476.53 - ELECTRIC GENERATING AND TRANSMISSION FACILITIES.

        476.53  ELECTRIC GENERATING AND TRANSMISSION      FACILITIES.         1.  It is the intent of the general assembly to attract the      development of electric power generating and transmission facilities      within the state in sufficient quantity to ensure reliable electric      service to Iowa consumers and provide economic benefits to the state.         2.  The general assembly's intent with regard to the development      of electric power generating and transmission facilities, 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 Title XI.         3.  For purposes of this section, unless the context otherwise      requires, the terms "cogeneration pilot project facility",      "energy sales agreement", "qualified cogeneration pilot project      facility", and "utility-owned cogeneration pilot project      facility" mean the same as defined in section 15.269.{         4. a.  The board shall specify in advance, by order issued      after a contested case proceeding, the ratemaking principles that      will apply when the costs of the electric power generating facility,      alternate energy production facility, cogeneration pilot project      facility, or energy sales agreement are included in regulated      electric rates whenever a rate-regulated public utility does any of      the following:         (1)  Files an application pursuant to section 476A.3 to construct      in Iowa a baseload electric power generating facility with a      nameplate generating capacity equal to or greater than three hundred      megawatts or a combined-cycle electric power generating facility, or      an alternate energy production facility as defined in section 476.42.         (2)  Leases or owns 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 megawatts or a      combined-cycle electric power generating facility, or a new alternate      energy production facility as defined in section 476.42.         (3)  Enters into an agreement for the purchase of the electric      power output of a qualified cogeneration pilot project facility or      constructs a utility-owned cogeneration pilot project facility      pursuant to section 15.269.{         b.  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 16.         (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, lease, or      cogeneration pilot project facility is reasonable when compared to      other feasible alternative sources of supply.  The rate-regulated      public utility may satisfy the requirements of this subparagraph      through a competitive bidding process, under rules adopted by the      board, that demonstrate the facility, energy sales agreement, or      lease is a reasonable alternative to meet its electric supply needs.         d.  The applicable ratemaking principles shall be determined      in a contested case proceeding, which proceeding 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, or execution of an energy sales agreement      related to the cogeneration pilot project 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 or      implementation of an energy sales agreement related to a cogeneration      pilot project 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 or cogeneration pilot      project facility in any subsequent rate proceeding.         5.  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 or a cogeneration pilot project 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.         6. a.  A qualified cogeneration pilot project facility{ may      file a petition with the board for a determination of the avoided      cost of an electric utility as provided in the federal Public Utility      Regulatory Policies Act of 1978 and related federal regulations, if      such a determination has not been made within the last twenty-four      months or if there is reason to believe the avoided cost has changed.         b.  The board shall issue its determination of the electric      utility's avoided cost within one hundred twenty days after the      petition is filed.         c.  The board, for good cause shown, may extend the deadline      for issuing the decision for an additional period not to exceed one      hundred twenty days.         d.  The board shall not issue a decision under this subsection      without providing notice and an opportunity for hearing.         e.  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 subsection.  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      electric utility pursuant to the procedure in sections 476.10 and      475A.6.  
         Section History: Recent Form
         83 Acts, ch 127, § 36, 50; 2001 Acts, 1st Ex, ch 4, §12, 36; 2002      Acts, 2nd Ex, ch 1003, §31, 35; 2003 Acts, ch 29, §5, 6; 2003 Acts,      ch 159, §2--4; 2004 Acts, ch 1101, §67         Referred to in § 476.23, 476A.4, 476A.6, 476A.7 
         Footnotes
         {Section 15.269, establishing the cogeneration pilot program, is      repealed pursuant to its own terms effective July 1, 2007; utilities      board proceedings pending on that date that are being conducted      pursuant to this section shall be completed notwithstanding the      repeal; 2003 Acts, ch 159, §1