SF 1575

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural gas rates; allowing for recovery
of certain infrastructure replacement costs separately
from a general rate case; proposing coding for new law
in Minnesota Statutes, chapter 216B.

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

Section 1.

[216B.1635] RECOVERY OF ELIGIBLE
INFRASTRUCTURE REPLACEMENT COSTS BY GAS UTILITIES.

Subdivision 1.

Definitions.

(a) "Gas utility" means a
public utility as defined in section 216B.02, subdivision 4,
that furnishes natural gas service to retail customers.

(b) "Gas utility infrastructure costs" or "GUIC" means gas
utility projects that:

(1) do not serve to increase revenues by directly
connecting the infrastructure replacement to new customers;

(2) are in service but were not included in the gas
utility's rate base in its most recent general rate case; and

(3) replace or modify existing infrastructure.

(c) "Gas utility projects" means relocation and replacement
of natural gas facilities located in the public right-of-way
required by the construction or improvement of a highway, road,
street, public building, or other public work by or on behalf of
the United States, the State of Minnesota, or a political
subdivision.

Subd. 2.

Filing.

(a) The commission may approve a gas
utility's petition for a rate schedule to recover GUIC under
this section.

(b) The filing is subject to the following:

(1) a gas utility may submit a filing under this section no
more than once per year;

(2) a gas utility must file sufficient information to
satisfy the commission regarding the proposed GUIC or be subject
to denial by the commission, which includes, but is not limited
to:

(i) the government entity ordering the project;

(ii) the location, description, and costs associated with
the project;

(iii) a description of the costs, and salvage value, if
any, associated with the existing infrastructure replaced or
modified as a result of the project;

(iv) the magnitude and timing of any known future gas
utility projects that the utility may seek to recover under this
section;

(v) the magnitude of GUIC in relation to the gas utility's
base revenue as approved by the commission in the gas utility's
most recent general rate case, exclusive of gas purchase costs
and transportation charges;

(vi) the magnitude of GUIC in relation to the gas utility's
capital expenditures since its most recent general rate case;

(vii) the amount of time since the utility last filed a
general rate case and the utility's reasons for seeking recovery
outside of a general rate case; and

(viii) documentation supporting the calculation of the GUIC.

Subd. 3.

Commission authority.

The commission may issue
orders and adopt rules necessary to implement and administer
this section.

EFFECTIVE DATE.

This section is effective the day
following final enactment.

Sec. 2. REPORT TO LEGISLATURE.

The Department of Commerce shall review the operation and
impact of the GUIC recovery mechanism established under
Minnesota Statutes, section 216B.1635, on ratepayers and the
utility and submit a report of its findings and recommendations
to the legislature four years after the effective date of this
section.