1.1                          A bill for an act 
  1.2             relating to utilities; regulating intervenor 
  1.3             compensation in certain proceedings related to 
  1.4             electric and gas service utilities; proposing coding 
  1.5             for new law in Minnesota Statutes, chapter 216B; 
  1.6             repealing Minnesota Statutes 1994, section 216B.16, 
  1.7             subdivision 10. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [216B.169] [INTERVENOR COMPENSATION.] 
  1.10     Subdivision 1.  [AMOUNT; PROCEEDING.] (a) The commission 
  1.11  shall order a utility to pay a party's intervention costs not to 
  1.12  exceed $40,000 in any of the following proceedings related to 
  1.13  gas or electric utilities or service before the public utilities 
  1.14  commission issued in the following proceedings, excluding a 
  1.15  participant that provides gas or electric services: 
  1.16     (1) a proceeding referred to the office of administrative 
  1.17  hearings; 
  1.18     (2) a proceeding related to rates under section 216B.16; 
  1.19     (3) a proceeding relating to competitive rates under 
  1.20  section 216B.162; 
  1.21     (4) a proceeding related to energy conservation 
  1.22  improvements under section 216B.241; 
  1.23     (5) a proceeding related to certificate of need under 
  1.24  section 216B.243; 
  1.25     (6) a proceeding related to resource planning under section 
  1.26  216B.2422; or 
  2.1      (7) any rulemaking proceeding. 
  2.2      (b) Compensation shall be awarded for reasonable fees, 
  2.3   including attorney fees, expert witness fees, transcript fees, 
  2.4   and other reasonable costs, provided the commission determines 
  2.5   that: 
  2.6      (1) the intervenor is a customer or represents customers of 
  2.7   the utility that is the subject of the proceeding, or has 
  2.8   substantial interests that may be affected by the outcome of the 
  2.9   proceeding; 
  2.10     (2) the intervenor represents an interest material to the 
  2.11  proceeding that is not adequately represented by other parties 
  2.12  to the proceeding; and 
  2.13     (3) the intervenor cannot without undue financial hardship 
  2.14  afford to pay the costs of participation or, in the case of a 
  2.15  group or organization, the intervenor advocates a position 
  2.16  which, if adopted by the commission, would not selectively 
  2.17  confer economic benefits on individual members of the 
  2.18  organization. 
  2.19     Subd. 2.  [APPLICATION FOR COMPENSATION; COMPENSATION 
  2.20  AMOUNTS.] (a) An intervenor must file an application for 
  2.21  compensation with the commission within 14 days after a notice 
  2.22  of hearing is issued or on the same date initial comments are 
  2.23  due in a noncontested matter.  The application must include: 
  2.24     (1) a clear statement of the interest represented by the 
  2.25  intervenor; 
  2.26     (2) an itemized estimate of the cost of the intervention; 
  2.27  and 
  2.28     (3) financial statements and other information necessary to 
  2.29  establish undue financial hardship. 
  2.30     (b) Comments or objections regarding the application for 
  2.31  compensation must be filed with the commission within ten days 
  2.32  of filing of the application.  The commission may grant leave to 
  2.33  file a late application if the applicant provides a reasonable 
  2.34  justification for the delay. 
  2.35     (c) The commission must decide whether and in what amount 
  2.36  to authorize compensation within 30 days of receipt of the 
  3.1   application for compensation.  The commission may authorize 
  3.2   partial payments to be disbursed as an intervenor's work 
  3.3   progresses upon a showing by the intervenor that the payments 
  3.4   are essential for effective participation in the proceeding. 
  3.5      (d) The commission may authorize supplemental compensation 
  3.6   in excess of the amount initially authorized if, for legitimate 
  3.7   reasons, the costs of participation were underestimated or if 
  3.8   additional funds would substantially improve the ability of the 
  3.9   intervenor to contribute to the proceeding. 
  3.10     Subd. 3.  [ACCOUNTING; CLAIM FOR PAYMENT.] Within 30 days 
  3.11  of issuance of the final determination in the proceeding for 
  3.12  which compensation was authorized under this section, the 
  3.13  intervenor for whom the compensation was authorized shall file a 
  3.14  claim for payment with the commission.  For the purpose of this 
  3.15  subdivision, "final determination" means the initial decision of 
  3.16  the commission and not any order which may be entered by the 
  3.17  commission in response to a petition for rehearing or other 
  3.18  further relief.  The claim must include full documentation of 
  3.19  fees and expenses, including the costs of studies, engineering 
  3.20  reports, tests, or projects related to the proceeding.  
  3.21  Documentation must also include an affidavit from each attorney, 
  3.22  agent, or expert witness that represented or appeared on behalf 
  3.23  of the intervenor that states the specific services rendered, 
  3.24  the actual time spent for each service, and the rate at which 
  3.25  fees were computed for providing each service. 
  3.26     Subd. 4.  [PAYMENT; REIMBURSEMENT.] (a) The commission 
  3.27  shall review each claim for payment filed under subdivision 3, 
  3.28  along with any other relevant material submitted.  The 
  3.29  commission shall order payment of compensation within 30 days of 
  3.30  the receipt of the claim, less any partial payments that were 
  3.31  authorized under subdivision 2, paragraph (c).  
  3.32     (b) Payment may be denied for unauthorized expenses or if 
  3.33  the commission finds that the applicant failed to represent the 
  3.34  interest for which the application for compensation was 
  3.35  approved, or for preparation or presentation of testimony that 
  3.36  is excluded from the record on the basis of a ruling by the 
  4.1   administrative law judge or the commission.  An intervenor must 
  4.2   reimburse a public utility for any partial payments received 
  4.3   that the commission determines were not compensable under this 
  4.4   section. 
  4.5      Sec. 2.  [REPEALER.] 
  4.6      Minnesota Statutes 1992, section 216B.16, subdivision 10, 
  4.7   is repealed. 
  4.8      Sec. 3.  [EFFECTIVE DATE.] 
  4.9      Sections 1 and 2 are effective the day following final 
  4.10  enactment and apply to proceedings begun on or after or pending 
  4.11  on that date.