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Electric Franchise Workshop

Electric Franchise Workshop. Des Moines, Iowa February 24, 2009 Donald J. Stursma, P.E. Manager, Safety & Engineering Section IOWA UTILITIES BOARD 515-281-5546 don.stursma@iub.state.ia.us. Background. • Bachelor’s degree in Civil Engineering 1974 (Iowa State)

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Electric Franchise Workshop

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  1. Electric Franchise Workshop Des Moines, Iowa February 24, 2009 Donald J. Stursma, P.E.Manager, Safety & Engineering SectionIOWA UTILITIES BOARD515-281-5546don.stursma@iub.state.ia.us

  2. Background •Bachelor’s degree in Civil Engineering 1974 (Iowa State) •Registered professional engineer •Joined agency in February 1981 as principal gas and water engineer supervising pipeline safety and permit programs •Electric safety and franchise supervision added in 1989 Still here Responsible for administering the IUB electric franchise, electric safety, pipeline permit and pipeline safety programs.

  3. Today’s Topics • When a franchise is required • New Franchises • Amendment of Franchises • Extension of Franchises • Temporary Construction Permits

  4. Laws and Rules • Iowa Code chapter 478, Electric Transmission Lines • Chapter 199 Iowa Administrative Code Chapter 11, Electric Lines (199 IAC Chapter 11) • Chapter 199 Iowa Administrative Code Chapter 25, Iowa Electrical Safety Code • Iowa Code chapters 6A and 6B will also apply to eminent domain matters

  5. When a Franchise is Required 478.1 Franchise. 1. A person shall not construct, erect, maintain, or operate a transmission line, wire, or cable that is capable of operating at an electric voltage of sixty-nine kilovolts or more along, over, or across any public highway or groundsoutside of cities for the transmission, distribution, or sale of electric current without first procuring from the utilities board within the utilities division of the department of commerce a franchise granting authority as provided in this chapter. (Lines operating at 34.5 kV but capable of 69 kV must remain franchised unless permanently retired at less that 69 kV and the Board has been notified. § 478.13(5), 199 IAC 11.3(2)b. (Franchising applies to both overhead and buried electric lines.) (No minimum length specified in the law.)

  6. 478.1 2. A franchise shall not be required for electric lines constructed entirely within the boundaries of property owned by a person primarily engagedin the transmission or distribution of electric power or entirely within the boundaries of property owned by the end user of the electric power. (But passing through or terminating within – the line must be franchised inside those boundaries.)

  7. 478.1 3. If the transmission line, wire, or cable is capable of operating only at an electric voltage of less than sixty-nine kilovolts, no franchise is required. However, the utilities board shall retain jurisdiction over all such lines, wires, or cables. (Board retains safety jurisdiction over electric lines whether franchised or not.)

  8. 478.1 4. A person who seeks to construct, erect, maintain, or operate a transmission line, wire, or cable that will operate at an electric voltage of less than sixty-nine kilovolts outside of cities and that cannot secure the necessary voluntary easements to do so may petition the board pursuant to section 478.3, subsection 1, for a franchise granting authority for such construction, erection, maintenance, or operation, and for the use of the right of eminent domain. (The right of eminent domain can be obtained through a voluntary franchise process.)

  9. New Franchise New line Expired franchise (?) (Cannot extend an expired franchise) No franchise (!) Construction without a franchise, or allowing a franchise to expire, may make the owner subject to show cause proceedings and possible civil penalty. A separate franchise is required for each county in which a line is located. (199 IAC 11.3(4)) A new franchise may be requested to consolidate existing franchises and/or amendments if desired.

  10. Amendments199 IAC 11.3(2)c Replaced the old Certificate system • Increasing operating/capable voltage (above current franchised level) • Adding an additional circuit (not included in current franchise) • Relocation requiring a mile or more of new easement or road/RR right-of-way Not required for work entirely on company or customer property. Not required for roadside relocations required by Iowa Code 318.9(2). Does not apply to extending length of line beyond current ends. Amendment can be sought for lines less than one mile if ED needed.

  11. Extension of Franchise199 IAC 11.3(2)b • Franchises good for no more than 25 years – then must be renewed. § 478.9 • Can ask for extension at any time – must file before franchise expires. 199 IAC 11.3(2)b • Should get extension before franchise expires. • Multiple franchises can be rolled into a single extension – up to all in a county. § 478.13

  12. Temporary Construction Permit (TCP)Iowa Code 478.31, Petition Form • Allows lines up to one mile to be built before franchise is issued • No Eminent Domain • Must be nearest electric utility to proposed point of service • Road or RR permits obtained • Franchise case proceeds as usual • Construction is at your own risk if IUB denies or alters project (Has never happened – but - - )

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