Pantalla
Idioma
Sobre la accesibilidad
Idioma
Pantalla
Entrar

Esta página todavía está en inglés. Las páginas principales ya están en español.

Amendments › HF 2554

Amendment S-5056 to HF 2554

Relating to electric power generation, energy storage, and transmission facility ratemaking principles, and including applicability provisions

Never voted onStrike everything: replaces the whole bill

Filed March 6, 2024 in the Senate by

What it changes

AI summary This amendment replaces the entire bill and establishes new rules for how utility companies set electricity prices. It allows companies to choose between using past cost data, projected future cost data, or multiyear rate plans, and provides specific definitions for energy storage and nuclear reactors. It also requires the state utilities board to set pricing principles in advance for the construction or significant alteration of large power plants, energy storage facilities, or certain facility upgrades.1

Read the amendment’s wording
  1. By striking everything after the enacting clause and inserting: “Section
  2. Section 476.33, subsection 4, Code 2024, is amended to read as follows:
  3. The board shall adopt rules that require the board, in rate regulatory proceedings under sections 476.3 and 476.6 , to utilize either a historic test year , or a future test year , or a multiyear rate plan at the rate-regulated public utility’s discretion , subject to the requirements of this section . a. For a rate regulatory proceeding utilizing a historic test year, the rules shall require the board to consider the use of the most current test period possible in determining reasonable and just rates, subject only to the availability of existing and verifiable data respecting costs and revenues, and in addition, to consider verifiable data that exists within nine months after the conclusion of the test year, respecting known and measurable changes in costs not associated with a different level of revenue, and known and measurable revenues not associated with a different level of costs, that are to occur at any time within twelve months after the date of commencement of the proceedings. Parties proposing adjustments that are not verifiable at the commencement of the proceedings shall include projected data related to the adjustments in their initial substantive filing with the board. For purposes of this paragraph, a proceeding commences under section 476.6 upon the filing date of new or changed rates, charges, schedules, or regulations. b. For a rate regulatory proceeding utilizing a future test year, the rules shall require the board to consider the use of any twelve-month period beginning no later than the date on which a proposed rate change is expected to take effect in determining just and reasonable rates. The rules shall also require the board to conduct a proceeding subsequent to the effective date of a rate resulting from a rate regulatory proceeding utilizing a future test year to determine whether the actual costs and revenues are reasonably consistent with those approved by the board. If the actual costs and revenues are not reasonably consistent with those approved by the board, the board shall adjust the rates accordingly. For a rate regulatory proceeding utilizing a future test year, the board may adopt rules regarding evidence required, information to support forecasts, and any reporting obligations. The board may also adopt rules regarding the conditions under which a public utility that utilizes a future test year may subsequently utilize a historic test year. A public utility shall not be precluded from filing a rate regulatory proceeding utilizing a future test year prior to the adoption of any rules pursuant to this subsection . c. Commencing January 1, 2026, a public utility shall have the option of filing with the board an application to approve a utility tariff and a rate plan to remain in effect for a multiyear period specified in the application, provided that the public utility shall have filed with the board an integrated resource plan, approved by the board, pursuant to section 476.53C. The multiyear rate plan shall establish the rates the public utility may charge for each year of the specified period of years identified in the plan. A rate may change during the course of the multiyear period in the manner set forth in the plan. The board shall either approve the public utility’s application without modification or reject the application upon a finding by the board that the application is not consistent with public interest. If the board rejects an application, the board shall identify in the rejection order the modifications that the board would require as a condition of approval. The utility shall have the option to accept the conditions identified by the board in the order, upon which the board shall approve the amended application, or to withdraw the application. During the term of a multiyear rate plan approved by the board, the rates for the utility’s service shall change only as expressly provided in the multiyear plan, except that board-approved riders and adjustment mechanisms expressly excluded from the plan shall operate for those applicable portions of the utility’s rates. The board may at any time, upon the board’s motion, inquire into the reasonableness of rates charged by a public utility pursuant to a multiyear rate plan, and may proceed under section 476.3 as on a complaint. c. d. This subsection does not limit the authority of the board to consider other evidence in proceedings under sections 476.3 and 476.6 . Sec.
  4. NEW SECTION . 476.52A Definitions. As used in this subchapter unless the context otherwise requires:
  5. “Alternate energy production facility” means the same as defined in section 476.42.
  6. “Energy storage” means any system, equipment, facility, or technology that is capable of absorbing energy, storing the energy for a period of time, and dispatching the energy through one of the following manners: a. Using mechanical, electrochemical, thermal, electrolysis, or other processes to convert and store electric energy that was generated at an earlier time for use at a later time. b. Using mechanical, electrochemical, biochemical, or thermal processes to convert and store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time. c. Storing energy in an electric, thermal, or gaseous state for direct use for heating or cooling at a later time in a manner that avoids the need to use electricity or other fuel sources at that later time, such as a grid-enabled water heater.
  7. “Nuclear reactor” means an apparatus designed to produce electrical or heat energy through sustained nuclear fission in a self-supporting chain reaction.
  8. “Repowering” means either the complete dismantling and replacement of generation equipment at an existing project site, or the installation of new parts and equipment to an existing alternate energy production facility in order to increase energy production, reduce load, increase service capacity, improve project reliability, or extend the useful life of the facility. Sec.
  9. Section 476.53, Code 2024, is amended to read as follows: 476.53 Electric generating , energy storage, and transmission facilities.
  10. It is the intent of the general assembly to attract the development of electric power generating , energy storage, and transmission facilities within the state in sufficient quantity to ensure reliable electric service to Iowa consumers , ensure an adequate base load, and provide economic benefits to the state. Ensuring reliable electric service and providing economic benefits may require public utilities to consider diverse electric power generating technologies and energy storage technologies, including alternate energy production facilities, nuclear reactors, and energy storage facilities. It is also the intent of the general assembly to encourage rate-regulated public utilities to consider altering existing electric power generating facilities, where when reasonable, to manage carbon emission intensity in order to facilitate the transition to a carbon-constrained environment. It is also the intent of the general assembly to encourage the development of nuclear electric power generation within the state using nuclear reactors and to use nuclear power to meet local and regional electric needs.
  11. a. The general assembly’s intent with regard to the development of electric power generating and transmission facilities, or the significant alteration of an existing generating facility, as provided in subsection 1 , shall be implemented in a manner that is cost-effective and compatible with the environmental policies of the state, as expressed in this Title XI . b. The general assembly’s intent with regard to the reliability of electric service to Iowa consumers, as provided in subsection 1 , shall be implemented by considering the diversity of the types of fuel used to generate electricity, the availability and reliability of fuel supplies, and the impact of the volatility of fuel costs.
  12. a. The board shall specify in advance, by order issued after conduct a contested case proceeding , the ratemaking principles that will apply when the costs of the electric power generating facility or alternate energy production facility are included in regulated electric rates whenever a rate-regulated public utility does seeks ratemaking principles for any of the following: (1) (a) Files an application pursuant to section 476A.3 to construct The costs of constructing in Iowa a baseload an electric power generating facility with a nameplate generating capacity equal to or greater than three hundred forty megawatts or a combined-cycle electric power generating facility , or an alternate energy production facility as defined in section 476.42 , or an energy storage facility, or the construction costs to significantly alter an existing electric power generating facility , alternate energy production facility, or energy storage facility . For purposes of this subparagraph, a significant alteration of an existing generating facility , alternate energy production facility, or energy storage facility must, in order to qualify for establishment of ratemaking principles, fall into one of the following categories: (i) Conversion of a coal fueled an electric power generating facility into a gas fueled to an alternate fuel type for the electric power generating facility. (ii) Addition of carbon capture and storage facilities at a coal fueled to an existing electric power generating facility. (iii) Addition of gas fueled capability to a coal fueled facility, in order to convert the facility to one that will rely primarily on gas for future generation facilities to capture exhaust heat and thereby generate additional electric power at an existing electric power generating facility . (iv) Addition of a biomass fueled capability to a coal fueled facility. (v) (iv) Repowering of an alternate energy production facility. For purposes of this subparagraph subdivision, “repowering” shall mean either the complete dismantling and replacement of generation equipment at an existing project site, or the installation of new parts and equipment to an existing alternate energy production facility in order to increase energy production, reduce load, increase service capacity, improve project reliability, or extend the useful life of the facility. (v) Addition of energy storage at an existing electric power generating facility, alternate energy production facility, or energy storage facility. (b) With respect to a significant alteration of an existing generating facility, an original facility shall not be required to be either a baseload or a combined-cycle facility. Only only the incremental investment undertaken by a utility under subparagraph division (a), subparagraph subdivision (i), (ii), or (iii) , or (iv) shall be eligible to apply the ratemaking principles established by the order issued pursuant to paragraph “e” . Facilities for which advanced advance ratemaking principles are obtained pursuant to this section shall not be subject to a subsequent board review pursuant to section 476.6, subsection 19 , to the extent that the investment has been considered by the board under this section . To the extent an eligible utility has been authorized to make capital investments subject to section 476.6, subsection 19 , such investments shall not be eligible for ratemaking principles pursuant to this section . (2) Leases or owns When leased or owned in Iowa, in whole or in part, a new baseload electric power generating facility with a nameplate generating capacity equal to or greater than three hundred forty megawatts or a combined-cycle electric power generating , a new energy storage facility, or a new alternate energy production facility as defined in section 476.42 . b. If the board finds that the utility’s application meets the requirements of paragraph “c” , the board shall specify by order issued after the contested case proceeding the ratemaking principles that will apply when the costs of the electric power generating facility or alternate energy production facility are included in regulated electric rates. In determining the applicable ratemaking principles, the board shall not be limited to traditional ratemaking principles or traditional cost recovery mechanisms. Among the principles and mechanisms the board may consider, the board has the authority to approve ratemaking principles proposed by a rate-regulated public utility that provide for reasonable restrictions upon the ability of the public utility to seek a general increase in electric rates under section 476.6 for at least three years after the generating facility begins providing service to Iowa customers. c. In determining the applicable ratemaking principles, the board shall make the following findings: (1) The rate-regulated public utility has in effect a board-approved energy efficiency plan as required under section 476.6, subsection 15 . (2) The rate-regulated public utility has demonstrated to the board that the public utility has considered other sources for long-term electric supply and that the facility or lease is reasonable when compared to other feasible alternative sources of supply. The rate-regulated public utility shall provide support of reasonability with an electric utility resource plan pursuant to section 476.53C, that has been completed no more than twenty-four months prior to the filing of the public utility’s application. d. The applicable ratemaking principles shall be determined in a contested case proceeding , which proceeding required by paragraph “a” may be combined with the proceeding for issuance of a certificate conducted pursuant to chapter 476A . e. The order setting forth the applicable ratemaking principles shall be issued prior to the commencement of construction or lease of the facility. f. Following issuance of the order, the rate-regulated public utility shall have the option of proceeding according to either of the following: (1) Withdrawing its application for a certificate pursuant to chapter 476A . (2) Proceeding with the construction or lease of the facility. g. Notwithstanding any provision of this chapter to the contrary, the ratemaking principles established by the order issued pursuant to paragraph “e” shall be binding with regard to the specific electric power generating facility in any subsequent rate proceeding.
  13. The utilities board and the consumer advocate may employ additional temporary staff, or may contract for professional services with persons who are not state employees, as the board and the consumer advocate deem necessary to perform required functions as provided in this section , including but not limited to review of power purchase contracts, review of emission plans and budgets, and review of ratemaking principles proposed for construction or lease of a new generating facility. Beginning July 1, 2002, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the board and the consumer advocate to hire additional staff and contract for services under this section . The costs of the additional staff and services shall be assessed to the utilities pursuant to the procedure in section 476.10 and section 475A.6 . Sec.
  14. NEW SECTION . 476.53B Department authority and proceedings. The board shall adopt rules pursuant to chapter 17A to provide for the completion of proceedings under section 476.53 within ten months after the date of the filing of a petition under section 476.53, subsection
  15. The rules shall include reasonable time limitations for the submission or completion of comments and testimony, and exhibits, briefs, and hearings, and may provide for the granting of additional time upon the request of a party to the proceeding for good cause shown. Sec.
  16. NEW SECTION . 476.53C Electric utility resources planning. An electric utility regulated by the board shall file a resource plan at least once every five years. The board shall review a resource plan for completeness. A resource plan shall consider all reasonable resources for meeting the probable future demand for energy, including supply resources and conservation and management of demand. The objectives of a resource plan include but are not limited to adequate, cost-effective, and reliable energy service considering costs, fuel diversity, and probable future demand for energy. A resource plan shall not require a specific outcome or specific investment decisions. A resource plan shall reflect the circumstances and management judgment of an electric utility. This section does not restrict an electric utility from making planning decisions based on future resource needs subject to the ratemaking oversight of the board.”
  17. Title page, by striking lines 2 and 3 and inserting “and transmission facility ratemaking principles.”

Official amendment (PDF) · In the Bill Book