SF 399

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:12am

A bill for an act
relating to energy; providing for C-BED project contracts; proposing coding for
new law in Minnesota Statutes, chapter 216B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [216B.1613] STANDARD C-BED CONTRACT PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Contracts for smaller C-BED projects. new text end

new text begin (a) The power purchase
price for C-BED projects of five megawatts (MW) or less must be set at the net present
value of last year's Midwest Independent System Operator (MISO) Average Day Ahead
Market Price calculated over a contract period of at least 20 years, utilizing the discount
rate of the purchasing utility.
new text end

new text begin (b) C-BED projects of 5 MW or less must not be aggregated into larger increments
of capacity and still qualify for a power purchase price that is determined by last year's
MISO Average Day Ahead Market Price. To prevent such aggregations, a qualifying
owner of a C-BED project that receives a power purchase price may not participate in the
ownership of more than one qualifying project located within a five-mile radius and that
comes online in the same year.
new text end

new text begin (c) Every C-BED project with a contract for five MW or less shall include a
provision in the contract for payment into a maintenance reserve during the contract period
to ensure the long-term performance of the project. The commission shall standardize by
order the amount required to be put into the maintenance reserve, and all other contract
provisions, within 90 days after the effective date of this section.
new text end

new text begin (d) If a utility doing business in Minnesota and subject to Minnesota law pertaining
to integrated resource planning or renewable energy standards identifies a need for
additional electrical generation capacity in its system, it shall contract with C-BED
projects of five MW or less, until a total of 800 MW of installed capacity under this
provision has been installed statewide.
new text end

new text begin Subd. 2. new text end

new text begin Contracts for larger C-BED projects. new text end

new text begin (a) The power purchase price for
C-BED projects larger than five MW must be negotiated by the project and the purchasing
utility. The commission shall standardize by order all other contract provisions, including
provisions for maintenance reserves, within 90 days after the effective date of this section.
new text end

new text begin (b) If a utility doing business in Minnesota and subject to Minnesota law pertaining to
integrated resource planning or renewable energy standards identifies a need for additional
electrical generation beyond that which can be provided by C-BED projects of five MW or
less, it shall contract with available and competitive C-BED projects that are greater than
five MW before contracting for electrical generation capacity from any other source.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end