SF 3954

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/27/2026 10:31 a.m.

A bill for an act
relating to utilities; modifying reporting requirements for recoverable expenses in
rate cases; eliminating the sunset of cost recovery for gas utility infrastructure
costs; amending Minnesota Statutes 2024, section 216B.16, subdivision 17;
repealing Laws 2005, chapter 97, article 10, section 3, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 216B.16, subdivision 17, is amended to read:

Subd. 17.

Travel, entertainment, and related employee expenses.

(a) The commission
may not allow as operating expenses a public utility's travel, entertainment, and related
employee expenses that the commission deems unreasonable and unnecessary for the
provision of utility service. In order to assist the commission in evaluating the travel,
entertainment, and related employee expenses that may be allowed for ratemaking purposes,
a public utility filing a general rate case petition shall include a schedule separately itemizing
all travel, entertainment, and related employee expenses as specified by the commission,
including but not limited to the following categories:

(1) travel and lodging expenses;

(2) food and beverage expenses;

(3) recreational and entertainment expenses;

(4) board of director-related expenses, including and separately itemizing all
compensation and expense reimbursements;

(5) expenses for the ten highest paid officers and employees, including and separately
itemizing all compensation and expense reimbursements;

(6) dues and expenses for memberships in organizations or clubs;

(7) gift expenses;

(8) expenses related to owned, leased, or chartered aircraft; and

(9) lobbying expenses.

(b) To comply with the requirements of paragraph (a), each applicable expense incurred
in the most recently completed fiscal year must be itemized separately, and each itemization
must include the date of the expense, the amount of the expense, deleted text begin the vendor name, deleted text end and the
business purpose of the expense. The separate itemization required by this paragraph may
be provided using standard accounting reports already utilized by the utility involved in the
rate case, in a written format or an electronic format that is acceptable to the commission.
For expenses identified in response to paragraph (a), clauses (1) and (2), the utility shall
disclose the total amounts for each expense category and provide separate itemization for
those expenses incurred by or on behalf of any employee at the level of vice president or
higher and for board members. The petitioning utility shall also provide a one-page summary
of the total amounts for each expense category included in the petitioning utility's proposed
test year.

(c) Except as otherwise provided in this paragraph, data submitted to the commission
under paragraph (a) are public data. The commission or an administrative law judge assigned
to the case may treat the salary of one or more of the ten highest paid officers and employees,
other than the five highest paid, as private data on individuals as defined in section 13.02,
subdivision 12, or issue a protective order governing release of the salary, if the utility
establishes that the competitive disadvantage to the utility that would result from release of
the salary outweighs the public interest in access to the data. Access to the data by a
government entity that is a party to the rate case must not be restricted.

Sec. 2. new text begin REPEALER.
new text end

new text begin Laws 2005, chapter 97, article 10, section 3, as amended by Laws 2013, chapter 85,
article 7, section 9, Laws 2023, chapter 60, article 12, section 66, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Session Laws: 26-06445

Laws 2005, chapter 97, article 10, section 3, as amended by Laws 2013, chapter 85, article 7, section 9; as amended by Laws 2023, chapter 60, article 12, section 66

Sec. 9.

Laws 2005, chapter 97, article 10, section 3, is amended to read:

Sec. 3. SUNSET.

Sections 1 and 2 shall expire on June 30, 2023.