The Iowa Utilities Board (IUB) will complete their Fall Customer Service meetings this week. The purpose of the meetings is to discuss various customer service issues that may arise during the provision of electric, gas and telecommunications services and IUB regulations to address those issues. At the meeting, the IUB provided a "Utility Service Questions" brochure which is available on the IUB's website, click here to access the brochure.
The degree to which municipal electric, gas and telecommunications utilities are subject to IUB regulation has been and continues to be the subject of much discussion and some dispute.
The degree to which municipal electric, gas and telecommunications utilities are subject to IUB regulation has been and continues to be the subject of much discussion and some dispute.
For municipal gas and electric utilities, Iowa Code section 476.1B, limits IUB jurisdiction to those specific code sections that are listed - so the jurisdiction is limited unless the Code declares otherwise. It is clear that the IUB has jurisdiction over rules related to disconnection.
In the past year, the IUB has interpreted those disconnection rules to also include deposit amounts and late payment fees. Although IAMU disputed this finding and unsuccessfully attempted to pass legislation last session to declare otherwise, at this time, the fact remains that the IUB has jurisdiction over the amount of the damage deposit and the amount of late payment interest a municipal gas or electric utility can charge a customer.
IUB deposit rules, found at 199 IAC 19.4(2) or 20.4(3) require that the total deposit for any residential or commercial customer shall not be greater than the highest billing of service for one month for the current location for the previous 12-month period. The IUB order finding that the Board had jurisdiction over municipal gas and electric utilities can be found at FCU-2013-0008. Late payment fees are governed by 199 IAC 19.4(11)(b) for gas or 20.4(12)(b) for electric and require that a late payment charge cannot exceed 1.5% per month of the past due amount.
The IUB intends to issue a follow up Order in the Payment Plan Notice of Inquiry - NOI-2014-0003. As part of the first order, the IUB stated that municipal gas and electric utilities were subject to level payment plan rules of the IUB. IAMU will dispute that the IUB has jurisdiction over level payment plans.
For additional information or questions, please contact Julie Smith at jasmithlaw@mchsi.com.
In the past year, the IUB has interpreted those disconnection rules to also include deposit amounts and late payment fees. Although IAMU disputed this finding and unsuccessfully attempted to pass legislation last session to declare otherwise, at this time, the fact remains that the IUB has jurisdiction over the amount of the damage deposit and the amount of late payment interest a municipal gas or electric utility can charge a customer.
IUB deposit rules, found at 199 IAC 19.4(2) or 20.4(3) require that the total deposit for any residential or commercial customer shall not be greater than the highest billing of service for one month for the current location for the previous 12-month period. The IUB order finding that the Board had jurisdiction over municipal gas and electric utilities can be found at FCU-2013-0008. Late payment fees are governed by 199 IAC 19.4(11)(b) for gas or 20.4(12)(b) for electric and require that a late payment charge cannot exceed 1.5% per month of the past due amount.
The IUB intends to issue a follow up Order in the Payment Plan Notice of Inquiry - NOI-2014-0003. As part of the first order, the IUB stated that municipal gas and electric utilities were subject to level payment plan rules of the IUB. IAMU will dispute that the IUB has jurisdiction over level payment plans.
For additional information or questions, please contact Julie Smith at jasmithlaw@mchsi.com.
RSS Feed
