HF 1347

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; providing for automatic recovery
of electricity transmission costs; amending
certification requirements for high-voltage
transmission lines; establishing stakeholder group to
study state certification and routing processes;
amending Minnesota Statutes 2004, sections 216B.16, by
adding subdivisions; 216B.243, subdivision 3.

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

Section 1.

Minnesota Statutes 2004, section 216B.16, is
amended by adding a subdivision to read:

new text begin Subd. 7b. new text end

new text begin Transmission cost adjustment. new text end

new text begin The legislature
finds that it is in the public interest to encourage additional
investment in electric transmission infrastructure in order to
ensure reliability, encourage the development of renewable
energy, and accommodate the economic transfer of energy within
and between states. Notwithstanding any other provision of this
chapter, the commission may permit a public utility providing
electric service to file a rate schedule providing for the
automatic annual adjustment of charges for changes in
transmission costs, including costs of investments in
transmission facilities, a current return on construction work
in progress for transmission facilities based on the utility's
authorized rate of return, and related operations and
maintenance expenses.
new text end

Sec. 2.

Minnesota Statutes 2004, section 216B.16, is
amended by adding a subdivision to read:

new text begin Subd. 7c. new text end

new text begin Transmission assets transfer. new text end

new text begin (a) Owners of
transmission facilities may transfer ownership of those assets
to a transmission provider subject to Federal Energy Regulatory
Commission jurisdiction. The Public Utilities Commission shall
approve a transfer if it finds that the transfer:
new text end

new text begin (1) is consistent with the public interest; and
new text end

new text begin (2) facilitates the development of transmission
infrastructure necessary to ensure reliability, encourage the
development of renewable resources, and accommodate energy
transfers within and between states.
new text end

new text begin (b) If a utility transfers ownership of its transmission
assets to a transmission provider subject to the jurisdiction of
the Federal Energy Regulatory Commission, the Public Utilities
Commission may permit the utility to file a rate schedule
providing for the automatic adjustment of charges to recover the
cost of transmission services purchased under tariff rates
approved by the Federal Energy Regulatory Commission.
new text end

Sec. 3.

Minnesota Statutes 2004, section 216B.243,
subdivision 3, is amended to read:

Subd. 3.

Showing required for construction.

No proposed
large energy facility shall be certified for construction unless
the applicant can show that demand for electricity cannot be met
more cost effectively through energy conservation and
load-management measures and unless the applicant has otherwise
justified its need. In assessing need, the commission shall
evaluate:

(1) the accuracy of the long-range energy demand forecasts
on which the necessity for the facility is based;

(2) the effect of existing or possible energy conservation
programs under sections 216C.05 to 216C.30 and this section or
other federal or state legislation on long-term energy demand;

(3) the relationship of the proposed facility to overall
state energy needs, as described in the most recent state energy
policy and conservation report prepared under section 216C.18 new text begin ,
or, in the case of a high-voltage transmission line, the
relationship of the proposed line to regional energy needs, as
presented in the transmission plan submitted under section
216B.2425 new text end ;

(4) promotional activities that may have given rise to the
demand for this facility;

(5) benefits of this facility, including its uses to
protect or enhance environmental quality, and to increase
reliability of energy supply in Minnesota and the region;

(6) possible alternatives for satisfying the energy demand
or transmission needs including but not limited to potential for
increased efficiency and upgrading of existing energy generation
and transmission facilities, load-management programs, and
distributed generation;

(7) the policies, rules, and regulations of other state and
federal agencies and local governments; deleted text begin and
deleted text end

(8) any feasible combination of energy conservation
improvements, required under section 216B.241, that can (i)
replace part or all of the energy to be provided by the proposed
facility, and (ii) compete with it economically new text begin ; and
new text end

new text begin (9) with respect to a high-voltage transmission line, the
benefits of enhanced regional reliability, access, or
deliverability to improve the robustness of the transmission
system or to lower costs to electric consumers new text end .

Sec. 4. new text begin STAKEHOLDER PROCESS AND REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin By June 15, 2005, the
Legislative Electric Energy Task Force shall convene a
stakeholder group consisting of one representative from each of
the following groups: transmission-owning investor-owned
utilities, electric cooperatives, municipal power agencies,
energy consumer advocates, environmental organizations, the
Minnesota Department of Commerce, the Minnesota Environmental
Quality Board, and the Minnesota Public Utilities Commission.
new text end

new text begin Subd. 2. new text end

new text begin Charge. new text end

new text begin (a) The stakeholder group shall explore
whether increased efficiencies and effectiveness can be obtained
through modifying current state administrative processes to
certify and route high-voltage transmission lines.
new text end

new text begin (b) In developing its recommendations, the stakeholder
group shall consider:
new text end

new text begin (1) whether the certification process established under
section 216B.2425, subdivision 3, can be modified to encourage
utilities to apply for certification under that section;
new text end

new text begin (2) whether alternative certification processes are
feasible for different types of transmission facilities; and
new text end

new text begin (3) whether additional cooperation between state agencies
is needed to enhance the efficiency of the certification and
routing process.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By January 15, 2006, the task force
shall submit a report to the legislature summarizing the
stakeholder group findings and any recommended changes to the
certification and routing processes for high-voltage
transmission lines.
new text end