1.1 	A bill for an act
1.2 	relating to natural gas rates; allowing for recovery
1.3 	of certain infrastructure replacement costs separately
1.4 	from a general rate case; proposing coding for new law
1.5 	in Minnesota Statutes, chapter 216B.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [216B.1635] RECOVERY OF ELIGIBLE
1.8 	INFRASTRUCTURE REPLACEMENT COSTS BY GAS UTILITIES.
1.9 		Subdivision 1.Definitions. (a) "Gas utility" means a
1.10 	public utility as defined in section 216B.02, subdivision 4,
1.11 	that furnishes natural gas service to retail customers.
1.12 	(b) "Gas utility infrastructure costs" or "GUIC" means gas
1.13 	utility projects that:
1.14 	(1) do not serve to increase revenues by directly
1.15 	connecting the infrastructure replacement to new customers;
1.16 	(2) are in service but were not included in the gas
1.17 	utility's rate base in its most recent general rate case; and 
1.18 	(3) replace or modify existing infrastructure.
1.19 	(c) "Gas utility projects" means relocation and replacement
1.20 	of natural gas facilities located in the public right-of-way
1.21 	required by the construction or improvement of a highway, road,
1.22 	street, public building, or other public work by or on behalf of
1.23 	the United States, the State of Minnesota, or a political
1.24 	subdivision.
1.25 		Subd. 2.Filing. (a) The commission may approve a gas
2.1 	utility's petition for a rate schedule to recover GUIC under
2.2 	this section.
2.3 	(b) The filing is subject to the following:
2.4 	(1) a gas utility may submit a filing under this section no
2.5 	more than once per year;
2.6 	(2) a gas utility must file sufficient information to
2.7 	satisfy the commission regarding the proposed GUIC or be subject
2.8 	to denial by the commission, which includes, but is not limited
2.9 	to:
2.10 	(i) the government entity ordering the project;
2.11 	(ii) the location, description, and costs associated with
2.12 	the project;
2.13 	(iii) a description of the costs, and salvage value, if
2.14 	any, associated with the existing infrastructure replaced or
2.15 	modified as a result of the project;
2.16 	(iv) the magnitude and timing of any known future gas
2.17 	utility projects that the utility may seek to recover under this
2.18 	section;
2.19 	(v) the magnitude of GUIC in relation to the gas utility's
2.20 	base revenue as approved by the commission in the gas utility's
2.21 	most recent general rate case, exclusive of gas purchase costs
2.22 	and transportation charges;
2.23 	(vi) the magnitude of GUIC in relation to the gas utility's
2.24 	capital expenditures since its most recent general rate case;
2.25 	(vii) the amount of time since the utility last filed a
2.26 	general rate case and the utility's reasons for seeking recovery
2.27 	outside of a general rate case; and 
2.28 	(viii) documentation supporting the calculation of the GUIC.
2.29 		Subd. 3.Commission authority. The commission may issue
2.30 	orders and adopt rules necessary to implement and administer
2.31 	this section.
2.32 	
EFFECTIVE DATE. This section is effective the day
2.33 	following final enactment.

2.34 	Sec. 2. REPORT TO LEGISLATURE.
 2.35 	The Department of Commerce shall review the operation and
2.36 	impact of the GUIC recovery mechanism established under
3.1 	Minnesota Statutes, section 216B.1635, on ratepayers and the
3.2 	utility and submit a report of its findings and recommendations
3.3 	to the legislature four years after the effective date of this
3.4 	section.

3.5 	Sec. 3. SUNSET.
 3.6 	Sections 1 and 2 shall expire on June 30, 2015.