1.1                          A bill for an act 
  1.2             relating to energy; directing public utilities 
  1.3             commission to establish programs for low-income 
  1.4             utility customers; amending Minnesota Statutes 2000, 
  1.5             section 216B.16, subdivision 15.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 216B.16, 
  1.8   subdivision 15, is amended to read: 
  1.9      Subd. 15.  [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 
  1.10  commission may consider ability to pay as a factor in setting 
  1.11  utility rates and may shall establish programs for low-income 
  1.12  residential ratepayers in order to ensure affordable, reliable, 
  1.13  and continuous service to low-income utility customers.  The 
  1.14  commission shall order a pilot program for at least one 
  1.15  utility.  In ordering pilot programs, the commission shall 
  1.16  consider the following: 
  1.17     (1) the potential for low-income programs to provide 
  1.18  savings to the utility for all collection costs including but 
  1.19  not limited to:  costs of disconnecting and reconnecting 
  1.20  residential ratepayers' service, all activities related to the 
  1.21  utilities' attempt to collect past due bills, utility working 
  1.22  capital costs, and any other administrative costs related to 
  1.23  inability to pay programs and initiatives; 
  1.24     (2) the potential for leveraging federal low-income energy 
  1.25  dollars to the state; and 
  2.1      (3) the impact of energy costs as a percentage of the total 
  2.2   income of a low-income residential customer. 
  2.3      (b) In determining the structure of the pilot utility 
  2.4   program, the commission shall: 
  2.5      (1) consult with advocates for and representatives of 
  2.6   low-income utility customers, administrators of energy 
  2.7   assistance and conservation programs, and utility 
  2.8   representatives; 
  2.9      (2) coordinate eligibility for the program with the state 
  2.10  and federal energy assistance program and low-income residential 
  2.11  energy programs, including weatherization programs; and 
  2.12     (3) evaluate comprehensive low-income programs offered by 
  2.13  utilities in other states. 
  2.14     (c) The commission shall implement at least one pilot 
  2.15  project by January 1, 1995, and shall allow a utility required 
  2.16  to implement a pilot project to recover the net costs of the 
  2.17  project in the utility's rates. 
  2.18     (d) The commission, in conjunction with the commissioner of 
  2.19  the department of public service and the commissioner of 
  2.20  economic security, shall review low-income rate programs and 
  2.21  shall report to the legislature by January 1, 1998.  The report 
  2.22  must include: 
  2.23     (1) the increase in federal energy assistance money 
  2.24  leveraged by the state as a result of this program; 
  2.25     (2) the effect of the program on low-income customer's 
  2.26  ability to pay energy costs; 
  2.27     (3) the effect of the program on utility customer bad debt 
  2.28  and arrearages; 
  2.29     (4) the effect of the program on the costs and numbers of 
  2.30  utility disconnections and reconnections and other costs 
  2.31  incurred by the utility in association with inability to pay 
  2.32  programs; 
  2.33     (5) the ability of the utility to recover the costs of the 
  2.34  low-income program without a general rate change; 
  2.35     (6) how other ratepayers have been affected by this 
  2.36  program; 
  3.1      (7) recommendations for continuing, eliminating, or 
  3.2   expanding the low-income pilot program; and 
  3.3      (8) how general revenue funds may be utilized in 
  3.4   conjunction with low-income programs. 
  3.5      (b) The purpose of the low-income programs is to lower the 
  3.6   percentage of income that low-income households devote to energy 
  3.7   bills, to increase customer payments, and to lower utility costs 
  3.8   associated with customer account collection activities.  In 
  3.9   ordering low-income programs, the commission may require 
  3.10  utilities to file program evaluations, including the effect of 
  3.11  the program on participant household energy burdens, the 
  3.12  coordination of other available low-income bill payment and 
  3.13  conservation resources, the effect of the program on service 
  3.14  disconnections, and the effect of the program on customer 
  3.15  payment behavior, utility collection costs, arrearages, and bad 
  3.16  debt.