Engrossed House Bill (S)

Authored by

DIGEST

Infrastructure development zone utility service. Provides that facilities used by a wastewater utility in the collection or treatment of wastewater constitute "eligible infrastructure" for purposes of the law providing a property tax exemption to a person who invests in eligible infrastructure located in an infrastructure development zone. Authorizes a public utility that provides water utility service to petition the utility regulatory commission (commission) for approval of a plan (plan) to develop a future source of water source supply. Requires the commission to approve the plan if the commission finds that the proposed future source of supply is reasonably needed and Infrastructure development zone utility service. Provides that facilities used by a wastewater utility in the collection or treatment of wastewater constitute "eligible infrastructure" for purposes of the law providing a property tax exemption to a person who invests in eligible infrastructure located in an infrastructure development zone. Authorizes a public utility that provides water utility service to petition the utility regulatory commission (commission) for approval of a plan (plan) to develop a future source of water source supply. Requires the commission to approve the plan if the commission finds that the proposed future source of supply is reasonably needed and prudent within the utility's timetable (timetable) for providing reasonably adequate service. Provides that the timetable to place the future source of water supply into service must not exceed 15 years from the date on which the plan is submitted. Provides that after the utility's plan is approved, the commission shall, for ratemaking purposes, add the costs incurred by the utility in developing the future source of water supply to the value of the utility's property even though the source of supply is not yet used and useful in the provision of service. Restricts costs incurred by the utility to the costs presented in the petition for approval of the utility's plan unless the commission finds that the utility's additional costs have been prudently incurred. Provides that a water or wastewater utility that is requested to extend utility service to an infrastructure development zone may petition the commission for approval of the requested extension of service. Provides that, if (1) the utility's petition is approved; (2) the utility does not place the future source of water supply into service by the completion date set forth in the utility's timetable; and (3) the commission does not extend the utility's timetable; the commission (A) shall not, for ratemaking purposes, add the costs incurred by the utility in developing the future source of water supply to the value of the water utility's property; and (B) shall establish a refund procedure to restore credit rates or a rate base to ratepayers for payments that the utility collected for development of the future source of water supply. Provides that, if the utility's petition is approved, the commission shall in future rate cases approve rate schedules that include a surcharge allowing the utility to recover depreciation expense, weighted cost of capital, and federal and state income tax applicable to the extension of service. Urges the legislative council to assign the energy, utilities, and telecommunications committee the topic of lead service improvements by water utilities. ... View more