HF 2278

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; establishing propane prepurchase program in Department
of Commerce; providing consumer protections to delivered-fuel customers;
proposing coding for new law in Minnesota Statutes, chapters 216B; 325E.

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

Section 1.

new text begin [216B.0951] PROPANE PREPURCHASE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce shall operate, or
contract to operate, a propane fuel prepurchase fuel program. The commissioner may
contract at any time of the year to purchase the lesser of one-third of the liquid propane
fuel consumed by low-income home energy assistance program recipients during the
previous heating season or the amount that can be purchased with available funds. The
propane fuel prepurchase program must be available statewide through each local agency
that administers the energy assistance program. The commissioner may decide to limit or
not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood
that prepurchasing will not provide fuel-cost savings.
new text end

new text begin Subd. 2. new text end

new text begin Hedge account. new text end

new text begin The commissioner may establish a hedge account with
realized program savings due to prepurchasing. The account must be used to compensate
program recipients an amount up to the difference in cost for fuel provided to the recipient
if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No
more than ten percent of the aggregate prepurchase program savings may be used to
establish the hedge account.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The Department of Commerce shall issue a report by June 30,
2008, made available electronically on its Web site and in print upon request, that contains
the following information:
new text end

new text begin (1) the cost per gallon of prepurchased fuel;
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new text begin (2) the total gallons of fuel prepurchased;
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new text begin (3) the average cost of propane each month between October and the following April;
new text end

new text begin (4) the number of energy assistance program households receiving prepurchased
fuel; and
new text end

new text begin (5) the average savings accruing or benefit increase provided to energy assistance
households.
new text end

Sec. 2.

new text begin [325E.027] DELIVERED-FUEL CONSUMER PROTECTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The terms defined in this section have the meanings
given them.
new text end

new text begin (1) "Customer" means a person who contracts with a vendor for the delivery of
liquid propane gas, or number one or number two fuel oil.
new text end

new text begin (2) "Vendor" means a dealer or distributor of liquid propane gas, or number one
or number two fuel oil.
new text end

new text begin Subd. 2. new text end

new text begin Service to energy assistance recipients. new text end

new text begin No vendor may discontinue
service to, refuse to serve, or otherwise discriminate against any person based on receipt
of assistance from the Low Income Home Energy Assistance Program (LIHEAP).
new text end

new text begin Subd. 3. new text end

new text begin Payment plans; purchasing options. new text end

new text begin Vendors who offer budget billing
or other time payment plans or purchasing options, including keep-fill, pre-buy, and
summer-fill programs, must offer these programs to all customers.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin A fuel oil and propane company with more than 300 customers
must report the following information for the 2007-2008 heating season to the
commissioner of commerce by May 31, 2008:
new text end

new text begin (1) total number of customers served;
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new text begin (2) total number of customers receiving LIHEAP; and
new text end

new text begin (3) separate information for all residential customers and residential customers
receiving LIHEAP on the number of customers (i) refused delivery, (ii) on keep-fill, (iii)
currently on budget-billing or payment plans, and (iv) currently past due on their accounts.
new text end