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HF 1226

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/18/2021 03:26pm

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

Current Version - as introduced

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A bill for an act
relating to energy; eliminating the renewable qualifying facility avoided cost
pricing requirement; amending Minnesota Statutes 2020, section 216B.164,
subdivision 4.

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

Section 1.

Minnesota Statutes 2020, section 216B.164, subdivision 4, is amended to read:


Subd. 4.

Purchases; wheeling; costs.

(a) Except as otherwise provided in paragraph
(c), this subdivision shall apply to all qualifying facilities having 40-kilowatt capacity or
more as well as qualifying facilities as defined in subdivision 3 and net metered facilities
under subdivision 3a, if interconnected to a cooperative electric association or municipal
utility, or 1,000-kilowatt capacity or more if interconnected to a public utility, which elect
to be governed by its provisions.

(b) The utility to which the qualifying facility is interconnected shall purchase all energy
and capacity made available by the qualifying facility. The qualifying facility shall be paid
the utility's full avoided capacity and energy costs as negotiated by the parties, as set by the
commission, or as determined through competitive bidding approved by the commission.
deleted text begin The full avoided capacity and energy costs to be paid a qualifying facility that generates
electric power by means of a renewable energy source are the utility's least cost renewable
energy facility or the bid of a competing supplier of a least cost renewable energy facility,
whichever is lower, unless the commission's resource plan order, under section 216B.2422,
subdivision 2
, provides that the use of a renewable resource to meet the identified capacity
need is not in the public interest.
deleted text end

(c) For all qualifying facilities having 30-kilowatt capacity or more, the utility shall, at
the qualifying facility's or the utility's request, provide wheeling or exchange agreements
wherever practicable to sell the qualifying facility's output to any other Minnesota utility
having generation expansion anticipated or planned for the ensuing ten years. The
commission shall establish the methods and procedures to insure that except for reasonable
wheeling charges and line losses, the qualifying facility receives the full avoided energy
and capacity costs of the utility ultimately receiving the output.

(d) The commission shall set rates for electricity generated by renewable energy.