Iowa Admin. Code r. 199-26.16 - Rate regulation election-electric cooperative corporations and associations
(1)
Application of rules. Electric cooperative corporations and
associations shall not be subject to the jurisdiction of the commission except
as provided in Iowa Code section 476.1A and this chapter.
a.
Procedure for election by
members. Upon petition of not less than 10 percent of the members of
an electric cooperative or upon its own motion, the board of directors of an
electric cooperative shall order a referendum election to be held to determine
whether the electric cooperative shall be subject to the jurisdiction of the
commission. A petition for election shall be completed within 60 days of
commencement.
(1) Any member of an electric
cooperative desiring a referendum election shall sign a petition for election
addressed to the board of directors of an electric cooperative, in
substantially the following form:
PETITION FOR ELECTION
TO: (Board of Directors of subject electric cooperative)
The undersigned members request you call an election to submit to the members the following proposition:
Shall . . . (name of the electric cooperative) be subject to rate regulation by the Iowa Utilities Commission?
Signature Address Date
(2) Where signatures are made on more than
one sheet, each sheet of the petition shall reproduce above the signatures the
same matter as is on the first sheet. Each petitioner shall sign the
petitioner's name in the petitioner's own handwriting and shall write the
petitioner's address and the date on which the petitioner signed.
(3) The petition shall be filed with the
board of directors of the electric cooperative and an election shall be held
not less than 60 days nor more than 90 days from the date on which the petition
was filed.
(4) On the election
date, the board of directors of the electric cooperative shall mail by
first-class mail to each member of the electric cooperative a ballot containing
the following language:
Shall . . . (name of the electric cooperative) be subject to rate regulation by the Iowa Utilities Commission? Yes/No.
(5) The ballot shall also contain a
self-addressed envelope to return the ballot to the secretary of the board of
directors of the electric cooperative. The ballot shall be dated when received
by the secretary. The ballot must be received by the secretary not more than 30
days after it was mailed to the members. The election procedure shall require a
signature form for verification, but shall not allow the signature to be traced
to the vote of a particular member.
(6) The issue in the election shall be
decided by a majority of the members voting, whose ballots are received by the
secretary. Fifty-one percent of the membership shall constitute a quorum for
the election. The secretary shall certify the results of the election and file
the results with the commission within 30 days of the election.
b.
Procedure for election
by commission. Upon the resolution of a majority of the board of
directors of an electric cooperative, the board of directors may elect to be
subject to the jurisdiction of the utilities commission. The secretary of the
board of directors of the electric cooperative shall file a certified copy of
the resolution with the board of directors within 30 days of the adoption of
the resolution.
c.
Effective date. Upon the resolution of a majority of the board of
directors of an electric cooperative or when a majority of the members voting
vote to place the cooperative under the jurisdiction of the commission, the
utilities commission shall determine an effective date of its jurisdiction,
which shall be not more than 90 days from the election. On and after the
effective date of jurisdiction, the cooperative shall be subject to regulation
by the utilities commission.
d.
Prohibited acts. Funds of an electric cooperative shall not be
used to support or oppose the issue presented in the election. Nothing shall
prohibit a letter of explanation and direction from being enclosed with the
ballot.
e.
Procedure for
exemption. After the cooperative has been under the jurisdiction of
the commission for two years, the members or the board of directors of the
electric cooperative may elect to remove the cooperative from under the
jurisdiction of the commission as allowed by Iowa Code section 476.1A(4). If
the membership elected to have the cooperative's rates regulated by the
commission, only the membership may elect to exempt the cooperative from the
rate regulation authority of the commission.
f.
Frequency of election. An
electric cooperative shall not conduct more than one election pursuant to this
subrule within a two-year period.
(2)
Rate increase requirements-rural
electric cooperatives. The commission's consideration of the fair and
reasonable level of rates necessary for rural electric cooperatives that have
elected to be subject to rate regulation by the commission shall include the
following:
a. Minimum filing requirements. An
electric cooperative subject to rate regulation proposing changes in tariffs or
rates which relate to a general increase in revenue shall prepare and file with
its proposed tariff evidence in the form of testimony and exhibits.
b. Factors relating to value. A statement
showing the original cost of the items of plant and facilities, for the
beginning and end of the last available calendar year, and any other factors
relating to the value of the items of plant and facilities the utility deems
pertinent to the commission's consideration, together with information setting
forth budgeting accounts for the construction of scheduled
improvements.
c. Comparative
operating data. Information covering the test year.
(1) Operating revenue and expenses by primary
account.
(2) Balance sheet at
beginning and end of test year.
d. Test year and pro forma income statements.
Information setting forth revenues, expenses, net operating income of the last
available calendar year, the adjustment of unusual items, and by adjustment to
reflect operations for a full year under existing and proposed rates. The
format of the information to be filed is available on the commission's website
at iuc.iowa.gov.
e. After investigation of the historic test
year results and pro forma adjustments thereto, the commission shall determine
the extent to which the applicant has met the following conditions:
(1) Revenues are sufficient for a times
interest earned ratio between 1.5 and 3.0 for coverage of interest on
outstanding utility short-term and long-term debt; or
(2) Revenues are sufficient for a debt
service coverage ratio between 1.25 and 2.5 on utility long-term debt;
or
(3) Utility operating margins
are sufficient for a ratio between 1.5 and 2.5 of utility operating margins to
interest on utility short-term and long-term debt; or
(4) Utility operating margins are sufficient
for a ratio between 1.25 and 1.75 of utility operating margins plus utility
depreciation, all divided by utility long-term interest plus principal;
and
(5) Utility operating margins
are sufficient to return utility patronage capital credits accumulated from
utility operating margins, with a retention of such credits of no more than 20
years allowed, subject to modification where compelling circumstances require
time period adjustments.
f. In addition to the information in subrule
26.12(2), evidence of the necessity for the requested rate relief may include,
but need not be limited to, utility operating margins which will enable the
cooperative to attain and maintain a reasonable ratio of utility long-term debt
to retained utility operating margins. The cooperative's authorized
construction program and an official policy statement of the cooperative's
board of directors on a desired ratio will be considered factors in the
determination of the reasonableness of any such ratio.
g. The commission's initial decision will
become final 15 days following its date of issuance; however, if filed within
that 15-day period, allegations of error by the cooperative or any intervenor
as to the commission's findings of fact, together with a statement of readiness
to present testimony, will serve to hold final disposition in abeyance pending
the scheduling and completion of an evidentiary hearing. When such allegation
is made, testimony in support of such position must be filed within 30 days of
such filing. Upon receipt of the testimony, the commission will schedule
additional filing dates and set the matter for hearing. When a hearing is
scheduled, final disposition of the rate proceeding will be accomplished under
the contested case provisions of Iowa Code chapter 17A and the commission's
rules and regulations thereunder.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.