476.52 - MANAGEMENT EFFICIENCY.

        476.52  MANAGEMENT EFFICIENCY.         It is the policy of this state that a public utility shall operate      in an efficient manner.  If the board determines in the course of a      proceeding conducted under section 476.3 or 476.6 that a utility is      operating in an inefficient manner, or is not exercising ordinary,      prudent management, or in comparison with other utilities in the      state the board determines that the utility is performing in a less      beneficial manner than other utilities, the board may reduce the      level of profit or adjust the revenue requirement for the utility to      the extent the board believes appropriate to provide incentives to      the utility to correct its inefficient operation.  If the board      determines in the course of a proceeding conducted under section      476.3 or 476.6 that a utility is operating in such an extraordinarily      efficient manner that tangible financial benefits result to the      ratepayer, the board may increase the level of profit or adjust the      revenue requirement for the utility.  In making its determination      under this section, the board may also consider a public utility's      pursuit of energy efficiency programs.  The board shall adopt rules      for determining the level of profit or the revenue requirement      adjustment that would be appropriate.         The board shall also adopt rules establishing a methodology for an      analysis of a utility's management efficiency.  
         Section History: Recent Form
         83 Acts, ch 127, § 35; 89 Acts, ch 297, § 11