SF 3992

Introduction - 94th Legislature (2025 - 2026)

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

A bill for an act
relating to energy; requiring the commission to promote affordable service and
consider customers' ability to pay rates; amending Minnesota Statutes 2024, sections
216B.03; 216B.16, subdivision 6.

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

Section 1.

Minnesota Statutes 2024, section 216B.03, is amended to read:

216B.03 REASONABLE RATE.

Every rate made, demanded, or received by any public utility, or by any two or more
public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
and consistent in application to a class of consumers. To the maximum reasonable extent,
the commission shall set rates to new text begin promote affordable service for all Minnesotans, new text end encourage
energy conservation and renewable energy use new text begin , new text end and deleted text begin to deleted text end further the goals of sections 216B.164,
216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in favor of the
consumer. For rate-making purposes a public utility may treat two or more municipalities
served by it as a single class wherever the populations are comparable in size or the conditions
of service are similar.

Sec. 2.

Minnesota Statutes 2024, section 216B.16, subdivision 6, is amended to read:

Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers
under this chapter to determine just and reasonable rates for public utilities, shall give due
consideration to the public need for adequate, efficient, and reasonable service and to the
need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
the service, including adequate provision for depreciation of its utility property used and
useful in rendering service to the public, and to earn a fair and reasonable return upon the
investment in such property. new text begin In determining whether a return is fair and reasonable, the
commission must give due consideration to customers' ability to pay the rates used to fund
the return. new text end In determining the rate base upon which the utility is to be allowed to earn a fair
rate of return, the commission shall give due consideration to evidence of the cost of the
property when first devoted to public use, to prudent acquisition cost to the public utility
less appropriate depreciation on each, to construction work in progress, to offsets in the
nature of capital provided by sources other than the investors, and to other expenses of a
capital nature. For purposes of determining rate base, the commission shall consider the
original cost of utility property included in the base and shall make no allowance for its
estimated current replacement value. If the commission orders a generating facility to
terminate its operations before the end of the facility's physical life in order to comply with
a specific state or federal energy statute or policy, the commission may allow the public
utility to recover any positive net book value of the facility as determined by the commission.