Electric Franchise Workshop

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Electric Franchise Workshop

• Des Moines, Iowa
• February 24, 2009
• Donald J. Stursma, P.E.Manager, Safety
  Engineering SectionIOWA UTILITIES
  BOARD515-281-5546don.stursma_at_iub.state.ia.us

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Background

• Bachelors 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.

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Todays Topics

• When a franchise is required
• New Franchises
• Amendment of Franchises
• Extension of Franchises
• Temporary Construction Permits

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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

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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 grounds
  outside 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.)

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478.1 2. A franchise shall not be required for
electric lines constructed entirely within the
boundaries of property owned by a person
primarily engaged in 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.)
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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.)
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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.)  
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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.

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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.

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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

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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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