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HF 3116

as introduced - 90th Legislature (2017 - 2018) Posted on 02/26/2018 02:38pm

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; authorizing an advance determination of prudence for energy
storage systems; proposing coding for new law in Minnesota Statutes, chapter
216B.

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

Section 1.

new text begin [216B.1697] ENERGY STORAGE SYSTEMS; ADVANCE
DETERMINATION OF PRUDENCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "energy storage system" means
a commercially available technology capable of (1) absorbing and storing electrical energy,
and (2) dispatching stored electrical energy for use at a later time.
new text end

new text begin Subd. 2. new text end

new text begin Qualifying project; petition. new text end

new text begin (a) A public utility may petition the commission
for an advance determination of prudence for an energy storage system owned and operated
by the public utility. A petition filed under this section must include a description of the
project, evidence supporting the project's reasonableness, a discussion of project alternatives,
a project implementation schedule, a cost estimate and support for the reasonableness of
the estimated cost, a description of the public utility's efforts to ensure the lowest reasonable
costs, information regarding how the project will interact with existing and future distributed
generation resources on the utility's grid, and the goals that the project proposes to achieve,
including controlling frequency or voltage, mitigating transmission congestion, providing
emergency power supplies during outages, reducing curtailment of existing renewable
energy generators, and reducing peak power costs.
new text end

new text begin (b) The commission must allow an opportunity for oral and written comment on the
petition. The commission must make a final determination on the petition within six months
of the petition's filing date. The commission must make findings in support of its
determination and is prohibited from approving a petition unless it provides net benefits to
ratepayers.
new text end

new text begin Subd. 3. new text end

new text begin Cost recovery. new text end

new text begin The utility may begin recovering costs incurred by the utility
in connection with implementation of an energy storage system project in either the next
rate case following an advance determination of prudence or in a rider approved by the
commission. The commission must review the costs incurred by the utility for the energy
storage system project. The utility must (1) demonstrate that project costs are reasonable
and necessary, and (2) document efforts made to ensure the lowest reasonable project costs.
The commission may accept, modify, or reject any of the project costs regardless of a prior
determination of prudence.
new text end

new text begin Subd. 4. new text end

new text begin Rate of return. new text end

new text begin The return on investment in a rider approved under this section
must be at the level approved by the commission in the public utility's last general rate case
unless the commission determines that a different rate of return is in the public interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end