HF 3209

as introduced - 91st Legislature (2019 - 2020) Posted on 02/13/2020 12:36pm

A bill for an act
relating to energy; requiring utilities to analyze the economics of restricting
nonrenewable generating facilities to seasonal operation; providing a process for
Public Utilities Commission approval of a seasonable operations pilot project;
amending Minnesota Statutes 2018, section 216B.2422, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 2d. new text end

new text begin Nonrenewable seasonal operations analysis. new text end

new text begin (a) Each utility required to file
a resource plan under subdivision 2 must include in the plan an analysis of the economic
and environmental costs and benefits to operate each of the utility's nonrenewable generating
units on a seasonal basis. The analysis must include:
new text end

new text begin (1) for each of the next three years, an estimate of the amount of excess generating
capacity on the utility's grid;
new text end

new text begin (2) for the three most recent years, a list of the dates on which each nonrenewable
generating unit was not committed to the Midcontinent Independent System Operator as a
result of economics;
new text end

new text begin (3) for each of the next three years, a comparison of the estimated reduction in variable
costs to operate each unit on a seasonal basis, including but not limited to operations and
maintenance costs, capital expenditures, and the associated reduction in revenues;
new text end

new text begin (4) for each of the next three years, the estimated reduction in carbon dioxide and criteria
pollutant emissions at units operating on a seasonal basis, including projections for the
economic value of those reductions calculated using the environmental costs established
by the commission under subdivision 3;
new text end

new text begin (5) the impact of seasonal operation on the reliability of the utility's grid;
new text end

new text begin (6) the impact of different Midcontinent Independent System Operator auction clearing
prices on the economics of seasonal operation;
new text end

new text begin (7) a discussion regarding what seasonal operations require modification to comply with
Midcontinent Independent System Operator and Federal Energy Regulatory Commission
rules and regulations;
new text end

new text begin (8) whether additional operational flexibility is required to meet contingencies that
develop under seasonal operation; and
new text end

new text begin (9) any other information requested by the commission.
new text end

new text begin (b) For the purposes of this subdivision, "seasonal operation" or "seasonal basis" means
operating a nonrenewable electric generating unit only during the months of June through
August and December through February, while retaining the ability to restart the idled plant
in other months.
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 an integrated resource plan filed on or after that date.
new text end

Sec. 2.

new text begin [216B.2427] SEASONAL OPERATIONS PLAN.
new text end

new text begin (a) As part of an integrated resource plan or via a separate filing, an electric utility may
file for the commission's review and approval a plan to implement a pilot project to operate
one or more of its nonrenewable electric generating facilities on a seasonal basis. The plan
must include:
new text end

new text begin (1) the analysis required under section 216B.2422, subdivision 2d;
new text end

new text begin (2) the proposed changes in operation and the duration of those changes;
new text end

new text begin (3) a description of the data collected by the utility from the pilot project;
new text end

new text begin (4) a discussion regarding how the electric utility proposes to evaluate the data collected;
new text end

new text begin (5) protections employed by the electric utility to ensure the pilot project does not
unreasonably increase rates to ratepayers or negatively impact the utility's ability to provide
reliable electric service; and
new text end

new text begin (6) a schedule of reports made by the utility to the commission during and after pilot
project operations, including a description of the data and analyses the reports will contain.
new text end

new text begin (b) The commission may approve, modify, or reject a plan. An electric utility may elect
not to implement a plan modified by the commission.
new text end

new text begin (c) The commission may approve a plan if it finds that the plan:
new text end

new text begin (1) produces useful information on the costs and benefits of seasonal operations as a
means of reducing the electric utility's greenhouse gas emissions;
new text end

new text begin (2) does not jeopardize reliable electric service to ratepayers; and
new text end

new text begin (3) does not unreasonably increase electric rates.
new text end

new text begin (d) An electric utility implementing an approved pilot project under this section is
authorized to recover prudently incurred costs, including fuel costs, resulting from
implementation of the plan.
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