SF 2022

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

A bill for an act
relating to economic development; allowing exemption
for certain energy conservation investment expenses
made by qualifying business; amending Minnesota
Statutes 2004, section 216B.241, subdivisions 1, 1a.

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

Section 1.

Minnesota Statutes 2004, section 216B.241,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section
and section 216B.16, subdivision 6b, the terms defined in this
subdivision have the meanings given them.

(a) "Commission" means the Public Utilities Commission.

(b) "Commissioner" means the commissioner of commerce.

(c) "Customer facility" means all buildings, structures,
equipment, and installations at a single site.

(d) "Department" means the Department of Commerce.

(e) "Energy conservation" means demand-side management of
energy supplies resulting in a net reduction in energy use.
Load management that reduces overall energy use is energy
conservation.

(f) "Energy conservation improvement" means a project that
results in energy conservation.

(g) "Investments and expenses of a public utility" includes
the investments and expenses incurred by a public utility in
connection with an energy conservation improvement, including
but not limited to:

(1) the differential in interest cost between the market
rate and the rate charged on a no-interest or below-market
interest loan made by a public utility to a customer for the
purchase or installation of an energy conservation improvement;

(2) the difference between the utility's cost of purchase
or installation of energy conservation improvements and any
price charged by a public utility to a customer for such
improvements.

(h) "Large electric customer facility" means a customer
facility that imposes a peak electrical demand on an electric
utility's system of not less than 20,000 kilowatts, measured in
the same way as the utility that serves the customer facility
measures electrical demand for billing purposes, and for which
electric services are provided at retail on a single bill by a
utility operating in the state.

(i) "Load management" means an activity, service, or
technology to change the timing or the efficiency of a
customer's use of energy that allows a utility or a customer to
respond to wholesale market fluctuations or to reduce the
overall demand for energy or capacity.

new text begin (j) "Qualified business" has the meaning given it in
section 469.310, subdivision 11.
new text end

Sec. 2.

Minnesota Statutes 2004, section 216B.241,
subdivision 1a, is amended to read:

Subd. 1a.

Investment, expenditure, and contribution;
public utility.

(a) For purposes of this subdivision and
subdivision 2, "public utility" has the meaning given it in
section 216B.02, subdivision 4. Each public utility shall spend
and invest for energy conservation improvements under this
subdivision and subdivision 2 the following amounts:

(1) for a utility that furnishes gas service, 0.5 percent
of its gross operating revenues from service provided in the
state;

(2) for a utility that furnishes electric service, 1.5
percent of its gross operating revenues from service provided in
the state; and

(3) for a utility that furnishes electric service and that
operates a nuclear-powered electric generating plant within the
state, two percent of its gross operating revenues from service
provided in the state.

For purposes of this paragraph (a), "gross operating
revenues" do not include revenues from large electric customer
facilities exempted by the commissioner under paragraph (b).

(b) The owner of a large electric customer facility new text begin or
qualified business customer facility new text end may petition the
commissioner to exempt both electric and gas utilities serving
the deleted text begin large energy deleted text end customer facility from the investment and
expenditure requirements of paragraph (a) with respect to retail
revenues attributable to the facility. At a minimum, the
petition must be supported by evidence relating to competitive
or economic pressures on the customer and a showing by the
customer of reasonable efforts to identify, evaluate, and
implement cost-effective conservation improvements at the
facility. If a petition is filed on or before October 1 of any
year, the order of the commissioner to exempt revenues
attributable to the facility can be effective no earlier than
January 1 of the following year. The commissioner shall not
grant an exemption if the commissioner determines that granting
the exemption is contrary to the public interest. The
commissioner may, after investigation, rescind any exemption
granted under this paragraph upon a determination that
cost-effective energy conservation improvements are available at
the deleted text begin large electric deleted text end customer facility. For the purposes of this
paragraph, "cost-effective" means that the projected total cost
of the energy conservation improvement at the deleted text begin large electric
deleted text end customer facility is less than the projected present value of
the energy and demand savings resulting from the energy
conservation improvement. For the purposes of investigations by
the commissioner under this paragraph, the owner of any deleted text begin large
electric deleted text end customer facility shall, upon request, provide the
commissioner with updated information comparable to that
originally supplied in or with the owner's original petition
under this paragraph.

(c) The commissioner may require investments or spending
greater than the amounts required under this subdivision for a
public utility whose most recent advance forecast required under
section 216B.2422 or 216C.17 projects a peak demand deficit of
100 megawatts or greater within five years under midrange
forecast assumptions.

(d) A public utility or owner of a large electric customer
facility new text begin or qualified business customer facility new text end may appeal a
decision of the commissioner under paragraph (b) or (c) to the
commission under subdivision 2. In reviewing a decision of the
commissioner under paragraph (b) or (c), the commission shall
rescind the decision if it finds that the required investments
or spending will:

(1) not result in cost-effective energy conservation
improvements; or

(2) otherwise not be in the public interest.

(e) Each utility shall determine what portion of the amount
it sets aside for conservation improvement will be used for
conservation improvements under subdivision 2 and what portion
it will contribute to the energy and conservation account
established in subdivision 2a. A public utility may propose to
the commissioner to designate that all or a portion of funds
contributed to the account established in subdivision 2a be used
for research and development projects that can best be
implemented on a statewide basis. Contributions must be
remitted to the commissioner by February 1 of each year.
Nothing in this subdivision prohibits a public utility from
spending or investing for energy conservation improvement more
than required in this subdivision.