IA HF473

Bill

A bill for an act relating to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities.(Formerly HF 56; See HF 2101.)

Introduced
02/27/2023

In Committee
05/04/2023

Crossed Over

Passed

Dead
04/16/2024

Introduced Session

90th General Assembly

Bill Summary

This bill relates to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities. The bill increases the threshold amount requiring utilities board (board) approval from $500,000 to $3 million when a public utility is acquiring a water, sanitary sewer, or storm water utility. The bill modifies city utility acquisition to include that the city must first certify completion of the requirements of Code sections 362.3 (regarding publication of notices), 364.2 (regarding vesting power of franchises), 364.7 (regarding disposal of property), 384.84 (regarding rate and charges, billing, and contracts), 388.2 (regarding submission to voters), 388.2A (regarding the procedure for disposal of a city utility by sale), and 388.6 (regarding discrimination in rates). Current law requires that the city meet requirements of Code section 388.2A, but not certify compliance. The bill provides that the rate base in the final order approving an acquisition shall include reasonable and customary closing costs, the cost of appraisals, and regulatory and legal expenses incurred in connection with the acquisition. The bill provides that the board shall require a public utility to submit a purchase agreement for the acquisition and shall find the purchase agreement includes terms, conditions, requirements, and other provisions applicable to the system sought to be acquired and the public utility shall be in compliance with specified provisions in determining applicable ratemaking principles. The purchase agreement shall include a term allowing the parties 30 days after final approval of the ratemaking principles to terminate the purchase agreement without penalty. The bill provides that the board shall issue a final order within 120 days of the filing of an application for the acquisition of an at-risk utility system, or an order within 180 days for all other acquisitions. Current law provides that the board shall issue a final order within 120 days of filing the application for a utility that is an at-risk system.

AI Summary

This bill relates to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities. The key provisions include: 1. Increasing the threshold amount requiring utilities board (board) approval from $500,000 to $3 million when a public utility is acquiring a water, sanitary sewer, or storm water utility. 2. Modifying city utility acquisition to require the city to first certify completion of certain requirements, including publication of notices, vesting power of franchises, disposal of property, rate and charges, billing, and contracts, submission to voters, procedure for disposal of a city utility by sale, and discrimination in rates. 3. Providing that the rate base in the final order approving an acquisition shall include reasonable and customary closing costs, the cost of appraisals, and regulatory and legal expenses incurred in connection with the acquisition. 4. Requiring the board to find that the purchase agreement includes terms, conditions, requirements, and other provisions applicable to the system to be acquired that are in substantial compliance with the specified requirements, and allowing the parties to terminate the purchase agreement without penalty within 30 days after final approval of the ratemaking principles. 5. Requiring the board to issue a final order within 120 days of the filing of an application for the acquisition of an at-risk utility system, or an order within 180 days for all other acquisitions.

Committee Categories

Business and Industry

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Commerce (House)

Last Action

Withdrawn. H.J. 316. (on 02/19/2024)

Official Document

https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=HF473

(4 Companion Bills)

Version:

Document Type	Source Location
State Bill Page	https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=HF473
BillText	https://www.legis.iowa.gov/docs/publications/LGI/90/attachments/HF473.html

Bill	Bill Name	Last Action	Type
HF2101	A bill for an act relating to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities. (Formerly HF 473, HF 56.) Effective date: 07/01/2024.	Signed by Governor. H.J. 772.	Similar To
HF56	A bill for an act relating to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities.(See HF 473, HF 2101.)	Withdrawn. H.J. 316.	Similar To
SF2181	A bill for an act relating to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities.(Formerly SSB 1097.)	Withdrawn. S.J. 381.	Similar To
SSB1097	A bill for an act relating to the acquisition of water, sanitary sewer, and storm water utilities by rate-regulated public utilities.(See SF 2181.)	Committee report approving bill, renumbered as SF 2181.	Related

Bill > HF473

summary

Introduced Session

Bill Summary

AI Summary

Committee Categories

Sponsors (0)

Other Sponsors (1)

Last Action

Official Document

bill text

bill summary

bill summary

bill summary