Iowa Administrative Code › Agency 199 - Utilities Division › Utilities and Transportation Divisions › Chapter 20 - Service Supplied by Rate-regulated Electric Utilities › Rule 199-20.13 - Periodic Electric Energy Supply and Cost Review [476.6 (16) ]

Current through Register Vol. 47, No. 3, July 24, 2024
(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.