1.1                          A bill for an act
  1.2             relating to state departments; abolishing the 
  1.3             department of public service; transferring certain 
  1.4             responsibilities and personnel to other agencies; 
  1.5             amending Minnesota Statutes 1994, sections 8.33; 
  1.6             15.01; 116C.03, subdivision 2; 216A.01; 216A.035; 
  1.7             216A.036; 216A.04; 216A.05, by adding a subdivision; 
  1.8             216A.07; 216A.085; 216A.095; 216B.02, subdivision 7, 
  1.9             and by adding subdivisions; 216B.16, subdivision 2; 
  1.10            216B.162, subdivision 7; 216B.241, subdivisions 1 and 
  1.11            2; 216B.62; 216B.64; 216B.65; 216C.01, subdivisions 2, 
  1.12            3, and by adding a subdivision; 216C.10; 216C.37, 
  1.13            subdivision 1; 237.02; 237.075, subdivision 2; 
  1.14            237.295; 237.30; 239.01; and 239.05, subdivisions 6c, 
  1.15            7a, and 8; proposing coding for new law in Minnesota 
  1.16            Statutes, chapter 216C; repealing Minnesota Statutes 
  1.17            1994, sections 216A.06; 216B.02, subdivision 8; and 
  1.18            237.69, subdivision 3. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20                             ARTICLE 1
  1.21                      PUBLIC SERVICE ABOLISHED
  1.22     Section 1.  [DEPARTMENT OF PUBLIC SERVICE ABOLISHED; 
  1.23  RESPONSIBILITIES TRANSFERRED.] 
  1.24     Subdivision 1.  [DEPARTMENT ABOLISHED; RESPONSIBILITIES 
  1.25  TRANSFERRED.] The department of public service is abolished.  
  1.26  The responsibilities held by the department are transferred to a 
  1.27  receiving agency as designated in this article.  Except as 
  1.28  otherwise provided by this article, the responsibilities of the 
  1.29  department must be transferred under Minnesota Statutes, section 
  1.30  15.039.  For the purposes of this article, "responsibilities" 
  1.31  means the powers, duties, rights, obligations, rules, court 
  1.32  actions, contracts, records, property of every description, 
  2.1   unexpended funds, personnel, and authority imposed by law of the 
  2.2   department of public service.  For the purposes of this article, 
  2.3   "receiving agency" has the meaning given it in Minnesota 
  2.4   Statutes, section 15.039, subdivision 1. 
  2.5      Subd. 2.  [SPECIFIC POSITIONS ABOLISHED.] The following 
  2.6   positions in the department of public service are not 
  2.7   transferred to a receiving agency and are specifically abolished:
  2.8      (1) commissioner; 
  2.9      (2) deputy commissioner; 
  2.10     (3) assistant commissioner; and 
  2.11     (4) executive assistant. 
  2.12     Subd. 3.  [ATTORNEY GENERAL.] The responsibility for 
  2.13  intervention as a party in all public utility and 
  2.14  telecommunications matters before the public utilities 
  2.15  commission is transferred to the utility consumers division of 
  2.16  the attorney general's office. 
  2.17     Subd. 4.  [PUBLIC UTILITIES COMMISSION.] (a) The following 
  2.18  responsibilities are transferred to the public utilities 
  2.19  commission: 
  2.20     (1) the intervention office that represents the interests 
  2.21  of Minnesota residents, businesses, and governments before 
  2.22  bodies and agencies outside the state that make, interpret, or 
  2.23  implement national and international energy policy; 
  2.24     (2) enforcement of Minnesota Statutes, chapters 216A, 216B, 
  2.25  216C, and 237, and orders of the public utilities commission 
  2.26  under those chapters; 
  2.27     (3) conservation improvement; and 
  2.28     (4) all other responsibilities related to energy 
  2.29  production, transportation, transmission, consumption, 
  2.30  conservation, and efficiency. 
  2.31     (b) The positions and personnel of the department of public 
  2.32  service related to the responsibilities listed in paragraph (a) 
  2.33  are transferred to the public utilities commission. 
  2.34     Subd. 5.  [DEPARTMENT OF AGRICULTURE.] The division of 
  2.35  weights and measures is transferred to the department of 
  2.36  agriculture. 
  3.1      Subd. 6.  [RULES.] All rules adopted by the department of 
  3.2   public service before the effective date of this article become 
  3.3   rules of the agency to which the appropriate rulemaking 
  3.4   authority is transferred by this article. 
  3.5                              ARTICLE 2
  3.6                        CONFORMING AMENDMENTS
  3.7      Section 1.  Minnesota Statutes 1994, section 8.33, is 
  3.8   amended to read: 
  3.9      8.33 [REPRESENTATION OF CONSUMER AND SMALL BUSINESS 
  3.10  INTEREST IN PUBLIC UTILITY MATTERS.] 
  3.11     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  3.12  section, the following terms have the meanings given them: 
  3.13     (1) "Public utility" means a publicly or privately owned 
  3.14  entity engaged in supplying utility services to residential 
  3.15  utility consumers in this state or to another public utility for 
  3.16  ultimate distribution to residential utility consumers in this 
  3.17  state and whose rates or charges are subject to approval by the 
  3.18  public utilities commission or an agency of the federal 
  3.19  government.  No municipal or cooperative utility shall be 
  3.20  considered a "public utility" for the purposes of this clause. 
  3.21     (2) "Residential and small business Utility consumer" or 
  3.22  "consumer" means a person or small business, firm, association, 
  3.23  partnership, or corporation that uses utility services at the 
  3.24  person's a residence or business location in this state and who 
  3.25  is billed by or pays a public utility for these services. 
  3.26     (3) "Small business" has the meaning given it in section 
  3.27  645.445. 
  3.28     (3) (4) "Utility services" means electricity, natural gas, 
  3.29  or telephone services distributed to residential utility 
  3.30  consumers by a public utility. 
  3.31     A utility consumers division is established in the office 
  3.32  of the attorney general to carry out the duties assigned to the 
  3.33  attorney general under this section. 
  3.34     Subd. 2.  [DIVISION ESTABLISHED; DUTIES.] (a) A utility 
  3.35  consumers division is established in the office of the attorney 
  3.36  general to carry out the duties assigned to the attorney general 
  4.1   under this section. 
  4.2      (b) The attorney general is responsible for representing 
  4.3   and furthering the interests of residential and small business 
  4.4   utility consumers, other than utility consumers who represent 
  4.5   their own interests, through participation in matters before the 
  4.6   public utilities commission involving utility rates and adequacy 
  4.7   of utility services to residential or small business utility 
  4.8   consumers.  The attorney general shall expend a reasonable 
  4.9   portion of effort among all three kinds of utility services and 
  4.10  shall identify and promote the needs of each class 
  4.11  of residential and small business consumers with respect to each 
  4.12  of the utility services. 
  4.13     Subd. 3.  [RIGHT OF INTERVENTION.] Subject to the 
  4.14  limitations of subdivision 2, the attorney general may intervene 
  4.15  as of right or participate as an interested party in matters 
  4.16  pending before the public utilities commission which affect the 
  4.17  distribution by a public utility of utility services to 
  4.18  residential or small business utility consumers.  When 
  4.19  intervening in gas or electric hearings, the attorney general 
  4.20  shall prepare and defend testimony designed to encourage energy 
  4.21  conservation improvements as defined in section 216B.241.  The 
  4.22  right of the attorney general to participate or intervene does 
  4.23  not affect the obligation of the public utilities commission to 
  4.24  protect the public interest. 
  4.25     Subd. 4.  [NOTICE; PROCEDURES.] The public utilities 
  4.26  commission shall give reasonable notice to the attorney general 
  4.27  of any matter scheduled to come before the commission affecting 
  4.28  a public utility's rates or adequacy of services to residential 
  4.29  or small business utility consumers.  Rules of the commission 
  4.30  governing procedures before the commission apply to the attorney 
  4.31  general and the attorney general's employees or 
  4.32  representatives.  The attorney general has the same rights and 
  4.33  privileges accorded other intervenors or participants in matters 
  4.34  pending before the commission. 
  4.35     Subd. 5.  [APPEALS.] The attorney general has an interest 
  4.36  sufficient to maintain, intervene as of right in, or otherwise 
  5.1   participate in any civil action in the courts of this state for 
  5.2   the review or enforcement of any public utilities commission 
  5.3   action which affects a public utility's rates or adequacy of 
  5.4   service to residential or small business utility consumers. 
  5.5      Subd. 6.  [INTERVENTION IN FEDERAL PROCEEDINGS.] The 
  5.6   attorney general and the public utilities commission shall 
  5.7   jointly represent and further the interests of residential and 
  5.8   small business utility consumers through participation as an 
  5.9   intervenor or interested party in federal proceedings relating 
  5.10  to the regulation of:  (a) wholesale rates for energy delivered 
  5.11  through interstate facilities; or (b) fuel used in generation of 
  5.12  electricity or the manufacture of gas.  The attorney general may 
  5.13  maintain, intervene in, or otherwise participate in civil 
  5.14  actions relating to the federal proceedings. 
  5.15     Subd. 7.  [ADDITIONAL POWERS.] The power granted by this 
  5.16  section is in addition to powers otherwise provided by law to 
  5.17  the attorney general. 
  5.18     Sec. 2.  Minnesota Statutes 1994, section 15.01, is amended 
  5.19  to read: 
  5.20     15.01 [DEPARTMENTS OF THE STATE.] 
  5.21     The following agencies are designated as the departments of 
  5.22  the state government:  the department of administration; the 
  5.23  department of agriculture; the department of commerce; the 
  5.24  department of corrections; the department of education; the 
  5.25  department of economic security; the department of trade and 
  5.26  economic development; the department of finance; the department 
  5.27  of health; the department of human rights; the department of 
  5.28  labor and industry; the department of military affairs; the 
  5.29  department of natural resources; the department of employee 
  5.30  relations; the department of public safety; the department of 
  5.31  public service; the department of human services; the department 
  5.32  of revenue; the department of transportation; the department of 
  5.33  veterans affairs; and their successor departments. 
  5.34     Sec. 3.  Minnesota Statutes 1994, section 116C.03, 
  5.35  subdivision 2, is amended to read: 
  5.36     Subd. 2.  [MEMBERSHIP.] The members of the board are the 
  6.1   director of the office of strategic and long-range planning, the 
  6.2   commissioner of public service director of the division of 
  6.3   energy in the public utilities commission, the commissioner of 
  6.4   the pollution control agency, the commissioner of natural 
  6.5   resources, the director of the office of environmental 
  6.6   assistance, the commissioner of agriculture, the commissioner of 
  6.7   health, the commissioner of transportation, the chair of the 
  6.8   board of water and soil resources, and a representative of the 
  6.9   governor's office designated by the governor.  The governor 
  6.10  shall appoint five members from the general public to the board, 
  6.11  subject to the advice and consent of the senate.  At least two 
  6.12  of the five public members must have knowledge of and be 
  6.13  conversant in water management issues in the state.  
  6.14  Notwithstanding the provisions of section 15.06, subdivision 6, 
  6.15  members of the board may not delegate their powers and 
  6.16  responsibilities as board members to any other person. 
  6.17     Sec. 4.  Minnesota Statutes 1994, section 216A.01, is 
  6.18  amended to read: 
  6.19     216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION.] 
  6.20     There are is hereby created and established the department 
  6.21  of public service, and the public utilities commission.  The 
  6.22  department of public service utility consumers division of the 
  6.23  attorney general's office shall have and possess all of the 
  6.24  rights and powers and perform all of the duties vested in it by 
  6.25  this chapter.  The public utilities commission shall have and 
  6.26  possess all of the rights and powers and perform all of the 
  6.27  duties vested in it by this chapter, and those formerly vested 
  6.28  by law in the railroad and warehouse commission. 
  6.29     Sec. 5.  Minnesota Statutes 1994, section 216A.035, is 
  6.30  amended to read: 
  6.31     216A.035 [CONFLICT OF INTEREST.] 
  6.32     (a) No person, while a member of the public utilities 
  6.33  commission, while acting as executive secretary director of the 
  6.34  commission, or while employed in a professional capacity by the 
  6.35  commission, shall receive any income, other than dividends or 
  6.36  other earnings from a mutual fund or trust if these earnings do 
  7.1   not constitute a significant portion of the person's income, 
  7.2   directly or indirectly from any public utility or other 
  7.3   organization subject to regulation by the commission. 
  7.4      (b) No person is eligible to be appointed as a member of 
  7.5   the commission if the person has been employed with an entity, 
  7.6   or an affiliated company of an entity, that is subject to rate 
  7.7   regulation by the commission within one year from the date when 
  7.8   the person's term on the commission will begin. 
  7.9      (c) No person who is an employee of the public service 
  7.10  department utility consumers division of the attorney general's 
  7.11  office shall participate in any manner in any decision or action 
  7.12  of the commission where that person has a direct or indirect 
  7.13  financial interest.  Each commissioner or employee of the public 
  7.14  service department utility consumers division who is in the 
  7.15  general professional, supervisory, or technical units 
  7.16  established in section 179A.10 or who is a professional, 
  7.17  supervisory, or technical employee defined as confidential in 
  7.18  section 179A.03, subdivision 4, or who is a management 
  7.19  classification employee and whose duties are related to public 
  7.20  utilities or transportation regulation shall report to the 
  7.21  ethical practices board annually before April 15 any interest in 
  7.22  an industry or business regulated by the commission.  Each 
  7.23  commissioner shall file a statement of economic interest as 
  7.24  required by section 10A.09 with the ethical practices board and 
  7.25  the public utilities commission before taking office.  The 
  7.26  statement of economic interest must state any interest that the 
  7.27  commissioner has in an industry or business regulated by the 
  7.28  commission. 
  7.29     (d) A professional employee of the commission or department 
  7.30  must immediately disclose to the commission or to the 
  7.31  commissioner of the department, respectively, any communication, 
  7.32  direct or indirect, with a person who is a party to a pending 
  7.33  proceeding before the commission regarding future benefits, 
  7.34  compensation, or employment to be received from that person. 
  7.35     Sec. 6.  Minnesota Statutes 1994, section 216A.036, is 
  7.36  amended to read: 
  8.1      216A.036 [EMPLOYMENT RESTRICTIONS.] 
  8.2      (a) A person who serves as (1) a commissioner member of the 
  8.3   public utilities commission, (2) commissioner of the department 
  8.4   of public service, or (3) deputy commissioner of the department, 
  8.5   shall not, while employed with or within one year after leaving 
  8.6   the commission, or department, accept employment with, receive 
  8.7   compensation directly or indirectly from, or enter into a 
  8.8   contractual relationship with an entity, or an affiliated 
  8.9   company of an entity, that is subject to rate regulation by the 
  8.10  commission. 
  8.11     (b) An entity or an affiliated company of an entity that is 
  8.12  subject to rate regulation by the commission, or a person acting 
  8.13  on behalf of the entity, shall not negotiate or offer to employ 
  8.14  or compensate a commissioner of the public utilities commission, 
  8.15  the commissioner of public service, or the deputy commissioner, 
  8.16  while the person is so employed a member of the commission or 
  8.17  within one year after the person leaves that employment the 
  8.18  commission. 
  8.19     (c) For the purposes of this section, "affiliated company" 
  8.20  means a company that controls, is controlled by, or is under 
  8.21  common control with an entity subject to rate regulation by the 
  8.22  commission. 
  8.23     (d) A person who violates this section is subject to a 
  8.24  civil penalty not to exceed $10,000 for each violation.  The 
  8.25  attorney general may bring an action in district court to 
  8.26  collect the penalties provided in this section. 
  8.27     Sec. 7.  Minnesota Statutes 1994, section 216A.04, is 
  8.28  amended to read: 
  8.29     216A.04 [EXECUTIVE SECRETARY DIRECTOR; EMPLOYEES.] 
  8.30     Subdivision 1.  [SELECTION OF EXECUTIVE SECRETARY 
  8.31  DIRECTOR.] The commission shall appoint an executive secretary 
  8.32  director, not a member, who shall be in the unclassified service 
  8.33  of the state and shall serve at the pleasure of the commission.  
  8.34  The executive secretary director shall take, subscribe and file 
  8.35  an oath similar to that required of the commissioners, and shall 
  8.36  be subject to the same disqualifications as commissioners. 
  9.1      Subd. 1a.  [POWERS AND DUTIES OF EXECUTIVE SECRETARY 
  9.2   DIRECTOR.] The executive secretary director shall:  
  9.3      (1) cause to be kept full and correct records of all 
  9.4   transactions and proceedings of the commission; 
  9.5      (2) appoint, subject to chapter 43A and the approval of the 
  9.6   commission, the director of the energy division and all other 
  9.7   classified employees of the commission and supervise and direct 
  9.8   their activities; 
  9.9      (3) have custody of the seal of the commission; 
  9.10     (4) serve as the administrative officer of the commission 
  9.11  with responsibility for personnel, budget and other 
  9.12  administrative details related to the work of the commission or 
  9.13  as required by state law; 
  9.14     (5) prepare orders, reports, and other materials as 
  9.15  assigned by the commission and recommend to the commission such 
  9.16  measures as may be appropriate to achieve the objectives of the 
  9.17  commission; 
  9.18     (6) advise the commission of its financial position and 
  9.19  recommend a budget for its approval; and 
  9.20     (7) perform other duties as the commission directs.  
  9.21     Subd. 2.  [ACTING SECRETARY EXECUTIVE DIRECTOR.] The 
  9.22  commission may designate any responsible employee to serve as 
  9.23  acting secretary director in the absence of the secretary 
  9.24  director.  
  9.25     Subd. 3.  [OFFICERS AND EMPLOYEES.] The commission may 
  9.26  establish other positions in the unclassified service if the 
  9.27  positions meet the criteria of section 43A.08, subdivision 1a, 
  9.28  clauses (a) to (g).  The commission may employ other persons as 
  9.29  may be necessary to carry out its functions. 
  9.30     Hearing reporters may provide transcripts of proceedings 
  9.31  before the commission to persons requesting transcripts who pay 
  9.32  a reasonable charge therefor to the reporter.  The amount of the 
  9.33  charge shall be fixed by the commission and retained by the 
  9.34  reporter, any other law to the contrary notwithstanding. 
  9.35     Sec. 8.  Minnesota Statutes 1994, section 216A.05, is 
  9.36  amended by adding a subdivision to read: 
 10.1      Subd. 1a.  [ADMINISTRATIVE FUNCTIONS.] The commission shall 
 10.2   delegate to the executive director, to the greatest extent 
 10.3   practicable, performance of any administrative functions 
 10.4   assigned to the commission by the legislature. 
 10.5      Sec. 9.  Minnesota Statutes 1994, section 216A.07, is 
 10.6   amended to read: 
 10.7      216A.07 [COMMISSIONER EXECUTIVE DIRECTOR; POWERS AND 
 10.8   DUTIES.] 
 10.9      Subdivision 1.  [ADMINISTRATIVE DUTIES.] The commissioner 
 10.10  shall be the executive and administrative head of the public 
 10.11  service department and shall have and possess executive director 
 10.12  of the commission has and possesses all the rights and powers 
 10.13  and shall perform all the duties relating to the 
 10.14  administrative function of the department as functions set forth 
 10.15  in this chapter and chapters 216B and 237.  The commissioner 
 10.16  executive director may: 
 10.17     (1) prepare all forms or blanks for the purpose of 
 10.18  obtaining information which the commissioner may deem necessary 
 10.19  or useful in the proper exercise of the authority and duties of 
 10.20  the commissioner in connection with regulated businesses; 
 10.21     (2) prescribe the time and manner within which forms or 
 10.22  blanks shall be filed with the department; 
 10.23     (3) inspect at all reasonable times, and copy the books, 
 10.24  records, memoranda and correspondence or other documents and 
 10.25  records of any person relating to any regulated business; and 
 10.26     (4) cause the deposition to be taken of any person 
 10.27  concerning the business and affairs of any business regulated by 
 10.28  the department commission.  Information sought through said 
 10.29  deposition shall be for a lawfully authorized purpose and shall 
 10.30  be relevant and material to the investigation or hearing before 
 10.31  the commission.  Information obtained from said deposition shall 
 10.32  be used by the department commission only for a lawfully 
 10.33  authorized purpose and pursuant to powers and responsibilities 
 10.34  conferred upon the department commission.  Said deposition is to 
 10.35  be taken in the manner prescribed by law for taking depositions 
 10.36  in civil actions in the district court. 
 11.1      Subd. 2.  [ENFORCEMENT.] The commissioner executive 
 11.2   director is responsible for the enforcement of chapters 216A, 
 11.3   216B and 237 and the orders of the commission issued pursuant to 
 11.4   those chapters. 
 11.5      Subd. 3.  [INTERVENTION IN PROCEEDINGS.] The commissioner 
 11.6   may intervene as a party in all proceedings before the 
 11.7   commission.  When intervening in gas or electric hearings, the 
 11.8   commissioner shall prepare and defend testimony designed to 
 11.9   encourage energy conservation improvements as defined in section 
 11.10  216B.241.  The attorney general shall act as counsel in the 
 11.11  proceedings.  
 11.12     Subd. 4.  [INVESTIGATIONS.] The commissioner executive 
 11.13  director may, on the commissioner's executive director's own 
 11.14  initiative, investigate any matter subject to the jurisdiction 
 11.15  of the department or commission.  
 11.16     Subd. 5.  [RULEMAKING.] The commissioner executive director 
 11.17  shall make substantive and procedural rules to implement the 
 11.18  provisions of this chapter and chapters 216B and 237.  Rules 
 11.19  adopted under this authority shall be promulgated pursuant to 
 11.20  the administrative procedure act and shall have the force and 
 11.21  effect of law.  
 11.22     Sec. 10.  Minnesota Statutes 1994, section 216A.085, is 
 11.23  amended to read: 
 11.24     216A.085 [ENERGY ISSUES INTERVENTION OFFICE.] 
 11.25     Subdivision 1.  [CREATION.] There is created within the 
 11.26  department of public service energy division of the public 
 11.27  utilities commission an intervention office to represent the 
 11.28  interests of Minnesota residents, businesses, and governments 
 11.29  before bodies and agencies outside the state that make, 
 11.30  interpret, or implement national and international energy policy.
 11.31     Subd. 2.  [DUTIES.] The intervention office shall determine 
 11.32  those areas in which state intervention is most needed, most 
 11.33  likely to have a positive impact, and most effective for the 
 11.34  broad public interest of the state.  The office shall seek 
 11.35  recommendations from appropriate public and private sources 
 11.36  before deciding which cases merit intervention.  
 12.1      Subd. 3.  [STAFFING.] The intervention office shall be 
 12.2   under the control and supervision of the commissioner of the 
 12.3   department of public service director of the energy 
 12.4   division.  On approval by the executive director of the 
 12.5   commission, the commissioner director may hire staff or contract 
 12.6   for outside services as needed to carry out the purposes of this 
 12.7   section.  The attorney general shall act as counsel in all 
 12.8   intervention proceedings.  
 12.9      Sec. 11.  Minnesota Statutes 1994, section 216A.095, is 
 12.10  amended to read: 
 12.11     216A.095 [INTERAGENCY COOPERATION BETWEEN DEPARTMENT AND 
 12.12  COMMISSION.] 
 12.13     Nothing in this chapter prevents the department attorney 
 12.14  general or the commission from entering into agreements with 
 12.15  each other or with other agencies to coordinate and share 
 12.16  services, to conduct joint projects or investigations on matters 
 12.17  within the authority and jurisdiction of the parties thereto, or 
 12.18  to temporarily assign staff to projects requested by each other 
 12.19  or by other agencies.  The cooperative agreements may provide 
 12.20  for the sharing of costs between the parties thereto or the 
 12.21  reimbursement of the department or commission operating budget 
 12.22  for expenditures made on behalf of the department or commission 
 12.23  or agency.  No cooperative effort shall interfere with the 
 12.24  independence and integrity of either the commission or the 
 12.25  department or any other agency that is a party.  
 12.26     Sec. 12.  Minnesota Statutes 1994, section 216B.02, 
 12.27  subdivision 7, is amended to read: 
 12.28     Subd. 7.  [COMMISSION.] "Commission" means the public 
 12.29  utilities commission of the department of public service. 
 12.30     Sec. 13.  Minnesota Statutes 1994, section 216B.02, is 
 12.31  amended by adding a subdivision to read: 
 12.32     Subd. 8a.  [DIRECTOR.] "Director" means the director of the 
 12.33  energy division. 
 12.34     Sec. 14.  Minnesota Statutes 1994, section 216B.02, is 
 12.35  amended by adding a subdivision to read: 
 12.36     Subd. 8b.  [ENERGY DIVISION.] "Energy division" means the 
 13.1   energy division established in chapter 216C. 
 13.2      Sec. 15.  Minnesota Statutes 1994, section 216B.02, is 
 13.3   amended by adding a subdivision to read: 
 13.4      Subd. 8c.  [EXECUTIVE DIRECTOR.] "Executive director" means 
 13.5   the executive director of the public utilities commission. 
 13.6      Sec. 16.  Minnesota Statutes 1994, section 216B.16, 
 13.7   subdivision 2, is amended to read: 
 13.8      Subd. 2.  [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 
 13.9   DETERMINATION DEFINED.] (a) Whenever there is filed with the 
 13.10  commission a schedule modifying or resulting in a change in any 
 13.11  rates then in force as provided in subdivision 1, the commission 
 13.12  may suspend the operation of the schedule by filing with the 
 13.13  schedule of rates and delivering to the affected utility a 
 13.14  statement in writing of its reasons for the suspension at any 
 13.15  time before the rates become effective.  The suspension shall 
 13.16  not be for a longer period than ten months beyond the initial 
 13.17  filing date except as provided in this subdivision or 
 13.18  subdivision 1a.  During the suspension the commission shall 
 13.19  determine whether all questions of the reasonableness of the 
 13.20  rates requested raised by persons deemed interested or by the 
 13.21  administrative division of the department of public 
 13.22  service utility consumers division of the attorney general's 
 13.23  office can be resolved to the satisfaction of the commission.  
 13.24  If the commission finds that all significant issues raised have 
 13.25  not been resolved to its satisfaction, or upon petition by ten 
 13.26  percent of the affected customers or 250 affected customers, 
 13.27  whichever is less, it shall refer the matter to the office of 
 13.28  administrative hearings with instructions for a public hearing 
 13.29  as a contested case pursuant to chapter 14, except as otherwise 
 13.30  provided in this section.  The commission may order that the 
 13.31  issues presented by the proposed rate changes be bifurcated into 
 13.32  two separate hearings as follows:  (1) determination of the 
 13.33  utility's revenue requirements and (2) determination of the rate 
 13.34  design.  Upon issuance of both administrative law judge reports, 
 13.35  the issues shall again be joined for consideration and final 
 13.36  determination by the commission.  All prehearing discovery 
 14.1   activities of state agency intervenors shall be consolidated and 
 14.2   conducted by the department of public service.  If the 
 14.3   commission does not make a final determination concerning a 
 14.4   schedule of rates within ten months after the initial filing 
 14.5   date, the schedule shall be deemed to have been approved by the 
 14.6   commission; except if: 
 14.7      (1) an extension of the procedural schedule has been 
 14.8   granted under subdivision 1a, in which case the schedule of 
 14.9   rates is deemed to have been approved by the commission on the 
 14.10  last day of the extended period of suspension; or 
 14.11     (2) a settlement has been submitted to and rejected by the 
 14.12  commission and the commission does not make a final 
 14.13  determination concerning the schedule of rates, the schedule of 
 14.14  rates is deemed to have been approved 60 days after the initial 
 14.15  or, if applicable, the extended period of suspension. 
 14.16     (b) If the commission finds that it has insufficient time 
 14.17  during the suspension period to make a final determination of a 
 14.18  case involving changes in general rates because of the need to 
 14.19  make final determinations of other previously filed cases 
 14.20  involving changes in general rates under this section or section 
 14.21  237.075, the commission may extend the suspension period to the 
 14.22  extent necessary to allow itself 20 working days to make the 
 14.23  final determination after it has made final determinations in 
 14.24  the previously filed cases.  An extension of the suspension 
 14.25  period under this paragraph does not alter the setting of 
 14.26  interim rates under subdivision 3. 
 14.27     (c) For the purposes of this section, "final determination" 
 14.28  means the initial decision of the commission and not any order 
 14.29  which may be entered by the commission in response to a petition 
 14.30  for rehearing or other further relief.  The commission may 
 14.31  further suspend rates until it determines all those petitions. 
 14.32     Sec. 17.  Minnesota Statutes 1994, section 216B.162, 
 14.33  subdivision 7, is amended to read: 
 14.34     Subd. 7.  [COMMISSION DETERMINATION.] Except as provided 
 14.35  under subdivision 6, competitive rates offered by electric 
 14.36  utilities under this section must be filed with the commission 
 15.1   and must be approved, modified, or rejected by the commission 
 15.2   within 90 days.  The utility's filing must include statements of 
 15.3   fact demonstrating that the proposed rates meet the standards of 
 15.4   this subdivision.  The filing must be served on the department 
 15.5   of public service and the office of the attorney general at the 
 15.6   same time as it is served on the commission.  In reviewing a 
 15.7   specific rate proposal, the commission shall determine: 
 15.8      (1) that the rate meets the terms and conditions in 
 15.9   subdivision 4, unless the commission determines that waiver of 
 15.10  one or more terms and conditions would be in the public 
 15.11  interest; 
 15.12     (2) that the consumer can obtain its energy requirements 
 15.13  from an energy supplier not rate-regulated by the commission 
 15.14  under section 216B.16; 
 15.15     (3) that the customer is not likely to take service from 
 15.16  the electric utility seeking to offer the competitive rate if 
 15.17  the customer was charged the electric utility's standard 
 15.18  tariffed rate; and 
 15.19     (4) that after consideration of environmental and 
 15.20  socioeconomic impacts it is in the best interest of all other 
 15.21  customers to offer the competitive rate to the customer subject 
 15.22  to effective competition. 
 15.23     If the commission approves the competitive rate, it becomes 
 15.24  effective as agreed to by the electric utility and the 
 15.25  customer.  If the competitive rate is modified by the 
 15.26  commission, the commission shall issue an order modifying the 
 15.27  competitive rate subject to the approval of the electric utility 
 15.28  and the customer.  Each party has ten days in which to reject 
 15.29  the proposed modification.  If no party rejects the proposed 
 15.30  modification, the commissioner's order becomes final.  If either 
 15.31  party rejects the commission's proposed modification, the 
 15.32  electric utility, on its behalf or on the behalf of the 
 15.33  customer, may submit to the commission a modified version of the 
 15.34  commission's proposal.  The commission shall accept or reject 
 15.35  the modified version within 30 days.  If the commission rejects 
 15.36  the competitive rate, it shall issue an order indicating the 
 16.1   reasons for the rejection. 
 16.2      Sec. 18.  Minnesota Statutes 1994, section 216B.241, 
 16.3   subdivision 1, is amended to read: 
 16.4      Subdivision 1.  [DEFINITIONS.] For purposes of this 
 16.5   section, the terms defined in this subdivision have the meanings 
 16.6   given them.  
 16.7      (a) "Commission" means the public utilities commission. 
 16.8      (b) "Commissioner" "Director" means the commissioner of 
 16.9   public service director of the energy division. 
 16.10     (c) "Department" "Division" means the department of public 
 16.11  service energy division. 
 16.12     (d) "Energy conservation improvement" means the purchase or 
 16.13  installation of a device, method, or material that reduces 
 16.14  consumption of or increases efficiency in the use of electricity 
 16.15  or natural gas, including, but not limited to: 
 16.16     (1) insulation and ventilation; 
 16.17     (2) storm or thermal doors or windows; 
 16.18     (3) caulking and weatherstripping; 
 16.19     (4) furnace efficiency modifications; 
 16.20     (5) thermostat or lighting controls; 
 16.21     (6) awnings; or 
 16.22     (7) systems to turn off or vary the delivery of energy.  
 16.23  The term "energy conservation improvement" includes a device or 
 16.24  method that creates, converts, or actively uses energy from 
 16.25  renewable sources such as solar, wind, and biomass, provided 
 16.26  that the device or method conforms with national or state 
 16.27  performance and quality standards whenever applicable.  
 16.28     (e) "Investments and expenses of a public utility" includes 
 16.29  the investments and expenses incurred by a public utility in 
 16.30  connection with an energy conservation improvement including, 
 16.31  but not limited to:  
 16.32     (1) the differential in interest cost between the market 
 16.33  rate and the rate charged on a no interest or below market 
 16.34  interest loan made by a public utility to a customer for the 
 16.35  purchase or installation of an energy conservation improvement; 
 16.36     (2) the difference between the utility's cost of purchase 
 17.1   or installation of energy conservation improvements and any 
 17.2   price charged by a public utility to a customer for such 
 17.3   improvements.  
 17.4      Sec. 19.  Minnesota Statutes 1994, section 216B.241, 
 17.5   subdivision 2, is amended to read: 
 17.6      Subd. 2.  [PROGRAMS.] The commissioner director may by rule 
 17.7   require public utilities to make investments and expenditures in 
 17.8   energy conservation improvements, explicitly setting forth the 
 17.9   interest rates, prices, and terms under which the improvements 
 17.10  must be offered to the customers.  The required programs must 
 17.11  cover a two-year period.  The commissioner director shall 
 17.12  require at least one public utility to establish a pilot program 
 17.13  to make investments in and expenditures for energy from 
 17.14  renewable resources such as solar, wind, or biomass and shall 
 17.15  give special consideration and encouragement to programs that 
 17.16  bring about significant net savings through the use of 
 17.17  energy-efficient lighting.  The commissioner director shall 
 17.18  evaluate the program on the basis of cost-effectiveness and the 
 17.19  reliability of technologies employed.  The rules of 
 17.20  the department division must provide to the extent practicable 
 17.21  for a free choice, by consumers participating in the program, of 
 17.22  the device, method, or material constituting the energy 
 17.23  conservation improvement and for a free choice of the seller, 
 17.24  installer, or contractor of the energy conservation improvement, 
 17.25  provided that the device, method, material, seller, installer, 
 17.26  or contractor is duly licensed, certified, approved, or 
 17.27  qualified, including under the residential conservation services 
 17.28  program, where applicable.  The commissioner director may 
 17.29  require a utility to make an energy conservation improvement 
 17.30  investment or expenditure whenever the commissioner director 
 17.31  finds that the improvement will result in energy savings at a 
 17.32  total cost to the utility less than the cost to the utility to 
 17.33  produce or purchase an equivalent amount of new supply of 
 17.34  energy.  The commissioner director shall nevertheless ensure 
 17.35  that every public utility operate one or more programs under 
 17.36  periodic review by the department.  Load management may be used 
 18.1   to meet the requirements for energy conservation improvements 
 18.2   under this section if it results in a demonstrable reduction in 
 18.3   consumption of energy.  The commissioner director shall consider 
 18.4   and may require a utility to undertake a program suggested by an 
 18.5   outside source, including a political subdivision or a nonprofit 
 18.6   or community organization.  No utility may make an energy 
 18.7   conservation improvement under this section to a building 
 18.8   envelope unless: 
 18.9      (1) it is the primary supplier of energy used for either 
 18.10  space heating or cooling in the building; 
 18.11     (2) the commissioner director determines that special 
 18.12  circumstances, which would unduly restrict the availability of 
 18.13  conservation programs, warrant otherwise; or 
 18.14     (3) the utility has been awarded a contract under 
 18.15  subdivision 2a. 
 18.16     The commissioner director shall ensure that a portion of 
 18.17  the money spent on residential conservation improvement programs 
 18.18  is devoted to programs that directly address the needs of 
 18.19  renters and low-income persons unless an insufficient number of 
 18.20  appropriate programs are available. 
 18.21     A utility, a political subdivision, or a nonprofit or 
 18.22  community organization that has suggested a program, the 
 18.23  attorney general acting on behalf of consumers and small 
 18.24  business interests, or a utility customer that has suggested a 
 18.25  program and is not represented by the attorney general under 
 18.26  section 8.33, may petition the commission to modify or revoke a 
 18.27  department division decision under this section, and the 
 18.28  commission may do so if it determines that the program is not 
 18.29  cost-effective, does not adequately address the residential 
 18.30  conservation improvement needs of low-income persons, has a 
 18.31  long-range negative effect on one or more classes of customers, 
 18.32  or is otherwise not in the public interest.  The person 
 18.33  petitioning for commission review has the burden of proof.  The 
 18.34  commission shall reject a petition that, on its face, fails to 
 18.35  make a reasonable argument that a program is not in the public 
 18.36  interest. 
 19.1      Sec. 20.  Minnesota Statutes 1994, section 216B.62, is 
 19.2   amended to read: 
 19.3      216B.62 [REGULATORY EXPENSES.] 
 19.4      Subd. 2.  [ASSESSING SPECIFIC UTILITY.] Whenever the 
 19.5   attorney general or the commission or department, in a 
 19.6   proceeding upon its the commission's own motion, on complaint, 
 19.7   or upon an application to it, shall deem it necessary, in order 
 19.8   to carry out the duties imposed under this chapter and section 
 19.9   216A.085, to investigate the books, accounts, practices, and 
 19.10  activities of, or make appraisals of the property of any public 
 19.11  utility, or to render any engineering or accounting services to 
 19.12  any public utility, or to intervene before an energy regulatory 
 19.13  agency, the public utility shall pay the expenses reasonably 
 19.14  attributable to the investigation, appraisal, service, or 
 19.15  intervention.  The attorney general and commission and 
 19.16  department shall ascertain the expenses, and the 
 19.17  department attorney general or commission shall render a bill 
 19.18  therefor to the public utility, either at the conclusion of the 
 19.19  investigation, appraisal, or services, or from time to time 
 19.20  during its progress, which bill shall constitute notice of the 
 19.21  assessment and a demand for payment.  The amount of the bills so 
 19.22  rendered by the department shall be paid by the public utility 
 19.23  into the state treasury within 30 days from the date of 
 19.24  rendition.  The total amount, in any one calendar year, for 
 19.25  which any public utility shall become liable, by reason of costs 
 19.26  incurred by the attorney general or commission within that 
 19.27  calendar year, shall not exceed two-fifths of one percent of the 
 19.28  gross operating revenue from retail sales of gas, or electric 
 19.29  service by the public utility within the state in the last 
 19.30  preceding calendar year.  Where, pursuant to this subdivision, 
 19.31  costs are incurred within any calendar year which are in excess 
 19.32  of two-fifths of one percent of the gross operating revenues, 
 19.33  the excess costs shall not be chargeable as part of the 
 19.34  remainder under subdivision 3, but shall be paid out of the 
 19.35  general appropriation to the department attorney general and 
 19.36  commission.  In the case of public utilities offering more than 
 20.1   one public utility service only the gross operating revenues 
 20.2   from the public utility service in connection with which the 
 20.3   investigation is being conducted shall be considered when 
 20.4   determining this limitation. 
 20.5      Subd. 3.  [ASSESSING ALL PUBLIC UTILITIES.] (a) The 
 20.6   department attorney general and commission shall quarterly, at 
 20.7   least 30 days before the start of each quarter, estimate the 
 20.8   total of their expenditures in the performance of their duties 
 20.9   relating to (1) public utilities under section 216A.085, 
 20.10  sections 216B.01 to 216B.67, other than amounts chargeable to 
 20.11  public utilities under subdivision 2 or 6, and alternative 
 20.12  energy engineering activity under section 216C.261.  The 
 20.13  remainder, except the amount assessed against cooperatives and 
 20.14  municipalities for alternative energy engineering activity under 
 20.15  subdivision 5, shall be assessed by the attorney general and 
 20.16  commission and department to the several public utilities in 
 20.17  proportion to their respective gross operating revenues from 
 20.18  retail sales of gas or electric service within the state during 
 20.19  the last calendar year.  The assessment shall be paid into the 
 20.20  state treasury within 30 days after the bill has been mailed to 
 20.21  the several public utilities, which shall constitute notice of 
 20.22  the assessment and demand of payment thereof.  The total amount 
 20.23  which may be assessed to the public utilities, under authority 
 20.24  of this subdivision, shall not exceed one-sixth of one percent 
 20.25  of the total gross operating revenues of the public utilities 
 20.26  during the calendar year from retail sales of gas or electric 
 20.27  service within the state.  The assessment for the third quarter 
 20.28  of each fiscal year shall be adjusted to compensate for the 
 20.29  amount by which actual expenditures by the attorney general and 
 20.30  commission and department for the preceding fiscal year were 
 20.31  more or less than the estimated expenditures previously assessed.
 20.32     Subd. 4.  [OBJECTIONS.] Within 30 days after the date of 
 20.33  the mailing of any bill as provided by subdivisions 2 and 3, the 
 20.34  public utility against which the bill has been rendered may file 
 20.35  with the commission objections setting out the grounds upon 
 20.36  which it is claimed the bill is excessive, erroneous, unlawful 
 21.1   or invalid.  The commission shall within 60 days hold a hearing 
 21.2   and issue an order in accordance with its findings.  The order 
 21.3   shall be appealable in the same manner as other final orders of 
 21.4   the commission. 
 21.5      Subd. 5.  [ASSESSING COOPERATIVES AND MUNICIPALS.] The 
 21.6   attorney general and commission and department may charge 
 21.7   cooperative electric associations and municipal electric 
 21.8   utilities their proportionate share of the expenses incurred in 
 21.9   the review and disposition of resource plans, adjudication of 
 21.10  service area disputes and the costs incurred in the adjudication 
 21.11  of complaints over service standards, practices, and rates.  
 21.12  Cooperative electric associations electing to become subject to 
 21.13  rate regulation by the commission pursuant to section 216B.026, 
 21.14  subdivision 4, are also subject to this section.  Neither a 
 21.15  cooperative electric association nor a municipal electric 
 21.16  utility is liable for costs and expenses in a calendar year in 
 21.17  excess of the limitation on costs that may be assessed against 
 21.18  public utilities under subdivision 2.  A cooperative electric 
 21.19  association or municipal electric utility may object to and 
 21.20  appeal bills of the commission and department as provided in 
 21.21  subdivision 4.  
 21.22     The department shall assess cooperatives and municipalities 
 21.23  for the costs of alternative energy engineering activities under 
 21.24  section 216C.261.  Each cooperative and municipality shall be 
 21.25  assessed in proportion that its gross operating revenues for the 
 21.26  sale of gas and electric service within the state for the last 
 21.27  calendar year bears to the total of those revenues for all 
 21.28  public utilities, cooperatives, and municipalities. 
 21.29     Subd. 6.  [ADMINISTRATIVE HEARING COSTS.] Any amounts 
 21.30  billed to the attorney general or commission or the department 
 21.31  by the office of administrative hearings for public utility 
 21.32  contested case hearings shall be assessed by the commission or 
 21.33  the department or attorney general against the public utility.  
 21.34  The assessment shall be paid into the state treasury within 30 
 21.35  days after a bill, which constitutes notice of the assessment 
 21.36  and demand for payment of it, has been mailed to the public 
 22.1   utility.  Money received shall be credited to a special account 
 22.2   and is appropriated to the attorney general or commission or the 
 22.3   department for payment to the office of administrative hearings. 
 22.4      Sec. 21.  Minnesota Statutes 1994, section 216B.64, is 
 22.5   amended to read: 
 22.6      216B.64 [ATTORNEY GENERAL'S RESPONSIBILITIES.] 
 22.7      The attorney general of the state shall, upon request of 
 22.8   the commission or department, represent and appear for the 
 22.9   commission or department in all actions and proceedings 
 22.10  involving any question under Laws 1974, chapter 429, and shall 
 22.11  aid in any investigation or hearing had under the provisions of 
 22.12  Laws 1974, chapter 429.  The attorney general shall perform all 
 22.13  duties and services in connection with Laws 1974, chapter 429 
 22.14  and the enforcement thereof as the commission or department may 
 22.15  require.  The attorney general shall also bring all actions to 
 22.16  collect penalties herein provided. 
 22.17     Sec. 22.  Minnesota Statutes 1994, section 216B.65, is 
 22.18  amended to read: 
 22.19     216B.65 [DEPARTMENT COMMISSION TO EMPLOY NECESSARY STAFF.] 
 22.20     The department commission may employ experts, engineers, 
 22.21  statisticians, accountants, inspectors, clerks, hearing 
 22.22  examiners who may be attorneys and employees it deems necessary 
 22.23  to carry out the provisions of Laws 1974, chapter 429.  
 22.24     Sec. 23.  Minnesota Statutes 1994, section 216C.01, 
 22.25  subdivision 2, is amended to read: 
 22.26     Subd. 2.  [COMMISSIONER COMMISSION.] "Commissioner" means 
 22.27  the commissioner of the department of public 
 22.28  service "Commission" means the public utilities commission. 
 22.29     Sec. 24.  Minnesota Statutes 1994, section 216C.01, 
 22.30  subdivision 3, is amended to read: 
 22.31     Subd. 3.  [DEPARTMENT DIRECTOR.] "Department" means the 
 22.32  department of public service "Director" means the director of 
 22.33  the division of energy in the public utilities commission. 
 22.34     Sec. 25.  Minnesota Statutes 1994, section 216C.01, is 
 22.35  amended by adding a subdivision to read: 
 22.36     Subd. 3a.  [EXECUTIVE DIRECTOR.] "Executive director" means 
 23.1   the executive director of the public utilities commission. 
 23.2      Sec. 26.  [216C.011] [DIVISION OF ENERGY.] 
 23.3      A division of energy is established in the public utilities 
 23.4   commission under the control and supervision of a director, 
 23.5   appointed by the executive director and serving at the pleasure 
 23.6   of the executive director in the unclassified service.  The 
 23.7   director shall employ in the division personnel in the 
 23.8   classified service necessary to carry out the duties under this 
 23.9   chapter. 
 23.10     Sec. 27.  Minnesota Statutes 1994, section 216C.10, is 
 23.11  amended to read: 
 23.12     216C.10 [POWERS.] 
 23.13     The commissioner director may: 
 23.14     (1) adopt rules under chapter 14 as necessary to carry out 
 23.15  the purposes of sections 216C.05 to 216C.30 and, when necessary 
 23.16  for the purposes of section 216C.15, adopt emergency rules under 
 23.17  sections 14.29 to 14.36; 
 23.18     (2) make all contracts under sections 216C.05 to 216C.30 
 23.19  and do all things necessary to cooperate with the United States 
 23.20  government, and to qualify for, accept, and disburse any grant 
 23.21  intended for the administration of sections 216C.05 to 216C.30; 
 23.22     (3) provide on-site technical assistance to units of local 
 23.23  government in order to enhance local capabilities for dealing 
 23.24  with energy problems; 
 23.25     (4) administer for the state, energy programs under federal 
 23.26  law, regulations, or guidelines, except for the low-income home 
 23.27  energy assistance program and low-income weatherization programs 
 23.28  administered by the department of economic security, and 
 23.29  coordinate the programs and activities with other state 
 23.30  agencies, units of local government, and educational 
 23.31  institutions; 
 23.32     (5) develop a state energy investment plan with yearly 
 23.33  energy conservation and alternative energy development goals, 
 23.34  investment targets, and marketing strategies; 
 23.35     (6) perform market analysis studies relating to 
 23.36  conservation, alternative and renewable energy resources, and 
 24.1   energy recovery; 
 24.2      (7) assist with the preparation of proposals for innovative 
 24.3   conservation, renewable, alternative, or energy recovery 
 24.4   projects; 
 24.5      (8) manage and disburse funds made available for the 
 24.6   purpose of research studies or demonstration projects related to 
 24.7   energy conservation or other activities deemed appropriate by 
 24.8   the commissioner; 
 24.9      (9) intervene appear in certificate of need proceedings 
 24.10  before the public utilities commission; 
 24.11     (10) collect fees from recipients of loans, grants, or 
 24.12  other financial aid from money received from litigation or 
 24.13  settlement of alleged violations of federal petroleum pricing 
 24.14  regulations, which fees must be used to pay the department's 
 24.15  costs in administering those financial aids; and 
 24.16     (11) collect fees from proposers and operators of 
 24.17  conservation and other energy-related programs that are 
 24.18  reviewed, evaluated, or approved by the department, other than 
 24.19  proposers that are political subdivisions or community or 
 24.20  nonprofit organizations, to cover the department's cost in 
 24.21  making the reviewal, evaluation, or approval and in developing 
 24.22  additional programs for others to operate. 
 24.23     Notwithstanding any other law, the commissioner is 
 24.24  designated the state agent to apply for, receive, and accept 
 24.25  federal or other funds made available to the state for the 
 24.26  purposes of sections 216C.05 to 216C.30. 
 24.27     Sec. 28.  Minnesota Statutes 1994, section 216C.37, 
 24.28  subdivision 1, is amended to read: 
 24.29     Subdivision 1.  [DEFINITIONS.] In this section:  
 24.30     (a) "Commissioner" "Authority" means the commissioner of 
 24.31  public service Minnesota public facilities authority. 
 24.32     (b) "Energy conservation investments" means all capital 
 24.33  expenditures that are associated with conservation measures 
 24.34  identified in an energy project study, and that have a ten-year 
 24.35  or less payback period.  
 24.36     (c) "Municipality" means any county, statutory or home rule 
 25.1   charter city, town, school district, or any combination of those 
 25.2   units operating under an agreement to jointly undertake projects 
 25.3   authorized in this section.  
 25.4      (d) "Energy project study" means a study of one or more 
 25.5   energy-related capital improvement projects analyzed in 
 25.6   sufficient detail to support a financing application.  At a 
 25.7   minimum, it must include one year of energy consumption and cost 
 25.8   data, a description of existing conditions, a description of 
 25.9   proposed conditions, a detailed description of the costs of the 
 25.10  project, and calculations sufficient to document the proposed 
 25.11  energy savings. 
 25.12     Sec. 29.  Minnesota Statutes 1994, section 237.02, is 
 25.13  amended to read: 
 25.14     237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 
 25.15  DEFINITIONS.] 
 25.16     The department of public service and the public utilities 
 25.17  commission, now existing under the laws of this state, are is 
 25.18  hereby vested with the same jurisdiction and supervisory power 
 25.19  over telephone companies doing business in this state as it now 
 25.20  has over railroad and express companies and over public 
 25.21  utilities under chapter 216B.  The definitions set forth 
 25.22  in section sections 216A.02 shall and 216B.02 apply also to this 
 25.23  chapter. 
 25.24     Sec. 30.  Minnesota Statutes 1994, section 237.075, 
 25.25  subdivision 2, is amended to read: 
 25.26     Subd. 2.  [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 
 25.27  DETERMINATION DEFINED.] (a) Whenever there is filed with the 
 25.28  commission as provided in subdivision 1 a schedule modifying or 
 25.29  resulting in a change in any rate then in force, the commission 
 25.30  may suspend the operation of the schedule by filing with the 
 25.31  schedule of rates and delivering to the affected telephone 
 25.32  company a statement in writing of its reasons for the suspension 
 25.33  at any time before the rates become effective.  The suspension 
 25.34  shall not be for a longer period than ten months beyond the 
 25.35  initial filing date except as provided in paragraph (b).  During 
 25.36  the suspension the commission shall determine whether all 
 26.1   questions of the reasonableness of the rates requested raised by 
 26.2   persons deemed interested or by the administrative division of 
 26.3   the department of public service utility consumers division of 
 26.4   the attorney general's office can be resolved to the 
 26.5   satisfaction of the commission.  If the commission finds that 
 26.6   all significant issues raised have not been resolved to its 
 26.7   satisfaction, or upon petition by ten percent of the affected 
 26.8   customers or 250 affected customers, whichever is less, it shall 
 26.9   refer the matter to the office of administrative hearings with 
 26.10  instructions for a public hearing as a contested case pursuant 
 26.11  to chapter 14, except as otherwise provided in this section.  
 26.12  The commission may order that the issues presented by the 
 26.13  proposed rate changes be bifurcated into two separate hearings 
 26.14  as follows:  (1) determination of the telephone company's 
 26.15  revenue requirements and (2) determination of the rate design.  
 26.16  Upon issuance of both administrative law judge reports, the 
 26.17  issues shall again be joined for consideration and final 
 26.18  determination by the commission.  All prehearing discovery 
 26.19  activities of state agency intervenors shall be consolidated and 
 26.20  conducted by the department of public service utility consumers 
 26.21  division.  If the commission does not make a final determination 
 26.22  concerning a schedule of rates within ten months after the 
 26.23  initial filing date, the schedule shall be deemed to have been 
 26.24  approved by the commission; except if a settlement has been 
 26.25  submitted to and rejected by the commission, the schedule is 
 26.26  deemed to have been approved 12 months after the initial filing. 
 26.27     (b) If the commission finds that it has insufficient time 
 26.28  during the suspension period to make a final determination of a 
 26.29  case involving changes in general rates because of the need to 
 26.30  make final determinations of other previously filed cases 
 26.31  involving changes in general rates under this section or section 
 26.32  216B.16, the commission may extend the suspension period to the 
 26.33  extent necessary to allow itself 20 working days to make the 
 26.34  final determination after it has made final determinations in 
 26.35  the previously filed cases.  An extension of the suspension 
 26.36  period under this paragraph does not alter the setting of 
 27.1   interim rates under subdivision 3. 
 27.2      (c) For the purposes of this section, "final determination" 
 27.3   means the initial decision of the commission and not any order 
 27.4   which may be entered by the commission in response to a petition 
 27.5   for rehearing or other further relief.  The commission may 
 27.6   further suspend rates until it determines all those petitions. 
 27.7      Sec. 31.  Minnesota Statutes 1994, section 237.295, is 
 27.8   amended to read: 
 27.9      237.295 [ASSESSMENT OF REGULATORY EXPENSES.] 
 27.10     Subdivision 1.  [PAYMENT FOR INVESTIGATIONS.] Whenever 
 27.11  the department attorney general or commission, in a proceeding 
 27.12  upon its own motion, on complaint, or upon an application to it, 
 27.13  considers it necessary, in order to carry out the duties imposed 
 27.14  on it, to investigate the books, accounts, practices, and 
 27.15  activities of, or make appraisals of the property of, a 
 27.16  telephone company, or to render engineering or accounting 
 27.17  services to a telephone company, the telephone company shall pay 
 27.18  the expenses reasonably attributable to the investigation, 
 27.19  appraisal, or service.  The department attorney general and 
 27.20  commission shall ascertain the expenses, and the 
 27.21  department attorney general shall render a bill for those 
 27.22  expenses to the telephone company, either at the conclusion of 
 27.23  the investigation, appraisal, or services, or from time to time 
 27.24  during its progress.  The bill constitutes notice of the 
 27.25  assessment and a demand for payment.  The amount of the bills 
 27.26  assessed by the department under this subdivision must be paid 
 27.27  by the telephone company into the state treasury within 30 days 
 27.28  from the date of assessment.  The total amount, in a calendar 
 27.29  year, for which a telephone company may become liable, by reason 
 27.30  of costs incurred by the department attorney general and 
 27.31  commission within that calendar year, may not exceed two-fifths 
 27.32  of one percent of the gross jurisdictional operating revenue of 
 27.33  the telephone company in the last preceding calendar year.  
 27.34  Direct charges may be assessed without regard to this limitation 
 27.35  until the gross jurisdictional operating revenue of the 
 27.36  telephone company for the preceding calendar year has been 
 28.1   reported for the first time.  Where, under this subdivision, 
 28.2   costs are incurred within a calendar year that are in excess of 
 28.3   two-fifths of one percent of the gross jurisdictional operating 
 28.4   revenues, the excess costs are not chargeable as part of the 
 28.5   remainder under subdivision 2, but must be paid out of the 
 28.6   general appropriation of the department attorney general or 
 28.7   commission. 
 28.8      Subd. 2.  [ASSESSMENT OF COSTS.] The department attorney 
 28.9   general and commission shall quarterly, at least 30 days before 
 28.10  the start of each quarter, estimate the total of their 
 28.11  expenditures in the performance of their duties relating to 
 28.12  telephone companies, other than amounts chargeable to telephone 
 28.13  companies under subdivision 1, 5, or 6.  The remainder must be 
 28.14  assessed by the department to the telephone companies operating 
 28.15  in this state in proportion to their respective gross 
 28.16  jurisdictional operating revenues during the last calendar 
 28.17  year.  The assessment must be paid into the state treasury 
 28.18  within 30 days after the bill has been mailed to the telephone 
 28.19  companies.  The bill constitutes notice of the assessment and 
 28.20  demand of payment.  The total amount that may be assessed to the 
 28.21  telephone companies under this subdivision may not exceed 
 28.22  one-eighth of one percent of the total gross jurisdictional 
 28.23  operating revenues during the calendar year.  The assessment for 
 28.24  the third quarter of each fiscal year must be adjusted to 
 28.25  compensate for the amount by which actual expenditures by 
 28.26  the attorney general and commission and department for the 
 28.27  preceding fiscal year were more or less than the estimated 
 28.28  expenditures previously assessed.  A telephone company with 
 28.29  gross jurisdictional operating revenues of less than $5,000 is 
 28.30  exempt from assessments under this subdivision. 
 28.31     Subd. 3.  [OBJECTIONS.] Within 30 days after the date of 
 28.32  the mailing of any bill as provided by subdivisions 1 and 2, the 
 28.33  telephone company against which the bill has been assessed may 
 28.34  file with the commission objections setting out the grounds upon 
 28.35  which it is claimed the bill is excessive, erroneous, unlawful 
 28.36  or invalid.  The commission shall within 60 days provide for a 
 29.1   contested case hearing and issue an order in accordance with its 
 29.2   findings.  The order shall be appealable in the same manner as 
 29.3   other final orders of the commission. 
 29.4      Subd. 4.  [INTEREST IMPOSED.] The amounts assessed against 
 29.5   any telephone company not paid after 30 days after the mailing 
 29.6   of a notice advising the telephone company of the amount 
 29.7   assessed against it, shall draw interest at the rate of six 
 29.8   percent per annum, and upon failure to pay the assessment the 
 29.9   attorney general shall proceed by action in the name of the 
 29.10  state against the telephone company to collect the amount due, 
 29.11  together with interest and the cost of the suit. 
 29.12     Subd. 5.  [ADMINISTRATIVE HEARING COSTS; APPROPRIATION.] 
 29.13  Any amounts billed to the commission or the department by the 
 29.14  office of administrative hearings for telephone contested case 
 29.15  hearings shall be assessed by the commissioner or the department 
 29.16  against the telephone company.  The assessment shall be paid 
 29.17  into the state treasury within 30 days after a bill, which 
 29.18  constitutes notice of the assessment and demand for payment of 
 29.19  it, has been mailed to the telephone company.  Money received 
 29.20  shall be credited to a special account and is appropriated to 
 29.21  the commissioner or the department director for payment to the 
 29.22  office of administrative hearings.  
 29.23     Subd. 6.  [EXTENDED AREA SERVICE BALLOTING ACCOUNT; 
 29.24  APPROPRIATION.] The extended area service balloting account is 
 29.25  created as a separate account in the special revenue fund in the 
 29.26  state treasury.  The commission shall render separate bills to 
 29.27  telephone companies only for direct balloting costs incurred by 
 29.28  the commission under section 237.161.  The bill constitutes 
 29.29  notice of the assessment and demand of payment.  The amount of a 
 29.30  bill assessed by the commission under this subdivision must be 
 29.31  paid by the telephone company into the state treasury within 30 
 29.32  days from the date of assessment.  Money received under this 
 29.33  subdivision must be credited to the extended area service 
 29.34  balloting account and is appropriated to the commission. 
 29.35     Sec. 32.  Minnesota Statutes 1994, section 237.30, is 
 29.36  amended to read: 
 30.1      237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 
 30.2      The sum of $25,000 is hereby appropriated out of any moneys 
 30.3   in the state treasury not otherwise appropriated, to establish 
 30.4   and provide a revolving fund to be known as the Minnesota 
 30.5   Telephone Investigation Fund for the use of the department of 
 30.6   public service and of the attorney general in investigations, 
 30.7   valuations, and revaluations under section 237.295.  All sums 
 30.8   paid by the telephone companies to reimburse the department of 
 30.9   public service attorney general for its the attorney general's 
 30.10  expenses pursuant to section 237.295 shall be credited to the 
 30.11  revolving fund and shall be deposited in a separate bank account 
 30.12  and not commingled with any other state funds or moneys, but any 
 30.13  balance in excess of $25,000 in the revolving fund at the end of 
 30.14  each fiscal year shall be paid into the state treasury and 
 30.15  credited to the general fund.  The sum of $25,000 herein 
 30.16  appropriated and all subsequent credits to said revolving fund 
 30.17  shall be paid upon the warrant of the commissioner of finance 
 30.18  upon application of the department or of the attorney general to 
 30.19  an aggregate amount of not more than one-half of such sums to 
 30.20  each of them, which proportion shall be constantly maintained in 
 30.21  all credits and withdrawals from the revolving fund. 
 30.22     Sec. 33.  Minnesota Statutes 1994, section 239.01, is 
 30.23  amended to read: 
 30.24     239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 
 30.25     The weights and measures division, referred to in this 
 30.26  chapter as the division, is created under the jurisdiction of 
 30.27  the department of public service agriculture.  The division has 
 30.28  supervision and control over all weights, weighing devices, and 
 30.29  measures in the state. 
 30.30     Sec. 34.  Minnesota Statutes 1994, section 239.05, 
 30.31  subdivision 6c, is amended to read: 
 30.32     Subd. 6c.  [COMMISSIONER.] "Commissioner" means the 
 30.33  commissioner of the department of public service agriculture. 
 30.34     Sec. 35.  Minnesota Statutes 1994, section 239.05, 
 30.35  subdivision 7a, is amended to read: 
 30.36     Subd. 7a.  [DEPARTMENT.] "Department" means the department 
 31.1   of public service agriculture. 
 31.2      Sec. 36.  Minnesota Statutes 1994, section 239.05, 
 31.3   subdivision 8, is amended to read: 
 31.4      Subd. 8.  [DIRECTOR.] "Director" means the director of the 
 31.5   division of weights and measures of the department of public 
 31.6   service agriculture. 
 31.7      Sec. 37.  [INSTRUCTION TO REVISOR.] 
 31.8      (a) The revisor of statutes, in the next and subsequent 
 31.9   editions of Minnesota Statutes and Minnesota Rules, shall make 
 31.10  the changes in paragraphs (b) to (j), and shall also make any 
 31.11  stylistic and conforming changes necessary to incorporate the 
 31.12  following changes: 
 31.13     (b) Change the terms "commissioner" and "commissioner of 
 31.14  public service," or similar terms, to "director," or similar 
 31.15  term, and the term "department," or similar term, to 
 31.16  "commission," or similar term, in Minnesota Statutes, section 
 31.17  137.14. 
 31.18     (c) Change the terms "commissioner" and "commissioner of 
 31.19  public service" to "authority" in Minnesota Statutes, section 
 31.20  216C.37. 
 31.21     (d) Change the terms "commissioner" or "commissioner of 
 31.22  public service," or similar terms, to "director of the division 
 31.23  of energy in the public utilities commission," or similar term, 
 31.24  in Minnesota Statutes, sections 13.68, subdivision 1; 13.99, 
 31.25  subdivision 65; 16B.165; 16B.56, subdivision 1; 17.86; 18.024, 
 31.26  subdivision 1; 103F.325, subdivisions 2 and 3; 115A.15, 
 31.27  subdivision 5; 116D.11, subdivision 4; 174.03, subdivision 7; 
 31.28  216B.162, subdivision 9; 216B.241; 216C.02; 216C.07; 216C.08; 
 31.29  216C.09; 216C.11; 216C.12; 216C.13; 216C.14; 216C.15; 216C.16; 
 31.30  216C.17; 216C.18; 216C.19; 216C.195; 216C.20; 216C.21; 216C.22; 
 31.31  216C.23; 216C.24; 216C.25; 216C.26; 216C.261; 216C.262; 216C.27; 
 31.32  216C.29; 216C.30; 216C.31; 216C.315; 216C.32; 216C.33; 216C.35; 
 31.33  216C.373; 216C.38; 216C.381; 446A.03, subdivision 1; and 
 31.34  446A.21, subdivision 2. 
 31.35     (e) Change the terms "department" and "department of public 
 31.36  service" to "commission" and "public utilities commission" in 
 32.1   Minnesota Statutes, sections 13.692; 116O.06, subdivision 2; 
 32.2   161.45; 469.164, subdivision 2; and 484.50. 
 32.3      (f) Change the terms "department" and "department of public 
 32.4   service" to "division of energy in the public utilities 
 32.5   commission" in Minnesota Statutes, sections 16B.32, subdivision 
 32.6   2; 160.262, subdivision 3; 161.45; and 326.243. 
 32.7      (g) Change the term "department of public service" to 
 32.8   "department of agriculture" in Minnesota Statutes, sections 
 32.9   17A.04, subdivisions 6, 7, and 8; 17A.10, subdivision 1; 41A.09, 
 32.10  subdivision 7; 93.38; 137.14; 325E.11; 325E.115, subdivision 2; 
 32.11  and 325F.733, subdivision 7. 
 32.12     (h) Change the term "department of public service" to 
 32.13  "department of transportation" in Minnesota Statutes, sections 
 32.14  168.61, subdivision 1; 169.073; and 181.30. 
 32.15     (i) Delete references to "commissioner," "commissioner of 
 32.16  public service," and "department of public service" in Minnesota 
 32.17  Statutes, sections 15.06, subdivision 1; 15A.081, subdivision 1; 
 32.18  43A.08, subdivision 1a; 237.59, subdivision 2; and 237.70, 
 32.19  subdivision 7. 
 32.20     (j) Change the title of Minnesota Statutes, chapter 216A to 
 32.21  "PUBLIC UTILITIES COMMISSION; ADMINISTRATION." 
 32.22     Sec. 38.  [REPEALER.] 
 32.23     Minnesota Statutes 1994, sections 216A.06; 216B.02, 
 32.24  subdivision 8; and 237.69, subdivision 3, are repealed. 
 32.25     Sec. 39.  [EFFECTIVE DATE.] 
 32.26     This article is effective January 1, 1996.