HF 1309

as introduced - 90th Legislature (2017 - 2018) Posted on 03/07/2017 01:26pm

A bill for an act
relating to energy; requiring that economic growth and job growth and retention
be considered during the ratemaking process; amending Minnesota Statutes 2016,
sections 216B.03; 216B.16, subdivisions 1a, 6; 216B.2422, subdivisions 2, 3, 4.

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

Section 1.

Minnesota Statutes 2016, section 216B.03, is amended to read:

216B.03 REASONABLE RATE.

Every rate made, demanded, or received by any public utility, or by any two or more
public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
and consistent in application to a class of consumers. To the maximum reasonable extent,
the commission shall set rates to encourage new text begin economic growth, job retention, new text end energy
conservation deleted text begin and deleted text end new text begin , new text end renewable energy use new text begin , new text end and to further the goals of sections 216B.164,
new text begin 216B.1961, new text end 216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in
favor of the consumer. For rate-making purposes a public utility may treat two or more
municipalities served by it as a single class wherever the populations are comparable in size
or the conditions of service are similar.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment and applies immediately
to all proceedings pending before the commission.
new text end

Sec. 2.

Minnesota Statutes 2016, section 216B.16, subdivision 1a, is amended to read:

Subd. 1a.

Settlement.

(a) When a public utility submits a general rate filing, the Office
of Administrative Hearings, before conducting a contested case hearing, shall convene a
settlement conference including all of the parties for the purpose of encouraging settlement
of any or all of the issues in the contested case. If a stipulated settlement is not reached
before the contested case hearing, the Office of Administrative Hearings may reconvene
the settlement conference during or after completion of the contested case hearing at its
discretion or a party's request. The Office of Administrative Hearings or the commission
may, upon the request of any party and the public utility, extend the procedural schedule
of the contested case in order to permit the parties to engage in settlement discussions. An
extension must be for a definite period of time not to exceed 60 days.

(b) If the applicant and all intervening parties agree to a stipulated settlement of the case
or parts of the case, the settlement must be submitted to the commission. The commission
shall accept or reject the settlement in its entirety and, at any time until its final order is
issued in the case, may require the Office of Administrative Hearings to conduct a contested
case hearing. The commission may accept the settlement on finding that deleted text begin to do so deleted text end new text begin the
settlement is supported by substantial evidence and approving the settlement new text end is in the public
interest deleted text begin and is supported by substantial evidence deleted text end . new text begin The analysis must consider the impact of
the proposed settlement on the economy, job growth, and job retention. new text end If the commission
does not accept the settlement, it may issue an order modifying the settlement subject to
the approval of the parties. Each party shall have ten days in which to reject the proposed
modification. If no party rejects the proposed modification, the commission's order becomes
final. If the commission rejects the settlement, or a party rejects the commission's proposed
modification, a contested case hearing must be completed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment and applies immediately
to all proceedings pending before the commission.
new text end

Sec. 3.

Minnesota Statutes 2016, section 216B.16, subdivision 6, is amended to read:

Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers
under this chapter to determine just and reasonable rates for public utilities, shall give due
consideration to the public need for adequate, efficient, and reasonable service new text begin , as well as
the need for competitive electric rates, job preservation, and economic growth, new text end and to the
need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
the service, including adequate provision for depreciation of its utility property used and
useful in rendering service to the public, and to earn a fair and reasonable return upon the
investment in such property. In determining the rate base upon which the utility is to be
allowed to earn a fair rate of return, the commission shall give due consideration to evidence
of the cost of the property when first devoted to public use, to prudent acquisition cost to
the public utility less appropriate depreciation on each, to construction work in progress, to
offsets in the nature of capital provided by sources other than the investors, and to other
expenses of a capital nature. For purposes of determining rate base, the commission shall
consider the original cost of utility property included in the base and shall make no allowance
for its estimated current replacement value. If the commission orders a generating facility
to terminate its operations before the end of the facility's physical life in order to comply
with a specific state or federal energy statute or policy, the commission may allow the public
utility to recover any positive net book value of the facility as determined by the commission.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment and applies immediately
to all proceedings pending before the commission.
new text end

Sec. 4.

Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:

Subd. 2.

Resource plan filing and approval.

A utility shall file a resource plan with
the commission periodically in accordance with rules adopted by the commission. The
commission shall approve, reject, or modify the plan of a public utility, as defined in section
216B.02, subdivision 4, consistent with the public interest. new text begin The analysis must consider the
economy, job growth, and job retention. new text end In the resource plan proceedings of all other utilities,
the commission's order shall be advisory and the order's findings and conclusions shall
constitute prima facie evidence which may be rebutted by substantial evidence in all other
proceedings. With respect to utilities other than those defined in section 216B.02, subdivision
4, the commission shall consider the filing requirements and decisions in any comparable
proceedings in another jurisdiction. As a part of its resource plan filing, a utility shall include
the least cost plan for meeting 50 and 75 percent of all new and refurbished capacity needs
through a combination of conservation and renewable energy resources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment and applies immediately
to all proceedings pending before the commission.
new text end

Sec. 5.

Minnesota Statutes 2016, section 216B.2422, subdivision 3, is amended to read:

Subd. 3.

Environmental costs.

(a) The commission shall, to the extent practicable,
quantify and establish a range of environmental costs associated with each method of
electricity generation. A utility shall use the values established by the commission in
conjunction with other external factors, including socioeconomic costs, when evaluating
and selecting resource options in all proceedings before the commission, including resource
plan and certificate of need proceedings. new text begin As part of the resource options and socioeconomic
cost analysis under this section, the utility must calculate the impact of resource options on
customers' bills and utility rates. Any doubt regarding the various resource options before
the commission must be resolved in favor of supporting the economy, job growth, and job
retention.
new text end

(b) The commission shall establish interim environmental cost values associated with
each method of electricity generation by March 1, 1994. These values expire on the date
the commission establishes environmental cost values under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment and applies immediately
to all proceedings pending before the commission.
new text end

Sec. 6.

Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:

Subd. 4.

Preference for renewable energy facility.

The commission shall not approve
a new or refurbished nonrenewable energy facility in an integrated resource plan or a
certificate of need, pursuant to section 216B.243, nor shall the commission allow rate
recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the
utility has demonstrated that a renewable energy facility is not in the public interest. The
public interest determination must include whether the resource plan helps the utility achieve
the greenhouse gas reduction goals under section 216H.02, the renewable energy standard
under section 216B.1691, or the solar energy standard under section 216B.1691, subdivision
2f new text begin , as well as the resource plan's impact on the economy, job growth, and job retention new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment and applies immediately
to all proceedings pending before the commission.
new text end