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H0694......................................................by STATE AFFAIRS UTILITY RATES - CONSTRUCTION WORK - Amends existing law relating to utility rates to provide that, except upon its finding that the public interest will be served thereby, the Public Utilities Commission is prohibited in any order from setting rates for a utility that grants a return on construction work in progress or on property held for future use and which is not currently used and useful in providing utility service; to delete reference to short-term construction work in progress; and to provide that if the commission sets rates for any utility including a return on property held for future use and subsequently determines that such property is not needed to provide utility service, then the commission shall determine whether any gain or loss occurring from the sale or other disposition of the property may be included in the utility's rates. 02/16 House intro - 1st rdg - to printing 02/17 Rpt prt - to St Aff 02/23 Rpt out - rec d/p - to 2nd rdg 02/24 2nd rdg - to 3rd rdg 03/02 3rd rdg - PASSED - 66-0-4 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Block, Crow, Field(18), Smith(24) Floor Sponsor - Black Title apvd - to Senate 03/03 Senate intro - 1st rdg - to St Aff 03/13 Rpt out - rec d/p - to 2nd rdg 03/14 2nd rdg - to 3rd rdg 03/16 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- None Floor Sponsor - McKenzie Title apvd - to House 03/17 To enrol 03/20 Rpt enrol - Sp signed 03/21 Pres signed - To Governor 03/22 Governor signed Session Law Chapter 107 Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 694 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC UTILITY PROPERTY NOT PROVIDING UTILITY SERVICE; AMENDING 3 SECTION 61-502A, IDAHO CODE, TO PROVIDE THAT, EXCEPT UPON ITS FINDING THAT 4 THE PUBLIC INTEREST WILL BE SERVED THEREBY, THE PUBLIC UTILITIES COMMIS- 5 SION IS PROHIBITED IN ANY ORDER FROM SETTING RATES FOR ANY UTILITY THAT 6 GRANTS A RETURN ON CONSTRUCTION WORK IN PROGRESS OR ON PROPERTY HELD FOR 7 FUTURE USE AND WHICH IS NOT CURRENTLY USED AND USEFUL IN PROVIDING UTILITY 8 SERVICE, TO DELETE REFERENCE TO SHORT-TERM CONSTRUCTION WORK IN PROGRESS 9 AND TO PROVIDE IF THE COMMISSION SETS RATES FOR ANY UTILITY INCLUDING A 10 RETURN ON PROPERTY HELD FOR FUTURE USE AND SUBSEQUENTLY DETERMINES THAT 11 SUCH PROPERTY IS NOT NEEDED TO PROVIDE UTILITY SERVICE, THEN THE COMMIS- 12 SION SHALL DETERMINE WHETHER ANY GAIN OR LOSS OCCURRING FROM THE SALE OR 13 OTHER DISPOSITION OF THE PROPERTY MAY BE INCLUDED IN THE UTILITY'S RATES. 14 Be It Enacted by the Legislature of the State of Idaho: 15 SECTION 1. That Section 61-502A, Idaho Code, be, and the same is hereby 16 amended to read as follows: 17 61-502A. RESTRICTION ON RATES AUTHORIZING RETURN ON PROPERTY NOT PROVID- 18 ING UTILITY SERVICE. Except upon its explicit findingof an extreme emergency19 that the public interest will be served thereby, the commission is hereby pro- 20 hibited in any order issued after the effective date of this act, from setting 21 rates for any utility that grants a return on construction work in progress 22(except short-term construction work in progress)or property held for future 23 use and which is not currently used and useful in providing utility service. 24As used in this section, short-term construction work in progress means con-25struction work that has begun and will be completed in not more than twelve26(12) months.Except as authorized by this section, any rates granting a return 27 on construction work in progress(except short-term construction work in prog-28ress)or property held for future use are hereby declared to be unjust, unrea- 29 sonable, unfair, unlawful and illegal. When construction work in progress is 30 excluded from the rate base, the commission must allow a just, fair and rea- 31 sonable allowance for funds used during construction or similar account to be 32 accumulated, computed in accordance with generally accepted accounting princi- 33 ples. If the commission sets rates for any utility including a return on prop- 34 erty held for future use and subsequently determines that such property is not 35 needed to provide utility service, then the commission shall determine whether 36 any gain or loss occurring from the sale or other disposition of the property 37 may be included in the utility's rates.
REPRINT REPRINT REPRINT REPRINT REPRINT STATEMENT OF PURPOSE RS 16040C1 The purpose of this legislation is to provide the Public Utilities Commission with the authority to approve and set just, reasonable and fair rates for energy and other utility facilities under construction and for property that is acquired by a utility and held for future use, such as a substation location. The Public Utilities Commission, upon its explicit finding that the public interest will be served, may grant a utility a return on construction work in progress or property held for future use which is not currently used in providing utility service. This legislation will help ensure the development of energy and other utility facilities meet the growing needs of Idaho citizens at a reasonable cost. Additionally, property needed for future utility infrastructure can be acquired early in the planning process, which will reduce costs for utility customers. FISCAL NOTE There is no impact on the general fund. The Idaho Public Utilities Commission is a self-sufficient regulatory agency which derives its funding from the annual fees assessed against the public utilities it regulates. Contact Name: Representative Max Black Phone: (208) 332-1000 Name: Rich Hahn, Idaho Power Company Phone: (208) 388-2513 STATEMENT OF PURPOSE/FISCAL NOTE H 694