1.1 	A bill for an act
1.2 	relating to energy; authorizing construction and operation of a natural gas combined 
1.3 	cycle electric generation plant.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. NATURAL GAS COMBINED CYCLE ELECTRIC GENERATION 
1.6 	PLANT.
 1.7 	(a) Notwithstanding Minnesota Statutes, section 216B.243, or any other law or rule to 
1.8 	the contrary, a public utility may, at its sole discretion, construct, own, and operate a natural 
1.9 	gas combined cycle electric generation plant as proposed to the Public Utilities Commission 
1.10 	in docket number E-002/RP-15-21, provided that the plant is (1) located on property in 
1.11 	Sherburne County, Minnesota, already owned by the public utility, and (2) constructed after 
1.12 	January 1, 2018.
1.13 	(b) The commission must approve recovery of reasonably and prudently incurred costs 
1.14 	associated with the construction and operation of a plant under this section as provided 
1.15 	under Minnesota Statutes, section 216B.16.
1.16 	(c) No less than 20 months prior to the start of construction, a public utility may file 
1.17 	with the commission an independent evaluation of the utility's forecasted costs for a plant 
1.18 	under this section, and may request that the commission establish a sliding scale rate of 
1.19 	return mechanism of no more than 25 basis points above or below the most recently 
1.20 	authorized rate of return on equity for the capital investment under this section, in order to 
1.21 	provide an incentive for the utility to complete the project at or under the forecasted costs.