1.1                          A bill for an act 
  1.2             relating to utilities; allowing exemption from rate 
  1.3             regulation for small electric utility franchise; 
  1.4             amending Minnesota Statutes 1994, section 216B.16, by 
  1.5             adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 216B.16, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 12a.  [EXEMPTION FOR SMALL ELECTRIC UTILITY 
  1.10  FRANCHISE.] (a) An electric utility, operating as such in a 
  1.11  bordering state and having fewer than 200 customers in 
  1.12  Minnesota, is exempt from this section if the utility: 
  1.13     (1) charges Minnesota customers the same rates as those 
  1.14  charged to customers in the bordering state; 
  1.15     (2) provides 60-day notice to the commission of rate 
  1.16  increases for its Minnesota customers; 
  1.17     (3) provides individual, written notice of rate increases 
  1.18  to its Minnesota customers; 
  1.19     (4) provides the commission with schedules of rates and 
  1.20  tariffs charged in the bordering state and revenues by class 
  1.21  under the former and proposed rates; and 
  1.22     (5) maintains an up-to-date tariff book with the department.
  1.23     (b) The commission may initiate an investigation under 
  1.24  section 216B.17, on its own motion or upon customer complaint 
  1.25  with respect to the utility's rates and practices in Minnesota.