HF 942

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural gas rates; allowing for recovery
of certain infrastructure replacement costs separately
from a general rate case; proposing coding for new law
in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.1635] RECOVERY OF ELIGIBLE
INFRASTRUCTURE REPLACEMENT COSTS BY GAS UTILITIES.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Gas utility" means a
public utility as defined in section 216B.02, subdivision 4,
that furnishes natural gas service to retail customers.
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new text begin (b) "Gas utility infrastructure costs" or "GUIC" means gas
utility projects that:
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new text begin (1) do not serve to increase revenues by directly
connecting the infrastructure replacement to new customers;
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new text begin (2) are in service but were not included in the gas
utility's rate base in its most recent general rate case; and
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new text begin (3) replace or modify existing infrastructure.
new text end

new text begin (c) "Gas utility projects" means relocation and replacement
of natural gas facilities located in the public right-of-way
required by the construction or improvement of a highway, road,
street, public building, or other public work by or on behalf of
the United States, the State of Minnesota, or a political
subdivision.
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new text begin Subd. 2. new text end

new text begin Filing. new text end

new text begin (a) The commission may approve a gas
utility's petition for a rate schedule to recover GUIC under
this section.
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new text begin (b) The filing is subject to the following:
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new text begin (1) a gas utility may submit a filing under this section no
more than once per year;
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new text begin (2) a gas utility must file sufficient information to
satisfy the commission regarding the proposed GUIC or be subject
to denial by the commission, which includes, but is not limited
to:
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new text begin (i) the government entity ordering the project;
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new text begin (ii) the location, description, and costs associated with
the project;
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new text begin (iii) a description of the costs, and salvage value, if
any, associated with the existing infrastructure replaced or
modified as a result of the project;
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new text begin (iv) the magnitude and timing of any known future gas
utility projects that the utility may seek to recover under this
section;
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new text begin (v) the magnitude of GUIC in relation to the gas utility's
base revenue as approved by the commission in the gas utility's
most recent general rate case, exclusive of gas purchase costs
and transportation charges;
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new text begin (vi) the magnitude of GUIC in relation to the gas utility's
capital expenditures since its most recent general rate case;
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new text begin (vii) the amount of time since the utility last filed a
general rate case and the utility's reasons for seeking recovery
outside of a general rate case; and
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new text begin (viii) documentation supporting the calculation of the GUIC.
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new text begin Subd. 3. new text end

new text begin Commission authority. new text end

new text begin The commission may issue
orders and adopt rules necessary to implement and administer
this section.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
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Sec. 2. new text begin REPORT TO LEGISLATURE.
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new text begin The Department of Commerce shall review the operation and
impact of the GUIC recovery mechanism established under
Minnesota Statutes, section 216B.1635, on ratepayers and the
utility and submit a report of its findings and recommendations
to the legislature four years after the effective date of this
section.
new text end

Sec. 3. new text begin SUNSET.
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new text begin Sections 1 and 2 shall expire on June 30, 2015.
new text end