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HF 789

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:41am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to utilities; modifying provisions relating to deadline for rate
determination by Public Utilities Commission; making clarifying correction;
amending Minnesota Statutes 2008, section 216B.16, subdivisions 2, 7b.

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

Section 1.

Minnesota Statutes 2008, section 216B.16, subdivision 2, is amended to read:


Subd. 2.

Suspension of proposed rate; hearing; final determination defined.

(a)
Whenever there is filed with the commission a schedule modifying or resulting in a change
in any rates then in force as provided in subdivision 1, the commission may suspend the
operation of the schedule by filing with the schedule of rates and delivering to the affected
utility a statement in writing of its reasons for the suspension at any time before the rates
become effective. The suspension shall not be for a longer period than ten months beyond
the initial filing date except as provided in this subdivision or subdivision 1a.

(b) During the suspension the commission shall determine whether all questions of
the reasonableness of the rates requested raised by persons deemed interested or by the
department can be resolved to the satisfaction of the commission. If the commission
finds that all significant issues raised have not been resolved to its satisfaction, or upon
petition by ten percent of the affected customers or 250 affected customers, whichever is
less, it shall refer the matter to the Office of Administrative Hearings with instructions
for a public hearing as a contested case pursuant to chapter 14, except as otherwise
provided in this section.

(c) The commission may order that the issues presented by the proposed rate
changes be bifurcated into two separate hearings as follows: (1) determination of the
utility's revenue requirements and (2) determination of the rate design. Upon issuance of
both administrative law judge reports, the issues shall again be joined for consideration
and final determination by the commission.

(d) All prehearing discovery activities of state agency intervenors shall be
consolidated and conducted by the Department of Commerce.

(e) If the commission does not make a final determination concerning a schedule of
rates within ten months after the initial filing date, the schedule shall be deemed to have
been approved by the commission; except if:

(1) an extension of the procedural schedule has been granted under new text begin paragraph (f) or
new text end subdivision 1a, in which case the schedule of rates is deemed to have been approved by
the commission on the last day of the extended period of suspension; or

(2) a settlement has been submitted to and rejected by the commission and the
commission does not make a final determination concerning the schedule of rates, the
schedule of rates is deemed to have been approved 60 days after the initial or, if applicable,
the extended period of suspension.

(f) If the commission finds that it has insufficient time during the suspension period
to make a final determination of a case involving changes in general rates because of the
need to make a final determination of deleted text begin another previously fileddeleted text end new text begin any pending new text end case involving
changes in general rates under this section or section 237.075, the commission may extend
the suspension period deleted text begin to the extent necessarydeleted text end new text begin up to an additional 90 daysnew text end to deleted text begin allow itself 20
working days to
deleted text end make the final determination deleted text begin after it has made a final determination in the
previously filed case
deleted text end . An extension of the suspension period under this paragraph does
not alter the setting of interim rates under subdivision 3.

(g) For the purposes of this section, "final determination" means the initial decision
of the commission and not any order which may be entered by the commission in response
to a petition for rehearing or other further relief. The commission may further suspend
rates until it determines all those petitions.

Sec. 2.

Minnesota Statutes 2008, section 216B.16, subdivision 7b, is amended to read:


Subd. 7b.

Transmission cost adjustment.

(a) Notwithstanding any other provision
of this chapter, the commission may approve a tariff mechanism for the automatic annual
adjustment of charges for the Minnesota jurisdictional costs of (i) new transmission
facilities that have been separately filed and reviewed and approved by the commission
under section 216B.243 new text begin or new text end are certified as a priority project or deemed to be a priority
transmission project under section 216B.2425; and (ii) charges incurred by a utility that
accrue from other transmission owners' regionally planned transmission projects that have
been determined by the Midwest Independent System Operator to benefit the utility, as
provided for under a federally approved tariff.

(b) Upon filing by a public utility or utilities providing transmission service, the
commission may approve, reject, or modify, after notice and comment, a tariff that:

(1) allows the utility to recover on a timely basis the costs net of revenues of
facilities approved under section 216B.243 or certified or deemed to be certified under
section 216B.2425 or exempt from the requirements of section 216B.243;

(2) allows the charges incurred by a utility that accrue from other transmission
owners' regionally planned transmission projects that have been determined by the
Midwest Independent System Operator to benefit the utility, as provided for under a
federally approved tariff. These charges must be reduced or offset by revenues received
by the utility and by amounts the utility charges to other regional transmission owners, to
the extent those revenues and charges have not been otherwise offset;

(3) allows a return on investment at the level approved in the utility's last general
rate case, unless a different return is found to be consistent with the public interest;

(4) provides a current return on construction work in progress, provided that
recovery from Minnesota retail customers for the allowance for funds used during
construction is not sought through any other mechanism;

(5) allows for recovery of other expenses if shown to promote a least-cost project
option or is otherwise in the public interest;

(6) allocates project costs appropriately between wholesale and retail customers;

(7) provides a mechanism for recovery above cost, if necessary to improve the
overall economics of the project or projects or is otherwise in the public interest; and

(8) terminates recovery once costs have been fully recovered or have otherwise
been reflected in the utility's general rates.

(c) A public utility may file annual rate adjustments to be applied to customer bills
paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:

(1) a description of and context for the facilities included for recovery;

(2) a schedule for implementation of applicable projects;

(3) the utility's costs for these projects;

(4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
the project; and

(5) calculations to establish that the rate adjustment is consistent with the terms
of the tariff established in paragraph (b).

(d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
paragraph (b), the commission shall approve the annual rate adjustments provided that,
after notice and comment, the costs included for recovery through the tariff were or are
expected to be prudently incurred and achieve transmission system improvements at the
lowest feasible and prudent cost to ratepayers.