as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to energy; directing public utilities 1.3 commission to establish programs for low-income 1.4 utility customers; amending Minnesota Statutes 2000, 1.5 section 216B.16, subdivision 15. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 2000, section 216B.16, 1.8 subdivision 15, is amended to read: 1.9 Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 1.10 commission may consider ability to pay as a factor in setting 1.11 utility rates andmayshall establish programs for low-income 1.12 residential ratepayers in order to ensure affordable, reliable, 1.13 and continuous service to low-income utility customers.The1.14commission shall order a pilot program for at least one1.15utility. In ordering pilot programs, the commission shall1.16consider the following:1.17(1) the potential for low-income programs to provide1.18savings to the utility for all collection costs including but1.19not limited to: costs of disconnecting and reconnecting1.20residential ratepayers' service, all activities related to the1.21utilities' attempt to collect past due bills, utility working1.22capital costs, and any other administrative costs related to1.23inability to pay programs and initiatives;1.24(2) the potential for leveraging federal low-income energy1.25dollars to the state; and2.1(3) the impact of energy costs as a percentage of the total2.2income of a low-income residential customer.2.3(b) In determining the structure of the pilot utility2.4program, the commission shall:2.5(1) consult with advocates for and representatives of2.6low-income utility customers, administrators of energy2.7assistance and conservation programs, and utility2.8representatives;2.9(2) coordinate eligibility for the program with the state2.10and federal energy assistance program and low-income residential2.11energy programs, including weatherization programs; and2.12(3) evaluate comprehensive low-income programs offered by2.13utilities in other states.2.14(c) The commission shall implement at least one pilot2.15project by January 1, 1995, and shall allow a utility required2.16to implement a pilot project to recover the net costs of the2.17project in the utility's rates.2.18(d) The commission, in conjunction with the commissioner of2.19the department of public service and the commissioner of2.20economic security, shall review low-income rate programs and2.21shall report to the legislature by January 1, 1998. The report2.22must include:2.23(1) the increase in federal energy assistance money2.24leveraged by the state as a result of this program;2.25(2) the effect of the program on low-income customer's2.26ability to pay energy costs;2.27(3) the effect of the program on utility customer bad debt2.28and arrearages;2.29(4) the effect of the program on the costs and numbers of2.30utility disconnections and reconnections and other costs2.31incurred by the utility in association with inability to pay2.32programs;2.33(5) the ability of the utility to recover the costs of the2.34low-income program without a general rate change;2.35(6) how other ratepayers have been affected by this2.36program;3.1(7) recommendations for continuing, eliminating, or3.2expanding the low-income pilot program; and3.3(8) how general revenue funds may be utilized in3.4conjunction with low-income programs.3.5 (b) The purpose of the low-income programs is to lower the 3.6 percentage of income that low-income households devote to energy 3.7 bills, to increase customer payments, and to lower utility costs 3.8 associated with customer account collection activities. In 3.9 ordering low-income programs, the commission may require 3.10 utilities to file program evaluations, including the effect of 3.11 the program on participant household energy burdens, the 3.12 coordination of other available low-income bill payment and 3.13 conservation resources, the effect of the program on service 3.14 disconnections, and the effect of the program on customer 3.15 payment behavior, utility collection costs, arrearages, and bad 3.16 debt.