HF 3704

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/15/2024 10:41am

A bill for an act
relating to energy; requiring submission of a plan to the Public Utilities Commission
regarding the implementation of grid enhancing technologies to increase electricity
transmission capacity; 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.247] GRID ENHANCING TECHNOLOGIES PLAN.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Capacity" means the maximum amount of electricity that can flow through a
transmission line while observing industry safety standards.
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new text begin (c) "Congestion" means a condition in which a lack of transmission line capacity prevents
the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
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new text begin (d) "Dynamic line rating" means hardware or software used to calculate the thermal
limit of existing transmission lines at a specific point in time by incorporating information
on real-time and forecasted weather conditions.
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new text begin (e) "Grid enhancing technology" means hardware or software that reduces congestion
or enhances the flexibility of the transmission system by increasing the capacity of a
high-voltage transmission line or rerouting electricity from overloaded to uncongested lines,
while maintaining industry safety standards. Grid enhancing technologies include but are
not limited to dynamic line rating, advanced power flow controllers, and topology
optimization.
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new text begin (f) "High-voltage transmission line" has the meaning given in Minnesota Statutes, section
216E.01, subdivision 4.
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new text begin (g) "Line rating methodology" means a methodology used to calculate the maximum
amount of electricity that can be carried by a high-voltage transmission line without
exceeding thermal limits designed to ensure safety.
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new text begin (h) "Power flow controller" means hardware and software used to reroute electricity
from overloaded transmission lines to underutilized transmission corridors.
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new text begin (i) "Thermal limit" means the temperature a transmission line reaches when the electric
current flow heats the metallic conductor to a point that weakens the metallic conductor's
mechanical strength, causing excessive sagging of the transmission line.
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new text begin (j) "Topology optimization" means a software technology that uses mathematical models
to identify reconfigurations in the transmission grid in order to reroute electricity from
overloaded transmission lines to underutilized transmission corridors.
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new text begin (k) "Transmission system" means a network of high-voltage transmission lines owned
or operated by an entity subject to this section that transports electricity to Minnesota
customers.
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new text begin Subd. 2. new text end

new text begin Filing required. new text end

new text begin (a) An entity that is required to submit a transmission projects
report to the commission under Minnesota Statutes, section 216B.2425 must, no later than
December 31, 2024, submit a filing to the commission that:
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new text begin (1) identifies locations on the entity's transmission system where congestion has occurred
for a total of 50 hours per year or more during the last three years, or is likely to occur during
the next five years;
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new text begin (2) estimates the frequency of congestion at each location and the increased cost to
ratepayers resulting from the substitution of higher-priced electricity;
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new text begin (3) evaluates the technical feasibility and estimates the cost of installing one or more
grid enhancing technologies to address each instance of grid congestion identified in clause
(1), and projects the grid enhancing technology's efficacy in reducing congestion;
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new text begin (4) analyzes the cost-effectiveness of installing grid enhancing technologies to address
each instance of congestion identified in clause (1) by using the information developed in
clause (3) to calculate the payback period of each installation, using a methodology developed
by the commission;
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new text begin (5) proposes an implementation plan, including a schedule and cost estimate, to install
grid enhancing technologies at each congestion point at which the payback period is less
than or equal to a value determined by the commission, in order to maximize transmission
system capacity; and
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new text begin (6) explains the entity's current line rating methodology.
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new text begin (b) The commission must:
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new text begin (1) review, and may approve, reject, or modify, the plan; and
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new text begin (2) issue an order requiring implementation of an approved plan.
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new text begin (c) A public utility that makes a filing under paragraph (a) must make subsequent filings
to the commission that satisfy the requirements of that paragraph within 90 days of the date
the commission issues an order to the public utility in an integrated resource plan proceeding
under Minnesota Statutes, section 216B.2422.
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new text begin (d) An entity that makes a filing under paragraph (a) and is not a public utility must
make subsequent filings to the commission that satisfy the requirements of paragraph (a)
no less than every three years, at a time determined by the commission.
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new text begin Subd. 3. new text end

new text begin Cost recovery. new text end

new text begin Notwithstanding any other provision of this chapter, the
commission may approve cost recovery under Minnesota Statutes, section 216B.16, including
an appropriate rate of return, of any prudent and reasonable investments made or expenses
incurred by a public utility to administer and implement a grid enhancing technologies plan
approved by the commission under this section.
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new text begin EFFECTIVE DATE. new text end

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