General Assembly: 77 (1998 Regular GA) - Chapter 1013 - Public utilities — cost reviews


Published: 1998-03-17

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17 LAWS OF THE SEVENIT-SEVENTH G.A., 1998 SESSION CH. 1013

CHAPTER 1012 REGULATION OF MULTIPLE EMPLOYER WELFARE ARRANGEMENTS

H.F.2189

AN ACT relating to the exemption of certain multiple employer welfare arrangements from regulation by the insurance division and providing an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. 1994 Iowa Acts, chapter 1038, section 3, as amended by 1995 Iowa Acts, chapter 33, section 1, 1996 Iowa Acts, chapter 1024, section 1, and 1997 Iowa Acts, chapter 67, section 2, is amended to read as follows:

SEC.3. REPEAL. This Act is repealed effective July 1, +998 2001.

Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate importance, takes effect upon enactment.

Approved March 17, 1998

CHAPTER 1013 PUBLIC UTILITIES - COST REVIEWS

H.F.2331

AN ACT relating to utility cost reviews associated with a rate-regulated public utility's procurement of natural gas or fuel for use in generating electricity.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 476.6, subsections 15 and 16, Code 1997, are amended to read as follows:

15. NATURAL GAS SUPPLY AND COST REVIEW. The board shall periodically, bl:lt Rot less thaR aRRl:lally, conduct a proceeding for the purpose of evaluating the reasonableness and prudence of a rate-regulated public utility's natural gas procurement and contracting practices. The natural gas supply and cost review shall be conducted as a contested case pursuant to chapter 17 A.

Under procedures established by the board, each rate-regulated public utility furnishing gas shall periodically file a complete natural gas procurement plan describing the expected sources and volumes of its gas supply and changes in the cost of gas anticipated over a future twelve-month period specified by the board. The plaR shall describe all major eORtracts aRd gas Sl:lPPly arraRgemeRts eRtered iRtO by the l:ltility for obtaiRiRg gas dl:lriRg the specified twelYe mORth period. The descriptioR of the major cORtracts aRd arraRgemeRts shall iR cll:lde the price of gas, the dl:lratioR of the cORtract or arraRgemeRt, aRd aR explaRatioR or descriptioR of aRY other term or pro'lisioR as reql:lired by the board. The plaR shall also iRdl:lde the l:ltility's e¥all:latioR of the reasoRableRess aRd prudeRce of its decisioRs to obtaiR gas iR the maRRer described iR the plaR, aR meplaRatioR of the legal aRd regl:llatory actioRs talwR by the l:ltility to miRimize the cost of gas pl:lrchased by the l:ltility, aRd sl:lch other iRformatioR as the board may reql:lire. The utilities shall file information as the board deems appropriate.

During the natural gas supply and cost review, the board shall evaluate the reasonable- ness and prudence of the gas procurement plan. lR evall:latiRg the gas proCl:lremeRt plaR, the

CH.I013 LAWS OF THE SEVENTY-SEVENTH GA, 1998 SESSION 18

baard shall cansider the "all:lme, cast, and reliability af the majar alternative gas sl:lpplies available ta the I:ltility; the cast af alternative fuels available ta the I:ltility's cl:lstamers; the availability af gas in starage; the apprapriate legal and regl:llatary actians which the I:ltility cal:lld tal~e ta minimize the cast af pl:lrchased gas; the gas pracl:lrement practices af the I:ltility; and ather relevant factars. If a utility is not taking all reasonable actions to minimize its purchase gas costs, consistent with assuring an adequate long-term supply of natural gas, the board shall not allow the utility to recover from its customers purchase gas costs in excess of those costs that would be incurred under reasonable and prudent policies and practices.

16. l~rNu.'\L ELECTRIC ELECTRIC ENERGY SUPPLY AND COST REVIEW. The board shall periodically conduct an annl:lal a proceeding for the purpose of evaluating the reason- ableness and prudence of a rate-regulated public utility's procurement and contracting prac- tices related to the acquisition of fuel for use in generating electricity. The evaluation may review the reasonableness and prudence of actions taken by a rate-regulated public utility to comply with the federal Clean Air Act Amendments of 1990, Pub. L. No. 101-549. The proceeding shall be conducted as a contested case pursuant to chapter 17 A. Under proce- dures established by the board, the utility shall file information as the board deems appro- priate. If a utility is not taking all reasonable actions to minimize its fuel and allowance transaction costs, the board shall not allow the utility to recover from its customers fuel and allowance transaction costs in excess of those costs that would be or would have been incurred under reasonable and prudent policies and practices.

Approved March 17, 1998

CHAPTER 1014 FOREIGN INVESTMENTS BY INSURANCE COMPANIES

S.F.2279

AN ACT relating to authorized investments by insurance companies in obligations of foreign governments and foreign corporations.

Be It Enacted by the General Assembly of the State oflowa:

Section 1. Section 511.8, subsection 19, unnumbered paragraph 1, Code 1997, is amended to read as follows:

Bonds or other evidences of indebtedness, not to include currency, issued, assumed, or guaranteed by a foreign government other than Canada, or by a corporation incorporated under the laws of a foreign government other than Canada. Any sl:lch Such governmental obligations must be valid, legally authorized and issued. and on the date of acquisition have predominantly investment qualities and characteristics as provided by rule. Any sl:lch Such corporate obligations must meet the qualifications established in subsection 5 of this sec tieR: for bonds and other evidences of indebtedness issued, assumed, or guaranteed by a corporation incorporated under the laws of the United States or Canada. Foreign invest- ments authorized by this subsection are not eligible in excess of twa ten percent of the legal reserve of the life insurance company or association. Investments in obligations of a foreign government other than Canada are not eligible in excess of two percent of the legal reserve in the securities of foreign governments of anyone foreign nation. Investments in a corpo- ration incorporated under the laws of a foreign government other than Canada are not