HF 655

as introduced - 89th Legislature (2015 - 2016) Posted on 02/19/2015 04:37pm

A bill for an act
relating to energy; amending compensation options for certain net metering
facilities; amending Minnesota Statutes 2014, section 216B.164, subdivision 3.

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

Section 1.

Minnesota Statutes 2014, section 216B.164, subdivision 3, is amended to
read:

Subd. 3.

Purchases; small facilities.

(a) This paragraph applies to cooperative
electric associations and municipal utilities. For a qualifying facility having less than
40-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility
according to the applicable rate schedule for sales to that class of customer. In the case
of net input into the utility system by a qualifying facility having less than 40-kilowatt
capacity, compensation to the customer shall be at a per kilowatt-hour rate determined
under paragraph (c) or deleted text begin (d) deleted text end new text begin (f) new text end .

(b) This paragraph applies to public utilities. For a qualifying facility having less
than 1,000-kilowatt capacity, the customer shall be billed for the net energy supplied by
the utility according to the applicable rate schedule for sales to that class of customer. In
the case of net input into the utility system by a qualifying facility having: (1) more than
40-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be
at a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt
capacity, compensation to the customer shall be at a per-kilowatt rate determined under
paragraph (d).

(c) In setting rates, the commission shall consider the fixed distribution costs to the
utility not otherwise accounted for in the basic monthly charge and shall ensure that the
costs charged to the qualifying facility are not discriminatory in relation to the costs
charged to other customers of the utility. The commission shall set the rates for net
input into the utility system based on avoided costs as defined in the Code of Federal
Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of
Federal Regulations, title 18, section 292.304, and all other relevant factors.

(d) Notwithstanding any provision in this chapter to the contrary, a qualifying
facility having less than 40-kilowatt capacity new text begin that is interconnected to a public utility
new text end may elect that the compensation for net input by the qualifying facility into the utility
system shall be at the average retail utility energy rate. "Average retail utility energy
rate" is defined as the average of the retail energy rates, exclusive of special rates based
on income, age, or energy conservation, according to the applicable rate schedule of the
utility for sales to that class of customer.

(e) If the qualifying facility or net metered facility is interconnected with a
nongenerating utility which has a sole source contract with a municipal power agency or a
generation and transmission utility, the nongenerating utility may elect to treat its purchase
of any net input under this subdivision as being made on behalf of its supplier and shall
be reimbursed by its supplier for any additional costs incurred in making the purchase.
Qualifying facilities or net metered facilities having less than 1,000-kilowatt capacity if
interconnected to a public utility, or less than 40-kilowatt capacity if interconnected to a
cooperative electric association or municipal utility may, at the customer's option, elect to
be governed by the provisions of subdivision 4.

new text begin (f) A customer with a qualifying facility or net metered facility having a capacity
below 40 kilowatts that is interconnected to a cooperative electric association or a
municipal utility may elect to be compensated for the customer's net input into the utility
system in the form of a kilowatt-hour credit on the customer's energy bill carried forward
and applied to subsequent energy bills. Any kilowatt-hour credits carried forward by the
customer cancel at the end of the calendar year with no additional compensation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to net metered facilities that are interconnected to utilities after August 15, 2015.
new text end