§ 476.25 — Assigned service areas — electric utilities — legislative policy

Iowa § 476.25

• Jurisdiction: Iowa
• Title XI: NATURAL RESOURCES
• Ch. 476: PUBLIC UTILITY REGULATION

Text

It is declared to be in the public interest to encourage the development of coordinated
statewide electric service at retail, to eliminate or avoid unnecessary duplication of electric
utility facilities, and to promote economical, efficient, and adequate electric service to the
public. In order to effect that public interest, the commission may establish service areas
within which specified electric utilities shall provide electric service to customers on an
exclusive basis. Except for good cause expressed through formal public statement, the
commission shall establish these exclusive service areas on or before July 1, 1979. These
exclusive service area boundaries shall be established by the commission upon the following
basis:
1. The service area boundaries shall be in a line approximately equidistant between
the electric distribution lines of adjacent electric utilities as they existed on January 1,
1976, and as shown by the maps filed in accordance with this subchapter. However, those
boundaries may be modified by the commission to promote the public interest, to preserve
existing service areas and electric utilities’ rights to serve existing customers, and to prevent
unnecessary duplication of facilities, to take account of natural and physical barriers which
would make electric service beyond these barriers uneconomic and impractical and those
boundaries shall be modified by the commission to take account of the contracts between
electric utilities which have been approved by the commission pursuant to subsection
2 of this section. When an electric utility’s exclusive service area is established by the

commission to include existing customers presently served by the facilities of another
electric utility, unless a voluntary exchange of facilities is agreed upon by the electric utilities
involved and approved by the commission, the commission after notice and opportunity for
hearing, shall require the purchase of those facilities presently serving these customers at a
reasonable price to be determined by the commission. The commission, on its own motion
or at the request of an electric utility or municipal corporation, after notice and opportunity
for hearing, may modify the boundaries of an electric utility exclusive service area which it
has previously established if this modification, including consideration of the factors noted
in this subsection, is found to be in the public interest.
2. Contracts between electric utilities to designate service areas and customers to be
served by the electric utilities or for the exchange of customers between electric utilities,
when approved by the commission, shall be valid and enforceable and shall be incorporated
into the appropriate exclusive service areas established pursuant to subsection 1 of this
section. The commission shall approve a contract if it finds that the contract will eliminate or
avoid unnecessary duplication of facilities, will provide adequate electric service to all areas
and customers affected, will promote the efficient and economical use and development of
the electric systems of the contracting electric utilities, and is in the public interest.
3. An electric utility shall not serve or offer to serve electric customers in an exclusive
service area assigned to another electric utility, nor shall an electric utility construct facilities
to serve electric customers in an exclusive service area assigned to another electric utility.
The state, an electric utility, or any other person who is injured or threatened with injury
by conduct prohibited by this section may initiate a contested case proceeding with the
commission under chapter 17A. Upon finding a violation of this section the commission
shall order appropriate corrective action including discontinuance of the unlawful service
to electric customers, removal of the unlawful facility, or other disposition the commission
deems just and reasonable.

Legislative History

[C77, 79, 81, §476.25]