House File 662       


                                          HOUSE FILE       
                                          BY  GASKILL


       Passed House, Date                Passed Senate,  Date             
       Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                    Approved                            

                                         A BILL FOR

     1 An Act relating to the termination of a franchise agreement
     2    granted by a city to a rate=regulated electric utility.
     3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
     4 TLSB 2993YH 81
     5 kk/sh/8

PAG LIN



  1  1    Section 1.  Section 364.2, subsection 4, Code 2005, is
  1  2 amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  h.  A city may terminate a franchise
  1  4 granted to a rate=regulated electric utility which has
  1  5 increased rates for electric service by fifteen percent or
  1  6 more than the average rate increase implemented by all other
  1  7 rate=regulated electric utilities providing service in this
  1  8 state.  To terminate a franchise pursuant to this paragraph,
  1  9 the city shall provide written notice to the rate=regulated
  1 10 electric utility of the city's intent to terminate the
  1 11 franchise at least one year prior to the date of termination
  1 12 of the franchise.
  1 13                           EXPLANATION
  1 14    This bill relates to the termination of a franchise
  1 15 agreement granted by a city to a rate=regulated electric
  1 16 utility.  The bill provides that a city may terminate the
  1 17 franchise agreement of a rate=regulated electric utility which
  1 18 has increased its rates for electric service by an amount
  1 19 equal to 15 percent or more of the average rate increase
  1 20 implemented by all other rate=regulated electric utilities
  1 21 providing service in this state.  A city may terminate a
  1 22 franchise after providing written notice to the rate=regulated
  1 23 electric utility at least one year prior to termination.
  1 24 LSB 2993YH 81
  1 25 kk:nh/sh/8