Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 1834

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/29/2023 10:16am

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

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24
2.25 2.26 2.27 2.28 2.29 2.30 2.31 3.1 3.2 3.3 3.4 3.5 3.6 3.7
3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21
3.22 3.23 3.24 3.25
3.27 3.28

A bill for an act
relating to energy; modifying various provisions governing utilities; amending
Minnesota Statutes 2022, sections 216B.1645, subdivision 2a; 216B.2425,
subdivision 3; 216B.50, subdivision 1; Laws 2005, chapter 97, article 10, section
3, as amended; repealing Minnesota Statutes 2022, section 116C.83, subdivision


Section 1.

Minnesota Statutes 2022, section 216B.1645, subdivision 2a, is amended to

Subd. 2a.

Cost recovery for utility's renewable facilities.

(a) A utility may petition
the commission to approve a rate schedule that provides for the automatic adjustment of
charges to recover prudently incurred investments, expenses, or costs associated with
facilities constructed, owned, or operated by a utilitynew text begin that are an eligible energy technology
under section 216B.1691 or energy storage systems, including but not limited to facilities
new text end to satisfy the requirements of section 216B.1691, provided deleted text beginthosedeleted text endnew text begin thenew text end facilities were
previously approved by the commission under section 216B.2422 or 216B.243, or were
determined by the commission to be reasonable and prudent under section 216B.243,
subdivision 9. For facilities not subject to review by the commission under section 216B.2422
or 216B.243, a utility shall petition the commission for eligibility for cost recovery under
this section prior to requesting cost recovery for the facility. The commission may approve,
or approve as modified, a rate schedule that:

(1) allows a utility to recover directly from customers on a timely basis the costs of
qualifying renewable energy projects, including:

(i) return on investment;

(ii) depreciation;

(iii) ongoing operation and maintenance costs;

(iv) taxes; and

(v) costs of transmission and other ancillary expenses directly allocable to transmitting
electricity generated from a project meeting the specifications of this paragraph;

(2) provides a current return on construction work in progress, provided that recovery
of these costs from Minnesota ratepayers is not sought through any other mechanism;

(3) allows recovery of other expenses incurred that are directly related to a renewable
energy project, including expenses for energy storage, provided that the utility demonstrates
to the commission's satisfaction that the expenses improve project economics, ensure project
implementation, advance research and understanding of how storage devices may improve
renewable energy projects, or facilitate coordination with the development of transmission
necessary to transport energy produced by the project to market;

(4) allocates recoverable costs appropriately between wholesale and retail customers;

(5) terminates recovery when costs have been fully recovered or have otherwise been
reflected in a utility's rates.

(b) A petition filed under this subdivision must include:

(1) a description of the facilities for which costs are to be recovered;

(2) an implementation schedule for the facilities;

(3) the utility's costs for the facilities;

(4) a description of the utility's efforts to ensure that costs of the facilities are reasonable
and were prudently incurred; and

(5) a description of the benefits of the project in promoting the development of renewable
energy in a manner consistent with this chapter.

Sec. 2.

Minnesota Statutes 2022, section 216B.2425, subdivision 3, is amended to read:

Subd. 3.

Commission approval.

new text begin(a) new text endBy 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 transmission and distribution projects proposed under subdivision text begin Except as provided in paragraph (b),new text end 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

(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.

new text begin (b) The commission may certify a project proposed under subdivision 2, paragraph (e),
only if the commission finds the proposed project is in the public interest.
new text end

Sec. 3.

Minnesota Statutes 2022, section 216B.50, subdivision 1, is amended to read:

Subdivision 1.

Commission approval required.

No public utility shall sell, acquire,
lease, or rent any plant as an operating unit or system in this state for a total consideration
in excess of deleted text begin$100,000deleted text endnew text begin $ text end, or merge or consolidate with another public utility or
transmission company operating in this state, without first being authorized so to do by the
commission. Upon the filing of an application for the approval and consent of the
commission, the commission shall investigate, with or without public hearing. The
commission shall hold a public hearing, upon such notice as the commission may require.
If the commission finds that the proposed action is consistent with the public interest, it
shall give its consent and approval by order in writing. In reaching its determination, the
commission shall take into consideration the reasonable value of the property, plant, or
securities to be acquired or disposed of, or merged and consolidated.

This section does not apply to the purchase of property to replace or add to the plant of
the public utility by construction.

Sec. 4.

Laws 2005, chapter 97, article 10, section 3, as amended by Laws 2013, chapter
85, article 7, section 9, is amended to read:

Sec. 3. SUNSET.

Sections 1 and 2 deleted text beginshalldeleted text end expire deleted text beginondeleted text end June 30, deleted text begin2023deleted text endnew text begin 2028new 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. 5. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2022, section 116C.83, subdivision 3, new text end new text begin is repealed.
new text end


Repealed Minnesota Statutes: 23-02398


Subd. 3.

Legislative review.

(a) To allow opportunity for review by the legislature, a decision by the commission on an application for a certificate of need pursuant to subdivision 2 is stayed until the June 1 following the next regular annual session of the legislature that begins after the date of the commission decision. By January 15 of the year of that legislative session, the commission shall issue a report to the chairs of the house of representatives and senate committees with jurisdiction over energy and environmental policy issues, providing a summary of the commission's decision and the grounds for that decision, the alternatives considered and rejected by the commission, and the reasons for rejecting those alternatives. If the legislature does not modify or reject the commission's decision by law enacted during that regular legislative session, the commission's decision shall become effective on the expiration of the stay.

(b) The stay of a commission decision to approve an application for a certificate of need for additional dry cask storage under subdivision 2 does not apply to the fabrication of the spent-fuel storage casks. However, if the utility proceeds with the fabrication of casks, it does so bearing the risk of an adverse legislative decision.