1.1                          A bill for an act 
  1.2             relating to utilities; clarifying legislative intent 
  1.3             regarding wind energy mandate; requiring telephone 
  1.4             companies to file depreciation schedules with public 
  1.5             utilities commission, but abolishing power of 
  1.6             commission to certify or approve the schedules; 
  1.7             providing for development of midwest regulatory 
  1.8             agreement regarding utilities; requiring investigation 
  1.9             and legislative report on electric utility rate 
  1.10            unbundling; amending Minnesota Statutes 1994, sections 
  1.11            216B.2423, subdivision 1; and 216B.57; proposing 
  1.12            coding for new law in Minnesota Statutes, chapter 237; 
  1.13            repealing Minnesota Statutes 1994, section 237.22. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1994, section 216B.2423, 
  1.16  subdivision 1, is amended to read: 
  1.17     Subdivision 1.  [MANDATE.] A public utility, as defined in 
  1.18  section 216B.02, subdivision 4, that operates a nuclear-powered 
  1.19  electric generating plant within this state must construct and 
  1.20  operate, purchase, or contract to construct and operate:  (1) 
  1.21  225 megawatts of electric energy installed capacity generated by 
  1.22  wind energy conversion systems within the state by December 31, 
  1.23  1998; and (2) an additional 200 megawatts of installed 
  1.24  capacity so generated by wind energy conversion systems within 
  1.25  the state by December 31, 2002. 
  1.26     For the purpose of this section, "wind energy conversion 
  1.27  system" has the meaning given it in section 216C.06, subdivision 
  1.28  12. 
  1.29     Sec. 2.  Minnesota Statutes 1994, section 216B.57, is 
  2.1   amended to read: 
  2.2      216B.57 [PENALTIES.] 
  2.3      Any person who knowingly and intentionally violates any 
  2.4   provision of Laws 1974, chapter 429, or who knowingly and 
  2.5   intentionally fails, omits, or neglects to obey, observe, or 
  2.6   comply with any lawful order, or any part or provision thereof, 
  2.7   of the commission is subject to a penalty of not less than $100 
  2.8   nor more than $1,000 $5,000 for each violation. 
  2.9      Sec. 3.  [237.221] [DEPRECIATION SCHEDULES.] 
  2.10     Subdivision 1.  [DEPRECIATION FILINGS.] A telephone company 
  2.11  is subject to complaints by the department or others concerning 
  2.12  its depreciation rates and practices pursuant to section 
  2.13  237.081, subdivision 1a, and shall submit to the department the 
  2.14  information required by subdivisions 2 and 3, but is not 
  2.15  otherwise subject to certification or approval by the 
  2.16  commission.  This section supersedes any other inconsistent or 
  2.17  contrary law. 
  2.18     Subd. 2.  [INFORMATIONAL FILING REQUIREMENTS.] Initially 
  2.19  upon commission notification, and at least every five years 
  2.20  thereafter, each telephone company shall file its depreciation 
  2.21  schedules, covering each year since the last filing, showing: 
  2.22     (1) the plant in service, by each appropriate depreciable 
  2.23  plant account applicable to its class:  beginning and ending 
  2.24  plant balances; additions and retirements; and adjustments and 
  2.25  transfers; 
  2.26     (2) an analysis of depreciation reserve, based on 
  2.27  depreciation studies by each appropriate depreciable plant 
  2.28  account applicable to its class:  beginning and ending reserve 
  2.29  balances; depreciation accruals and plant retirements; cost of 
  2.30  removal and gross salvage value; and transfers, adjustments, and 
  2.31  other debits (credits); and 
  2.32     (3) a summary of annual depreciation accruals, based on 
  2.33  depreciation studies by each appropriate depreciable plant 
  2.34  account applicable to its class:  plant balance; estimated net 
  2.35  salvage; depreciation reserve; probable service life; and 
  2.36  depreciation accrual and rate. 
  3.1      Subd. 3.  [ADDITIONAL INFORMATION PROVIDED WITH FILING.] In 
  3.2   addition, telephone companies shall provide with the 
  3.3   depreciation filing: 
  3.4      (1) a list of accounts upon which the utility has made 
  3.5   studies of the estimates of service life and salvage and the 
  3.6   dollar effects and the results of these studies; and 
  3.7      (2) a list of any major future additions or retirements to 
  3.8   the plant accounts that the utility believes may have a material 
  3.9   effect on the current schedule. 
  3.10     Sec. 4.  [REGIONAL REGULATORY AGREEMENT.] 
  3.11     In light of the changing regulatory environment, the public 
  3.12  utilities commission, in consultation with the department of 
  3.13  public service, and the attorney general shall initiate 
  3.14  discussions with their regulatory counterparts in the midwest 
  3.15  region of the country regarding the development of an effective 
  3.16  interstate regulatory agreement for the coordination and 
  3.17  regulation of public utilities in the region.  The commissioner 
  3.18  shall report to the house and senate legislative committees with 
  3.19  jurisdiction over the regulation of public utilities on the 
  3.20  progress of these discussions by January 15, 1997, as well as 
  3.21  any regulatory or legislative changes necessary to foster the 
  3.22  development of an agreement. 
  3.23     Sec. 5.  [UNBUNDLED RATES.] 
  3.24     The public utilities commission shall initiate an 
  3.25  investigation into the unbundling of electric utility rates.  
  3.26  The investigation should include inquiries into the extent of 
  3.27  unbundling that should be required, the process for calculating 
  3.28  unbundled rates, the conditions under which unbundling may be 
  3.29  beneficial, the likely impact of unbundled rates on the industry 
  3.30  and on each class of consumer, and the time frame for requiring 
  3.31  utilities to unbundle rates.  The commission shall report on the 
  3.32  progress of the investigation to the house and senate 
  3.33  legislative committees with jurisdiction over electric utility 
  3.34  regulation by January 1, 1997. 
  3.35     Sec. 6.  [LEGISLATIVE INTENT.] 
  3.36     Section 1 is not a change in existing law but is intended 
  4.1   to clarify and restate the legislature's intent that the wind 
  4.2   energy mandate contained in Minnesota Statutes, section 
  4.3   216B.2423, subdivision 1, must be satisfied entirely by wind 
  4.4   energy conversion systems located in Minnesota. 
  4.5      Sec. 7.  [REPEALER.] 
  4.6      Minnesota Statutes 1994, section 237.22, is repealed.