Bill Text: IA SSB3078 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act eliminating provisions relating to energy efficiency plans and programs for public utilities.
Spectrum: Committee Bill
Status: (N/A - Dead) 2018-03-20 - Subcommittee recommends passage. [SSB3078 Detail]
Download: Iowa-2017-SSB3078-Introduced.html
Senate
Study
Bill
3078
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
eliminating
provisions
relating
to
energy
efficiency
1
plans
and
programs
for
public
utilities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
476.1A,
subsection
1,
paragraph
g,
Code
1
2018,
is
amended
by
striking
the
paragraph.
2
Sec.
2.
Section
476.1B,
subsection
1,
paragraph
l,
Code
3
2018,
is
amended
by
striking
the
paragraph.
4
Sec.
3.
Section
476.1C,
subsection
1,
paragraph
c,
Code
5
2018,
is
amended
by
striking
the
paragraph.
6
Sec.
4.
Section
476.2,
subsection
5,
Code
2018,
is
amended
7
to
read
as
follows:
8
5.
Each
rate-regulated
gas
and
electric
utility
operating
9
within
the
state
shall
maintain
within
the
state
the
utility’s
10
principal
office
for
Iowa
operations.
The
principal
office
11
shall
be
subject
to
the
jurisdiction
of
the
board
and
shall
12
house
those
books,
accounts,
papers,
and
records
of
the
utility
13
deemed
necessary
by
the
board
to
be
housed
within
the
state.
14
The
utility
shall
maintain
within
the
state
administrative,
15
technical,
and
operating
personnel
necessary
for
the
delivery
16
of
safe
and
reasonably
adequate
services
and
facilities
as
17
required
pursuant
to
section
476.8
.
A
public
utility
which
18
violates
this
section
shall
be
subject
to
the
penalties
19
provided
in
section
476.51
and
shall
be
denied
authority
to
20
recover,
for
a
period
determined
by
the
board,
the
costs
of
an
21
energy
efficiency
plan
pursuant
to
section
476.6,
subsection
8
.
22
Sec.
5.
Section
476.2,
subsection
6,
Code
2018,
is
amended
23
by
striking
the
subsection.
24
Sec.
6.
Section
476.6,
subsections
13,
15,
and
17,
Code
25
2018,
are
amended
by
striking
the
subsections.
26
Sec.
7.
Section
476.8,
subsection
1,
Code
2018,
is
amended
27
to
read
as
follows:
28
1.
Every
public
utility
is
required
to
furnish
reasonably
29
adequate
service
and
facilities.
“Reasonably
adequate
service
30
and
facilities”
for
public
utilities
furnishing
gas
or
31
electricity
includes
programs
for
customers
to
encourage
the
32
use
of
energy
efficiency
and
renewable
energy
sources.
The
33
charge
made
by
any
public
utility
for
any
heat,
light,
gas,
34
energy
efficiency
and
renewable
energy
programs,
water
or
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power
produced,
transmitted,
delivered
or
furnished,
sanitary
1
sewage
or
storm
water
collected
and
treated,
or
communications
2
services,
or
for
any
service
rendered
or
to
be
rendered
in
3
connection
therewith
shall
be
reasonable
and
just,
and
every
4
unjust
or
unreasonable
charge
for
such
service
is
prohibited
5
and
declared
unlawful.
In
determining
reasonable
and
just
6
rates,
the
board
shall
consider
all
factors
relating
to
value
7
and
shall
not
be
bound
by
rate
base
decisions
or
rulings
made
8
prior
to
the
adoption
of
this
chapter
.
9
Sec.
8.
Section
476.10,
subsection
3,
Code
2018,
is
amended
10
to
read
as
follows:
11
3.
Whenever
the
board
shall
deem
it
necessary
in
order
12
to
carry
out
the
duties
imposed
upon
it
in
connection
with
13
rate
regulation
under
section
476.6
,
investigations
under
14
section
476.3
,
or
review
proceedings
under
section
476.31
,
15
the
board
may
employ
additional
temporary
or
permanent
staff,
16
or
may
contract
with
persons
who
are
not
state
employees
for
17
engineering,
accounting,
or
other
professional
services,
or
18
both.
The
costs
of
these
additional
employees
and
contract
19
services
shall
be
paid
by
the
public
utility
whose
rates
20
are
being
reviewed
in
the
same
manner
as
other
expenses
are
21
paid
under
this
section
.
Beginning
on
July
1,
1991,
there
22
is
appropriated
out
of
any
funds
in
the
state
treasury
not
23
otherwise
appropriated,
such
sums
as
may
be
necessary
to
enable
24
the
board
to
hire
additional
staff
and
contract
for
services
25
under
this
section
.
The
board
shall
increase
quarterly
26
assessments
specified
in
subsection
1
,
paragraph
“b”
,
by
27
amounts
necessary
to
enable
the
board
to
hire
additional
staff
28
and
contract
for
services
under
this
section
.
The
authority
to
29
hire
additional
temporary
or
permanent
staff
that
is
granted
to
30
the
board
by
this
section
shall
not
be
subject
to
limitation
31
by
any
administrative
or
executive
order
or
decision
that
32
restricts
the
number
of
state
employees
or
the
filling
of
33
employee
vacancies,
and
shall
not
be
subject
to
limitation
34
by
any
law
of
this
state
that
restricts
the
number
of
state
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employees
or
the
filling
of
employee
vacancies
unless
that
1
law
is
made
applicable
to
this
section
by
express
reference
2
to
this
section
.
Before
the
board
expends
or
encumbers
an
3
amount
in
excess
of
the
funds
budgeted
for
rate
regulation
and
4
before
the
board
increases
quarterly
assessments
pursuant
to
5
this
subsection
,
the
director
of
the
department
of
management
6
shall
approve
the
expenditure
or
encumbrance.
Before
approval
7
is
given,
the
director
of
the
department
of
management
shall
8
determine
that
the
expenses
exceed
the
funds
budgeted
by
the
9
general
assembly
to
the
board
for
rate
regulation
and
that
10
the
board
does
not
have
other
funds
from
which
the
expenses
11
can
be
paid.
Upon
approval
of
the
director
of
the
department
12
of
management
the
board
may
expend
and
encumber
funds
for
13
the
excess
expenses,
and
increase
quarterly
assessments
to
14
raise
the
additional
funds.
The
board
and
the
office
of
15
consumer
advocate
may
add
additional
personnel
or
contract
16
for
additional
assistance
to
review
and
evaluate
energy
17
efficiency
plans
and
the
implementation
of
energy
efficiency
18
programs
including,
but
not
limited
to,
professionally
trained
19
engineers,
accountants,
attorneys,
skilled
examiners
and
20
inspectors,
and
secretaries
and
clerks.
The
board
and
the
21
office
of
consumer
advocate
may
also
contract
for
additional
22
assistance
in
the
evaluation
and
implementation
of
issues
23
relating
to
telecommunication
competition.
The
board
and
the
24
office
of
the
consumer
advocate
may
expend
additional
sums
25
beyond
those
sums
appropriated.
However,
the
authority
to
add
26
additional
personnel
or
contract
for
additional
assistance
27
must
first
be
approved
by
the
department
of
management.
The
28
additional
sums
for
energy
efficiency
shall
be
provided
to
the
29
board
and
the
office
of
the
consumer
advocate
by
the
utilities
30
subject
to
the
energy
efficiency
requirements
in
this
chapter
.
31
Telephone
companies
shall
pay
any
additional
sums
needed
for
32
assistance
with
telecommunication
competition
issues.
The
33
assessments
shall
be
in
addition
to
and
separate
from
the
34
quarterly
assessment.
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Sec.
9.
Section
476.10A,
subsection
1,
paragraph
b,
Code
1
2018,
is
amended
to
read
as
follows:
2
b.
The
amounts
collected
pursuant
to
this
section
shall
be
3
in
addition
to
the
amounts
permitted
to
be
assessed
pursuant
4
to
section
476.10
.
The
board
shall
allow
inclusion
of
these
5
amounts
in
the
budgets
approved
by
the
board
pursuant
to
6
section
476.6,
subsection
15
,
paragraph
“e”
.
7
Sec.
10.
Section
476.52,
Code
2018,
is
amended
to
read
as
8
follows:
9
476.52
Management
efficiency.
10
It
is
the
policy
of
this
state
that
a
public
utility
shall
11
operate
in
an
efficient
manner.
If
the
board
determines
in
the
12
course
of
a
proceeding
conducted
under
section
476.3
or
476.6
13
that
a
utility
is
operating
in
an
inefficient
manner,
or
is
14
not
exercising
ordinary,
prudent
management,
or
in
comparison
15
with
other
utilities
in
the
state
the
board
determines
that
the
16
utility
is
performing
in
a
less
beneficial
manner
than
other
17
utilities,
the
board
may
reduce
the
level
of
profit
or
adjust
18
the
revenue
requirement
for
the
utility
to
the
extent
the
board
19
believes
appropriate
to
provide
incentives
to
the
utility
to
20
correct
its
inefficient
operation.
If
the
board
determines
in
21
the
course
of
a
proceeding
conducted
under
section
476.3
or
22
476.6
that
a
utility
is
operating
in
such
an
extraordinarily
23
efficient
manner
that
tangible
financial
benefits
result
to
24
the
ratepayer,
the
board
may
increase
the
level
of
profit
or
25
adjust
the
revenue
requirement
for
the
utility.
In
making
its
26
determination
under
this
section
,
the
board
may
also
consider
a
27
public
utility’s
pursuit
of
energy
efficiency
programs.
The
28
board
shall
adopt
rules
for
determining
the
level
of
profit
or
29
the
revenue
requirement
adjustment
that
would
be
appropriate.
30
The
board
shall
also
adopt
rules
establishing
a
methodology
31
for
an
analysis
of
a
utility’s
management
efficiency.
32
Sec.
11.
Section
476.53,
subsection
3,
paragraph
c,
Code
33
2018,
is
amended
to
read
as
follows:
34
c.
In
determining
the
applicable
ratemaking
principles,
the
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board
shall
make
the
following
findings:
1
(1)
The
rate-regulated
public
utility
has
in
effect
a
2
board-approved
energy
efficiency
plan
as
required
under
section
3
476.6,
subsection
15
.
4
(2)
The
find
that
the
rate-regulated
public
utility
5
has
demonstrated
to
the
board
that
the
public
utility
has
6
considered
other
sources
for
long-term
electric
supply
7
and
that
the
facility
or
lease
is
reasonable
when
compared
8
to
other
feasible
alternative
sources
of
supply.
The
9
rate-regulated
public
utility
may
satisfy
the
requirements
10
of
this
subparagraph
paragraph
through
a
competitive
bidding
11
process,
under
rules
adopted
by
the
board,
that
demonstrate
12
the
facility
or
lease
is
a
reasonable
alternative
to
meet
its
13
electric
supply
needs.
14
Sec.
12.
REPEAL.
Sections
476.63
and
476.82,
Code
2018,
15
are
repealed.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
eliminates
provisions
in
the
Code
relating
to
20
energy
efficiency
plans
and
programs
for
public
utilities.
21
The
bill
strikes
Code
sections
476.1A(1)(g),
476.1B(1)(l),
22
and
476.1C(1)(c),
which
require
specified
nonregulated
public
23
utilities
to
file
energy
efficiency
plans
with
the
Iowa
24
utilities
board.
25
The
bill
strikes
Code
section
476.6(13),
which
requires
26
rate-regulated
electric
and
gas
utilities
to
offer
energy
27
efficiency
programs
to
customers
through
energy
efficiency
28
plans.
29
The
bill
strikes
Code
section
476.6(15),
which
establishes
30
requirements,
implementation
and
review
procedures,
and
cost
31
recovery
mechanisms
applicable
to
rate-regulated
electric
and
32
gas
utilities,
as
well
as
certain
requirements
and
review
33
procedures
applicable
to
non-rate-regulated
electric
and
gas
34
utilities,
with
respect
to
such
energy
efficiency
plans
and
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energy
efficiency
programs.
1
The
bill
strikes
Code
section
476.6(17),
which
permits
the
2
board
to
require
rate-regulated
gas
and
electric
utilities
3
to
offer
energy
efficiency
program
financing
to
qualified
4
customers.
5
The
bill
makes
conforming
changes
by
removing
references
to
6
public
utility
energy
efficiency
plans
and
energy
efficiency
7
programs
throughout
Code
chapter
476.
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