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SF 1456

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 03/03/2020 09:34am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to energy; requiring electric utilities to meet resource needs using
carbon-free resources; requiring a study; requiring a cost of service evaluation;
amending Minnesota Statutes 2018, sections 216B.03; 216B.16, subdivisions 6,
13; 216B.1645, subdivisions 1, 2; 216B.1691, subdivision 9; 216B.2422,
subdivision 2, by adding subdivisions; 216B.243, subdivision 3b; Minnesota
Statutes 2019 Supplement, section 216B.2422, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapters 216B; 216C; repealing Minnesota
Statutes 2018, section 216B.2422, subdivision 4.

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

Section 1.

Minnesota Statutes 2018, section 216B.03, is amended to read:


216B.03 REASONABLE RATE.

Every rate made, demanded, or received by any public utility, or by any two or more
public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
and consistent in application to a class of consumers. To the maximum reasonable extent,
the commission shall set rates deleted text beginto encouragedeleted text end new text beginbased on cost of service, while considering
noncost factors such as economic growth, job retention,
new text endenergy conservationnew text begin,new text end and renewable
energy use and to further the goals of sections 216B.164, new text begin216B.1696, new text end216B.241, and 216C.05.
Any doubt as to reasonableness should be resolved in favor of the consumer. For rate-making
purposes a public utility may treat two or more municipalities served by it as a single class
wherever the populations are comparable in size or the conditions of service are similar.

Sec. 2.

Minnesota Statutes 2018, section 216B.16, subdivision 6, is amended to read:


Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers
under this chapter to determine just and reasonable rates for public utilities, shall give due
consideration to the public need for adequate, efficient, and reasonable service and to the
need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
the service, including adequate provision for depreciation of its utility property used and
useful in rendering service to the public, and to earn a fair and reasonable return upon the
investment in such property. In determining the rate base upon which the utility is to be
allowed to earn a fair rate of return, the commission shall give due consideration to evidence
of the cost of the property when first devoted to public use, to prudent acquisition cost to
the public utility less appropriate depreciation on each, to construction work in progress, to
offsets in the nature of capital provided by sources other than the investors, and to other
expenses of a capital nature. For purposes of determining rate base, the commission shall
consider the original cost of utility property included in the base and shall make no allowance
for its estimated current replacement value. If the commission orders a generating facility
to terminate its operations before the end of the facility's physical life in order to comply
with a specific state or federal energy statute or policynew text begin, or as part of a resource planning
order under section 216B.2422
new text end, the commission may allow the public utility to recover any
positive net book value of the facility as determined by the commission.

Sec. 3.

Minnesota Statutes 2018, section 216B.16, subdivision 13, is amended to read:


Subd. 13.

Economic and community development.

The commission may allow a
public utility to recover from ratepayers the expenses incurred fornew text begin: (1)new text end economic and
community developmentnew text begin; and (2) efforts to maximize employment of local workers to
construct and maintain generation facilities that supply power to the utility's customers
new text end.

Sec. 4.

new text begin [216B.1623] DEMAND-SIDE MANAGEMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Demand" means the maximum integrated hourly sum of load, expressed in kilowatts,
imposed by an eligible customer on the system of an investor-owned electric utility, over
a specified period, such as a day, month, or year.
new text end

new text begin (c) "Demand response customer facilities" is that portion of the load that eligible
customers commit to participation in a demand-side management program.
new text end

new text begin (d) "Demand-side management program" is any program under which demand response
customer facilities are compensated for reducing demand or energy to a level specified in
a contract or tariff, during both emergency and normal economic conditions.
new text end

new text begin (e) "Eligible customer" means those customers of an investor-owned electric utility that
are large industrial customers.
new text end

new text begin (f) "Energy" means an amount of electricity that is consumed over a period of time and
measured in kilowatt-hours.
new text end

new text begin (g) "Large industrial customer" means a customer that either (1) takes electric service
at a voltage of 69,000 voltage or greater; or (2) imposes a peak demand on an investor-owned
electric utility's system of not less than 10,000 kilowatts at a single site, based upon the sum
of measured demand of all meters for all buildings, structures, equipment, and installation
at that single site, and including demand offset by on-site generation facilities.
new text end

new text begin Subd. 2. new text end

new text begin Demand-side management program. new text end

new text begin (a) No later than January 1, 2021, an
investor-owned electric utility shall petition the commission for approval of a new
demand-side management program, or seek modification of an existing demand-side
management program.
new text end

new text begin (b) The commission may approve, disapprove, or modify a demand-side management
program. Any demand-side management program approved by the commission must:
new text end

new text begin (1) be open to all eligible customers and designed in a manner that reasonably encourages
eligible customer participation in the demand-side management program;
new text end

new text begin (2) fairly compensates the eligible customer, which shall include consideration for the
eligible customer's participation in the demand-side management program, any actual
reduction of demand or energy on the investor-owned electric utility's system, any reduced
need of the investor-owned electric utility for new capacity resources, and any reduction to
the environmental costs, established under section 216B.2422, subdivision 3, associated
with generating resources not utilized due to the demand response customer facilities;
new text end

new text begin (3) allow the investor-owned electric utility to recover the actual cost of compensation
pursuant to a cost-recovery rider or other mechanism provided, however, that the utility
shall not recover any cost of compensation, or other cost associated with a demand-side
management program, from any demand response customer facility; and
new text end

new text begin (4) be reasonably consistent with programs offered by the Midcontinent Independent
System Operator, or its successor.
new text end

Sec. 5.

Minnesota Statutes 2018, section 216B.1645, subdivision 1, is amended to read:


Subdivision 1.

Commission authority.

Upon the petition of a public utility, the Public
Utilities Commission shall approve or disapprove power purchase contracts, investments,
or expenditures entered into or made by the utility to satisfy the wind and biomass mandates
contained in sections 216B.169, 216B.2423, and 216B.2424, and to satisfy the renewable
energy objectives and standards set forth in section 216B.1691, including reasonable
investments and expenditures made to:

(1) transmit the electricity generated from sources developed under those sections that
is ultimately used to provide service to the utility's retail customers, including studies
necessary to identify new transmission facilities needed to transmit electricity to Minnesota
retail customers from generating facilities constructed to satisfy the renewable energy
objectives and standards, provided that the costs of the studies have not been recovered
previously under existing tariffs and the utility has filed an application for a certificate of
need or for certification as a priority project under section 216B.2425 for the new
transmission facilities identified in the studies;

(2) provide storage facilities for renewable energy generation facilities that contribute
to the reliability, efficiency, or cost-effectiveness of the renewable facilities; deleted text beginor
deleted text end

(3) develop renewable energy sources from the account required in section 116C.779deleted text begin.deleted text endnew text begin;
or
new text end

new text begin (4) upgrade or modify existing transmission facilities primarily used to transmit electricity
generated by a carbon-free resource, as defined in section 216B.2422, subdivision 1,
paragraph (f), regardless of whether the public utility has satisfied the standards set forth
in section 216B.1691.
new text end

Sec. 6.

Minnesota Statutes 2018, section 216B.1645, subdivision 2, is amended to read:


Subd. 2.

Cost recovery.

The expenses incurred by the utility over the duration of the
approved contract or useful life of the investment deleted text beginanddeleted text endnew text begin,new text end expenditures made pursuant to section
116C.779 deleted text beginshall bedeleted text endnew text begin, and efforts to maximize employment of local workers to construct and
maintain generation facilities that supply power to the utility's customers, are
new text end recoverable
from the ratepayers of the utility, to the extent they are not offset by utility revenues
attributable to the contracts, investments, or expenditures. Upon petition by a public utility,
the commission shall approve or approve as modified a rate schedule providing for the
automatic adjustment of charges to recover the expenses or costs approved by the commission
under subdivision 1, which, in the case of transmission expenditures, are limited to the
portion of actual transmission costs that are directly allocable to the need to transmit power
from the renewable sources of energy. The commission may not approve recovery of the
costs for that portion of the power generated from sources governed by this section that the
utility sells into the wholesale market.

Sec. 7.

Minnesota Statutes 2018, section 216B.1691, subdivision 9, is amended to read:


Subd. 9.

Local benefits.

The commission shall take all reasonable actions within its
statutory authority to ensure this section is implemented to maximize benefits to Minnesota
citizensnew text begin and local workers as defined in section 216B.2422, subdivision 1new text end, balancing factors
such as local ownership of or participation in energy production, new text beginlocal job impacts as defined
in section 216B.2422, subdivision 1,
new text enddevelopment and ownership of eligible energy
technology facilities by independent power producers, Minnesota utility ownership of
eligible energy technology facilities, the costs of energy generation to satisfy the renewable
standard, and the reliability of electric service to Minnesotans.

Sec. 8.

Minnesota Statutes 2019 Supplement, section 216B.2422, subdivision 1, is amended
to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more
of electric power and serving, either directly or indirectly, the needs of 10,000 retail
customers in Minnesota. Utility does not include federal power agencies.

(c) "Renewable energy" means electricity generated through use of any of the following
resources:

(1) wind;

(2) solar;

(3) geothermal;

(4) hydro;

(5) trees or other vegetation;

(6) landfill gasnew text begin, anaerobic digestion, and mixed municipal solid waste or refuse-derived
fuel from mixed municipal solid waste
new text end; or

(7) predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge.

(d) "Resource plan" means a set of resource options that a utility could use to meet the
service needs of its customers over a forecast period, including an explanation of the supply
and demand circumstances under which, and the extent to which, each resource option
would be used to meet those service needs. These resource options include using,
refurbishing, and constructing utility plant and equipment, buying power generated by other
entities, controlling customer loads, and implementing customer energy conservation.

(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating
resource of deleted text begin30deleted text end new text begin40 new text endmegawatts or greater.

(f) new text begin"Carbon-free resource" means a generation facility that, when operating, does not
contribute to statewide greenhouse gas emissions, as defined in section 216H.01, subdivision
2, or a program or practice that reduces the need for energy generation. Carbon-free resource
includes a generation facility, or a program or practice, that uses one or more of the following:
new text end

new text begin (1) renewable energy;
new text end

new text begin (2) energy storage;
new text end

new text begin (3) conservation, energy efficiency, and load management as defined by section 216B.241,
subdivision 1;
new text end

new text begin (4) nuclear energy;
new text end

new text begin (5) hydrogen technologies; or
new text end

new text begin (6) power generation utilizing carbon capture and storage technology, if that carbon
capture and storage facility captures, on an annual basis, at least 80 percent of the carbon
dioxide the facility produces from burning fuel to generate electricity; and
new text end

new text begin (i) injects carbon dioxide captured into a geologic formation to prevent its release into
the atmosphere;
new text end

new text begin (ii) makes commercial use of the carbon dioxide captured, including by transferring it
to a third party for commercial use; or
new text end

new text begin (iii) employs a combination of items (i) and (ii).
new text end

new text begin (g) new text end"Energy storage system" means a commercially available technology that:

(1) uses mechanical, chemical, or thermal processes to:

(i) store energydeleted text begin, including energy generated from renewable resources and energy that
would otherwise be wasted,
deleted text end and deliver the stored energy for use at a later time; or

(ii) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time;

(2) is composed of stationary equipment;

(3) if being used for electric grid benefits, is operationally visible and capable of being
controlled by the distribution or transmission entity managing it, to enable and optimize the
safe and reliable operation of the electric system; deleted text beginand
deleted text end

(4) new text beginfacilitates the use of other carbon-free resources; and
new text end

new text begin (5) new text endachieves any of the following:

(i) reduces peak or electrical demand;

(ii) defers the need or substitutes for an investment in electric generation, transmission,
or distribution assets;

(iii) improves the reliable operation of the electrical transmission or distribution systemsdeleted text begin,
while ensuring transmission or distribution needs are not created
deleted text end; or

(iv) lowers customer costs by storing energy when the cost of generating or purchasing
deleted text begin itdeleted text endnew text begin energynew text end is low and delivering deleted text beginitdeleted text end new text beginenergy new text endto customers when the costs are high.

new text begin (h) "Carbon-emitting resource" means a generation facility that is not a carbon-free
resource.
new text end

new text begin (i) "Local job impacts" means the impacts of an integrated resource plan, a power
purchase agreement, or a certificate of need for a new or refurbished energy facility on the
availability of high-quality construction and mining employment opportunities to local
workers.
new text end

new text begin (j) "Local workers" means workers employed to construct or maintain energy
infrastructure that are Minnesota residents, residents of the utility's service territory, or who
permanently reside within 150 miles of a proposed new or refurbished energy facility.
new text end

Sec. 9.

Minnesota Statutes 2018, section 216B.2422, subdivision 2, is amended to read:


Subd. 2.

Resource plan filing and approval.

(a) A utility shall file a resource plan with
the commission periodically in accordance with rules adopted by the commission. The
commission shall approve, reject, or modify the plan of a public utility, as defined in section
216B.02, subdivision 4, consistent with the public interest.

(b) In the resource plan proceedings of all other utilities, the commission's order shall
be advisory and the order's findings and conclusions shall constitute prima facie evidence
which may be rebutted by substantial evidence in all other proceedings. With respect to
utilities other than those defined in section 216B.02, subdivision 4, the commission shall
consider the filing requirements and decisions in any comparable proceedings in another
jurisdiction.

(c) As a part of its resource plan filing, a utility shall include the least cost plan for
meeting 50 and 75 percent of all new text beginnewnew text end energy needs from both new and refurbished generating
facilities through deleted text begina combination of conservation and renewable energydeleted text end new text begincarbon-free new text endresources.

Sec. 10.

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


new text begin Subd. 4a. new text end

new text begin Preference for carbon-free resources. new text end

new text begin (a) The commission shall not approve
a new or refurbished carbon-emitting resource in Minnesota in an integrated resource plan
or a certificate of need, pursuant to section 216B.243, nor shall the commission approve a
power purchase agreement for a new or refurbished carbon-emitting resource in Minnesota
or allow rate recovery pursuant to section 216B.16 for such a carbon-emitting resource,
unless the utility has demonstrated that a carbon-free resource, alone or in combination with
other carbon-free resources is not in the public interest.
new text end

new text begin (b) When making the public interest determination under paragraph (a), the commission
must consider, based on projections in the integrated resource plan:
new text end

new text begin (1) whether the resource need must be met by a carbon-emitting resource in Minnesota
to avoid an unreasonable increase in customer rates or a decrease in local or regional grid
reliability or energy adequacy;
new text end

new text begin (2) whether the resource need could be met at lower cost by utilizing existing
infrastructure or site that has previously held electric generation;
new text end

new text begin (3) whether the resource need could be met at a lower cost by refueling an existing
carbon-emitting resource with a less-carbon-intensive or noncarbon fuel supply including,
but not limited to, combinations of natural gas, bionatural gas, or hydrogen, whether the
proposed resource helps the utility facilitate the reduction of greenhouse gas emissions or
achieve the greenhouse gas reduction goals under section 216H.02, the renewable energy
standard under section 216B.1691, or the solar energy standard under section 216B.1691,
subdivision 2f;
new text end

new text begin (4) utility and ratepayer impacts resulting from the intermittent nature of renewable
energy facilities, including, but not limited to, the costs of purchasing wholesale electricity
in the market and the costs of providing reliability and ancillary services;
new text end

new text begin (5) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
changes in transmission costs, portfolio diversification, and environmental compliance
costs, as well as utility and ratepayer impacts that might result from additional investment
in carbon-emitting resources;
new text end

new text begin (6) ratepayer impacts of resource options on customer bills and utility rates; any doubt
regarding the various resource options before the commission must be resolved in favor of
supporting the economy, job growth, and job retention; and
new text end

new text begin (7) the contribution of proposed resources to local and regional reliability considering
the ability of proposed resources to provide energy, capacity and essential reliability services
needed by the utility customers or the electric system, including to the extent feasible,
frequency response, balancing services, or voltage control.
new text end

new text begin (c) If the commission finds the utility has demonstrated a carbon-free resource or
combination of carbon-free resources is not in the public interest under paragraph (a), the
commission may approve a utility's proposal for a new or refurbished carbon-emitting
resource.
new text end

new text begin (d) This subdivision does not apply to energy facilities in a resource plan previously
approved by the commission, an energy facility approved by the legislature under Laws
2017, chapter 5, or to commission approval of an affiliated interest agreement for an energy
facility in docket number E015/AI-17-568.
new text end

new text begin (e) The commission shall not approve a resource plan under this subdivision of a public
utility that has at least 100,000 customers, but no more than 200,000 customers in Minnesota,
if the resource plan includes the retirement of a generating facility that has a positive net
book value, unless the public utility has demonstrated that:
new text end

new text begin (1) the retirement is consistent with the public interest;
new text end

new text begin (2) the resource plan promotes the energy policy of the state to ensure competitive electric
rates for energy-intensive, trade-exposed customers, as required in section 216B.1696,
subdivision 2, paragraph (a); and
new text end

new text begin (3) the costs of operating and maintaining the facility exceed the costs of retirement
based on the following factors:
new text end

new text begin (i) all costs associated with decommissioning the generating resource;
new text end

new text begin (ii) any stranded asset costs, including but not limited to, costs that have not been
depreciated and recovered by the utility having an ownership interest in the asset;
new text end

new text begin (iii) any investments in replacement generation, including the utility's transmission and
distribution systems, to ensure all utility system reliability, energy, and capacity needs are
met once the generating resource is retired;
new text end

new text begin (iv) any projected investments necessary to continue operating the generation facility;
and
new text end

new text begin (v) any operation and maintenance saving from retiring the generation facility.
new text end

new text begin (f) If the commission approves a resource plan that includes the retirement of a
carbon-emitting resource owned by a public utility, the public utility shall be entitled to
own the generation, transmission, and other facilities necessary to replace the accredited
capacity and energy of the retiring facility, provided:
new text end

new text begin (1) the resource plan of the public utility with more than 200,000 retail electric customers
in Minnesota results in an 80 percent or greater reduction in carbon emissions from 2005
levels by the year 2030 and thereafter;
new text end

new text begin (2) the resource plan of the public utility with between 50,000 and 200,000 retail electric
customers in Minnesota results in a 65 percent reduction in carbon emissions from 2005
levels by the year 2030 and thereafter; and
new text end

new text begin (3) each public utility demonstrates its ownership of replacement resources is in the
public interest, considering customer impacts and benefits.
new text end

new text begin (g) Nothing in this subdivision impacts a decision to continue operating a peaking
generation facility with no more than ten percent annual capacity factor that is generating
energy in Minnesota.
new text end

new text begin (h) This subdivision does not apply to utility decisions to purchase capacity, energy, and
ancillary services for up to an annual period from any independent system operator market
or auction or to otherwise participate in a wholesale market administered by an independent
system operator.
new text end

Sec. 11.

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


new text begin Subd. 4b. new text end

new text begin Preference for local job creation. new text end

new text begin As a part of its resource plan filing, a utility
must report, to the extent known, on associated local job impacts and the steps the utility
and its energy suppliers and contractors are taking to maximize the availability of construction
employment opportunities for local workers. The commission must consider local job
impacts and give preference to proposals that maximize the creation of construction
employment opportunities for local workers, consistent with the public interest, when
evaluating any utility proposal that involves the selection or construction of facilities used
to generate or deliver energy to serve the utility's customers, including but not limited to an
integrated resource plan, a certificate of need, a power purchase agreement, or commission
approval of a new or refurbished electric generation facility.
new text end

Sec. 12.

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


new text begin Subd. 6a. new text end

new text begin Resource planning conference. new text end

new text begin The commissioner of commerce may, as
circumstances warrant, convene utilities subject to this section and stakeholders interested
in resource planning to: (1) facilitate the sharing of best practices and planning innovations
from one utility resource plan to the next; (2) help resolve issues that impact all utilities
during the resource plan development process; and (3) promote coordination across resource
plans. The commissioner must seek input from likely attendees regarding topics the resource
planning conference should cover. In addition, the agenda for the conference should review
key decisions by the Federal Energy Regulatory Commission and the North American
Electric Reliability Corporation that could impact resource planning, as well as recent and
ongoing transmission studies and market innovations from the Midcontinent Independent
System Operator.
new text end

Sec. 13.

Minnesota Statutes 2018, section 216B.243, subdivision 3b, is amended to read:


Subd. 3b.

deleted text beginNuclear power plant; new construction prohibited; relicensingdeleted text endnew text begin Additional
storage of spent nuclear fuel
new text end.

deleted text begin (a) The commission may not issue a certificate of need for
the construction of a new nuclear-powered electric generating plant.
deleted text end

deleted text begin (b)deleted text end Any certificate of need for additional storage of spent nuclear fuel for a facility
seeking a license extension shall address the impacts of continued operations over the period
for which approval is sought.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

new text begin [216C.46] POWER PLANT HOST COMMUNITY TRANSITION
PLANNING.
new text end

new text begin The commissioner of commerce must coordinate with the commissioner of labor and
industry and the commissioner of employment and economic development to develop plans,
programs, and other recommendations to mitigate the impacts on host communities in
Minnesota and workers resulting from the eventual retirement of large generation facilities.
The commissioners must coordinate this work with representatives of: (1) the local
government units that host large generation facilities; (2) the workers at large generation
facilities, including full-time employees and contractors; and (3) the utilities that own large
generation facilities.
new text end

Sec. 15. new text beginCOORDINATED ELECTRIC TRANSMISSION STUDY.
new text end

new text begin (a) The commissioner of commerce shall request the Midcontinent Independent System
Operator (MISO) to conduct an engineering study of the impacts on reliability and estimated
costs and benefits of operational changes and enhancements to the transmission system
necessary to support increased use of carbon-free electrical generation sources for Minnesota
and throughout the MISO footprint, along with the possible eventual retirement of existing
generation resources serving Minnesota customers.
new text end

new text begin (b) If the request is accepted, MISO is responsible for completing the study work, with
the support of the electric utilities subject to transmission planning under Minnesota Rules,
chapter 7848. Prior to the start of the study, MISO shall appoint a technical review committee
with experience and expertise in electric transmission system engineering, power system
operation, and renewable and carbon-free energy technologies to review the study's proposed
methods, work plan, models, and preliminary and near final results. The technical review
committee shall be chaired by a representative from MISO and include representatives from
Minnesota electric utilities, including one representative from a utility that owns nuclear
generation, one from a generation and transmission cooperative, one from a transmission
company, one from a municipal utility, and one from a municipal power agency. In addition,
MISO will work with state utility regulators, as well as stakeholders from across the
electricity industry, nongovernmental organization, consumer advocates, and labor
representatives.
new text end

new text begin (c) To the extent possible, the study shall integrate and optimize the study and resulting
potential transmission projects with previous and current study efforts, coordinate with
neighboring regions to the MISO footprint and adjacent regional transmission organizations,
and identify barriers, challenges, and opportunities.
new text end

new text begin (d) The study shall include, but is not limited to:
new text end

new text begin (1) establishing scenarios for study of increased carbon-free energy resources and energy
storage and retirement of existing generation;
new text end

new text begin (2) identifying new power system operating challenges and possible mitigation strategies
and areas where new strategies will be required but are not yet discernible;
new text end

new text begin (3) developing conceptual level plans of the required new and modified transmission,
including time frames and indicative cost;
new text end

new text begin (4) identifying when ascertainable, likely new significant transmission projects or
modifications, including time frames and indicative cost; and
new text end

new text begin (5) identifying functional requirements for and time frames when nontransmission
technology may be needed to augment the transmission in conceptual plan and the new
projects or modifications.
new text end

new text begin (e) The first meeting of the technical review committee shall be held no later than June
15, 2020, and the study should be complete, with a comprehensive report submitted to the
Public Utilities Commission no later than December 1, 2021.
new text end

Sec. 16. new text beginCOST OF SERVICE ALLOCATION EVALUATION.
new text end

new text begin (a) The Public Utilities Commission, in consultation with the commissioner of commerce,
shall evaluate the current cost of service allocation for public utilities, as defined in Minnesota
Statutes, section 216B.02, providing electric service in this state. The commission shall
report for each utility: (1) the cost allocation between residential, commercial, industrial,
and energy-intensive trade exposed customers, as defined in Minnesota Statutes, section
216B.1696, subdivision 1, paragraph (c), relative to a single coincident peak cost allocation
methodology; and (2) whether rates for the utility's energy intensive trade exposed customers
comply with the state policy of ensuring competitive rates for those customers as established
in Minnesota Statutes, section 216B.1696.
new text end

new text begin (b) The commission shall also include in the evaluation: (1) an analysis of historical
rates for each public utility for the previous ten years; and (2) any recommendations to help
ensure that future electric energy costs remain stable for energy intensive trade exposed
customers.
new text end

new text begin (c) The commission shall submit the evaluation required under this section to the chairs
and ranking minority members of legislative committees with jurisdiction over energy policy
and finance by January 15, 2021.
new text end

Sec. 17. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 216B.2422, subdivision 4, new text end new text begin is repealed.
new text end

Sec. 18. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 and 14 to 17 are effective August 1, 2020, and apply only to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

APPENDIX

Repealed Minnesota Statutes: S1456-2

216B.2422 RESOURCE PLANNING; RENEWABLE ENERGY.

Subd. 4.

Preference for renewable energy facility.

The commission shall not approve a new or refurbished nonrenewable energy facility in an integrated resource plan or a certificate of need, pursuant to section 216B.243, nor shall the commission allow rate recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the utility has demonstrated that a renewable energy facility is not in the public interest. When making the public interest determination, the commission must consider:

(1) whether the resource plan helps the utility achieve the greenhouse gas reduction goals under section 216H.02, the renewable energy standard under section 216B.1691, or the solar energy standard under section 216B.1691, subdivision 2f;

(2) impacts on local and regional grid reliability;

(3) utility and ratepayer impacts resulting from the intermittent nature of renewable energy facilities, including but not limited to the costs of purchasing wholesale electricity in the market and the costs of providing ancillary services; and

(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility, changes in transmission costs, portfolio diversification, and environmental compliance costs.