Minnesota Legislature
HF 1174
1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/12/2014 12:38pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/04/2013 | |
| 1st Engrossment | Posted on 03/12/2014 |
Current Version - 1st Engrossment
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4.3
A bill for an act
relating to energy; requiring the Public Utilities Commission to initiate a
proceeding culminating in an order establishing standards for utility rates
regarding the interconnection of small electric generating facilities; amending
Minnesota Statutes 2012, section 216B.1611.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 216B.1611, is amended to read:
216B.1611 INTERCONNECTION OF ON-SITE DISTRIBUTED
GENERATION.
Subdivision 1.
Purpose.
The purpose of this section is to:
(1) establish the terms and conditions that govern the interconnection and parallel
operation of on-site distributed generationnew text begin resources interconnected with a public utility's
distribution systemnew text end ;
(2) provide cost savings and reliability benefits to customers;
(3) establish technical requirements that will promote the safe and reliable parallel
operation of on-site distributed generation resourcesnew text begin interconnected with a public utility's
distribution systemnew text end ;
(4) enhance both the reliability of electric service and economic efficiency in the
production and consumption of electricity; and
(5) promote the use of distributed resources in order to provide electric system
benefits during periods of capacity constraints.
Subd. 2.
Distributed generation; generic proceeding.
(a) The commission shall
initiate a proceeding within 30 days of July 1, deleted text begin 2001deleted text end new text begin 2014new text end , to establish, by order, generic
standards for utility tariffs for the interconnection and parallel operation of distributed
generation new text begin projects, including a qualified cogeneration project under section 216B.164
that are:
new text end
new text begin (1) new text end fueled by natural gas or a renewable fuel, or another similarly clean fuel or
combination of fuels deleted text begin ofdeleted text end new text begin ;
new text end
new text begin (2)new text end no more than ten megawatts of interconnected capacitynew text begin ; and
new text end
new text begin (3) interconnected with a public utility's distribution system where system voltages
are less than 100 kilovoltsnew text end .
new text begin (b)new text end At a minimum, deleted text begin thesedeleted text end new text begin thenew text end tariff standards new text begin established in paragraph (a) new text end must:
(1) to the extent possible, be consistent with industry and other federal and state
operational and safety standards;
(2) provide for the low-cost, safe, and standardized interconnection of facilities;
(3) take into account differing system requirements and hardware, as well as
new text begin encourage maximum penetration of distributed generation while considering new text end the overall
demand load requirements of individual utilities;
(4) allow for new text begin just and new text end reasonable terms and conditions, consistent with the cost and
operating characteristics of the various technologies, so that a utility can reasonably be
assured of the reliable, safe, and efficient operation of the interconnected equipmentnew text begin while
expediting the evaluation of interconnection applicationsnew text end ; deleted text begin and
deleted text end
(5) establish (i) a standard interconnection agreement that sets forth the contractual
conditions under which a company and a customer agree that one or more facilities may
be interconnected with the company's utility system, and (ii) a standard application for
interconnection and parallel operation with the utility systemnew text begin ;
new text end
new text begin
(6) establish a procedure whereby, when the size of a distributed generation
resource causes power to flow intermittently into transmission facilities operated by the
Midcontinent Independent System Operator, a local load-serving utility may coordinate
with the Midcontinent Independent System Operator to conduct the interconnection
transmission system analysis and transmission system usage reservations, as needed;
new text end
new text begin
(7) include payments for ancillary services and other system benefits provided by a
distributed generation resource;
new text end
new text begin
(8) reflect the savings that accrue to a public utility's distribution system resulting
from avoided demand charges and avoided transmission and transmission infrastructure
costs; and
new text end
new text begin (9) recognize the role played by the regional wholesale electricity market and demand
side and storage resources as a source of standby power for a distributed energy resourcenew text end .
deleted text begin (b)deleted text end new text begin (c)new text end The commission deleted text begin maydeleted text end new text begin shallnew text end develop financial incentives based on a public
utility's performance in encouraging residential and small business customers to participate
in on-site generationnew text begin interconnected with a public utility's distribution system. A public
utility's performance shall be evaluated on:
new text end
new text begin
(1) steps taken by the public utility to reduce barriers to the development of
distributed generation resources, including, but not limited to, financial, technical, and
interconnection barriers; and
new text end
new text begin (2) the extent to which a public utility has effectively and thoroughly analyzed
available locations on its distribution system for siting future distributed generation
resources and provided that information to developersnew text end .
Subd. 3.
Distributed generation tariff.
Within 90 days of the issuance of an order
under subdivision 2:
(1) each public utility providing electric service at retail shall file a distributed
generation tariff consistent with that order, for commission approval or approval with
modification; and
(2) each municipal utility and cooperative electric association shall adopt a
distributed generation tariff that addresses the issues included in the commission's order.
Subd. 4.
Reporting requirements.
(a) Each electric utility shall maintain records
concerning applications received for interconnection and parallel operation of distributed
generation. The records must include the date each application is received, documents
generated in the course of processing each application, correspondence regarding each
application, and the final disposition of each application.
(b) Every electric utility shall file with the commissioner a distributed generation
interconnection report for the preceding calendar year that identifiesnew text begin :
new text end
new text begin (1)new text end each distributed generation facility interconnected with the utility's distribution
systemdeleted text begin . The report must list thedeleted text end new text begin ;
new text end
new text begin (2)new text end new distributed generation facilities interconnected with the system since the
previous year's report, any distributed generation facilities no longer interconnected with
the utility's system since the previous report, the capacity of each facility, and the feeder or
other point on the company's utility system where the facility is connecteddeleted text begin . The annual
report must also identifydeleted text end new text begin ;
new text end
new text begin (3)new text end all applications for interconnection received during the previous one-year period,
and the disposition of the applicationsnew text begin ; and
new text end
new text begin (4) the most optimal locations on its distribution system for the interconnection
of future distributed generation resources, considering the technical feasibility of
accommodating a project of up to ten megawatts capacity, the system benefits that accrue
for power quality improvements from distributed generation resources and from reducing
local system demand, and the avoidance of future expenditures to expand generation
or transmission or distribution capacitynew 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