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H0815.....................................................by WAYS AND MEANS
ELECTRIC UTILITIES - SALE - Amends and adds to existing law to provide
legislative intent; to require a finding that the transaction be consistent
with the public interest; to require the inclusion of the director of the
Department of Water Resources' conditions regarding water rights; to
provide that the applicant shall bear the burden of showing that the
transfer requirements have been satisfied; to provide that any
authorization or order of the Idaho Public Utilities Commission approving
the sale, assignment or transfer of water rights used in the generation of
electric power shall be issued only upon conditions required by the
director of the Department of Water Resources as necessary to prevent a
change in the use of water under the rights held for hydropower purposes
that would cause an injury to any water rights existing on the date of the
sale, assignment or transfer that any such conditions shall ensure that the
public interest will not be adversely affected; to provide conditions; and
to provide the effect of a certain agreement.
04/03 House intro - 1st rdg - to printing
Rpt prt - to 2nd rdg
Rls susp - PASSED - 67-0-3
AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
Black, Boe, Bruneel, Callister, Campbell, Chase, Cheirrett, Crow,
Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes,
Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck,
Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford,
Loertscher(Loertscher), Mader, Marley, McKague, Meyer, Montgomery,
Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds,
Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith,
Smylie, Stevenson, Stoicheff, Stone, Taylor, Wheeler, Wood,
Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Clark, Tilman, Trail
Floor Sponsor
Title apvd - to Senate
04/04 Senate intro - 1st rdg - to St Aff
Rpt out - rec d/p - to 2nd rdg
04/05 2nd rdg - to 3rd rdg
Rls susp - PASSED - 33-0-2
AYES--Andreason, Boatright, Burtenshaw, Cameron, Crow, Danielson,
Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram,
Ipsen, Keough, King-Barrutia, McLaughlin, Noh, Parry, Richardson,
Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
Walton, Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--Bunderson, Lee
Floor Sponsor - Lee
Title apvd - to House
To enrol - rpt enrol - Sp signed - Pres signed
04/06 To Governor
04/12 Governor signed
Session Law Chapter 224
Effective: 04/12/00
H0815
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 815
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO THE SALE OR TRANSFER OF ELECTRIC UTILITIES; PROVIDING LEGISLATIVE
3 INTENT; AMENDING SECTION 61-328, IDAHO CODE, TO REQUIRE A FINDING THAT THE
4 TRANSACTION SHALL BE CONSISTENT WITH THE PUBLIC INTEREST, TO REQUIRE
5 INCLUSION OF THE DIRECTOR OF THE DEPARTMENT OF WATER RESOURCES CONDITIONS
6 REGARDING WATER RIGHTS AND TO PROVIDE THAT THE APPLICANT SHALL BEAR THE
7 BURDEN OF SHOWING THAT THE TRANSFER REQUIREMENTS HAVE BEEN SATISFIED;
8 AMENDING SECTION 42-1701, IDAHO CODE, TO PROVIDE THAT ANY AUTHORIZATION OR
9 ORDER OF THE IDAHO PUBLIC UTILITIES COMMISSION, UNDER THE PROVISIONS OF
10 THE PUBLIC UTILITIES LAW, APPROVING THE SALE, ASSIGNMENT OR TRANSFER OF
11 WATER RIGHTS USED IN THE GENERATION OF ELECTRIC POWER SHALL BE ISSUED ONLY
12 UPON CONDITIONS REQUIRED BY THE DIRECTOR OF THE DEPARTMENT OF WATER
13 RESOURCES AS NECESSARY TO PREVENT A CHANGE IN THE USE OF WATER UNDER THE
14 RIGHTS HELD FOR HYDROPOWER PURPOSES THAT WOULD CAUSE AN INJURY TO ANY
15 WATER RIGHTS EXISTING ON THE DATE OF THE SALE, ASSIGNMENT OR TRANSFER,
16 THAT ANY SUCH CONDITIONS SHALL ENSURE THAT THE PUBLIC INTEREST, AS IT PER-
17 TAINS TO THE USE OF WATER UNDER THE HYDROPOWER WATER RIGHTS, WILL NOT BE
18 ADVERSELY AFFECTED, TO PROVIDE CONDITIONS, TO PROVIDE THE EFFECT OF A CER-
19 TAIN AGREEMENT AND TO MAKE A TECHNICAL CORRECTION; AND DECLARING AN EMER-
20 GENCY.
21 Be It Enacted by the Legislature of the State of Idaho:
22 SECTION 1. LEGISLATIVE INTENT. The Legislature hereby finds and declares
23 that:
24 (1) The protection of customers of public utilities that provide electric
25 energy is a matter of fundamental statewide concern.
26 (2) Any acquisition of a public utility that provides electric energy
27 shall serve the utility's customers in the public interest through some combi-
28 nation of features that could include, but is not limited to, utility service,
29 rates, financial structure, reliability, water rights protection, and valua-
30 tion of the utility's assets. The duration of benefits shall be considered.
31 (3) It is therefore the policy of the state of Idaho to regulate acquisi-
32 tions of public utilities which provide electric energy in a manner that pro-
33 motes the public interest.
34 SECTION 2. That Section 61-328, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 61-328. ELECTRIC UTILITIES -- SALE OF PROPERTY TO BE APPROVED BY COMMIS-
37 SION. (1) No electric public utility or electrical corporation as defined in
38 chapter 1, title 61, Idaho Code, owning, controlling or operating any property
39 located in this state which is used in the generation, transmission, distribu-
40 tion or supply of electric power and energy to the public or any portion
41 thereof, shall merge, sell, lease, assign or transfer, directly or indirectly,
42 in any manner whatsoever, any such property or interest therein, or the opera-
2
1 tion, management or control thereof, or any certificate of convenience and
2 necessity or franchise covering the same, except when authorized to do so by
3 order of the public utilities commission. of the state of Idaho.
4 (2) Such authorization and order The electric public utility or electri-
5 cal corporation shall be issued only following public notice and hearing, upon
6 file a verified application of the parties setting forth such facts as the
7 commission shall prescribe or require., and if tThe commission shall issue a
8 public notice and shall conduct a public hearing upon the application.
9 (3) Before authorizing the transaction, the public utilities commission
10 shall find:
11 (a) Tthat the transaction is consistent with the public interest; will
12 not be adversely affected,
13 (b) Tthat the cost of and rates for supplying service will not be
14 increased by reason of such transaction,; and
15 (c) Tthat the applicant for such acquisition or transfer has the bona
16 fide intent and financial ability to operate and maintain said property in
17 the public service.; provided, that no such order or authorization shall
18 be issued or granted to any applicant or party coming within the prohibi-
19 tions set forth in this act.
20 The applicant shall bear the burden of showing that standards listed above
21 have been satisfied.
22 (4) The commission shall have power to issue said authorization and order
23 as prayed for, or to refuse to issue the same, or to issue such authorization
24 and order with respect only to a part of the property involved., and The com-
25 mission shall include in any authorization or order the conditions required by
26 the director of the department of water resources under section 42-1701(6),
27 Idaho Code. The commission may attach to its authorization and order such
28 other terms and conditions as in its judgment the public convenience and
29 necessity may require.
30 SECTION 3. That Section 42-1701, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 42-1701. CREATION OF DEPARTMENT OF WATER RESOURCES -- DIRECTOR -- QUALI-
33 FICATIONS -- DUTIES. (1) There is hereby created the department of water
34 resources, which shall, for the purposes of section 20, article IV, of the
35 Cconstitution of the state of Idaho, be an executive department of the state
36 government.
37 (2) The executive and administrative authority of the department, except
38 such authority as is specifically assigned by law to the water resource board,
39 shall be vested in a director of the department of water resources who shall
40 be a licensed civil or hydraulic engineer, and shall have had not less than
41 five (5) years' experience in the active practice of such profession, and
42 shall be familiar with irrigation in Idaho.
43 (3) The director may delegate such duties as are imposed upon him by law
44 to an employee of the department of water resources whenever in the opinion of
45 the director, such delegation is necessary for the efficient administration of
46 his duties.
47 (4) The director shall organize the department into such divisions and
48 other administrative sub-units as may be necessary in order to efficiently
49 administer the department. All employees of the department, except the direc-
50 tor, shall be selected and appointed by the director in conformance with the
51 provisions of chapter 53, title 67, Idaho Code.
52 (5) The director and/or employees of the department of water resources
53 may make reasonable entry upon any lands in the state for the purpose of mak-
3
1 ing investigations and surveys, or for other purposes necessary to carry out
2 the duties imposed by law.
3 (6) (a) Any authorization or order of the Idaho public utilities commis-
4 sion, under the provisions of section 61-328, Idaho Code, approving the
5 sale, assignment or transfer of hydropower water rights used in the gen-
6 eration of electric power shall be issued only upon such conditions as the
7 director of the department of water resources shall require as necessary
8 to prevent any change in use of water under the water rights held for
9 hydropower purposes that would cause injury to any water rights existing
10 on the date of the sale, assignment or transfer. Any such conditions shall
11 ensure that the public interest, as it pertains to the use of water under
12 the hydropower water rights, will not be adversely affected. Conditions,
13 if any, imposed by the director shall be subject to review under section
14 42-1701A(4), Idaho Code.
15 (b) Subsection (6)(a) of this section may be satisfied by a written
16 agreement between the holder of a water right held for hydropower purposes
17 and the governor, which agreement has been ratified by the legislature of
18 the state of Idaho. The agreement between the governor and the Idaho Power
19 Company dated October 15, 1984, and ratified by the legislature of the
20 state of Idaho pursuant to section 42-203B, Idaho Code, and the subordina-
21 tion provisions relating to the Idaho Power Company's water rights satisfy
22 subsection (6)(a) of this section.
23 SECTION 4. An emergency existing therefor, which emergency is hereby
24 declared to exist, this act shall be in full force and effect on and after its
25 passage and approval.
STATEMENT OF PURPOSE
RS10362
The purpose of this legislation is to require that on the sale or transfer of electric
utilities the Public Utilities Commission shall enter a finding that the transaction
shall be consistent with the public interest, to require inclusion of the Director of
the Department of Water Resources' condition regarding water rights and to
provide the applicant for the certificate of convenience and necessity shall bear
the burden of showing that the transfer requirements have been satisfied. The bill
would further provide that any authorization or order allowing a transfer of an
electric utility shall only be issued upon conditions required by the Director of the
Department of Water Resources as necessary to prevent a change in use of water
under the hydropower rights that would cause an injury to any water rights
existing on the date of the sale, assignment or transfer, and that the public interest,
as it pertains to hydropower water rights and the use of water under the water
rights, will not be adversely affected.
FISCAL IMPACT
There should be no fiscal impact to this bill.
Contact
Name: Rep. Golden Linford
Rep. Maxine Bell
Phone: 208-332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 815