SF 548

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/06/2012 02:18pm

A bill for an act
relating to energy; authorizing the Public Utilities Commission to approve a
multiyear rate plan for certain utilities; providing for cost recovery for certain
pollution control products; amending Minnesota Statutes 2010, section 216B.16,
subdivision 7, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2010, section 216B.16, subdivision 7, is amended to read:

Subd. 7.

Energy new text begin and emission control products new text end 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; deleted text begin or
deleted text end

(3) costs for fuel used in generation of electricity or the manufacture of gas new text begin ; or
new text end

new text begin (4) prudent costs incurred by a public utility for sorbents, reagents, or chemicals
used to control emissions from an electric generation facility, provided that these costs are
not recovered elsewhere in rates. The utility must track and report annually the volumes
and costs of sorbents, reagents, or chemicals using separate accounts by generating plant new text end .

Sec. 2.

Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Multiyear rate plan. new text end

new text begin (a) A public utility may propose, and the
commission may approve, approve as modified, or reject a multiyear rate plan as provided
in this subdivision. The term "multiyear rate plan" refers to a plan establishing the rates the
utility may charge for each year of the specified period of years to be covered by the plan.
The commission may approve a multiyear rate plan only if it finds that the plan establishes
just and reasonable rates for the utility, applying the factors described in subdivision 6.
new text end

new text begin (b) Rates charged under a multiyear rate plan must be based only upon the utility's
reasonable and prudent costs of service over the term of the plan, as determined by the
commission, provided that the costs are not being recovered elsewhere in rates. Rate
adjustments authorized under subdivisions 6b and 7 may continue outside of a plan
authorized under this subdivision.
new text end

new text begin (c) The commission may, by order, establish terms, conditions, and procedures
necessary to implement this subdivision, including a mechanism to periodically examine
a multiyear rate plan to ensure rates charged under the plan remain just and reasonable.
In reviewing a multiyear rate plan proposed in a general rate case under this section,
the commission may extend the time requirements for issuance of a final determination
prescribed in this section by an additional 90 days beyond its existing authority under
subdivision 2, paragraph (f).
new text end