Bill Text: IA SSB1173 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to tariffs for public utility innovation programs and including applicability provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-02-27 - Subcommittee recommends amendment and passage. []. [SSB1173 Detail]
Download: Iowa-2023-SSB1173-Introduced.html
Senate
Study
Bill
1173
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
BROWN)
A
BILL
FOR
An
Act
relating
to
tariffs
for
public
utility
innovation
1
programs
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
476.6,
Code
2023,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
22.
Innovative
utility
programs.
3
a.
It
is
the
intent
of
the
general
assembly
to
encourage
4
public
utilities
to
pursue
innovation
in
pricing
and
programs
5
to
meet
the
dynamic
needs
of
current
and
prospective
customers,
6
enable
price-responsive
solutions,
and
to
provide
economic,
7
environmental,
employment,
and
other
benefits
to
the
state.
8
It
is
also
the
intent
of
the
general
assembly
that
these
9
new
endeavors
shall
not
negatively
impact
nonparticipating
10
customers.
Therefore,
the
general
assembly
declares
that
11
innovative
utility
programs
are
essential
to
further
the
12
attraction
and
retention
of
customers
to
benefit
the
state’s
13
economy
and
to
support
economical
and
sustainable
energy
14
production.
15
b.
(1)
A
tariff
authorized
under
this
subsection
shall
16
comply
with
all
of
the
following
conditions:
17
(a)
A
program
created
under
the
tariff
shall
be
available
to
18
interested
energy
customers
and
customer
participation
shall
19
be
optional.
20
(b)
A
tariff
shall
define
the
eligible
customer
groups.
21
(c)
Costs
of
the
program
shall
be
borne
by
participating
22
customers,
including
program-specific
facilities
and
23
administrative
or
overhead
costs.
24
(d)
An
eligible
customer
group
shall
not
exclude
directly
25
competing
customers
in
the
same
customer
service
territory.
26
For
purposes
of
this
subparagraph,
“directly
competing
27
customers”
means
customers
that
make
the
same
end
product
or
28
offer
the
same
service
for
the
same
general
group
of
customers,
29
and
excludes
customers
that
only
produce
component
parts
of
the
30
same
end
product.
31
(e)
A
tariff
shall
not
alter
the
existing
base
rates
or
32
charges
of
the
public
utility.
Refund,
credit,
or
waiver
of
33
existing
base
rates
or
charges
offered
as
part
of
the
program
34
shall
not
be
considered
an
alteration
of
existing
base
rates
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or
charges.
1
(f)
The
program
created
under
the
tariff
shall
not
2
negatively
impact
nonparticipating
customers.
3
(2)
A
tariff
authorized
under
this
subsection
may
include
4
any
of
the
following:
5
(a)
Recovery
of
costs
associated
with
program-specific
6
services
or
facilities,
including
but
not
limited
to
energy
7
storage,
renewable
hydrogen,
transmission,
electric
generating
8
facilities,
electric
distribution
facilities,
renewable
natural
9
gas
generation
facilities,
renewable
natural
gas
distribution
10
facilities,
utility-assisted
hourly
prices,
or
liquefied
11
natural
gas
facilities.
12
(b)
A
just
and
reasonable
rate
of
return
applicable
to
13
the
program
for
its
duration
for
new
facilities,
existing
14
facilities,
or
services
provided
by
the
public
utility
that
are
15
serving
the
program
created
under
the
tariff.
In
the
absence
16
of
a
program-specific
rate
of
return,
the
rate
of
return
17
approved
in
a
public
utility’s
most
recent
general
rate
case
18
proceeding
shall
be
presumed
to
be
just
and
reasonable
for
the
19
purpose
of
this
subparagraph.
20
(c)
Application
of
the
program
to
readily
identifiable
21
customer
usage
patterns,
customer
characteristics,
or
output
22
of
specified
facilities.
23
(d)
Assignment
of
program
benefits,
including
nonmonetary
24
benefits
which
may
derive
from
dynamically
balancing
supply
25
and
demand,
providing
ancillary
services,
or
the
production
of
26
renewable
energy
attributes.
27
(e)
When
the
program
created
under
the
tariff
replaces
28
a
service
for
which
the
public
utility
collects
an
existing
29
base
rate
or
charge,
a
tariff
may
refund,
credit,
or
waive
the
30
base
rate
or
charge
for
the
replaced
service.
A
participating
31
customer
shall
pay
the
costs
of
remaining
services
received
32
from
the
public
utility
unless
those
costs
are
refunded,
33
credited,
or
waived
under
the
program
created
by
the
tariff.
34
(f)
When
the
program
created
under
the
tariff
is
designed
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to
recover
costs
associated
with
existing
facilities,
such
1
recovery
would
require
reconciliation
of
the
impact
to
2
nonparticipating
customers.
Existing
facilities
subject
to
3
advance
ratemaking
principles
established
pursuant
to
section
4
476.53
are
ineligible
for
program
inclusion.
5
(g)
If
the
program
or
its
eligible
customer
group
6
cease
to
exist
and
the
public
utility
seeks
the
recovery
7
of
the
program-specific
facilities
through
a
general
rate
8
case
proceeding,
the
public
utility
shall
demonstrate
the
9
reasonableness
and
prudence
without
any
presumption
regarding
10
approval
of
such
request.
A
public
utility
shall
not
be
11
prohibited
from
recovering
the
costs
of
program-specific
12
facilities
through
an
alternative
regulatory
mechanism.
13
c.
A
public
utility’s
participation
under
this
subsection
14
is
not
mandatory.
A
public
utility
that
elects
to
propose
a
15
tariff
or
tariff
amendment
under
this
subsection
shall
file
an
16
application
for
approval
with
the
board.
The
application
shall
17
include
an
identification
of
costs
and
benefits
related
to
the
18
program
for
the
board’s
review
of
the
conditions
specified
in
19
paragraph
“b”
,
subparagraph
(1).
20
d.
Within
thirty
days,
the
board
shall
approve,
deny,
21
or
docket
for
further
review
an
application
for
a
tariff
or
22
amended
tariff
submitted
pursuant
to
this
subsection.
If
23
the
application
is
docketed
for
further
review,
the
board
24
shall
render
a
decision
within
ninety
days
from
the
date
of
25
application
filing
unless
an
objection
has
been
filed
with
26
the
board.
If
the
application
proposes
to
amend
a
tariff
27
previously
approved
under
this
subsection,
the
board
shall
not
28
reconsider
existing
programs
previously
approved
under
the
29
tariff
unless
proposed
as
part
of
the
amendment.
All
further
30
review
shall
be
conducted
as
a
contested
case
pursuant
to
31
chapter
17A.
32
e.
In
the
exercise
of
its
authority
under
this
subsection,
33
the
board
shall
not
do
any
of
the
following:
34
(1)
Limit
the
number
of
applications
a
public
utility
may
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file.
1
(2)
Deny
or
condition
the
approval
of
a
tariff
because
2
a
public
utility
is
subject
to
an
alternative
regulatory
3
mechanism.
4
(3)
Require
a
public
utility
subject
to
an
alternative
5
regulatory
mechanism
to
record
the
revenues
and
costs
6
associated
with
the
program
in
an
inconsistent
manner
with
7
the
federal
energy
regulatory
commission’s
uniform
system
of
8
accounts,
18
C.F.R.
pt.
101.
9
(4)
Condition
its
approval
on
the
public
utility
changing
10
its
proposal
if
the
public
utility
has
not
agreed
to
such
11
changes.
This
subparagraph
shall
not
be
interpreted
to
prevent
12
the
board
from
identifying
changes
to
the
proposal
which
might
13
result
in
approval.
14
f.
Tariffs
and
programs
approved
pursuant
to
this
subsection
15
shall
be
presumed
just
and
reasonable
in
any
subsequent
general
16
rate
case
proceeding.
17
g.
The
board
shall
not
condition
approval
or
denial
of
a
18
tariff
on
final
adoption
of
rules
by
the
board.
19
h.
The
board
shall
adopt
rules
pursuant
to
chapter
17A
to
20
implement
this
subsection.
21
Sec.
2.
APPLICABILITY.
This
Act
applies
to
a
public
utility
22
filing
an
application
with
the
utilities
board
for
review
of
a
23
tariff
on
or
after
the
effective
date
of
this
Act.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
creates
a
tariff
program
relating
to
innovative
28
utility
programs.
29
The
bill
provides
that
it
is
the
intent
of
the
general
30
assembly
to
encourage
public
utility
innovation
in
pricing
31
and
programs,
and
that
the
new
innovations
not
negatively
32
impact
nonparticipating
customers.
The
bill
additionally
33
provides
that
it
is
the
intent
of
the
general
assembly
to
34
attract
and
retain
customers
for
the
benefit
of
the
state’s
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economy,
support
of
economical
energy
production,
and
support
1
of
sustainable
energy
production.
2
The
bill
authorizes
a
tariff
program.
The
bill
provides
3
that
a
tariff
shall
comply
with
several
provisions.
The
4
tariff
shall
be
optional
for
customers,
define
eligible
5
customer
groups,
and
assess
program
costs
to
participating
6
customers.
The
tariff
shall
not
allow
for
an
eligible
7
customer
group
excluding
directly
competing
customers
in
8
the
same
customer
service
territory,
alter
existing
base
9
rate
or
charges
of
the
public
utility,
or
negatively
impact
10
nonparticipating
customers.
A
tariff
may
include
provisions
11
relating
to
recovery
of
costs,
rate
of
return,
application
of
12
the
program
to
other
specified
patterns,
program
benefits,
13
and
refunds,
credits,
or
waivers
where
the
program
replaces
14
an
existing
service,
or
recovery
of
costs
associated
with
15
existing
facilities.
A
participating
program
customer
shall
16
pay
the
costs
of
the
services
received
from
the
public
utility
17
unless
the
costs
are
refunded,
credited,
or
waived
under
the
18
program.
The
bill
provides
that
if
the
program
or
eligible
19
customer
group
cease
to
exist
and
the
public
utility
seeks
20
recovery
of
the
program-specific
facilities
through
a
general
21
rate
case
proceeding,
the
public
utility
shall
demonstrate
the
22
reasonableness
and
prudence
without
any
presumption
regarding
23
approval
of
such
request.
A
public
utility
shall
be
allowed
24
to
recover
program-specific
facilities
though
alternative
25
regulatory
mechanisms.
26
The
bill
provides
for
tariff
application
and
approval.
A
27
public
utility’s
authority
is
not
mandatory
regarding
tariffs.
28
The
bill
provides
that
an
application
for
a
tariff
or
amendment
29
to
a
tariff
shall
be
filed
with
the
Iowa
utilities
board
30
(board).
The
board
shall
approve,
deny,
or
docket
for
further
31
review
an
application
within
30
days.
If
the
board
dockets
32
the
application
for
further
review,
the
board
shall
render
a
33
decision
within
90
days
from
the
date
of
application
filing,
34
unless
an
objection
is
filed.
The
board
shall
not
reconsider
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existing
programs
previously
approved
under
the
tariff
during
a
1
review
of
an
application
for
an
amendment
to
a
tariff
unless
2
the
review
of
a
program
is
proposed
as
part
of
the
amendment.
3
The
bill
prohibits
the
board
from
certain
actions.
The
4
bill
provides
that
the
board
shall
not
limit
the
number
of
5
applications
a
public
utility
may
file,
deny
or
condition
the
6
approval
of
a
tariff
because
a
public
utility
is
subject
to
7
an
alternative
regulatory
mechanism,
require
a
public
utility
8
subject
to
an
alternative
regulatory
mechanism
to
record
9
revenues
and
costs
in
an
inconsistent
manner
with
specified
10
federal
standards,
or
condition
approval
of
a
tariff
on
the
11
requirement
that
the
public
utility
change
the
proposal
to
12
unagreed-upon
terms.
13
The
bill
provides
that
tariffs
and
programs
approved
14
pursuant
to
the
bill
shall
be
presumed
to
be
just
and
15
reasonable
in
general
rate
case
proceedings.
The
bill
16
prohibits
the
board
from
conditioning
approval
or
denial
of
a
17
tariff
on
the
final
adoption
of
rules
and
requires
the
board
to
18
adopt
rules
related
to
the
bill.
19
The
bill
applies
to
a
public
utility
filing
an
application
20
with
the
board
for
review
of
a
tariff
on
or
after
the
effective
21
date
of
the
bill.
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