A Road Map to the Franchise Process

1. A Road Map to the Franchise Process Don StursmaManager Safety & Engineering Iowa Utilities Board

2. 0 Or “Driving With Don”

3. The franchise process may seem intimidating at first

4. Process Summary Available The Informational Meeting Presentation handout is an excellent summary of the electric franchise process and procedure, including references to law and rule where appropriate. It is available on the IUB website at http://www.state.ia.us/government/com/util/docs/misc/S_and_E/E_InfoMtg.pdf

5. Law and Regulations • Iowa Code Chapter 478 - When is a franchise needed - Petition requirements - Routing criteria - Decision requirements - Eminent domain • Iowa Administrative Code – 199 IAC Chapter 11 - Filing requirements - Processes - Definitions - Explanations

6. Electric Franchise • Needed for any line capable of operating at 69 kV or more outside of cities - AC or DC, No minimum length - “Capable” based on conductors/insulators/clearances • Process - Informational meeting? - Petition filed (in EFS) - IUB review of petition content - Field inspection - Notice and/or hearing - Decision/franchise issued

7. Law Provides Means to Get Needed Lines Built but also Protects Landowners • Landowner Information and Awareness - Informational meetings – in each county - Notices – published and/or mailed • Landowner Participation - Opportunity for objections - Hearings - in centrally located county • Landowner Protection - Restrictions on routing – prevent interference with land use - Restrictions on eminent domain - Reversion of easements

8. Types of Franchise Actions Abbreviated ?? ?? Amendment Extension New

9. Franchise - New and Amendment • NEW - New project - Lapsed franchise • AMENDMENT - Increasing voltage - Adding another 69+ kV circuit to poles/route - Relocations requiring: + One mile or more of new private ROW + One mile or more of new highway or RR ROW THE PROCESS AND FILING REQUIREMENTS ARE ESSENTIALLY IDENTICAL

10. Route Selection • Routing issues most common cause of franchise denial or court defeat. • Law says (478.18(2)) A transmission line shall be constructed near and parallel to roads, to the right-of-way of the railways of the state, or along the division lines of the lands, according to the government survey, wherever the same is practicable and reasonable, and so as not to interfere with the use by the public of the highways or streams of the state, nor unnecessarily interfere with the use of any lands by the occupant. • IUB Rule 11.1(7), Route Selection, incorporates lessons learned from past court cases. • Law restricts condemnation within 100 feet of homes/buildings (478.20, Rule 11.1(7) ) • Abandoned RR ROW is not a Railway • Lines in both sides of road ROW need specific IUB Authorization (Rule 11.6(1))

11. Informational Meeting • Required in each affected county if more than one mile of private ROW (including overhang) needed • Landowner and published notice required (let us see first?) • Held 30 days – 2 years before filing petition • IUB Staff - Moderates meeting - Presents summary of franchise process and landowner rights • Petitioner - Describes project - Describes ROW needs • Informational meeting error can mean do-over of entire proceeding(Several court challenges) • Coffee and cookies encouraged (No suits?)

12. Petition Filed • Separate petition for each county affected • Petition (and Exhibit C) forms and instructions available on website. http://www.state.ia.us/iub/; Industry Topics; Electric Franchises • Filings made in Electronic Filing System (EFS) • Revised forms in works – seeking comment • Please - Do not change or modify the form - Be realistic on construction date

13. IUB Review - Deficiency Letter • Report of errors/omissions/questions • Filed in EFS (Petitioner notified by EFS) • May be two (one for the filing, one after field insp.) • Corrections/explanations needed for case to proceed • DL process cycles until filing can advance • Watch for same DL comments in different cases (repeated errors)

14. Eminent Domain • Can/should file Exhibit E later in the proceeding (More time for voluntary easements) • Be prepared to show good faith negotiations • IUB can grant petitioner authority to use ED • ED easement acquisition process is at county level (Iowa Code 6A and 6B) • Landowner compensation determined by County Compensation Commission, not IUB • IUB will only will grant rights necessary for the current project and the individual property (478.15) • Defined rights include both purpose and area • Avoid ED if possible (time, cost, public rel.)

15. IUB Field Inspection • Accuracy of petition maps/information • New lines – route, engineering, code compliance issues • Existing lines – condition, code compliance • Objector concerns • Eminent domain parcels

16. Notice • Uncontested Case (No objections, No eminent domain) - IUB provides notice for petitioner to publish (Two times in two weeks on paper located in each county) - Petitioner mails notice to landowners w/o easements - Petitioner files proof of publication from paper - If no objections franchise can issue 20 days after 2nd publ. - If objections filed becomes a contested case • Contested Case (Objections, ED, Other ) - IUB order setting time/date/place of hearing - Petitioner publishes provided notice in local paper/files PoPubl. - IUB-approved notice letter to eminent domain parcel owners and landowners who have not signed easement - Hearing held/decision rendered

17. To Get A Franchise Must Show(Contested or Uncontested) • Legal filing requirements met • Necessary to serve a public use (478.4) • Represents a reasonable relationship to an overall plan of transmitting electricity in the public interest [MISO?/MAPP?] (478.4) • Route acceptable (478.18, 478.20) • Complies with Safety Standards (478.18(a), 478.19, 478.25-28) • Payment of costs (478.4)

18. Appeals(By Petitioner or Opposing Parties) • If the case is heard by an administrative law judge, the decision can be appealed to the Board members • Requests for reconsideration of Board decisions can be filed • Board decisions can be appealed to the courts

19. Temporary Construction Permit • Law (478.31) allows construction to proceed prior to franchise IF: - Less than one mile long - No eminent domain - Highway and RR approvals obtained • Can be requested on petition form (Item V) • Construction is entirely at petitioner risk and may have to be modified or removed depending on final IUB decision.

20. NEW -Early Public Notice • New – see Section VI of proposed Petition form • Allows notice to be published before petition review is complete. • Request by letter (explain why requested) • No eminent domain - Can be objections • Exhibits A (legal description) and B (map) must OK • Franchise can issue when filing completely in order (After notice + 20 days, no objections, etc.) • At petitioner’s risk if things change • Could still be a hearing

21. Abbreviated Process • Applies only to 34.5 kV to 69 kV rebuilds • New law passed in 2009 (SF 279 – New 478.1(5)) • New rules to implement in 199 IAC § 11.1(9), 11.2(3), 11.5(11) • New separate petition form (new franchise and amendments) • To qualify must: - Be on substantially the same ROW (Less than one mile of new private ROW excluding overhang) - Have substantially the same impact on property - No eminent domain • Mailed notice to landowners and other utilities • No informational meeting, no published notice, no hearing • If IUB finds project qualifies, franchise is issued.

22. Extension • Franchises good for 25 years (maybe less) • Must be extended to remain in effect • An expired franchise cannot be extended • Filing should be made 6 months before expiration • No informational meeting • Filing requirements less than for new/amend • County-wide extension of all franchised lines an option • Condition/safety compliance potential factors • Are generally uncontested – but be prepared

23. Field Inspections A good day for a field inspection

24. Access to some areas may be limited

25. Vegetation clearance - Tree on fire due to conductor contact

26. Guy markers not a conspicuous color – safety code violation

27. Pole and guys overgrown with vines – safety/service threat

28. Pole ground damaged, pole damaged

29. Checking line clearance

30. Why post-construction inspections being proposed - Line dead-ends without a terminus

31. QUESTIONS?