HF 1862

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:55am

A bill for an act
relating to energy cooperatives; authorizing the formation of distributed
generation cooperatives; proposing coding for new law in Minnesota Statutes,
chapter 308A.

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

Section 1.

new text begin [308A.211] DISTRIBUTED GENERATION COOPERATIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The terms in this section have the meanings given
them in this subdivision.
new text end

new text begin (a) "Distributed generation facility" means an electric generation facility of no more
than ten megawatts of interconnected capacity that is:
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new text begin (1) located on or near the location where the electricity generated by the facility
will be used; and
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new text begin (2) fueled by natural gas or a renewable fuel, or another similarly clean fuel or
combination of fuels.
new text end

new text begin (b) "Distributed generation power supply services" means the provision of electric
power supply generated by a distributed generation facility. The term includes services
relating to the usage, purchase, or sale of electric capacity and energy.
new text end

new text begin Subd. 2. new text end

new text begin Formation; purpose. new text end

new text begin (a) A distributed generation cooperative may be
formed under this chapter for the purpose of common ownership of distributed generation
facilities, or for common purchasing of distributed generation power supply services from
the distribution electric utility in whose service area the cooperative is located.
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new text begin (b) In addition to others that may form a cooperative, a political subdivision of the
state, including a service cooperative created under section 123A.21, may act to organize a
distributed generation cooperative within its jurisdiction for the benefit of its residents.
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new text begin (c) A distributed generation cooperative shall declare in its articles of incorporation
a contiguous area in which it may operate.
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new text begin Subd. 3. new text end

new text begin Powers. new text end

new text begin A distributed generation cooperative has all of the powers
described in section 308A.201, except that a distributed generation cooperative does
not have the power of eminent domain. A distributed generation cooperative is not a
cooperative electric association as the term is used in this chapter and chapter 216B.
new text end

new text begin Subd. 4. new text end

new text begin Governing board. new text end

new text begin A board of directors shall govern a distributed
generation cooperative. The directors must be elected according to the requirements of
section 308A.311, except that all of the directors must be members of the distributed
generation cooperative.
new text end

new text begin Subd. 5. new text end

new text begin Open membership. new text end

new text begin Any person within the geographic operating area
declared in a cooperative's articles of incorporation may become a member of the
distributed generation cooperative.
new text end

new text begin Subd. 6. new text end

new text begin Interconnection; rates. new text end

new text begin The Public Utilities Commission shall review,
and if necessary revise, the standards set by the commission under section 216B.2411
for utility tariffs for the interconnection and parallel operation of distributed generation
facilities, to ensure that these standards encourage the development of distributed
generation cooperatives, while allowing electric utilities to recover the costs of serving
the needs of such cooperatives.
new text end