Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 2769

as introduced - 87th Legislature (2011 - 2012) Posted on 03/12/2012 01:51pm

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

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18
1.19
1.20 1.21 2.1 2.2 2.3
2.4
2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13
2.14 2.15
2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 3.1 3.2 3.3 3.4
3.5

A bill for an act
relating to utilities; requiring utility rates be based primarily on cost of service
between and among consumer classes; making clarifying and technical changes;
making changes to the low-income affordability program; amending Minnesota
Statutes 2010, sections 216B.03; 216B.07; 216B.16, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2010, section 216B.03, is amended to read:


216B.03 REASONABLE RATE.

Every rate made, demanded, or received by any public utility, or by any two or
more public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
and consistent in application to a class of consumersnew text begin and among classes of consumersnew text end.
To the maximum reasonable extent, the commission shall set rates to encourage energy
conservation and renewable energy use and to further the goals of sections 216B.164,
216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in favor of the
consumer. For rate-making purposes a public utility may treat two or more municipalities
served by it as a single class wherever the populations are comparable in size or the
conditions of service are similar.

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 2010, section 216B.07, is amended to read:


216B.07 RATE PREFERENCE PROHIBITED.

No public utility shall, as to rates or service, make or grant any unreasonable
preference or advantage to any person new text beginor class of consumers new text endor subject any person new text beginor class
of consumers
new text endto any unreasonable prejudice or disadvantage.

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 2010, section 216B.16, is amended by adding a subdivision
to read:


new text begin Subd. 6e. new text end

new text begin Revenue allocation among consumer classes. new text end

new text begin Cost of service shall
be the primary consideration in the commission's determination of revenue allocation
among consumer classes. Factors other than cost of service, including impact on business
development and job growth, may also be considered and evaluated by the commission
in determining revenue allocations. Revenue allocation among consumer classes that
deviates from the cost of service must be supported by clear and convincing record
evidence.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to filings for rate changes filed on and after that date.
new text end

Sec. 4.

Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
to read:


new text begin Subd. 15a. new text end

new text begin Electric utility low-income affordability program improvements.
new text end

new text begin (a) This subdivision applies only to investor-owned electric public utilities with more than
100,000 residential service customers as of the effective date of this section.
new text end

new text begin (b) The Department of Commerce, in consultation with other interested parties, is
authorized to review and make recommendations to improve low-income affordability
programs under subdivision 15.
new text end

new text begin (c) In addition to the requirements under subdivision 15, any affordability program
implemented by a public utility subject to this subdivision must also:
new text end

new text begin (1) be designed to increase the percentage of low-income residential ratepayers
enrolled in the program;
new text end

new text begin (2) have an adequate and stable source of funding; and
new text end

new text begin (3) operate efficiently and with minimal administrative expenses.
new text end

new text begin (d) The allocation and recovery of costs for affordability programs approved under
this subdivision must be determined on the basis of each public utility's number of
customers. Cost cannot be allocated to rate classes on the basis of revenue or volume of
consumption, and cannot be recovered from ratepayers through a volumetric charge.
new text end

new text begin (e) Any proposed improvements under paragraph (c) are subject to review and
approval by the commission. The Department of Commerce is authorized to administer
or assist in the administration of low-income affordability programs approved by the
commission under this subdivision.
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