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HF 1332

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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

Bill Text Versions

Engrossments
Introduction Posted on 02/24/2005

Current Version - as introduced

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A bill for an act
relating to energy; regulating tariffs for certain
community-based wind energy developments; 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.1612] COMMUNITY-BASED WIND ENERGY
DEVELOPMENT; TARIFF.
new text end

new text begin Subdivision 1. new text end

new text begin Tariff establishment. new text end

new text begin The commission
shall establish a community-based wind energy development tariff.
The tariff must be designed to optimize local, regional, and
state rural agricultural resource economic development benefits
from wind energy development, and to facilitate widespread
development of community-based wind energy projects throughout
Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Tariff rate. new text end

new text begin The tariff must have a rate
schedule with a net present value rate over the 20-year life of
the contract that is at least equal to the utility's avoided
cost as determined by its most recently filed avoided cost
filing under section 216B.164 at the time of the execution of
the power purchase contract or as determined by the commission
if there is no available filing. The tariff must provide for a
rate that is higher in the first ten years of the contract than
in the last ten years to accelerate recovery of capital costs.
The discount rate required to calculate the net present value
must be the utility's normal discount rate used for other
business purposes.
new text end

new text begin Subd. 3. new text end

new text begin Application of tariff. new text end

new text begin (a) The tariff applies
to wind energy conversion system projects described in this
subdivision regardless of project nameplate rating that have an
ownership that satisfies an ownership requirement of section
216C.41, subdivision 1, paragraph (c), clause (2) or (3).
new text end

new text begin (b) The tariff applies to:
new text end

new text begin (1) projects that meet an energy need identified in a
resource plan filed under section 216B.2422;
new text end

new text begin (2) community-based wind energy projects to satisfy an
order of the commission;
new text end

new text begin (3) projects to satisfy a statutory mandate; or
new text end

new text begin (4) projects to satisfy section 216B.1691.
new text end

new text begin (c) The tariff applies to all load-serving electric
utilities in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Priority for tariff-eligible projects. new text end

new text begin If the
utility system is capable of accepting the project using
standard reliability criteria, a project eligible for the tariff
required by subdivision 1 must be granted a preference over
other projects.
new text end

new text begin Subd. 5.new text end

new text beginElection by project developer.new text end

new text beginAt the
discretion of the developer, a community-based project developer
and a utility may negotiate a different rate and power purchase
agreement with terms different from the tariff established under
subdivision 1.
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. new text beginTRANSITIONAL REQUIREMENT.
new text end

new text begin The Public Utilities Commission shall expedite the
establishment of the tariff under section 1 to provide that
tariffs are available for use for all load-serving utilities no
later than September 1, 2005.
new text end