Opinion ID: 4249577
Heading Depth: 1
Heading Rank: 4

Heading: Applicability of Iowa Code Section 476.43.

Text: We must next determine whether the Board erred in determining section 476.43 did not apply to MidAmerican’s application for advance ratemaking principles. Section 476.43 requires, under certain 20 conditions, that electric utilities not discriminate against alternate energy producers. A. Scope of Review. The resolution of this issue involves the Board’s interpretation of sections 476.43 and 476.44. Accordingly, we will review the interpretation of sections 476.43 and 476.44 for correction of errors at law pursuant to section 17A.19(10)(c). B. Analysis. NextEra argues the Board failed to require MidAmerican to comply with Iowa Code section 476.43. Section 476.43 provides, in relevant part: 1. Subject to section 476.44, the board shall require electric utilities to do both of the following under terms and conditions that the board finds are just and economically reasonable for the electric utilities’ customers, are nondiscriminatory to alternate energy producers and small hydro producers, and will further the policy stated in section 476.41: a. At least one of the following: (1) Own alternate energy production facilities or small hydro facilities located in this state. (2) Enter into long-term contracts to purchase or wheel electricity from alternate energy production facilities or small hydro facilities located in the utility’s service area. b. Provide for the availability of supplemental or backup power to alternate energy production facilities or small hydro facilities on a nondiscriminatory basis and at just and reasonable rates. Iowa Code § 476.43 (emphasis added). The Board found section 476.43 did not apply to this situation because of an exception contained in section 476.44. In particular, the Board relied on the following exception: 2. a. An electric utility subject to this division, except a utility that elects rate regulation pursuant to section 476.1A, shall not be required to own or purchase, at any one time, 21 more than its share of one hundred five megawatts of power from alternative energy production facilities or small hydro facilities at the rates established pursuant to section 476.43. Id. § 476.44(2)(a) (emphasis added). The language of sections 476.43 and 476.44 clearly and unambiguously provide that a utility that owns or purchases, “at any one time, more than its share of one hundred five megawatts of power from alternative energy production facilities” is exempt from the requirements of section 476.43. The record establishes that even without Wind VII, MidAmerican owns 1,284.3 megawatts of wind-powered generation and purchases another 109.1 megawatts of wind power. Accordingly, the Board correctly found that MidAmerican is exempt from the requirements of section 476.43 because it already meets the statutorily required minimum of 105 megawatts.