Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 309-S.F.No. 631 
           An act relating to electric utilities; service areas; 
          establishing a task force to study issues relating to 
          service area boundary changes; authorizing the public 
          utilities commission to assess costs associated with 
          the study; appropriating money. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [STUDY; ELECTRIC UTILITY SERVICE AREAS.] 
    Subdivision 1.  [TASK FORCE.] A task force consisting of 
five members of the house of representatives appointed by the 
speaker of the house, five members of the senate appointed by 
the subcommittee on committees of the committee on rules and 
administration, the chair of the public utilities commission or 
the chair's designate, and the commissioner of public service or 
the commissioner's designate shall study issues relating to 
changes in boundaries of electric utility service areas and 
shall report its findings and recommendations to the legislature 
by February 1, 1990.  At least one member from each house of the 
legislature must be a member of the minority caucus.  
    Subd. 2.  [DEFINITION.] For purposes of this section, 
"electric utility" or "utility" means a wholesale or retail 
cooperative electric association and a municipal electric 
utility as well as a public utility regulated under Minnesota 
Statutes, chapter 216B.  
    Subd. 3.  [STUDY.] The study must address all issues 
relating to the setting and changing of service area boundaries, 
including, but not limited to:  
    (1) the extent, if any, to which rates within service areas 
should be a factor in determining or changing service area 
boundaries; 
    (2) why and how excess capacity occurs and whether it 
should be reduced through short-term or long-term sale or lease, 
permanent sale of capacity, or other means; 
    (3) the extent, if any, to which excess capacity of a 
utility and the need of another utility for additional power 
should be a factor in determining or changing service areas; 
    (4) the effect on rates, and on the potential for 
equalization of rates among utilities, of capacity-reduction 
options; 
    (5) plant efficiency, including operating efficiency and 
operating costs, management practices, and the impact of any 
federal regulation or oversight; 
    (6) the impact on economic development; 
    (7) rate-making policies and procedures; and 
    (8) municipal authority and the relationship between 
service area boundaries and municipal boundaries.  
    Subd. 4.  [AGENCY, UTILITY COOPERATION.] The public 
utilities commission and the department of public service shall 
cooperate with the task force.  Utilities shall furnish 
information, including access to their financial and other 
records, to the task force, the public utilities commission, or 
the department of public service upon request.  
    Subd. 5.  [STAFF.] The task force shall use legislative 
staff, and the public utilities commission and department of 
public service shall make staff available to assist the task 
force.  
    Subd. 6.  [CONSULTANTS; ASSESSMENT OF COSTS.] The public 
utilities commission may employ the services of consultants to 
assist the task force and may assess the costs associated with 
the task force study, but not more than $200,000, to the 
affected utilities in proportion to their gross operating 
revenues.  The commission shall use the proceeds of any 
assessment under this subdivision to cover its own costs and 
those incurred by the department of public service, including 
costs associated with providing staff assistance to the task 
force.  
    Subd. 7.  [SUBPOENA POWER.] The task force may request the 
issuance of subpoenas, including subpoenas duces tecum, in the 
same manner as a standing or interim committee under Minnesota 
Statutes, section 3.153.  A subpoena requested by the task force 
may be issued by either the chief clerk of the house of 
representatives or the secretary of the senate.  Service and 
enforcement of a subpoena is governed by section 3.153.  
     Sec. 2.  [APPROPRIATION.] 
    Assessments collected under section 1, subdivision 6, are 
appropriated to the public utilities commission to cover the 
costs associated with the task force study required by section 
1.  The money is available until March 1, 1990.  Any money from 
assessments unexpended on that date remains in the general fund. 
    Sec. 3.  [EFFECTIVE DATE.] 
    Section 1 is effective the day following final enactment.  
Section 2 is effective July 1, 1989. 
    Presented to the governor May 30, 1989 
    Signed by the governor June 1, 1989, 10:47 p.m.