476.25 - ASSIGNED SERVICE AREAS -- ELECTRIC UTILITIES -- LEGISLATIVE POLICY.

        476.25  ASSIGNED SERVICE AREAS -- ELECTRIC UTILITIES      -- LEGISLATIVE POLICY.         It is declared to be in the public interest to encourage the      development of co-ordinated statewide electric service at retail, to      eliminate or avoid unnecessary duplication of electric utility      facilities, and to promote economical, efficient, and adequate      electric service to the public. In order to effect that public      interest, the board may establish service areas within which      specified electric utilities shall provide electric service to      customers on an exclusive basis. Except for good cause expressed      through formal public statement, the board shall establish these      exclusive service areas on or before July 1, 1979. These exclusive      service area boundaries shall be established by the board upon the      following basis:         1.  The service area boundaries shall be in a line approximately      equidistant between the electric distribution lines of adjacent      electric utilities as they existed on January 1, 1976, and as shown      by the maps filed in accordance with this division. However, those      boundaries may be modified by the board to promote the public      interest, to preserve existing service areas and electric utilities'      rights to serve existing customers, and to prevent unnecessary      duplication of facilities, to take account of natural and physical      barriers which would make electric service beyond these barriers      uneconomic and impractical and those boundaries shall be modified by      the board to take account of the contracts between electric utilities      which have been approved by the board pursuant to subsection 2 of      this section. When an electric utility's exclusive service area is      established by the board to include existing customers presently      served by the facilities of another electric utility, unless a      voluntary exchange of facilities is agreed upon by the electric      utilities involved and approved by the board, the board after notice      and opportunity for hearing, shall require the purchase of those      facilities presently serving these customers at a reasonable price to      be determined by the board. The board, on its own motion or at the      request of an electric utility or municipal corporation, after notice      and opportunity for hearing, may modify the boundaries of an electric      utility exclusive service area which it has previously established if      this modification, including consideration of the factors noted in      this subsection, is found to be in the public interest.         2.  Contracts between electric utilities to designate service      areas and customers to be served by the electric utilities or for the      exchange of customers between electric utilities, when approved by      the board, shall be valid and enforceable and shall be incorporated      into the appropriate exclusive service areas established pursuant to      subsection 1 of this section.  The board shall approve a contract if      it finds that the contract will eliminate or avoid unnecessary      duplication of facilities, will provide adequate electric service to      all areas and customers affected, will promote the efficient and      economical use and development of the electric systems of the      contracting electric utilities, and is in the public interest.         3.  An electric utility shall not serve or offer to serve electric      customers in an exclusive service area assigned to another electric      utility, nor shall an electric utility construct facilities to serve      electric customers in an exclusive service area assigned to another      electric utility.  The state, an electric utility, or any other      person who is injured or threatened with injury by conduct prohibited      by this section may initiate a contested case proceeding with the      board under chapter 17A.  Upon finding a violation of this section      the board shall order appropriate corrective action including      discontinuance of the unlawful service to electric customers, removal      of the unlawful facility, or other disposition the board deems just      and reasonable.  
         Section History: Early Form
         [C77, 79, 81, § 476.25] 
         Section History: Recent Form
         84 Acts, ch 1101, § 1         Referred to in § 476.1B, 476.22