Relating to tariffs for public utility innovation programs and including applicability provisions

The bill authorizes a tariff program. The bill provides that a tariff shall comply with several provisions. The tariff shall be optional for customers, define eligible customer groups, and assess program costs to participating customers. Program costs shall include specified direct costs arising from the tariff program and costs related to the implementation of tariff programs. Participants of a tariff program shall participate in future indirect costs allocated to customers of that utility without regard for the existence of an approved tariff. The tariff shall not allow for an eligible customer group excluding directly competing customers in the same customer service territory, alter existing base rate or charges of the public utility, or negatively impact nonparticipating customers. A tariff may include provisions relating to recovery of costs, rate of return, application of the program to other specified patterns, program benefits, and refunds, credits, or waivers where the program replaces an existing service, or recovery of costs associated with existing facilities. A participating program customer shall pay the costs of the services received from the public utility unless the costs are refunded, credited, or waived under the program. The bill provides that if the program or eligible customer group cease to exist and the public utility seeks recovery of the program-specific facilities through a general rate case proceeding, the public utility shall demonstrate the reasonableness and prudence without any presumption regarding approval of such request. A public utility shall be allowed to recover program-specific facilities though alternative regulatory mechanisms. The bill provides for tariff application and approval. A public utility’s authority is not mandatory regarding tariffs. The bill provides that an application for a tariff or amendment to a tariff shall be filed with the Iowa utilities board (board). The board shall approve, deny, or docket for further review an application within days. If the board dockets the application for further review, the board shall render a decision within days from the date of application filing, unless an objection is filed. The board shall not reconsider existing programs previously approved under the tariff during a review of an application for an amendment to a tariff unless the review of a program is proposed as part of the amendment. The bill prohibits the board from certain actions. The bill provides that the board shall not limit the number of applications a public utility may file, deny or condition the approval of a tariff because a public utility is subject to an alternative regulatory mechanism, require a public utility subject to an alternative regulatory mechanism to record revenues and costs in an inconsistent manner with specified federal standards, or condition approval of a tariff on the requirement that the public utility change the proposal to unagreed-upon terms. The bill provides that tariffs and programs approved pursuant to the bill shall be presumed to be just and reasonable in general rate case proceedings. The bill prohibits the board from conditioning approval or denial of a tariff on the final adoption of rules and requires the board to adopt rules related to the bill. The bill applies to a public utility filing an application with the board for review of a tariff on or after the effective date of the bill.