1.1                          A bill for an act 
  1.2             relating to utilities; clarifying that public 
  1.3             utilities commission may extend deadline for rate 
  1.4             suspension period by 20 days when necessary to first 
  1.5             make final determination on another, previously filed 
  1.6             rate case; allowing exemption from rate regulation for 
  1.7             small electric utility franchise; allowing longer 
  1.8             review time for granting petition for rehearing by 
  1.9             public utilities commission; amending Minnesota 
  1.10            Statutes 1994, sections 216B.16, subdivision 2, and by 
  1.11            adding a subdivision; and 216B.27, subdivision 4. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 216B.16, 
  1.14  subdivision 2, is amended to read: 
  1.15     Subd. 2.  [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 
  1.16  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
  1.17  commission a schedule modifying or resulting in a change in any 
  1.18  rates then in force as provided in subdivision 1, the commission 
  1.19  may suspend the operation of the schedule by filing with the 
  1.20  schedule of rates and delivering to the affected utility a 
  1.21  statement in writing of its reasons for the suspension at any 
  1.22  time before the rates become effective.  The suspension shall 
  1.23  not be for a longer period than ten months beyond the initial 
  1.24  filing date except as provided in this subdivision or 
  1.25  subdivision 1a.  During the suspension the commission shall 
  1.26  determine whether all questions of the reasonableness of the 
  1.27  rates requested raised by persons deemed interested or by the 
  1.28  administrative division of the department of public service can 
  2.1   be resolved to the satisfaction of the commission.  If the 
  2.2   commission finds that all significant issues raised have not 
  2.3   been resolved to its satisfaction, or upon petition by ten 
  2.4   percent of the affected customers or 250 affected customers, 
  2.5   whichever is less, it shall refer the matter to the office of 
  2.6   administrative hearings with instructions for a public hearing 
  2.7   as a contested case pursuant to chapter 14, except as otherwise 
  2.8   provided in this section.  The commission may order that the 
  2.9   issues presented by the proposed rate changes be bifurcated into 
  2.10  two separate hearings as follows:  (1) determination of the 
  2.11  utility's revenue requirements and (2) determination of the rate 
  2.12  design.  Upon issuance of both administrative law judge reports, 
  2.13  the issues shall again be joined for consideration and final 
  2.14  determination by the commission.  All prehearing discovery 
  2.15  activities of state agency intervenors shall be consolidated and 
  2.16  conducted by the department of public service.  If the 
  2.17  commission does not make a final determination concerning a 
  2.18  schedule of rates within ten months after the initial filing 
  2.19  date, the schedule shall be deemed to have been approved by the 
  2.20  commission; except if: 
  2.21     (1) an extension of the procedural schedule has been 
  2.22  granted under subdivision 1a, in which case the schedule of 
  2.23  rates is deemed to have been approved by the commission on the 
  2.24  last day of the extended period of suspension; or 
  2.25     (2) a settlement has been submitted to and rejected by the 
  2.26  commission and the commission does not make a final 
  2.27  determination concerning the schedule of rates, the schedule of 
  2.28  rates is deemed to have been approved 60 days after the initial 
  2.29  or, if applicable, the extended period of suspension. 
  2.30     (b) If the commission finds that it has insufficient time 
  2.31  during the suspension period to make a final determination of a 
  2.32  case involving changes in general rates because of the need to 
  2.33  make a final determinations determination of other another 
  2.34  previously filed cases case involving changes in general rates 
  2.35  under this section or section 237.075, the commission may extend 
  2.36  the suspension period to the extent necessary to allow itself 20 
  3.1   working days to make the final determination after it has made a 
  3.2   final determinations determination in the previously filed cases 
  3.3   case.  An extension of the suspension period under this 
  3.4   paragraph does not alter the setting of interim rates under 
  3.5   subdivision 3. 
  3.6      (c) For the purposes of this section, "final determination" 
  3.7   means the initial decision of the commission and not any order 
  3.8   which may be entered by the commission in response to a petition 
  3.9   for rehearing or other further relief.  The commission may 
  3.10  further suspend rates until it determines all those petitions. 
  3.11     Sec. 2.  Minnesota Statutes 1994, section 216B.16, is 
  3.12  amended by adding a subdivision to read: 
  3.13     Subd. 12a.  [EXEMPTION FOR SMALL ELECTRIC UTILITY 
  3.14  FRANCHISE.] (a) An electric utility, operating as such in a 
  3.15  bordering state and having fewer than 200 customers in 
  3.16  Minnesota, is exempt from this section if the utility: 
  3.17     (1) charges Minnesota customers the same rates as those 
  3.18  charged to customers in the bordering state; 
  3.19     (2) provides 60-day notice to the commission of rate 
  3.20  increases for its Minnesota customers; 
  3.21     (3) provides individual, written notice of rate increases 
  3.22  to its Minnesota customers; 
  3.23     (4) provides the commission with schedules of rates and 
  3.24  tariffs charged in the bordering state and revenues by class 
  3.25  under the former and proposed rates; and 
  3.26     (5) maintains an up-to-date tariff book with the department.
  3.27     (b) The commission may initiate an investigation under 
  3.28  section 216B.17, on its own motion or upon customer complaint 
  3.29  with respect to the utility's rates and practices in Minnesota. 
  3.30     Sec. 3.  Minnesota Statutes 1994, section 216B.27, 
  3.31  subdivision 4, is amended to read: 
  3.32     Subd. 4.  [DEADLINE TO GRANT APPLICATION.] Any application 
  3.33  for a rehearing not granted within 20 60 days from the date of 
  3.34  filing thereof, shall be deemed denied.