2000 Legislation
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HOUSE BILL NO. 732, As Amended – Electric utilities, sale/transfer

HOUSE BILL NO. 732, As Amended

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Daily Data Tracking History



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

Bill Text


 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.

Amendment


 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 / Fiscal Impact


                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