ARC 7112C

ARC 7112C

UTILITIES DIVISION[199]

Notice of Intended Action

Proposing rulemaking related to nonutility service

and providing an opportunity for public comment

The Utilities Board hereby proposes to rescind Chapter 34, "Nonutility Service," Iowa Administrative Code, and to adopt a new chapter with the same title.

Legal Authority for Rulemaking

This rulemaking is proposed under the authority provided in Iowa Code section 476.2.

State or Federal Law Implemented

This rulemaking implements, in whole or in part, Iowa Code sections 476.78, 476.80 and 476.81.

Purpose and Summary

Chapter 34 is intended to provide for rate-regulated utilities offering nonutility services to allow access to certain utility information when a competitor requests that information, provided certain requirements are met. The Board is proposing to rescind and repromulgate Chapter 34 because its provisions contain duplicative language contained in the Iowa Code and other portions of the Iowa Administrative Code. Chapter 34 also contains unnecessary and restrictive language the Board is proposing to reduce.

Fiscal Impact

This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

No waiver provision is included in the proposed amendments because the Board has a general waiver provision in rule 199—1.3(17A,474,476) that provides procedures for requesting a waiver of the rules in Chapter 34.

Public Comment

Any interested person may submit written comments concerning this proposed rulemaking. Written comments in response to this rulemaking must be received by the Board no later than 4:30 p.m. on January 23, 2024. Comments should be directed to:

Public Hearing

Oral presentations at which persons may present their views orally or in writing will be held as follows:

Persons who wish to make oral comments at an oral presentation may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

Any persons who intend to attend an oral presentation and have special requirements, such as those related to hearing or mobility impairments, should contact the Board and advise of specific needs.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rulemaking action is proposed:

Item 1. Rescind 199—Chapter 34 and adopt the following new chapter in lieu thereof:

CHAPTER 34

NONUTILITY SERVICE

199—34.1(476) Statement of purpose. A public utility that engages in a systematic marketing effort, other than on an incidental or casual basis, to promote the availability of a nonutility service from the public utility shall allow competitors access to certain services.

199—34.2(476) Definitions.

"Engaged primarily in providing the same competitive nonutility services in the area" means that a person, on an ongoing basis, sells or leases equipment or products or offers services, accounting for at least 60 percent of the person's gross business revenue, which are functionally interchangeable with and considered similar by the public to the nonutility service provided by a public utility in the same identifiable geographic area where the public utility provides utility service.

"Systematic marketing effort, other than on an incidental or casual basis" means an effort determined by the board to be recurring, active in nature, and done on a comprehensive basis. Factors to be considered include, but are not limited to, the types and number of media used; the frequency, extent, and duration of the marketing effort; the amount of marketing expenses incurred; and whether the public utility appeared to intend to increase significantly its market share.

199—34.3(476) Charges permitted. A person meeting the definition of "engaged primarily in providing the same competitive nonutility services in the area" in rule 199—34.2(476) is permitted to use, to the same extent utilized by the public utility for its nonutility service in connection with nonutility services, the customer lists, billing and collection system, and mailing system of the public utility company engaged in a systematic marketing effort, other than on an incidental or casual basis. The person will be charged for the cost or expense incurred by the public utility in providing access to its systems and its lists, and the cost or expense will not be greater than the charge, fee, or cost imposed upon or allocated to the provision of nonutility service by the utility for the similar use of the systems.

199—34.4(476) Procedures for utilization of billing and collection system.

34.4(1) When a person meeting the definition of "engaged primarily in providing the same competitive nonutility services in the area" in rule 199—34.2(476) uses the billing and collection system of a public utility, the public utility shall promptly remit to that person all funds collected by the public utility on behalf of the person.

34.4(2) Where a customer makes a partial payment and owes both a public utility and a person(s) meeting the definition of "engaged primarily in providing the same competitive nonutility services in the area" in rule 199—34.2(476) for services or goods provided, the payment received is allocated first to the regulated utility bill plus tax, unless otherwise allocated by the customer. Any balance remaining after payment of the utility bill plus tax is allocated between the public utility for any unpaid nonutility services and any other person(s) utilizing the utility's billing system according to the ratio of the amount billed by each unless otherwise allocated by the customer. A public utility shall not disconnect a customer's utility service for nonpayment of a bill for nonutility services.

A person shall not use a public utility's billing and collection system to bill and receive payments only from customers who are habitually delinquent or who have failed or refused to make payment to the person.

These rules are intended to implement Iowa Code sections 476.78, 476.80, and 476.81.