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Minnesota Legislature

Office of the Revisor of Statutes

HF 1170

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2013 02:00pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/04/2013

Current Version - as introduced

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A bill for an act
relating to energy; amending the maximum capacity at which small electricity
generators qualify for net metering; amending the definition of a rate at which
small generators may elect to be paid by utilities; amending the treatment of
a purchase from a small generator by a nongenerating utility supplied by a
municipal power agency; amending Minnesota Statutes 2012, section 216B.164,
subdivisions 3, 5, 6, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 216B.164, subdivision 3, is amended to
read:


Subd. 3.

Purchases; small facilities.

(a) For a qualifying facility having less
than deleted text begin40-kilowattdeleted text endnew text begin 105-kilowattnew text end 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 deleted text begin40-kilowattdeleted text endnew text begin 105-kilowattnew text end capacity, compensation to the customer shall be at a per
kilowatt-hour rate determined under paragraph (b) or (c).

(b) 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.

(c) Notwithstanding any provision in this chapter to the contrary, a qualifying facility
having less than deleted text begin40-kilowattdeleted text endnew text begin 105-kilowattnew text end capacity may elect that the compensation for net
input by the qualifying facility into the utility system shall be at the average retail utility
energy ratenew text begin plus the premium charged by the utility to customers of that customer class
who elect to purchase renewable electricity under section 216B.169. If the utility does not
offer a renewable rate under section 216B.169, the rate that a qualifying facility may elect
to receive under this paragraph is the average rate charged under section 216B.169 to the
applicable customer class by the three utilities that offer such a rate whose service areas
are located closest to that of the utility that does not offer a rate under section 216B.169
new text end.
"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.

(d) If the qualifying facility is interconnected with a nongenerating utility which has
a deleted text beginsole sourcedeleted text end 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 having less
than deleted text begin40-kilowattdeleted text endnew text begin 105-kilowattnew text end capacity may, at the customer's option, elect to be governed
by the provisions of subdivision 4.

new text begin (e) A utility may elect to take possession of any renewable energy credits attached to
electricity purchased under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.164, subdivision 5, is amended to read:


Subd. 5.

new text beginNondiscrimination; new text enddisputedeleted text begin;deleted text end resolution.

new text begin (a) A utility may not impose
unduly burdensome conditions or stipulations on, and may not discriminate against, a
qualifying facility seeking to interconnect with and sell electric power to the utility.
new text end

new text begin (b) new text endIn the event of disputes between an electric utility and a qualifying facility,
either party may request a determination of the issue by the commission. In any such
determination, the burden of proof shall be on the utility. The commission in its order
resolving each such dispute shall require payments to the prevailing party of the prevailing
party's costs, disbursements, and reasonable attorneys' fees, except that the qualifying
facility will be required to pay the costs, disbursements, and attorneys' fees of the utility
only if the commission finds that the claims of the qualifying facility in the dispute have
been made in bad faith, or are a sham, or are frivolous.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2012, section 216B.164, subdivision 6, is amended to read:


Subd. 6.

Rules and uniform contract.

(a) The commission shall promulgate rules
to implement the provisions of this section. The commission shall also establish a uniform
statewide form of contract for use between utilities and a qualifying facility having less
than deleted text begin40-kilowattdeleted text endnew text begin 105-kilowattnew text end capacity.

(b) The commission shall require the qualifying facility to provide the utility with
reasonable access to the premises and equipment of the qualifying facility if the particular
configuration of the qualifying facility precludes disconnection or testing of the qualifying
facility from the utility side of the interconnection with the utility remaining responsible
for its personnel.

(c) The uniform statewide form of contract shall be applied to all new and existing
interconnections established between a utility and a qualifying facility having less than
deleted text begin40-kilowattdeleted text endnew text begin 105-kilowattnew text end capacity, except that existing contracts may remain in force
until written notice of election that the uniform statewide contract form applies is given
by either party to the other, with the notice being of the shortest time period permitted
under the existing contract for termination of the existing contract by either party, but
not less than ten nor longer than 30 days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2012, section 216B.164, is amended by adding a
subdivision to read:


new text begin Subd. 6a. new text end

new text begin Generation exceeding capacity. new text end

new text begin Electrical generation that exceeds a
qualifying facility's nameplate capacity:
new text end

new text begin (1) does not nullify the contract between a qualifying facility and a utility purchasing
electricity under this section; and
new text end

new text begin (2) must be purchased at the utility's avoided cost rate, as defined by the commission
under subdivision 3 or 4, as applicable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end