HF 3880

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to utilities; limiting utilities' use of natural gas as fuel for generating
electricity and limiting recovery of those costs; amending Minnesota Statutes
2006, sections 216B.16, subdivision 7; 216B.243, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 216B.16, subdivision 7, is amended to read:

Subd. 7.

Energy cost adjustment.

Notwithstanding any other provision of this
chapter, the commission may permit a public utility to file rate schedules containing
provisions for the automatic adjustment of charges for public utility service in direct
relation to changes in: (1) federally regulated wholesale rates for energy delivered through
interstate facilities; (2) direct costs for natural gas delivered; or (3) costs for fuel used in
generation of electricity or the manufacture of gas deleted text begin . deleted text end new text begin ; provided that this subdivision does
not apply to any natural gas costs relating to the dispatch of any generation facility fueled
predominantly by natural gas for any hours in any calendar year in excess of the number
of hours per calendar year that formed the basis of the granting of the certificate of need
for, the approval of the power purchase agreement for, or the rate recovery for the capital
costs of, such facility, as applicable, which costs are deemed to be imprudently incurred
and are not eligible for recovery from ratepayers.
new text end

Sec. 2.

Minnesota Statutes 2006, section 216B.243, is amended by adding a
subdivision to read:

new text begin Subd. 3c. new text end

new text begin Moratorium on gas-fired generation. new text end

new text begin A certificate of need may not be
issued for new or expanded generation facilities using natural gas as the sole or primary
source of fuel or any transmission facilities associated with those generation facilities.
new text end