HF 2732

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2014 01:05pm

A bill for an act
relating to energy; allocating costs of meeting certain local energy goals;
amending Minnesota Statutes 2012, section 216B.36.

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

Section 1.

Minnesota Statutes 2012, section 216B.36, is amended to read:

216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.

new text begin Subdivision 1. new text end

new text begin Fees authorized. new text end

Any public utility furnishing the utility services
enumerated in section 216B.02 or occupying streets, highways, or other public property
within a municipality may be required to obtain a license, permit, right, or franchise
in accordance with the terms, conditions, and limitations of regulatory acts of the
municipality, including the placing of distribution lines and facilities underground. Under
the license, permit, right, or franchise, the utility may be obligated by any municipality to
pay to the municipality fees to raise revenue or defray increased municipal costs accruing
as a result of utility operations, or both. The fee may include but is not limited to a sum
of money based upon gross operating revenues or gross earnings from its operations in
the municipality so long as the public utility shall continue to operate in the municipality,
unless upon request of the public utility it is expressly released from the obligation at any
time by such municipality. Notwithstanding the definition of "public utility" in section
216B.02, subdivision 4, a municipality may require payment of a fee under this section
by a cooperative electric association organized under chapter 308A that furnishes utility
services within the municipality. All existing licenses, permits, franchises, and other
rights acquired by any public utility or municipality prior to April 11, 1974, including the
payment of existing franchise fees, shall not be impaired or affected in any respect by the
passage of this chapter, except with respect to matters of rate and service regulation,
service area assignments, securities, and indebtedness that are vested in the jurisdiction
of the commission by this chapter. However, in the event that a court of competent
jurisdiction determines, or the parties by mutual agreement determine, that an existing
license, permit, franchise, or other right has been abrogated or impaired by this chapter, or
its execution, the municipality affected shall impose and the public utility shall collect
an excise tax on the utility charges which from year to year yields an amount which is
reasonably equivalent to that amount of revenue which then would be due as a fee, charges
or other thing or service of value to the municipality under the franchise, license, or
permit. The authorization shall be over and above taxing limitations including, but not
limited to, those of section 477A.016. Franchises granted pursuant to this section shall be
exempt from the provisions of chapter 80C. For purposes of this section, a public utility
shall include a cooperative electric association.

new text begin Subd. 2. new text end

new text begin City energy goals; cost allocation. new text end

new text begin (a) The incremental cost of any
activities undertaken by a public utility to meet public policy, energy, conservation, or
environmental goals that exceed or supplement comparable statewide goals and are
contained in a franchise agreement or other agreement between a city and a public utility
must be recovered entirely from the ratepayers of the city.
new text end

new text begin (b) For the purposes of this section, "city" means a city of the first class located in
a county with a population greater than 1,000,000 in which the Minnesota corporate
headquarters of the utility providing electric service to the city is located.
new text end