2000 Legislation
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HOUSE BILL NO. 815 – Electric utilities, sale

HOUSE BILL NO. 815

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Daily Data Tracking History



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

Bill Text


 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 / Fiscal Impact


     
                 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