Opinion ID: 2207303
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Heading: Collection of Interim Rates.

Text: On May 1, 1986, Interstate filed the electric rate increase application, docketed as RPU-86-8, which is the subject of the present case. It also filed an application for interim rate relief, requesting authority to implement interim rates at an increased level above the existing rates during the pendency of the rate-increase proceedings. On July 24, 1986, the board entered an order denying Interstate the increased interim rates, resulting in the continuation of the level of rates then being collected. Interstate filed a motion for stay in the district court, seeking an order allowing it to continue to collect, during the pendency of the judicial review proceedings, rates at the annual level which had been established earlier on Interstate's application for interim rate allowance. The district court granted Interstate's motion for stay thereby allowing it to continue to collect the existing rates, under bond and subject to refund. OCA argues that the effect of the board's order denying Interstate's application for increased interim rates was to not set any rates at all. The board simply denied the increase requested by Interstate. The clear import of the order, however, is to permit the existing rates under the prior board order to remain in effect. This issue turns on the application of Iowa Code section 476.13(3), which provides: Notwithstanding the Iowa administrative procedure Act, if a public utility seeks judicial review of an order approving rates for the public utility, the level of rates that may be collected, under bond and subject to refund, while the appeal is pending shall be limited to the level of the temporary rates set by the board, or the level of the final rates set by the board, whichever is greater. During the period the judicial review proceeding is pending, the board shall retain jurisdiction to determine the rate of interest to be paid on any refunds eventually required on rates collected during judicial review. We have held that the legislature intended utilities to not have judicial review of temporary rates. Northwestern Bell Tel. Co. v. Iowa State Commerce Comm'n, 359 N.W.2d 491, 496 (Iowa 1984). We stated, [i]f instead the utility could obtain judicial review of temporary rates and obtain its desired rates from courts, as in this case, its motivation to seek permanent rates would be dulled and fulfillment of the legislative scheme would be hampered. Id. Additionally, only the board, not the court, has the power to fix rates. Davenport Water Co. v. Iowa State Commerce Comm'n, 190 N.W.2d at 592. The district court, on a motion for consolidation and a motion to stay final order, held that the 1983 interim rates were still in effect because the 1983 rate case was still on appeal and a stay had been granted on the 1983 final order. Thus, the interim rate for the 1986 rate case was the 1983 interim rate. The district court stated: The court has read over the Order Setting Interim Rates issued July 24, 1986. That Order reflects that the board did not set new interim rates because the level of adjusted test year revenues then being collected by interstate pursuant to interim rates placed in effect in a prior rate proceeding, Docket No. RPU-83-27, and continued in effect pursuant to a Court-ordered stay upon appeal therefrom, was greater than the level of interim rates which the board determined it would otherwise allow. The board went through the process of deciding what interim rates would be, but did not set new interim rates because the existing interim rate level was greater than the revenue requirement it found. (Emphasis added.) Thus, Interstate did not seek judicial review of the interim order to rewrite it or to fix a different level of rate. The board set the 1986 interim rate which happened to be the 1983 interim rate. The district court only granted Interstate's request to continue to collect at this rate, and in doing so, did not act beyond its authority. In addition, Interstate has agreed to refund excess funds collected pursuant to this stay if it loses the appeal of the final order setting final rates to the 1986 case. Thus, the consumers are in no danger of being shortchanged. We find no error in the district court's disposition of the interim rate issue. We find no error in these proceedings and therefore affirm. AFFIRMED. All justices concur except CARTER, J., who takes no part.