and Iowa contractors to the maximum extent 6 22 cost=effective in their energy efficiency plans and demand 6 23 response plans filed with the board. 6 24 (b) All gas or electric utility customers shall have the 6 25 option to enroll in a five=year energy efficiency plan or 6 26 five=year demand response plan offered by the gas or electric 6 27 utility during an open enrollment period beginning August 6 28 1, 2018, and ending September 30, 2018. Gas and electric 6 29 utilities shall provide notice of the open enrollment period to 6 30 all customers in the customer's billing statement. Customers 6 31 may only enroll in a plan during the open enrollment period 6 32 and cannot withdraw from such plan until the commencement 6 33 of the next five=year plan offered by the gas or electric 6 34 utility. Customers that move into the service area of a gas 6 35 or electric utility may enroll in an energy efficiency plan or 7 1 demand response plan offered by the gas or electric utility 7 2 within sixty days after the commencement of gas or electric 7 3 service. Customers that do not enroll in an energy efficiency 7 4 plan offered by a gas or electric utility shall not be assessed 7 5 the costs of the plan and shall not be allowed to participate 7 6 in energy efficiency programs included in the plan. Customers 7 7 that do not enroll in a demand response plan offered by a gas or 7 8 electric utility shall not be assessed the costs of the plan 7 9 and shall not be allowed to participate in demand response 7 10 programs included in the plan. 7 11 (c) Following the completion of an open enrollment period 7 12 pursuant to subparagraph division (b), the gas or electric 7 13 utility shall file the energy efficiency plan or demand 7 14 response plan with the board no later than June 1 of the year 7 15 following the open enrollment period, provided, however, that 7 16 ten percent or more of the gas or electric utility's current 7 17 customers enroll in the energy efficiency plan or demand 7 18 response plan during the open enrollment period. If less than 7 19 ten percent of the gas or electric utility's current customers 7 20 enroll in a plan during the open enrollment period, the gas or 7 21 electric utility shall commence a subsequent open enrollment 7 22 period beginning August 1, and ending September 30, of the 7 23 following year, and every year thereafter, until ten percent 7 24 or more of the gas or electric utility's current customers 7 25 enroll in the energy efficiency plan or demand response plan. 7 26 The board shall approve an energy efficiency plan or demand 7 27 response plan filed with the board no later than December 1 7 28 of the year the plan was filed with the board. An energy 7 29 efficiency plan or demand response plan approved by the board 7 30 shall commence January 1 of the year following the date the 7 31 plan was approved by the board. Energy efficiency plans 7 32 approved by the board prior to the effective date of this Act 7 33 shall remain in effect until December 31, 2018. 7 34 (d) A gas or electric utility shall commence an open 7 35 enrollment period for customers to enroll in a subsequent 8 1 five=year energy efficiency plan or demand response plan 8 2 offered by the gas or electric utility beginning August 1, and 8 3 ending September 30, during the fourth year of a current plan. 8 4 Enrollment, filing, approval, and commencement of subsequent 8 5 five=year energy efficiency plans and demand response plans 8 6 shall comply with subparagraph divisions (b) and (c). 8 7 (2) Gas and electric utilities required to be 8 8 rate=regulated under this chapter may request an energy 8 9 efficiency plan or demand response plan modification during 8 10 the course of a five=year plan. A modification may be 8 11 requested due to changes in funding as the result of customer 8 12 enrollment in such plan or for any other reason identified by 8 13 the gas or electric utility. The board shall take action on a 8 14 modification request made by the gas or electric utility within 8 15 sixty days after a modification request is filed. If the board 8 16 fails to take action within sixty days after a modification 8 17 request is filed, the modification request shall be deemed 8 18 approved. 8 19 b. (1) A gas and electric utility required to be 8 20 rate=regulated under this chapter shall assess potential energy 8 21 and capacity savings available from actual and projected 8 22 customer usage by applying commercially available technology 8 23 and improved operating practices to energy=using equipment and 8 24 buildings. The utility shall submit the assessment to the 8 25 board. Upon receipt of the assessment, the board shall consult 8 26 with the economic development authority to develop specific 8 27 capacity and energy savingsperformance standardsgoals for 8 28 each utility. Such goals, except as provided for in subsection 8 29 13, shall only include cost=effective energy efficiency and 8 30 demand response programs. The utility shall submit an energy 8 31 efficiency plan which shall include economically achievable 8 32 programs designed to attain these energy and capacity 8 33performance standardsgoals. The board shall periodically 8 34 report the energy efficiency results including energy savings 8 35 of each utility to the general assembly. 9 1 (2) For purposes of this paragraph, "cost=effective" means 9 2 the total resource cost test result for a program is greater 9 3 than one. In applying the total resource cost test, benefits 9 4 to be considered include avoided capacity and energy costs 9 5 and federal tax credits, and costs to be considered include 9 6 incremental costs of equipment, operation, and maintenance, 9 7 utility costs, and program administration costs. 9 8 Sec. 10. Section 476.6, subsection 15, paragraph c, 9 9 subparagraphs (1) and (3), Code 2018, are amended to read as 9 10 follows: 9 11 (1) Gas and electric utilities that are not required to 9 12 be rate=regulated under this chapter shall assessmaximum9 13 potential energy and capacity savings available from actual 9 14 and projected customer usage through cost=effective energy 9 15 efficiency measures and programs, taking into consideration the 9 16 utility service area's historic energy load, projected demand, 9 17 customer base, and other relevant factors. Each utility shall 9 18 establish an energy efficiency goal based upon this assessment 9 19 of potential and shall establish cost=effective energy 9 20 efficiency programs designed to meet the energy efficiency 9 21 goal. Separate goals may be established for various customer 9 22 groupings. 9 23 (3) Each utilityshall commence the process of determining 9 24 its cost=effective energy efficiency goal on or before July 1, 9 25 2008, shall provide a progress report to the board on or before 9 26 January 1, 2009, and complete the process and submit a final 9 27 report to the board on or before January 1, 2010. The report 9 28 shall include the utility's cost=effective energy efficiency 9 29 goal, and for each measure utilized by the utility in meeting 9 30 the goal, the measure's description, projected costs, and the 9 31 analysis of its cost=effectiveness. Each utilityor group 9 32 of utilities shall evaluate cost=effectiveness using the 9 33 cost=effectiveness tests in accordance with subsection 13 of 9 34 this section. Individual utilities or groups of utilities may 9 35 collaborate in conducting the studies required hereunder and 10 1 may file a joint report or reports with the board. However, 10 2 the board may require individual information from any utility, 10 3 even if it participates in a joint report. 10 4 Sec. 11. Section 476.6, subsection 15, paragraph d, Code 10 5 2018, is amended by striking the paragraph. 10 6 Sec. 12. Section 476.6, subsection 15, paragraphs e, f, and 10 7 g, Code 2018, are amended to read as follows: 10 8 e. (1) The board shall conduct contested case proceedings 10 9 for review of energy efficiency plans, demand response plans, 10 10 and budgets filed by gas and electric utilities required to be 10 11 rate=regulated under this chapter. Notwithstanding the goals 10 12 developed pursuant to paragraph "b", the board shall not require 10 13 a gas utility to adopt an energy efficiency plan or a demand 10 14 response plan that results in projected annual costs that 10 15 exceed one and one=half percent of a plan=enrolled gas utility 10 16 customer's total billing, and shall not require an electric 10 17 utility to adopt an energy efficiency plan or a demand response 10 18 plan that results in projected annual costs that exceed two 10 19 percent of a plan=enrolled electric utility customer's total 10 20 billing. A gas or electric utility may voluntarily propose an 10 21 energy efficiency plan or a demand response plan that results 10 22 in projected annual costs that exceed one and one=half percent 10 23 of a plan=enrolled gas utility customer's total billing, or 10 24 two percent of a plan=enrolled electric utility customer's 10 25 total billing. The board may approve, reject, or modify the 10 26 plans and budgets. Notwithstanding the provisions of section 10 27 17A.19, subsection 5, in an application for judicial review of 10 28 the board's decision concerning a utility'senergy efficiency10 29 plan or budget, the reviewing court shall not order a stay. 10 30Whenever10 31 (2) Notwithstanding paragraph "a", subparagraph (2), if, 10 32 on the effective date of this Act, a gas or electric utility's 10 33 currently approved energy efficiency plan includes projected 10 34 annual costs that exceed one and one=half percent of a gas 10 35 utility customer's total billing for the previous calendar 11 1 year, or two percent of an electric utility customer's total 11 2 billing for the previous calendar year, the gas or electric 11 3 utility may file a request to modify its approved energy 11 4 efficiency plan to achieve projected annual costs at one 11 5 and one=half percent or less of a gas utility customer's 11 6 total billing, or two percent or less of an electric utility 11 7 customer's total billing. In such case, or whenever a request 11 8 to modify an approved plan or budget is filed subsequently by 11 9 the office of consumer advocate or a gas or electric utility 11 10 required to be rate=regulated under this chapter, the board 11 11 shall promptly initiate a formal proceeding if the board 11 12 determines that any reasonable ground exists for investigating 11 13 the request. The formal proceeding may be initiated at 11 14 any time by the board on its own motion. Implementation of 11 15 board=approved plans or budgets shall be considered continuous 11 16 in nature and shall be subject to investigation at any time by 11 17 the board or the office of the consumer advocate. 11 18 f. Notice to customers of a contested case proceeding for 11 19 review of energy efficiency plans, demand response plans, and 11 20 budgets shall be in a manner prescribed by the board. 11 21 g. (1) A gas or electric utility required to be 11 22 rate=regulated under this chapter may recover, through an 11 23 automatic adjustment mechanism filed pursuant to subsection 8, 11 24 over a period not to exceed the term of the plan, the costs of 11 25 an energy efficiency plan or demand response plan approved by 11 26 the board, including amounts for a plan approved prior to July 11 27 1, 1996,in a contested case proceeding conducted pursuant to 11 28 paragraph "e". The board shall ensure that costs are recovered 11 29 from all customers on a reasonably comparable basis, including 11 30 customers who utilize alternate energy production facilities as 11 31 defined in section 476.42. Customers who have not enrolled in 11 32 energy efficiency plans pursuant to paragraph "a", subparagraph 11 33 (1), shall not be charged for recovery of energy efficiency 11 34 costs. Customers who have not enrolled in demand response 11 35 plans pursuant to paragraph "a", subparagraph (1), shall not be 12 1 charged for recovery of demand response costs. 12 2 (2) The board shall periodically conduct a contested case 12 3 proceeding to evaluate the reasonableness and prudence of the 12 4 utility's implementation of an approved energy efficiency 12 5 or demand response plan and budget. If a utility is not 12 6 taking all reasonable actions to cost=effectively implement 12 7 an approvedenergy efficiencyplan, the board shall not allow 12 8 the utility to recover from customers costs in excess of those 12 9 costs that would be incurred under reasonable and prudent 12 10 implementation and shall not allow the utility to recover 12 11 future costs at a level other than what the board determines 12 12 to be reasonable and prudent. If the result of a contested 12 13 case proceeding is a judgment against a utility, that utility's 12 14 future level of cost recovery shall be reduced by the amount 12 15 by which the programs were found to be imprudently conducted. 12 16 The utility shall not represent energy efficiency in customer 12 17 billings as a separate cost or expense unless the board 12 18 otherwise approves. 12 19 Sec. 13. Section 476.6, subsection 17, Code 2018, is amended 12 20 by striking the subsection. 12 21 Sec. 14. Section 476.6, subsection 20, Code 2018, is amended 12 22 to read as follows: 12 23 20. Electric power generating facility emissions. 12 24 a.It is the intent of the general assembly that the state, 12 25 through a collaborative effort involving state agencies and 12 26 affected generation owners, provide for compatible statewide 12 27 environmental and electric energy policies with respect 12 28 to regulated emissions from rate=regulated electric power 12 29 generating facilities in the state that are fueled by coal. 12 30 EachA rate=regulated public utility that is an owner of one 12 31 or more electric power generating facilities fueled by coal 12 32 and located in this stateon July 1, 2001, shall develop a 12 33 multiyear plan and budgetmay, in its sole discretion, file for 12 34 advanced review of projects for managing regulated emissions 12 35 from its facilities in a cost=effective manner. 13 1(1) The initial multiyear plan and budget shall be filed 13 2 with the board by April 1, 2002. Updates to the plan and budget 13 3 shall be filed at least every twenty=four months.13 4(2) Copies of the initial plan and budget, as well as 13 5 any subsequent updates, shall be served on the department of 13 6 natural resources.13 7(3) The initial multiyear plan and budget and any subsequent 13 8 updates shall be considered in a contested case proceeding 13 9 pursuant to chapter 17A. The department of natural resources 13 10 and the consumer advocate shall participate as parties to the 13 11 proceeding.13 12 b. A rate=regulated public utility shall file an application 13 13 for advanced review of a project at least one hundred twenty 13 14 days before the anticipated start of construction. Where an 13 15 electric power generating facility is owned by two or more 13 16 rate=regulated public utilities, the operator of the electric 13 17 power generating facility may file the application on behalf of 13 18 the rate=regulated public utilities. 13 19(4)c. The department of natural resources shall state 13 20 whether theplan or updateproject meets applicable state or 13 21 federal environmental requirements for regulated emissions, 13 22 including requirements related to air, water, or solid waste. 13 23 If theplanproject does not meet these requirements, the 13 24 department shall recommend amendments that outline actions 13 25 necessary to bring theplan or updateproject into compliance 13 26 with the environmental requirements. 13 27b.d. The board shall not approve aplan or updateproject 13 28 that does not meet applicable state or federal environmental 13 29 requirementsand federal ambient air quality standardsfor 13 30 regulated emissions from electric power generating facilities 13 31 located in the state. 13 32c.e. The board shall review theplan or updateproject 13 33 and the associated budget, and shall approve theplan or update 13 34project and the associated budget if theplan or updateproject 13 35 and the associated budget are reasonably expected to achieve 14 1 cost=effective compliance with applicable state or federal 14 2 environmental requirementsand federal ambient air quality 14 3 standards. In reaching its decision, the board shall consider 14 4 whether theplan or updateproject and the associated budget 14 5 reasonably balance costs, environmental requirements, economic 14 6 development potential, and the reliability of the electric 14 7 generation and transmission system. 14 8d.f. The board shall issue an order approving or rejecting 14 9 aplan, update, or budgetproject withinone hundred eighty 14 10ninety days afterthe public utility'sa filingis deemed 14 11 complete; however, upon good cause shown, the board may 14 12 extend the time for issuing the order as follows:for approval 14 13 pursuant to this subsection. 14 14(1) The board may grant an extension of thirty days.14 15(2) The board may grant more than one extension, but each 14 16 extension must rely upon a separate showing of good cause.14 17(3) A subsequent extension must not be granted any earlier 14 18 than five days prior to the expiration of the original 14 19 one=hundred=eighty=day period, or the current extension.14 20e.g. The reasonable costs incurred by a rate=regulated 14 21 public utility in preparing and filing theplan, update, or 14 22 budgetproject and in participating in the proceedings before 14 23 the board and the reasonable costs associated with implementing 14 24 theplan, update, or budgetproject shall be included in its 14 25 regulated retail rates. 14 26f. It is the intent of the general assembly that the board, 14 27 in an environmental plan, update, or associated budget filed 14 28 under this section by a rate=regulated public utility, may 14 29 limit investments or expenditures that are proposed to be 14 30 undertaken prior to the time that the environmental benefit to 14 31 be produced by the investment or expenditure would be required 14 32 by state or federal law.14 33 Sec. 15. Section 476.6, Code 2018, is amended by adding the 14 34 following new subsections: 14 35 NEW SUBSECTION. 22. Voluntary rates and tariff filings. 15 1 a. A rate=regulated public utility may file at any time for 15 2 expedited approval of a new tariff or rate that is optional for 15 3 customers and all costs associated with the tariff or rate are 15 4 borne by customers who elect to participate in the new tariff 15 5 or rate. 15 6 b. A tariff or rate approved under this subsection may not 15 7 change any existing rates or charges. 15 8 c. The board shall review the tariff or rate filing within 15 9 sixty days of filing. If the board fails to review the tariff 15 10 or rate filing within sixty days of filing, the tariff or 15 11 rate filing shall be deemed approved. The board shall not be 15 12 required to hold a hearing to review a tariff or rate filing 15 13 made pursuant to this subsection. 15 14 NEW SUBSECTION. 23. Preapproval of cost recovery for natural 15 15 gas extensions ==== rules. The board may adopt rules which 15 16 provide for a preapproval process for cost recovery for natural 15 17 gas extensions. 15 18 Sec. 16. Section 476.20, subsection 5, paragraph a, 15 19 unnumbered paragraph 1, Code 2018, is amended to read as 15 20 follows: 15 21 The board shall establish rules which shall be uniform with 15 22 respect to all public utilities furnishing gas or electricity 15 23 relating to deposits which may be required by the public 15 24 utility for the initiation or reinstatement of service. This 15 25 subsection shall not apply to municipally owned utilities, 15 26 which shall be governed by the provisions of section 384.84 15 27 with respect to deposits and payment plans for delinquent 15 28 amounts owed. Municipally owned utilities and electric 15 29 utilities that are not required to be rate=regulated shall not 15 30 be subject to the board's rules in regards to deposits and 15 31 payment plans for delinquent amounts owed and repayment of past 15 32 due debt. Municipally owned utilities and electric utilities 15 33 that are not required to be rate=regulated shall be subject to 15 34 the board's rules in regards to payment plans made prior to the 15 35 disconnection of services. 16 1 Sec. 17. Section 476.21, Code 2018, is amended to read as 16 2 follows: 16 3 476.21 Discrimination prohibited. 16 4 A municipality, corporation or cooperative association 16 5 providing electrical or gas service shall not consider the 16 6 use of renewable energy sources by a customer as a basis for 16 7 establishing discriminatory rates or charges for any service 16 8 or commodity sold to the customer or discontinue services or 16 9 subject the customer to any other prejudice or disadvantage 16 10 based on the customer's use or intended use of renewable energy 16 11 sources. As used in this section, "renewable energy sources" 16 12 includes but is not limited to solar heating, wind power 16 13 and the conversion of urban and agricultural organic wastes 16 14 into methane gas and liquid fuels. This section shall not 16 15 prohibit the establishment of rates or charges for customers 16 16 that are different than the rates or charges for customers who 16 17 obtain all of their energy requirements from the municipality, 16 18 corporation, or cooperative association, provided that the 16 19 difference in rates or charges is based on the difference in 16 20 cost of service and anticipated energy use. 16 21 Sec. 18. NEW SECTION. 476.26A Right to construct, own, and 16 22 maintain electric transmission lines. 16 23 1. As used in this section, unless the context otherwise 16 24 requires: 16 25 a. "Electric transmission line" means a high=voltage 16 26 electric transmission line with a capacity of one hundred 16 27 kilovolts or more and any associated electric transmission 16 28 facilities. 16 29 b. "Electric transmission owner" means an individual or 16 30 entity who, as of the effective date of this Act, owns and 16 31 maintains an electric transmission facility including electric 16 32 transmission lines, wires, or cables that are capable of 16 33 operating at an electric voltage of one hundred kilovolts or 16 34 more that are required for rate=regulated electric utilities, 16 35 municipal electric utilities, and rural electric cooperatives 17 1 in this state to provide electric service to the public for 17 2 compensation. 17 3 c. "Incumbent electric transmission owner" means any of the 17 4 following: 17 5 (1) A public utility or a municipally owned utility that 17 6 owns, operates, and maintains an electric transmission line in 17 7 this state. 17 8 (2) An electric cooperative corporation or association or 17 9 municipally owned utility that owns an electric transmission 17 10 facility in this state and has turned over the functional 17 11 control of such facility to a federally approved authority. 17 12 (3) An "electric transmission owner" as defined in paragraph 17 13 "b". 17 14 d. "Municipally owned utility" means a "city utility" as 17 15 defined in section 362.2, or an "electric power agency" as 17 16 defined in section 390.9 which is comprised solely of cities or 17 17 solely of cities and other political subdivisions. 17 18 2. An incumbent electric transmission owner may construct, 17 19 own, and maintain an electric transmission line that has 17 20 been approved for construction in a federally registered 17 21 planning authority transmission plan and which connects to an 17 22 electric transmission facility owned by the incumbent electric 17 23 transmission owner. Where an electric transmission line 17 24 connects to electric transmission facilities owned by two or 17 25 more incumbent electric transmission owners, each incumbent 17 26 electric transmission owner whose facilities connect to the 17 27 electric transmission line may construct, own, and maintain the 17 28 electric transmission line individually and equally. If an 17 29 incumbent electric transmission owner declines to construct, 17 30 own, and maintain its portion of an electric transmission line 17 31 that connects to electric transmission facilities owned by 17 32 two or more incumbent electric transmission owners, then the 17 33 other incumbent electric transmission owner or owners that own 17 34 the electric transmission facilities to which the electric 17 35 transmission line connects may construct, own, and maintain the 18 1 electric transmission line individually and equally. 18 2 3. This section shall not modify the authority of the board 18 3 under chapter 478 or the requirements, rights, and obligations 18 4 relating to the construction, maintenance, and operation of 18 5 electric transmission lines pursuant to chapter 478. 18 6 Sec. 19. Section 476.33, subsection 4, Code 2018, is amended 18 7 to read as follows: 18 8 4. The board shall adopt rules that require the board, in 18 9 rate regulatory proceedings under sections 476.3 and 476.6, to 18 10 utilize either a historic test year or a future test year at 18 11 the rate=regulated public utility's discretion. 18 12 a. For a rate regulatory proceeding utilizing a historic 18 13 test year, the rules shall require the board to consider the 18 14 use of the most current test period possible in determining 18 15 reasonable and just rates, subject only to the availability of 18 16 existing and verifiable data respecting costs and revenues, and 18 17 in addition, to consider verifiable data that exists within 18 18 nine months after the conclusion of the test year, respecting 18 19 known and measurable changes in costs not associated with a 18 20 different level of revenue, and known and measurable revenues 18 21 not associated with a different level of costs, that are to 18 22 occur at any time within twelve months after the date of 18 23 commencement of the proceedings. Parties proposing adjustments 18 24 that are not verifiable at the commencement of the proceedings 18 25 shall include projected data related to the adjustments in 18 26 their initial substantive filing with the board. For purposes 18 27 of thissubsectionparagraph, a proceeding commences under 18 28 section 476.6 upon the filing date of new or changed rates, 18 29 charges, schedules, or regulations.This subsection does not 18 30 limit the authority of the board to consider other evidence in 18 31 proceedings under sections 476.3 and 476.6.18 32 b. For a rate regulatory proceeding utilizing a future test 18 33 year, the rules shall require the board to consider the use 18 34 of any twelve=month period beginning no later than the date 18 35 on which a proposed rate change is expected to take effect in 19 1 determining just and reasonable rates. 19 2 c. This subsection does not limit the authority of the board 19 3 to consider other evidence in proceedings under sections 476.3 19 4 and 476.6. 19 5 Sec. 20. Section 476.53, subsection 3, paragraph a, 19 6 subparagraph (1), subparagraph division (a), Code 2018, is 19 7 amended by adding the following new subparagraph subdivision: 19 8 NEW SUBPARAGRAPH SUBDIVISION. (v) Repowering of an 19 9 alternate energy production facility to upgrade or extend the 19 10 useful life of the facility. 19 11 Sec. 21. NEW SECTION. 476.59 Emerging energy technologies. 19 12 1. For purposes of this section, "emerging energy 19 13 technology" includes but is not limited to an energy storage 19 14 facility, electric grid protection system, electric grid 19 15 management system, cyber security infrastructure, electric 19 16 vehicle infrastructure, or any other emerging energy technology 19 17 identified by the board and consistent with the general 19 18 assembly's intent as provided in subsection 2. 19 19 2. a. It is the intent of the general assembly to attract 19 20 the development of emerging energy technologies within the 19 21 state in sufficient quantity to ensure reliable electric 19 22 service to Iowa consumers and provide economic benefits to 19 23 the state. It is also the intent of the general assembly to 19 24 encourage the development of the state's future electric energy 19 25 supply and the protection of the electric grid from cyber and 19 26 physical threats. 19 27 b. The general assembly's intent with regard to the 19 28 reliability of electric service to Iowa consumers shall be 19 29 implemented by considering, among other things, the development 19 30 of energy storage, and the protection of the electric grid from 19 31 cyber and physical threats. 19 32 c. The general assembly's intent with regard to the 19 33 development of Iowa's future electric energy supply shall be 19 34 implemented in a manner that advances a reliable, secure, 19 35 economical, and environmentally responsible energy supply 20 1 for the state, recognizing the value of emerging energy 20 2 technologies to promote the state's economic development. 20 3 3. a. The board shall specify in advance, by order issued 20 4 after a contested case proceeding, the ratemaking principles 20 5 that will apply whenever a rate=regulated public utility 20 6 requests advanced ratemaking principles for the construction, 20 7 investment, or implementation of an emerging energy technology, 20 8 and the costs of the emerging energy technology are included in 20 9 regulated electric rates. 20 10 b. In determining the applicable ratemaking principles, the 20 11 board shall not be limited to traditional ratemaking principles 20 12 or traditional cost recovery mechanisms. 20 13 c. In determining the applicable ratemaking principles, the 20 14 board shall make the following findings: 20 15 (1) The rate=regulated public utility has demonstrated 20 16 to the board that the proposed emerging energy technology is 20 17 reasonable. 20 18 (2) The rate=regulated public utility has demonstrated 20 19 to the board that the public utility has considered 20 20 other reasonable alternatives, if any, to the proposed 20 21 emerging energy technology and that the proposed emerging 20 22 energy technology is reasonable when compared to any such 20 23 alternatives. 20 24 d. The applicable ratemaking principles shall be determined 20 25 in a contested case proceeding. 20 26 e. The order setting forth the applicable ratemaking 20 27 principles shall be issued prior to the construction, 20 28 investment, or implementation of the emerging energy 20 29 technology. 20 30 f. Following issuance of the order, the rate=regulated 20 31 public utility may proceed with the construction, investment, 20 32 or implementation of the emerging energy technology. 20 33 g. Notwithstanding any provision of this chapter to the 20 34 contrary, the ratemaking principles established by the order 20 35 issued pursuant to paragraph "e" shall be binding with regard to 21 1 the specific emerging energy technology in any subsequent rate 21 2 proceeding. 21 3 EXPLANATION 21 4 The inclusion of this explanation does not constitute agreement with 21 5 the explanation's substance by the members of the general assembly. 21 6 This bill modifies various provisions relating to public 21 7 utilities. 21 8 The bill adds gasworks and facilities useful for the 21 9 delivery of natural gas service to the list of works or 21 10 facilities permitted for joint financing by public agencies 21 11 pursuant to Code chapter 28F. The bill prohibits public 21 12 agencies participating in joint financing agreements pursuant 21 13 to Code chapter 28F from exercising their powers of eminent 21 14 domain to acquire interests in properties used for the 21 15 transmission, transportation, or sale of natural gas. 21 16 The bill removes requirements for the board to report 21 17 the energy efficiency results of certain non=rate=regulated 21 18 electric utilities and municipally owned utilities to the 21 19 general assembly. 21 20 Current law allows the board of directors or the membership 21 21 of non=rate=regulated electric cooperatives to elect to 21 22 have the cooperative's rates regulated by the board, and 21 23 subsequently elect to exempt the cooperative from rate 21 24 regulation. The bill provides that if the membership of a 21 25 cooperative elects to have the cooperative's rates regulated 21 26 by the board, only the membership may elect to exempt the 21 27 cooperative from rate regulation. 21 28 The bill allows a public utility to automatically adjust 21 29 rates and charges to recover certain costs related to 21 30 transmission, provided that the public utility first files a 21 31 schedule showing such automatic adjustment with the board. 21 32 Current law requires gas and electric utilities to offer 21 33 energy efficiency programs to customers through energy 21 34 efficiency plans, which plans must be cost=effective. The 21 35 bill adds the total resource cost test to the list of tests 22 1 the board must apply in determining the cost=effectiveness of 22 2 energy efficiency programs. 22 3 The bill provides that gas and electric utilities shall file 22 4 five=year energy efficiency plans and demand response plans 22 5 with the board, which plans shall include a range of energy 22 6 efficiency or demand response programs. The bill provides that 22 7 all utility customers shall have the option to enroll in an 22 8 energy efficiency plan or demand response plan offered by a 22 9 utility during an open enrollment period beginning August 1, 22 10 2018, and ending September 30, 2018. Utilities are required 22 11 to provide notice of the open enrollment period in customer 22 12 billing statements. Customers may only enroll in any plan 22 13 during the open enrollment period and cannot withdraw from 22 14 such plan until the commencement of the next five=year plan. 22 15 Customers who move into the service area of a utility may 22 16 enroll in any such plan offered by the utility within 60 days 22 17 after the commencement of service. Customers that do not 22 18 enroll in an energy efficiency plan or demand response plan 22 19 shall not be assessed the costs of such plans, and shall not be 22 20 allowed to participate in programs included in such plans. 22 21 The bill provides that following the completion of an 22 22 open enrollment period for customers to enroll in an energy 22 23 efficiency or demand response plan, a gas or electric utility 22 24 shall file such plan with the board no later than June 1 of 22 25 the year following the open enrollment period, provided that 22 26 at least 10 percent of the utility's current customers enroll 22 27 in the plan during the open enrollment period. If less than 22 28 10 percent of a utility's customers do not enroll in the plan, 22 29 the utility shall commence a subsequent open enrollment the 22 30 following year and every year thereafter until it meets the 10 22 31 percent threshold. The bill requires the board to approve an 22 32 energy efficiency plan or demand response plan no later than 22 33 December 1 of the year the plan is filed with the board. A 22 34 plan approved by the board shall commence January 1 of the 22 35 year following the date the plan was approved by the board. 23 1 However, energy efficiency plans approved by the board prior 23 2 to the effective date of the bill shall remain in effect until 23 3 December 31, 2018. 23 4 The bill provides that gas and electric utilities shall 23 5 commence an open enrollment period for customers to enroll 23 6 in a subsequent five=year energy efficiency plan or demand 23 7 response plan beginning August 1 and ending September 30 during 23 8 the fourth year of a current plan. The requirements in the 23 9 bill regarding enrollment, filing, approval, and commencement 23 10 of energy efficiency and demand response plans apply to any 23 11 subsequent plans. 23 12 The bill allows a gas or electric utility to request an 23 13 energy efficiency or demand response plan modification during 23 14 the course of the five=year plan due to changes in funding or 23 15 for any other reason identified by the utility. The board must 23 16 take action within 60 days after filing, or such request is 23 17 deemed approved. 23 18 Current law requires the board to consult with the 23 19 economic development authority to develop capacity and energy 23 20 savings performance standards for each rate=regulated gas or 23 21 electric utility. The bill replaces "performance standards" 23 22 with "goals", and specifies that such goals only include 23 23 cost=effective energy efficiency and demand response programs, 23 24 as defined in the bill. 23 25 The bill removes the outdated requirement for 23 26 non=rate=regulated gas and electric utilities to submit reports 23 27 to the board on or before January 1, 2010, relating to such 23 28 utilities' energy efficiency goals. The bill also removes 23 29 outdated requirements for the board to submit certain reports 23 30 relating to energy efficiency to the general assembly in 1998, 23 31 2009, and 2011. 23 32 The bill prohibits the board from requiring a gas or electric 23 33 utility to adopt an energy efficiency plan or demand response 23 34 plan that results in projected annual costs in excess of 23 35 1.5 percent of a plan=enrolled gas utility customer's total 24 1 billing, or 2 percent of a plan=enrolled electric utility 24 2 customer's total billing. A gas or electric utility may 24 3 voluntarily propose a plan in excess of such amounts. If a 24 4 gas or electric utility has an approved energy efficiency plan 24 5 in excess of such amounts on the effective date of the bill, 24 6 the utility may file a request to modify the plan to achieve 24 7 projected annual costs below the amounts. 24 8 Current law allows gas and electric utilities to recover the 24 9 costs of energy efficiency plans through automatic adjustment 24 10 mechanisms. The bill allows such utilities to also recover 24 11 the costs of demand response plans, and requires the board 24 12 to ensure that costs are recovered from all customers on a 24 13 reasonably comparable basis, including customers who utilize 24 14 alternate energy production facilities. The bill provides that 24 15 customers that are not enrolled in an energy efficiency plan or 24 16 demand response plan shall not be charged for recovery of costs 24 17 associated with such plans. 24 18 The bill strikes Code section 476.6(17), which allows the 24 19 board to require rate=regulated gas or electric utilities to 24 20 offer financing for certain energy efficiency improvements to 24 21 customers. 24 22 Current law specifies the general assembly's intent to 24 23 provide for compatible statewide environmental and electric 24 24 energy policies with respect to emissions from electric 24 25 power generating facilities in the state that are fueled 24 26 by coal. Current law requires each rate=regulated public 24 27 utility that owns one or more such facilities on July 1, 2001, 24 28 to develop a multiyear plan and budget managing emissions 24 29 in a cost=effective manner. The bill strikes the language 24 30 expressing the general assembly's intent and replaces the 24 31 requirement that an applicable rate=regulated public utility 24 32 develop a multiyear plan and budget with the option for a 24 33 rate=regulated public utility to file for advanced review of 24 34 projects to manage regulated emissions from its facilities 24 35 in a cost=effective manner. Such filing shall be made at 25 1 least 120 days before the anticipated start of construction. 25 2 When a facility is owned by two or more rate=regulated public 25 3 utilities, the owner of such facility may file the application 25 4 for advanced review on behalf of the utilities. The bill 25 5 requires a project to comply with applicable state and federal 25 6 environmental requirements. The bill requires the board to 25 7 issue an order approving or rejecting a project within 90 days 25 8 after filing. The bill removes the ability of the board to 25 9 limit certain proposed investments or expenditures pursuant to 25 10 an environmental plan, update, or associated budget. 25 11 The bill allows rate=regulated public utilities to file for 25 12 approval of a tariff or rate that is optional for customers 25 13 and all associated costs are borne by customers electing to 25 14 participate. A tariff or rate approved pursuant to the bill 25 15 may not change existing rates or charges. The board must 25 16 review the tariff or rate within 60 days of filing or the 25 17 tariff or rate is deemed approved. The board is not required 25 18 to hold a hearing to review such tariff or rate. 25 19 The bill allows the board to adopt rules to provide for 25 20 a preapproval process for cost recovery for natural gas 25 21 extensions. 25 22 The bill provides that non=rate=regulated electric utilities 25 23 shall not be subject to the board's rules in regards to 25 24 deposits and payment plans for delinquent amounts owed and 25 25 repayment of past due debt, but shall be subject to the 25 26 board's rules in regards to payment plans made prior to the 25 27 disconnection of service. 25 28 Current law prohibits a municipality, corporation, 25 29 or cooperative from considering the use of renewable 25 30 energy sources by a customer as a basis for establishing 25 31 discriminatory rates or charges. The bill provides that 25 32 these entities shall not be prohibited from establishing 25 33 rates or charges for customers that are different than the 25 34 rates or charges for customers who obtain all of their energy 25 35 requirements from such entities, provided that the difference 26 1 in rates or charges is based on the difference in cost of 26 2 service and anticipated energy use. 26 3 The bill allows an incumbent electric transmission owner, 26 4 as defined in the bill, to construct, own, and maintain an 26 5 electric transmission line, as defined in the bill, that has 26 6 been approved for construction in a federally registered 26 7 planning authority transmission plan and which connects 26 8 to the owner's electric transmission facility. Where an 26 9 electric transmission line connects to electric transmission 26 10 facilities owned by two or more incumbent electric transmission 26 11 owners, each owner whose facilities connect to the electric 26 12 transmission line may construct, own, and maintain the electric 26 13 transmission line individually and equally. If an incumbent 26 14 electric transmission owner declines to construct, own, and 26 15 maintain its portion of an electric transmission line that 26 16 connects to electric transmission facilities owned by two 26 17 or more owners, then the other owners to which the electric 26 18 transmission line connects may construct, own, and maintain 26 19 the electric transmission line individually and equally. The 26 20 bill provides that the bill does not modify the authority of 26 21 the board or the requirements, rights, and obligations related 26 22 to the construction, maintenance, and operation of electric 26 23 transmission lines under Code chapter 478. 26 24 Current law requires the board to adopt rules that require 26 25 the board to consider the most current test period to determine 26 26 just and reasonable rates in rate regulatory proceedings under 26 27 Code sections 476.3 and 476.6. The bill requires the board 26 28 to adopt rules that require the board to utilize either a 26 29 historic test year or a future test year, at a public utility's 26 30 discretion, in rate regulatory proceedings. For a proceeding 26 31 utilizing a historic test year, the rules shall require the 26 32 board to consider the use of the most current test period 26 33 to determine just and reasonable rates. For a proceeding 26 34 utilizing a future test year, the rules shall require the board 26 35 to consider the use of any 12=month period beginning no later 27 1 than the date on which a proposed rate change is expected to 27 2 take effect to determine just and reasonable rates. 27 3 Current law requires the board to specify ratemaking 27 4 principles in advance whenever a rate=regulated public utility 27 5 files an application to significantly alter an existing 27 6 electric generating facility. The bill adds the repowering of 27 7 an alternate energy production facility to upgrade or extend 27 8 the useful life of the facility to the list of significant 27 9 alterations requiring the establishment of advanced ratemaking 27 10 principles. 27 11 The bill creates new Code section 476.59, relating to 27 12 emerging energy technologies. The bill defines "emerging 27 13 energy technology" to include but not be limited to an energy 27 14 storage facility, electric grid protection system, electric 27 15 grid management system, cyber security infrastructure, electric 27 16 vehicle infrastructure, or other technologies identified 27 17 by the board. The bill provides that it is the general 27 18 assembly's intent to attract the development of emerging energy 27 19 technologies within the state to ensure reliable electric 27 20 service and encourage the development of the state's future 27 21 electric energy supply and the protection of the electric grid 27 22 from cyber and physical threats. The bill further elaborates 27 23 on the general assembly's intent with respect to emerging 27 24 energy technologies. 27 25 New Code section 476.59 requires the board to specify in 27 26 advance the ratemaking principles that will apply whenever a 27 27 rate=regulated public utility requests advanced ratemaking 27 28 principles for the construction, investment, or implementation 27 29 of an emerging energy technology and the costs of such 27 30 technology are included in rates. The board shall not be 27 31 limited to traditional ratemaking principles or cost recovery 27 32 mechanisms in determining such ratemaking principles. In 27 33 determining the applicable ratemaking principles, the board 27 34 shall find that the utility has demonstrated that the proposed 27 35 emerging energy technology is reasonable and that such 28 1 technology is reasonable when compared to any other reasonable 28 2 alternatives. The applicable ratemaking principles shall be 28 3 determined in a contested case proceeding and shall be issued 28 4 prior to the construction, investment, or implementation of 28 5 the emerging energy technology. Following the issuance of 28 6 the order, the utility may proceed with the construction, 28 7 investment, or implementation of the emerging energy 28 8 technology. The applicable ratemaking principles shall be 28 9 binding with respect to the specific emerging energy technology 28 10 in subsequent rate proceedings. LSB 5362SV (4) 87 gh/rn
