1.1                          A bill for an act 
  1.2             relating to utilities; modifying requirements for 
  1.3             renewable energy development funding; specifying that 
  1.4             certain required expenditures are recoverable; 
  1.5             providing a siting preference for certain wind energy 
  1.6             facilities; amending Minnesota Statutes 1998, sections 
  1.7             116C.779; 216B.1645; and 216B.2423, by adding a 
  1.8             subdivision. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 116C.779, is 
  1.11  amended to read: 
  1.12     116C.779 [FUNDING FOR RENEWABLE DEVELOPMENT.] 
  1.13     (a) The public utility that operates the Prairie Island 
  1.14  nuclear generating plant must transfer to a renewable 
  1.15  development account $500,000 each year for each dry cask 
  1.16  containing spent fuel that is located at the independent spent 
  1.17  fuel storage installation at Prairie Island after January 1, 
  1.18  1999.  The fund transfer must be made if waste is stored in a 
  1.19  cask for any part of a year.  Funds in the account can only may 
  1.20  be expended only for development of renewable energy 
  1.21  sources.  Preference must be given to development of renewable 
  1.22  energy source projects located within the state. 
  1.23     (b) Expenditures from the account may only be made after 
  1.24  approval by order of the public utilities commission upon a 
  1.25  petition by the public utility. 
  1.26     Sec. 2.  Minnesota Statutes 1998, section 216B.1645, is 
  1.27  amended to read: 
  2.1      216B.1645 [POWER PURCHASE CONTRACT OR INVESTMENT.] 
  2.2      Upon the petition of a public utility, the public utilities 
  2.3   commission shall approve or disapprove power purchase contracts 
  2.4   or, investments, or expenditures entered into or made by the 
  2.5   utility to satisfy the wind and biomass mandates contained in 
  2.6   sections 216B.2423 and 216B.2424, or to develop renewable energy 
  2.7   sources from the account required in section 116C.779.  The 
  2.8   expenses incurred by the utility over the duration of the 
  2.9   approved contract or useful life of the investment and 
  2.10  expenditures made pursuant to section 116C.779 shall be 
  2.11  recoverable from the ratepayers of the utility, to the extent 
  2.12  they are not offset by utility revenues attributable to the 
  2.13  contracts or, investments, or expenditures.  Upon petition by a 
  2.14  public utility, the commission shall approve or approve as 
  2.15  modified a rate schedule providing for the automatic adjustment 
  2.16  of charges to recover the expenses or costs approved by the 
  2.17  commission.  Nothing in this section shall be construed to 
  2.18  determine the manner or extent to which revenues derived from 
  2.19  other generation facilities of the utility may be considered in 
  2.20  determining the recovery of the approved cost or expenses 
  2.21  associated with the mandated contracts or, investments, or 
  2.22  expenditures in the event there is retail competition for 
  2.23  electric energy. 
  2.24     Sec. 3.  Minnesota Statutes 1998, section 216B.2423, is 
  2.25  amended by adding a subdivision to read: 
  2.26     Subd. 2a.  [SITE PREFERENCE.] The public utilities 
  2.27  commission shall ensure that a utility subject to the 
  2.28  requirements of subdivision 1, clause (2), shall implement that 
  2.29  clause with a preference for wind energy conversion systems 
  2.30  within the state.  This preference shall not prevent the utility 
  2.31  from constructing or contracting to construct wind energy 
  2.32  conversion systems outside the state, if the public utilities 
  2.33  commission determines that selection of a facility within the 
  2.34  state conflicts with the requirements of section 216B.03. 
  2.35     Sec. 4.  [EFFECTIVE DATE.] 
  2.36     Sections 1 to 3 are effective the day following final 
  3.1   enactment.