(1)
Procurement plan. Pursuant to Iowa Code section
476.6(12),
the board shall periodically conduct a contested case proceeding for the
purpose of evaluating the reasonableness and prudence of a rate-regulated
public utility's practices related to procurement of and contracting for fuel
used in generating electricity. When it determines to conduct a contested case
proceeding, the board shall notify a rate-regulated utility that it will be
required to file an electric fuel procurement plan. The notification to the
utility shall include a detailed list of what the board will be examining as
part of the review. The utility shall file its plan no later than 105 days
after notification unless otherwise directed by the board. A utility's
procurement plan shall be organized to include information as follows:
a.
Index. The plan shall
include an index of all documents and information required to be filed in the
plan, and the identification of the board files in which the documents
incorporated by reference are located.
b.
Purchase contracts and
arrangements. A utility's procurement plan shall include detailed
summaries of the following types of contracts and agreements executed since the
last procurement review:
(1) All contracts and
fuel supply arrangements for obtaining fuel for use by any unit in
generation;
(2) All contracts and
arrangements for transporting fuel from point of production to the site where
placed in inventory, including any unit generating electricity for the
utility;
(3) All contracts and
arrangements for purchasing or selling allowances;
(4) Purchased power contracts or
arrangements, including sale-of-capacity contracts, involving over 25 MW of
capacity;
(5) Pool interchange
agreements;
(6) Multiutility
transmission line interchange agreements; and
(7) Interchange agreements between
investor-owned utilities, generation and transmission cooperatives, or both,
not required to be filed above, which were entered into or in effect since the
last filing, and all such contracts or arrangements which will be entered into
or exercised by the utility during the prospective 12-month period.
All procurement plans filed by a utility shall include all of
the types of contracts and arrangements listed in subparagraphs (1) and (2) of
this paragraph which will be entered into or exercised by the utility during
the prospective 12-month period. In addition, the utility shall file an updated
list of contracts that are or will become subject to renegotiation, extension,
or termination within five years. The utility shall also update any price
adjustment affecting any of the filed contracts or arrangements.
c.
Other
contract offers. The procurement plan shall include a list and
description of those types of contracts and arrangements listed in paragraph
20.13(1)"b " offered to the utility since the last filing into
which the utility did not enter. In addition, the procurement plan shall
include a list of those types of contracts and arrangements listed in paragraph
20.13(1)"b " which were offered to the utility for the
prospective 12-month period and into which the utility did not enter.
d.
Studies or investigation
reports. The procurement plans shall include all studies or
investigation reports which have been considered by the utility in deciding
whether to enter into any of those types of contracts or arrangements listed in
paragraphs 20.13(1)"b " and"c " which will be
exercised or entered into during the prospective 12-month period.
e.
Price hedge
justification. The procurement plan shall justify purchasing allowance
futures contracts as a hedge against future price changes in the market rather
than for speculation.
f.
Actual and projected costs. The procurement plan shall include
an accounting of the actual costs incurred in the purchase and transportation
of fuel and the purchase of allowances for use in generating electricity
associated with each contract or arrangement filed in accordance with paragraph
20.13(1)
"b " for the previous 12-month period.
The procurement plan also shall include an accounting of all
costs projected to be incurred by the utility in the purchase and
transportation of fuel and the purchase of allowances for use in generating
electricity associated with each contract or arrangement filed in accordance
with paragraph 20.13(1)"b " in the prospective 12-month
period.
If applicable, the reporting of transportation costs in the
procurement plan shall include all known liabilities, including all unit train
costs.
g.
Costs
directly related to the purchase of fuel. The utility shall provide a
list and description of all other costs directly related to the purchase of
fuels for use in generating electricity not required to be reported by
paragraph"f "
h.
Compliance plans. Each utility shall file its emissions
compliance plan as submitted to the EPA. Revisions to the compliance plan shall
be filed with each subsequent procurement plan.
i.
Evidence submitted. Each
utility shall submit all factual evidence and written argument in support of
its evaluation of the reasonableness and prudence of the utility's procurement
practice decisions in the manner described in its procurement plan. The utility
shall file data sufficient to forecast fuel consumption at each generating unit
or power plant for the prospective 12-month period. The board may require the
submission of machine-readable data for selected computer codes or
models.
j.
Additional
information. Each utility shall file additional information as ordered
by the board.