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H0732aa....................................................by STATE AFFAIRS
ELECTRIC UTILITIES - SALE/TRANSFER - Amends existing law relating to the
sale or transfer of electric utilities to provide legislative intent; to
require a finding that the transaction shall be consistent with and promote
the public interest; to require 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 as required by the director of the Department
of Water Resources as necessary to prevent a change in the use of water
under the hydropower rights that would cause an adverse effect upon any
water rights existing on the date of the transaction and that any such
conditions shall ensure the public interest, as it pertains to the use of
water under the hydropower water rights, will not be adversely affected.
03/10 House intro - 1st rdg - to printing
03/13 Rpt prt - to St Aff
03/15 Rpt out - rec d/p - to 2nd rdg
03/16 2nd rdg - to 3rd rdg
03/20 To Gen Ord
03/21 Rpt out amen - to engros
03/22 Rpt engros - 1st rdg - to 2nd rdg as amen
03/23 2nd rdg - to 3rd rdg as amen
Rules susp - PASSED - 57-11-2
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
Callister, Campbell, Cheirrett, Clark, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
Hammond, Hansen(23), Hansen(29), Hornbeck, Jones, Kellogg, Kendell,
Kunz, Lake, Linford, Mader, Marley, McKague, Meyer, Montgomery,
Mortensen, Moss, Moyle, Pearce, Pischner, Ridinger, Robison,
Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
Stone, Trail, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Barrett, Chase, Henbest, Jaquet, Judd, Loertscher, Pomeroy,
Ringo, Sali, Taylor, Tilman
Absent and excused -- Kempton, Reynolds
Floor Sponsors - Bell, Linford, Stevenson
Title apvd - to Senate
03/24 Senate intro - 1st rdg as amen - to St Aff
03/29 Rpt out - rec d/p - to 2nd rdg as amen
03/30 2nd rdg - to 3rd rdg as amen
04/04 Ret'd to St Aff
H0732
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 732, As Amended
BY STATE AFFAIRS 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 AND PROMOTE THE PUBLIC INTEREST, TO
5 REQUIRE INCLUSION OF THE DIRECTOR OF THE DEPARTMENT OF WATER RESOURCES'
6 CONDITIONS REGARDING WATER RIGHTS AND TO PROVIDE THAT THE APPLICANT SHALL
7 BEAR THE BURDEN OF SHOWING THAT THE TRANSFER REQUIREMENTS HAVE BEEN SATIS-
8 FIED; AMENDING SECTION 42-1701, IDAHO CODE, TO PROVIDE THAT ANY AUTHORIZA-
9 TION OR ORDER OF THE IDAHO PUBLIC UTILITIES COMMISSION, UNDER THE PROVI-
10 SIONS OF THE PUBLIC UTILITIES LAW, APPROVING THE SALE, ASSIGNMENT OR
11 TRANSFER OF WATER RIGHTS USED IN THE GENERATION OF ELECTRIC POWER SHALL BE
12 ISSUED ONLY UPON CONDITIONS REQUIRED BY THE DIRECTOR OF THE DEPARTMENT OF
13 WATER RESOURCES AS NECESSARY TO PREVENT A CHANGE IN THE USE OF WATER UNDER
14 THE HYDROPOWER RIGHTS THAT WOULD CAUSE AN ADVERSE EFFECT UPON ANY WATER
15 RIGHTS EXISTING ON THE DATE OF THE SALE, ASSIGNMENT OR TRANSFER, THAT ANY
16 SUCH CONDITIONS SHALL ENSURE THAT THE PUBLIC INTEREST, AS IT PERTAINS TO
17 THE USE OF WATER UNDER THE HYDROPOWER WATER RIGHTS, WILL NOT BE ADVERSELY
18 AFFECTED AND TO MAKE A TECHNICAL CORRECTION; AND DECLARING AN EMERGENCY.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. LEGISLATIVE INTENT. The Legislature hereby finds and declares
21 that:
22 (1) The protection of customers of public utilities that provide electric
23 energy is a matter of fundamental statewide concern.
24 (2) Any acquisition of a public utility that provides electric energy
25 shall serve the utility's customers in the public interest through some combi-
26 nation of features that could include, but is not limited to, utility service,
27 rates, financial structure, reliability, water rights protection, and valua-
28 tion of the utility's assets. The duration of benefits shall be considered.
29 (3) It is therefore the policy of the state of Idaho to regulate acquisi-
30 tions of public utilities which provide electric energy in a manner that pro-
31 motes the public interest.
32 SECTION 2. That Section 61-328, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 61-328. ELECTRIC UTILITIES -- SALE OF PROPERTY TO BE APPROVED BY COMMIS-
35 SION. (1) No electric public utility or electrical corporation as defined in
36 chapter 1, title 61, Idaho Code, owning, controlling or operating any property
37 located in this state which is used in the generation, transmission, distribu-
38 tion or supply of electric power and energy to the public or any portion
39 thereof, shall merge, sell, lease, assign or transfer, directly or indirectly,
40 in any manner whatsoever, any such property or interest therein, or the opera-
41 tion, management or control thereof, or any certificate of convenience and
42 necessity or franchise covering the same, except when authorized to do so by
2
1 order of the public utilities commission. of the state of Idaho.
2 (2) Such authorization and order The electric public utility or electri-
3 cal corporation shall be issued only following public notice and hearing, upon
4 file a verified application of the parties setting forth such facts as the
5 commission shall prescribe or require., and if tThe commission shall issue a
6 public notice and shall conduct a public hearing upon the application.
7 (3) Before authorizing the transaction, the public utilities commission
8 shall find:
9 (a) Tthat the transaction is consistent with and promotes the public
10 interest; will not be adversely affected,
11 (b) Tthat the cost of and rates for supplying service will not be
12 increased by reason of such transaction,; and
13 (c) Tthat the applicant for such acquisition or transfer has the bona
14 fide intent and financial ability to operate and maintain said property in
15 the public service.; provided, that no such order or authorization shall
16 be issued or granted to any applicant or party coming within the prohibi-
17 tions set forth in this act.
18 The applicant shall bear the burden of showing that standards listed above
19 have been satisfied.
20 (4) The commission shall have power to issue said authorization and order
21 as prayed for, or to refuse to issue the same, or to issue such authorization
22 and order with respect only to a part of the property involved., and The com-
23 mission shall include in any authorization or order the conditions required by
24 the director of the department of water resources under section 42-1701(6),
25 Idaho Code. The commission may attach to its authorization and order such
26 other terms and conditions as in its judgment the public convenience and
27 necessity may require.
28 SECTION 3. That Section 42-1701, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 42-1701. CREATION OF DEPARTMENT OF WATER RESOURCES -- DIRECTOR -- QUALI-
31 FICATIONS -- DUTIES. (1) There is hereby created the department of water
32 resources, which shall, for the purposes of section 20, article IV, of the
33 Cconstitution of the state of Idaho, be an executive department of the state
34 government.
35 (2) The executive and administrative authority of the department, except
36 such authority as is specifically assigned by law to the water resource board,
37 shall be vested in a director of the department of water resources who shall
38 be a licensed civil or hydraulic engineer, and shall have had not less than
39 five (5) years' experience in the active practice of such profession, and
40 shall be familiar with irrigation in Idaho.
41 (3) The director may delegate such duties as are imposed upon him by law
42 to an employee of the department of water resources whenever in the opinion of
43 the director, such delegation is necessary for the efficient administration of
44 his duties.
45 (4) The director shall organize the department into such divisions and
46 other administrative sub-units as may be necessary in order to efficiently
47 administer the department. All employees of the department, except the direc-
48 tor, shall be selected and appointed by the director in conformance with the
49 provisions of chapter 53, title 67, Idaho Code.
50 (5) The director and/or employees of the department of water resources
51 may make reasonable entry upon any lands in the state for the purpose of mak-
52 ing investigations and surveys, or for other purposes necessary to carry out
53 the duties imposed by law.
3
1 (6) Any authorization or order of the Idaho public utilities commission,
2 under the provisions of section 61-328, Idaho Code, approving the sale,
3 assignment or transfer of hydropower water rights used in the generation of
4 electric power shall be issued only upon such conditions as the director of
5 the department of water resources shall require as are necessary to prevent
6 any change in the use of water under the hydropower water rights that would
7 cause an adverse effect upon any water rights existing on the date of the
8 sale, assignment or transfer. Any such conditions shall ensure that the public
9 interest, as it pertains to the use of water under the hydropower water
10 rights, will not be adversely affected.
11 SECTION 4. An emergency existing therefor, which emergency is hereby
12 declared to exist, this act shall be in full force and effect on and after its
13 passage and approval.
AH0732
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Linford
Seconded by Stevenson
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 732
1 AMENDMENTS TO SECTION 3
2 On page 3 of the printed bill, in line 6, delete "historic"; in line 8,
3 delete ", and that would ensure" and insert: ". Any such conditions shall
4 ensure that"; in line 9, delete "the hydropower water rights and"; and in line
5 10, following "the" insert: "hydropower water".
6 CORRECTION TO TITLE
7 On page 1, in line 13, delete "HISTORIC"; in line 16, delete "AND" and
8 insert: "THAT ANY SUCH CONDITIONS SHALL ENSURE", and also in line 16, delete
9 "HYDROPOWER WATER"; in line 17, delete " RIGHTS AND", and also in line 17,
10 following "UNDER THE" insert: "HYDROPOWER".
STATEMENT OF PURPOSE
RS 10250
The purpose of this legislation is to require on -the sale or transfer of
electric utilities, that the Public Commission shall enter a finding that the
transaction shall be consistent with and promote 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 the historic use of water under the hydropower
rights would cause an adverse effect upon 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: Senator Robert Lee
Representative Maxine Bell
Phone: (208)332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 732