HF 2996

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to utilities; requiring electric utilities to 
  1.3             provide cost and fuel source information to utility 
  1.4             customers; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 216B. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [216B.68] [DEFINITIONS.] 
  1.8      For purposes of sections 216B.68 to 216B.688, the following 
  1.9   terms have the meanings given them: 
  1.10     (1) "commission" means the public utilities commission; 
  1.11     (2) "department" means the department of commerce; 
  1.12     (3) "electric utility" means the persons, their lessees, 
  1.13  trustees, and receivers, separately or jointly, now or hereafter 
  1.14  operating, maintaining, or controlling in Minnesota equipment or 
  1.15  facilities for providing electric service, and that fall within 
  1.16  the definition of "public utility" in section 216B.02, 
  1.17  subdivision 4, and includes equipment and facilities owned by 
  1.18  municipalities, municipal associations, cooperatives, and 
  1.19  cooperative associations; 
  1.20     (4) "jurisdictional electric utilities" means those 
  1.21  electric utilities subject to rate regulation by the commission; 
  1.22  and 
  1.23     (5) "nonjurisdictional electric utilities" means those 
  1.24  electric utilities not subject to rate regulation by the 
  1.25  commission. 
  2.1      Sec. 2.  [216B.682] [PURPOSE.] 
  2.2      The purpose of sections 216B.68 to 216B.688 is to provide 
  2.3   information to electric utility customers for the purposes of 
  2.4   education and awareness. 
  2.5      Sec. 3.  [216B.684] [FUNCTIONAL COST SEPARATION.] 
  2.6      (a) Prior to September 1, 2000, the commission shall 
  2.7   develop guidelines that jurisdictional electric utilities must 
  2.8   use to functionally separate electric generation, transmission, 
  2.9   and distribution assets.  Electric transmission asset separation 
  2.10  guidelines must take into account the seven factors for 
  2.11  determining distribution assets that are specified in Federal 
  2.12  Energy Regulatory Commission orders under United States Code, 
  2.13  title 16, sections 824d and 824e.  To the extent possible, the 
  2.14  guidelines should be equally applicable to the facilities of all 
  2.15  jurisdictional electric utilities. 
  2.16     (b) By February 1, 2001, each jurisdictional electric 
  2.17  utility shall submit to the commission a plan to provide 
  2.18  functionally separated cost information to their customers that 
  2.19  is consistent with the functional guidelines approved by the 
  2.20  commission pursuant to paragraph (a). 
  2.21     (c) By February 1, 2001, each nonjurisdictional electric 
  2.22  utility shall develop (1) guidelines that must be used to 
  2.23  functionally separate their applicable electric generation, 
  2.24  transmission, and distribution assets, and (2) a plan to provide 
  2.25  functionally separated cost information to their customers.  
  2.26  Electric transmission asset separation guidelines must take into 
  2.27  account the seven factors for determining distribution assets 
  2.28  that are specified in the Federal Energy Regulatory Commission 
  2.29  orders under United States Code, title 16, sections 824d and 
  2.30  824e.  To the extent possible, (1) the governing body of each 
  2.31  cooperative electric association must develop guidelines that 
  2.32  are consistent with those approved by the commission pursuant to 
  2.33  paragraph (a); and (2) the governing body of each municipal 
  2.34  electric utility should develop guidelines that take into 
  2.35  consideration those approved by the commission pursuant to 
  2.36  paragraph (a).  The guidelines and the plan for 
  3.1   nonjurisdictional utilities must be submitted to the respective 
  3.2   governing body for approval.  Plans for nonjurisdictional 
  3.3   electric utilities to provide functionally separated cost 
  3.4   information to their customers must also be submitted to the 
  3.5   department for informational purposes only. 
  3.6      (d) By May 1, 2001, the commission shall issue an order 
  3.7   approving or modifying each jurisdictional electric utility's 
  3.8   plan submitted pursuant to paragraph (b) and the respective 
  3.9   governing bodies of nonjurisdictional electric utilities shall 
  3.10  approve or modify each nonjurisdictional electric utility's plan 
  3.11  submitted pursuant to paragraph (c).  The approved plan must 
  3.12  include, but is not limited to, showing functionally separated 
  3.13  cost information on each customer bill no later than July 1, 
  3.14  2001, except that the approved plan of a municipal electric 
  3.15  utility may authorize the functionally separated cost 
  3.16  information, required to be provided no later than July 1, 2001, 
  3.17  to be shown on the customer bill, or on a separate bill insert 
  3.18  included with the customer bill, on at least a biannual basis.  
  3.19  In considering or modifying a utility's plan, the commission and 
  3.20  respective governing bodies shall consider whether the 
  3.21  functionally separated cost information is consistent with: 
  3.22     (1) the cost separation guidelines approved by the 
  3.23  commission or the respective governing body pursuant to 
  3.24  paragraph (a) or (c); and 
  3.25     (2) promoting customer understanding of the information. 
  3.26     (e) Nothing in this section is intended to preclude the 
  3.27  commission or any nonjurisdictional governing body from 
  3.28  implementing an expedited schedule for the functional separation 
  3.29  of any utility cost or pursuing additional functional cost 
  3.30  separation. 
  3.31     Sec. 4.  [216B.686] [FUEL SOURCE INFORMATION.] 
  3.32     By July 1, 2001, electric utilities shall clearly and 
  3.33  prominently identify on customers' bills or in a separate bill 
  3.34  insert, on at least a biannual basis, the percentage of its 
  3.35  total retail energy sales that come from the following 
  3.36  categories of generators:  coal, nuclear, natural gas, wind, 
  4.1   biomass, hydropower, and other.  The category of "other" must be 
  4.2   used for any sources of power whose generation category the 
  4.3   utility cannot reasonably or reliably verify. 
  4.4      Sec. 5.  [216B.687] [CUSTOMER INFORMATION PLAN.] 
  4.5      The department, after consultation with interested parties, 
  4.6   shall design a customer information plan to inform customers of 
  4.7   the issues surrounding retail choice of electric energy 
  4.8   suppliers.  The plan should build upon the cost and fuel source 
  4.9   information provided by sections 216B.684 and 216B.686, and 
  4.10  should inform customers of the issues involved with choosing an 
  4.11  energy supplier, including the price, reliability, and 
  4.12  environmental impacts of various fuels, and other appropriate 
  4.13  issues.  The department shall present the plan to the 
  4.14  legislature by January 1, 2001, and shall implement the plan no 
  4.15  later than the date retail electric customers in the state have 
  4.16  the ability to choose their electric energy supplier. 
  4.17     Sec. 6.  [216B.688] [INFORMATION CONTENT ACCURACY.] 
  4.18     The suppliers of the information shall take reasonable 
  4.19  steps to ensure the validity and accuracy of the information, 
  4.20  such as following accepted standards for reporting and 
  4.21  formatting the data, but may not be held liable for its content.