HF 2877

as introduced - 88th Legislature (2013 - 2014) Posted on 03/10/2014 01:08pm

A bill for an act
relating to energy; requiring a community choice aggregation program study;
appropriating money.

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

Section 1. new text begin COMMUNITY CHOICE AGGREGATION PROGRAM STUDY.
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new text begin (a) The commissioner of commerce shall contract with an independent consultant to
conduct a study of the benefits, costs, and risks of authorizing municipalities in Minnesota
to implement a community choice aggregation program. The independent consultant shall
be selected through a request for proposal process.
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new text begin (b) The study must examine existing community choice aggregation programs
operating in the six states that have passed enabling legislation to date, and must analyze:
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new text begin (1) the different authorities granted to municipalities to implement community
choice aggregation programs;
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new text begin (2) the different methods used by municipalities to adopt community choice
aggregation programs;
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new text begin (3) the level and degree of stability of customer electricity rates, the growth of
renewable energy facilities serving or located within the municipality, the energy supply
mix, and the impact on the rate of conservation investments made in the municipality
under community choice aggregation programs as compared with the same measures
achieved by the utility previously supplying electricity to those customers;
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new text begin (4) the different methods that allow customers to opt out of a community choice
aggregation program if they wish;
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new text begin (5) the impacts on the utility providing electricity distribution to community choice
aggregation program customers of removing its energy supply function for those customers;
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new text begin (6) the ways in which allowing municipalities to implement community choice
aggregation programs will have a different effect in Minnesota compared to deregulated
states that already have similar programs, given Minnesota's status as a nonderegulated
state with respect to retail electricity sales; and
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new text begin (7) barriers to implementing community choice aggregation programs in Minnesota,
and recommendations as to how they may be overcome.
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new text begin (c) The report shall also recommend organizational structures, authorities, and
policies a community choice aggregation program in Minnesota should have if it is to
be most effective.
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new text begin (d) The report required under this section must be submitted to the chair and ranking
minority members of the senate and house committees with primary jurisdiction over
energy policy by January 15, 2015.
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new text begin (e) For the purposes of this section, "community choice aggregation program" means
a program by means of which a municipality aggregates the electricity demands of its
residents to (1) directly purchase electricity in wholesale markets, and (2) develop, own,
and operate electric generation facilities while utilizing the distribution system of the utility
that previously serviced those customers to deliver electricity directly to those customers.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $....... is appropriated in fiscal year 2015 from the general fund for the purpose of
conducting the community choice aggregation program study described in section 1.
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Sec. 3. new text begin EFFECTIVE DATE.
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new text begin Sections 1 and 2 are effective the day following final enactment.
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