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SF 1735

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 09/30/2015 02:56pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to energy; modifying the guaranteed energy-savings program;
increasing the size limit of natural gas utilities not subject to rate regulation;
allowing performance-based, multiyear rate plans; allowing rate recovery for
natural gas extension projects; modifying the renewable energy standard;
modifying certificate of need exemptions; modifying energy auditor standards;
making changes to the energy improvements program for local governments;
modifying eligibility for various siting requirements; providing for competitive
rate schedules for energy-intensive trade-exposed electric utility customers;
modifying and adding definitions; amending Minnesota Statutes 2014, sections
16C.144; 216B.02, by adding subdivisions; 216B.16, subdivisions 6, 7b, 12, 19;
216B.1691, subdivision 2a; 216B.2421, subdivision 2; 216B.2425; 216C.31;
216C.435, subdivisions 3a, 4, 5, 10, by adding a subdivision; 216C.436,
subdivisions 1, 2; 216E.01, subdivision 5; 216E.021; 216E.03, subdivision 3;
216E.05, subdivision 2; 453A.02, subdivision 5; proposing coding for new law
in Minnesota Statutes, chapters 216B; 216E; repealing Minnesota Statutes 2014,
section 216C.436, subdivision 6.

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

Section 1.

Minnesota Statutes 2014, section 16C.144, is amended to read:


16C.144 GUARANTEED ENERGY-SAVINGS PROGRAM.

Subdivision 1.

Definitions.

The following definitions apply to this section.

(a) "Utility" means electricity, natural gas, or other energy resource, water, and
wastewater.

(b) "Utility cost savings" means the difference between the utility costs after
installation of the utility cost-savings measures pursuant to the guaranteed energy-savings
agreement and the baseline utility costs after baseline adjustments have been made.

(c) "Baseline" means the preagreement utilities, operations, and maintenance costs.

(d) "Utility cost-savings measure" means a measure that produces utility cost savings
or operation and maintenance cost savings.

(e) "Operation and maintenance cost savings" means a measurable difference
between operation and maintenance costs after the installation of the utility cost-savings
measures pursuant to the guaranteed energy-savings agreement and the baseline operation
and maintenance costs after inflation adjustments have been made. Operation and
maintenance costs savings shall not include savings from in-house staff labor.

(f) "Guaranteed energy-savings agreement" means an agreement for the installation
of one or more utility cost-savings measures that includes the qualified provider's
guarantee as required under subdivision 2.

(g) "Baseline adjustments" means adjusting the utility cost-savings baselines
annually for changes in the following variables:

(1) utility rates;

(2) number of days in the utility billing cycle;

(3) square footage of the facility;

(4) operational schedule of the facility;

(5) facility temperature set points;

(6) weather; and

(7) amount of equipment or lighting utilized in the facility.

(h) "Inflation adjustment" means adjusting the operation and maintenance
cost-savings baseline annually for inflation.

(i) "deleted text beginLease purchase agreementdeleted text endnew text begin Project financingnew text end" means deleted text beginan agreementdeleted text endnew text begin any type of
financing including but not limited to lease, lease purchase, installment agreements, or
bonds for those other than the state who have bonding authority,
new text end obligating the state to
make regular deleted text beginleasedeleted text end payments to satisfy the deleted text beginleasedeleted text end costs of the utility cost-savings measures
until the final paymentdeleted text begin, after which time the utility cost-savings measures become the
sole property of the state of Minnesota
deleted text end.

(j) "Qualified provider" means a person or business experienced in the design,
implementation, and installation of utility cost-savings measures.

(k) "Engineering report" means a report prepared by a professional engineer licensed
by the state of Minnesota summarizing estimates of all costs of installations, modifications,
or remodeling, including costs of design, engineering, installation, maintenance, repairs,
and estimates of the amounts by which utility and operation and maintenance costs will be
reduced.

(l) "Capital cost avoidance" means money expended by a state agency to pay for
utility cost-savings measures with a guaranteed savings agreement so long as the measures
that are being implemented to achieve the utility, operation, and maintenance cost savings
are a significant portion of an overall project as determined by the commissioner.

(m) "Guaranteed energy-savings program guidelines" means policies, procedures,
and requirements of guaranteed savings agreements established by the Department of
Administration.

Subd. 2.

Guaranteed energy-savings agreement.

The commissioner may enter
into a guaranteed energy-savings agreement with a qualified provider if:

(1) the qualified provider is selected through a competitive process in accordance
with the guaranteed energy-savings program guidelines within the Department of
Administration;

(2) the qualified provider agrees to submit an engineering report prior to the
execution of the guaranteed energy-savings agreement. The cost of the engineering report
may be considered as part of the implementation costs if the commissioner enters into a
guaranteed energy-savings agreement with the provider;

(3) the term of the guaranteed energy-savings agreement shall not exceed 25 years
from the date of final installation;

(4) the commissioner finds that the amount it would spendnew text begin, less the amount
contributed for capital cost avoidance,
new text end on the utility cost-savings measures recommended
in the engineering report will not exceed the amount to be saved in utility operation and
maintenance costs over 25 years from the date of implementation of utility cost-savings
measures;

(5) the qualified provider provides a written guarantee that the annual utility,
operation, and maintenance cost savings during the term of the guaranteed energy-savings
agreement will meet or exceed the annual payments due under deleted text begina lease purchase agreement
deleted text endnew text beginthe project financingnew text end. The qualified provider shall reimburse the state for any shortfall of
guaranteed utility, operation, and maintenance cost savings; and

(6) the qualified provider gives a sufficient bond in accordance with section
574.26 to the commissioner for the faithful implementation and installation of the utility
cost-savings measures.

Subd. 3.

deleted text beginLease purchase agreementdeleted text endnew text begin Project financingnew text end.

The commissioner
may enter into deleted text begina lease purchase agreementdeleted text endnew text begin project financingnew text end with any party for the
implementation of utility cost-savings measures in accordance with the guaranteed
energy-savings agreement. deleted text beginThe implementation costs of the utility cost-savings measures
recommended in the engineering report shall not exceed the amount to be saved in utility
and operation and maintenance costs over the term of the lease purchase agreement.
deleted text end The
term of the deleted text beginlease purchase agreementdeleted text endnew text begin project financingnew text end shall not exceed 25 years from
the date of final installation. The deleted text beginleasedeleted text endnew text begin project financingnew text end is assignable in accordance with
terms approved by the commissioner of management and budget.

Subd. 4.

Use of capital cost avoidance.

The affected state agency may contribute
funds for capital cost avoidance for guaranteed energy-savings agreements. Use of capital
cost avoidance is subject to the guaranteed energy-savings program guidelines within the
Department of Administration.

Subd. 5.

Independent report.

For each guaranteed energy-savings agreement
entered into, the commissioner of administration shall contract with an independent third
party to evaluate the cost-effectiveness of each utility cost-savings measure implemented
to ensure that such measures were the least-cost measures available. For the purposes of
this section, "independent third party" means an entity not affiliated with the qualified
provider, that is not involved in creating or providing conservation project services to that
provider, and that has expertise (or access to expertise) in energy-savings practices.

Sec. 2.

Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Propane. new text end

new text begin "Propane" means a gas made of primarily propane and butane,
and stored in liquid form in pressurized tanks.
new text end

Sec. 3.

Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision
to read:


new text begin Subd. 3b. new text end

new text begin Propane storage facility. new text end

new text begin "Propane storage facility" means a facility
designed to store or capable of storing propane in liquid form in pressurized tanks.
new text end

Sec. 4.

Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision
to read:


new text begin Subd. 6b. new text end

new text begin Synthetic gas. new text end

new text begin "Synthetic gas" means flammable gas created from (1)
gaseous, liquid, or solid hydrocarbons, or (2) other organic or inorganic matter. Synthetic
gas includes hydrogen or methane produced through processing, but does not include
propane.
new text end

Sec. 5.

Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Repowering. new text end

new text begin "Repowering" means the modification of a large wind
energy conversion system or a solar-powered large energy facility to increase efficiency,
replace a large wind energy conversion system, or, if the Midcontinent Independent
System Operator has provided a signed generator interconnection agreement that reflects
the expected net power increase, an increase to the nameplate capacity of the wind energy
conversion system.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, 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.new text begin 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 policy,
the commission may allow the public utility to recover any positive net book value of the
facility as determined by the commission.
new text end

Sec. 7.

Minnesota Statutes 2014, section 216B.16, subdivision 7b, is amended to read:


Subd. 7b.

Transmission cost adjustment.

(a) Notwithstanding any other provision
of this chapter, the commission may approve a tariff mechanism for the automatic annual
adjustment of charges for the Minnesota jurisdictional costs net of associated revenues of:

(i) new transmission facilities that have been separately filed and reviewed and
approved by the commission under section 216B.243 or new text beginnew transmission or distribution
facilities that
new text endare certified as a priority project or deemed to be a priority transmission
project under section 216B.2425;

(ii) new transmission facilities approved by the regulatory commission of the state
in which the new transmission facilities are to be constructed, to the extent approval
is required by the laws of that state, and determined by the Midcontinent Independent
System Operator to benefit the utility or integrated transmission system; and

(iii) charges incurred by a utility under a federally approved tariff that accrue
from other transmission owners' regionally planned transmission projects that have been
determined by the Midcontinent Independent System Operator to benefit the utility or
integrated transmission system.

(b) Upon filing by a public utility or utilities providing transmission service, the
commission may approve, reject, or modify, after notice and comment, a tariff that:

(1) allows the utility to recover on a timely basis the costs net of revenues of
facilities approved under section 216B.243 or certified or deemed to be certified under
section 216B.2425 or exempt from the requirements of section 216B.243;

(2) allows the utility to recover charges incurred under a federally approved tariff that
accrue from other transmission owners' regionally planned transmission projects that have
been determined by the Midcontinent Independent System Operator to benefit the utility
or integrated transmission system. These charges must be reduced or offset by revenues
received by the utility and by amounts the utility charges to other regional transmission
owners, to the extent those revenues and charges have not been otherwise offset;

(3) allows the utility to recover on a timely basis the costs net of revenues of facilities
approved by the regulatory commission of the state in which the new transmission
facilities are to be constructed and determined by the Midcontinent Independent System
Operator to benefit the utility or integrated transmission system;

(4) new text beginallows the utility to recover costs associated with distribution planning required
under section 216B.2425;
new text end

new text begin (5) allows the utility to recover costs associated with investments in distribution
facilities to modernize the utility's grid that have been certified by the commission under
section 216B.2425;
new text end

new text begin (6) new text endallows a return on investment at the level approved in the utility's last general
rate case, unless a different return is found to be consistent with the public interest;

deleted text begin (5)deleted text endnew text begin (7)new text end provides a current return on construction work in progress, provided that
recovery from Minnesota retail customers for the allowance for funds used during
construction is not sought through any other mechanism;

deleted text begin (6)deleted text endnew text begin (8)new text end allows for recovery of other expenses if shown to promote a least-cost project
option or is otherwise in the public interest;

deleted text begin (7)deleted text endnew text begin (9)new text end allocates project costs appropriately between wholesale and retail customers;

deleted text begin (8)deleted text endnew text begin (10)new text end provides a mechanism for recovery above cost, if necessary to improve the
overall economics of the project or projects or is otherwise in the public interest; and

deleted text begin (9)deleted text endnew text begin (11)new text end terminates recovery once costs have been fully recovered or have otherwise
been reflected in the utility's general rates.

(c) A public utility may file annual rate adjustments to be applied to customer bills
paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:

(1) a description of and context for the facilities included for recovery;

(2) a schedule for implementation of applicable projects;

(3) the utility's costs for these projects;

(4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
the project; and

(5) calculations to establish that the rate adjustment is consistent with the terms
of the tariff established in paragraph (b).

(d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
paragraph (b), the commission shall approve the annual rate adjustments provided that,
after notice and comment, the costs included for recovery through the tariff were or are
expected to be prudently incurred and achieve transmission system improvements at the
lowest feasible and prudent cost to ratepayers.

Sec. 8.

Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:


Subd. 12.

Exemption for small gas utility franchise.

(a) A municipality may file
with the commission a resolution of its governing body requesting exemption from the
provisions of this section for a public utility that is under a franchise with the municipality
to supply natural, manufactured, or mixed gas and that serves 650 or fewer customers in
the municipality as long as the public utility serves no more than a total of deleted text begin2,000deleted text endnew text begin 5,000
new text endcustomers.

(b) The commission shall grant an exemption from this section for that portion of
a public utility's business that is requested by each municipality it serves. Furthermore,
the commission shall also grant the public utility an exemption from this section for any
service provided outside of a municipality's border that is considered by the commission
to be incidental. The public utility shall file with the commission and the department
all initial and subsequent changes in rates, tariffs, and contracts for service outside the
municipality at least 30 days in advance of implementation.

(c) However, the commission shall require the utility to adopt the commission's
policies and procedures governing disconnection during cold weather. The utility shall
annually submit a copy of its municipally approved rates to the commission.

(d) In all cases covered by this subdivision in which an exemption for service outside
of a municipality is granted, the commission may initiate an investigation under section
216B.17, on its own motion or upon complaint from a customer.

(e) If a municipality files with the commission a resolution of its governing body
rescinding the request for exemption, the commission shall regulate the public utility's
business in that municipality under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 216B.16, subdivision 19, is amended to read:


Subd. 19.

Multiyear rate plan.

(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, which cannot exceed deleted text beginthree
deleted text endnew text beginfivenew text end years, to be covered by the plan. new text beginA utility proposing a multiyear rate plan shall provide
a general description of the utility's major planned investments over the plan period.
The commission may also require the utility to provide a set of reasonable performance
measures and incentives that are quantifiable, verifiable, and consistent with state energy
policies. The commission may allow the utility to adjust recovery of its cost of capital or
other costs in a reasonable manner within the plan period. The utility may propose:
new text end

new text begin (1) recovery of the utility's forecasted rate base, based on a formula, a budget forecast,
or a fixed escalation rate, individually or in combination. The forecasted rate base must
include the utility's planned capital investments and investment-related costs, including
income tax impacts, depreciation and property taxes, as well as forecasted capacity-related
costs from purchased power agreements that are not recovered through subdivision 7;
new text end

new text begin (2) recovery of operations and maintenance expenses, based on an electricity-related
price index or other formula;
new text end

new text begin (3) tariffs that expand the products and services available to customers, including,
but not limited to, an affordability rate for low-income residential customers; and
new text end

new text begin (4) adjustments to the rates approved under the multiyear plan for rate changes
that the commission determines to be just and reasonable, including, but not limited
to, changes in the utility's cost of operating its nuclear facilities, or other significant
investments not addressed in the plan.
new text end

new text begin (b) A utility that has filed a petition with the commission to approve a multiyear
rate plan may request to be allowed to implement interim rates for the first and second
years of the multiyear plan. If the commission approves the request, interim rates shall be
implemented in the same manner as allowed under subdivision 3.
new text end

new text begin (c) new text endThe 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. Consistent with subdivision 4, the burden of proof to demonstrate that the
multiyear rate plan is just and reasonable is on the public utility proposing the plan.

deleted text begin (b)deleted text endnew text begin (d)new text end Rates charged under the 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.

deleted text begin (c)deleted text endnew text begin (e)new text end The commission may, by order, establish terms, conditions, and procedures
for a multiyear rate plan necessary to implement this section and ensure that rates remain
just and reasonable during the course of the plan, including terms and procedures for rate
adjustment. At any time prior to conclusion of a multiyear rate plan, the commission,
upon its own motion or upon petition of any party, has the discretion to examine the
reasonableness of the utility's rates under the plan, and adjust rates as necessary.

deleted text begin (d)deleted text endnew text begin (f)new text end 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).

deleted text begin (e)deleted text endnew text begin (g)new text end A utility may not file a multiyear rate plan that would establish rates under the
terms of the plan until after May 31, 2012.

new text begin (h) The commission may initiate a proceeding to determine a set of performance
measures that can be used to assess a utility operating under a multiyear rate plan.
new text end

Sec. 10.

new text begin [216B.1615] ELECTRIC VEHICLE PROMOTION 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 and section
216B.1616, the terms defined in this subdivision have the meanings given them.
new text end

new text begin (b) "Electric vehicle charging station" means a public or private parking space
that is served by battery charging station equipment that has as its primary purpose the
transfer of electric energy by conductive or inductive means to a battery or other energy
storage device in an electric vehicle.
new text end

new text begin (c) "Electric vehicle infrastructure" means structures, machinery, and equipment
necessary and integral to support an electric vehicle, including electric vehicle charging
stations and battery exchange stations.
new text end

new text begin (d) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin (e) "Electric vehicle" or "plug-in vehicle" means an electric drive motor vehicle that
draws propulsion using a traction battery that has at least five kilowatt hours (kWh) of
capacity, uses an external source of energy to recharge the battery, and has a gross vehicle
weight rating of up to 14,000 pounds.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin (a) By February 1, 2016, each public utility serving a city of the
first class must file with the commission a program to promote the purchase of electric
vehicles by their customers and the construction of electric vehicle infrastructure.
new text end

new text begin (b) The program may include, but is not limited to, the following elements:
new text end

new text begin (1) educational resources for individuals, electric vehicle dealers, multifamily
housing developers and property management companies, and vehicle fleet managers; and
new text end

new text begin (2) rebates for installing electric vehicle charging stations at residences or workplaces.
new text end

new text begin Subd. 3. new text end

new text begin Program review and implementation. new text end

new text begin The commissioner of commerce
shall review the program plans submitted under this section. The commissioner shall
approve, modify, or reject the plan based on the plan's effectiveness in promoting electric
vehicles among utility customers, and the extent to which the plan will result in the
construction of electric vehicle infrastructure. If the commissioner rejects a utility's plan,
the utility must submit a new plan for commissioner review within 75 days of the notice of
rejection. The utility shall begin implementing the plan within 90 days of commissioner
approval.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin Notwithstanding section 216B.16, subdivision 8, paragraph
(a), clause (3), the commission shall approve recovery of costs for expenses incurred by a
public utility to provide public advertisement as part of a promotion program and the costs
reasonably incurred to implement and administer the program in subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin Beginning one year after implementing a program approved by
the commissioner, each public utility implementing a plan under this section shall report
annually to the commissioner on its activities to promote electric vehicle usage and the
outcomes of those efforts and the potential to utilize plug-in vehicles as dynamic demand
response resources or to develop vehicle-to-grid technology.
new text end

Sec. 11.

new text begin [216B.1638] RECOVERY OF NATURAL GAS EXTENSION PROJECT
COSTS.
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 terms defined in
this subdivision have the meanings given them.
new text end

new text begin (b) "Contribution in aid of construction" means a monetary contribution, paid by
a developer or local unit of government to a utility providing natural gas service to a
community receiving that service as the result of a natural gas extension project, that
reduces or offsets the difference between the total revenue requirement of the project and
the revenue generated from the customers served by the project.
new text end

new text begin (c) "Developer" means a developer of the project or a person that owns or will own
the property served by the project.
new text end

new text begin (d) "Local unit of government" means a city, county, township, commission, district,
authority, or other political subdivision or instrumentality of this state.
new text end

new text begin (e) "Natural gas extension project" or "project" means the construction of new
infrastructure or upgrades to existing natural gas facilities necessary to serve currently
unserved or inadequately served areas.
new text end

new text begin (f) "Revenue deficiency" means the deficiency in funds that results when projected
revenues from customers receiving natural gas service as the result of a natural gas
extension project, plus any contributions in aid of construction paid by these customers,
fall short of the total revenue requirement of the natural gas extension project.
new text end

new text begin (g) "Total revenue requirement" means the total cost of extending and maintaining
service to a currently unserved or inadequately served area.
new text end

new text begin (h) "Unserved or inadequately served area" means an area in this state lacking
adequate natural gas pipeline infrastructure to meet the demand of existing or potential
end-use customers.
new text end

new text begin Subd. 2. new text end

new text begin Filing. new text end

new text begin (a) A public utility may petition the commission outside of a
general rate case for a rider that shall include all of the utility's customers, including
transport customers, to recover the revenue deficiency from a natural gas extension project.
new text end

new text begin (b) The petition shall include:
new text end

new text begin (1) a description of the natural gas extension project, including the number and
location of new customers to be served and the distance over which natural gas will be
distributed to serve the unserved or inadequately served area;
new text end

new text begin (2) the project's construction schedule;
new text end

new text begin (3) the proposed project budget;
new text end

new text begin (4) the amount of any contributions in aid of construction;
new text end

new text begin (5) a description of efforts made by the public utility to offset the revenue deficiency
through contributions in aid to construction;
new text end

new text begin (6) the proposed method and amount of recovery by customer class and whether
the utility is proposing that the rider be a flat fee, a volumetric charge, or another form of
recovery;
new text end

new text begin (7) how recovery of the revenue deficiency will be allocated between industrial,
commercial, residential, and transport customers;
new text end

new text begin (8) the proposed termination date of the rider to recover the revenue deficiency; and
new text end

new text begin (9) a description of benefits to the public utility's existing natural gas customers that
will accrue from the natural gas extension project.
new text end

new text begin Subd. 3. new text end

new text begin Review; approval. new text end

new text begin (a) The commission shall allow opportunity for
comment on the petition.
new text end

new text begin (b) The commission may approve a public utility's petition for a rider to recover the
costs of a natural gas extension project if it determines that:
new text end

new text begin (1) the project is designed to extend natural gas service to an unserved or
inadequately served area; and
new text end

new text begin (2) project costs are reasonable and prudently incurred.
new text end

new text begin (c) The commission must not approve a rider under this section that allows a utility
to recover more than 33 percent of the costs of a natural gas extension project.
new text end

new text begin (d) The revenue deficiency from a natural gas extension project recoverable through
a rider under this section must include the currently authorized rate of return, incremental
income taxes, incremental property taxes, incremental depreciation expenses, and any
incremental operation and maintenance costs.
new text end

new text begin Subd. 4. new text end

new text begin Commission authority; order. new text end

new text begin The commission may issue orders
necessary to implement and administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Implementation. new text end

new text begin Nothing in this section commits a public utility to
implement a project approved by the commission. The public utility seeking to provide
natural gas service shall notify the commission whether it intends to proceed with the
project as approved by the commission.
new text end

new text begin Subd. 6. new text end

new text begin Evaluation and report. new text end

new text begin By January 15, 2017, and every three years
thereafter, the commission shall report to the chairs and ranking minority members of the
senate and house of representatives committees having jurisdiction over energy:
new text end

new text begin (1) the number of public utilities and projects proposed and approved under this
section;
new text end

new text begin (2) the total cost of each project;
new text end

new text begin (3) rate impacts of the cost recovery mechanism; and
new text end

new text begin (4) an assessment of the effectiveness of the cost recovery mechanism in realizing
increased natural gas service to unserved or inadequately served areas from natural gas
extension projects.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2014, section 216B.1691, subdivision 2a, is amended to
read:


Subd. 2a.

Eligible energy technology standard.

(a) Except as provided in
paragraph (b), each electric utility shall generate or procure sufficient electricity generated
by an eligible energy technology to provide its retail customers in Minnesota, or the
retail customers of a distribution utility to which the electric utility provides wholesale
electric service, so that at least the following standard percentages of the electric utility's
total retail electric sales to retail customers in Minnesota are generated by eligible energy
technologies by the end of the year indicated:

(1)
2012
12 percent
(2)
2016
17 percent
(3)
2020
20 percent
(4)
2025
25 percent.

(b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
must meet the requirements of this paragraph rather than paragraph (a). An electric utility
subject to this paragraph must generate or procure sufficient electricity generated by
an eligible energy technology to provide its retail customers in Minnesota or the retail
customer of a distribution utility to which the electric utility provides wholesale electric
service so that at least the following percentages of the electric utility's total retail electric
sales to retail customers in Minnesota are generated by eligible energy technologies by the
end of the year indicated:

(1)
2010
15 percent
(2)
2012
18 percent
(3)
2016
25 percent
(4)
2020
30 percent.

deleted text begin Of the 30 percent in 2020, at least 25 percent must be generated by solar energy
or wind energy conversion systems and the remaining five percent by other eligible
energy technology. Of the 25 percent that must be generated by wind or solar, no more
than one percent may be solar generated and the remaining 24 percent or greater must
be wind generated.
deleted text end

Sec. 13.

Minnesota Statutes 2014, section 216B.2421, subdivision 2, is amended to read:


Subd. 2.

Large energy facility.

"Large energy facility" means:

(1) any electric power generating plant or combination of plants at a single site with
a combined capacity of 50,000 kilowatts or more and transmission lines directly associated
with the plant that are necessary to interconnect the plant to the transmission system;

(2) any high-voltage transmission line with a capacity of 200 kilovolts or more and
greater than 1,500 feet in length;

(3) any high-voltage transmission line with a capacity of 100 kilovolts or more with
more than ten miles of its length in Minnesota or that crosses a state line;

(4) any pipeline greater than six inches in diameter and having more than 50 miles of
its length in Minnesota used for the transportation of coal, crude petroleum or petroleum
fuels or oil, or their derivatives;

(5) any pipeline for transporting natural or synthetic gas at pressures in excess of
200 pounds per square inch with more than 50 miles of its length in Minnesota;

(6) any facility designed for or capable of storing on a single site more than 100,000
gallons of liquefied natural gas or synthetic gasnew text begin, excluding propane storage facilitiesnew text end;

(7) any underground gas storage facility requiring a permit pursuant to section
103I.681;

(8) any nuclear fuel processing or nuclear waste storage or disposal facility; and

(9) any facility intended to convert any material into any other combustible fuel and
having the capacity to process in excess of 75 tons of the material per hour.

Sec. 14.

Minnesota Statutes 2014, section 216B.2425, is amended to read:


216B.2425 STATE TRANSMISSION new text beginAND DISTRIBUTION new text endPLAN.

Subdivision 1.

List.

The commission shall maintain a list of certified high-voltage
transmission line projects.

Subd. 2.

List development; transmission projects report.

(a) By November
1 of each odd-numbered year, a transmission projects report must be submitted to the
commission by each utility, organization, or company that:

(1) is a public utility, a municipal utility, a cooperative electric association, the
generation and transmission organization that serves each utility or association, or a
transmission company; and

(2) owns or operates electric transmission lines in Minnesota, except a company or
organization that owns a transmission line that serves a single customer or interconnects a
single generating facility.

(b) The report may be submitted jointly or individually to the commission.

(c) The report must:

(1) list specific present and reasonably foreseeable future inadequacies in the
transmission system in Minnesota;

(2) identify alternative means of addressing each inadequacy listed;

(3) identify general economic, environmental, and social issues associated with
each alternative; and

(4) provide a summary of public input related to the list of inadequacies and the role
of local government officials and other interested persons in assisting to develop the list
and analyze alternatives.

(d) To meet the requirements of this subdivision, reporting parties may rely on
available information and analysis developed by a regional transmission organization
or any subgroup of a regional transmission organization and may develop and include
additional information as necessary.

new text begin (e) In addition to providing the information required under this subdivision, a utility
operating under a multiyear rate plan approved by the commission under section 216B.16,
subdivision 19, shall identify in its report investments that it considers necessary to
modernize the transmission and distribution system by enhancing reliability, improving
security against cyber and physical threats, and by increasing energy conservation
opportunities by facilitating communication between the utility and its customers
through the use of two-way meters, control technologies, energy storage and microgrids,
technologies to enable demand response, and other innovative technologies.
new text end

Subd. 3.

Commission approval.

By June 1 of each even-numbered year, the
commission shall adopt a state transmission project list and shall certify, certify as
modified, or deny certification of the new text begintransmission and distribution new text endprojects proposed
under subdivision 2. The commission may only certify a project that is a high-voltage
transmission line as defined in section 216B.2421, subdivision 2, that the commission
finds is:

(1) necessary to maintain or enhance the reliability of electric service to Minnesota
consumers;

(2) needed, applying the criteria in section 216B.243, subdivision 3; and

(3) in the public interest, taking into account electric energy system needs and
economic, environmental, and social interests affected by the project.

Subd. 4.

List; effect.

Certification of a project as a priority electric transmission
project satisfies section 216B.243. A certified project on which construction has not begun
more than six years after being placed on the list, must be reapproved by the commission.

Subd. 5.

Transmission inventory.

The Department of Commerce shall create,
maintain, and update annually an inventory of transmission lines in the state.

Subd. 6.

Exclusion.

This section does not apply to any transmission line proposal
that has been approved by, or was pending before, a local unit of government, the
Environmental Quality Board, or the Public Utilities Commission on August 1, 2001.

Subd. 7.

Transmission needed to support renewable resources.

(a) Each entity
subject to this section shall determine necessary transmission upgrades to support
development of renewable energy resources required to meet objectives under section
216B.1691 and shall include those upgrades in its report under subdivision 2.

(b) MS 2008 [Expired]

new text begin Subd. 8. new text end

new text begin Distribution study for distributed generation. new text end

new text begin Each entity subject to
this section that is operating under a multiyear rate plan approved under section 216B.16,
subdivision 19, shall conduct a distribution study to identify interconnection points on
its distribution system for small-scale distributed generation resources and shall identify
necessary distribution upgrades to support the continued development of distributed
generation resources, and shall include the study in its report required under subdivision 2.
new text end

Sec. 15.

new text begin [216B.247] LARGE SOLAR ENERGY SYSTEM OR LWECS
REPOWERING.
new text end

new text begin (a) A large wind energy conversion system, as defined in section 216F.01,
subdivision 2, or a solar-powered large energy facility, as defined in section 216B.2421,
subdivision 2, engaging in a repowering project that will not result in the facility exceeding
the nameplate capacity under its most recent interconnection agreement is exempt from
the certificate of need requirements under section 216B.243.
new text end

new text begin (b) A large wind energy conversion system, as defined in section 216F.01,
subdivision 2, or a solar-powered large energy facility, as defined in section 216B.2421,
subdivision 2, engaging in a repowering project that will result in the facility exceeding
the nameplate capacity under its most recent interconnection agreement is exempt from
the certificate of need requirements under section 216B.243, if the project has obtained a
signed generator interconnection agreement from the Midcontinent Independent System
Operator that reflects the net power increase.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2014, section 216C.31, is amended to read:


216C.31 ENERGY AUDIT PROGRAMS.

The commissioner shall develop deleted text beginstatedeleted text endnew text begin or approvenew text end programs deleted text beginofdeleted text endnew text begin fornew text end energy deleted text beginaudits of
residential and commercial buildings including the training and qualifications necessary
deleted text endnew text beginauditorsnew text end for the auditing of residential and commercial buildings under deleted text beginthe auspices ofdeleted text end a
program created under section 216B.241new text begin, 216C.436, or any other energy programnew text end.

Sec. 17.

Minnesota Statutes 2014, section 216C.435, subdivision 3a, is amended to read:


Subd. 3a.

Cost-effective energy improvements.

"Cost-effective energy
improvements" mean energy improvements that have been identified in an energy audit
or renewable energy system feasibility study as repaying their purchase and installation
costs in 20 years or less, based on the amount of deleted text beginfuturedeleted text end energy saved and estimated future
energy prices.

Sec. 18.

Minnesota Statutes 2014, section 216C.435, subdivision 4, is amended to read:


Subd. 4.

Energy audit.

"Energy audit" means a formal evaluation of the energy
consumption of a building by a deleted text begincertified energy auditor, whose certification is approved by
the commissioner
deleted text endnew text begin qualified professionalnew text end, for the purpose of identifying appropriate energy
improvements that could be made to the building and including an estimate of the length
of time a specific energy improvement will take to repay its purchase and installation
costs, based on the amount of energy saved and estimated future energy prices.

Sec. 19.

Minnesota Statutes 2014, section 216C.435, subdivision 5, is amended to read:


Subd. 5.

Energy improvement.

"Energy improvement" means:

(1) any renovation or retrofitting of a building to improve energy efficiency that
is permanently affixed to the property and that results in a net reduction in energy
consumption without altering the principal source of energy;

(2) permanent installation of new or upgraded electrical circuits and related
equipment to enable electrical vehicle charging; deleted text beginor
deleted text end

(3) a renewable energy system attached to, installed within, or proximate to a
building that generates electrical or thermal energy from a renewable energy sourcenew text begin; or
new text end

new text begin (4) the installation of infrastructure, machinery, and appliances that will allow
natural gas to be used as a heating fuel on the premises of a building that was previously
not connected to a source of natural gas
new text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2014, section 216C.435, subdivision 10, is amended to read:


Subd. 10.

Renewable energy system feasibility study.

"Renewable energy system
feasibility study" means a written study, conducted by a deleted text begincontractordeleted text endnew text begin qualified professional
new text endtrained to perform that analysis, for the purpose of determining the feasibility of installing
a renewable energy system in a building, including an estimate of the length of time
a specific renewable energy system will take to repay its purchase and installation
costs, based on the amount of energy saved and estimated future energy prices. For a
geothermal energy improvement, the feasibility study must calculate net savings in terms
of nongeothermal energy and costs.

Sec. 21.

Minnesota Statutes 2014, section 216C.435, is amended by adding a
subdivision to read:


new text begin Subd. 13. new text end

new text begin Qualified professional. new text end

new text begin "Qualified professional" means an individual
who has successfully completed one of the programs developed or approved by the
commissioner, as referenced in section 216C.31.
new text end

Sec. 22.

Minnesota Statutes 2014, section 216C.436, subdivision 1, is amended to read:


Subdivision 1.

Program authority.

An implementing entity may establish a
program to finance energy improvements to enable owners of qualifying real property
to pay for cost-effective energy improvements to the qualifying real property deleted text beginwith the
net proceeds and interest earnings of revenue bonds authorized in this section
deleted text end. An
implementing entity may limit the number of qualifying real properties for which a
property owner may receive program financing.

Sec. 23.

Minnesota Statutes 2014, section 216C.436, subdivision 2, is amended to read:


Subd. 2.

Program requirements.

deleted text beginAdeleted text endnew text begin The implementing entity must ensure that a
new text endfinancing program deleted text beginmustdeleted text end:

(1) deleted text beginimposedeleted text endnew text begin imposesnew text end requirements and conditions on financing arrangements to
ensure timely repayment;

(2) deleted text beginrequiredeleted text endnew text begin requiresnew text end an energy audit or renewable energy system feasibility study to
be conducted on the qualifying real property and reviewed by the implementing entity
prior to approval of the financing;

(3) deleted text beginrequiredeleted text endnew text begin requiresnew text end the inspection of all installations and a performance verification
of at least ten percent of the energy improvements financed by the program;

(4) new text begindoes new text endnot prohibit the financing of all cost-effective energy improvements not
otherwise prohibited by this section;

(5) deleted text beginrequiredeleted text endnew text begin requiresnew text end that all cost-effective energy improvements deleted text beginbedeleted text end made to a
qualifying real propertynew text begin are completed and operationalnew text end prior to, or in conjunction withdeleted text begin,
an applicant's repayment of financing for energy improvements for that property
deleted text endnew text begin the first
scheduled assessment payment due to the taxing authority
new text end;

(6) deleted text beginhavedeleted text endnew text begin hasnew text end energy improvements financed by the program performed by licensed
contractors as required by chapter 326B or other law or ordinance;

(7) deleted text beginrequiredeleted text endnew text begin requiresnew text end disclosures to borrowers by the implementing entity of the risks
involved in borrowing, including the risk of deleted text beginforeclosuredeleted text endnew text begin forfeiturenew text end if a tax delinquency
results from a default;

(8) deleted text beginprovidedeleted text endnew text begin providesnew text end financing only to those who demonstrate an ability to repay;

(9) new text begindoes new text endnot provide financing for a qualifying real property in which the owner is
not current on mortgage or real property tax payments;

(10) deleted text beginrequiredeleted text endnew text begin requiresnew text end a petition to the implementing entity by all owners of the
qualifying real property requesting collections of repayments as a special assessment
under section 429.101;

(11) deleted text beginprovidedeleted text endnew text begin providesnew text end that payments and assessments are not accelerated due to a
default and that a tax delinquency exists only for assessments not paid when due; and

(12) deleted text beginrequiredeleted text endnew text begin requiresnew text end that liability for special assessments related to the financing
runs with the qualifying real property.

Sec. 24.

Minnesota Statutes 2014, section 216E.01, subdivision 5, is amended to read:


Subd. 5.

Large electric power generating plant.

"Large electric power generating
plant" shall mean electric power generating equipment and associated facilities designed
for or capable of operation at a capacity of 50,000 kilowatts or morenew text begin, or a solar energy
generating system designed for or capable of operation at a capacity of 10,000 kilowatts
or more
new text end.

Sec. 25.

Minnesota Statutes 2014, section 216E.021, is amended to read:


216E.021 SOLAR ENERGY SYSTEM SIZE DETERMINATION.

(a) This section must be used to determine whether a combination of solar energy
generating systems meets the definition of large electric power generating plant and is
subject to the commission's siting authority jurisdiction under this chapter. The alternating
current nameplate capacity of one solar energy generating system must be combined with
the alternating current nameplate capacity of any other solar energy generating system that:

(1) is constructed within the same 12-month period as the solar energy generating
system; and

(2) exhibits characteristics of being a single development, including but not limited
to ownership structure, an umbrella sales arrangement, shared interconnection, revenue
sharing arrangements, and common debt or equity financing.

new text begin (b) An application to a county or municipality for a permit to construct a solar
energy generating system with a capacity of 1,000 kilowatts or greater is not complete
unless it includes a solar energy system size determination under this section.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end The commissioner of commerce shall provide forms and assistance for
applicants to make a request for a size determination. Upon written request of an applicant,
the commissioner shall provide a written size determination within 30 days of receipt of
the request and of any information requested by the commissioner. In the case of a dispute,
the chair of the Public Utilities Commission shall make the final size determination.

Sec. 26.

Minnesota Statutes 2014, section 216E.03, subdivision 3, is amended to read:


Subd. 3.

Application.

Any person seeking to construct a large electric power
generating plant or a high-voltage transmission line must apply to the commission for a
site or route permit. The application shall contain such information as the commission may
require. The applicant shall propose at least two sites for a large electric power generating
plant and two routes for a high-voltage transmission linenew text begin, except that an applicant shall
only be required to propose one site for a large electric power generating plant that is a
solar energy generating system
new text end. Neither of the two proposed routes may be designated as
a preferred route and all proposed routes must be numbered and designated as alternatives.
The commission shall determine whether an application is complete and advise the
applicant of any deficiencies within ten days of receipt. An application is not incomplete if
information not in the application can be obtained from the applicant during the first phase
of the process and that information is not essential for notice and initial public meetings.

Sec. 27.

Minnesota Statutes 2014, section 216E.05, subdivision 2, is amended to read:


Subd. 2.

Applicable projects.

Applicants may seek approval from local units of
government to construct the following projects:

(1) large electric power generating plantsnew text begin, except solar energy generating systems,
new text endwith a capacity of less than 80 megawatts;

(2) large electric power generating plants of any size that burn natural gas and are
intended to be a peaking plant;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) substations with a voltage designed for and capable of operation at a nominal
voltage of 100 kilovolts or more;

(5) a high-voltage transmission line service extension to a single customer between
200 and 300 kilovolts and less than ten miles in length; and

(6) a high-voltage transmission line rerouting to serve the demand of a single
customer when the rerouted line will be located at least 80 percent on property owned or
controlled by the customer or the owner of the transmission line.

Sec. 28.

new text begin [216E.055] SOLAR FACILITY PERMIT AUTHORITY; ASSUMPTION
BY COUNTIES AND MUNICIPALITIES.
new text end

new text begin (a) A county or municipality may, by resolution and upon written notice to the
Public Utilities Commission, assume responsibility for processing applications for permits
required under this chapter for large electric power generating plants solely within their
jurisdiction that are solar energy generating systems up to 25,000 kilowatts. If a county
or municipality assumes the responsibility for permit application processing, the county
or municipality may delegate the authority to issue the permit to an appropriate county
officer or employee; or the county or municipality may determine the permit application
should be processed as a conditional use in accordance with procedures and processes
established under chapter 394 or 462.
new text end

new text begin (b) A county or municipality that exercises its option under paragraph (a) may issue,
deny, modify, impose conditions upon, or revoke permits pursuant to this section. The
action of the county or municipality about a permit application is final, subject to appeal.
new text end

new text begin (c) The commission shall, by order, establish general permit standards, including
appropriate set-backs, governing site permits for solar energy generating systems under
this chapter. The order must consider existing and historic commission standards for
permits issued by the commission. The general permit standards shall apply to permits
issued by counties and municipalities under this section and to permits issued by the
commission under this chapter. The commission or a county or municipality may grant a
variance from a general permit standard if the variance is found to be in the public interest.
new text end

new text begin (d) A county or municipality may by ordinance adopt standards for solar energy
generating systems that are more stringent than standards in commission rules or in the
commission's permit standards. The commission, when considering a permit application
for a solar energy generating system in a jurisdiction that has assumed permitting authority
under this section, shall consider and apply the jurisdiction's more stringent standards
unless the commission finds good cause to not apply the standards.
new text end

new text begin (e) The commission and the commissioner of commerce shall provide technical
assistance to a county or municipality with respect to the processing of site permit
applications for solar energy generating systems under this section.
new text end

new text begin (f) This section does not exempt applicants from the requirements under section
216E.021.
new text end

Sec. 29.

Minnesota Statutes 2014, section 453A.02, subdivision 5, is amended to read:


Subd. 5.

Gas.

"Gas" means either natural or synthetic gas, deleted text beginincludingdeleted text end propane,
manufacturednew text begin gasnew text end, methane from coal beds, geothermal gas, or any mixture thereof,
whether in gaseous or liquid form, or any by-product resulting therefrom.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text beginCOMPETITIVE RATE FOR ENERGY-INTENSIVE,
TRADE-EXPOSED ELECTRIC UTILITY CUSTOMER.
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) "Energy-intensive, trade-exposed (EITE) customer" means a customer of an
investor-owned utility that provides electric service at retail to fewer than 200,000
customers and is:
new text end

new text begin (1) an iron mining extraction and processing facility, including a "scram mining
operation," as that term is defined in Minnesota Rules, part 6130.0100, subpart 16;
new text end

new text begin (2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer;
new text end

new text begin (3) a steel mill and related facility; or
new text end

new text begin (4) any other globally competitive electric customer who can demonstrate that: (i)
energy costs are at least 15 percent of the customer's overall cost of production; (ii) their
energy rates are significantly higher than their competitors; and (iii) those higher rates
impede the customer's ability to compete in the global market.
new text end

new text begin (c) "EITE rate schedule" means a rate schedule that establishes the terms of service
for an individual or group of energy-intensive, trade-exposed customers.
new text end

new text begin (d) "EITE rate" means the rate or rates offered by the utility under an EITE rate
schedule.
new text end

new text begin Subd. 2. new text end

new text begin Rates and terms of EITE rate schedule. new text end

new text begin (a) An investor-owned electric
utility that provides electric service at retail to fewer than 200,000 customers may propose
an EITE rate schedule within its service territory for commission approval that includes
various EITE rate options such as fixed rates or market-based rates.
new text end

new text begin (b) The minimum rate for the EITE schedule must recover at least the incremental
cost of providing the service, including the cost of additional capacity that is to be added
while the rate is in effect and any applicable on-peak or off-peak differential.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 216B.03, 216B.05, 216B.06,
216B.07, or 216B.16, the commission shall approve a proposed EITE rate schedule if
it finds the schedule provides net benefits to the utility and its customers, considering
among other things:
new text end

new text begin (1) potential cost impacts to the utility's customers;
new text end

new text begin (2) the net benefit to the local or state economy through the retention or increase of
jobs;
new text end

new text begin (3) a net increase in economic development in the utility's service territory; and
new text end

new text begin (4) the extent to which a significant rate increase for all other customers might
otherwise be avoided by preventing a reduction of EITE customer load.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility for EITE rate. new text end

new text begin A customer is eligible for an EITE rate under
the EITE rate schedule if the customer can demonstrate to the commission that it meets
the defined criteria under subdivision 1, paragraph (b).
new text end

new text begin Subd. 4. new text end

new text begin Commission process. new text end

new text begin (a) The commission shall review the EITE rate
schedule proposed by an investor-owned electric utility and make a final determination in
any proceeding begun under this section within 120 days of a miscellaneous rate filing by
the electric utility.
new text end

new text begin (b) An EITE rate offered by an electric utility under an approved EITE rate schedule
must be filed with the commission.
new text end

new text begin Subd. 5. new text end

new text begin Cost recovery. new text end

new text begin (a) Upon approval of an EITE rate, the utility shall create
a separate account to track the difference in revenue between what would have been
collected under the electric utility's applicable standard tariff and the EITE rate schedule.
In its next general rate case or other methodology the commission shall determine, the
commission shall allow the utility to recover the incremental costs if it determines that
recovery is in the public interest, or refund the incremental revenues, associated with
providing service to a customer under the EITE rate from the utility's nonenergy-intensive,
trade-exposed customers.
new text end

new text begin (b) The commission shall take steps as necessary to mitigate the impacts of
cost recovery of the implementation of the EITE rate on other ratepayers, unless the
commission finds that the cost impacts are minimal.
new text end

Sec. 31. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 216C.436, subdivision 6, new text end new text begin is repealed.
new text end