SF 1677

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

A bill for an act
relating to certain small electric generators;
extending net energy billing provisions to electricity
generated from livestock manure; amending Minnesota
Statutes 2004, section 216B.164, subdivisions 3, 4.

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

Section 1.

Minnesota Statutes 2004, section 216B.164,
subdivision 3, is amended to read:

Subd. 3.

Purchases; small facilities.

(a) For a
qualifying facility having less than 40-kilowatt capacity, new text begin and
for baseload facilities that generate electricity from a
livestock manure digester system, new text end the customer shall be billed
for the net energy supplied by the utility according to the
applicable rate schedule for sales to that class of customer.
In the case of net input into the utility system by a qualifying
facility having less than 40-kilowatt capacity new text begin or a baseload
facility that generates electricity from a livestock manure
digester system new text end , compensation to the customer shall be at a per
kilowatt hour rate determined under paragraph (b) or (c) of this
subdivision.

(b) In setting rates, the commission shall consider the
fixed distribution costs to the utility not otherwise accounted
for in the basic monthly charge and shall ensure that the costs
charged to the qualifying facility are not discriminatory in
relation to the costs charged to other customers of the utility.
The commission shall set the rates for net input into the
utility system based on avoided costs as defined in the Code of
Federal Regulations, title 18, section 292.101(b)(6), the
factors listed in Code of Federal Regulations, title 18, section
292.304, and all other relevant factors.

(c) Notwithstanding any provision in this chapter to the
contrary, a qualifying facility having less than 40-kilowatt
capacity new text begin or a baseload facility that generates electricity from
a livestock manure digester system, new text end may elect that the
compensation for net input by the qualifying facility into the
utility system shall be at the average retail utility energy
rate. "Average retail utility energy rate" is defined as the
average of the retail energy rates, exclusive of special rates
based on income, age, or energy conservation, according to the
applicable rate schedule of the utility for sales to that class
of customer.

(d) If the qualifying facility is interconnected with a
nongenerating utility which has a sole source contract with a
municipal power agency or a generation and transmission utility,
the nongenerating utility may elect to treat its purchase of any
net input under this subdivision as being made on behalf of its
supplier and shall be reimbursed by its supplier for any
additional costs incurred in making the purchase. Qualifying
facilities having less than 40-kilowatt capacity new text begin and baseload
facilities that generate electricity from a livestock manure
digester system new text end may, at the customer's option, elect to be
governed by the provisions of subdivision 4.

Sec. 2.

Minnesota Statutes 2004, section 216B.164,
subdivision 4, is amended to read:

Subd. 4.

Purchases; wheeling; costs.

(a) Except as
otherwise provided in paragraph (c), this subdivision shall
apply to all qualifying facilities having 40-kilowatt capacity
or more new text begin except baseload facilities that generate electricity
from a livestock manure digester system new text end as well as qualifying
facilities as defined in subdivision 3 which elect to be
governed by its provisions.

(b) The utility to which the qualifying facility is
interconnected shall purchase all energy and capacity made
available by the qualifying facility. The qualifying facility
shall be paid the utility's full avoided capacity and energy
costs as negotiated by the parties, as set by the commission, or
as determined through competitive bidding approved by the
commission. The full avoided capacity and energy costs to be
paid a qualifying facility that generates electric power by
means of a renewable energy source are the utility's least cost
renewable energy facility or the bid of a competing supplier of
a least cost renewable energy facility, whichever is lower,
unless the commission's resource plan order, under section
216B.2422, subdivision 2, provides that the use of a renewable
resource to meet the identified capacity need is not in the
public interest.

(c) For all qualifying facilities having 30-kilowatt
capacity or more, new text begin and a baseload facility that generates
electricity from a livestock manure digester system, new text end the utility
shall, at the qualifying facility's or the utility's request,
provide wheeling or exchange agreements wherever practicable to
sell the qualifying facility's output to any other Minnesota
utility having generation expansion anticipated or planned for
the ensuing ten years. The commission shall establish the
methods and procedures to insure that except for reasonable
wheeling charges and line losses, the qualifying facility
receives the full avoided energy and capacity costs of the
utility ultimately receiving the output.

(d) The commission shall set rates for electricity
generated by renewable energy.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective August 1, 2005, and apply to
electricity produced by baseload facilities that generate
electricity from livestock manure digester systems after January
1, 2006.
new text end