HF 4851

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 02:15pm

A bill for an act
relating to energy; limiting rate recovery of executive pay for certain public utilities;
amending Minnesota Statutes 2022, section 216B.16, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2022, section 216B.16, is amended by adding a subdivision
to read:

new text begin Subd. 17a. new text end

new text begin Executive compensation; rate recovery limitation. new text end

new text begin (a) The commission is
prohibited from allowing Minnesota ratepayers to pay for compensation to any of a public
utility's ten highest-paid officers or employees in an amount that exceeds the governor's
annual salary.
new text end

new text begin (b) For purposes of this subdivision, the term "compensation" includes salary, incentive
program payments, or any other compensation regardless of the compensation's form.
Compensation does not include expense reimbursements or benefits offered to a public
utility's ten highest-paid officers or employees on terms comparable to the terms under
which the benefits are offered to the public utility's other employees.
new text end

new text begin (c) Nothing in this subdivision limits the compensation that can be paid to a public
utility's ten highest-paid officers or employees from sources other than Minnesota ratepayers,
including from sources made available to a public utility by the public utility's investors.
The commission must ensure that compensation from sources other than Minnesota ratepayers
does not disproportionately burden the ratepayers in other states.
new text end

new text begin (d) This subdivision applies to a public utility with at least 300,000 retail customers in
Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to rate filings submitted on or after that date.
new text end