SF 3991

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/03/2026 09:00 a.m.

A bill for an act
relating to energy; allowing a utility to charge a fee to a customer who has entered
into a payment agreement and whose household income is above 50 percent of
state median income; allowing a utility to charge a reconnection fee; allowing a
utility to charge a late payment charge subject to conditions; amending Minnesota
Statutes 2024, sections 216B.096, subdivision 10; 216B.098, by adding
subdivisions.

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

Section 1.

Minnesota Statutes 2024, section 216B.096, subdivision 10, is amended to read:

Subd. 10.

Customers above 50 percent of state median income.

During the cold
weather period, a customer whose household income is above 50 percent of state median
income:

(1) has the right to a payment agreement that takes into consideration the customer's
financial circumstances and any other extenuating circumstances of the household; and

(2) may not be disconnected and must be reconnected if the customer makes timely
payments under a payment agreement accepted by a utility.

deleted text begin Subdivision 7, paragraph (b), does not apply to customers whose household income is
above 50 percent of state median income.
deleted text end

Sec. 2.

Minnesota Statutes 2024, section 216B.098, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Reconnection fees. new text end

new text begin (a) If service has been disconnected for unauthorized use
or tampering with the utility's equipment, the utility may charge a reconnection fee based
on the cost to reinstate service that is stated in the utility's tariff. A utility must not charge
a fee to a residential customer to reconnect service that has been disconnected due to a
customer's failure to pay a utility bill.
new text end

new text begin (b) For the purpose of this subdivision, "unauthorized use" means using utility services
in a manner that breaches the customer's service contract or violates tariffs on file with the
commission for reasons other than a customer's failure to pay a utility bill.
new text end

Sec. 3.

Minnesota Statutes 2024, section 216B.098, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Late payment charges. new text end

new text begin (a) A utility may impose a late payment charge only
if:
new text end

new text begin (1) the customer's current delinquent amount exceeds $100;
new text end

new text begin (2) the late payment charge does not exceed a reasonable approximation of the utility's
actual cost to carry the unpaid balance; and
new text end

new text begin (3) the utility does not impose more than $50 in cumulative late payment fees on a single
customer during a 12-month period.
new text end

new text begin (b) A utility is prohibited from imposing a late payment charge on:
new text end

new text begin (1) a low-income household, as defined in section 216B.16, subdivision 1b, or a household
that participates in a low-income program under section 216B.2403, subdivision 5, or
216B.241, subdivision 7; or
new text end

new text begin (2) a household that has entered into and is reasonably up to date on a payment agreement
pursuant to subdivision 3; section 216B.096, subdivisions 5 and 10; or 216B.097, subdivision
1, paragraph (a), clause (2).
new text end

new text begin (c) Notwithstanding paragraph (a), a public utility or a cooperative electric association
subject to rate regulation under section 216B.026 may impose a late payment charge only
if the commission finds the public utility or electric cooperative association has demonstrated
by clear and convincing evidence that a late payment charge is just, reasonable, and in the
public interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2026.
new text end