HF 3279

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the metropolitan council; authorizing the 
  1.3             use of energy forward pricing mechanisms; proposing 
  1.4             coding for new law in Minnesota Statutes, chapter 473. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [473.1293] [ENERGY FORWARD PRICING.] 
  1.7      Subdivision 1.  [AUTHORITY PROVIDED.] For the purposes of 
  1.8   this section, the term "energy" means electricity, natural gas, 
  1.9   heating oil, diesel fuel, or any other energy source used in 
  1.10  metropolitan council operations.  Notwithstanding any other law 
  1.11  to the contrary, the council may purchase and sell energy 
  1.12  futures contracts, or options on energy futures contracts, as a 
  1.13  forward pricing mechanism for its operations. 
  1.14     Subd. 2.  [LIMITATIONS.] (a) Forward pricing transactions 
  1.15  made under this section must be made only under the conditions 
  1.16  in paragraphs (b), (c), and (d). 
  1.17     (b) The amount of energy forward priced must not exceed the 
  1.18  estimated energy usage for council operations for the period of 
  1.19  time covered by the energy futures contracts and options on 
  1.20  energy futures contracts. 
  1.21     (c) The holding period and expiration date for any energy 
  1.22  futures contracts, and options on energy futures contracts, must 
  1.23  not exceed 13 months from the trade date of the transaction. 
  1.24     (d) A separate futures and options account must be 
  1.25  established for each operational energy for which forward 
  2.1   pricing is utilized under this section. 
  2.2      Subd. 3.  [WRITTEN POLICIES AND PROCEDURES.] Before 
  2.3   exercising authority under subdivision 1, the council must have 
  2.4   written policies and procedures governing the purchase and sale 
  2.5   of energy futures contracts and options on energy futures 
  2.6   contracts. 
  2.7      Subd. 4.  [OVERSIGHT PROCESS.] Before exercising authority 
  2.8   under subdivision 1, the governing body of the council must 
  2.9   establish an oversight process that provides for review of the 
  2.10  council's utilization of energy futures contracts and options on 
  2.11  energy futures contracts.  This process must include: 
  2.12     (1) internal and/or external audit reviews; 
  2.13     (2) quarterly reports to, and review by, an internal 
  2.14  investment committee; and 
  2.15     (3) internal management control. 
  2.16     Sec. 2.  [APPLICATION.] 
  2.17     Section 1 applies in the counties of Anoka, Carver, Dakota, 
  2.18  Hennepin, Ramsey, Scott, and Washington.  
  2.19     Sec. 3.  [EFFECTIVE DATE.] 
  2.20     This act is effective the day following final enactment.